VIKRANT TRADECOM Pvt. Ltd.

FREEZO ICE CREAM (JABALPUR)

PROJECT REPORT ON

MARKETING AND PROMOTIONAL STRATERGIES OF FREEZO ICE CREAM

GUIDED BY MRS. DEEPALI PATERIYA HR MANAGER VIKRANT TRADECOM Pvt. Ltd.

SUBMITTED BY MS. DEEPALI JAIN 11BSPHH010256 IBS HYDERABAD

Table of Contents

i. ii. iii. iv. v.

Internship Certificate Authorisation Declaration Acknowledgement Executive Summary

1. Introduction 1.1 Background 1.2 Objective 1.3 Methodology 1.4 Scope & Limitation 2. Economy Industry Analysis 3. Company Analysis 4. Project Specific Analysis 5. Conclusion & Recommendation 6. Contribution 7. Learning from SIP 8. References 9. Appendix

Authorisation

This is to authorize that the project work titled Marketing and Promotional Strategies of Freezo Ice Cream is an original research work done by Ms. Deepali Jain, Enrolment No. 11BSPHH010256, MBA-2011-2013, IBS HYDERABAD, during her summer internship at Vikrant Tradecom Pvt. Ltd., in partial fulfilment of the requirements for the completion of the degree of MBA and is hereby submitted to IBS Hyderabad. This work was not submitted earlier at any other University or Institute for the award of the degree.

Faculty Guide: Prof. Subhadip Roy ICFAI Business School Hyderabad

Project Coordinator: Mrs. Deepali Pateriya HR Manager Vikrant Tradecom Pvt. Ltd.

Declaration

I, hereby, declare that this project is a result of my own research work and field study and that it has not been copied from anyone nor it has been published earlier in any sources.

Deepali Jain ICFAI Business School Hyderabad

Date: June 2, 2012

ACKNOWLEDGEMENT

It has been a highly enriching experience to do an Internship in Vikrant Tradecom Pvt. Ltd. Through full-time work at Vikrant Tradecom, it has been possible to achieve the perfect blend and valuable exposure to different profiles of marketing and gained the indispensable knowledge from the work place and theoretical studies. Moreover, the much-needed work ethics and culture have been inculcated carefully over the period of the internship. I would like to take this opportunity to thank my company guide Mrs Deepali Pateriya, HR Manager (Vikrant Tradecom) who used to give me triggering points to think, to move ahead in my research and directed me whenever needed despite of her busy schedule. She always took keen interest in the progress of the project and provided me her valuable suggestions and complete support during the course of the project. I thank them for giving me this golden opportunity of being associated with her company. I would also like to thank my faculty guide, Prof. Subhadip Roy, ICFAI Business School, for the constant moral support extended to me for smoothly completing my internship and sharing my experiences. I must also make a special mention about the support extended by Mr. Vikas Nema, Managing Director, of Vikrant Tradecom Pvt. Ltd. The time I was given and the encouragement I have gained through the discussions and debates with him have proved to be precious. Last but not the least; I would like to express my sincere thanks to all the executives and staff members at Vikrant Tradecom for the interest taken in my internship, the constant support, and the valuable advice which they have given. And also to all the people who actively participated in the surveys and made this project work possible. I sincerely thank them all from the bottom of my heart.

Deepali Jain ICFAI Business School Hyderabad

Executive Summary

Vikrant Tradecom Pvt. Ltd. has started the manufacturing of ICE CREAM and other products under the brand name Freezo in year 1994 with decision to make Ice cream affordable to the middle and lower class group of Madhya Pradesh. Presently the group is operating in 3 to 4 states of India that is Madhya Pradesh, Uttar Pradesh, Chhattisgarh and Maharashtra. From my research at Freezo, I found that the company has a lot of competition from players like Dinshaws, TopN Town and Dinshaws. To compete effectively Freezo must advertise regularly and create brand value for its products and services. The Indian consumer has a false perception about ice creams manufactured locally they feel that it would be of lower quality. Freezo should try to change this perception among people through advertisements. It should come up with attractive schemes, discount coupons to keep the consumers interested in purchasing Ice cream. Regular visit by sales executives is required. To capture the upper class group of Madhya Pradesh, Freezo has launched an Ice cream lounge BIG SCOOP in Jabalpur, Madhya Pradesh. In future similar projects can be taken and a chain of Ice Cream lounge under the name Big Scoop can be opened. This will help the company to increase their market share in Ice Cream industry. On the whole Freezo is a good place to work at. Every new recruit is provided with extensive training. This training enables to market the products better. The company should try to create awareness about itself in India. With an improvement in the sales techniques used, a fair bit of advertising and modifications to the existing product portfolio, Freezo would be all set to capture the ice cream market in India.

1. INTRODUCTION
1.1 Background Vikrant Tradecom Pvt. Ltd. started multifarious business activities of manufacturing & marketing Ice Cream, Fruit Processing, Air conditioning, Herbal extraction, manufacturing Ayurvedic Products etc in the year 1994. The main activity of Vikrant Tradecom Pvt. Ltd. is manufacturing of ICE CREAM & KETCHUP SAUCES under the Brand Name FREEZO. The group holds major market share of their area of operation and have developed their Factory into an Automated with the most sophisticated machineries and maintaining good manufacturing practices.

Presently the group is operating in 4 states of India that is 1. 2. 3. 4. Madhya Pradesh Chhattisgarh Uttar Pradesh Maharashtra

VISION To consistently provide quality, value and convenience by delivering the healthiest high quality foods". MISSION Looking to the market potential of Ice Cream & comparing with other developed countries the companys mission is to achieve 50% per capita consumption through quality product on a reasonable price which will force us to increase our sale by min 25 times of our existing sales by 2015. Today Freezo is a symbol of high quality products sold at a reasonable price. Currently it offers a selection of more than 100 products. Its portfolio consists of impulse products like sticks, cones, cups, kulfi, shakes, sundaes, sodas, shooters, sugar free ice creams, ice cream cakes, take home packs and institutional/catering packs. Freezo manages to publicize itself not only through radio and TV campaigns but also through road and poster campaigns. The experts attribute this success to the successful planning and implementation of Freezos marketing mix tactics.

