Ice Cream Industry Profile
The ice cream industry in India reflects the demographic distribution of the country across various aspects.
In the country, the majority of the population resides in rural areas, particularly in villages with populations under 5,000. The number of villages surpasses 150,000 and their combined population exceeds 650 million. Consequently, there is a significant level of fragmentation within the ice cream industry, estimated to consist of over 70,000 entities. These entities largely comprise individual families who produce and sell homemade or small factory-made ice cream on the streets. In contrast, cities are home to the remaining 350 million people where a few domestic and international companies dominate the industry. This means that only approximately 30% of the entire market can be classified as "organized," emphasizing the lack of influential market leaders.
Ice cream, co
...mmonly known as ice-cream, is a frozen dessert made from dairy products such as milk and cream. It often contains fruits or other additives to enhance its flavor. While sugar is typically used, some versions use alternative sweeteners. Artificial flavors and colors can be added or substituted for natural ingredients. To maintain a smooth texture, the mixture is gently stirred during the cooling process to prevent the formation of large ice crystals.
In different countries, the term ice cream has varying meanings. Different names such as frozen custard, frozen yogurt, sorbet, gelato, and others are employed to distinguish between different types and styles. In certain countries like the USA, ice cream specifically denotes a particular variety that is regulated by the government in terms of ingredient quantities. Conversely, countries like Italy and Argentina use one word to encompass all variations. Moreover, alternatives mad
from soy milk, rice milk, and goat milk are available for those who are lactose intolerant or have allergies to dairy protein or prefer avoiding animal products.
Ice has been utilized by ancient civilizations for serving cold foods for centuries. Ancient China, around 200 BC, created a frozen mixture of milk and rice. King Tang of Shang, during the years 618-97 AD, had a group of 94 men who made a frozen dish using buffalo milk, flour, and camphor. The Roman Emperor Nero (37–68) would bring ice from mountains and combine it with fruit toppings. These early delicacies were delicious chilled treats. In Persia in 400 BC, a special chilled dish resembling pudding was made exclusively for royalty during the summer months. This dish consisted of rose water and vermicelli mixed with ice along with saffron, fruits, and various other flavors.
The popular treat in Iran called "faloodeh" is made using starch, typically wheat. It is prepared by spinning the batter in a sieve-like machine, resulting in threads or drops. These are then boiled in water, frozen, and ultimately combined with rose water and lemons before being served.
Industry Competition
The competition within the industry is significant, as indicated by the industry evaluation. There is a substantial number of 70,000 participants, but the most formidable challenge arises from the top six national firms: Amul, Kwality Walls, Mother Dairy, Vadilal, Dinshaw, and Arun. These dominant firms control the organized market entirely.
Ben & Jerry's estimates that 40% to 50% of the urban market is controlled by these six firms, although specific statistics are not available. In the past, multinational corporations (MNC’s) have faced challenges in entering the Indian market due to
various reasons. These include the market's relative newness and lack of organization, excessive government regulations with high tariffs, and restrictions on selling imported ice cream only in hotels. Additionally, the media landscape has been highly fragmented and ineffective. However, many of these market inefficiencies have been addressed or are being addressed currently. As a result, Ben & Jerry's believes that MNC’s can now effectively enter and compete in the market alongside domestic companies.
According to industry projections, there will be an increase in population, per capita consumption, and prices over the next six years. The population is estimated to grow at a rate of 1.8%, while per capita consumption is projected to rise by 5%. Prices are expected to increase slightly by over 1% each year. However, Ben ; Jerry's does not foresee ice cream prices rising rapidly due to intense competition, even though long-term projections indicate a 3.5% increase in consumer prices.
The market is expected to experience a growth from $245 million to $360 million, with a compound annual growth rate of 8%. The rise in value of $115 million can be attributed to various factors. Roughly 60% of this expansion comes from an increase in per capita consumption, while 24% arises from a growing population. Moreover, the remaining 16% is contributed by a price hike. The following are the top Ice Cream Industries: Vadilal Ice Cream India, Amul Ice Cream, Kwality Walls, Mother Diary, Ben & Jerry's, and MTR. These leading companies have multiple strengths such as offering competitive prices, maintaining renowned product quality and enjoying strong support from parent companies based in India.
