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KOOL CREAMS
Table of Contents
Table of Contents......................................................................................... ...............2 CANDIDATE'S DECLARATION.......................................................................................4 CERTIFICATE...............................................................................................................5 INTRODUCTION................................................................................................. ..........6 HISTORY OF ICE-CREAMS:-..................................................................................... ..6 THE FROZEN DESSERT PRODUCTS:-........................................................................6 ICE CREAM INDUSTRY IN INDIA...................................................................................7 FUTURE OF ICE CREAM MARKET IN INDIA...................................................................8 COMPETITORS PROFILE............................................................................................. .8 1. Amul:-....................................................................................................... ...........8 Kwallity Walls:-........................................................................................................9 Vadilal:-.................................................................................................................. 10 THE STPD OF KOOL CREAMS................................................................................ .....10 Segmentation :-........................................................................................... ..........10 Targeting:-................................................................................. ............................11 Positioning:-................................................................................................ ..........11 THE THREE STAGES IN CONSUMPTION PROCESS OF ICE- CREAM.............................12 Pre-purchase:- Brand image, Health issues, suitability..........................................12 Purchase:-Price, Environment, Service..................................................................12 Post-purchase:- Quality, Satisfaction, Store experience........................................12 PRIMARY DATA..........................................................................................................13 Primary data to asses the motivation and perception of consumers towards ice cream........................................................................................... .........................13 Analysis:-.................................................................................................. ..........13
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SHORT TERM AND LONG TERM MEMORY FACOTRS IN ICE CREAM............................15 Kool creams and the process of cognitive learning:-.............................................15 PROMOTIONAL STRATEGIES FOR KOOL CREAMS:-....................................................16 KOOL CREAMS ADDRESSING THE MASLOW`S HIERARCHY:-......................................16 WHO CAN SAY NO TO AN ICE- CREAM AND HOW KOOL CREAM WILL TAKE CARE OF THOSE-......................................................................................... .........................17 HEALTH CONCIOUS PEOPLE................................................................................17 DIABETIC PATIENTS ......................................................................................... ..17 PRICING STRATEGY ............................................................................................17 ADVERTISEMENT OF KOOL CREAMS-.....................................................................17 PRINT ADVERTISEMENTS......................................................................................... ..18 .......................................................................................................... ....................18 SPOKESPERSON FOR KOOL CREAMS:-......................................................................20 RECENT DEVELOPMENT IN ICE CREAM:-...................................................................20 AFFECT OF THESE DEVELOPMENTS IN KOOL CREAMS:-............................................21
CANDIDATE'S DECLARATION
We the students of IFIM B SCHOOL hereby declare that this project report titled KOOL CREAMSsubmitted towards the completion of Consumer behavior Project in 3rd trimester of PGDM in Institute of Finance and International Management, Bangalore is an authentic record of our work carried out under the guidance of Prof. Shinu Abhi. Professor, IFIM B-School, Bangalore.
Avinash Chandra Srivastava Sucharita mandal Sandeep Kumar Siddhartha Singh Samantha
CERTIFICATE
This is to certify that the above declaration made by Mr. Avinash Chandra Srivastava, Miss. Sucharita mandal, Mr. Sandeep Kumar, Mr. Siddhartha Singh Samantha is true to the best of my knowledge and belief.
Prof. Shinu abhi Professor, Institute of Finance and International Management, Bangalore
INTRODUCTION
HISTORY OF ICE-CREAMS:Ice cream's origins are known to reach back as far as the second century B.C., although no specific date of origin nor inventor has been undisputably credited with its discovery. We know that Alexander the Great enjoyed snow and ice flavored with honey and nectar. Biblical references also show that King Solomon was fond of iced drinks during harvesting. During the Roman Empire, Nero Claudius Caesar (A.D. 54-86) frequently sent runners into the mountains for snow, which was then flavored with fruits and juices. Over a thousand years later, Marco Polo returned to Italy from the Far East with a recipe that closely resembled what is now called sherbet. Historians estimate that this recipe evolved into ice cream sometime in the 16th century. England seems to have discovered ice cream at the same time, or perhaps even earlier than the Italians. "Cream Ice," as it was called, appeared regularly at the table of Charles I during the 17th century. France was introduced to similar frozen desserts in 1553 by the Italian Catherine de Medici when she became the wife of Henry II of France. It wasn't until 1660 that ice cream was made available to the general public. The Sicilian Procopio introduced a recipe blending milk, cream, butter and eggs at Caf Procope, the first caf in Paris.