1.2 Objective The objective of a project is basically defined as what the project is supposed to accomplish. The project in Freezo involved the following activities: 1) To have a clear understanding of the ice cream industry. 2) To identify Freezos position in market. 3) To know the competitive brands along with Freezo. 4) To check the level of satisfaction of retailers with distributors and the company. 5) To identify the various retailer problems and offer solutions to these problems. 6) To have a clear understanding of the promotional activities related to the opening of a new outlet BIG SCOOP. 7) To identify fifty outlets for business tie ups and convince them for promotion of the outlet. 8) To identify events to be organised on roads, colleges and malls for promotion. 9) To provide messages for each products and the outlet for promotion on radio. 10) To list out the products to be sold, name them and prepare a menu containing write up for each.

1.3 Methodology Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the methodology. When we talk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using other so that research results are capable of being evaluated by researcher himself or by others. Marketing research plays a very important role in marketing. It helps the firm to acquire a better understanding of the consumers, the competition and the market environment. Definition Marketing Research is a systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services. -Phillip Kotler Research Design The starting point for the research design is, in fact the research question and hypotheses that have been so carefully developed. In essence, the research design answers the question: How are we going to get answers to these research questions and test these hypotheses? The research design is a plan of action indicating the specific steps that are necessary to provide answers to those questions, test the hypotheses, and thereby achieve the research purpose that helps choose among the decision alternatives to solve the management problem or capitalize on the market opportunity. For the success of this project, the Research Design that was adopted was Exploratory Research Design. Exploratory research is conducted when the researcher does not know how and why certain phenomenon occurs. The purpose of exploratory research is to know the unknown. Exploratory research determines fruitful alternatives that the executive would not have perceived. This also narrows down the scope of the investigation. Exploratory research is undertaken to get the answer to the following question. What alternative courses of action might solve the problem and thereby reach the final objective. Here the question posed was "what were the major reasons for the turmoil in the minds of retailers, regarding Freezo ice creams. Also if there were any problems with Freezo, what could be the possible solutions for the same. We had to get to know the unexplored variables that influenced the purchasing power of retailers.

Data Collection Sources Data will be collected from primary and secondary sources, but the emphasis will be given on primary data. 1. PRIMARY DATA: Primary data, which is the major source of information for the project, has been collected by way of preparation of well- structured questionnaire and personal interviews. 2. SECONDARY DATA: To make the study better, secondary data has also been collected by way of editorials, journals or extracts from magazines and newspapers, websites of internet. Data Collection Methods 2 First Phase of Research

During the initial weeks, I understood the market and identified Freezos competitors.I found that Freezos main competitors in Jabalpur were TopN Town and Dinshaws. After identifying the competitors I compared their product range and their prices. The Distributor of Freezo ice creams in Jabalpur have been divided into eight beats. I took a survey as to how badly the market had been affected by the shortage of supply and distribution via telephonic interviews with the retailers. The call ensured that the confidence in the retailers was instilled and reminded them of the strong distribution network of Freezo. During the interviews I received retailers feedback and identified the various problems related with the schemes. S.No 1. 2. 3. 4. 5. 6. 7. 8. Beat Name Beat No 1 Beat No 2 Beat No 3 Beat No 4 Beat No 5 Beat No 6 Beat No 7 Beat No 8 Total No of Retailers 18 23 31 30 37 20 20 21 200

It was really necessary to get feedback from the retailers. It was important for us to know what were the amicable problems faced by the existent retailers. 3 Second Phase of Research

For the promotion of Freezos new outlet BIG SCOOP, I had to identify 50 showrooms for business tie up. For this first a business proposal and a presentation was prepared and then after taking the appointments I had to visit the showrooms and give the presentation.

Data Collection Instrument A questionnaire consists a list of question to be asked from the respondents and space provided to record their answer or responses. Questionnaire can be used for personal interviews, focus groups and telephonic interviews. The choice among the alternatives is largely determined by the type of information to be obtained and by the type of respondents from whom it is to be obtained. The common factor in all the varieties of questionnaire method is the reliance on verbal responses to the questions, written or oral. The Market Research Project involved Retailer survey for acquiring information on Freezo Ice Creams. Retailer Survey For retailer survey, a questionnaire was developed and after careful scrutiny I started conducting the survey. I interviewed 50 retailers and after collecting the information, the data was tabulated properly. Sampling 1. 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). 2. Sample Unit: retailers who sell freezo ice cream. 3. Sample Size: 50 retailers. 4. Method: Telephonic interview through questionnaire.

1.4 Scope and Limitation The scope of the study is limited to Jabalpur city. The survey was undertaken in the areas covering the whole of Jabalpur city. 1. The sample size of the survey was very large and tedious to interview. 2. The responses may vary as some respondents did not want to come up with real answers.

3. The time taken to interview each retailer was a lot as every retailer had to be first explained everything and had to be dealt with patience. 4. Non-cooperative approach and rude behaviour of the respondents. 5. There might have been tendencies among the respondents to amplify or filter their responses under the testing conditions. 6. There was no provision of visiting cards for the summer trainee which hinder communication at times.