4) The ice cream brands in the industry are almost generic
to their respective product categories. They offer a wide variety of unique flavors, but their ice creams tend to melt quickly, which is not very durable. Another weakness is the complex supply chain management, with traceability being a major issue. However, both domestic and international markets present growth opportunities. These opportunities include developing new flavors, improving advertising and marketing strategies, and offering ice cream in bulk markets. Efforts to exploit export potential are already underway. Nevertheless, there are also threats such as the emergence of new competitors and foreign players entering the market. Additionally, consumer buying power poses a significant threat as consumers can easily switch to substitute products without much cost or consequence. The ice cream industry plays a crucial role in India's agricultural-based economy where its popular products serve as an important part of the diet. India ranks highly globally in terms of dairy and ice cream production, positively impacting the rural economy.
The ice cream industry not only provides employment to marginal farmers but also helps in reducing migration from rural areas to cities. The consumption of ice cream has increased significantly with the presence of competitors like Amul, Kwality Walls, and Vadilal, making it a regular edible item. In 1983, the Indian Government implemented price controls for this industry. The company has an extensive global presence and operates in diverse industries including Pepsi, Costa Coffee, Pizza Hut, beer, ice cream, dairy, and more.
Pepsi entered the Indian market in 1991 as a result of economic liberalization, forming partnerships with various beverage industry companies. Mr. Ravi Kant Jaipuria, a prominent figure in Pepsi business, is a promoter of the group. The enterprise is professionally
managed and boasts the largest distribution networks for FMCG products in Nepal and India. Furthermore, it operates plants in Africa and Asia. Moreover, RJ Corp (India) collaborates with Sameer Agriculture & Livestock Ltd as a joint venture organization.
Sameer Group is a leading economic force in East Africa, with major investments and successful operating companies in all key business. Its vision is to be a significant player in the global dairy industry. The company focuses on Asian and African markets and looks forward to expanding in these countries.
In Asia, Creambell Ice Cream has plants located in the North and West of India, with a network present in various states. In Africa, Creambell Dairy has plants located in Kampala (Uganda) and Nairobi (Kenya), with selling networks present in several countries. Creambell is the largest seller of fresh and UHT milk in Uganda and has a significant share of the yogurt business.
Whole Milk Powder; Skimmed Also, RJ Corp (India) is a joint venture organization working alongside "Sameer Agriculture & Livestock Ltd". We have entered into an agreement with the Government of Uganda, effective from August 1, 2006, to lease the assets of Dairy Corporation in Kampala. Sameer Group is a dominant economic force in East Africa, with significant investments and successful companies in various business sectors. Cream Bell Ice Cream is an introduction to the ice cream industry, where various flavors of ice cream are prepared. Cream Bell Industries is primarily involved in the processing of ice cream, but also produces other products.
Cream bell industries explores various flavors of ice-cream based on consumer preferences, producing more of the flavors that are in high demand. As one of India's
most renowned ice-cream producers, Cream bell industries ltd. continues to maintain its position and dominance in this competitive market despite the increasing number of new entrants.
One of the most well-known ice-cream producers in India is Cream Bell. Despite facing increased competition in the ice-cream market from new entrants, Cream Bell continues to maintain a strong position and authority. The enterprise aims to prioritize employee satisfaction and well-being by offering fair wages and facilities, thereby fostering positive industry relations. Its primary objectives include generating profits while fulfilling social obligations and establishing an effective brand presence after achieving financial success.
To achieve both regional and national market share growth, Cream bell Industries focuses on providing high-quality products at reasonable rates and improving production efficiency. The company has effectively managed its operations and has a strong management team. The plant's location is strategically chosen to ensure easy availability of necessary resources. Cream bell Industries sets an example for other industries in terms of excellence.
