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INTRODUCTION

Parent Company: Hatsun Agro Products Ltd


Category: Food Processing
Sector: Food and Beverages
Tagline: Lifes Happy Moments
USP: Exclusive Franchise parlors
Dairy Whitener, Skimmed Milk Powder,
Agmark Certified Ghee, Butter, Cooking
Butter, Milk, Varieties of Curd, Paneer and
Buttermilk through the Brand Hatsun Milk &
Milk Products

Started with seed capital 15,000 in


1970
Largest private sector company
3 Lakh+ farmers, chosen with care in
8500 village
10 locations
Exported to 38 countries
Quality Standard Certifications

STP
Segment: Ice cream for Quality
conscious kids and adults
Target Group: Kids and Youth
Positioning: Exceptional service
through exclusive franchise parlors

BUSINESS OBJECTIVES
Build brands worthy of customer
trust
Maximize return to all stakeholders
through continuous improvement
Develop People to Deliver the Above

SUCCESS FACTORS

Standardized Parlors
Ideal and convenient location
Convenient working hours (10 A.M to 10 P.M.)
Regular maintenance of freezers to maintain
optimum performance
Ability to understand and cater to customers'
needs
Innovative commercials and novel
promotions

INNOVATION IN MARKETING

EAT ALL YOU


CAN

PHONE AND
HAVE AN ICE
CREAM

SLOW SPEED
DRIVING
COMPETITION

ADVERTISING STRATEGIES
Large Scale Advertising

Product diversification to
target Specific Segments

Benefits Derived from Falling Cost

Franchises and strategic


partnership to enhance distribution

Approach to pricing and


strategy Franchise Management
Followed a cost plus approach for
setting retail price for ice cream.
Single tier Distribution strategy was
followed.
Took orders from franchises via
Phone.
CEOs direct involvement in Personal
and Human Resource Management.

Emerging Competitive scenario


Competition from Strong Regional
Players .
Kwality in North &East
Kwality and Vadilal in west and
Dasaprakash
Joy @Arun In South
The competition become intense with
entry of Uniliver through its Indian
Subsidiary BBIL.

Strategic challenges and


Dilemmas
Major Challenge was the dramatic
development in the market place
that could undermine Aruns Growth
Plans.
Aggressive entry of Uniliver was
threat to all retail Players.
Reworking competitive strategy was
the only option.

Strategic Dilemma
Key Question was whether to
aggressively reinforce Aruns
competitive profile or pursue
alternative business opportunities.

SWOT ANALYSIS
Strength

Weakness

Unparalleled service to
customers through
exclusive franchise parlours.
More than 70 mouthwatering ice cream flavours
and combinations.
The first Indian ice cream
brand to be certified ISO
9000.
High quality products with
good attractive packaging
and distribution

Stronger competition
stifling its growth.
Brand visibility lower
than other major
players

Opportunity

Threats

Explore the premium


segment and come up
with varieties, which
cater to the adult
population.
Increase the
distribution network to
other parts of the
country

Other competitors also


offering products at
similar quality and
price.
Most people are not
really brand
conscious, so loyalty
might be an issue

Porters Five Force Model


Threat of new entrants:
The switching cost of consumer is low.
The threat from new players in the market
is high because the manufacturing
process is simple and not more costly.
Powers of buyers:
There is high power of channel members
Individual consumers power is also high as
they can go for different ice cream brands.

Power of suppliers:
The concern for dairy producers which are
now going for ice cream manufacturing is
very less. So, the power ofsuppliers is low.
Availability of substitutes:
There are many alternative products like
different sweets, Kulfi and Faludah.
They are low in price so there is high
pressure on ice creams as consumer can go
for substitutes.

Competitive Rivalry:
Foreign and local brands
Advertising expenses have increased
as companies are advertising more
to increase their market share.

Strategies
Introduced the concept of exclusive franchise parlours in
India
Innovate varieties and new flavours - maintain its brand
image and recognition
Ideal and convenient locations
Clean and well-decorated interiors
Convenient working hours (10 A.M to 10 P.M.)
Regular maintenance of freezers
Courteous service
Knowledge of product/variety among the staff
Ability to understand and cater to customers' needs
Innovative commercials and novel promotions

Product
Differentiation

Focussed Product
Differentiation

Varieties and
products flavours
(Royals, Exotics,
Delights, Tubs,
iCone, iBar)

Trans shipment to
ships
Focus on quality
and service
Focussed sales
promotions ("slow
speed driving
competition "Eat
All You Can")