Post on 12-Nov-2014
description
Ice Cream Market - India
December 2008
2ICE CREAM MARKET – INDIA.PPT
SAMPLE
Executive Summary
�Drivers: Opportunity to capitalize on low consumption levels; growing institutional sales
�Challenges: Competition with the unorganised sector on price and quality, and lack of well-
developed cold chain facilities
Market
Drivers &
Challenges
Trends
Competition
� Large investments in advertising
�Diversification of product portfolio targeting specific consumer segments
�Partnerships and franchises pursued to boost distribution
�Falling costs of raw materials offsetting rising milk and sugar prices
�A brand is the market leader
�B and C brand are other strong players
�The premium segment is dominated by U
�Estimated worth USD XX mn in 2008, expected to grow to USD YY mn in 2009
�North and west account for a% of total sales
�High profit margins ranging between b-c%
3ICE CREAM MARKET – INDIA.PPT
•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments
4ICE CREAM MARKET – INDIA.PPT
SAMPLE
The industry is growing steadily with the northern and western
regions accounting for the largest consumption
•Size and Growth
�Worth USD XX mn in 2008
�Growing at a% p.a. in 2005-2008
�Forecast to increase by b% to reach USD YY
mn in 2009
•Characteristics
�Northern and western regions together
account for c% of total market consumption
�Profit margins range from u% to v%
depending on the product segment
�w% of ice cream sales occur during the
summer months of April-June
� x% of sales is through street vendors
�Vanilla is the highest selling flavour and
together with strawberry and chocolate it
accounts for y% of the market
Overview Size and Growth
0
50
100
150
200
250
X
2005
Y
2006
Z
2007
U
2008 e
V
2009 f
a%
USD mn
c%
South
d%West
a%
North
b%East
Source:
Geographic Distribution
5ICE CREAM MARKET – INDIA.PPT
Drivers & Challenges
Developing institutional channel
Low consumption levels
Drivers
Lack of cold chain facilities
Low quality products and
competitive pricing from unorganized
sector
Challenges
6ICE CREAM MARKET – INDIA.PPT
SAMPLE
Key Trends
Franchises and strategic
partnerships to enhance
distribution
Benefits derived from falling
costs
Product diversification to target
specific segmentsLarge scale advertising
Trends
7ICE CREAM MARKET – INDIA.PPT
SAMPLE
X is the market leader with strong competition from U,V and W
•Fiercely competitive due to attractive
economics with profit margins ranging
between a-b%
•Organized sector comprises X, Y, Z and a
number of regional brands
•Amul is the market leader and is at the
forefront of targeting the rural market
•For most national players viz. U, V and W,
revenue from ice cream accounts for a
small portion of their total revenues
•Premium segment:
�X is the single largest premium ice cream
brand
�New entrants include X,Y and Z
Major Players Market share
Source:
A well established unorganized sector creates a fiercely competitive environment for
the larger players
A well established unorganized sector creates a fiercely competitive environment for
the larger players
f%Company Z a%
Company U
b% Company V
c%
Company Wd%
Company X
e%
Company Y
v%Organized
u%Unorganized
8ICE CREAM MARKET – INDIA.PPT
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