Amul Report

“FRANCHISE STRATEGY & FEASIBILITY STUDY OF AMUL

SCOOPING PARLOURS”

Summer Project Report

Submitted in partial fulfillment of the requirements

For

Post Graduate Diploma in Management (PGDM)

(Year 2012-2014)

SUBMITTED BY

Name: KALPESH JAGTAP

Roll No. PG-12-021

Batch: (2012-2014)

IES Management College and Research Centre,

Bandra, Mumbai

IES Management College and Research Centre

Bandra, Mumbai

MAY – JUNE 2013

Student’s Declaration

I hereby declare that this report, submitted in partial fulfillment of the requirement for the

award for the Post Graduate Diploma In Management, to IES Management College and

Research Centre is my original work and not used anywhere for award of any degree or

diploma or fellowship or for similar titles or prizes.

I further certify that without any objection or condition subject to the permission of the

company where I did my summer project, I grant the rights to IES Management College

and Research Centre to publish any part of the project if they deem fit in

journals/Magazines and newspapers etc without my permission.

Place : Mumbai

Date : -----------------------------

Signature

Name : Kalpesh Jagtap

Class : PGDM 2012-14

Roll No. : PG-12-021

CERTIFICATE

Certificate from the Faculty Guide

This is to certify that the dissertation submitted in partial fulfillment for the award of

Post Graduate Diploma in Management (PGDM) of IES Management College and

Research Centre is a result of the bonafide research work carried out by Mr. Kalpesh S

Jagtap under my supervision and guidance. No part of this report has been submitted for

award of any other degree, diploma, fellowship or other similar titles or prizes. The

work has also not been published in any journals/Magazines.

Date: Faculty guide

Signature of the Faculty Guide:

Name of Faculty Guide : Prof. Suhas Pai

Place: Mumbai. IES Management College and Research Centre.

Acknowledgement

I would like to take this opportunity to thank all the people who have extended their

support and guidance for making this project, an enriching and memorable experience for

me.

I would like to express my sincere gratitude towards my industry guide Mr. Sameer

Nagle, Regional Manager, GCMMF for giving proper direction and helping at every

stage of my project. His timely co-operation and valuable suggestions helped me to

understand the subject well and undertake the proposed study in fulfilling manner.

Also, I wish to express my gratitude to Mr. Harsh Thakar (Executive Sales)

for their co-operation & knowledge sharing during field survey in South Mumbai region.

I thank Dr. Dinesh Hareolekar, Director and IES MCRC for giving me such a

wonderful opportunity.

I am deeply indebted to my project guide Prof. Suhas Pai, for directing me, providing

clarity, information and guidelines. His suggestions have always valued to each stage of

these project.

Lastly I would like to thank executives working in the various Department of the

organization for their timely help and support in completing the project. Last but not the

least; I would like to take this opportunity to thank all those who contributed directly

and indirectly through suggestions, thoughts and their presence during the completion of

the project.

Thank-you

KALPESH JAGTAP

TABLE OF CONTENTS

CONTENTS PAGE NO.

Chapter I

1.1 Executive Summary 2

1.2 Introduction to the Industry 4

1.3 Introduction to the Company 8

1.4 Introduction to the Project 15

Chapter II

2.1 Objectives 17

2.2 Methodology 18

2.3 Sampling Design and Sample Size 19

2.5 Limitations to the Project 21

Chapter III

3.1 Findings from Observational Field Study 23

3.2 Analysis & Findings: Consumer Perspective 25

3.3 Analysis & Findings: Franchisee Perspective 31

Chapter IV

4.1 Conclusion 51

4.2 Observation and Suggestions 54

4.3 Recommendations 58

4.4 References and Bibliography 59

Chapter I

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

1.1 Executive Summary

The ice-cream market in India is estimated at approximately Rs. 2500 crore in 2012-

13. Growing at approximately 15-20 per cent, it is expected to cross $900 million by

2014-15. The industry also marks the presence of unbranded market for the frozen

dessert which is currently valued at Rs 800 crore. The branded market is estimated at

approximately $200 million and is growing at 20-25 per cent. North and west are the

highest consumption centers accounting for close to 70 per cent of the market.

Increasing incomes, a burgeoning middle class, buoyant economy and widening of

outlook contributes in making ice-cream more affordable and acceptable among

Indian masses.

The key trends are:

Increasing presence of international brands driving consumption in metros

and mini-metros.

Availability of multiple options to consumers — from ice-creams to

traditional kulfis to new forms such as gelatos and flavored yoghurts.

Growing trend of going out to eat ice-cream.

With increasing health consciousness especially among young urban

population, higher focus on fat free, low sugar and pro-biotic variants.

Reducing impact of seasonality on consumption.

Many players ready to increase presence with aggressive expansion plans.

Growing focus on smaller and profitable formats. With a per capita

consumption of only 0.30 litres in a year, ice cream in India has currently not

realised its full potential.

The first phase of the project aimed at enhancing sales of Amul’s frozen yogurt and

its promotion. In order to execute the same, initial activities included visiting the retail

outlets, recording the existing volume of sales & analyzing the emerging patterns in

ice-cream consumption. This helped in arriving at important conclusions regarding

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which flavors were popular, problems faced by the retailers, points of contention

between the retailers & distributors, issues encountered by the consumers and which

outlets were the most popular. Following this, strategies were devised in order to

carry out the 1st part of the project.

The key areas identified were as follows-

Increasing the sales at the existing outlets by implementing extensive

branding and promotion.

Converting the competitor‘s outlets to start stocking & selling Amul products.

Confronting problems between retailers and distributors.

The second phase was conducting the feasibility study of Amul scooping parlours and

the strategies adopted by the franchise to enhance sales. The study also consists of

comparative study of the markets players in ice cream parlour segments which are

growing at a rapid pace.

The study helped us to understand-

Brand perception

Consumer behavior towards particular ice cream parlours

Pricing strategies in scooping parlours through understanding customer values

How to differentiate your product

Occasional offers to entice the customer

Promotional strategies

Amul’s position in market against its competitors

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1.2 Introduction to Industry

India is considered to be the largest milk producer across the globe and accounts for one

fifth of the total global milk production. It constitutes of different sub segments of which

ice cream has seen strong growth in the market. The Indian ice cream sector is a

competitive market with strong competition from the unorganized sector. At a time when

input prices are rising and branded players are forced to increase prices of their products,

unorganized or local players indulge in low quality ingredients and offer products at

cheaper prices. However, the sector is still on a growth path as constant innovation

presents products catering to the varied needs of customers.

The Indian Ice Cream Industry: An Overview

The Indian ice cream industry is currently estimated to be worth Rs. 2,500 crore,

growing at a rate of approximately 12-15%. The ice cream market in India can be

divided into: the branded market and the grey market. The branded market at present is

120 million litres per annum valued at Rs. 1350 crore. The grey market consists of small

local players and cottage industry players. Despite a decent growth rate, the ice cream

industry faces the challenge of low per capita consumption.

