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R.G.Chandra Mogan is the chairman and managing director of Hatsun Agro Product Ltd,
Which is the manufacturer of branded milk and ice cream and the largest private dairy in
India. Arun ice cream, a popular ice cream brand in south India is owned by Hatsun Agro.
Hatsun group is also producing Arokya and Gomatha, two popular milk brands in Tamil
Nadu. He is one of the first generation of entrepreneurs from sivakasi. He is one among the
113 Indian Billionaires, with a fortune of 1.45 billion $. Juggling an ice cream in one hand
and a notebook and pen in another isn't the easiest thing to do, especially when you have to
take down notes between mouthfuls of waffle cone. This is what I do when I meet R.G.
Chandramogan at his office and start a conversation over an Arun ice cream as he traces the
“With a limited capital of Rs.13, 000 I had to start something. So I started Arun ice cream in
1970. I was 21 then,” says Chandramogan. The factory was just an unassuming little place in
Tondiarpet where three or four people worked and manually produced about 20 litres of ice
cream per day. Ten paise candy was their first variety of ice cream and it was sold through
push carts. Today of course it's a different story. The automatic equipment produces 50,000
litres to 75,000 litres of ice cream per day. Hatsun has its dairy plants in Kanchipuram,
Palacode, Salem, Madurai, Belgaum, honnali. As for its ice cream, apart from Tamil Nadu
they also have a plant in Seychelles. How does arun sell in Seychelles, a market for other
popular international ice cream brands? “We have a 70 per cent share of ice cream market in
Seychelles. In Brunei we have a distributor who buys and sells our ice creams and there we
are among the top four brands,” says the seasoned entrepreneur.
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In 2012, Hatsun started yet another ice cream brand, Ibaco. This is the posh cousin of Arun
ice cream and is based on the ice cream-by-scoop model. “Arun is a factory finished product
and comes in cones, cups and sticks. As for Ibaco, it's the scoop variety. You walk into an
Ibaco parlour, choose the flavour and get it dressed with toppings. As of now Ibaco is
available in Chennai, Bengaluru and Delhi. By next year I'll be taking it to Mumbai, Pune,
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1.4Limitations of the Study
Limitation of time.
over widearea.
This study has carried out under time constant, due to this we have drawn
our interer with whatever little response we get. Thus cent percent
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Objectives
To know the sales values of the hatsun products, arun ice cream and milk products.
To know the contribution of the hatsun milk products and arun ice cream for
healthiness of people.
To give suggestions for improvement of marketing strategy of hatsun products, arun
1.6 Methodology.
Following are the methods adopted for the collection of required data relating to the
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project report.
1) Fieldwork method: Visited various dealers to gather views towards the product.
2) Survey method: An exhausted survey was conducted about the project and the marketing
Arun ice creams dealers and also consumers with a view to ascertain their attitude &opinion
For the purpose of this project report the data has been collected from
The primary data has been collected from field survey with the help of interview
The Secondary data has been collected through, published sources, unpublished
Sources of Data
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Within the framework of objectives, a survey was conducted to gather the
survey of dealer's opinions towards marketing of ice cream was also conducted
a) Journals
b) Newspapers
c) Encyclopedias
d) Text Books
Sampling:
We make sure only the freshest of milk goes into all our Products something we will never
compromise on. That’s why we go straight to the sourcethe farmers. We have around
10,500Hatsun Milk Banks (HMBs) covering over 12,000 Villages. Over 3 lakh farmers
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provide milk to these banks every day. With the help of EKO milk analyzers installed, the
HMB tests the quality of milk from each farmer using Fat and SNF parameters. Milk is
collected from HMBs and taken to the Hatsun Milk Chilling center, where it is tested for
quality standards. Only after the milk samples match our stringent quality norms are they sent
to the dairy. At the dairy, the milk is put through more tests before being taken up for further
processing.
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The scope of this study is restricted to the study of consumer behavior towards
“HATSUN MILK ARUN ICE CREAMS AND MILK PRODUCTS”. The area of the
study has been restricted to Coimbatore city only. The survey has been conducted on the
people of Coimbatore city and also for the welfare of the consumer.
1.5Statement of problem
How has the extended dry spell affected the dairy sector?
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Drought in recent years has hit agricultural output but
REVIEW OF LITERATURE
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1.) Shanthi (1987) studied consumer preference for "Arokya" milk in which comes under
Hatsun milk industries and its Products in Royapettah and Mylapore. It was found that
good quality coupled with low price was the main reason for consumer preference for
milk and milk products. Correct weight and convenience found the second and third
place with hygiene coming last. The quantity of milk purchase increased with the
increase in the size ofthe family. It was also found that consumption of Aavin milk did
Shanthi, S. (1987), "A Study on Consumer Preference for Arokya Milk and Milk
of Management, Madras.
