Submitted By : Binit Saurabh (19125)

Deepanshu Bahri (19128)

Submitted To : Prof. Jayant Bose Gunjan Gupta (19130)
Milind Hali(19141)
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 INTRODUCTION

• Arun Ice Cream Was Founded By RG Chandramogan

• Established In The Year 1970 In Chennai
• He Started The Business With A Meagre Amount Of Rs 36,000
• In 1986 , Hatsun Foods Private Limited(HFPL) Overtook The Business Of Chandramogan
& Co.
• Arun Ice Cream Saw Their Business Growth From College Canteens And Ports
• Arun Ice Cream Also Introduced Walk Ins For Fresh Ice Cream Candies At Their Factories

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 INTRODUCTION

• Their First Franchisee Was Born In Madurai In 1981 With The Help Of An Agent Named
Kanakaraj
• Arun Ice Cream Also Used Various Innovative Methods For Transportation And
Distribution Like Using Railways, Wooden Boxes And Deep Freezer Boxes
• Arun Ice Cream’s Turnover Rose From Rs 150000 In 1970 To 28.2 Million In 1990
• With Time They Were The Biggest Consumers Of Milk In The Area, Directly From The
Dairy Farmers
• In The Late 80’s Arun Ice Cream Was Giving 30-35 Types Of Flavours In Their Ice Cream
Parlour

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 PORTER’S FIVE MODEL OF ARUN ICE
CREAM

Threat Of Substitute Product

Threats Of New Entrants – And Services –
HIGH MODERATE
Competitive
Rivalry - HIGH
Bargaining Power Of Suppliers Bargaining Power Of Customers
- HIGH - HIGH

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 PORTER’S FIVE MODEL OF ARUN ICE
CREAM

• Threats Of New Entrants : It Became High After The Reforms Of 1991, As Now
International Brand Also Entered In Indian Market
• Threat Of Substitute Product And Services : Moderate, As Substitution Of Ice Cream One
Can Have Kulfi Or Indian Sweets
• Bargaining Power Of Customers : High, As There Are Many Substitutes And Brands
Available In The Market And Customer Is Usually Price Sensitive
• Bargaining Power Of Suppliers : High, Like Milk Suppliers Has Lot Of Other Option
Where They Can Supply Their Milk Easily
• Competitive Rivalry : High, As There Are Many Other Brands Like Dasapraksh, Joy,
Kwality, HUL And Other Local Competitors Are Available In The Market

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 They Did Three Events In 1987,1993 And In 1994

Eat All You Can : Entry Fee Of Rs 8 And One

Can Eat Unlimited Ice Cream.

EVENTS
Slow Speed Driving Competition : Entry Fees Of
Rs.15 And For Eligible For People Who Were In
Their Vehicles. It Was Focussed On Two Wheeler
Target Audience.

Dial A Number : One Has To Dial A Number

Between Certain Given Hours And Then One Can
Get Rs100 Worth Ice Cream Free At Their Parlours.

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• Eat All You Can : To Encourage The
Consumers To Try Out The High End,
Expensive Flavours, For Which In
Normal Days They Were Reluctant To
Experiment Upon. Around 4200 People
Participated In The Campaign And It
Costed Around Rs. 270,000. Also,
Similar Campaigns Were Repeated In
Cities Like Hyderabad
• Slow Speed Drive In : The Event Was
Done In Association With Local Traffic
Police Of Chennai & Bangalore, The
AIM OF THE
Event Was Big Hit Around 3400 People
Participated And Again The Main Aim
Was To Encourage People To Try Their
EVENTS
High-end Flavours
• Dial A Number : It Attracted 12,000
Callers From 20 Towns, Costing About
Rs.1.60 Million To The Company. This
Event Attracted High Number Of
Consumers For Arun Ice Cream

