Category Analysis Report

Indian Dairy IndustryFocus on Probiotic and Milk Ice

Creams

Market Overview

• India is one of the fastest growing markets for milk and milk products.

• The market size for milk and milk products (formal + informal sector) is INR 2000 Bn (Euro 30.8 bn).

• The organized market is growing at nearly 10 percent in terms of value annually.

• The demand for value added milk products (Cheese, Dahi (Indian yoghurt); probiotic drinks, Paneer, Ice creams, etc)are increasing at a double digit rate

Market Overview

• The formal sector (Amul model + Private dairies) handles only 18% of the total milk produced in the country.

• There is a huge demand for milk and milk products in India. The market for most of these products is growing at more than 10%- 15% per annum and specifics to probiotic the growth is 25% annually

• The market for such products is expanding mainly because of the increased income coupled with higher tendency to spend. The demand for milk and milk products is in its growth phase. Gujarat Co-operative Milk Marketing Federation (GCMMF) with its brand “AMUL”, is clearly the market leader in various milk products, but that does not mean that it is serving the whole of the market.

Market Overview

• The reach of GCMMF is limited because of limited level of procurement which is concentrated mainly in Western region on India.

• Other major dairy players include Mother dairy, Nestle, Britannia and various other state co-operatives in India.

Products Overview• Milk and Milk Value added products can be broadly

understood as:

Probiotic Drinks from

brandsGCMMF

Nestle /Mother Dairy/Britannia and

state regional players

Butter

Yogurt /Curd

Cheese /Paneer

Khoya and Cream

Lassi/Chaach/Butter Milk

Category Detail

Butter

Yogurt /Curd

Cheese /Paneer

Khoya

Cream

Probiotic Drinks from

brands Yakult/Mother Dairy/Nestle

Lassi/Chaach/Butter MilkSweets Organized Unorganized

Local Indian preparations

like Kulfis

Also Probiotic ice cream

The Probiotic Category in India

Yogurt/Curd DahiMilk Drinks

PROBIOTICS

Ice Creams

Organized Sector :1.Yakult2.Mother Dairy

Organized Sector :1.GCMMF2.Nestle ( P)3.Mother Dairy 4.Britannia 5.Other Regional Players

Organized Sector :1.Amul ( Probiotic)2.HUL3.Mother Dairy4.Vadilal5.Cream Bell

India Probiotic Situation

Market is still nascent with limited consumer awareness

Competition strategy is on educating consumers about probiotics and their benefits

Category targets to Urban consumers in metros who are health conscious.

Probiotics introduced in 2007 only

Hurdles Lack of awareness, retail mind set, lack of cold chain and such facilities.

100 Crore Market with handful of players

Amul, Nestle and Yakult are main entrants in Probiotic

PROBIOTIC MILK DRINKS

Probiotic Drinks • Yakult Probiotic Milk Drink

Concept Price Point Distribution and Communication

Delicious Probiotic Milk DrinkYakult is a fermented milk drink containing over 6.5 billion Probiotic (friendly) bacteria - Lactobacillus casei strain Shirota.

Pack of 5 bottles @ Rs 50 DTC through home delivery system by Yakult ladyThis is a unique distribution system created to make consumers fully understand the product and its benefits

Yakult is available at selected retail also

Value Benefit :

The friendly bacteria in Yakult help to improve digestion, build immunity when consumed everyday.

Bollywood actress and superstar Kajol Devgan is the brand ambassador for promoting its probiotic health drink Yakult in the Indian market

http://www.youtube.com/watch?v=oRuZW_HB_Zk

Probiotic Drinks • Mother Dairy Nutrifit ( Probiotic Milk Drink)

Concept Price Point Distribution and Communication

The Probiotic Drink that Builds Immunity: “Small on Size, Big on Immunity”

Rs 10 for 100 ml Sold through Mother Dairy Outlets /Retail Channels across Delhi NCR

Value Benefit

Focuses on immunityMother Dairy’s Nutrifit contains billions of LA5 friendly bacteria, which strengthen the body’s defenses against infections & diseases over time.