THE FROZEN DESSERT PRODUCTS:Ice Cream consists of a mixture of dairy ingredients such as milk and nonfat milk, and ingredients for sweetening and flavoring, such as fruits, nuts and chocolate chips. Functional ingredients, such as stabilizers and emulsifiers, are often included in the product to promote proper texture and enhance the eating experience. By federal law, ice cream must contain at least 10% milkfat, before the addition of bulky ingredients, and must weigh a minimum of 4.5 pounds to the gallon. Frozen Custard or French Ice Cream must also contain a minimum of 10% milkfat, as well as at least 1.4 % egg yolk solids. Sherbets have a milkfat content of between 1% and 2%, and a atslightly higher sweetener content than ice cream. Sherbet weighs a minimum of 6 pounds to the gallon and is flavored either with fruit or other characterizing ingredients. Gelato is characterized by an intense flavor and is served in a semi-frozen state that is similar to "soft serve" ice cream. Italian-style gelato is more dense than ice cream, since it has less air in the product. Typically, gelato has more milk than cream and also contains sweeteners, egg yolks and flavoring. Sorbet and Water Ices are similar to sherbets, but contain no dairy ingredients. A Quiescently Frozen Confection is a frozen novelty such as a water ice novelty on a stick.
Frozen Yogurt consists of a mixture of dairy ingredients such as milk and nonfat milk which have been cultured, as well as ingredients for sweetening and flavoring. Novelties are separately packaged single servings of a frozen dessert -- such as ice cream sandwiches, fudge sticks and juice bars -- that may or may not contain dairy ingredients
Growth:The Indian government adopted the policy of liberalization regarding the ice cream industry also and it is since then that this sector has shown an annual growth ranging from 1520% per annum for last 1- 2 year. Till now it is estimated at worth of 800+ crores. This growth rate is expected to continue for another next 2- 3 years because of lower base. Per capita consumption of ice-cream in India is still a dismal 106 ml per annum against 22 liters in markets like the US. So Indian ice-cream industry is still is in growth phase. This is a good sign for competitors.
Types:Indian Ice Cream market can be segmented in three different ways, namely on the basis of flavors; on the basis of stock keeping units / packaging and on the basis of consumer segments. On the basis of flavors the market today has a number of flavors like vanilla, strawberry, chocolate, mango, butterscotch a number of fruit flavors; dry fruit flavors traditional flavors like Kesar- Pista, Kaju- Draksh etc. The market is totally dominated by Vanilla, Strawberry and chocolate, which together account for more than 70% of the market followed by butterscotch and other fruit flavors.
Production area: In rural areas, kulfis / ice creams made by small / cottage industry are popular. The market for organized sector is restricted to large metropolitan cities. In small towns and villages, there are thousands of small players who produce ice- creams / kulfis in their home backyard and cater to the local market. Almost 40% of the ice creams sold in the country are consumed in the western region with Mumbai being the main market, followed by 30% in the north and 20% in the south.
COMPETITORS PROFILE
1. Amul:Amul Ice Cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs. Amul ice cream was launched on the platform of Real Milk. Real Ice Cream given that it is a milk company and the wholesomeness of its products gives it a competitive advantage. In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999.
It has combated competition like Walls, Mother Dairy and achieved the No 1 position in the country. This position was achieved in 2001 and it has continued to remain at the top. Today the market share of Amul ice cream is 38% share against the 9% market share of HLL, thus making it 4 times larger than its closest competitor. Not only has it grown at a phenomenal rate but has added a vast variety of flavours to its ever growing range. Currently it offers a selection of 220 products. Amul has always brought newness in its products and the same applies for ice creams. In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice Cream, which was a first in India. This range of SUGAR FREE, LOW FAT Diabetic Delight & ProLife Probiotic Wellness Ice Cream is created for the health conscious. Amuls entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time due to price differential, quality of products and of course the brand name.
