Part I – Rural Survey Havmor ice Cream Private Limited:

A PROJECT REPORT ON

“Rural Survey Havmor ice Cream Private Limited”

Submitted by:
Richa Arora (07)
Vyapi Advani (08)
Shobhan Pathania (19)
Kashish Mehta (22)
Akhil Mohan (26)

Amity Business School, Noida

Under the Guidance of Dr. Ritesh Dwivedi

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 EXECUTIVE SUMMARY

The project report has been prepared on “Consumer Prefrence towards Havmor Ice-cream in
Khedi Kalan, Faridabad , Gopalpur ( Wazirabad) and Tigri”. The introduction of the
project, Firstly, it includes conceptual maters of understanding the consumer satisfaction towards
ice-cream. In this the research project effort is applied to find out the satisfaction level of
consumer towards ice-cream in Khedi Kalan, Faridabad , Gopalpur (Wazirabad) and Tigri.

After the theoretical part, the research has been taken which is descriptive research, for the
research sample of 200 respondents is taken. The study involves both primary as well as
secondary data. The primary data is collected with the help of questionnaire.

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 TABLE OF CONTENTS

Chapters Particulars Page No

Declaration
Acknowledgement
Executive Summary
Chapter 1 Introduction 4
1.1 Industry Profile 4
1.2 Company Profile 6
Chapter 2 Literature Review 8
Chapter 3 Research Methodology 9
3.1 Problem Definition
3.2 Objectives of study
3.3 Research Design
3.4 Sample Design
3.5 Data Collection
3.6 Data collection Method
Chapter 4 Data analysis and Interpretation 10
Chapter 5 Findings and Conclusions 16
Chapter 6 Recommendation 17
References 18
Appendix 19

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 CHAPTER 1: INTRODUCTION

Abstract:
The project is an Empirical Study on customer’s preference and attitude towards of Havmor ice
cream in the rural area. This study helps to find out the strength, weakness, opportunity, and
threats of Havmor ice cream with the help of consumer. Strength of Havmor ice cream is that
they provide more variety of ice cream. However, the penetration level for company product
categories is very low especially in rural area and they face stiff competition from national as
well as regional brands in the market. The study will help to understand the consumer preference
towards ice-cream in the rural area. The research is conducted in Khedi kalan a village in
Faridabad and the survey was undertaken with a help of a questionnaire.

1.1 The Ice Cream Industry: An Overview:

The Indian ice-cream market is annually pegged at Rs.11,000 crores and 60% of the market is
formed by the unorganized sector. The organized sector amounts merely to a worth of Rs.4,500
crores, ice-cream in the Asia Pacific countries has emerged as the fastest growing and thus the
most favorite dairy product. In India, the market for ice-creams is typical as the sales go up
during summers and while in winters there is a sharp dip in the sales chat. The per capita
consumption rate is still under the 1000ml range, 750 ml to be precise. Whereas the global
average per capita consumption is valued at 2500 ml. the US being the largest consumer having a
per capita consumption of more than 30 liters and China with 1.2 liters. These consumption
numbers prove that India spaces better scope for improvement. The rural areas are prime targets
which houses untapped markets for the industry.

There are certain reasons for a low frozen ice-cream market in the rural areas, the long duration
power-cuts and improper cold chain logistic systems are pinned up as major reasons. Amul,
Vadilal, Kwality Walls and Mother Dairy are primary national manufacturers. Out of these,
Amul and Mother Dairy are planning big expansions mainly in the rural sectors of the country.
As per market research reports, the present ice-cream industry is growing at a rate of 15% since

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last year and experts indicate that this rate is ought to climb up with the implications of
expansions and inflow of foreign brands into the national market.

Industry at a glance

The ice cream industry in India is worth Rs. 11,000 crores

The industry can be divided into the branded market and the unbranded market. The
branded market at presently valued at Rs. 4500 crores

In 2017-18, in the branded ice cream market, Amul held the number one spot, with a
market share or 12.8%, followed by, Vadilal at 6.2% and Mother Diary at 4.9%

The per capita consumption of ice cream in India is approximately 300 ml, as against the
world average of 2.3 litters per annum

Vanilla, Strawberry and Chocolate together constitute approximately 60% of the market.

The Challenges
There are several challenges that affect the industry adversely:
 The industry players not only face competition from their competitors, but also from
other similar foods.
 Though changing, consumers still consider ice cream as a dessert and a side item.
 Another major problem faced by the industry players, especially while expansion, is poor
infrastructure such lack of cold storage and in case of rural penetration, even erratic
power supply becomes an issue.

