Group: 3| Consumer behavior and insights

Roll-on/roll-off Konkan Railways

AGENDA

 Background
 Executive Summary
 Operations Strategy
 Marketing Plan
 Financial Projection/Forecast
 Overall Summary
 Conclusion
 References

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 BRAND INTRODUCTION - NATURALS

 Natural Ice Cream is an Indian ice cream brand owned by

Mangalore-based Kamaths Ourtimes Ice Creams Pvt. Ltd.

 The company pioneers the Indian ice cream industry by making

specialized artisan ice creams, 100% free from any preservatives,
stabilizers, sweetener and artificial stuff.

 Naturals ice cream manufactures, distributes and sells ice creams

that are made with fresh organic fruits & fruit pulp, dry fruits, milk
and sugar

 Its competitive advantage is the exotic range of over 55 fresh and

organic flavors that it offers. Some of the seasonal flavors include
litchi, fig, jackfruit, Muskmelon and watermelon.

 The chain currently has 135 stores across India, with 8 stores
under direct control and the rest as franchised locations..

 The chain recorded a retail turnover of ₹300 crore in the financial

year 2020, up from ₹115 crores in 2015.

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 BRAND HISTORY - NATURALS

 Natural's ice-cream was founded by Raghunandan Srinivas

Kamath who opened its first store at Juhu, Vile Parle in Mumbai in
1984.

 The brain behind Naturals Ice Cream, Raghunandan Kamath used

his home maker mother’s hacks and fruit vendor father’s fruit
expertise to build an iconic Indian brand that stepped away from
artificial colors, flavors and preservatives.

 By taking advantage of no stand-alone ice cream parlors in

Mumbai back in the 1980s and understanding the clientele (well
exposed and moneyed) who would walk in for ice creams.,
Raghunandan opened a 250-sq-ft outlet at Juhu, where most of the
Bollywood and small-screen celebs reside. That’s how the first
outlet of Natural Ice Cream was launched in 1984.

 The whole idea was to move beyond chocolate and Vanilla ice
cream flavor and stand out in the ice-cream industry.

 Initially with just four staff members and ten ice cream flavors, at
Juhu. The ice creams soon became a smash hit purely through
word of mouth and its unique fruit-based ice-cream offering.

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Positioning in the market

Its different position from other ice cream brands is providing customers
with “Fresh, natural and fruity ice cream”
The Brand name & tagline reveals the position itself.

The consumer insights are derived from below questions –

 Q1. How do you describe the experience of having ice cream at

Natural’s store?
 Q2. What differentiates Natural’s from other ice cream brands?
 Q3. How did you come across as Natural’s brand?
 Q4. What comes to your mind when your hear the name Natural’s ice
cream?
 Q5. Out of these 4 brands (Amul, Mother dairy, B&R, Naturals), which
one would you select for different occasions/situation and why?

The consumers see the brand as a “conscious choice of eating healthy

fruits while savouring the feel of an ice cream – Best of both worlds”.
 Perceptual map of Brands
Expensive
10

7
Artificial /
factory made 6 7 8 9 10

1 2 3 4 5 Natural /
freshly made

1
Affordable
NATURALS PERCEPTIONS AMONG CONSUMERS

 There are some negative perceptions among consumers about

Naturals however majority of consumer perceptions are
positive.

 Some of the consumers perception is that Naturals has super

focus on health & nutrition of consumers due to which some
ice creams taste bad.

 On the contrary, Some of the consumers perception is that

some Naturals ice creams especially Bitter Mango ice cream
are unhealthy some consumers felt sick after having it. 

 Few consumers feel that the taste of Naturals ice cream has
changed and deteriorated and doesn't taste the same as
before even after trying at multiple Naturals stores.

 However, Most of the consumers perception is positive and

they are wow ’ed by absolutely natural & fresh fruit ice creams.

