FD0043IS Sample Pages Insight Report June 2014

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1 Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the Indian Ice Cream Market FD0043IS Sample Pages Insight Report June 2014

2 Example table of contents Definitions Category classifications Demographic definitions Summary methodology Trend framework Market context Drivers and inhibitors of consumption Overall market value, (US$ millions), Overall market volume, (millions of KG), Market volume, (millions of KG), , by segment Number of consumption occasions in 2012, by gender Number of consumption occasions in 2012, by age Global country comparison of market value and growth, (US$ millions), Global country comparison of market volume and growth, (millions of KG), Volume of sold globally and forecast CAGR over the period (size of bubble denotes market volume) Demographic cohort consumption patterns Breakdown of consumption occasions 2012, by gender Over/under consumption compared to the proportion of society represented Breakdown of consumption occasions 2012, by age group Over/under consumption compared to the proportion of society represented Breakdown of consumption by whether it is the result of heavy, medium or light consumption, by gender, 2012 Breakdown of consumption by whether it is the result of heavy, medium or light consumption, by age group, 2012 Consumer trend analysis Level of influence each trend has on overall consumption, by volume, 2013 Level of influence each trend has on overall consumption across the globe, by volume,

3 Example table of contents - continued Consumer trend analysis - continued The Changing Lifestyle mega-trend The Connectivity mega-trend The Convenience mega-trend The Ethics mega-trend The Experience & Enjoyment mega-trend The Health & Wellness mega-trend The Individuality mega-trend The Trust mega-trend The Value mega-trend Innovation examples Innovative country-specific launches in the sector Innovative global launches in the sector Recommended actions Recommendations for manufactures, marketers and retailers Appendix An explanation of the sub-trends Detailed methodology About Canadean

4 Reasons to buy this report This report brings together consumer analysis and market data to provide actionable insight into the behavior of consumers. This is based on Canadean s unique consumer data developed from extensive consumption surveys and consumer group tracking which quantifies the influence of 20 consumption motivations within your industry. Consumer trends analysis An overview of the key demographic groups driving consumption in your industry, and what their motivations are for doing so. This enables the reader to identify the most important trends within the market and also determine whether beliefs over what influences consumer behavior within the category are accurate. Market sizing Market value and volumes are given over for 10 leading countries across the globe. Coverage includes major European markets, the US, and the emerging markets of Brazil, Russia, India, and China. Demographic analysis Key demographic groups driving consumption within the Indian market are identified. The figures showcase the number of Dairy occasions attributed to specific age groups and genders, as well as identifying whether these demographic groups "over" consume in the category. Product innovation examples Examples are provided of innovative international and country-specific product development within your industry, with analysis of how these products effectively target the most pertinent consumer need states. Recommended actions Strategic recommendations of how to capitalize on the evolving consumer landscape are offered, allowing product and marketing strategies to be better aligned with the leading trends in the market. Future outlook The report provides insight to highlight the "so what?" implications behind the data, and analysis of how the need states of consumers within your industry will evolve in the short-to-medium term future. 4

5 Media influence and penetration of Ice Cream parlors is driving the Indian Ice Cream market There are a number of reasons why consumers turn to Ice Cream and a number of reasons they don t. It is crucial for manufacturers to understand what consumers want from the actual products that they purchase Fun and Enjoyment: Consumers seek Ice Cream as fun accompaniments to enjoy leisure time with friends and family. Convenience: Ice Cream products can be consumed on-the-go and as they are conveniently packed and available in most of the retail outlets. Media Influence: TV commercials and digital campaigns have a strong influence in driving Ice Cream consumption in India. Penetration of Ice Cream parlors: Rising penetration of national and multinational ice cream outlets are causing a greater number of consumers to choose ice cream. Product range and Innovation: Increased innovation in terms of formulations and wider product range has led to increased interest among consumers. DRIVERS OF CONSUMPTION INHIBITORS OF CONSUMPTION Preference for substitutes: Consumers sometimes favour other dairy products over ice creams depending on individual taste and preferences. Health: Ice cream products are inherently associated as being unhealthy due to high sugar content and presence of additives. Age restricted demand: Parents of young children, and Older Consumers may avoid buying more ice cream, opting for nutritional substitutes. Lack of cold storage facility at home: Limited refrigerator ownership in rural areas is leading to low consumption occasion of take-home ice cream. Seasonal Product: Majority of Indian consumers consider ice cream as a seasonal product to get relief from the high temperature in summers 5

6 The Connectivity mega-trend: Indian consumers are becoming increasingly active internet users, creating opportunities for brands How the Connectivity mega-trend manifests in consumer behavior in the Ice Cream market A desire for Connectivity is not a high driver of Indian Ice Cream consumption, however, consumers do experience an above average receptivity to products that feature in popular media. XX% of Ice Cream consumption in India is currently driven by the Media trend, which is the third highest proportion globally, after Brazil and China. Indian consumers make receptive targets to promotional campaigns through channels such as television and, increasingly, online, as India overtakes the US s number of internet users. Internet penetration in India is driven largely by mobile phones, with even the cheapest hand-sets offering access to the internet. India has XX million mobile internet users of which XX million are in rural India. This highlights opportunities for marketers to reach consumers outside of urban areas alone, a market who will become increasingly important as distribution and cold chain networks improve in the country, as well as highlighting the need for brands to have a mobile optimised site for consumers to land on. Extent that the trend influences consumer behavior Product innovation example Product: Amul ice cream Manufacturer: Amul Aspirations Connection Media Technology Uptake Amul, the market leader with XX.X% of Indian Ice Cream sales, promotes its products to consumers through online media such as Amul, contests and competitions, and Amul Hits, where comic strips featuring topical events from entertainment news document the adventures of the brand s characters. 6

