You are on page 1of 80


Ice creams are a genuine delicacy to one and all. It would indeed be difficult to trace a sole who actually doesnt like ice creams. Ice creams are an all time favourite for people of all ages .How often do we ever give it a thought as to know about ice creams. Ice creams is a dairy product comprising of 60% dairy ingredients like Creams !utter "ilk and other ingredients such as #ugar $ater Colours %lavours #tabili&er and emulsifiers. In case of %ro&en 'esserts the dairy fat is replaced by vegetable fat such as (alm oil Coconut oil. (revention of %ood )dulteration )ct re*uires a min. +0% fat and ,0% of other solid matter in ice creams .-he key non. fat solid matter being skimmed milk powder and sugar. Ice Creams have good demand all around the globe. It has been seen that /.#.) accounts for 00 litres per annum consumption per person while )ustralia ranks second with a +1 litres figure. India however shows a figure of only 0.+ litre. -here indeed lies great potential in the Indian market for ice creams. -he ice cream industry here shows a 2s. 0000 Crores total market of which branded ice creams own only 2s. ,00 Crores. -oday the country is practically flooded with a very wide range of ice cream brands. 3ach region has its own special brand to harp on. AMUL launched its ice creams early in 4anuary +556 in "umbai where it now has a share of ,6%. It continued to launch its ice creams in a phased manner across the length and breadth of the country. -he company

however decided to launch its ice creams in the capital only in )pril 0000. -he main markets in this region include 'elhi 7urgaon 7ha&iabad and %aridabad. #urveys reveal that eastern India indeed has great potential for growth with respect to the ice cream there no doubt that AMUL will successfully make its way through. #ince +5,6 AMUL has been a prestigious brand name in the country. It has also made its presence felt abroad. AMUL is a big brand name produced by 7C""% which is the countrys largest milk and milk products manufacturing co.operative. -he success of AMUL ice creams is certain for several reasons. -he AMUL brand e*uity is too large to be ignored. "oreover the company has a very large procurement base of raw materials and has a well.knit network of +10 milk co.operatives. AMUL ice creams claim to be complete milk ice creams. -he punch line. REAL MILK, REAL ICE CREAM alone suggests that these ice creams are real ice creams unlike frozen desserts which are selling in the disguise of ice creams. -he ma9or international players in the 'elhi market are !lue !unny !askin 2obbins and "ovenpick whereas the domestic players include "other 'airy %reakon :wality $alls ;irulas "c 'onalds and <adilal. )mong the domestic players :wality $alls is the only brand that can pose ma=imum competition to AMUL ice creams. However the company has accepted this competition in good spirit and has also made ade*uate moves in this regard. -he company has emerged with a new concept called the Humara Apna Deep Freezer Scheme. )ccording to this scheme the retailers are offered

deep free&ers at negotiable rates from companies like !luestar <oltas and Carrier. AMUL ice creams also hope to position themselves in the minds of customers as being REAL VALUE FOR MONEY ice creams. -he company aims to convert ice cream into a mass product. It wants consumers to feel and know that ice creams are not a lu=ury product but a easy to buy product. AMUL ice creams have introduced a new wave of flavours in its range. -hey have special varieties of ice creams for the very figure conscious youngsters and also a special range of ice creams for those with eyesight problems. -he company officials say that in 9ust two years time AMUL will be the leader in the ice cream market in our country. Hope the spirit lives on.

-he pro9ect assigned to us was EX A!SI"! "F RE#AIL !E#$"RK F"R AM%L ICE CREAMS I! &%R&A"! MARKE#' . -his re*uired around >0% fieldwork and only ?0% desk research. 'uring the si=.week period of our summer training we were re*uired to traverse the length and breath of certain ma9or markets and shopping areas in 7urgaon. <isiting every *ualifying outlet give us e=posure to a very true life on. the @9ob training in identifying potential prospects for retailing )mul ice creams knowing retailers and consumer problem answering their varied *ueries suggesting viable alternatives to them @ all this indeed has given us reasonably good knowledge and of course a practical e=posure in the business of ice creams. -he main ob9ective of the summer training was to understand and identify the potential for )mul ice creams in the 7urgaon market and at the same time studying consumer perceptions and preferences for different brands and flavours of ice creams. In the course of all this we were also re*uired to find viable retail outlets that could successfully stock )mul ice creams. -he summer training was a real hard core learning e=perience for us .

-he pro9ect assigned to us was EX A!SI"! "F RE#AIL !E#$"RK F"R AM%L ICE CREAMS I! &%R&A"%! MARKE#'. %or the successful completion of the pro9ect we were re*uire to understand and study Ice Creams as a product and at the same time lay greater emphasis on the launching of AMUL ice creams in 'elhi and 7urgaon $e were assigned the whole of 7urgaon for the purpose of our pro9ect 7C""%.AMUL ice creams assigned us to the ;ational 'airy Ice Cream A)mul ice cream distributorB 7urgaon . $e visited all ma9or markets and shopping areas inCCCCCCCCCC 7urgaon and went to all those outlets which prospectively seemed to *ualify as a good )mul ice cream outlet. $e e=plained the concept of )mul ice creams being REAL MILK, REAL ICE CREAM' and the DHADF (H mara A!"a Dee! Free#er$ #cheme to the retailers thereby making them aware about the good new business proposal that encouraged them to be associated with AMUL @ a ()* (ran+ name ,)nce-./0. -o understand the market situation in 7urgaon and 'elhi we read through numerous news articles 9ournals company reports and also surfed the Internet @ which gave us a good insight into )"/E ice creams and its e=isting market scenario. $e also conducted two surveys simultaneously @ one for the retailers and other for the customers. a separate *uestionnaire was prepared for the two survey groups. ) sample si&e of 10 was taken into consideration. -his

helped us gauge the potential for )"/E ice creams especially in 7urgaon and also revealed interesting viewpoints with regard to various ice cream brand preferences flavour preferences retailer re*uirements. )fter having worked in the market @ talking to retailers and consumers we were able to see through the ice cream market in its true colours. ) complete field work over a period of 6 weeks gave us a good e=posure to the actual conditions prevailing in the ice cream market. )t the same time it has also given us the genuine capacity to analy&e )"/E ice creams present shape and future potential. -he summer training was indeed a very good on. the.9ob learning e=perience for us.

-his summer pro9ect has given us ample e=posure to real market situations and at the same time it also gave us the scope to interact directly with the consumers and the retailers. However in the course of our pro9ect we faced certain difficulties which prevented us from performing as we wished to. -he chief reasons that we could call limitations in our pro9ect can be enumerated as belowF 2etailers sometimes refused to answer our *ueries due to non. availability of time. -he customer survey could not be conducted over more than 10 due to customers not being eager to answer *ueries. It was difficult to set up deep free&ers on 7urgaon due to non. availability of electricity in this area. 7urgaon market is not very developed and hence demand for ice creams is not very large as compared 'elhi. It was difficult to get appointments from personnels from other ice cream companies. 'istributors were also reluctant to spare time.

However in spite of these difficulties we have tried our best to bring out the truest market scenario.


-he mouth meltingG #melteringG #candali&ing sensation of having an Ice Cream undoubtedly accentuates the essence of every soul .Ice creams are an all time favourite for people of all ages .How often do we ever give it a thought as to know about ice creams . Ice creams is a dairy product comprising of 60% dairy ingredients like Creams !utter "ilk and other ingredients such as #ugar $ater

Colours %lavours #tabili&er and emulsifiers. In case of %ro&en 'esserts the dairy fat is replaced by vegetable fat such as (alm oil Coconut oil . (revention of food adulteration )ct re*uires a min. +0% fat and ,0% of other solid matter in ice creams . the key non fat solid matter being skimmed milk powder and sugar Ice cream has to be stocked at @06C .temperature re*uired to store ice cream is significantly lower than that re*uired for the storage of butter and milk. )ll li*uid ingredients such as milk cream concentrated milk li*uid

sugar syrup and water are mi=ed with dry solid such as nonfat dry milk sugar stabili&er and emulsifier and blended. -he blended li*uid is than pasteuri&ed in order to destroy all microorganisms and improve the storage property of the ice creams. -he pasteuri&ed mi=ed is pumped through a homogeni&ed under pressure to produce a smooth uniform product. -he is immediately cooled at @, degree Celsius and then aged to improve the body an d te=ture of the finished ice cream.. soluble flavoring are added to the mi= and then the ice cream is fro&en in batch or continuous free&ers. 'uring free&ing air is incorporated intoi the mi= resulting in the increased volume . the soft fro&en product is drawn from the free&er at @6 degree

Celsius and packed at this temperature after which it is stored at a temperature of @05 degree Celsius till it is marketed. %ro&en 'esserts have a lower dairy fat content of ,% compared to ice

cream which the bureau of industrial standard defines as containing not less than +0% fat . typical components by weight of an average. +0% fat ++% nonfat solid +6% sugar and

consumption ice cream are

0.?% vegetable gum stabili&er . 'EY (UOTIENT% OF ICE CREAM MANUFACTURE #election of ingredients "i= preparation Homogeni&ing and pasteuri&ing %lavours and colours Cooling %ree&ing and incorporation of air (acking. packaging. hardening. storage A00 degree Celsius B

-o ensure H/)EI-I product temperature should never rises above @ +1 degree . this can de achieved by having air temperatures in cold rooms ,. 6 degrees and in vehicles > degree colder than @+1 because of air fluctuations during door opening and closing and defrost cycles.


