Group 13

P23001 -Aanya Tyagi

P23006 -Akshat Gupta
P23048 -
Rose Vaishnavi
P23054 -Shreevanti Puranik
P23066 -Venuganti Gopinadh Sudheer Kumar

PADDLE POP: DITCH OR REVAMP?

It is 2018, and the boardroom of Kwality Walls is enveloped in tension as executives grapple with a pressing issue - the
continuous decline in Paddle Pop ice cream sales. The faces of the marketing and sales team executives mirrored the heat
– flushed and etched with concern. The agenda: Paddle Pop, a once-beloved childhood treat, was facing a chilling reality
– declining sales. As one of India's leading ice cream brands, Kwality Walls faces a pivotal decision: Should they
consider discontinuing their beloved brand, Paddle Pop, due to its declining performance?

THE BOOMING ICE CREAM MARKET IN INDIA

India has a longstanding love affair with chilled treats, which is evident in the rich history of its ice cream market. In
ancient times, Sanskrit literature mentions "shikhrani," an early frozen dessert crafted from milk, rice, and fruits using
earthen pots and ice. The Mughal era introduced Kulfi, a dense delicacy comprising milk, nuts, and sugar, favored by
royalty.

With colonial influences in the 18th and 19th centuries, the term "ice cream" emerged, though limited ice access hindered
commercial production. Post-independence, the modern ice cream market flourished, marked by establishing local dairies
and companies like Kwality Walls, Amul, and Vadilal, broadening accessibility and introducing diverse flavors. The
organized sector burgeoned in the 1980s, fueled by technological advancements and infrastructure development,
exponentially expanding flavor varieties and market size. Presently, the Indian ice cream market exceeds Rs. 20,000
crores, with national and regional players vying for market share amidst rising disposable incomes and evolving lifestyles.
The market is poised for continued growth, driven by urbanization, a youthful demographic, and the innovation of new
flavors and healthier alternatives.

KWALITY WALLS' SWEET JOURNEY IN INDIA

Kwality Wall's, a renowned name synonymous with ice cream in India, traces its roots back to the pre-independence era.
In the 1940s, Kwality Ice Cream emerged as an Indian entity, offering classic flavors like vanilla and strawberry.
Meanwhile, Hindustan Lever, a British company established in India in the 1890s, boasted a global ice cream brand -
Wall's. In a strategic move in 1956, Kwality Ice Creams merged with Hindustan Lever, giving rise to Kwality Wall's
1
India, leveraging Kwality's local expertise and Wall's international stature. This merger marked a significant milestone,
enabling the company to expand nationally. Throughout the late 1950s to the 1980s, Kwality Wall's focused on building
its brand and reaching consumers through an extensive distribution network, diverse product range, and impactful
marketing strategies. However, the 1980s witnessed the emergence of formidable competitors like Amul and Vadilal,
prompting Kwality Wall's to innovate and diversify its offerings to cater to changing consumer preferences. Technological
advancements in refrigeration and cold chain infrastructure in the 1990s further revolutionized the industry, ensuring year-
round availability and consistent product quality. In the subsequent decades, Kwality Wall's remained a key player,
adapting to market shifts through product diversification and modern marketing strategies. By 2018, Kwality Wall's
maintained its dominance, poised to capitalize on the future growth of the Indian ice cream industry. Looking beyond
2018, recent developments like interactive gaming experiences with INOX cinemas and a focus on flavors tailored to the
Indian palate indicate the company's commitment to innovation. With a promising future outlook, Kwality Wall's
continues to thrive in the dynamic landscape of the Indian ice cream market.

PADDLE POP: A STAR IS BORN

In the late 1990s, Paddle Pop, a well-known ice cream treat from Kwality Walls, entered the Indian market with a splash.
This colorful popsicle, featuring a creamy center encased in a chewy shell, quickly captured young consumers' hearts
(and taste buds). However, its future position within the competitive ice cream landscape remained uncertain, placing it
in the question mark category of the BCG Matrix. While it had achieved some brand recognition, Paddle Pop now faced
the challenge of solidifying its market share and justifying continued investment.

