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Part II – Marketing Mix of Havmor Ice Cream Private Limited

INTRODUCTION
It all began in 1944 when Satish Chona, a young engineer working at BOAC (now British
Airways), decided to set up a pop up ice cream shop in Karachi, Pakistan, called Havmor. What
he started as a part-time venture to supplement the family income soon grew into a popular local
ice cream brand. But the year 1947 proved to be a tumultuous one with the partition of India and
Pakistan. Mr Chona and his family were forced to lea.ve everything behind in Karachi as they
migrated to India overnight in search of safety. After attempting to set up a base in a couple of
Indian cities including Dehradun and Indore, Mr Chona eventually decided to start his ice cream
business in Ahmedabad. Here, the weather would stay warm for a better part of the year, which
meant potentially higher ice cream sales.
Havmor Ice Cream, in 2017, has announced its plans for further expansion and market
development across cities with an investment of INR 200 cr. planned over the next 3 years.
Havmor continues to expand its operations through various retail partnership and ice-cream
parlours in its six newest territories including Delhi NCR, Haryana, UP in northern markets
and in southern markets namely Hyderabad in Telangana, other centers in Andhra Pradesh,
and recently in Karnataka.

PRODUCT LINE
PRODUCT RANGE
Product range can be defined as ”A set of variations of the same product platform that appeal to
different segments. In other words “A complete portfolio of products that a company
manufactures and/or markets.” HAVMOR Company produces various types of products. Their
ice cream is delicious and different varieties of flavors produces various types of products. Their
ice cream is delicious and different varieties of flavors

MARKET SHARE
The market share of havmor is only 3.7%. This is because it’s low presence and brand awareness
in all the parts of the country.
COMPETITIORS
According to our survey in Khedi kalan a village in Faridabad, it can be seen that there is a tough
competition from Amul, Vadilal and Kwality walls.
1. Amul –
Strengths-
1. Good product range include various flavors, party packs, sticks, cones etc
2. Good quality and packaging, and good advertising
3. Amul is one of the most respected top-of-the-mind brands
4. Also launched probiotic and sugarfree icecreams.
Weaknesses-
1. Growing competition form international and other brands means limited market
share
2. Limited international presence as compared to leading global brands
Opportunities-
1. Tie-up with food chains, restaurants
2. Mobile vans for better visibility
Threats-
1. Kulfi in rural markets
2. Local ice creams and sweet dishes

2. Vadilal-
Strengths-
1. It has world class manufacturing facilities providing excellent quality
2. Huge brand name locally in Gujarat providing a good base to expand
3. Has good reputation and experience for being in the industry for over 40 years
4. Huge variety in flavors of ice creams and candies
5. Good brand recall and a lot of variety to choose from.
Weaknesses
1. Stronger competition stifling its growth
2. Brand visibility lower than other major players

Opportunities
1.Venture into other dairy products so as to compete with other brands

Threats
1. Threat from the existing competitors as well as local ice cream brands
2 .Most people are not really brand conscious, so loyalty might be an issue

3. Kwality Walls
Strengths-
1. Strong brand name
2. Excellent advertising and visibility
3. Good product distribution and availability
4. Lots of flavors and varieties available
Weaknesses
1. Products have limited shelf life.
Opportunities
1 .Better and new flavors.

Threats
1. Threat from the existing competitors as well as local ice cream brands

Reasons of competition
These brands gives a good competition and have higher preference among people over havmor.
One of the main reason is that these brands have wide distribution channel, they have PAN India
presence and they are very easily available as compared to havmor. And from Amul there is
another reason that, they offer products at cheaper price than Havmor.

SWOT ANALYSIS
STRENGTHS
1. Strong Brand Name – the business started on a very small scale but over the years with the
quality, it has developed the industry as a whole apart from the business. It is one of the
most recognized brands in the western India market
2. The customer base is high – Havmor is number 2 in Gujarat and hence it has a huge
customer base in the market and loyal customers. This helps in driving more sales and spread
a positive word of mouth to attract more customers.

WEAKNESSES
1. Advertising is less – Havmor has become famous mostly by word of mouth and is not using
any kind of advertising to spread the word about its brand in the market.
2. Lack of Professionalism – As the business is still controlled by the founders and hence
there is a little lack of professionalism in comparison to the competitors who are managed
by professionals
3. Price parity – The main competitor of Havmor in the market is Amul and the prices of
Amul is less which poses a challenge for Havmor. This is because Amul is able to achieve
the economies of scale as they supply globally and pan India.

OPPORTUNITIES
1. Expansion – Havmor is totally focusing on Gujarat and Indore. It should open its stores
Pan India as the brand name is quite famous and recall is also high. It should capitalize on
the brand reputation it has built over the years.

THREATS
1. Competition – As the business operates in the food industry and the industry is highly
attractive for new entrants due to the profitability it offers thus the industry faces high
competition which further takes away the market share from the local players.

MARKETING MIX
The MARKETING MIX FOR THE havmor company is defined by 4 A’s.

1. Affordability
There is tough competition is given to havmor by Amul. Because of their low prices that havmor.
According to the survey conducted, 45% of respondents are ready to pay Rs.10 and only 10 %
pays more than Rs.20.Thus in order to capture higher market share in rural areas, a few steps
should be taken care of-
 Prices of kulfi (second most preferred dessert) should be reduced to Rs 5/ Rs 10
variants.
 Smaller versions of stick and cone style ice creams should be offered. Right now they
are available from Rs.40 which is way too high in rural areas. They should launch
them for Rs10-15.

2. Awareness
The brand need to create their awareness in rural markets. As 62% of respondents are not aware
about the product which hinders their sales. The company should take following steps to create
awareness-
 Giving advertisement on T.V channels which are being most watched in rural areas
and focusing on the products costing between Rs.5-20.
 Advertisement can also be done through hoarding in the local language of that rural
area.
 By various sales promotion activities like
1. providing small toys(freebies) to kids,
2. by giving special discounts on children’s day
3. tying up with other companies and providing their customer some special
discounts.
4. by distributing free samples during panchayat meetings.

3. Accessibility
The company needs to widen their distribution channels. More carts should be deployed
in rural areas specially near schools, playing ground and panchayat meeting area.
Accessibility can also increase by offering havmor ice cream even through kiraana stores.

4. Acceptance

RECOMMENDATIONS
1. Increasing distribution penetration at town and dealer level.
2. Executing a comprehensive plan for new market entry, premium category growth and
business to business (B2B) business penetration.
3. There is need to focus on detailed media planning across television, print and social
media, consumer activation and trial in key towns.
4. To penetrate into rural market, price based costing should be implemented.
5. Expanding the product mix, by launching probiotic and sugar free ice creams.