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  1. 1. A PROJECT REPORT ON“CONSUMER SATISFACTION TOWARDSHAVMOR ICE-CREAM IN SURAT CITY”Submitted by:Deladvala Mayur N (18)Gohil Vijay K (31)A Projest Report Submitted in Partial Fulfillment of the Requirements forthe Degree ofMaster of Business Administration [MBA](Year: 2011-2013)S.R. Luthra Institute of ManagementInstitute Code: - 750
  2. 2. DECLARATIONWe hereby declare that the summer project report on “Consumer Satisfactiontowards Havmor Ice-cream in Surat city” is an original piece of work done by us for thefulfilment of the award of degree of Master of Business Administration. And whateverinformation has been taken from any source had been duly acknowledge.We further declare that the personal data and information received from anyrespondent during survey has not been shared with any one and is used for academic purposeonly.Deladvala Mayur NGohil Vijay K
  3. 3. ACKNOWLEDGEMENTFirst of all we greatly thankful to S. R. LUTHRA INSTITUTE OFMANAGEMENT, SURAT which has given us an opportunity to expose us theoreticalknowledge into real practice, in order to carry out project work for our practical completionof an M.B.A. programmed.We also want to thank all faculty members of S. R. Luthra Institute of Managementwho helped us during our project as our project guide.
  4. 4. EXECUTIVE SUMMARYWe have prepared a project report on “Consumer Satisfaction towards Havmor Ice-creamin Surat city”. The introduction of the project studied first, it includes conceptual maters ofunderstanding the consumer satisfaction towards Havmor ice-cream. In this the researchproject effort is applied to find out the satisfaction level of consumer towards Havmor ice-cream in Surat city.After the theoretical part the research has been taken which is descriptive research, for theresearch the sample of 50 respondents is taken. The research is done by of primary datacollection. The primary data are collected with the help of questionnaire.
  5. 5. TABLE OF CONTENTSChapters Particulars Page No.Declaration IIIAcknowledgement IVExecutive Summary VChapter 1 Introduction1.1 Industry Profile 11.2 Company Profile 11Chapter 2 Literature Review 21Chapter 3 Research Methodology3.1 Problem Definition 243.2 Objectives of study 243.3 Sampling Method 243.4 Data collection method 253.5 Analyze tools and technique 253.6 Limitation of Report 26Chapter 4 Data analysis and Interpretation 27Chapter 5 Findings and Conclusions 44Chapter 6 Recommendation 46Bibliography 47Appendix 48
  6. 6. LIST OF TABLESNo. Particulars Page No.1 Table 1: Consumer of Havmor Ice-cream 272 Table 2: Sources of knowledge about Havmor Ice-cream283 Table 3: Frequency about purchasing Havmor Ice-cream294 Table 4: Preference about form of Havmor Ice-cream 305 Table: 5 Flavours of Havmor Ice-cream 316 Table 6: Preference of buying Havmor Ice-cream 327 Table 7: Ranking according to the characteristic ofHavmor Ice-cream338 Table 8: Quality of Havmor Ice-cream 349 Table 9: Rating of Havmor ice-cream in variouscategories3510 Table 10: Includence of flavours 3611 Table 11: Rank of Havmor Ice-cream compare to othersice-cream brand3712 Table 12: Improvement in the field 3813 Table 13: Advice other to buy Havmor Ice-cream 39
  7. 7. LIST OF CHARTSNo. Particulars Page No.1 Consumer of Havmor Ice-cream 272 Sources of knowledge about Havmor Ice-cream 283 Frequency about purchasing Havmor Ice-cream 294 Preference about form of Havmor Ice-cream 305 Flavors of Havmor Ice-cream 316 Preference of buying Havmor Ice-cream 327 Quality of Havmor Ice-cream 348 Includence of flavors 369 Rank of Havmor Ice-cream compare to others ice-creambrand3710 Improvement in the field 3811 Advice other to buy Havmor Ice-cream 39
  8. 8. CHAPTER 1: INTRODUCTION1.1 INDUSTRY PROFILEIntroductionThough India has a low per capita ice cream consumption of 300 ml per annum, the trend isslowly changing due to a number of reasons. DARE explores the dynamics of the business.Indian summers are synonymous with ice creams. Come summers, and you will see a numberof colourful.Pushcarts selling the choicest of ice creams in numerous flavours from the traditional vanillaand chocolate to unusual varieties like Mother Diary‟s Shahi Nazrana. If that doesn‟t baffleyou then the ice cream range definitely would, for example the ice cream range for thechildren would be entirely different from that for the teenagers or for that matter adults. Or,for those who like to have ice cream in peace, there are a number of ice cream parlours thatare opening shop.But did you know that a 100 ml scoop of your favourite ice cream that you ordered maycontain up to 50% air! This makes the business a highly profitable venture to get into –sometimes, the profits can go upto 100%! However,there are several challenges to this business as well.In this story, DARE attempts to find out the dynamicsof the business.The Ice Cream Industry: An OverviewLooking at some industry facts first. In 2007, theglobal market of ice creams was pegged at $61.6 billion in terms of retail value or 15 billionliters in terms of volume. Of this, the Asia-Pacific ice cream market was worth $13 billion interms of retail value and 5,128 million liters in terms of volume. Coming to India, the Indianice cream industry is currently estimated to be worth Rs. 2,000 crores, growing at a rate ofapproximately 12%. RS Sodhi,
  9. 9. Chief General Manager of Gujarat Co-operative Milk Marketing (GCMMF), the makers of„Amul,‟ explains, “The ice cream market in India can be divided into: the branded market andthe grey market. The branded market at present is 100 million liters per annum valued at Rs.800 crores. The grey market consists of small local players and cottage industry players.” In2008-09, in the branded ice cream market, Amul held the number one spot, with a marketshare or 38%, followed by Kwality Walls at 14%, Vadilal at 12% and Mother Diary at 8%.Despite a decent growth rate, the ice cream industry faces the challenge of low per capitaconsumption.Industry at a glanceThe ice cream industry in India is worth Rs. 2,000 croresThe industry can be divided into the branded market and the unbranded market. The brandedmarket at present is 100 million litters per annum valued at Rs. 800 croresIn 2008-09, in the branded ice cream market, Amul held the number one spot, with a marketshare or 38%, followed by Kwality Walls at 14%, Vadilal at 12% and Mother Diary at 8%The per capita consumption of ice cream in India is approximately 300 ml, as against theworld average of 2.3 litters per annumVanilla, Strawberry and Chocolate together constitute approximately 60% of the market.The per capita consumption of ice creams in India is just 300 ml per annum, compared to 22liters in the US, 18 liters in Australia, 14 liters in Sweden. India is a way too far behind evenin terms of the world average per capita ice cream consumption of 2.3 liters per annum. Thiswhen India is a country with hot climate with a young population. Pankaj Chaturvedi,Executive Director of Baskin Robins, explains “Indian cuisine has a huge range of desserts inits mix. Ice cream always competes against these for attention.” Besides desserts, ice creamalso vies for attention with other like foods for example in summers with cold drinks, coffee,juice, etc.
