PREFAC

E
“Knowledge and human power are synonyms”, once said the
great philosopher Francis Bacon. However based on the
experience within today’s global markets, he would
probably say, “The ability to capture, communicate &
leverage knowledge to solve problems is human power”.
This raises the question how exactly one can best
capture, communicate & leverage knowledge, especially
within world of system engineering.

The answer probably lies in statement itself by

communicating your ideas and devising ways and means to
give shape to your plans in to reality, which requires a long-
term planning, investment and shrewd thinking.

The tryst for knowledge and power led me to two years

M.B.A. degree course as part of this long-term investment.
This course not only enabled me to focus firmly on the
current trend but also helped to focus on future changes.

As a part of this M.B.A. degree, students have to undergo a

project, which is designed keeping the prerogative and
preferences of industry in mind. This particular project allows
a student to implement what she has learned within the four
walls of classroom. It is here that the caliber of student is
tested to find his flexibility for rigorous tasks assigned to her
in future.

This report that I am submitting intends to highlight my

versatility in sustaining the pulls and pressure of day to day
professional life and put to perspective the facts that I am
capable enough to deliver whenever a challenge is thrown to
me.

This report is divided in two parts. The first part gives the
basic information about the project, the industry and the
company. The second part consists of Research Analysis and
Conclusion on the basis of particular Research Process. At
the end I have provided a short list of the reference books
and the sites that provided useful information during the
project.
ACKNOWLEDGEMEN
T
Knowledge in itself is a continuous process. At this moment
of my substantial enhancement I rarely find enough words to
express my gratitude towards those who were constantly
involved with me during my project and making it a success.
Men become good through practice than by nature.

I am grateful to Prof. Neeraj Amarnani, faculty of N.R. Inst. of

Business Management who created this opportunity to work
on the project. I am also thankful to all the faculty members
of N.R. Inst. of Business Management on for all their
suggestions and help that I obtained from them.

I am highly obliged to Mr. S. Keraleeyan, Product Manager

Vadilal Industries Ltd. for allocating such an interesting and
challenging project. Inspite of being very busy, he was ready

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to help me whenever required. I am further thankful to
personnel in Marketing Department especially Mr. Jignesh
Shah for assisting through out the project with his vast
knowledge of existing system.

The whole staff of Vadilal Industries Ltd. was highly co-

operative and I am thankful for all the support they extended
to me. I am also very grateful to Mr. Amit Pandya (Asst.
Mktg. Manager) for his immense help during the project. I
would also like to thank my parents and all my friends who
have helped me, though indirectly, through out the project
duration and always have been a source of encouragement.

EXECUTIVE SUMMARY

Today is the age of globalization, and competition has become a regular

feature in every industry. Every player in the market has to strive hard to
sustain. Good marketing strategies are always assisting the companies to
survive and grow.

Consumer is the king of the market today. He is the one who chooses from
all the available brands and selects the company of his will. The impact of
digital revolution on Consumer Behavior sets the tone for setting up the
modern marketing strategies that includes the study of consumer behavior,
its diversity and its development.

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The companies today use the past consumption behavior as a foundation for
creating and keeping satisfied and profitable life time customers. Consumer
Research is an important tool for understanding the consumer behavior.
Consumer Research describes the process and tools used to study consumer
behavior. The outcome of this consumer research enables the marketers to
understand and predict the consumer behavior in the market place, it is
concerned not only with when, why, where, how and how often they buy it.
Consumer Research is the methodology used to study consumer behavior, it
takes place at every phase of the consumption process: before, during and
after the process. Thus, consumer behavior study has become an integral part
of strategic marketing planning.

Vadilal is one of the leading companies in the organized sector of ice cream
industry in India. I have tried to conduct a survey on ‘The Consumption
Pattern of Ice Creams in the city of Ahmedabad.’ For this purpose I have
prepared a questionnaire that includes most of the questions giving
information about the overall consumption pattern and preferences of
people. The sample size was 150 people, from the different areas of
Ahmedabad. The report also includes the important facts about the entire ice
cream industry and the SWOT analysis of all the major ice cream players of
Gujarat including Vadilal.

The major findings that I got from this research include the following facts:

 The preferences for going out to consume ice creams and bringing it
at home are equally likely.

 Most of the people go out to consume ice creams with their family.
 The frequency of consumption of ice creams is less than 2 times per
week; however this is affected by seasonality factor.

 People generally like to consume ice creams at night, after dinner.

 Most preferred type of serving of ice cream is in Cone form, and

second highest preference is that of Cups.

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  Chocolate is the flavor of ice cream liked by most of the people.

 Brand and Quality are the important factors as considered by people

while purchasing ice creams.

 Promotional activities should be increased as far as the whole ice

cream industry is concerned.

 Vadilal is the most preferred Brand of ice cream.

HISTORY OF ICE CREAM

What is Ice Cream

Ice Cream is a frozen mixture of a combination of components of milk,

sweeteners, stabilizers, emulsifiers and flavorings. Other ingredients such as
egg products; coloring etc may be also added. This mixture, called a mix, is
pasteurized before freezing. Freezing involves rapid removal of heat while
agitating vigorously to incorporate air, thus imparting the desirable
smoothness and softness of the frozen product.

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The broad term frozen desserts refer to ice cream and related products.
Specific products includes ice cream and its lower fat varieties, frozen
custard, mellorine (vegetable fat frozen dessert), sherbet, water ice and
frozen confections. Some of these deserts are served in either the soft frozen
or hard frozen form.

The physical structure of ice cream is complicated psychochemical system.

There are three phases of system liquid, solid and gas. Air cells and air
crystals are dispersed in a continuous liquid phase. The liquid phase also
contains solidified fat, colloidal milk proteins, insoluble milk salts, and
lactose crystals in some cases, colloidal stabilizers and sugars and soluble
salts in solutions.

Ice Cream is palatable, nutritious, healthful and relatively inexpensive food.

History of Ice Cream

Ice Cream is one of the most spectacularly successful foods of all the dairy
based products. By contrast, ice cream has a short history. Ice Cream
evolved from the cool wine in mountain snow to hundreds of flavours that
stock our grocery shelves. There are many tales surrounding the evolution of
our country’s most popular dessert, Ice Cream. It is likely that Ice Cream
was not invented, but rather came to be over years of similar efforts.

The Chinese gourmets made the primary attempts to explore this

revolutionary food for lessening the blazing heat of summer. It was Marco
Polo who consigned this invention to Italy (Europe) after his voyage to
China in 1295. These experiments were carried out to make novelties from
ilk in France and gradually the whole Europe became addicted to Ice Cream.
Before this invention reaches the Indian connoisseur, the human kind had
witnessed two perilous world wars. The father of wholesale ice cream
business, is the US, was Jacob Fusel, a milk dealer of Baltimore, who began
to manufacture ice creams in 1851.

Ice Cream permeated the India soil in 1942, when “Quit India Movement”
had recently been launched. The establishment of Vadilal Soda Fountain,
near teen darwaja- Ahmedabad, marked an indelible footstep in the sand of
time. And this modest beginning of the monumental ice cream empire
followed the strategy of imperialism. In the last decade, i.e. after
liberalization and free market economy, the Ice Cream industry has gained

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favorable breeding ground to flourish on. The brand named like Vadilal,
Amul, Baskin & Robbins, Dairy Den, Walls, Go cool, Shrestha and to
numerous to mention are on the lips of the multitude. The bright future is
before them. They have to go ahead with chilled spirits, burning vigor and
bubbling gusto…

Manufacturing Process:
Prevention of Food Adulteration Act requires a minimum of 10% Fat, 3.5%
Protein, 15% Sugar Content, 36% total solid matter in ice creams. Ice cream
manufactured with modern technology contains about 40% air. The key non-
fat solids are skimmed milk powder and sugar. Ice Creams normally contain
milk fat but there are several varieties that contain vegetable fat (called
frozen desserts)

Ice Cream has to be stocked at lower temperature as compared to milk and

butter. All the liquid ingredients such as milk, cream, liquid sugar syrup etc
are mixed with dry solids such as non-fat dry milk, sugar, stabilizers,
emulsifiers and then blended. The blended mixture is then pasteurized to
destroy the microorganisms. The pasteurized mix is pumped through under
pressure to produce a smooth, uniform product. The mix is immediately
cooled to –4 degree C. and then aged to improve the body and texture of the
finished ice cream. Soluble flavoring materials are then added to the mix
then ice cream is frozen in batch or continuous freezers. During freezing air
is incorporated in to the mix resulting in increased volume. The soft frozen
product is drawn from the freezer at –6 degree C. and packed at this
temperature after which it is stored at a low temperature till marketed.
MARKET SIZE AND GROWTH

Ice Creams are available in various forms such as cone, cups, bar (candy),
party pack etc. Cones and Candy sticks account for about 25-30% of
volumes, where as cups and other novelties contributes the rest. Frozen
desserts market in India is very small and refers to vegetable fat (instead of
milk fat) based ice creams. Besides, a wider range of frozen desserts is also
made in house and also server in five star hotels. The Ice Cream market
growth during the late ‘80s and in early ‘90s was very low around 2-3% p.a.
but slowly the market has started picking up especially after de-reservation
of the sector in 1997. For the last 1-2 years the ice cream market in India is
growing at 15-20% per annum and presently it is estimated at worth 15-16
billion. This growth rate is expected to continue for another 2-3 years
because of lower base. Of the total size of Rs. 15-16 billion, around 30-32%

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is in the hands of organized sector. The growth rate could have been ever
higher but for poor infrastructure, high excise duty/sales tax etc.

Market growth historically was stunted by Govt. policies. Till 1997, ice
cream manufacturing was reserved for small-scale sector. The leading
players were unable to invest adequately to develop infrastructure of cold
chains for storage and distribution. Erratic supply and shortage of power in
most parts of the country have been the major factors limiting the growth.
As a result, there was a death of good quality products in the market and also
lack of infrastructure to distribute the same. Cadbury had entered the market
in 1992 with its Dollops brand, but was unsuccessful in building up any
significant franchise and withdrew two years later. In the absence of any
competition from MNCs, local players were able to build up a strong
franchise in respective local areas. Some of the players built up their markets
through exclusive parlors. But in most cases parlor network also could not
extend beyond local limits.