The accessibility of raw materials and flavors required for ice cream production is crucial. The plant's location plays a vital role in ensuring continuous supply of these ingredients. It is essential to select a location that provides easy access to raw materials, as well as necessary amenities such as water and electricity, to avoid any disruptions in production caused by shortages.
In creaming, various processes are conducted to extend the shelf life of milk and milk products before they reach the final consumer. These processes ensure that these perishable items can be preserved for a longer period without any compromise in quality. One common process carried out by dairies is pasteurization, which is named after Louis Pasteur,
a renowned French scientist. Pasteurization involves heating milk and milk products to a temperature that eliminates most microorganisms while minimally impacting their properties.
The milk is heated to a pleasant temperature and from it, milk cream is created. Since the milk is already refined and tested at the dairy, there is no need for further testing. Dry fruits, sugar, stabilizers, and chemicals are added to make the cream. The sugar is mixed into the milk during the heating process.
Using an efficient machine, the dry fruits are cleaned and cut. Different methods are employed to make various types of ice cream. Afterward, they are neatly packed and stored in a cold storage at temperatures ranging from -25 to -38 degrees Celsius. It is worth mentioning that the ice cream-making machine has been marketed in India for forty years.
PRODUCT SPECIFICATION Meets Agmark Standard.
PERSONAL DEPARTMENT Personnel management is a vital part of the organization. It means the utilization not only of physical factors, but what is still more important of people who are working on these factors. There are in all 350 members who are either divided batch-wise or production wise or category-wise.
Cream bell runs a three-shift operation for its workers. The first two shifts, lasting 8 and a half hours each, are responsible for the mixing or manufacturing unit. The last shift is in charge of overseeing the cold storage. Since Cream bell primarily operates as an ice cream factory, uninterrupted work is crucial. The cold storage shift begins at 6:30 am, with workers arriving by 8:00 am.
The office staff and supervisors have different arrival times. The shifts are divided into three time slots: (1) 6:30 am to
2:30 pm, (2) 2:30 pm to 10:30 pm, and (3) 10:30 pm to 6:30 am. The office is closed on Sundays with no holiday schedule.
In contrast, factory workers have Thursdays off and their shift changes every six months, including Sundays.
Workers at this place receive great facilities and incentives on time to stay motivated.
They receive fair wages and an annual bonus of 20%. In addition to being well paid, the employees are also provided with various benefits. On special occasions, their families are invited to the factory, and they also get opportunities to go on picnics or attend movie shows. These experiences help to boost their motivation.
Various activities are organized to recognize and encourage the hidden talents of employees, such as quality circle meetings. Skill identification programs are also conducted, where prizes are awarded. The employee selection process involves retaining, promoting, and eventually retiring them. There are three methods of separation: (1) Resignation, (2) Retirement (between 58 to 60 years), and (3) Termination.
The advertisements for personnel can be found in newspapers, given to consultants, or obtained through references. The salary is determined through three methods: by Government Act, by the length of work, or by performance. Cream bell Food provides various training and development schemes for their executives. Lower-level management receives training while top-level management participates in development programmes.
Employee safety is a top priority here, as all employees are provided with uniforms, caps, masks, and gloves. To encourage employee input, there is a suggestion hex where their suggestions are considered. Additionally, valuable suggestions are rewarded with prizes such as 1 tola sona (gold), a bicycle, or other gifts. Moreover, workers enjoy a 25% discount on all
Cream bell products. Any issues or concerns raised by employees are addressed and appropriate actions are taken from the ground level.
Social Responsibilities refer to the obligations or duties that a business unit offers to society. These responsibilities include duty towards customers, employees, government, and society.
Responsibility towards competition. The industry has a responsibility to fulfill its duties as it operates within a society, being a part of it. Therefore, the society needs to be taken care of and not overlooked or harmed. Cream bell Industries has successfully carried out its social responsibilities within the society.
