LaL Bahadur ShaStri inStitute of ManageMent

aSSignMent
StP StrategY for the LaunCh of a neW ProduCt

SUBMITTED BY: Dishu (324), Harshit (302),

Rithik Pasari (343), Sanjay Chaudhary (359),
Geetanshu (313)

GROUP: 9

COURSE: PGDM (FM)

SECTION: D

TRIMESTER: 1

SUBJECT: MARKETING MANAGEMENT

SUBMITTED TO: DR. EKTA SINGHAL

 CONTENTS

S.NO, TOPICS
1. About The Product
2. Market Research
3. Competitive Environment
4. Segmentation Criteria
5. Segment Identification
6. Position Strategy
 PRODUCT AND BRAND
 Product: Vegan Ice Cream
 Brand Name: Herbivore Ice Cream
 Brand Tagline: “Sweeten your day, the vegan way”
 Industry: Food & Beverage
 Concept: Dairy-free, plant-based ice cream made from natural ingredients like
coconut milk, almond milk, and cashew milk, targeting health-conscious and
environmentally aware customers.

HERBIVORE ICE-CREAM
 MARKET RESEARCH
 Emerging market: The vegan ice cream market in India is in its nascent stage but it
is growing rapidly. Indian vegan ice cream market size was valued at $ 70.62 Million
in FY2023, expected to grow at a CAGR of 9.3%.
 Consumer behavior: There is a growing preference for plant-based diets, concern
over dairy allergies/intolerance, and environmental sustainability.
 Competitive environment: Highly competitive with established brands and new
entrants, but significant growth potential.
Behavioral Aspects Details Supporting Data
Preference for plant-based The increasing adoption of - Percentage of Population:
diets plant-based diets, especially 63% of Indian millennials
among millennials and Gen are open to trying plant-
Z, is driven by health, based foods.
ethical, and environmental - Source: Nielsen (2023)
concerns. reports that plant-based food
sales have grown by 20%
year-on-year.
Dairy allergies/intolerance Rising awareness and Prevalence: Approximately
diagnosis of lactose 60-65% of the Indian
intolerance is pushing population is lactose
consumers to seek dairy intolerant.
alternatives, including vegan - Source: The Good Food
ice cream. Institute (2023) indicates
that lactose intolerance is a
major driver for dairy
alternatives.
Environmental Growing concern over the - Consumer Concern: 58%
sustainability environmental impact of of Indian consumers are
dairy production is concerned about the
encouraging consumers to environmental impact of
opt for plant-based their food choices.
alternatives. - Source: Deloitte (2023)
reports a significant shift
towards sustainable
consumption in India.
Growth in vegan product Increased availability and - Market Expansion: Vegan
offerings variety of plant-based product offerings in major
products, including vegan Indian cities have increased
ice cream, to meet growing by 30% over the past two
consumer demand. years.
- Source: Business Standard
(2023) reports a surge in
vegan product launches.
Willingness to pay a Consumers are willing to - Premium Segment
premium pay a higher price for Growth: The premium
plant-based food segment is
 products that align with their growing at 18% annually.
health and ethical values. - Source: Mintel (2023)
notes a strong demand for
premium vegan products
among affluent consumers.