  10. 10. Another trend that is witnessing a change is the seasonal nature of the industry. Having saidthat, the peak season for ice cream still remains the summer months of April-June and dips inthe months of November-February. According to the industry players, this trend especiallyholds true for the North and the Western parts of India. According to Pankaj Chaturvedi,“The variation in sales for Baskin Robins can range from 15–30% from season to off seasondepending on geography and brand.
  11. 11. The Ice Cream BusinessThe ice cream industry has traditionally grown at a healthy rate of12% year-on-year. “The growth in Ice cream industry has beenprimarily due to strengthening of distribution network and coldchain infrastructure. Channels such as Mobile Vending Units havebeen increasing year on year to reach out to a larger set ofconsumers. Besides, consumers also have the choice of trying outvaried product offerings from different brands to keep themexcited,” Paul Thachil, CEO – Dairy & Foods, Mother Dairy Fruit& Vegetable.What exactly is defined as „ice cream‟ under the guidelines? The Prevention of FoodAdulteration (PFA) Rules, 1955 define ice cream as “a frozen product that contains not lessthan 10% milk fat, 3.5% protein, 36.0% total solids, and 0.5% permitted stabilizer andemulsifier.” Players who deviate from these norms tactfully call their product "frozendessert.” However, it is illegal to sell “ice cream” which has contents below these specifiedstandards.The basic steps in the manufacturing of ice cream are generally first blending the ingredients,pasteurization, and homogenization, aging the mix, freezing, and hardening. Now, during thehardening process, the ice cream mixture is incorporated with air. This is done to make theproduct „light‟ and „creamy‟. This is necessary as without air, ice cream would be like frozenice. Now the ice cream can contain a considerable quantity of air, even up to half of itsvolume. This perhaps makes ice cream a business with high profit margin.Manish Vithalani of Space Dotz informs, “A ice cream mix (consisting of milk, emulsifier,sugar and so on) costs about Rs. 60-65 a litter. And in one liter you can add up to one litre ofair. Therefore, per liter the mix would cost you approximately Rs 32. If you take an 150 mlcup, you can make 13 cups of ice cream from one litter of mixture. Calculating on that basis,the per cup costing comes to about Rs 5. Now add to that Rs 5 worth of packaging cost,electricity, labour, transportation, advertisement cost etc. It comes to approximately Rs 10 percup.”
  12. 12. Depending on the variety, the profit margin therefore can go up to even 100%. While forbigger players, the distribution and advertising costs eats into the profit margins, for smallerplayers, it is the volumes that matter.Besides selling their products through kiosks, parlors and push carts, a significant part of therevenue comes from corporate sales. Says Pankaj Chaturvedi, “About 55% of our business iscontributed by exclusive ice cream parlors and kiosks while 30% is from corporate or foodservice (as we categorize it) sales. The rest comes in from retail and exports.” A chef at aprominent five star Delhi hotel tells us their banquet section itself buys 6 gallons of ice creamfrom manufacturers on a daily basis. The demand, he informs, goes up to 10 gallons duringpeak season.What is the cost of setting up a small scale ice cream manufacturing unit? Manish Vithalanisays, “The cost for setting up a small scale ice cream plant could come to approximately Rs.10 lakh, including the cost of a ice cream plant, labor (3-4), storage freezers, and so on. Thisprice is not including the land cost.” Of late, a number of players who have entered thesegment are playing on innovative aspects, for example, natural flavors made from fruits.Some players like Mumbai-based Space Dotz are also coming up with newer technology.Paul Thachil• The ice cream industry growth hasbeen primarily due to strengthening ofdistribution network and cold chaininfrastructure. Channels such as mobilevending units have been increasingyear-on-year• Paul Thachil (CEO – Dairy &Foods, Mother Dairy Fruit & Vegetable)
  13. 13. According to Dilip Jagad of Space Dotz,“Unlike the normal ice cream, our product comes in the form of balls. Besides, the producthas no air content and uses cryogenic technology, used in rocket science.”Another noteworthy innovation was the pro-biotic and low fat ice cream bought into themarket by Amul.The ChallengesThere are several challenges that affect the industry adversely. As mentioned earlier, theindustry players not only face competition from their competitors, but also from other likefoods. Though changing, consumers still consider ice cream as a dessert and a side item.Sharing his experience, Sidharth Jaiswal of Joos, a juice bar chain, says, “We had introducedice creams on an experimental basis in our juice outlets in Ahmedabad. We observed thatconsumers ordered ice creams as a side item or only when they were accompanied bychildren.We eventually decided not to move ahead with it.” Moreover, of the ice cream consumptionin India, nearly 60% is accounted to by three flavours of vanilla, strawberry and chocolate.And to be on the safer side, major players tend play around these flavours only. For bigplayers, regional competition from smaller players is another major issue.Another major problem faced by the industry players, especially while expansion, is poorinfrastructure such lack of cold storage and in case of rural penetration, even erratic powersupply becomes an issue. This is especially true for big players. Manish Vithalani says,“Besides the presence of other players, another hurdle is the the high rent charged for floorspace, especially in malls. This also becomes a problem when we try to expand.”
