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In Indian ice cream industry, there are different scale productions of ice cream, ranging from big multinational

companies producing ice cream in big factories to some single family which are producing ice creams in small factories. For example, in India, people used to eat big brands of ice creams and also eat road side ice creams which are made only from ice. It is analyzed that from the total Indian ice cream market only 30% of the market is organized and this shows the fragmented behaviour of the Indian market. There is no monopoly of one company which is deciding the moves of all the market, but there are many international and domestic firms with their respective market share. Ben & Jerry has analysed the Indian ice cream industry in the pattern of porter five forces model given by Michael Porter (Appendix-1). The five factors are: Threat of new entrants: In ice cream industry firms compete each other on the basis of product differentiation by offering its products to masses as well as to premium segment. With ice cream product, the switching cost of consumer is low. The threat from new players in the market is high because the manufacturing process is simple and not more costly. Powers of buyers: For ice cream manufacturing companies, the main supply chain members are retailers, which buy in large quantities and pushes the products to end consumer. There is high power of channel members and in case of individual consumers power of buyers will also be high as they can go for different ice cream brands. Power of suppliers: Quality is the supreme factor. In India, the agri -business is still not fully developed and is in developing stage. The concern for dairy producers which are now going for ice cream manufacturing is very less. So, the power of suppliers is low. Availability of substitutes: To make the tongue sweeter there are many alternative products like different sweets, Kulfi and Faludah. Kulfi is a traditional desert which is prepared by using cre am and Faludah is having rice noodle with flavours and are low in price so there is high pressure on ice creams as consumer can go for substitutes. Competitive Rivalry: There are some big companies in Indian ice cream market with many emerging companies and new companies trying to come in the Indian market making high competitive rivalry. Several multinational companies like New Zealand natural ice creams are started serving in Indian market. There are domestic players also which are emerging in this sector like Saras ice creams in Jaipur and Nirulas ice cream in Northern region of India. Advertising expenses also have increased as companies are advertising more to increase their market share (Elong et al, 2005). After analyzing the Indian ice cream market , with the help of porter model, it is clear that the ice cream market is having features of monopolistic market. Amul with its ice cream product has to compete in this monopolistic type of market. Following are the features of monopolistic market that also justifies that amul ice creams are in monopolistic market. Many sellers and buyers: In monopolistic market there are large number of buyers and sellers. No individual seller can set the price of the total market. In india the consumers of ice creams are also very large. In Indian ice cream industry there are many players like Amul on the top with 38%, Unilever with 9% of the total

market.(Amul, 2008). Other companies are vadilal, metro dairy, hatsun agro in south India, Baskin Robbins. There are large su permarkets and grocery stores which purchases the ice cream in huge quantity from these companies to sell to individual end consumer. Freedom of entry and exit for firms: In ice cream industry, the established firm can easily enter in the market with the new product using its existing channel distribution. New firms also can easily enter the market as manufacturing of ice cream is not much costly and there are no government regulations. The firms which are not gaining normal profits in the market can easi ly go out. Non Price differentiation: In monopolistic market, as a firm sets prices of their products according to the market. The firms compete with each other by giving offers and pack discounts to their customers. Advertising plays important role for companies in this market. Amul sets up different ice cream parlours in the country. Downward sloping demand curve: In ice cream industry as for all ice cream products the basic raw material is milk, and to compete in the market companies have to innovate their product as the demand otherwise will decline. Amul always comes up with different flavours and sizes in its ice cream. Current Strategies of Amul ice cream: - Amul launched its ice cream with a punch line real milk real ice cream, states that the company uses pure and fresh milk to produce ice creams. According to R.S. Sodhi who is chief general manager in GCMMF, Amuls strength lies in consistent good quality, trust and relevance in their products. Amul had never spent more than one percent of the total received revenues on advertising and marketing (Deccan herald,2007). According to current strategy, Amul will soon launch campaigns based on mass media advertising, designed by FCB-ulka. Amul is also increasing its number of ice cream parlours from 800 to 3000 and also increase in amul ice cream retail outlets from 60000 to 70000 (financial express,2007 ). By the year of 2010, Amuls target is to open 10000 ice cream parlours and to achieve 2.5 billion dollar figure. Amul is now adopting the aggressive strategy in their marketing and trying to make more direct relationships with the customers. (rediff news, 2007 ). Future strategies: As a management consultant, I suggest that amul should follow the following growth strategy in southern India. Considering only south India, amul is not that popular, as it is in northern India and should target to increase the reach in South India by the year 2010. In South India Hatsun Agros Arun ic e cream gives a very strong competition to Amul. Currently, Amul do not spend more on advertising for their ice creams in southern India, so there is an opportunity of more advertising and public relationship to get the maximum reach and grab more market. For success in Southern India, Arun ice cream came up with exclusive franchise parlours which were selling ice creams of Arun only, so to compete with arun ice creams, Amul also have to open more of ice cream parlours in southern India as they have in northern India (Hatsun, 2009). South Indians mostly like rice in their meals so, Amul can come up with more of ice creams like different variants of faludas, to increase the preference of consumers towards Amul. Like south Indians take coconut chutney in their meals, amul can introduce some coconut flavour ice cream. Arun ice cream do not target a particular consumer segment but, Amul should introduce more of its