FROM QUESTION MARK TO STAR: THE RISE OF PADDLE POP WITH MAX

Paddle Pop's initial entry into the Indian market in the late 1990s placed it in the uncertain "question mark" category of the
BCG Matrix. However, the 2000s and 2010s witnessed a remarkable transformation. Kwality Walls, recognizing the need
to solidify Paddle Pop's position as the leading children's ice cream, introduced Max, the iconic Paddle Pop lion.

Max's arrival marked a turning point. A comprehensive marketing campaign featuring Max's adventurous spirit and love
for Paddle Pops captivated young audiences. Captivating television commercials, interactive games, and a packaging
makeover featuring Max fostered a solid emotional connection with children. This was not just brand recognition; it was
brand loyalty.

Kwality Walls' brilliance did not stop there. Serialized commercials and even short movies featuring Max's adventures
further cemented his place in children's hearts. This innovative approach and limited-edition flavors tied to Max's
adventures and exciting collectibles kept the brand fresh and relevant. The result? Soaring sales and a dominant position
in the children's ice cream market. Paddle Pop graduated from the "question mark" category to the coveted "star" category
of the BCG Matrix, a testament to the power of the Max campaign and Kwality Walls' strategic marketing efforts.

FROM STAR TO DOG: THE CHALLENGES OF MAINTAINING DOMINANCE

Paddle Pop's reign as the king of children's ice cream (a shining "star" in the BCG Matrix) was not destined to last
forever. As it entered the product life cycle's maturity stage, challenges emerged. Competition intensified, consumer

2
preferences shifted, and the market landscape evolved. Paddle Pop's once impressive growth rate slowed, and sales figures
plateaued. The brand struggled to hold onto its market share against a wave of innovative rivals.

By the mid-2010s, the cracks began to show. Sales figures turned downward, with year-on-year growth dipping into
negative territory. Estimates suggest annual declines exceeding 10%. This freefall pushed Paddle Pop out of the favorable
"star" category and towards the precarious "dog" section of the BCG Matrix. The once dominant force was now struggling
for relevance in a market it once ruled.

A FADING SUMMER DREAM: A BCG MATRIX ANALYSIS OF KWALITY WALLS IN 2018

Stars: Shining Bright

 Magnum and Cornetto: These newer ice cream offerings blazed a trail in the "Stars" category. Their innovative
formats, premium ingredients, and effective marketing campaigns resulted in impressive growth rates and a
significant market share capture. They are the golden geese of Kwality Walls, generating significant profits to fuel
further brand development.

Cash Cows: Reliable Streams of Revenue

 Walls Vanilla and Chocolate: These established veterans of the Kwality Walls portfolio resided comfortably in
the "Cash Cow" category. Their brand recognition was undeniable, and while growth might have plateaued, they
continued to generate steady profits. These reliable performers provided the cash flow needed to support the
launch and marketing of new contenders.

Question Marks: The Enigmatic Zone

Emerging contenders: This section has housed some of Kwality Walls' newer offerings beyond Magnum and Cornetto. a
recently launched Kulfi brand, and a new line of frozen yogurts aimed at health-conscious consumers. These products
have shown promise but lacked the established market share and explosive growth yet to qualify as "Stars."

Dogs: Facing the Sunset

 Paddle Pop: Sadly, the once-dominant Paddle Pop was in the dreaded "Dog" category. Declining sales and a
shrinking market share painted a concerning picture. The reasons for the shift are the rising competition, evolving
consumer preferences towards healthier options, and an inability to keep the Max campaign fresh and relevant for
a new generation of children.

Why Paddle Pop Lost its Bite

 Rising Competition: The Indian ice cream market witnessed a surge in new players offering exciting flavors,
formats, and premium ingredients targeted at adults. Paddle Pop's focus on primary fruity flavors and its
"childish" image, heavily reliant on the Max campaign, failed to adapt to these evolving consumer preferences.
 Health Concerns: Growing health consciousness led many consumers to opt for perceived healthier alternatives
like frozen yogurt or low-calorie ice creams. Paddle Pop's sugary content did not resonate with this trend.

3
  Lack of Innovation: Paddle Pop's core format and flavor offerings remained unchanged for decades. This
stagnant approach failed to excite consumers accustomed to the constant innovation seen in the ice cream market.
 Marketing Missteps: Kwality Walls' marketing strategy for Paddle Pop remained heavily focused on children
through the Max campaign. As its core audience matured, the brand failed to establish a connection with older
demographics, missing out on a potentially lucrative market segment.

