A PROJECT REPORT ON

COMPETITIVE ANALYSIS FOR VADILAL

Submitted in partial fulfillment of the requirement for the award of Bachelor of Business Administration
(BBA)

Submitted by:
GAGAN RANA BBA-5th SEMESTER

Under the guidance of:

MR. SANJOY ROY

BHARATI VIDYAPEETH UNIVERSITY, ACADEMIC STUDY CENTRE; BVIMR, NEW DELHI

ACKNOWLEDGEMENT
I would like to take this opportunity to extend my heartfelt gratitude to my Research methodology professor Mr. Sanjoy Roy, for his immense support and guidance throughout the project. I would also like to thank our college librarian, for his wholehearted co-operation.

TABLE OF CONTENTS

1. INTRODUCTION 2. RESEARCH METHODOLOGY

TYPE OF RESEARCH DESIGN DATA COLLECTION QUESTIONNAIRE DEVELOPMENT AND PRETESTING FINALIZED QUESTIONNAIRE SAMPLING PROCESS

3. CONCEPTUAL DISCUSSION 4. DATA ANALYSIS 5. CONCLUSIONS AND RECOMMENDATIONS

LIST OF TABLES AND GRAPHS

LIST OF CHARTS: 1. Ice cream: whos having it? 2. Frequency 3. Buying behaviors 4. Where are they buying? 5. What do they like? 6. Price is it important? 7. Preferences 8. Place 9. Awareness 10.And the winner is 11.What matters?

TABLES
CHI SQUARE TABLE CHI SQUARE BAR CHARTS

INTRODUCTION

EXECUTIVE SUMMARY
This project on Competitive analysis of Vadilal began with a motive of finding the basic reason for the lean trend in the sales of Vadilal. Through this project I have basically tried to analyze reasons for this lean trend .The methodology I adopted a sample testing of 500 people of various age groups. I have done this analysis by conducting a sample survey of the various factors, which might influence the purchase of ice buyer. For this purpose I tried to check the dependency of some of these factors (basically the variables) like dependency between age and frequency of purchase. I have used CHI SQUARE test for dependency for checking the dependency of the variables. When I drew inferences on the basis of the dependency test results, I came to certain basic problems faced by Vadilal like: 1) Low recall rate 2) Lack of accessibility due to lack of geographically wide spread outlets Keeping the above-mentioned factors in mind I have given certain recommendations, which Vadilal can adopt to overcome its core problem issues.

CURRENT MARKET SITUATION

WHAT makes multinational brands want to cater to the Indian market, especially in a category like ice creams, where the market has been stagnant and competition among existing brands intense? MNC Ice Cream manufacturers obviously we want to be in India! It has the right climate for ice-cream consumption; the country has a very low per capita consumption, which means large untapped potential; and our ability to maintain competitive pricing - all these reasons make them want to be in India. While it sounds plausible enough, one begins to wonder their optimism is misplaced. Take a look at the state this Rs 750-crore market is in today. Not a single multinational brand has been able to make its presence felt in ice-creams in India as the market continues to be ruled by Indian brands such as Amul, Kwality Walls, Mother Dairy and several regional ones such as Dinshaw in the West and Arun in the South. The MNCs who tried to brave Indian conditions have all had to scale down their expectations. Swiss brand Movenpick, having parted ways with its local franchisee, Ravi Jaipuria, sometime in 2002, mainly because of steep pricing, is now being distributed through third-party arrangements though the brand visibility appears to be very low. In a global buy-out, Nestle SA bought the brand last year but the Indian

operations of Nestle still do not handle Movenpick. The brand, industry analysts say, found it difficult to achieve economies of scale. Again, while Baskin Robbins India has registered 12 per cent growth at Rs 18 crore last fiscal even after making no more price reductions, it is far from being in the reckoning even among the top five ice-cream brands in India. Other MNC brands, which evinced interest in the country, such as Haagen-Dazs and Blue Bunny, have also not taken the plunge, given the uninspiring response MNC brands in general have got from Indian palates. Last fiscal French major Candia (which owns Cream Bell brand) took the joint venture route to enter India. The joint venture plans to invest Rs 50 crore in the Indian market by 2005 in manufacturing, logistics and brand building. Then, taking lessons from others' debacles, Cream Bell ice creams have not been premium-priced but are very much in line with competition. Also, the company is expecting to achieve economies of scale by next year, when it hopes to go national while keeping its Indian stint very low profile. But even as Cream Bell is making slow inroads into the Indian ice-cream market, a fierce war is going on within the domestic manufacturers. Gujarat Cooperative Milk Marketing Federation (GCMMF) wants to make Amul a Rs 1,000-crore brand by 2010. This is why it has expanded the market with a host of new launches and created brand new segments within ice creams. Amul's strategy to grow in a difficult market this summer has been to offer international variety at prices in tune with the Indian market. Amul is up to 50 per cent cheaper than other brands such as Kwality Walls. And the company is not pausing for breath but has begun introducing a host of flavours this summer. Fashioned on the super premium ice-cream range Dreyer TM, Ben & Jerry and Haagen-Dazs, Amul's offering comes in 100 ml packs in several flavours such as Alphonso Mango, Date with Honey, Fig, Cheese with Almonds and even Rajbhog!

