MANAGEMENT THESIS

ON

“FACTORS INFLUENCING TO PURCHASE KWALITY WALLS ICE CREAM OVER

DINSHAW`S IRRESPECTIVE OF DEMOGRAPHIC PROFILE IN THE

ROURKELA”

By(PRANAB MISHRA)

E-No.0801215708

(INC Rourkela)

TABLE OF CONTENTS

1. Acknowledgements.

2. Introductiona. Objectives.b. Limitations.

3. Research Methodology.

4. Findings.

5. Conclusions.

6. Appendices.

7. References.

ACKNOWLEDGEMENTS

Any accomplishment requires the effort of many people and this work is not different. I am thankful to my faculty Supervisor Mr. C. P. Giri for supporting me and guiding me throughout the project. This report would not have been possible without her help.

I am equally thankful to the Principal, INC Rourkela, Mr. D. P. Das for encouraging me and inspiring me to do my project with full dedication.

PRANAB MISHRA

INTRODUCTION

HISTORY OF ICE CREAM

Ice Cream is the most famous delicacy all over the world. People of all ages love ice cream and frequently enjoy it.

Here are some amazing facts about ice cream:

Nero (37-68 A.D.), The Roman Emperor, is said to have eaten a sort of water-ice. The Chinese claim that they have been making and consuming Ice Cream since ages. Supposedly, Marco Polo (1254 – 1324) carried the Chinese Ice Cream recipes back with

him to Venice. These were then introduced to the French by Italian chefs retinue of Catherine de¢

Medici when she married Henri II of France. Royal Ice Cellars were built in Mesopotamia in around 2000 B.C. These were used to cool wines and foods During the late 1600s, The French King Louis XIV was known to have feasts with

colored water-ice and liqueurs. Nicholas Lemery’s Recueil de curiositéz rares et nouvelles de plus admirables effets de

la nature, published in 1674, contained the first recipe for flavored ices. The Quaker colonists who brought their ice cream recipes with them introduced ice

cream to the United States. It is said that Ice Cream was regularly consumed by Ben Franklin, George Washington,

and Thomas Jefferson. During the eighteenth century, the spread of ice pails and cookery books with ice recipes,

almost everywhere around the globe, resulted in the delicacy becoming more common. Robert Green, in 1874, is supposed to have invented the Ice Cream Soda, which took ice

cream consumption in America and other parts of the world to great heights. The twentieth century saw an explosion of sorts in the popularity of ice cream owing to

availability of cheap refrigeration. Italian confectioners made Gelato, their own form of Ice Cream, which became

immensely famous due its texture and lightness. During the St. Louis World’s Fair in 1904, cones were used for the first time to serve Ice

Cream.

A chemical research team in Britain came up with the soft ice cream, which had more air in it. It became immensely popular because of its creamy yet light texture. Today, it is popularly known as the ‘Softy’ ice cream.

In the 1980s, the older, thicker ice creams made a comeback and were referred to as ‘Premium’ Ice Creams.

Basically the ice-cream business comes under FMCG sector. In India, the condition of FMCG sector is very well and challenging. India is an important market for FMCG players. The Indian FMCG sector is the fourth largest sector in the economy with a total market size of around US$ 18.1 bn.

Ice-Cream segment of FMCG:-

Ice-cream is one of the most important part of FMCG sector. It comes under Food and Beverage segment. The total market value of Ice-cream trade in India is more than Rs.20000 crore. It is increasing day per day. During the year of 2002-02, there was very little demand of Ice-cream in India but as the time passed away, the demand of Ice-cream is also increasing in India. Now a day, there are six national level companies engaged in dealing with Ice-cream including two MNCs. The demand of Ice-cream is also increases in India.

As the demand of Ice-cream is increasing in India but the market of Ice-cream is not as much as it’s share in US and some other foreign countries. According to the survey of Motilal Oshwal, in the present time, the per capita consumption of Ice-cream in India is US $0.2 which is US $49 in USA and US $33 in Germany. We can see it in the following table:-

TABLE 1:- PER CAPITA CONSUMPTION OF ICE-CREAM (IN US $):-

As given in the above table, the per capita consumption of Ice-cream in India is only US $0.2 which is much smaller than the same in USA, but the main thing is the increasing opportunities for Ice-cream trade.