India has a per capita ice cream consumption of 300 ml per annum, as against the world

average of 2.3 litres per annum. Country wise the annual consumption is 23 litres in the

US, 18 litres in Australia, 14 litres in Sweden and this is too when India is a country with

hot climate with a young population. Pankaj Chaturvedi, Executive Director of Baskin

Robins, explains “Indian cuisine has a huge range of desserts in its mix. Ice cream

always competes against these for attention.” Besides desserts, ice cream also vies for

attention with other like foods for example in summers with cold drinks, coffee, juice,

etc.

Another trend that is witnessing a change is the seasonal nature of the industry. Having

said that, the peak season for ice cream still remains the summer months of April-June

and dips in the months of November-February. According to the industry players, this

trend especially holds true for the North and the Western parts of India.

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The Ice Cream Business

The ice cream industry has traditionally grown at a healthy rate of 12-15% year-on-year.

The growth in Ice cream industry has been primarily due to strengthening of distribution

network and cold chain infrastructure. Channels such as Mobile Vending Units have

been increasing year on year to reach out to a larger set of consumers. Besides,

consumers also have the choice of trying out varied product offerings from different

brands to keep them excited.

What exactly is defined as „ice cream‟ under the guidelines?

The Prevention of Food Adulteration (PFA) Rules, 1955 define ice cream as “a frozen

product that contains not less than 10% milk fat, 3.5% protein, 36.0% total solids, and

0.5% permitted stabilizer and emulsifier.” Players who deviate from these norms

tactfully call their product "frozen dessert.” However, it is illegal to sell “ice cream”

which has contents below these specified standards.

The basic steps in the manufacturing of ice cream are generally, blending the ingredients,

pasteurization, homogenization, aging the mix, freezing, and hardening. During the

hardening process, the ice cream mixture is incorporated with air. This is done to make

the product light‟ and „creamy‟. This is necessary as without air, ice cream would be

like frozen ice. Now the ice cream can contain a considerable quantity of air, even up to

half of its volume. This perhaps makes ice cream a business with high profit margin.

An ice cream mix (consisting of milk, emulsifier, and sugar and so on) costs about Rs.

60-65 a litre. And in one litre you can add up to one litre of air. Therefore, per litre the

mix would cost you approximately Rs 32. If you take a 150 ml cup, you can make 13

cups of ice cream from one litre of mixture. Calculating on that basis, the cost per cup

comes to about Rs 5. Now add to that Rs 5 worth of packaging cost, electricity, labour,

transportation, advertisement cost etc. It comes to approximately Rs. 10 per cup.

Depending on the variety, the profit margin therefore can go up to even 100%. While for

bigger players, the distribution and advertising costs eats into the profit margins, for

smaller players, it is the volumes that matter.

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The cost for setting up a small scale ice cream plant could come to approximately Rs. 10

Lakh, including the cost of an ice cream plant, labour (3-4), storage freezers, and so on.

This price is not including the land cost. Of late, a number of players who have entered

the segment are playing on innovative aspects, for example, natural flavours made from

fruits. Some players like Mumbai-based Space Dotz are also coming up with newer

technology. A noteworthy innovation was the pro-biotic and low fat ice cream bought

into the market by Amul.

The Challenges

There are several challenges that affect the industry adversely. The industry players not

only face competition from their competitors, but also from other like foods. Though

changing, consumers still consider ice cream as a dessert and a side item.

Moreover, of the ice cream consumption in India, nearly 60% is accounted to by three

flavours of vanilla, strawberry and chocolate. And to be on the safer side, major players

tend play around these flavours only. For big players, regional competition from smaller

players is another major issue.

Another major problem faced by the industry players, especially while expansion, is poor

infrastructure such lack of cold storage and in case of rural penetration, even erratic

power supply becomes an issue. This is especially true for big players.

Besides the presence of other players, another hurdle is the high rent charged for floor

space, especially in malls. This also becomes a problem when they try to expand.

Major Players in the Industry

The Indian Ice cream sector, as mentioned earlier, is divided into branded segment and

grey market segment (which are basically local manufacturers).

Considering the branded segment, the market is dominated by companies like Amul

(GCMMF), Kwality Wall‟s (HUL), Vadilal, Mother Dairy, Cream Bell and other

branded local manufacturers.

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The following Chart Show the picture of their market share.

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1.3 Introduction to the Company

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) is India's largest food

product marketing organisation with annual turnover (2011-12) US$ 2.5 billion. Its daily

milk procurement is approx 13 million lit (peak period) per day from 16,117 village milk

cooperative societies, 17 member unions covering 24 districts, and 3.18

million milk producer members.

It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known

as 'AMUL', which aims to provide remunerative returns to the farmers and also serve the

interest of consumers by providing quality products which are good value for money. Its

success has not only been emulated in India but serves as a model for rest of the World. It

is exclusive marketing organisation of 'Amul' and 'Sagar' branded products. It operates

through 47 Sales Offices and has a dealer network of 5000 dealers and 10 lakh retailers,

one of the largest such networks in India. Its product range comprises milk, milk powder,

health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and

traditional Indian sweets; etc

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading

House" status. Many of our products are available in USA, Gulf Countries, Singapore,

The Philippines, Japan, China and Australia. GCMMF has received the APEDA Award

from Government of India for Excellence in Dairy Product Exports for the last 13 years.

For the year 2009-10, GCMMF has been awarded "Golden Trophy' for its outstanding

export performance and contribution in dairy products sector by APEDA.

For its consistent adherence to quality, customer focus and dependability, GCMMF has

received numerous awards and accolades over the years. It received the Rajiv Gandhi

National Quality Award in1999 in Best of All Category. In 2002 GCMMF bagged

India's Most Respected Company Award instituted by Business World. In 2003, it was

awarded the IMC Ramkrishna Bajaj National Quality Award‟ - 2003 for adopting

noteworthy quality management practices for logistics and procurement.

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GCMMF is the first and only Indian organisation to win topmost International Dairy

Federation Marketing Award for probiotic ice cream launch in 2007.

The Amul brand is not only a product, but also a movement. It is in one way, the

representation of the economic freedom of farmers. It has given farmers the courage to

dream, to hope, to live.

Amul – Advertising

In 1966, Amul hired Sylvester daCunha, then managing director of the advertising

agency AS to design a new ad campaign for Amul Butter. Sylvester daCunha

designed an ad campaign as series of hoardings with topical ads, relating to day-to-

day issues. The campaign was widely popular and earned a Guinness world

record for the longest running ad campaign in the world.

Amul – Mascot

The secret weapon is to Amul’s success is The Amul Mascot, a

cute and chubby girl usually dressed in a polka dot dress,

universally recognizable in India. And the tagline,- Utterly

Butterly Delicious Amul is just as catchy. Together, these two

elements are a Fantastic combination of brand elements for Amul.