Hindustan Lever, which restructured its ice-cream business during the late '90s by merging several brands with Kwality Walls, has decided to concentrate on only six metros in the country, having realized the returns from servicing other smaller markets were inadequate. So, even as multinational brands such as Candia are working hard at becoming a national brand, Kwality Walls has actually followed the reverse path to survive by confining operations only to the major metros. And the key to growth in this aggressive market still remains pricing. To make matters worse, prices of milk, milk fats and other raw materials have increased sharply this summer, further squeezing margins. The early monsoons in most parts of the country too have affected ice-cream sales. It's been a comparatively stagnant market with a growth rate of just 7-8 per cent this summer; shares must have shifted from player to player without the market really growing. It doesn't help too that today there are many more items that are vying for share of pocket of the consumer and ice creams are just one of them. Excise duty of 16 per cent on ice creams and sales tax, which varies from 10 to 15 per cent in various States, doesn't help its cause too. But most players agree passing on the price hike to consumers has not been considered. While MRP has not been hiked, many brands have resorted to cutting down the milk/fat content in ice creams to offset the raw material cost increase. Other than keeping a strict watch on pricing, the only way out for domestic brands is to continue innovating. For summer 2004, Kwality Walls has focussed on creating excitement through a range of affordable and different flavours. Hence its `Twister' series of ice creams in several flavours for kids, lower-priced sundaes under the Viennetta series for the discerning consumers and introduction of Sundae combo offers. Coinciding with the last festive season, HLL had introduced Vanilla Surprise, strongly differentiated from the low-priced commodity vanilla products, and a range of new sundaes in Kool Khubani, Choco Dry Fruit Dhamaka and Kamaal Karamel flavours. Archrival Amul has also launched a host of innovative products this summer. These include Santra Mantra in an orange-shaped container, strawberry and mango cones.

Down South, Arun, which holds a 56 per cent share of the TN market, and an overall 33 per cent share in the Southern markets, is now experimenting with what for it is a new format - a company-operated parlour in the upmarket Spencer Plaza in Chennai. Done up in a steel and glass shell, with water running around it, Arun Ice-creams Unlimited, its new format, serves up a range of sundaes at what it describes as affordable prices. If it clicks, Arun plans to extend this concept of exclusive parlours. It now operates through a chain of 1,200 franchised outlets.

Vadilal in this summer takes a mall route to expand its retail presence in the country. This, instead of standalone ice cream parlours. It has drawn up elaborate plans to be housed in most of the upcoming large malls and large format supermarkets. Vadilal India, a joint venture between Allied Domecq and Maharashtra Dairy Products, currently has 114 franchise outlets and 24 company-owned parlours across the country. The plan is to reach the 200-mark over the next one year. And Kolkata, which has four Baskin Robbins stores, will get two more from this list of additional stores. The premium brand, which offers high-quality premium ice cream, specialty frozen desserts and beverages from its stable, will also explore budding markets in the east and the northeast like Bhubaneshwar, Guwahati, Shillong and Agartala. The objective is to reach out to our target customers at the happening places in major cities without increasing the number of company-owned stores, which adds to costs substantially due to high rentals. The company is expecting its present market share of 4% (by value) in the organised sector to move up significantly once this expansion is complete. The countrys organised sector ice cream market is estimated to be Rs 400 crore while the total ice cream market including premium, mass segment and unorganised sector is estimated to be Rs 1,200 crore.

However, despite all attempts to heat up the Indian ice-cream market, a lot of ground still remains to be covered. Per capita consumption of ice cream in India is still a dismal 106 ml per annum against 22 litres in markets like the US. A price hike is out of the question even if input costs rise. An industry observer points to HLL's aggressive takeover trail in the early '90s when it gobbled up Cadbury's Dollops and the Milkfood and Kwality brands. Says he: "HLL promised much but as a potential market leader, it didn't give the market the right inputs and impetus to grow enough." He adds that only players for whom ice cream is part of a larger portfolio of products can survive. For example, for Hatsun Agro, which has a turnover of Rs 500 crore, Arun ice-creams are only a Rs 35 crore business, or seven per cent of its sales. The rest is in milk. Similarly, for Amul, which has a share of 22-25 per cent of the market, its large milk business sustains its ice-creams business and for HLL its ice-creams business is but a blip on its sales. It looks like ice cream makers have a long way to go before they can really set the market on fire.

BACKGROUND OF THE COMPANY

Vadilal India, a joint venture between Allied Domecq and Maharashtra Dairy Products, currently has 114 franchise outlets and 24 company-owned parlours across the country. The plan is to reach the 200-mark over the next one year. Vadilal in this summer takes a mall route to expand its retail presence in the country. It has drawn up elaborate plans to be housed inmost of the upcoming large malls and large format supermarkets. The premium brand, which offers high-quality premium ice cream, specialty frozen desserts and beverages from its stable, will also explore budding markets in the east and the northeast like Bhubaneshwar, Guwahati, Shillong and Agartala One of the major differences between Vadilal and other brands is the fact that Vadilal retails only through ice cream parlours and does not retail through street vendors. Vadilal is looking at alternative distribution channels to expand business in the country. While, till now, it had been present in the exclusive parlours segment and had been tying up with institutions to sell its ice-cream products, the company is now also planning to enter into third-party retailing through supermarket chains and kiosks in the Sec A class cities. The kiosks model is already in the testing phase in Mumbai and will be positioned at upmarket points in cities. This is part of the new market reach initiatives being mulled by the company. Said Vadilal India & south Asia CEO Pankaj Chaturvedi, The idea is to expand the reach at the happening places in major cities without increasing the number of stores, which adds to costs substantially due to high rentals. This will be coupled with retailing of medium size packs of 500 ml and 1,000 ml of the 10 most popular ice-cream flavours through supermarkets, malls, premium retail stores and specific institutions in the metros and other top cities. The retailing model will commence in another two months starting from the metros and, depending on the response, other towns, which are not in a position to support stand-

alone Vadilal stores, will be covered. Once these centres are established, the possibility of diversification into other flavours and smaller cups will be considered. Apart from Vadilal, the premium ice cream market in India comprises of Kwality Walls, a US based brand distributed by Hindustan Levers Ltd.