2.) Sridharan (1991) conducted a study on consumer preference for "Aavin"milk and
milk products. The specific objectives of the study were to identify the stepsto
improve the quality of milk and milk products and to find out the reason forcustomer
dissatisfaction towards "Aavin" milk and milk products. It was suggestedthat the
outgoing milk and milk products must be checked and it should be confirmed.
Sridharan, K.N. (1991)," A Study on Consumer Preference for Aavin Milk and Milk
Madras, Madras.
3.) Nagaphani (1998) conducted a study on the marketing aspects with specialreference
revealed that the reason for low procurement in the areas ofShanmugapuram and
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Sultanpet chilling centers was due to the competition in procurement from private
dairies. The sale of milk in 500ml sachet was found to behigh. Revenue from sale of
4.) Naveen Venkata Prasanna (2003) carried out a study on customersatisfaction rate
consumer preference in purchase of Aavin brand of milk and analyzing the perceived
price, service of agents and place of purchase were the criteria used inthe study. It was
found that Aavin brand was rated high for purity, taste andthickness. Attributes like
availability, price, and service of agents were also ratedgood. Other milk brands like
Arokya and Amritha rated best for its purity and tasterespectively. For all the brands
Towards Milk and Milk products in Coimbatore", Project Report, Master of Business
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5.) Riyaz Mohammed (2003) conducted a study on comparison of Aavin, Arokya and
Sakthi milk with special reference to Coimbatore city with a sample sizeof 150
features of the branded milk; effective media for branded milk andimpact of packing
of the branded milk The findings of the study revealed that theAavin brand of milk
preferred for its purity, quality and price but the advertisementcampaign, home
compared to the milk brands Arokya and Sakthi. Even thoughthese brands claimed
themanufacturers to improve their services in those identified areas.In the light of the
studies reviewed above, the importance and need for in-depthand comprehensive
beneficial.
Riyaz Mohammed, (2003) "A Study on Comparison of Aavin, Arokya and Sakthi Milk
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COMPANY PROFLE
Welcome to the Hatsun world, India's largest private dairy. From a modest ice-cream
manufacturer to one of the leading names in India's dairy sector in just a span of
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Beit In the dedication to quality, in employing the world's latest technology, innovative
Itstarts ascreamy dream in 1970. Arun Ice cream, the rich, delirious brand that hascaptured
the hearts of millions of ice-cream lovers. With over 70 delightful varieties it is the No. 1
selling ice cream in south India. Arun Ice-cream is manufactured at the mostmodern plant of
its kind in Chennai. From the ingredients, to the packaging anddistribution stringent quality
control is maintained at every stage which has made Arun Ice-creams the first ice-cream
brand In India to win the 9001 certification for quality and world-class manufacturing
facilities. Arun Ice-creams reach the consumes through thelargest network of exclusive
parlors in India. These and the many Arun mini parlors in the rural areas provide employment
to thousands of people. When the Vision is clear and thededication total, growth follows, and
Hatsun expanded. When the market was ruled by unhygienic milk, Hatsun came up with
Arokya thestandardized, homogenized and bacteria clarified milk. Arokya milk is still
unsurpassed inpurity, thickness and quality and has made it one of the most preferred milk
brandsconsumed by several hundred thousand households every day and then came
HatsunKomatha. This product is Hatsun's proud contribution ofa superior quality, lower fat
milk which Hatsun calls 'Cow's milk. Komatha is the perfect symbolization of the values and
attributes of the provider of fresh milk - the cow. No wonder then Hatsun Komatha milk is
hailed as the most suitable milk for the whole family. Loved by kids and adults like for its
taste and freshness. Hatsun handles a total 1.8 million liter a day. Hatsun's quest for quality
starts at Procurement, two times a day, 365 days of the year at over a thousand collection
centers. Frommore than a hundred thousand farmers. Hatsun sources its milk with an ever
watchful eye, always keen on quality. It is an enthusiastic and bustling activity when milk
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3.2 Company Profile:
India, the largest producer of milk in the world produces over 97 million
annually. For the past 4 years India has been a consistent exporter of
Hatsun, based in South India is the largest private sector dairy company
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Hatsun Agro Product Limited is a public limited company that was
Managing Director.
South India.
Today, Hatsun is a USD 185 million company. listed in the Mumbai Stock
Exchange.
