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A REPORT ON

MARKET ANALYSIS OF AMUL ICE CREAMS IN HYDERABAD: A COMPARATIVE STUDY

BY VARUN 09BSHYD0957

GUJRAT CO-OPERATIVE MILK MARKETING FEDERATION LTD (GCMMF) AMUL

A REPORT ON

MARKET ANALYSIS OF AMUL ICE CREAMS IN HYDERABAD: A COMPARATIVE STUDY
BY VARUN 09BSHYD0957

GUJRAT CO-OPERATIVE MILK MARKETING FEDERATION LTD (GCMMF) AMUL

A REPORT SUBMITTED IN THE PARTIAL FULFILMENT OF THE REQUIREMENTS OF MBA PROGRAM OF IBS HYDERABAD
TO FACULTY GUIDE – PROF. TRILOCHAN TRIPATHY COMPANY GUIDE – MR. S V R CHARY

DATE OF SUBMISSION – May 14, 2010

IBS HYDERABAD

CERTIFICATE

This is to certify that the thesis titled “Market Analysis of Amul Ice Creams: A Comparative Study” is a bonafide work done by Mr. Varun, Enrollment No. 09BSHYD0957, in partial fulfilment of the requirements for the award of the degree of MBA and submitted to IBS, Hyderabad. This work was not submitted earlier at any other University or Institute for the award of the degree.

Project Coordinator: Prof. Trilochan Tripathy IBS Hyderabad

AKNOWLEDGEMENT

I would like to take this opportunity to express my sincere acknowledgement to the management of Gujarat Co-operative Milk Marketing Federation Ltd (AMUL), Hyderabad for providing a wonderful opportunity to undergo summer internship programe (SIP) with the company.

I express my sincere thanks to my company guide Mr. S.V.R Chary, Deputy Manager-Sales, Gujarat Co-operative Milk Marketing Federation Ltd (AMUL),Hyderabad for giving me an opportunity to work under his guidance and support during the course of the project. His valuable inputs and suggestions have played a crucial role at every stage in the development of the project.

Words are insufficient to express my gratitude to Prof. Trilochan Tripathy, Faculty, Department of Economics, IBS Hyderabad, my faculty guide, for all the teachings, suggestions and his valuable contributions for deepening my learning of management, market research and the actual work process in the real world. He has been kind enough to correspond with me and being always there with his time, support and advice on the project. I would like to thank all the respondent for their time and support. Finally, I would like to thank the entire AMUL team, my parents and friends for their commendable support, motivation and encouragement at all time which really helped in successful completion of my project report.

Varun

i

Date: May 14.DECLARATION This is to certify that the thesis titled “Market Analysis of Amul Ice Creams: A Comparative Study” is a bonafide work done by Mr. 09BSHYD0957. 2010 Place: Hyderabad Varun . Enrollment No. in partial fulfillment of the requirements of MBA Program and submitted to IBS Hyderabad. I also declare that this project is a result of my own efforts and that has not been copied from anyone and I have taken only citations from the literary resources which are mentioned in the Bibliography section. This work was not submitted earlier at any other university or institute for the award of the degree. Varun.

Certain marketing strategies are being devised for Amul ice cream to help and enhance its market size in Hyderabad. credit. allowing us to identify the share of various brands and local players. leading brands thus provide a comparative analysis taking into account the market size. occupies 28% market share closely followed by the Butterscotch. Other important characteristics of the industry includes product features. trade promotion and competence. Mathematical and statistical (factor analysis) tools are used to analyze the data collected. The research demonstrate that 15 to 35 years‟ age group is the top consumer of the ice cream and Vanilla is the highest selling flavor. back-up and complimentary policy. The study reveals that Amul is the market leader with 35% market share followed by Kwality Walls. trade promotional policies adopted by each brand and other amenities that a retailer requires from a company. The research involves collection and analysis of primary data using a questionnaire. Trade promotion decisions are grouped under three factors named as pecuniary benefits. from various retailers through direct interviews in Hyderabad and secondary data from various sites and online journals and articles. . demand management.ABSTRACT This report offers an insight to the size and shape of the ice-cream market at Hyderabad. It provides the latest retail sales data of Hyderabad. demographic distribution of ice cream. Comparative analysis of all these factors leads to various conclusion and recommendations. It identifies the leading companies. launch of new products.

..8 FACTOR ANALYSIS ............................................................6 SOURCE OF INFORMATION ABOUT NEW VARIANT TO THE RETAILERS ............................................................................... 26 3.............2 SAMPLING DESIGN ...................................................................................................................................................................................................................................... 24 3........................................................................................................................... 20 3...................................3.............................................................. AKNOWLEDGEMENT .....4 FLAVORS ............................... 14 3........................................................................................................................................................................................ 4 1............... 4 1. 18 3..............................3..........................................................................................................4 MAJOR PLAYERS IN THE HYDERABAD ICE CREAM MARKET .............................................................................................. iii 1................................................................................ ii ABSTRACT............................1 PURPOSE AND SCOPE OF THE PROJECT ...... LITERATURE REVIEW .............................................4 COLLECTION OF DATA: FIELD WORK ....................................................1 PENETRATION IN THE MARKET .....3..............................5 STATISTICS TOOL ..................................5........................................7 SALES .... 23 3...................................................................................... 1 1................................................Table of Contents Page no...................................4 LIMITATIONS OF THE STUDY ..................................................................2 AN INTRODUCTION TO THE INDIAN ICE CREAM INDUSTRY ...............................................3...............................................3 TYPE OF ICE-CREAM ............................................................................3 RESEARCH METHODOLOGY ..........................8..................................1 TRADE PROMOTION POLICY ........................................ 3 1...........1 RESEARCH DESIGN ..............3 SAMPLING ............................................................ 22 3............................. i DECLARATION ............................3 MAJOR PLAYERS IN THE INDIAN ICE CREAM INDUSTRY ......................................................... 26 .............................................................................................................................. 5 1............... 2 1.............................. 1 1................. 9 2... 2 1.................................................... 2 1................ PRIMARY TABULATION AND INTERPRETATION ............................................................... INTRODUCTION .......................................................................................5 TYPE OF PACKAGING .................................................................................................................................................................................... 21 3.. 11 2...............1 AN INTRODUCTION TO THE INDIAN DAIRY INDUSTRY ..........................2 OBJECTIVES OF THE STUDY .................................................. 23 3... 6 2..... 7 2.......... 18 3..............................................................3............... INDUSTRY ANALYSIS...................................... 5 1................................. 7 2...........................................................................................................................................................................................................................................................2 DEMOGRAPHIC DISTRIBUTION .......

..........................................9................................1 TRADE PROMOTIN POLICY ........................................9.............. 40 3........3................................................ CONCLUSIONS .........1 FACTORS FOR TRADE PROMOTION POLICY . 42 4.....................2 CHARACTERISTICS OF ICE CREAM INDUSTRY........................................................................................................................................................................................................................................................................ 47 ANNEXURE II........................................................11........................................................................................... 37 3............................................. 31 3................................... 33 3.........................................8............................................. 31 3.......11 COMPARISON OF AMUL WITH KWALITY WALLS ................ 46 6........................................ 53 ANNEXURE III...................... 47 ANNEXURE I – QUESTIONNAIRE .................................................................................................................. 61 ........................................... 56 7..............2 INDUSTRY CHARACTERISTICS .......................................................10.9 FACTORS AT A GLANCE ......................................................................................................................1 TRADE PROMOTION POLICY ...................................................................... 29 3... REFERENCES ......FACTOR ANALYSIS (TRADE PROMOTIONAL POLICIES)........................... 36 3...........................2 FACTOR FOR CHARACTERISTICS ............2 FACTORS FOR ICE CREAM INDUSTRY CHARACTERISTICS ............ 44 5....................................FACTOR ANALYSIS (CHARACTERISTICS) .........................10...................................... ANNEXURE ..........................11... 40 3..............................................................................10 FACTORS AT A GLANCE: COMPARISON OF AMUL WITH INDUSTRY ...................................... RECOMMENDATION .................... 36 3......

..... ...................................... .................................................................................................................................................................................... Figure 1 The Indian dairy exports and projected exports volume....................................................................... 10 Figure 4 Market share of various Flavors................................................................................................................................................................................................ 38 Figure 26 Comparison demand management.................................................................................................................................................................................................... 25 Figure 15 Variables of pecuniary benefits to retailers.......................................... 37 Figure 25 Comparison of product features.cream ......................LIST OF FIGURES Page no............................................................................................................................................................ 10 Figure 3 Market share of Branded and Grey market ........................................................................ ... 41 Figure 30 Complimentary policy of Amul and Kwality Walls..................... ............................................ ............................................................................ . 41 Figure 31 Competence factor of Amul and Kwality walls....................................................... 18 Figure 6 Single and Multi brand outlet of various brands ................................ ................................................................................................ 32 Figure 17 Variables for complimentary policy factor........................ 20 Figure 9 Preference of type of ice.................................... 19 Figure 8 Incidence of visits of various age-group ..................................................................... 36 Figure 22 Comparison of pecuniary befits to retailers By Amul and industry.... 35 Figure 21 Comparison of back-up policies of Amul and Industry...... 37 Figure 24 Comparison of competence factor............................... 36 Figure 23 Comparison of complimentary policy by Amul and Industry ........................................................................... 43 ............. 18 Figure 7 Share of single and multi brand retailers in various areas......................................... ............. ...... 39 Figure 27 Comparison of Pecuniary benefit by Amul and Kwality walls.............................................................................................................................................................................................................................................................................................................................. 33 Figure 19 Variables related to competence ......... .................................. 43 Figure 33 Demand management of Amul and Kwality Walls................................... ..................................... ........................................ 21 Figure 10 Sales of the various flavors .......................................................................................................................................... 34 Figure 20 Variables related to demand.................................................................... 8 Figure 2 Market share of various brands . 24 Figure 14 Annual sale of various brands seperated in weekdays and weekend..................................... ..................... 11 Figure 5 Market share of single and multi brands retailers ........................ 24 Figure 13 Market share of brands............................................................... ......... 22 Figure 11 Preference of various packagings ............... 31 Figure 16 Variables of back-up policy.... 23 Figure 12 New variants' information source. .............. 32 Figure 18 Variables related to product characteristics................................................... 42 Figure 32 Product features of Amul and Kwality walls........... 40 Figure 28 Comparison of back-up policy of Amul and Kwality Walls........................

... Table 1 Comparison of sales and days ratio...................................... 28 Table 3 Factors for ice cream industry Characteristics .......LIST OF TABLE ` Page no....................................................................... 25 Table 2 Factors for Trade promotion policy ............ .............................................................................................................................. 30 ..............

1 INTRODUCTION .CHAPTER .

The project will help the company and various other bodies to obtain a feedback and take care of various issues existent in the present market. This study identifies the potential of ice-cream market in Hyderabad and determines the market size through latest sale data gathered from the retailers.1. With emerging competitors of ice cream products in the local markets and also existing competition from the domestic players. 1 . margin. packaging etc. The research has been designed in a way to execute a comparative study of Amul and its competitors with respect to rate. It offers the comparative analysis of Amul and its competitors with respect to Trade promotion policies and various characteristics of the Industry in terms of quality. Another important purpose of this project is to analyze the present status of Amul in the ice cream segment in Hyderabad and design certain strategies to make it a preferred brand to be sold by retailers. strengths and weakness. competitors and retailers. 1. new product development. INTRODUCTION The project focuses on the present scenario of Amul Ice-cream in Hyderabad.1 PURPOSE AND SCOPE OF THE PROJECT The main purpose of the research project is to the study the ice-cream market at Hyderabad taking into account market size. The Project focuses on the present scenario of Amul Ice-cream in the market. communication. One of the phases of research also lays emphasis on studying and understanding trade promotional strategies and several offerings to the retailers by various ice cream brands in the said region. margin. promotional schemes. it is always necessary to fabricate various plans and strategies according to the prevalent market conditions.

