Water start running in everybody mouth as the name appear, and it's not like that only kids or young have interest even ice cream is well capable of bringing water in mouth of old once also, here age no bar .Ice cream can be very helpful in making someone mood or he/she may be upset by some reason, offer ice cream to him/her; suddenly there will be change in mood and a smile will appear. It is not like that keep on heating ice cream is good for your health, it can cause harm to your teeth because now a day ice cream are coming with many compositions of different type of material and chemical mix with your ice cream. Ice creams are categorized in two ways - one is natural ice cream and other is conventional ice cream. Conventional ice cream contains added flavors which are made of chemicals like Diethyl glycol, Aldehydec-17, Amyl acetate, Butyraldehyde, Benzyl Acetate and other chemicals to give a particular flavor. These chemicals are highly toxic in nature and can harm body system, can change the malfunctioning of body and are a major reason or symptom behind rheumatoid arthritis. These chemicals are found to be major reason behind rheumatoid arthritis symptoms found in the patients. In one word, rheumatoid arthritis should avoid ice cream from their diet. Natural ice cream is made up of milk and natural pulp of fruits like strawberry, cherry, mango, banana, grapes, various fruit juice and other organic ingredients. So far natural ice cream looks good. So before going for an ice cream, you should think over because your health come first then any taste or flavor. So choose better brand because they make Ice-ream that are good source of vitamin A, thiamine , niacin and vitamin E. They think for your health and your family together with delicious taste.
Natural Ice Cream
The ice cream parlour which began as a small initiative in 1984 stands in 2006 as an entity with profitability as high as Rs 1.4 crore and with determination to double it in the subsequent financial year. Mr. R. S. Kamath is the brainchild of one of Mumbai’s best known ice cream brands – the Natural Ice cream. Since its inception the company has managed to build its equity purely through word-of-mouth. Natural ice cream has gained the reputation as being the most sought after ice cream parlours in Mumbai especially among the young people. It enjoys a very substantial footfall at its outlets, making thus evident the facility and service orientation applied to it. Natural ice cream as a company has been registering a consistent growth over the years. R. V. Mallya, General Manager, attributes this growth partially to the changing – lifestyles, eating habits and the increasing per capita income and significantly to the quality of the products offered by the company thus enabling customers to be retained and also augmented through a good word-of-mouth. However, although the company has a strong position it does face challenges. One in terms of continually innovating and introducing new products coupled with consistency
by deciding to add bits of fresh fruits to the ice creams. one was Kamath’s failure in the seventh grade. The split with his brother was in 1984 and he realized that if he had to prove himself he had to initiate a very novel idea and enterprise on it. What dawned on him was to introduce a business venture in which he had domain expertise as well as one which would be unique. He then had only 3 as staff members and his wife assisting him then. So armed with the basic skill of making ice cream the traditional Indian way.
. fast food and juices.
About Natural Ice cream
In 1984 with an initial investment of just Rs 3 lacs. by embellishing his traditional ice cream with fruit. they often poured milk on it. Moving away from the artificial was his unique selling proposition. Kamath had gained a lot of proficiency while with his brother. He did not initially spend on the outlet ambience and instead let his products spea for itself. And hence the brand Natural was born . Hence he added slivers of whichever fruit the customer asked for. it was easier for him to choose the best ones. because of which his father stopped his education and brought him to Mumbai and the second was his split with his brother and their business venture in Mumbai – Gokul. a chain of restaurants serving ice creams. but the idea of fruits came from the fact that his father was a dealer in fresh seasonal fruits. After the initial introduction of traditional ice creams he added a small treat to it. and hence he decided upon making ice creams the traditional way and keeping it completely natural. he started his business. devoid of artificial flavours and preservatives. At that moment the market was dominated by industrial players. from whom he learnt the nuances of fruit trade. This was the first business venture he embarked on all by himself. like Vadilal and Kwality and it had a loyal crowd of customers. and he wanted to run it very cautiously. Since he knew about fruits. Kamath opened his first outlet in Juhu. Amore etc The questions before Management was Should Natural increase its advertising to reach out to a larger segment of the masses? Should it expand beyond the precincts of Maharashtra and Gujarat to enhance its market share?