Fermented Drinks• Mother Dairy B active ( Pro biotic Lassee)

Concept Price Point Distribution and Communication

b-Activ Probiotic LassiA tasty, refreshing way to quench your thirst Mother Dairy b-Activ Lassi also gives all the advantages of Probiotic properties. It is available in an easy to use cup format adding to the convenience.

SKU : 200ml Sold through Mother Dairy Outlets /Retail Channels across Delhi NCR

Communication based on Health

Value Benefit :

Focussed on B Active for Pro Biotic Properties to strengthen immunity

Fermented Drinks • Amul Kool Lassi

Concept Price Point Communication

Healthy Rich Lassi ( Milk drink)Rich in Calcium

1 Ltr Tetra Pack TV Commercial Based on refreshment and Health

Value Benefit :

Taste and Refreshment combined with health

Marketed through retail and Amul Parlors

http://www.youtube.com/watch?v=wj653xc_wHM

Fermented Drinks • Mother Dairy Lassi

Concept Price Point Distribution and Communication

Mother Dairy Lassi is a tasty and refreshing drink made from pure, nutritious milk. Drink it either as an anytime snack or as a tasty accompaniment to your food. Either way it's a great tasting drink.

Available in 2 variants Sweet Lassi ( 300 ml)Salted Lassi ( 200 ml)

DTC through Mother Dairy Outlets and Retail

Based on refreshment and taste platform

Value Benefit :

Refreshment with taste

Fermented Drinks • Brittania Milkman Sweet Lassi

Concept Price Point CommunicationPlaced lassi as a traditional Indian yogurt drink into a shake hip hopp concept where stunts are performed to make lassi

Rs 10 for 200 ml tetra pack TVC focus on fun and refreshment

Available at retail and grocery stores

Value Benefit :

Refreshment / Fun / Thrill

http://www.youtube.com/watch?v=y41ntmmv99M

YOGURT / CURD / DAHI

Market Overview• Dahi is the Indian counter part for Yoghurt. Dahi is consumed on a daily basis in

Indian house hold. • The market size estimated for Dahi is INR 160 Bn (Eur 2.bn) in value terms and

around 5.2 million tonnes in volume terms in organised segment.

• The market is mostly unorganized with organized players handling only 1% of the share. The demand for Dahi is increasing at the rate of 20% per annum.

• Products like Yoghurt is manufactured mostly by organized players. The market for Yoghurt is currently small (~ 1% of Dahi market), primarily because dahi is a traditional Indian dairy product, also, Yoghurt is in its introductory phase in India and it will take some time before the prodcut picks up demand.

• The Amul brand from GCMMF is the market leader in the organized Dahi market. Nestle and Britannia are other players manufacturing Dahi and Yoghurt

Main Players and Offerings

• Key Players• Amul Masti Dahi enjoys a market share of 75- 80% except in South• Nestle : Second biggest player with pressence in North and South

( 30% Market Share)• In regional players :

• Mother Dairy is in Delhi ( 66% in Delhi)• Mahananda/Gowardhan is in Mumbai• Nandini, Aavin , Heritage and Nilgiri is in South

Market Overview

• The total packaged curd market in India is estimated at 40,000-60,000 tonnes per annum, of which Amul is the market leader ( 70%) and Nestle has a 30 per cent market share the second largest player

• Milk products market in general and the branded dahi market in particular is on a high growth trajectory. Pegged at about Rs 200 crore, the market for branded dahi is growing at 20% year on year. Apart from the three big players, it also has a clutch of strong regional brands.

• Organised players are growing at 20-25 per cent despite their minuscule presence.

Probiotic Curd/ Dahi

Concept Price Point CommunicationNestle Nestvita Nestle NESVITA Dahi is a deliciously thick ‘n’ tasty low fat DAHI enriched with the goodness of more than 100 CRORE special PROBIOTICS in every serving (100g), which work hard everyday to ensure your digestive system is strong and healthy.