The Amul girl was the brainchild of Sylvester daCunha. And get

this, the Amul mascot has been the same since its inception in

1967. That‘s almost 45 years ago. But the Amul girl is still as relevant as ever.

The Beginning

The seeds of this unusual saga were sown more than 65 years back in Anand, a small

town in the state of Gujarat in western India. The exploitative trade practices followed by

the local trade cartel triggered off the cooperative movement. Angered by unfair and

manipulative practices followed by the trade, the farmers of the district approached the

great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to get rid of

middlemen and form their own co-operative, which would have procurement, processing

and marketing under their control.

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In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the

cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji

Desai and Tribhuvandas Patel, they formed their own cooperative in 1946.

This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with

just two village dairy co-operative societies and 247 litres of milk and is today better

known as Amul Dairy. Amul grew from strength to strength thanks to the inspired

leadership of Tribhuvandas Patel, the founder Chairman and the committed

professionalism of Dr. Verghese Kurien, who was entrusted the task of running the dairy

from 1950.

The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach

should become the basis of a National Dairy Development policy. He understood that the

success of Amul could be attributed to four important factors. The farmers owned the

dairy, their elected representatives managed the village societies and the district union as

they employed professionals to operate the dairy and manage its business. Most

importantly, the co-operatives were sensitive to the needs of farmers and responsive to

their demands.

At his instance in 1965 the National Dairy Development Board was set up with the basic

objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as

its Chairman and asked to replicate this model throughout the country.

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GCMMF Overview

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The Product Range

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Amul Ice cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted

of impulse products like sticks, cones, cups as well as take home packs and

institutional/catering packs. Amul ice cream was launched on the platform of „Real Milk.

Real Ice cream‟ given that it is a milk company and the wholesomeness of its products

gives it a competitive advantage.

In 1997, Amul Ice creams entered Mumbai followed by Chennai in 1998 and Kolkata

and Delhi in 2002. Nationally it was rolled out across the country in 1999.

It has combated competition like Walls, Mother Dairy and achieved the No 1 position in

the country. This position was achieved in 2001 and it has continued to remain at the top.

Today the market share of Amul ice cream is 40% share against the 14% market share of

HUL, thus making it 3 times larger than its closest competitor.

Not only has it grown at a phenomenal rate but has added a vast variety of flavours to its

ever growing range. Currently it offers a selection of 220 products. Amul has always

brought newness in its products and the same applies for ice creams.

In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice

Cream, which was a first in India. This range of SUGAR FREE, LOW FAT Diabetic

Delight & ProLife Probiotic Wellness Ice Cream is created for the health conscious.

Amul‟s entry into ice creams is regarded as successful due to the large market share it

was able to capture within a short period of time - due to price differential, quality of

products and of course the brand name.

Cone 120 ml, 100ml, 80 ml & 50 ml

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Cup Cup 125 ml, 100 ml, 80 ml, 90 ml & 40 ml

Plastic Container

liter, 750 ml, 500 ml, 125 ml, 100 ml, 80 ml & 60 ml

Stick 70 ml, 60 ml, 40 ml

Take Home Bulk / catering packs (5 liter, 4 liter), take home packs (2.2 liter, 1.5 liter, 1.25 liter, 1 liter),combo packs (750 ml+750ml Free) and family packs (500 ml, 250 ml)

DISTRIBUTION NETWORK:

Amul have efficient distribution network. It follows downstream channel of

distribution.

Establishment of a direct linkage between milk producers and consumers by

eliminating middlemen

Milk Producers (farmers) control procurement, processing and marketing

Professional management

In Mumbai, Amul has its warehouse in Andheri. From warehouse stock goes

to different distributors. And then distributor supplies stocks to retailers,

caterers, hotels etc., and then finally stock reaches to the end consumer.

1.4 Introduction to the Project

Students of IES Management College and Research Centre were appointed as Summer

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Interns by Amul India (GCMMF). The summer project was divided into two parts, first

being the Observational Field Study and a primary Research Project being the latter.

The Observational Field Study included market visits where students were given

exposure to the real time market situation which accounted for Amul‟s distribution

network. Groups of students were assigned different distributor centres of ice-cream

division along with one Sales Officer to conduct daily market visits. The Market visits

lasted for 20 days since joining, where students were asked to observe and study the

market from the retailer's and consumer's perspective. This study also required the

students to promote and create awareness amongst retailers in the distribution network

about the new product launched named “Flaavyo” under the frozen yoghurt category.

This part of the project also accounted for receiving feedback from retailers regarding the

general Ice-creams and related services to ensure smooth functioning of the orders

during the peak season.

Apart from this, the latter part of the project consisted of a Primary Research held to

know the Franchise strategy and feasibility study of Amul scooping parlours. This study

was conducted by gathering first hand information from various Amul scooping

parlours as well as competitors scooping parlours that would generate information

regarding the strategies used by various franchises in order to increase the footfalls of

the customers. The project outlines the findings and proposes recommendations in-order

to improve the sales and awareness of the product. The Primary research is

accompanied with a secondary research with regards various strategies adopted by the

franchise's to market the ice-cream. Further to this, the entire project is a blend of on-the-

job experience of Amul's distribution strategies and marketing activities.

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Chapter II

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2.1 Objectives

Observational Market Study:

To introduce Amul's newly launched frozen yoghurt named “Flaavyo” to the

existing and potential retailers which form the distribution network for Amul while

educating them for the same. In addition, promoting the sales for this frozen

yoghurt along with the general ice-cream products from Amul's ice-cream basket and

study/observe the buying behaviour of consumers and retailers while

buying/ordering ice-creams.

To study the franchise strategies and feasibility studies of Amul scooping parlours and to

analyse the strategies and schemes being used by the competitors in order to increase the

footfalls of the customers.

Besides, it was the season for peak sales of ice creams, so it was important to analyse the

sales activity for all the products from Amul"s ice cream basket and to find out the issues

that the retailers and the franchisee were facing.

To fulfil this objective of observational market study, it was required to interact with the

franchisee as well as the competitors while the sales and distribution activity was in

progress as well as to have a shrewd observation of franchisee behaviour at the same

time.

Primary Research Project:

To find out the Franchise strategies and feasibility study of Amul scooping parlours so as to

design strategies for their penetration in the market.

• To study the marketing strategies of the Amul Ice Cream Company.

• To study the various products and their prices.

• To study the various plans and schemes.

• To study the preference of those factors which are considerable by the Customer.

• To analyze the satisfaction level of the customer.

• To analyze the market share of Amul Ice Cream Company.

• To show the coverage area of Amul Ice Cream Company.

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2.2 Methodology

Observational Market Study:

The observational market study included personal visits to the local retailers and the ice

cream parlours which were accompanied by Amul‟s sale representative for the initial few

days. For the introduction of Amul Flaavyo, retailers were told about the benefits of

the product and the futuristic potential of Probiotic products.

Retailers were questioned regarding the consumer response to all the general category

ice creams and especially about Amul Flaavyo.

Franchisees were asked regarding the various strategies and schemes which they have

been carrying out in their respective scooping parlours in order to attract customers so as

to increase the sales.

The interaction with these franchisees as well as the retailers served as a great resource to

know about the present issues of the market. Apart from that the market conditions

were observed through personal point of view.

