"The only emperor is the emperor of ice cream."

Comparative Analysis of Different Ice-cream players in Navi Mumbai Market

AN EMPIRICAL STUDY

*Mamta Dhankute, Assistant Professor, Department of Business Management ,Padmashree Dr. D.Y.Patil University, Navi Mumbai

(mamta.dhankute@gmail.com)

**Neetu Sharma, Assistant Professor, Department of Business Management ,Padmashree Dr. D.Y.Patil University, Navi Mumbai (6neetusharma@gmail.com)

*** Prof. Dr. R. Gopal Director, Dean and Head of the Department, Department of Business Management, Dr. D.Y.Patil University, Navi Mumbai.

ABSTRACT:

By the ‘comparative analysis of different ice-cream players in Navi Mumbai’ we tend to know about the FMGC industry of ice-cream in India and abroad, the scope and the growth. To find out the market leader in the field of ice-cream, the problems faced by different players in the field, consumer buying behavior, the preferred products, the market share of different players. Research methodology to be used for primary and secondary data to be collection, pricing of different products, choice of flavors by customers and recommendations to be given.

1. INTRODUCTION:

Basically the ice-cream business comes under FMCG sector. It refers to the Fast Moving Consumer Goods which are non-durable and daily use products. It is also called as consumer packed goods industry. It deals in five segments, Personal care, Household care, Food & Beverage, Stationary and Oral care. FMCG sector is an evergreen sector and there is no chance of downfall or huge recession in this sector. Vast rural market, consumer’s increasing spending power, increasing of population and entrance of MNC’s in FMCG sector are indicate the upcoming great opportunity in this sector.

In India, the condition of FMCG sector is very well and challenging. India is an important market for FMCG players. The Indian FMCG sector is the fourth largest sector in the economy with a total market size of around US$ 18.1 bn.

The Ice Cream Industry: An Overview

Looking at some industry facts first. In 2007, the global market of ice creams was pegged at $61.6 billion in terms of retail value or 15 billion liters in terms of volume. Of this, the Asia-Pacific ice cream market was worth $13 billion in terms of retail value and 5,128 million liters in terms of volume. Coming to India, the Indian ice cream industry is currently estimated to be worth Rs. 2,000 crores, growing at a rate of approximately 12%. RS Sodhi, Chief General Manager of Gujarat Co-operative Milk Marketing (GCMMF), the makers of ‘Amul,’ explains, “The ice cream market in India can be divided into: the branded market and the grey market. The branded market at present is 100 million liters per annum valued at Rs. 800 crores. The grey market consists of small local players and cottage industry players.” In 2008-09, in the branded ice cream market, Amul held the number one spot, with a market share or 38%, followed by Kwality Walls at 14%, Vadilal at 12% and Mother Diary at 8%.Despite a decent growth rate, the ice cream industry faces the challenge of low per capita consumption.The per capita consumption of ice cream in India is approximately 300 ml, as against the world average of 2.3 liters per annum.Vanilla, Strawberry and Chocolate together constitute approximately 60% of the market.

The per capita consumption of ice creams in India is just 300 ml per annum, compared to 22 liters in the US, 18 liters in Australia, 14 liters in Sweden. India is a way too far behind even in terms of the world average per capita ice cream consumption of 2.3 liters per annum. This when India is a country with hot climate with a young population. Pankaj Chaturvedi, Executive Director of Baskin Robins, explains “Indian cuisine has a huge range of desserts in its mix. Ice cream always competes against these for attention.” Besides desserts, ice cream also vies for attention with other like foods for example in summers with cold drinks, coffee, juice, etc.

Another trend that is witnessing a change is the seasonal nature of the industry. Having said that, the peak season for ice cream still remains the summer months of April-June and dips in the months of November-February. According to the industry players, this trend especially holds true for the North and the Western parts of India. According to Pankaj Chaturvedi, “The variation in sales for Baskin Robins can range from 15–30% from season to off season depending on geography and brand.

Till few years back, consumers used to go out for walk after dinner and bought ice-cream as their sweet-after-dinner or dessert from street hawkers. But now consumers, who often visit malls for entertainment, prefer to buy ice creams during different times of the day as it is visible upfront and they feel that spending Rs. 50 for that tasty chocolate swirl with cake and nuts is worth it. As marketers understand the different needs of consumers, be it

health conscious people, kids, youngsters, etc., they are coming up with products specific for them. Along with a portfolio of flavors, consumer today has plethora of options at hand to choose from and therefore high probability of buying one more scoop of ice cream. Also with increasing wallet size and innovative modern retail formats, it has definitely given a philip to the ice cream industry in India.

