lacks the distribution chain & cold chain part...

1. Building the Ice Cream Business
in India-- Unilever
By:
Ajay Singh
Bhargab Dhar
Debajyoti Ghosh
Debnath Ganguly
Kushal Gayakwad
Joydip Pati
Manisha Bajaj
Monika Raheja
Pallab Ghosh
Rajarshi Mitra

2. Case HISTORY
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