Primary Market Research:

For carrying out this primary market research, two questionnaires were designed, both of

which covered all the aspects needed to complete the exhaustive market study.

One questionnaire was especially designed from Consumers‟ point of view, whereas the

other one covered Franchisees perspective.

In this project a research is conducted on the ICE-CREAM PARLOURS’ on the basis

of to know the parlours’ being preferred and the taste according to the price. The team

visited local markets, shopping malls and ice cream parlours etc. to collect the data from

consumers on personal level.

In order to interact with the retailers, the team personally visited local retail shop and ice

cream parlours owners in western, central and harbour regions of Mumbai.

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2.3 Sampling Design and Sample Size

Sampling methods are classified as either probability or no probability. In probability

samples, each member of the population has a known non zero probability of being

selected. Probability methods include random sampling, systematic sampling, and

stratified sampling. In no probability sampling, members are selected from the

population in some non random manner. These include convenience sampling,

judgment sampling, quota sampling and snowball sampling.

The sampling method used for this project is random sampling method where each

member of the population had an equal chance of being chosen. Though the sampling

was done using random samples, three major areas in Mumbai (Central, Western and

Harbour) were chosen from where the responses were collected. This division of region

constituted three different strata in terms of region. As per this division of regions, an

almost equal number of responses were collected from each region.

RESEARCH SAMPLE DESIGN

Q.1) What is the Research Study about?

ICE-CREAM PARLOURS’

Q.2) Why is the study being made?

The study is being made to investigate taste preference, ice-cream parlours

brand and consumer behavior while consuming the ice-cream, across Mumbai.

Q.3) Where will the study be carried out?

The survey was carried out at Ice-cream parlours in south Mumbai

Q.4) What type of data is required?

Primary as well as secondary data was used for the research.

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Q.5) Where can the data required be found?

Primary data was found by taking surveys and observation.

Secondary data was found through Internet research.

Q.6) what will be the sampling design?

Random Sampling Method.

Q.7) How will the data be analyzed?

The data will be analyzed using frequencies and spss.

Q.8) In what style will the report be prepared?

Analytic and Descriptive.

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2.4 Limitations to the Project

Observational Field Study

The findings are majorly based on personal observation and hence there is a possibility

of biased analysis which is subjective in nature.

Primary Market Research

Region: Since the area under primary research was Mumbai Metropolitan city, therefore

the findings should not be considered as a representation of the entire population and the

diverse geographical factors in India.

Sample size: The sample size of 100 consumers and 15 Franchisees is relatively small

and all the findings are based on this size, as a result all conclusions made and

suggestions recommended are strictly based on the responses of the above mentioned

sample size.

Unequal demographics: The majority of the respondents belonged to the age group of

20 to 30 and hence findings are mostly limited to the same age group.

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Chapter III

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3.1 Findings from Observational Field Study

General Ice Cream Category

Lack of stock: The ice creams which had huge demand in market were mostly

out of stock and because of that retailers were unsatisfied as the peak season was

on.

Pilferage in delivery: Sometimes, the cartons delivered to retailers contained

fewer units as compared to the standard quantity. Some packets were

without any ice-creams inside.

Lack of marketing collaterals: Marketing collaterals like banners, menu

cards, danglers, refrigerator stickers were not made available to retailers

because of which the publicity of ice creams was limited only to the brand name

of Amul.

Lack of personal touch on the part of distributor: Issues of retailers

were not handled personally (and seriously too) by the distributor and hence

repeat orders were difficult to get.

Strong competitors: Direct competitors like Kwality-Walls, Vadilal, Mother

Dairy, and Freshna are focusing on the areas where Amul is lacking to an extent.

For instance:

Heavy advertisement: Almost every alternate retail outlet has posters

displaying Kwality-wall‟s and Mother Dairy products.

Prompt delivery: Product delivery of Kwality-walls and Freshna is

made available within few hours after the order is taken.

Collaterals: Competitors like Mother Dairy are prompt at providing

collaterals like refrigerators etc. thereby enabling retailers to buy their

products.

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Local Substitutes: In low-standard-of-living areas cheaper substitutes like

Flavoured Soda (Rs. 5) were preferred by consumers.

Lack of awareness in variety of products: Retailers themselves do not

know which flavours and varieties of ice creams were provided by Amul. (Few

instances were observed).

Commitments not honoured: It was observed that the distributor

promises the retailers, however does not honour commitments. As a reason

the retailers lose trust in the distributor.

Damaged/expired products not replaced: The damaged and expired

products were not replaced by the distributor, despite several requests from the

retailers.

Order Tracking System: As observed in the market, Kwality Wall's uses

palmtops to note down the orders and to track the salesman.

Amul Flaavyo

Premium Pricing: According to many retailers, the pricing for Flaavyo (Rs. 25)

is

high and because of that consumers prefer other cheaper options. (This behaviour

was observed especially in low standard of living areas, such as chawls.)

Lack of Awareness: Both retailers and consumers were not aware about

Flaavyo.

The special publicity devices used for its promotion came very late in the market.

Delivery Issues: The orders taken by the salesman were not delivered by

the

distributor on time and because of which it was very difficult to get repeat orders

as the retailers were furious about it.

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Brand Name Conflict: The name and design of both Yoghurt and Frozen

Yoghurt

that Amul produces are same which causes confusion amongst both retailers and

consumers.

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3.2 Analysis and findings: Consumer Perspective

A questionnaire consists of list of questions to be asked from the respondents and the

space provided to record the answer / responses. Questionnaire can be used for the

personal interviews, focus groups, mails and telephonic interviews. The choice among

these alternatives is largely determined by the type of information to be obtained and

by the type of respondents from whom it is to be obtained.

The common factor in all varieties of the questionnaire method is this reliance on

verbal responses to question, written or oral.

Questionnaire in the project consists of:

1. Multiple choice questions

2. Dicthomus

Multiple choice questions

Questions of this type offer the respondents an alternative to choose the right answer

among others. It is faster, time saving and less biased. It also simplifies the tabulating

process.

Open end questions

In this type respondents are free to answer in their own words and express the ideas

they think are relevant, such questions are good as first questions or opening

questions. They introduce the subject and obtain general reaction.

Dicthomus

These are the questions which are Boolean in nature. These answers are

straightforward and respondents have to answer them in a straight way. That means

the answer can only be either ‘Yes” or ‘No’.

Data source: Primary and Secondary data

Methodology: Exploratory Method

Research Instruments: Questionnaires and direct interviews

Research Approach: Surveys

Page | 34


Using these instruments and keeping my first phase objective in mind I ran a

preliminary run of my questionnaire with around 50 people from different age

groups in general.

THE QUESTIONAIRE AND RESPECTIVE FINDINGS

1. Gender (Male/Female)

68%

32%

Gender

MaleFemale

2. Age Group

Under 15 15-24 25-35 36-50 above 500

5

10

15

20

25

Series1

Page | 35


3. Occupation

Student, writer, Manager, Sales Software Engineer, Engineer, Software , Engineer it,

Engineer, Business, IT Engineer, , MBA Student, engineer.