Exploratory research 2. Questionnaire was developed in a manner so as the grab the required information and personal interviews were conducted for accuracy and correctiveness. Marketing researches devote a significant portion of their work on exploratory studies when very little is known about the problem being examined. Descriptive research Exploratory research Exploratory research seeks to discover new relationship. emphasis on discovery of ideas. To find out Amul‟s position in this segment in Hyderabad To compare trade promotional policies given by various brands.3 RESEARCH METHODOLOGY 1. To identify the demographic distribution of ice-cream consumption in Hyderabad.3. is to describe characteristics of a population or a phenomenon.2 OBJECTIVES OF THE STUDY     To find out the size of ice-cream market in Hyderabad. My questionnaire consist of:   Category scales Multiple choice questions 2 . although the variation of the length of interview depends upon interest.  To seek general perception of retailer towards AMUL ice cream.1 RESEARCH DESIGN The survey research method is the basic research design. The personal interview were generally last between 35 and 45 minutes. 1. readiness and previous experience of the retailers. Each respondent was interviewed in his or her work place. This study includes two type of marketing research method: 1. It includes the study of the present market of Hyderabad to find out the factors which play a vital role in determining the objective of the study. Descriptive research The main purpose of descriptive research.1.

e.2 SAMPLING DESIGN Sample design is a definite plan of obtaining some items from the whole population. Cluster and Convenience. Sampling methods in which universe elements are chosen in groups rather than individually are called cluster-sampling methods. In marketing research practice.e. When no complete universe listing exists. It is faster.  Dicthomus Open ended questions Category Scales: An attitude scale consisting of several response categories to provide the respondent with alternative ratings.3. In the probability sampling methods. it will sometimes be more expedient to select clusters or groups of universe elements. They are widely used in the sampling of human populations. They introduce the subject and obtain general reaction. Sample design is a definite plan of obtaining some items from the whole population. It also simplifies the tabulating process. a type of sampling is called area sampling may be the only practically feasible form of probability sampling. such questions are good as first questions or opening questions. Dicthomus: These are the questions which are boolean in nature. each items in the sample is chosen one at a time from a complete list of universe elements. 1. Multiple choice questions: Questions of this type offer the respondents an alternative to choose the right answer among others. cluster sampling and convenience 3 . Open ended questions: In this type respondents are free to answer in their own words and express the ideas they think are relevant. The sample design used in this project is two state sampling i. The sample design used in this project is two state sampling i. These answers are straightforward and respondents have to answer them in a straight way. That means the answer can only be either „Yes” or „No‟. time saving and less biased. rather than to choose sample items individually.

3 SAMPLING Sampling technique : Non probability sampling(A non probability sampling technique is that in which each element in the population does not have an equal chance of getting selected).3. Questions were asked to respondents (retailers) considering the basic principles and probing was done if required. Banjara hills. Venkat raman colony.00 pm to 8. Method : Survey through questionnaire and direct interviews. Convenience sampling This type of sampling is chosen purely on the basis of convenience and according to convenience I visited cinemas. Timing of survey : 9. superstores. correct information I had to approach retailers doing business atleast from 1 year and covered all the area distinctly as chosen by me. station. Vijay nagar. Sample consist of 100 retailers.30 pm and 5. Lakri ka pul. 1.. Data analysis method: Mathematical and graphical method.4 COLLECTION OF DATA: FIELD WORK Primary Data Questionnaire was prepared after study of the present market area to find out the vital factors keeping the objective of research in mind. restaurants etc.00 pm 1.00 am to 12. Direct interviews were conducted. fast food joint. markets for residential areas and commercial markets.3. Sample size : Respondents (who are doing ice-cream business atleast from 1 year). bakery. Cluster sampling are frequently utilized when no list of sample population is available. Sample unit : People who sell ice-cream available in general stores. Cluster sampling Here the whole area is divided into some geographical area and a definite number of retailers were to be surveyed. Nampally. Area of survey : Mehdiptnam and near by regions. 4 . The whole city was divided into five geographical areas among five members and I have chosen Mehdipatnam. The total sample size was 100.sampling. Attapur and Langar house. in order to get accurate information.

e.00 pm to 5.00 pm. The study is confined to organized sector of the industry. I have taken twenty variables which defines the trade promotional policies and various offering provided by the ice cream companies to the retailers. when they were contacted between 1.3. I have used Factor analysis. Its general purpose is to summarize the information contained in a large number of variable into smaller number of factors. All variables will be précised into definite factors which affect the industry most thus data will be concluded in appropriate manner. The study being done during the peak season for the company‟s business. 1.4 LIMITATIONS OF THE STUDY  The case of „External Validity‟ holds true as the data collected from the various regions of Hyderabad can not be used for generalization. In this study. Secondary data is collected to mention facts and figures from previous reports and articles. i.People were not willing to answer. the data collected from Hyderabad is not a true representative of the population of India.     The presence of extraneous variables is unavoidable. the information and the outcome of this study may not be applicable for the complete year. Language used to fill the questionnaire were Hindi and English therefore few shopkeepers who could not understand either of the language refused to fill the questionnaire. 5 . 1. Applicability of particular tool depends upon the form of data.. the time when most of the people take rest during the scorching heat. books and various journals and papers so as to accomplish the purpose of the study in a better way. It is a mathematical tool in which each variable is expressed as a linear combination of underlying factor.5 STATISTICS TOOL Data being collected can be analyzed through various statistical tools. The purpose of applying factor analysis here is to summarize the data collected through questionnaire. A type of analysis used to discern the underlying dimensions or regularity in phenomena. Secondary Data The study also involve use of internet.

According to Reportlinker-Report on Indian ice-cream market. In 2008-09. It was opened to large-scale manufacture only in 1997.2009). But the organized sector has been growing in the region of 12-15 % over the last five years. the ice cream industry in India is worth Rs. In India about 46 per cent of the total milk produced is consumed in liquid form and 47 per cent is converted into traditional products like cottage butter. etc. Since then the market has been witnessing fierce battles and huge investments on the part of major players in cold chains and infrastructure. The overall industry has been growing at a sluggish rate of 3-4 %. The per capita consumption of ice cream in India is approximately 300 ml.5. The per capita availability in the north is 278 gm. followed by Kwality Walls at 14%. This disparity is due to concentration of milk production in some pockets and high cost of transportation.000 crores. 2. as against the world average of 2. there are regional disparities in production and consumption of milk. Strawberry and Chocolate together constitute approximately 60% of the market. processed butter and processed cheese. malai. According to Indian Dairy Industry Report. Vanilla. cheese. khoya. Of these ghee alone accounts for 85%. west 174 gm. condensed milk infants‟ foods etc. The branded market at present is 100 million liters per annum valued at Rs. Vadilal at 12% and Mother Diary at 8%. curd. ghee. 800 crores.3 liters per annum. south 148 gm and in the east only 93 gm per person per day. Among the milk products manufactured by the organized sector some of the prominent ones are ghee. butter. in the branded ice cream market. Only 7 per cent of the milk goes into the production of western products like milk powders. paneer. 6 . ice creams. The Indian ice cream market was until recently reserved for the small-scale sector. The remaining 54% is utilized for conversion to milk products. The industry can be divided into the branded market and the unbranded market. Amul held the number one spot. LITERATURE REVIEW According to DARE-Because Entrepreneurs Do Report (Ice Cream Industry in India – Other Business Opportunities). milk powders. with a market share of 38%.1. malted milk food.

CHAPTER – 2 INDUSTRY ANALYSIS .

and Japan‟s $2.8 dollars.67 billion and has been growing at a rate of 5 per cent a year.2.43. It offers opportunities abounding to entrepreneurs worldwide. compared with the U. who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products.   India today is the lowest cost producer of per liter of milk in the world. which build immunity and help in digestion. trying to keep pace with the galloping progress around the world. Salient features of Indian Dairy Industry  India‟s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. India has the largest population of cattle in the world. According to Dairy India 2007 estimates.1 AN INTRODUCTION TO THE INDIAN DAIRY INDUSTRY Today.   Probiotic dairy products. Amul and Mother Dairy. at 27 cents. are an emerging trend in the India food market. Along with the national players like. global players like Nestle have also made substantial investments to capitalize the potential of this segment. India is 'The Oyster' of the global dairy industry. the current size of the Indian dairy sector is US$ 62. The dairy exports in 2007–08 7 .S' 63 cents. To take advantage of this lowest cost of milk production and increasing production in the country. A bagful of 'pearls' awaits the international dairy processor in India. The Indian dairy industry is rapidly growing. Moreover. multinational companies are planning to expand their activities here. with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk products sector.500 crores till year 2005. INDUSTRY ANALYSIS 2. This growth came from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products.  The urban market for milk products grew at an approximate accelerated pace of around 33% per annum to around Rs.

whereas the domestic dairy sector is slated to cross US$ 108 billion in revenues by 2011.workosaur. Exports (in US million $) 1200 1000 800 600 400 200 0 113.5 million against US$ 113. The graph below shows the Indian diary exports over the last two years and projected export volume in 2011. Source: http://www.57 last fiscal.5 2007-2008 2011 (Projected) 1080 Figure 1 The Indian dairy exports and projected exports volume.rose to US$ 210.com/food-industry-overview/ 8 . Both production and consumption of milk and its derivatives are traditionally high in the country.57 2006-2007 210.

The regulatory industry structure did not provide enough scope for scaling up. Cream Bell etc. Amul. made entry into the Indian market. the organized sector accounted for only 25% market share in the Rs. resulted in the emergence of small ice cream makers with local brands and fragmented market. who in turn could not do much for the growth of the industry. the Asia Pacific ice cream market was worth $13 billion in terms of retail value and 5128 million liters in terms of volume.2. Amul consolidated 9 . India had a very low per capita consumption of ice cream. not many changes were initiated for the development of the industry. However. the shortage of reliable power supply in most parts of the country and the slow pace of development of cold chains hindered the creation of a nationwide brand in this segment.6 billion in terms of retail value or 15 billion liters in terms of volume in 2007. Such reservations restricted the development of an organized sector in this industry. Even the sole national brand. In the changed scenario. Kwality Walls‟ volume sales and turnover declined by 65% and 39% respectively while those of Amul catapulted by 575% and 484% respectively. Anand based Gujarat Co-operative Milk Marketing Federation‟s (GCMMF) brand. 18 liters in Australia and 14 liters in Sweden. The existing national brand. During the initial six years of Indian economic liberalization process. Many Multinational companies (MNCs) Baskin Robbins.2 AN INTRODUCTION TO THE INDIAN ICE CREAM INDUSTRY The global market of ice creams was pegged at $61. India is far behind even in terms of the world average per capita ice cream consumption of 2. which started in 1991. three years after the deregulation. was wagering a war with another national brand. It remained a protected field for the small-scale player. compared to 22 liters in the US. During 1997-2003. Besides. Lack of competitiveness in terms of manufacturing. the country had a large untapped potential. Moreover. till 2000. Thus. product innovation and marketing. The Indian ice cream industry was regulated and later reserved for the small-scale sector. sensing the huge growth opportunity. though Indian climatic condition favors ice cream consumption. did not have substantial market share to be truly termed as national brand. Kwality Walls. The scenario began changing when the Indian Government de-reserved the ice-cream industry in 1997. Of this. 1000 crore ice cream industry. During this period.3 litres per annum. The per capita consumption of ice creams in India is just 300 ml per annum. Kwality Ice Cream Company owned „Kwality‟ brand. the market was largely dominated by the small manufacturers.

Vadilal at 12%.in/opportunities/other-business-opportunities/ice-cream-industry-in-india. Amul held the number one spot.dare.in/opportunities/other-business-opportunities/ice-cream-industry-in-india.co. in the branded ice cream market. The branded market at present is 100 million liters per annum valued at Rs. Market Share (percent of Branded Market) 28% Amul 38% Kwality Walls Vadilal 8% 12% 14% Mother Dairy Others Figure 2 Market share of various brands Source:http://www. 2000 crores. Market Share ( in Rs. The ice cream market in India can be divided into: the branded market and the grey market. 800 crores. and Mother Dairy at 8%. growing at a rate of approximately 12%. followed by Kwality Walls at 14%. Till 2009. while Kwality Walls stood at a distant second with dismal 8% market share. The grey market consists of small local players. with a market share of 38%. Crore) 40% 60% Branded Market Grey Market Figure 3 Market share of Branded and Grey market Source: http://www.its market leadership with 32% market share. strawberry and chocolate flavors contributing around 60% of the total market followed by butterscotch and other flavors.htm 10 .htm The market is totally dominated by vanilla.dare.co. The Indian Ice cream market is currently figured to be worth Rs.

Strawberry & Chocolate Others Figure 4 Market share of various Flavors Source: http://www. As the ice-cream industry exploded in India.3 MAJOR PLAYERS IN THE INDIAN ICE CREAM INDUSTRY Kwality Walls Source: http://www.htm 2. The Indian consumer market was introduced to “KWALITY WALLS” – the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality.Market Share of Flavors Sales 80% 60% 60% 40% 40% 20% 0% Vanilla.dare.net/css/images/kwality%20walls. 11 .in/opportunities/other-business-opportunities/ice-cream-industry-in-india. in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back. Though the two giants eventually parted ways. the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market.co.gif Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing icecream on a commercial scale.siesons.

In 1997. cups as well as take home packs and institutional/catering packs. Amul ice cream was launched on the platform of „Real Milk.in/ Amul Ice Cream was launched on 10th March. The portfolio consisted of impulse products like sticks.kwalitygroup. Kwallity Wall‟s has been delivering superior quality products under its international brands. master brand for ice creams. Amul Source: http://www. cones. Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 12 .com/library/images/Spot_IceCream. With in-depth knowledge of the Indian market and Unilever‟s state-of-the-art technology. 1996 in Gujarat.amulicecream.jpg Kwallity Wall‟s was launched in 1995 as Hindustan Unilever Ltd „s. Hindustan Unilever started by merging 6 existing ice cream brands in the country and then launched Kwallity Wall‟s range of ice creams and frozen desserts. Real Ice Cream‟ given that it is a milk company and the wholesomeness of its products gives it a competitive advantage.Source: http://www.

