EXECUTIVE SUMMARY

We have prepared a project report on “Customer Satisfaction towards Havmor Ice-

cream”. The introduction of the project studied first; it includes conceptual maters of
understanding the consumer satisfaction towards Havmor ice-cream. In this the research
project effort is applied to find out the satisfaction level of customer towards Havmor ice-
cream.
 CHAPTER 2: INTRODUCTION

INDUSTRY PROFILE

Introduction

Though India has a low per capita ice cream consumption of 300 ml per annum, the trend is
slowly changing due to a number of reasons. DARE explores the dynamics of the business.

Indian summers are synonymous with ice creams. Come summers, and you will see a number
of colourful.

Pushcarts selling the choicest of ice creams in numerous flavours from the traditional vanilla
and chocolate to unusual varieties like Mother Diary’s Shahi Nazrana. If that doesn’t baffle
you then the ice cream range definitely would, for example the ice cream range for the
children would be entirely different from that for the teenagers or for that matter adults. Or,
for those who like to have ice cream in peace, there are a number of ice cream parlours that
are opening shop.

 But did you know that a 100 ml scoop of your favourite ice cream that you ordered may
contain up to 50% air! This makes the business a highly profitable venture to get into –
sometimes, the profits can go upto 100%! However, there are several challenges to this
business as well. In this story, DARE attempts to find out the dynamics of the business.

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 litres 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
litres 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 litres 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.

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 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 has contents below these specified
standards.

The basic steps in the manufacturing of ice cream are generally first blending the ingredients,
pasteurization, and 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 litter. And in one litre you can add up to one litre of
air. Therefore, per litre the mix would cost you approximately Rs 32. If you take a 150 ml
cup, you can make 13 cups of ice cream from one litter 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, labour, transportation, advertisement cost etc. It comes to approximately Rs 10 per
cup.”

Depending on the variety, the profit margin therefore can go up to even 100%. While for
bigger players, the distribution and advertising costs eats into the profit margins, for smaller
players, it is the volumes that matter.

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.

What is the cost of setting up a small-scale ice cream manufacturing unit? Manish Vithalani
says, “The cost for setting up a small-scale ice cream plant could come to approximately Rs.
10 lakhs, including the cost of a ice cream plant, labour (3-4), storage freezers, and so on.
This price is not including the land cost.” Of late, a number of players who have entered the
segment are playing on innovative aspects, for example, natural flavours made from fruits.
Some players like Mumbai-based Space Dotz are also coming up with newer technology.

According to Dilip Jagad of Space Dotz,

“Unlike the normal ice cream, our product comes in the form of balls. Besides, the product
has no air content and uses cryogenic technology, used in rocket science.”

Another noteworthy innovation was the pro-biotic and low-fat ice cream bought into the
market by Amul.

The Challenges

There are several challenges that affect the industry adversely. 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 Ahmedabad. 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 flavours of vanilla, strawberry and chocolate.
And to be on the safer side, major players tend play around these flavours only. For big
players, regional competition from smaller players is another major issue.

Another major problem faced by the industry players, especially while expansion, is poor
infrastructure such lack of cold storage and in case of rural penetration, even erratic power
supply becomes an issue. This is especially true for big players. 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.”

Ice-cream

Introduction
The ice cream market growth picked up after de-reservation of the sector in 1997. Of the total
size of Rs 15-16bn, around 30-32% is in the hands of organized sector valued at Rs 4.9bn,
rest all is with the unorganized sector. Among the major players in this industry Hindustan
Lever has a market share of around 50%, represented mainly by Kwality Walls brand. Amul
with an estimated market share of 35% is rapidly gaining market share and lastly Vadilal is
the player in the national market with 8-9% of the market share.

Production area
In rural areas, kulfis / ice creams made by small / cottage industry are popular. The market
for organized sector is restricted to large metropolitan cities. In small towns and villages,
there are thousands of small players who produce ice- creams / kulfis in their home backyard
and cater to the local market. Almost 40% of the ice creams sold in the country are consumed
in the western region with Mumbai being the main market, followed by 30% in the north and
20% in the south.

