Vadilal has raised the stakes in the Rs 2500 Crore Indian ice cream market, with multiple efforts, across marketing and operations, with a clear purpose – build market share and increase it from the current 20% to 25% in the near future.
They have made significant improvement to their production facilities and the technology involved to improve cost efficiencies as well as aid in product innovation.
They have announced themselves this summer with three new products – the Bada Bite, the Gourmet and the Flingo and have flooded the small screen with commercials, as the ones shown below:
I believe that the ads and the products were launched a tad bit late. For a product like ice cream, hitting the markets in March would have been an ideal time, instead of now, in May, when the campaign has gained a thrust. This might cost them a bit .
So, what are the noticeable things in the campaign:
1. The focus on ice cream and visuals of it: The makers kept one fact firmly in mind when designing the copy of this ad – ice cream consumption is pure indulgence. With that in mind, they made sure not to bring in any rocket science to justify the consumption. They simply said that we now offer you something different to indulge yourself . With new packaging styles, jam linings, cream quality improvements, larger cross-sections etc, ice cream still remains an indulgence. The company merely says that they are encouraging and facilitating your indulgence.
I am an ice cream addict myself, and I know that showing visuals of ice cream, of falling nuts, chocolate syrups and the jam linings, makes me reach for this new indulgence. And as a marketeer, I am happy that they have not tried to define/restrict it with some sort of positioning.
2. The youth connect: They have tried to establish ice cream as a youth product, setting it up with the wittiness (Bada Bite) or the comedy of errors (Flingo) associated with the youth. It is a good move because the youth, along with the kids are inevitably the biggest consumers of ice cream. (Amul tried some campaigns some time back to target everyone with ice creams – kids to adults. It didn’t help them much in widening the TG, although the sales were still positively boosted)
3. On a strategic front, this is a good move, since it takes the focus to the premium end of the product line. Ice cream is a product for which even a premium range product would only be Rs 25-35 – still affordable for everyone. The Rs 10-15 products were proving a bit expensive for the company, with rising milk and sugar costs.
With other players trying to present their own product as the solution to beat this heat, such as Kwality Walls’ (HUL) choco disc Cornettos and Amul and Havmor’s new flavours, the markets are heating up a bit. Lets see how much of this ‘heat’ is controlled by Vadilal and how much by others, and whether the delayed campaign launch affects its success.
Market Size: Rs 2500 Crore; Organized – 60% (Rs 1500 Crores) – comprising national players like Vadilal, Amul, Kwality Walls and regional players like Havmor.
Market Shares: Amul – 40%; Vadilal: 20%