MAJOR FACTORS:-

1. The broad market of semi urban market. 2. Least no. of competition. 3. Increase in consumption level of people. 4. Favorable climate for ice-cream in India. 5. GDP growth and growth in per capita income.

We can get all the datas regarding the per capita incoma of India from the following table:-

TABLE 2:- PER CAPITA INCOME OF INDIA SINCE 2000

As given in the table, the GDP of India is increasing in the last 5 years. It has brought a remarkable change in the spending habits of consumers; it has moved the consumer’s preferences from economic to premium products. In those days, people unhasitantly wants to spend money on good and quality products. It has been a gain for food and beverage industry. As the result the ice cream industry is also improving and it develops at an increasing rate.

THE THREE STAGES IN CONSUMPTION PROCESS OF ICE- CREAM

Pre-purchase:- Brand image, Health issues, suitabilityBrand image of the ice cream - The consumer considers the kind of image the brand that he is going to purchase depicts. It has to suit certain status symbol, quality and any other personal brand requirements that the consumer may have. It is important that the brand maintains good will, satisfactory to the consumer Health Issue to ice creams relating-The modern consumer is highly health conscious and is becoming aware of the rising health issues and its impacts. It is important that the brand satisfies this need of the consumers and ensures health related gains rather than loss. About which we will be discussing further in this report.Suitability – The product should suit the taste, flavor and ingredients that is in line with the consumer needs and wants.

Purchase:-Price, Environment, ServicePrice of ice cream -Price should be affordable and the product should provide money’s worth in terms of quality, quantity and consumer satisfaction. as kids also form a main segment of our section a proper care should be given as far as pricing is concerned.Environment-The environment should be such that the consumer wants to stay there and spent some quality and quantity time.Service- The service should be fast so that the customer waiting time should be less and leads to their satisfaction and results in formation of good brand image.

Post-purchase:- Quality, Satisfaction, Store experienceQuality of ice cream – the quality of the ice cream delivered certainly plays a vital role in determining whether the customer will re purchase the brand or not. The quality and taste of ice cream determines the satisfaction level of the customer and hence plays a vital role in determining his approach towards the product.Satisfaction from ice cream- well satisfaction is a holistic picture the total experience of the customer with the brand considering various factors as mentioned above and then finally arriving at a conclusion saying whether he is satisfied or not from the product.

OBJECTIVES

Explore the mindset of the consumer towards ice-cream.

Understanding the buying behavior and thinking about Kwality Walls and Dinshaw`s ice cream.

Find out the preference of the consumer regarding the two brands.

Investigate the purchase of Kwality Walls over Dinshaw`s ice cream irrespective of demographic structure in Rourkela city.

Have comparative study of value of products of both the brands.

Determine the customer awareness regarding both the brands.

LIMITATIONS

Since ice-cream being an entertainment retailers are not able to highlight the exact

attributes.

Convenience sampling used here has its own limitations.

There have been some inaccuracies due to non – cooperative and rude behavior of the

respondents.

Due to unavailability of accurate secondary data, my reliance was made on the

primary data.

When I interviewed children and teenagers, sometimes they use to give answers under the influence of their parents or elders.

Dinshaw`s ice cream has no homepage.

Few outlets for Kwality Wall`s ice cream.

RESEARCH METHOD

SAMPLING METHOD

Convenience sampling was used by the researcher because it is easy and cheap to collect data. Moreover the population size was very large to cover so it was best to use convenience sampling.

DATA COLLECTION

Both Primary as well as Secondary Research Method has been included for preparing this final report.

PRIMARY SOURCE

Observation Personal Interviews

OBSERVATIONS - It is the methods of nothing and recording information without asking specific question from the respondents. The advantage of this method is that it is highly effective to provide information asked for.

PERSONAL INTERVIEWS - In this method I asks the question from the performa in the order questions are listed and record the replies.

SECONDARY SOURCE

Google search engine.

Other web links.

COMPANY PROFILE

KWALITY ICE CREAM

Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale. As the ice-cream industry exploded in India, in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back. The Indian consumer market was introduced to “KWALITY WALLS” – the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality. Though the two giants eventually parted ways, the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market. Today, Kwality is not just a brand – it is the ice-cream associated with the Indian summer; it’s the first choice in ice-cream for any child or adult during the scorching Indian summers. Kwality ice-creams are trusted not only for their rich, creamy flavours, but also for their trusted quality and nutritious food value.