2. PROBLEM STATEMENT

As the market is highly competitive, different players have adopted different strategies to

cater to their target Profit through effective accounting implementation. Finance is the

life blood of the of the organization so how this players are planning and managing the

finance of their enterprise. A market research has to be carried out to study the

accounting behaviour and the different factors affecting the purchase decision of the

consumer. The most popular/preferred flavours for both impulse segment as well as for

family segment have to be identified. The most effective price points for both impulse

segment and family packs have to be identified and whether these price points effect the

sales of ice creams or not. Therefore, the study entitled "The only emperor is the

emperor of ice cream." Comparative Analysis of Different Ice-cream players in Navi

Mumbai Market, to find the market leader with the under-mentioned objectives:

Objectives of the Study

To study the consumer buying behaviour regarding ice creams and the factors

affecting consumer’s purchase decision

To identify the most preferred flavours of ice creams for both impulse and

family pack segment in the market for different brands.

To study pricing as a strategy for the sale of ice creams.

To identify the market leader among the various players in the ice-cream

industry of Navi Mumbai.

3.RESEARCH METHODOLOGY

Following research methodology was adopted for the accomplishment of the assigned

objectives.

3.1 Research Design

Descriptive research design was adopted for the study.

3.2 Data source

Secondary data: The secondary data were collected from books and from the internet.

Primary data: Primary data were collected from various consumers of ice cream in

different regions and from retail outlets where ice creams are sold. The data were

collected for getting first hand information regarding the study of consumer behaviour for

purchase of ice creams keeping price point as the major factor of consideration. Prices of

different ice creams of different brands were also collected.

3.3 Area of Study

Navi Mumbai region was undertaken for the research purpose

3.4 Sampling plan

3.4.1 Sampling Technique

Convenience sampling as well as snowball sampling technique was used for selecting the

consumers, retailers and push-carts from different areas.

3.4.2 Sample Size

In the present research, the sample size was taken as 250.

3.4.3 Sampling Unit

The sampling units consisted of 200 consumers, 40 each from north, south, west, east and

central Delhi, 30 retailers, 10 each from different regions and 20 push carts, 4 each from

different regions.

3.5 Research Instrument

Data was collected with the help of help of questionnaire having close -ended questions.

Interviewees were provided a questionnaire which they could fill up as per their choice.

3.6 Analysis of Data

Collected data were coded, classified, tabulated and interpreted. Based on the response

received from respondent appropriate statistical tools like average, percentage, ranking

were used and inferences were made.. For representation, information charts, graphs were

used.

4. RESULTS AND DISCUSSIONS

4.1. Consumer Behaviour

Increase in Consumption during summers

Exhibit 4.1 Increase in consumption of ice-creams in summer season

It was observed that as summer season arrives, there is an increase in the consumption of

ice-creams and 80% consumers agreed to this while 20% said that their consumption was

not effected due to the change in seasons.

Brand Recall

Exhibit 4.2 Brand Recall for different brands of ice-cream

As Amul enjoys leadership in Navi Mumbai, therefore, the brand recall for Amul was maximum followed by Kwality Walls, Mother Dairy, Cream Bell, Vadilal and other brands (Nirulas, Baskin Robbins and other local players).

Preference for Brands

Exhibit 4.3 Preference of brands among consumers

Amul was the most preferred brand among the consumers, the second being Kwality Walls, third being Mother Dairy followed by Vadilal and Cream Bell at fourth and fifth place respectively.

Consumption pattern

Exhibit 4.4 Consumption pattern when consuming alone

Exhibit 4.5 Consumption pattern when cosuming with family

The above given graphs show the consumption pattern of consumers. While the first

graph shows the consumption pattern when consuming alone, the second one shows the

consumption pattern when consuming ice-cream along with family.

Brand/Price consciousness

Exhibit 4.6 Brand and Price consciousness among consumers

65% of the consumers said that they considered the brand as an important aspect when

taking a purchase decision, 35% said that they were more conscious about the price of the

ice-creams.