Inference:

Most of the respondents are above the age of 50 hence our conclusion till now would be

really narrow.

4. What would you prefer in sweets?

88%

12%

ICE-CREAMSINDIAN SWEETS

5. How much are you willing to spend on an ice cream?

Rs. 0-50 Rs. 50-100 Rs. 100-200 Rs. Above 2000

2

4

6

8

10

12

14

16

18

20

22

38

24

16

Series1

Page | 36


6. How often do you consume ice cream?

Mostly in Summers

Everyday

2 to 5 times a week

Once a week

Rarely

0 2 4 6 8 10 12 14 16 18 20

36

14

24

20

6

Inference:

Well clearly the above graph brings out the obvious thing which is that people

generally like to have ice creams in the summer. But along with that irrespective of

the season the consumption happens atleast once a week which is very prominent.

7. When you buy your ice creams which character do you care mostly?

PriceBrand

FlavorNutrition

Style

0

5

10

15

20

25

30

Series1

Series2

16 22

54

44

Page | 37


8. Which Ice cream Parlour do you visit to have Ice Cream?

Baskin Robbins 16Naturals 36Amul 26Ice CreamWorks 8Swirls 4Hokey Pokey 0Gelato italiano 2Others 8

Baskin Robbins

Naturals Amul Ice Cream Works

Swirls Hokey Pokey

Gelato italiano

Others02468

101214161820

16

36

26

84

0 2

8

Series1

9. Have you Heard or Tasted Amul Frozen Yogurt “Flavayo” ?

Yes 88

No 12

Page | 38


10. Where do you generally prefer to consume ice creams?

Restaurant

Ice cream parlor

Home

Outdoors (road side vendors)

Other

0 5 10 15 20 25 30

10

52

16

22

0

Inference:

Ice cream parlor is the first place which comes to the youths now days when they

think of relishing on their favorite ice creams. The next close place would be outside

probably roaming around and picking up their favorite deserts.

Interacting with customer is the best way to know to understand product image in

customer’s mind.

For Amul’s frozen yogurt Flaavyo target customers are Upper middle class. Yogurt is

new concept for Indian consumer but as customers are becoming more health

conscious market for frozen yogurt is going to grow. Estimation is that it would

expand the market by increasing customer base. Essentially, it would not only convert

non-consumers of ice-cream but also increase the frequency of ice-cream eating.

Page | 39


3.3 Analysis and findings: Franchisee Perspective

An investment in buying a big franchise cannot guarantee the success or failure of any

franchise and neither can the franchisor ever assure the success of franchising

business outlets. In such circumstances selecting a franchise becomes tough. Investing

all your money in buying a big franchise is more of a risk as compared to buying a

low-cost franchise.

Franchised operations in India are increasing by the day. Being geographically vast

and culturally diverse, India offers the most favorable franchising environment. While

companies benefit by having many profit making outlets in different parts of the

country, franchisees in India benefit by being able to generate good returns with little

investment and risk involved. Entrepreneurs are making the most of India’s

franchising market and growing economy by becoming successful franchisees

In the present business scenario, franchising is considered a boon to struggling

entrepreneurs. Kiosks are a type of small centre to sell something or to facilitate the

public at one point. , having a semi-permanent fixture and are generally present within

a larger establishment such as a mall, departmental store etc. The structure of a kiosk

could be designed as a standalone structure like a terminal, or a semi-enclosed booth.

It offers a wide variety along with the advantage of low investment.

Ice-cream kiosks are yet another popular category which is doing wonders in

franchising. Most of the major players in this category have adopted kiosks and

Page | 40


cartwheel formats due to their rising popularity. Kwality Walls, Baskin Robbins,

Vadilal, Amul etc are the main names in this category.

Amul has two formats under which it sells its Ice cream products:-

Amul Preferred outlet (APO)

Amul Scooping ice-cream outlets.

Now the question arise why franchise?

Promoting the brand visibility

Developing direct contact with our customers

Enhancing profits

So to keeping up the latest trend so that one can enjoy ice cream in a cozy and nice

ambience Amul has started Ice Cream Scooping Parlours across the country. Amul

scooping parlours are well received by the customers and are doing upbeat business.

It’s fun time for the entire family.

Some of the recipes on offer at these Parlours are:

Simply Delicious Ice Cream Scoops

Double and Triple Sundaes

Double Swirl/Magic Swirl

Thick Shakes

Amul Kool Drinks

The recipes on offer at these Scooping Parlours are designed by Amul. The maximum

retail price of the products is pre-determined by Amul. The disposables and

consumables are also standardized by Amul and supplied by parties approved by

Amul.

Amul now offers an excellent business opportunity to entrepreneurs who can become

franchisees of the Amul Scooping Parlours and be a part of the growing ice cream

industry with India’s most popular brand. You can earn extremely attractive returns

even with a relatively moderate investment.

Page | 41


Operation

The franchisees shall be supplied with pre-packed Amul Ice-Creams/Amul products

in different varieties and volumes as per their requirement through authorized

wholesale distributors. The franchisees shall purchase necessary toppings, sauces and

consumables from approved vendors/brands. The products to be sold from these

parlours would be as per the recipes and prices approved by Amul.

Agreement

An agreement would be executed between the franchisee and GCMMF Ltd. as per the

standard draft finalized by GCMMF Ltd.

COMPETITOR BRANDS:

Amul ice-cream parlours faces competition from Indian as well as international ice

cream brands. Local parlours also contribute to competition.

International competitor includes

Baskin & robbins

Häagen - Dazs

Swensen's

The Cream & Fudge Factory

Indian competitors include

Naturals

Ice-cream works

Hokey pokey

Gelato italiano

Havmor

Kwality walls

Local parlourss

Zelos and Zest

Page | 42

http://www.haagendazs.com/


FRANCHISE SPECIFICS:-

USP:

• First ever brand which introduced the concept of free tasting of different

flavours.

FOOTFALL:

• On weekdays: 100-150 customers.

• On weekends: 150-20 customers.

NO OF OUTLETS:

• B&R is an international brand with 6433 shops in 42 countries.

• B&R has reached every corner of india with 425 outlets in 95 cities in india.

• B&R has its tie ups with 5 star hotels, top airline companies, leading retail

chains, finest malls and multiplexes in india.

PRODUCT RANGE:

The RANGE OF ITEMS THEY SERVE IN THE PARLOR IS

31 Flavours

• Sundaes

• Ice-cream shakes

• Ice-cream cakes

Page | 43


• Homepacks

• Polar pizzas

They have a variety of toppings which includes three types of dips, they also have

chocolate dipped waffle cone.

PRICE RANGE: Rs 45- Rs 73.

CLASSIFIED FLAVOURS :

• Timeless,

• Divine

• Favourite.

Timeless flavours are the cheapest in price at Rs 45 for a regular scoop, followed by

Divine flavors priced at Rs 63 and lastly favorite flavours priced at Rs 73.

