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Kaps Ice Cream: Should It Enter the Premium Segment?
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On November 1, 2015, the four founders of Kaps Foods India Private Limited (Kaps) invited external business consultants to a business strategy meeting. The ice cream industry was moving toward the premium segment of the market, and Kaps was eager to move out of its stagnant phase. However, two of the four founders were skeptical about the acceptance of the Kaps brand in the higher-end market. They believed that the market would always consider Kaps a local brand, which was not ideal for moving into the premium market. Also, taking on the bigger players at the higher end of the ice cream segment would be a daunting task for the company. The four partners had a number of issues and options to ponder and discuss with consultants. Becoming a pioneer in the ice cream industry in the central Indian state of Chhattisgarh was a proud achievement for the team, but what new marketing considerations would be involved in entering the premium market?