A leading brand’s strategy for tapping into a powerful new agribusiness growth engine.
The international agribusiness community is increasingly focused on emerging markets for future growth. A compelling case study is unfolding in India, where the ice cream brand Dairy Day is successfully tapping into a quiet but powerful transformation. As the article from Business World notes, the country’s Tier-2 and Tier-3 towns are driving a new wave of consumption, with premium indulgences like high-quality ice creams becoming an everyday craving for millions of consumers who were previously overlooked.
This shift is not just anecdotal; it is backed by significant data journalism. According to a new report by market researcher Numerator, for the first time ever, villages have outpaced cities in the consumption of affordable premium fast-moving consumer goods (FMCG). This segment’s volume share in villages rose from 45% in 2021 to 51%. This trend is a clear signal to producers and manufacturers that the future of dairy economics lies beyond traditional metropolitan centers and in these high-potential markets.
Dairy Day’s success hinges on a dual-pronged strategy that balances premium aspirations with deep cultural understanding. As explained by the brand’s Vice President of Marketing, Arvind Ramachandran, the company has introduced high-end offerings like the Hazelnut Triple Bar for aspirational consumers while also crafting hyper-local products. An example is the Paal Ice, a product inspired by 90s childhood memories and packaged almost entirely in the Tamil language, showcasing a powerful emotional connection to local identity.
To capitalize on this opportunity, the brand has invested heavily in distribution innovation. The article notes that Dairy Day has strengthened its physical footprint across Tier-2 and Tier-3 cities with a focus on going “deeper into catchment areas.” This investment in cold-chain logistics, rapid replenishment, and an experienced on-the-ground team is critical for a product like ice cream. The brand has also actively collaborated with Modern Trade and Quick Commerce partners to extend its reach into new territories.
In conclusion, Dairy Day’s journey provides a valuable blueprint for the global agribusiness community. The brand’s ability to recognize the potential of smaller towns, understand their unique blend of modern aspirations and local identity, and invest in a robust distribution network offers a powerful lesson in market penetration. This case study demonstrates that for producers and analysts, success in emerging markets requires a nuanced strategy that is both globally aware and locally relevant.
Source: Business World, “Premium on the Rise: How Dairy Day Is Tapping India’s Smaller Towns For Big Growth”
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