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 CHALLENGES FACED BY THE BRAND - NATURALS

 In 1993, an income tax query turned out to be a big blow, incurring

a huge loss as Kamath was not educated on taxation policies. They
had to give out five franchises of the business.

 One of the key store member/staff decided to quit Naturals and

start his own ice cream unit in the same locality.

 Growing competition and changing times led to heavy investments

on developing robust supply chain, new technologies like ERP
systems and bringing uniformity in operations and experience
across all stores.

 Naturals had to change the look and feel of the business when it
saw an increase in the number of millennial customers.

 The 2017 rebranding effort, which established the ‘Taste the

Original’ tagline, was aimed at setting it apart from me-too brands
popping up.

 Covid 19 impact - Lockdowns in many parts of the country had

wiped out 35-40 percent of peak-summer season sales.

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CONSUMERS MAGNETISM TOWARDS NATURALS

 No artificial flavoring, colours, or preservatives are used.

 Over the years, Naturals created more than one hundred flavors and,
at any given time, the parlors stock 21 flavors, 65% of which are fruit-
based.

 High quality and Naturals ice creams are artisanal. 

 Naturals products contains the purest and creamiest milk, fresh and
tasty fruits and nuts.

 All time favorites like tender coconut ice cream, Choco bar, King
Cone, Kulfi, mango/watermelon/musk melon ice creams are the
magnetic products to consumers to revisit Naturals

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How do consumers go about making purchase decision?

Problem Information Evaluation of Purchase Post-purchase

recognition search alternatives decision evaluation

Dessert Friends Brands Taste Comparison

Ambience
Family Accessibility of the store Experience
Occasion Celebration

Internet Variety Presentation Value

Hangout
Visit a local Satisfaction
Price Payment
Family time store

Toppings
Factors influencing purchase decisions

45% of consumers worldwide try to avoid artificial

colors, sweeteners and preservatives.
Ingredients
66% of consumers check ingredients labels
20% wants easy to understand info and nutritional
Information facts
Place on the
package For 1/3rd of the consumers color and taste are
crucial for their purchase decision

Ice Creams Only 12% care about calories but 44% try to avoid
fat

Price Color Price of the ice cream is crucial for 53% of

consumers.
Parents buy healthier ones regardless of price.
Calories
and fat Convenience in buying ice-creams is at most
important
Are there hidden touch points to influence consumer decision making?

Product Place Price

Product plays an important role in the decision-making process of buying an ice creams. Taste and Variety
take much precedence. Customers do not mind paying more for great ambience and quick service for in-
store consumption.

Not many customers are willing travel miles for an Ice-cream. Convenience is yet another attribute to
consider that Influence customers. A brand must have more number stores or be able to deliver at
doorsteps.

Price is another attribute that influences purchase decision-making, and customers are willing to pay a
premium for brands which offer healthy and tasty products.
Unique consumption habits that the brand is missing out on

Deliveries Dairy Free Customization

With the advent of affordable refrigerators, many households prefer consuming ice cream in the comfort of
their homes. Factors such as pandemic outbreaks and popularization of food delivery is creating a large
market share for quick and convenient delivery of ice cream.

Veganism is gaining popularity and with the advent of soy-based meats, many are venturing into this trend.
Ice cream is a dairy products and avoided by vegans and those who are lactose intolerant. By venturing into
soy-based ice cream, a huge untapped market could be captured

Traditional ice cream flavors are not cutting it anymore. Foodies and Influencers are gaining popularity with
the growth in internet. By having unique and custom flavors, the brands can attract niche customers who in
turn will influence the market
External influence
Cultural Influences –

 India is a melting pot of various cultures with every state or region has unique and distinct
culture habits. These habits influence the eating preferences of the people as geography
changes.
 Hence local flavours and preferences play key role to develop new flavour innovation strategy.
This adds to the Natural’s advantage strategically as their business model is built around the
same rawness of local flavours.