2. Economy Industry Analysis

Indian summers are synonymous with ice creams. A number of colourful pushcarts are seen selling the choicest of ice creams in numerous flavours from the traditional vanilla and chocolate to unusual varieties. If that doesnt baffle us then the ice cream range definitely would, for example the ice cream range or the children would be entirely different 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. The ice cream market in India is estimated to be around INR 2,000 crores, of which INR 1350 crores belongs to the organised sector growing at about 18-20% per year. Amul, owned by Gujarat Cooperative Milk Marketing Federation (GCMMF), is the market leader in the branded segment with about 38% market share ( 5% of its total revenues), followed by Hindustan Unilevers (HUL), Kwality Walls with about 14%,and Vadilal with about 12%. These players not only fight the small local industry players like TopN Town, Freezo, but also the fact that the Indian cuisine itself offers a large variety of desserts which are still preferred by most Indians. Due to this reason, the per capita consumption of ice cream in India is approximately 300 ml, as against the world average of 2.3 liters per annum, which can be seen as a huge opportunity in this sector in India attracting new regional and national entrants.

AMUL Amul Ice Cream was launched on 10th March, 1996 in Gujarat. While growing at a phenomenal pace, Amul has always taken care to offer delectable flavours to all age groups across the society. Its portfolio consists of impulse products like sticks, cones, cups, take home packs and institutional/catering packs. Currently it offers a selection of 220 products. In January 2007, Amul introduced Sugar Free & ProLife Probiotic Wellness Ice Cream, which was a first in India. This range of sugar free, low fat diabetic delight and prolife probiotic wellness ice cream is created for the health conscious.

KWALITY WALLS 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 ice-cream on a commercial scale. As the ice-cream industry exploded in India, in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back. The Indian consumer market was introduced to KWALITY WALLS the result of a c o l l a b o r a t i o n b e t w e e n gl o b a l b r a n d W a l l s a n d t h e l e a d i n g In d i a n i c e - c r e a m b r a n d Kwality. 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. Kwality ice-creams are trusted not only for their rich, creamy flavours, but also for their trusted quality and nutritious food value.

VADILAL Vadilal was launched in 1926. It has a turnover of 400 crore per annum. Vadilal has range of ice creams in the country with 150 plus flavours and they are sold in a variety of more than 250 packs and forms. The range includes cones, candies, bars, ice-lollies, small cups, big cups, family packs, and economy packs.

What exactly is defined as ice cream under the guidelines? The Prevention of Food Adulteration (PFA) Rules, 1995 defines ice cream as a frozen product that contains not less than 10% milk fat, 3.5% protein, 36%total solids and 0.5% permitted stabilizer and emulsifier. 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 the hardening process, the ice cream mixture is incorporated with air. This is done to make the product light and creamy this is necessary as without air, ice cream would be a frozen ice. Now the ice cream can contain a considerable quantity of air, even up to half of its volume. This perhaps makes ice cream a business with high profit margin.

Grading of Ice cream Grade A- Ice cream made from fresh Grade A milk, cream and condensed milk, and conform to certain chemical and bacteriological standards and sanitary rules and regulation. Grade B- Ice cream made from milk products such as powered milk, frozen cream, condensed milk (older than 24 hours), butter, etc. The chemical and bacteriological standards and the sanitary requirements same as Grade A ice cream. Grade C- This grade permits the making of ice cream with a butterfat content less than the standard. The butterfat content has to be stated on the label.

The major volume growth for ice cream players comes from the take-home-segment rather than consumption at ice cream boutiques or parlours. This is the key inference of a survey conducted by Retail Research India (RRI). The survey attributes this shift in consumer priority to the fact that ice cream eating is becoming more of a weekend pastime for families rather than a leisure activity during outstation trips or picnics. The consumer perception audit reveals that ice creams as a product is now perceived as a product for the family rather than just as an indulgence during outing exercises. Between kids and youth on the streets and adults at home, a large chunk of ice cream sales gets taken care of. Impulse purchase from youth and kids accounts for 50 per cent of the market. Family consumption adds another 35 per cent. Fifteen per cent of the market is in parlour sale.

Consumption
15% kids & Youth 50% 35% Families In Parlour

Indian ice cream market can be segmented in three different ways, namely on the basis of flavours, ion the basis of stock keeping units/packaging and on the basis of consumer segments. On the basis of flavours the market today has a number of flavours like vanilla, strawberry, chocolate, mango, butterscotch, a number of fruit flavours, dry fruit flavours traditional flavours like Kesar Pista, Kaju Draksh etc. The market is totally dominated by vanilla, strawberry and chocolate, which together account for more than 70% of the market followed by butterscotch and other flavours.

Flavours
30% Vanilla, Strawberry & Chocolate Others 70%

Ice cream distribution in India typically involves a distributor, wholesaler and retailer. Most domestic brands have small regional operations, with plants situated near their major markets due to the lack of cost effective cold chain facilities. National brands have owned or leased cold storage facilities in major metropolitan areas, which ship to distributors or direct to retailers. Some major brands have begun serving smaller cities by acquiring smaller plants and improving distribution networks. Distributors margins are about 18-20%. However, an issue is the seasonal nature of this industry in India, especially true for the northern parts of the country. Bulk of the sales happen during the summer months of April July, but the sales witness a significant dip during winter months of November February. Additionally, the seasonality of events like marriage affects sales in a big way, although institutional sales provide some cushion. But what makes the situation worse is low electricity, during the high demand summer months that affects the ice cream stocks. Once the ice cream melts, it is non-saleable, and drives retailers not to carry enough stocks. There are several challenges that affect the industry adversely. As mentioned earlier, the industry players not only face competition from their competitors, but also from other like 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.

