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The purpose of this study is to study the relationship between the consumer and the product/service. In our case, product which was under study is Arun Ice-creams. An exploratory study of 15 adults was conducted to understand and analyse their relationship with Arun Ice creams. The respondents were selected on a convenient model basis. The results indicated have been thoroughly analysed .We have tried to learn about peoples knowledge, beliefs, preferences and satisfaction. It required development of a survey instrument in the form of a questionnaire that respondents were asked to fill. We then compiled and tabulated the data for further analysis.

Based on the data we analysed how Arun Ice-creams as an organization has been able to understand the buying decisions of the customers using an analysis of the data collected through the survey formulated. We then zeroed in on the parameters that the user has used here, to reach the purchasing decision. There are times when the consumer sets an acceptance cut off level for each attribute while sometimes they go by the perceived image. Being an eatable, there is very high expectations set on the product in use here. Satisfaction is a measurement of the looseness between expectations and the products perceived performance. If it falls short of expectations the customer feels disappointed. If it meets the expectations, the consumer is satisfied. However, if it exceeds expectations, the consumer is delighted. These are the feelings, which make a difference in whether the customer buys the product again and refers it further. Parameters ranging from age, taste, costs, health benefits, location were the diverse factors triggering a 'buy' have been taken into account. Now let us see how respondents for our survey feel about the product.

It gives us immense pleasure, as we are submitting our Arun Ice cream Project Report, to take the opportunity of expressing our sincere heart-felt gratitude towards our colleagues, mentors and seniors without whom our journey would not have been possible. I would like to thank Mr Tapan Panda (Marketing Management Professor), Nachiketa. S (Assistant Lecturer-Marketing Management) for giving us an opportunity to work on this project. We are grateful for their regular suggestions, support and timely help. Their suggestions and encouragement throughout the project helped us to obtain a better concept of Marketing Research and Pre-Post Purchase behaviour. Their suggestions helped us maintain a good quality of work. We are highly thankful to them for regularly and patiently guiding us in spite of their busy schedule.

Thanks and Regards, FT13102: Akanksha Singh FT13115: Arup Roy Chowdhury FT13127: Gaurav Varshney FT13137: Ishan Gupta FT13176: Suchita Gupta FT13188: Vignesh Varadarajan

The origin of ice cream can be traced back to at least the 4th century B.C. Early references include the Roman emperor Nero (A.D. 37-68) who ordered ice to be brought from the mountains and combined with fruit toppings and King Tang (A.D. 618-97) of Shang, China who had a method of creating ice and milk concoctions. Ice cream was likely brought from China back to Europe. Over time, recipes for ices, sherbets, and milk ices evolved and served in the fashionable Italian and French royal courts. Ice cream recipes first appeared in 18th-century England and America. The recipe for ice cream was published in Ms Mary Eales's receipts in London in 1718.


Ice cream industry in India occupies an important place. India being primarily an agrarian economy has a large number of cattle and a large milk production, most of the dairy and ice cream industries have developed and prospered in India. Ice cream industry has brought magnificent change in the rural economy given employment to many farmers. In 1983 government issued a control in which the certain price level was fixed. The ice cream market growth picked up after dereservation of the sector in 1997. The total size of Indian ice-cream industry is 800+ crores. In the organized sector the major player share Hindustan Lever represented mainly by Kwality Walls brand. Amul with an estimated market share of 38% is biggest player in market, also it is rapidly gaining market share and lastly Vadilal is the player in the national market with 8-9% of the market share. 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:The Indian government adopted the policy of liberalization regarding the ice-cream industry and it is since then that this sector has shown an annual growth ranging from 15-20% per annum for last 1- 2 year. Till now it is estimated at a net worth of 800+ crores. This growth rate is expected to continue for another next 2- 3 years because of lower base. Per capita consumption of ice-cream in India is still a dismal 106 ml per annum against 22 litres in markets like the US. So Indian ice-cream industry is still in its growth phase. This is a good sign for the current incumbents.

Indian ice-cream market can be categorized in three different ways namely on the basis of flavour, on the basis of stock keeping units/packaging and on the basis of consumer segments. On the basis of flavours the market today has a number of flavours like vanilla, strawberry, chocolate, mango, butterscotch a number of fruity concoctions; dry fruit flavours traditional flavours 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 flavour.



Arun Ice Creams is a popular ice cream brand in South India. Arun has over 1000 exclusive parlours. Of the 1,000 outlets, 670 are in Tamil Nadu, 148 in Karnataka and the rest in Kerala and Andhra Pradesh. It has over 70 flavours and combinations. Among these, many of them are India's first & trendsetters in their category such as the Colour Magic, an ice cream that changes colours. Hatsun has set up a 3000 litres per day ice cream plant in Seychelles in May 2008 and was setting up another plant in Fiji in the end of year 2009. It also has ice cream plant in Brunei.

