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Franchise Strategy & Feasibility Study of Amul Scooping Parlours

FRANCHISE STRATEGY & FEASIBILITY


STUDY OF AMUL SCOOPING PARLOURS
Summer Project Report

Submitted in partial fulfillment of the requirements


For

Masters Of Management Studies

(2012-2014)

SUBMITTED BY

Rohit Kamble

Roll No. (M-12-23)

IES Management College and Research Centre,


Bandra, Mumbai

Page | 1

IES Management College and Research Centre


Bandra, Mumbai
MAY JUNE 2013

Students Declaration

I hereby declare that this report, submitted in partial fulfillment of the requirement for the
award for the Masters of Management Studies, to IES Management College and Research
Centre is my original work and not used anywhere for award of any degree or diploma or
fellowship or for similar titles or prizes.

I further certify that without any objection or condition subject to the permission of the
company where I did my summer project, I grant the rights to IES Management College
and Research Centre to publish any part of the project if they deem fit in
journals/Magazines and newspapers etc without my permission.

Place : Mumbai

Date

----------------------------Signature
Name

: Rohit Kamble

Class

: MMS 2012-14

Roll No. : M-12-23

Acknowledgements
I would like to take this opportunity to thank all the people who have extended their
support and guidance for making this project, an enriching and memorable experience for
me.

I would like to express my sincere gratitude towards my industry guide Mr. Sameer
Nagle, Regional Manager, GCMMF for giving proper direction and helping at every
stage of my project. His timely co-operation and valuable suggestions helped me to
understand the subject well and undertake the proposed study in fulfilling manner.

Also, I wish to express my gratitude to Mr. Harsh Thakar (Executive Sales)


for their co-operation & knowledge sharing during field survey in South Mumbai region.

I thank Dr. Dinesh Hareolekar, Director and IES MCRC for giving me such a
wonderful opportunity.

I am deeply indebted to my project guide Prof. Ajay Kulkarni, for directing me,
providing clarity, information and guidelines. His suggestions have always valued to
each stage of these project.

Lastly I would like to thank executives working in the various Department of the
organization for their timely help and support in completing the project. Last but not the
least; I would like to take this opportunity to thank all those who contributed directly
and indirectly through suggestions, thoughts and their presence during the completion of
the project.

Thank-you

Rohit Kamble

TABLE OF CONTENTS

CONTENTS

PAGE NO.
Chapter I

1.1 Executive Summary

1.2 Introduction to the Industry

1.3 Introduction to the Company

1.4 Introduction to the Project

15
Chapter II

2.1 Objectives

17

2.2 Methodology

18

2.3 Sampling Design and Sample Size

19

2.5 Limitations to the Project

21
Chapter III

3.1 Findings from Observational Field Study


3.2 Analysis & Findings : Consumer Perspective
3.3 Analysis & Findings : Franchisee Perspective

23
25
31

Chapter IV
4.1 Conclusion

51

4.2 Observation and Suggestions

54

4.3 Recommendations

58

4.4 References and Bibliography

59

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Chapter I

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

1.1 Executive Summary


The ice-cream market in India is estimated at approximately Rs. 2500 crore in 201213. Growing at approximately 15-20 per cent, it is expected to cross $900 million by
2014-15. The industry also marks the presence of unbranded market for the frozen
dessert which is currently valued at Rs 800 crore. The branded market is estimated at
approximately $200 million and is growing at 20-25 per cent.North and west are the
highest consumption centers accounting for close to 70 per cent of the market.
Increasing incomes, a burgeoning middle class, buoyant economy and widening of
outlook contributes in making ice-cream more affordable and acceptable among
Indian masses.

The key trends are:


Increasing presence of international brands driving consumption in metros
and mini-metros.

Availability of multiple options to consumers from ice-creams to


traditional kulfis to new forms such as gelatos and flavored yoghurts.

Growing trend of going out to eat ice-cream.

With increasing health consciousness especially among young urban


population, higher focus on fat free, low sugar and pro-biotic variants.

Reducing impact of seasonality on consumption.

Many players ready to increase presence with aggressive expansion plans.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Growing focus on smaller and profitable formats. With a per capita


consumption of only 0.30 litres in a year, ice cream in India has currently not
realised its full potential.
The first phase of the project aimed at enhancing sales of Amuls frozen yogurt and
its promotion. In order to execute the same, initial activities included visiting the retail
outlets, recording the existing volume of sales & analyzing the emerging patterns in
ice-cream consumption. This helped in arriving at important conclusions regarding
which flavors were popular, problems faced by the retailers, points of contention
between the retailers & distributors, issues encountered by the consumers and which
outlets were the most popular. Following this, strategies were devised in order to
carry out the 1st part of the project.

The key areas identified were as follows Increasing the sales at the existing outlets by implementing extensive
branding and promotion.
Converting the competitors outlets to start stocking & selling Amul products.
Confronting problems between retailers and distributors.
The second phase was conducting the feasibility study of Amul scooping parlours and
the strategies adopted by the franchise to enhance sales. The study also consists of
comparative study of the markets players in ice cream parlour segments which is
growing at a rapid pace.

The study helped us to understand Brand perception


Consumer behavior towards particular ice cream parlours
Pricing strategies in scooping parlours through understanding customer values
How to differentiate your product
Occasional offers to entice the customer

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Promotional strategies
Amuls position in market against its competitors

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

1.2 Introduction to Industry


India is considered to be the largest milk producer across the globe and accounts for
onefifth of the total global milk production. It constitutes of different sub segments of
which ice cream has seen strong growth in the market. The Indian ice cream
sector is a competitive market with strong competition from the unorganized sector. At a
time when input prices are rising and branded players are forced to increase prices of
their products, unorganized or local players indulge in low quality ingredients and
offer products at cheaper prices. However, the sector is still on a growth path as
constant innovation presents products catering to the varied needs of customers.

The Indian Ice Cream Industry: An Overview


The Indian ice cream industry is currently estimated to be worth Rs. 2,500 crore,
growing at a rate of approximately 12-15%. The ice cream market in India can be
divided into: the branded market and the grey market. The branded market at present is
120 million litres per annum valued at Rs. 1350 crore. The grey market consists of small
local players and cottage industry players. Despite a decent growth rate, the ice cream
industry faces the challenge of low per capita consumption.

India has a per capita ice cream consumption of 300 ml per annum, as against the world
average of 2.3 litres per annum. Country wise the annual consumption is 23 litres in the
US, 18 litres in Australia, 14 litres in Sweden and this is too when 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 in its mix. Ice cream
always competes against these for attention. Besides desserts, ice cream also vies for
attention with other like foods for example in summers with cold drinks, coffee, juice,
etc.

