A PROJECT REPORT ON

“CONSUMER SATISFACTION TOWARDS

HAVMOR ICE-CREAM IN SURAT CITY”

Submitted by:Deladvala Mayur N (18)

Gohil Vijay K (31)

A Projest Report Submitted in Partial Fulfillment of the Requirements for the Degree of

Master of Business Administration [MBA](Year: 2011-2013)

S.R. Luthra Institute of ManagementInstitute Code: - 750

DECLARATION

We hereby declare that the summer project report on “Consumer Satisfaction

towards Havmor Ice-cream in Surat city” is an original piece of work done by us for the

fulfilment of the award of degree of Master of Business Administration. And whatever

information has been taken from any source had been duly acknowledge.

We further declare that the personal data and information received from any

respondent during survey has not been shared with any one and is used for academic purpose

only.

Deladvala Mayur NGohil Vijay K

ACKNOWLEDGEMENT

First of all we greatly thankful to S. R. LUTHRA INSTITUTE OF

MANAGEMENT, SURAT which has given us an opportunity to expose us theoretical

knowledge into real practice, in order to carry out project work for our practical completion

of an M.B.A. programmed.

We also want to thank all faculty members of S. R. Luthra Institute of Management who helped us during our project as our project guide.

EXECUTIVE SUMMARY

We have prepared a project report on “Consumer Satisfaction towards Havmor Ice-cream

in Surat city”. The introduction of the project studied first, it includes conceptual maters of

understanding the consumer satisfaction towards Havmor ice-cream. In this the research

project effort is applied to find out the satisfaction level of consumer towards Havmor ice-

cream in Surat city.

After the theoretical part the research has been taken which is descriptive research, for the

research the sample of 50 respondents is taken. The research is done by of primary data

collection. The primary data are collected with the help of questionnaire.

TABLE OF CONTENTS

Chapters Particulars Page No.Declaration IIIAcknowledgement IVExecutive Summary V

Chapter 1 Introduction

1.1 Industry Profile 11.2 Company Profile 11

Chapter 2 Literature Review 21Chapter 3 Research Methodology

3.1 Problem Definition 243.2 Objectives of study 243.3 Sampling Method 243.4 Data collection method 253.5 Analyze tools and technique 253.6 Limitation of Report 26

Chapter 4 Data analysis and Interpretation 27Chapter 5 Findings and Conclusions 44Chapter 6 Recommendation 46

Bibliography 47Appendix 48

LIST OF TABLES

No. Particulars Page No.1 Table 1: Consumer of Havmor Ice-cream 272 Table 2: Sources of knowledge about Havmor Ice-

cream 28

3 Table 3: Frequency about purchasing Havmor Ice-cream

29

4 Table 4: Preference about form of Havmor Ice-cream 305 Table: 5 Flavours of Havmor Ice-cream 316 Table 6: Preference of buying Havmor Ice-cream 327 Table 7: Ranking according to the characteristic of

Havmor Ice-cream 338 Table 8: Quality of Havmor Ice-cream 349 Table 9: Rating of Havmor ice-cream in various

categories35

10 Table 10: Includence of flavours 3611 Table 11: Rank of Havmor Ice-cream compare to others

ice-cream brand37

12 Table 12: Improvement in the field 3813 Table 13: Advice other to buy Havmor Ice-cream 39

LIST OF CHARTS

No. Particulars Page No.1 Consumer of Havmor Ice-cream 272 Sources of knowledge about Havmor Ice-cream 283 Frequency about purchasing Havmor Ice-cream 294 Preference about form of Havmor Ice-cream 305 Flavors of Havmor Ice-cream 316 Preference of buying Havmor Ice-cream 327 Quality of Havmor Ice-cream 348 Includence of flavors 369 Rank of Havmor Ice-cream compare to others ice-cream

brand37

10 Improvement in the field 3811 Advice other to buy Havmor Ice-cream 39

CHAPTER 1: INTRODUCTION

1.1 INDUSTRY PROFILE

Introduction

Though India has a low per capita ice cream consumption of 300 ml per annum, the trend is

slowly changing due to a number of reasons. DARE explores the dynamics of the business.

Indian summers are synonymous with ice creams. Come summers, and you will see a number

of colourful.

Pushcarts selling the choicest of ice creams in numerous flavours from the traditional vanilla

and chocolate to unusual varieties like Mother Diary’s Shahi Nazrana. If that doesn’t baffle

you then the ice cream range definitely would, for example the ice cream range for the

children would be entirely different from 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 that

are opening shop.

 But did you know that a 100 ml scoop of your favourite ice cream that you ordered may

contain up to 50% air! This makes the business a highly profitable venture to get into –

sometimes, the profits can go upto 100%! However, there are several challenges to this

business as well. In this story, DARE attempts to find

out the dynamics of the business.

The Ice Cream Industry: An Overview

Looking at some industry facts first. In 2007, the

global market of ice creams was pegged at $61.6

billion in terms of retail value or 15 billion liters in terms of volume. Of this, the Asia-Pacific

ice cream market was worth $13 billion in terms of retail value and 5,128 million liters in

terms of volume. Coming to India, the Indian ice cream industry is currently estimated to be

worth Rs. 2,000 crores, growing at a rate of approximately 12%. RS Sodhi,

Chief General Manager of Gujarat Co-operative Milk Marketing (GCMMF), the makers of

‘Amul,’ explains, “The ice cream market in India can be divided into: the branded market and

the grey market. The branded market at present is 100 million liters per annum valued at Rs.