TVC, Social Media portraying health benefits of Probiotic foods.http://www.youtube.com/watch?v=Ttux6cMEcuM

Values :Probiotics / Immunity and digestion

• Nestle Nesvita

Probiotic Curd/ Dahi

Concept Price Point CommunicationMother Dairy-b –ActivPlus“Happy Tummy to You”

'With the growing health consciousness amongst consumers, the consumption of the new fiber rich probiotic dahi provides consumers with the added benefits of 'improved nutrient absorption' and a well balanced digestive system besides the goodness of dahi”

Values :Probiotics / Immunity and digestion

• Mother Dairy b-Active Plus

Probiotic Curd/ Dahi

Concept Concept

'

Amul ProLife

Probiotic Curd/ Dahi

Company- Brand Means of communication

Nestle- Nesvita

Mother Dairy-b –ActivPlus“Happy Tummy to You”

Seminars for nutritionists by women to focus on advantages of probiotic food. Doctor engagement programs targeting physicians and dieticians. Sampling at hospital cafeteria, malls and offices for youth to promote healthy lifestyle.

Amul ProLife TVC. Amul –’ New Taste of India’ campaign to promote its range of new products including probiotic dahi and ice cream.

Probiotic Curd/ Dahi

Company- Brand Product Packaging Price

Nestle- Nesvita200 GM400 GM

Rs. 15Rs. 25

Mother Dairy-b –ActivPlus“Happy Tummy to You”

90 GM200 GM400 GM

Rs. 6Rs. 14Rs. 24

Amul ProLife

Nestle Fruit YoghurtCompany- Brand Concept Price & Size

Nestle- Milkmaid Fruit Yoghurt (Strawberry & Mango)

This new innovation combines the goodness of natural yoghurt and real fruit. Being 98% fat free, this product is perfect for that indulgent moment providing the healthy sweetness.Packaged in an attractive shrink sleeved tub and endorsed by the MILKMAID brand, Nestle MILKMAID fruit yogurts truly stand up to delivering on their promise - “Anytime treat , Anytime health”.

100 GM- Rs. 20

MILK ICE CREAMS

The industry is growing steadily with the northern and western regions accounting for the largest consumption

• Size and Growth– Worth USD 209 mn in 2008 – Growing at 12% p.a. in 2005-2008 – Forecast to increase by 15% to reach

USD 240 mn in 2009• Characteristics

– Northern and western regions together account for 70% of total market consumption

– Profit margins range from 30% to 50% depending on the product segment

– 60% of ice cream sales occur during the summer months of April-June

– 80% of sales is through street vendors– Vanilla is the highest selling flavour and

together with strawberry and chocolate it accounts for 70% of the market

Overview Size and Growth

240209

182155148

050100150200250

2005

USD mn

2006 2007 2008 e 2009 f

+12%

40%West

30%

North

10%East

20%

South

Source: The Economic Times “Showers upset regional sales targets of marketers”, May 2007; IBEF “FMCG companies target consumers in summer”, March 2008; India Environment Portal “Is our ice cream natural or synthetic?, August 2007; The Financial Express “Fire & Ice”, June 2008; 51Rainbow company website

Geographic Distribution

Main Players in Ice Cream

Milk Ice Cream Category• Mother Dairy

– Key Strengths• Popular ( Delhi)• Ideal in milk ice creams • Popular for variety of product offerings : Milk, Curd, Butter • Trust and reputation

• Milk Ice Creams • Targeted to teenagers / youth and adults • Priced at Rs 10-30 • Communication based on health / family fun through TV /OOH• Most of the sales outside school and market place• Family Packs at night

Product AnalysisMother Dairy Current Offerings Pack Size Cost (INR)

Lic LolliesAvailable in different flavors of Cola, Lemon, Orange, Mango,Mangoraspberry, shararat, chulbuli 55gm/60ml 5

Maximum competition may come from Lic Lollies available in 7 flavors priced at Rs 5

