INTRODUCTION

• Parent Company: Hatsun Agro Products Ltd• Category: Food Processing• Sector: Food and Beverages• Tagline: Life’s Happy Moments• USP: Exclusive Franchise parlors• Dairy Whitener, Skimmed Milk Powder, Agmark

Certified Ghee, Butter, Cooking Butter, Milk, Varieties of Curd, Paneer and Buttermilk through the Brand Hatsun Milk & Milk Products

• Started with seed capital 15,000 in 1970• Largest private sector company• 3 Lakh+ farmers, chosen with care in 8500

village• 10 locations• Exported to 38 countries• Quality Standard Certifications

STP

• Segment: Ice cream for Quality conscious kids and adults

• Target Group: Kids and Youth• Positioning: Exceptional service through

exclusive franchise parlors

BUSINESS OBJECTIVES

• Build brands worthy of customer trust• Maximize return to all stakeholders through

continuous improvement• Develop People to Deliver the Above

SUCCESS FACTORS

• Standardized Parlors• Ideal and convenient location• Convenient working hours (10 A.M to 10 P.M.)• Regular maintenance of freezers to maintain

optimum performance• Ability to understand and cater to customers'

needs • Innovative commercials and novel promotions

INNOVATION IN MARKETING

EAT ALL YOU CAN

SLOW SPEED DRIVING

COMPETITION

PHONE AND HAVE AN ICE CREAM

ADVERTISING STRATEGIES

Large Scale Advertising Product diversification to target Specific Segments

Benefits Derived from Falling Cost Franchises and strategic partnership to enhance distribution

Approach to pricing and strategy Franchise Management

• Followed a cost plus approach for setting retail price for ice cream.

• Single tier Distribution strategy was followed.• Took orders from franchises via Phone.• CEO’s direct involvement in Personal and

Human Resource Management.

Emerging Competitive scenario

• Competition from Strong Regional Players .• Kwality in North &East• Kwality and Vadilal in west and Dasaprakash• Joy @Arun In South• The competition become intense with entry of

Uniliver through its Indian Subsidiary BBIL.

Strategic challenges and Dilemmas

• Major Challenge was the dramatic development in the market place that could undermine Arun’s Growth Plans.

• Aggressive entry of Uniliver was threat to all retail Players.

• Reworking competitive strategy was the only option.

Strategic Dilemma

• Key Question was whether to aggressively reinforce Arun’s competitive profile or pursue alternative business opportunities.

SWOT ANALYSIS

Strength• Unparalleled service to

customers through exclusive franchise parlours.

• More than 70 mouth-watering ice cream flavours and combinations.

• The first Indian ice cream brand to be certified ISO 9000.

• High quality products with good attractive packaging and distribution

Weakness • Stronger competition

stifling its growth.• Brand visibility lower than

other major players

Opportunity• Explore the premium

segment and come up with varieties, which cater to the adult population.

• Increase the distribution network to other parts of the country

Threats• Other competitors also

offering products at similar quality and price.

• Most people are not really brand conscious, so loyalty might be an issue

Porters Five Force Model

Threat of new entrants: • The switching cost of consumer is low. • The threat from new players in the market is

high because the manufacturing process is simple and not more costly.

Powers of buyers: • There is high power of channel members• Individual consumers power is also high as they

can go for different ice cream brands.

Power of suppliers: • The concern for dairy producers which are now

going for ice cream manufacturing is very less. So, the power of suppliers is low.

Availability of substitutes: • There are many alternative products like different

sweets, Kulfi and Faludah. • They are low in price so there is high pressure on

ice creams as consumer can go for substitutes.

Competitive Rivalry:• Foreign and local brands • Advertising expenses have increased as

companies are advertising more to increase their market share.

Strategies

• Introduced the concept of exclusive franchise parlours in India• Innovate varieties and new flavours - maintain its brand image

and recognition• Ideal and convenient locations• Clean and well-decorated interiors• Convenient working hours (10 A.M to 10 P.M.)• Regular maintenance of freezers• Courteous service• Knowledge of product/variety among the staff• Ability to understand and cater to customers' needs• Innovative commercials and novel promotions

Product Differentiation Focussed Product Differentiation

• Varieties and products flavours (Royals, Exotics, Delights, Tubs, iCone, iBar)

• Trans shipment to ships

• Focus on quality and service

• Focussed sales promotions ("slow speed driving competition“ "Eat All You Can")