The ice-cream cake is priced at Rs 624 for half a kg.

PROMOTIONS:

• A lot of articles on b&r have been appered in newspapers like midday, saamna,

the economic times, navbharat, regional newspapers like ee sanje, sanje vani.

• They create buzz about their offers on radio.

• They also publish discount coupons in newspapers like mid day.

NO OF STAFF: 3-4 members

MANUFACTURING UNIT: PUNE

SUPPLY PROCUREMENT: Twice a week.

SCHEMES & OFFERS:

• 31% off on purchase of ice-cream worth Rs. 310 and above on every 31st of the

month.

• Half kg free on purchase of half kg ice-cream on selected days.

• 250 liter free on purchase of 250 liter ice-cream on selected days.

• The above 2 schemes are conducted primarily during the rainy and winter

season.

Page | 44


• The big chill offer includes 50% more ice-cream along with 3 toppings of

customer’s choice.

MERCHANDISING:

• In the parlor, on the glass hard top of the refrigerator they have stickers labeled

as best seller flavors and new flavors thus helping the consumers to make a

better purchase decision.

FACILITIES:

For franchise- Baskin-Robbins offer support tools that include Training

Programs, Site Selection, Design and Construction support, Marketing and

Technology.

Franchise information seminars are offered in various states several times a

month in order for potential franchisees to familiarize themselves with the

protocol.

They also have home delivery services with a minimum order of Rs200-250.

They have a gift card, which includes loading the card in the price range of RS

100-2000 and swiping the card while making a purchase.

Page | 45


There are feedback forms available in the parlor, so that customers can express

their level of satisfaction and give suggestions.

On their website they have store locator which enables consumers to locate the

nearest parlor.

EXPANSION PLAN:

BR HAS announced development incentives in 2013 for new franchisees.

These limited time only incentives, some of the steepest the brand has ever

offered, are part of Baskin-Robbins' growth plans to attract new franchisees and

develop with current franchisees through remodels, relocations and expansion.

New 2013 incentives for expansion, remodels and relocation also are available

for a limited time only to existing Baskin-Robbins franchisees who are certified

to grow and meet expansion qualification criteria.

The new design is built around five core elements, including a newly designed

menu board system with an LCD screen; eye-catching ice cream "super

graphic" artwork; a wall that highlights the brand's legacy of flavors; an updated

brand logo; and whimsical pink spoon accents, including spoon-shaped door

handles- the spoon ( the pinky) is brand mascot of BR.

Page | 46



USP:

Naturals are famous for fresh fruit ice creams which includes seasonal fruit ice

creams. Naturals are deeply rooted in tradition.

All ingredients are completely natural and sourced from India.

There are no preservatives, stabilizers and artificial colors or chemicals.

They follow traditional method to make ice-cream. The ice creams contain less

air which makes it rich and creamy. Since the ice-cream is made up of fresh

fruits and they do not use preservatives the shelf life is only 3 days.

FOOTFALL:

The number of customers visiting the ice-cream parlor approximately

WEEKDAYS was 100

WEEKENDS were 150+

NO OF OUTLETS:

Naturals is an Indian brand. They have 70 outlets across the country spread

over 26 cities.

EXPANSION PLAN: Naturals wishes to expand in the north region of India.

PRODUCT RANGE:

They have 20 fresh fruit flavors along with basic flavors like chocolate and

vanilla. They also serve Milkshakes. They have half kg tubs for take away.

PRICE:

Page | 47


The price of 1 scoop of ice-cream in cup/ cone is Rs 45, half kg tubs of any

flavor are sold at a price of Rs 210. Waffle cone lovers have to pay additional

10Rs.

PROMOTIONS:

Naturals do not invest in promotions. The popularity of the brand is through

word of mouth and customer loyalty. The website of naturals is quite interactive

with fun zone which includes ice-cream quiz; choose your flavor according to

your sunsign.

SCHEMES & OFFERS:

For the first time in India, they have introduced the concept of a unique new

'Friday Funday Flavour' where never-before seen flavours are introduced.

Some such flavours include kiwi lime, apple cinnamon, roasted kaju, caramel

walnut etc.

They also introduce flavours according to the festivals.

Eg: they introduced Thandai ice-cream during holi, banana ice-cream during

navratri. The berry festival included 4 new berry flavours like raspberry,

gooseberry, mulberry and strawberry. Wherein customers after buying these 4

flavors got the 5th scoop for free.

FACILITIES: Air conditioned parlor with sitting arrangement.

NO OF STAFF: 6-7 members.

MANUFACTURING UNIT: Kandivali

SUPPLY PROCUREMENT: daily supply of ice-creams.

Page | 48


Swirl's is a concept of ice cream parlours from Kwality Wall’s

that provides fresh, fun and a unique 'made-for-me' consumer

experience. It is for those on the move, who want to enjoy them

and wish to indulge. They are young-hearted temptation

succumbers who are willing to pay a little extra for that special

experience, that special moment.

The first store was incepted in 1994 in Netherlands, and since has been successfully

launched across the globe. There are over 2000 Heart brand stores across the globe. In

India, Swirl's has been operational since 2004 with the opening of its 1st outlet in NCR

region, and thus began its journey of delighting consumers in India. Swirl's parlours

with its great consumer experience, strategic locations and viable business model had

made it an unique and profitable venture for its franchisees.

FRANCHISE SPECIFICS:

USP:

Lots of varieties like Cornetto, Feast

A treat for every occasion

Positioning:

An ice-cream to celebrate happy moments in life

Strong brand name

Excellent advertising and visibility

Good product distribution and availability

Lots of flavors and varieties available

Page | 49



Footfall :

Weekdays 80 to 100

Weekends 100 to 130

No of outlets :

20,000+ outlets spread across Gujarat, Rajasthan, Maharashtra & Madhya pradesh.

Product range –

they have a huge range of products including sugarless, blockbuster, candies, novelties,

sundaes, topo cones, cools ups, roll cuts, ice cream cakes, family packs, ice-cream

shakes, ice-cream floats etc. they have more than 65+ flavors.

Price range:

Rs.25 – Rs.55 for a scoop of ice-cream.

Promotions - Through Newspapers.

Schemes & offers –

“Thursday temptation” an offer where you get an ice-cream free on purchase of

one ice-cream from a selected range of flavors of the month.

For take away, buy 5 scoops and get 1 scoop free.

They launch innovative flavors as the flavors of the month.

FACILITIES:

They provide outdoor catering services,

Free home delivery, on website they have store locator.

No of staff – 3

Manufacturing unit – Ahmadabad

Supply procurement –daily supply of ice-cream to the parlors.

There are HAV FUNN PARLOURS which serve ice-creams and snacks like chana

puri, samosa, fries etc

Page | 50


FRANCHISE SPECIFICS:

Products:

Page | 51


FESTIVE SCHEMES:

Page | 52



USP - Freedom to create your own ice-cream live on cold stone slab.

Footfall – Weekdays 60-70 consumers Weekend 100-150 consumers

No of outlets - 15 outlets spread across 4 cities.