  14. 14. Ice-creamIntroductionThe ice cream market growth picked up after de-reservation of the sector in 1997. Of the totalsize of Rs 15-16bn, around 30-32% is in the hands oforganized sector valued at Rs 4.9bn, rest all is with theunorganized sector. Among the major players in thisindustry Hindustan Lever has a market share of around50%, represented mainly by Kwality Walls brand. Amulwith an estimated market share of 35% is rapidly gainingmarket share and lastly Vadilal is the player in the nationalmarket with 8-9% of the market share.Production areaIn rural areas, kulfis / ice creams made by small / cottage industry are popular. The marketfor organized sector is restricted to large metropolitan cities. In small towns and villages,there are thousands of small players who produce ice- creams / kulfis in their home backyardand cater to the local market. Almost 40% of the ice creams sold in the country are consumedin the western region with Mumbai being the main market, followed by 30% in the north and20% in the south.Growth promotional activitiesThe Indian government adopted the policy of liberalization regarding the ice creamindustry also and it is since then that this sector has shown an annual growth ranging from15- 20% per annum for last 1- 2 year. Presently in 1999- 00 it is estimated at worth of Rs15-16bn. This growth rate is expected to continue for another next 2- 3 years because of lowerbaseTypesIndian Ice Cream market can be segmented in three different ways, namely on the basis offlavors; on the basis of stock keeping units / packaging and on the basis of consumersegments. On the basis of flavors the market today has a number of flavors like vanilla,strawberry, chocolate, mango, butterscotch a number of fruit flavors, dry fruit flavorstraditional flavors like Kesar- Pista, Kaju- Draksh etc.
  15. 15. The market is totally dominated by Vanilla, Strawberry and chocolate, which togetheraccount for more than 70% of the market followed by butterscotch and other fruit flavors.Ice-cream industry at a Glance• Estimated worth USD XX mn in 2008, expected to grow to USD YY mn in2009• North and west account for a% of total sales• High profit margins ranging between b-c%Market• Drivers: Opportunity to capitalize on low consumption levels; growinginstitutional sales• Challenges: Competition with the unorganised sector on price andquality, and lack of welldeveloped cold chain facilitiesDrivers & Challenges• Large investments in advertising• Diversification of product portfolio targeting specific consumer segments• Partnerships and franchises pursued to boost distribution• Falling costs of raw materials offsetting rising milk and sugar pricesTrends• A brand is the market leader• B and C brand are other strong players• The premium segment is dominated by UCompetition
  16. 16. Market OverviewThe industry is growing steadily with the northern and western regions accounting forthe largest consumption•Size and Growth Worth USD XX mn in 2008 Growing at a % p.a. in 2005-2008 Forecast to increase by b% to reach USD YY mn in 2009•Characteristics Northern and western regions together account for c% of total market consumption Profit margins range from u% to v% depending on the product segment W % of ice cream sales occur during the summer months of April-June X % of sales is through street vendors Vanilla is the highest selling flavour and together with strawberry and chocolate itaccounts for y% of the market
  17. 17. Drivers & ChallengesKey Trends
  18. 18. 1.2 COMPANY PROFILEHistorySmall Beginning, Big Vision, Great Ambitions. Havmor Ice Cream began its branded life in1944 in Karachi, in undivided India. By 1947, it was a popular local brand there.But in 1947, in the wake of the partition, its founder Satish Chona had to join the exodus intoIndia, with virtually no moveable assets. Searching for a new turf, he tried out Dehra Dun andIndore, and finally, settled down in Ahmedabad.No, it was not a case of “Brand Relocation”, or anything else as fanciful. He had to start theventure from scratch again. In fact, he had to begin from a hand-cart at the AhmedabadRailway Station, churning out the Ice Cream manually.He called this fledgling brand Havmor - a neologism for Have More - which meant thecustomer got more value for money, and more taste to relish from his Ice Creams.Perhaps he didnt know it then, but he had laid the foundation for one of Western Indias mostenduring market legends.And good quality, like good character, wins over the situation sooner or later.Today, Havmor Ice Cream is a delicious facet of Western Indias daily life. It reacheshundreds of thousands of consumers through 100 main outlets and 20000 plus dealers.Thats a very very long way from a hand-cart.Good Old Values, New Generation Leadership
  19. 19. Mr. Pradeep Chona, son of Late Shri Satish Chona, today heads the Havmor conglomerate.He has continued his fathers quality obsession and streak of innovation.To his fathers motto - Achchai, Sachchai, Safai. He added a suffix - “Navu Su Che?”Now that is quite simple, but a powerful reason for taste innovation. In fact, that is not even acorporate axiom. It is the question regular Havmor customers ask at frequent intervals.Because they expect Havmor to keep pleasing their palates in new ways, always.Mr. Pradeep Chona set off a series of Changes at Havmor - in technology, in quality &hygiene standards, in management, in HRD and in the overall corporate environment. Thisre-engineering was complemented by capacity expansions and a flurry of promotionalactivities, to maintain the companys market presence intact in competitive times...Ankit Chona, Mr.Pradeep Chonas son also joined the business after completing hisgraduation from the United States. He has been a driving force in expanding the Restaurantdivision as well as popularizing the Company owned Ice Cream & Fast Food parlours knownas HAV FUNN. He has brought a lot of innovation and standardization in the business suchas SAP, GPS System in all vehicles, metal detectors, camera surveillance system empoweredto control from anywhere in the world and many more.ProfileOur successful business strategy is to provide a good taste. Post its foundation in 1944,Havmor has progressed to become a blue chip Ice Cream brand of Western India, placingitself one of the top three in sales. Through the years we have supplied a varied range ofeatables from Ice Creams like Candies, Topo Cones, Kulfis, to snacks like Samosas, ChanaPuri, Jumbo Grilled along with a range of international cuisines like Punjabi, Mughlai,Chinese and Continental.Based in Ahmedabad we have a total of 100 parlours and restaurants spread throughoutWestern India and a dealership of 20000+ covering over 35% of the market share. Thesenumbers indicate nothing more than proving that Havmor has become Gujarat‟s favourite icecream brand today.