As the industry, evaluation would indicate the competition is significant. The 70,000 participants is a large number but the more serious challenges comes from the top six national firms; Amul, Kwality Walls, Havmor, Dinshaw, Vadilal and mother Dairy. These top six firms dominate the market and essentially control the organised market. Detail statistics are not available to indicate market share and these six firms control 40% to 50% of the urban market. Historically MNCs have not achieved much success in penetrating the Indian market. There are number of possible explanation for this; the relative embryonic and disorganised nature of the market, excessive government regulation that included excessive tariffs and the restriction that imported ice cream could only be sold in hotels, and a highly fragmented and ineffective media. Government participation in this sector covers Prevention of Food Adulteration Act 1954, Food and Safety Standards Act 2006 and certain government policies. The major trends identified include rise in frozen yoghurt, creation of exclusive stores, entry of eatery players, establishment of the Indian Ice Cream Manufacturers' Association, promotional offers flooding the sector, mini meal concept, alternative products and introduction of new variants.

Industry Attractiveness 1. Barriers to entry The two favourable factors are the opportunity for product differentiation within the super premium segment and the importance of corporate experience in all phases of the operation (production, distribution, and marketing). The most important down side factor is that consumer switching cost is nil. 2. Power of buyers With ice cream there are virtually no important end consumers. However if one focuses on the consumer as retailer then the importance of the few powerful and growing grocery chains represents a significant hurdle. This is offset by the almost complete lack of potential for backward integration and the relative insignificance of ice cream to this customer group.

3. Power of suppliers The most important factor here is the importance of quality. The agribusiness in India is still very much in the developmental stage and there is little concern, at present, over the dairy producers moving into ice cream production. 4. Availability of substitutes The concept of comfort foods in India is still very much in the incubation stage; as such the primary role of ice cream is that of a sweet desert with little or no emotional value. Accordingly, there is a wide variety of alternative products. The most notable alternatives are kulfi and faludeh. Kulfi is the traditional desert of India. It is essentially a cream based pudding where the content varies significantly on a regional basis. Faludeh, an Iranian sweet and is quite popular because of its rice noodle content and generally low price.

5. Government actions While there is no threat that the government will enter the industry the primary concerns are focused on the growing economic tensions between states and between states and the national government. The need to generate

additional government revenues could prove to be the motive to reinstate industry restrictions or otherwise alter the basic economics of the industry. 6. Rivalry By almost every indicator the rivalry is intense and will continue to grow. There are just a few large firms, the industry is expected to grow rapidly, and the

strategic stakes are large not only for the MNCs attempting to enter the market but for domestic firms as well. Overall the industry is moderately attractive as illustrated in the following graphic.

The three factors of ice cream industry growth that is population, per capital consumption and price all are projected to increase over the next six years. Population is projected to grow at 1.8%, per capital consumption is projected to grow at 5% and prices are projected to increase at just over 1% per year.

3. Company Analysis

Freezo Ice Cream For any new player to enter the ice cream market, three things are critical: 1. Decentralised manufacturing facilities. 2. Efficient cold chain. 3. Growing market. Vikrant Tradecom Pvt. Ltd launched FREEZO Ice Cream in 1994. The portfolio consisted of products like cones, cups, sticks, take home pack and institutional/catering packs. Freezo started manufacturing and marketing of ice cream in Madhya Pradesh. Presently Freezo ice cream operates in Chhattisgarh, Uttar Pradesh and Maharashtra. Not only has it grown at a phenomenal rate but has added a vast variety of flavours to its ever growing range. Currently it offers a selection of more than 100 products.

The growth rate of Freezo ice cream in Madhya Pradesh is about 57% per year.

Freezos entry into ice cream 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 and quality of products. In Jabalpur, Madhya Pradesh, it has competitors like Dinshaw's and TopN Town. Product Range Freezo manufactures a huge range of different types of ice creams and many other products. Their matchless quality products are known for their better taste. They are processed through latest techniques, under the right supervision of highly qualified and experienced professionals. They deliver varieties of products that are best suited to all kinds of customers' distinct demands. Understanding their demands, Freezo introduce the following types of ice creams: 1. 2. 3. 4. 5. 6. 7. Small Cups Large Cups Cones Bars Novelties Ice cream Cakes Kulfi

8. Naturals 9. Bouncers 10. Tubs 11. Sugar free 12. Naya andaz 13. Take away packs 14. Sundaes 15. Smoothies 16. Shakes 17. Shooters 18. Sodas Marketing Model

Freezos Customer Strategic Focus

Customer Demand

Freezo Strategy

Choice

Adaptation of existing flavours and add new and innovative flavours based on local preferences

Value

By maintaining the highest quality standards Freezo will be able to position itself as the super quality ice cream

Convenience

Proper packaging depending on the point of sale and wide distribution in grocery stores and through street vendors

Swot Analysis of Freezo Ice Cream Strengths:1. Penetration pricing strategy Freezo is the price warrior in the ice cream market and currently has a wide range to offer for all the price point. 2. Wide variety of unique products like Pan-e-Khas, etc. 3. High quality products. 4. Attractive packaging. Weaknesses:1. Shortage of stock during season. 2. Distribution problems. 3. Retailers not satisfied with the after sale services.

Opportunities:1. 2. 3. 4. Growing ice cream market in India. Increased wealth due to economic changes. Strong and growing consumer base. Internet promotions are a good means of awareness which should be tapped.

Threats:1. Free entry to the market. 2. Threat of substitutes. 3. Freezo is currently facing stiff competition from Dinshaws and TopN Town and may face more threats from other local manufactures in the low prices segment ice creams. 4. The low per capita income and low per capita consumption of the people is a threat to Freezo. One of the most motivated things to the retailers is that the In f r a s t r u c t u r e p r o v i d e d b y F r e e z o t o t h e r e t a i l e r s . T o expand and capture more and more market Freezo always support the retailers by providing following things. 1. It delivers an important grade deep freezer in very low price. 2. To develop the retailers spot it provides full advertising support. 3. Special schemes to retailers and customers are provided. 4. Extra discount facilities. 5 . Good Margin. Business Life Cycle

If we analyse business life cycle of Freezo, it is in growth phase. As April to July is the peak time for ice cream industry, the companys profit has started to climb, new employees are being hired and new equipments are being purchased.