Growth promotional activities

The Indian government adopted the policy of liberalization regarding the ice cream
industry also and it is since then that this sector has shown an annual growth ranging from
15- 20% per annum for last 1- 2 year. Presently in 1999- 00 it is estimated at worth of Rs15-
16bn. This growth rate is expected to continue for another next 2- 3 years because of lower
base

Types
Indian Ice Cream market can be segmented in three different ways, namely on the basis of
flavours; on the basis of stock keeping units / packaging and on the basis of consumer
segments. On the basis of flavours the market today has a number of flavours like vanilla,
strawberry, chocolate, mango, butterscotch a number of fruit flavours, dry fruit flavours
traditional flavours like Kesar- Pista, Kaju- Draksh etc.
The market is totally dominated by Vanilla, Strawberry and chocolate, which together
account for more than 70% of the market followed by butterscotch and other fruit flavours.

Market Overview
The industry is growing steadily with the northern and western regions accounting for
the largest consumption

•Size and Growth

 Worth USD XX mn in 2008
 Growing at a % p.a. in 2005-2008
 Forecast to increase by b% to reach USD YY mn in 2009

•Characteristics
 Northern and western regions together account for c% of total market consumption
 Profit margins range from u% to v% depending on the product segment
 W % of ice cream sales occur during the summer months of April-June
 X % of sales is through street vendors
 Vanilla is the highest selling flavour and together with strawberry and chocolate it
accounts for y% of the market

COMPANY PROFILE

History

Small Beginning, Big Vision, Great Ambitions. Havmor Ice Cream began its branded life in
1944 in Karachi, in undivided India. By 1947, it was a popular local brand there. 
But in 1947, in the wake of the partition, its founder Satish Chona had to join the exodus into
India, with virtually no moveable assets. Searching for a new turf, he tried out Dehra Dun and
Indore, and finally, settled down in Ahmedabad.
No, it was not a case of “Brand Relocation”, or anything else as fanciful. He had to start the
venture from scratch again. In fact, he had to begin from a hand-cart at the Ahmedabad
Railway Station, churning out the Ice Cream manually.

 He called this fledgling brand 'Havmor' - a neologism for 'Have More' - which meant the
customer got more value for money, and more taste to relish from his Ice Creams. 

Perhaps he didn't know it then, but he had laid the foundation for one of Western India's most
enduring market legends. And good quality, like good character, wins over the situation
sooner orlater. 
Today, Havmor Ice Cream is a delicious facet of Western India's daily life. It reaches
hundreds of thousands of consumers through 100 main outlets and 20000 plus dealers. 

That's a very very long way from a hand-cart. 

Good Old Values, New Generation Leadership

Mr. Pradeep Chona, son of Late Shri Satish Chona, today heads the Havmor conglomerate.
He has continued his father's quality obsession and streak of innovation. 

To his father's motto - 'Achchai, Sachchai, Safai'. He added a suffix - “Navu Su Che?” 

Now that is quite simple, but a powerful reason for taste innovation. In fact, that is not even a
corporate axiom. It is the question regular Havmor customers ask at frequent intervals.
Because they expect Havmor to keep pleasing their palates in new ways, always. 

Mr. Pradeep Chona set off a series of Changes at Havmor - in technology, in quality &
hygiene standards, in management, in HRD and in the overall corporate environment. This
re-engineering was complemented by capacity expansions and a flurry of promotional
activities, to maintain the company's market presence intact in competitive times... 

Ankit Chona, Mr.Pradeep Chona's son also joined the business after completing his
graduation from the United States. He has been a driving force in expanding the Restaurant
division as well as popularizing the Company owned Ice Cream & Fast-Food parlours known
as HAV FUNN. He has brought a lot of innovation and standardization in the business such
as SAP, GPS System in all vehicles, metal detectors, camera surveillance system empowered
to control from anywhere in the world and many more.