  20. 20. Quality policiesAt Havmor, our customers matter the most and our core strategy revolves aroundthem.We believe in caring for our customers and achieve customer satisfaction byestablishing and maintaining an effective Quality Management System.It is our prime objective to ensure consistency in quality of products and services.Continuous training is an integral part of the management at Havmor, which ensuresconstant improvement in individual and team performance.StandardsInnovation is a way of life at Havmor. And we strive hard to achieve this.Our motto is ensuring customer satisfaction and complete value for money.We take our responsibilities seriously and everyone, from the individual to thecompany, aspires to achieve a higher level of excellence, in our products, as well asour services.ISO 9001:2008 CertificationOur standards mean the world to us.Havmor Ice Creams and relatedproducts are manufactured in a state-of-the-art plant at Naroda, Ahmedabad.Complete hygiene is a key feature inour world-class plant‟s processingfacilities. And the packaging at ourplants conforms to international norms.
  21. 21. General InformationBrand name HavmorType of Organisation Private Limited CompanyEstablishment Year 1944General Manager Mr. Pradeep Chona.Office addressHavmor food Pvt. Ltd.,Relief Road,Ahmedabad.Factory AddressHavmor food Pvt. Ltd.,Asarva Road,Ahmedabad.Competitors Amul, Vadilal, Kwality walls, Dairy den. Etc.No. parlours & Restaurant 13Outlet centersNavrangpura, Satellite, Panchavati, Reliefroad.Level of Expand InternationalHead quarter AhmedabadHavmor parlour Satellite, Vastrapur, Arjun complex
  22. 22. Product rangeHavmor company produces various and different and delicious products. This is the onlycompany that produces maximum products. CandiesKala khatta popLolly popOrange barKacchi keriDouble hitMini chocobarKaju candyClassic chocobar3-D barRaspberry dollyMango dollyChowpaty kulfiZulu bar Small Cups (50 ml)VanillaRoyal gulab Big Cups (100ml)Royal gulabVanilla strawberryChocolate bonanzaChips kaju drakashChoco chipsButter scotchKaju anjirKesar pistaRaj bhog.
  23. 23.  Cones (120 ml)Ringo bingsChoco vanillaStrawberryChocolateButter scotch- Raja rani NoveltiesMalai kufiCut rollBadam pista kulfiRaja rani roll cutSandwich ice creamFifty fifty roll cutCassata cutSuper sunda bon-bonVolcano. Ice cream sodaOrangeLime Family and party packsRoyal gulabVanilla kajuDrakshButter scotchChocolate chipsFresh strawberryBonanza bananzaSwish cakeKaju anjirKesar pistaLonavliAlmond carnivalRoasted-badam-anjir.
  24. 24. Major Competitors’ profileKwality WallsKwality Walls is a major producerand distributor of ice cream and otherdessert products in India, Pakistan, SriLanka, Malaysia and Singapore. It is acompany of Hindustan Lever Limited,the arm of Unilever in India, and is anextension of the Wallsice cream brandof Great Britain.Kwality, the original Indian company,was founded in 1956, and was the firstin the region to import machinery forthe mass production and sale of icecream on a commercial scale. In 1995,in view of the growth potential of thefrozen confections market, Kwalityentered into an agreement with Lever,and has since been known by itscurrent umbrella name. At the sametime, other brands acquired byHindustan Lever, such as Gaylord-Milkfood, were phased out in favourof promoting the Kwality Wallsbrand. This arrangement allows forlocal production and sale of Wallsproducts that are popular in its homemarket, such as the Cornetto cone, andto create local variations on others, such as the Feast Jaljeera Blast.Kwality WallsType SubsidiaryIndustry FoodFounded 1956Headquarters Mumbai, IndiaProducts Ice creamParent Hindustan Lever LimitedWebsite Official Website
  25. 25. VadilalVadilal BSE: 519156(Vadilal Industries Limited) is rankedas the second largest producer of icecream in India.[6]It has the largestrange of ice-creams in the country,with more than 150 flavors. Thegroups principal activity is tomanufacture ice creams, frozendesserts and process processedfood products. The company is oneof the largest processed food playersin India with major exports of frozenvegetables, mango pulp, mango milkshake, ready-to-eat snacks, curriesand breads. Vadilal hasapproximately 150 ‘Happinezz’branded stores across Gujarat,Rajasthan and Uttar Pradesh. It hasalso forayed into the world of realestate, chemicals and forex.The Managing Director [8]of VadilalIndustries Ltd., Mr. Rajesh R. Gandhiis the son of the founder Chairman,Mr. Ramchandra R. Gandhi. TheVadilal Company became an officialcorporate entity in the year 1970, butit traces its origin as far back as1907. The company aims to be anIndian MNC in ice creams and whileproviding products and services at anaffordable price without any compromise on quality. Its major success factor lies in its abilityto cater to different market segment through varied product ranges.Vadilal Industries LimitedTypePublic Listed CompanyBSE: 519156Industry FoodFounded 1907[1]Headquarters Ahmedabad, India[2][3]Key peopleRamchandrabhai Gandhi,(Chairman),Rajesh Gandhi Managing Director[4]Products Ice creamRevenue190.662 crore (US$42.52million)[5]Parent Vadilal GroupWebsite Official Website
  26. 26. AMULThe Gujarat Cooperative milk MarketingFederation Ltd, Anand (GCMMF) is thelargest food products marketingorganisation of India. It is the apexorganization of the Dairy Cooperatives ofGujarat. This State has been a pioneer inorganizing dairy cooperatives and oursuccess has not only been emulated inIndia but serves as a model for rest of theWorld. Over the last five and a halfdecades, Dairy Cooperatives in Gujarathave created an economic network thatlinks more than 2.8 million village milkproducers with millions of consumers inIndia and abroad through a cooperativesystem that includes 13,141 Village DairyCooperative Societies (VDCS) at thevillage level, affiliated to 13 DistrictCooperative Milk Producers’ Unions atthe District level and GCMMF at the Statelevel. These cooperatives collect on anaverage 7.5 million litres of milk per dayfrom their producer members, more than70% of whom are small, marginal farmersand landless labourers and include asizeable population of tribal folk andpeople belonging to the scheduledcastes.The turnover of GCMMF (AMUL) during2008-09 was Rs. 67.11 billion. It markets the products, produced by the district milk unions in 30 dairyplants, under the renowned AMUL brand name. The combined processing capacity of these plants is11.6 million litres per day, with four dairy plants having processing capacity in excess of 1 millionLitres per day. The farmers of Gujarat own the largest state of the art dairy plant in Asia – MotherDairy, Gandhinagar, Gujarat – which can handle 2.5 million litres of milk per day and process 100MTs of milk powder daily. During the last year, 3.1 billion litres of milk was collected by MemberUnions of GCMMF. Huge capacities for milk drying, product manufacture and cattle feed manufactureAmul (ANAND MILK UNION LIMITED)Type CooperativeIndustry DairyFounded 1946Headquarters Anand, IndiaKey peopleChairman, Kaira DistrictCooperative Milk Producers UnionLimited. (KDCMPUL)Products See complete products listing.Revenue $2.15 billion (2010-11)Employees735 employees of Marketing Arm.However, real pool consist of2.8 million milk producersWebsite
