A REPORT ON GENERAL ICE CREAM CONSUMPTION BEHAVIORS AND A COMPARATIVE ANALYSIS OF AMUL ICE CREAM SCOOPING PARLORS - Saurabh Anand (10BSPHH010698)
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A REPORT
ON
GENERAL ICE CREAM CONSUMPTION
BEHAVIORS
AND
A COMPARATIVE ANALYSIS
OF
AMUL ICE CREAM SCOOPING PARLORS
By
Saurabh Anand (10BSPHH010698)
2
A REPORT
ON
GENERAL ICE CREAM CONSUMPTION
BEHAVIORS
AND
A COMPARATIVE ANALYSIS OF
AMUL ICE CREAM SCOOPING PARLORS
By
Saurabh Anand (10BSPHH010698)
A report submitted in partial fulfillment of
The requirements of
MBA Program of
IBS Hyderabad
Distribution list
AMUL
Gujarat Co-operative Milk Marketing Federation Limited
3
Date of submission 16th April
TABLE OF CONTENTS
1. ABSTRACT……………………………………………………….. 4
2. INTORDUCTION………………………………………………….5
3. MAIN TEXT……………………………………………………….13
4. FINDINGS…………………………………………………………28
5. CONCLUSIONS…………………………………………………..29
6. PLANS FOR COMPLETION OF PROJECT……………………..30
7. LIMITATIONS…………………………………………………….31
8. REFERENCES…………………………………………………….324
ABSTRACT
OBJECTIVE:
1. Understanding, learning and interpreting the consumer’s behaviors attitudes and perceptions
towards ice-creams in general.
2. Analyzing if Amul’s strategy with respect to its scooping parlors is in the correct direction.
3. A comparative analysis on competitors compared to Amul scooping parlors
4. Finally to help the company to attain all the goals and customers expectations (if something not
attained yet) and come up with ideas and suggestions accordingly for the overall growth of the
company according to the new findings.
DESIGN/METHODOLOGY/APPROACH:
This is an analytical study based mainly on the primary and secondary data collected through various
channels such as questionnaires, various previous AMUL’s studies and personal interviews. The
questionnaire will be administered on general people or common mass from various age groups and also
among the employees, partners and clients of various AMUL franchises and regional offices. The
questionnaire has been designed on the basis of interviews and guidance’s provided by various qualified
personnel and appropriate literature.
EXPECTED FINDINGS
The results expected by this paper would be to identify and address customer perceptions, general
behaviors and their changing needs towards consumption of ice creams. Furthermore we will be able to
elaborate AMUL’s stand with respect to its competitors on various aspects and hence where it is heading
with its scooping parlors.
PRACTICAL IMPLICATIONS
In order to achieving higher levels of quality service in the ice cream industry and ensure customer
satisfaction, retention ,quality and breand equity AMUL must understand the main factors, behaviors
,perceptions ,requirements and changing customer needs towards ice creams consumption. AMUL
scooping parlors are a new in this league. The Indian market is growing at a steady rate of 10-15% per
year and the competition is intense as global players are also trying to tap in too. Owing to the increasing
competition in keeping itself upbeat with the market and changing needs is a very important part.
ORIGINALITY/VALUE5
This paper makes a useful contribution as what are the recent changing needs in the ice cream market as a
general and where are amul ice cream parlors with respect to the changing customers perception and
satisfaction.
INTRODUCTION
MARKETING:
The chartered institute of marketing defines marketing as the “The management process responsible for
identifying, anticipating and satisfying customer requirement profitably.”
INDUSTRY PROFILE:
Dairy is a place where handling of milk and milk products is done. Dairy technology is the branch of
dairy science which deals with processing of milk and manufacturing of their products on a large scale
basis.
Now INDIA is one of the largest producers of milk and value-added milk products in the world. During
1997-98, with the help of co-operatives many part of the state had 60 milk processing plant with the
capacity of processing 5.8 million liters per day. Also compared to other countries like U.S and Japan,
India takes the pleasure of producing milk at lower cost.