Early history and Strategy
This success story began with two unfortunate incidents. This also worked as an advantage to him as he was not under pressure to earn high returns immediately. He thought of doing the reverse.and the other through competition from not only local players but also foreign players like Gelato. It struck him that whenever Indians wanted to embellish a seasonal fruit.
ft. In an instance. the ice cream must be sold and consumed within a short time period since its manufacturing. To resolve this issue Kamath began seeking equipments which would not only make the traditional ice cream but also enhance productivity and ensure quality. The process of producing traditional Indian ice cream was not only slow but also laborious and had to be done manually. The philosophy of Naturals is to find the purest and the finest ingredients and craft them into ice cream. Hence he approached a Dairy technologist who educated him on efficiency. After having started with a single outlet of 300 sq. He is even said to have introduced the jamun flavour on the feedback of a customer. It however does not have a distributor network in place and even to places like Pune. He recalls having sold 300 scoops or 12 kgs of ice cream on the very first Sunday of February 1984. He travellled to Saswad. he decided not to settle on anything except the best seasonal fruits and hence traveled across the state to procure them. He continually sought to learn from the customer and incorporated their suggestions effectively to profit from it. Soon he was able to give a wide choice to his consumers. This is the reason why Natural ice cream epitomizes as the finest ice creams of India. All the outlets get their ice cream from a factory in Charkop. of which Sitafal was an instant hit. Mumbai. a small town near Pune for sitafals and to Ratnagiri for mangoes. hygiene and consistency. Nasik and Ahmedabad it delivers through its ice cream factory at Charkop.A few months after the outlet opened he introduced 15 new fruit flavours. Although he had instant success through his specialized products. 4 in Pune and one each in Nasik and Ahmedabad.
The journey to a strong market holding was not a smooth sailing one. It is a way of doing business that is as much demanding as it is uncommon. which meant maintaining the consistency in taste was a huge challenge. it has grown to possess 46 such outlets in Mumbai. he priced them at a reasonable amount and much lower than the other established brands. in Mumbai. In 2006 it was voted as one of the Top ice creams at the 2nd Consumer Reaction Award conducted by Bharati Vidyapeeth Institute of Management Studies and Research & DNA. As the process uses no preservatives and fresh fruits are added. a customer informed him of how other businesses were getting innovative with fruits and ice creams in places like Africa and Singapore. The ice cream is dispatched in batches to ensure that only fresh produce is stocked at the outlets. bacterial quality. It also had to be made in batches to ensure that it is fresh. These suggestions were seriously acted upon and improvements were accordingly made. Once the idea of combining traditional ice creams with fruits proved successful.
He also faced other challenges like de-seeding sitafal. General Manager (Marketing). It has a range of ice creams particularly targeting children. said. Gujarat Corporation Milk Marketing Federation (GCMMF). Sodhi. hold contests and promotions. Kwallity Walls : Kwallity Wall’s was launched in 1995 as Hindustan Unilever Ltd ‘s. Cool buddies. The market is broadly divided into the branded and the grey market. ‘During summer on an average sales increase by 30-35%. 52554 million (1325 USD). Eventually he found a machine to do it. Our offers such as combo packs and 1+1 free etc. increase during summers. Its brand Chillz targeting the entire family aired its TV commercial with the tagline. With a market share of 10% HLL is the second largest player in the branded ice cream segment after Amul which enjoys a whopping 37% market share. like the Lic Lolleez. The major brands include Kwality Walls. 800 crore. As it was the most popular flavour it had to be done in huge quantities. offering goodies to them . S. It also targets the segment aggressively – it arranges a media blitzkrieg in summers and plans to increase the number of carts outside schools. ‘Goodness Inside’. an orange based ice cream dessert and the Toffee Twist. The total market is worth Rs. The organization is a state level apex body of milk cooperatives in gujarat which aims to provide remunerative returns to the farmers and has 13141 village societies and 13 district cooperative milk producers’ Union. The sales turnover for the year 2007-08 was Rs. as in winter the sales fall sharply and in summer there is a steep increase in sales. Mother Dairy : Mother Dairy ice creams launched in the year 1995 have shown continuous growth over the years and today has approximately 62% market share in Delhi and NCR. advertisement and summer schemes. Amul : R. developed and adopted equipments like mechanical churners to improve efficiency. Even his educational background poised a problem to him at one point of time.’ Amul recently launched a range of Probiotic and sugar free ice creams targeting or rather catering to the health conscious and diabetic touching a new category of consumers who were unable to indulge in delightful ice creams. The Indian ice cream market is characterized as a highly seasonal market. master brand for ice creams and Unilever claims to be the world's biggest ice cream
. the latter consisting of small and cottage industry players. however.Gradually he custom-made. Amul and Mother Dairy. 2000 crores of which the branded market is valued at Rs. a single person could deseed only 2 kilograms of it a day. It introduced new flavours like O’blast. He was unable to handle the taxation issues
The Indian Ice cream market
The ice cream market witnesses a lot of action during summer as the companies in order to achieve maximum sales and compete amongst the others in market release hordes of promotional campaigns.