At the beginning of the first phase of liberalization, HLL entered the market
through frozen dessert route. Frozen Desserts (which use edible oil instead
of milk fat) were technically not reserved for small scale. Amul ice cream,
manufactured by the largest milk producing co-operative was introduced in
Mumbai market in 1996, intensifying the competition. In 1997, the sector
was deserved for small scale, based on the recommendation of the Abid
Hussain Committee report, on grounds of hygiene and technology. Removal
of licensing restrictions and investment by new players in capacity and
market expansion is expected to lead to rapid demand growth in the sector.
SEGMENTATION

Ice Cream market can be segmented in three different ways, namely

 On the basis of flavours

 On the basis of stock keeping units/packaging
 On the basis of consumer segments

On the basis of flavours: the market today has a number of flavours like
vanilla, strawberry, chocolate, mango, butter scotch, number of fruit
flavours, dry fruit flavours, traditional flavours like kesar-pista, kaju-draksh
etc. The market is totally dominated by vanilla, strawberry and Chocolate,

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which combine accounts for more than 70% of the market, followed by
butterscotch andICE
otherCREAM
fruit flavours.
MARKET OF INDIA
Because of high competition, every company had tried to add new flavours
to attract the customers. We can also divide this segment in to sub-segment
by

1. Regular flavours (incl. Vanilla, Butter Scotch, Strawberry etc.)

2. Seasonal flavours (Mango, Sitafal, Fruit Bonanza etc.)

On the basis of stock keeping units/packaging: the market can be divided

into four segments:
Unorganized Sector Amul Vadilal
 Cones

Dinshaw
Cups Kwality Havmor
 Dairy Den
Take-away Nirulas Pastonji
 Sticks
Arunor Candies Others

On the basis of consumer segments: the market can be divided in to

following four segments:

 Impulse Segment (Pull cart)

 Retail (Home take-away)

 Institutional/ catering

 Parlors

While institutional or catering accounts for around 15%, retail and

impulse combined
MARKET take FOR
the major
ICEchunk with 70%
CREAM IN of the market.
INDIA

MARKET FOR ICE CREAM IN INDIA

Evolution if Ice Cream Market in India

Amul, Vadilal, Quality Walls, Dinshaws, and Nirulas etc dominate

commercial organized Ice Cream market in India. The market size of
commercial ice cream is estimated at Rs. 600 crores. The unorganized local
player in Ice Cream industry also has got a market size equally big of Rs.
600 crores.

The contribution of fast food and specialty ice cream has fuelled the growth,
as more and more people are tempted to consume ice creams. In India, Ice
Cream is consumed for taste and as desert. Doctor’s advice Ice Cream after
tonsils and people invariably consume if they have problem of acidity.

In abroad Ice Cream is considered to be supplementary to food. People

abroad are very diet conscious. They have lot of choices in Ice Creams. They
have sugar-free Ice Cream; low fat Ice Cream and many other low calorie
Ice Creams. We can see from the difference in consumption of Ice Creams
in India and vast potential, we have, and an untapped opportunity available.

Ice Cream industry is very much synonymous to politics. Politics, because

here the regional players are strong, the same way in Ice Cream industry
local manufacturers are equally strong players in the market.
The Ice Cream market in Gujarat is approximately Rs. 200 to Rs. 225 crores.
The Ice- Cream market in Ahmedabad is estimated to be of Rs. 75 crores to
Rs. 80 crores from which approximately 50% is organized sector and 50%
unorganized sector.

In Ahmedabad itself, we have big organized players like Amul, Vadilal,

Havmor, and Dairy Den. Equally strong are many local players like Patel

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Ice Cream, Balaji Ice Cream, Rajasthan Ice Cream, Janata Ice Cream, Derani
Jethani Ice Cream and various other local manufacturers.

Present Trend

The Ice Cream Market worldwide is led by the United States, which is the
undisputed leader in the Ice Cream Market of the world with highest per
capita consumption of 1250 ml. per person. Other leading countries are Italy,
Denmark, Germany, United Kingdom and Australia where the per capita
consumption of Ice Cream is more than 500 ml. per person.

Ice Cream Market in India has been expended impressively over the last
decade. The long-term growth potential is very high when comparison is
done with the international consumption patterns. The per capita
consumption of Ice Cream in India is only 125-ml. per person. The
estimated market size is approximately Rs. 5000 crores if we consider the
average per capita consumption of the leading countries. The overall Ice
Cream market is growing by around 10% annually.

The entry of multi-national companies and large co-operatives has improved

the growth rate and created better images of the Ice Creams as good as
alternative for rich and nutritious food. The Ice Cream markets are basically
categorized into commercial packaged Ice Cream (sold through only outlets
having Deep Freezers); Premium Parlor Ice Cream (sold through Parlors);
Soft Serves parlors (made and dispensed fresh from machines) and artisans
scoop Ice Creams.

SWOT Analysis of Overall Ice Cream Market in India

Strengths:

The strengths of Ice Cream market in India is the availability of natural

resources which can be capitalized to improve and increase the market size
available.

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Weaknesses:

Many un-organized sector players manufacturing ice creams are not hygiene
and quality conscious and they just try to compete on price resulting in
unhealthy competition with organized sector manufacturers as well as good
unorganized sector manufacturers. Many organized players are thus finding
difficulty to maintain and survive in the market as they have high fixed
overheads.

Opportunities:

Looking to the International scenario, Ice Cream industry in India has a huge
potential in the untapped market available with us.
Ice Creams of various types can be made available to the people at large to
increase the consumption.

Threats:

Due to globalization many Multi Nationals are entering in India with a good
financial back up, latest technologies and equally good quality products with
attractive pricing and different varieties. This can create problem for Indian
manufacturers of Ice Creams if they can’t match their quality and price with
them.

General Suggestions to improve Ice Cream Market in India

Looking at the consumption pattern abroad and in India we have good

potential to expand the market size of Ice Creams in India.

The Prime and most important suggestion is to increase the awareness in the
people, so that the consumption could increase. The normal psychology in

12
the minds of people is that eating ice creams makes you sick, get you cold or
cough. The other thinking is that Ice Creams have a lot of fat contents that
could increase weight.

For this, if we manufacture Ice Creams with some additional values and
promote them in the market with a good registering message to the people, it
would definitely increase the consumption on Ice Cream. For example
manufacturers could come out with an ADRAK ice cream or ice cream with
mint or menthol.

Ice Creams with different varieties like low fat ice creams for weight
conscious consumers, Sugar free ice creams for Diabetic consumers and so
on. The promotions should be made in such a way that people are made
conscious to eat more and more ice creams. With the consumption
increasing and the cost of production coming down, the same should be
passed on to the consumers in different ways by giving attractive gift packs
with ice creams or more quantity for the same price. Ice Cream packaging,
shapes of ice creams can be made attractive to pull the consumers.

In fact, we have a huge untapped market in India looking at the per capita
average consumption of the leading countries in the world. If we take
average per capita consumption which is 500 ml. then we can have a
potential for ice creams to the tune of 5000 crores in India.

MAJOR ICE CREAM PLAYERS

The Indian Ice Cream market is dominated by a large number of small local
manufacturers and regional players. There are an estimated 150
manufacturers in the organized segment, which accounts for 30-35% of sale
of about 2000 units in the unorganized market. In the organized segment, the

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significant brands are Vadilal, Kwality Walls, Amul, Mother Dairy and
Baskin Robbins.

Major National Players Brands

Hindustan Lever Kwality Walls, Dairy

Classic, Max, Cornetto…

Vadilal International Vadilal, Dairy Fresh…

GCMMF/Other milk co-operatives Amul, Mother Dairy…

Maharashtra Dairy Products Baskin Robbins

Other Players: Besides the main national brands, other premium brands
have carved a niche for themselves in their respective regional markets.
These players have mostly concentrated on the large metro cities. These
players sell through franchise parlors as well as through retail stores,
groceries, restaurants, hotels, roadside stalls on highways, etc.

Region Brands
East Tulika, Rollicks (Induss Ice Creams)

West Naturals (In Mumbai Only), Pastonji,

Dinshaw’s (In Maharashra only),

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 Havmor (In Gujarat Only),
Yums (In Gujarat Only),
Cream Bell (In Rajasthan Only)

North Mother Dairy, Nirula’s

South Arun (Hatsun Foods), Joy,

Nandini (Karnataka Only)

Gujarat is very big market for Ice Cream industry, which is dominated by
Vadilal Ice Cream, which has market share of nearly 55% that is
followed by Amul and Havmor. Ahmedabad is at 1st rank in highest per
capita consumption of ice cream in India. In Gujarat people are also fond
of eating ice cream at parlors. In each four main cities and in many
medium cities local parlors are also famous.

Mumbai has several players such as Nature World, Naturals, Ice-cream

Express, Dinshaws etc that are priced at a premium over the Kwality Walls
and Amul brands. Arun, promoted by Hastun Foods Pvt. Ltd. is dominated
brand in the South. Arun sells its Ice creams through exclusive parlours,
which are popular in the southern cities. Joy, another marginal national
player has a stronger presence in the south. Together, Joy and Arun have a
sizable presence in the southern markets of Chennai and Tamilnadu.

Nirulas is the strong local player in Delhi. Mother Dairy the Delhi version of
the Amul brand also has a strong presence in the Northern Region.

The competitive structure of the Indian Ice Cream market is as below

Brands Market Shares (%)

Kwality Walls 35
Amul 30

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Vadilal 20
Others 15

Market Shares of Ice Cream Companies in India

Others
15% Kwality Walls
35%

Vadilal
20%

Amul
30%

The above graph reveals that the Kwality Walls is the national number one
player having 35% of the total market share. Vadilal is having the 20%
market share and giving tough competition to major brands like Kwality
Walls and Amul.

Market Share of Ice Cream Manufacturers in Gujarat

Brands Market Shares (%)

Vadilal 52
Amul 25

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Havmor 13
Others 10

Market Shares of Ice-cream

companies in Gujarat

Others
Havmor 10%
13%

Vadilal
52%
Amul
25%

The graph shown above depicts that in Gujarat Vadilal stands at the first
place with 52% of the market share followed by Amul and Havmor with
market share of 25% and 13% respectively. The market share reveals the
strong position in the mind and hearts of people.

Market Share of Ice Cream Manufacturers in Ahmedabad

Brands Market Shares (%)

Vadilal 35
Havmor 25
Amul 20
Others 20

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 Market Shares (% ) of Ice Cream
companies in A'bad

Others
20% Vadilal
35%

Amul
20%
Havmor
25%

If we see the scenario in Ahmedabad Ice Cream market then we find that
Vadilal is at the first position having the market share of 35%. However the
number one national player Kwality Walls is having negligible market share.

MAJOR ICE CREAM PLAYERS

OF GUJARAT

VADILAL

A name synonymous to Ice Cream. A company, which is around 78 years

old, was started by the founder member Late Shri Vadilal Gandhi.

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His Mission: To provide quality product and services at an affordable price.

Vadilal started as a one-man show with hand-cranked ice cream in 1926 as a

small retail outlet. Today it has grown to employ around 800 people. The
turnover of Vadilal in India has crossed Rs. 100 crores. In Ahmedabad they
are the leaders and are selling Ice Creams worth Rs. 20 crores. They have
plants at three different locations, one is at Ahmedabad (Dudheswar), the
second is at Pundhra, Gujarat and the third is at Barelley (U.P). They
manufacture around 90 varities of ice cream with over 160 packs and forms.
They have diversified in to processed food, Chemicals, construction and
financial services also.

SWOT Analysis of Vadilal:

Strength:

They have a cold chain network at three manufacturing units in India, 12

clearing and forwarding agents, 250 distributors and around 15000 retailers.
They have their own refrigerated vans for smoother and faster deliveries.

Weakness:

Financial constraints due to high overheads and cost of production

(electricity).

Opportunities:

Huge untapped market and the changing and growing consumption pattern.
They are having manufacturing units at three different locations and vans for
catering the needs of increasing demand in the market.