The Ice Cream Industry: An Overview
Looking at some industry facts first. In 2007, the global market of ice creams was pegged at $61.6 billion
in terms of retail value or 15 billion liters in terms of volume. Of this, the Asia-Pacific ice cream market
was worth $13 billion in terms of retail value and 5,128 million liters in terms of volume. Coming to India,
the Indian ice cream industry is currently estimated to be worth Rs. 2,000 crores, growing at a rate of
approximately 12%. RS Sodhi, Chief General Manager of Gujarat Co-operative Milk Marketing
(GCMMF), the makers of ‘Amul,’ explains, “The ice cream market in India can be divided into: the
branded market and the grey market. The branded market at present is 100 million liters per annum valued
at Rs. 800 crores. The grey market consists of small local players and cottage industry players.” In 2008-
09, in the branded ice cream market, Amul held the number one spot, with a market share or 38%,
followed by Kwality Walls at 14%, Vadilal at 12% and Mother Diary at 8%.
Despite a decent growth rate, the ice cream industry faces the challenge of low per capita consumption.
Industry at a glance
The ice cream industry in India is worth Rs. 2,000 crores
The industry can be divided into the branded market and the unbranded market. The branded market at
present is 100 million liters per annum valued at Rs. 800 crores
In 2008-09, in the branded ice cream market, Amul held the number one spot, with a market share or6 38%, followed by Kwality Walls at 14%, Vadilal at 12% and Mother Diary at 8% The per capita consumption of ice cream in India is approximately 300 ml, as against the world average of 2.3 liters per annum Vanilla, Strawberry and Chocolate together constitute approximately 60% of the market. The per capita consumption of ice creams in India is just 300 ml per annum, compared to 22 liters in the US, 18 liters in Australia, 14 liters in Sweden. India is a way too far behind even in terms of the world average per capita ice cream consumption of 2.3 liters per annum. This 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. According to Pankaj Chaturvedi, “The variation in sales for Baskin Robins can range from 15–30% from season to off season depending on geography and brand. The Ice Cream Business The ice cream industry has traditionally grown at a healthy rate of 12% 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
7 larger set of consumers. Besides, consumers also have the choice of trying out varied product offerings from different brands to keep them excited,” Paul Thachil, CEO – Dairy & Foods, Mother Dairy Fruit & Vegetable. 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 have contents below these specified standards. The basic steps in the manufacturing of ice cream are generally first blending the ingredients, pasteurization, homogenization, aging the mix, freezing, and hardening. Now, 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. Manish Vithalani of Space Dotz informs, “A ice cream mix (consisting of milk, emulsifier, sugar and so on) costs about Rs. 60-65 a liter. And in one liter you can add up to one litre of air. Therefore, per liter the mix would cost you approximately Rs 32. If you take an 150 ml cup, you can make 13 cups of ice cream from one liter of mixture. Calculating on that basis, the per cup costing comes to about Rs 5. Now add to that Rs 5 worth of packaging cost, electricity, labor, 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. Besides selling their products through kiosks, parlors and push carts, a significant part of the revenue comes from corporate sales. Says Pankaj Chaturvedi, “About 55% of our business is contributed by exclusive ice cream parlors and kiosks while 30% is from corporate or food service (as we categorize it) sales. The rest comes in from retail and exports.” A chef at a prominent five star Delhi hotel tells us their banquet section itself buys 6 gallons of ice cream from manufacturers on a daily basis. The demand, he informs, goes up to 10 gallons during peak season. THE CHALLENGES There are several challenges that affect the industry adversely. As mentioned earlier, 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. Sharing his experience, Sidharth Jaiswal of Joos, a juice bar chain, says, “We had introduced ice creams on an experimental basis in our juice outlets in Ahmadabad. We observed that consumers ordered ice creams as a side item or only when they were accompanied by children. We eventually decided not to move ahead with it.” Moreover, of the ice cream consumption in India, nearly 60% is accounted to by three flavors of vanilla, strawberry and chocolate. And to be on the safer side, major players tend play around these flavors 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.