Cool Buddies Cool buddy choco bitz 40gm/50ml 12 Smileys Orange Bar 50gm/60ml 18 Cassatta Cassatta Brick 90gm/150ml 35

Kulfi Pista 50gm/60ml 18 Kesar 50gm/60ml 15

Cups Chocolate 48gm/90ml 18 Kaju Kishmish 48gm/90ml 20 Chocochip 48gm/90ml 20 Kesar Pista 48gm/90ml 22 Butter Scotch 48gm/90ml 18 Strawberry 48gm/90ml 10 Vanilla 48gm/90ml 10

Sunday Magic Jamaican Almond Fudge 90gm/150ml 20 Coffee Excess 90gm/150ml 20 Shahi Mewa Malai 90gm/150ml 20

Fruit Classic Strawberry Crush 525gm/1ltr 180 Mango Marvel 525gm/1ltr 180 Litchi Surprise 525gm/1ltr 180

Dietz Mango /Kesar Bahaar /Butter Scotch 500ml 85/95 Family Pack Vanilla 525gm/1ltr 120

Strawberry 525gm/1ltr 110 Butter scotch 525gm/1ltr 150 Chocolate 263gm/500ml 80 Chocochip 525gm/1ltr 155 Chocofudge 394gm/750ml 145 Shahi nazrana 263gm/500ml 75 Fruit and nut 263gm/500ml 85 Pine apple 368gm/700ml 155 Offered as 1+1 Free Anjeer 368gm/700ml 180

Milk Ice Cream

• Kwality Walls– Key Strengths

• Premium Imagery• Popular • TV ads• Trust and reputation • Varieties in chocolate ice

creams• Attractive packaging

Offerings in Milk Formats– Cornetto and Feast are

highest selling products– Priced at Rs 20-30 – Targeted to youth – Communication based on

romance and indulgence through TV, Outdoor Media , Social Media

Kwality Walls Current Offerings Pack Size Cost ( INR)Cornetto Choco Fudge 115ml/55gm 20

Butter Scotch 115ml/55gm 30 Snackers 45ml/22gm 15 Flirty Strawberry tease cake 115ml/55gm 30 ~Double chocolate 115ml/55gm 25 ~chocolate truffle temp 115ml/55gm 30 ~Black forest flirt 115ml/55gm 30

Feast Chocobar 70ml/34gm 15 Chocolate 70ml/34gm 25 Almond Fudge closed Fruit and Nut 70ml/34gm 25

Paddle Pops Black Grape Jelly closed Candy Cake Xplosion closed Choco Berry Nova closed Choco Vanilla closed Jelly Burst 55ml/55gm 10 Twista Ninja 70ml/44gm 15 Fun Orange 45ml/45gm 5 Fun Mango 45ml/45gm 5 Chocobar Junior 45ml/22gm 10 Crunchy choco dip 45ml/30gm 10 Rainbow Punch 55ml/42gm 10 Strawberry jelly kick 65ml/45gm 10

Product Analysis

Selection Caramel Cruch closed Nochiola 750ml/410gm 160 Cookies and Cream closed Fruit and Nut 800ml/445gm 140 Mocha Brownie Fudge 800ml/420gm 140 Tiramisu 750ml/410gm 160 Litchi Bites 800ml/430gm 140 Dutch Coconut 800ml/430gm 140 Strawberry currant 800ml/430gm 140 Black forest 800ml/430gm 140 Virenetta vanilla 600ml/285gm 150 Virenetta coconut 600ml/285gm 150 Neopolitan 1000ml/475gm 110 Chocolate xcess 900ml/428gm 120 Vanilla 740ml/340gm 110 strawberry 740ml/340gm 110 Butter scotch 740ml/340gm 169 kesar pista 740ml/340gm 169

Family pack Double Sunday 700ml/340gm 130

Moo Sticks closed Sandwich Multi Packs closed

Cup Vanilla cup 80ml/38gm 10 Strawberry cup 80ml/38gm 10 Kesar pista 80ml/38gm 20 Butter scotch cup 80ml/38gm 20