800 crores. The grey market consists of small local players and cottage industry players.” In

2008-09, in the branded ice cream market, Amul held the number one spot, with a market

share or 38%, followed by Kwality Walls at 14%, Vadilal at 12% and Mother Diary at 8%.

Despite a decent growth rate, the ice cream industry faces the challenge of low per capita

consumption.

Industry at a glance

The ice cream industry in India is worth Rs. 2,000 crores

The industry can be divided into the branded market and the unbranded market. The branded

market at present is 100 million litters per annum valued at Rs. 800 crores

In 2008-09, in the branded ice cream market, Amul held the number one spot, with a market

share or 38%, followed by Kwality Walls at 14%, Vadilal at 12% and Mother Diary at 8%

The per capita consumption of ice cream in India is approximately 300 ml, as against the

world average of 2.3 litters per annum

Vanilla, Strawberry and Chocolate together constitute approximately 60% of the market.

The per capita consumption of ice creams in India is just 300 ml per annum, compared to 22

liters in the US, 18 liters in Australia, 14 liters in Sweden. India is a way too far behind even

in terms of the world average per capita ice cream consumption of 2.3 liters per annum. This

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 trend especially

holds true for the North and the Western parts of India. According to Pankaj Chaturvedi,

“The variation in sales for Baskin Robins can range from 15–30% from season to off season

depending on geography and brand.

The Ice Cream Business

The ice cream industry has traditionally grown at a healthy rate of

12% 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,” Paul Thachil, CEO – Dairy & Foods, Mother

Dairy Fruit & Vegetable.

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 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 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.

Manish Vithalani of Space Dotz informs, “A ice cream mix (consisting of milk, emulsifier,

sugar and so on) costs about Rs. 60-65 a litter. And in one liter you can add up to one litre of

air. Therefore, per liter the mix would cost you approximately Rs 32. If you take an 150 ml

cup, you can make 13 cups of ice cream from one litter of mixture. Calculating on that basis,

the per cup costing 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

bigger players, the distribution and advertising costs eats into the profit margins, for smaller

players, it is the volumes that matter.

Besides selling their products through kiosks, parlors and push carts, a significant part of the

revenue comes from corporate sales. Says Pankaj Chaturvedi, “About 55% of our business is

contributed by exclusive ice cream parlors and kiosks while 30% is from corporate or food

service (as we categorize it) sales. The rest comes in from retail and exports.” A chef at a

prominent five star Delhi hotel tells us their banquet section itself buys 6 gallons of ice cream

from manufacturers on a daily basis. The demand, he informs, goes up to 10 gallons during

peak season.

What is the cost of setting up a small scale ice cream manufacturing unit? Manish Vithalani

says, “The cost for setting up a small scale ice cream plant could come to approximately Rs.

10 lakh, including the cost of a ice cream plant, labor (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 flavors made from fruits.

Some players like Mumbai-based Space Dotz are also coming up with newer technology.

According to Dilip Jagad of Space Dotz,

“Unlike the normal ice cream, our product comes in the form of balls. Besides, the product

has no air content and uses cryogenic technology, used in rocket science.”

Another 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. 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.

Sharing his experience, Sidharth Jaiswal of Joos, a juice bar chain, says, “We had introduced

ice creams on an experimental basis in our juice outlets in Ahmedabad. We observed that

consumers ordered ice creams as a side item or only when they were accompanied by

children.

We eventually decided not to move ahead with it.” 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. Manish Vithalani says,

“Besides the presence of other players, another hurdle is the the high rent charged for floor

space, especially in malls. This also becomes a problem when we try to expand.”

Ice-creamIntroduction

The ice cream market growth picked up after de-reservation of the sector in 1997. Of the total

size of Rs 15-16bn, around 30-32% is in the hands of

organized sector valued at Rs 4.9bn, rest all is with the

unorganized sector. Among the major players in this

industry Hindustan Lever has a market share of around

50%, represented mainly by Kwality Walls brand. Amul

with an estimated market share of 35% is rapidly gaining

market share and lastly Vadilal is the player in the national market with 8-9% of the market

share.

Production area

In rural areas, kulfis / ice creams made by small / cottage industry are popular. The market

for organized sector is restricted to large metropolitan cities. In small towns and villages,

there are thousands of small players who produce ice- creams / kulfis in their home backyard

and cater to the local market. Almost 40% of the ice creams sold in the country are consumed

in the western region with Mumbai being the main market, followed by 30% in the north and

20% in the south.

Growth promotional activities

The Indian government adopted the policy of liberalization regarding the ice cream

industry also and it is since then that this sector has shown an annual growth ranging from

15- 20% per annum for last 1- 2 year. Presently in 1999- 00 it is estimated at worth of Rs15-

16bn. This growth rate is expected to continue for another next 2- 3 years because of lower

base

Types

Indian Ice Cream market can be segmented in three different ways, namely on the basis of

flavors; on the basis of stock keeping units / packaging and on the basis of consumer

segments. On the basis of flavors the market today has a number of flavors like vanilla,

strawberry, chocolate, mango, butterscotch a number of fruit flavors, dry fruit flavors

traditional flavors 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 fruit flavors.

Ice-cream industry at a Glance

Market Overview

The industry is growing steadily with the northern and western regions accounting for the largest consumption

•Size and Growth Worth USD XX mn in 2008

Growing at a % p.a. in 2005-2008

Forecast to increase by b% to reach USD YY mn in 2009

•Characteristics Northern and western regions together account for c% of total market consumption

Profit margins range from u% to v% depending on the product segment

W % of ice cream sales occur during the summer months of April-June

X % of sales is through street vendors

Vanilla is the highest selling flavour and together with strawberry and chocolate it

accounts for y% of the market

Drivers & Challenges

Key Trends

1.2 COMPANY PROFILE

History

Small Beginning, Big Vision, Great Ambitions. Havmor Ice Cream began its branded life in

1944 in Karachi, in undivided India. By 1947, it was a popular local brand there. 