Cream Bell, a relatively new brand which is aggressively tapping the market

Nirulas 21, an NCR based brand with a considerable number of stores and a huge customer base in and around the NCR.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY 1. Primary Sources: i. ii. iii. Group discussions and Brainstorming sessions Questionnaire Interaction with sales staff of Vadilal.

2. Secondary Sources: i. Internet

Objectives of the study: To get an empirical view of the Vadilal. To study the procedure of customer complaints in Vadilal To get an insight of all the competitors. To study the various products offered. To study the customers preference and perception regarding Vadilal. Scope of the study: The objective of the project was to find out the prospective buyer of Vadilal and also to provide key information about the buyers perception and preferences. The study

also helps in getting information about the performance of the company as well as their own investment center or why people go for Vadilal. It helps in finding out the problems related to buyers. Managerial usefulness of study: The study highlights the problems related to distribution of Vadilal so that the company can improve the service rendered by them as a distributor. The study gives information about prospective buyers both individual as well as institutional clients. The study provides the complete information about all close competitors of Vadilal. It provides the feedback from customers regarding their problems and their perception about investing in Vadilal so that the company can improve their services.

Data Collection This report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones.

Data sources: (A) Primary Data Primary data are those, which were collected afresh & for the first time and thus happen to be original in character. However, there are many methods of collecting the primary data. All have not been used for the purpose of this project. The ones that have been used are: Face to face communication (Interviewing)

Observation

(B) Secondary Data When an investigator uses the data that has been already collected by others is called secondary data. The secondary data could be collected from the journals, reports and various publications. The advantage of the secondary data can be economical, both in the terms of money and time spent. In this report secondary data was collected through: Company balance sheets

Reports and records

Flow charts and tables

Websites

Primary data was collected through questionnaires Sample size Sample area : : 120 New Delhi Vadilal exporters/traders involved in international business Sample method : Random sampling method

Duration of Study: The study was carried out for a period of two months, from June 1 st, 2009 to July 31st, 2009. Sampling: (A) Sampling procedure: The sample was selected of them who are the customers/visitors of Vadilal. It was also collected through personal visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The data has been analyzed by using mathematical/Statistical tool. (B) Sample size:

The sample size of my project is limited to 120 people only. Out of which only 70 people had invested in Vadilal. Other 50 people did not have invested in Vadilal.

(C) Sample design: Data has been presented with the help of bar graph, pie charts, line graphs etc. The following are the questionnaires that was been carried out at the time of survey. The questionnaires also shows the value of perception of customers towards Vadilal.

1 2 3 4 5 6 7 8

Vadilal in market Uses of tally of Vadilal Satisfied customers of Vadilal Perception about the brand name Buying behaviour of customer to Vadilal Preference of customers to Vadilal Reasons to prefer Vadilal Awareness of the brand name in market

LIMITATIONS: Suggestion is based on the given information. Due to the large number of employee it was not possible to collect all the information from each. The time period is limited to know the entire process .We cannot draw effective conclusion as it is continuous process. The area of survey was limited to some particular areas.

SCOPE OF THE STUDY

Extensive survey on customer preferences will provide lot of valuable information about the brand awareness of the product and it will be easy to find out the likes and dislikes about the product. For company, it will provide through knowledge about the consumer preferences in comparison with other market product and suggest valuable direction of the current market trend. It will provide lot of information about the market trend and customer preferences about the product. It will include valuable suggestions for the company, how the company can strengthen their own brand? The study of customer preferences will provide me lot of information on: How customer profile differs across the user segments? Dopes the different classes of the customers differ their preferences? My study includes an extensive survey over 100 customers who normally use the services. The companies included:

CONCEPTUAL DISUSSION

PROBLEM DEFINITION THE GENISIS OF THE PROBLEM

The ice-cream market is set to sizzle this summer. At least 10 ice cream makers armed with once 125 flavors will try to freeze the attention of the Indian consumer. Till 2000, the Rs. 1000 Crore industries was dominated by small regional players, with organized players accounting for just one-fourth of the total. Today the market has grown to over to Rs. 1500 crore to which organized players contribute 40%. In such a competitive industry, it become imperative for marketers to understand what drives that kind of sales figures Vadilal is a well-known brand in urban India and is now on a steamroll in terms of expansion. Vadilal is on an aggressive marketing strategy and is planning to extend its reach beyond the metropolitan cities in India. It will ride on what is commonly being referred to now as the Mall Mania wave. In the wake of the above-mentioned intentions, there are also some threats in the market, which have the potential to destroy Vadilal party. As we have already mentioned, Baskin Robbins is a premium Ice cream brand with a presence in the metros. It is a niche player in this sector and is an asp rational brand for many. The brand has negligible media presence and relies heavily on word of mouth publicity. So as a part of this research we have been given a task by the management at Vadilal to undertake a qualitative research with the help of a questionnaire. The competition, which has been taken into consideration, are as follows Cream Bell Ice creams were launched in the last quarter of the last financial year and have ever since resorted to a media blitzkrieg, which threatens to erode the traditional consumer base of Vadilal. Cream Bell Ice creams is not only retailing through dedicated and stands alone parlors but also through street vendors. The company is