Profile

Our successful business strategy is to provide a good taste. Post its foundation in 1944,
Havmor has progressed to become a blue-chip Ice Cream brand of Western India, placing
itself one of the top three in sales. Through the years we have supplied a varied range of
eatables from Ice Creams like Candies, Topo Cones, Kulfis, to snacks like Samosas, Chana
Puri, Jumbo Grilled along with a range of international cuisines like Punjabi, Mughlai,
Chinese and Continental.

Based in Ahmedabad we have a total of 100 parlours and restaurants spread throughout
Western India and a dealership of 20000+ covering over 35% of the market share. These
numbers indicate nothing more than proving that Havmor has become Gujarat’s favourite ice
cream brand today.

Quality policies

 At Havmor, our customers matter the most and our core strategy revolves around
them.
 We believe in caring for our customers and achieve customer satisfaction by
establishing and maintaining an effective Quality Management System. 
 It is our prime objective to ensure consistency in quality of products and services.
 Continuous training is an integral part of the management at Havmor, which ensures
constant improvement in individual and team performance.

Standards

 Innovation is a way of life at Havmor. And we strive hard to achieve this.

 Our motto is ensuring customer satisfaction and complete value for money.
  We take our responsibilities seriously and everyone, from the individual to the
company, aspires to achieve a higher level of excellence, in our products, as well as
our services.

ISO 9001:2008 Certification

Our standards mean the world to us.

Havmor Ice Creams and related products are manufactured in a state-of-the-art plant at
Naroda, Ahmedabad.

Complete hygiene is a key feature in our world-class plant’s processing facilities. And the
packaging at our plants conforms to international norms.

Product range
Havmor company produces various and different and delicious products. This is the only
company that produces maximum products.

 Candies

 Kala khatta pop

 Lolly pop
 Orange bar
 Kacchi keri
 Double hit
 Mini chocobar
 Kaju candy
 Classic chocobar
 3-D bar
 Raspberry dolly
 Mango dolly
 Chowpaty kulfi
 Zulu bar
  Small Cups (50 ml)

 Vanilla
 Royal gulab

 Big Cups (100ml)

 Royal gulab
 Vanilla strawberry
 Chocolate bonanza
 Chips kaju drakash
 Choco chips
 Butter scotch
 Kaju anjir
 Kesar pista
 Raj bhog.

 Cones (120 ml)

 Ringo bings
 Choco vanilla
 Strawberry
 Chocolate
 Butter scotch
 Raja rani

 Novelties

 Malai kufi
 Cut roll
 Badam pista kulfi
 Raja rani roll cut
 Sandwich ice cream
 Fifty fifty roll cut
 Cassata cut
  Super sunda bon-bon
 Volcano.

 Ice cream soda

 Orange
 Lime

 Family and party packs

 Royal gulab
 Vanilla kaju
 Draksh
 Butter scotch
 Chocolate chips
 Fresh strawberry
 Bonanza bananza
 Swish cake
 Kaju anjir
 Kesar pista
 Lonavli
 Almond carnival
Roasted-badam-anjir.

Major Competitors’ profile

Kwality Wall's
Kwality Wall's is a major producer and distributor of ice cream and other dessert products
in India, Pakistan, Sri Lanka, Malaysia and Singapore. It is a company of Hindustan Lever Limited,
the arm of Unilever in India, and is an extension of the Wall'sice cream brand of Great Britain.

Kwality, the original Indian company, was founded in 1956, and was the first in the region to import
machinery for the mass production and sale of ice cream on a commercial scale. In 1995, in view of
the growth potential of the frozen confections market, Kwality entered into an agreement with Lever,
and has since been known by its current umbrella name. At the same time, other brands acquired by
Hindustan Lever, such as Gaylord-Milkfood, were phased out in favour of promoting the Kwality
Wall's brand. This arrangement allows for local production and sale of Wall's products that are
popular in its home market, such as the Cornetto cone, and to create local variations on others, such as
the Feast Jaljeera Blas
Vadilal
Vadilal BSE: 519156 