R.G. Chandramogan, son of a vegetable wholesaler from Tamil Nadu, set up Arun Ice Cream in 1970 in Chennai. By investing Rs. 15,000 as his own capital and Rs. 21,000 as bank loan, he set up a small ice candy unit. Clocked in a turnover of Rs. 150,000 and profit of about Rs. 40,000 in the very first year of its operation. Emboldened by this early success, Chandramogan went for three-fold expansion in the second year of its operations. By 1974, Arun had captured 95% of the college canteen and ship-chandler segments. First Arun Ice Creams parlour was launched in 1978. In 1986, M/s. Hatsun Foods (HFPL) took over M/s. R.G. Chandramogan& Co. HFPL was allowed to register the brand name Arun in its own name subject to a royalty payment of 1% on the gross ice-creams sales.


The first Indian ice cream brand to be certified ISO 9000. More than 70 mouth-watering ice cream flavours and combinations. Unparalleled service to customers through exclusive franchise parlours. Great range of products available in a variety of categories. Unique blend of flavours, supreme combination of health and style. Available in cups, tubs, family and home pack cartons. Novel and innovative promotions. Ideal and convenient location of Ice cream parlours. Ice parlours present in small towns as well. cream


1. 2. 3. 1. EXOTICS 2. 3. Kulfi Maharaj Choco Swiss Vanilla Bloom Casata Ball Half Casata Ball Ice-creams Cake Roll


1. DELIGHTS 2. 1. 2. 3. 4. CUPS 5. 6. 7. 8. 9. 1. 2. 3. 4. 5. 6. 7. TUBS 8. 9.

American Delight Italian Delight Strawberry Vanilla Mango Pista Butterscotch Kaju Kismis Rose Magic Milk Fantasy Mixed Fruit Vanilla Blossom (Chocolate) Vanilla Blossom (Raspberry) Strawberry Vanilla Choco Crunch Butterscotch Pista Chocolate Fruit Salad

10. Almond Crisp 11. Raj Bhog 12. Mango Tango 13. Italian Delight 14. Blackcurrant.

1. 2. ICONE 3. 4. 5. 1. 2. 3. 4. BARS 5. 6. 7. 8. 9. 1. 2. SPECIALITIES 3. 4. 5. 1. SUGAR-FREE 2. 3.

Cream and Cookies Icone Choco-Vanilla Icone Strawberry Icone Butterscotch Icone chocolate Whistle Candy Likstick Grape Likstick Orange Mango Duet Bar Strawberry Duet Bar Chocobar Mini Chocobar Double Hit Mango 2-in-1 Mango Container Mini Ball Rose Mini Ball Vanilla Cake Slice Cassata Slice Vanilla Kesar Pista Strawberry

1. TOY-CUP 2.

Vanilla with Strawberry Ripple Vanilla with Chocolate Ripple


Explore the outlook of consumers towards Ice Creams. Understand the Pre and Post Purchase behavioural aspects of ice cream among customers. Analyse the relationship between a specific brand (ARUN) and its buying behaviour. Customer Preference and Satisfaction / Utility level associated with the product.

The Pre Purchase Evaluation Behaviour

Before any purchase is made by the consumer, he has a pre conceived notion about a 'SET' of brands. The model above shows a simplified diagrammatic version of pre-purchase behaviour. Subconsciously we may be aware of many brands but only a few have a 'recall value', these constitute an "evoked set". Of these brands which have a recall value only a few are considered from which a final purchase is made. The brands which are not considered due to many reasons namely quality, cost and lack of uniqueness.

The Post Purchase Evaluation Behaviour

Post purchase is the last phase in the decision making process in any purchase activity. It is common for consumers to experience concerns after making a purchase decision. These concerns are based on a concept "Cognitive Dissonance". The consumer after having bought a product may feel that the other brands of the 'evoked set' might have been a better choice. In these conditions the consumer will not repeat his purchase and may also shift to other brands. This behaviour may have been construed by the difference in the perceived product performance. To manage this discrepancy it is the job of marketing team to persuade the consumer that the product would meet up to the consumers expectation and it should be reinforced that the consumer has made a right decision.

The following techniques were adopted for data collection:


Primary data was collected through face to face interviews while filling up questionnaires. (18 RESPONDENTS)


Relevant information gathered from magazines, Internet, newspapers and project reports formed the secondary


The scope of this project study restricts itself to the analysis of consumer preferences, perception and post consumption experience of Arun Ice Creams. There are many other brands of ice creams available but this project is limited to the major player of ice creams in Tamil Nadu.

The questionnaire used was a printed, well-structured and formalized schedule to obtain and record specified and relevant information with fair accuracy and completeness. The questioning process was face to face interviews and the questionnaire contained both open ended and close ended questions.



Pre-Purchase:- Brand, Taste/Flavour and Price Brand Identity: The consumer considers the brand image a prominent element in his purchase process. It has to carry a certain status symbol and quality. Taste/Flavour: The purchase of the product is strongly influence by the taste and flavour of the product/brand. Sensory attributes play a major role in consumers to differentiate products. Price: Price should be affordable and the product should provide the best value for money in terms of quality/quantity and satisfaction.

Post-purchase:- Quality, Satisfaction, Experience Quality: The quality of the ice cream plays a key factor in determining whether the customer will re-purchase the brand or not. Satisfaction: The Customer is satisfied when the use of product fulfils the expectations of meeting instrumental and symbolic needs. Experience: The satisfaction level of the ice cream is measured by the quality and taste of ice cream the brand delivers and hence plays a vital role in determining his approach towards the Brand/Product.