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SYMPTOMS, ISSUES AND PROBLEMS
Market Competitiveness Was High
And Was Already Taken By Bigger
Brands (Kwality, Joy, Dasaprakash)
In The Upper End Market And 350
Other Smaller Brands Were
Competing In The Lower End
Market.
Profitability And Liquidity
Problems
In The Second Year Of His
Operations, He Realised The
Factory Working Capacity Was
Inadequate And Was Not Able To
Produce The Demanded Output.
Less Technical Knowledge About
The Human Resources And
Personnel Management
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 SYMPTOMS, ISSUES AND
PROBLEMS

• Marketing Of Arun Ice Cream

• Milk Procurement Issue
• Factories Upgradation And Increase The Efficiency Of
Distribution
• Entry Of Big Major Players Like Unilever, Cadbury In
The Year 1991
• Expansion Of Arun Ice Cream

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 • While Doing The Survey In 1970 , RG Chandramogan Found
Out Hat Arun Ice Cream Needs To Venture Into The Niche
Market Where There Is Less Competition Like College
Canteens, Ship Ports
• As The Chennai Plant Was Not Sufficient To Meet The Expected
Demand, Then He Set Up Another Plant In Salem In 1991

THE FOLLOWING • The Salem Plant Was Strategically Located Because Of The
Milk Belt Of Tamil Nadu And Was Also Easy To Distribute The
ACTIONS HAVE Ice Cream From There

BEEN TAKEN • To Overcome The Issue Of Personnel Management He Enrolled

In Davars College And Studied Marketing And Personnel
Management
• He Also Recruited Managers Like R. Chanramouli As Financial
Controller And Company Secretary, V Jagannathan Was An
MBA As Marketing Manager, Prsannakumar Mehta Was The
Head Of Productions

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 • To Overcome The Profitability And Liquidity Issues ,
Arun Ice Cream Developed The Franchise Model
And Soon Was Able To Capture The Nearby Districts
And Town Like Pondicherry, Madurai, Kumbakonam
THE FOLLOWING And Sivaksi .
ACTIONS HAVE • Till 1974 He Captured Around 95 Percent College
BEEN TAKEN Market
• Till 1999 There Were Around 700 Parlours Of Ice
Cream In Tamil Nadu, Karnataka And Andhra
Pradesh
• For Distribution , RG Chandrmogan Used Indian
Railways As Well As Was Also Using Deep Freeze
Boxes And Wooden Thermos Boxes For The
Transportation.

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 • For Milk Procurement Issues RG Chandramogan Made An
Agreement With The Dairy Famers For Both The Peak
Season And The Dull Season
• For Marketing Purposes, There Were Many Events
THE FOLLOWING Organised By The Arun Ice Cream And Banners Were Also
Used By Them In Order To Gain More Customers And
ACTIONS HAVE Create A Particular Buzz
BEEN TAKEN • They Also Upgraded The Chennai Factory And Made It
Automated
• To Tackle The Big Brands Like Unilever And Cadbury ,
Arun Ice Cream Was Taken Over By Hatsun Foods Private
Limited In The Year 1986.(Later HMFL)
• To Tackle The Major Players They Heavily Spent On
Marketing And Also Were Expanding Their Franchise
Model

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  Broadening Product Line : By Providing
Different Type Of Products Like Milk
Products, Milk Supplements, Sweets,
Arun Ice Cream Can Strengthen Its
Product Offerings
 Expansion Through Current Franchisee
Model : Arun Ice Cream Can Expand
Their Business In Other States Of India
By Using Same Sit And Eat Parlor
Strategy. It Can Increase Their Brand
Value By Different Advt. Campaign For ACTIONS NEED
Creating Brand Awareness In New
Market
TO BE TAKEN
 Backward Integration : Arun Ice Cream
Can Either Go In For Exclusive
Agreement With Farmers Or Can Open
Dairy Farm To Help Its Supply Chain
Getting Disrupted By Fluctuation In Milk
Supply.

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THANK YOU

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