Your SlideShare is downloading. ×
0
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Market Research India - Ice Cream Market in India 2009
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Market Research India - Ice Cream Market in India 2009

2,343

Published on

For further details or any customized research requirement, you may visit us at: www.researchonindia.com

For further details or any customized research requirement, you may visit us at: www.researchonindia.com

Published in: Business, Self Improvement
1 Comment
2 Likes
Statistics
Notes
  • Market Research India - Ice Cream Market in India 2012
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
2,343
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
1
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Ice Cream Market ‐Ice Cream Market IndiaDecember 2008
  • 2. Executive Summary  Estimated worth USD 209 mn in 2008, expected to grow to USD 240 mn in 2009 Market  North and west account for 70% of total sales  High profit margins ranging between 30‐50%  Drivers: Opportunity to capitalize on low consumption levels; growing institutional sales Drivers &   Challenges: Competition with the unorganised sector on price and quality, and lack of well‐ Challenges developed cold chain facilities  Large investments in advertising   Diversification of product portfolio targeting specific consumer segments Trends  Partnerships and franchises pursued to boost distribution  Falling costs of raw materials offsetting rising milk and sugar prices  GCMMF’s Amul brand is the market leaderCompetition  Mother Diary and Hindustan Unilever’s Kwality brand are other strong players  The premium segment is dominated by Baskin Robbins The premium segment is dominated by Baskin Robbins ICE CREAM MARKET – INDIA.PPT 2
  • 3. •Market Overview•Drivers & Challenges Drivers & Challenges•Trends•Competition•Key Developments ICE CREAM MARKET – INDIA.PPT 3
  • 4. The industry is growing steadily with the northern and western regions accounting for the largest consumptionOverview Size and Growth•Size and Growth USD mn  Worth USD 209 mn in 2008  +12% 240 250 209  Growing at 12% p.a. in 2005‐2008  182 200  Forecast to increase by 15% to reach USD 240  148 155 150 mn in 2009 100•Characteristics 50  Northern and western regions together  0 account for 70% of total market consumption 2005 2006 2007 2008 e 2009 f  Profit margins range from 30% to 50%  depending on the product segment Geographic Distribution  60% of ice cream sales occur during the  summer months of April‐June North  80% of sales is through street vendors 30%  Vanilla is the highest selling flavour and  together with strawberry and chocolate it  West 40% accounts for 70% of the market 10% East 20% South ICE CREAM MARKET – INDIA.PPT 4
  • 5. •Market Overview•Drivers & Challenges Drivers & Challenges•Trends•Competition•Key Developments ICE CREAM MARKET – INDIA.PPT 5
  • 6. Drivers & Challenges Challenges Low quality products and competitive  pricing from unorganized sector Drivers Lack of cold chain facilities Lack of cold chain facilities Low consumption levels  Developing institutional channel l i i i i l h l ICE CREAM MARKET – INDIA.PPT 6
  • 7. Low consumption levels and penetration, and a lucrative institutional sales channel are key growth driversLow consumption levels Impact• Per capita consumption levels are very low at 200‐250 ml while  penetration rate is estimated at 15% ml• Significant scope for market growth by increasing either consumption  300 250 250 levels or market penetration, or both 200• National players are focusing on increasing per capita consumption or  106 penetration to grow the market 100  Vadilal is minimizing price using promotions and marketing while HUL’s Vadilal is minimizing price, using promotions and marketing while HUL s  Kwality Walls specifically targets metros to increase per capita consumption  0 2000 2004 2008  Amul and Mother Dairy are increasing penetration by targeting rural markets,  making their product more widely available, and minimizing priceDeveloping institutional channel• Catering and institutional customers are identified as a growing opportunity • Players are capitalizing on the revenue potential of impulse sales, which is an established trend  in institutions such as malls and multiplexes• Catering services and hotels are also a lucrative business opportunity for manufacturers ICE CREAM MARKET – INDIA.PPT 7
