Strategic Management

Case Study

Submitted to Project Team

Prof. Ankur Roy Col Amitabh Dutta
Faculty Gp Capt AP Kashyap
Strategic Management
Lt Col Nikhil Kumar
AFP – 25
2021/ 22
ARUN ICE CREAMS Wg Cdr Aditi Maghav
Cdr Jay Valecha
MDI, Gurgaon AFP 25 - GROUP 8
 Case Study - Contents
ARUN ICE CREAMS
• Strategic Management Process
• Company Introduction
• Vision Development
• Analysis of Organization
• SWOT Analysis
• Strategy Formulation
• Strategy Implementation
• Strategy Modification
• Summary
 Strategic Management Process
ARUN ICE CREAMS

• Vision Development
• Analysis of Organization
• SWOT Analysis
• Strategy Formulation
• Strategy Implementation
• Strategy Modification
 Company Introduction
ARUN ICE CREAMS

• In 1970 Mr Chandramogan first started making ice candies with three

people in a rented place measuring 250 Sq.Ft. in the area.
• They initially sold in pushcarts
• Mr Chandramogan managed to keep his business afloat and bring it into
the organised sector
• In first year, turnover was Rs. 1,50,000.
• In the 1990s, crossed Rs. 3 crore”
 Company Introduction
ARUN ICE CREAMS

• Gradually became one of the biggest players in the State in ice creams
• Mr Chandramogan , branched into the dairy business
• Thus was born Hatsun Agro Product in 1986
• Over four lakh farmers got associated
• Hatsun created a model such that there are no middle-men between
themselves and the farmers
 Vision Development
ARUN ICE CREAMS

• “More the sun, more the ice cream”

• Mr Chandramogan initially wanted to call it ‘Hotsun’; but he felt Hatsun
had a nice ring to it
• Old-fashioned Ice Cream parlours that bring to mind cosy rooms with
plastic chairs and round tables as the mainstay
• No Aggressive plans. Just wanted to Sustain Leadership
• Focus mainly to control costs and maintain Quality
 Analysis of Organisation
ARUN ICE CREAMS
PROMOTERS

• Mr RG Chandramogan, Chairman & MD

• Mr KS Thanarajan, Joint Managing Director
• Mr C Sathyan, Executive Director

ORG STRUCTURE
• CEO
• Executive Director
• Director HR
• Joint Managing Director
• Manager Finance
 SWOT Analysis
ARUN ICE CREAMS
• STRENGTH
• Customer service through trusted parlours
• Market preferred range of Ice Cream Products
• First Indian Ice Cream Brand – Certified ISO 9000
• Toy and Ice Cream Combos
• High Quality Product
• OPPORTUNITY
• Explore premium segment and Adult Population
• Increase Distribution Network Beyond Tamil Nadu/ Southern India
 SWOT Analysis
ARUN ICE CREAMS
• WEAKNESS
• Stronger Competition from Established Business Houses
• Lower Brand Visibility
• THREATS
• Competition Offering Similar Product and Price – Eliminating Advantage
• Ice Cream not a High Loyalty Product. Hence – Customer Base Shift
 Strategy Formulation
ARUN ICE CREAMS
• SUPPLIERS
• Bargaining power of Milk Suppliers high, due to Alternative usage and Loyalty low
due to seasonal supply and demand variation.
• BUYERS
• Bargaining power of consumers, high as lot of Substitutes available and low cost of
switching product, product having little differentiation.
• NEW ENTRANTS
• No real Barrier , Even Cottage Industries can compete,
Just like Mr Chandramogan himself. Less Capital, Liberalized Market.
• RIVALRY
• Indian Comapanies – Joy, Dasprakash, Vadilal
• International Companies - HULL
• SUBSTITUTES
• Indian Sweets, Kulfi, Cola, Shakes, Chocolates
 Strategy Implimentation
ARUN ICE CREAMS
• Broadening Productline
• Diversifying offerings by Providing Milk Products, Chocolates, Sweets Etc
• Expansion of Current Model
• Increasing Distribution Network to vider Geography and Aggressive Marketing
• Take Overs
• Take Over Local/ Regional Companies and Eliminate Competitors - Oligopoly
• Mergers
• Merger with Indian OR International Company thereby creating a Cash rich Giant
• Backward Integration
• Exclusive Milk Purchase Agreements with Farmers for Better Cost and Continuity
 Strategy Modification
ARUN ICE CREAMS
• Broadening Productline – NOT LEVERAGED
• Diversifying offerings by Providing Milk Products, Chocolates, Sweets Etc
• Expansion of Current Model - LEVERAGED
• Increasing Distribution Network to vider Geography and Aggressive Marketing
• Take Overs – NOT LEVERAGED
• Take Over Local/ Regional Companies and Eliminate Competitors - Oligopoly
• Mergers – NOT LEVERAGED
• Merger with Indian OR International Company thereby creating a Cash rich Giant
• Backward Integration - LEVERAGED
• Exclusive Milk Purchase Agreements with Farmers for Better Cost and Continuity
 Summary
ARUN ICE CREAMS
• NON LEVERAGE OF REAL TIME OPTIONS
• Product line Broadening,
• Take Overs and Mergers
• NOT BREAKING THE ‘STP’ BARRIER
• SEGMENT – Health Cautious and Adult Oriented Ice Cream
• TARGET GROUP – Youth and Teenage Shift from Kids and Also Premium Segment
• POSITIONING – Through Newer Distribution and Promotion models
• NEGLIGIBLE ADVANTAGE OVER COMPETITORS
• Kwality Wall’s, Mother Dairy, Vadilal, Amul
Startegy – Case Study AFP 25 - GROUP 8

ARUN ICE CREAMS

Any Questions Thank You