Another trend that is witnessing a change is the seasonal nature of the industry. Having
said that, the peak season for ice cream still remains the summer months of April-June
and dips in the months of November-February. According to the industry players, this

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

trend especially holds true for the North and the Western parts of India.

The Ice Cream Business


The ice cream industry has traditionally grown at a healthy rate of 12-15% year-on-year.
The growth in Ice cream industry 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 to reach out to a larger set of consumers. Besides,
consumers also have the choice of trying out varied product offerings from different
brands to keep them excited.
What exactly is defined as ice cream under the guidelines?
The Prevention of Food Adulteration (PFA) Rules, 1955 define ice cream as a frozen
product that contains not less than 10% milk fat, 3.5% protein, 36.0% total solids, and
0.5% permitted stabilizer and emulsifier.

Players who deviate from these norms

tactfully call their product "frozen dessert. However, it is illegal to sell ice cream
which has contents below these specified standards.

The basic steps in the manufacturing of ice cream are generally, blending the ingredients,
pasteurization, homogenization, aging the mix, freezing, and hardening. 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
like 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.

An ice cream mix (consisting of milk, emulsifier, and sugar and so on) costs about Rs.
60-65 a litre. And in one litre you can add up to one litre of air. Therefore, per litre the
mix would cost you approximately Rs 32. If you take a 150 ml cup, you can make 13
cups of ice cream from one litre of mixture. Calculating on that basis, the cost per cup
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 per cup.
Depending on the variety, the profit margin therefore can go up to even 100%. While for

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

bigger players, the distribution and advertising costs eats into the profit margins, for
smaller players, it is the volumes that matter.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

The cost for setting up a small scale ice cream plant could come to approximately Rs. 10
Lakh, including the cost of an ice cream plant, labour (3-4), storage freezers, and so on.
This price is not including the land cost. Of late, a number of players who have entered
the segment are playing on innovative aspects, for example, natural flavours made from
fruits. Some players like Mumbai-based Space Dotz are also coming up with newer
technology. A noteworthy innovation was the pro-biotic and low fat ice cream bought
into the market by Amul.
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 like foods. Though
changing, consumers still consider ice cream as a dessert and a side item.
Moreover, of the ice cream consumption in 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 big players, regional competition from smaller
players is another major issue.
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. This is especially true for big players.
Besides the presence of other players, another hurdle is the high rent charged for floor
space, especially in malls. This also becomes a problem when they try to expand.

Major Players in the Industry


The Indian Ice cream sector, as mentioned earlier, is divided into branded segment and
grey market segment (which are basically local manufacturers).
Considering the branded segment, the market is dominated by companies like Amul
(GCMMF), Kwality Walls (HUL), Vadilal, Mother Dairy, Cream Bell and other
branded local manufacturers.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

The following Chart Show the picture of their market share.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

1.3 Introduction to the Company


Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) is India's largest food
product marketing organisation with annual turnover (2011-12) US$ 2.5 billion. Its daily
milk procurement is approx 13 million lit (peak period) per day from 16,117 village milk
cooperative

societies,

17

member

unions

covering

24

districts,

and

3.18

million milk producer members.

It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known


as 'AMUL', which aims to provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good value for money. Its
success has not only been emulated in India but serves as a model for rest of the World. It
is exclusive marketing organisation of 'Amul' and 'Sagar' branded products. It operates
through 47 Sales Offices and has a dealer network of 5000 dealers and 10 lakh retailers,
one of the largest such networks in India. Its product range comprises milk, milk powder,
health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and
traditional Indian sweets; etc

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading
House" status. Many of our products are available in USA, Gulf Countries, Singapore,
The Philippines, Japan, China and Australia. GCMMF has received the APEDA Award
from Government of India for Excellence in Dairy Product Exports for the last 13 years.
For the year 2009-10, GCMMF has been awarded "Golden Trophy' for its outstanding
export performance and contribution in dairy products sector by APEDA.

For its consistent adherence to quality, customer focus and dependability, GCMMF has
received numerous awards and accolades over the years. It received the Rajiv Gandhi
National Quality Award in1999 in Best of All Category. In 2002 GCMMF bagged
India's Most Respected Company Award instituted by Business World. In 2003, it was
awarded the IMC Ramkrishna Bajaj National Quality Award - 2003 for adopting
noteworthy quality management practices for logistics and procurement.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

GCMMF is the first and only Indian organisation to win topmost International Dairy
Federation

Marketing

Award

for

probiotic

ice

cream

launch

in

2007.

The Amul brand is not only a product, but also a movement. It is in one way, the
representation of the economic freedom of farmers. It has given farmers the courage to
dream, to hope, to live.
Amul Advertising
In 1966, Amul hired Sylvester daCunha, then managing director of the advertising
agency AS to design a new ad campaign for Amul Butter. Sylvester daCunha
designed an ad campaign as series of hoardings with topical ads, relating to day-today issues. The campaign was widely popular and earned a Guinness world
record for the longest running ad campaign in the world.

Amul Mascot
The secret weapon is to Amuls success is The Amul Mascot, a
cute and chubby girl usually dressed in a polka dot dress,
universally recognizable in India. And the tagline,- Utterly
Butterly Delicious Amul is just as catchy. Together, these two
elements are a Fantastic combination of brand elements for Amul.
The Amul girl was the brainchild of Sylvester daCunha. And get
this, the Amul mascot has been the same since its inception in
1967. Thats almost 45 years ago. But the Amul girl is still as relevant as ever.
The Beginning
The seeds of this unusual saga were sown more than 65 years back in Anand, a small
town in the state of Gujarat in western India. The exploitative trade practices followed by
the local trade cartel triggered off the cooperative movement. Angered by unfair and
manipulative practices followed by the trade, the farmers of the district approached the
great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to get rid of
middlemen and form their own co-operative, which would have procurement, processing
and marketing under their control.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the
cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji
Desai and Tribhuvandas Patel, they formed their own cooperative in 1946.

This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with
just two village dairy co-operative societies and 247 litres of milk and is today better
known as Amul Dairy. Amul grew from strength to strength thanks to the inspired
leadership of Tribhuvandas Patel, the founder Chairman and the committed
professionalism of Dr. Verghese Kurien, who was entrusted the task of running the dairy
from 1950.