Expansion plan –plans to expand in Delhi & Andhra Pradesh

Product range - Stone creations, shakes, sodas, mix ins.

Price – Rs60 to Rs160

Promotion - Word of mouth.

Schemes & offers - If someone has a Vodafone simcard, he gets 1 on 1 free, from any flavour any volume.

No of staff – 4

Manufacturing unit – located at kurla

Supply procurement – don’t have any particular pattern as such.

SERVICES : Catering( even jain category )

Page | 53


USP

Serves INNOVATIVE FLAVOURS of ice-cream with supreme QUALITY.

99.9% FAT FREE SORBETTOS and 98% DIET LITE SUGAR FREE OPTIONS.

Thus target audience includes health conscious and diabetics.

Footfall – Weekdays 50 – 60 customers visiting the parlor.

Weekends >100

NO OF OUTLETS – 30 in Mumbai itself. 84 outlets situated in 7 cities.

Expansion plan –plans for expanding its presence by opening more than 60

outlets pan India. The new outlets to be added in company’s network will be a

mix of company owned and franchised outlets.

The brand will be targeting Tier I cities initially, and later seek further

expansion on the Tier II and III cities. The company has not disclosed the

capital outlay for the proposed expansion as yet.

At present, the Gelato chain has around 60 outlets in major cities across India

including Delhi, Mumbai, Kolkata, Pune,Hyderabad and Bengaluru.

Product range – the product range includes gelatos, sorbettos, cheesecakes, kulfi and

yoghurt.

Page | 54


SCHEMES:

Flavor of the month of gelato italiano is a very famous offer where they serve a

scoop of gelato on every 1st day of the month for just Rs 15/-

They introduced the mango festival during summers where 4 new flavors were

launched like mango kulfi, mango yoghurt, real alphonso and mango vanilla

treat.

They also have one day schemes like rs 200 gelato for just half the price.

There is a license to chill card, wherein the customers can grab a free scoop of

gelato on every alternate purchase.

Price – Rs.35 to Rs.95

The varieties are categorized as popular, premium, supreme and ultimate.

Popular category priced at Rs 35, premium priced at Rs 55, supreme at 75 and

ultimate at Rs 95.

Promotion – through Newpapers.

No of staff – 2 to 3

Manufacturing unit – is located at Marol

Supply procurement – daily supply of fresh gelato.

Page | 55


USP - 100% veg

A Range of interesting flavours.

NO OF OUTLETS IN MUMBAI- 7

NO OF STAFF : 8-9 members.

NO OF CUSTOMERS VISITING: ON WEEKDAYS : 60-70

ON WEEKENDS: 100+

PRICE RANGE: Rs29- Rs 92 for a scoop of ice-cream.

PROMOTION: Internet , Newspaper like Midday.

FACILITIES: Wifi enabled parlors with sitting space, home

Page | 56


Delivery services.

Schemes –

Paisa vasool offer at RS 28.(Rs.58’s cup in Rs. 28),

15% discount for college students, they introduced the chocolate festival where

they launched 12 new chocolate flavors, special offers like buy 2 cassata and get

the 3rd free, festival offers on rakshabandhan on tubs and cassata cakes.

They also hold ice-cream competitions on the 5th of every month.

The ice-cream competition is named as “BEFORE I DIE FIRST”, where the

contestants have to pay an entry free and finish a bowl of 18-19 scoops of ice-

creams. The first 3 contestants to finish the bowl get gift hampers, ice-cream

works t shirt and other goodies.

PRODUCT RANGE: Cassata cakes, yoghurt, shakes, sodas, sundaes, different

flavors scoop. They have categorized the scoops into different ranges namely:

PREMIUM RANGE

HANDMADE RANGE

THE BLACK RANGE

INDIAN RANGE

Supply procurement –on Daily basis.

Manufacturing unit – at Worli

Expansion plan – Thane,andheri, colaba this year

Page | 57


USP

- Serves 94% Fat free Gelato and provides an option to create your Gelato on '' COLD

STONE'' facility.

It serves the freshest Gelato, produced in the parlour itself.

NO OF OUTLETS: 2

FOOTFALL: ON WEEKDAYS: 150

ON WEEKEND: >250

Expansion plan – at Ghatkopar R city

Services -

Takes Reservations

Walk-Ins Welcome

Take aways.

Free Home Delivery

Outdoor Seating arrangement.

Product range-

Gelatos, gelato shakes, tubs, cold stone creations.

Page | 58


Promotion -Word of mouth, Facebook, provides discount coupons on snapdeal.com

Price – 50 to 120

No of staff – 7 people total

Manufacturing unit – at dadar

Supply procurement – twice in a week

Page | 59


Chapter IV

Page | 60


4.1 Conclusion

From the survey conducted, we can conclude that ICE-CREAMS win the race in the

sweets category as compared to traditional Indian sweets, cakes, chocolates. Because of

companies past efforts some customers do know about the yogurt. Only few of them

know that it’s good for the health & helps in digestion & improve the mineral and

vitamin absorption from diet.

But still there is a huge scope of introducing new flavors and attracting more

customers. In summers it’s good to have ice cream because it taste good as well as the

impact of summer season make them fell in love with this delicious desert.

According to the survey, it can be concluded that the most preferred ice cream parlours

was “NATURALS” and then AMUL parlours. Therefore natural`s is our nearest

competitors in parlour segment.

The most preferred flavor was BASIC ice-cream flavors such as chocolate, strawberry,

vanilla, butterscotch etc. Therefore we should launch frozen yoghurt in basic flavours.

The consumption of frozen yoghurt amongst the respondents was during monthly basis

and rarely.

Coming to the awareness of frozen yoghurt, we got a 50-50 response. Hence our task is

to make all customers aware about what frozen yoghurt is. Those who were aware

about frozen yoghurt were also aware that it is good for the health.

One important aspect here is “TOMA”- top of mind awareness. When we asked the

customers the name of the brand which first comes to their mind when we say frozen

yoghurt, most of the customers were blank. We can conclude that no yoghurt brand has

created a space in the mind of customers yet. So AMUL`s frozen yoghurt stands a great

chance to become customers priority in the frozen yogurt section.

Page | 61


After tasting VANILLA FLAAVYO, most of the customers liked it very much. They

rated the frozen yoghurt as good on the various parameters like availability, taste, price

and health benefit.

Coming to the demographics, children didn’t prefer frozen yoghurt; middle aged males

preferred it and also appreciated it.

In the month of May, “the flavor was vanilla, so the sales were less as compared to last

month when the flavor was mango. Some customers denied to have vanilla and opted

for other flavors.

In the next month the flavour was chocolate ice cream which was preferred by most of

the customers because it was offered at a cost price of Rs.15 whereas on the other days

it cost them Rs.25 for a scoop.

Page | 62


4.2 Observations and Suggestion

HYGIENE:

It is mandatory for the franchise holders to maintain cleanliness and hygiene in the ice-

cream parlor. Risk of food poisoning can result from poor hygiene practices in the

handling and serving of ice-cream scoops. Pre-wrapped ice-cream cones, tubs, sticks

and cups are not much prone to bacterial infestation.