But in 1947, in the wake of the partition, its founder Satish Chona had to join the exodus into

India, with virtually no moveable assets. Searching for a new turf, he tried out Dehra Dun and

Indore, and finally, settled down in Ahmedabad.

No, it was not a case of “Brand Relocation”, or anything else as fanciful. He had to start the

venture from scratch again. In fact, he had to begin from a hand-cart at the Ahmedabad

Railway Station, churning out the Ice Cream manually.

 He called this fledgling brand 'Havmor' - a neologism for 'Have More' - which meant the

customer got more value for money, and more taste to relish from his Ice Creams.  

Perhaps he didn't know it then, but he had laid the foundation for one of Western India's most

enduring market legends.

 And good quality, like good character, wins over the situation sooner or later.  

Today, Havmor Ice Cream is a delicious facet of Western India's daily life. It reaches

hundreds of thousands of consumers through 100 main outlets and 20000 plus dealers. 

That's a very very long way from a hand-cart. 

Good Old Values, New Generation Leadership

Mr. Pradeep Chona, son of Late Shri Satish Chona, today heads the Havmor conglomerate.

He has continued his father's quality obsession and streak of innovation. 

To his father's motto - 'Achchai, Sachchai, Safai'. He added a suffix - “Navu Su Che?” 

Now that is quite simple, but a powerful reason for taste innovation. In fact, that is not even a

corporate axiom. It is the question regular Havmor customers ask at frequent intervals.

Because they expect Havmor to keep pleasing their palates in new ways, always.  

Mr. Pradeep Chona set off a series of Changes at Havmor - in technology, in quality &

hygiene standards, in management, in HRD and in the overall corporate environment. This

re-engineering was complemented by capacity expansions and a flurry of promotional

activities, to maintain the company's market presence intact in competitive times... 

Ankit Chona, Mr.Pradeep Chona's son also joined the business after completing his

graduation from the United States. He has been a driving force in expanding the Restaurant

division as well as popularizing the Company owned Ice Cream & Fast Food parlours known

as HAV FUNN. He has brought a lot of innovation and standardization in the business such

as SAP, GPS System in all vehicles, metal detectors, camera surveillance system empowered

to control from anywhere in the world and many more.

Profile

Our successful business strategy is to provide a good taste. Post its foundation in 1944,

Havmor has progressed to become a blue chip Ice Cream brand of Western India, placing

itself one of the top three in sales. Through the years we have supplied a varied range of

eatables from Ice Creams like Candies, Topo Cones, Kulfis, to snacks like Samosas, Chana

Puri, Jumbo Grilled along with a range of international cuisines like Punjabi, Mughlai,

Chinese and Continental.

Based in Ahmedabad we have a total of 100 parlours and restaurants spread throughout

Western India and a dealership of 20000+ covering over 35% of the market share. These

numbers indicate nothing more than proving that Havmor has become Gujarat’s favourite ice

cream brand today.

Quality policies

At Havmor, our customers matter the most and our core strategy revolves around

them.

We believe in caring for our customers and achieve customer satisfaction by

establishing and maintaining an effective Quality Management System. 

It is our prime objective to ensure consistency in quality of products and services.

Continuous training is an integral part of the management at Havmor, which ensures

constant improvement in individual and team performance.

Standards

Innovation is a way of life at Havmor. And we strive hard to achieve this.

Our motto is ensuring customer satisfaction and complete value for money.

We take our responsibilities seriously and everyone, from the individual to the

company, aspires to achieve a higher level of excellence, in our products, as well as

our services.

ISO 9001:2008 Certification

Our standards mean the world to us.

Havmor Ice Creams and related

products are manufactured in a state-of-

the-art plant at Naroda, Ahmedabad.

Complete hygiene is a key feature in

our world-class plant’s processing

facilities. And the packaging at our

plants conforms to international norms.

General Information

Brand name Havmor

Type of Organisation Private Limited Company

Establishment Year 1944

General Manager Mr. Pradeep Chona.

Office address

Havmor food Pvt. Ltd.,

Relief Road,

Ahmedabad.

Factory Address

Havmor food Pvt. Ltd.,

Asarva Road,

Ahmedabad.

Competitors Amul, Vadilal, Kwality walls, Dairy den. Etc.

No. parlours & Restaurant 13

Outlet centersNavrangpura, Satellite, Panchavati, Relief

road.

Level of Expand International

Head quarter Ahmedabad

Havmor parlour Satellite, Vastrapur, Arjun complex

Product range

Havmor company produces various and different and delicious products. This is the only company that produces maximum products.

Candies

Kala khatta pop Lolly pop Orange bar Kacchi keri Double hit Mini chocobar Kaju candy Classic chocobar 3-D bar Raspberry dolly Mango dolly Chowpaty kulfi Zulu bar

Small Cups (50 ml)

Vanilla Royal gulab

Big Cups (100ml)

Royal gulab Vanilla strawberry Chocolate bonanza Chips kaju drakash Choco chips Butter scotch Kaju anjir Kesar pista Raj bhog.

Cones (120 ml)

Ringo bings

Choco vanilla Strawberry Chocolate Butter scotch- Raja rani

Novelties

Malai kufi Cut roll Badam pista kulfi Raja rani roll cut Sandwich ice cream Fifty fifty roll cut Cassata cut Super sunda bon-bon Volcano.