DINSHAWS Dinshaws Dairy Foods Ltd. introduced DINSHAWS ICE-CREAM in the year1932. Dinshaw's Dairy Foods Ltd. has been operating since 75 year. The company is acknowledged as the leading manufacturer and supplier of different types of ice creams and many other products. They offer varieties of Ice Creams, Pulpies, Twin Bars, Chocobars, Kulfi, etc. that are better in taste and quality. Moreover, they have introduced Pro-biotic curd in cups for the health conscious customers. Having wide presence in all major cities of the country like Maharashtra, Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Karnataka, Orissa, Goa, Jharkhand, Uttar Pradesh, Kerala, Tamil Nadu, Rajasthan and Gujarat; they are able to meet distinct requirements of nationwide customers. A huge range of products is imported from the international market of China. In addition, they have an extrusion line and stick line imported from Italy. Offering international standard products, they have been able to win the trust of numerous customers all across the world. Today, there products have higher demand in domestic as well as international markets. In addition, mentioned below are some key factors that have obtained them an edge in this competitive market: 1. 2. 3. 4. Sound infrastructural setup. Wide distribution network. Quality check unit. Timely delivery of consignment.

TopN Town The Ramani Group started its operations in Bhopal way back in 1970 when it set up its first ice cream parlour. The zeal and ardour to provide quality ice cream to people at affordable prices led the Ramanis to form Ramani Ice Cream Private Limited, which set up its first creamery in Bhopal in 1988. Since then there has been no looking back as the company catapulted to the position of the leading manufacturer of 100% vegetarian ice creams in Central India. Today the company not only produces and distributes a wide variety of ice creams and desserts, but also owns a chain of exclusive ice cream boutiques, providing the ultimate ice cream experience. The brand TOPN TOWN operates on a Franchise Model which offers competitive and attractive business margins. TOP N TOWN has its presence in Madhya Pradesh, Chhattisgarh, Orissa, Maharashtra, Punjab, Rajasthan, Uttar Pradesh and Jharkhand. The company boasts of more than 100 Ice Cream Parlours and 7500 retail stores across these regions.

The brand that was launched in 1972 has forged ahead ever since, with more than 200 delicious flavours till date. With its focus on quality products and premier customer service the brand has carved a niche for it in Central India. Over the years Top N Town Ice creams has spread its operations through a well developed and extensive network of distributors, subdistributors and retailers Constant and unique innovations continue to be the USP (Unique Selling Proposition) of the company. The company aims to come out with flavours of international liking, taste and quality as it advances towards its goals. As a part of its innovation, Top N Town has come up with the sugar free versions of some of its popular flavours for the health conscious.

Comparative Analysis Product: - On comparing the complete range of products offered by Freezo, Dinshaws and TopN Town, I found that Freezo has a wider range of products and in most of the category of products Freezo offers more number of flavours.
Product Freezo No of Products Small Cups Large cups Cones Sundae Special Bars Novelties/Roll Cuts Naturals Cakes Kulfi Tubs Sugar Free Bouncers Naya Andaz Packs 4 9 7 4 14 8 4 2 7 3 2 3 3 4 different quantity packs available Dinshaws No of Products 3 6 7 6 18 3 0 0 6 8 4 0 0 3 different quantity packs available Topn Town No of Products 3 6 6 0 7 8 0 0 3 5 0 0 0 5 different quantity packs available

Prices- Dinshaws has the highest price when compared to TopN town and Freezo. Freezo comes at number three. Freezo uses Penetration Pricing Strategy. Penetration Pricing is the technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. The prices are raised later once the market share is gained. The advantages of penetration pricing are 1. Helps achieve high market penetration rates quickly. 2. Creates goodwill among the early adopters segment.

3. Creates cost control and cost reduction pressure from the start, leading to greater efficiency. Price Penetration is most appropriate where: 1. Product demand is highly price elastic. 2. The product will face stiff completion soon after introduction.

3. The product is suitable for a mass market. 4. In industries where standardization is important. Freezo basically targets the lower and the middle class customers. But to compete with Dinshaws and target the elite class, Freezo has recently launched an ice cream lounge BIG SCOOP. This will help Freezo to increase its customer base and its market share. Promotion- Promotional strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Freezo uses the pull strategy. Pull strategy involves motivating customers to seek out your brand in an active process. It uses advertising to build up customer demand for a product. Pull Marketing creates a situation in which consumers knowingly request a branded product and pull it through distribution channel.Although this sounds easy; it often takes considerable time and resources to build awareness for a product to the point where it is identifiable by consumers. Often manufacturers will look at incorporating a pull strategy when: 1. Consumers want to purchase the product because of a strong affiliation to the brand. 2. They have created a product that is easily differentiated and identifiable from competitor products. 3. They have adequate funds to support a large advertising campaign.

Freezo used the pull strategy by launching a whole range of unique products to differentiate it from other players, offering discounts, promoting by organising road shows, rock band and events in malls and colleges.

4. Project Specific Analysis

Data Analysis is important for any project because the raw data is of no use and does not convey the awareness among the youth. The data collected through questionnaires was arranged in a tabular form and presented graphically for the purpose of effective study and in depth analysis and interpretation. Use of Cluster Analysis is done. Cluster analysis reduces the number of observations or cases by grouping them into a smaller set of clusters. A cluster is a group of relatively homogeneous cases or observations. Objects in a cluster are similar to each other. They are also dissimilar to objects outside the cluster, particularly objects in other clusters. Identifying their particular needs allows services to be designed with greater precision and direct appeal within the segment. Because I didnt know the number of groups or clusters that will emerge in my sample and because I wanted an optimum solution, a two stage sequence of analysis has occurred as follows: 1. I carried out a hierarchical cluster analysis using Average Linkage applying Euclidean Distance as the distance or similarity measure. This helped me to determine the optimum number of clusters. 2. The next stage was to return to hierarchical cluster analysis with the selected number of clusters, which enabled me to allocate every case in our sample to a particular cluster.