3.3 Management
Board of directors:
The company is managed by the Managing Director, joint Managing Director and
board of directors. The board of Directors of the company have an optimum combination of
executive, Nonexecutive and independent directors, which compels with clause 49 of the
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listing requirements as well. The entire board of the company is involved in selection,
Executive directors:
Shri KG. Chandramogan is the promoter of the company. He is the chairman and
managing director of the company. He has initially started ice-cream business in early
1970: and later ventured into milk and milk related products. In the year 1986 he formed
the business into a private limited company, which was later converted into a public
limited company.
Shri KS. Thanarajan is a post graduate in economics and is in charge of day by-d_
operations of the dairy division of the company. Shri Thanarajan has had more than 3
years of experience.
specialization In Marketing. He has held various executive positions during his career
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3.4 Financial status
The company's sales have grown from a level of INR 190.9 million (approx. USD 4
million] in 1997 to INR 8694 million (approx. US$ 183 million) in 2008. The company's
PBDITA has increased from INR 25.14 million (approx. USS 0.53 million] in 1997 to INR
The equity base with reserves stand at Rs.481 million (approx USS 10.12 million)
and gross asset base of more than Rs.2332 million (approx USS49.09 million).
Share capital
The Company made its maiden public issue of 18, 00,000 equity shares
of Rs.10/ at a premium of Rs.35/ per share. The issue was well subscribed.
The present listed and paid-up Equity Share Capital of the company is Rs.6.79
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The study of Data analysis and Interpretation
In this chapter through my survey I have created 120 responses. In this survey it contains of
15 different questionnaires in they would be helpful for my data analysis and to my
interpretation.
Table:
Chart:
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In my survey there are 65% of male respondents and 55% of female respondents are
answered to my survey. Mostly the male and female are equally to this survey. As they find
very easy to answer.
Table:
Chart
In this survey I have taken my respondents marital status and the result was 70% of the
people was single and 30% of the people was married. In which there are more number of
single (or) unmarried persons who have answered to this survey. In which there are less
number of married persons are answered to this survey.
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4.3 Educational level of the Respondents
Table:
Chart
In this chart of Educational level there are 9.7% of school level in which this consists of only
the school students. 61.3% people of from Ug level (under-graduate ) in which they consists
of the bigger number of the people.21.8% of from Pg level(post-graduate) in which surely
they would have undertaken this project before.7.3% of from others in which all kinds of
mixed level of education comes under this level.
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4.4 Occupation of the Respondents
Table:
Chart
In this chart there are four types of occupation level undergone by the respondents. In which
19.4% of the people are professionals,54.8% of the people are students,13.7% are self-
employed and 12.1% are others level of the occupation. Major part of the occupation is
capturedby the students in this chart. Least part of the chart was other level of occupation.
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4.5 How much you like Ice cream compared to others sweets foods?
Table:
Chart
In this chart there is question raised that how much you like ice cream compared to other
sweet foods? In that case there are various kinds of responses collected from the respondents.
They say that the comparison is 20% good, 60% of very good, 10% and 20% have a bad and
very bad satisfaction.
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4.6 Which brand of Ice Cream do you often have?
Table:
Chart
In this chart there is a question among that respondents that which brand of ice cream do you
often have? In the survey the respondents say that they have 21%Amul, 60% of Arun, 10% of
kwality walls, 9% of Mother dairy ice creams.
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4.7 What source influenced you to buy this brand of ice cream?
Table:
Chart
In this chart it has a question of what source influenced you to buy this brand of ice cream? In
the survey the respondents say that they get influenced 37.9% from family, 19.4% from the
friends, 23.4% from the advertisements and 19.4% of the people gets influenced by others
information.
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4.8 How many times do you eat ice cream in a week?
Table:
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Chart
In this chart it says about the respondent’s usage of the ice cream. In the manner how much
they buy ice creams in a week.52.4% of the people eat less than once in a week, 24.2% of the
people eat more than once in a week, 13.7% of the people eat more than twice a week, 9.7%
of the people eat more than thrice a week.
Table:
Chart
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In this chart it says about the flavor of ice cream in which the consumer prefers.40.35 of the
consumer likes chocolate, 31.5% of the consumer likes vanilla, 10.5% of the consumers likes
strawberry and 17.7% of the consumers prefer other flavors.
Table:
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Chart
In this chart it says about the preference for this brand of ice cream.31.5% of the consumers
prefer for the quantity, 23.4% of the consumers prefer for the brand image, 10.1% of the
consumers prefer for the price, 24.2% of the consumers by others and 17.7% of the
consumers prefer for quality.