 Most of the people interviewed relate the experience of having ice-cream at Naturals store with
a way to spend time with family / elders / friends.
 Also with feeling of having a dessert or sweet after the food. To some extent a nostalgic feeling
of having sweet after food.
 The time spent together by joint families is one of the noticeable pattern.
Suggestions

Q: Is convenience a factor influencing Ice-cream purchases?

A: Yes, Not many are willing to go miles to find their favorite Ice-cream. Most survey/interview respondent
preferred availability in their locality or deliverable to them.

Suggestion: To address the convenience factor of customers Natural have the options of opening more stores,
promoting online purchase and delivery, make their products available at grocery stores, food aggregators and
partnering with restaurants – expand into B2B segment.

Q : Would customers prefer consuming healthy ice-cream (Immunity boosting variants, low sugar, plant based,
high protein options) ?

A : The latest health trend is undoubtedly a response to consumer demand, with a vast number of consumers
committing to leading healthier and cleaner lifestyles. There’s a definite shift occurring in the industry that’s
seeing many leading brands experimenting with new, healthier recipes, while also working towards keeping the
traditional, decadent taste intact. This affords consumers the best of both worlds – healthy ice creams that still
taste delicious.

Suggestion : To cater to customer segments like senior citizens, health-conscious consumers, athletes/sports
person, parents who prefer healthy frozen treats for their children and with the outbreak of COVID, Naturals
can work towards producing different health-based variants to their ice-cream range offering. Variants like
sugar free, calorie free and other immune boosting variants like ginger honey, haldi etc can be introduced by
still maintaining the traditional ice-cream taste to serve health-conscious consumer demand.
Suggestions

Q: Is there any missing consumer behaviour which is not targeted by brand?

A: Yes. Impulse buying behaviour of consumers are not targeted by Naturals. Most of the respondents in interviews
opted to “Plan” their visit to spend time with family and loved ones.

Suggestion: Tie up with grocery & food aggregators (Big basket, Swiggy, Dunzo etc) with their 10 min to 20 min
delivery strategy and cash on the impulse buying behaviour.

Q: Is there any market available which is missed by the brand?

A: Yes. The overseas market.

Suggestion: Natural's brand relates highly with traditional values & habits of joint families. They should target the
Indian diaspora as a gateway to enter the overseas market.

Q: Is Naturals recognized brand and has far reach customers?

A: No, Still many people don't know about Naturals as they don't do much promotions and only recently, they
had one celebrity endorsements. Also, due to the presence of few outlets in each city far reach of customers is not
achieved due to which Naturals is losing on possible opportunities to increase revenues.

Suggestion: To address far reach to many uncovered customers Naturals can increase the franchise outlets and
celebrity endorsements, Naturals will become more recognizable brand and can contribute to the branding of
Naturals. Naturals for a long time has only relied on word-of-mouth marketing and this in current times is not really
beneficial. Traditionally naturals has spent only 5% of their revenue towards marketing. Naturals should engage
more on digital media content by producing videos and engaging influencers to gain customers on the social media
front
Interview and Survey details

Factors influencing your ice cream purchase or choice. Person 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8
Ingredients of the product? Y Y Y Y N Y Y Y
Information(calories, green/red dot) on the package? Y Y Y Y N N Y N
Color and taste? Y Y Y Y Y Y Y Y
Price of the product? Y Y Y N Y N Y Y
Place of purchase? (Superstore, brand outlet, nearest
place) N Y N N Y Y Y Y
Influence of Promotions on your choice of ice cream? N N N N Y Y N N
Taste, Taste,
Taste, variety, Taste, Taste, Taste, Family Taste,
Do you like Naturals Ice Cream, if yes, Why? If not, Why? variety Price Variety Price Price packs Variety Taste

 Interviews Product Price Place Promotions Favorite brand(s)