Hierarchical Cluster Analysis This is the major statistical method for finding relatively homogeneous clusters of cases based on measured characteristics. It starts with each case as a separate cluster, i.e. there are as many clusters as cases, and then combines the clusters sequentially, reducing the number of clusters at each step until only one cluster is left. Squared Euclidean Distance There are various measures to express similarity between pairs of objects. A straightforward way to access two objects proximity is by drawing a straight line between them. This type of distance is also referred to as Euclidean distance. The Euclidean Distance is the sum of the squared differences between corresponding values.

Average Linkage A number of clustering methods exist for forming groups of objects. The objective underlying each method is same- to assign objects to groups so that there will be as much similarity within groups and as much as dissimilarity between groups as possible. In Average Linkage method an object will join a cluster when the average of all similarities between the object and the members of the cluster surpass the given level for linkage to occur.

Agglomeration Schedule An agglomeration schedule gives information on the objects or cases being combined at each stage of a hierarchical clustering process. Coefficient shows the shortest Euclidean distance between them. Cluster First Appears signifies that none of these variables have been clustered previously. The value in the Next Stage indicates the next stage at which another case is combined with the first cluster. Thus in a way, the Agglomeration Schedule enables us to identify the distance at which the cases combine together. Icicle Plot Similar to agglomeration schedule, the formation of clusters at different stages is depicted through an icicle plot as it resembles a row of icicles hanging from eaves. With the rows of the icicle plot represent the stages involved in the formation of clusters; the column simply represents the cases that are being clustered. The icicle plot itself should be read from bottom to the top. Dendogram A dendrogram, or tree graph, is a graphical device for displaying clustering results. Vertical lines represent clusters that are joined together. The position of the line on the scale indicates the distances at which clusters were joined. The dendogram is read from left to right. The distance at which the cases are grouped or clustered at each stage is represented on a rescaled distance from 0 (indicating no distance) to 25 (indicating the highest distance along the top of the dendogram.

First a phone book of all the retailers in Madhya Pradesh, Chhattisgarh and Uttar Pradesh was created in Ways2 sms. With the help of Cluster Analysis, the responses from 200 retailers collected through questionnaire can be grouped into three clusters. The members of each cluster are decided with the help of Icicle Plot and Dendogram.

S.No 1.

Cluster Name Cluster A

Members 7,8,18,20,22,25,31,35,44,48,51,52

2.

Cluster B

12,16,30,36,46,55,59,86,97,88,90,92,126,136,137,141,146,148, 177,179,180,182,186

3.

Cluster C

Rest 165.

Cluster wise analysis Cluster A- Retailers belonging to this cluster are satisfied with the services provided by Freezo. That is they are satisfied with the dispatches, packaging, advertisements, quality, visits from sales executives and have never faced order shortage. But the number of satisfied retailers is very less that is only 12 out of 200 retailers is completely satisfied with Feezo.

6%

Satisfied Retailers Not Satisfied Retailers

94%

Cluster B- The retailers belonging to this cluster are not satisfied with the dispatches and advertisements. But are satisfied with quality, packaging, visits from sales executives and have never faced order shortage. Out of 188 unsatisfied retailers, 23 retailers feel that the dispatches and advertisements done should be improved. Most of these retailers complained about the boards and flex received from the company, and demanded for replacement.

Despatches & Advertisement

12%

Satisfied Retailers Not Satisfied Retailers

88%

Cluster C- The retailers containing the membership of this cluster are not satisfied with the visits of the sales executives of Freezo and often faces order shortage. Out of 200 retailers of Jabalpur surveyed, 165 retailers want Freezo to improve these two factors. They are satisfied with the quality, packaging, despatches and advertisements. Most of the retailers in this cluster complaint that they face order shortage during season and due to that they are forced to keep other brand ice creams like TopN Town.

Sales executives & Order shortage

17%

Satisfied retailers Not Satisfied Retailers

83%

Out of 200 retailers, 6% of the retailers are completely satisfied, 11% of the retailers are not satisfies with the despatches and advertisements and 83% of the retailers are not happy with the sales executives and face order shortage.

Retailer Satistics
6% 11% Satisfied Not Satisfied with despatches and advt Not Satisfied with sales exe and face ord. shortage 83%

It can been seen that all the 200 retailers are satisfied with the quality of Freezo ice cream and are happy with the packaging. Since a large percentage of retailers are not happy with the sales executives and often face order shortage Freezo should focus mainly on these two parameters. Due to the order shortage problem many retailers are staring to keep other brand ice cream, which will directly affect the sales of Freezo.