Nationally it was rolled out across the country in 1999.indianexpress. LOW FAT Diabetic Delight & ProLife Probiotic Wellness Ice Cream is created for the health conscious. After NDDB introduced Mother Dairy as its own brand.2002. which was a first in India. In January 2007. Today the market share of Amul ice cream is 38% making it market leader.in/files/Mother. but the rift between GCMMF and NDDB prompted Amul to supply the 13 .stockwatch. 1996 at Ahmedabad. Gurgaon and Ghaziabad. Amul‟s entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time – due to price differential.com/mimages/Friday%20%20%20.jpg Mother Dairy. Amul used Mother Dairy‟s facilities to cater to the markets of Faridabad.Dairy. Currently it offers a selection of 220 products. This position was achieved in 2001 and it has continued to remain at the top. Amul Ice Cream was launched on 10th March. It has combated competition like Walls. Mother Dairy Source: http://www. Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice Cream. Amul has always brought newness in its products and the same applies for ice creams. gave tough competition to Amul and Kwality Walls in the Delhi market.jpg Source:http://static. an ice cream and milk brand of National Dairy Development Board (NDDB).%20May%2001. This range of SUGAR FREE. Mother Dairy and achieved the No 1 position in the country.Not only has it grown at a phenomenal rate but has added a vast variety of flavors to its ever growing range. Subsequently the distribution and marketing operations were rolled out across the country. quality of products and of course the brand name. Initially.%202009%20at%201534% 20hrs/M_Id_74828_Mother_Dairy. the relation between GCMMF and NDDB got strained.

with a turnover of Rs. French based Cream Bell. 96 crore.entire demand of the Delhi market and its adjoining regions from Gujarat.jpg Another strong regional in the market emerged from Ahmedabad known as Vadilal Industries Ltd.4 MAJOR PLAYERS IN THE HYDERABAD ICE CREAM MARKET Amul Kwality Walls 14 . Uttar Pradesh and Madhya Pradesh. Rajasthan. vadilal had its presence in the states of Gujarat. With its manufacturing units located in Gujarat and Uttar Pradesh.englishunstoppable. Mother Dairy also stopped sellin Amul‟s products from its outlets. US based Baskin Robbins etc.org/partnerslogo/logo_vadilal. 2. Vadilal Source: http://www. Some other brands that are present in the market are South India dominated Arun ice cream.

milk and milk products processing and distribution through Strategic Business Units (SBUs). Retail and Agri under its flagship Company Heritage Foods India Limited.jpg Creamline. Andhra Pradesh.Heritage Source http://upload.wikimedia. Heritage has its headquarters in Hyderabad.jpg The Heritage Group. Heritage‟s milk products have presence in Andhra Pradesh. the company has been 15 . Tamil Nadu and Maharashtra. The annual turnover has crossed $200 million during 2008-09. Since inception. Its milk and dairy products are sold under the popular brand name JERSEY. an ISO 22000 accredited dairy. one infrastructure subsidiary – Heritage Infra Developers Limited and other associate companies. It operates its milk procurement. Tamil Nadu. Dairy. founded in 1992 by Nara Chandrababu Naidu. Karnataka and with a foothold at Nagpur in Central India. with three business divisions viz. Jersey Source: http://cms. is a leading manufacturer and supplier of milk and milk products in Southern India spanning across Andhra Pradesh.com/portalfiles/32/6/200907/Image/TFPJ-Company16.mumbaimirror. Presently. Kerala.org/wikipedia/en/thumb/1/11/HeritageFoodslogo. Karnataka.jpg/250px- HeritageFoodslogo..

the primary producers of milk. Godrej Agrovet Limited. But then onwards. mobile milk testing labs in 1998 etc. which is around 40 km south of Nagpur. Until early seventies.png From the hand-churned ice cream from 1932 to the present day most ultra modern ice cream making plant. The Company entered into strategic partnership with M/s.10500 millions by end 2013. business acumen of operational heads and unrelenting efforts of committed workforce. The company is possible of achieving a turnover of Rs. The Dinshaw‟s plant is ISO and HACCP certified where Dinshaw‟s ice cream is manufactured at a state of the art manufacturing unit in Butibori.com/nagpur/images/stories/mh/reviews/dinshaw/dinshaw%20logo%20copy. ice cream sales was carried out by Dinshaw‟s only as a summer time activity and that too only in Nagpur. the company has successfully applied many innovative practices like 24 hour parlors with unemployed youth in 1993. it was extended as a year round 16 . for compound feed supply. The company is now planning to expand its operations to Central India by setting up new Processing & Packaging Units. The Company is open to strategic business tie-ups at national and international level and is looking at export opportunities to its products Since its incorporation in the year 1986.growing consistently under the visionary leadership of promoter directors. Dinshaw‟s has come a long way. the largest animal feed manufacturing company in the country. 4500 millions for the FY 2009-2010 and is set to achieve an ambitious target of Rs. Dinshaw’s Source: http://mh-31. in the Year 2005 by offering equity stake of to strengthen its backward integration with farmers.

serving to the palates of Nagpurians. More than 11 million liters of Dinshaw‟s ice cream delighted its patrons during 2008-09. 17 . This continued rise has today led to Dinshaw‟s ice cream delighting the taste buds of ice cream lovers in 13 states. The year 1981 saw next leap when Dinshaw‟s moved beyond just one shop and grew not just in Nagpur‟s various pockets. through around 6870 outlets pan India. but even in nearby towns. Now Dinshaw‟s is considered to be holding appreciating market share in west and central India.

CHAPTER .3 MAIN TEXT .

3.1 PENETRATION IN THE MARKET AVAILABILITY Multibranded 37% Amul 12% Kwality Walls 17% Heritage 6% Jersey 3% Dinshaw's 3% Others 22% Figure 5 Market share of single and multi brands retailers Source: Field Survey. 2010 AVAILABILITY 30 25 20 15 10 5 0 Amul Kwality Walls Heritage Jersey Dinshaw's Others 12 6 3 3 3 3 8 17 25 26 22 19 Figure 6 Single and Multi brand outlet of various brands Source: Field Survey. 2010 . PRIMARY TABULATION AND INTERPRETATION 3.

19 . Kwality Walls holds first position for both exclusive and multi-branded outlet. 2) Multi-branded outlet: Retail outlets which keep two or more than two outlets at one place. Source: Field Survey. 2010 These graphs exhibit the number of retail outlet present in all the areas in which survey was done. At Attapur reach of the Others brand is reasonably better than all other brands. Dinshaw‟s and Heritage is not present at few places.AREAWISE AVAILABILITY 15 10 5 0 AMUL Kwality walls Heritage Dinshaw's Jersey Others Figure 7 Share of single and multi brand retailers in various areas. Though AMUL is available at 37 outlet but number of multi-branded outlet is almost double of exclusive outlet. Analysis of data suggests that there are two type of retail outlet exists in the market which are: 1) Exclusive outlet: Retail outlets which keep only one brand. Key observations: In total 63% retailers prefer to keep only one brand and rest keep two or more than two brands. Areawise graph shows that AMUL is present predominantly in all the regions along with Kwality walls whereas Jersey.

the highest consumers fall in the age group of 25-35 closely followed by the consumers of age group of 15-25. married couples. According to the research.2 DEMOGRAPHIC DISTRIBUTION Age Group 700 600 500 400 300 200 100 0 07-15 15-25 25-35 35-45 45 above Figure 8 Incidence of visits of various age-group Source: Field Survey. 20 . 2010 Key observations: Demographic distribution of customers is one of the major concerns of any industry. As per the graph customers who consume ice-creams commonly lies between 15-35 years of age which include college going students. It can be seen that the least amount of consumers are in the age group of 7-15 mostly because they are dependents and they do not have a large amount of disposable income with them.3.

21 .cream Source: Field Survey.3 TYPE OF ICE-CREAM Type of Ice creame Normal Sundae 9% 12% 43% Sherbet Gelato 36% Figure 9 Preference of type of ice. health friendly icecreams which exhibit very less share in comparison to the Normal and Sundae. All four type of ice-creams are manufactured mostly by all the companies. Sundae grabs the second position holding 36 % part of preference. Lack of awareness among people for Gelato and Sherbet might be the reason for low preference of these ice cream. There are four type of icecream in the market which are readily consumed. Sherbet and Gelato are new generation. 2010 This is an attempt to study the preference of type of ice cream. Analysis suggest that Normal ice-cream is favored most which holds 43% share of consumption as described by the retailers.3.

Other flavors like Mango. Economic pricing of vanilla can be the reason for its highest sale. Some other interpretations conveys that Amul offers significantly wide range of flavors. Chocolate. 2010 In the market we can find many flavors such as Vanilla. Mixed fruit. It has been observed that vanilla is basically consumed by families in form of family packs.3. Litchi. In this study only four flavors are being taken distinctly and all other flavors has been clubbed under the category Others. Among various flavors present in the market Vanilla is the most preferred flavor followed by Butterscotch with a very small margin of 3%. contribute a little part of consumption. 22 .4 FLAVORS Flavor Vanilla Chocolate Butter Scotch 9% 28% 18% Strawberry Others 25% 20% Figure 10 Sales of the various flavors Source: Field Survey. Litchi etc. Butter scotch. Mango. Chocolate and Strawberry holds almost same rank on the preference list with market share of 20 and 18 percent respectively. Two in one etc. Strawberry.

This trend can be accredited to location of type of retail outlet in the surveyed area and variability in the taste of different age group. 3. Apart from advertisement and salesmen. During the initial phase of study it was observed that ice-cream are available in number of packets.3. Relatively Low-price Cups are generally consumed by the kids and low income group members. Cones and Family packs are preferred equally by the people whereas sticks have got the least preference.6 SOURCE OF INFORMATION ABOUT NEW VARIANT TO THE RETAILERS In the era of competition every company wants to stay ahead. New product development and acquiring the shelf-space along with existing products is quite intricate work. Cones. This is done by advertisement on mass scale to cause awareness or by salesman at retailer‟s level. customer demand and word of mouth are also considered which act as source of information. Family pack and Stick are used most commonly by all the companies. 2010. I have not taken any other type of packaging in to the account as their visibility in the market is almost negligible. This study demonstrate that Cup.5 TYPE OF PACKAGING Packaging Cup Cones Family Pack Stick 20% 27% 26% 27% Figure 11 Preference of various packagings Source: Field Survey. Out of all Cup. Same is the case with Icecream companies. This study displays that 23 .

7 SALES Percentage of sale Others 23% Heritage 4% Jersey 4% Dinshaw's 4% Kwality Walls 30% Figure 13 Market share of brands Amul 35% Source: Field survey 2010. This indicates that company‟s initiative are less than the customer‟s willingness to try new variant..Customer demand participate significantly to communicate retailer about the new launch. 2010 out of four. company salesman is the chief source who update the retailer about all the new variants. 3. A 24 . 700 600 500 400 300 200 100 0 New Variants' Information Source COMPONY ADDS COMPONY SALESMAN CUSTOMER DEMAND WORD of MOUTH Figure 12 New variants' information source Source: Field Survey. Company advertisements also play a vital role which may enhance the awareness among retailers directly or indirectly.

61 4070/7670 =.53 820/1430 = 0.38 100/260 =0.38 100/260 =0. Other companies together occupy 23% share in the market.054 No. Brands like Dinshaw‟s. Weekend sale / Weekdays sale 6130/11490 = 0. of weekdays 100/260 =0. It can be said that as a brand Amul and Kwality Walls are the main competitors.38 100/260 =0. Source: Field survey 2010.40 830/1350 = 0. Heritage and Jersey jointly share only 12% of the market size which is much less than their share at domestic level. of weekend / No.57 520/1290 = 0. Though the sale of weekdays is greater than weekend sale but the ratio of weekend sale and weekdays sale is greater than the ratio of number of weekend and weekdays in an year as shown in the table below: Table 1 Comparison of sales and days ratio.AMUL is the market leader with 35% market share which is 5% more than Kwality Walls unlike their availability in the surveyed area.38 100/260 =0. Research says that the sale of all brands divided into weekdays and weekend separately. SALES (per annum) 12000 10000 8000 6000 4000 2000 0 weekend weekend weekend weekend weekend weekdays weekdays weekdays weekdays weekdays weekdays weekend Rupees ( 000) Amul Kwality Walls Dinshaw's Jersey Heritage Others Figure 14 Annual sale of various brands seperated in weekdays and weekend.38 25 .38 100/260 =0.53 5350/10060 = 0.