  27. 27. have been installed. All its products are manufactured under the most hygienic conditions. All dairyplants of the unions are ISO 9001-2000, ISO 22000 and HACCP certified. GCMMF (AMUL)’s TotalQuality Management ensures the quality of products right from the starting point (milk producer)through the value chain until it reaches the consumer.Ever since the movement was launched fifty-five years ago, Gujarat’s Dairy Cooperatives havebrought about a significant social and economic change to our rural people. The Dairy Cooperativeshave helped in ending the exploitation of farmers and demonstrated that when our rural producersbenefit, the community and nation benefits as well.The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a businessenterprise. It is an institution created by the milk producers themselves to primarily safeguard theirinterest economically, socially as well as democratically. Business houses create profit in order todistribute it to the shareholders. In the case of GCMMF the surplus is ploughed back to farmersthrough the District Unions as well as the village societies. This circulation of capital with valueaddition within the structure not only benefits the final beneficiary – the farmer – but eventuallycontributes to the development of the village community. This is the most significant contribution theAmul Model cooperatives has made in building the Nation.
  28. 28. CHAPTER 2: LITERATURE REVIEWExecutive SummaryIn August 2009, ice cream maker Havmor decided to implement ERP system across its headoffice, factory, and the state-of-the-art kitchen and three locations in Ahmedabad. With a16,000 plus dealer network across Gujarat, Maharashtra, and Rajasthan, the company setFebruary 2010 as the deadline for the rollout. The short implementation window was setkeeping in mind the onset of the ice-cream season in March 2010.The factory of Havmor at Ahmedabad manufactures 100-odd flavors of ice cream in multiplepacking options, thereby swelling raw material inventory, SKUs, and related documentation,recalls Rekha Chona, Director, Havmor Ice Cream.“Our procurements, storages, productions,delivery points, plant maintenance, customer deep-freeze maintenance & services arescattered geographically,” she says. The legacy system catered the need of the individualdepartment but the drawbacks were data redundancy, lack of integration of the system andwastage of time in sourcing and collating data. ERP was the need of the hour.THE SOUR TASTEIn its two earlier attempts to implement ERP, Havmor was unsuccessful as it had selected acustomized software the first time and a non-standard ERP the second time, primarily due tothe lower cost of the product and implementation. Project „Mission Kamyaab‟ was started toreverse the failures of the previous two attempts.The factory of Havmor at Ahmedabad manufactures 100-odd flavors of ice cream inmultiple packing options, thereby swelling raw material inventory, SKUs, and relateddocumentation, recalls Rekha Chona, Director, Havmor Ice Cream.“Our procurements,storages, productions, delivery points, plant maintenance, customer deep-freezemaintenance & services are scattered geographically,”she says. The legacy system cateredthe need of the individual department but the drawbacks were data redundancy, lack ofintegration of the system and wastage of time in sourcing and collating data. ERP was theneed of the hour.
  29. 29. The firm approached Innova Systems, its Ahmedabad-based system integrator for the past sixyears. Innova understood the customer requirements and suggested SAP and even interactedwith the local SAP team who in turn studied the project requirements two to three times.“Earlier, we could not afford SAP as it was a costly proposition for a company of our size.However, SAP‟s cost effective solution for SMEs changed the dynamics,” says Chona.THE MIXED FLAVORSince Innova didn‟t have expertise on ERP implementation, it went back to SAP for help,which in turn suggested CMC as the latter had executed similar projects in FMCG vertical,including a wafer manufacturing company. “After joint presentations at the customer end, wegot an order of ERP software - SAP ECC 6.0 and licensing,” says Dave, CEO, InnovaSystems (India).“Looking at the previous two failed attempts and limited time in hand, we did not want toexperiment at the site of a loyal customer,” says Dave. Experimenting and probably failingwould have also meant losing the related Rs 1 crore plus hardware purchase order for InnovaSystems. The trade off was outsourcing the ERP implementation part worth Rs 34 lakh toCMC.Innova and CMC embarked on this project at Havmor in September ‟09 with a plan tocomplete it by Feb‟10. Havmor management realized that this was an ambitious initiativecutting across all the departments and would result in major changes in the job functions.THE RIGHT INGREDIENTSWith SAP implementation, Havmor also needed hardware refresh in terms of servers,storage, and networking gear at its data enter. Also, there was a need for 100 plus PCs(desktops and laptops). Hardware supply and system integration has been core expertise ofInnova Systems and hence they bagged this project, which was over Rs 1 crore includinghardware, its integration, and software licenses. “We supplied all hardware, implementationand SAP configuration issues like clustering. Due to SAP, the associated hardware must benew and also new purchases were done due to new staff at Havmor,”says Dave. The entireactive and passive networking infrastructure including switches, routers and structuredcabling was also executed by Innova.