Zap Litchi zap 65ml/41gm 20 Mango zap 65ml/41gm 20

Product Analysis

• Amul– Key Strengths

• Popular • TV ads• Trust and reputation • Varieties in milk ice creams

Offerings in Milk Formats• Sticks /Swirls/Cones • Priced @ 12-25• Communicates through TVC/OOH

Milk Ice Cream

Amul Current Offerings Pack Size Cost ( INR)

ProLite Ice Cream3 Flavors : Vanilla with chocolate sauce, shahi anjeer,

chocolate 80 ml /500 ml 110

Sugar Free ProBiotic3 Flavors : Vanilla with chocolate sauce, shahi anjeer,

chocolate 80 ml /500 ml 65

Swirl4 Flavors : Cheese and Strawberry/Black Current/Khatta

Meetha Mango/Chocolate 125 ml 20Sticks Frostiks /Dollies/Candies. 60-70 ml 20

Frostik 70 ml 20 Chocolate 60 ml 15 Candy : Mango / Orange 60 ml 5 Dolly: Raspberry and Mango 70 ml 12

Cones TriconeAvailable in 50, 80 and 120

ml

25 Butter Scotch 25 Choco Crunch 15

Novelties Cassatta 150 ml 25

Hum TumRoll cut of 80 m pack and

party pack of 1 litre closed Sweet Heart Available in 1 litre closed

Cake Magic : Black forest/Very Very Strawberry/Choco

Delight 1 litre/750 ml 110

Malai Kulfi Masti Kulfi 100 and 500 ml 20 Shahi Pista 60 ml 15

Kids Sunday Fundoo 40 ml 20 Fundoo Balls ( Vanilla) 100 ml closed Fundoo Balls ( Mango) 100 ml closed Fundoo Chocobar 40 ml 8

Product Analysis

Take Away Family Packs and Cups Vanilla Royale

500 ml/ 1 Litre/ 1.25 Litre/2.25 litre

135 Fruit and Nut 170 Two in one 135 Alphanso Mango 130 Butter Scotch 160 Honey Banana 150

Chocolate Passion 135

Exotica Choco bliss 1 Litre 150 Fruit salsa 1 Litre 130 Roasted almond bingle 1 Litre 150

1+1 Party Packs Rajbhog 500ml/1 ltr/1.25 ltr 180 Spanish saffron and creambell 500ml/1 ltr/1.25 ltr 180 kesar pista 500ml/1 ltr/1.25 ltr 180 Shahi anjeer 500ml/1 ltr/1.25 ltr 170 Black currant 500ml/1 ltr/1.25 ltr 160 Fresh litchi 500ml/1 ltr/1.25 ltr 160 Fruit banana 500ml/1 ltr/1.25 ltr 150 Kaju draksha 500ml/1 ltr/1.25 ltr 150 Chocolate 500ml/1 ltr/1.25 ltr 140

Product Analysis

• Creambell– Key Strengths

• For masses • Availability• Economical

Offerings in Milk Formats• Bars /Cups //Cones• Priced at Rs 10-30• Targeted to mass consumers• Communicate through DTC medium

Milk Ice Cream

Cream Bell Variety Pack Size CostBars Chocobar 42gm/65ml 10

Choco baby 25gm/40ml 7 Choco vanilla 42gm/80ml 20 Choco krunch 50gm/70ml 18 Choco coffee 42gm/80ml 20

Kulfi Kewra kulfi 42gm/60ml 15 Rose kulfi 42gm/60ml 15 Pista kulfi 42gm/60ml 15

Doubles Mango vanilla 50gm/55ml 15 Strawberry vanilla 50gm/55ml 15 Litchi vanilla 50gm/55ml 15

Ripples Multi ripple 63gm/120ml 20 Chocolate 63gm/120ml 20 Strawberry 63gm/120ml 20

Licks Cola 50gm/50ml 5 Mango 50gm/50ml 5 Lemon 50gm/50ml 5 Orange 50gm/50ml 5 Jal jeera 50gm/50ml 5