  • 8. Low quality products and price competition from unorganized players and lack of cold chain facilities hampering industryLow quality products and competitive pricing in the unorganized sector Impact• The market faces a threat from low‐quality products  Many regional players use synthetic substitutes and incorrectly  label their products e.g. vanilla ice cream  instead of artificially flavoured vanilla ice cream  i t d f tifi i ll fl d ill i  Smaller players have started injecting a higher percentage of air into ice cream thus compromising on quality• Price difference between large and small players   Small players rely on a volume‐based, low price strategy, by taking advantage of strong distribution within a  g regional market• Large players are at a competitive disadvantage compared to the unorganized players due to  the low quality and pricing of the unorganized sectorLack of cold chain facilities• The lack of good cold chain facilities for transportation and storage is an impediment towards  increasing market access and penetration• Cold chain also constitutes the most to the total cost   y g pp• Players have been taking different approaches to address this issue:  Baskin Robbins has outsourced its distribution and logistics  Amul, through self financing schemes, has made refrigerators available to shops in rural areas• Developing cold chain infrastructure is extremely crucial to increase market penetration and  the challenge is shared by many other industries in the food & beverage sector ICE CREAM MARKET – INDIA.PPT 8
  • 9. •Market Overview•Drivers & Challenges Drivers & Challenges•Trends•Competition•Key Developments ICE CREAM MARKET – INDIA.PPT 9
  • 10. Key Trends Product diversification to target  Large scale advertising specific segments Trends Franchises and strategic  Benefits derived from falling  partnerships to enhance  costs distribution ICE CREAM MARKET – INDIA.PPT 10
  • 11. Large‐scale advertising geared towards brand building and sales promotionAdvertising on Television: Jan‐Apr 2008 Share of TV advertising• Grew by 15% rise in 2008 compared to 2007• Average number of ads per day increased by 45% • The top 3 ice cream brands advertised  Hatsun Agro 9%  Kwality Walls Almond Praline Kwality Walls  78% 2% 4% Metro Daily Ltd (HUL)  Kwality Walls Paddle Pop Karnataka Milk 7%  Arun Ice Cream  Federation OthersAdvertising in Print: Jan‐Apr 2008 Share of Print advertising• Grew by 58% rise since 2005 GCMMF• Gujarat accounted for 25% of the total advertising   14%• Maximum advertising in non‐metros in the  Havmor newspaper medium indicates organized sector’s  9% targeting of rural areas and unorganized sector Vadilal 52% 3% Dinshaws   Non‐metros: 57%  22%  Metros: 26%   Mini –metros: 16% Others Advertising is the primary method to increase consumption and penetration levels Advertising is the primary method to increase consumption and penetration levels ICE CREAM MARKET – INDIA.PPT 11
  • 12. New products such as traditional dessert, natural flavours and low‐sugar ice cream is being used to target specific consumer segmentsProduct diversification to target specific segments• Producers have launched flavoured “kulfi” – the traditional Indian dessert – ice cream which is  the favoured dessert in the non‐metros Capitalizing on  p g  Mother Dairy’s initiated their kulfi range with flavours such as Kesar, Pista, Badam and Mango demand from a    Amul is planning to introduce new brands such as Dates with Honey, “Koolfi cone” niche markets• Naturally flavoured ice cream i.e. without any artificial or synthetic flavour has been  