This is also good work to help our nations. Cream bell Industries also donated their deliciously prepared ice-creams to cancer society. We appreciate the industry does not only seek profit but also works for the welfare of the nation by being philanthropically active and helping the society in many ways. It is a duty of every citizen to be helpful to society and nations in as many ways as he can. Industry earns a large amount of profit from society only, and if a small amount of profit goes for all the philanthropic work, then it will be an added benefit for the industry as its reputation and prestige in society will increase.
PRODUCT Product variety, List piece, PRICE Quality, Discounts, Features, Allowance, Brand name, Payment period, Size, Credit terms, Services, Warranties, Returns, Target Customers, Intended Positioning. PLACE PROMOTION Channels, Advertising, Assortments, Personal selling, Locations, Sales promotion, Inventory, Public relations, Transportation, Logistics. Promotion means activities that communicate the merits of the product and persuade target customers to buy it. Ford spends more than $600 million each year on advertising to tell consumers about
the company and its products. Dealership salespeople assist potential buyers and persuade them that Ford is the best car for them. Ford and its dealers offer special promotions- sales, cash rebates, and low financing rates- as added purchase incentives.
The level of product planning focuses on the various aspects of a product. A product can be anything that is offered to a market for acquisition, use, or consumption, and it can encompass physical objects, services, people, places, organizations, and ideas. When planning a product, it is important to consider its different levels. The core product represents the fundamental benefit that the buyer is seeking. This core product is at the center of the overall product and encompasses the essential problem-solving benefits desired by consumers.
The product planner's next step is to create the product or services. This involves determining the quality level, designing features, selecting a brand name, and developing packaging. Additionally, the product planner must offer consumers additional services and benefits to create the actual product. The core product is the problem-solving or core benefits that consumers truly purchase when acquiring a product. For example, in Cream bell ice cream, the core product consists of milk, sugar, milk powder, and government-standard fat content for ice cream. At Cream bell ice cream, the fat content is maintained at 13% to 15% by incorporating butter or cream.
Also included are features for containing ice cream. The actual product consists of the quality levels, features, design, brand name, packaging, and other attributes that combine to deliver the core benefits of the product. It is available in 50ml, 200ml, 1 liter, and 4 liter packs, which may come in the form
of a cardboard or transparent plastic bowl. The ice cream comes in 2000 flavors, and the company has introduced a distinct design under the brand name "Cream bell" under which all flavors are sold. Additional services provided to consumers and the actual products themselves are referred to as augmented products.
The company's product is perishable, so it requires augmentation. Cream bell ice-cream is the most famous ice-cream producing enterprise in Gujarat, with over 100 different products. Some of its main products include ice-creams, candies, cones, sundaes, and fast treats. The product profile consists of various flavors such as Royal Gulab, Vanilla, Strawberry, Fresh pineapple, Tuti fruity, Chocolate, Real mango, Chocolate chips, Fresh strawberry, Kaju draksh, Butter scotch, Bonanza, Rich coffee, Black current, Orange tang, Swiss cake, Keszar pista, Kaju anjir, Almond carnival, Roast badam, Raj bhog, Kesar kulfi, Slice Ice-cream, Three-in-one, Raja rani, Fifty fifty, Casata cut, Topo cones, Choco vanilla, Strawberry Chocolate, Butter scotch, Kesar pista, Rajarani Candies, Cola pop, Orange bar, Double hit Mini chocolate Kaju candy Rose berry dolly Mango dolly Chocobar Chowpaty kulfi Zulu bar Novelties Sandwich ice-cream Malai kulfi Roll cut B. P.
K roll cut Super sandue Cheese bull Ready big cups Vanilla Butter scotch Bonanza Kaju drakh Kesar pista. Cream bell offers a variety of products at reasonable rates, making them affordable for everyone. Customers often come back for more after enjoying the delicious taste. The decision to create and market individual products and services is crucial in the development of FIGURE. Our focus is on designing product attributes, branding, packaging, labeling, and product support services.
Developing a product or service involves defining the benefits that it will offer. These benefits
are communicated and delivered by product attributes such as quality, features, and decision. Labeling, packaging, and branding are all examples of product attributes.
