SEMINAR ON STRATEGIES OF ICECREAM COMPANIES

SUBMITTED TO:DR. RAJEEV KANSAL

SUBMITTED BY:ISHA BANSAL(296)PALLAVI AGARWAL(299)MFC-I

MOTHER DAIRYMOTHER DAIRY

Mother Dairy – Delhi was set up in 1974 under the Operation Flood Programme. It is now a wholly owned company of the National Dairy Development board (NDDB).

Mother Dairy markets & sells dairy products under the Mother Dairy brand (like Liquid Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and the Safal range of fresh fruits & vegetables, frozen vegetables and fruit juices at a national level through its sales and distribution networks for marketing food items .

VISION

Nourishing people’s lives everywhere everyday.

MISSIONMother Dairy seeks to serve consumers and enthusiasts by exceeding minimum acceptable quality standards and by providing the highest quality product at the lowest possible price. Our commitment to our customers with in the country will be reflected through honest and responsible business.

SWOT ANALYSIS

•Adequate availability of raw Adequate availability of raw materialsmaterials•High consumer retention rateHigh consumer retention rate•Price, a competitive Price, a competitive advantageadvantage•Natural productNatural product

•Seasonal availability of fruitsSeasonal availability of fruits•Brand acknowledgementBrand acknowledgement•Limited financial resourcesLimited financial resources•Late entry into the marketLate entry into the market

•Participation with a growing Participation with a growing industry.industry.•Wellness awareness amongst Wellness awareness amongst consumersconsumers•Commonwealth Delhi 2010Commonwealth Delhi 2010•Success of incredible India Success of incredible India campaigncampaign

•Cut throat competitionCut throat competition•Unstable government policiesUnstable government policies•Global warmingGlobal warming• Scarcity of raw materialScarcity of raw material

MARKETING STRATEGY

According to the Securities Exchange Commission (SEC) annual report, MOTHER DAIRY uses natural ingredients, high product quality, periodic introduction of new flavors, focus on grass-roots community involvement and the “down home” local image are essential elements of the company’s marketing strategy. In addition, the company is well known for it’s creative television advertising and public relations campaigns.

CORPORATE STRATEGY

In 1992, MOTHER DAIRY became the first publicly held company to adopt the CERES (Coalition for Environmentally Responsible Economies) . CERES is a non-profit coalition of interest groups working in partnership with companies towards the goal of corporate environmental responsibility worldwide. This involvement with CERES is evidence of the company’s dedication to protecting the environment and insurance that consideration is made to the environment when managing and operating its business.

BEN AND JERRY

Ben & Jerry's Homemade, Inc., the Vermont-Ben & Jerry's Homemade, Inc., the Vermont-based manufacturer of super-premium ice based manufacturer of super-premium ice cream was founded in 1978 in a renovated cream was founded in 1978 in a renovated gas station in Burlington, Vermont, by gas station in Burlington, Vermont, by childhood friends Ben Cohen and Jerry childhood friends Ben Cohen and Jerry Greenfield with a modest $12,000 Greenfield with a modest $12,000 investment. The company is now a leading investment. The company is now a leading ice cream manufacturing company known ice cream manufacturing company known worldwide for its innovative flavors and all-worldwide for its innovative flavors and all-natural ingredients made from fresh Vermont natural ingredients made from fresh Vermont milk and cream (www.benjerry.com). milk and cream (www.benjerry.com).

VISION….

““To be capable to deliver the range To be capable to deliver the range and quality of ICE CREAM which the and quality of ICE CREAM which the customer demands, which can only customer demands, which can only be fulfilled by the modern be fulfilled by the modern technology which will have the scale technology which will have the scale and worldwide presence to do so and worldwide presence to do so competitively”competitively”

 

The general corporate strategy can be characterized The general corporate strategy can be characterized as a focused or market strategy based primarily on as a focused or market strategy based primarily on product differentiation and quality production. product differentiation and quality production. Although focused differentiation strategies target a Although focused differentiation strategies target a narrow buyer segment, this strategy helps Ben & narrow buyer segment, this strategy helps Ben & Jerry’s gain a strong competitive advantage as it can Jerry’s gain a strong competitive advantage as it can offer consumers something they perceive is offer consumers something they perceive is appealingly different from rival competitors—appealingly different from rival competitors—innovative super-premium ice cream flavors that innovative super-premium ice cream flavors that taste better and consist of all natural, high quality taste better and consist of all natural, high quality ingredients. ingredients.

CORPORATE STRATEGY

PRODUCT DIFFERENTIATION

One means of gaining a competitive advantage is through the use of a differentiation strategy to provide a better product that buyers believe is worth the premium price (Thompson and Strickland, 1998). Since higher quality ice cream generally costs more than the economy and regular types of ice cream, Ben and Jerry’s has incorporated product differentiation in its general corporate strategy in order to command a higher price.

KWALITY WALLS

Kwality Wall’s was launched in 1995 as Hindustan Unilever Ltd ‘s. master brand for ice creams. With in-depth knowledge of the Indian market and Unilever’s state-of-the-art technology, Kwality Wall’s has been delivering superior quality products under its international brands. Hindustan Unilever started by merging 6 existing ice cream brands in the country and then launched Kwality Wall’s range of ice creams and frozen desserts.

VISION….The KWALITY company is dedicated to the notion that people need to eat healthy, better tasting foods. And, by making our ice cream ,KWALITY uses only the freshest and delicious milk.

MISION

Our Mission is to add vitality to life.We meet everyday needs to nutrition, hygiene and personal care that help people feel good, look good and get more out of life!