STRATEGIC CONSIDERATIONS FOR PADDLE POP: REVAMP OR REMOVE?

After assessing Paddle Pop's and other brands' present status within Kwality Walls, the executives proposed two potential
courses of action: either reinvigorate or discontinue the Paddle Pop brand. Below are the advantages and disadvantages
associated with each scenario-

Revamping Paddle Pop

Pros:

 Leveraging Brand Recognition: Paddle Pop's existing brand awareness can be capitalized upon, reducing the
time and resources needed to establish a new product line.
 Lower Investment Risk: Unlike launching a new brand, revitalization requires a lower initial investment.
 Potential for Growth: The Indian ice cream market continues to expand. Paddle Pop can tap into new customer
segments, and experience renewed growth with a strategic approach.

Cons:

 Uncertainty of Success: Revitalization efforts can be risky, and Paddle Pop is not guaranteed to regain its
previous market share.
 Investment Required: While lower than launching a new brand, revitalization still requires investments in
product development, marketing, and distribution.
 Time Commitment: A successful revival takes time. Kwality Walls must be prepared to dedicate resources and
wait for market response.

Dropping Paddle Pop

Pros:

 Resource Allocation: Discontinuing Paddle Pop would free up resources for investment in higher-growth areas
of the Kwality Walls portfolio, such as premium offerings or innovative new product lines.
 Streamlined Operations: Eliminating a declining brand simplifies operations and reduces production and
marketing costs associated with Paddle Pop.
 Focus on Core Business: This approach allows Kwality Walls to focus on its core competencies and high-
performing products.

Cons:

 Loss of Brand Equity: Although declining, Paddle Pop still possesses brand recognition, particularly among
older generations. Abandoning this recognition entirely would be a missed opportunity.

4
  Negative Customer Perception: Dropping a beloved brand might be seen negatively by consumers, potentially
impacting Kwality Walls' overall brand image.
 Missed Potential for Revival: A well-executed revitalization strategy could bring life into Paddle Pop and
unlock new market segments.

While the analysis provided a clear picture, the choice remained difficult. Was it time to say goodbye to a familiar friend,
or could Paddle Pop be reintroduced to a new generation of ice cream lovers? Only time and a well-crafted strategy would
tell.

(no exhibit or financial statistics as the information is confidential and not available on web)

REFERNCES:
[Link]
1. [Link]
2. [Link]
[Link]
3. [Link]
4. [Link]
%20Boston%20Consulting%20Group%20Matrix,most%20popular%20portfolio%20analysis%20methods/html

5
 Group 13

P23001 -Aanya Tyagi

P23006 -Akshat Gupta
P23048 -
Rose Vaishnavi
P23054 -Shreevanti Puranik
P23066 -Venuganti Gopinadh Sudheer Kumar

FIVE FORCES, ONE CHOICE: VLCC'S BEAUTY PRODUCT

DIVE
The year is 2000. Mumbai's vibrant energy hums outside the headquarters of VLCC (Vandana Luthra Curls and Curves).
Inside, a different kind of energy crackles – the energy of ambition and strategic planning. Vandana Luthra, the visionary
founder of VLCC, sits at the head of a conference table, her gaze focused on her team. Established in 1989, VLCC has
become synonymous with personalized beauty and wellness solutions in India. Today's meeting, however, marks a pivotal
moment. The question, heavy with opportunity and challenge, is this: Should VLCC leverage its success and venture into
the booming beauty products market?

A LEGACY BUILT ON EXPERTISE:

VLCC's story began in 1989, a testament to Vandana Luthra's vision for a holistic approach to beauty. She recognized a
gap in the market for comprehensive beauty and wellness solutions and established the first VLCC center in Delhi. The
focus was not solely on aesthetics; it was about empowering individuals to achieve well-being from the inside out. This
philosophy resonated with a growing segment of the Indian population. VLCC's offerings expanded to include weight
management programs, specialized skin and hair care services, and a commitment to personalized consultations. By 2000,
VLCC had established itself as a leading brand with a loyal clientele. Its success stemmed from a unique blend of factors:
a deep understanding of Indian beauty needs, a commitment to scientifically proven methods, and a team of qualified
professionals.