Personal hygiene of ice-cream handlers is important in preventing the spread of

bacteria. Ideally the handlers should be clean and tidy, wear clean protective clothing,

wear hair net/hat to keep hair neat and tidy, keep finger nails short and clean, keep all

cuts, sores or grazes covered, do not cough or sneeze around food products, wash hands

regularly, wear gloves where necessary, and do not serve ice-cream if they are ill.

The ice-cream handler must store all ingredients and supplies in the correct location and

at the correct temperature. On visiting the various parlors of different brands it can be

concluded that high hygiene standards were followed.

Some observations are as follows:

Ingredients like toppings, waffle cones, chocolate waffle cones , chocolate

syrups were stored in clean containers. Chocolate waffle cones were stored in

deep freezer.

The ice-cream handlers were clean and well uniformed.

Each parlor had a dustbin inside/ outside the parlor.

The tasting spoons were discarded by the customers in a bowl nearby the tasting

counter of ice-creams.

Some parlors had installed flying insect killer devices to safeguard the customers from

diseases like malaria.

Page | 63


DISPLAY:-

Amul ice-cream parlors lag behind in terms of display. The range of pre wrapped ice-

creams like tubs, cones, Cups, sticks, party packs lie in the deep freezers, there is no

board on the wall displaying different varieties of ice-cream available at the parlor.

New launched flavors are not promoted and displayed in the ice-cream parlor. Schemes

and offers are also not known to customers.

In the above picture, “ Scoop at Rs 15 on 15th” is written in minimized form. None of

the customers entering the parlor noticed this scheme. Hence the display of the schemes

should be attractive and easily readable.

NEW FLAVORS:

More than the brand, ambience, facilities of the parlor, “FLAVORS” of the ice-creams

served in a particular parlor attracts the consumers. Consumers always like to choose

from a huge range of flavors. Competitor brands are introducing new and innovative

flavors to attract customers. On amul website, we can have “ suggest a flavor” column

where consumers will give in their inputs, the innovative flavors which they wish to

consume. This will help Amul come up with new ideas of flavors.

Page | 64


Some suggestions for new flavors: Indian sweets- India has a huge range of

traditional sweets, using these sweets in ice-creams is a good idea. Amul already has

Jalebi ice-cream, it can experiment with other sweets too like gajar halwa ice-cream.

Chai ice-cream which would contain Indian tea combined with fruit flavours.

Pumpkin ice-cream

Bourbon and cornflakes ice-cream

Fig and cheese ice-cream

Sweetcorn ice-cream

Chilli ice-cream - combination of mild chilles and herb like mint.

Coffee and cherry ice-cream

Neembu ice-cream for sour lovers

PRODUCT PACKS:

Ice-cream scoops in Amul parlors are served in local plastic cups. Whereas competitors

have standard branded cups with the brands logo and background color on the cups.

Amul should provide the parlors with cups having Amul’s logo. Also the spoons should

be standard for all Amul parlors. Customers had complains with the low quality plastic

spoons which broke easily.

Pre wrapped ice-creams like cones, cups, tubs, sticks are properly packed.

SERVICES TO FRANCHISE HOLDERS OF AMUL ICE-CREAM PARLOR:

Damage settlement: Replacement of damaged ice-cream cones, cups, sticks and

other varieties should be done regularly.

Updated price list of items should be provided to all the Amul ice-cream parlors

on time.

The franchise holder should be informed about all the schemes and discounts

through mail, telephone.

The ordered items should be delivered on time.

There should be a consistent availability of all the varieties and flavors of ice-

cream. There shouldn’t be a shortage of supply.

Page | 65


Deep freezer issues such as leakage, damage, no cooling , exchange etc should

be resolved instantly.

Updated collaterals should be provided to the ice-cream parlors as the brand

changes its logo, color, packaging etc.

Area wise sales executives of Amul should visit the parlors at least twice a year

to know the working status, problems faced by the franchise holder and their

satisfaction with the franchise of Amul.

Page | 66


4.3 Recommendations

LED's should be provided in scooping parlours, to educate the customers

about ice-creams which are made of vegetable oil and amul ice-creams made

up of pure milk.

AMUL ice-cream website is very weak in comparison to the competitors. The

website could contain the following:

a. Store locater along with map.

b. Feedback forms, customer satisfaction survey.

Establish fun zone area within the parlour where fun activities like games, ice-

cream quiz, flavour recommendation according to customers sunsign can be

organised.

Distribution of gift vouchers or gift cards at scooping parlours.

Amul should start off home delivery and catering facilities.

They should come up with new stores in non metro cities

Keep promotional events in Malls

Amul should have contests in their scooping Parlours

Page | 67


4.4 References and Bibliography

Books Referred

Kothari C.R., Research Methodology : Methods & Techniques, 2nd

edition, New Age International Publishers, 2007

Bryman Bell, Business Research Methods, 3rd edition, Oxford

University Press, 2011.

Sites used during the questionnaire preparation and introduction to ice-creams.

www.google.com

www.baskinrobbbinsindia.com

www.amulice-cream.in

www.mid-day.com/lifestyle/2012/mar/ice-creamworks

www.wikipedia.org/wiki/gelato

www.wikipedia.org/wiki/ice_cream

www.naturalice-creams.in

www.hokeypokey.in

http://www.amul.com/m/39th-annual-general-body-meeting-held-on-25th-

june-2013

http://www.business-standard.com/article/companies/amul-s-fy13-turnover-to-

touch-rs-13-750-cr-113040200542_1.html

http://articles.economictimes.indiatimes.com/2013-04-02/news/

38218051_1_sales-revenue-rs-turnover

http://www.hindustantimes.com/business-news/CorporateNews/Amul-

romances-sleepy-towns-with-ice-cream-parlours/Article1-989154.aspx

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http://www.hindustantimes.com/business-news/CorporateNews/Amul-romances-sleepy-towns-with-ice-cream-parlours/Article1-989154.aspx

http://www.hindustantimes.com/business-news/CorporateNews/Amul-romances-sleepy-towns-with-ice-cream-parlours/Article1-989154.aspx

http://articles.economictimes.indiatimes.com/2013-04-02/news/38218051_1_sales-revenue-rs-turnover

http://articles.economictimes.indiatimes.com/2013-04-02/news/38218051_1_sales-revenue-rs-turnover

http://www.amul.com/m/39th-annual-general-body-meeting-held-on-25th-june-2013

http://www.amul.com/m/39th-annual-general-body-meeting-held-on-25th-june-2013

http://www.hokeypokey.in/

http://www.naturalicecreams.in/

http://www.wikipedia.org/wiki/ice_cream

http://www.wikipedia.org/wiki/gelato

http://www.mid-day.com/lifestyle/2012/mar/icecreamworks

http://www.amulicecream.in/

http://www.baskinrobbbinsindia.com/

http://www.google.com/

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