For any new player to enter this market, three things are critical:
Kwallity Walls:Kwallity Walls was launched in 1995 as Hindustan Unilever Ltd s. master brand for ice creams. With in-depth knowledge of the Indian market and Unilevers state-of-the-art technology, Kwallity Walls 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 Kwallity Walls range of ice creams and frozen desserts. The Global Scoop
Unilever is the world's biggest ice cream manufacturer, with an annual turnover of 5 billion
Heartbrand products are sold in more than 40 countries. The Heartbrand operates under different names in different markets (Wall's in the UK and most parts of Asia, Algida in Italy, Langnese in Germany, Kibon in Brazil, and Ola in the Netherlands)
Vadilal:Vadilal is one of the major milk and dairy product suppliers in India. The Vadilal Industries Limited specializes in ice creams. With its diverse range of ice creams, the brand of Vadilal has captured a substantial share of the Indian ice cream market. Vadilal Industries Limited started its operation with a simple hand cranked machine. Since then it has extended its reach in different segments of ice creams. The central office of the Vadilal group is located in Gujrat. The reasonable price tags and exclusive ingredients are the main factors behind the huge popularity of the Vadilal Group of Companies. The ice cream manufacturing units of the Vadilal Industries Limited come with a daily production capacity of 1-lakh liters in total. The product list of Vadilal includes 200 different types of candies, cones, cups, party and family packs and bulk packs. To meet the demand of its huge customer base, the ice cream division of Vadilal launches one new flavor each month. Vadilal Ice Cream is the first of its kind to initiate flavor of the month. The Vadilal ice cream range offers a wide variety of milk and dairy products to suit the tastes of its innumerable customers. The rich cream varieties are ideal for the foodies. The low fat desserts of Vadilal are meant for those who are going through a restricted diet. Besides the common flavors like strawberry, vanilla, butterscotch and chocolate, the Vadilal Ice Creams offer many other lip-smacking varieties. The Fresh Fruit Fantasies, Nutty Delights and Romantic Ripples are worth trying
KOOL CREAMS is going to be launched in the starting of year 2009.Basically segmenting the children and youth. But later have plans to cater to the adults as well as the aged people having diabetics.
Targeting: An ice cream is for all is the general saying But the target market of KOOL CREAMS in India will be children and youth living in India from different nationalities and cultures and whether they are male or female in the initial period . The ages of KOOL CREAMS target market range from 06 to 30 years old. The income of the target market is medium to high and from different educational levels. Marketing strategy of KOOL CREAMS is mainly to concentrate on the core proposition that states I prefer KOOL CREAMS because it is the only youthful place to share Magical Moments every day with friends and family while being spoilt with an unparalleled choice of wondrous ice cream flavor experiences .From this expression, it is clear that the target market of KOOL CREAMS includes families and friends who go to KOOL CREAMS to enjoy their time.
Positioning:KOOL CREAMS will positioned itself as a affordable and quality providing ice creams therefore people belonging to the lower and middle class tend to go more towards KOOL CREAMS. Moreover providing low calories healthy ice creams, with CSR conscious activities like give 5% of the profit to organizations like CRY and HELPAGE INDIA. Differentiation:Providing exotic and fascinating flavors to our customers. Like:-
Fruit Treat a bite with natures delight 8 Pack Cream Treat Fun With Fudge, etc
PRIMARY DATA
Primary data to asses the motivation and perception of consumers towards ice cream Tool used in depth interview Sample size 6 consumers Questions asked:1. 2. 3. 4. 5. 6. What is your favorite brand in ice cream? What makes you like that ice cream? How much importance does price play in your choice of brand of ice cream? To what extent do the advertisements and offers influence your purchase? What is the only thing that an ice cream must have according to you? What will be the factors that you suggest a new ice cream brand in your town should have?
Analysis:1. For the first questions which asked about the favorite brand of ice cream of consumers we got 3 answers as BASKIN N ROBBINS, others as AMUL, KWALITY WALLS and CREAM AND FUDGE. 2. For the second question where we asked about the basic reason of buying that brand most of the answers were quality, availability, packaging and the dcor of the store. 3. the third question which asked about the effect of price on their buying behavior we found out that those who prefer going to brands like BASKIN AND ROBBINS and CREAM AND FUDGE were least bothered about the price of the product. Whereas consumers preferring AMUL and KWALITY WALLS were a bit price conscious though but they agreed that they do look for more quality and taste than price. 4. Our fourth question was whether the advertisements and offers influence their purchase behavior to which we had a kind of same answer from each of them saying yes it does to a great extent. We had the responses as the advertisements are so tempting sometimes that it forces us to go and have an ice cream or two at that point of time they also said that as summer is approaching the effect of advertisements showing tempting ice cream is all the more. They also agreed that they do respond to the occasional offers that their brands provide and try to avail them. 5. Our fifth question tried to ask them of the basic need that they want to fulfill through an ice cream, to which they gave somewhat similar replies saying taste and quality does form the heart of any ice cream brand. And that without providing taste it is not possible to sell a product like ice cream. 6. On asking the last question to assess their unfulfilled needs which can make space for kool creams to enter they all gave various responses like innovative packaging, more flavors, availability, natural elements etc.