also advertising in the electronic media in a big way unlike any of the competition. Nirulas 21, a leading Ice cream brand of the NCR, is now expanding in a big way and has opened up stand alone counters in many places in the NCR. This brand is also in the premium category and is a direct competition to Vadilal. Kwality Walls, an American brand owned and distributed by Hindustan Levers in India, is also counted among the premium brand of ice creams in India. Initially retailing only through the street vending way, Kwality Walls is now expanding its presence in all major malls in the urban India in the form of stand-alone stores. Cornetto and Max are some of its sub brands, which are very popular with the consumers. The company also has a major presence in the media, both print and television Perhaps this is the only premium brand, which has a pan Indian presence, and aims to be a volumes player. The common features in these brands are as follows: All the mentioned brands, which will be taken into consideration in the research, are premium brands, i.e. these brands are considerably more expensive compared to the regional brands. Another common fixture in these brands is that all of them retail through dedicated standalone parlors. The third similarity is that all of them are aiming to aggressively capture the market by opening up outlets in malls, which are invading the topography of urban India.

The market is brimming with activity and each and every player is trying to be one up on the competition. The opening salvo was fired by FMCG major Hindustan Lever Ltd, which is restructuring its ice-cream business. The company will now shift focus to the high end of the market, that is the top six metros of the country, and on 20 premium products out of 30-odd items in the Kwality Walls portfolio. The company has decided to promote premium products and though there are no plans to phase out the other products at present, advertising for the low-end Max range has been curtailed.

The company had already transferred some of its products from Lintas to McCann Erickson. While Lintas is now looking after Max and Feast, McCann is working on Cornetto, Sundae and softies. The idea is to derive revenues from markets, which yield higher return on investment rather than expanding markets with low priced products targeted at increasing penetration. Ice cream, like carbonated softdrinks, is still perceived to be a premium product in the domestic market and its penetration depends on price positioning. But cost of production is still high. . Supply chain cost focus is an ongoing activity across all functions and businesses. More attention is going to these focus cities in terms of media, launch of new products, resource mobilisation. The rationale for geographical focus is because the per capita consumption of ice cream is higher in urban centres as compared to rural markets. For Kwality Walls, geographical focus is intended to improve on profitability front in line with HLL strategy on improving foods business profitability.

On the other hand the Cream Bell brand of ice cream, which entered the Indian market with much fanfare in 2003, has stepped up its marketing efforts and is now targeting the older age group as well. Cream Bell was launched in Delhi in September 2003, and the ice cream market in the city pegged at approximately Rs 125 crore, growing annually at 15 to 20 per cent is somewhat sluggish. Unlike any other consumable, everyone from a six-month-old to a 106-year-old, so believes the company, loves ice cream and its a product that uniquely brings out a very childlike behaviour even in adults. We lick the cover before throwing it away, we slurp the drooling orange bar, we take bites off one anothers ice creams, we indulge, we enjoy. In essence, for those moments, we are all like children. Surprisingly, no brand so far had zeroed in on what is essentially a category insight. The opportunity, hence, was to take over this positioning. From this insight, the platform chosen to appropriate the brand proposition was A fun experience that derives from Cream Bells great taste. The creative expression that weve adopted is: Cream Bell Ice Creams the taste that brings out the child in you. The key personality trait for Cream Bell is defined as cheeky, captured in the brand sign-off, giving it an attitudinal, yet lovable personality dimension. Nirulas, a strong player in the NCR is also planning to expand its horizons to different parts of north India and has already opened up stores in the state of Punjab. The Nirulas 21 brand is doing very well in the capital and also finds mention in the bible of travelers, the Lonely Planet. In such a scenario Vadilal need to either counter attack or defend its position as a premium ice cream brand and defend its market share. The company would also want to grab a pie of the ever-increasing ice cream sector in the country

PROBLEM STATEMENT
The problem faced by Vadilal India is important and directly effects not only the tactical marketing plans of the company but also has bearing on the long term strategic planning of the company. The current market scenario may be a blessing for the long term prospects of the company or may very well signal the beginning of the end. It becomes imperative to cogitate on and analyze all the various possible courses of action and choose the one, which will help in the long run. The Problems faced by the firm can be summarized as follows: 1. Should the company continue on its strategy of below the line promotion or should it follow the competition and indulge in a media blitzkrieg. 2. In the wake of the rising activity in the premium segment should the the company employs defense strategies. In other words is the competition catching up. 3. Where exactly does Vadilal stand with respect to the competition In the eyes of the target market, i.e. how does a prospective customer rate it with respect to the competition in the market? 4. For long the company has differentiated on the flavors available and the rich and creamy texture of the ice cream. Do consumers want this, is it that important? Are consumers brand loyal or loyal to a particular flavor. 5. How important is the point of purchase, should the company expand malls coming up on the landscapes in urban India.

These are the problems this research aims to solve.