7C""% is Indias largest milk and milk producing organi&ation. (reviously it was known as ;ational 'airy 'evelopment !oard but latter its name evolved to be 7C""%. It is a state level ape= body of milk co.operatives in 7u9arat which aims to provide remunerative returns to the farmers and also serves the interest of the consumers by providing *uality products at reasonable prices. Mem*ers +0 district co.operative milk

producers union N+. +, !r+- cer mem*ers N+. +, ./00a1e s+c/e2/es T+2a0 m/03 4a"-0/"1 ca!ac/25 M/03 c+00ec2/+" (6777)88$ 0.+0 million +0,++ 6.+ million litres per day +.65 billion litres

M/03 c+00ec2/+" (-a/05 a.1. 6777) ,.,> million litres 88$ M/03 -r5/"1 ca!ac/25 ,60 metric tones per day

7C""% better known through its AMUL brand has been the latest entrant in the national ice cream market. it has launched milk based ice cream under its flagship brand 9AMUL in 4anuary +556. 7C""% has a distinct edge over e=isting competitors and e=pected new entrants on several counts.

)dvantage in procurement of milk the key raw material in ice cream milk supply in India is largely controlled by the regional milk co.operatives. 7C""% itself is the leading supplier of milk in the western region. !esides procurements from other regional co.operatives is also easier for 7C""% as compare to other top players Infact 7C""% has a tie.up with the

'ar"a2a3a M/03 Mar3e2/"1 Fe-era2/+": which manufacture ice cream on behalf of 7C""% which is marketed under the AMUL brand name . 7C""% can procure milk at lower prices than its competitors. AMUL has been launched at a substantial price discount to main competitors :wality $alls and <adilal. -his has helped in attaining a good volume growth within a very short span of time. -he AMUL brand has a strong e*uity in milk products and 7C""% has managed to leverage on this brand e*uity and attained a ,+.+% share in the "umbai market till date. 7C""% already has a wide retail distribution network which markets its other milk products such as Cheese and !utter. (resently AMUL ice creams have a ?6% market share and also have a high brand recall. -he company has a total of seven ice cream manufacturing unitsF three in 7u9arat one in (atna one in !angalore one in 'elhi and one in -arapur. 7C""%s main ice cream manufacturing facility located at 7andhinagar which is )sias largest and has the best ice cream manufacturing plant and uses the worlds most renowned refrigeration units and efficient cold chain . -he company has gone national during 000+ with setting up of proper infrastructure facility for cold storage in eastern markets. It has also tied.up with various dairy co.operatives like "other 'airy A'elhiB for the northern

market "other 'airy A!angaloreB for the southern market and the (atna 'airy (ro9ect for increasing its reach.

GCMMF1 Re2)e3 "4 "pera5)on,

MILK R"C%REME!# -his year 7C""%s "ember /nions increased their milk procurement by >.5% achieving an average of ,,.61 lac kilograms per day as compared to ,+.,0 lac kilograms per day in +551.55. (eak procurement during +555.00 touched a high of 6>.+? lac kilograms in a day. SALES1 'uring the year the %ederations sales remained steady at 2s. 00+1.60 crore including consignment sales of 2s. ?+6.1? crore. In addition the %ederation co.coordinated 2s. 01.1 crore in product sales to the 'efence services. 'airy products turnover registered a growth of 6.+% over the previous year. -his year AMUL !/--32 registered record sales with 2upee turnover growing by +0.?%. the sales value of )mulya has registered impressive growth with an increase of +,.6%.#ale of AMUL "ilk in 7u9arat has increased in a spectacular 00.1 % in value terms. Jver the past year AMUL Cheese sales value has increased by +0.6%. ) substantial increase in sales value of AMUL "ithai "ate by ??.6% stands testimony to our commitment to *uality. 7C""% is also Indias largest e=porter of dairy products. Its ma9or e=port list includesF

C"!S%MER ACKS 1 Am 0 (ure 7hee Am 0 !utter Am 0 #hrikhand Am 0 %ull Cream "ilk (owder Am 0 "ithaee 7ulab9amun Am 0 #kimmed "ilk (owder Am 0 #pray Infant "ilk %ood Am 0 Cheese ;utramul !rown !everage 6%LK ACKS1 Am 0 #kimmed "ilk (ower Am 0 %ull Cream "ilk (owder Am 0 Industrial Casein -he 7C""% has been a name of trust in the past and will continue to hold on to its grandeur even in the future. GUJARAT CO)O&ERATIVE% MIL' MAR'ETING FEDERATION LTD. )mul dairy 2oad ( !o= ;o. +0

)nand ?1100+ India (hone F. K 5+.0650.61606 6160> 61601L5 %a= F. K5+.0650.,0001 -ele=F. 0+>0 L 000 7ramsF. "ilk %ed 3.mailF.

GCMMF : MISSION STATEMENT $e at 7C""% endeavor to satisfy the taste and nutritional re*uirements of the customers of the world through e=cellence in marketing by our committed team. -hrough co.operative networking we are committed to offering *uality products that provide best value for money.

ICE CREAM MARKE# I! I!DIA -he total market in the ice cream industry is 2s 0000 cr. of which the branded ice cream market holds a scoop of 2s ,00 cr. -he ice cream market in India is currently estimated to be liter valued at 2s ,6 cr A"2( 2s 5 bnB. -he market growth during the late 10s and in the early 50s was very low at around 0.? % p.a. since the last 0 yearsM the market has been witnessing a much faster growth at around +0.+0% p.a. -he growth rate could have been higher but for poor infrastructure high e=cise duty L sales ta= etc. 3=cise on ice cream was increased from +? to +6 % in the +555.0000 budget. In the beginning HEE entered the market through fro&en dessert route. %ro&en desserts were technically not reserved for the small scale. -here are a number of brand of ice creams available in the country. 3ven region has its own special brand of ice creams. -here lies immense opportunity in the 3ast removal of licensing

restrictions and investment by new players in capacity and market e=pansion is e=pected to lead to rapid demand growth in the sector. ) +0. 00% p.a. volume growth can be sustained for a very long period due to the fact that the current base of consumption is very small . -he consumption of ice cream $estern India accounts for ,0% of the ice cream consumption ;orthern India accounts for ?0% of the ice cream consumption #outhern India accounts for 00% of the ice cream consumption 3astern India accounts for +0% of the ice cream consumption It is evident that there lies a great potential for ice creams in 3astern India

237IJ;)E CJ;#/"(-IJ; J% IC3 C23)"# I; I;'I) 3)#+0% #J/-H 00% ;J2-H ?0% $3#,0% $3#;J2-H #J/-H 3)#-


7ADILAL 2adilal the name con9ures up images of ice cream laden bowls and a plethora of new flavours. #tarting from one man show with a hand cranked machine in +506 as a small retail outlet the ice cream division now has a production capacity of + lac ltrsLday at ? sophisticated plants located at )hmedabad (undhra and !areilly. -hese I#J 5000 certified plants for (undhra and !areilly are established in such a way that they are in consonance with the market e=pansion strategies of the division. <adilal has one of the largest cold chain networks in India comprising of +0 CN% agents 060 distributors and +6 000 retailers. -he network is kept alive by a large fleet of refrigerated vehicles. 2efrigeration e*uipments and retail free&ers are sourced from world leaders in the technology so as to deliver *uality products to the consumers which is a commitment at <adilal. <adilal has 06% of the Indian ice cream market as its share. !ut thatOs no surprise considering that the group has the largest range of ice creams in the country in a variety of flavours packs and forms. -he group has a product matri= of over 000 #:/s comprising of cones cups candies family and party bricks and bulk packs. <adilal introduced the concept of Pflavour of the monthP under which the company develops and markets one new flavour every month for its customers delight. 6ASKI! R"66I!S I!#ER!A#I"!AL !askin 2obbins International the +00% subsidiary of global player allied domec* set up shop in +556 in a 9oint venture with the 2avi 7hai group the