Sluppy Butter 72gm/120ml 20 Chocolate 72gm/120ml 20 Pista 72gm/120ml 20

Cassatto Cassatto chop 79gm/150ml 30 Malai chop 79gm/150ml 30

Centre treat centre treat rum 55gm/70ml 20 orange soft centre 55gm/70ml 20 chocolate centre 55gm/70ml 20

Joostick Nimbupani 55gm/55ml 10

Black grapes 55gm/55ml 10 Pine apple 55gm/55ml 10 Strawberry 55gm/55ml 10

Sacch Mucch Sacch Much Aam 50gm/70ml 15

Family pack Kaju kishmish 357 gm 130 Vanilla 357 gm 100 Butter scotch 1250ml/625 gm 130 Plan pista 357 gm 100 Strawberry 357 gm 100 Chocolate 357 gm 120 Tuti fruity 357 gm 120 Kesar badam 357 gm 130 Three in one 357 gm 130

Fantasia Chocolate coffee 53gm/100ml 20 Almod fudge 53gm/100ml 20 King alphanso 53gm/100ml 20 Strawberry fam 53gm/100ml 20

Cups Vanilla 24gm/45ml 5 Mango 24gm/45ml 5 Strawberry 24gm/45ml 5 Vanilla 48gm/90ml 10 Strawberry 48gm/90ml 10 Kesar badam 48gm/90ml 15 Butter scotch 48gm/90ml 15 Kesar pista 48gm/90ml 15 Kaju kishmish 48gm/90ml 15

• Vadilal– Key Strengths

• Low pricing• Easy availability

Offerings in Milk Formats

• Bars /Cups //Cones• Priced at Rs 10-25• Targeted to mass consumers• Communicate through DTC

medium• Regularly runs schemes and

offers

Milk Ice Cream

Vadilal Current Offerings Pack Size Cost (INR)

Dollies/Bar

Funtastic candy, choco bar candy,mini chocobar, raspberry dolly, mango dolly,

pineapple dolly,orange dolly, litchi dolly,mango tango dolly, mini mango tango,

mini funbhari raspberry tango 50gm/60ml 15

Candies

Tiranga ice candy, kachi kerry ice candy,black currant juicy, mango juicy,orange, kala

khatta, jaljeera. Butter candy, choco cream candy,bomber candy, beat chocobar,

chococream candy,beat chocobar, nutty chocobar 55gm/60ml 5

Cups vanilla 90gm 10 Chocolate Chips 90gm 22 Kaju Draksh 90gm 10 Butter Scotch 90gm 10 Two In One 90gm 10 Ripe Strawberry 90gm 12 Super Vanilla 90gm 10 Super Kaju Draksh 90gm 10 Super Butter Scotch 90gm 10

Kulfis Matka Kulfi 50gm/60ml 20

Mango kulfi 50gm/60ml 20 Mawa kulfi 45gm/50ml 15 Pista kulfi 45gm/50ml 15 Malai masti 50gm/60ml 20

Cone Pine apple 72gm/110ml 25 Chocolate 72gm/110ml 25 Butter scotch 72gm/110ml 20 Kesar pista 72gm/110ml 20 Big treat 72gm/110ml 15 Mango treat 72gm/110ml 20 Rajbhoj cone 72gm/110ml 25 Vadilal cone 72gm/110ml 25 King cone 72gm/110ml 25

Novelties Quick Sunday 72gm/120ml 25

Easy Sunday 72gm/120ml 25 Choco Sunday 72gm/120ml 25 Cassatta 72gm/120ml 25 Badam kulfi 72gm/120ml 25 Kewra flavor 72gm/120ml 25 Sajan sajni 52gm/100ml 25 Matka kulfi 70gm/100ml 30

Party pack Kesar 750 ml/400gm 140

Chocolate 750 ml/400gm 150 Pista 750 ml/400gm 150 Carame 750 ml/400gm 150 Badam 750 ml/400gm 120 Pine apple 750 ml/400gm 120