PRODUCT PROFILE

TypeSelection

TiramisuNochiola

Caramel CrunchCookies n Cream

Fruit n NutMocha Brownie Fudge

Paddle Pop Black Grape Jelly

Candy Cake XplosionChoco Berry Nova

Choco Vanilla

Feast Chocobar,Chocolate,

Almond Fudge,Fruit n Nut,

MooStick

Sandwich Multi

Cornetto Snackers

Filrty StrawberryChoco FudgeButter Scotch

Italian Gelato

DINSHAW’S ICE CREAM

INCEPTION

Early 1930s:Two enterprising brothers, DINSHAW and ERUCH RANA, started a small dairy business in Gittikhadan, on the outskirts of Nagpur. Their obsession with quality and transparent business practices, brought prosperity and confidence to the young businessmen. When opportunity knocked in the form of an Englishman who suggested that they try manufacturing ice cream, the idea was readily translated into reality. “DINSHAW’S ICE CREAM” was born in 1933 when Nagpurians came to know the creamy, hand churned delicacy.

INTIAL GROWTHAn alien concept, ice cream eating was considered a luxury, which could only be indulged in, on very special days during the sweltering heat of Nagpur’s grueling summer. The conviction of their ultimate success, and the vision of these young entrepreneurs, far outweighed the difficulties of running a purely seasonal business with its vagaries of demand . By mid forties, Nagpur’s gentry had extended ice cream eating into the winter and the name DINSHAW’S had become synonymous with the ice cream in Nagpur.

THE SECOND GENERATION GROWTH: SAM DINSHAW RANA and JIMMY ERUCH RANA put on the mantles of their august fathers. Burning with the same zeal to succeed, the same uncompromising attitude towards quality and service, the Rana cousins struck out for wider horizons in 1981. With an investment of just Rs.5 Lakhs, a small factory came up to replace the cattle pounds. The dairy business gracefully gave way to its prospering offspring, the ice-cream business.

The magic of” “DINSHAW’S goodwill spawned a net work of enthusiastic dealer-franchises all over central India, where DINSHAW’S enjoy near monopoly even today.

Success breeds Success. The sound business principles of the founders, which gave them their initial success, became the foundation of DINSHAW’S business edifice. Quality consciousness went beyond the quality of relations with employees, business associates and its ultimate

consumer. By 1987 DINSHAW’S was known in central India as not only the company, which made the best ice creams, but also the company that built best relations.

Persistent efforts from prospective distributors and dealers of other areas and greater demand for varieties from existing areas forced DINSHAW’S to expand its manufacturing capacities. Imported continuous freezers expand plants and storage facilities wide with market demand.

By 1989 cold storage depots had sprung up in Raipur, Jabalpur, Indore, Akola, Aurangabad, Pune, Hyderabad, Guntur and Vishakhapatnam more by pressures of demand than by design. Consumer appreciation for its products and for its credo of “VALUE FOR MONEY” forced continuous expansion and modernization of manufacturing capacities which today are to the tune of 35000 Liters of ice-cream per day. By 1990 the business was experiencing difficulty in getting regular supplies of good quality to need its ever-increasing needs. The obstacles were turned into an opportunity to diversify into Diary business.

The firm had turned full circle by coming back to its parent business of Diary which today has a capacity to process and pouch 1lac liters of Milk per day. The citizens of Nagpur who were dependent only on milk supplied by Government Milk Scheme and local vendors welcomed the supply of standardized quality milk and DINSHAW’S became the first branded milk to be sold in Nagpur.

Being a responsible corporate citizen and being aware of the needs of protecting its environment, DINSHAW’S have invested more than Rs.70 lakhs in an Effluent Treatment Plant, which is a model for any industry of its size. As in all other areas, Dinshaw’s foray in Bombay has been on a low key. DINSHAW’S have been able to grow in the face of competition from national and multinational giants of the industry because of the inherent strength of its products, policies and people.