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1.2 COMPANY PROFILE

History
Small Beginning, Big Vision, Great Ambitions. Havmor Ice Cream began its branded life in
1944 in Karachi, in undivided India. By 1947, it was a popular local brand there.

But in 1947, in the wake of the partition, its founder Satish Chona had to join the exodus into
India, with virtually no moveable assets. Searching for a new turf, he tried out Dehra Dun and
Indore, and finally, settled down in Ahmedabad.

No, it was not a case of “Brand Relocation”, or anything else as fanciful. He had to start the
venture from scratch again. In fact, he had to begin from a hand-cart at the Ahmedabad Railway
Station, churning out the Ice Cream manually.

He called this fledgling brand 'Havmor' - 'Have More' - which meant the customer got more
value for money, and more taste to relish from his Ice Creams. Perhaps he didn't know it then,
but he had laid the foundation for one of Western India's most trusted ice cream brand

Today, Havmor Ice Cream is a well-known brand. It reaches hundreds of thousands of

consumers through 100 main outlets and 20000 plus dealers.

Quality policies

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

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Standards

 Innovation is a way of life at Havmor. And they strive hard to achieve the objetive.
 Havmor motto is ensuring customer satisfaction and complete value for money.
 They take responsibilities seriously and everyone, from the individual to the company,
aspires to achieve a higher level of excellence, in our products, as well as our services.

Brand name Havmor

Type of Organisation Private Limited Company
Establishment Year 1944
Founder Mr. Satish Chandra Chona
Havmor food Pvt. Ltd.,
Office address Relief Road,
Ahmedabad.
Havmor food Pvt. Ltd.,
Factory Address Asarva Road,
Ahmedabad.
Amul, Vadilal, Kwality walls, Dairy den.
Competitors
Etc.
No. parlours & Restaurant 50+
Navrangpura, Satellite, Panchavati, Relief
Outlet centers
road.
Head quarter Ahmedabad
Havmor parlour Satellite, Vastrapur, Arjun complex

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 CHAPTER 2: LITERATURE REVIEW

According to Balaraj technical director at Bangalore-based Dairy Classic Ice Creams:

Everybody talks about rural India being a huge market for ice creams. But six to eight hour-long
power cuts during the summer months makes it difficult for us to sell in the rural market.

According to Rajesh Gandhi, managing director at ice cream major Vadilal: The traders
turn off the freezer in the nights to reduce their electricity bills, which affects products and thus
making it difficult for big brands to push sales in the rural area.

According to Rahul Gupta and Yogesh Gupta, (2010): 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 60 outlets across the various cities of Gujarat, through a mix
of company owned and franchised outlets.

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

According to M Rochan (2012): The challenge is to get consumers in urban and rural India to
stock their refrigerators with ice cream and eat more of it. But not everyone in rural India would
think of owning a refrigerator - around five in 10 houses do not have access to electricity. Of the
roughly 80 lakh refrigerators sold in India annually, 35 percent get sold in rural and semi-urban
markets.

According to Paul Thachil (CEO – Mother Dairy Fruit & Vegetable): The ice cream
industry growth has been primarily due to strengthening of distribution network and cold chain
infrastructure. Channels such as mobile vending units have been increasing year-on-year

According to Pankaj Chaturvedi (CEO of Baskin Robbins): About 55% of the business is
contributed by exclusive ice cream parlors and kiosks while 30% is from corporate or food
service (as we categorize it) sales. The rest comes in from retail and exports.

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 CHAPTER 3: RESEARCH METHODOLOGY

3.1 Problem Definition

Customer Preference and satisfaction level in the rural area

3.2 Objective of the Study

 To determine the consumer preferences toward Ice cream in rural area.

 To find out how much the customer is willing to pay for ice cream in rural region

3.3 Research Design

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

3.4 Sample Design

Convenience sampling design is used in this project to collect the data from respondents

3.5 Data Collection

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

 Primary Data
 Secondary Data

3.6 Data Collection Method

 Close ended Questionnaire has been used for data collection of primary data
 Articles and Journals is used for collection of secondary data

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 CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

1. Flavor preference of ice-cream in rural area

Table 1
Flavour Frequency
Vanilla 47
Strawberry 29
Orange 69
Chocolate 32
Others 23
Total 200

Figure 1

Interpretation
The pie chart shows 35% respondents prefer orange flavor, 23% respondents prefer vanilla
flavor over strawberry and chocolate flavor because most of the time strawberry and chocolate
flavor is not available with the vendor. 16% respondents prefer chocolate, 14% respondents
prefer strawberry flavor and remaining 12 % prefer others category in Ice cream. The chart
concludes majority of respondent prefers orange flavor.
The orange flavor ice-cream is particularly preferred in the rural area preferably by the kids as
they think of it as a candy bar.