name of "aharashtra 'airy products manufacturing. !askin 2obbins ice creams were initially launched at a substantial price premium and were able to create a critical mass in their price premium and were unable to create a critical mass in the price sensitive Indian market. -he company has since reduced its price to 2s 06 from 2s ?0 plus and this has had a positive impact on the companys volumes in the current year. -he company currently imports essence and flavours but has been facing problems in terms of import of certain types of coffee beans and animal fat contained in certain ingredients which do not suit the India palate. Hence the company has now decided to achieve a >0% indigeni&ation level. It has been proposing to procure flavours from !/#H )EE3; !J):3 I;'I). 6L%E 6%!!8 !lue !unny founded in +5+? is a brand of $3EE# ')I2I I;C and is one of the few remaining family owned and managed dairy processors in the /.#. -oday more than 600 !lue !unny @ branded products including ice cream and fro&en novelties can be found across the /nited #tates in "e=ico and (uerto 2ico. !lue !unny is made in E3 ")2# IJ$JF the ice cream capital of the world. -oday !lue !unny is one of the ma9or international players in the Indian ice cream market. It has several branded ice cream parlours to its banner. However many ma9or retail outlets also keep this brand. In 'elhi !lue !unny shares a ma9or slice of the ice cream scoop. M"#HER DAIR8 "other 'airy is the most prevalent brand in 'elhi market. "other 'airy has uncountable number of booths situated in every nook and corner in 'elhi and 7urgaon. It has also taped all ma9or retail outlets in these markets and

has not even spared the option for pushcarts. "other 'airy has positioned itself as the ultimate name in milk products. -he company has a very well established distribution system offers deep free&ers to retailers on low security basis and at the same time offers good replacement policies. "other 'airy is a sister concern of Am 0 ; both being 7C""% daughters. However Am 0 will find it difficult to erase or even take a share of mother 'airys sale. FREAK"! %reakon is a local brand which has recently been launched in 'elhi and 7urgaon. !ut it has some how tiptoed into the market and is found in *uite a number of retail outlets. -he only attraction that %reakon offers to its retailers is that of a very high dealer margin and +00% replacement policy. !IR%LAS ;irulas are a big group concentrating on the 'elhi @ centric mom. and @ pop restaurant chain. It is a 2s +10 cr company with its outstanding ice cream parlours in 'elhi and neighbouring areas. -hey have established themselves very strongly in this region. -he ;irula fans are e=clusively brand loyal and deny to even try other brands. -he reason why the brand has gain such loyalty is this that it provides its customers with the best and apt ambience for en9oying a delicacy @ an ice cream. ;irulas offer varied varieties of non.conventional ice cream preparations. ;irulas have made themselves an established brand in the high society. -he company is looking at ,0 outlets by 000? up from 0> now. ;irulas continues to maintain its focus on 4am)l9 being its /#(.

MC D"!ALDS "c 'onalds has come up with a new concept of multinational chain of restaurants. In 'elhi it has a number of outlets in practically all.possible venues. -hey have a good range of ice creams softies and #undaes. "c 'onalds has made such an indelible impact in the mind of customers that "c 'onalds fans will probably shift to any ice cream brand. M"7E! ICK -his is another international player in the Indian ice cream market. "ovenpick is another largely acceptable brand of imported ice creams originating in #wit&erland. It is found in markets where people belonging to the high.income group pay regular visits. -his brand of ice cream is not available in too many outlets. Jnly big and strategic outlets cream. keep this ice

AMUL means QAM%L8A' in #anskrit which means pr)cele,,. AMUL products have been in use in millions of homes in since +5,6. )mul !utter )mul "ilk (owder )mul 7hee )mul #pray )mul Cheese )mul Chocolates )mul #hrikhand ;utramul )mul "ilk )mul ice cream and )mulya have made AMUL a leading food brand in India with a turnover of 0+.? billion in +555.00 . -oday AMUL is a symbol of many things. of high quality products sold at reasonable prices. Jf the genesis of a vast co-operative network. Jf the triumph of indigenous technology. Jf the marketing savvy of a farmers organization and also of a proven model of 'airy 'evelopment. )mul !utter )mul Eite )mul (ure 7hee

)mul Instant %ull Cream (owder

)mul #hrikhand

)mul %ull Cream "ilk (owder )mul "ithaee 7ulab9amun )mul #kimmed "ilk (owder )mul #pray Infant "ilk %ood

)mul Cheese ;utramul !rown !everage )mul Eong life "ilk )mul (asteuri&ed (rocessed Cheddar Cheese )mul %lavoured Cheese Cubes )mul Cheese (owder )mul Cheese #pread )mul 3mmental Cheese )mul "o&arella )mul (aneer )mul !randed #ugars 'hara 3dible Jils )mul "ithai "ate )mul Ice Creams )mulya 'airy $hitener


Ice creams are a specialty product in our country. -he general perception for ice creams over a large segment of the population is this that ice creams are a delicacy. Ice cream consumption is still perceived to be a lu=ury in this country. 3ven in the most affluent cities ice cream eating at home is confined to a few occasions and is therefore restricted to the three regular flavours. <);IEE) CHJCJE)-3 );' !/--32#CJ-CH .the 7C""% or AMUL launched its ice creams in the "umbai market in +556 where it has made successful business. )ccording to J27."arg data AMUL% market share in "umbai went up from ??% in Jctober 000+ to ,+.+% in "arch 0000. In :olkata AMUL ice creams have 060 non.e=clusive retail outlets. -he company was optimistic about raising the number to +600 by "arch 0000 and has successfully achieved its target. Initially AMUL ice creams were launched in 'urgapur )sansol and 2anigan9. -hey have now launched their ice creams in kolkata and "idnapur the two centers with the highest potential for the sale of ice creams in $est !engal. AMUL ice creams here will be pitted against several established players like :wality $alls <adilal and 2ollick. AMUL so far have made ma=imum sales in "umbai )hmedabad and "aharastra . also included in the list are Chandigarh and !ihar . -he 7C""% has its > ice cream manufacturing and processing units in 7u9arat A ?B 'elhi A+B -arapur A+B (atna A+B and !anglore A+B. -he 7C""% finally decided to launch its ice cream in 'elhi and Haryana this summer . -he pro9ect was formally envisaged in )pril this year setting

the stage for a three @ cornered tussle with :wality $alls and "other 'airy for the countrys largest market for ice creams. -he 'elhi and Haryana market is currently dominated by Hindustan Eever Eimiteds AHEEB :wality $alls and "other 'airy which is a brand of AMUL% sister co.operative concern ;ational 'airy 'evelopment !oard. !oth :wality $alls and "other 'airy now sell 6.6 @ > million liters of ice cream each in 'elhi and Haryana. It is however to worthy to be noted that the company hopes to capture 06% of the market in 0 years time and all this at the e=pense of not "other 'airy but :wality $alls. :wality $alls has already established itself magnanimously in the ice cream market so its sales have not been influenced noticeably in spite if it being costly. Considerably AMUL followed a different strategy in this regard. -hey adopted the pene5ra5)on pol)c9' of pricing their range of ice creams. AMUL ice creams are considered a Q REAL VALUE FOR

MONEY product. AMUL has its ice creams priced at 2s 66 for a +060 ml <anilla brick which is what :wality $alls and "other 'airy are charging for a similar pack of >60 ml and +000 ml respectively. #imilarly it is selling a +00 ml <anilla cup for 2s +0 which is the same as "other 'airyM the :wality $alls is charging the same for 10 ml cup. -he Company wants to ensure that their prices are more or less the same as that of "other 'airy but much lower than that of :wality $alls so as to increase the market share of the cooperative sector in the 'elhi market. 'elhi is the market that is e=panding by 00% each year. Jn the other hand "other 'airys plant here has capacity constraints to cater to this e=panding market. Infact AMUL till recently was using "other 'airys facility to manufacture its ice cream for the neighbouring markets such as

%aridabad 7urgaon and 7ha&iabad. %rom now AMUL will source its entire ice cream re*uirement Aincluding for 'elhiB from its own 7andhinagar plant. AMUL claims to have already deployed +000 @ odd deep free&ers in the last +6 days in 'elhi under its H%MARA A !A DEE FREE:ER'