the organised players have not been able to extend their distribution chain to small villages/towns due to the size of the market being small there and the nonavailability of cold chain. You must give your customer something unique. Natural’s hand-churned ice-cream is not whipped. Vadilal in Gujarat. started just a year ago and has successfully established itself considering quality and innovation. For instance. In line with his principle Natural ice cream constantly introduces new fruit flavours. These parlours are also ready to make competition fierce with their unique and innovative flavours which are launched during summer. In the last two years. Moo. with an annual turnover of €5 billion. Pastonji. Arun Ice-creams in south India enjoy a dominant position in their respective regional markets. only then you can survive’. A number of gelato serving parlours have mushroomed in the city. It follows a model of Product Innovation and with it has created a niche for itself hence distinguishing it from its competitors. Natural`s operations are restricted to Maharashtra and Gujarat at present. Pastonji has already launched new items in special shape and well decorated containers like magic swirl. Paddle Pop. a calcium enriched ice cream. the serving style. Hand-churned ice-cream is structurally different from industrially made ice-cream since hand-churned ice-cream doesn’t contain
. Nashik. Unlike the machine-made ice-cream. besides the other dry fruit and chocolate based.an Italian icecream. Mumbai has been fortunate to experience the Gelato.
Natural Ice Cream’s Positioning Strategy
Natural has been manufacturing 100% vegetarian ice creams and this has given it an edge in the Indian market.manufacturer. Jaipur and Mehsana. and it aroused a great response. ‘in the food industry. By introducing a new product. Amore. creamier and richer. However. While Pastonji has franchisee operations at Pune. mini sandwich. Baskin Robbins and Natural`s ice-cream are some significant players in Mumbai as they have a wide and strong distribution network. players like Pastonji and Dinshaw`s in Maharshtra. At present there are 30 such parlours across India. It also introduced the raw mango flavour and called it ‘Pickle’. mini sundae/swirl etc. However it is observed that customers’ at Naturals often prefer the fruit based to the other flavours. the company lured kids and their mothers with its nutritional offering. and enjoy great popularity. The Indian ice-cream market is hence still dominated by a large number of small local manufacturers and regional players. That makes consumers who have tasted it never want to settle for artificially. The flavours available at Naturals are generally fruit based. the consumers would not hesitate to consume a scoop of Natural ice cream on any day of the year. HLL is also planning to extend its retail brand ‘Kwallity Walls Swirls’ parlours in accordance with the growing number of shopping malls across the country.flavoured mass produced ice-cream again. Kamath. one must have something different. Its products are termed as ‘Pleasure Food’. Considering the religious aspect within the country. the item or the taste. so it is denser. Feast. sundae tubs. a) Product range : To quote Mr. Some of them are Cornetto.
emulsifiers. The Natural outlets also offer a waffle cone for just an additional Rs. Also. As the product is fruit based and quickly perishable it ensures that the delivered quantity is consumed within ten days. But they all are priced at the same amount. A rigid quality control program is followed at the company at its Mumbai plant. sitaphal. Fruits are bought from Metro and the APMC market situated in Vashi. Network Suppliers: The main raw materials for ice cream manufacturing are milk. One cannot classify its indulgence on the price factor but can on the taste factor. tender coconut & water melon are seasonal. Recently counters in malls like the Mega Mall in Mumbai have commenced. The potential franchisees usually do the analysis and give the report to the company. Mumbai. 5 against its competitors like Baskin Robbins who charge Rs. customers also are offered free home delivery. b) Price : Rs. c) Place : Each Natural parlour is opened after a demographic and demand analysis of the region is done. it tastes best within a day or two of making it. with seating facility that gives a warm experience to the customers. kesar pista and anjeer.
