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Case Code: MKTG381
Case Length: 9 Pages 
Period: 2017   
Pub Date: 2018
Teaching Note: Available
Price:Rs.300
Organization : Gujarat Cooperative Milk Marketing Federation
Industry : Ice Cream Industry
Countries : India
Themes: Advertising & Communications Management
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Amul vs. Kwality Walls-Ice Cream Ad War

 
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EXCERPTS

AMUL’S CONTROVERSIAL AD – TELEVISION AND PRINT MEDIA

 

On March 4, 2017, Amul released a new TVC “Pure moments deserve pure milk ice cream. Not vegetable oil” that showed a young girl putting up a brave front at the dentist’s and being rewarded by her father for her bravery with an Amul ice cream. The ad then displayed two ice cream cups side by side. While the Amul-branded cup was shown being filled with milk, the other cup – with ‘frozen dessert contains vegetable oil ‘ written on it – was shown being filled with a dull white semi-solid mass.

 
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THE KEY ISSUE – DIFFERENCE BETWEEN ICE CREAM AND FROZEN DESSERT

In 2011, the Food Safety and Standards Authority of India (FSSAI) had specified that customers had to be informed whether the product they were consuming was ‘ice cream’ or ‘frozen dessert’. As per FSSAI, ‘ice cream’ contained milk solids and milk fats, whereas frozen dessert contained milk solids and vegetable oil..
 

HUL’S RESPONSE

Initially, HUL approached ASCI to restrain Amul from airing the controversial ads. HUL believed that Amul’s ads ‘disparaged’ and ‘belittled’ the entire frozen desserts category. HUL stated that it had taken up the responsibility of confronting Amul on its controversial ads, even though its brand Kwality Walls was not directly mentioned in the ads, as its brand was the market leader in frozen desserts and was directly hit by Amul’s ads..
 

THE COURT DRAMA – ARGUMENTS IN FAVOR AND AGAINST

Both Amul and HUL presented several arguments in the Bombay High Court. The petitioners pointed out that there was a deliberate misrepresentation of vegetable oil (Vanaspati Tel) as hydrogenated vegetable oils (Vanaspati) in Amul’s ads. They thought that the misrepresentation had been done to benefit Amul’s products. Speaking on the issue, Kiran Khalap, Co-Founder and Managing Director, Chlorophyll Brand and Communications Consultancy , said, “To me, it’s not ‘frozen desserts’ that spells the difference, but the negative associations with vanaspati oil. I would presume (the case) will help Amul positively.” .
 

REALITY – BRAND WARS

Professionals from the advertising and media sector were of the view that the main issue was not about what exactly was the difference between ice creams and frozen desserts, but about using the difference as a tool to attain market domination. Suranjan Das, Mumbai-based brand Evangelist and Marketing Consultant, said, “Seriously, this is a non-issue. .
 

EXHIBITS

Exhibit I: Difference between Ice Cream and Frozen Dessert