;HADF< scheme. /nder this scheme retailers are encouraged to buy their own deep free&ers for vending ice creams with AMUL negotiating a discounted price on their behalf with refrigerator companies like <oltas !luestar and Carrier. -his is as against the practice of other ice cream companies providing the deep free&er at the retailers end sub9ect to the latter depositing a refundable security amount. In the H)'% scheme the retailer not only saves on the security deposit but also en9oys the fle=ibility arising from owning the asset and direct 6.year guarantee from the manufacturer. )lso a negotiated discounted price entails cost savings of 2s 6000 @ 1000 per deep free&ers depending upon capacity and make. $hile 7C""% with its advantage in milk procurement and competitive pricing is strengthening its position in the market by tying up with co. operatives by e=panding its network HEE has advantage of vast portfolio of brands from its parents. AMUL has gone national with setting up of proper cold storage facilities and transportation facilities in the eastern region of the country. AMUL is already perceived as being superior on creaminess taste and price .it is also considered to be a family brand offering a better price. 3=actly 6 years after its launch AMUL claims to be the largest selling brand in the country. It sells across the length and breath of the country in

more than 060 cities and towns and owns a ,6% share in the markets where it is present AMUL has been trying to turn ice creams into a mass consumption product rather than confining it to the lu=ury segment unlike some of its

international competitors such as "ovenpick !askin 2obins and !lue !unny. AMUL claims that it also scores on *uality. -he punch line R !" #$"%& R !" $' 'R !# clearly e=plains this statement. )"/E is now

eyeing the fast emerging health segment with a Qfat free ice cream Q branded #EI" #CJJ( which is currently being test marketed in "umbai in two flavours @<anilla and "ango which are to be followed by (ineapple and !anana. )"/E has come out with a whole range of outrageously e=otic new varieties of ice creams each offering not only a D product e=perience but also a true sensuous e=perience. -he market has yet great scope for growth and e=pansion. ())* "+'% ,) )"/EGGGGG..



C"M "SI#I"!1

M/03 Fa2

6<.=> 2+ 6?.=>

T+2a0 %+0/-s ?8> 2+ ?6> % 1ar Ac/-/25 &r+2e/"

F""D E!ER&8 7AL%E1 FLA7"%RS1

6=> a!!r+@. 8.6A> 2+ 8.67> <.7> 2+ ?.6>

Ca0+r/es !er 688 m0) 67B.A 3ca0 Va"/00a Ora"1e C4+c+0a2e 'esar %2raC*err5 R+se L/2c4/ &/s2a &/"ea!!0e Ma"1+ H+"e5)DeC)Me0+" T 22/ Fr /22/ B 22er %c+2c4

RaD*+14 'aD Dra3s4 C4+c+c4/!s Cas4eC Brea3 ACKA&I!&1 =88 m0 C ! =88 m0 &ac3 C4+c+*ar C+"es

688 m0 C ! 6 0/2re &ac3 Ice Ca"-/es ' 0,/es

2eal "ilk 2eal Ice Cream +00% <egetarian Ice Cream 2eal <alue %or "oney MOVEN&IC'

M+24er Da/r5


%. N. + 0 ? NAME OF &RODUCT Cassata <anilla #traw !erry CU&% , 6 6 > 1 5 +0 ++ +0 +? +, +6 +6 +> +1 +5 <anilla #traw !erry !utter scot :eshar (ista :a9u :ishmis Chocolate Choco Chips "ango Eitchi !lack Current -utti %rutti )n9ir 2oasted )lmond 2a9bhog %resh #traw !erry (ineapple +00 ml +00 ml +00 ml +00 ml +00 ml +00 ml +00 ml +00 ml +00 ml +00 ml +00 ml +00 ml +00 ml +00 ml +00 ml +00 ml +0.00 +0.00 +?.00 +6.00 +?.00 +0.00 +,.00 +0.00 +,.00 +6.00 +0.00 +6.00 +6.00 +6.00 +,.00 +0.00 &AC'ING +60 gms 60 ml 60 ml MR& (R%$ 00.00 6.00 6.00

FAMILY &AC'% 00 0+ 00 0? 0, 06 06 0> 01 05 ?0 <anilla #traw !erry !utter scot :eshar (ista :a9u :ishmis Chocolate Choco Chips "ango Eitchi -utti %rutti (ineapple 600 ml 600 ml 600 ml 600 ml 600 ml 600 ml 600 ml 600 ml 600 ml 600 ml 600 ml ?6.00 ?6.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 ?6.00

&ARTY &AC'% ?+ <anilla + liter K 060ml free ?0 #traw !erry + liter K 060ml free ?? "ango + liter K 060ml free ?, Chocolate + liter K 060ml free ?6 ?6 ?> ?1 ?5 ,0 ,+ ,0 :a9u 'raksh !utter #cotch Eitchi Choco Chips :esar (ista -utti %ruity !lack Current pineapple + liter + liter + liter + liter + liter + liter + liter + liter +00.00 +00.00 ++0.00 ++0.00 ++0.00 +00.00 50.00 16.00 +00.00 +00.00 66.00 66.00

BUL' &AC'% ,? ,, ,6 ,6 ,> ,1 ,5 60 6+ 60 6? 6, 66 <anilla #trawberry #outhern 'elight :a9u 'raksh )n9ir 2oasted )lmond !utter #cotch Chocolate :esar (ista Choco Chips !lack Current "ango cappcunio %TIC'% 66 6> 61 65 Chocobar %rostick "ango 'olly 2.!.'olli 60"E 10 "E 60 "E 60 "E +0.00 +6.00 +0.00 +0.00 , liter K + liter free , liter K + liter free , liter K + liter free , liter K + liter free , liter K + liter free , liter K + liter free , liter K + liter free , liter K + liter free , liter K + liter free , liter , liter , liter , literK + liter free 0?0.00 0?0.00 ?,0.00 060.00 ,00.00 ,00.00 ?60.00 ?60.00 ,00.00 ,00.00 ,00.00 ?60.00 ,00.00

'ULFI 60 6+ 60 6? "awa "alai :ulfi 7reen (ista :ulfi #ahai !adam :ulfi #ahai (ista :ulfi CONE% 6, 66 66 Chocolate Cone !utter #cotch Cone !utter #cotch Cone 4r. +00 ml +00 ml 60 ml +6.00 +6.00 >.00 60 "E 60 "E 60 "E 60 "E +0.00 +0.00 +0.00 +0.00

FUNDOO 6> 61 65 >0 <anilla #traw !erry "ango #undea CANDY >+ >0 Jrange "ango 60 ml 60ml ,.00 ,.00 +00 ml +00 ml +06 ml +06 ml +0.00 +0.00 +,.00 +6.00


-he company has emerged with a new concept called the -+#!R! !./! * . 0R 1 R 2-!*03 4'- # /nder this scheme retailers are

encouraged to buy their own deep free&ers for vending ice creams with AMUL negotiating a discounted price on their behalf with refrigerator companies like <oltas !luestar and Carrier. -his is as against the practice of other ice cream companies providing the deep free&er at the retailers end sub9ect to the latter depositing a refundable security amount. In the H)'% scheme the retailer not only saves on the security deposit but also en9oys the fle=ibility arising from owning the asset and availing a direct 6.year guarantee from the manufacturer. )lso a negotiated discounted price entails cost savings of 2s 6000 @ 1000 per deep free&ers depending upon capacity and make. /nder this scheme retailers are encouraged to buy their own deep free&ers for vending ice creams with AMUL negotiating a discounted price on their behalf with refrigerator companies like <oltas !luestar and Carrier. -his is as against the practice of other ice cream companies providing the deep free&er at the retailers end sub9ect to the latter depositing a refundable security amount. In the H)'% scheme the retailer not only saves on the security deposit but also en9oys the fle=ibility arising from owning the asset and availing a direct 6.year guarantee from the manufacturer. )lso a negotiated discounted price entails cost savings of 2s 6000 @ 1000 per deep free&ers depending upon capacity and make.