The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach
should become the basis of a National Dairy Development policy. He understood that the
success of Amul could be attributed to four important factors. The farmers owned the
dairy, their elected representatives managed the village societies and the district union as
they employed professionals to operate the dairy and manage its business. Most
importantly, the co-operatives were sensitive to the needs of farmers and responsive to
their demands.

At his instance in 1965 the National Dairy Development Board was set up with the basic
objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as
its Chairman and asked to replicate this model throughout the country.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

GCMMF Overview

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

The Product Range

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Amul Ice cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted
of impulse products like sticks, cones, cups as well as take home packs and
institutional/catering packs. Amul ice cream was launched on the platform of Real Milk.
Real Ice cream given that it is a milk company and the wholesomeness of its products
gives it a competitive advantage.
In 1997, Amul Ice creams entered Mumbai followed by Chennai in 1998 and Kolkata
and Delhi in 2002. Nationally it was rolled out across the country in 1999.
It has combated competition like Walls, Mother Dairy and achieved the No 1 position in
the country. This position was achieved in 2001 and it has continued to remain at the top.
Today the market share of Amul ice cream is 40% share against the 14% market share of
HUL, thus making it 3 times larger than its closest competitor.
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 220 products. Amul has always
brought

newness

in

its

products

and

the

same

applies

for

ice

creams.

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 & ProLife Probiotic Wellness Ice Cream is created for the health conscious.
Amuls entry into ice creams is regarded as successful due to the large market share it
was able to capture within a short period of time - due to price differential, quality of
products and of course the brand name.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Cone

120 ml, 100ml, 80 ml & 50 ml

Cup

Cup 125 ml, 100 ml, 80 ml, 90 ml &


40 ml

Plastic
Container

liter, 750 ml, 500 ml, 125 ml, 100


ml, 80 ml & 60 ml

Stick

70 ml, 60 ml, 40 ml

Take Home

Bulk / catering packs (5 liter, 4 liter),


take home packs (2.2 liter, 1.5 liter,
1.25 liter, 1 liter),
combo packs (750 ml+750ml Free)
and family packs (500 ml, 250 ml)

DISTRIBUTION NETWORK:
Amul have efficient distribution network. It follows downstream channel of
distribution.

Establishment of a direct linkage between milk producers and consumers by


eliminating middlemen

Milk Producers (farmers) control procurement, processing and marketing

Professional management

In Mumbai, Amul has its warehouse in Andheri. From warehouse stock goes
to different distributors. And then distributor supplies stocks to retailers,
caterers, hotels etc., and then finally stock reaches to the end consumer.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

1.4 Introduction to the Project


Students of IES Management College and Research Centre were appointed as Summer
Interns by Amul India (GCMMF). The summer project was divided into two parts, first
being the Observational Field Study and a primary Research Project being the latter.
The Observational Field Study included market visits where students were given
exposure to the real time market situation which accounted for Amuls distribution
network. Groups of students were assigned different distributor centres of ice-cream
division along with one Sales Officer to conduct daily market visits. The Market visits
lasted for 20 days since joining, where students were asked to observe and study the
market from the retailer's and consumer's perspective. This study also required the
students to promote and create awareness amongst retailers in the distribution network
about the new product launched named Flaavyo under the frozen yoghurt category.
This part of the project also accounted for receiving feedback from retailers regarding the
general Ice-creams and related services to ensure smooth functioning of the orders
during the peak season.
Apart from this, the latter part of the project consisted of a Primary Research held to
know the Franchise strategy and feasibility study of Amul scooping parlours. This study
was conducted by gathering first hand information from various Amul scooping

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

parlours as well as competitors scooping parlours that would generate information


regarding the strategies used by various franchises in order to increase the footfalls of
the customers. The project outlines the findings and proposes recommendations in-order
to improve the sales and awareness of the product. The Primary research is
accompanied with a secondary research with regards various strategies adopted by the
franchise's to market the ice-cream and . Further to this, the entire project is a blend of
on-the- job experience of Amul's distribution strategies and marketing activities.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Chapter II

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

2.1 Objectives

Observational Market Study:


To introduce Amul's newly launched frozen yoghurt named Flaavyo to the
existing and potential retailers which form the distribution network for Amul while
educating them for the same. In addition, promoting the sales for this frozen
yoghurt along with the general ice-cream products from Amuls ice-cream basket and
study/observe

the

buying

behaviour

of

consumers

and

retailers

while

buying/ordering ice-creams.
To study the franchise strategies and feasibility studies of Amul scooping parlours and to
analyse the strategies and schemes being used by the competitors in order to increase the
footfalls of the customers.
Besides, it was the season for peak sales of ice creams, so it was important to analyse the
sales activity for all the products from Amul"s ice cream basket and to find out the issues
that the retailers and the franchisee were facing.
To fulfil this objective of observational market study, it was required to interact with the
franchisee as well as the competitors while the sales and distribution activity was in
progress as well as to have a shrewd observation of franchisee behaviour at the same
time.
Primary Research Project:
To find out the Franchise strategies and feasibility study of Amul scooping parlours so as to
design strategies for their penetration in the market.
To study the marketing strategies of the Amul Ice Cream Company.
To study the various products and their prices.
To study the various plans and schemes.
To study the preference of those factors which are considerable by the Customer.
To analyze the satisfaction level of the customer.
To analyze the market share of Amul Ice Cream Company.
To show the coverage area of Amul Ice Cream Company.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

2.2 Methodology
Observational Market Study:
The observational market study included personal visits to the local retailers and the ice
cream parlours which were accompanied by Amuls sale representative for the initial few
days. For the introduction of Amul Flaavyo, retailers were told about the benefits of
the product and the futuristic potential of Probiotic products.
Retailers were questioned regarding the consumer response to all the general category
ice creams and especially about Amul Flaavyo.
Franchisees were asked regarding the various strategies and schemes which they have
been carrying out in their respective scooping parlours in order to attract customers so as
to increase the sales.

The interaction with these franchisees as well as the retailers served as a great resource to
know about the present issues of the market. Apart from that the market conditions
were observed through personal point of view.

Primary Market Research:

For carrying out this primary market research, two questionnaires were designed, both of
which covered all the aspects needed to complete the exhaustive market study.
One questionnaire was especially designed from Consumers point of view, whereas the
other one covered Franchisees perspective.
In this project a research is conducted on the ICE-CREAM PARLOURS on the basis
of to know the parlours being preferred and the taste according to the price. The team
visited local markets, shopping malls and ice cream parlours etc. to collect the data from
consumers on personal level.
In order to interact with the retailers, the team personally visited local retail shop and ice

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

cream parlours owners in western, central and harbour regions of Mumbai.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

2.3 Sampling Design and Sample Size

Sampling methods are classified as either probability or no probability. In probability


samples, each member of the population has a known non zero probability of being
selected. Probability methods include random sampling, systematic sampling, and
stratified sampling. In no probability sampling, members are selected from the
population in some non random manner. These include convenience sampling,
judgment sampling, quota sampling and snowball sampling.