TYPE OF RESERCH DESIGN The research design implemented is the Conclusive Research Design; the type employed being the Descriptive Design. The Single Cross Sectional Design was the mode of the research. The research process engaged will include both primary research and also secondary research. The primary research was conducted with the help of a questionnaire. The sources for secondary research were: Websites of the various companies mentioned in the report

News and information sites like: www.agencyfaqs.com www.businessstandard.com www.indiatimes.com www.financialexpress.com www.economictimes.com

SAMPLING PROCESS
The sampling process is as follows The population comprises of all the residents residing in the NCR. The sampling technique used is Non Probability Sampling i.e. the researcher will rely on personal judgment rather than chance to select a sample element . The researcher will arbitrarily decide which element to include in the sample. The sampling method used is convenience sampling. Under this technique the selection of sampling units will be left primarily to the interviewer. This particular sampling process will be used because it is imperative that the respondents selected are competent enough to purchase these premium brands. If a probability sampling technique was used then it may be possible that certain elements are included in the research which does not have the propensity to consume these premium brands. This will lead to discrepancies in the results achieved. The sample size is 500.

The areas primarily covered in the NCR will be all major malls in NOIDA, DELHI and GURGOAN. Also major upscale markets like GK, South Ex., Cannaught Place, Sector 18 NOIDA, and Regent Square GURGAON will be covered.

DATA ANALYSIS

DATA ANALYSIS
1) Do you eat Ice Creams? Yes No If No, then please proceed to question no-9. INFERENCES

NO (8%)

Slice 9 3 4 5 6 7 8

YES(92%)

ICE CREAM: WHOS HAVING IT?

As evident from the chart above around 9 out of 10 respondents have ice cream. This was a introductory question and the results are as expected. This also shows that there is product awareness for this product, so the marketers need to assert on providing quality product and less on spreading product awareness.

2) If yes, then how frequently do you consume ice creams? Everyday 2 3 times a week Only on occasions RESULTS Once a fortnight once a week

Slice 9 6 EVERYDAYt 7 8 only on occasions ONCE A WEEK

FORTNIGHT 2-3 TIMES A WEEK

FREQUENCY The consumption pattern of the respondents is shown above. Only 7% of the respondents have ice cream everyday, while on the other hand 25% of the respondents have ice creams once every week. The key learning is that a small fraction of respondents have ice creams everyday. So marketers have to devise ways to increase footfalls and consequently frequency of purchase.

3) Do you specially go out for ice creams or is it an impulsive buy? Specially go out for ice- creams Its an impulsive buy RESULTS dont know/ cant say

DKCS Slice 9 Slice 4 5 6 7 8 SPECIALLY GO OUT

IMPULSE BUY

BUYING BEHAVIOUR For 62% of the respondents ice creams form a part of the impulse buying behaviour. The key learning is that marketers should increase the visibility in prominent market place to initiate purchase. This also shows that majority of the respondents dont plan out for having an ice cream, its rather an impulse buy, so the marketers should make their product distinguishable in the market place and make it as attractive as consumer want it to be.

4) You prefer purchasing ice-creams from Street Vendors Proper Retail Outlets Others (please specify)__________

RESULTS

OTHERS Slice 9 4 5 6 7 8 3% 0%

RETAIL OUTLET 45%

STREEET VENDOR 52%

WHERE ARE THEY BUYING?? Street vendors still rule the roost inspite of the influx of big shopping malls and dedicated parlors in the Frey albeit by a small margin. This clearly signifies that people are clearly moving from the neighborhood thelewallah to chic parlors. This also means that there is less competition in terms of the no. Parlors in the vicinity. And also that the brand recognition and aspiration is high. This shift in buying place is an indicator of things to come; a marketer should concentrate on new product line extensions and increasing shelf life.

5) While purchasing an ice-cream to do you go for Brand or the Flavor More for Brand Name More for Flavor For Brand and taste equally No specific preference

RESULTS

NO SPECIFIC PREFERENCE BRAND AND TASTE EQUALLY

Slice 9 5 6 7 8

BRANDNAME

FLAVOR

WHAT DO THEY LIKE?? Brand name still rules. 45% of all respondents go in for a particular brand of their choice. This revelation also strengthens the observation in the last question that more and more consumers are consuming at dedicated parlors and not at street vendors. This clearly shows that companies need to have more parlors and more brand presence.

6) Do prices affect your decision to buy an ice cream of a particular brand? Yes No RESULTS Dont Know/ Cant Say

cant say

Slice 9 4 5 6 7 8

no

yes

PRICE.. IS IT IMPORTANT?? The price conscious Indian market again shows its leanings towards being very price sensitive. 59% of all respondents say that price plays an important part in their purchase decision. This clearly shows that customer is not only looking for quality but more importantly value ie. Quality products at affordable prices.

7) Which of these ice-cream brands do you prefer? Kwality Walls Nirulas Vadilal Cream Bell

Others (please specify)_________________________ RESULTS

OTHERS CREAM BELL Slice 9 6 7 8 KWALITY WALLS

BASKIN ROBBINS

NIRULAS

PREFERENCES In terms of brand preference Kwality Walls emerged as the winner with 37% respondents voting for it. Vadilal came a distant third, probably because of the emphasis on the below the line promotional strategies being employed by the company, and also because of limited retail points.

8) Does the location of the retail outlet affect your choice of brand( as in will you go in for a nearby located outlet whichever brand it is, or go out specially for your brands outlet Irrespective of its location) Yes No RESULTS Dont know/ cant say

CANT SAY

Slice 20 9 5 6 7 8

no

yes

PLACE As clearly evident from the graph above, the point of purchase plays an important part in the buying process. Hence the location of any parlor plays an important part. Consumers would definitely not like to travel distance to have their ice cream, specially when it is an impulse buy.. so the marketers should try to bring the product as near to the consumers doorstep, if not the door step..