However, the story of Indian cosmetics pre-2000 was not just about international influences. Established domestic brands
like Lakme, founded in 1952, were household names—Lakme, known for its kajal and lipsticks, explicitly catered to
Indian skin tones and preferences. Alongside Lakme, brands like Shahnaz Husain, established in 1970, offered a blend of
Ayurvedic and modern cosmetics, capitalizing on the growing interest in natural beauty products. These homegrown
giants laid the foundation for the industry's later boom, offering familiar and trusted options to an increasing audience.

6
BEAUTY PRODUCTS AND COSMETICS INDUSTRY IN INDIA

The 1990s were a boom time for Indian beauty. Economic liberalization opened the door for international brands, and a
string of Indian victories in international pageants (Miss Universe & Miss World), like Sushmita Sen in 1994, fueled a
national obsession with beauty and self-care. This, coupled with a growing middle class and rising health and fashion
awareness, propelled the Indian cosmetics industry to new heights. By 1999, the market saw an 8% annual growth,
reaching a value of Rs. 126 billion by 2001(Exhibit 1). However, the story of Indian cosmetics pre-2000 was not just
about international influences. Established domestic brands like Lakme, founded in 1952, were household names—
Lakme, known for its kajal and lipsticks, explicitly catered to Indian skin tones and preferences. Alongside Lakme, brands
like Shahnaz Husain, established in 1970, offered a blend of Ayurvedic and modern cosmetics, capitalizing on the
growing interest in natural beauty products. These homegrown giants laid the foundation for the industry's later boom,
offering familiar and trusted options to a growing audience.

PORTER'S FIVE FORCES ANALYSIS FOR VLCC'S BEAUTY PRODUCTS ENTRY

NEW ENTRANTS
Moderate Threat: While established brands like Hindustan Unilever Limited (HUL) and Lakme held significant market
share, the Indian beauty market was fragmented. Numerous regional players competed fiercely, offering various products
at various price points. This fragmented landscape presented an opportunity for a well-established brand like VLCC to
leverage its reputation and customer base to carve out a niche within the market. By focusing on its unique strengths and
developing a targeted product strategy, VLCC could overcome new entrants' initial challenges.

SUPPLIER POWER
Low Threat: The presence of numerous raw material suppliers and contract manufacturers in the Indian market offered
VLCC significant negotiating power. This meant the company could secure competitive pricing and readily source the
materials needed for product development and manufacturing. Additionally, the fragmented nature of the supplier
landscape allowed VLCC to build relationships with multiple vendors, mitigating dependence on any single supplier.

BUYER POWER
Moderate Threat: While Indian consumers were known to be price-sensitive, the beauty market also exhibited a growing
trend toward premiumization. This indicated that consumers were increasingly willing to pay a premium for high-quality,
compelling, and differentiated products. By focusing on creating value through its brand recognition, scientific backing,
and understanding of Indian beauty needs, VLCC could mitigate the impact of buyer power and establish itself as a
premium player in the market.

THREAT OF SUBSTITUTES
Moderate Threat: The existence of natural and home remedies posed a potential threat as substitutes for commercially
produced beauty products. However, the convenience, perceived effectiveness, and consistent quality offered by branded
products limited the immediate threat of substitutes. Additionally, VLCC could explore opportunities to develop natural or
organic product lines to cater to consumers seeking alternative solutions.

COMPETITIVE RIVALRY
High Threat: The Indian beauty market was a fiercely competitive landscape. Established players like HUL and Lakme
held significant market share, while numerous regional and international brands jostled for consumer attention. This
intense competition meant that VLCC would need to carefully consider its product positioning, marketing strategy, and
pricing to differentiate itself and establish a loyal customer base.

7
VLCC's Competitive Advantage:
● Strong Brand Recognition and Established Customer Base: VLCC already enjoyed a positive reputation in the
Indian market, built on trust and expertise in the beauty and wellness domain. This existing brand loyalty could
serve as a springboard for entry into the beauty products market.
● Expertise in Beauty and Wellness: VLCC's team possessed a deep understanding of beauty needs and trends,
which could be leveraged to develop targeted and effective products.
● Understanding of Indian Consumer Preferences: VLCC's experience in catering to the specific needs of Indian
consumers could be a valuable asset in creating products that resonate with the target audience.