The sampling method used for this project is random sampling method where each
member of the population had an equal chance of being chosen. Though the sampling
was done using random samples, three major areas in Mumbai (Central, Western and
Harbour) were chosen from where the responses were collected. This division of region
constituted three different strata in terms of region. As per this division of regions, an
almost equal number of responses were collected from each region.

RESEARCH SAMPLE DESIGN

Q.1) What is the Research Study about?


ICE-CREAM PARLOURS

Q.2) Why is the study being made?


The study is being made to investigate taste preference, ice-cream parlours
brand and consumer behavior while consuming the ice-cream, across Mumbai.

Q.3) Where will the study be carried out?


The survey was carried out at Ice-cream parlours in south Mumbai

Q.4) What type of data is required?


Primary as well as secondary data was used for the research.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Q.5) Where can the data required be found?


Primary data was found by taking surveys and observation.
Secondary data was found through Internet research.

Q.6) what will be the sampling design?


Random Sampling Method.

Q.7) How will the data be analyzed?


The data will be analyzed using frequencies and spss.

Q.8) In what style will the report be prepared?


Analytic and Descriptive.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

2.4 Limitations to the Project


Observational Field Study
The findings are majorly based on personal observation and hence there is a possibility
of biased analysis which is subjective in nature.

Primary Market Research


Region: Since the area under primary research was Mumbai Metropolitan city, therefore
the findings should not be considered as a representation of the entire population and the
diverse geographical factors in India.
Sample size: The sample size of 100 consumers and 15 Franchisees is relatively small
and all the findings are based on this size, as a result all conclusions made and
suggestions recommended are strictly based on the responses of the above mentioned
sample size.
Unequal demographics: The majority of the respondents belonged to the age group of
20 to 30 and hence findings are mostly limited to the same age group.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Chapter III

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

3.1 Findings from Observational Field Study


General Ice Cream Category
Lack of stock: The ice creams which had huge demand in market were mostly
out of stock and because of that retailers were unsatisfied as the peak season was
on.
Pilferage in delivery: Sometimes, the cartons delivered to retailers contained
fewer units as compared to the standard quantity. Some packets were
without any ice-creams inside.
Lack of marketing collaterals: Marketing collaterals like banners, menu
cards, danglers, refrigerator stickers were not made available to retailers
because of which the publicity of ice creams was limited only to the brand name
of Amul.

Lack of personal touch on the part of distributor: Issues of retailers


were not handled personally (and seriously too) by the distributor and hence
repeat orders were difficult to get.

Strong competitors: Direct competitors like Kwality-Walls, Vadilal, Mother


Dairy, and Freshna are focusing on the areas where Amul is lacking to an extent.
For instance:
Heavy advertisement: Almost every alternate retail outlet has posters
displaying Kwality-walls and Mother Dairy products.
Prompt delivery: Product delivery of Kwality-walls and Freshna is
made available within few hours after the order is taken.
Collaterals: Competitors like Mother Dairy are prompt at providing
collaterals like refrigerators etc. thereby enabling retailers to buy their
products.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Local Substitutes: In low-standard-of-living areas cheaper substitutes like


Flavoured Soda (Rs. 5) were preferred by consumers.

Lack of awareness in variety of products: Retailers themselves do not know


which flavours and varieties of ice creams were provided by Amul. (Few
instances were observed).
Commitments not honoured: It was observed that the distributor promises
the retailers, however does not honour commitments. As a reason the retailers
lose trust in the distributor.
Damaged/expired products not replaced: The damaged and expired products
were not replaced by the distributor, despite several requests from the retailers.
Order Tracking System: As observed in the market, Kwality Wall's uses
palmtops to note down the orders and to track the salesman.
Amul Flaavyo
Premium Pricing: According to many retailers, the pricing for Flaavyo (Rs. 25) is
high and because of that consumers prefer other cheaper options. (This behaviour
was observed especially in low standard of living areas, such as chawls.)
Lack of Awareness: Both retailers and consumers were not aware about Flaavyo.
The special publicity devices used for its promotion came very late in the market.
Delivery Issues: The orders taken by the salesman were not delivered by the
distributor on time and because of which it was very difficult to get repeat orders
as the retailers were furious about it.
Brand Name Conflict: The name and design of both Yoghurt and Frozen Yoghurt
that Amul produces are same which causes confusion amongst both retailers and

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

consumers.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

3.2 Analysis and findings: Consumer Perspective


A questionnaire consists of list of questions to be asked from the respondents and the
space provided to record the answer / responses. Questionnaire can be used for the
personal interviews, focus groups, mails and telephonic interviews. The choice among
these 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 varieties of the questionnaire method is this reliance on
verbal responses to question, written or oral.
Questionnaire in the project consists of:
1. Multiple choice questions
2. Dicthomus

Multiple choice questions


Questions of this type offer the respondents an alternative to choose the right answer
among others. It is faster, time saving and less biased. It also simplifies the tabulating
process.

Open end questions


In this type respondents are free to answer in their own words and express the ideas
they think are relevant, such questions are good as first questions or opening
questions. They introduce the subject and obtain general reaction.

Dicthomus
These are the questions which are Boolean in nature. These answers are
straightforward and respondents have to answer them in a straight way. That means
the answer can only be either Yes or No.

Data source: Primary and Secondary data


Methodology: Exploratory Method
Research Instruments: Questionnaires and direct interviews

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Research Approach: Surveys

Using these instruments and keeping my first phase objective in mind I ran a
preliminary run of my questionnaire with around 50 people from different age
groups in general.

THE QUESTIONAIRE AND RESPECTIVE FINDINGS

1. Gender (Male/Female)

Gender
32%
Male
68%

2. Age Group

Female

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

25
Under 15

20

15-24

15

25-35
10

36-50

above 50

0
Under 15

15-24

25-35

36-50

above 50

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

3. Occupation
Student, writer, Manager, Sales Software Engineer, Engineer, Software , Engineer it,
Engineer, Business, IT Engineer, , MBA Student, engineer.

Inference:
Most of the respondents are above the age of 50 hence our conclusion till now would be
really narrow.