9) Have you tasted Vadilal? Yes No If NO please proceed to the personal detail section give at the end of this page. RESULTS

20 9 3 5 6 7 8 no Slice

yes

AWARENESS

It is quite visible from the chart that; yes consumers know about BASKIN ROBBINS, they have tasted their ice cream.. But the key question here is that how many of them find it feasible to have it again? So the marketers should concentrate on frequent and regular buying of their brand.

9) Please rate the following Brands in terms of your preference on a scale of 10 where 1 denotes not so preferable and 10 denotes greatly preferable.

Brands/Prefernce Vadilal Nirulas Cream Bell Kwality Walls

10

RESULTS

AND THE WINNER IS..

7.8 6.2

CREAM BELL 4.7 BASKIN ROBBINS 3.8

KWALITY

2 NIRULAS

4 CREAM BELL

6 KWALITY WALLS

10

NIRULAS BASKIN ROBBINS

Its quite evident again that kwality walls is the leader in brand preference, baskin Vadilal is lagging behind by a long margin.

10) Please rate Vadilal on a scale of 6 on the following parameters where 1 denotes not so preferable and 6 denotes greatly preferable. And numbers between 1 and 6 reflect intermediate degrees of preference. Parameters/Preference s Prices Location of outlets Flavor Quality Service Delivery 1 2 3 4 5 6

RESULTS

SERVICE DELIVERY QUALITY

5.1 5.5 4.7

FLAVOR LOCATION OF OUTLETS 1.3 PRICES 0 2.3 1 2

3 PREFERENCE

WHAT MATTERS This is a valuable input for the marketers; they can see in what areas baskin is lagging. Of course price being one of the most important determinant of consumer buying and baskin is rated only 1.3 on a scale of 6, so this is one area they can improve upon. Respondents rated their service delivery and quality as of top notch so can work upon these USP to build a better brand image. Also Vadilal should try to promote its flavor mantra to the masses.

INFERENCES

On the basis of certain test conducted on the data collected some inferences can be carved out, these are categorized as below. CHI SQUARE TEST A. Test For Ascertaining Dependability Between Age Of The Consumer And Frequency Of Their Buying. B. Test For Ascertaining Dependability Between Areas And Place Of Buying ( Ie Retailers Or Street Vendors) C. Test For Ascertaining Dependability Between Preference Of Brand Or Flavor And Buying Behavior (ie Impulse Buy Or Special Plan Buy) RESULTS It was evident that there exists relationship between age of the consumer and frequency of buying. The test result shows that they are dependant variables. Regarding second test it also shows that the two variables concerned, ie. Areas and place of buy , are dependant . In third test the same relationship was established and the variables were found to be dependable.

INFERENCE OUT OF RESULTS

As depicted that age of the consumer and frequency of buying are dependent variables. Respondents vary in their frequency of consumption dependant on their age. It can be inferred that people above the age of 25 , are less frequent in buying ice cream when compared to respondents below 25 years of age. Majority of the respondents in the age group of 16-25 years have ice cream once a week or may be even 2 to 3 times a week, so the marketers can position their product taking cues from this valuable input. Respondents above 40 years assigns ice cream eating to some special event and occasions or may be once a fortnight. As concerning the test on areas and place of buy, it can be easily inferred that respondents of certain areas prefer to buy it from proper retail outlets, while respondents of other areas prefer buying from street vendors. This bias in buying place can be attributed to lack of proper retail outlets in certain areas , while proper channel in some areas. Marketers can look upon this area bifurcation to look out for potential markets and places to promote their product. As a instance majority of respondents from east and west delhi preferred buying from a street vendor, while in south delhi respondents buy it from retail outlets. Certain very crucial and interesting observations were sighted in test of dependability between buying behavior and brand or flavor preference. Majority of respondents going for a ice cream pre planned preferred the brand as expected before conducting the test. But the major surprise came from studying the behaviour of respondents when they go for ice cream impulsively, they still prefer the brand but this factor is marred by shortage of proper retail outlets near by so they eventually go for any brand just sticking to their flavor. So there is a high degree of dependability between the concerned variables.

LIST OF TABLES AND BAR CHARTS (CHI SQUARE)

TEST I Case Processing Summary Cases Valid N how often do u eat * age group Chi-Square Tests Asymp. Sig. (2Pearson ChiSquare Likelihood Ratio Linear-by-Linear Association N of Valid Cases Value df 18.903(a 12 ) 18.365 12 4.787 460 1 sided) .091 .105 .029 460 100.0% 0 .0% 460 100.0%

Percent

Missing N

Percent

Total N

Percent

a 1 cells (5.0%) have expected count less than 5. The minimum expected count is 2.37.

Bar Chart
age group 0-15 16-25 60 26-40 40 &above 50

70

40

t n u o C
30 20 10 0 everyday once a week 2-3 times fortnight on occasions

how often dou eeat

TEST II
Case Processing Summary

Cases Valid N Purchase point * region 460

Percent 100.0%

Missing N 0

Percent .0%

Total N 460

Percent 100.0%

CHI SQUARE TEST Asymp. Sig. (2Pearson ChiSquare Likelihood Ratio Linear-by-Linear Association N of Valid Cases Value df 15.533(a 5 ) 15.622 5 13.090 460 1 sided) .008 .008 .000

a 0 cells (.0%) have expected count less than 5. The minimum expected count is 20.38.