THE DECISION
The room crackled with a mix of anticipation and apprehension. The analysis laid out the challenges and opportunities.
With its established brand and expertise, VLCC had a strong foundation for entering the booming beauty products market.
However, the competition was fierce, and success was not guaranteed.
A determined glint shone in her eyes as Vandana Luthra surveyed her team. VLCC has always been about empowering
individuals to achieve holistic beauty. It may be time to extend that vision beyond their centers' walls and directly into
their customers' hands. The decision loomed enormous – a calculated gamble with the potential to redefine VLCC's
presence in the Indian beauty landscape. The question remained: Would they take the plunge?

Year Estimated
Growth over
Previous Year
1995 -

1996 5-7%
1997 6-8%
1998 7-9%
1999 8%
2000 6-8%
2001 8.70%
[Exhibit 1]

REFERENCES-

1. [Link]
2. [Link]
3. [Link]
4. [Link]
5. [Link]

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 Group 13

P23001 -Aanya Tyagi

P23006 -Akshat Gupta
P23048 -
Rose Vaishnavi
P23054 -Shreevanti Puranik
P23066 -Venuganti Gopinadh Sudheer Kumar

CRED’S REVENUE TRIPLES BUT COMPANY STILL IN

LOSSES?
As Kunal Shah and his team gathered around the sleek conference table, the air crackled with anticipation and concern.
They were engrossed in discussing the intricate details of their latest dilemma. A flaw in the credit card payment system,
meticulously uncovered by CRED, had paved the way for a unique marketing tactic - a "hook" enticing users with
extravagant benefits like 100% cashback. Despite their innovative approach and substantial investments in platform
customization to enhance user engagement, the company found itself grappling with a perplexing paradox. Despite an
impressive revenue growth of 255.9% year over year, the losses seemed insurmountable, with a staggering 5.3% increase
to Rs 1,347 crore in FY23 alone. Even after accounting for ESOP expenses, the haemorrhage of funds persisted,
predominantly due to exorbitant customer acquisition costs. The team exchanged glances, each member pondering the
same question that hung heavy in the room – how was it that CRED continued to secure substantial funding despite
bleeding money at an alarming rate? And, more importantly, what elusive strategy lay behind Kunal Shah's
enigmatic leadership?

ABOUT THE COMPANY

CRED, the Indian fintech startup that has gained significant attention. CRED’s approach is unique, and it has successfully
carved a niche in the market. CRED is a Bengaluru-based fintech platform founded in April 2018 by Kunal Shah, the

9
former founder of mobile wallet company Free charge. CRED offers a range of services related to credit card payments,
rewards, and management. CRED provides a user-friendly app where users can handle and pay off all their credit card
dues in one place.

Key features and aspects of CRED include:

1. Credit Card Payments: CRED allows users to pay their credit card bills through the platform, offering a
streamlined and convenient process.
2. Credit Score Monitoring: The platform provides users with insights into their credit scores and offers tips to
improve credit health.
3. Rewards Program: CRED incentivizes users to pay their credit card bills on time by offering CRED Coins and
other rewards. These rewards can be redeemed for various offers, discounts, and products from partner brands.
4. Exclusive Offers: CRED often partners with premium brands to provide exclusive deals and discounts to its users.
These can range from shopping and travel benefits to lifestyle perks.
5. Membership Tiers: CRED operates on a membership-based model, with different tiers offering varying levels of
benefits and privileges. Members can progress to higher tiers by consistently paying their credit card bills on time.
6. Security Measures: CRED emphasizes security, employing encryption and other measures to protect users'
financial data.

BUSINESS MODEL:

Reward-Based Credit Card Payments App: CRED operates as a reward-based credit card payments app. Users can
manage and pay their credit card bills through the platform.
Additional Services: Beyond credit card payments, CRED offers services such as house rent payments and short-term
credit lines.
Trust Tech Approach: Kunal Shah describes CRED as a Trust Tech company, emphasizing the importance of trust in
economic prosperity.