4. What would you prefer in sweets?

12%

ICE-CREAMS
INDIAN SWEETS

88%

5. How much are you willing to spend on an ice cream?

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

20
18

38

16
14
Rs. 0-50

12
10

24

22

Rs. 50-100

Rs. 100-200
16

6
4
2
0
Rs. 0-50

Rs. 50-100

Rs. 100-200 Rs. Above 200

Rs. Above 200

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

6. How often do you consume ice cream?

Rarely

20

Once a week

24

2 to 5 times a week
14

Everyday

36

Mostly in Summers
0

10

15

20

Inference:
Well clearly the above graph brings out the obvious thing which is that people
generally like to have ice creams in the summer. But along with that irrespective of
the season the consumption happens atleast once a week which is very prominent.

7. When you buy your ice creams which character do you care mostly?

54

30
20

22

16

10
4

S
Price

Brand

Flavor
Nutrition

Style

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

8. Which Ice cream Parlour do you visit to have Ice Cream?

Baskin Robbins
Naturals
Amul
Ice CreamWorks
Swirls
Hokey Pokey
Gelato italiano
Others

16
36
26
8
4
0
2
8

20
36
15
26
10
16

Series1

8
4

0
Baskin Naturals Amul
Robbins

Ice
Cream
Works

Swirls

2
0
Hokey Gelato Others
Pokey italiano

9. Have you Heard or Tasted Amul Frozen Yogurt Flavayo ?

Yes

88

No

12

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

11. Where do you generally prefer to consume ice creams?

Other

22

Outdoors (road side vendors)


16

Home

52

Ice cream parlor


10

Restaurant
0

10

15

20

25

30

Inference:
Ice cream parlor is the first place which comes to the youths now days when they
think of relishing on their favorite ice creams. The next close place would be outside
probably roaming around and picking up their favorite deserts.

Interacting with customer is the best way to know to understand product image in
customers mind.
For Amuls frozen yogurt Flaavyo target customers are Upper middle class. Yogurt is
new concept for Indian consumer but as customers are becoming more health
conscious market for frozen yogurt is going to grow. Estimation is that it would
expand the market by increasing customer base. Essentially, it would not only convert
non-consumers of ice-cream but also increase the frequency of ice-cream eating.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

3.3 Analysis and findings: Franchisee Perspective

An investment in buying a big franchise cannot guarantee the success or failure of any
franchise and neither can the franchisor ever assure the success of franchising
business outlets. In such circumstances selecting a franchise becomes tough. Investing
all your money in buying a big franchise is more of a risk as compared to buying a
low-cost franchise.
Franchised operations in India are increasing by the day. Being geographically vast
and culturally diverse, India offers the most favorable franchising environment. While
companies benefit by having many profit making outlets in different parts of the
country, franchisees in India benefit by being able to generate good returns with little
investment and risk involved. Entrepreneurs are making the most of Indias
franchising market and growing economy by becoming successful franchisees
In the present business scenario, franchising is considered a boon to struggling
entrepreneurs. Kiosks are a type of small centre to sell something or to facilitate the
public at one point. , having a semi-permanent fixture and are generally present within
a larger establishment such as a mall, departmental store etc. The structure of a kiosk
could be designed as a standalone structure like a terminal, or a semi-enclosed booth.
It offers a wide variety along with the advantage of low investment.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Ice-cream kiosks are yet another popular category which is doing wonders in
franchising. Most of the major players in this category have adopted kiosks and
cartwheel formats due to their rising popularity. Kwality Walls, Baskin Robbins,
Vadilal, Amul etc are the main names in this category.

Amul has two formats under which it sells its Ice cream products: Amul Preferred outlet (APO)
Amul Scooping ice-cream outlets.
Now the question arise why franchise?
Promoting the brand visibility
Developing direct contact with our customers
Enhancing profits

So to keeping up the latest trend so that one can enjoy ice cream in a cozy and nice
ambience Amul has started Ice Cream Scooping Parlours across the country. Amul
scooping parlours are well received by the customers and are doing upbeat business.
Its fun time for the entire family.
Some of the recipes on offer at these Parlours are:
Simply Delicious Ice Cream Scoops
Double and Triple Sundaes
Double Swirl/Magic Swirl
Thick Shakes
Amul Kool Drinks

The recipes on offer at these Scooping Parlours are designed by Amul. The maximum
retail price of the products is pre-determined by Amul. The disposables and
consumables are also standardized by Amul and supplied by parties approved by
Amul.
Amul now offers an excellent business opportunity to entrepreneurs who can become
franchisees of the Amul Scooping Parlours and be a part of the growing ice cream

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

industry with Indias most popular brand. You can earn extremely attractive returns
even with a relatively moderate investment.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Operation
The franchisees shall be supplied with pre-packed Amul Ice-Creams/Amul products
in different varieties and volumes as per their requirement through authorized
wholesale distributors. The franchisees shall purchase necessary toppings, sauces and
consumables from approved vendors/brands. The products to be sold from these
parlours would be as per the recipes and prices approved by Amul.
Agreement
An agreement would be executed between the franchisee and GCMMF Ltd. as per the
standard draft finalized by GCMMF Ltd.

COMPETITOR BRANDS:
Amul ice-cream parlours faces competition from Indian as well as international ice
cream brands. Local parlours also contribute to competition.
International competitor includes

Baskin & robbins

Hagen-Dazs

Swensen's

The Cream & Fudge Factory

Indian competitors include

Naturals

Ice-cream works

Hokey pokey

Gelato italiano

Havmor

Kwality walls

Local parlourss

Zelos and Zest

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

FRANCHISE SPECIFICS:USP:

First ever brand which introduced the concept of

free tasting of different

flavours.

FOOTFALL:

On weedays: 100-150 customers.

On weekends: 150-20 customers.

NO OF OUTLETS:

B&R is an international brand with 6433 shops in 42 countries.

B&R has reached every corner of india with 425 outlets in 95 cities in india.

B&R has its tie ups with 5 star hotels, top airline companies, leading retail
chains, finest malls and multiplexes in india.

PRODUCT RANGE:
The RANGE OF ITEMS THEY SERVE IN THE PARLOR IS
31 Flavours

Sundaes

Ice-cream shakes

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Ice-cream cakes

Homepacks

Polar pizzas

They have a variety of toppings which includes three types of dips, they also have
chocolate dipped waffle cone.

PRICE RANGE: Rs 45- Rs 73.

CLASSIFIED FLAVOURS :

Timeless,

Divine

Favourite.

Timeless flavours are the cheapest in price at Rs 45 for a regular scoop, followed by
Divine flavors priced at Rs 63 and lastly favorite flavours priced at Rs 73.
The ice-cream cake is priced at Rs 624 for half a kg.

