It's KMFvs Gujarat milk body for ice cream

When the mercury level soars in Karnataka, cooperative majors "" the Karnataka Cooperative Milk Producers' Federation (KMF) and Gujarat Cooperative Milk Marketing Federation (GCMMF) "" will fight it out to grab a larger slice of the food and beverages market.

Both KMF and GCMMF, which are popular in the state for their Nandini and Amul brands respectively, have not only lined up a slew of new dairy products for the summer market, but have also redrawn their marketing strategies.

So high-spirited are the two that the dip in temperatures because of the untimely rains across the state for the last one week, and the threat of a short summer, have not dampened their spirits.

KMF Managing Director I R Ramalinge Gowda told Business Standard: "The coming two-three months are crucial. We plan to consolidate our market by releasing some new products in the flavoured milk and ice-cream segments this summer."

KMF, which recorded monthly sales of 90,000 litres of milkshake in badam, pista, mango and strawberry flavours during the summer of 2007, aims to boost sales in 2008 by introducing chocolate and coffee flavours. Christened 'Chocoshake' and 'Milkafe', they will hit the market in 200 ml tetrapacks, each priced at Rs 15.

"While Chocoshake will target children, the coffee flavour will win over youngsters who form a huge chunk of the widening cold-coffee segment," said KMF Deputy Director (marketing) M Ramachandra.

In case of ice creams, KMF has drawn up plans to double sales this summer. "On an average, we sold 45,000 litres of ice cream every month, but now we have set a target of 100,000 litres per month," said an optimistic Ramachandra.

By using the 'Nandini' brand to leverage sales, KMF will add two products "" chocolate and strawberry sundaes. As flavoured milk and ice creams are largely impulse-driven purchases, KMF is giving its milk booths a facelift.

KMF sells huge amounts of buttermilk. "We sell more buttermilk than flavoured milk or ice creams in summer. Last summer, we sold 20,000 - 24,000 litres of buttermilk every month. This year, we are looking at sales of over 30,000 litres per month," Ramachandra added.

To achieve this, the KMF has decided to introduce buttermilk in the 200 ml tetra pack priced at Rs 7.

"Presently, buttermilk served in 200 ml sachets and priced at Rs 4 each is a major hit with consumers. By introducing buttermilk in tetra packs, we will be able to net the high-end consumer and thereby expand our consumer base," KMF officials maintained.

Unlike in the past where ingredients used for spicing buttermilk came raw to the consumer, KMF has decided to go in for standardisation of ingredients "" a move that would ensure a uniformity of taste.

Meanwhile, the GCMMF too has drawn up its battle plans. The cooperative's flagship brand Amul, which introduces two major products every year, hopes to achieve a growth of 30-32 per cent in the beverages sector in 2008-09. It has developed new marketing strategies, the most prominent one being the change in bottling method.

Said Amul's branch manager (Bangalore) Stany Lobo: "For the first time in the country we will introduce milk-shakes in 200 ml plastic bottles. Unlike glass bottles which are brittle or the tetra packs which are to be disposed off, the plastic bottles will be convenient for the consumers to carry." Milk shake in plastic bottles will come in mango, strawberry and banana flavours.

Amul also plans to introduce Kool Thandai, a popular summer drink in northern India.