(Vadilal Industries Limited) is ranked as the second largest producer of ice cream in India.[6] It has the
largest range of ice-creams in the country, with more than 150 flavors. The group's principal activity
is to manufacture ice creams, frozen desserts and process processed food products. The company is
one of the largest processed food players in India with major exports of frozen vegetables, mango
pulp, mango milk shake, ready-to-eat snacks, curries and breads. Vadilal has approximately 150
‘Happinezz’ branded stores across Gujarat, Rajasthan and Uttar Pradesh. It has also forayed into the
world of real estate, chemicals and forex.
The Managing Director   of Vadilal Industries Ltd., Mr. Rajesh R. Gandhi is the son of the founder
[8]

Chairman, Mr. Ramchandra R. Gandhi. The Vadilal Company became an official corporate entity in
the year 1970, but it traces its origin as far back as 1907. The company aims to be an Indian MNC in
ice creams and while providing products and services at an affordable price without any compromise
on quality. Its major success factor lies in its ability to cater to different market segment through
varied product ranges.

AMUL

The Gujarat Cooperative milk Marketing Federation Ltd, Anand (GCMMF) is the largest food products
marketing organisation of India. It is the apex organization of the Dairy Cooperatives of Gujarat. This State has
been a pioneer in organizing dairy cooperatives and our success has not only been emulated in India but serves
as a model for rest of the World. Over the last five and a half decades, Dairy Cooperatives in Gujarat have
created an economic network that links more than 2.8 million village milk producers with millions of consumers
in India and abroad through a cooperative system that includes 13,141 Village Dairy Cooperative Societies
(VDCS) at the village level, affiliated to 13 District Cooperative Milk Producers’ Unions at the District level
and GCMMF at the State level. These cooperatives collect on an average 7.5 million litres of milk per day from
their producer members, more than 70% of whom are small, marginal farmers and landless labourers and
include a sizeable population of tribal folk and people belonging to the scheduled castes.

The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67.11 billion. It markets the products, produced by
the district milk unions in 30 dairy plants, under the renowned AMUL brand name. The combined processing
capacity of these plants is 11.6 million litres per day, with four dairy plants having processing capacity in excess
of 1 million Litres per day. The farmers of Gujarat own the largest state of the art dairy plant in Asia – Mother
Dairy, Gandhinagar, Gujarat – which can handle 2.5 million litres of milk per day and process 100 MTs of milk
powder daily. During the last year, 3.1 billion litres of milk was collected by Member Unions of GCMMF. Huge
capacities for milk drying, product manufacture and cattle feed manufacture have been installed. All its products
are manufactured under the most hygienic conditions. All dairy plants of the unions are ISO 9001-2000, ISO
22000 and HACCP certified. GCMMF (AMUL)’s Total Quality Management ensures the quality of products
right from the starting point (milk producer) through the value chain until it reaches the consumer.

Ever since the movement was launched fifty-five years ago, Gujarat’s Dairy Cooperatives have brought about a
significant social and economic change to our rural people. The Dairy Cooperatives have helped in ending the
exploitation of farmers and demonstrated that when our rural producers benefit, the community and nation
benefits as well.

The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a business enterprise. It is
an institution created by the milk producers themselves to primarily safeguard their interest economically,
socially as well as democratically. Business houses create profit in order to distribute it to the shareholders. In
the case of GCMMF the surplus is ploughed back to farmers through the District Unions as well as the village
societies. This circulation of capital with value addition within the structure not only benefits the final
beneficiary – the farmer – but eventually contributes to the development of the village community. This is the
most significant contribution the Amul Model cooperatives has made in building the Nation.
 CHAPTER 3: LITERATURE REVIEW

The company is targeting few more cities of Gujarat like Surat, Rajkot, Jamnagar etc. to
mark its presence across the nation. Besides this, the company is also looking at expanding
in countries like US and Dubai through franchising.

(Rahul Gupta and Yogesh Gupta, 2010).

 CHAPTER 4: RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

 To find out the Satisfaction level towards Havmor Ice-cream .