Report consists of detailed explanation of both the data and interpretation. To induce retailers to promote the brand by featuring. display. 26 . It act as the encouragement which stimulate quicker or greater purchase of particular products or services by consumers or the trade. The purpose of the trade promotion can be explained as follows:     To occupy the shelf-space at retail outlet. This study is limited to various tools used by companies to enhance sales through retailers. Various activities and schemes which promote sales-force. varies at different level of business hierarchy. To motivate the retailers and their sales clerks to push the product. and price reductions. distributors.8. 3.8 FACTOR ANALYSIS Primary data collected from ice cream retailers in the various area of Hyderabad is analyzed by Factor analysis. free merchandise. one is the trade promotional policies and other is the various characteristics related to ice cream industry which jointly consist of 20 different variable. discount off list price. This analysis is done on two types of data. These variables are named as highest advertising allowance. All of these trade promotional policies are explained below: Highest Advertising Allowance An advertising allowance given by the companies to the retailers so as to compensates the expenses incurred by the retailers for advertising the manufacturer‟s product. retailers to improve sales are considered to be the part of salespromotion. 3. behavior and habits of the customers.1 TRADE PROMOTION POLICY Trade promotion is a required to push the sales of the company. and This study has taken seven different variables into the account under the title Trade promotion policy employed by the ice-cream companies. rewards. and grievance redressal. To convince the retailer to sell the products of concerned company before others. bulk order discount. maximum sales incentives.The reason of such a variation in the sale on weekdays and weekend put light on consumption trends.

The three factors identified under which these policies can fall are: 27 .577. Bulk Order Discount It is an additional margin given to the retailers along with the fixed margin when they make order in bulk. for example. Rewards These are sort of bonuses provided to retailers when the retailer performs exceptionally well or makes the highest amount of sale for a prolonged period of time. Free Merchandise An another form of promotion policy which offers the extra cases of merchandise to retailers who buy a certain amount of the product to be sold. Complaints and problems of the retailers are being addressed by the concerned officials of the company. Company policy and the quantity of the product ordered determines the range of discount provided to the retailer. Maximum Sales Incentives The incentive given to the retailers on maximum sale among many retailers located in a particular area. cash or company sponsored tour packages etc. Factor analysis of these seven variables is found valid as KMO ( Kaiser-Mayer-olkin) value which measures the adequacy of sampling comes out to be 0. Data is reduced to three factors. As mentioned earlier seven types of trade promotional policies were taken as variables to extract the major factors that form the major chunk of the various promotional policies offered by a company to various ice cream retailers and shopkeepers. Bonuses can be provided in different forms. It is basically introduced to sales of the product which moves very slowly. It is straight discount off the list price on each case purchased during a stated time period. Grievance Redressal It is the facility provided to retailers by the company to resolve the issues related to trade.Discount Off list Price It is also known as price-off.

Factor 3: Complimentary promotion This factor comprises of Free merchandise and rewards. Bulk order discount and Maximum sales incentive. This factor helps the company to maintain good relation with the retailers. Both the variables expresses the appreciation of retailer by the company.1) Pecuniary benefits to Retailer 2) Back-up policy 3) Complimentary promotion Table 2 Factors for Trade promotion policy Factor No. This factor indicates that these trade promotional policies provides monetary benefits to the retailer vis-à-vis increases the volume of the sale. Factor 2: Back-up policy This includes Highest advertising allowance and Grievance redressal. Rewards persuade the retailers to perform extra-ordinary which are being admired by company resulting into benefits to the retailers. Free merchandise is generally goods which contain company‟s logo or company‟s name which when used promotes the product of that brand. Factor 1 Factor Name Pecuniary Benefits to Retailer Variables o Discount Off list Price o Bulk Order Discount o Maximum Sales Incentives o Highest Advertising Allowance o Grievance Redressal o Free Merchandise o Rewards Factor 2 Factor 3 Back-up policy Complimentary Promotion Factor 1: Pecuniary Benefits to Retailer Under this factor the variables or the trade promotional policies present are Discount Off list Price. 28 . High advertising allowance means that monetary help provided by the company to the retailers so as to motivate the retailer for initiating or continuing the individual efforts of advertising company products.

660. The five factors identified are as follows: 1) Product Feature 2) Competence 3) Demand management 4) Credit 5) Trade promotion 29 .8.2 CHARACTERISTICS OF ICE CREAM INDUSTRY Ice cream has a range of characteristics which is distinct from all the other industries.3. The 13 features taken as variables for this analysis are: 1) Margins 2) Deep-freezer 3) Trade Promotional Policies 4) Logistics 5) Product quality 6) Range of Flavors 7) Attractive Packaging 8) Durability of the Product 9) Replacement Policy 10) Demanded Products 11) Excess Demand Handling 12) Credit Policy 13) Price Sensitivity Factor analysis of these seven variables is found valid as KMO ( Kaiser-Mayer-olkin) value which measures the adequacy of sampling comes out to be 0. In this research project we have considered 13 such characteristics to deduce certain factors that are vital for the ice cream industry. Data is reduced to five factors.

Table 3 Factors for ice cream industry Characteristics Factor No. Factor 1 Factor name Product Feature Variables o o o o o o o o o o o o Range of flavors Attractive Packaging Durability of the Product Quality of the Product Margin Deep-freezer Logistics Replacement policy Price sensitivity Demanded product Excessive demand handling Credit policy Factor 2 Competence Factor3 Factor 4 Factor 5 Demand management Credit Trade promotion o Trade promotion policy 30 .

3.9 FACTORS AT A GLANCE 3.9.1 FACTORS FOR TRADE PROMOTION POLICY Pecuniary benefits to retailers The trade promotional policies given by the company to the retailers in order to provide monetary benefits to the retailer include:    Discount off list price Bulk order discount Maximum sales incentive The graph below shows the average of the ratings given to each of these factors by the respondents. Back-up policy The trade promotional policies given by the company to the retailers in order to maintain good relations with retailer include:   Advertisement allowance Grievance redressal 31 . Pecuniary Benefits 300 250 200 150 100 50 0 Discount offlist price Bulk order discount Incentive Figure 15 Variables of pecuniary benefits to retailers. Source: Field Survey. 2010 It can be observed that most of the companies prefer to provide bulk order discount rather than providing the retailer discount off list price and Incentives.

Back-up policy 250 200 150 100 50 0 Advertisement allowance Greivance redressal Figure 16 Variables of back-up policy. Complimentary policy The trade promotional policies given by the company to the retailers in order to appreciate retailers are:   Free merchandise Rewards The graph below shows the average of the ratings given to each of these factors by the respondents.The graph below shows the average of the ratings given to each of these factors by the respondents. 2010 It can be inferred from the above diagram that companies believes in addressing the complaints and problem as soon as possible rather providing advertisement allowance. 2010 32 . Source: Field Survey. Complimentary Policy 170 168 166 164 162 Free merchandise Rewards Figure 17 Variables for complimentary policy factor Source: Field Survey.

range of flavors and attractiveness of packaging are much more concerned variables for the company than product durability.2 FACTORS FOR ICE CREAM INDUSTRY CHARACTERISTICS Product features The features of product i. 2010 Above graphs states that product quality.9.From the diagram. ice cream collectively forms the first factor which includes:     Quality of ice cream Range of flavors Durability of ice cream Packaging of the ice cream The graph below shows the average of the ratings given to each of these factors by the respondents. Product Feature 600 500 400 300 200 100 0 Product quality Range of flavors attractive packaging Product durability Figure 18 Variables related to product characteristics. Competence To stay in the market all companies have to show their competence in one or other way.e. 3. it can be seen that company consider free merchandise as good option to express their appreciation for retailers which otherwise fulfill the purpose of indirect communication rather than giving rewards. Source: Field Survey.here competence comprises of following variables:    Margin Deep-freezer Logistics 33 .

Demand management This includes the variables related to the demand of products by the retailers.freezer to the retailers is also an area of concern that too at rfeasonable rates with life time maintenance responsibility. It includes:   Demanded products Excessive demand Demanded products means that the amount of product ordered by the retailers on regular basis whereas excessive demand occurs occasionally. 34 . Competence 600 500 400 300 200 100 0 Margin Deep-freezer Logistics Replacement Price senitivity Figure 19 Variables related to competence Source: Field Survey. Replacement and price sensitivity are seems to be less concerned variables where companies try to show their competency. Providing deep.  Replacement Price The graph below shows the average of the ratings given to each of these factors by the respondents. 2010 From the graph it can be seen that companies tries to stay ahead in terms of margin and logistics.

35 . Demand Management 470 460 450 440 430 420 410 400 390 Demanded product Excess Demand handling Figure 20 Variables related to demand. Trade promotion This factor consist of trade promotion policy. 2010 From the above diagram it can be inferred that company focuses a lot on the routine demand.The graph below shows the average of the ratings given to each of these factors by the respondents. Credit This factor consist of only one variable i. As per the research. It is an important factor from companies point of view. Source: Field Survey.e Credit policy adopted by the various company. It is taken separately so as to understand the attitude of retailers towards the polices employed by the companies. companies hardly prefer credit sale unlikely many other industries.

10 FACTORS AT A GLANCE: COMPARISON OF AMUL WITH INDUSTRY 3. 2010 36 . Pecuniary Benefits to Retailer Pecuniary benefits 300 250 200 150 100 50 0 Bulk order discount Incentive Discount off list price AMUL Industry Figure 22 Comparison of pecuniary befits to retailers By Amul and industry. 2010 Amul presents the same characteristics of back-up policy like the whole industry.3. Figure Source: Field Survey.1 TRADE PROMOTION POLICY Back-up policy Back-up policy 250 200 150 100 50 0 Advertisement allowance grievance redressal AMUL Industry Figure 21 Comparison of back-up policies of Amul and Industry.10. Source: Field Survey. Understanding and resolving the problem is given the prime importance and retailers are motivated less to advertise about the company.

Incentives is considered as the last option which determines that Amul altogether follows the different monetary benefit strategy for the retailers. 2010 37 . Complimentary policy Complimentary policy 200 150 100 50 0 Free merchandise Rewards AMUL Industry Figure 23 Comparison of complimentary policy by Amul and Industry Source: Field Survey. Like all other players Amul also believes in distributing free merchandise than rewards. Logo and pictures of the ice creams on the merchandise when used by the retailers fulfill the purpose of the company. 2010 Every brands put all the efforts to show their presence and cause awareness among people through various marketing strategies. 3.2 FACTOR FOR CHARACTERISTICS Competence Competence 600 400 200 0 Logistics Margin Deep freezer Price sensitivity Replacement AMUL Industry Figure 24 Comparison of competence factor of Amul and IndustryS Source: Field Survey.From the graph it can be seen that Amul provides discount on the list price unlike the pecuniary policies of all players in the surveyed region.10.

38 . Durability AMUL Industry Figure 25 Comparison of product features of Amul and Industry Source: Field Survey. 2010 Like all. Relative analysis suggest that Amul provides the reasonable priced products to the consumers. Amul stresses upon providing high class products to the consumers in terms of quality. Product features Product features 600 500 400 300 200 100 0 Prod. Deep freezer facility is still an issue to think about. This shows that industry is focused towards providing good products to the consumers. range and packaging.Being the market leader of India Amul follow various competitive tools so as to stay ahead in the market. Quality Range of Flavors Attractive Packaging Prod. Amul provide less margins to the retailers than many other companies but has developed a good logistics system which gets the appreciation of the retailers.

Demand management

Demand management
500 450 400 350 300 250 200 150 100 50 0 Demanded Product Excess demand handling AMUL Industry

Figure 26 Comparison demand management of Amul and Industry

Source: Field Survey. 2010

Routine management of demand is found easy by all the companies. Managing excess demand is managed inappropriately .Amul demonstrate the same characteristics like the Industry.

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3.11 COMPARISON OF AMUL WITH KWALITY WALLS
Kwality Walls is the main competitor of Amul. Though Kwality walls presence in the market is better than Amul yet Amul is the leader in terms of sales. Amul holds 35 percent market share which is closely followed by the Kwality walls which has 30 percent market share. This section closely examines all the factors to understand the strength and weakness of the Amul with respect to its chief competitor i.e Kwality Walls. 3.11.1 TRADE PROMOTIN POLICY Pecuniary Benefit to retailer

Pecuniary benefits
120 100 80 60 40 20 0 List price discount Bulk order discount Amul Kwality Walls Incentive

Figure 27 Comparison of Pecuniary benefit by Amul and Kwality walls.

Source: Field survey 2010

Both companies have adopted different monetary policy to promote trade. Both companies shares the mind and market significantly. Being the best players of the industry both needs to expand the total market therefore retailers are provided discounts to enhance share. As discussed earlier Amul depends upon list price discount rather than bulk order discount where as Kwaliity walls moreover provides bulk order discount to the retailers. There is insignificant difference in incentive given by both the players.

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Back-up policy

Back- up policy
100 80 60 40 20 0 Advertisement allowance Amul Grievance redressal Kwality Walls

Figure 28 Comparison of back-up policy of Amul and Kwality Walls

Source: Field survey 2010

Improper operations and marketing strategy can leads to conflict between retailers and the company there fore proper grievance redressal system is required so as to avoid any obstruction in the business. Both the companies are highly directed towards backing up the retailers by maintaining efficient grievance redressal system. Complementary policy

Complimentary policy
80 60 40 20 0 Rewards Amul Free merchandise Kwality Walls

Figure 29 Complimentary policy of Amul and Kwality Walls.