8 This is especially true for big players. Manish Vithalani says, “Besides the presence of other players, another hurdle is the the high rent charged for floor space, especially in malls. This also becomes a problem when we try to expand.” BRAND PROFILE: It was registered on December 14, 1946. It is the brand name for 2 million farmers. It is managed by Gujarat co-operative milk marketing federation Ltd. (GCMMF). Amul’s product range includes Amul butter, Amul milk powder, Amul ghee, Amul spray, Amul cheese, Amul chocolates, Amul shrikhand, Amul ice cream, Nutramul, Amul milk and amulya. Its turnover is Rs. 67.11 billion in 2008-2009. Many products of Amul are also available in USA, Gulf Countries and Singapore. Their future plan, appropriately titled “Mission 2020”, envisages that the dairy cooperative of Gujarat will have a group turnover of Rs. 27000 crores by the year 2020. Amul is an “Umbrella brand” means common brand for most product categories. Now Amul is directly entering in to retail through “Amul utterly Delicious” parlours in the cities like Ahmedabad, Bangalore, Delhi, Mumbai, Hyderabad and Surat. It has planned to let out franchisee to manage those large chains of parlours throughout the country. The brand name Amul means “AMULYA”. This word derived form the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”). GCMMF: AN OVERVIEW Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat 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. Members: 13 district cooperative milk producers' Union No. of Producer Members: 2.9 million No. of Village Societies: 15,322
9 Total Milk handling capacity: 13.07 million litres per day Milk collection (Total - 2009-10): 3.32 billion litres Milk collection (Daily Average 2009-10): 9.10 million litres Milk Drying Capacity: 647 Mts. per day Cattlefeed manufacturing Capacity: 3740 Mts per day INDIA - A BOOMING ICE CREAM MARKET AND AMUL ICE CREAMS Today ice creams are equally popular among children and grown-ups. Eating ice creams have become an occasion for celebration. In India alone, the organised ice cream industry has a turnover of around Rs. 1000 Cr. and the market is witnessing a booming growth rate of 12-15% annually. Per capita consumption of ice creams in India is around 250 ml compared to 23 litres in the US, 18 litres in Australia, 14 litres in Sweden and 800 ml even in neighbouring Pakistan. This presents a huge opportunity for organised players in the ice cream industry. So as to capitalize on the growing ice cream industry, Amul launched theirs first in 1996.Henceforth Amul Ice Creams have consistently combated competition like Kwality Walls, Mother Dairy and other brands. The customers have shown huge faith in the quality of Amul Ice Creams and today it’s the No. 1 ice cream brand of the country(36% share). Nearly 4 times as large as its nearest competitor, it is now the only national brand. Amul has been able to write such a success story because of the quality of its products, economic pricing and the belief consumers have in the brand. AMUL SCOOPING PARLORS: Seize the opportunity to partner with India’s leading Ice Cream Brand Since the per capita income, needs and tastes kept on changing, the ways people consumed ice creams also did. Today people like to spend quality time with their family outside the home. With increasing income they love to spoil themselves with a variety of choices. Hence keeping up with the latest trend Amul has started Ice Cream Scooping Parlors across the country. One can enjoy world class ice creams, Sundaes, shakes and other ice cream concoctions in a cozy and nice ambience at these parlors. It’s fun time for the entire family. Currently Amul has Scooping Parlours across the country including Mumbai, Chennai, Delhi, Bangaluru, Thane, Pune, Kolkata, Nagpur, Ahmedabad and Coimbatore. Apart from these, there are more Amul Scooping Parlours coming up in different parts of the country. Requirements of franchisee Brand Elements of the Scooping Parlour • Franchisee requires around 300 Sq. Ft. space at a premium location.
10
• Air-conditioned parlour with toughened glass installation at the entrance
• Wall claddings with Green Lam Laminates of fiesta colour (Saffron Hue)
• Signature A made from stainless steel at the entrance
• Neon sign with Amul in acrylic letters as per standard specifications
• Interiors with vinyl posters & price list
• POS with retailing software
Investment Required
An owned or a leased air-conditioned shop of 300 sq.ft. at a prominent location
Refundable Brand Deposit Rs. 50,000/- #
Renovation & interiors Rs. 75,000/-
Equipment Rs. 200,000/-
Working Capital Rs. 25,000/-
Total Rs. 350,000/- *
* Approximate Figures
# Rs.1,00,000/- Rs.50,000/-. Offer valid for limited period.
Equipments Required
Equipments Cost in Rs.