BIG SCOOP Freezo launched an ice cream lounge Big Scoop on 17 May 2012. The target audience for Big Scoop are the teenagers and the elite class. Menu Preparation 1. PRODUCT SELECTION For the opening of the lounge, first the items to be sold had to be decided. It was decided that along with the regular ice cream scoops, cones, bricks, and bars, other products like sodas, sundaes, smoothies, shakes and shooters will be sold in Big Scoop. For that I had to surf the internet and find pictures for shakes, sodas, sundaes, smoothies and shooter. The products were finalised keeping in mind the likings of different age groups, for example a sundae

named Happy Sundae was kept especially for the children. After the items were finalised, the next step was to name them. After naming about 32 items, I prepared write ups for each product. A separate menu for the tables was prepared which contains only these 32 items along with their write ups. For the Wall menu along with the 32 new items, 19 parlour scoops were selected. That is for the wall menu around 51 products were finalised. 2. PRICING After the products were finalised the next step was pricing the products. For that I sat with the manufactures and went through the cost involved with each final product. For parlour scoops the costing consisted of the cost of single and double ice cream scoop, the cups and the spoons. Above that a margin of more than 100% was kept as the targeted audience were the elite class. For example, a single scoop of vanilla cost Rs.8, but it was priced Rs.20. For products like soda, shakes, smoothies, sundaes and shooters the cost of all the ingredients like chocolate syrup, wafers, fruits etc. were taken into consideration along with the cost of crockery. For every price band ranging from Rs.60 to Rs.100 two or more than two products were made available. Even here the pricing was done keeping in mind more than 100% margin. For example, a sundae costing Rs.22 was priced at Rs.60. The product named Big Scoop special costing Rs.34 was priced at Rs.100.

Promotion

a) Business Tie-ups For the promotion of Big Scoop, I listed out around 50 showrooms for business tie-ups. After that I prepared a proposal stating that Freezo would provide discount coupons to the showroom owners which they can distribute among their customers on behalf of Freezo. After the proposal, a presentation was made which was to be presented to the showroom owners. Then appointments from all the 50 showroom managers were taken and according the presentation was presented by me and a marketing assistant. Out of 50 showrooms we were able to convince 42 showroom managers. We offered them that in response to our coupons they can keep their discount coupons at Big Scoop.

b) Radio Promotion For the on AIR promotion, a team of 6 members were chosen. For the promotion of Big Scoop, we had meetings with different Fm teams like teams from Radio Mirchi (98.3), Red Fm (93.5). Freezo went forward with Red Fm (93.5). For the promotion we along with Red Fm prepared an 11 days activity, for first 3 days it was only on Air promotions and for next 8 days it was on AIR as well as on Road promotion. ON AIR PROMOTION The on AIR promotion started from 17 May 2012. This segment consisted of 1. 20 promos each for 20 seconds. 2. 4 RJ mentions each for 45 seconds. 3. 4 OBs each for 60 seconds. The 20 promos were divided into the main 4 heads i.e. 1. Flavours- in this mainly the focus were on 7 new flavours. a. Punjabi kulfi- targeting 35+ age group b. Rajwadi kulfi- targeting 35+ age group c. Rocket candy- targeting children d. Pan-e-khas- targeting pan lovers e. Kesar bhog- targeting 35+ age group f. Pops- targeting children g. Strawberry candy- targeting children/girls. 2. Brand 3. Schemes

4. Big Scoop We provided messages to Red Fm, for each of the heads. Since we wanted creative promos we prepared some sample punch lines for each of the flavours. The 4 RJ mention was only for the Big Scoop. Even for that we prepared the messages to be delivered through Red FM. These RJ mention mainly covered the other products like shakes, sundaes, etc. The OBs were the consumer bytes which were recorded after the on ground activities. These were mainly fabricated. Similarly for this also we prepared the message.

ON GROUND PROMOTION The on ground promotions were scheduled for 5 hours per day for 8 days. The on ground promotion started from 20 May 2012. For the on ground activities first we decided the routes that we wanted to cover. Then accordingly a route map was prepared. 1. On 20 May 2012, Sunday, we along with the Red Fm organised a rock band at Big Scoop. 2. For next 5 days from 21 May 2012 to 25 May 2012, at morning colleges were covered and at evening places like chawpaties were covered. 3. For next 2 days i.e. 26 and 27 May 2012 some of the colonies were covered at morning and at evening the 2 malls were covered. For each area we prepared the list of events to be organised. Mainly these events consisted of games related to ice creams. Along with that free samples were distributed.

GIFTS The winners were given the discount coupons and some of them received goodie bags from Freezo. This goodie bag consisted of 1. 2. 3. 4. T- Shirts with Big Scoop logo on it. Caps Discount coupons Freezo sauces.

5. Conclusion & Recommendation

From Retailer Survey From the survey conducted it was found that only 6% of the retailers were satisfied with the product and services offered by Freezo, be it after sales service, on time delivery etc. All the 200 retailers in Jabalpur were satisfied with the quality and packaging of the products.

83% retailers had problems with the after sales service provided by Freezo.

Many of the retailers would suggest Freezo to customer mainly because it is made from real milk and is healthy a compared to frozen dessert. Secondly it is cheap and thirdly they want to stay loyal to the brand of ice cream they kep in rheir store.

From Launching of Big Scoop Promotions helped increase the awareness about the lounge and the new product line among the targeted customers. Due to aggressive marketing, walk-ins in Big Scoop increased.

The concept of Big Scoop was liked by majority of consumers.

Since maximum retailers complaint about the sales executives and order shortage, Freezo should take these complaints seriously and should try to solve these problems. The recommendations for the company for further growth and profit are as follows: 1. Sales executives should frequently visit the retailers, in order that there is proper receipt of complaints and quickly solution is also provided. 2. Freezo should provide proper training to all its employees and concentrate on improving the after sales service.

3. Many retailers complain that once the Freezos Flex has been installed, not even a single person from the company comes forward to address the grievances of the retailers, in case any problem happens with the flex. Hence, Freezo should conduct regular visits to the retailers and try to resolve their grievances. 4. If there are any changes in the price list or the posters, the changed price list and other posters should be delivered to the retailer as soon as possible.

5. Freezo needs to strengthen its supply chain management so that there are no problems in the distribution network of Freezo. 6. Sales promotional activities like game shows, contests etc should be continued. 7. Brand upliftment of Freezo ice cream is the need of the day. For this Freezo should publicise itself through better Tv Ads and advertising through electronic media like Internet, Mobile, FM channels etc. 8. Freezo must introduce tricycles at strategic traffic points and at public places. This will not only increase sales but also increase Feezos Visibility.