Branding is the use of a name, term, sign, symbol, or design (or a combination of these) to identify the goods or services of one seller or group of sellers and differentiate them from competitors. Brands help buyers in many ways. Brand names help consumers identify products that may benefit them, while also ensuring consistent quality for buyers who are loyal to a particular brand. By creating a brand, sellers gain several advantages, as the brand name becomes the foundation for building a reputation based on the product's unique qualities.
Cream bell ice cream ltd. has made important branding decisions, including the selection of a brand name. A good name has the potential to greatly contribute to a producer's success. Cream bell ice cream has chosen the name of their product based on medicine, for example.
The product name HAVMOR, which stands for WANT MORE, is sponsored by Cream bell ice cream. The sponsorship is done through various types of branding including manufacturing brand, private brand, licensed brand and co-branding.
Brand strategy:- Cream bell ice cream ltd. implements brand strategies through line extensions, new brands, and multi brands. Cream bell ice cream recognizes that having well-positioned brands, which are remembered by patients for offering effective and long-lasting relief from suffering, is a significant advantage in the competitive pharmaceutical industry. As a company that thrives on positive customer feedback, this has been the driving force behind its success.
Cream bell ice cream has successfully established a strong brand image for all its products among its customers.
Throughout the years, the company has implemented strategies to ensure that new brands introduced generate consistent revenue. These initiatives include creating brands that truly represent their products, positioning them as premium options through attractive packaging and effective promotion, and using memorable brand names. The process of packaging, which involves designing and producing containers or wrappers for products, used to be primarily influenced by cost and production considerations. Its main purpose was to contain and safeguard the product.
Packaging has become an important marketing tool due to various factors. These factors include attracting attention, providing a description of the product, and increasing sales. Packaging involves the design and production of containers or wrappers for products. It may consist of a primary container, a secondary package that is discarded after use, and a shipping package for storage. The labeling on or with the packaging also plays a significant role. Labels can range from simple tags attached to toys to complex graphics that identify the product or brand. The weight listed on the label provides information about the contents of the product and how it should be used. For example, the company uses hard cardboard packaging for family flocks, parent plastics bowl for the new flavored ice-cream 2000, and sells strawberry-shaped candies in cups with sticks to satisfy thirst.
The label weight effectively promotes the Cream Bell ice cream product through appealing graphics, ensuring no mistakes in packaging and labeling. The packaging has the following advantages:
- Strip packaging utilizes aluminum foil on both sides to provide stability for low productivity products.
- It facilitates branding and advertising of products.
- It serves as a silent salesman, encouraging buyers to make reorders.
It has
display value. It also helps the seller to increase sales and obtain higher prices compared to unpacked goods. Additionally, printed literature containing "Instruction to use the product" can be easily passed on to consumers by including it in the package. Packaging gives the product a sense of prestige, individuality, and identity that loose goods lack.
A product line refers to a group of products that are closely related in terms of function, target customer groups, marketing outlets, or price ranges. The length of a product line can be increased in two ways: by stretching the line or by filling it.
Product line stretching refers to the expansion of a company's product line beyond its current range. Upward stretching involves companies at lower levels entering the higher-end market. Stretching in both directions refers to middle-range companies expanding their product lines in both higher and lower market segments. Downward stretching involves initially positioning a product at the upper end of the market and later expanding it downwards. Brands like Butter Scotch, Raja Rani, and other novelties are examples of products targeted at the higher-end market.
Cola Pop, Vanilla, Kaju Draksh, chocolate chips, chocobar, recently introduced mini chocobar, Double hit, Orange Bar etc. are some of the products offered by the company. The figure below illustrates how the company can expand its product line in different directions: Stretching DownwardStretching up ward New Product HighPresent ProductHigh Price Price Law Law Present Product New Product Law -----Quality------HighLaw------Quality------High Stretching both ways New Product High PricePresent Product Law New Product Law-------- Quality---------- High This means that the company can add more items to its existing product range. By doing so, the company aims to become
a leading full-line company. Product Mix refers to the complete set of product lines and items offered by a seller. It includes four dimensions: Width, Length, Depth, and consistency.