Scooping Cabinet with SS bowls 30,000
Waffle Cone Machine 13,000
Mixer/Grinder 3,000
Cone Holder/Toppings Tray for placing Sauces, Nuts etc. 1,000
Visi-Coolers 28,000
Deep-Freezers - 2 Nos. 50,000
POS Machine 25,000
Total Cost 150,000
ROI - Indicative Statement
Total in Rs.
Sales (Value per month) 150,000
Gross Margins Earned 75,000
Less: Electricity 5,000
Less: Rentals 20,000
Less: Manpower 10,000
Net Profit per month 40,000
NOW this brings us to our project .since this is a 2000 corers industry and there are international players
involved, the competition has become fierce. the industry is growing at a rate of 12-15% per annum.11 AMUL still holds the ground as the no 1in the market for consumption but the visibility of amul ice parlors is not as good as compared to other competitors. Recently Baskin Robins conducted a study on ice cream trends in india so as to cater to more common mass and expand its target base. Mother dairy is conducted huge studies and even vadilal and kwality walls are not leaving any stones unturned in the market. So hence our project starts about the basic consumption habits of ice creams in general, the common perceptions and attitudes of people towards ice creams and their favorite flavors . how they want to have their ice cream, alone or with someone, outdoors or indoors. Hence ,a comparative analysis of Amul scooping parlors with its competitors along with its operations efficiency and quality. The project is a three stage process: In the First phase we will try to understand the overall consuming behaviors of consumers towards ice creams. We will analyze consumers on areas like pre- purchase (brand image, health issues and suitability), purchase (service, price and environment) and post- purchase (quality satisfaction and store experience) in general. Pre-purchase (brand image, suitability and health issues) Brand image of the ice cream - The consumer considers the kind of image the brand that he is going to purchase depicts. It has to suit certain status symbol, quality and any other personal brand requirements that the consumer may have. It is important that the brand maintains goodwill, satisfactory to the consumer Health Issue to ice creams relating - The modern consumer is highly health conscious and is becoming aware of the rising health issues and its impacts. It is important that the brand satisfies this need of the consumers and ensures health related gains rather than loss. About which we will be discussing further in this report. Suitability – The product should suit the taste, flavor and ingredients that is in line with the Consumers needs and wants. Purchase (service, price and environment) Price - Price should be affordable and the product should provide money’s worth in terms of quality, quantity and consumer satisfaction as kids also form a main segment of our section. A proper care should be given as far as pricing is concerned. Environment - The environment should be such that the consumer wants to stay there and spend some quality and quantity time. Service- The service should be fast so that the customer waiting time should be less and leads to their satisfaction and results in formation of good brand image. Post-purchase (Quality, Satisfaction, Store experience) Quality of ice cream – the quality of the ice cream delivered certainly plays a vital role in determining whether the customer will re purchase the brand or not. The quality and taste of ice
12
cream determines the satisfaction level of the customer and hence plays a vital role in
determining his approach towards the product.
Satisfaction from ice cream- well satisfaction is a holistic picture the total experience of the customer with
the brand considering various factors as mentioned above and then finally arriving at a conclusion saying
whether he is satisfied or not from the product.
Primary data will be used for this analysis. Some of the questions would be like. :-
1. What is your favorite brand in ice cream?
2. What makes you like that ice cream?
3. How much importance does price play in your choice of brand of ice cream?
4. To what extent do the advertisements and offers influence your purchase?
5. What is the only thing that an ice cream must have according to you?
This will complete our first phase.
Second phase will examine the Amul’s strategy towards it scooping parlors. The strategies can be short
term or long term as in what Amul has in mind for their scooping parlors and where and how they want to
see it. Hence draw a comparative analysis picture with its competitors with the aid of questionnaires or
interviews (mainly primary data)
The final phase we will see the Amuls scooping parlors experience as a whole keeping in view with all its
dimensions like the efficiency and quality of service etc. and draw out conclusion or suggestions for the
overall growth of the company.