Color:Orange: - because it has got a lot of visibility and it symbolizes fun too. Navy blue:- for contrast with orange.
A new package Design:- A very new and innovative design prepared for our kool creams which includes a chocolate sauces upon various flavors of ice creams. You just have to pull one string and the chocolate will be all over the delicious ice cream.
Stores of kool creams:- kool creams will have definitely the color combination of orange and navy blue along with it we will have JOHN and JERRY to welcome the customers and to entertain them. Their will be a collection of theme music for the store play. Kool cream will make ice cream an experience rather that just having an ice cream.
Kool creams and the process of cognitive learning:The ice cream will possess certain attributes which we may interpret as benefits that assign meaning to the logo and packaging. Intuitively, because the differential threshold for ice-cream attributes is high, subjective (how sweet is sweet; what is too sweet and not sweet enough?) and difficult to describe, the advertising avoids cognitive routes of learning. It focuses on making an emotional appeal. Unless you have had negative experiences with lakes, in general, we associate positive emotions with natural scenery. So the scenes of nature are the unconditioned stimulus, and our positive response to the natural landscape becomes the unconditioned response. Prior to conditioning, if we have not heard of the name kool creams, our attitude towards an unknown brand is likely to be neutral. This is the unconditioned response to a neutral stimulus. In the advertisement, the kool creams is shown to be a whole new experience of the ice cream world more over the five sense magic advertisement of kool cream talks gives a new dimension to the ice cream that we serve. After repeated exposure to the ad, our response towards the kool creams logo becomes a conditioned one; that is, we begin to associate positive emotions with the logo just as we did with
the scenes of nature. In so doing, the marketer hopes to cause the consumer to like the brand he is trying to market, without resorting to cognitive modes of learning. . In becoming exposed to attractive ice-cream packaging (possibly a free sample) we are induced to carry out the desired response, which in this case is to eat it. In consuming the product, we receive positive reinforcement because it tastes good, causing us to be much more sensitive to such stimulus in the future.
PROMOTIONAL STRATEGIES FOR KOOL CREAMS:As kool creams is a fully new brand to be launched and hence it can not enjoy anything such as brand extensions therefore promotional strategies will have to be better than the existing ones. The following will be the promotional strategies of KOOL CREAMS:1. Comic strips:-To publicize our brand mascots we are planning to have a comics strip dedicated to them. This will popularize them if done in an interesting way moreover teenagers and youth are more likely to get attached to them through the comic episodes. 2. Customer involvement: - we will have maximum customer involvement in our outlets, customers of ice cream love to feel the joy of flavor they want to have so we will give them an opportunity to make their own sundaes. There is a sense of accomplishment and satisfaction that one will associate with their self made sundaes. 3. campaigns:- kool creams in its early stages will do a lot of campaigns we will make john and jenny meet the children and perform in malls so as to have more visibility. Moreover we will conduct so contests.
KOOL CREAMS ADDRESSING THE MASLOW`S HIERARCHY:1. PHYSIOLOGICAL NEED kool creams will be showing a tag line as magic treat to
your five senses and thus we will be showing ice cream as a basic need in our advertisement. 2. SOCIAL NEED- having ice cream is generally associated with getting together with family and friends so kool creams will cater to such needs too as the product itself suits the need.
WHO CAN SAY NO TO AN ICE- CREAM AND HOW KOOL CREAM WILL TAKE CARE OF THOSEHEALTH CONCIOUS PEOPLE
Some people are health conscious. They dont want to put on extra weight by eating a high calorie foods like ice-cream, so we will offer them the health-oriented ice cream with low calorie integrands. We offer our product as a health conscious ice cream with slim trim ads. Our segment of product is targeted to children and mothers because of its health credentials.