Choice of Flavors

Exhibit 4.7 Choice of flavours among consumers

New flavours are being launched into the market everyday as consumers get bored by

tasting the same flavours time and again. Therefore, companies have to make sure that

new flavours should be launched after a specific period of time. But the simple fact which

still prevails is that majority of the consumers still go for the conventional kind of

flavours which has been justified by the data that 61.5% of the consumers loved

conventional flavours like chocolate, vanilla, strawberry, and butter scotch etc., 38.5%

consumers said that they loved going for premium flavours like kesar pista, almond

fudge, kaju kishmish, fresh strawberry, shahi nazrana, fruit & nut, tutti-frutti etc. We can

say that the market for premium flavours is growing rapidly but conventional flavours

still remain the favourite among the consumers.

Preference for novelties

Exhibit 4.8 Preference of novelities among consumers

When going for impulse purchase, most of the consumers went for cones (29%) followed

by sundaes (28%), Stick bars (21%), Cups (18%), other forms like wafer-ice creams,

biscuits filled with ice-creams etc. (3%) and finally Sticks ice candies (1%).

Awareness for new brand/flavour

Exhibit 4.10 Sources of awareness for new brand/flavour among consumers

Television, newspaper and words of mouth were the most effective way of awareness of

a new flavour or a new brand among the consumers.

Mother Dairy Amul Cream Bell Vadilal

Vanilla 52% 31.5% 3.5% 13%

Strawberry 42% 29% 10% 19%

Choc-chips 46.5% 41% 2.5% 10%

Butterscotch 33.5% 34% 9.5% 23%

Mango 42% 27.5% 6% 24.5%

Table 4.1 Preference of brands for most preferred flavours in family segment

We can see from the above table that that when going for Vanilla flavour, the first

preference of consumers was Mother Dairy followed by Amul, Vadilal and finally Cream

Bell. Similarly, Strawberry flavour, consumer preference for Mother Dairy is the highest

followed by Amul, Vadilal and lastly, Cream Bell. When going for Choc- Chips flavour,

consumer preference for Mother Dairy is the highest followed by Amul, Vadilal and

lastly, Cream Bell. When opting for Butterscotch flavour, consumer preference for Amul

is the highest followed by Mother Dairy, Vadilal and lastly, Cream Bell. In case of

mango flavour, consumer preference for Mother Dairy is the highest followed by Amul,

Vadilal and lastly, Cream Bell.

Vanilla Strawberry Choc-chips Butterscotch Mango

Mother

Dairy

24% 19% 23% 16% 18%

Amul 19% 18% 25% 21% 17%

Vadilal 14% 22% 11% 26% 27%

Cream Bell 11% 31% 8% 28% 22%

Table 4.2 Preference for most preferred flavours in family segment among different

brands

The above table shows that in Mother Dairy, the flavour preference according to different

flavours in the family pack segment is as follows:

a) Vanillab) Chocochipc) Strawberryd) Mangoe) Butterscotch

Similarly in Amul, the flavour preference according to different flavours in the family

pack segment is as follows:

a) Chocochipb) Butterscotchc) Vanillad) Strawberrye) Mango

In case of Vadilal, the flavour preference according to different flavours in the family

pack segment is as follows:

a) Mangob) Butterscotchc) Strawberryd) Vanillae) Chocochip

When going for Cream Bell, the flavour preference according to different flavours in the

family pack segment is as follows:

a) Strawberryb) Butterscotchc) Mangod) Vanillae) Chocochip

Decision Basis for Family Pack Purchase

Exhibit 4.11 Brand/price consciousness when purchasing family packs

When going for family pack purchase, 36.5% of people were price conscious whereas

63.5% were brand conscious.

Mother

Dairy

Kwality

Walls

Cream

Bell

Vadilal Amul

Butterscotch

Cone

25% 23.5% 11% 9.5% 31%

Orange Ice-

candy

25.5% 37.5% 12% 6% 19%

Choc-bar 13.5% 34% 14% 9% 29.5%

Vanilla Cup 33.55 31% 9.5% 3.5% 22.5%

Mango Dolly 13% 20% 6.5% 12% 48.5%

Table 4.3 Preference of brands for most preferred impulse novelties

The table depicts that when going for Butterscotch cone, consumer preference for Amul

is the highest followed by Mother Dairy, Kwality Walls, Cream Bell and lastly, Vadilal.