MAIN TEXT
(Progress of the project till date)
OBJECTIVE
Our main aim is in Understanding, learning and interpreting the consumer’s behaviors attitudes and
perceptions towards ice-creams in general and then analyzing if Amul’s strategy with respect to its
scooping parlors is in the correct direction along with a comparative analysis on its competitors .13
MARKET SEGMENTATION OF AMUL:
Demographic factor: Demographic variables of Amul target market are mostly age and income based.
Amul have created many sorts of ice cream to cater all age groups. It has pro-biotic sugar free ice cream
which is aimed to hit diabetic customer and the people aged than 45. If we consider the income
segmentation, Amul is targeting upper, middle and lower middle income group and also lower group
people by selling ice creams in stick at low cost.
Age Under 6 years, 6-11, 12-19, 20-34, 35-49, 50-60, 60+
Family size Young, single: young, married, no children: young, married,
Youngest child under 6: Young, married, youngest child under 6 Or over: older,
married, with children: older, married, no children under 18: older, single: other14
Gender Male, female
Income Low (up to 40,000 p.a), lower middle (Rs.40,001 – 80,000 p.a), middle
(Rs.80,001 – 1, 20,000 p.a), upper middle (Rs.1,20,001 – 1,60,000 p.a) and high
(above Rs. 1,60,000)
Occupation Unskilled worker, skilled worker, petty traders, shop owners,
businessman/industrialist, self employed (professional, clerical/salesperson,
supervisory level, officers/junior executives, middle/senior executives.
Education Illiterate, school up to 4 years, school between 5 and 9 years, ssc/hsc,
nongraduate, graduate/postgraduate (general), graduate/postgraduate
(professional)
Socio-Economic Classification (SEC) of Amul Ice cream is as follows:
Occupation Education
Illiterat
e School
5-9 Non Graduate / post Graduate / post15 MARKETING MIX OF AMUL Mostly people or businesses will focus on Price, Place, Promotion and Product as their elements of marketing mix. But now the marketing mix is increased with Five P’s and also to Seven P’s. Regarding Amul we are going to mostly concentrate with Four P’s i.e. Price, Place, Promotion and Product. PRODUCT: Amul’s product development was driven both by the spirit of the cooperative system and profitability. Being a cattle farmer’s cooperative, Amul committed to buy all the milk which is offered by the farmer. Today Amul is a symbol of many things. They are the vast genesis of a vast co-operative network. They are the marketing Savvy of a farmer’s organization. Their products are Butter, Milk drinks, Powder milk, Fresh milk, Cheese, Desserts, Health drink and utterly delicious pizza along with a wide range of ice creams. PRICE: There are many ways to price a product, they are Premium pricing, Penetration pricing, Economy pricing, Price skimming, Psychological pricing, Product line pricing, Optional product pricing, Captive product pricing, Product bundling price, Geographical pricing and Value pricing but Amul’s philosophy had all along been to deliver value for money to its customers. Despite being priced economically, Amul maintained its product quality. PLACE: Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods/services are moved from the manufacturer to the consumer. Amul GCMMF’s formidable distribution network comprises of 300 stock keeping units, 46 sales offices, 3,000 distributors, 100,000 retailers with refrigerators, an 18,000-strong cold chain, and 500,000 non-refrigerated retail outlets to reach their consumers. PROMOTION: This include all of the tools available to the marketer for ‘marketing communications’. Over the years, Amul’s advertising philosophy had been “to be simple, fresh innovative”. The clean, emotion-based ads refrained from using hi-tech special effects, and aimed at maintaining the perfect balance between the traditional and the modern. Other Visible Elements of Marketing:
16
Packaging of Amul Ice cream: Amul ice creams are packaged in sticks, cones, cups as well as take home
packs and institutional/catering packs. Stick ice cream is mainly sold for low income groups. They have
stick, cup and cone ice cream from low range to high range to cover many people from low income group
to high income group. Family pack is sold from 250 grams. Now they also have institutional and catering
packs.