Width refers to the number of different product lines carried by a company. Depth indicates the number of versions available for each product within a specific line. Consistency pertains to how closely the various product lines align in terms of their end use, production requirements, distribution, or other aspects. Product mix represents the percentage of total consumption that a particular product occupies. New Product Development encompasses the creation of original products, enhancements to existing products, product modifications, and the introduction of new brands achieved through the company's own research and development efforts. [1] Idea Generation involves systematically searching for new product ideas, with primary sources being internal (such as company executives, salespeople, scientists, engineers, and manufacturing personnel) and external (including customers, competitors, suppliers, and others).
[2] Idea Screening involves the process of evaluating new product ideas to identify promising ones and eliminate poor ones early on. [3] Concept Development and Testing focuses on the belief that consumers are more likely to prefer products that offer superior quality, performance, and features. Consequently, organizations should concentrate their efforts on marketing concepts that enhance productivity and product development. This stage also includes testing new product concepts with a select group of target consumers to gauge their level of appeal. [4] Marketing Strategy Development entails creating an initial strategy for a new product based on its concept. [5] Business Analysis involves reviewing the sales, costs, and profit projections of a product to assess whether it aligns with the company's objectives.
[6] Product Development
is a strategy for company growth that involves offering modified or new products to current market segments. The goal is to develop the product concept into a physical product to ensure that the idea can be turned into a workable product. [7] Test Marketing involves testing the product and marketing program in more realistic market settings. [8] Commercialization is the process of introducing a new product into the market. [9] Speeding Up New-Product Development is an approach where each company department works individually to complete its stage of the process before passing the new product along to the next department and stage.
Cream bell introduces three new flavors every three months, each designed to suit different seasons. New flavors may include chocolate, nuts, candies, and even cone-shaped treats. Direct experiments are conducted to ensure the best product quality. The packaging and design concepts are derived from Mr.
Jain. The company has a highly efficient rend Department. Product Segmentation. If a market for a product or service has multiple buyers, it can be segmented. This segmentation aims to divide the market into meaningful buyer groups, in order to identify the primary consumers and tailor appropriate strategies.
Market segmentation is the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior. This allows for the creation of separate product or marketing mixes. There are four major bases for market segmentation: geographical segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation. Cream bell utilizes all of these segmentation methods to segment their market. Geographical segmentation involves dividing the market into different geographical units such as nations, regions, countries, cities, or neighborhoods.
Cream bell mainly focuses on
segmenting its market in the western region, particularly in Gujarat, where it holds significant market shares. The company divides its market into various groups based on demographic variables such as age, sex, family size, lifestyle, income, occupation, education, race, and nationality.
Cream bell has segmented its market based on demographical factors such as age. It caters mainly to children, teenagers, and middle-aged people. The company introduces special flavors targeted towards different age groups. In addition, Cream bell also utilizes psychographics segmentation, dividing the market into groups based on lifestyle or personality characteristics.
The market is divided into groups based on consumer knowledge, attitude, use, or response to the product. The company also segments its market based on behavioral factors, such as occasions. Cream bell uses occasion segmentation for its products, launching certain new flavors for festivals like "Dhanterash," "April Fool," "New Year and Valentine Day." The ice-cream industry typically adopts geographical segmentation, but Cream bell gives equal importance to all segmentation and the emperor of ice-cream, "Havmor." Price refers to the amount or services or the sum of the values that consumers exchange for the benefits of having or using the product or services.
Cream bell Food Pvt. Ltd. has two factors that influence their pricing decision. One of these factors is an internal factor.
Marketing mix strategy is an important aspect for Cream bell as it helps them achieve their marketing objectives. Price is just one of the tools used in the marketing mix, where they analyze costs to determine a fair rate for their products. This includes costs related to production, distribution, and sales. Additionally, Cream bell's management has to consider who within the organization will
be involved in this decision-making process.
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