HLL (now Unilever) launched Walls ice cream in India in the 1990s and pursued a strategy of acquiring local ice cream brands and partnering with Indian companies to build its ice cream business. It used strategic alliances and acquisitions to create the popular Kwality Walls brand. HLL analyzed the industry and competitors using Porter's Five Forces and conducted promotional campaigns to create brand awareness and expand the market. Through innovations like affordable softy cones and a distribution network reaching many towns, HLL was able to grow its ice cream sales and market share in India.

1. Building the Ice Cream Business
in India-- Unilever
GROUP 6

2. History
Case HISTORY
• HLL launched its international Walls range of ice creams
in India in the mid 1990s.
• HLL adopted a strategy of acquisitions of ice cream
brands and strategic tie ups with Indian groups to evolve
its ice cream business.
• The case deals with various marketing initiatives
introduced by HLL to create interest in the segment and
expand the market.

3. Marketing Strategy of HLL
STRATEGIC ALLIANCES
• Early 1990-Unilever entered food business through BBLIL.
• BBLIL acquired – kissan (UB Group) & Dollops(Cadbury)
• Mid 1990– Alliance Kwality Ice cream Group.
• 1995- Acquired marketing and distribution rights of Milkfood
100%.
• 1996- BBLIL merged with HLL.
All smaller brands were phased out and Kwality Walls emerged
as a Mother Brand.

4. Product portfolio
Product Price (INR) Target Segment
Feast Range 15 Young generation with
an attitude!
Cornetto Range 20-30 Young adults
Max Range 0.25-5 Solely children
Sundae Range 90+ Family, take-home,
10pm frozen desserts

5. Consumer Analysis
• Consumption of ice cream per head was very low.
• Psychological factors.
• Ice cream eating at home was confined to special
occasions.
• Indian palette restricted to three flavors - Vanilla,
Chocolate and Butterscotch.

6. Competitive Advantage
Seeking Competitive Advantage
Two types of analysis
• Industry Analysis – Porter’s Five Forces Model
• Comparative Analysis -- Structural and
Responsive Advantage

7. Porter’s 5 Force Analysis
Within the Industry:
Competition is very intense due to low differentiation. Ice cream
industry accounts to around 2000 cr & organized segment is 1000-
1100 cr.
• Amul
• Mother Dairy
• Baskin & Robbins
• Local competitors

8. Porter’s 5 Force analysis
Threat of new Entrants:
• High in the industry
• Liberalization and globalization policies made
it easier for foreign player to enter the Indian
market e.g.. Haagen Dazs and Baskin Robbins

9. Porter’s 5 Force analysis
Threat of Substitute:
• Threat of substitute is very high for ice creams in Indian
market due to its culture of traditional sweets and desserts.
Some of the substitutes are :
• Traditional sweets
• Home made desserts like Halwa and Kheer
• Kulfi or Faludas

10. Porter’s 5 Force analysis
Bargaining Power of Buyer:
Pretty high
• Availability of existing substitute products
• Buyer Price sensitivity

11. Porter’s 5 Force analysis
Bargaining power of Suppliers:
Bargaining power of suppliers is pretty low as
manufacturer can easily switch to a different
supplier at low cost

12. Competitor Advantage
Comparative Analysis
Specific advantage of competitors within a
given market.
Two types:
• Structural advantage
• Responsive advantage

13. Comparative Analysis
• Structural Advantage–
 Hll being a parent company is a huge advantage to kwality
walls
 Manufacturing units are located across major cities in India
• Responsive Advantage—
 Strong adaptability to the changing tastes of the
consumers (introduction of Foreign Flavors)
 Unique value

14. Opportunity & Threat Analysis
Opportunities
• In the early 2000s, the consumption of ice creams
per head in India was very low at 250 ml
• In 1997 Gov liberalized the rules for the ice cream
industry which resulted in a 15-20 % growth per
annum
• Huge number of young population which is
prevalent in India

15. Opportunity & Threat Analysis
Threats
• Powerful local players in the market (Top n Town
very popular in MP & UP, Cream Bell, Metro).
• Entry of the foreign brands like BR, McDonalds.
• Indian Sweets Market.
• Substitute products has a strong hold in the
consumer psyche of tier 2 and tier 3 cities.

16. 4 Phase Strategy by HLL
• Product innovation (Take home segment and
softy cones)
• Communication
• Activation & Visibility
• Distribution

17. Softy Cones
• HLL announced the launch of Softy kiosks for selling softy ice
creams in 2000
• The product was priced at Rs.5 per cone
• HLL pursued a different business model. The company
provided the Equipment, Training, Advertising and Quality
standards while the franchisee provided the Place and
Manpower
• Hygienic (No human contact)

18. Strategic Changes in Softy Biz
• Problem: Higher investments 3 lakhs for machine
and a high priced mix.
• HLL reacted by introducing a softy machine worth
Rs.I.5 lakh and products at various price points.
• Like a plain softy sold at Rs.7, a softy with a sauce
topping sold for Rs.12 and an addition of nuts
made the price Rs.17

19. C Communication-Promotional Strategies
• Kwality walls used some excellent promotional
strategies to create its brand in the Indian market
• They promoted Kwality walls as an umbrella
brand and developed different brands under it
like Cornetto and Max
• Had different advertisement and promotion
campaigns to cater to its target market

20. Promotional Campaigns
• May 2001 - What's on your stick?
• Valentine's Day (2001)-Cornetto Khao, Jodi Banao
• March 2002 to May 2002- Ek Din Ka Raja
• 2002- Fridge mein Kwality Walls hai kya
• 2003- Max The lion king, Bano Toonstar with Scooby Doo.
• 2003( Festive Season) Max Rocket and Max Chakri for kids
and Cornetto range and Pista Kulfi for Adults.
•

21. Results-Resource Based View
• With superb promotional strategies they were able to
create a differentiated product image
• EKDR sales touched 1million customers.
• They were able to create an intangible resource for
sustainable Competitive Advantage i.e. Brand name.
• As tangible resources they had a great distribution network
and positive cash flows

22. Superior Distribution
• Home delivery systems in Delhi, Chennai, Mumbai and
Hyderabad
• Strategic tie ups with Pizza Corners
• Exclusive parlors & DFO’s (now Swirls)
• Colorful ‘Trikes’ with Voltas cooling solutions helped
HLL to reach 900 towns by 2001 end and a quarter of
sales came from them

23. Competitive Strategy
Kwality walls and their main competitor i.e.
Amul believes more on a Red Ocean thinking
viz. head on competition with each other and
attacking on every price points.

24. Conclusion
• Was able to create a brand through some
excellent Promotional Strategies.
• Concentrated on quality of their products to
retain their brand value.
• Were able to create a sustainable cost advantage
with low cost freezing units and softy kiosks.
• Were able to connect with Indian consumer
psyche and gain their affection.

25. Recommendations
• They have to tap the Tier 2 and Tier 3 cities, which has great
potential.
• Can create a new relatively low priced umbrella brand to tap
the rural market.
• Promotional campaigns to fight against their Substitutes like
Sweets and chocolates.
• Can have more Indian flavors in 15- 20 Rs segment.
• Introduce “Falooda” Cups.

26. Thank you