Ice cream soda

Orange Lime

Family and party packs

Royal gulab Vanilla kaju Draksh Butter scotch Chocolate chips Fresh strawberry Bonanza bananza Swish cake Kaju anjir Kesar pista Lonavli Almond carnival

Roasted-badam-anjir.

Major Competitors’ profile

Kwality Wall's

Kwality Wall's is a major producer

and distributor of ice cream and

other dessert products

in India, Pakistan, Sri

Lanka, Malaysia and Singapore. It

is a company of Hindustan Lever

Limited, the arm of Unilever in

India, and is an extension of

the Wall'sice cream brand of Great

Britain.

Kwality, the original Indian

company, was founded in 1956,

and was the first in the region to

import machinery for the mass

production and sale of ice cream on

a commercial scale. In 1995, in

view of the growth potential of the

frozen confections market, Kwality

entered into an agreement with

Lever, and has since been known

by its current umbrella name. At

the same time, other brands

acquired by Hindustan Lever, such

as Gaylord-Milkfood, were phased

out in favour of promoting the

Kwality Wall's brand. This

arrangement allows for local production and sale of Wall's products that are popular in its home

market, such as the Cornetto cone, and to create local variations on others, such as the Feast Jaljeera

Blast.

Vadilal

Kwality Wall's

Type Subsidiary

Industry Food

Founded 1956

Headquarters Mumbai, India

Products Ice cream

Parent Hindustan Lever Limited

Website Official Website

Vadilal BSE: 519156 

(Vadilal Industries Limited) is

ranked as the second largest

producer of ice cream in India.[6] It

has the largest range of ice-

creams in the country, with more

than 150 flavors. The group's

principal activity is to manufacture

ice creams, frozen desserts and

process processed food products.

The company is one of the largest

processed food players in India

with major exports of frozen

vegetables, mango pulp, mango

milk shake, ready-to-eat snacks,

curries and breads. Vadilal has

approximately 150 ‘Happinezz’

branded stores across Gujarat,

Rajasthan and Uttar Pradesh. It

has also forayed into the world of

real estate, chemicals and forex.

The Managing Director [8] of

Vadilal Industries Ltd., Mr. Rajesh

R. Gandhi is the son of the

founder Chairman, Mr.

Ramchandra R. Gandhi. The

Vadilal Company became an

official corporate entity in the year

1970, but it traces its origin as far

back as 1907. The company aims

to be an Indian MNC in ice creams and while providing products and services at an

affordable price without any compromise on quality. Its major success factor lies in its ability

to cater to different market segment through varied product ranges.

AMUL

Vadilal Industries Limited

TypePublic Listed Company BSE: 519156

Industry Food

Founded 1907[1]

Headquarters

Ahmedabad, India[2][3]

Key peopleRamchandrabhai Gandhi, (Chairman),Rajesh Gandhi Managing Director[4]

Products Ice cream

Revenue 190.662 crore (US$42.52 million)[5]

Parent Vadilal Group

Website Official Website

The Gujarat Cooperative milk

Marketing Federation Ltd, Anand

(GCMMF) is the largest food products

marketing organisation of India. It is

the apex organization of the Dairy

Cooperatives of Gujarat. This State

has been a pioneer in organizing dairy

cooperatives and our success has not

only been emulated in India but

serves as a model for rest of the

World. Over the last five and a half

decades, Dairy Cooperatives in

Gujarat have created an economic

network that links more than

2.8 million village milk producers with

millions of consumers in India and

abroad through a cooperative system

that includes 13,141 Village Dairy

Cooperative Societies (VDCS) at the

village level, affiliated to 13 District

Cooperative Milk Producers’ Unions at

the District level and GCMMF at the

State level. These cooperatives collect

on an average 7.5 million litres of milk

per day from their producer members,

more than 70% of whom are small,

marginal farmers and landless

labourers and include a sizeable

population of tribal folk and people

belonging to the scheduled castes.

The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67.11 billion. It markets the products,

produced by the district milk unions in 30 dairy plants, under the renowned AMUL brand name. The

combined processing capacity of these plants is 11.6 million litres per day, with four dairy plants

having processing capacity in excess of 1 million Litres per day. The farmers of Gujarat own the

largest state of the art dairy plant in Asia – Mother Dairy, Gandhinagar, Gujarat – which can handle

2.5 million litres of milk per day and process 100 MTs of milk powder daily. During the last year,

3.1 billion litres of milk was collected by Member Unions of GCMMF. Huge capacities for milk drying,

product manufacture and cattle feed manufacture have been installed. All its products are

Amul (ANAND MILK UNION LIMITED)

Type Cooperative

Industry Dairy

Founded 1946

Headquarters Anand, India

Key peopleChairman, Kaira District Cooperative Milk Producers' Union Limited. (KDCMPUL)

Products See complete products listing.

Revenue  $2.15 billion (2010-11)

Employees735 employees of Marketing Arm. However, real pool consist of 2.8 million milk producers

Website www.amul.com

manufactured under the most hygienic conditions. All dairy plants of the unions are ISO 9001-2000,

ISO 22000 and HACCP certified. GCMMF (AMUL)’s Total Quality Management ensures the quality of

products right from the starting point (milk producer) through the value chain until it reaches the

consumer.

Ever since the movement was launched fifty-five years ago, Gujarat’s Dairy Cooperatives have

brought about a significant social and economic change to our rural people. The Dairy Cooperatives

have helped in ending the exploitation of farmers and demonstrated that when our rural producers

benefit, the community and nation benefits as well.