RESEARCH INSTRUMENTS USED TILL NOW - DETAILS & WHY?
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 interviews17
Research Approach: surveys
Using these instruments and keeping my first phase objective in mind I ran a preliminary run of my
questionnaire with around 45 people from different age groups in general.
THE QUESTIONAIRE AND RESPECTIVE FINDINGS
1. Gender (M/F)
Male 24 53%
Female 21 47%
2. Which age level do you belong to?
Under 15 0 0%
15-24 31 69%
25-35 10 22%
36-50 3 7%
above 50 1 2%
Inference:
Now as you can see most of the people are from 15-24 age group which is actually the most important
group consuming ice creams . they constitute from teenagers to young working people.18
3. Marital status
Single 39 87%
Married 6 13%
Inference:
So till now most of the respondents have been single so my conclusion would be mostly concerning single
young dynamic youths
4. Occupation
Student, writer, Manager, SalesSoftware Engineer, student , student , Student, student, student
Student, Student, Student, Student, Engineer, Student, Software , Engineer it, Engineer, Business, Student,
IT Engineer, Student, MBA Student, engineer.
Inference:
Most of the respondents are students hence our conclusion till now would be really narrow.
5. How much are you willing to spend on an ice cream
0-50 10 22%
50-100 14 31%
100-200 12 27%
Above 200 9 20%19
Inference:
this pie chart clearly states that the people don’t mind spending anything from Rs 50 -200 which is the
comfort zone. But it’s a close call as it is almost equally distributed till .still the threshold which we make
out is 200. People and specially in this case young students have their bar setup around 200.
6. How often do you consume ice cream?
Mostly in Summers 15 33%
Everyday 2 4%
2 to 5 times a week 11 24%
Once a week 14 31%
Rarely 3 7%
When the whether is hot? 0 0%
Other 0 0%
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. so we can clearly conclude that in this case young students like to have ice creams mostly in
summer and that to at least once a week to 2-5 times in the same week,
7. When you buy your ice creams which character do you care mostly20
Price 9 20%
Brand 16 36%
Flavor 39 87%
Nutrition 2 4%
Style 4 9%
Other 0 0%
People may select more than one checkbox, so percentages may add up to more than 100%.
Inference:
From the above the bar graph we can easily conclude that brand and flavor are the most sought out
features people care for in the ice creams. again this is the general perception of the young students
belonging to the age group from 15-25.
8. How do you like to have your ice creams
Cups 12 27%
Cones 19 42%
Bars/ Sticks 14 31%
Scoops/ splits/ amalgamation 16 36%
Other 0 0%
People may select more than one checkbox, so
percentages may add up to more than 100%.
Inference:
We have a decent winner here in the form of cones but the responses here are tow widespread.this clearly
states that youngsters love to experiment and keep on experimenting or rather it is better to say they
fluctuate within couple of styles.
9. Where do you generally prefer to consume ice creams?21
Restaurant 0 0%
Ice cream parlor 30 67%
Home 4 9%
Outdoors (road side vendors) 11 24%
Other 0 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.
10. What is your favorite brand in ice cream?
Baskin Robbins 16 36%
Amul 6 13%
Kwality Walls 13 29%
Mother Dairy 4 9%
Scoops 1 2%
Other 5 11%
Inference:
Well here baskin and robbins and kwality walls are almost going neck to neck but baskin’s has a slight
edge. Amul has a share of 13%. Standing 3rd. clearly amul needs to buck up in this department.
11. What makes you like that ice cream?22
Price 6 13%
Brand 6 13%
Flavor 43 96%
Nutrition 1 2%
Style 8 18%
Other 1 2%
People may select more than one
checkbox, so percentages may add up to
more than 100%.
Inference:
So the main USP (unique selling point) of baskin robbins are their flavors and just flavors according to my
respondents.
12. Does price play an important role in your choice of brand of ice cream?
Inference:
So people are either really bothered or they are okay once they find their relishing flavor. This cannot be
made out clearly as people either agreed or they were just neutral.