Similarly, when going for Orange Ice candy, consumer preference for Kwality Walls is

the highest followed by Mother Dairy, Amul, Cream Bell and lastly, Vadilal. When going

for Choc bar, consumer preference for Kwality Walls is the highest followed by Amul,

Mother Dairy, Cream Bell and lastly, Vadilal. In case of Vanilla cup, consumer

preference for Mother Dairy is the highest followed by Kwality Walls, Amul, Cream Bell

and lastly, Vadilal. When opting for Mango dolly, consumer preference for Amul is the

highest followed by Kwality Walls, Mother Dairy, Vadilal and lastly, Cream Bell.

Butterscotch

Cone

Orange Ice

candy

Choc-bar Vanilla Cup Mango

Dolly

Mother Dairy 22% 23% 13% 30% 12%

Kwality Walls 16% 26% 23% 21% 14%

Cream Bell 21% 23% 26% 18% 12%

Vadilal 24% 15% 22% 9% 30%

Amul 21% 13% 19% 15% 32%

Table 4.4 Preference for most preferred impulse novelties among brands

The above table shows that in Mother Dairy, the flavour preference according to different

flavours in the impulse segment is as follows:

a) Vanilla Cupb) Orange Ice candyc) Butterscotch Coned) Choc bar

e) Mango Dolly

In case of Kwality Walls, the flavour preference according to different flavours in the

impulse segment is as follows:

a) Orange Ice candyb) Choc barc) Vanilla Cupd) Butterscotch Conee) Mango Dolly

When going for Amul, the flavour preference according to different flavours in the

impulse segment is as follows:

a) Mango Dollyb) Butterscotch Conec) Choc Bard) Vanilla Cupe) Orange Ice candy

In Vadilal, the flavour preference according to different flavours in the impulse segment

is as follows:

a) Mango Dollyb) Butterscotch Conec) Choc Bard) Orange Ice candye) Vanilla Cup

When opting for Cream Bell, the flavour preference according to different flavours in the

impulse segment is as follows:

a) Choc barb) Orange Ice candyc) Butterscotch Coned) Vanilla Cupe) Mango Dolly

Decision Basis for Impulse Purchase

Exhibit 4.12 Brand/price consciousness when purchasing impulse pack

When going for impulse purchase, 60.5% of people were price conscious whereas 39.5%

were brand conscious.

Combo Preference

Exhibit 4.13 Preference of consumers for complete/mixed set

Most of the consumers i.e. 81% preferred going for mixed set in combo preference

(Strawberry + Pineapple, Vanilla + Kaju Kishmish, Chocolate + Kesar Pista etc.) rather

than going for a complete set (Vanilla + Vanilla, Chocolate + Chocolate etc.).

Sugar-free and Pro-biotic Ice-creams

Exhibit 4.14 Preference for sugar-free and probiotic ice-creams

The above pie chart shows that 70% of the consumers are ready to pay a premium price

for Sugar Free and Pro-biotic Ice-creams while 30% are not.

Change Problem

Exhibit 4.15 Problem of change among consumers and retailers/push-cart hawkers

The above doughnut shows that only 12% of the retailers are losing out on their business

because of the problem of change.

Retailers Preference

Exhibit 4.16 Retailers preference for different brands

The above doughnut shows that the most retailers prefer selling Amul brand followed by

Kwality Walls, Cream Bell, Mother Dairy and lastly, Vadilal.

4.1.1 Factors affecting consumers purchase decision

The top 5 factors affecting the consumer’s purchasing decision were –

a) Quality

b) Convenience

c) Price

d) Taste

e) Variation in Flavors

The major factor responsible for switching of brands among consumers was the

better taste of other brand.

When asked about the improvements in the ice-cream industry, majority of the

people wanted more ice-cream related food in the market and more healthier ice-

creams to be launched.

4.2 Most running flavours

The most running flavours in the impulse segment were identified as follows :

a) Butterscotch cone

b) Orange Ice-candy

c) Choc-Bar

d) Vanilla Cup

e) Mango Dolly

The most running flavours in the family pack segment were identified as follows :

a) Vanilla

b) Strawberry

c) Choc-chip

d) Butterscotch

e) Mango

When going for combos, consumers prefer buying different flavors rather than

going for the same one and the most preferred combo of Amul was found out to

be Vanilla + Butterscotch.