Like to try ones shown Dairy day, Amul,
During summer Value for money Nearest shops in advertisements Dairy day
Flavors: Vanilla, Strawberry Preferance is taste,
(light flavors) Supermarkets cost and convenience
Person 1 Don’t like to go in search of
Pista - don’t like the taste a particular brand
Chocalate - Bitter
Butterscotch - Sweet
Taste, varieties Value for money Nearest shop Word of mouth Naturals
           
Occational/celebrations
Basic flavors, light and less Like to try, if it Corner house,
sweet Depends on the product Nearest shops/Deliverable differentiates itself Naturals
Available in most
Person 2
Sweet is optimum, fruit based Nominal wellknown places Word of mouth  
Not artificial additives Value for money      
You can have more, because Serves family and Promotions might
of optimum taste relatives Serves young populations increase sales Naturals
           
Interview and Survey details

Factors that could attract the customer Person 1 Person 2 Person 3 Person 4 Person 5 Person 6

Delivery availability Y N Y/N Y Y N

Plant based ice cream N Y Y Y N Y

Range of flavors Y Y Y Y N Y

Endorsed by an influencer N N Y N Y N

 Interviews Preference Dietary Restrictions Customization

Delivery due to COVID lock down Not lactose intolerant Would like to try customization

Does not prefer the current packing

when delivered Vegetarian but consumes dairy
Person 1
Restrictions during certain
auspicious days when dairy is not
consumed, would prefer dairy free
products

Would like to have delivery option Not vegan or vegetarian Have a set of preferred flavors

Person 2 Would try out new flavor if its

Would like to try dairy free products popular
Frequently order in food, will
definitely order ice cream is Will prefer dairy free products when Will always prefer traditional
properly packaged in the company of vegan friends flavors
Interview and Survey details
 Interviews Question Product Price Place Promotions Amul Mother dairy B&R Naturals
Q1 Freshly made - - - - - - -
Fresh & no
Q2 preservatives - - - - - - -
Person 1 Q3 - - Friends - - -
Healthy &
Q4 fresh - - - - - - -
On a date or
Q5 - - - - Quick bite Not really with friends With family
 
Q1 - - Get together - - - - -
Natural fruit
Q2 flavors - - - - - - -
Q3 - - - Colleagues - - - -
Person 2 Value for
Q4 Healthy money - - - - - -
Craving for
Sudden craving sweet or ice- With loved With family /
Q5 - - - - for ice-cream cream ones parents
           
Q1 Freshly made - - - - - - -
Home-made
Q2 feel - - - - - - -
Q3 - - Nearby store - - - - -
Free from
Q4 artificial Affordable - - - - - -
Dessert or
sweet after
Person 3 Q5 - - - - In market Any offers Not really food

Amul Mother dairy B&R Havmor Walls Vadilal Nirulas Haagen Dazs Gelato Naturals
Freshness rating 4.5 3 3 4 3 3 3 2 2 8.5
Price perception 3 3.5 8 6 3 2 7 9 9 3.5
 Expanding its reach – Currently Naturals ice cream is operating only out of its exclusive brand outlets so in
order to upgrade its retail strategy and boost sales it can tie up with modern and general trade stores like
supermarkets, grocery stores and online delivery platforms to increase customer reach. Naturals can also tie
up with star hotels and restaurants to increase their brand value (Increase market share through B2B). –
Venkat

 Improve marketing strategies – Naturals for a long time has only relied on word of mouth marketing and this
in current times is not really beneficial. Traditionally naturals has spent only 5% of their revenue towards
marketing. Naturals should engage more on digital media content by producing videos and engaging
influencers to gain customers on the social media front

 Reach Millennials and Gen z population through increase in Naturals franchise outlets - Shiddu

 Impulse buying behaviour – Tie up with food aggregators (big basket, Jio Mart etc) with their 10 and 20 min
delivery strategy, can tap the impulse buying behaviour - Rahul

 Immunity boosting variant, festival related variants (seniors citizens, health conscious) - Sonal