Bar Chart
region NCR S.DELHI N.DELHI 80 Central Delhi E.DELHI W.DELHI

100

60

t n u o C
40 20 0 retail vendor

purchase point

TEST III
Case Processing Summary

Cases Valid N brand or flavor * impulsive or special buy 460

Percent 100.0%

Missing N 0

Percent .0%

Total N 460

Percent 100.0%

Chi-Square Tests Asymp. Sig. (2Value Pearson ChiSquare Continuity Correction(a) Likelihood Ratio Fisher's Exact Test Linear-by-Linear 4.245(b) 3.849 4.280 Df 1 1 1 sided) .039 .050 .039 .049 .040 .025 Exact Sig. (2sided) Exact Sig. (1sided)

4.236 1 Association N of Valid Cases 460 a Computed only for a 2x2 table 69.45.

b 0 cells (.0%) have expected count less than 5. The minimum expected count is

Bar Chart
impulsive or special buy impulsive special

200

150

t n u o C

100

50

0 brand flavor

brand or flavor

RECOMMENDATIONS
As a research i came to following conclusions and provide the following recommendations to the marketing team of vadilal. Conclusions will try to provide the best, possible and feasible solution to the problems defined previously. The ongoing below the line promotion policy is not the major problem of the company. As the output of the research suggested that people are aware of the VADILAL as a premium brand. We should understand that its not all about promotion. The major attribute on which VADILAL is lagging is the availability, the marketers can work out a new promotion policy which not only should promote awareness but should also emphasize on the easy availability of its product. When finding answer to the query that how the target market rank Vadilal when compared to their competitors??, I can come up with only one answer they rank or prefer Vadilal as the last when compared with other premium brands.. For long the company has differentiated on the flavors available and the rich and creamy texture of the ice cream. Do consumers want this, is it that important? Are consumers brand loyal or loyal to a particular flavor.
Yes, the consumer wants this. The differentiation on the flavors are the USP of Vadilals, respondents having Vadilals ice cream rank its quality, service and flavor as of top notch.. So the company should not even think about any change in its flavor policy.

Regarding preference of brand or zeal for a particular behaviour, the test conducted already explained that this preference depends primarily upon the buying situation.

 The point of purchase is very important. As depicted by the research that there is disparity in place of buy when it is compared with the different areas concerned, one reason may be lack of proper retail outlets at strategic places. Company should expand on landscape of upcoming malls in urban India, the strategic position on malls will automatically place its retail outlets at the requisite places. Regarding the small areas where is no surge of malls , company can go for small franchise outlets, so it can consolidate the market share. Vadilal needs to follow a defense strategy in order to ensure survival in the current premium market segments. They should use position defense strategy ie, building superior brand power and making the brand almost impregnable. They can also attack other premium players by catering to certain unexplored areas; they can go for opening exclusive kiosks in so far unexplored areas. Vadilal can come up with a low priced ice cream to compete with the other low priced ice creams and side by side promote its premium high priced ice cream. Vadilal can come up with packaged ice creams in form of bricks, it will add a new product attribute to their already huge array. This will benefit Vadilal in away that the consumers can relate to the brand in their home refigrators. Vadilal should consider new retail outlets avenues in form of small shops , small franchises, exclusive franchisees kiosks.

SUGGESTIONS
TRY TO BUILD A HIGH BRAND RECALL RATE BETTER AVAILABILITY AND ACCESSIBILITY IN CERTAIN KEY AREAS BASKIN CAN PROMOTE THEIR PRODUCTS THROUGH STREET VENDORS LIKE IN east and west delhi.

Vadilal SHOULD DEFINITELY GO OUT FOR OPENING EXCLUSIVE KIOSKS

IN FOLLOWING AREAS -VASANT VIHAR -GK II -SAKET - ROHINI SEC 14 -CONNOUGHT PLACE REVIEW OF PRICE POLICY TRY TO CAPTURE ON CURRENT ON GOING MALL HOOPLAH, OPEN RETAIL OUTLETS IN THESE MALLS. A MEDIA POLICY EMPHASIZING ON ITS MAJOR USPs i.e. Flavor and quality. - Gaziabad - FRIDABAD SEC15

From the output of my research conducted i come to a conclusion that the main reason because of which Vadilal is lagging behind is lack of readily accessible outlets. Even we as consumers and respondents wont mind paying a price for a quality product, but we dont find the outlet at strategic positions. As majority of ice creams eater have it impulsively, they wont like to travel distance to have it. So Vadilal should consider expanding its retail base.

BIBLIOGRAPHY
Website
www.vadilal.com www.wikipedia.com www.scribd.com

Magazines & newspaper

Hindustan times Times of India India today Business today

QUESTIONNAIRE
1. What do you prefer when it comes to choosing an Ice cream? a. Customer Service c. Connectivity b. Fare d. Others

If others, then please specify_____________________________________ 2. What additional facilities you look for: a) Availability b) Varieties c) Schemes [] [] []

d) Any other, please specify______________________________ 3. Compare Vadilal on the basis of: a) Taste b) Quality c) Cost d) Service 4. Have u availed the different schemes and packages offered by Vadilal from time to time? Yes [ ] No [ ] If yes, please specify ______________________________________

5. Which is your preferred Company? Amul: ___________ Kwality walls: ___________ Baskin robins ___________ Mother dairy ___________

6. Have you taste any other brand other than Vadilal? Amul: ___________ Kwality walls: ___________ Baskin robins ___________ Mother dairy ___________ 7. Name: _________________________________________________ 8. Contact number: __________________________________________

QUESTIONNAIRE DESIGN AND PRETESTING

Before the questionnaire is implemented in actual field, it is imperative to test it on a small sample of respondents in order to identify and eliminate potential problems. The questionnaire formulated for this research has been pre-tested. SAMPLE SIZE: PRETEST # 1 PRETEST # 2

AREA (S) COVERED: The result of the pretest is as follows: QUESTION #1 Do you eat Ice Creams? Yes No If No, then please proceed to question no-9 CHANGE IN THE ORIGINAL QUESTION: Replaced like with eat. The reason is that even if a person likes an ice cream and does not consume it then he is of little importance to the research. This question is an opening dichotomous question.