Source: Field survey 2010

Amul supports distributing free merchandise to the retailers instead of giving rewards to the retailers unlike Kwality walls. According to me Amul follows good strategy because giving
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merchandise increases awareness along with appreciating the retailer which is not the case in giving rewards. 3.11.2 INDUSTRY CHARACTERISTICS Competence

Competence factor
250 200 150 100 50 0 Price sensitivity Replacement Amul Margin Kwality Walls Deep freezer Logistics

Figure 30 Competence factor of Amul and Kwality walls.

Source: Field survey 2010

From the above graph it can be easily noticed that Amul does not hold good position in terms of providing deep freezer to the retailers. This can be the reason of the low availability of Amul than Kwality walls. One thing can also be deducted that Kwality walls provides

replacement facility of the damaged product to the retailers effectively which also promote retailers to keep kwality‟s product. All three other characteristics show insignificant difference which makes competition intense. Product features Sale of ice creams largely depends upon the class of product provided by the brand. Both the products are preferred for providing high class ice creams. Both companies offers wide range of flavors and durability of product is considered as good.

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Graph clearly determines that kwality walls got an edge in terms of developing routine and excessive demand. People prefer Kwality walls in terms of quality and packaging. Source: Field survey 2010 Overall products of the Kwality walls are considered better than the Amul. 43 .Product features 300 250 200 150 100 50 0 Product Quality Flavor range Amul Attractive packaging Kwality Walls Product durability Figure 31 Product features of Amul and Kwality walls. Source: Field survey 2010 From the above graph it can be inferred that Amul has the inappropriate management of the demand. Demand Management Demand management 170 160 150 140 130 120 Demanded product Amul Kwality Walls Excessive demand handling Figure 32 Demand management of Amul and Kwality Walls.

CHAPTER – 4 CONCLUSIONS 44 .

Though local players individually do not grab noticeable market share but jointly holds 23 percent market share. Brands like Dinshaw‟s.4. CONCLUSIONS This study identifies the potential and opportunity in Hyderabad ice cream industry. It includes analysis of people preference of flavors. Heritage and Jersey have very poor visibility in terms of retail outlet. Various other companies like Masqati and Jumani shares remarkably better shelf space than Dinshaw‟s.   Consumption of ice creams increases during weekends upto a large extent. avoiding any dispute with the customers and distributing free merchandise. Demographic pattern has shown dissimilar trends than the general perception of consumption of more ice cream by the kids. Amul has less penetration than Kwality Walls in terms of exclusive and multi-branded retail outlets. Amul provides off-list discount rather than bulk order discount. Heritage and Jersey. 44 . packaging and reveals demographic patterns of buying.    Retailers are interested to keep only one brand rather than two or more than two brand. Companies‟ initiatives are less than the willingness of the customers to try new products. Working on such lines. Being new in the market sherbet and gelato share very less amount of awareness and sales. Various trade promotion policies have been adopted by the companies moreover players believes in providing bulk order discount. certain conclusions can be derived cited below. Detailed analysis of trade promotion policies and various characteristics is done. Preference of the flavors by the consumers is quite diversified still Vanilla tops the list of preference.    Normal and sundae are preferred most when it comes to any brand. Amul is the leader in terms of revenue generation which is closely followed by the Kwality Walls. type of ice cream.   Information about the new products to the retailers is generally parted through the salesmen. Young and middle aged individuals consumes large amount of ice group than any other age-group.

demand management. High quality product and efficient meeting of day to day demand are the basic requirements of the industry. Replacement and credit is hardly practiced by companies except few. efficient demand management. Deep freezer facility and demand management of Kwality walls is better than Amul whereas both give almost equal margin to the retailers. 45 . logistics and various facilities given to the retailers.    Demand management and deep freezer facility of Amul is the least accepted in the market whereas its ice creams are considered as reasonably priced and high class. high class products and well organized logistics system. it can be concluded that competition is intense in the market which demands effective trade promotion policies. Deep freezers are provided to the retailers to store ice creams. Lastly. Industry demonstrate distinct attributes which includes product quality.

CHAPTER – 5 RECOMMENDATIONS .

school can be targeted to improve the sale through kids. This section includes recommendations to the Amul so as to improve its performance and grab opportunities.   Amul requires good logistics and delivery system to avoid delay in release of products ordered by the retailers. Ares like Attapur.  Amul should upgrade its reward and incentive policy to promote trade through retailers and develop the retailer friendly image. Availability can be increased by providing Deep freezers at reasonable rates which motivate the retailer to keep Amul in his or her shop. In the surveyed region consumption by the kids is least. This study has been devised to compare Amul with other companies and analyze general trends of the industry.    Being the market leader Amul needs to expand its business in Hyderabad. RECOMMENDATION All companies displays various strength and weakness which determines their position in the market. Hydergudda and Nana-nagar have very few outlets of Amul. Amul needs to review the allocation of the retailers according to the geographical areas and demographics so that its penetration in the market might increases.  Demand management of Amul is very poor specially in meeting the excessive demand in summer or peak load season. brand value and sales turnover. 46 . It can be improved by relevant forecasting thus keeping appropriate stock.5. New customers should be targeted by increasing awareness or by adopting geographical-expansion strategy. Many companies provide deep freezer at 40 to 50 percent lower rates than Amul.

CHAPTER – 6 ANNEXURE .

……………. I keep one/many/all of the following brands in my ice cream shop. Since how many years you are in the business of ice creams? ………………………… 2. 3. . 1 Normal (ice cream) Sundae Sherbet Gelato (type of Italian ice cream) 2 3 4 5 6 7 47 ..6. Please tick a) b) c) d) e) f) g) AMUL Kwality Walls Heritage Jersey Dinshaw‟s .. ANNEXURE ANNEXURE I – QUESTIONNAIRE MARKET ANALYSIS OF AMUL ICE CREAMS A COMPARATIVE STUDY Answer the questions on the basis of following scale: 1234567Almost never preferred Usually not preferred Sometimes but infrequently preferred Indifferent/Neutral Often preferred Usually preferred Almost always preferred 1. Rank the type of ice cream people prefer most on a scale of 1 -7.…………….

How frequently do you keep latest variants on the shelf? a) b) c) d) e) f) g) All of the time Very often Often Sometimes Just now and then Rarely Never 2 3 4 5 6 7 2 3 4 5 6 7 7. 1 Vanilla Chocolate Butter Scotch Strawberry Others…………………… 5. How do you come to know about the launch of new variants? 1 Company Advertisement Company Salesmen Customer Demand Word of Mouth 48 2 3 4 5 6 7 . Rank the flavors according to their sale on a scale of 1-7. Most of the people prefer to have ice cream with/in? 1 Cup Cones Family Pack Stick Others…………………… 6.4.

On which days a week your outlet is open? Please tick... Why so? …………………………………………………………………………………………… ………………………………………………………………………………………….        Monday Tuesday Wednesday Thursday Friday Saturday Sunday 49 . 2 3 4 5 6 7 2 3 4 5 6 7 11. Which brand launches the variants most frequently? 1 AMUL Kwality Walls Heritage Jersey Dinshaw‟s Others 9.8. The most frequent age group to visit your outlet to buy an ice cream is 1 7-15 years 15-25 years 25-35 years 35-45 years 45 & above 10.

Kwality Walls …………………………. How many days an year you keep your outlet closed? ………………………… 50 . Dinshaw‟s ……………………………… Others…………………………………… 14.. Dinshaw‟s ……………………………… Others…………………………………… 13.. What is the approximate average daily sale (in rupees) of the following brands on weekend? a) b) c) d) e) f) AMUL …………………………………. What is the approximate average daily sale (in rupees) of the following brands on weekdays? a) b) c) d) e) f) AMUL …………………………………..12. Heritage ………………………………… Jersey ………………………………….. Kwality Walls …………………………... Heritage ………………………………… Jersey ………………………………….

11. 12. 5. 13. 6.Rank the following brands on a scale of 1 to 7 for the characteristics given below (1 being the least preferred and 7 being the most preferred in the category) AMUL 1. 4. 6. High Associated Margins Deep Freezer Facility Trade Promotional Policies Efficient Logistics Product Quality Wide range of Flavors Attractive Packaging Durability of Product Replacement Policy Demanded Products Credit Policy Excess Demand Handling Price Sensitivity KWALITY WALLS HERITAGE JERSEY DINSHAW’S OTHERS 51 . 5. 9. 3. 10. 2. 3. 4. 7. Highest advertising allowance Discount off list price Free merchandise Bulk order discount Maximum sales incentives Rewards Grievance redressal KWALITY WALLS HERITAGE JERSEY DINSHAW’S OTHERS AMUL 1. 8. 7. 2.

. My ice cream business is:   Exclusively mine Supported Yes/No 9. Education Qualification: 8. Sex: 7. 52 . who is the concerned person………………………………………. Age: 6. If Yes. Name of the owner: 5.. Locality: 4. Does anybody provide you counter assistance? 10. Shop Type:      Kirana Store Bakery Fast Food Joint Restaurant Others…………………………. Name of the shop: 2.1. 3.

.449 .924 69.626 .570 1. Total Variance Explaine d Initial Eigenvalues Total % of Variance Cumulative % 1.560 8.FACTOR ANALYSIS (TRADE PROMOTIONAL POLICIES) Factor Analysis: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy.361 .075 42.630 .816 11.835 11. 53 .000 1.070 15.556 .265 18. 37.000 Extraction Sums of Squared Loadings Total % of Variance Cumulative % 1.251 .911 .327 .070 15.075 42.577 Bartlett's Test of Sphericity Approx.083 91.960 23.292 57.613 23.292 57.000 1.035 1.677 23.042 23.103 15.013 Com m unalitie s Initial Highes t_advertisement_ allow ance Dic ount_of f _lis t_price Free_merchandis e Bulk_order_dis count Max imum_sales _ incentiv es Rew ards Grievance_redres sal 1.297 18.769 .660 80.776 11.528 41.960 23.000 1.960 1.327 Rotation Sums of Squared Loadings Total % of Variance Cumulative % 1.ANNEXURE II.000 Ex traction .960 1.035 1.006 100.042 1.973 21 .000 1.000 1.622 Ex traction Method: Principal Component A nalys is .994 .757 57.327 Component 1 2 3 4 5 6 7 Extraction Method: Principal Component Analysis.265 18.677 23.000 1. Chi-Square df Sig.

231 -.062 -. a 3 components extracted.00 0.754 .069 .50 Eigenvalue 1.477 .198 .648 3 -.324 .062 . 54 .50 1 2 3 4 5 6 7 Component Number Component Matrix(a) Component 1 Highest_advertisement_allowance Dicount_off_list_price Free_merchandise Bulk_order_discount Maximum_sales_incentives Rewards Grievance_redressal .284 .082 Extraction Method: Principal Component Analysis.722 -.75 1.441 -.Scree Plot 1.121 .243 .002 -.697 -.594 2 .830 .25 1.75 0.144 .402 .

132 .285 .935 -.104 -.076 .131 -.964 Ex traction Method: Principal Component Analys is.162 .079 .012 .243 .593 . Com pone nt Tr ansform ation Matrix Component 1 2 3 1 .860 -.953 -.213 .160 -.031 .021 -.783 -.194 .249 2 .741 -.599 3 -. 55 .587 -. Rotation Method: Varimax w ith Kais er Normalization. Rotation Method: Varimax w ith Kais er Normalization. a.022 Component 2 .097 3 -.780 .254 . Rotation converged in 4 iterations.060 .a Rotated Com pone nt M atrix 1 Highes t_advertis ement_ allow ance Dicount_of f _lis t_price Free_merchandis e Bulk_order_dis count Max imum_sales _ incentiv es Rew ards Grievance_redress al -.513 Ex traction Method: Principal Component Analys is.

ANNEXURE III.000 . 56 .000 1.717 . Chi-Square df Sig.000 1.705 .000 Price_sensitivity 1.593 . .420 Extraction Method: Principal Component Analysis.000 1.000 Logistics Product_quality Wide_range_of_flavors Attractive_packaging Durability_of_product Replacement_policy Demanded_products Credit_policy Excessive_demand_handling 1.000 Communalities Initial Margin Deep_freezer_facility Trade_promotion_policies 1.000 1.000 1.037 78 .692 .FACTOR ANALYSIS (CHARACTERISTICS) Factor Analysis: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy.649 1.000 Extraction .769 .000 1.000 1.660 Bartlett's Test of Sphericity Approx.000 1.756 .612 .734 .725 . 295.733 .000 .657 1.