Threats:

High Taxes, Multi National companies entering the market and also the
increasing number of local manufacturers.

Hierarchy at Vadilal

Managing Director
Rajesh Gandhi

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General Manager

Sales Manager Product Manager

Senior Manager Dy. Product Manager

R.S.M Assistant Prod. Manager

A.S.M.

Sales Executive Prod. Executive

Sales coordinator Prod. Officer

HAVMOR

Havmor Ice Cream started as early as in the year 1944 in Karachi, Pakistan
by Chonas. The founder Mr. Satishchandra Chona came to India durind
India-Pakistan partition and then started their first larry at Kalupur. Mr.
Satish and his wife churned Ice Cream in a bucket at night and then they
used to sell it in the morning in larry. Bit by bit they saved money and in the
year 1953 they tool a place at Relief road which stands even today.

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Today Havmor has got outlets at many places including Relief road,
Navrangpura, Panchvati, and Drive-in and also at many places in Baroda.
They have a manufacturing unit at Naroda, Ahmedabad. Their turnover in
Gujarat is to the tune of Rs. 22 crores and in Ahmedabad they are selling ice
creams of Rs. 10 crores approximately.

Their distribution is done through distributor and retail network in Gujarat.

They have around 100 different flavours and sizes put together. Their
marketing strategy is always consumer oriented and they always have given
consumers value for money. Their advertisement and promotion are done
centrally through newspaper, hoardings, wall paintings, POP, events etc.

SWOT Analysis of Havmor:

Strength:

They have a strong regional brand with good quality and service back up.
They provide their customers value for money.

Weakness:

Financial flexibility

Opportunities:

Very large potential to attract the present generation who are now accepting
the ice creams round the year, if they find satisfactory prices and unique
quality of ice creams.

Threats:
High Taxes, very high overhead in terms of electricity and transportation,
competition from lots of local unorganized players.

Hierarchy at Havmor

Managing Director

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 Pradeep Chona

Marketing Manager Gen. Manager

Fin. Manager

Deep-freezer Dept.RSM RSM Mktg. Admn. Mgr. Dispatch Mgr.prod. QC

MIS

ASM ASM Prod. Supervisors

Executive Staff

Sales Representatives

AMUL (Anand Milk Union Ltd.)

Amul is a brand name of products coming under Gujarat Cooperative Milk

Marketing Federation Ltd. (GCMMFL) which is a 2500 crores
cooperative concern now. During the British rule Polson had a monopoly in
India. Polson used to buy individually from various farmers in Gujarat and
Maharashtra at a very low rate and then processed the product to earn heavy
profit.

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Sardar Patel and Morarji Desai got together during that time and then started
the cooperative movement. They met the farmers and made them understand
the ways British were exploiting them. They made a union and started
negotiating with British to give them proper rates. Initially the farmers threw
the milk but did not give it to the British. On experiencing the shortage of
milk they came to terms with the farmers and then started giving good price
to them. Once getting good price for their milk, farmers thought of starting
their own processing unit and this is how GCMMFL started.

One day the processing unit failed and there was nobody to maintain it. By
chance Dr. Varghese Kurien happened to be in Anand, who was an expert in
the dairy technology. They somehow traced her out and requested her to
come and mend the machine.
Dr. Kurien came and immediately repaired the machine. Since there was no
technical man, the federation requested Dr. Kurien to join and work for
them. This is how GCMMFL started with the leading man Dr. Kurien.

They started manufacturing all sorts of byproducts from the access milk like
cheese, butter, ghee etc. in 1976 with the help of Dr. Kurien who was a
master by himself. From that day onwards GCMMFL never looked back and
turned to be a giant worth more than Rs. 2500 crores. In 1996, GCMMFL
started manufacturing ice creams. In a very short time it captured a market
share in the organized sector to the tune of Rs. 200 crores which is 35% of
the total market share in India, and became a market leader. In Ahmedabad
Amul is selling ice creams worth Rs. 11 crores and has a market share of
approximately 30%. Its major strength is in its manufacturing units and its
networks all over India. It has got around 180 distributors in India, 37 in
Gujarat and 9 in Ahmedabad.

Strategy:
Their main strategy initially while launching was low price and high quality
product which has made them a success and leader all India.
Their pricing policy is all India one price. They come out with at par pricing
with the competition. Their marketing is done through distribution channel.
They have a variety of 153 types in all sizes, shapes and flavours.

SWOT Analysis of Amul:

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Strength:

Their main strength is the huge network they have with manufacturing units
at various locations all India and the strong financial backup they have.
Amul has also started selling ice creams by means of small shops built in
municipal gardens, so the reach of Amul is increasing.

Weakness:

Local unorganized sector giving ice cream at low price without any quality.

Opportunity:

There is a huge untapped market looking to the per capita consumption with
leading countries.

Threats:

High Taxes, high overhead in terms of electricity and transportation,

competition from lots of local unorganized players.

Hierarchy at Amul

Chairman
(Dr. V. Kurian)

M.D.
(Mr. B.M. Vyas)

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A.G.M. A.G.M.
(Existing n\w) (n\w Avenues)
D.G.M. D.G.M. D.G.M. D.G.M. D.G.M.
(East) (West) (North) (South) (Central)
Depot incharge
Officer incharge
Executives
Sales Representatives

DAIRY DEN
Chills Thrills and Frills

Dairy Den launched their first ice cream parlor way back in 1969 at
Ahmedabad and as a chain of seven-premium ice cream parlors in Gujarat
state. Dairy Den’s CTF has the USP of freshly prepared ice creams of
International quality having value for money and visual appeal. All their

25
parlors are run my management itself having high rated homogenous quality
with high hygiene standards.

The CTF operations are carried out under the name of Dairy Den Kiosk Ltd.
The brand is one of the major players in Indian Premium ice cream segment.
CTF plans to have its presence in all cosmopolitan towns in India and
expand their parlors to 40 by December 2002.

Dairy Den: Caters to high and low income class under two brands as under.

1) CTF Premium Ice Cream parlors

At present CTF operations consists of seven premium ice cream parlors

in Ahmedabad, Gandhinagar, Baroda and Surat. The company is
planning to open a new parlor at Delhi, Jaipur, Pune and Agra, which are
already under process.

2) Yums- Soft Serves

Dairy Den is engaged in setting up business of Yums Kiosk Parlors. This

is the unique concept introduced by them and has been a run away
success. The company is selling soft serves under the brand name of
Yums at a very low price making it affordable to all the sections of the
society. This concept has received a tremendous response from the
market. And currently there are 180 Yums outlets in the country.

CTF Products: Artisan Scoop Ice Creams, Soft Serves, Sundaes, Juices,
Thick Shakes etc.

SWOT Analysis of Dairy Den

Strengths:

1. Pioneers in bringing soft ice creams and freshly prepared artisans

scoop ice creams to Indian market

26
 2. Media coverage and promotions handling by leading advertising
agency Mudra.
3. It has its own managed parlors and hence can have a good control
over quality of product.

Weakness:

Cost of production is high as the volumes are low.

Opportunity:

Untapped market on a national level in premium ice cream segments with

few players in it.

Threat:

1. Local low priced ice cream manufacturers.

2. Government levies and controls.

Hierarchy at Dairy Den

Management of Group

Promoters: Mr. Harish Shah and Mr. Bharat Shah

Board of Directors

27
G.M.HRD G.M. G.M. G.M. G.M. G.M.
(Co. Secy.) (Finance) (Mktg.) (Parlor Op.) (Accounts)
(Technical)

Dairy Den Kiosk Ltd. Mgmt.

B.O.D.
G.M.
(Parlor Operations)

Regional B. Develop Manager Co.-ordination

& Plan Exe.

Asst. Mgr. Bus. Dev. Officer QC Supervisors

Operational Staff

VARIOUS LOCAL ICE CREAM MANUFACTURERS

There are various unorganized and local manufacturers in India who

manufacture ice creams by old methods by wooden or metal kothis or
having a locally made machine for making ice creams. These local or
unorganized sectors cannot be overseen as they have an equally big turnover
in India to the tune of Rs. 600 crores. They have an advantage of less

28
overhead and strong local brand loyalty. Their pricing is very competitive as
their overheads are less and are fighting big organized players in India.

The locally manufactured ice cream has got more weight as compared to
machine made ice cream. The machine made ice cream has generally got
more air in it. In Ahmedabad the unorganized local players are selling ice
creams worth Rs. 40 crores. The leading names in the unorganized sector
are:

• Patel Ice Cream

• Balaji Ice Cream
• Asarfi Ice Cream
• Rajasthan Ice Cream
• Derani Jethani Ice Cream
• Janata Ice Cream
• And many others.

SWOT Analysis of Local Manufacturers

Strengths:

1. Local players with few overheads and can give value for money.
2. Loyalty and continuity of their clients

Weakness:

1. Local hand made machines and hence no control over quality.

2. As it is made by Sancha the time taken is more
3. The weight of their ice cream is more as air content in ice cream is
less and hence costlier than the machine ice cream.

Opportunity:
Due to changing trend and increasing market sizes, they can capitalize the
niche market by giving good product at low price.

Threats:
Organized players with good network, financial and promotional backup and
with volumes are making cost effective products now and the gap has

29
narrowed down between the prices of organized and an unorganized sector.
Consumer would be tempted to go for an organized and a branded product.

PROMOTIONAL STRATEGIES

Promotional Assistance Provided By The Manufacturers In Gujarat

30
The promotional assistance provided by the manufacturer has improved and
increased as compared to three years before scenario. The promotional
assistance is given to the distributors to deliver the same to the dealers. The
posters, glow sign boards, posters for newly launched flavours or schemes,
wall paintings are provided to the dealers at the beginning of their business.
The same is supplied, even whenever demanded by the dealers themselves.
Thus the supply of such POP displays have been done free of charge to all
the dealers, but some times too many small dealers may not be given all the
available promotion as depending on his sales. The promotional assistance
also depends upon his sales. The promotional assistance also depends upon
the annual sale of a dealer, the location of his shop and the market he covers.

Promotional Measures Taken During The Year:

1. Schemes introduced by Havmor:

 Scheme throughout year:

Purchase Ice Cream Free Ice Cream Price (Rs.)

Bonanza (1000 ml) Pista (1000 ml) 100
Butter Scotch (1000 Vanilla (1000 ml) 100
ml)

 Scheme for Diwali Festival:

o Madhumalti Ice Cream + Asean company’s 4- =Rs.

299/-
(1000 ml) Container Tiffin box

2. Schemes introduced by Amul:

o Amul has introduced the Combo Pack schemes to attract
the consumers against the competitors. The schemes are
as under:

31
 Combo Pack Price (Rs.)
Santra Mantra + Vanilla 100
Fruit Bonanza + Vanilla 100
Alphanso-Mango + 100
Vanilla
Butter Scotch + Vanilla 100
Flavor contains 900 ml each

o Amul was selling the Vanilla Party Pack (900 ml) at just
Rs. 40 and Party Packs (900 ml) of Kaju Draksh and
Butter Scotch at just Rs. 60 each.