QUESTION # 2 If yes, then how frequently do you consume ice-creams? Everyday 2 3 times a week Once a week Only on occasions once a month once a fortnight

CHANGE IN THE ORIGINAL QUESTION This question is a multiple-choice question aimed at deducing the consumption pattern of the sample. No changes were made after pre testing.

QUESTION # 3 Do you specially go out for ice creams or is it an impulsive buy? Specially go out for ice- creams Its an impulsive buy CHANGE IN THE ORIGINAL QUESTION This question is also a multiple-choice question. The only change in this question after the pretest was to include the field doesnt know/ cant say dont know/ cant say.

QUESTION # 4 You prefer purchasing ice-creams from Street Vendors specify)__________ Proper Retail Outlets occasion. CHANGE IN THE ORIGINAL QUESTION This is again a multiple-choice question with an option, which is open ended. There was no change in this question after the pre test. Depends on the Others (please

QUESTION # 5 While purchasing an ice cream to do you go for Brand or the Flavor More for Brand Name More for Flavor For Brand and taste equally No specific preference

CHANGE IN THE ORIGINAL QUESTION This is a multiple-choice question. There were no changes made in the question after the pretest. QUESTION # 6 Do prices affect your decision to buy an ice cream of a particular brand? Yes No CHANGE IN THE ORIGINAL QUESTION This question is also a multiple-choice question. The only change in this question after the pretest was to include the field doesnt know/ cant say Dont Know/ Cant Say

QUESTION # 7 Which of these ice-cream brands do you prefer? Kwality Walls Nirulas Vadilal Cream Bell

Others (please specify)__________________________

CHANGE IN THE ORIGINAL QUESTION This question is also a multiple-choice question with an open-ended option. No changes were made after the pretest. QUESTION # 8 Does the location of the retail outlet affect your choice of brand( as in will you go in for a nearby located outlet whichever brand it is, or go out specially for your brands outlet Irrespective of its location) Yes No CHANGE IN THE ORIGINAL QUESTION This question is also a multiple-choice question. The only change in this question after the pretest was to include the field doesnt know/ cant say QUESTION # 9 Have you tasted Vadilal? Yes No If No then please proceed to the personal information table. CHANGE IN THE ORIGINAL QUESTION This is a simple dichotomous question. No changes were made to the question after the pretest. Dont know/ cant say

QUESTION # 10 Please rate the following Brands in terms of your prefernce on a scale of 10 where 1 denotes not so preferable and 10 denotes greatly preferable. Brands/Prefernc e Vadilal Nirulas Cream Bell Kwality Walls CHANGE IN THE ORIGINAL QUESTION This is a grid question and no changes were made to the question after the pretest. QUESTION # 11 Please rate Vadilal on a scale of 6 on the following parameters where 1 denotes not so preferable and 6 denotes greatly preferable. And numbers between 1 and 6 reflect intermediate degrees of preference. Parameters/Preferences 1 Prices Location of outlets Flavor Quality Service Delivery 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10

CHANGE IN THE ORIGINAL QUESTION This is a grid question and no changes were made to the question after the pretest. PERSONAL DETAIL SECTION The person details section is aimed to ascertain the age and other demographic details of the respondents.

QUESTIONNAIRE DESIGN 1) Do you eat Ice Creams? Yes No If No, then please proceed to question no-9. 2) If yes, then how frequently do you consume ice creams? Everyday 2 3 times a week Once a week Once a fortnight once a month only on occasions

3) Do you specially go out for ice creams or is it an impulsive buy? Specially go out for ice- creams Its an impulsive buy 4) You prefer purchasing ice-creams from Street Vendors specify)__________ Proper Retail Outlets Others (please dont know/ cant say

5) While purchasing an ice-cream to do you go for Brand or the Flavor More for Brand Name More for Flavor For Brand and taste equally No specific preference 6) Do prices affect your decision to buy an ice cream of a particular brand? Yes No 7) Which of these ice-cream brands do you prefer? Kwality Walls Nirulas Vadilal Cream Bell Dont Know/ Cant Say

Others (please specify)__________________________ 8) Does the location of the retail outlet affect your choice of brand (as in will you go in for a nearby located outlet whichever brand it is, or go out specially for your brands outlet Irrespective of its location) Yes No Dont know/ cant say

9) Have you tasted Vadilal? Yes No If NO please proceed to the personal detail section give at the end of this page. 10) Please rate the following Brands in terms of your prefernce on a scale of 10 where 1 denotes not so preferable and 10 denotes greatly preferable. Brands/Prefernc e Vadilal Nirulas Cream Bell Kwality Walls 11) Please rate Vadilal on a scale of 6 on the following parameters where 1 denotes not so preferable and 6 denotes greatly preferable. And numbers between 1 and 6 reflect intermediate degrees of preference. Parameters/Preferences Prices Location of outlets Flavor Quality Service Delivery 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10

Personal Details

Name: Address:

________________________________ ________________________________ ________________________________

Contact No. ________________________________ Age: Gender: ________________________________ ________________________________