PRODUCT PROFILE

TypeCups

FundaeStrawberry

VanillaBig Cups

Kesar pistaChoco chipsKaju KismisButter Scotch

MangoPista

Strawberry Vanilla

BarsIce LoliesHeart Beat

Tripple TreatChamp Chocó bar

Chocó barKulfi

Take Home PacksFamily TubsAnjir Badam

Mocha AlmondBanana Split

Kesar KamaalKing AlphansoFruit OverloadChocó ChipsButter Scotch

Pineapple Supreme

Smart PacksSmart Raspberry

Smart Mango TagoFamily Packs

VanillaStrawberry

Pista

Party PacksKesar Pista

Butter Scotch3 in 1

StrawberryVanilla

LogLamour

Club Pack

NoveltiesSundaes

Maha SundaeButter Scotch

Mocha AlmondFruity Fundae

Novelties

CassattaFlora Kulfi

Yorker

Cones

CarnivalButter ScotchChocó chipsOrange city

Badam Roasted

ANALYSING AND INTERPRETETION

Credit period

Company Days

Kwality Walls 5-6 days

Dinshaw’s 7 days

The credit period given by Dinshaw`s is 7 days as compared to Kwality

Walls which is providing credit period of 5-6 days.

COMPLAIN

Company Major complaint Rating

Kwality Walls Delivery time is high **

Dinshaw’s Poor service during peak season **

Rating levels

**** 100% satisfied

*** More than 80%

** More than 60 %

* Below 60%

It was observed that the dealers are complaining.

4 star systems is used to find the satisfaction level.

Margin structure

Brand`s Name Margin to Distributor Margin to Retailer

Kwality Walls 8% 22%

Dinshaws 10% 25.50%

Dinshaws is giving more margin than Kwality Walls.

Market share (Product wise)

Product Percentage

Strawberry 30%

Chocolate 18%

Mango 18%

Vanilla 14%

Others 20%

Even after the entry so many differentiated product ranges Strawberry is

still ruling the market.

Importance of Attributes

Attributes Conscious

Taste 39%

Price 44%

Company Image 6.5%

Advertisement 10%

It is observed that the people in Rourkela city are more conscious about Price

than Taste.

These are the four factors which affects the buyers’ decision process.

Data regarding different consumer’s choice

The above graph is showing the demand of ice-cream among the different age level of consumers. As per above data chart, the consumption of ice-cream is more among the teenagers. Due to the season, trend, advertisement, and some other requirements, they prefer ice-cream much more. At the present time, the 41% of total consumption of ice-cream is done by teenagers. Children are second most demandable consumer for ice-cream. In the other sense we can say that the children are the way to turn a person’s mindset for purchasing of goods. Present time, there are 23% of total consumption of ice-cream is done by children. From the last few years, the demand of ice-cream is increased among the service persons, college students, sports persons etc. the 21% of total consumption of ice-cream is made by adult persons. There are some flavors of ice-cream like strawberry, chocolate etc are most preferred by old peoples. 15% of total consumption is done by old persons.

TEENAGER CHILD ADULT OLD PERSON

41%

23%21%

15%

CONSUMPTION OF ICE-CREAMTEENAGER CHILD ADULT OLD PERSON

Quality

COMPARE QUALITY OF BOTH ICE-CREAMCOMPANY

PRODUCT AWARENESS

All people are known about dinshaws ice-cream.

Market Share(Kwality walls vs. Dinshaws)

The following table shows the market share of each company in Nasik ice-cream market.

Company PercentageKwality Walls 9%

Dinshaws 23%

Dinshaws ice-cream share is 23% in Rourkela ice cream market. dinshaws ice-cream has also exclusive parlors.

LITERATURE REVIEW

Today Consumers have higher expectations than ever before. They want products to match these expectations. They also want accurate, up-to-date and useful information about what they buy and above all they need Quality According to the report of Sumit Kukreja, a management trainee from Amity University, food and beverages are the one of the largest growing trade in FMCG sector and ice-cream is the pathfinder of this trade. The continues grow in the demand of ice-cream in India is showing the great opportunity in future.