. Based on the customer response and the fact that a complaint of being served stale or poor quality ice cream at Natural is not yet heard of speaks for itself. competitors and demand factor. Franchise: The potential franchisee studies the area in terms of its capacity. Mumbai. e) Physical Evidence : Its outlets provide good ambience. coffee walnut. papaya . 11 for it. All the suppliers are local to reduce the cost of transportation. Distribution is centralized from the Mumbai factory. choco cream. Some like the chickoo. badam. Creamy ice creams which combine Indian kulfi with natural flavours with fruit pieces in them is an innovation which Indian consumer had never experienced. so it must be eaten fresh. Like the chocolate almond. 28 bucks a scoop is perhaps the lowest price among branded ice creams. sugar and fruits. Distributors: As it is a premium product the company does not believe in selling to the customers through the local shops. The franchisees have to pay a deposit of Rs 10 lakh to the company before he begins operations.pineapple. APMC caters to the seasonal fruit requirement and the Metro market supplies off season fruits to the company’s factory located in Kandivali. d) Processes (Service Quality Offered): Along with being served at the parlours. They have dedicated supplier for each product who are also responsible for timely delivery. Natural even arranges to carry ice creams in thermocol boxes when on a long journey or on a picnic. This is done to increase their visibility and serve the customers whose shopping habits are shifting from shops to malls. Natural also converts their ice creams to milkshakes priced reasonably. If informed a day prior. hand-churned ice-cream contains no preservatives and often contains fruit. mango. Some ice creams are available around the year.
Kamath soon plans to shift into a 20. The son of a fruit-seller. chairman and managing director. It already has around 100 natural flavours. 54. It is continuing to innovate and experiment to provide new and unique flavours to its consumers. the parent company of Mumbai’s well-known Natural Ice Cream. Kamath’s fondness for fruits began in 1984 when he sold his first fruit ice cream from a small shop in Juhu Scheme in Mumbai.000-square-foot state-of-the-art facility. with an annual turnover of Rs 3. Though Natural has outlets all over Mumbai.
Success and the Future
Natural ice cream has achieved its success sans advertising and also seems confident that it is a household name and has a stream of loyal customers. chikoo and coconut could evoke immense passion in someone becomes crystal clear within 10 minutes of striking a conversation with Raghunandan Srinivas Kamath. CMD Our Times Ice C that has a current turnover of Rs 30 crore
Currently operating out of a 4. “I knew I had to specialise in something to stand out. he wants to take Natural to Delhi and Bangalore next year. the company has dedicated vans and trucks. but that does not stop him from introducing more of them. It has created a niche which keeps at bay the threats posed by any new entrant.
That mango.” says Kamath. However now with the increasing opportunities and the expanding market through India’s liberalization Kamath sees the need to expand. Nasik and Pune.For distributing the product from the factory to the outlet in Mumbai.5 crore. Pune and Ahmedabad currently. Present in Mumbai. This is when my love affair with fruits began. However for the outlets at Ahmedabad the company uses thermocol packing which has sustainability for 24 hours and uses the railway services to deliver.
R.S Kamath.000-square-foot factory that produces four to five tonne of ice-cream every day. its Juhu Scheme branch is still the big money-spinner.
. Our Times Ice Cream. custard apple.
This is when he decided to adopt the franchisee model. Now he plans to double the number within the next year. the machines had to be custom made. Kamath is still experimenting. “I had no knowledge about keeping regular accounts.
Success mantra: Even though Natural has introduced 100 flavours till now.
Though the manual labour earlier necessary for ice creams has been done away with. artificial colours and ingredients.It was an unfortunate encounter with the Income Tax Department that led to the company’s expansion. sourcing equipment hasn’t been easy for Kamath. That despite the fact that till now Natural has introduced 100 different flavours till now and has 21 on its menu right now. Since he insists on not using stabilisers.” says Kamath. who lost everything to the tax department in 1994 except his brand name and his recipes. But if there’s one thing that hasn’t changed. isn’t he?
. Growth path: It took him 25 years to open 51 outlets. Scoopaholic. even 25 years on. Turning point: When he lost his entire income to the IT department in 1994 for failure to keep proper accounts. it’s Kamath’s experiment with new fruits.