7 Manufacturers, marketers, and retailers need to encourage consumption by improving infrastructure, targeting adults, and using media campaigns Per capita consumption of Ice Cream needs to be increased Per capita consumption of packaged Dairy products is low compared to the US, Europe, and other emerging markets such as Brazil, Russia, and China, with the average Indian consumer enjoying less than two ice cream occasions per year. There is substantial room for growth among India s large population if manufacturers, marketers, and retailers can improve the availability of products, increase adult consumption, and make effective use of media campaigns. Improve distribution One of the major challenges for manufacturers is improving cold storage facilities in India. These are underdeveloped in India, especially in smaller cities, and this along with a low supply of electricity during the high-demand summer months affects ice cream stocks. Once stocked ice cream melts, it becomes non-saleable, which compels retailers not to carry enough stocks. Thus manufacturers and retailers have to work together to improve the cold storage facilities for deeper penetration in smaller cities and rural areas. Increase adult consumption Ice cream consumption is especially low among adult consumers, with Older Young Adults, Pre-Mid-Lifers and Older Consumers experiencing the lowest number of ice cream occasions. As well as bringing out fun products for younger consumers, manufacturers should innovate with indulgent products targeted at adults and communicate this in promotional materials. For instance, manufacturers have launched products such as Cornetto targeting young adults. Utilize media campaigns Ice Creams in India are traditionally seen as an seasonal product that helps consumers to provide relief from the scorching heat of summers. The bulk of sales happen during the summer months of April to July, while the sales witness a significant dip during winter months of November to February. Thus marketers should use media campaigns to highlight Ice Creams for perennial consumption rather than as a seasonal product. Campaigns offering discounts and promotions during these months will find success. 7

8 Manufacturer of Ice Cream are innovating across categories to target growing needs of the Indian consumers Innovative Indian launches in the Ice Cream sector Brand: Magnum Ice Cream Manufacturer: Hindustan Unilever (HUL) Launched: India, 2014 Trend: Quality Seeking, Indulgence Hindustan Unilever launched Magnum Ice Creams in major metropolitan cities of India. Magnum is made up of Belgian chocolate and is available in three flavors Classic, Almond and Chocolate Truffle. It is positioned as a premium product, priced at INR85 a stick. Brand: Chocolate Gateau Manufacturer: Mother Dairy Launched: India, 2014 Trend: Indulgence Mother Dairy introduced two new flavors: Chocolate Gateau and Caramel Croquant under its flagship brand - Classics. The Chocolate Gateau comprises of Chocolate ice cream filled with chocolate sauce at the centre with pieces of chocolate brownie to provide a rich chocolate taste. Brand: Saffron Creamballs Manufacturer: Creambell Launched: India, 2014 Trend: Experience Seeking Creambell, one of India s fastest growing ice cream brands launched an addition to its range of Indian desserts, Saffron Creamballs. It combines saffron, nuts, cardamom and cream, which captures the taste and texture of Bengali Chhena. It comes in rectangular packaging, and is priced at INR105 for a 650ml pack. Brand: Fresh & Naturelle Alphonso Mango Manufacturer: Pabrai s Fresh and Naturelle Launched: India, 2014 Trend: Health, Individualism Pabrai s Fresh and Naturelle, a company known for natural ice creams, has introduced a new flavor: Alphonso Mango. The company claims to use 100% natural ingredients in its fruit range products. 8

9 Summary Methodology This report is comprised of two data research programs MARKET DATA Method: analyst triangulation of consensus numbers based upon comprehensive primary and desk research as part of an international research programme. Coverage: 50 Countries fully researched Category and segment breakdown Eight channels Value and Volume data Internationally comparable data 100% standardized definitions CONSUMER DATA Method: extensive consumption surveys and consumer group tracking with strict age and gender quotas to ensure nationally-representative results. Coverage: 10 Countries 20 Consumer Trends 26 Consumer Groups Category breakdown Integrated market sizing at the country and category level Interim 2013 Consumer data generated by mapping 2013 Market size data onto 2012 Consumer data consumption values Details on the methodology for both of these research programs can be found in the Appendix. 9

10 Related reports Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the Brazilian Dairy Food Market Brazilians select Dairy products based on their ability to meet age-specific needs. This doesn t just apply to children, with Older Adults increasingly aware of their specific nutritional needs. Although poverty rates have declined rapidly in Brazil, the low income of many consumers means they will seek out the best value for money products. Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the German Bakery & Cereals Market Indulgence is the primary driver of the German Bakery & Cereals market, motivating over two-fifths of consumption. The need is high in all categories, but peaks in the consumption of cookies and cakes with consumers perceiving these as the go-to categories for decadent, tasty treating where they desire rich taste experiences and novel texture combinations. Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the Indian Savory Snacks Market As an effect of the recessionary environment in the country, people are eating out less and entertaining more at home, engaging in indulgent snacks as an affordable treat to offer friends and family. Savory Snacks are relatively low cost, even for more premium offerings, making them an attractive way of treating oneself regardless of the occasion. 10

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