PROMOTIONS:

A lot of articles on b&r have been appered in newspapers like midday, saamna,
the economic times, navbharat, regional newspapers like ee sanje, sanje vani.

They create buzz about their offers on radio.

They also publish discount coupons in newspapers like mid day.

NO OF STAFF: 3-4 members


MANUFACTURING UNIT:

PUNE

SUPPLY PROCUREMENT: Twice a week.

SCHEMES & OFFERS:

31% off on purchase of ice-cream worth Rs. 310 and above on every 31st of the
month.

Half kg free on purchase of half kg ice-cream on selected days.

250 liter free on purchase of 250 liter ice-cream on selected days.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

The above 2 schemes are conducted primarily during the rainy and winter
season.

The big chill offer includes 50% more ice-cream along with 3 toppings of
customers choice.

MERCHANDISING:

In the parlor, on the glass hard top of the refrigerator they have stickers labeled
as best seller flavors and new flavors thus helping the consumers to make a
better purchase decision.

FACILITIES:

For franchise- Baskin-Robbins offer support tools that include Training


Programs, Site Selection, Design and Construction support, Marketing and
Technology.

Franchise information seminars are offered in various states several times a


month in order for potential franchisees to familiarize themselves with the
protocol.

They also have home delivery services with a minimum order of Rs200-250.
They have a gift card, which includes loading the card in the price range of RS
100-2000 and swiping the card while making a purchase.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

There are feedback forms available in the parlor, so that customers can express
their level of satisfaction and give suggestions.
On their website they have store locator which enables consumers to locate the
nearest parlor.

EXPANSION PLAN:

BR HAS announced development incentives in 2013 for new franchisees.

These limited time only incentives, some of the steepest the brand has ever
offered, are part of Baskin-Robbins' growth plans to attract new franchisees and
develop with current franchisees through remodels, relocations and expansion.

New 2013 incentives for expansion, remodels and relocation also are available
for a limited time only to existing Baskin-Robbins franchisees who are certified
to grow and meet expansion qualification criteria.

The new design is built around five core elements, including a newly designed
menu board system with an LCD screen; eye-catching ice cream "super
graphic" artwork; a wall that highlights the brand's legacy of flavors; an updated
brand logo; and whimsical pink spoon accents, including spoon-shaped door
handles- the spoon ( the pinky) is brand mascot of BR.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

FRANCHISE SPECIFICS:-

USP:

Naturals are famous for fresh fruit ice creams which includes seasonal fruit ice
creams. Naturals are deeply rooted in tradition.

All ingredients are completely natural and sourced from India.

There are no preservatives, stabilizers and artificial colors or chemicals.

They follow traditional method to make ice-cream. The ice creams contain less
air which makes it rich and creamy. Since the ice-cream is made up of fresh
fruits and they do not use preservatives the shelf life is only 3 days.

FOOTFALL:
The number of customers visiting the ice-cream parlor approximately

WEEKDAYS was 100

WEEKENDS were 150+

NO OF OUTLETS:
Naturals is an Indian brand. They have 70 outlets across the country spread
over 26 cities.

EXPANSION PLAN: Naturals wishes to expand in the north region of India.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

PRODUCT RANGE:
They have 20 fresh fruit flavors along with basic flavors like chocolate and
vanilla. They also serve Milkshakes. They have half kg tubs for take away.
PRICE:
The price of 1 scoop of ice-cream in cup/ cone is Rs 45, half kg tubs of any
flavor are sold at a price of Rs 210. Waffle cone lovers have to pay additional
10Rs.

PROMOTIONS:
Naturals do not invest in promotions. The popularity of the brand is through
word of mouth and customer loyalty. The website of naturals is quite interactive
with fun zone which includes ice-cream quiz; choose your flavor according to
your sunsign.

SCHEMES & OFFERS:

For the first time in India, they have introduced the concept of a unique new
'Friday Funday Flavour' where never-before seen flavours are introduced.

Some such flavours include kiwi lime, apple cinnamon, roasted kaju, caramel
walnut etc.

They also introduce flavours according to the festivals.

Eg: they introduced Thandai ice-cream during holi, banana ice-cream during
navratri. The berry festival included 4 new berry flavours like raspberry,
gooseberry, mulberry and strawberry. Wherein customers after buying these 4
flavors got the 5th scoop for free.

FACILITIES: Air conditioned parlor with sitting arrangement.

NO OF STAFF: 6-7 members.

MANUFACTURING UNIT: Kandivali

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

SUPPLY PROCUREMENT: daily supply of ice-creams.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Swirl's is a concept of ice cream parlours from Kwality Walls


that provides fresh, fun and a unique 'made-for-me' consumer
experience. It is for those on the move, who want to enjoy them
and wish to indulge. They are young-hearted temptation
succumbers who are willing to pay a little extra for that special
experience, that special moment.
The first store was incepted in 1994 in Netherlands, and since has been successfully
launched across the globe. There are over 2000 Heart brand stores across the globe. In
India, Swirl's has been operational since 2004 with the opening of its 1st outlet in NCR
region, and thus began its journey of delighting consumers in India. Swirl's parlours
with its great consumer experience, strategic locations and viable business model had
made it an unique and profitable venture for its franchisees.

FRANCHISE SPECIFICS:
USP:
Lots of varieties like Cornetto, Feast
A treat for every occasion
Positioning:

An ice-cream to celebrate happy moments in life

Strong brand name

Excellent advertising and visibility

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Good product distribution and availability

Lots of flavors and varieties available

FRANCHISE SPECIFICS:Footfall :
Weekdays 80 to 100
Weekends 100 to 130
No of outlets :
20,000+ outlets spread across Gujarat, Rajasthan, Maharashtra & Madhya pradesh.
Product range
they have a huge range of products including sugarless, blockbuster, candies, novelties,
sundaes, topo cones, cools ups, roll cuts, ice cream cakes, family packs, ice-cream
shakes, ice-cream floats etc. they have more than 65+ flavors.
Price range:
Rs.25 Rs.55 for a scoop of ice-cream.
Promotions - Through Newspapers.
Schemes & offers

Thursday temptation an offer where you get an ice-cream free on purchase of


one ice-cream from a selected range of flavors of the month.

For take away, buy 5 scoops and get 1 scoop free.

They launch innovative flavors as the flavors of the month.

FACILITIES:

They provide outdoor catering services,

Free home delivery, on website they have store locator.