6. Contribution

The survey helped Freezo to 1. Identify the problems faced by their Retailers. 2. Identify different segments of retailers with specific problems. 3. Increase the brand loyalty among Retailers. The survey made Retailers feel secured and satisfied as they felt that the company is taking initiatives to resolve their grievances.

Big Scoop 1. The menu prepared and the names given to different products helped the company to attract the target customers. 2. I convinced 42 showroom managers out of 50 chosen showrooms to keep the magic envelope containing the discount coupons of Big Scoop. 3. The events organised at different places helped in increasing the walk-ins. 4. The on AIR promotions helped creating the awareness among the targeted group.

7. Learning from SIP

An internship is a professional learning experience, in which students can apply their skills and knowledge in a professional way. Internships offer a realistic work preview and provide practical, supervised learning experience. The Summer Internship Programmed helped me to: 1. Understand the practical aspects of marketing, sales and distribution. 2. Increase my proficiency in marketability. 3. Understand event management and promotion. 4. Sharpen my Team Skills. 5. Develop confidence, assertiveness, and decision-making abilities. 6. Apply whatever I have witness in classroom or during training in real world situations. 7. Justify my career choices. 8. Gain skills relevant to the job and industry within which I want to work in later years. 9. Build a network of contacts within my career field and industry. 10. Achieve a competitive advantage in the interviewing process. 11. Gain work experience and develop professional competence. 12. Improve specific skills such as communication, problem solving, teamwork, computer applications, interpersonal skills and presentation skills.

8. References
Websites: 1. www.amulicecream.in 2. www.kwalitygroup.com 3. vadilalicecreams.com 4. dinshaw.tradeindia.com 5. www.topntown.com 6. www.indiatimes.com

Books: 1. Philip Kotler, Marketing Management 2. Churchill, Marketing Research

9. Appendix

9.1 Questionnaire

Name: Place: 1. Do you keep brands other than Freezo? a) Yes b) No 2. Are you satisfied with the despatches of Freezo Ice Cream? a) Yes b) No 3. Are you satisfied with the packaging of Freezo Ice Cream? a) Yes b) No 4. Are you satisfied with the number of times Sales Executives visits? a) Yes b) No

5. Are you satisfied with the quality of Freezo ice cream? a) Yes b) No

6. Are you satisfied with the amount of Freezos advertisement? a) Yes b) No

7. Do you face order shortage of Freezo ice creams? a) Yes b) No

8. Any Comments

9.2 Outcomes

9.3 Competitors Comparison

9.4 Menu

SMOOTIES
Enjoy the thickness and smoothness in the blend of natures lavish of fruits and milk, topped with pieces of fresh fruits. With each sip, endure the freshness within you.

SODAS
A shocking fizzy surprise in the beginning, and as you swallow it tastes like an ice cream shake. Do not drink it too fast or you will miss the taste of the creamy shake.

SHAKES
Shake up your mood by grasping a hold of the frosty cold glass filled with the velvet creamy mass and the smell that compliments your aroma senses.

SHOOTERS
Sooth your mind with medley of its own kind The trick is to drink all of it through the straw in one shot.

SUNDAE
Strawberry Simplicity
Strawberry Ice Cream decorated with red ribbons of strawberry syrup topped with fresh whipped cream, fresh strawberries and almonds.

Fruit de-Frosty
Vanilla Ice Cream as the canvas covered with fresh colorful fruits and topped with vanilla syrup, kesar syrup and fresh whipped cream.

Chocolate Extraordinaire
Vanilla Ice cream laced with yummy chocolate syrup, garnished with chocolate shreds and all dressed up with chocolate sticks.

Pineapple Peace
Peace for Pineapple lovers.Vanilla Ice Cream topped with abundance of pineapple syrup and pineapple pieces.

Honey Hug
Vanilla Ice Cream and Kesar Pista Ice Cream all covered with sweetness of honey syrup, topped with almond and cherry pieces.

Green Apple Avalanche

A delicious combination of vanilla ice cream drowned in the avalanche of green apple syrup, blended with fresh cream, wafer and cherry on top.

Pina Lemon Love

Luscious Pina Lemon Ice Cream meshed with pina lemon syrup and ornamented with vanilla softy ice cream, cherry and wafer.

Violet N Cream Swirl

An exquisite combo of black currant ice cream and black currant syrup, topped by swirl of fresh cream.

Dry Fruit Dew

Vanilla Ice Cream mingles with the charming chocolate syrup and dry fruits sprinkled above to light up the party.

Happy Sundae
A cute happy smiley made of Vanilla Ice Cream, beautifully garnished with chocolate syrup, chocolate chips, wafer and cherry to cheer you up

Brownie Bliss
A blissful combo of Vanilla Ice Cream smoothly nested upon crisp and chocolaty Brownie, embroidered with the chocolate syrup and garnished with chocolate shreds and juicy strawberry.

Big Scoop Special

Tryst of creamy vanilla and soothing chocolate ice creams huddled together gracefully in the middle of wafer bowl topped with fresh cream and garnished with vivid fruits.

9.3 Proposal

To, . Subject: Proposal for business tie up. Sir/Madam, Freezo has been into manufacturing of ice cream for nearly last two decades. Patronage offered by all our valuable customers, distributors and dealers has force us to come up with a new concept of serving and satisfying our customers. After accepting the mass verdict of our valuable clients we have launched,

BIG SCOOP
Sashtri Bridge Square. The first state of art ice cream lounge in Jabalpur.

As your goodwill into your field we want to share a deal in which you can provide privilege to your valuable customers by providing discount coupons without any cost. We are forwarding . magic envelopes containing the discount coupon with a request to distribute the coupons to your valuable customers by putting your seal and your sign. Regards, Freezo Ice Cream.