introduced  for the premium segment  Mother Dairy launched the Fruit Classic range which is ice cream without any artificial flavours as well as two Mother Dairy launched the Fruit Classic range which is ice cream without any artificial flavours as well as two  Natural Vanilla flavours – Choco Fudge Cake and 100 percent Natural Vanilla  Gelato, an ice cream produced only using natural ingredients, introduced for the premium segment. The  primary difference being that the ratio of ice cream and air is 70:30 in Gelato vs.30:70 in other ice cream• Players are capitalizing on the market which has become extremely health conscious Company  Product  Health Benefits Hindustan Unilever (HUL) Moo  High calcium content, low calorie and fat Increases immunity, help in digestion,  Probiotic range – GCMMF prevents diarrhoea  and growth of colon  Amul Prolife  cancer Mother Dairy Diet  Diet Low sugar and fat content Low sugar and fat content ICE CREAM MARKET – INDIA.PPT 12
  • 13. Companies are setting up franchises or entering into partnership to develop their distributional network Enhancing network through franchises and strategic partnerships Company Projects HUL Kiosks  Kiosks ‐ SwirlsFranchising g Increase Amul Parlours from 1,800 to 3,000 in 2008 and 10,000 by 2009, Cyber stores in 100 cities, Cyber clubs  GCMMF in 125 cities Hatsun Agro Premium ice cream outlet – Arun Ice Cream Unlimited Milkway Express Milkway Express 1000 outlets in southern and central India by 2009, counters at corporate campuses 1000 outlets in southern and central India by 2009 counters at corporate campuses Baskin Robbins Outlets in malls and multiplexes Company Affiliation Purpose Indian Oil Corporation (IOC) p ( ) Retail stores at petrol stations p HULPartnerships Oxicash Marketing via scratch and win contests GCMMF Bharat Petroleum Corporation Ltd (BPCL) Mobile kiosks at petrol stations Baskin Robbins Lifestyle, Coca‐Cola, ICICI credit cards and Cox & Kings Exclusive retailingP Milkway Express Spencer Retail Ltd and Foodworld Targeting the southern market Re‐launch brand in Mumbai, Delhi, Bangalore,  Movenpick Rhapsody Foods & Beverages Hyderabad, Kolkata and Chennai Strengthens marketing, sales and distribution. Strengthens marketing sales and distribution ICE CREAM MARKET – INDIA.PPT 13
  • 14. Falling prices of raw materials reducing production costs assisted by government policy has benefited the players Falling input costs offsetting milk and sugar price rises • Vanilla prices have fallen drastically to INR 100 per kg from INR 3500 per kg in 2003  Vanilla being the most preferred flavour in the market allows players to maximise profits Cost incentives  has made  has made• In February 2006, the government removed the 16% excise duty on ice cream, which offset the  investments  rise in milk and sugar prices in 2006 and 2007 attractive  Prices of Sugar Medium grade: Delhi Milk Prices 2500 40 35 er Litre Quintal 2000 30 1500 25 INR/Q 20 INR pe 1000 15 500 10 0 5 0 04 05 06 07 08 5 6 7 8 ‐0 ‐0 ‐0 ‐0 p‐ p‐ p‐ p‐ p‐ 0 1 2 3 4 5 6 7 8 ar ar ar ar ‐0 ‐0 ‐0 ‐0 ‐0 ‐0 ‐0 ‐0 ‐0 Se Se Se Se Se M M M M t t t t t t t t t Oc Oc Oc Oc Oc Oc Oc Oc Oc Prices of Sugar Medium grade: Delhi MRP of GCMMFs Amul Gold Milk MRP of GCMMFs Amul Taaza Milk ICE CREAM MARKET – INDIA.PPT 14
  • 15. •Market Overview•Drivers & Challenges Drivers & Challenges•Trends•Competition•Key Developments ICE CREAM MARKET – INDIA.PPT 15
  • 16. GCMMF is the market leader with strong competition from HUL, Vadilal and Mother DairyMajor Players Market share • Fiercely competitive due to attractive economics  with profit margins ranging between 30‐50% 55% Unorganized• Organized sector comprises GCMMF’s Amul,  HUL’s Kwality Walls, Mother Diary, Baskin  Robbins and a number of regional brands• Amul is the market leader and is at the forefront  of targeting the rural market ft ti th l k t i d Organized 45%• For most national players viz. GCMMF, HUL and  Mother Diary, revenue from ice cream accounts  Vadilal  for a small portion of their total revenues GCMMF 15%• Premium segment: Premium segment: 37%  Baskin Robbins is the single largest premium ice  cream brand 14% Mother Diary    New entrants include Amul, Movenpick, Haagen Dazs  and Snowberry 13% 16% 5% HUL Others Baskin Robbins  A well established unorganized sector creates a fiercely competitive environment for the  larger players ICE CREAM MARKET – INDIA.PPT 16