No of staff 3

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Manufacturing unit Ahmadabad


Supply procurement daily supply of ice-cream to the parlors.
There are HAV FUNN PARLOURS which serve ice-creams and snacks like chana
puri, samosa, fries etc

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

FRANCHISE SPECIFICS:

Products:

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

FESTIVE SCHEMES:

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

FRANCHISE SPECIFICS:-

USP
- Freedom to create your own ice-cream live on cold stone slab.
Footfall Weekdays 60-70 consumers
Weekend 100-150 consumers
No of outlets - 15 outlets spread across 4 cities.
Expansion plan plans to expand in delhi & Andhra Pradesh
Product range - Stone creations, shakes, sodas, mix ins.
Price Rs60 to Rs160
Promotion - Word of mouth.
Schemes & offers - If someone has a Vodafone simcard, he gets 1 on 1 free,
from any flavour any volume.
No of staff 4
Manufacturing unit located at kurla
Supply procurement dont have any particular pattern as such.
SERVICES : Catering( even jain category

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

USP
Serves INNOVATIVE FLAVOURS of ice-cream with supreme QUALITY.
99.9% FAT FREE SORBETTOS and 98% DIET LITE SUGAR FREE OPTIONS.
Thus target audience includes health conscious and diabetics.
Footfall Weekdays 50 60 customers visiting the parlor.
Weekends >100
NO OF OUTLETS 30 in Mumbai itself. 84 outlets situated in 7 cities.

Expansion plan plans for expanding its presence by opening more than 60
outlets pan India. The new outlets to be added in companys network will be a
mix of company owned and franchised outlets.

The brand will be targeting Tier I cities initially, and later seek further
expansion on the Tier II and III cities. The company has not disclosed the
capital outlay for the proposed expansion as yet.

At present, the Gelato chain has around 60 outlets in major cities across India
including Delhi, Mumbai, Kolkata, Pune,Hyderabad and Bengaluru.

Product range the product range includes gelatos, sorbettos, cheesecakes, kulfi and
yoghurt.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

SCHEMES:

Flavor of the month of gelato italiano is a very famous offer where they serve a
scoop of gelato on every 1st day of the month for just Rs 15/-

They introduced the mango festival during summers where 4 new flavors were
launched like mango kulfi, mango yoghurt, real alphonso and mango vanilla
treat.

They also have one day schemes like rs 200 gelato for just half the price.

There is a license to chill card, wherein the customers can grab a free scoop of
gelato on every alternate purchase.

Price Rs.35 to Rs.95

The varieties are categorized as popular, premium, supreme and ultimate.

Popular category priced at Rs 35, premium priced at Rs 55, supreme at 75 and


ultimate at Rs 95.

Promotion through Newpapers.


No of staff 2 to 3
Manufacturing unit is located at Marol
Supply procurement daily supply of fresh gelato.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

USP - 100% veg


A Range of interesting flavours.

NO OF OUTLETS IN MUMBAINO OF STAFF :

8-9 members.

NO OF CUSTOMERS VISITING: ON WEEKDAYS : 60-70


ON WEEKENDS: 100+

PRICE RANGE: Rs29- Rs 92 for a scoop of ice-cream.


PROMOTION: Internet , Newspaper like Midday.
FACILITIES: Wifi enabled parlors with sitting space, home

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Delivery services.
Schemes

Paisa vasool offer at RS 28.(Rs.58s cup in Rs. 28),

15% discount for college students, they introduced the chocolate festival where
they launched 12 new chocolate flavors, special offers like buy 2 cassata and get
the 3rd free, festival offers on rakshabandhan on tubs and cassata cakes.

They also hold ice-cream competitions on the 5th of every month.

The ice-cream competition is named as BEFORE I DIE FIRST , where the


contestants have to pay an entry free and finish a bowl of 18-19 scoop of icecreams. The first 3 contestants to finish the bowl get gift hampers, ice-cream
works t shirt and other goodies.

PRODUCT RANGE:

Cassata cakes, yoghurt, shakes, sodas, sundaes, different

flavors scoop. They have categorized the scoops into different ranges namely:

PREMIUM RANGE

HANDMADE RANGE

THE BLACK RANGE

INDIAN RANGE

Supply procurement on Daily basis.


Manufacturing unit at Worli
Expansion plan Thane,andheri, colaba this year

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

USP
- Serves 94% Fat free Gelato and provides an option to create your Gelato on '' COLD
STONE'' facility.
It serves the freshest Gelato, produced in the parlour itself.

NO OF OUTLETS: 2

FOOTFALL: ON WEEKDAYS: 150


ON WEEKEND: >250
Expansion plan at Ghatkopar R city

Services Takes Reservations


Walk-Ins Welcome
Take aways.
Free Home Delivery
Outdoor Seating arrangement.

Product rangeGelatos, gelato shakes, tubs, cold stone creations.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Promotion -Word of mouth, Facebook, provides discount coupons on snapdeal.com


Price 50 to 120
No of staff 7 people total
Manufacturing unit at dadar
Supply procurement twice in a week

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

Chapter IV

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

4.1 Conclusion
From the survey conducted, we can conclude that ICE-CREAMS win the race in the
sweets category as compared to traditional Indian sweets, cakes, chocolates. Because of
companies past efforts some customers do know about the yogurt. Only few of them
know that its good for the health & helps in digestion & improve the mineral and
vitamin absorption from diet.

But still there is a huge scope of introducing new flavors and attracting more customers.
In summers its good to have ice cream because it taste good as well as the impact of
summer season make them fell in love with this delicious desert.

According to the survey, it can be concluded that the most preferred ice cream parlours
was NATURALS and then AMUL parlours. Therefore natural`s is our nearest
competitors in parlour segment.

The most preferred flavor was BASIC ice-cream flavors such as chocolate, strawberry,
vanilla, butterscotch etc. Therefore we should launch frozen yoghurt in basic flavours.
The consumption of frozen yoghurt amongst the respondents was during monthly basis
and rarely.

Coming to the awareness of frozen yoghurt, we got a 50-50 response. Hence our task is
to make all customers aware about what frozen yoghurt is. Those who were aware
about frozen yoghurt were also aware that it is good for the health.
One important aspect here is TOMA- top of mind awareness. When we asked the
customers the name of the brand which first comes to their mind when we say frozen
yoghurt, most of the customers were blank. We can conclude that no yoghurt brand has
created a space in the mind of customers yet. So AMUL`s frozen yoghurt stands a great
chance to become customers priority in the frozen yogurt section.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

After tasting VANILLA FLAAVYO, most of the customers liked it very much. They
rated the frozen yoghurt as good on the various parameters like availability, taste, price
and health benefit.
Coming to the demographics, children didnt prefer frozen yoghurt; middle aged males
preferred it and also appreciated it.
In the month of May, the flavor was vanilla, so the sales were less as compared to last
month when the flavor was mango. Some customers denied to have vanilla and opted
for other flavors.