(NOTE: Promotional scheme of Vadilal is explained

later)

EFFECTS OF SCHEMES ON SALES:

The disturbed situation in Ahmedabad since last 3-4 years plays a major role
in decreasing the sales. But due to introduction of schemes, the sales have
been maintained and supported remarkably. The schemes have increased the
sales to a considerable level that has benefited all the intermediaries.

Increase in Sales
Year Sales
2001-2002 Average/ below Average
2002-2003 Increased by 50%

CURRENT MARKET OUTLOOK

32
The competition among HLL, Vadilal and GCMMF is at National level. But
where the Vadilal has major share in Western region the Vadilal has direct
competition with GCMMF.

Stiff competition has started between the leading players, starting the price
war by giving heavy discounts on its cones and by launching lower price
segment products. HLL too has launched a range of ice creams for lower
price segment and has clearly segmented the market based on the age. HLL
has taken over direct control of ice cream manufacturing in the eastern and
western regions, increased cold chain distribution by innovative channels
like mobile vending and has launched new brands in the market.

While GCMMF with its advantage in milk procurement and competitive

pricing is strengthening its position in the market by tying up with the
cooperatives by expanding its network, HLL has advantage of vast portfolio
of brands from its parent. Moreover, HLL too is experiencing new
innovative concepts for increasing the reach of its ice creams. Amul on the
other hand has gone national with setting up of proper cold storage facilities
and transportation facilities in the eastern region of the country. Meanwhile
the company also talks with Vadilal group for acquiring its ice cream
manufacturing facility in Bareilly.

Vadilal try to compete with heavy- price discount and by improving its
product range. Now a day the Vadilal has 250 different flavours. Vadilal is
the initiator of the scheme of BUY 1 GET 1 FREE in Party Pack and Cup
category, which leads hot competition in cold market. Vadilal has also
started parlor chain to attract premium segments.

The market has seen a number of international players like Movenpick,

Baskin Robbins, Blue Bunny etc. launching their products in the country.
Players like Blue Bunny, which is presently importing its ice cream for its
markets in Delhi, and surrounding areas has expanded its presence to
Western region. The company has plans of setting ice cream parlours across
the country.

Consumer Awareness and Penetration

33
Low income, high prices, non-availability of good quality products, poor
distribution infrastructure and low investment in marketing has all resulted
in one of the lowest per capita consumption of ice cream in India at 106 ml
per annum. Per capita consumption of ice cream in other countries is as
follows:

Country Per Capita

Consumption (Liters
p.a.)
USA 22.0
Australia 18.0
Sweden 14.0
Norway 12.0
UK 5.0
Thailand 1.8
Indonesia 1.8
Pakistan 0.4
Sri Lanka 0.3
India 0.11

Ice Cream penetration at all India level is estimated to be 14%. The

penetration is understandably higher in large metros at 29% compared to 24-
25% in small/medium towns. The same in rural areas is low at 9.5%. In rural
areas, kulfis/ ice cream made by small cottage industry is popular. The
market for organized sector is restricted to large metropolitan cities. In small
towns and villages, there are thousands of small players who produce ice
cream/ kulfis in their home backyard and then cater to lower market. Almost
40% of the ice creams sold in the country are consumed in the western
region with Mumbai being the main market, followed by 30% in the north
and 20%in the South. The eastern region has the lowest consumption level at
10% of national consumption. The main reason behind low penetration in
eastern region is the poor infrastructure facilities and lack of cold storage
chains in the region.

General Consumer Habits And Practices

 Ice Creams are primarily impulse purchase products and they are not
yet accepted as snack food or part of daily or frequent consumption

34
 habit. It remains once in a while indulgence. Retail displays,
fun/excitement positioning etc. plays a crucial role in purchase
decision.
 For impulse purchase budget, Ice Creams competes with other
impulse products such as soft drinks, chocolates, confectionery etc.
therefore, higher share of voice of soft drinks has an adverse effect on
the Ice Creams demand.
 While most consumers have liking for one or two flavours, they
frequently try out new flavours. Vanilla, Strawberry and Chocolates
together accounts for 70% of the volumes.
 Ice Creams are extremely likable product by all age groups. Claimed
penetration of ice creams is as high as 96%. Most consumers claimed
to have consumed ice cream however actually do not consume,
mainly due to price barrier.
 There is a strong resistance among Indian parents about ice cream
consumption by children, and a misconception that it can cause cold
or other illness. This is largely due to the fact that most ice creams
manufactured by local/unorganized sector are of poor quality.
Cold/other illness is caused by bacteria/germs and not by the cool
temperature of the product.
 All age groups consume the product. However, people below 25 years
age group account for 80% of the consumption. In relative terms,
consumption is lower among older people in India.
 Ice Creams are generally consumed in the evening, after dinner in
India. The consumption during daytime is extremely low.
 There is a significant seasonality in ice cream consumption in India.
Consumption goes down significantly in winter to about 40% of
average consumption in the North and 60% in West and South.
 Home consumption is restricted due to poor quality of in-house
refrigeration. As penetration of 2-door refrigeration is limited, ice
cream cannot be stored in proper condition for long time in single
door refrigerator.
 Consumption of branded ice creams manufactured by organized sector
is restricted to metropolitan cities and other towns. The organized
players have not been able to extend their distribution chain to small
villages and small towns, due to small size of market and non-
availability of cold chains.
 Presence of unorganized sectors and unbranded products is quite high
in rural and semi urban areas. The unorganized sector mainly sells

35
 frozen milk candies (kulfies). Quality of product is inconsistent and is
often un acceptable hygiene standards.
 In urban areas also, there exists a large unorganized sector but quality
of product is relatively better. A large part of catering market in urban
areas is catered to by the unorganized sector.

Reasons for low consumption of Ice Creams in India:

• In India there is a strong tradition of eating sweets. And hence the

availability and popularity of substitutes in terms of milk sweets and
other sweets.
• Ice Creams has not yet entered in Indian consciousness as a oral
gratifier and have not formed part of the consideration ser of an
average Indian.
• Ice Creams are not acceptable as item of consumption for all the age
groups. There is a strong perception that ice cream is a childish
product. The perception is that people grow out of ice creams in to
eating sweets.
• Feeling of guilt is strange in parents who eat ice cream, especially
when they are alone as the feeling is that they should eat when only
when their children accompany them.

COMPANY PROFILE

36
 About Vadilal Group

Started by the late Shri Vadilal Gandhi, Vadilal today is a name familiar in
practically every Indian household. Vadilal Group had its humble beginning,
more than 95 years ago. The name has become synonymous with Ice
Creams. Though, ice cream still remains the core business, over the last few
years processed and frozen food products have assumed great significance in
the scheme of things.

Today Vadilal group is in diverse businesses like Processed Foods,

Chemicals and Speciality Gases, Forex Advisory Services. Head Quartered
in Gujarat, the most industrialized State in India, the Group had a turnover
exceeding Rs. 1500 million in 1998-1999 major companies of the group are
listed in the stock exchanges of India. The group has a large investor base
and its brand name ‘Vadilal’ commands an excellent equity.

The Vadilal philosophy of providing its customers quality products and

services at affordable price has resulted in the brand being a household name
in India.

Processed Foods Division:

Vadilal entered the Horticulture Processing Industry in May 1991.
The best way to ensure total quality is to exercise total control right from the
raw material stage onwards. That’s exactly what Vadilal does. Selected
fruits and vegetables are grown under the company’s guidance in South
Gujarat – the important ‘Fruit Bowl’ of India. It is in close proximity to the
Alphanso Mango region. This is where the manufacturing plant is situated.
This plant at Dharampur is a modern unit with a well-equipped laboratory
for product development and microbiological testing.

Keeping in view the tremendous export potential for the processed foods
Vadilal has set up manufacturing unit having an installed capacity of 5,400
tons per annum.Vadilal is a registered Indian supplier to international mega
brands. The products are exported to Europe, USA, Middle & Far East and
South East Asia. Vadilal is the leading producers and exporters of mango
pulp in the country.

Vadilal has installed an automated line from Mather & Platt for washing,
depodding, inspecting, metal winnowing, blanching and cooling fruits and
vegetables. Their slicing and dicing is done on imported machines. In order

37
it preserve freshness and enhance shelf life the food is processed using
‘Individually Quick Frozen’ (IQF) technique. This technology has been
imported from Eurotek engineering limited, UK and it involves fluidized
belt type continuous freezing. It can process two tons of material per hour,
and it provides the flexibility of freezing at varying depths for different
durations.

It has all been worth the effort, considering that M/s. Underwriters
Laboratories Inc. has awarded the ISO 9002 certification for quality system.
Vadilal was also awarded the certificate of merit for excellent export
performance by APEDA (Agricultural and Processed Foods Export
Development Authority).

Among IQF vegetables the range includes, green Peas, Sweet Corn, Okra,
Mixed Vegetables et al. The IQF Fruits range has exotic varieties of the
famous Indian Mangoes- Alphonso, Kesar, Totapuri in pulps, slices, cubes
in addition to strawberries, Sapota and other ready to eat foods and
condiments also from apart from Vadilal’s formidable range.

Forex Advisory Services & FFMC Division:

Vadilal ventured into this segment in April 1996, offering non-banking
financial services. The main activities are:

 Forex advisory & Forex Exposure Management to Importers

and Exporters.
 Bullion informative Service on Gold Silver--- A complete
useful guidance to bullion traders, importers and jewelers.
 LME-Metal informative service bin base and Scrape metals. A
complete useful ‘guidance and information to metal traders,
importers, and Metal scrap indenting agents.
 RBI authorized full-fledged moneychanger –FFMC related
transactions: Sale/Purchase of foreign Currency and Traveler’s
Cheque.

Construction Division:

38
This venture was launched in 1994. Here again, Vadilal gave a lot of
attention to the two things that matter most in real estate projects one the
assurance of sound construction using only the best available raw materials
and two timely completion of the projects undertaken.

Vadilal has developed corporate complexes. The office buildings have been
designed to offer maximum flexibility in space planning. This takes care of
individual needs of office automation and communication. In addition,
Vadilal have also kept comfort and convenience in mind. Strategically
located in central business districts of Ahmedabad, these complexes are
corporate communes for the success driven enterprises.

Vadilal Chemicals Ltd.:

This division started in 1970, deals mainly in industrial gases and chemicals.
The main products are gases such as Argon Nitrogen, hydrogen and Oxygen,
Speciality gases, Industrial gas mixtures, Calibration Gases, Anhydrous and
Liquor Ammonia. Vadilal is one of the biggest bottlers of Anhydrous
Ammonia. Vadilal Chemicals Ltd. has over 2000 industrial customers. To
serve them, there is a marketing network of twelve branches and eight
dealers, a fleet of 50 cryogenic/liquid transport tankers & commercial
vehicles and 25,000-gas cylinders- one of the largest networks for industrial
gases in western India.

Ice Cream Division:

Vadilal the name conjures up the images of ice cream laden bowls and a
plethora of new flavours. Starting from one man show with a hand cranked
machine in 1926 as a small retail outlet, the ice cream division now has a
production capacity of one lakh litres per day at three sophisticated plants,
located at Ahmedabad, Pundhra and Bareilly. These these ISO 9002 certified
plants for Pundhra and Bareilly are established in such a way that they are in
consonance with the market expansion strategies of the division.