The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a business

enterprise. It is an institution created by the milk producers themselves to primarily safeguard their

interest economically, socially as well as democratically. Business houses create profit in order to

distribute it to the shareholders. In the case of GCMMF the surplus is ploughed back to farmers

through the District Unions as well as the village societies. This circulation of capital with value

addition within the structure not only benefits the final beneficiary – the farmer – but eventually

contributes to the development of the village community. This is the most significant contribution the

Amul Model cooperatives has made in building the Nation.

CHAPTER 2: LITERATURE REVIEW

Executive Summary

In August 2009, ice cream maker Havmor decided to implement ERP system across its head

office, factory, and the state-of-the-art kitchen and three locations in Ahmedabad. With a

16,000 plus dealer network across Gujarat, Maharashtra, and Rajasthan, the company set

February 2010 as the deadline for the rollout. The short implementation window was set

keeping in mind the onset of the ice-cream season in March 2010.

The factory of Havmor at Ahmedabad manufactures 100-odd flavors of ice cream in multiple

packing options, thereby swelling raw material inventory, SKUs, and related documentation,

recalls Rekha Chona, Director, Havmor Ice Cream.“Our procurements, storages, productions,

delivery points, plant maintenance, customer deep-freeze maintenance & services are

scattered geographically,” she says. The legacy system catered the need of the individual

department but the drawbacks were data redundancy, lack of integration of the system and

wastage of time in sourcing and collating data. ERP was the need of the hour.

THE SOUR TASTE

In its two earlier attempts to implement ERP, Havmor was unsuccessful as it had selected a

customized software the first time and a non-standard ERP the second time, primarily due to

the lower cost of the product and implementation. Project ‘Mission Kamyaab’ was started to

reverse the failures of the previous two attempts.

The factory of Havmor at Ahmedabad manufactures 100-odd flavors of ice cream in multiple packing options, thereby swelling raw material inventory, SKUs, and related documentation, recalls Rekha Chona, Director, Havmor Ice Cream.“Our procurements, storages, productions, delivery points, plant maintenance, customer deep-freeze maintenance & services are scattered geographically,”she says. The legacy system catered the need of the individual department but the drawbacks were data redundancy, lack of integration of the system and wastage of time in sourcing and collating data. ERP was the need of the hour.

The firm approached Innova Systems, its Ahmedabad-based system integrator for the past six

years. Innova understood the customer requirements and suggested SAP and even interacted

with the local SAP team who in turn studied the project requirements two to three times.

“Earlier, we could not afford SAP as it was a costly proposition for a company of our size.

However, SAP’s cost effective solution for SMEs changed the dynamics,” says Chona.

THE MIXED FLAVOR

Since Innova didn’t have expertise on ERP implementation, it went back to SAP for help,

which in turn suggested CMC as the latter had executed similar projects in FMCG vertical,

including a wafer manufacturing company. “After joint presentations at the customer end, we

got an order of ERP software - SAP ECC 6.0 and licensing,” says Dave, CEO, Innova

Systems (India).

“Looking at the previous two failed attempts and limited time in hand, we did not want to

experiment at the site of a loyal customer,” says Dave. Experimenting and probably failing

would have also meant losing the related Rs 1 crore plus hardware purchase order for Innova

Systems. The trade off was outsourcing the ERP implementation part worth Rs 34 lakh to

CMC.

Innova and CMC embarked on this project at Havmor in September ’09 with a plan to

complete it by Feb’10. Havmor management realized that this was an ambitious initiative

cutting across all the departments and would result in major changes in the job functions.

THE RIGHT INGREDIENTS

With SAP implementation, Havmor also needed hardware refresh in terms of servers,

storage, and networking gear at its data enter. Also, there was a need for 100 plus PCs

(desktops and laptops). Hardware supply and system integration has been core expertise of

Innova Systems and hence they bagged this project, which was over Rs 1 crore including

hardware, its integration, and software licenses. “We supplied all hardware, implementation

and SAP configuration issues like clustering. Due to SAP, the associated hardware must be

new and also new purchases were done due to new staff at Havmor,”says Dave. The entire

active and passive networking infrastructure including switches, routers and structured

cabling was also executed by Innova.

Innova Systems would soon connect the locations of Havmor through Tulip for WAN. “We

did contemplate open source than Microsoft during the project as it means cost savings for

customer. But Havmor did not have dedicated staff which is needed for open source

deployments,” says Dave. Innova supplied manpower to CMC to ensure speedy work and

more co-ordination between teams to meet the deadline.

“As a system integrator, Innova Systems tried to address our pain areas, from identifying

SAP and their SME rates, partner collaboration, and hardware integration. They also

suggested the project financing option,” said Chona.

Havmor Ice Cream looking to double its presence

@Franchise India: Ahmedabad-based chain of ice cream parlours, Havmor Ice Cream,

plans to double its presence in India in next one year. Currently, it is operating through 60

outlets across the various cities of Gujarat, through a mix of company owned and franchised

outlets.

The company is targeting few more cities of Gujarat like Surat, Rajkot, Jamnagar etc. to

mark its presence across the nation. Besides this, the company is also looking at expanding

in countries like US and Dubai through franchising.

(Rahul Gupta and Yogesh Gupta, 2010).

CHAPTER 3: RESEARCH METHODOLOGY

PROBLEM DEFINITION

Customer Satisfaction towards Havmor Ice-cream in Surat City.

OBJECTIVE OF THE STUDY

To find out the Satisfaction level towards Havmor Ice-cream in Surat City.

To find out customers favourite flavour of Havmor ice-cream.

To find out the how the customer rank according to various characteristic of Havmor

ice-cream.