SECRE# "F #HE HADF SCHEME F"R #HE RE#AILERS /nder the low security basis scheme the retailers are indeed provided with deep free&ers on very low security deposit basis but at the same time they are re*uire to pay depreciation charges to the company every year and over a period of 6 years they actually pay a much greater sum than the security deposits. )lternatively under the H)'% scheme the retailers are already owners of the deep free&ers and pay depreciation charges at the rate of ?0% Aappro=B every year. Hence in three years time the total cost of their free&er nearly recovered. In the 7urgaon market !E/3#-)2 is the supplier for deep free&ers. -he authori&ed dealer isF B4a.5a H+s!/2a0/2/es %er./ces C) ?68 B ( a$ : % s4a"2 L+3 &4ase) I G r1a+") 6GG88G &4+"e N+. B<7G6GH


/nder the HADF #cheme !lue #tar offers am imported 7ES#FR"S#

brand of deep free&ers which are manufactured in 'enmark and are open at the retailers outlets. !lue #tar deep free&ers have the ease of country. wide service facility. -he deep free&ers for storing ice creams come in two makes. HARDTO& and GLA%%TO& which maintain a temperature of @0? degrees centigrade inside the free&er. )lso these deep free&ers have a special feature of consuming only 0.? units of electricity per day which is very less as compared to other brands of deep free&ers. !lue #tar offers its deep free&er at special discounted prices to Am 0 retailers. )lso Am 0 retailers are given a special 6year warrantee which is 0 years if purchased from the market. )fter the e=piry of warrantee period the retailers may enter into an Annual Ma)n5enance Con5rac5 ;AMC< under which a payment of 2s 0600 annually assures repairs and maintenance for that particular year. -he negotiated scheme for B0 es2ar in collaboration with Am 0 is given below F 6L%ES#AR RA#ES ;MR < HARD#" M+-e0 N m*er (L2s$ )! +01 +06 H% 00+ +5, H% 0>+ 066 H% 056 016 H% 606 ,50 &r/ce (R s$ +?100 +1,00 00600 0?100 0>?00 %a0es Ta@ (6G>$ (Rs$ +666 0001 0,>0 0166 ?0>6 %2a*/0/#er (Rs$ ++60 ++60 ++60 +660 +660 MR& (Rs$

+6606 0+>61 0,000 01006 ?0+06

6L%E S#AR RA#ES ;MR < &LASS#" M+-e0 N m*er (L2s$ I:7 0>? 066 I:7 ,0? ?16 I:7 60? ,50 0>+00 ?+600 ?,000 &r/ce (Rs$ %a0es Ta@ (6G>$ (Rs$ ?060 ?>10 ,+0, %2a*/0/#er (Rs$ +660 +660 +660 MR& (Rs$ ?+500 ?61?0 ?516,

M+-e0 N m*er (L2s$ )! +01 +06 )! 00+ +5, H% 0>+ 066 H% ?56 ?16 H% 606 ,50

&r/ce (Rs$ ++000 +6000 +6600 +1?00 0+500

%a0es Ta@ %2a*/0/#er (6G>$ (Rs$ (Rs$ +?00 +100 +550 0+56 0601 106 106 106 +?60 +?60

MR& (Rs$ +?+,6 +>606 +5,+> 0+1,6 061>1


NEGOTIATED BLUE %TAR RATE% FOR AMUL GLA%%TO& M+-e0 N m*er (L2s$ I:7 0>? 066 &r/ce (Rs$ %a0es Ta@ (6G>$ (Rs$ 0601 %2a*/0/#er (Rs$ MR& (Rs$




I:7 ,0? ?16 I:7 60? ,50

0,>00 0>600

056, ??+0

+?60 +?60

050+, ?0060



$ell (e 5he marCe5 lea+er,' A RE&ORT ON THE INTERVIEE OF MR. V. MITTAL (MGR. %ALE%: GCMMF$
AMUL ice creams were formally introduced in "umbai in +556 where it conducted successful business. Jver the last 6 years how ever the company has launched its ice creams in a Dphased manner covering more than 060 cities already. -he company ha launched its ice creams in 'elhi 7ha&iabad %aridabad and 7urgaon this summer. It is worth mention the threat that the launch of AMUL ice creams has posed to :wality $alls. AMUL is playing its price card to the fullest and there is no doubt that in few years AMUL ice creams will have carved a niche for itself in the ice cream market. AMUL ice creams punch line ; REAL MILK, REAL ICE CREAM itself conveys that its ice creams are made of pure milk comprising of 60% dairy ingredients like cream butter water with sugar colours flavours

stabili&ers and emulsifiers where as )EE other ice creams sold in the market are actually D %2JR3; '3##32-# in which dairy fat is replaced by vegetable fat such as palm oil and coconut oil. #o it is evident that in reality AMUL ice cream has no competitor in the market but virtually :wality $alls is its ma9or competitor. AMUL wants to portray its ice creams as a pure milk family brand product rather than a lu=ury brand8 /nlike :wality $alls. -ill date it is "umbai which can be said to have accounted for the companys ma=imum sale figures. AMULs market share in "umbai went up from ??% in Jctober 000+ to ,+.+% in "arch 0000. In "umbai AMUL

ice cream already has a ,6 % share of the entire ice cream scoop. "aharashtra and )hmedabad follow "umbai in this regard. In a market situation where fro&en desserts are being disguised as ice creams . AMUL intends to wholly portraits itself as a 9Rea0 /ce cream )))REAL VALUE FOR MONEY. )ll its advertising and sales promotion efforts will thus be pro9ected on these lines -he company has emerged with a new conceptS HADF (H mara A!"a Dee! Free#er$ #cheme in this the retailers are encouraged to purchase deep free&ers with a guarantee of 6 years at negotiated prices from companies like <oltas Carrier and !lue star. -his scheme in the long run has several benefits which the retailer can avail of. AMUL ice cream hopes to be the leader in the ice cream market in the ne=t 0 years. -he company has a brilliant distribution network in 'elhi and the list of retailers is growing each day. AMUL undoubtedly has posed a

substantial threat to :wality $alls @ in the same period when AMUL ice creams sale in the "umbai market has grown from ??% in Jctober 000+ to ,+.+% in march 0000 :wality $alls dipped from ,0.6% to ?0.>% .,he

success of AM%L ice creams will come not at the cost of #other *airy but %wality 5alls . 7C""% is the countrys largest milk and milk producing co.operatives and AMUL is a H/73 brand name to it. )ll that these ice creams will do in the near future is @ simply encash on this brand name. However the company wishes to advertise AMUL ice creams on both the print and visual medias AMUL does not have any plans to apportion any fi=ed sum on advertising @ it will decide in this agenda as and when the need arises. It is not very easy to say which particular ice cream variety is making ma=imum sales

because D)ll have been selling very well till date. How ever it is the party packs and bulk packs that are making the biggest sale. -he company is happy about this because they want ice creams to be perceived as D take home product from now on. -he ice cream outlets are selected on the criteria that a particular selling point should have D ma6imum foot falls and should remain open till late in the evenings also these venues may include any non .conventional retail out let. -his means that the outlets are not restricted to departmental stores alone. -hey may include Cyber cafes #-' and (CJ booths 'habas Highway restaurants 7ift shops Card 7alleries and "usic stores. (romotional support to retailers include 7low #ignboards A6=? and ?=0B #ignages #hop painting !ig sun pack price lists small price lists (osters L stickers L t.shirts foam banners etc $ith all good hopes AMUL ice creams are all set to hit the DHJ- market setting it DCJE'.


'elhi has a population of over +0 million and is the countries largest market for ice creams. 'elhi currently account for +1% of the countries estimated 2s 606 cr organi&ed ice cream market of 10.1 million liters. It also boasts of a per capita annual ice cream consumption of +.,6 liters. -he 'elhi market is currently dominated by HEEs :wality $all and "other 'airy that is a branded ice cream of )muls sister co.op concern ;ational 'airy 'evelopment !oard. !oth :$ and "' now sell 606.> mill liters each of ice cream in 'elhi. 'elhi is market that is e=pending each year by 00%. 'elhi organi&ed ice cream market consist of :wality $alls "other 'airy !askin 2obbins fairy 'airy %rolic 'airy %un Cream :a <adilal %reakon !lue !unny and :wality $alls international. )mong them "other 'airy and :wality $alls are the ma9or players. 'elhis market "other 'airy has +6, retail outlets and :wality $alls have ,66 outlets. 'elhis summer month of may and 4une being the hottest months temperature can be as high as ,6 degree Celsius A++, degree %B. -he winters month Jctober end to %ebruary end are cold and dry. -he temperatures as low as , degree Celsius A ?5 degree %B . $ith the fluctuating temperatures the main demand is in the month of "ay and 4une. 2etailers and distributors clearly stated that the demand in the off. season could go down 06% of the peak season. -his forms a very critical point for newcomer. It has to enter 9ust before the peak season goes to tap the season crowd and demand and to keep reasonable resource to sail through off.season. %or e=ample :wality $alls gives off seasons discounts to customers and also gives special offers to

retailers to encourage them to stock its product. -hrough for the last two years :wality $alls has not given any special schemes to the distributors still they do e=pect them .so the new company also has to give these kinds of initiatives to encourage the distributors. G r1a+": G4a#/a*a- a"- Far/-a*a- are all the surrounding areas where Am 0 ice creams have been launched this summer. -he nature and characteristics of the markets here are a replica of that in 'elhi.





