Summer coolers

MARKETING: Competition gets tough as ice cream companies fight it out to capture the market, which stands at Rs 1,100 crore

It's summer and the ice cream market is all too ready with a wide array of offers to provide the customer the "chillz" to beat the sweltering heat. And this time the competition is tough as relatively new entrants like Amul and Mother Dairy prepare to take on old-timer Kwality Walls.

The ice cream market stands at Rs 1,100 crore and is growing at a rate of 12-14 per cent. The market is segmented in three categories "" take away, impulse and institutional. Of these, the take-away market constitutes a maximum share with 39 per cent, while impulse and institutional stand at 36 and 25 per cent respectively.

Says Paul Thachil, CEO, Mother Dairy, "While summer continues to be our main season, we have seen sales go up in the so-called off season as well."

Mother Dairy, which till a couple of years back was known as a Delhi-based brand, has spread its wings nationally and after making its presence felt in Mumbai and Kolkata, is now venturing into Goa as well.

While Mother Dairy's strategy has been to target the children with its Lic Lollies and young adults through its Chillz range, Amul, the market leader, on the other hand prefers to target the entire family.

Kwality, which is a part of HLL, is looking to ride on the health platform. For instance, its latest launch, Moo, a vanilla and chocolate ice cream, boasts of high calcium content and fun packaging. And with its shape, it is primarily targeted at children.

Mother Dairy, too, plans to launch two new flavours "" O'Blast, an orange-based ice cream dessert, and Toffee Twist, which tastes like toffee.

Says R S Sodhi, general manager (marketing), Gujarat Cooperative Milk Marketing Federation (GCMMF), "We are looking to target the entire family with our range of ice creams." Amul, which has a market share of close to 35 per cent, is also looking at sugar-free ice creams.

In terms of advertising, Mother Dairy would be launching a media blitzkrieg in the summer months primarily targetted at children. Its strategy is to increase the number of carts outside schools and its latest campaign is similarly targetted at kids. It also plans to hold contests and promotions offering goodies to the children. Its campaign for the Chillz range, however, is aimed at the entire family.

Says Thachil, "The idea is to capture the entire gamut with our various products." Mother Dairy would be spending close to Rs 8 crore on marketing and promotions this year.

Companies are looking at more out-of-home points and also planning a presence in malls and other retail outlets. As they say, the heat is on, and this time in the ice cream market!