Havmor:

Business transformation to drive

profitable and sustainable growth
Client profile
The Havmor Group is one of the leading players in the West Indian food industry with
established ice cream, restaurants and parlor businesses. Known for its innovation,
Havmor is present in eight states and is one of the fastest-growing ice cream brands
in the country.

Opportunity
Through its Udaan 2020 initiative, Havmor seeks to achieve a turnover of
$150 million (approximately INR 1000 Crores) and quadruple its profitability by FY20.
To achieve these growth targets, Havmor needed to define a clear strategic roadmap
and structures, systems and processes required to support it.

To this end, Havmor engaged Accenture Strategy in a 42-month program to define

its long-term business strategy and help it implement interventions required for
achieving its planned growth. Evaluating the entire value chain, potential areas
of improvement were identified across six modules during the course of the
engagement: sales and distribution, marketing, procurement, manufacturing, portfolio
and pricing, and human resources.

Havmor chose to team with Accenture Strategy for its experience in business
transformation programs and its proposition to team with Havmor across the journey
to deliver value.

Solution
To understand Havmor’s challenges and ice cream market as a whole, the Accenture
Strategy team conducted market visits across nine states in India. The team
interviewed over 30 of the client’s own and competitor channel partners, more than
100 dealers and key internal stakeholders. Combining these qualitative insights with
quantitative data analysis, the team identified key modules that could make the
greatest impact. Basis this exhaustive evaluation, Accenture Strategy created value
through the following modules:
1. Long-term business strategy: Accenture Strategy created a five-year strategic
roadmap for Havmor to achieve its vision. The roadmap outlined key priorities on
three axes: geographies, customer segments and product categories, along with
the functional support required to operationalize these priorities. These priorities
were clubbed into logical set of projects, undertaken during next 12-15 months to
realize value.
2. Sales and distribution: Being a key driver for top line and bottom line growth, the
sales work stream focused on an end-to-end transformation of the sales function
comprising the following:
a. Increasing distribution penetration at town and dealer level.
b. E xecuting a comprehensive plan for new market entry, premium category growth
and business to business (B2B) business penetration.
c. Implementing an optimal sales force structure along with correct role definition,
aligned incentives and key result areas (KRAs).
d. D
 efining key sales operations processes such as a review mechanism, market
working, new product launch effectiveness, target setting, distributor
appointment, et cetera.
e. E mbedding correct enablers via a distributor management system, sales force
automation and a capability development plan.

2 | Havmor: Business transformation to drive profitable and sustainable growth

3. M
 arketing: Having established differentiation between sales and marketing,
Accenture Strategy created a separate marketing organization. Given the nascent
level of marketing processes, there was a lack of an overall marketing plan at
Havmor. The team focused on defining marketing priorities to enable sales—detailed
media planning across television, print and social media, consumer activation and
trial in key towns, merchandise planning and execution excellence, implementing
a return on investment (ROI)-based trade and consumer promotion calendar, and
piloting a consumer loyalty program. To close the loop, Accenture Strategy also put
in a mechanism for consumer research to evaluate marketing spend effectiveness
through a brand tracking and media audit.
4. Portfolio and pricing: Having a long tail in its portfolio, a cost to serve exercise
was undertaken leading to a 10 percent rationalization of low sales and low
profit stock keeping units (SKUs). In parallel, a comprehensive benchmarking
to competition portfolio helped identify 14 potential white spaces for Havmor. “My vision for Havmor is to grow
The whole process made its portfolio market relevant and aligned to current it into a national player and
business needs. Accenture Strategy also developed a scientific pricing approach— eventually become the biggest
defining an overall pricing strategy, using pricing analytics such as price elasticity
and laddering, competition intensity, et cetera to make pricing decisions. The
and most loved Indian ice-
new approach helped realize a price increase of more than four percent in a cream brand. Taking Accenture
competitive environment. Strategy on board to help me
5. P rocurement: Havmor was used to a price-centric approach to procurement and with my growth strategy has
it aimed to leverage leading practices and improve buying efficiency. Through been one of the best decisions
44 initiatives across 10 categories, including usage, process, working capital for the company. The team has
reduction and process-driven negotiation, Accenture Strategy was able to deliver
cost savings worth 3.6 percent of the targeted cost base.
helped us in strengthening
both our front-end through an
6. M
 anufacturing: Multiple initiatives were implemented by Accenture Strategy to
enhance manufacturing efficiency. This lead to throughput enhancement, wastage
in-depth sales and marketing
reduction, and blue-collar and white-collar productivity improvements. In so doing, transformation and back-
Havmor not only realized cost savings equivalent to approximately 1.5 percent of end through a cost reduction
their top line, but also optimized its capital expenditure. exercise on the procurement
7. H
 uman resources: To enable the organizational priorities, Accenture Strategy’s and manufacturing front,
HR work stream focused on four key areas: function-wise organization structures, leading to a visible improvement
a meritocracy-based performance management system, a time-bound talent
acquisition process and a learning and development agenda. These processes will
in the bottom-line. With the
go a long way towards making these interventions sustainable in future. very best minds on board,
Accenture Strategy not only laid
Results down the overall strategy and
business plan, but also helped
Buoyed by these initiatives, Havmor delivered market-leading growth in fiscal year
2015-2016 as well as realized an improvement of approximately 300 basis points in
us implement the same with
profit before tax earnings percentages. It expects to continue the momentum and great results and that is why,
deliver another 130 basis points improvement in fiscal year 2017. Accenture Strategy would be
To support the sustainability and long-term success, process adoption and benefit
my partner of choice for a truly
accrual for each work module is monitored on a monthly basis. Moreover, regular transformational journey going
updates from the client team ensure timely course correction if required. In addition, forward as well.”
key people gaps have been appropriately filled and their key result areas have been
aligned to help ensure continued focus. – Ankit Chona, Managing
Director and CEO, Havmor Ice
With help from Accenture Strategy, Havmor is well positioned to achieve its Udaan
2020 goal. Furthermore, it has established the appropriate processes, systems, Cream Limited
organization structures and capabilities to achieve rapid and sustainable growth.

3 | Havmor: Business transformation to drive profitable and sustainable growth

 About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining
unmatched experience and specialized skills across more
than 40 industries and all business functions—underpinned
by the world’s largest delivery network—Accenture works at
the intersection of business and technology to help clients
improve their performance and create sustainable value for
their stakeholders. With approximately 375,000 people serving
clients in more than 120 countries, Accenture drives innovation
to improve the way the world works and lives. Visit us at
www.accenture.com.

About Accenture Strategy

Accenture Strategy operates at the intersection of business
and technology. We bring together our capabilities in business,
technology, operations and function strategy to help our
clients envision and execute industry-specific strategies that
support enterprise wide transformation. Our focus on issues
related to digital disruption, competitiveness, global operating
models, talent and leadership help drive both efficiencies and
growth. For more information, follow @AccentureStrat or visit
www.accenture.com/strategy

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