  30. 30. Innova Systems would soon connect the locations of Havmor through Tulip for WAN. “Wedid contemplate open source than Microsoft during the project as it means cost savings forcustomer. But Havmor did not have dedicated staff which is needed for open sourcedeployments,” says Dave. Innova supplied manpower to CMC to ensure speedy work andmore co-ordination between teams to meet the deadline.“As a system integrator, Innova Systems tried to address our pain areas, from identifyingSAP and their SME rates, partner collaboration, and hardware integration. They alsosuggested the project financing option,” said Chona.Havmor Ice Cream looking to double its presence@Franchise India: Ahmedabad-based chain of ice cream parlours, Havmor Ice Cream,plans to double its presence in India in next one year. Currently, it is operating through 60outlets across the various cities of Gujarat, through a mix of company owned and franchisedoutlets.The company is targeting few more cities of Gujarat like Surat, Rajkot, Jamnagar etc. tomark its presence across the nation. Besides this, the company is also looking at expandingin countries like US and Dubai through franchising.(Rahul Gupta and Yogesh Gupta, 2010).
  31. 31. CHAPTER 3: RESEARCH METHODOLOGYPROBLEM DEFINITIONCustomer Satisfaction towards Havmor Ice-cream in Surat City.OBJECTIVE OF THE STUDYTo find out the Satisfaction level towards Havmor Ice-cream in Surat City.To find out customers favourite flavour of Havmor ice-cream.To find out the how the customer rank according to various characteristic of Havmorice-cream.Where they rank Havmor Ice-cream as compared to leading market Ice-creamcompanies.RESEARCH DESIGNIn this project, the Descriptive research design has been used in which the data arecollected by cross sectional research design. As the study is done to know the Satisfactionof customer towards Havmor ice-cream only and as it only describes the level ofawareness and not explains anything the study is descriptive study.NON PROBABILITY SAMPLINGNon probability convenience sampling design is used in this project. On probability isthat sampling procedure which does not afford any basis for estimating the probabilitythat each item in the population has of being included in the samples.RESEARCH INSTRUMENTQuestionnaire is used for the purpose of data collection as the research instrument.
  32. 32. SAMPLE SIZEThe sample size taken for the survey purpose is of 50 people from Surat city.Pre-testing:Before the final survey, 5 people were surveyed first to check the validity of thequestionnaire.Execution of sampling process:Data are collected from the people of Surat city through personal interview with them.DATA COLLECTION:For the preparation of the project both types of data are used.Primary DataSecondary DataPrimary Data:Primary data are those data which are collected by the researcher for the first time for his use.These data are pure and therefore more reliable. Primary data gives the original picture of thestudy or situation for which they are collected.In this project, the primary data are collected through the use of survey method. In the surveythe respondents were personally interviewed for data collection.Secondary DataSecondary data are those data which are once collected by any other person in past for hispurpose and now being used by the researcher for his purpose. These data are less reliablecompared to primary data because these data may be obsolete with the passing of time andmay have bias information.
  33. 33. In this project, most of the secondary data are collected from internet. Some data regardingthe company were obtained with the help of the company guide.Geographical Area:Surat city is selected to study the Satisfaction of consumer towards Havmor ice-cream.LIMITATIONS OF THE RESEARCHDuring the project following hurdles are faced. Probability sampling was not used therefore the results cannot be generalized to thepopulation. As many of the respondents were not that much familiar with English, I needed toexplain each and every question in Guajarati or Hindi to them. Research only conducted within limited geographical area only which is Surat.
  34. 34. CHAPTER-4 DATA ANALYSIS AND INTERPRETATIONAre you consumer of Havmor Ice-cream?Yes 100No 0Table 1: Consumer of Havmor Ice-creamInterpretation:Here it‟s all respondents are consumer of Havmor Ice-cream so that getting information aboutHavmor ice-cream and its quality become easier as every respondent knows the Havmor ice-cream and the consumer of Havmor Ice-cream.42.442.642.84343.243.443.643.84444.2Newspapers RadioChart 1:Consumer of Havmor Ice-creamFrequency
  35. 35. How you come to know about Havmor ice-cream?Frequency Percentage ( % )Newspapers 18 35.77Radio 17 34.95Hoardings 3 0.05Family or Friends 8 22.76Others 4 0.02Table 2: Sources of knowledge about Havmor Ice-creamInterpretation:Here from the diagram, it‟s clearly represents that Newspapers and Radio is most prominentsource for the awareness of Havmor Ice-ream. Then comes Family or friends which influencethe behavior of buying. Some respondents suggest T.V. also for the knowledge about HavmorIce-cream.NewspapersRadioHoardingsFamily orFriendsOthersFrequency 44 43 6 28 2Percentage ( % ) 35.77 34.95 0.05 22.76 0.0205101520253035404550Chart 2: Sources of awareness aboutHavmor Ice-creamFrequencyPercentage ( % )
  36. 36. How frequently you purchase Havmor ice-cream?Table 3: Frequency about purchasing Havmor Ice-creamInterpretation:The graph mentioning that majority of respondents purchase ice-cream once a week thatshows the at the medium flow of consumption of Havmor Ice-cream. If there was morefrequency in “More than once a week” then it would have been better position for thecompany to sell out ice-cream in market. There are also respondents who buy the HavmorIce-cream on special occasion only.Once a weekMore than oncea weekOnce a monthOn a specialoccasionFrequency 48 33 10 90102030405060Chart 3: Frequency of purchasing Havmor Ice-creamFrequencyOnce a week 48More than once a week 33Once a month 10On a special occasion 09
  37. 37. In what form do you prefer to have Ice-cream?Frequency Percentage ( % )Candy 57 20.28Cup 63 22.42Cone 44 15.66Family pack 55 19.57Roll Cuts 62 22.06Table 4: Preference about form of Havmor Ice-creamInterpretation:As you can see in the chart, there are somewhat equal amount of responses about forms ofHavmor Ice-cream. It shows the consumer are happy with the all kind of forms Havmorproviding for their consumers. However if look at the exact figure, the cup and Roll-cutshaving most preference of consumer according to form of Havmor Ice-cream.Candy Cup ConeFamilypackRoll CutsFrequency 57 63 44 55 62Percentage ( % ) 20.28 22.42 15.66 19.57 22.06010203040506070Chart 4: Prefrence about forms of Havmor Ice-creamFrequencyPercentage ( % )