Brand Preference
0% 0% 6% 5% 6% Amul Arun Baskin-Robbins Hagen-Dazs Kwality Walls 83% Others

The above pie chart depicts the brand preference of customers in our sample data. 83% of the customers preferred Arun Ice creams. People had almost equal preferences for the rest of the brands like Baskin-Robbins, Kwality Walls etc. None of the customers interviewed preferred Haagen-Dazs and Amul Ice cream.



19% 18% Taste/Flavor/Ingredients Price 11% 9% Shelf Life Brand Influence 21% Packaging importance Health Conciousness


The above pie chart depicts the attributes that influence a customers purchasing decision. 22 % of the customers go by the Brand and also lay an equal emphasis on the Longevity of the ice cream. Arun Ice Cream is identified as a local Brand of the region, people have brand loyalty because of this unique brand proposition. HATSUN should cash on this perceived brand advantage. When questioned about the longevity of Arun Ice Creams, customers were satisfied with the 6 months shelf life. 18% of the people surveyed attributed taste as the differentiating factor, and Arun met this criteria by its long run process (more delicious ice cream for the same volume)



Where to buy
10 8 6 4 2 0 Pushcart Ice Cream Parlours Super Markets

People prefer buying Ice-creams from pushcarts as they are readily available. Parlours are preferred by high end customers to spend quality time with family.


4. Target Customer

Target Consumer
Parents Children youth




As per our survey the primary target consumers of ice cream manufacturers were children, who were influenced by the new innovative flavours. The next biggest market category was that of the youths who were majorly concerned with the image of the brand. While, parents were the next category who were greatly influenced by their children choices


5. Advertising Pattern

Advertizing Pattern
TV 40% Radio Bill boards Print Media 27% 13% internet Word of Mouth 0%

20% 0%

Consumer awareness was created by TV, radio, Billboards, Print Media, internet, word of mouth Consumer brand recall was majorly influenced by TV, while Print Media was used to influence wider audience. An equally important method of promotion was by the way of 'word of mouth'. This kind of personal promotion was quite effective in driving up sales




Buying Pattern
Weekly Bi weekly Daily Monthly

13% 47% 40%


Ice creams being considered as a perishable product of the FMCG sector, people tend to consume it in a shorter period.

People prefer a weekly and daily purchase pattern rather than monthly purchase. To improve daily consumption, Arun needs to adopt a new strategy. For example. Arun can accept coupons distributed by various companies as incentives.

They can also launch offers on week days as mostly weekly consumers prefer it on weekends. Some customers have ice-creams with their family on a monthly basis. To target this customer base Arun could provide offers on bricks and big packs.


2. Experience Attributes

Service Satisfaction Brand Endorsement Product Satisfaction Paisa Vasool Brand Loyalty Availability Purchasibity Health Issues Dil Mange More Expectations Met 0 2 YES 4 NO 6 8 NEUTRAL 10 12 14 16

Post Purchase response for 15 customers are represented above. The most important attribute for post behaviour in our survey was brand endorsement Brand loyalty for our product was the least important in consumers perception As a general rule customer expectations were met by the product


3. Product Differentiator

Product Differentiaor
12 10 8 6 4 2 0 Flavours Variety Packaging Quality

As per our consumer survey the different products were differentiated on flavours, variety, packaging, quality Flavours was the most omnipotent feature of any ice cream Variety was the next most important feature It seems the consumer preference was influenced was more by the sense of taste.




High Profit Margins Growing at the rate of 12%Y-o-Y. Great range of products available in a variety of categories. Ideal and convenient location of Ice cream parlours. Unique blend of flavours, supreme combination of health and style. Strong customer base in South India. Market limited to only southern parts of India. Need to improve branding. As per our customer feedback survey, quality needs to be improved. Low per capita consumption of ice cream in India. Durability of ice cream can be improved. Innovative advertising and marketing strategies. New flavours can give competitive advantage. New products like low fat ice-creams. Tap the unexplored market.

Competition from national brands like Amul, Kwality Walls etc. Substitute products such as frozen yoghurt are also a possible threat.


There is immense scope for ice-cream market to develop in India. As per survey Indian consumer eats ice-cream weekly, we can exploit this market. Taste, flavour and brand are three main attributes that people feel are important for the purchase of ice-cream. There is room for the company to improve its brand image Mahabalipuram is tourist place Arun ice-cream should use this place for their brand endorsement. To attract more youth, special offers need to be given. Some of the new innovative ideas like launching new brand Ibaco need to be implemented fast. Company should also start accepting food coupons to target professionals who get them generally from their company as incentive. Finally we like to conclude that in Mahabalipuram people prefer Arun ice-cream over other brands.


The main source of data for the study was primary data with the help of self-administered questionnaires. The chances of unbiased information are less. People were hesitant to disclose the true facts. The chance of biased response cant be eliminated though all necessary steps were taken to avoid the same. The survey was limited to place of Mahabalipuram.




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