  • 17. •Market Overview•Drivers & Challenges Drivers & Challenges•Trends•Competition•Key Developments ICE CREAM MARKET – INDIA.PPT 17
  • 18. Key DevelopmentsDate Development15‐Dec‐ 08 Snowberry USA, an American ice cream retailer, is planning to enter the Indian ice cream industry with an investment of  USD 50 mn in 2010 through a franchise known as Snowberry India Private Limited.23‐July‐08 In July 2008 Devyani Food International, owned by RJ Corp, acquired Cream Bell. Cream Bell which was valued at USD 29  In July 2008 Devyani Food International owned by RJ Corp acquired Cream Bell Cream Bell which was valued at USD 29 million in 2007 today stands at around USD 95–106 million. Cream Bell has launched four new flavours in 2008 namely  Belgian Chocolate, Chocolate Coffee, Almond Fudge and Strawberry. RJ Corp has decided to set up a production facility in  Goa with an investment of USD 8.5 million. The plant will have a capacity of 6 million litres. This will allow them to cater to  the southern and western markets in the country. They have invested USD 21.3 million towards capacity creation this year. 24‐June‐08 Dairy Foods set up the first ever ice cream factory in the Kashmir Valley. They have invested USD 0.5 million on this project.  y p y y y p j13‐May‐08 Movenpick, a Switzerland‐based company, through a distribution arrangement with Rhapsody Foods & Beverages, re‐ launched their brand in Mumbai, Delhi, Bangalore, Hyderabad, Kolkata and Chennai. They are planning to develop retail or  kiosk outlets in other cities by 2009. 31‐July‐07 Dominoes Pizza is also planning to enter the ice cream segment in India. The company will introduce ice creams in vanilla,  strawberry and chocolate flavours. Their product will be made available in dining and home delivery concepts. strawberry and chocolate flavours. Their product will be made available in dining and home delivery concepts.18‐June‐07 New Zealand Natural, a global ice cream parlour chain, has tied up with Manju Enterprises to launch 100 outlets in the  country by 2009. Taking an aggressive strategy, New Zealand Natural is offering its franchisees a margin of 50 per cent. ICE CREAM MARKET – INDIA.PPT 18
  • 19. Thank you for your timeFor an updated report or any customized research requirements, please contact:Gaurav KumarE‐Mail: gaurav.kumar@netscribes.com; sales@netscribes.comPhone: +91 33 4064 6214; +91 983 030 9715Netscribes’ Services:RESEARCH & ANALYTICSRESEARCH & ANALYTICS MARKET INTELLIGENCE MARKET INTELLIGENCE CONTENT SOLUTIONS CONTENT SOLUTIONSInvestment Research Market Monitoring & Competitive  Social Media MarketingEnterprise Market Research Intelligence Marcom Support ServicesPatent Research Sales & Prospect Intelligence Content Management ServicesSyndicated Market ResearchS di t d M k t R h Listening & Media Monitoring Li t i & M di M it i Book Packaging Services B kP k i S i Brand SurveillanceFor further details, visit us at: www.netscribes.comAbout NetscribesNetscribes supports the organic and inorganic growth objectives of global corporations through a combination of Enterprise Market, Investment & Patent Research, Market & Sales Intelligence, Social Media Monitoring & Management and Custom Publishing solution.Disclaimer: This report is published for general information only. High standards have been used for preparing this market research report; Disclaimer: This report is published for general information only High standards have been used for preparing this market research report;however, Netscribes, Inc. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. ICE CREAM MARKET – INDIA.PPT 19

×