  38. 38. Which flavours of Ice-cream you buy most?Frequency Percentage ( % )Vanilla 47 15.31Strawberry 62 20.20Chocolate chips 39 12.70American Dry Fruits 54 17.59Pina chips 47 15.31Kesar pista 46 14.98Any other 12 00.04Table: 5 Flavours of Havmor Ice-creamInterpretation:Most of the respondents prefer Strawberry as their favorite flavor. Then comes American dryfruits, Vanilla, Pina chips, Kesar pista respectively. In other section, consumer havesuggested in their favorite flavor as Rajbhog, Green pista, Afghani Dry-fruit, Kaju kismis,Badam Kaju Pista, Black current etc.VanillaStrawberryChocolate chipsAmerican DryFruitsPinachipsKesarpistaAnyotherFrequency 47 62 39 54 47 46 12Percentage ( % ) 15.31 20.2 12.7 17.59 15.31 14.98 0.04010203040506070Chart 5: Flavors of Havmor Ice-creamFrequencyPercentage ( % )
  39. 39. Normally from where you usually buy Havmor Ice-cream?Ice-cream parlours 30Restaurant 47Local Ice-cream shops 20others 03Table 6: Preference of buying Havmor Ice-creamInterpretation:As we can see from this diagram most of the respondents prefer restaurant while purchasingthe Havmor Ice-cream. 30 respondents like to purchase Havmor ice-cream from the officialHavmor outlet and other prefer to buy ice-cream from Railway Station and Bus-station.IcrecreamparlorsRestaurentLocalIcecreamshopsothersFrequency 30 47 20 301020304050Chart 6: Preference of buying HavmorIce-creamFrequency
  40. 40. What rank you would like to give according to followingcharacteristic of Havmor Ice-cream?1 2 3 4 5Price 29 44 10 4 13Availability 28 31 17 16 8Quality 32 6 38 15 9Flavours 8 10 23 45 14Offers 4 7 12 22 55Table 7: Ranking according to the characteristic of Havmor Ice-creamInterpretation:By analyzing the table of content the most least important factor that consumer thinks it isQuality. The company should have to generate awareness programme about quality ofHavmor ice-cream. The most important factor the consumer thinks it is Offers. Havmorcomes with a very innovative offers range so it can be the one of the reason for mostdesirable characteristic according to the consumers. And price becomes 2ndmost importantfactor for consumers.
  41. 41. What do you think about quality of Havmor Ice-cream?Excellent 38Good 50Neutral 10Bad 2Very bad 0Table 8: Quality of Havmor Ice-creamInterpretation:Here the effort is made that how the customer is satisfy with the quality of Havmor ice-cream, this help to analyze that test and quality of Havmor Ice-cream products with theconsumers tests and preferences. Here, majority of respondents feels the quality of Havmorice-cream is: Good”. Its positive direction for the company to strive their efforts in improvingthe more quality which can highly satisfy for consumers.Excellent Good Neutral Bad Very badFrequency 38 50 10 2 00102030405060Chart 7: Quality about HavmorIce-creamFrequency
  42. 42. How would you rate the Havmor ice-cream in following categories?CharacteristicsMost Fav._____________Less Fav.1 2 3 4 5Value for money 85 10 5 - -Sweetness 12 69 5 13 1Packaging 25 37 17 14 7Customer services 31 21 30 13 4Advertisement 35 16 37 5 7Verities 44 29 15 3 9Table 9: Rating of Havmor ice-cream in various categoriesInterpretation:1. Value for money: The value for money is most favorable category for consumer. Socompany should have to come with a economic schemes which can attract consumer.2. Sweetness: Sweetens falls in 2ndrank as favourable only for consumers. Thesweetness having no major problem for consumers.3. Packaging: Packaging includes shape, design , durability of ice-cream which is 2ndmost favorable for consumers.4. Customer services: Customer service include the after selling service which caninclude hearing the matter regarding to the quality of product or any other quarries ofconsumers which is average favorable for consumers.5. Advertisement: Advertisement having average favorability for consumers.6. Verities: Consumers wants to include more verities in the product of Havmor ice-cream so it is most favorable variable for Consumers.
  43. 43. Would you like to include any flavours in Havmor ice-cream?Yes 19No 82Table 10: Includence of flavoursInterpretation:This helps to company include more verities in its product range. However most of therespondents respond “No” but some of the respondents (19) suggest some of the flavorswhich include Ginger, Vegetables, Litchi-Strawberry candy, Lassi kulfi, Badam kesar ice-cream, Mirchie Ice-cream etc.Yes NoFrequency 19 820102030405060708090Chart 8: Includence of FlavoursFrequency
  44. 44. Where you think Havmor ice-cream rank as compared to other ice-cream available in market?Top 49Next best 50Average 1Bottom 0Table 11: Rank of Havmor Ice-cream compare to others ice-cream brandInterpretation:This graph showing equal amount of responses which is : “Top” and “Next best” whichrepresents that Havmor company can be the strong preference for consumer for buying Ice-cream or can be the second best option for consumers.Top Next best Average BottomFrequency 49 50 1 00102030405060Chart 9: Rank of Havmor Ice-creamcompare to others ice-cream brandFrequency
  45. 45. In which field you can think Havmor Ice-cream improves more?Frequency Percentage ( % )Price 30 23.81Quality 39 30.95Quantity 23 18.25Availability 33 26.19Any other 01 0.007Table 12: Improvement in the fieldInterpretation:From the following chart the majority of consumers want improvement in the field of quality.While the quantity having less consideration so we can say that Havmor Ice-cream having agreat efficiency in maintaining quantity of ice-cream.Price Quality Quantity Availability Any otherFrequency 30 39 23 33 1Percentage ( % ) 23.81 30.95 18.25 26.19 0.007051015202530354045Chart 10: Improvement in the fieldFrequencyPercentage ( % )
  46. 46. Will you advice others to buy Ice-cream?Yes 99No 01Table 13: Advice other to buy Havmor Ice-creamInterpretation:From the following chart its clearly mention that almost every respond will advice other tobuy Havmor ice-cream.Yes NoFrequency 99 1020406080100120Chart 11: Advice other to Buy HavmorIce-creamFrequency
  47. 47. Chapter 5: FINDINGS AND CONCLUSIONSHere are the some of the findings we made after analysing the respondents’responses.Havmor Ice-cream is liked by majority of people as we saw earlier in the chart. Morethan 50% Havmor ice-cream customers like quality of Havmor Ice-cream.The most feasible awareness sources of Havmor Ice-cream are Newspaper and Radiocompare to other sources like Hoardings and Family of Friends.Most of the consumers prefer buying of Havmor Ice-cream once a week.There is almost similar waightage to forms of ice-cream product of Havmor Ice-creamconsumer would like to have. The most favourite ice-cream of consumer isStrawberry, American Dry-fruit and Vanilla.Most of the consumer buy Ice-cream from the restaurant then Ice-cream parlors.Quality is least significant rank given by consumers about Havmor Ice-cream.Whereas, Offers are most significant rank given by consumers.Most of the consumers find quality of Havmor ice-cream is “GOOD”.The respondents suggest some of the flavors which include Ginger, Vegetables,Litchi-Strawberry candy, Lassi kulfi, Badam kesar ice-cream, Mirchie Ice-cream the suggestion.Consumers want improvement in the quality of Havmor Ice-cream.Most of the consumers would like to suggest Havmor Ice-cream to others.
