Arun Ice Cream

ARUN ICE CREAM

Parvadavardini.S – 9UTA19

Executive Summary

R.G. Chandramogan, the chairman and the managing director of Arun Ice cream, a part of Hatsun Milk Food Limited. He took immense efforts to differentiate his product from the market (where there were 350 players), through various strategies. With the help of his maternal uncle who suggested him to take up the ice cream business in south India, with a low budget capital he started the business in Madras. Wherein there were dominating ice cream brands like Dasaprakash, Joy and Kwality, who were covering up the entire higher segment market. Chandramogan worked really hard and expanded his business after some time by gaining some experience to face the competitors. He started his own factory for producing ice creams, and started over the counter sales initially with low profit margin and low selling price.

After few years, he felt that he should move to the upper market segment and found that there were three categories that he has to cover to capture the market. They were general provision store, hotels and restaurants and social events like wedding parties. Though they were already captured by the leading ice cream brands, he couldn’t move directly into it. So he found that his product had a niche market and he concentrated in the college and school segment to make Arun brand popular. Somehow he was able to cover the social events, but hotels were giving priority to the low priced ice cream products. So he left that idea and started the Sit ‘n’ Eat parlours with the idea of his friend. Progressively he also gave franchise to his own friends and relatives initially and then he thought of making Arun popular in South India. As demand increased, logistics problem was a problem so he planned to start another factory in Salem and Red Hills under the name Hatsun Products. More promotions and offers were given to increase the sales during off season. Raw materials (Mainly Milk) was collected from the near by...