717 37.774 67.866 67.063 .414 1.353 1.567 97.121 8 .903 19.009 -.268 .348 .951 95.067 .333 -.587 19.516 58.548 1.767 .000 Extraction Method: Principal Component Analysis.580 -.334 2.387 .472 .246 .548 5 1.537 11.668 .287 2.491 2 1.078 .608 .084 -.093 .450 34.054 23.340 .153 8.384 2.453 -.779 47.484 3.866 67.601 .545 80.661 12.054 23.783 13.760 .164 5 .427 .789 13 .240 -.309 .491 3.491 23.717 37.640 1.254 .774 .253 .209 .237 9.576 7 .211 100.055 Extraction Method: Principal Component Analysis.526 92.289 2 .032 1.721 5.537 11.211 -.931 7.310 .637 4.505 . 57 .161 -.035 .000 -.021 .602 .087 .049 .021 9 . a 5 components extracted.824 49.414 6 .366 10.663 .271 11 .755 .133 1.824 49.208 1.714 -.222 12 .039 .291 .058 -.278 -.176 -.746 10 .604 -.130 -.724 88.185 .208 3 1.516 58.144 4 .271 9.344 .246 .149 .Total Variance Explained Extraction Sums of Squared Initial Eigenvalues Loadings Compon % of Cumulativ % of Cumulativ ent Total Variance e% Total Variance e% 1 3.458 3.184 -.237 9.414 Component Matrix(a) Component Margin Deep_freezer_facility Trade_promotion_policies Logistics Product_quality Wide_range_of_flavors Attractive_packaging Durability_of_product Replacement_policy Demanded_products Credit_policy Excessive_demand_handli ng Price_sensitivity 1 -.205 -.032 4 1.446 3 -.031 -. Rotation Sums of Squared Loadings % of Cumulativ Total Variance e% 2.903 1.153 8.385 .901 85.507 57.062 -.879 14.311 -.491 23.162 74.054 -.103 .783 13.294 .

Scree Plot 3 Eigenvalue 2 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Component Number 58 .

046 -.071 .111 -.473 .023 4 .010 .211 4 .340 . Component Transformation Matrix Component 1 2 3 4 5 1 .144 .485 .078 -.230 -.048 -.647 -.345 2 -. a Rotation converged in 6 iterations. 59 .004 .121 .063 -.121 .100 .103 -.599 -.220 3 .217 -.418 .219 .126 .439 .800 .485 . Rotation Method: Varimax with Kaiser Normalization.018 .055 .323 5 -.189 -.015 .827 .038 .021 -.067 -.249 .Rotated Component Matrix(a) Component 1 Margin Deep_freezer_facility Trade_promotion_policies Logistics Product_quality Wide_range_of_flavors Attractive_packaging Durability_of_product Replacement_policy Demanded_products Credit_policy Excessive_demand_handling Price_sensitivity -.876 .253 .042 .151 5 .736 -.144 -.855 .282 .024 .678 Extraction Method: Principal Component Analysis.114 -.032 -.200 .168 .807 .223 .775 .086 .041 .164 .239 .878 -.063 .099 -.102 .007 2 .183 -.002 .691 -.010 . Rotation Method: Varimax with Kaiser Normalization.342 -.102 .845 .406 .838 .434 -.902 Extraction Method: Principal Component Analysis.300 -.080 -.025 -.174 .050 -.211 3 -.849 .001 -.004 -.257 -.795 .097 .089 -.

CHAPTER – 7 REFERENCES 60 .

html 7.). REFERENCES 1..).co.workosaur. Keller. (n. Retrieved 4 3.workosaur. Business Research Methods.d. from http://www.co. 2010. (n. Retrieved 4 2. from www. 2010.in: 222.). Koshy.d. Retrieved 5 6.aspx http://www.d.com/pages/Dinshaws/93914427946?v=info 8. L.google.com/: http://www.in/about_history.com/Kwality-Walls-Ice- 13. Retrieved 4 22.com/: Cream/Default. New Delhi: Pearson education. from : http://www. Marketing Management. 2010. K.A South Asian Perspective. Ice Cream Industry in India.). Amul Ice Cream: Marketing Strategy.co. 2010. Dinshaw's.html: http://www.7. G.org. Retrieved 4 4.). from http://www.aavinmilk.html 2.d. A.html 5.kwalitygroup.creamlinedairy.d. 61 .). 2010. Company Profile. 2010.amulicecream.in/about_history. (n.amulicecream.in/: http://www. from http://www.facebook. Zikmund.google. 506-031-1 (2006). 12.in 4.d. (n.d.com/: http://www. Retrieved 4 6.com/cprofile.. Indian Dairy Industry.d. from http://www.wikipedia. (n.kwalitygroup.amulicecream. 2010. Retrieved 4 16.dare.facebook.com/dairyprofile. Kotler.. W. P. New delhi: Cengage Learning India Private Limited. (2003). 2010.).).in/opportunities/other-business-opportunities/ice-cream-industry-inindia.com/: http://www.in/about_history.aavinmilk. from www.dare. 2010. Retrieved 4 4.html 11. 3. 2010. (n. 6. Retrieved 4 6. About History. & Jha.com/food-industry-overview/ 9. (2009).htm 10.). Kwality Walls Ice Cream. (n.co. Inc.com/: : http://www. from http://www. (n. (n. from http://www. (n. from http://www.d.d.creamlinedairy.). M. Food Industry Overview. Retrieved 5 10.

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3 MAIN TEXT .CHAPTER .

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2010 Figure 6 Single and Multi brand outlet of various brands Source: Field Survey. Kwality Walls holds first position for both exclusive and multi-branded outlet.3. Though AMUL is available at 37 outlet but number of multi-branded outlet is almost double of exclusive . 2010 These graphs exhibit the number of retail outlet present in all the areas in which survey was done.1 PENETRATION IN THE MARKET Figure 5 Market share of single and multi brands retailers Source: Field Survey. Key observations: In total 63% retailers prefer to keep only one brand and rest keep two or more than two brands. Source: Field Survey. PRIMARY TABULATION AND INTERPRETATION 3. 2) Multi-branded outlet: Retail outlets which keep two or more than two outlets at one place. 2010 Figure 7 Share of single and multi brand retailers in various areas. Analysis of data suggests that there are two type of retail outlet exists in the market which are: 1) Exclusive outlet: Retail outlets which keep only one brand.

2010 Key observations: Demographic distribution of customers is one of the major concerns of any industry. the highest consumers fall in the age group of 25-35 closely followed by the consumers of age group of 15-25.outlet.3 TYPE OF ICE-CREAM 19 . It can be seen that the least amount of consumers are in the age group of 7-15 mostly because they are dependents and they do not have a large amount of disposable income with them. 3. Areawise graph shows that AMUL is present predominantly in all the regions along with Kwality walls whereas Jersey. married couples. According to the research. At Attapur reach of the Others brand is reasonably better than all other brands. As per the graph customers who consume ice-creams commonly lies between 15-35 years of age which include college going students. Dinshaw’s and Heritage is not present at few places.2 DEMOGRAPHIC DISTRIBUTION Figure 8 Incidence of visits of various age-group Source: Field Survey. 3.

Figure 9 Preference of type of ice. Litchi. Strawberry. Butter scotch. Economic pricing of vanilla can be the reason for its highest sale. Mixed fruit. Analysis suggest that Normal ice-cream is favored most which holds 43% share of consumption as described by the retailers.4 FLAVORS In the market we can find many flavors such as Vanilla. Mango. Sherbet and Gelato are new generation. Lack of awareness among people for Gelato and Sherbet might be the reason for low preference of these ice cream. 2010 .cream Source: Field Survey. All four type of ice-creams are manufactured mostly by all the companies. There are four type of icecream in the market which are readily consumed. In this study only four flavors are being taken distinctly and all other flavors has been clubbed under the category Others. health friendly icecreams which exhibit very less share in comparison to the Normal and Sundae. Chocolate and Strawberry holds almost same rank on the preference list with market share of 20 18 Figure 10 Sales of the various flavors Source: Field Survey. It has been observed that vanilla is basically consumed by families in form of family packs. 3. Among various flavors present in the market Vanilla is the most preferred flavor followed by Butterscotch with a very small margin of 3%. 2010 This is an attempt to study the preference of type of ice cream. Sundae grabs the second position holding 36 % part of preference. Chocolate. Two in one etc.

contribute a little part of consumption. This study demonstrate that Cup. Relatively Low-price Cups are generally consumed by the kids and low income group members. Out of all Cup. 3. Family pack and Stick are used most commonly by all the companies. Cones and Family packs are preferred equally by the people whereas sticks have got the least preference. During the initial phase of study it was observed that ice-cream are available in number of packets. 2010. Other flavors like Mango. Cones. This trend can be accredited to location of type of retail outlet in the surveyed area and variability in the taste of different age group. 3.5 TYPE OF PACKAGING Figure 11 Preference of various packagings Source: Field Survey.and 18 percent respectively.6 SOURCE OF INFORMATION ABOUT NEW VARIANT TO THE RETAILERS 19 . Litchi etc. I have not taken any other type of packaging in to the account as their visibility in the market is almost negligible. Some other interpretations conveys that Amul offers significantly wide range of flavors.

Company advertisements also play a vital role which may enhance the awareness among retailers directly or indirectly. This is done by advertisement on mass scale to cause awareness or by salesman at retailer’s level.Customer demand participate significantly to communicate retailer about the new launch.In the era of competition every company wants to stay ahead. company salesman is the chief source who update the retailer about all the new variants. New product development and acquiring the shelf-space along with existing products is quite intricate work. Same is the case with Icecream companies. This study displays that . A AMUL is the market leader with 35% market share which is 5% more than Kwality Walls unlike their availability in the surveyed area. 3. 2010 Figure 13 Market share of brands Source: Field survey 2010. Heritage and 19 . customer demand and word of mouth are also considered which act as source of information.7 SALES Figure 12 New variants' information source Source: Field Survey. This indicates that company’s initiative are less than the customer’s willingness to try new variant. Brands like Dinshaw’s. out of four. Apart from advertisement and salesmen.

054 No. Research says that the sale of all brands divided into weekdays and weekend separately. 3. Other companies together occupy 23% share in the market.53 5350/10060 = 0.8 FACTOR ANALYSIS Primary data collected from ice cream retailers in the various area of Hyderabad is analyzed by Factor analysis.38 Table 1 Comparison of sales and days ratio. Though the sale of weekdays is greater than weekend sale but the ratio of weekend sale and weekdays sale is greater than the ratio of number of weekend and weekdays in an year as shown in the table below: Weekend sale / Weekdays sale 6130/11490 = 0.61 4070/7670 =.38 100/260 =0. Source: Field survey 2010.38 100/260 =0. This analysis is done on two types of data. Figure 14 Annual sale of various brands seperated in weekdays and weekend. The reason of such a variation in the sale on weekdays and weekend put light on consumption trends.38 100/260 =0.38 100/260 =0.38 100/260 =0.40 830/1350 = 0.57 520/1290 = 0. of weekdays 100/260 =0. It can be said that as a brand Amul and Kwality Walls are the main competitors. behavior and habits of the customers. one is the trade promotional 19 .Jersey jointly share only 12% of the market size which is much less than their share at domestic level. of weekend / No.53 820/1430 = 0.

varies at different level of business hierarchy. retailers to improve sales are considered to be the part of salespromotion. To motivate the retailers and their sales clerks to push the product. This study is limited to various tools used by companies to enhance sales through retailers.1 TRADE PROMOTION POLICY Trade promotion is a required to push the sales of the company. distributors. display. and grievance redressal. bulk order discount. and • This study has taken seven different variables into the account under the title Trade promotion policy employed by the ice-cream companies.8. It is straight discount off the list price on each case purchased during a stated time period. The purpose of the trade promotion can be explained as follows: • • • To occupy the shelf-space at retail outlet.policies and other is the various characteristics related to ice cream industry which jointly consist of 20 different variable. maximum sales incentives. Report consists of detailed explanation of both the data and interpretation. It is basically introduced to sales of the product which moves very slowly. Various activities and schemes which promote sales-force. To convince the retailer to sell the products of concerned company before others. rewards. These variables are named as highest advertising allowance. and price reductions. 19 . free merchandise. All of these trade promotional policies are explained below: Highest Advertising Allowance An advertising allowance given by the companies to the retailers so as to compensates the expenses incurred by the retailers for advertising the manufacturer’s product. 3. It act as the encouragement which stimulate quicker or greater purchase of particular products or services by consumers or the trade. discount off list price. Discount Off list Price It is also known as price-off. To induce retailers to promote the brand by featuring.

As mentioned earlier seven types of trade promotional policies were taken as variables to extract the major factors that form the major chunk of the various promotional policies offered by a company to various ice cream retailers and shopkeepers. for example. Grievance Redressal It is the facility provided to retailers by the company to resolve the issues related to trade. Data is reduced to three factors. cash or company sponsored tour packages etc. Bulk Order Discount It is an additional margin given to the retailers along with the fixed margin when they make order in bulk. Factor analysis of these seven variables is found valid as KMO ( Kaiser-Mayer-olkin) value which measures the adequacy of sampling comes out to be 0. Maximum Sales Incentives The incentive given to the retailers on maximum sale among many retailers located in a particular area. Complaints and problems of the retailers are being addressed by the concerned officials of the company. The three factors identified under which these policies can fall are: 1) Pecuniary benefits to Retailer 20 . Rewards These are sort of bonuses provided to retailers when the retailer performs exceptionally well or makes the highest amount of sale for a prolonged period of time.577. Bonuses can be provided in different forms. Company policy and the quantity of the product ordered determines the range of discount provided to the retailer.Free Merchandise An another form of promotion policy which offers the extra cases of merchandise to retailers who buy a certain amount of the product to be sold.

