Cold war

Dairy products giant Gujarat Cooperative Milk Marketing Federation (GCMMF) plans to launch a full-scale assault on the Rs 450-crore (organised) ice-cream market with a new ice-cream sub-brand Fundoo. The new range will be launched in two candy flavours at Re 1 each, thus pitching it directly against Kwality Wall's sub-brand Max Uno - also priced at Re 1- that was launched last year.

Under the Fundoo range, Amul will also launch ice-creams at higher price-points, which will be available in four variants of vanilla (Rs 10) strawberry (Rs 12), Sundae (Rs 15) and mango (Rs 14).

According to GCMMF, Amul enjoys a 35-per cent share of the organised ice-cream market, against HLL's estimated 50 per cent. GCMMF claims that its aim is to grow the market and not just take the fight to the Wall's court. So, while Max Uno is priced at Re 1 for 15 ml, Fundoo will be at Re 1 for 45 ml. Amul is also running schemes and offering price-cuts for its existing sub-brands. It recently ran a scheme on its premier sub-brand brand "Tricone". There was a price cut of Rs 5 on its normal price of Rs 15.

Currently, Amul is offering Rs 3 off on Frostik which usually sells for Rs 15, and which is placed against Kwality Wall's Feast which sells for Rs 19. Similarly, Amul's Chocobar now comes at a Rs 2 price-off. To promote its five litre bulk pack for

parties, caterers and institutional buyers, the company recently launched an campaign that says "Rs 4.30 only for a scoop of 100 ml", driving home its competitive pricing.

Meanwhile, Wall's is using the Max brand to contain price warrior Amul's relentless assault on its bastion. The Max range, available in the price range of Re 1 to Rs 16, has seen several extensions recently - Max Joos (fruit juice with vitamin C), Max Vitameter (which acts as a self vitamin check), Biki Max (ice-cream sandwiched between two glucose biscuits) and Max Rose (with rose milk in it).

The company recently test launched Max 1-2-3, an ice-cream with three flavours: strawberry, vanilla and chocolate.

HLL has also upped its advertising and marketing budget for ice-creams this year, though figures were not available. While Amul is focussing on its aggressive pricing in its communication, HLL is harping on the food value of its product by telling

the consumer that ice-creams are hygienic and wholesome. A clear effort to stick to a premium positioning.

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