 To find out customers favourite flavour of Havmor ice-cream.
 To find out the how the customer rank according to various characteristic of Havmor
ice-cream.
 Where they rank Havmor Ice-cream as compared to leading market Ice-cream
companies.

RESEARCH DESIGN

In this project, the Descriptive research design has been used in which the data are
collected by cross sectional research design. As the study is done to know the Satisfaction
of customer towards Havmor ice-cream only and as it only describes the level of
awareness and not explains anything the study is descriptive study.

DATA COLLECTION:

For the preparation of the project both types of data are used.

 Primary Data
 Secondary Data
Primary Data:

Primary data are those data which are collected by the researcher for the first time for his use.
These data are pure and therefore more reliable. Primary data gives the original picture of the
study or situation for which they are collected.

In this project, the primary data are collected through the use of survey method. In the survey
the respondents were personally interviewed for data collection.

Secondary Data

Secondary data are those data which are once collected by any other person in past for his
purpose and now being used by the researcher for his purpose. These data are less reliable
compared to primary data because these data may be obsolete with the passing of time and
may have bias information.

In this project, most of the secondary data are collected from internet. Some data regarding
the company were obtained with the help of the company guide.
CHAPTER-4 DATA ANALYSIS AND INTERPRETATION
1. Are you consumer of Havmor Ice-cream?
2. How you come to know about Havmor ice-cream?
3. How frequently you purchase Havmor ice-cream?
4. In what form do you prefer to have Ice-cream?
5. Which flavours of Ice-cream you buy most?
6. Normally from where you usually buy Havmor Ice-cream?
7. What rank you would like to give according to following
characteristic of Havmor Ice-cream?
8. What do you think about quality of Havmor Ice-cream?
9. How would you rate the Havmor ice-cream in following categories?
10.Would you like to include any flavours in Havmor ice-cream?
11.Where you think Havmor ice-cream rank as compared to other ice-
cream available in market?
12.In which field you can think Havmor Ice-cream improves more?
13.Will you advice others to buy Ice-cream?
 Chapter 5: FINDINGS AND CONCLUSIONS

Here are the some of the findings we made after analysing the respondents’
responses.
 Questionnaire
 Name: __________________________

 Age: _____

 Gender: Male: _____ Female: _____

1. How you come to know about Havmor ice-cream?

O Newspapers O Radio O Hoardings

O Family or Friends O Others, Please specify ______________

2. How frequently you purchase Havmor Ice-creams?

O Once a week O More than once in week

O Once a Month O On a special occasions only

3. In what form do you prefer to have Ice Cream? ( Multiple tick mark allowed)

O Candy O Cup O Cone

O Family pack O Roll Cuts

4. Which flavors of Havmor Ice-cream you buy most? (Multiple tick marks allowed)

O Vanilla O Strawberry O Chocolate chips

O American Dry fruits O Paina chips O Kesar pista

O Any other: ____________

5. Normally, from where you usually buy Havmor Ice-creams?

O Ice-Cream parlors O Restaurants

O Local Ice cream shops O Any other _________

6. What rank would you like to give according to following characteristics of Havmor Ice-
creams?
(Rate on a scale of 1 to 5, 1: least important and 5: the most important)

 Price _______
 Availability _______
 Quality _______
 Flavors _______
 Offers _______

7. What do you think about quality of Havmor Ice-Cream?

O Excellent O Good O Neutral O Bad O Very Bad

8. How would you rate the Havmor Ice-Cream?

_______________

9. Would you like to include any flavour in Havmor Ice-Cream?

O Yes O No

If yes, what is that flavour _________

10. Where you think Havmor Ice-cream ranks as compared to other Ice creams available in
market? (Amul, Vadilal, Kwality walls, etc.)

O Top O Next best O Average O Bottom

12. In which field you can think Havmor Ice-cream improves more?

O Price O Quality O Quantity

O Availability O Any other ____________

13. Will you advice other to buy Havmor Ice cream?

O Yes O No