Factor 2: Back-up policy This includes Highest advertising allowance and Grievance redressal. Bulk order discount and Maximum sales incentive. This factor helps the company to maintain good relation with the retailers. High advertising allowance means that monetary help provided by the company to the retailers so as to motivate the retailer for initiating or continuing the individual efforts of advertising company products. Factor 1 Factor Name Pecuniary Benefits to Retailer Variables ○ Discount Off list Price ○ Bulk Order Discount ○ Maximum Sales Incentives ○ Highest Advertising Allowance ○ Grievance Redressal ○ Free Merchandise ○ Rewards Factor 2 Back-up policy Factor 3 Complimentary Promotion Factor 1: Pecuniary Benefits to Retailer Under this factor the variables or the trade promotional policies present are Discount Off list Price.2) Back-up policy 3) Complimentary promotion Table 2 Factors for Trade promotion policy Factor No. Factor 3: Complimentary promotion 18 . This factor indicates that these trade promotional policies provides monetary benefits to the retailer vis-à-vis increases the volume of the sale.

3.8.This factor comprises of Free merchandise and rewards. The 13 features taken as variables for this analysis are: 1) Margins 2) Deep-freezer 3) Trade Promotional Policies 4) Logistics 5) Product quality 6) Range of Flavors 7) Attractive Packaging 8) Durability of the Product 9) Replacement Policy 10) Demanded Products 11) Excess Demand Handling 12) Credit Policy 13) Price Sensitivity Factor analysis of these seven variables is found valid as KMO ( Kaiser-Mayer-olkin) value which measures the adequacy of sampling comes out to be 0. Free merchandise is generally goods which contain company’s logo or company’s name which when used promotes the product of that brand.2 CHARACTERISTICS OF ICE CREAM INDUSTRY Ice cream has a range of characteristics which is distinct from all the other industries. Rewards persuade the retailers to perform extra-ordinary which are being admired by company resulting into benefits to the retailers. Both the variables expresses the appreciation of retailer by the company. The five factors identified are as follows: 1) Product Feature 20 .660. In this research project we have considered 13 such characteristics to deduce certain factors that are vital for the ice cream industry. Data is reduced to five factors.

2) Competence 3) Demand management 4) Credit 5) Trade promotion Table 3 Factors for ice cream industry Characteristics Factor No. Factor 1 Factor name Product Feature Variables ○ ○ ○ ○ Range of flavors Attractive Packaging Durability of the Product Quality of the Product Factor 2 Competence ○ Margin ○ Deep-freezer ○ Logistics ○ Replacement policy ○ Price sensitivity ○ Demanded product ○ Excessive demand handling ○ Credit policy ○ Trade promotion policy Factor3 Factor 4 Factor 5 Demand management Credit Trade promotion 18 .

Figure 15 Variables of pecuniary benefits to retailers. Back-up policy The trade promotional policies given by the company to the retailers in order to maintain good relations with retailer include: 20 .9. 2010 It can be observed that most of the companies prefer to provide bulk order discount rather than providing the retailer discount off list price and Incentives.1 FACTORS FOR TRADE PROMOTION POLICY Pecuniary benefits to retailers The trade promotional policies given by the company to the retailers in order to provide monetary benefits to the retailer include: • • • Discount off list price Bulk order discount Maximum sales incentive The graph below shows the average of the ratings given to each of these factors by the respondents.3. Source: Field Survey.9 FACTORS AT A GLANCE 3.

• • Advertisement allowance Grievance redressal The graph below shows the average of the ratings given to each of these factors by the respondents. 3. Figure 17 Variables for complimentary policy factor Source: Field Survey. 2010 From the diagram.2 FACTORS FOR ICE CREAM INDUSTRY CHARACTERISTICS Product features 18 . Complimentary policy The trade promotional policies given by the company to the retailers in order to appreciate retailers are: • Free merchandise • Rewards The graph below shows the average of the ratings given to each of these factors by the respondents.9. Source: Field Survey. 2010 It can be inferred from the above diagram that companies believes in addressing the complaints and problem as soon as possible rather providing advertisement allowance. it can be seen that company consider free merchandise as good option to express their appreciation for retailers which otherwise fulfill the purpose of indirect communication rather than giving rewards. Figure 16 Variables of back-up policy.

range of flavors and attractiveness of packaging are much more concerned variables for the company than product durability. Figure 19 Variables related to competence Source: Field Survey. ice cream collectively forms the first factor which includes: • • • • Quality of ice cream Range of flavors Durability of ice cream Packaging of the ice cream The graph below shows the average of the ratings given to each of these factors by the respondents. Competence To stay in the market all companies have to show their competence in one or other way. 2010 Above graphs states that product quality. 2010 18 . Source: Field Survey.The features of product i.here competence comprises of following variables: • • • • • Margin Deep-freezer Logistics Replacement Price The graph below shows the average of the ratings given to each of these factors by the respondents.e. Figure 18 Variables related to product characteristics.

It includes: • • Demanded products Excessive demand Demanded products means that the amount of product ordered by the retailers on regular basis whereas excessive demand occurs occasionally. 2010 From the above diagram it can be inferred that company focuses a lot on the routine demand. Credit This factor consist of only one variable i. Providing deep. Replacement and price sensitivity are seems to be less concerned variables where companies try to show their competency.freezer to the retailers is also an area of concern that too at rfeasonable rates with life time maintenance responsibility. The graph below shows the average of the ratings given to each of these factors by the respondents.From the graph it can be seen that companies tries to stay ahead in terms of margin and logistics. companies hardly prefer credit sale unlikely many other industries. As per the research. Trade promotion 18 .e Credit policy adopted by the various company. Figure 20 Variables related to demand. Source: Field Survey. Demand management This includes the variables related to the demand of products by the retailers.

10. Pecuniary Benefits to Retailer Figure 22 Comparison of pecuniary befits to retailers By Amul and industry. It is an important factor from companies point of view. 2010 Amul presents the same characteristics of back-up policy like the whole industry. Source: Field Survey. Understanding and resolving the problem is given the prime importance and retailers are motivated less to advertise about the company. 2010 20 . It is taken separately so as to understand the attitude of retailers towards the polices employed by the companies. Figure Source: Field Survey.1 TRADE PROMOTION POLICY Back-up policy Figure 21 Comparison of back-up policies of Amul and Industry.This factor consist of trade promotion policy. 3.10 FACTORS AT A GLANCE: COMPARISON OF AMUL WITH INDUSTRY 3.

2 FACTOR FOR CHARACTERISTICS Competence Figure 24 Comparison of competence factor of Amul and IndustryS Source: Field Survey. Logo and pictures of the ice creams on the merchandise when used by the retailers fulfill the purpose of the company. Complimentary policy Figure 23 Comparison of complimentary policy by Amul and Industry Source: Field Survey. Like all other players Amul also believes in distributing free merchandise than rewards. Product features Figure 25 Comparison of product features of Amul and Industry Source: Field Survey. Amul provide less margins to the retailers than many other companies but has developed a good logistics system which gets the appreciation of the retailers. Relative analysis suggest that Amul provides the reasonable priced products to the consumers. Incentives is considered as the last option which determines that Amul altogether follows the different monetary benefit strategy for the retailers. Deep freezer facility is still an issue to think about.From the graph it can be seen that Amul provides discount on the list price unlike the pecuniary policies of all players in the surveyed region. 2010 Being the market leader of India Amul follow various competitive tools so as to stay ahead in the market. 2010 20 .10. 2010 Every brands put all the efforts to show their presence and cause awareness among people through various marketing strategies. 3.

range and packaging. Managing excess demand is managed inappropriately . Amul stresses upon providing high class products to the consumers in terms of quality. 20 .Amul demonstrate the same characteristics like the Industry. 2010 Routine management of demand is found easy by all the companies. Demand management Figure 26 Comparison demand management of Amul and Industry Source: Field Survey.Like all. This shows that industry is focused towards providing good products to the consumers.

Though Kwality walls presence in the market is better than Amul yet Amul is the leader in terms of sales.3. As discussed earlier Amul depends upon list price discount rather than bulk order discount where as Kwaliity walls moreover provides bulk order discount to the retailers. This section closely examines all the factors to understand the strength and weakness of the Amul with respect to its chief competitor i. Amul holds 35 percent market share which is closely followed by the Kwality walls which has 30 percent market share.1 TRADE PROMOTIN POLICY Pecuniary Benefit to retailer Figure 27 Comparison of Pecuniary benefit by Amul and Kwality walls. Both companies shares the mind and market significantly.e Kwality Walls. Being the best players of the industry both needs to expand the total market therefore retailers are provided discounts to enhance share.11.11 COMPARISON OF AMUL WITH KWALITY WALLS Kwality Walls is the main competitor of Amul. There is insignificant difference in incentive given by both the players. 3. Source: Field survey 2010 Both companies have adopted different monetary policy to promote trade. Back-up policy Figure 28 Comparison of back-up policy of Amul and Kwality Walls Source: Field survey 2010 20 .

According to me Amul follows good strategy because giving merchandise increases awareness along with appreciating the retailer which is not the case in giving rewards. Source: Field survey 2010 From the above graph it can be easily noticed that Amul does not hold good position in terms of providing deep freezer to the retailers. 3. This can be the reason of the low availability of Amul than Kwality walls.11. All three other characteristics show insignificant difference which makes competition intense. Source: Field survey 2010 Amul supports distributing free merchandise to the retailers instead of giving rewards to the retailers unlike Kwality walls.2 INDUSTRY CHARACTERISTICS Competence Figure 31 Competence factor of Amul and Kwality walls. Complementary policy Figure 30 Complimentary policy of Amul and Kwality Walls.Improper operations and marketing strategy can leads to conflict between retailers and the company there fore proper grievance redressal system is required so as to avoid any obstruction in the business. Product features 20 . Both the companies are highly directed towards backing up the retailers by maintaining efficient grievance redressal system. One thing can also be deducted that Kwality walls provides replacement facility of the damaged product to the retailers effectively which also promote retailers to keep kwality’s product.

Sale of ice creams largely depends upon the class of product provided by the brand. Source: Field survey 2010 Overall products of the Kwality walls are considered better than the Amul. Both the products are preferred for providing high class ice creams. Both companies offers wide range of flavors and durability of product is considered as good. People prefer Kwality walls in terms of quality and packaging. Demand Management Figure 33 Demand management of Amul and Kwality Walls. Figure 32 Product features of Amul and Kwality walls. Source: Field survey 2010 From the above graph it can be inferred that Amul has the inappropriate management of the demand. Graph clearly determines that kwality walls got an edge in terms of developing routine and excessive demand. 20 .

CHAPTER – 4 CONCLUSIONS 20 .

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Companies’ initiatives are less than the willingness of the customers to try new products. Heritage and Jersey have very poor visibility in terms of retail outlet. Amul has less penetration than Kwality Walls in terms of exclusive and multi-branded retail outlets. Being new in the market sherbet and gelato share very less amount of awareness and sales. Preference of the flavors by the consumers is quite diversified still Vanilla tops the list of preference. Various other companies like Masqati and Jumani shares remarkably better shelf space than Dinshaw’s. Amul is the leader in terms of revenue generation which is closely followed by the Kwality Walls. avoiding any dispute with the customers and 44 . Heritage and Jersey.4. • • • • Information about the new products to the retailers is generally parted through the salesmen. Brands like Dinshaw’s. • Retailers are interested to keep only one brand rather than two or more than two brand. Detailed analysis of trade promotion policies and various characteristics is done. Demographic pattern has shown dissimilar trends than the general perception of consumption of more ice cream by the kids. • • • Normal and sundae are preferred most when it comes to any brand. type of ice cream. certain conclusions can be derived cited below. Young and middle aged individuals consumes large amount of ice group than any other age-group. packaging and reveals demographic patterns of buying. It includes analysis of people preference of flavors. Working on such lines. Though local players individually do not grab noticeable market share but jointly holds 23 percent market share. CONCLUSIONS This study identifies the potential and opportunity in Hyderabad ice cream industry. Various trade promotion policies have been adopted by the companies moreover players believes in providing bulk order discount. • • Consumption of ice creams increases during weekends upto a large extent.