Where they rank Havmor Ice-cream as compared to leading market Ice-cream

companies.

RESEARCH DESIGN

In this project, the Descriptive research design has been used in which the data are

collected by cross sectional research design. As the study is done to know the Satisfaction

of customer towards Havmor ice-cream only and as it only describes the level of

awareness and not explains anything the study is descriptive study.

NON PROBABILITY SAMPLING

Non probability convenience sampling design is used in this project. On probability is

that sampling procedure which does not afford any basis for estimating the probability

that each item in the population has of being included in the samples.

RESEARCH INSTRUMENT

Questionnaire is used for the purpose of data collection as the research instrument.

SAMPLE SIZE

The sample size taken for the survey purpose is of 50 people from Surat city.

Pre-testing:

Before the final survey, 5 people were surveyed first to check the validity of the

questionnaire.

Execution of sampling process:

Data are collected from the people of Surat city through personal interview with them.

DATA COLLECTION:

For the preparation of the project both types of data are used.

Primary Data

Secondary Data

Primary Data:

Primary data are those data which are collected by the researcher for the first time for his use.

These data are pure and therefore more reliable. Primary data gives the original picture of the

study or situation for which they are collected.

In this project, the primary data are collected through the use of survey method. In the survey

the respondents were personally interviewed for data collection.

Secondary Data

Secondary data are those data which are once collected by any other person in past for his

purpose and now being used by the researcher for his purpose. These data are less reliable

compared to primary data because these data may be obsolete with the passing of time and

may have bias information.

In this project, most of the secondary data are collected from internet. Some data regarding

the company were obtained with the help of the company guide.

Geographical Area:

Surat city is selected to study the Satisfaction of consumer towards Havmor ice-cream.

LIMITATIONS OF THE RESEARCH

During the project following hurdles are faced.

Probability sampling was not used therefore the results cannot be generalized to the

population.

As many of the respondents were not that much familiar with English, I needed to

explain each and every question in Guajarati or Hindi to them.

Research only conducted within limited geographical area only which is Surat.

CHAPTER-4 DATA ANALYSIS AND INTERPRETATION

Are you consumer of Havmor Ice-cream?

Yes 100

No 0

Table 1: Consumer of Havmor Ice-cream

Interpretation:

Here it’s all respondents are consumer of Havmor Ice-cream so that getting information about

Havmor ice-cream and its quality become easier as every respondent knows the Havmor ice-

cream and the consumer of Havmor Ice-cream.

How you come to know about Havmor ice-cream?

Frequency Percentage ( % )

Newspapers 18 35.77

Radio 17 34.95

Hoardings 3 0.05

Family or Friends 8 22.76

Others 4 0.02

Table 2: Sources of knowledge about Havmor Ice-cream

Newspapers Radio Hoardings Family or Friends

Others05

101520253035404550

Chart 2: Sources of awareness about Havmor Ice-cream

FrequencyPercentage ( % )

Interpretation:

Here from the diagram, it’s clearly represents that Newspapers and Radio is most prominent

source for the awareness of Havmor Ice-ream. Then comes Family or friends which influence

the behavior of buying. Some respondents suggest T.V. also for the knowledge about Havmor

Ice-cream.

How frequently you purchase Havmor ice-cream?

Once a week 48

More than once a week 33

Once a month 10

On a special occasion 09

Table 3: Frequency about purchasing Havmor Ice-cream

Once a week More than once a week Once a month On a special occasion0

10

20

30

40

50

60

Chart 3: Frequency of purchasing Havmor Ice-cream

Frequency

Interpretation:

The graph mentioning that majority of respondents purchase ice-cream once a week that

shows the at the medium flow of consumption of Havmor Ice-cream. If there was more

frequency in “More than once a week” then it would have been better position for the

company to sell out ice-cream in market. There are also respondents who buy the Havmor

Ice-cream on special occasion only.

In what form do you prefer to have Ice-cream?

Frequency Percentage ( % )Candy 57 20.28Cup 63 22.42Cone 44 15.66Family pack 55 19.57Roll Cuts 62 22.06

Table 4: Preference about form of Havmor Ice-cream

Candy Cup Cone Family pack Roll Cuts0

10

20

30

40

50

60

70

Chart 4: Prefrence about forms of Havmor Ice-cream

FrequencyPercentage ( % )

Interpretation:

As you can see in the chart, there are somewhat equal amount of responses about forms of

Havmor Ice-cream. It shows the consumer are happy with the all kind of forms Havmor

providing for their consumers. However if look at the exact figure, the cup and Roll-cuts

having most preference of consumer according to form of Havmor Ice-cream.

Which flavours of Ice-cream you buy most?

Frequency Percentage ( % )Vanilla 47 15.31Strawberry 62 20.20Chocolate chips 39 12.70American Dry Fruits 54 17.59Pina chips 47 15.31Kesar pista 46 14.98Any other 12 00.04

Table: 5 Flavours of Havmor Ice-cream

Vanilla Strawberry Chocolate chips

American Dry Fruits

Pina chips Kesar pista Any other0

10

20

30

40

50

60

70

Chart 5: Flavors of Havmor Ice-cream

FrequencyPercentage ( % )

Interpretation:

Most of the respondents prefer Strawberry as their favorite flavor. Then comes American dry fruits, Vanilla, Pina chips, Kesar pista respectively. In other section, consumer have suggested in their favorite flavor as Rajbhog, Green pista, Afghani Dry-fruit, Kaju kismis, Badam Kaju Pista, Black current etc.

Normally from where you usually buy Havmor Ice-cream?