Vadilal offers the widest range of ice creams and frozen desserts (above 220
Stock Keeping units) in the country in packs including cups, party packs,
family bricks, dollies, cones and candies. Something for all taste, preference
and budgets. To meet with the consumer demand on regular basis, Vadilal
introduces new flavours for different segments of customers throughout the
year. People eagerly await Vadilal’s new introductions. Creativity is at
forefront in all the activities.
Innovations:

39
  Vadilal was the first ice cream manufacturer company to introduce
Dairy Fresh ----- natural ice cream with pure natural goodness of milk,
fruits and nuts, with no synthetic additives and preservatives.

 Vadilal was the pioneer in manufacturing a biscuit cone which

remains crisp to the last bite, unlike the traditional one that tends to
get soggy, before one is even halfway through.

 Vadilal has launched Ice-Mithai, an assortment of traditional Indian

sweet in Ice Cream form, which otherwise had to be bought just prior
to consumption and that too from vendors whose quality often left a
lot to be desired.

 Vadilal’s King Cone and One-up Chocobar – all time favourites have
today attained generic status. Other hits are Chowpati Kulfi, Cassata
and Ice mithai.

 Vadilal still dictates the ice cream market with its innovative offers –
“Khao Khilao”(Buy one get one Free) being the latest to hit the
market. Other players have also followed suit.

 To match its unique products, Vadilal has also gone for

unconventional and creative packing. As a part of this Vadilal
introduced filled Pineapple, Mango and Sweet Lime Ice Cream in the
intact skins of fruits.

To mark the occasion of the expansion of their ice cream manufacturing

facility at Pundhra, Vadilal created India’s largest ice-cream sundae by
breaking its own record in Nov.2001. The largest sundae was made using
4950 litres of ice cream, 125 kilograms dry fruits, and 255 kilograms of
fresh fruits and with 390 litres of chocolate and strawberry sauces. 180 men
took exact sixty minutes to create this record-breaking ice cream sundae.
The length of ice cream was 20 ft. and height was 9 ft. Vadilal’s ice cream
manufacturing facility at Pundhra is one of the most modern in country.
With an eye on the export market the company is maintaining hygiene as per
international standards in procuring milk directly from the farmers to
improve the microbiological quality. A wide range of products in all
segments like premium ice cream, regular ice cream and frozen desserts are

40
being manufactured at this plant. Vadilal’s Bareilly and Pundhra plant has
been awarded the coveted ISO 9002 accreditation and HACCP certification.

Vadilal has one of the largest cold chains of network in the country
comprising about 19 C&F Agents, nearly 350 distributors and 22,000
retailers. The network is kept alive by a large fleet of refrigerated vehicles.
Refrigeration equipments and retail freezers are sourced from world leaders
in the technology so as to deliver the quality products to the consumers,
which is a commitment at Vadilal. A large number of imported and
indigenous deep freezers have also been placed in the market thereby
enhancing the retail network. Most of the machines are imported from
Denmark, Germany, Italy and USA. Also Vadilal has set up a chain of
Happinezz Parlours- ‘Ice cream Boutiques’ to make it convenient for the
customers to relish the complete range under one roof. It has been a hit with
the ice cream lovers across the country.

Vadilal has 20% of the Indian Ice Cream market as its share. But that’s no
surprise considering that the group has the largest range of ice creams in the
country in a variety of flavours, packs and forms. The group has a product
matrix of over 200 SKUs comprising of cones, cups, candies, family and
party packs and bulk packs. Vadilal introduced the concept of “flavour of the
month” under which the company develops and markets one new flavour
every month for its customers delight.

Thus Vadilal has become a well-known brand covering a diverse range of

products and activities with a straightforward mission: “ To Provide quality
products and services at an affordable price. “

41
 ORGANIZATION STRUCTURE
OF VADILAL

Vadilal is mainly divided into two parts:

VADILAL

VIL VEL
Vadilal Industries Limited Vadilal Enterprise Limited

VIL:

Vadilal industries limited are one part of Vadilal, which is manufacturing

division of Vadilal. Along with manufacturing, it also looks after the Quality
Control, research and development, Dispatch, and storage related activities.

VEL:

The Vadilal Enterprise Limited has performed the Sales and Marketing
related activities. VEL is liable to handle the relationship with the C & F
agents (Clearing and forwarding agents), distributors and Dealers.

42
Organization Structure Of the Sales Department

General Manager
(Sales and Marketing)

Senior Sales Manager

Regional Sales Manager

Dy. Regional Sales Manager

Area Sales Manager

Sales Executive

Joint Sales Executive

Sales Coordinator

43
Responsibility Functions And Authority Of Individuals At Different
Hierarchy Levels

 General Manager’s Responsibility and Authority:

• Sales Administration
• Advertising and Media
• Product Management
• Recruitment and Selection at higher Authority Level
• Designing Sales promotional programs.

 Responsibilities and Authority of Senior Sales Manager, Regional

Sales Manager and Area Sales Manager:

• Generate Sales
• Assigning targets to SE, JSE and SC
• Recruitment
• Maintaining relationship with Distributors and C & F Agents.
• Assisting in designing of Promotional Programs.

 Responsibilities and Authority of Sales Executives, Joint Sales

Executives and Sales Coordinators:

• Appointing Distributors/Dealers
• Provide Machines
• Handling Dealer/ Distributor complaints
• Give the promotional tools to the Dealers and Distributors
• Dealer/Distributor Communication

44
 VADILAL’S HAPPINEZZ PARLOURS

Vadilal introduced exclusive ice cream parlours under the name “Happinezz
Parlours” to meet the expectations of the valued customers.

Happinezz provides cozy, nice and cool ambience where one can enjoy
world-class ice creams, ice cream sundaes, shakes and other various ice
cream concoctions to the heart’s content.

Presently Vadilal has 23 such parlours in India and it expects to increase its
number very soon. To open a Happinezz Parlour following requirements
have to be met:

Operational Requirements
 A place at a prominent location with atleast 15’ frontage and atleast
400 sq. ft. area reserved for ice creams only.
 Minimum two-display dispensers-one storage deep freezer unit and
one soda fountain freezer unit as equipment are required.
 Proper space for sitting or standing for serving ice creams.
 Inside parlour walls should be clean and may have product display to
enhance the general mood and give feeling of excitement.
 Translate of products with their prices and attractive photograph
should be displayed properly to create the right ambience in the
parlour.

Happenings
New Launches

• Recently the group has launched Fresh Fruit Ice Cream with ripples
under the Fantasy range viz. Black Current Dolly, 10 Rs. Sundaes
(Chocolate, Strawberry, Mango)
• Company has introduced scheme of Kaju-Draksh cup (1+1) and
Bomber and Mango Dolly in just Rs. 15.

45
Future Planning
Initially the company was dominant player in Gujarat and Rajasthan only,
but now because of stiff competition and market situation of these particular
regions, the company has decided to increase their market share in northern
region of India as a part of strategy to be leading player in the Indian Ice
Cream market. Company is also planning to increase their market share in
Bihar, M.P., Chattisgadh and Orissa.

46
 SALES RELATED MARKETING POLICIES

Sales related marketing policies include the following:

 Product line
 Promoting Measures Taken By Vadilal
 Pricing Policies
 Marketing Channel
 Distribution Intensity
 Types of Power in Channel

• Product Line Of the Firm

Vadilal offers two types of Products. One is Ice cream and another is frozen
desserts. Vadilal has the maximum range of ice cream products in India i.e.
over 200 SKUs. It has preferences for tastes as per budgets. There are rich
creamy ice creams for the connoisseurs and low fat frozen desserts for the
health conscious. There are plain favorites, chocolate ecstasies, romantic
ripples, nutty delight, and fresh fruit fantasies and are guranteed to spark
your taste buds. Vadilal has priced its products on the principle of real value
for money.

Product range offered:

Cones, Candies, Cups, Family packs, Party packs, Bulk packs, Chocobar,
Juicees, Candies in 3 flavors, Sundaes, Kulfies, Frozen Deserts, Fresh
Delight fruit Ice cream, Ice cream pizza, Dairy Fresh.

47
Quality:
At Vadilal, commitment to Quality is an Attitude. Vadilal Ice Creams
contains only the best ingredients, be it cashew nuts, almonds, pistachio
chocolate or fresh fruits. Great pains are taken to find the finest ingredients
from around the globe. State of the art technology ensures that each scoop is
dense, rich and filling, with no extra air of ice flakes. Special care is taken
during packaging, storing, transit and delivery so that consistency in quality
is maintained. This is why when the end product reaches the customer, he is
convinced that quality shines through in everything the group does.

• Promotional Measures Taken by Vadilal During The Year

Vadilal has run promotional schemes throughout the year. Different

promotional schemes for Customers, Dealers and Distributors are as below.

Promotional schemes for Dealers:

Vadilal had offered scheme for purchasing of Deep Freezers for dealers on
occasion of Diwali.

Company Capacity Price (Rs.) Free Ice cream

(Rs.)
Western/Carrier 300 ltrs 19,000* 5,000*
Western/Carrier 400 ltrs 23,000* 6,000*
Voltas ( 3 Doors) 400 ltrs 24,000* 5,000*
*Condition
applied

Promotional schemes for customers:

1) One scheme, which Vadilal is running for the entire year, is offering
‘ComboPack’. Combo pack is the package of two Party Packs.
Customers are getting two party packs by paying price for just one
party pack. One party pack is absolutely free. Vadilal get tremendous
response of this scheme and that is why they have decided to run this
scheme for the entire year. Under this scheme sometimes Vadilal
offers two different flavors at price of one.

48
 For example:
Purchase Ice cream Free Ice cream Price (Rs.)
Vanilla Vanilla 70
Kaju-Draksh* Kaju-Draksh* 100
Butter scotch* Butter scotch* 100
Fresh Strawberry* Fresh Strawberry* 100
Fresh Litchee* Fresh Litchee* 100
Black Current Strawberry* 100
Fresh Sitafal Real Vanilla* 100
Swiss Cake Chocolate sundae* 100
Khandala Special Mango Ripple* 100
Fresh Orange Fresh Mosambi* 100
Fresh Mango* Fresh Mango* 100
Fresh pineapple* Fresh pineapple* 100
Above party packs are available in 900 ml and Sundae is 500 ml
* Frozen desserts

2) Vadilal had launched ‘Diwali Special’ scheme. Under this scheme

vadilal had offered two choices to the customers:

PanchRatna Ice cream + Cello’s hot lunch Tiffin = Rs.225/-

Rs. 140/- (900 ml) + Rs. 285 = Rs.425/-

Badam Bahar Ice cream + Milton’s 4 container set = Rs. 125/-

(900 ml)

3) Chocolate Sauce with Vanilla: The consumer scheme of 50g chocolate

Sauce Free on Purchase of one litre party pack of Super Vanilla
became a Trendsetter scheme in the market. The response to this offer was
enormous.

Promotional Tools:

1) Promotions only through paper advertisements such as in daily news

papers.
2) Promotions provided to dealers through Wall painting, Freezer
painting, Hoardings, Acrylic boards. Glow sign boards, Attractive
boards for the newly introduced flavors schemes.