existing sugar free range of ice creams and fitness candies in south India to target health conscious consumers as south Indian people prefer more of nutritious level in their eating habit (cultural india,2009). For manufacturing of all these products amul has to set up more factories in Southern India, to reduce transportation cost. On point of price amul always followed low pricing strategies for its ice creams and giving best quality. As, amul mission is to cater best quality ice cream, it has already build a strong image in Indian market. Amul can go for growth by external expansion like, vertical integration ie, merger with raw material suppliers at initial level to establish market and then giving contract to retail stores and supermarkets to reach to individual customer. By, these strategies Amul as well as whole Indian ice cream industry will be in profit. Today, the Indian ice cream industry is highly fragmented, as discussed earlier. There are very few big players and rest all are small players which makes the total market share. By, the above proposed strategy, Amul ice cream can increase market share and by the year 2010,In Indian ice cream industry which is in growing stage, there will be many MNCs and other big players, so, Amul has to retain its top position in the market. Conclusion: In the end, by above discussed report it can be analy zed that amul is in a monopolistic market and by the proposed strategy amul ice cream can be on top in southern India too by the year end 2010.
Market share: The Gujarat Cooperative Milk Marketing Federation states that all Amul range of ice creams builds 36% of market share following by 8% of Hindustan Unilevers kwality walls, then comes vadilal with 7% and Mother dairy acquires 7% (livemint,2007). Hatsun Ago with its product Arun and Baskin Robbins both forms 4% of the market each and 3% is contributed by Kolkata based Metro Dairy . (Das,D. Hindu business line ,2007) (Appendix-1). Competitors In the race, the fierce competitor of Amul is Hindustan Unilevers kwality walls. When introduced in Delhi market in 2003, which was already prevailing in flavour of Mother Dairy ice cream, product of National Dairy Development Board gave a strong competition and also Hatsuns, Arun ice -cream available in south India. Now, comes to some companies which melted in Indian ice cream industry. United States based companies like Blue Bunny pulled out from market as of high excise duties and low demand, And Baskin Robbins also first reduced its outlets and also tried reducing prices, But, nothing worked and today the number of outlets is very low (Roy, P. Rediff Money,2004). New player in India which is vastly spreading its reach is New Zealand natural ice cream, which is renowned in the world a nd now spreading its reach in India. New Zealand natural ice cream has opened its outlets in Haryana, Maharashtra, Punjab, Rajasthan and West Bengal (New Zealand Natural, 2008). Emerging player in this field is Saras ice cream based in Jaipur (Rajasthan), having milk products with ice crea m parlours and Nirulas is primarily a regional player based in Northern India and top n town ice creams and All Naturale parlours mainly in central India. The following companies are emerging in Indi an and in international market. They are Frolic foods company, Rupins company, Feroze Foods &Flavours and MTR foods, all are Indian based companies which manufactures ice cream in basic flavours and rich flavours(Indian industry 2008). Market position and Market developments: To beat Mother dairy ice cream in Delhi and Northern Capital Region, Amul adopted the market penetration strategy,

which resulted in 35 percent of market share worth of Rs.450 crore in period of four years. (Goyal M. And Mahurkar U., India today,2001). All Amul products sales turnover for 2006-07 is Rs. 42778 million and for year 2007-08 it was Rs. 52554 million with growth of 22.9 percent (Amul ,2008). In the fiscal year 2005-06,Amul Ice cream has reached to about 34 million litres of ice cream which made the companys value Rs.210 -crore and in 2006 -07 company achieved the volume of 42 million litres making turnover of Rs.270 crore in ice cream segment with an aim of getting turnover of 200 million litres by 2010 (Das,D. Hindu business line,2007). Amul ice cream got No.1 award in quality by a monthly consumer magazine, INSIGHT in May-June 2002 . All plants of Amul ice cream got ISO 9000 -HACCP certificate and soon will get ISO 22000 certification for its plants . (Amul ice cream, 2008). Market development: Amul was first to launched the sugar free ice cream to make Indian society healthy ,tri cones in which a cone is having three flavours and stamina candy which is Indias first fitness ice - cream, also by providing party packs, hence gaining first mover advantage.(Amul ice cream ,2008). Amul is also marketing ice cream mix which Hindustan Unilever does not. Amul is planning to extend the number of Amul Parlours from 1,800 to 3,000 and kiosks in 2008. To gain a competitive edge, Amul is also targeting modern trade channels to promote their brands even during the winter (Srinivasan L., Financial Express,2008).

Appendix-1

market share

amul 36%

kwality walls 8%

31%

36%

vadilal 7%

mother dairy 7%

4% 4%
7% 3%

8% 7% hatsun agro product 4%

baskin robbins 4%

metro dairy 3%

all other small players 31%