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2. Preference in frozen desserts

Table 2
Types Frequency
Chuski 65
Kulfi 52
Rabri 23
Ice- cream 40
Softy 20
TOTAL 200

Figure 2

10%
chuski
32%
20% kulfi
rabri
ice- cream
12% softy
26%

Interpretation
The pie chart shows 32% respondents prefer Chuski as frozen desserts, 26% respondents prefer
Kulfi, 20% respondents prefer Ice cream, 12% respondents prefer Rabri and remaining 10%
prefer softy.
This chart concludes majority of respondents like Chuski as frozen desserts and as is readily
available in the rural region with more than 15 flavors sold by local vendors.
Localized customizations can be made accordingly in order to cater to the rural segment.The
brands can introduce their own version of these frozen desserts like chuski and kulfi flavored
ice creams.

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3. Frequency of consumption of ice- cream by people in rural region

Table 3

Times frequency
every day 5
once in a week 57
once in a month 89
Don't have 49
Total 200

Figure 3

2%
25%
28%
every day
once in a week
once in a month
Don't have

45%

Interpretation
The pie chart shows 45% respondents prefer having ice cream once in a month, 28%
respondents prefer having ice cream once in a week, 2% respondents prefer to have ice cream
every day and remaining 25% respondents don’t prefer to have an ice cream. The chart
concludes majority of respondent prefer to have ice cream once in a month.
Parallels can be drawn about the huge market potential of ice cream in the area. (about 45%).
The Marketing mix can be done to increase the penetration of the same. To increase visibility
of the brand havmor should provide its channel partners and vendors with company logo shirts

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4. Preferred product category of ice-cream

Table 4

Category frequency
stick 83
Cup 69
Cone 42
Others 6
Total 200

Figure 4
3%
21%
stick
41%
cup
cone
others

35%

Interpretation
The pie chart shows 41% respondents prefer having stick ice cream, 35% respondents prefer
having cup ice cream, 21 % respondents prefer to have cone ice cream and remaining 3%
respondents prefer other category. The chart concludes majority of respondent prefer to have
stick ice cream.
The affordability can be major factor to prefer sticks over cups. Added to the fact that Chuski
was one of the most preferred frozen dessert, consumers are more inclined to buy a stick
compared to a cone or cup.
Also 5 out 10 people don’t have refrigerator in rural areas and they can’t stock ice-cream so
they mainly buy ice-cream in stick and cup form which can be instantly consumed.

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5. Availability of ice-cream in rural area

Table 5
Parameters Frequency
very easily available 18
Available 35
Neutral 86
Difficult 51
very difficult 10
Total 200

Figure 5

very difficult

difficult

neutral
Series1
available

very easily available

0 20 40 60 80 100

Interpretation
The bar chart shows that out of 200 respondents 86 respondents are neutral towards ice cream
availability, 51 respondents find difficulty in ice cream availability. 35 respondents find ice
cream is available in their area, 18 respondents find ice cream is easily available in their area
and remaining 10 respondents find very difficult to get ice cream in their area.

The availability of ice creams can be tackled by devising proper distribution channels and
channel partner systems. More carts and vendors can be deployed to remote areas and the
vendor should relocate near government schools and places where panchayat meetings are held
in order to boost sales.

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6. Perception for ice- cream

Table 6
Perception frequency
Outstanding 13
Good 34
Neutral 83
Bad 47
Awful 23
Total 200

Figure 6
12% 6%

17% outstanding
good
24%
neutral
bad
awful
41%

Interpretation
The pie chart shows 41% respondents have neutral perception for the ice cream, 24 %
respondents have bad perception for the ice cream, 17 % respondents have good perception for
the ice cream, 12% have awful perception and remaining 6% respondents have outstanding
perception for ice cream. The chart concludes majority of respondents have neutral perception
for ice cream.

The data fluctuates from neutral to bad indicating the preference in the ice cream relating to a
particular aspect may not appeal to the consumers. Varieties in terms of localizing the flavors,
re-design shape or packaging might possibly create a good perception. Other segment of frozen
desserts can also be included to give added value.