49
 • Pricing Policies Of The Firm

The pricing policies followed by the Vadilal are as below.

1) Policy on pricing relative to costs:

Vadilal follows Full Cost/Cost Plus pricing, for the states
where their manufacturing plants are situated. Under Full Cost pricing, no
sale is made at a price lower than that covering total costs, including the
variable costs and allocated fixed costs.

For Example:

X Cost of production
X+Y Cost of goods sold to VEL
X+Y+6% Cost of goods sold + Distributor’s
Margin
X+Y+6%+(12%to20%) Dealer margin added to above
=MRP (Consumer Price)

2) Geographical Pricing:
Vadilal charges extra penny as Geographical Pricing from the states
where the manufacturing plants are not located. Here, the margin of
C & F agent is added to the MRP of the Ice Cream. Also the
distribution cost is higher for such states so these states have to pay
somewhat higher charges for the Vadilal Ice cream.

For Example:

X+Y+Z Cost of goods sold + C & F agent’s

margin
X+Y+Z+6%+(12%to20%) Cost of goods sold + C & F agent’s
margin
Distributor’s margin + Dealer’s
margin

50
 • Marketing Channel

Channel Strategy

MANUFACTURE
VIL

C & F AGENTS

DISTRIBUTORS

VEL
LLL

DEALERS/RETAILERS

CUSTOMERS

The above channel strategy defines the channel members and whether they
are part of VIL or VEL. As shown the Manufactures and C & F agents are
handled by the VIL whereas serving the Distributors, Dealers and Customers
are the responsibility of the VEL.

51
 • Distribution Intensity

There are basically three types of distribution intensity.

 Selective Distribution: Selective distribution means selecting only

those outlets/retailers that can best serve the manufacturer’s interest.

 Exclusive Distribution: Exclusive distribution means distribution of

manufacturer’s product or products within particular area is to be
confined solely to the retailer/outlet with whom the manufacturer has
made written or oral agreement of distributing the product\products.

 Intensive Distribution: The manufacturer following the policy of

mass distribution or intensive distribution aims for maximum sales
exposure by securing distribution through all those outlets from which
customers might expect to purchase the product/products.

Vadilal has adopted the intensive distribution to have maximum sales by

availing Ice cream at the nearest location to customers. This way Vadilal is
getting maximum business. The manufacturer using this distribution strategy
needs several marketing channels. The channel strategy followed by Vadilal
is shown on previous page.

52
 • Types Of Power In Channel Relationship

 Vadilal is using Coercive Power with dealers. Vadilal forces dealers,

to not to keep other brand’s ice cream in their freezers.

 Vadilal uses Reward Power, to offer intermediaries (C&F agents,

Distributors, Dealers) extra benefits in the form of incentives,
discounts, tours etc. for achieving targets and for better performance.

 Vadilal uses Reward Power, to customers by providing attractive

product offerings like free schemes.

 Vadilal uses Expert Power in developing new flavors of Ice creams

and that way to help Dealers/Distributors for better sales.

 Vadilal has very strong brand image in the Ice cream market. People
are getting good reference from customers. This way it uses Referent
Power.

53
 Sales Budget and Assigning Territories

It includes the following:

 Sales Forecasting and Devising Budget

 Assigning Territories

Sales Forecasting and Devising Sales Budget:

As Ice cream is perishable good and it is require proper freezing to maintain
proper quality, which is very costly. So sales fore casting is very important
to reduce the cost of over production and maintenance.

Vadilal considers following factors for forecasting the Sales:

 Observing Market Trends
 Past figures related to consumption pattern
 Deciding the future strategy

Using the above factors, Experts in the sales field use their expertise and
give their opinion for the next year’s sales. Thus Vadilal use ‘ Jury of Expert
Executive Opinion’.

After deciding the Sales forecast, they are devising the Sales Budget. They
allocate budget for promotional schemes, for incentives to the sales people,
advertising etc.

Assigning Sales Territories:

Vadilal considers factors for assigning sales territories are as under:

 Market Potential
 Future Growth

Vadilal has decided 13 different territories for their operation.

1) Gujarat
⇒ Central
⇒ South
⇒ North
⇒ Saurashtra

54
2) Rajasthan
⇒ Udaipur
⇒ Jaipur
⇒ Jodhpur

3) Madhya Pradesh

4) Utter Pradesh
⇒ Eastern U.P.
⇒ Western U.P.

5) Uttaranchal, Dehradun

6) Delhi

7) Haryana

8) Punjab, Chandigadh, Himachal Pradesh

9) Jammu & Kashmir, Nepal

10) West Bangal

11) Orrissa

12) Chattisgarh

13) Tamilnadu

14) Bihar, Jarkhand

55
 LOGISTICS SYSTEM
The major areas under the Logistics System are as follows:
 Warehousing
 Order Processing
 Inventory
 Transportation

Warehousing:
As Ice cream is a perishable product and it must be kept in cool place to
maintain its quality for few days, Vadilal has Cold storages at different ends.
These ends are Factories, C& F agents, Distributors and Dealers. The
temperature kept in these storage houses is as low as -25 degree centigrade.

Order Processing:
Vadilal has defined MOQ (Min. Order Quantity) for the distributors to make
order to the company. As far as order of the dealers are concerned that is the
headache of the distributors. Here, the job of the Vadilal’s sales staff is to
assist the distributors in selling the Ice cream. Vadilal is having MIS system
installed in the organization. MIS helps Vadilal to know the status of a
certain Distributors.

Inventory:
For the raw material Vadilal keeps the inventory and do not follow the exact
JIT. The inventory of the packaging material is kept as low as possible and
according to the demand forecasted and growth rate of the market. Ice cream
is product of Impulse category that requires proper storage, to keep it in a
proper condition. The production and consumption system also such that, the
production is done through the whole year and main demand is in summer
season. So every company has to store Ice cream properly. Company has
enough storage facility at their all plants, and all C&F agents have their own
cold storage, so they keep the stock as per their requirement i.e. at the time
of promotional scheme period or in summer they maintain high stock, the
C&F agent carry the stock in bulk and they supply the Ice cream to
distributors or dealers, who also have proper freezing facilities.

Transportation:

56
Ice cream requires very low temperature in terms of -25 degree centigrade,
so the Van used for the transportation is having the chillers. Company is
RESEARCH
acquiring Van on the contract basis. WORK

1. PROBLEM STATEMENT

First Step in marketing research is clearly state the problem statement,

which is stating the management dilemma, its background, its
consequences and the resulting management question.

The study was conducted to know the consumption pattern of ice

creams in Ahmedabad city for Vadilal Ice Creams. The research was
exploratory in nature and quantitative research tools have been used
for data analysis that had been collected from the survey of the
consumers who eat ice creams.

2. RESEARCH OBJECTIVES

 To study the overall consumption pattern of ice creams in

Ahmedabad city.
 To know which type of ice creams are preferred by the people,
which includes the sub objectives like branded or unbranded,
which flavour, which type of ice cream serving etc.
 The Research also focused to know the frequency of
consumption of ice creams and the price tag generally opted by
the people.
 The Research also tried to find the effect of advertisement of
ice creams, the media and the brand mostly recalled by the
consumers.

3. IMPORTANCE AND RELEVANCE OF STUDY

All industries are facing competition today, and so is the ice cream
industry, which is fast growing. In Gujarat, especially there is stiff
competition amongst the players like Vadilal, Amul, Havmor, Dairy-
Den, and also the local manufacturers of ice cream.

57
 The main aim of my study is to study the consumption pattern of ice
creams in Ahmedabad city, which is a part of consumer behavior and
consumer research on the whole. As the market today is consumer
driven, it is very important to know their likings, preferences, and
their perceptions.

The result of this project would be useful to Vadilal to know the

consumer taste and preferences for ice creams, the effect of their
promotional activities and designing a better strategy if needed for
further improvement.

4. RESEARCH DESIGN

i. Approach
My research approach was quantitative in nature. This means the
data collection was done through the survey and the data thus
collected was subjected to rigorous analysis. The approach can be
further called inferential approach, as the purpose was formation of
database from the collected data and to infer the characteristics of
the population from it.

ii. Data Sources

The various sources of information that can be used are: Primary and
Secondary data sources. I was mainly used the primary data i.e. the
rely given by the respondents, to substantiate the findings and to
have idea of overall consumption pattern of ice creams. However, I
also have used the secondary data gathered from information
provided by the company, Internet, library, newspapers etc.

iii. Research Instruments for Data Collection

Marketing Researcher has a choice of two main research instruments
for collecting primary data questionnaires and mechanical devices.
Here the use of Questionnaire has been made for data collection,
which consists of a set of 20 questions presented to the respondents
for their reply.
For the study formal format of the questionnaire was prepared by me
under the guidance of Mr. Keraleyan, product manager and Mr.
Jignesh Shah, his assistant. The questions included were mainly
closed ended. The draft was prepared and the final draft was
operated over 150 respondents of the different areas of Ahmedabad.

58
 Questionnaire

TO STUDY CONSUMPTION PATTERN OF ICE CREAMS

IN AHMEDABAD

We are doing a survey on consumption pattern of ice creams: We would be grateful if

you could spare a few minutes to fill up this questionnaire.

Name of the Respondent: _________________________________________________

Address _________________________________________________
(Only Area)

(Tick the relevant below)

Q-1 Sex

Male Female

Q-2 Age

<20 21-30 31-40 >40

Q-3 Number of Family Members

<5 6-10 11-15 >15

Q-4 Education

Primary Secondary Graduate Post Graduate

Q-5 Occupation

Student Service Business Professional

Q-6 To have ice creams do you generally,

Go out Bring ice-creams at home Both

Q-7 You go out to take ice creams generally with

59
 Family Friends Alone

Q-8 How frequently do you consume ice creams? (Weekly)

<2 times 2-5 times above 5 times

Q-9 In a day, when do you generally consume ice cream?

Morning Noon Evening Night

Q-10 How would you like your ice cream to be served?

Cup Cone Candy

Scooped Sundaes Party/Family pack

Q-11 Which price tag (Rs.) are you comfortable with while purchasing ice creams?
(Put ‘X’ in suitable range)

Cup 5 10 15 20

Cone 5 15 25 35

Party Pack (1000 ml) 50 90 130 170

Family Pack (500 ml) 50 70 90 110

Q-12 Which flavors of ice cream do you like the most?

(Rank in order of preference – like most give rank 1 ----)

Vanilla Kesar-Pista Chocolate

Kaju-Draksh Butterscotch Seasonal/Fruit flavors

Other (Specify) ________________________________________________

Q-13 Please indicate how much importance do you give to the following factors
while buying ice creams?
Extremely Not at all
Important Important

60
 Brand 5 4 3 2 1
Price 5 4 3 2 1
Schemes 5 4 3 2 1
Flavour 5 4 3 2 1
Quality 5 4 3 2 1
Availability 5 4 3 2 1

Q-14 Can you recall any advertisement of ice cream?