SMALL SCALE GROWTH AND FRANCHISING STRATEGY

The mission of the company (to achieve profitability, increase value to shareholders and create career opportunities) is implemented through KWALITY WALLS strategy for small-scale business growth. IT has maximized profitability by initially starting small and slowly building an ice-cream business over time .Ultimately, the success at the small-scale required the company to shift its corporate strategy toward the establishment of several franchised “scoop shops” throughout the nation. As of 2008, there were approximately 598 scoop shops in INDIA.

BRAND LOYALTYDeveloping brand loyalty is another strategic move to strengthen competitive advantage. KWALITY WALLS has made substantial efforts to gain a favorable reputation and image with buyers through its frequent promotional campaigns (i.e., Free Cone Day), donations to social causes , and the use of eco-friendly products, This strategy has proven successful; regarding buyer perception of corporate reputability ranked KWALITY WALLS first in the “social responsibility” category (SEC Report, 1999).

PRICING STRATEGY

Our pricing strategy is to introduce the new products in the market at lower prices so as to create the huge demand in the market and to compete with other competitors.As we come up in the demand, we will increase our prices and will provide more efficient ,affordable and tastier ice creams!

COST CUTTING STRATEGY

Kwality walls eliminated several stock keeping units, rationalised manufacturing infrastucture and brought its focus down to six mainline cities only, where 60% of the icecream market exists.

INTRODUCTIONAmul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India. AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand.

VISION & MISSIONVISIONTo be amongst the leading distributors for consumer milk products and to continuously forward integrate our distribution model and thus keep the leading edge in distribution. MISSIONTo build Sustainable Competitive Advantages and Unique Selling Proposition for our customers.

To create business leverage and thus provide competitive prices to our customers consistently without compromising on service quality.

PRODUCT POSITIONING STRATEGY

Placing a product in that part of the market where it will receive a favorable reception compared to competing products.India’s First Pro-Biotic Wellness Ice cream & Sugar Free Delights For Diabetics.Low Priced Amul Ice Creams made Kwality Walls life hell.

PRODUCT DESIGN STRATEGY

“Whether to offer standard or customized products.”

Amul has offered a mix of both standard and customized products.

Use of Utterly-Butterly Girl: Using since 1967. Entered in the Guinness Book Of World

Records for being the longest running campaign ever.

UMBRELLA BRAND STRATEGY

The network follows an umbrella branding strategy. Amul is the common brand for most product categories produced by various unions: liquid milk, milk powders, butter, ghee, cheese, cocoa products, sweets, ice-cream and condensed milk. By insisting on an umbrella brand, GCMMF not only skillfully avoided inter-union conflicts but also created an opportunity for the union members to cooperate in developing products.

INTRODUCTIONVerka milk plant was setup by the Punjab state cooperative milk producers fedreation ltd. popularly known as Milkfed which is financed by Punjab Government & National Dairy Development Board (NDDB) . It was formed with a view to integerate the production of milk and its procurement,processing and marketing in Punjab.

VISION AND MISSION

VISIONOur core purpose is "Working together to

create brands people love“. MISSIONThe core purpose captures the spirit of

what we are trying to achieve as a business.We collaborate and work as teams to convert products into brands.

PRICING STRATEGYPrice is an important element of marketing strategy.In rural areas,the role of price becomes more significant because of low purchasing power of rural masses.They consider this factor while pricing the product.Packaging cost of the product is kept as low as possible.

POSITIONG STRATEGYAfter analysing the preferences of the rural consumers it position its product in an appropriate way.It is done on the sense of belongingnes and quality leadership.After studying the rural habits,tastes and life style,it came up with a proper strategy to position the milk products in rural areas.

PROMOTION STRATEGYThe rural areas hardly have any agents,dealers or stockists.Verka has an advantage over the private enterprises because of their daily milk collection network of village level societies and the secretary of the society becomes a good medium to route the products to the ultimate consumer.Therefore,it gives secretary a retailer’s margin so that he gets motivated to sell the products.It uses credit facilities to boost the sales.

SWOT ANALYSIS

STRENGTHS Brand royalty among

the rural people. Good image of Verka

products. Rural people satisfy

with quality,price,quantity etc.

WEAKNESSES Lack of proper

advertisements by the plant,such as posters,glow signs etc.

Lack of proper distribution system

Lack of proper marketing network.

Contd..

OPPORTUNITIES Proper utilisation of

available resources to decrease the per unit cost.

By product utilisation for import substitution.

Growing demand for milk and milk products.

THREATS Introduction of

foreign products in Indian market.

Poor quality of milk.

INTRODUCTION

Nestle India is a subsidiary of Nestle S.A.,world’s biggest food company and a leading Swiss giant. Its business can be broadly classified into fou categories –milk products and nutritions,prepared dishes and cooking aids,beverages and chocolates and confectionaries.The company is focused on growing its market share through renovation and innovation of its existing brand in India.

VISION AND MISSIONVISIONNestle’s aim is to meet the various needs of the consumer every day by marketing and selling food of a consistently high quality. MISSIONAt Nestlé, we believe that research can help us make better food so that people live a better life.  We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs.

THREE PRO-LONGED STRATEGY

Beside focusing on competitive pricing ,it has adopted a three prolonged strategy of freshness (lower pipeline stock), availability (improve distribution network) and visibility (more shelf space at modern trade).

VALUE MARKETING STRATEGY

Providing a product that works as claimed, is accompanied by decent service, and is delivered on time.Commitment to quality.Value for moneyFostering Of Loyalty

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