Brand : Kwality Wall's
Company: HLL
Agency: McCann Erickson
Brand Count : 143
Kwality Wall's is one of the major brands in the Indian icecream industry. The brand Kwality icecreams which was one of the first icecream brand of India came in into existance in 1940. In 1956, the brand which was a local brand began to spread its wings. In 1995, Kwality Icecreams came into HLL's fold and is now marketed as Kwality Wall's.
The Indian icecream market is estimated to be around Rs 1500-2000 crore with the organised market hovering around 600 crore. Kwality Wall's had a market share of around 40% of this segment. Although HLL and Amul is claiming leadership in the Indian Icecream market, the fact is that the market is highly fragmented and increasingly commoditised.
Amul entered the icecream market with a low price that changed the entire dynamics of the game. Kwality Wall's could not sustain the price competition and withdrew from the mass market. This has resulted in Amul gaining the market leadership position with around 27 % and Kwality walls reduced itself as a premium player. ( the market share figures are terribly confusing ).
Company: HLL
Agency: McCann Erickson
Brand Count : 143
Kwality Wall's is one of the major brands in the Indian icecream industry. The brand Kwality icecreams which was one of the first icecream brand of India came in into existance in 1940. In 1956, the brand which was a local brand began to spread its wings. In 1995, Kwality Icecreams came into HLL's fold and is now marketed as Kwality Wall's.
The Indian icecream market is estimated to be around Rs 1500-2000 crore with the organised market hovering around 600 crore. Kwality Wall's had a market share of around 40% of this segment. Although HLL and Amul is claiming leadership in the Indian Icecream market, the fact is that the market is highly fragmented and increasingly commoditised.
Amul entered the icecream market with a low price that changed the entire dynamics of the game. Kwality Wall's could not sustain the price competition and withdrew from the mass market. This has resulted in Amul gaining the market leadership position with around 27 % and Kwality walls reduced itself as a premium player. ( the market share figures are terribly confusing ).
With so many players in the market with little differentiation, the market is facing the issue of commoditisation. Flavour,taste, quality and Branding are the major differentiation opportunities in this industry. Flavour and product varieties were the route taken by major players. But flavours/varieties can be easily replicated by the competitors. Hence the only meaningful differentiation could be the brand.
Kwality Wall's has some of the blockbuster product varieties up in its fold like the Cornetto, Feast, Viennetta. But could not sustain because the same was imitated by the competitors.Cornetto became a generic name but HLL could not capitalise on that popularity.
Amul took the life out of Kwality by positioning itself as " The Real Icecream" since Kwality is mainly made of vegetable oils.
Kwality Wall's since the onslaught of Amul has faced positioning issues. The brand had struck a reasonably good positioning as a " Connector of Hearts" . The brand had the famous tagline " ho Jaye Dil Ka Connection" and some good ad campaigns. But the the brand began to go haywhere.
The positioning changed and so has the quality of the campaigns.There was no need to change the positioning. But someone at the company was bored by this.
The recent tagline of Kwality Wall's is " Pleasure Up" which could be mistook for a tagline for an Aphrodisiac . The ads also could not be viewed with family . When I first saw the campaign i mistook it for a condom Ad.
The marketers at HLL is totally confused about the brand values , the basic STP and all marketing fundas. The owners are too obsessed with the dictum " Sex Sells", or they are too desperate about this brand. While Amul carefully connecting its corporate image with their icecream brand, Kwality Wall's is repelling its existing customers. Kwality Wall's should be positioning itself as family brand with quality and variety as its major strength's. There is also a space for a subbrand in the youth category . The task is to create an excitement in the market with promotions and new product introductions. But Kwality Wall's is wasting its money in positioning itself as a " Sexy " brand.
With the whole icecream segment becoming commoditised, it takes lot of careful strategic brand management to survive. Kwality is facing its worst crisis in its life. It has to find a platform otherwise, it is going to be out of this market.
source:businessline.walls,hll.com
You may be surprised to know that actually, the brand is doing very well in the market. As you admitted, the market share figures are "confusing" but this does not mean that there is a problem. "Ho jaye dil ka connection" may have been liked by you personally but the life of that statement could not be extended indefinitely. And it was changed, to great success in the marketplace.
ReplyDeleteSuccess is defined not by how you see (or don't see) the share figures, but by being able to make a profit in the market. That is how it is measured in the real world.
There is certainly no need to be able to watch a Cornetto advertisement "with family". Cornetto is positioned at and eaten by young and young-at-heart adults. You are making the classic mistake of confusing the 'target' with the 'reflection' (a quick perusal of Kapferer's prism may clear your doubts). If children eat Cornetto, that is a spillover effect and they are certainly not the audience that the communication is aimed at.
As for creating "excitement in the market" by promotions and NPIs - any brand manager will tell you that while that might increase sales, it certainly does not build loyalty in the long term (as far as promotions are concerned).
If KW is facing "its worst crisis in its life" don't you think it would have been axed by HLL by now?
Again, you seem to have provided a shallow analysis that does not take into account the facts or the market realities, but in fact, is coloured by your own perceptions of "what is right".
The perspective from the armchair is always skewed. And to address your earlier response to my comment on Nivea let me just say that I have done, taught AND am now leaving comments on your blog!
Hi there...Kwality walls is doing well because of innovative facilities on their website like the parlour locator.
ReplyDeleteKwality Walls website offers the parlour locator for your convenience. Now you can search for stores close to you to have different types of frozen desserts. Just go to http://www.kwalitywalls.in/parlour-locator.html?city=Durgapur&search=1#
what is the market share of kwality walls ice cream in India?
ReplyDelete