Yes No
Advertise: ___________

Q-15 If Yes, Please tick the relevant ones out of the following:

Newspaper/Magazines Television Hoarding

Other (Please Specify)_______________

Q-16 You remember the advertisement because (tick the relevant)

It impressed you You saw it many times

It had good music Other (Specify)____________

Q-17 You generally prefer ice cream that is

Branded Unbranded

Q-18 Which brand of ice cream do you consume most?

Vadilal Amul Dairy Den Havmor

Other (Please Specify) _______________________________________

Q-19 How many schemes are you aware of?

Vadilal Amul Havmor

1.
2.
3.
4.

Q-20 Which is the first word that comes to your mind when you think of ice
creams?
_________________________________________________________________
_________________________________________________________________

61
 iv. Sampling Techniques
I have used the non-probability sampling in my research. Further sub
classifying it I can say that it is convenience-sampling technique
because although the areas selected includes all major areas of
Ahmedabad City, but then also it was according to my convenience.

 Target Population

 Element
The elements of research were the residents of Ahmedabad
city who consumed ice creams.

 Extent
My Research work was limited to Ahmedabad city only.

 Time
The study was conducted for the duration of 6 weeks
starting from mid-May.

 Sampling Frame and Contact Method

The Sampling Frame for the research included locating the

respondents in Ahmedabad city, found from the telephone
directory and then contacting them personally and asking them to
fill up the questionnaire prepared by us.

 Sampling Size

The population of Ahmedabad is widespread in many different

areas. Initially my target was to cover all the areas, but due to time
constraint and unfavorable responses from certain areas, I could
include only 11 areas of Ahmedabad city.

62
 Areas Covered
(Total sample size =150 respondents)

Area of Ahmedabad City No. Of Respondents

Maninagar 19
Odhav 16
Isanpur 09
Bapunagar 12
Naroda 14
Ambavadi 14
Paldi 18
Naranpura 16
Vadaj 11
Mithakali 11
Gulbai Tekra 10
TOTAL 150

5. DATA ANALYSIS

The next step is analysis of the data collected through the survey. Both
statistical and inferential tools have been used for data analysis. Among
the statistical tools hypothesis testing, frequency distributions etc. have
been used. Among the inferential tools, I have used cross analysis and
data reduction techniques to draw useful inferences from the collected
data. Formulation of charts, data tables and analysis of set hypothesis
gave powerful inferences from the collected data. MS WORD and MS
EXCEL have been used for this purpose.

63
The Question wise analysis and interpretation of the collected data is
as follows:

RESEARCH ANALYSIS

 OBJ: 1 (Q.1 TO Q.5) CUSTOMER PROFILE

i. SEX:
SEX

38%
Male
Female
62%

Sex No.
Male 93
Female 57
TOTAL 150
ii. AGE:

AGE

>40

31-40
Age

21-30

<20

0 50 100
No. of Consumers

Age No.
<20 23
21-30 95
31-40 14
>40 18

64
 TOTAL 150

iii. FAMILY MEMBERS

120
100
80
No.

60
40
20
0
<5 6-10 11-15 >15
Family Members

No. OF FAMILY MEMBERS:

Members No.
<5 105
6-10 38
11-15 06
>15 01
TOTAL 150

iv. EDUCATION

Education
Primary Secondary Graduate PostGraduate

4 19
40

87

Education No.
Primary 04
Secondary 19

65
 Graduate 87
Post Graduate 40
TOTAL 150

v. OCCUPATION

Occupation

3%
13% Student
5% Service
50% Business
Professional
29% House Wife

Occupation No.
Student 74
Service 44
Business 08
Professional 19
House Wife 05
TOTAL 150

 OBJ: 2 (Q.6 TO Q.9) WHEN, WHERE AND FREQUENCY OF

CONSUMPTION

vi. CONSUMPTION PLACE

PLACE OF CONSUMPTION

Go Out Bring at Home Both

Go Out
18%
Bring at
Both Home
64% 18%

Where: No.

66
 Go Out 27
Bring Home 27
Both 96
TOTAL 150

** Remarks: => As seen from the chart and the data mentioned above,
it can be inferred that when the respondents were asked
about the place of consumption of ice cream, then the
preference of only going out to consume ice cream or
only bringing ice creams at home was equally probable.
=>However, most of the people replied that they
generally did both, i.e. they went out as well as brought
ice creams at home without any notable preference.

vii. CONSUMPTION ACCOMPANIER

With Whom No.

Family 86
Friends 55
Alone 09
TOTAL 150

** Remarks: => As seen from the data mentioned above, it can be

inferred that the respondents were consuming ice creams
with their families in most of the cases. Second highest
preference is consumption with friends.
=> So, the selling of family packs and party packs should be promoted
more, so that when people bring ice creams at home their
preference is in favor of family packs. (All major ice
cream players already provide Combo pack schemes.)
=> Ice Creams should be made available at places where people
generally go on outings with family and friends, like
restaurants, gardens (Amul ice cream), theatres etc.

viii. FREQUENCY OF CONSUMPTION

67
 CONSUMPTION FREQUENCY - w eekly

100
80

Frequency
60
40
20
0
<2 2-5 >5
No. of Tim es

Frequency
(Per week) No.

<2 times 89
2-5 times 53
>5 times 08
TOTAL 150

** Remarks: => As seen from the data mentioned above, it can be

inferred that the respondents are consuming ice creams less
than 2 times per week. But this is actually affected by the
seasonality factor. Most of the respondents have replied that
the average consumption during the entire year is less than 2
times per week, however in summer season it increases from
2-5 times per week.
=> Off-season discounts should be increased or the ingredients like
mint, basil etc. should be added, so that consumption during
winter season does not fall considerably.

ix. TIME OF CONSUMPTION (in a day)

CONSUMPTION TIME

1% 10%

Morning
Noon
55% 34% Evening
Night

68
 When (in a day) No.
Morning 02
Noon 15
Evening 51
Night 82
TOTAL 150

** Remarks: => As seen from the data mentioned above, it can be

inferred that the respondents are consuming ice creams
generally at Night after the dinner, and secondly in the
Evening.
=> So, the Electric sign Boards can prove to be an important
advertising tool as it is more eye catching and attractive at
night under the colorful light.
=> To increase the consumption during other time in a day like in the
afternoon, ice cream availability should be increased near
the shopping areas, super markets, theatres etc., so its
consumption can be increased.

 OBJ 3: PREFERED TYPE OF SERVING AND FLAVOR (Q.10 & Q.12)

x. TYPE OF SERVING PREFERED

SERVING TYPE PREFERENCE

6% Cone
8%
Cup
7% 45% Candy
7% Sundae
Scoop
27%
Party Pack

Type Rank Score

1 2 3 4 5
6
Cone 67 34 26 14 03 03 727
Candy 11 18 38 39 16 14 471
Cup 40 40 26 26 27 17 693

69
 Sundae 11 18 16 27 42 40 425
Scoop 09 23 23 17 26 43 407
Party pack 12 17 21 27 36 33 427
Note: Rank 1 is given weight 6
Rank 2 is given weight 5
Rank 3 is given weight 4
Rank 4 is given weight 3
Rank 5 is given weight 2
Rank 6 is given weight 1

For Example:
Cone: (67*6)+(34*5)+(26*4)+(14*3)+(3*2)+(3*1) = 727
It can be seen from the score that cone is the type of serving of ice cream that is preferred
by most consumers. However, cup is also having second highest preference.

**Remarks: => As seen from the data mentioned above, it can be

inferred that the respondents are consuming ice creams
generally in cone, cup and candy forms which have the
respective scores in descending order.
=> However, these responses may be biased as the age group
generally reflects the consumption pattern of younger
generation.
=> It seems that people are not much aware of the
availability of scooped ice cream and sundaes, in
majority of the areas of Ahmedabad, so advertisement,
schemes may prove to be useful to increase their
awareness and thus their consumption.

xii. PREFERENCE IN TERMS OF FLAVOR

Flavour Preference

Chocolate
7% 5% Butter Scotch
9%
45% Kesar Pista
12% Kaju Draksh
Vanilla
22%
Seasonal

Flavor Rank 1
Chocolate 68
Butterscotch 33

70
 Kesar Pista 18
Kaju Draksh 14
Vanilla 10
Seasonal/Fruit Flavor 07
**Remarks: => As seen from the data mentioned above, it can be
inferred that the respondents prefer chocolate flavor
which has been ranked 1 highest times and the second
most preferred flavor is butter scotch.
 OBJ:4 BUYING BEHAVIOUR (Q.11-Q.13)

xi. PREFERED PRICE TAG

Price Tag (Rs.)

Cup 5-10 10-15 15-20

No. 95 44 11
Cone 5-15 15-25 25-35
No. 84 55 11
Party Pack 50-90 90-130 130-170
No. 68 63 19
Family Pack 50-70 70-90 90-110
No. 76 35 39
**Remarks: => As seen from the data mentioned above, it can be
inferred that the respondents generally prefer Cup of Rs.
5-10, Cone of Rs. 5-15, and Party Pack of Rs. 80-110 and
Family Pack of Rs. 50-70.
=> The company should increase the variety in the above
mentioned price range.

xiii. FACTORS AFFECTING CONSUMPTION

FACTORS INFLUENCING
CONSUMPTION
Brand Price Flavor Quality Availability Scheme

8% 23%
11%

11%
25%
22%

71
 Extremely Not At All
Important Important
5 4 3 2 1
Brand 106 18 19 03 04
Price 50 43 31 15 11
Scheme 38 34 42 16 20
Flavor 102 30 12 02 04
Quality 117 23 04 02 04
Availability 49 26 35 26 14
**Remarks: => As seen from the data mentioned above, it can be
inferred that the respondents generally consider Quality,
Brand and Flavor as the most important factors while
consuming ice cream. The important point stems out here
is the price factor is not given much importance as
compared to Brand and Flavor.
=> However, this conclusion cannot be generalized, as the samples
are taken from urban and semi urban areas. The findings
might differ if rural samples are also included.

STATISTICAL TEST USING NON-PARAMETRIC HYPOTHESIS

Non-Parametric tests are distribution free tests. The major advantage of

using non-parametric test is that they do not require us to make the
assumption that a population is distributed in a shape of a normal curve or
another specific shape, moreover non-parametric test are easy to understand
and do not demand any type of laborious computations like other tests.

I have used sign test that is one of the type of non-parametric test. The sign
test is used for paired data, where positive and negative signs are substituted
for quantitative values to make the computation easier.

I have used sign test in Q.13 of the questionnaire to verify whether the
different factors, like brand, price etc. differ significantly in the importance
received from consumers.

Hypothesis:1 [ Brand and Price ]

H0 : There is no significant difference between the importance given to brand

and price while consuming ice creams. pH0 = 0.5
H1 : Brand is considered to be more important as compared to price while
consuming ice cream.