REVENUE GENERATION STRATEGIES:

Transaction Fees: CRED charges fees for facilitating credit card payments.
Affiliate Commissions: Users earn rewards for timely payments, and CRED earns commissions from partner businesses.
Advertising: The platform features targeted advertisements.
Referral Fees: CRED earns fees when users take loans through the app in collaboration with other credit institutions.

FINANCIAL RESULTS:
Revenue (FY23): ₹1,400 crore (approximately US$180 million).
Net Income (FY23): ₹ −1,347 crore (approximately US$−170 million).
Employee Count: Around 800.

FUNDING AND VALUATION:

CRED has secured funding from investors such as DST Global, Sequoia Capital (India), and Tiger Global. In June 2022,
CRED raised $80 million in a Series F funding round, valuing the company at approximately $6.4 billion. Notably, CRED
became the official sponsor for the Indian Premier League (IPL) from 2020 to 2023.

MARKETING AND BRANDING:

CRED’s advertising content, featuring Indian celebrities, generated significant discourse on news and social media.
The company’s unique marketing approach garnered both criticism and praise.

10
INDUSTRY BACKGROUND:
Credit card payments operated under a conventional manner prior to the introduction of CRED. Although credit cards
made it easy for consumers to obtain credit, paying off credit card debt was frequently difficult. Complex behind-the-
scenes activities, such as debits and credits between different financial institutions, were engaged in the payment
lifecycle1. Due dates had to be remembered by users, as missing payments could lower credit ratings. But there wasn't a
particular platform that made the process easier or offered incentives for on-time payments. The overall amount reported
to credit bureaus and the time of payments have a significant impact on credit use, which in turn affects credit scores. In
conclusion, credit card payments worked, but they lacked the customized rewards and easy-to-use interface that CRED
eventually provided. CRED has identified these white spaces in the credit card industry and launched its business model.

CRED’s growth strategies using the Ansoff Matrix

1. Market Penetration: CRED aims to increase sales of its existing services (credit card payments, house rent
payments, and short-term credit lines) within its current market (Indian consumers).
▪ Enhanced Marketing Efforts: CRED can intensify marketing campaigns to attract more users within its
existing user base.
▪ Streamlined Distribution Processes: Improving the efficiency of credit card payment processes.
▪ Competitor Acquisition: Acquiring competitors in the same market to consolidate market share.

2. Market Development: CRED focuses on selling its existing services (credit card payments, etc.) into new markets
(geographical expansion or targeting different customer segments).
▪ Geographical Expansion: Entering new regions or countries.
▪ Targeting New Customer Segments: Tailoring services for specific demographics (e.g., students,
professionals).

3. Product Development: CRED introduces new services or enhancements to its existing offerings.
▪ New Features: Adding features like credit score tracking, financial planning tools, or personalized
recommendations.
▪ Expanding Service Portfolio: Introducing related financial services beyond credit cards (e.g., insurance,
investment products).

4. Diversification:CRED explores new markets with entirely new products or services.

▪ New Market Entry: Venturing into adjacent industries (e.g., personal loans, wealth management).
▪ Innovative Products: Developing novel financial products beyond the current scope.

If you understand what CRED is doing, you will more or less understand a large chunk of the Indian startup ecosystem
because most giant companies like Jio, Ola, and Pharm Easyoperate similarly. In the initial Phase, companies present
incentives to get customers to use their product and increase their user base. Moreover, this is what brings us to Phase 2.

Phase 2 is all about habituation. Companies seamlessly get the users habituated to the new normal wherein customers are
no longer used to adjusting to the 'hurdles of the system'. Phase 3 is what we call irreversibility. In the case of CRED,
users no longer have to remember to pay their credit card bills; they no longer have to remember when exactly their due
dates are or bother about late fees. So, if we see, once these companies came in, there has been an irreversible change in
our behaviour wherein the small acts of booking a cab or paying a credit card bill have changed to such a large extent that
we will never return to our past system. Now, CRED has yet to complete this Phase.

Exhibit 1:

11
Exhibit 2:

REFERENCES :
1) [Link]
marginal-rise-in-losses/articleshow/[Link]?from=mdr
2) Ansoff Matrix - Overview, Strategies and Practical Examples ([Link])
3) [Link]
splurge-despite-the-rise-of-upi-payments/articleshow/[Link]
4) [Link]
5) [Link]

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13