S"%#H CI#81= -his is a small market 9ust opposite #J/-H CI-I )2C)'3. -here are about eight feasible shops here. #hopkeepers are strictly reluctant to keep ice creams because there are long hours of power cuts .at present no shop sells ice creams here for the same reason here. However few are very interested to stop Am 0 ice creams but refuse because of the same problem. -his market should be left alone from some time now. It can however be tapped some tome latter when conditions improve. SEC#"R -/1= -he market in sector +, has about twelve of which four are ma9or stockists of :wality $alls "other 'airy !lue !unny and Am 0. "oreover there are a few retailers who are interested to take up Am 0 ice creams within another months time. -he demand for ice cream in this market is fairly large. SEC#"R -D1= -his is a small market and it has 9ust si= good shops that can stock ice creams of which five already keep ice creams. -wo of these shops sell Am 0 ice creams. )mong other ice cream varieties one will fine :wality $alls and "other 'airy stocked in bulk. Customers visiting these shops belong to the upper middle class of the society but the sale of ice creams is 9ust marginal.

SEC#"R BB, B@1= ) distance of appro=imately + kilometer separates both these markets. -here are about eight shops in total in the two markets that are likely to keep ice creams of which five shops already keep ice creams. In sector 00 )ahaar #weets is the largest seller of ice creams @ its business is big enough and this the ma9or reason why neighboring retailers are reluctant to keep ice creams. !oth the markets are not very big in si&e and neither do they cater to too many households. Customers here basically belong to upper middle class of the society. "other 'airy reigns supreme in both these markets. However :wality $alls and %reakon have also made their presence felt in these markets. It would not be wrong to say that Am 0 has worthwhile scope here. SEC#"R E0F= -his sector is a rather remote area with barely any shops or markets in close pro=imity. -here are two huge residential comple=es namely

7!"8!9+ ,)5 R4 and R!$"8$-!R. -here is only one shop in 2ail <ihar which is interested in keeping Am 0 ice creams but is unable to do so

because it is not getting permission from the building committee. Jn the other hand in 4alvayu -owers there are only two shops @ one a departmental store and the other a cafT. !oth these shops were eager to keep Am 0 ice creams but onl9 )4 the company would provide deep free&ers to them on low security basis. Am 0 has a very good potential for future sales in a monopoly situation in this residential comple=. It will not be wrong if the company sits back and ponders a while on the issue e=isting here.

D%!DAHERA 1= -his market is a very congested one. -he shop keepers here are a very poor and hence simply refused to adopt the H)'% scheme in spite of being interested in keeping Am 0 ice creams also a ma9or problem of prolonged hours of power cuts prevails here. -here are only 0.? shops here that are likely to keep Am 0 ice creams. However one of these shops already makes satisfactory sales of Am 0 ice creams. "other 'airy is another prevailing variety here. -here is no residential area close by and the demand for ice creams in the market is very low. CHAKKER %R1= -his market has about si= shops that can keep of which 0.? already stock "other dairy. :wality $alls is also available here. -he ma9or in the market is non. availability if electricity for long hours. -here are some shopkeepers who have left the business of ice creams due to this reason. -he sale of ice creams is 9ust marginal but there is considerable demand for ice creams here. If good alternatives can be arranged for retailers with regard to long power.cut problems then ice creams can have a good sale here. ALAM 7IHAR1= !i this market comprises of about +0 shops which could *ualify for being Am 0 ice cream out lets of which two already keep Am 0 ice creams. Jf the other shops nearly all keep at least one variety of ice cream. -he ma9or varieties available here are :wality $alls <adilal %reakon and "other 'airy. -he sale of ice cream in this market is 9ust marginal. "oreover

retailers who already keep one brand of ice cream are either reluctant to keep another variety because this eats into the sale figures of the already stocked brand. S% ER MAR# I, II1= -hese shopping comple=es are situated across the street. In #uper "art I there are not too many shops which can keep Am 0 ice cream. -he ma9or problem stated by retailers here are that the demand for ice creams is very low. In #uper "art II there is one huge departmental store by the name of

D!EEDS. -his shop is a very busy one with a good number of footfalls. It already stocks :wality $alls "other 'airy "ovenpick and !lue !unny brands of ice creams. -he shop was presently not interested in keeping Am 0 ice creams but can be surely convinced in the future. MILLE!!I%M LA:A1= -his is a huge official comple= that has only one big departmental store @ ALLMAR#. -his shop claims to have a monthly sale of 2s 60 000.60 000 worth of ice creams which amounts to a sale of 2s > 00 000 worth of ice creams annually. -he store stores "ovenpick and :wality $alls both of which have provided deep free&ers to them either free of cost on low security basis. -he proprietor here although interested in keeping Am 0 ice creams refused to purchase deep free&ers under the H)'% schemes. -his shop can be a good venue of Am 0 ice creams if tapped immediately.

SADAR 6A:AAR1= -his is a rather congested market with a rather low demand for ice creams. However there were only two good sweet shops which we visited of which one had recently taken up :wality $alls and the other although interested in keeping Am 0 ice cream refuse to invest under the H)'% scheme. DLF I, II, III1= In DLF I there are not many shops that can keep ice creams. Jf the twelve feasible shops five keep varieties like :wality $alls "other dairy !lue !unny <adilal and Am 0 those having one brand of ice cream already refuse to sell another simultaneously as this eats into the share of the previously stocked brands. #ome shopkeepers complaint about electricity problem that will call for another ma9or e=penditure on a generator or an invertors @ which they refuse to do. In DLF II there are 9ust two shops that could keep Am 0 ice creams of which one %AMRAT BA'ERY already stocks :wality $alls "ovenpick and Am 0. DLF III is flooded with a huge variety of ice creams ranging from :wality $alls "other dairy !lue !unny Am 0: %reakon !askin 2obbins and "ovenpick. -here is a very good sale of ice cream in this market. -he market is surrounded by residential colonies and is visited by people belonging to high.income group. -he people here are very fond of imported brands of ice creams that is why !lue !unny !askin 2obbins and "ovenpick have established themselves so strongly. -his is also why retailers here are a bit hesitant to stock a home brand like Am 0 although it is a renowned household name. However in due time Am 0 is sure to fine success in this market

S%SHA!# L"K I, II > S%SHA!# 78A AR KE!DRA1= -he market here may rather be said to be in fragments. 2etailers here complain ma9orly about long hour of power cuts that is why they are reluctant to indulge in the business if ice creams. -here are a few retailers who have even left the business of ice creams after having suffered great losses due to this reason. -his market should be left aside for some time now. 88. /ntill the situation improves.


;Sample S)ze GH< M"S# REFERRED 6RA!D 1 )ccording to the survey conducted across 10 retailers in 7urgaon it revealed that the most popular brand in the market here is :wality $alls with a high market share of 6+% .-his is largely becauseF -his brand has established itself sufficiently in the market -he retailers are provided deep free&ers on very low security -he company provides a good replacement policy to the retailers -he company gives a dealer margin of 00% and +6.6% on "2( -he retailers are satisfied with the schemes offered from time to time. -he company has very good distribution system

following :wality $alls is !lue !unny which is prevalent in 7urgaon. 2etailers also prefer keeping "other 'airy and )mul.saying these brands sell for their name.


-he main *uotients for the purchase of ice cream could possibly be only five. ;amely Huality Huantity (rice %lavour and )ccessibility. However the survey shows that the ma9or factor that affects customer purchases is price. ;o matter how much a customers loves ice cream he at one point of time definitely thinks about the price he is paying. #econd on the list is flavour @ the taste te=ture colour essence creaminess and mouth feel is what a customer looks for in an ice cream.

Jther factors like *uantity and accessibility have a very negligible impact on a decision to purchase ice creams. Ice cream is a delicacy and price is no factor.


Ice creams are a delicacy to every soul. It would indeed be very difficult to find somebody who doesnt like ice creams. %rom the survey conducted it is concluded that the ma=imum consumption of ice creams can be attributed to the age group between +6.06 years. -his age group comprises ma9orly of the teenagers and the youngsters.

-his group is further followed by the age group +0.+6 years A 00% B and further by the age group 06.?0 yearsA +>% B. Jn the whole it can be said that the consumption of ice creams is spread over an entire lifetime.