DIABETIC PATIENTS
There is a large number of Diabetic patients in India. There is large number of people who wants to eat ice-cream but due to added sugar in ice-cream they avoid to eat ice-cream. So we have decided to give them a special type of ice cream which is SUGERFREE ICECREAM. The ice cream 'without added sugar' is ideal for diabetics and safe for children and mothers.
PRICING STRATEGY
We will put 100-150ml cups, priced at 9-14 rupees for the impulse market. Also targeted at the immediate consumption market are bars, sticks and cones. We will offer our bar or stick at a price between 15-25 rupees, and cones at 20-30 rupees. One-liter family packs ( in wax- coated paper or plastic cartons) retail at Rs. 60-70 for vanilla and strawberry and Rs. 68-90 for premium flavors like chocolate.
ADVERTISEMENT OF KOOL CREAMSWe will have advertisement addressed to both youth and children. And as mass marketing is dead we will focus them one by one through different advertisements. For the children and teenagers we have the advertisement showing JOHN and JENNY and moreover we have comic strip dedicated to them in the leading newspaper which will make JOHN and JENNY all the more popular. For the youth will have an advertisement saying a magic treat to your five senses which will be showing a very different way to look at ice cream. Along with all these we will have three print adds having the following tag lines:1. There is actually something more to an ice cream. 2. The fun part of your life. 3. A bite with natures delight.
PRINT ADVERTISEMENTS
ADVERTISEMENT RATIONAL OR EMOTIONAL For kool creams we have our customers who are more of emotional than rational because ice cream is something related to the temptation of a person so even if one thinks and tries to be rational he lands up to be emotional towards it. Therefore we will be targeting more on the emotional part of the customer and try to show them a different meaning of ice cream. Although we have a small section of people to look at the rational side of ice cream but we will be catering to their need also by launching ice cream in low calories as well as sugar free and natural flavors too.
ADVERTISEMENT VERBALIZER OR VISUALIZER For ice cream we have more of visualisers who would like to go by the tempting looks of the ice cream than by the information that it shows about the ice cream. But we have customers who try to compare the price and the taste and then take a buying decision regarding this. Therefore for the price conscious segment of our we will be having three package saying large, medium and small.
SPOKESPERSON FOR KOOL CREAMS:As a celebrity we will use child actor ISHAN AVASHI for spokes person of our product because he is popular in teenager as well as child. We can use him for advertisement. Plot of advertisement we can choose that he does not want to go to school but his mother tells him that if you will go school then I will give you KOOL CREAM ICE-CREAM. Then he imagines our product and become ready for school. Another celebrity we can choose ASIN for spokes person of our product because she became famous for GAJNI movie and we can use her appealing face for our advertisement. Since our product is in launching period therefore we cant afford high cost celebrity and taking Asin in such lauching period will be justifiable.
Plot of advertisement we can choose that she and her five friends are making celebration in college canteen and then they order for our KOOL CREAM ice-cream.
RECENT DEVELOPMENT IN ICE CREAM: This time companies are coming with concept of Probiotic health and wellness ice creams and sugar free variants. They are coming with natural flavors like natural vanilla. Amul, the market leader in the ice cream space, has already launched Probiotic health and wellness ice creams and is also offering sugar free variants. Mother Dairy, a subsidiary of the National Dairy Development Board, has decided to expand its naturally flavored offerings along with its new packaging. Some company is looking at adding more natural flavors to its portfolio. The company is also betting big on fruit juice bars to cater to the growing number of conscious consumers. Hindustan Unilever introduced Moo ice cream under the health and wellness umbrella. Moo, a combination of chocolate and vanilla, is targeted at children and mothers because of its health credentials -- each stick has calcium equivalent to one glass of milk.
In the field of marketing and setting up new shops the multinational companies are targeting big malls and multiplex. They are setting shops in malls and multiplex in good positions to attract customers. They are spending a lot of money to setup these types of big shops because they know that the buying capacity of Indian people is increased very rapidly and most of them are ready to pay the amount for companys premium segment of ice-cream.
AFFECT OF THESE DEVELOPMENTS IN KOOL CREAMS:Kool cream will deal with all such developments:1. We will be launching for the consumers who are health conscious the low calorie and the sugar free ice cream. 2. Under recent developments we also have ice cream outlets being set up in the leading malls to cater to the premium customers, so kool creams will be setting up its outlets in the leading and most popular malls to cater to such segment of customers.
ice cream makers are now focusing more on the natural ice cream so kool creams will also have the natures delight to cater to such needs.