Ice-cream parlours 30Restaurant 47Local Ice-cream shops 20others 03

Table 6: Preference of buying Havmor Ice-cream

Icrecream par-lors

Restaurent Local Icecream shops

others05

101520253035404550

Chart 6: Preference of buying Havmor Ice-cream

Frequency

Interpretation:

As we can see from this diagram most of the respondents prefer restaurant while purchasing

the Havmor Ice-cream. 30 respondents like to purchase Havmor ice-cream from the official

Havmor outlet and other prefer to buy ice-cream from Railway Station and Bus-station.

What rank you would like to give according to following characteristic of Havmor Ice-cream?

1 2 3 4 5Price 29 44 10 4 13Availability 28 31 17 16 8

Quality 32 6 38 15 9Flavours 8 10 23 45 14Offers 4 7 12 22 55

Table 7: Ranking according to the characteristic of Havmor Ice-cream

Interpretation:

By analyzing the table of content the most least important factor that consumer thinks it is

Quality. The company should have to generate awareness programme about quality of

Havmor ice-cream. The most important factor the consumer thinks it is Offers. Havmor

comes with a very innovative offers range so it can be the one of the reason for most

desirable characteristic according to the consumers. And price becomes 2nd most important

factor for consumers.

What do you think about quality of Havmor Ice-cream?

Excellent 38Good 50

Neutral 10Bad 2Very bad 0

Table 8: Quality of Havmor Ice-cream

Excellent Good Neutral Bad Very bad0

10

20

30

40

50

60

Chart 7: Quality about Havmor Ice-cream

Frequency

Interpretation:

Here the effort is made that how the customer is satisfy with the quality of Havmor ice-

cream, this help to analyze that test and quality of Havmor Ice-cream products with the

consumers tests and preferences. Here, majority of respondents feels the quality of Havmor

ice-cream is: Good”. Its positive direction for the company to strive their efforts in improving

the more quality which can highly satisfy for consumers.

How would you rate the Havmor ice-cream in following categories?

Characteristics Most Fav._____________Less Fav.1 2 3 4 5

Value for money 85 10 5 - -

Sweetness 12 69 5 13 1

Packaging 25 37 17 14 7

Customer services 31 21 30 13 4

Advertisement 35 16 37 5 7

Verities 44 29 15 3 9

Table 9: Rating of Havmor ice-cream in various categories

Interpretation:

1. Value for money: The value for money is most favorable category for consumer. So

company should have to come with a economic schemes which can attract consumer.

2. Sweetness: Sweetens falls in 2nd rank as favourable only for consumers. The

sweetness having no major problem for consumers.

3. Packaging: Packaging includes shape, design , durability of ice-cream which is 2nd

most favorable for consumers.

4. Customer services: Customer service include the after selling service which can

include hearing the matter regarding to the quality of product or any other quarries of

consumers which is average favorable for consumers.

5. Advertisement: Advertisement having average favorability for consumers.

6. Verities: Consumers wants to include more verities in the product of Havmor ice-

cream so it is most favorable variable for Consumers.

Would you like to include any flavours in Havmor ice-cream?

Yes 19

No 82

Table 10: Includence of flavours

Yes No0

10

20

30

40

50

60

70

80

90

Chart 8: Includence of Flavours

Frequency

Interpretation:

This helps to company include more verities in its product range. However most of the

respondents respond “No” but some of the respondents (19) suggest some of the flavors

which include Ginger, Vegetables, Litchi-Strawberry candy, Lassi kulfi, Badam kesar ice-

cream, Mirchie Ice-cream etc.

Where you think Havmor ice-cream rank as compared to other ice-cream available in market?

Top 49

Next best 50

Average 1

Bottom 0

Table 11: Rank of Havmor Ice-cream compare to others ice-cream brand

Top Next best Average Bottom0

10

20

30

40

50

60

Chart 9: Rank of Havmor Ice-cream compare to others ice-cream brand

Frequency

Interpretation:

This graph showing equal amount of responses which is : “Top” and “Next best” which

represents that Havmor company can be the strong preference for consumer for buying Ice-

cream or can be the second best option for consumers.

In which field you can think Havmor Ice-cream improves more?

Frequency Percentage ( % )

Price 30 23.81

Quality 39 30.95

Quantity 23 18.25

Availability 33 26.19

Any other 01 0.007Table 12: Improvement in the field

Price Quality Quantity Availability Any other0

5

10

15

20

25

30

35

40

45

Chart 10: Improvement in the field

FrequencyPercentage ( % )

Interpretation:

From the following chart the majority of consumers want improvement in the field of quality. While the quantity having less consideration so we can say that Havmor Ice-cream having a great efficiency in maintaining quantity of ice-cream.

Will you advice others to buy Ice-cream?

Yes 99

No 01Table 13: Advice other to buy Havmor Ice-cream

Yes No0

20

40

60

80

100

120

Chart 11: Advice other to Buy Havmor Ice-cream

Frequency

Interpretation:

From the following chart its clearly mention that almost every respond will advice other to buy Havmor ice-cream.

Chapter 5: FINDINGS AND CONCLUSIONS

Here are the some of the findings we made after analysing the respondents’ responses.

Havmor Ice-cream is liked by majority of people as we saw earlier in the chart. More

than 50% Havmor ice-cream customers like quality of Havmor Ice-cream.

The most feasible awareness sources of Havmor Ice-cream are Newspaper and Radio

compare to other sources like Hoardings and Family of Friends.

Most of the consumers prefer buying of Havmor Ice-cream once a week.