;Sample S)ze GH< M"S# REFERRED 6RA!D 1 Ice creams though cold are a hot favourite for one and all. :wality $alls is revealed to be the most successful and established brand in the market. Jver the past few years the brand has skillfully scooped a large share of the ice cream market to its credit. %ollowing this ranks Am 0 @the REAL MILK, REAL ICE CREAM'. (eople seem to have loved and liked these ice creams. )lso the price of the ice creams has attracted the customers to a great e=tent. Am 0s intention of positioning its ice creams as REAL VALUE FOR MONEY has borne fruits.

;e=t on the list is !askin 2obbins. -his the most popular international flavour in the 7urgaon market. )lthough confined to e=clusive outlets this brand has established itself satisfactorily. M+s2 &re,erre- F0a.+ r I 3very body loves ice creams whether it be a child or an old grandpa. -he survey reveals that the leading flavour ion the market across all ice

creams brands is Chocola5e . Chocolate is an all time favourite. so much

so that even when a person tries an ice cream for the first time he tries chocolate. 2anking ne=t is <anilla. <anilla is felt to have a very soft and subtle taste that suits every age and mood. It is probably this reason that e=plains the popularity of <anilla over such a large e=panse.

!utter #cotch is the ne=t hot favourite on the preference chart. -hese three flavours ma9orly contribute in the preference pie across all ice cream flavours. I%"#IE!#S F"R ICE CREAM %RCHASE1 )ccording to the survey conducted the ma9or *uotient for the purchase of ice creams is 4la2our. Customers are most lured by the flavour of ice creams. It the flavour of the ice cream that counts most for a customer. -he ne=t *uotient of priority is Juan5)59. 7ood *uantity along with special *uantity schemes is another note for attraction to buy ice creams.

r)ce plays a very essential role in actuali&ing a purchase decision .!ut for Dsoft lu=uries like ice creams price is of no importance .

6ran+ Ra5)n*, A, erce)2e+ 69 Cu,5omer 1 )s per the survey "other 'airy is seen to have a ma9ority stake as per Customer 2atings .-he widespread availability of this brand inaudibly compels and persuades consumers to look no further:. -he basic reason for "other 'airys popularity is its widespread availability and easy accessibility. %ollowing this list is "ovenpick. It is a big international brand that has positioned itself strongly in the minds of customers belonging ma9orly to the high.income group.

AMUL has found easy acceptance among customers who have been told about AMUL ice creams. It will not be long before which AMUL will also be topping the list. Its fan following is large already and undoubtedly grow avidly in the future.


It is an already established fact that AMUL is a gigantic brand name which has been successful all through its business since +5,6 .It has been 6 years now that AMUL ice creams have been present in the market. #o far it has seen success at a noticeably growing rate. However a #$J- analysis of AMUL ICE CREAM% given below can serve as a suggestive guideline for the company in the future. S#RE!&#HS Indias best known local brand across all categories of products -HHK 2e*e5ar)an )ce cream Scan be consumed even on days of fast 7ives ma=imum retailer margin on ice creams (rices are appro=imately ?6% lesser as compared to that of competitors Company has a well established distribution network Consumers prefer dairy ice creams rather than frozen desserts and )mul has an upper hand in this regard. Customers feel most psychologically comfortable buying ice creams in the D<alue %or "oney segment (roviding a deep free&er at a lower cost Athan the market priceB to retailers which lures them to take up a dealership.

)mul ice creams are considered to be the best as far as its taste is concerned as per our survey. $EAK!ESSES ) ma9or entry barrier )"/E ice cream faces is :wality $alls strong presence prevailing in 'elhis retail market. )dvertising is on a considerably low priority list for )"/E ice creams @ which is why both retailers and customers are still unaware about the product. 2etailers now demand deep free&ers without having to pay any deposit. -his is especially through for those retailers who already stock one or the other ice cream brands. -he company initially placed deep free&ers on low security basis. this is a cause of confusion to new retailers who are now being given deep free&ers on purchase basis . 2etailers are reluctant to invest such a huge sum of money to keep deer free&ers. "other 'airy is virtually omnipresent ; this is a big barrier for )"/E from its sister concern . Jther competitor companies are providing deep free&ers on very low security. retailers feel it is better to keep L stock such ice cream brand. "any retailers refuse to adopt H)'% scheme because they dont want to buy there own deep free&ers


"R#%!I#IES -he 'elhi and 7urgaon market are a not restricted to monopoly outlet. -here are a significant number of retailers who are currently stocking more than two brands. -his is in )muls flavour as earlier it had to overcome this problem which is in the market. -here is am ample scope in the low priced segment also in other categories where consumers presently are not satisfied with the *uality being provided vis a vis the price being charged. )mul has the opportunity to capture the more evolved young adults and children who are open to new products provided they meet their e=pectations. :wality $alls is right now in the investment mode and is concentration on e=panding the market as also its reach. )mul should direct its resources toward cashing in on development. 'istributors are dissatisfied with the margin and customer support services currently being provided in the market .this can be used to )muls advantage . "other 'airy is e=tremely apathetic to retailers and there is a gap to be e=ploited. If the company provides deep free&ers on low security basis than there is a chance to e=pand its retail outlets base soon ) good replacement policy can boost e=tent . the dealership to a great $alls market

a good and efficient supply chain of ice cream from distributors to retailers can increase the sale of ice creams . #HREA#S "other 'airy outlets are omnipresent in 'elhi and 7urgaon market. 'eep free&ers provided by competitors at a cheap rate are a disincentive to )mul -he *uality of ice creams manufactured by competitor companies is e*ually good. 'istributors policy of competitors company seem more attractive to retailers. 'istribution and supply system of :wality $alls and other competitor companies are good :wality $alls offers a +00% replacement policy which )mul does not.

-he success story of any product is designed by its marketing efforts. 3very effort made in marketing plays a very crucial role in the longevity of the product life cycle of the product in *uestion. ) product in simple words is D A 6%!DLE "F 6E!EFI#S AS ERCEI7ED 68 #HE C"!S%MER. If the consumer perceives a product to be good nothing can prevent him from purchasing it. Hence in such a dynamic market situation it is indeed imperative for the product planners to be very cautious. AMUL is a household name today not only in the country but also around the globe. -herefore all the difficulties which are generally included in the launching of a new product had nothing to do here. AMUL 0a "c4e- its ice creams rather too comfortably. AMUL /ce creams flooded the market 9ust as easily a big scoop of ice cream fills a cone. )fter having travelled whole of the 7urgaon market and having interacted with retailers and customers talking to them about ice creams and especially AMUL ice creams we have come to certain conclusions which should perhaps be looked upon by the company. In the ice cream business there e=ists a very ,)mple 9e5 e,,en5)al Dcol+' cha)n which links the company the distributor and the retailer. 3ven a very little ignorance or inefficiency on the part of any one of these parties can cause the entire business to be drowned. Contributing to this issue are the companys policies.

)fter having made a careful watch on these parameters we like to make certain humble suggestions to the company so that it may be able to help itself in the near future. -he demand for ice creams in 7urgaon is fairly large. -his is the reason why retailers are very eager to take up ice cream dealerships. It was however seen that :wality $alls and "other 'airy are the most popular brands in this market. In spite of this retailers want to keep AMUL ice creams. -here are already about ,0 AMUL ice cream outlets in 7urgaon and the list is growing gradually each day. ) study of the market will however reveal that the re5a)ler, demand the following facilities from AMULF FR%I#F%L DEALER MAR&I!S 2etailers say that :wality $alls offers them a margin of 00% which after accounting for dealer schemes adds up to 06% appro=imately. "other 'airy on the other hand although offering only a margin of +>.6% satisfies them because it sells in real big volumes due to its easy reach and low product prices. 2etailers e=pect a margin with a noticeably big difference so that all their e=penditure in electricity consumption and other ice cream business related risks are covered. DEE FREE:ER I%ERIES Jn the whole retailers who already keep ice creams have been provided with deep free&ers from the companies itself either on low security basis or else 9ust free of cost. !ut under the H)'% scheme provided by AMUL:

retailers have to make their own investment in buying deep free&ers which they are reluctant to do. -his is a problem with those retailers who already keep some other brands and have received deep free&ers on low security basis. 2etailers refuse to understand the benefit that they actually avail under the H)'% #cheme. )ll they actually bother about is the initial investment. "any retailers feel that buying a free&er is like buying a big e=penditure which is no better than a liability. 2etailers also feel that they will have to enter into an )"C worth 2s. 060 while there are retailers who have an )"C worth 2s. 600 only with the distributors. It is on all these counts that the AMUL H)'% #cheme is not being easily adopted. -he company should look into this issue and see if any favourable changes can be made in this regard. It can be said that if issue regarding deep free&ers are sorted AMUL will not take long to rule the market. AD7ER#ISI!&1 -his is another factor that bothers retailers to a great e=tent. )ll ma9or players in the ice cream market advertise their brand regularly. )ccording to them AMUL should go in for aggressive advertising. -his will create brand awareness which is very essential when a new product is being