CONSUMER BEHAVIOR TRENDS IN THE VEGAN ICE CREAM MARKET

5

GRAPH DEPICTING THE GROWTH OF THE VEGAN ICE CRAM MARKET IN INDIA

Price Points and Consumer Willingness to Pay

 COMPETITIVE ENVIRONMENT
Aspect Details Supporting data
Market players The vegan ice cream market Domestic Brands:
in India is a mix of domestic - WhiteCub: Pioneers in
and international brands, vegan ice cream in India,
each competing for market offering a wide range of
share in an emerging flavours.
segment. - NOMOU: Focuses on
premium, handcrafted vegan
ice creams.
International Brands:
- Ben & Jerry’s: Introduced
their non-dairy range to
cater to Indian consumers.
- Baskin Robbins: Offers
vegan options alongside
their traditional range.
Product differentiation Brands differentiate through WhiteCub: Emphasizes
unique flavors, quality natural ingredients and no
ingredients, and ethical artificial additives.
sourcing practices. Ben & Jerry’s: Focuses on
indulgent, chunky flavors
with a message of
sustainability.
Papacream: Known for
innovative, fusion flavours
like Vegan Chocolate Fudge
Brownie.
Pricing strategies The market features WhiteCub: Positioned as a
premium pricing due to the premium brand, reflecting
cost of high-quality, plant- quality and ethical sourcing.
based ingredients, but there NOMOU: Targets the
are also emerging brands luxury segment with prices
offering affordable options. higher than traditional ice
creams.
Local Brands: Some are
exploring mid-range pricing
to capture a broader
audience.
Distribution channels Vegan ice creams are Online Presence: Platforms
available in urban like BigBasket, Amazon,
supermarkets, specialty and local grocery apps are
health food stores, and key distribution channels.
online platforms. Expansion Retail Presence: Available
to Tier 2 cities is growing. in premium supermarkets
like Nature’s Basket and
Foodhall, as well as in cafes
and vegan restaurants in
metro cities.
Barriers to entry High production costs, need Ingredient Sourcing:
for specialized ingredients, Access to high-quality,
and strong brand loyalty plant-based ingredients is
among consumers create crucial.
barriers for new entrants. Brand Loyalty: Established
brands like Ben & Jerry’s
leverage their global
reputation to maintain a
competitive edge.
Opportunities for growth Increasing consumer interest Flavors: There’s potential
in vegan products, potential for developing region-
for innovation in flavours specific flavours to appeal to
and ingredients, and local tastes.
expanding into less saturatedMarket Expansion:
Tier 2 and Tier 3 markets. Companies are gradually
expanding to smaller cities
where awareness of
veganism is growing.
Challenges High price sensitivity, Awareness: Brands need to
limited awareness in non- invest in marketing to
metro areas, and competition increase consumer
from traditional dairy-based awareness in Tier 2 and Tier
ice creams. 3 cities.
Price Sensitivity: Brands
face challenges in balancing
cost with competitive
pricing.
Competitive Environment In Vegan Ice Cream Market

Competitive Market Share

 Segmentation Criteria

Demographic  Age: 18-45 years.

 Gender: Both male and female.
 Income level: Middle to upper class.
 Occupation: Primarily urban professionals and students.
Geographic  Location: Urban areas in India.
 Climate: Markets with a preference for frozen desserts.
Psychographic  Lifestyle: Health-conscious individuals, environmentally
aware, ethical consumers.
 Values: Sustainability, animal welfare, dietary restrictions.
 Attitudes: Preference for natural, plant-based foods.
Behavioral  Purchasing habits: Regular buyers of plant-based,
individuals with lactose intolerance, vegan or flexitarian
consumers.
 Benefits sought: Dairy-free alternatives, ethical product
choices, indulgent yet guilt-free treats.

Target Market Segment Analysis

Consumers’ Motivations For Choosing Vegan Ice Cream
 SEGMENT IDENTIFICATION
Segment 1: Millennials Urban professionals with a strong interest in health,
(Aged 25-45) sustainability, and ethical consumption.
Segment 2: Gen Z (Aged Socially conscious students and young adults who are early
18-24) adopters of plant-based diets and products.

Target Market Selection

Primary target market.  Young Adults (25-35): Urban professionals and
students who are environmentally conscious, health-
oriented, and open to plant-based diets.
 Rationale: this segments because they align with
current trends of increasing demand for plant-based
products, particularly among younger consumers
who are more likely to adopt and advocate for vegan
lifestyles.
Secondary target market.  Millennials (Aged 25-45): urban professionals with
stable income, high purchasing power, health
conscious.
 Rationale: This segment is characterized by higher
purchasing power, a strong commitment to
sustainability, and a willingness to pay a premium
for products that align with their values. They are
also key influencers in driving broader market
trends.
 POSITIONING STRATEGY
Positioning "For the health-conscious, environmentally aware Millennial,
statement Herbivore Ice Cream offers a premium range of delicious vegan ice
creams made from the finest plant-based ingredients, delivering
indulgence without compromise."
Strategy  Product: Focus on unique flavours and high-quality plant-
based ingredients.
 Price: Premium pricing, reflecting quality and sustainability.
 Place: Distributed through health food stores, specialty
supermarkets, and online platforms.
 Promotion: Leverage social media marketing, partnerships
with vegan influencers, and sustainability-focused
campaigns. Offer tasting events in urban areas.