72
No. of respondent = 150
Note:
Both brand and price have been rated from 5 (extremely important) to 1 (not
at all important) by the respondent. I have noted ratings of brand and price
and then substituted these quantitative values by ‘+’ and ‘-‘ signs.

e.g.
Respondent Brand Price Sign
1 5 3 +
2 4 5 -
3 5 5 0
and so on.
The total of positive signs = 75
The total of negative signs = 31
The total of zero’s = 44
TOTAL = 150

pH0 = 0.5
qH0 = 0.5
n = 106(Total of positive and negative signs)
p-- = 75/106 = 0.7075
q-- = 31/106 = 0.2925
ε p-- = √pq/n = √0.5*0.5/106
= 0.0486
Zcal = p---pH0/ε p--
= 0.7075-0.5/0.0486
= 4.2695
Let the level of significance α = 0.10

0.5 0.4

0.1

73
 0 1.28

The value of Z tab = 1.28

Z cal = 4.2695
Z cal > Z tab, so reject H0 and accept H1, so brand is considered to be more
important factor as compared to price while consuming ice creams by
respondents.

Hypothesis:2 [ Price and Flavor ]

H0 : There is no significant difference between the importance given to

flavor and price while consuming ice creams. pH0 = 0.5
H1 : Flavor is considered to be more important as compared to price while
consuming ice cream.

No. of respondent = 150

Note:
Both flavor and price have been rated from 5 (extremely important) to 1 (not
at all important) by the respondent. I have noted ratings of flavor and price
and then substituted these quantitative values by ‘+’ and ‘-‘ signs.

e.g.
Respondent Flavor Price Sign
1 5 3 +
2 4 5 -
3 5 5 0
and so on.
The total of positive signs = 64
The total of negative signs = 20
The total of zero’s = 66
TOTAL = 150

pH0 = 0.5
qH0 = 0.5
n = 84(Total of positive and negative signs)
p-- = 64/84 = 0.76
q-- = 20/84 = 0.24
ε p-- = √pq/n = √0.5*0.5/84
= 0.054

74
Zcal = p---pH0/ε p--
= 0.76-0.5/0.054
= 4.818

Let the level of significance α = 0.10

0.5 0.4

0.1

0 1.28

The value of Z tab = 1.28

Z cal = 4.818
Z cal > Z tab, so reject H0 and accept H1, so flavor is considered to be more
important factor as compared to price while consuming ice creams by
respondents.

 OBJ:5 IMPACT OF ADVERTISEMENT & SCHEMES ON CONSUMER

(Q.14,15,16,19)

xiv. RECALL OF ADVERTISEMENT:

Yes No TOTAL
94 56 150
Brand No.
Vadilal 25
Amul 36
Havmor 19
Others 14
xv. MEDIA RECALLED

Television and Newspaper are the media on which the people

generally notice the advertisement of ice creams and so could recall it
immediately.

75
 xvi. CAUSES FOR ADVERTISEMENT REMEMBRANCE

Cause No.
It impressed you 31
You saw it many times 46
It had good music 17
TOTAL 94

xix. SCHEME AWARENESS

As per Q.13 scheme is not given much importance by the respondents

while choosing ice cream. This same conclusion is verified in this
question; as most of the people are only aware of the combo pack scheme,
that too only of brands like Vadilal & Havmor. The second scheme
recalled is the Diwali offers of above companies. The respondents do not
generally recall Amul’s schemes.

**Remarks: => As seen from the data mentioned above, it can be

inferred that the respondents generally remember
advertisement of Amul on television and of Vadilal in
newspaper. So Vadilal should increase advertisement on
television.
=> Around 33% of the people do not recall any advertisement of ice
creams, so all the major ice cream players should spend
more on advertisement.
=> Amongst the people who remember the
advertisement, the main cause for remembrance is the
reinforcement of ice cream advertisement especially
through Hoardings, POP displays and Newspapers.

 OBJ:6 BRAND PREFERENCE (Q.17,18)

xvii. TYPE OF ICE CREAM PREFERED

Type No.
Branded 143
Unbranded 07
TOTAL 150

xviii. MOST PREFERED BRANDS

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 BRAND PREFERENCE

23%
Vadilal
35%
Amul
Dairy Den
15%
Havmor
27%

Brand Rank Score

1 2 3 4
Vadilal 52 49 25 24 429
Amul 41 37 42 30 389
Dairy Den 23 30 41 56 320
Havmor 34 33 41 42 359
Note: Rank 1 is given weight 4
Rank 2 is given weight 3
Rank 3 is given weight 2
Rank 4 is given weight 1
For Example: Vadilal: (52*4)+(49*3)+(25*2)+(24*1) = 429
It can be seen from the score that Vadilal is the brand of ice cream that is preferred by
most consumers. However, Amul is also having second highest preference.

**Remarks: => Ahmedabad people generally consume branded ice

cream as compared to locally manufactured unbranded
ice creams. However, these responses might be different
if the rural and semi urban respondents are included.
=> As seen from the data mentioned above, it can be
inferred that in the oligopolistic market of ice creams,
Vadilal is the market leader and Amul is the challenger.
=> Havmor’s market share is significant in Ahmedabad and Gujarat
and it is generally preferred brand of youngsters. But, its
reach is limited to Gujarat only.
=> All varieties of Dairy Den are perceived to be costlier
except Yums so its penetration is low.

 OBJ: 7 ICECREAM AND CONSUMER IMAGERY (Q.20)

xix. MOST RECALLED WORD RELATED TO ICE CREAM

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 Word Frequency
Yummy Creamy Desert 14
Delicious 30
Vadilal 18
Chocolate 08
Cool 23
Others 17

**Remarks: => When the respondents were asked to recall the word
that immediately struck their minds when they thought of
ice creams, the people generally called it ‘Delicious’, so
it can be inferred that people consumes ice cream
because of its taste.
=> Ice cream is also considered as a cooling agent and so
the people remember the word cool, even in the hot
climate of Ahmedabad city.
=> Some of the people also considered ice creams
synonymous to Vadilal brand. The king cone and vanilla
flavor of Vadilal are the words recalled immediately by
the people. It shows that Vadilal has been successful in
occupying consumers’ imagery.

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 POST RESEARCH FINDINGS

POST RESEARCH SWOT ANALYSIS:

VADILAL ICE CREAM INDUSTRY

STRENGTH
 There is large number of
flavors (70) giving customer
a range of choice.
 It has the maximum range of
ice cream products in India.
(over 200 SKUs).
 One of the oldest
manufacturers of ice cream
and hence have a well-
established brand name.
 Well-established cold chain
network of 12 G&F agents,
250 distributors and 16000
retail dealers.
 Market leader in Gujarat.
Gaining market in
Rajasthan, UP etc.
 Quality is given utmost
importance as depicted in
their philosophy ‘To provide
quality products and
services at an affordable
WEAKNESS
 Vadilal is not aggressive in
promotion and advertising.
 Lack of innovation and
initiatives to introduce new
concepts in the area.
 Lack of interaction with the
retail dealers and handling
of their problems.
 Lack of innovation in
recently launched flavors
against Amul and Havmor.
 Schemes and offers are not
advertised / promoted
effectively to end users at
large.

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 price.’
OPPORTUNITY
 With its loyal dealer network it
can forgo into new markets
 With the entry of foreign
players in the market it can go
into collaboration with them,
as they will be willing to be
associated with an established
brand name.
 Because of its emphasis on
quality it is held high in the
minds of customers. Thus it
can increase the market share.
 A favorite with the customers’
because of its large variety of
flavors and SKUs.
 Because of its leadership in
novelties and impulse items it
is the hot favorite with young
generations. By introducing
some trendy products and
attractive packaging can
increase its hold substantially.
The major findings obtained from this research work are as follows:
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THREAT
 Other companies are taking
advantage of its slowness in
promotion in a misleading the
customers and dealers.
 Lack of niche. With the
increasing competition it
would be very difficult to
survive without a niche
market.
 Havmor and Amul with
competitive flavors and prices
becoming major threat for the
company.
 Consumers are unaware of
half of the schemes and as a
result, schemes are not able to
achieve the targets.
 1. People generally consume ice cream both by going out and bring ice
creams at home without any special preference.
2. Respondents consume ice creams generally at night after dinner or in
the evening.
3. The frequency of consumption is less than 2 times per week (Avg.
during the year), however this increases to 2-5 times depending on
seasons.
4. Cones, cups and candy are the most preferred type of ice cream
serving, especially among young people.
5. The flavors that are liked by majority of consumers are chocolate and
then butterscotch.
6. Brand is given much importance and majority of consumers consume
branded ice cream and when compared to price brand is given more
ratings.
7. Flavor is regarded as a very important factor by respondents and they
are not ready to compromise on their favorite flavors, even if they
have to pay high price for it.
8. As far as the recall of advertisement of ice cream is concerned, people
recall the advertisement of Amul on television and Vadilal in
newspaper and Hoardings. Some of the people do not recall any ice
cream advertisement.
9. Vadilal is the most preferred ice cream brand by the people followed
by Amul.
10.Consumers’ imagery is occupied by the words like delicious, yummy,
cool and Vadilal when they think of ice cream.

Results of Cross Analysis:

I have tried to correlate pair of question from the questionnaire to establish

association between them and to infer important facts from that.

1. Cross Analysis between Gender and preference of Flavor

The total no. of females = 57 / 150

Out of 57 female respondents, 38 female respondents (66%) gave rank 1
to chocolate flavor when they were asked to rank different ice cream
flavors and 32 out of 93 male respondents (34%) preferred butterscotch
flavor and 24 males (26%) prefer chocolate flavor.

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 2. Cross Analysis between Age and type of Serving

The age group of less than 20 years and 21-30 years generally prefers
cone and candy types of ice cream serving, while people between age
group of 31-40 prefers cups and family – party packs.

3. Cross Analysis between Age and preference of Flavor

The people of age group less than 20 prefers chocolate flavor and that of
21-30 also prefers it. Age group 31-40 likes flavors like butter scotch,
kaju draksh and chocolate.

General Suggestions after the research work:

1. The selling of family packs and party packs should be

promoted more, so that when people bring ice creams at
home their preference is in favor of family packs. (All
major ice cream players already provide Combo pack
schemes.) Ice Creams should be made available at places
where people generally go on outings with family and
friends, like restaurants, gardens (Amul ice cream),
theatres etc
2. Off-season discounts should be increased or the
ingredients like mint, basil etc. should be added, so
that consumption during winter season does not fall
considerably.
3. The Electric sign Boards can prove to be an important
advertising tool as it is more eye catching and attractive
at night under the colorful light. To increase the
consumption during other time in a day like in the
afternoon, ice cream availability should be increased near
the shopping areas, super markets, theatres etc., so its
consumption can be increased.
4. It seems that people are not much aware of the
availability of scooped ice cream and sundaes, in
majority of the areas of Ahmedabad, so advertisement,
schemes may prove to be useful to increase their
awareness and thus their consumption.

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 BIBLIOGRAPHY

Books:

1. Business Research Methods

By Donald R. Copper & Pamela S. Schindler
Tata McGraw-Hill Publishing Company Ltd.
New Delhi, 2002 Edition

2. Marketing Research
By Naresh K. Malhotra
Pearson Education, Inc.
New Delhi, 2004 Edition

3. HandBook For Writers & Editors

By S. Srinivas Rao
Ahmedabad Management Association
Ahmedabad, 2002 Edition

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Websites:

www.vadilalgroup.com

www.indiainfoline.com

www.google.com

www.amul.com

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