13. Do advertisements and offers influence your purchase?23
strongly agree 5 11%
agree 22 49%
neutral 8 18%
disagree 9 20%
strongly disagree 1 2%
Inference:
Well the above bar graph clearly shows that advertisements do play a big role in consumer’s choice.
Almost half of the respondents believe that they get influence by the offers and advertisements. this also
means that the young people clearly follow the media and keep an eye out there for any offers.
14. What is the only thing that an ice cream must have according to you?
nuts and chocolates, Different flavors, flavor, Flavour, flavor, flavor, Chocolate, good taste, flavor, nuts,
flavor, chocolate, flavor, flavout, Taste, Taste, nothing, taste, falvour and cream, It should taste yum!!!
Inference:
well since most of the interviewed people were young students flavor is the most important element for
them to consumer an ice cream.
15. When we talk about ice creams you think of ?
Sundaes, calories, Baskin robbins, naturals, Kwwality walls, Butter Scotch, Baskin & Robbins, taste, Mc
swirl yummy, cold, choco chip, Haagen Daaz, baskin and robbin
Inference:
These responses are the heartfelt answers of the respondents and the most prominent one’s are choco chips
and baskin robbins24
16. What is your impression of AMUL ice cream brand as compared to other brand?
Inexpensive 22 49%
Healthy 9 20%
Easy to get 12 27%
Tasty 12 27%
Multi Flavor 1 2%
Intenstive advertisement 4 9%
Other 3 7%
People may select more than one
checkbox, so percentages may add up to
more than 100%.
Inference:
This is the most important question as the whole idea of asking previous questions was to know what kind
of people prefer what kind of ice creams and how they want to have it. So our young students think that
amul as a brand of ice cream is inexpensive and then easy to get and tasty. This result also has people
belonging to late 20’s working age, settled and married. The point to be thought about here is that though
they think amul ice cream is inexpensive and tasty and easy to get it does not come ne where near to their
favorite brand.
17. How do you rate amul ice creams (1 being lowest and 5 excellent ) with respect to - Flavors
17. How do you rate amul ice creams (1 being lowest and 5 excellent ) with respect to – Variety
1 2 4%
1 0 0%
2 7 16%
2 7 16%
3 20 44%
3 19 42%
4 15 33%
4 18 40%
5 1 2%
5 1 2%
Inference:
Amul’s ice creams are some where between good and very good according to the young people.25
Inference:
The same is the result with flavors which means amul has good amount of choices for the flavors.
17. How do you rate amul ice creams (1 being lowest and 5 excellent ) with respect to - Taste
1 2 4%
2 8 18%
3 17 38%
4 13 29%
5 5 11%
Inference:
The Taste of amul ice creams is also good according to the young people.
17. How do you rate amul ice creams (1 being lowest and 5 excellent ) with respect to - Appearance
1 2 4%
2 12 27%
3 21 47%
4 9 20%
5 1 2%
Inference:26
As far as appearance is concerned, Amul has shifted towards the fair side. This means amul has to work
towards the appearance.
17. How do you rate amul ice creams (1 being lowest and 5 excellent ) with respect to - Price
1 0 0%
2 7 16%
3 13 29%
4 20 44%
5 5 11%
Inference:
Well I think this is the USP of amul, it’s price there in the market. People, specially the young people rate
it very good for the price.
17. How do you rate amul ice creams (1 being lowest and 5 excellent ) with respect to - Availability
1 2 4%
2 7 16%
3 15 33%
4 15 33%
5 6 13%
Inference:27
Again availability is good for amul. People can locate amul ice creams very easily.
MY FINDINGS
(For the data collected till now)
1. People are very well aware of the amul ice cream as a brand but still it is not considered among
one of their favorites
2. The main unique selling point of the amul ice creams is their price.
3. People find amul ice creams basket very rich with wide variety of flavors. Flavor is the most
important thing for them in ice cream rite now. the most preferred brand out there was baskin
robbins and they liked it for their flavor. But since all the respondents are highly impressed with
amul flavor then why it is not even in the top three list of their choices. This clearly states that
amul has to work on it flavors quality more now.