Motilal Oshwal, a marketing research company has been reported that the growth rate of ice-cream in India is steady but it increasing in the future. Survey by A. C. Nielsen shows about 71 per cent of Indian take notice of pack-aged goods' labels containing nutritional, information compared to two years ago which was only 59 per cent. India is the largest milk producer in the world, yet only around 15 per cent of the milk is processed. The organized liquid milk business is in its infancy and also has large long-term growth potential. Even investment opportunities exist in value-added products like desserts, puddings etc. According to CMIE Data, Aggregate sale of this industry is expected to increase by 19.2 per cent during the December 2009 quarter.

FINDINGS

1. The basic reason of buying that brand most of the answers were quality, availability, packaging and the décor of the store.

2. Consumers preferring DINSHAW`S and KWALITY WALLS were a bit price conscious though but they agreed that they do look for more quality and taste.

3. The advertisements and offers do influence consumers purchase behavior regarding ice cream.

4. The basic needs that consumers want to fulfill through an ice cream are taste and quality. And that without providing taste it is not possible to sell a product like ice cream.

5. Any ice cream brand in the town should have innovative packaging, more flavors, availability, natural elements etc. to cater to their unfulfilled needs.

6. There is lack of Sales Promotional Activities i.e. free tattoo, extra weight, toys, quiz contest etc.

7. Some of retailers places both brands according to consciousness and demand of

customer

8. Dinshaws ice-cream share is 23% in Rourkela ice cream market whereas Kwality walls has only 9% market share.

9. The quality of Dinshaws ice cream is better than Kwality walls ice cream.

10. Dinshaws ice-cream has different variety of ice-cream. They have provided many packs such as select & premium. These two have provided the customer to choose a pack of his choice.

CONCLUSIONS

1) The response regarding both the companies varies from person to person.

2) India has a good potential market for the ice-cream; research shows that an average

Indian eats ice-cream four times a year so company must try to increase this rate by

promoting effective campaign.

3) Taste and price are the two main attributes that people feel important for the purchase of

ice-cream.

4) During survey it was found that Kwality Walls has less visibility, which has capability to

retain image in consumers mind. So it is very necessary to increase it.

5) Rourkela has lots of nearby places for picnic, which remains overcrowded on weekends,

so more mobile vans should be added to increase the sales.

6) Some of the innovative ideas should be made for the high selling retailers. Such as

forming the club and giving them special packages which will encourage the dealers.

7) To attract youths, sponsorship programs needs to be taken.

8) The rates of all the companies are generally equal. But special item of ice-cream’s rates

are different. Such as party packs, family packs, novelty & other the rates, which are

equal of all the companies in regular items such as Ice candy, Bar, Cone, Small Cups &

Large Cups.

9) Finally I would like to conclude that as far as Rourkela city is concerned people purchase

more of Dinshaws ice cream instead of Kwality Walls ice cream.

APPENDICES

QUESTIONNAIRE (Common)

1. What is your favorite brand in ice cream?

2. What makes you like that ice cream?

3. How much importance does price play in your choice of brand of ice cream?

4. To what extent do the advertisements and offers influence your purchase?

5. What is the only thing that an ice cream must have according to you?

6. What will be the factors that you suggest a new ice cream brand in your town should have?

QUESTIONNAIRE (Special)

1. DO YOU KEEP THE ICE-CREAM? A) YES__ B) NO__

2. WHICH IS YOUR LARGEST SELLING ICE-CREAM BRAND? A) DINSHAWS__ B) KWALITY WALLS__

3. WHICH CATEGORY OF ICE-CREAM PREFERS BY CONSUMERS? A) PREMIUM __ B) CONE__ C) CUP__ D) STICK__

E) OTHERS__.

4. ARE YOU SATSFY WITH THE DELIVERY SYSTEM OF DISTRIBUTOR?

A) STRONGLY SATISFY__ B) SATISFY__

A) AVG. SATISFY__ D) LOWER SATISFY__

E) UNSATISFY__

5. How do you scale your ice-cream?

ATTRIBUTE POOR AVERAGE GOOD EXCELLENT

PRICE

SWEETNESS

PACKAGING

SCHEMES

AVAILABILITY

6. SUGGESSIONS…………………………..

REFERENCES

http://www.kwalitywalls.in/hoic.htmhttp://www.kwalitywalls.in/freezer.htmhttp://www.hul.co.in/brands/kwality_walls.asphttp://www.scribed.comhttp://www.google.com