launched. -he retailers have clearly said that they first wish to see the demand for the product in the market. )lso many e=isting AMUL retail outlet owners complain that the company does not provide them with ade*uate advertising material which further hinders their sale. RE LACEME!# "LIC81 -he main issue of concern in the business of ice creams is the replacement policy which the company offers. Competitors like :wality $alls give +00% replacement for product defects and around 60% replacement for damage due to other reasons Aconditions applyB. )lso the recent entrant in the 7urgaon market %reakon gives a +00% replacement policy. Jn the other hand AMUL has no replacement policy. DIS#RI6%#I"! S8S#EM1 :wality $alls is popular for having a very good distribution system. -he company provides the distributors with a lot of monetary benefits through schemes and the dealers in turn take care of proper distribution. 'ealers are gifted colour -<s 7old Chains etc. on achieving sales targets. -he dealers also take care of the maintenance of the deep free&ers. In case they are not able to repair the free&er the company either provides them with a temporary deep free&ers or the distributors stock untill the problem is solved.

Jur visit in the market enlightened us about this fact that Am 0 distributors are very irregular with their suppliesM never reach in time to lift up stock from the shops in case of long hours of power cut. -he company should essentially look into these matters and find acceptable solutions to these problems. )long with these issues the following are also matters of concernF ELEC#RICI#8 R"6LEM1 Certain markets in 7urgaon namely #ushant Eok #outh City 'undahera and Chakkerpur suffer from long hours of power cuts. -his is the ma9or reason for which there are barely any shops in these markets which keep ice creams. 2etailers here some time demand for invertors or generators from the company. -hese markets should be left a side for some time now until the conditions in these markets improve. FI!A!CI!& F"R RE#AILERS1 'uring our survey we came across several retailers who were very eager to keep Am 0 ice creams but were not in a position to pay enough cash so as to purchase a deep free&er for themselves. In most cases such retail outlets were proved to be very good but could not be taped because the company had no alternative scheme to give deep free&ers. -he company should either find some alternative scheme to the H)'% scheme or arrange for a tie.up with some finance company. If the company is looking for mass penetration into the market it should think fle=ible.

Am 0 ice creams @ the QREAL MIL': REAL ICE CREAM does not have to try much before it can establish itself in the ice cream market. -he ice creams have a H/73 brand name already e=isting in the market all it needs to do is encash its brand image.

In the course of our pro9ect we visited the ma9or markets and shopping areas in 7urgaon. Jur basic task was to study the potential for Am 0 ice creams in this market evaluate customer taste preferences and at the same time e=pand retail network of Am 0 ice creams in 7urgaon. 'uring our research we discovered that Am 0 ice creams have already established it self comfortably in about ,0 retail outlets in this region. -he markets in 7urgaon are not all that advanced. -he demand for ice creams cannot be *uoted to be <8ery -igh but it can surely be said to be <0airly "arge. :wality $alls is the market leader among the domestic brands while

!askin 2obbins is most popular among international brands. Am 0 at present re*uires to review its marketing strategies especially concentrating on retailers *ueries. It already is one of the most renowned household brand name in the country hence all it needs to do is take full advantage of this fact. If the company works out its marketing strategies for its ice creams thoughtfully and calculatively it will not be long before Am 0 becomes the market leader in this segment. Right now it is a Clash Of The Titans that is raging the markets. Only time will tell who gets the largest share of the cold scoop !!!!!


Websites Newspapers Economic Times Hindustan Times The Strategist Indian E press Magazines !usiness Today

$e are grateful to Dr. M. %. La3s4m/: 'ean A)cademic )ffairs %II!B for having given us the opportunity to work on such an interesting pro9ect. $e also e=tend our sincere gratitude to Mr. V/! 0 M/22a0 A"anager #alesB 7C""% who has been a constant of inspiration to us throughout the period of the summer training. $e are also very grateful to "r. #.:.Chopra A'y. "anager #alesB Mr.

A"/0 ' mar A3=ecutive #alesB and "r. #ubhash 'ude9a A'istributor ;ational 'airy Ice CreamsB who have guided us patiently throughout the term of the summer training. $e also take the opportunity to thank all the retailers and customers who have e=tended their kind help and co.operation in the course of our survey. $ithout the sincere help and thoughtfulness of all these persons it would indeed be impossible for us to successfully complete this pro9ect. $e e=tend our heartfelt gratitude to one and all.

-he action in the ice cream market is really hotting up with the old ma9ors being challenged by new entrants who have so far been catering to the premium segment but have now set their sights on the mass market. -his statement undoubtedly holds true this summer. -he Indian food market witnessed a war this summer. -his time around a Dcold war. in the 2s +000 cr ice cream segment took place. -he Indian ice cream market has not seen many multinational players. -ill recently HEE with its :wality $alls brand was the sole such player in the market. %or company it now has !askin 2obbins "c 'onalds "ovenpick and !lue !unny. )long side these warring giants Am 0 7C""%s +e,) (ran+ launched its range of QReal M)lC Real Ice Cream,' this summer in 'elhi 7urgaon

7ha&iabad and %aridabad. -his region has a potential ice cream market growing at the rate of 00% hence Am 0 easily slipped in .#o the market e*uations are in for a change. -he new e*uations may not be in favour of :wality $alls which was the leader not only in 'elhi but across the country. Am 0 has already made itself famous in a very short span of time. )nd as the word goes Am 0 wishes to increase its market share not by eating into "other 'airys share bur :wality $alls. )lready Am 0 is the leader in terms of volumes while :wality $alls in terms of value. In 'elhi J27 "arg retail figure show that for the "arch *uarter 000+ the value share of :wality $alls for the ?.?%. In the 'ecember *uarter it has 9umped to ,5.1%. -his summer Am 0 planned to turn up the heat by

selling +.06 litre at 2s 66 while :wality $alls sells of >60 ml pack of <anilla 7old for the same price. -o compete against :wality $alls +?6 ml #uper Cornetto Am 0 will be launching a +10 ml "ega !ite cone for 2s 00 a part from taking over lower price point with %undoo Ice Candy a ,6 ml (opsicle at 2s +.60. %or HEE the challenge is to rake in the profits while keeping Am 0 at bay. Am 0 intends to position it self in the minds of the customers as REAL 7AL%E F"R M"!E8' range of ice creams. E4a2 "e@2LLLLL..MMMMMM ! hot: war for a cold: 4coop of their own=====



6?NB ?6NA

R"LEC# #I#LE1 >.!/4$)/ )0 R ,$!" / ,5)R% )0 !#+" $' 'R !# $/ (+R(!)/:



Mr. 7)pul M)55al ;Mana*er, Sale,< &CMMF








Su(m)55e+ )n par5)al 4ul4)llmen5 o4 5he reJu)remen5 o4 &D6M ;BHH-=BHH@<

% *m/22e- T+I 'r. ".#. E):#H"I 'ean A)cademic )ffairsB

% *m/22e- B5I "s. '3J'I-) '#J/R) "r. #/24I- :)'I); +, L ! ,0 L )



T+!/cs Introduction Jb9ective "ethodology Eimitations -he #aga about the #coop 7C""% 7C""%. "ission #tatements "ap of India Ice.cream market in India 3ach for a share of the cold scoop )mul Eaunching of )mul Ice.Cream )mul Ice.Cream @ -it !its 2eal Ice.Cream vLs %ro&en 'esserts (rice working of )mul Ice.Creams H)'% #chemes )mul Ice.Cream @ (romotional #upport 2eport on Interview of "r. <. "ittal A"gr. #alesB 7C""% "ap of 7urgaon Ice.Cream "arket in 'elhi and 7urgaon Eist of "arkets -raversed !rief 2eport on "arkets -raversed )nalysis as per 2etailers survey )nalysis as per Customers survey )mul Ice.Cream @ #$J- )nalysis 2ecommendations Conclusions !ibliography )nne=ures &a1e N+. (p +.? (, (p 6.6 (> (p 1.5 (p+0.+? (+, (+6 (+6 (+> (p+1.0+ (p00.0? (p0,.0> (01 (05 (p?0.?, (p?6.?1 (?5 (p,0.,0 (,? (p ,,.,6 (,6 (p,>.6+ (p60.66 (p66.65 (p 60.6? (p 6,.61 ( 65