Replacement and credit is hardly practiced by companies except few. Deep freezers are provided to the retailers to store ice creams. logistics and various facilities given to the retailers. demand management. High quality product and efficient meeting of day to day demand are the basic requirements of the industry.distributing free merchandise. 45 . Deep freezer facility and demand management of Kwality walls is better than Amul whereas both give almost equal margin to the retailers. • Industry demonstrate distinct attributes which includes product quality. it can be concluded that competition is intense in the market which demands effective trade promotion policies. efficient demand management. Amul provides off-list discount rather than bulk order discount. Lastly. high class products and well organized logistics system. • • • Demand management and deep freezer facility of Amul is the least accepted in the market whereas its ice creams are considered as reasonably priced and high class.

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CHAPTER – 5 RECOMMENDATIONS .

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New customers should be targeted by increasing awareness or by adopting geographical-expansion strategy. school can be targeted to improve the sale through kids. Amul needs to review the allocation of the retailers according to the geographical areas and demographics so that its penetration in the market might increases. This section includes recommendations to the Amul so as to improve its performance and grab opportunities. • • • Demand management of Amul is very poor specially in meeting the excessive demand in summer or peak load season. It can be improved by relevant forecasting thus keeping appropriate stock. • Being the market leader Amul needs to expand its business in Hyderabad.5. This study has been devised to compare Amul with other companies and analyze general trends of the industry. Ares like Attapur. Many companies provide deep freezer at 40 to 50 percent lower rates than Amul. • Amul requires good logistics and delivery system to avoid delay in release of products ordered by the retailers. brand value and sales turnover. In the surveyed region consumption by the kids is least. RECOMMENDATION All companies displays various strength and weakness which determines their position in the market. • • Amul should upgrade its reward and incentive policy to promote trade through retailers and develop the retailer friendly image. 46 . Hydergudda and Nana-nagar have very few outlets of Amul. Availability can be increased by providing Deep freezers at reasonable rates which motivate the retailer to keep Amul in his or her shop.

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CHAPTER – 6 ANNEXURE .

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…………….6. Rank the type of ice cream people prefer most on a scale of 1 -7. ...……………. 3. Since how many years you are in the business of ice creams? ………………………… 2. 1 Normal (ice cream) Sundae Sherbet Gelato (type of Italian ice cream) 47 2 3 4 5 6 7 . Please tick a) b) c) d) e) f) g) AMUL Kwality Walls Heritage Jersey Dinshaw’s . I keep one/many/all of the following brands in my ice cream shop. ANNEXURE ANNEXURE I – QUESTIONNAIRE MARKET ANALYSIS OF AMUL ICE CREAMS A COMPARATIVE STUDY Answer the questions on the basis of following scale: 1234567Almost never preferred Usually not preferred Sometimes but infrequently preferred Indifferent/Neutral Often preferred Usually preferred Almost always preferred 1.

Most of the people prefer to have ice cream with/in? 1 Cup Cones Family Pack Stick Others…………………… 6. How do you come to know about the launch of new variants? 49 . How frequently do you keep latest variants on the shelf? a) b) c) d) e) f) g) All of the time Very often Often Sometimes Just now and then Rarely Never 2 3 4 5 6 7 7.4. Rank the flavors according to their sale on a scale of 1-7. 1 2 3 4 5 6 7 Vanilla Chocolate Butter Scotch Strawberry Others…………………… 5.

49 2 3 4 5 6 7 2 3 4 5 6 7 . The most frequent age group to visit your outlet to buy an ice cream is 1 7-15 years 15-25 years 25-35 years 35-45 years 45 & above 10. Which brand launches the variants most frequently? 1 AMUL Kwality Walls Heritage Jersey Dinshaw’s Others 9..1 Advertisement Company Salesmen Customer Demand Word of Mouth 2 3 4 5 6 7 Company 8.. Why so? …………………………………………………………………………………………… ………………………………………………………………………………………….

On which days a week your outlet is open? Please tick. Heritage ………………………………… Jersey …………………………………. Dinshaw’s ……………………………… Others…………………………………… 13. Monday Tuesday Wednesday Thursday Friday Saturday Sunday 12.. What is the approximate average daily sale (in rupees) of the following brands on weekdays? a) b) c) d) e) f) AMUL …………………………………. Kwality Walls …………………………..11. How many days an year you keep your outlet closed? ………………………… 49 . Dinshaw’s ……………………………… Others…………………………………… 14.. Heritage ………………………………… Jersey ………………………………….. Kwality Walls …………………………... What is the approximate average daily sale (in rupees) of the following brands on weekend? a) b) c) d) e) f) AMUL ………………………………….

Rank the following brands on a scale of 1 to 7 for the characteristics given below (1 being the least preferred and 7 being the most preferred in the category) AMUL 1. 6. Highest advertising allowance Discount off list price Free merchandise Bulk order discount Maximum sales incentives Rewards Grievance redressal KWALITY WALLS HERITAGE JERSEY DINSHAW’S OTHERS 47 . 5. 3. 2. 7. 4.

.AMUL 1. Education Qualification: 8. Age: 6. 3. My ice cream business is: 48 . 6. Locality: 4. 7. 8. 11. 10. 13. 3. Name of the owner: 5. High Associated Margins Deep Freezer Facility Trade Promotional Policies Efficient Logistics Product Quality Wide range of Flavors Attractive Packaging Durability of Product Replacement Policy Demanded Products Credit Policy Excess Demand Handling Price Sensitivity KWALITY HERITAGE JERSEY DINSHAW’S OTHERS 1. 12. 4. Shop Type: Kirana Store Bakery Fast Food Joint Restaurant Others…………………………. Sex: 7. Name of the shop: 2. 9. 2. 5.

If Yes. 47 ..Exclusively mine Supported 9. Does anybody provide you counter assistance? Yes/No 10. who is the concerned person……………………………………….

. Chi-Square df Sig.000 1.000 1.769 .973 21 . 47 .626 .000 1.000 1.000 1.449 .013 Communalities Initial Highest_advertisement_ allowance Dicount_off_list_price Free_merchandise Bulk_order_discount Maximum_sales_ incentives Rewards Grievance_redressal 1.FACTOR ANALYSIS (TRADE PROMOTIONAL POLICIES) Factor Analysis: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 37.361 .630 .556 .000 Extraction .622 Extraction Method: Principal Component Analysis.ANNEXURE II.577 Bartlett's Test of Sphericity Approx.000 1.

2 9 2 57.0 8 3 91.6 7 7 2 3 .5 1 2 3 4 5 6 7 C m o e tN m e o pnn u br 47 .070 15.7 5 7 5 7 .035 1.3 2 7 4 .0 0 5 .0 4 2 2 3 .9 2 4 69.9 6 0 1.327 1.0 0 6 100.0 7 5 42.960 2 3 .613 2 3 .8 3 5 1 1 .075 4 2 .0 7 0 1 5 .0 3 5 1.7 0 0 .5 Eigenvalue 1 5 .9 6 0 23.7 7 6 1 1 .3 2 7 1.T o ta l V a r i a n c e E x p l a i n e d In it ia l E ig e n v a lu e s E x t ra c t io n S u m s o f S q u a re d L o a d inR s t a t io n S u m s o f S q u a re d L o a d in g s go C o m p o n e n t T o ta l % o f V a ria n c C u m u la tiv e % T o t a l % o f V a ria n cC u m u la tiv e % T o t a l % o f V a ria n cC u m u la t iv e % e e e 1 1 .994 7 .5 7 0 3 1 .000 E x t ra c t io n M e t h o d : P rin c ip a l C o m p o n e n t A n a ly s is .265 18.103 1 5 .5 2 8 4 1 .2 1 0 .911 6 .960 1.6 6 0 80.292 5 7 . S re P t c e lo 1 5 .7 1 0 .2 6 5 1 8 .5 6 0 8 .8 1 6 1 1 .0 4 2 2 1 .677 23.251 5 .297 1 8 .

082 Extraction Method: Principal Component Analysis.131 -. a.062 -.587 -. 49 .121 .243 .594 .079 .076 . a 3 components extracted.741 -.031 .783 -.069 .599 3 -.022 Component 2 .Component Matrix(a) Component 2 .284 .402 .593 .754 .021 -.194 .830 .198 .780 .160 -. a Rotated Component Matrix 1 Highest_advertisement_ allowance Dicount_off_list_price Free_merchandise Bulk_order_discount Maximum_sales_ incentives Rewards Grievance_redressal -.144 .062 .477 .002 -. Rotation converged in 4 iterations. Rotation Method: Varimax with Kaiser Normalization.648 1 Highest_advertisement_allowance Dicount_off_list_price Free_merchandise Bulk_order_discount Maximum_sales_incentives Rewards Grievance_redressal 3 -.513 Extraction Method: Principal Component Analysis.722 -.860 -.132 .231 -.243 .441 -.104 -.697 -.324 .012 .060 .

953 -. . Chi-Square df Sig.254 .FACTOR ANALYSIS (CHARACTERISTICS) Factor Analysis: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Rotation Method: Varimax with Kaiser Normalization.000 47 .249 2 .037 78 .285 .660 Bartlett's Test of Sphericity Approx.162 .Component Transformation Matrix Component 1 2 3 1 .097 3 -.935 -. 295. ANNEXURE III.964 Extraction Method: Principal Component Analysis.213 .

725 .Communalities Initial 1.000 1.000 1.000 1.733 . 47 .769 .000 1.612 .734 .692 .717 .000 1.756 .000 Extraction .000 1.649 .657 Margin Deep_freezer_facility Trade_promotion_policies Logistics Product_quality Wide_range_of_flavors Attractive_packaging Durability_of_product Replacement_policy Demanded_products Credit_policy Excessive_demand_handling Price_sensitivity Extraction Method: Principal Component Analysis.705 .420 .593 .000 1.000 1.000 1.000 1.000 1.000 1.

021 .309 .931 7.067 .721 5.063 .222 12 .608 .184 -.526 92.602 .458 3.760 .446 3 -.009 -.287 2.824 49.668 .366 10.162 74.032 1.149 .268 .724 88.254 .103 .414 1.055 Extraction Method: Principal Component Analysis.755 .824 49.087 .789 13 .903 19.580 -.866 67.031 -.000 Extraction Method: Principal Component Analysis.767 .185 .000 -.311 -.Total Variance Explained Extraction Sums of Squared Initial Eigenvalues Loadings Compon % of Cumulativ % of Cumulativ ent Total Variance e% Total Variance e% 1 3.548 5 1.717 37.021 9 .717 37.278 -.340 .353 1.176 -. a 5 components extracted.384 2.901 85.246 .414 Component Matrix(a) Component Margin Deep_freezer_facility Trade_promotion_policies Logistics Product_quality Wide_range_of_flavors Attractive_packaging Durability_of_product Replacement_policy Demanded_products Credit_policy Excessive_demand_handli ng Price_sensitivity 1 -.133 1.253 .144 4 .054 23.237 9.491 23.779 47.211 100. 47 .348 .640 1.271 9.334 2.516 58.491 3.093 .548 1. Rotation Sums of Squared Loadings % of Cumulativ Total Variance e% 2.344 .084 -.866 67.240 -.414 6 .310 .153 8.035 .078 .576 7 .879 14.601 .472 .537 11.516 58.294 .271 11 .211 -.208 1.783 13.507 57.567 97.164 5 .774 67.208 3 1.505 .246 .291 .333 -.453 -.289 2 .663 .385 .130 -.032 4 1.714 -.746 10 .062 -.058 -.587 19.604 -.121 8 .209 .491 23.039 .537 11.484 3.054 -.545 80.903 1.783 13.427 .153 8.491 2 1.951 95.387 .049 .237 9.161 -.774 .450 34.054 23.637 4.661 12.205 -.

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807 47 .217 -.174 2 .219 .032 -.168 3 .249 .342 -.439 .775 .257 -.183 5 -.Scree Plot 3 Eigenvalue 2 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Component Number Rotated Component Matrix(a) Component 1 Margin Deep_freezer_facility Trade_promotion_policies -.099 -.164 4 .010 .

046 -. Rotation Method: Varimax with Kaiser Normalization.189 -.795 .200 .007 .121 .473 .121 .010 .340 .004 -.126 .048 -.111 -.223 .015 .855 .144 -.078 -.599 -.144 .004 .038 .100 .253 .876 .001 -.845 .878 -.736 -.050 -.151 5 .063 .800 .021 -.902 Extraction Method: Principal Component Analysis.282 .434 -.097 .211 3 -.023 4 .002 .071 .323 .024 .018 .849 .838 .678 . Component Transformation Matrix Component 1 2 3 4 5 1 .042 .102 .114 -.418 .406 .345 2 -.041 .239 .691 -.103 -.067 -.089 -. 47 .063 -.220 Extraction Method: Principal Component Analysis.086 . a Rotation converged in 6 iterations.300 -. Rotation Method: Varimax with Kaiser Normalization.647 -.102 .025 -.485 .230 -.055 .Logistics Product_quality Wide_range_of_flavors Attractive_packaging Durability_of_product Replacement_policy Demanded_products Credit_policy Excessive_demand_handling Price_sensitivity .827 .485 .211 -.080 -.

CHAPTER – 7 REFERENCES 47 .

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