4.11 Are you satisfied with the ice cream you eat?
Table:
Chart
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In this chart it says about the satisfaction of the consumers.77.4% of the consumers are
satisfied.3.2% of the consumers are not satisfied.19.4% of the consumers are maybe satisfied.
Table:
Chart
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In this chart it says about the packaging of the ice cream. It says that consumer like 58.1% of
cone packing, 21% of consumer like cup packing, 10.5%of the consumers like plastic
container packing and finally 10.5% of the consumers like tub packing.
Table:
Chart
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In this chart it
says about the
consumer
buying
preference. Only
1% of the
consumer
buying ice
creams from the mobile cart.37.9% of the consumer buying ice cream from the super
market.59.7% of the consumers buying ice creams from the convenience shops and finally
1% of the consumers buying ice creams from the online websites.
Table:
Chart
Findings:
In this survey there are more Male respondents than female. There are 65% of the
61.3% of from the ug level, 21.8% of from the pg level and finally 9% of the
professionals, 54.8% are students, 13.7 are self-employed and 12.15 from others.
The consumers says the they like ice creams other than sweets foods as 20% of good ,
arun ice cream, and 10% from the kwality walls and 10& from the mother dairy.
There are many sources influenced to buy the ice cream they are 37.9% are from the
family, 19.4% are from the friends, 23.4% are from the advertisement and 19.4 are
from others.
The consumer of 52.4% eat ice cream less than once, 24.2% are more than once, 13.7
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Majority number of the consumers are satisfied with the ice cream and only few
consumers like to have in cup, tub and more likely plastic container.
More number of the consumer like to buy rhe ice cream from the convenience shop.
Only few consumers like to buy the ice cream from the super market, online, and
mobile cart.
Consumers all prefers only the arun ice cream advertisement other than arun ice
Suggestions:
There should be equal number of consumers should be presented in all kinds of age.
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In marital status there should be equal number of married consumers compared to
single consumers.
In the educational level only ug level of the students are more in this survey. But it
self-employed consumers.
Actually to be my opinion the ice cream should be the best ever sweet food compared
many consumers.
There should be more number of consumers has to get information through the
than week.
The consumer should prefer more number of different flavors other than trying the
regular flavors.
There should be some improvement in the place of price and quantity. Because the
consumer finds it’s more costly and also the quantity is less in nature.
There should more number consumers satisfaction should be “yes” always to arun ice
cream.
There should be equal number of importance to the packaging. All the packaging
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Conclusion:
The study carried out in the dairy products segment, analyses the factors that prompted the
customers to buy a particular brand of dairy food for their households. This study also helps
in determining the reasons that a consumer ensures while purchasing a product. The other
major outcome of the study was the actions and corrective steps that need to be initiated by
the manufacturers for every factor and reason that prompted the consumers to buy a particular
brand. The study enables the manufacturers & dealers to know about the behaviour of
competitor customer who can be converted into their prospective customers by knowing the
influencing factors and the factors considered during their purchase. This study also lists out
all the essential aspects that a prospective manufacturer or dealer should take in order to
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ensure customer satisfaction. With the completion of the study it is clear that Indian dairy
market is trying to grab the under explored Indian market. Though there are few innovations,
it is expected that they will try more innovative Channels as the industry grows. Also more
and customer base is the new mantra that dairy marketers are adopting by discovering new
ways to reach out to the masses through diversified promotional strategies. There is an ample
scope for dairy products manufacturers do progress in this lush green environment. The
market size is increasing day by day and the demand for new products is arising. Many
companies in the market are competing each other to capture the market with their new ideas
and plans. The government should also be liberal on its policies. The companies need a
Questionnaire:
1.) Gender
a) MALE b) FEMALE
2.) Age:
a) 10-20 b) 30-50
c) 20-30 d) 50&Above
a) Single b) Married
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a) School b) Graduation c) Post-Graduation
5.) Occupation:
6.) How much you like Ice Cream compared to other sweet foods?
a) Good
b) Very Good
c) Bad
d) Very Bad
a) Amul
b) Arun
c) Kwality walls
d) Mother dairy
8.) What source influenced you to buy this brand ice cream?
a) Less than once b) More than once c) More than twice d) More than thrice
12.) Are you satisfied with the ice cream you eat?
a) Yes b) No
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13.) Which packaging of ice cream do you purchase?
Bibliography
Website:
www.shodhaganga@INFLIBNET
www.Hatsun.com
www.hap.com
Reference:
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Book name; Dairy processing and Quality Assurance
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