There is almost similar waightage to forms of ice-cream product of Havmor Ice-cream

consumer would like to have. The most favourite ice-cream of consumer is

Strawberry, American Dry-fruit and Vanilla.

Most of the consumer buy Ice-cream from the restaurant then Ice-cream parlors.

Quality is least significant rank given by consumers about Havmor Ice-cream.

Whereas, Offers are most significant rank given by consumers.

Most of the consumers find quality of Havmor ice-cream is “GOOD”.

The respondents suggest some of the flavors which include Ginger, Vegetables,

Litchi-Strawberry candy, Lassi kulfi, Badam kesar ice-cream, Mirchie Ice-cream etc.

in the suggestion.

Consumers want improvement in the quality of Havmor Ice-cream.

Most of the consumers would like to suggest Havmor Ice-cream to others.

CONCLUSION

The survey resulted into following conclusions:

HAVMOR must come up with new promotional activities such that people become

more aware about Ice-cream,

Quality is the dominating aspect which influences consumer to purchase HAVMOR

product, but prompt availability of other brands and aggressive promotional

activities by others influences the consumer towards them and also leads to increase

the popularity of brand.

People are mostly satisfied with the overall quality of HAVMOR Products, but for the

existence in the local market HAVMOR must use aggressive selling techniques.

Consumers purchase Ice-cream from Restaurant more than the Havmor parlours so

company should have to increase awareness level of consumers towards Havmor ice-

cream parlours and promote schemes at Havmor outlets.

CHAPTER 6: RECOMMENDATIONS

On careful observation of Havmor Ice-cream, we have the following suggestion for Havmor

Ice-cream, Surat which on proper implementation may provide a big boost to it.

We have observed that people of age group 20 to 30 are maximum consumer of

Havmor Ice-cream. So the target market for Havmor Ice-cream is people of age group

20-30 years & also kids of age group 10-20 because kids are always easy targets.

All information regarding Havmor and its products should be available on internet.

Increase in advertisement and publicity.

Motivation program for booth and parlor owners.

Glow sign boards should be provided to booth and parlor owners.

New flavours of Havmor Ice-cream should be launched like ice-cream.

Inspection and frequent check of booth and parlors.

BIBLIOGRAPHY

Book reference:

Kotler, P. (2007). Marketing Management 13th edition, published by Pearson

Education, Inc. Delhi.

Bhattacharyya, D. (2010). Research Methodology 2nd edition. New Delhi: India Sales

Offices.

Web Reference:

Havmor Ice CreamLimited (N. D.), Retrieved November 16, 2011, From

www.havmore.com

Paul Thachil (November 1, 2009). Ice Cream Industry in India. Retrieved November

16, 2011, from http://www.dare.co.in/opportunities/other-business-opportunities/ice-

cream-industry-in-india.htm

Indial AGRO Industry (N. D.). Agricultural Commodities. Retrieved November 16,

2011, from http://agro.indiamart.com/agricultural-commodities/icecream.html

Yogesh Gupta (2010). Innova Systems implements ERP at Havmor Ice Cream.

Retrieved November 16, 2011, from http://www.channelworld.in/case-study/erp-

global-ingredients-local-flavor

Questionnaire

Consumer Satisfaction Towards Havmor Ice-creams Surat City

Dear Respondent,

We are students of S.R.Luthra Institute of Management (Surat, Gujarat) and doing a survey for a study for which we intend to pose a questionnaire to find out customer satisfaction towards Havmor Ice-creams. Your cooperation is deeply solicited to provide the relevant information. I assure that information will be kept confidential and use for academic purpose only. Thank you.

Name: __________________________

Age: _____

Gender: Male: _____ Female: _____

Occupation: ______________________

Contact no. (M): ___________________

1. Are you a consumer of Havmor Ice-Cream?

O Yes O No

2. How you come to know about Havmor ice-cream?

O Newspapers O Radio O Hoardings

O Family or Friends O Others, Please specify ______________

3. How frequently you purchase Havmor Ice-creams?

O Once a week O More than once in week

O Once a Month O On a special occasions only

4. In what form do you prefer to have Ice Cream? ( Multiple tick mark allowed)

O Candy O Cup O Cone

O Family pack O Roll Cuts

5. Which flavors of Havmor Ice-cream you buy most? (Multiple tick marks allowed)

O Vanilla O Strawberry O Chocolate chips

O American Dry fruits O Paina chips O Kesar pista

O Any other: ____________

6. Normally, from where you usually buy Havmor Ice-creams?

O Ice-Cream parlors O Restaurants

O Local Ice cream shops O Any other _________

7. What rank would you like to give according to following characteristics of Havmor Ice-creams?

(Rate on a scale of 1 to 5, 1: least important and 5: the most important)

Price _______ Availability _______ Quality _______ Flavors _______ Offers _______

8. What do you think about quality of Havmor Ice-Cream?

O Excellent O Good O Neutral O Bad O Very Bad

9. How would you rate the Havmor Ice-Cream in following categories?

CharacteristicsMost favourable ____ Less favourable

1 2 3 4 5Value for moneySweetness PackagingCustomer ServicesAdvertisementVerities

10. Would you like to include any flavour in Havmor Ice-Cream?

O Yes O No

If yes, what is that flavour _________

11. Where you think Havmor Ice-cream ranks as compared to other Ice creams available in market? (Amul, Vadilal, Kwality walls, etc.)

O Top O Next best O Average O Bottom

12. In which field you can think Havmor Ice-cream improves more?

O Price O Quality O Quantity

O Availability O Any other ____________

13. Will you advice other to buy Havmor Ice cream?

O Yes O No

Thank you for your valued opinion