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7. Brand Preference of ice-cream

Table 7
Company frequency percentage
Amul 65 32
Vadilal 40 20
kwality walls 37 18
mother diary 27 14
Havmour 18 9
Others 13 7
Total 200 100

Figure 7

7%
9% amul
32%
vadilal
14%
kwality walls
mother diary

18% havmour
20%

Interpretation
This pie chart shows 32% respondents prefer Amul as their ice cream, 20 % respondents prefer
Vadilal, 18 % respondents Kwality walls as their ice cream, 14% prefer mother diary, 9%
prefer Havmor and remaining 7% respondents prefer others as their ice cream. This chart
concludes majority of respondents prefer Amul as their ice cream.

Amul is leading the market segment closely followed by vadilal and kwality walls. The
visibility of the havmor brand in rural area is a major concern.

Awareness needs to be spread about the brand and brand messages to be communicated to the
consumers through various mediums can help build up the market share.

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8. Willingness to Spend
Table 8
Price Frequency (%)
Rs 5 15
Rs 10 45
Rs 20 30
More than Rs 20 10

 The pricing strategy for the ice cream should be aligned with the data.
 Most people are willing to spend Rs 10 or more on ice-cream.
 Lower price segment of varieties of ice cream can be utilized for this price sensitive
market between Rs 10-50 in order to give more choice to the people in terms of
product prices.

9. Seasonality
Table 9
Season Frequency (%)
Winter 20
Summer 55
No effect 25

 The ice cream consumption in summers are prominent.

 Price hike can be offered in summers
 In winters, offers and discounted price can be implemented to increase consumption.
 Combo offers can be given off season.

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10. Brand awareness of havmor
Table 10
Particulars Frequency (%)
Yes 38
No 62

 Consumers are not aware of the brand.

 Extensive brand promotion needs to be done.

11. Change of flavor

Table 11
Particular Frequency (%)
Yes
No 5

 This is indicating that consumers prefer different flavors.

 Switching of flavors indicate the potential for testing new flavors

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From Table 1 where a general question was asked regarding the flavor of ice-cream they
prefer to eat and Table 11 in which the consumer was asked if they will change the flavor
of ice-cream if the preferred choice of flavor is not available following data emerged
which is represented in the form of cross-tabulation

Flavor
Vanilla Strawberry Orange Chocolate Others Total

Effect
YES 17 22 16 9 18 82
NO 30 7 53 23 5 118
Total 47 29 69 32 23 200

From the Cross-tab it can be seen that people who prefer vanilla, chocolate and orange are
reluctant to switch flavor and prefer to eat their desired flavor of ice-cream only.
While consumers who prefer strawberry and other flavor of ice-cream switch more often when
their choice of ice-cream is not available.
The table is a strong indicator that the vendor should keep Vanilla, Orange and chocolate flavor
ice cream well stocked as the demand for these ice creams is high in comparison to other flavor
of ice cream

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FINDINGS

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RECOMENDATION

1. Increase appearance and do promotions in rural markets.

2. In rural areas, frozen desserts are preferred and because of frequent power cuts, vendors
face major issues in sales.
3. As people prefer ice-cream in the form of stick and cup they should increase their product
portfolio in this category
4. The major thing faced by vendors especially Havmor is that they face problem from the
police personnel as they don’t let them sell the ice cream because they have to pay
(commission) to personnel which is not at all required to pay. So that is a loss for such
companies.

CONCLUSION

1. Kids have limited amount of money, so the company has got ice creams at the price as less as
₹5 and cone in ₹10

2. The people in the rural areas here in Delhi NCR have comparatively a higher disposable
income than others so they can spend up to 50 rupees as well.

3. Visibility of their brand name is low in rural area so they should increase the promotional
campaigns and generate awareness by conducting such activities during panchayat Sabha

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References:

 India Agroindustry Agricultural Commodities. Retrieved November 16, 2011, from

http://agro.indiamart.com/agricultural-commodities/ icecream.html

 Yogesh Gupta. Innova Systems implements ERP at Havmor Ice Cream, 2010.
Retrieved November 16, 2011, from http://www.channelworld.in/case-study/erp-
global-ingredients-local-flavor.

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 Pandian Keerthi, Ramachandran KK. Brand Awareness: Baby Food Products.
SCMS Journal of Indian Management, (2010) 7.2.

 Havmor Ice Cream Limited (N.D.), Retrieved November 16, 2011, From
www.havmore.com.

 Paul Thachil. Ice Cream Industry in India, 2009. Retrieved November 16, 2011,
from http://www.dare.co.in/opportunities/other-business-opportunities/ice-cream-
industry-in-ndia.html

ANNEXURE
Condition of Gopalpur village is worse.

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