  48. 48. CONCLUSIONThe survey resulted into following conclusions: HAVMOR must come up with new promotional activities such that people becomemore aware about Ice-cream, Quality is the dominating aspect which influences consumer to purchase HAVMORproduct, but prompt availability of other brands and aggressive promotionalactivities by others influences the consumer towards them and also leads to increasethe popularity of brand. People are mostly satisfied with the overall quality of HAVMOR Products, but for theexistence in the local market HAVMOR must use aggressive selling techniques. Consumers purchase Ice-cream from Restaurant more than the Havmor parlours socompany should have to increase awareness level of consumers towards Havmor ice-cream parlours and promote schemes at Havmor outlets.
  49. 49. CHAPTER 6: RECOMMENDATIONSOn careful observation of Havmor Ice-cream, we have the following suggestion for HavmorIce-cream, Surat which on proper implementation may provide a big boost to it.We have observed that people of age group 20 to 30 are maximum consumer ofHavmor Ice-cream. So the target market for Havmor Ice-cream is people of age group20-30 years & also kids of age group 10-20 because kids are always easy targets.All information regarding Havmor and its products should be available on internet.Increase in advertisement and publicity.Motivation program for booth and parlor owners.Glow sign boards should be provided to booth and parlor owners.New flavours of Havmor Ice-cream should be launched like ice-cream.Inspection and frequent check of booth and parlors.
  50. 50. BIBLIOGRAPHYBook reference: Kotler, P. (2007). Marketing Management 13thedition, published by PearsonEducation, Inc. Delhi. Bhattacharyya, D. (2010). Research Methodology 2ndedition. New Delhi: India SalesOffices.Web Reference:Havmor Ice CreamLimited (N. D.), Retrieved November 16, 2011, Fromwww.havmore.comPaul Thachil (November 1, 2009). Ice Cream Industry in India. Retrieved November16, 2011, from AGRO Industry (N. D.). Agricultural Commodities. Retrieved November 16,2011, from Gupta (2010). Innova Systems implements ERP at Havmor Ice Cream.Retrieved November 16, 2011, from
  51. 51. QuestionnaireConsumer Satisfaction Towards Havmor Ice-creams Surat CityDear Respondent,We are students of S.R.Luthra Institute of Management (Surat, Gujarat) and doing a surveyfor a study for which we intend to pose a questionnaire to find out customer satisfactiontowards Havmor Ice-creams. Your cooperation is deeply solicited to provide the relevantinformation. I assure that information will be kept confidential and use for academic purposeonly. Thank you.Name: __________________________Age: _____Gender: Male: _____ Female: _____Occupation: ______________________Contact no. (M): ___________________1. Are you a consumer of Havmor Ice-Cream?O Yes O No2. How you come to know about Havmor ice-cream?O Newspapers O Radio O HoardingsO Family or Friends O Others, Please specify ______________
  52. 52. 3. How frequently you purchase Havmor Ice-creams?O Once a week O More than once in weekO Once a Month O On a special occasions only4. In what form do you prefer to have Ice Cream? ( Multiple tick mark allowed)O Candy O Cup O ConeO Family pack O Roll Cuts5. Which flavors of Havmor Ice-cream you buy most? (Multiple tick marksallowed)O Vanilla O Strawberry O Chocolate chipsO American Dry fruits O Paina chips O Kesar pistaO Any other: ____________6. Normally, from where you usually buy Havmor Ice-creams?O Ice-Cream parlors O RestaurantsO Local Ice cream shops O Any other _________7. What rank would you like to give according to following characteristics ofHavmor Ice-creams?(Rate on a scale of 1 to 5, 1: least important and 5: the most important)Price _______Availability _______Quality _______Flavors _______Offers _______
  53. 53. 8. What do you think about quality of Havmor Ice-Cream?O Excellent O Good O Neutral O Bad O Very Bad9. How would you rate the Havmor Ice-Cream in following categories?CharacteristicsMost favourable ____ Less favourable1 2 3 4 5Value for moneySweetnessPackagingCustomer ServicesAdvertisementVerities10. Would you like to include any flavour in Havmor Ice-Cream?O Yes O NoIf yes, what is that flavour _________11. Where you think Havmor Ice-cream ranks as compared to other Ice creamsavailable in market? (Amul, Vadilal, Kwality walls, etc.)O Top O Next best O Average O Bottom12. In which field you can think Havmor Ice-cream improves more?O Price O Quality O QuantityO Availability O Any other ____________13. Will you advice other to buy Havmor Ice cream?O Yes O NoThank you for your valued opinion