In the next month the flavour was chocolate ice cream which was preferred by most of
the customers because it was offered at a cost price of Rs.15 whereas on the other days
it cost them Rs.25 for a scoop.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

4.2 Observations and Suggestion


HYGIENE:
It is mandatory for the franchise holders to maintain cleanliness and hygiene in the icecream parlor. Risk of food poisoning can result from poor hygiene practices in the
handling and serving of ice-cream scoops. Pre-wrapped ice-cream cones, tubs, sticks
and cups are not much prone to bacterial infestation.

Personal hygiene of ice-cream handlers is important in preventing the spread of


bacteria. Ideally the handlers should be clean and tidy, wear clean protective clothing,
wear hair net/hat to keep hair neat and tidy, keep finger nails short and clean, keep all
cuts, sores or grazes covered, do not cough or sneeze around food products, wash hands
regularly, wear gloves where necessary, and do not serve ice-cream if they are ill.

The ice-cream handler must store all ingredients and supplies in the correct location and
at the correct temperature. On visiting the various parlors of different brands it can be
concluded that high hygiene standards were followed.

Some observations are as follows:

Ingredients like toppings, waffle cones, chocolate waffle cones , chocolate


syrups were stored in clean containers. Chocolate waffle cones were stored in
deep freezer.

The ice-cream handlers were clean and well uniformed.

Each parlor had a dustbin inside/ outside the parlor.

The tasting spoons were discarded by the customers in a bowl nearby the tasting
counter of ice-creams.

Some parlors had installed flying insect killer devices to safeguard the customers from
diseases like malaria.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

DISPLAY:Amul ice-cream parlors lag behind in terms of display. The range of pre wrapped icecreams like tubs, cones, Cups, sticks, party packs lie in the deep freezers, there is no
board on the wall displaying different varieties of ice-cream available at the parlor.
New launched flavors are not promoted and displayed in the ice-cream parlor. Schemes
and offers are also not known to customers.

In the above picture, Scoop at Rs 15 on 15th is written in minimized form. None of


the customers entering the parlor noticed this scheme. Hence the display of the schemes
should be attractive and easily readable.

NEW FLAVORS:
More than the brand, ambience, facilities of the parlor, FLAVORS of the ice-creams
served in a particular parlor attracts the consumers. Consumers always like to choose
from a huge range of flavors. Competitor brands are introducing new and innovative
flavors to attract customers. On amul website, we can have suggest a flavor column

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

where consumers will give in their inputs, the innovative flavors which they wish to
consume. This will help Amul come up with new ideas of flavors.
Some suggestions for new flavors:

Indian sweets- India has a huge range of

traditional sweets, using these sweets in ice-creams is a good idea. Amul already has
Jalebi ice-cream, it can experiment with other sweets too like gajar halwa ice-cream.
Chai ice-cream which would contain Indian tea combined with fruit flavours.
Pumpkin ice-cream
Bourbon and cornflakes ice-cream
Fig and cheese ice-cream
Sweetcorn ice-cream
Chilli ice-cream - combination of mild chilles and herb like mint.
Coffee and cherry ice-cream
Neembu ice-cream for sour lovers

PRODUCT PACKS:
Ice-cream scoops in Amul parlors are served in local plastic cups. Whereas competitors
have standard branded cups with the brands logo and background color on the cups.
Amul should provide the parlors with cups having Amuls logo. Also the spoons should
be standard for all Amul parlors. Customers had complains with the low quality plastic
spoons which broke easily.
Pre wrapped ice-creams like cones, cups, tubs, sticks are properly packed.

SERVICES TO FRANCHISE HOLDERS OF AMUL ICE-CREAM PARLOR:

Damage settlement: Replacement of damaged ice-cream cones, cups, sticks and


other varieties should be done regularly.

Updated price list of items should be provided to all the Amul ice-cream parlors
on time.

The franchise holder should be informed about all the schemes and discounts
through mail, telephone.

The ordered items should be delivered on time.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

There should be a consistent availability of all the varieties and flavors of icecream. There shouldnt be a shortage of supply.

Deep freezer issues such as leakage, damage, no cooling , exchange etc should
be resolved instantly.

Updated collaterals should be provided to the ice-cream parlors as the brand


changes its logo, color, packaging etc.

Area wise sales executives of Amul should visit the parlors at least twice a year
to know the working status, problems faced by the franchise holder and their
satisfaction with the franchise of Amul.

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

4.3 Recommendations

LED's should be provided in scooping parlours, to educate the customers


about ice-creams which are made of vegetable oil and amul ice-creams made
up of pure milk.

AMUL ice-cream website is very weak in comparision to the competitors. The


website could contain the following:

Store locater along with map.

Feedback forms, customer satisfaction survey.

Fun zone including games, ice-cream quizzes, whats your flavour of ice-cream
according to your sunsign.

Gift vouchers or gift cards.

Home delivery and catering facilities.

Special flavors available in the parlours, which are different from the flavours
available at the retailers.

Opening stores in non metro cities

Keep promotional events in Malls

Keeping contest in Amul scooping Parlours

Franchise Strategy & Feasibility Study of Amul Scooping Parlours

4.4 References and Bibliography


Books Referred
Kothari C.R., Research Methodology : Methods & Techniques, 2nd
edition, New Age International Publishers, 2007

Bryman Bell, Business Research Methods, 3rd edition, Oxford


University Press, 2011.

Sites used during the questionnaire preparation and introduction to ice-creams.

www.google.com

www.baskinrobbbinsindia.com

www.amulice-cream.in

www.mid-day.com/lifestyle/2012/mar/ice-creamworks

www.wikipedia.org/wiki/gelato

www.wikipedia.org/wiki/ice_cream

www.naturalice-creams.in

www.hokeypokey.in

http://www.amul.com/m/39th-annual-general-body-meeting-held-on-25thjune-2013

http://www.business-standard.com/article/companies/amul-s-fy13-turnover-totouch-rs-13-750-cr-113040200542_1.html

http://articles.economictimes.indiatimes.com/2013-0402/news/38218051_1_sales-revenue-rs-turnover

http://www.hindustantimes.com/business-news/CorporateNews/Amulromances-sleepy-towns-with-ice-cream-parlours/Article1-989154.aspx

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