The top 5 most selling novelties across all flavors and brands in the impulse

segment are –

a) Mango Dolly - Amul – Rs. 10 ( 60 ml )

b) Orange Ice candy – Kwality Walls – Rs. 5

c) Choc bar – Kwality Walls – Rs. 15

d) Vanilla Cup – Mother Dairy – Rs. 10

e) Choc bar – Amul – Rs. 10

75% of the retailers agreed that there was an increase in the sale of a particular

brand of ice cream when merchandising for that brand was increased.

The flavours falling short of demand for Amul were :

a) Shahi Anjirb) Fruit Bonanzac) Rajbhogd) Cappuccino

The flavours falling short of demand for Mother Dairy were :

a) Shahi Mewa malaib) 2 in 1c) Jamaican Almond Fudged) Strawberry Juiceee) Orange Juicee

The flavours falling short of demand for Cream Bell were :

a) Kesar badamb) Choco Coffee Almond fudge conec) Pineappled) Kewra Kulfi

The flavours falling short of demand for Kwality Walls were :

a) Fruit fusion

b) Black forestc) Black grape jellyd) Twister Zinge) Mocha Brownie Sundae

The flavours falling short of demand for Vadilal were :

a) Black Currantb) Litcheec) Amuice dry fruitd) Bombay bar

The observations at Mother Dairy carts and retailers were as follows –

1. Cups – 29.4%2. Cones – 17.64 %3. Sticks – 23.5%4. Sundaes – 5%5. Bricks – 23.5%

The observations at Kwality Walls carts and retailers were as follows –

1. Cups – 16.6%2. Cones – 38.8 %3. Sticks – 22.2%4. Sundaes – 16.6%5. Bricks – 5.5%

The observations at Amul carts and retailers were as follows –

1. Cups – 17.4%2. Cones – 21.7 %3. Sticks – 26%4. Sundaes – 13%5. Bricks – 21.7%

The observations at Cream Bell carts and retailers were as follows –

1. Cups – 20%2. Cones – 20 %3. Sticks – 33%

4. Sundaes – 2%5. Bricks – 25%

The observations at Vadilal carts and retailers were as follows –

1. Cups – 15%

2. Cones – 19 %

3. Sticks – 9%

4. Sundaes – 27%

5. Bricks – 30%

3.3 Most preferred Price points

The most preferred price point for impulse segment was found out to be Rs. 10.

The most preferred price point for family pack segment was found out to be Rs.

100 for conventional flavours and Rs. 125 for premium flavours.

5. Recommendations

a) The location of Amul carts should be decided very strategically. The carts should

be placed near to Mother Dairy booths so that consumers coming to the booth also

have the option of trying Amul ice-cream and also, they can go for a flavour not

available in Mother Dairy.

b) As majority of the consumers preferred mixed set in “buy 1 get 1 free” scheme,

Amul should let the consumer choose the set of bricks him/her self and the

consumer can choose the second brick of the same price or less.

c) Even though the problem of change is not very much existent but the carts which

face this problem should be provided with sufficient amount of change as

frequently as possible.

d) As we can see that the most preferred price point is Rs. 10, Amul should reduce

its pack size for some ice-creams and price them to suit the most preferred price-

point which can result in increase in the sales of impulse segment.

e) Since majority of the consumers are ready to pay a premium price for sugar free

and pro-biotic ice-creams, Amul can go for a promotional campaign of these two

varieties.

f) Amul should also go on to launch more ice cream food like ice-cream filled

biscuits, waffles etc. since consumers want more ice-cream food in the market.

g) Since improved flavour and taste was the most important factor responsible for

the switching of brand among consumers, Amul can go for sensory evaluation of

taste in their R & D department so as to improve the flavour and taste from time

to time according to the consumers needs.

References

Kotler, Philip, Kevin Lane Keller, Abraham Koshy and Mithileswar Jha;

Marketing Management, 12th edition, Pearson Prentice Hall, Delhi-110092,

(2007)

Kothari, C.R.; Research Methodology-Methods & Techniques,2nd edition,

Wishwa Prakashan, New Delhi-110002,(2003)

www.amul.com as retrieved on 5th of June, 2008

http://www.wikipedia.com/english/amul as retrieved on 8th of June, 2008

http://www.managementparadise.com/icecreamreport.html as retrieved on 10th of June, 2008

http://www.agriculture-industry-india.com http://www.thehindubusinessline.com http://www.motherdairy.com/about.asp