4. People love to eat their ice creams in parlors which is good as amul can target these people for
their amul ice cream parlors ( which is the next phase of the report)
5. Appearance is one another aspect that amul has to work upon in their ice creams as the
respondents found them on the negative side of good.28
6. Almost all the respondents are very well aware of the amul ice creams taste ,availaibility and price
and have rated the aspects as good. But this is still not good enough for them to keep amul as their
favorite brand.
CONCLUSION
Amul is using very good strategy of selling their products. They do have product diversification i.e. dairy
and non-dairy which have advantage of expansion of network and advantage of each underline objectives.
Products are available for all most all the segment. AMUL caters to all segments and more popular in
India. It has got a huge variety of ice creams with a huge base of flavors
Despite of all these factors Amul is not among the top of the choices of the consumer ( mainly young
students and working class ,according to the data collected till now ) .
The people or the respondents have rated really high for amul ice cream for its variety, flavor and quality.
It has been highly rated as “inexpensive” too. But the appearance is something amul need to work upon,
which was the only factor our respondents were not satisfied about.29
Now given Amul is the highest share holder of the ice cream industry.The point of dilemma here arises is
that though people are very well aware of amul ice creams ,their taste, quality ,appearance still they do not
prefer to be a loyal customer or go for it more times as they do for their favorite brand .
So at this stage, all I can say is that amul needs to work upon as a more visible brand. It needs to work
more upon their advertisements intensity and offers and come out really strong as a complete package
towards the potential customers they are losing out on.
PLANS FOR COMPLETION OF THE PROJECT
The questionnaire conducted till now is for the general behavior patterns and perceptions of people
towards consumption of ice creams. it is also the first phase of the project.
The second phase will be directed mainly towards the main essence of the objective which is the analysis
of amul scooping parlors stand viz a viz its competitors .so another questionnaire will be used for that
analysis and it will take another 10 days to finsh that evaluation.
As we can have a vague picture of amul ice cream’s visibility and standing from the above questionnaire
but it is still not majorly conclusive. Also I need more respondents to interview.
The schedule for the completion would be:
Second phase 10 days (16/04/2011 to 26/04/2011)30
Third phase 10 days (27/04/2011 to 7/05/2011)
Observations and conclusions 4-5 days(8/05/2011 to 11/05/2011)
Final report 17th or 18th may, 2011
LIMITATIONS OF THE PROJECT
1. Since the responses would be from some parts of Hyderabad, so it cannot be generalized for the
whole city or whole country.
2. Respondents may give biased information or under some bodies influence.
3. With respect to the actual population sample size will be too small. This might affect the final
result.
4. As summer training is going under summer season so sometimes people are less interested in
filling up questionnaire.
5. Sometimes the problem which I face is language problem for which I have to make them
understand.
6. Non-cooperative approach and rude behavior of the respondents.31
7. If the respondents answer does not falls between amongst the options given then it will turn up to
be a biased answer.
REFERENCES
www.amul.com
http://www.amul.com/amulscoopingpalour.pdf
www.amuldairy.com
www.google.com
www.marketresearch.com
www.dairy.com
http://www.dairymark.com/pdf/icecream.pdf
http://www.amul.com/amulscoopingpalour.pdf
www.dare.co.in32 http://timesofindia.indiatimes.com/ www.wikipedia.org www.baskinrobins.com http://www.vadilalgroup.com/icecream/index.html Moreau, Page C; Markman Arthur B; Lehmann, Donald R – “’What is it?’” Categorization flexibility and consumers’ response to Really New Products”, The Journal of Consumer Research, Vol. 27, No.4, Mar 2001, pp 489-498 Poffenberger, A T, “The Conditions of Belief in advertising”, The Journal of Applied Psychology, Vol VII, No.1, Mar 1923 “Screaming for ice cream: a rapidly growing market, ice cream nevertheless faces its share of possible demons. What will be the effect of changing demographics on the frozen treat, and how will manufacturers respond?” , BNET, Harper W.Boyd, C. R. Kothari, Research Methodology Zikmund, William G. Thomson south-western, Business research methods,7th edition Kotler, Philip ,Marketing Management: Analysis ,Planning and Control
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