Anil Production Ltd

CHAPTER # 1

INTRODUCTION

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(A) MARKET OFFERING AND PROJECT:

The market offering is a combination of both products and service. This café-cum-ice-cream parlour aims to serve a variety of snacks, deserts, beverages, and ice-creams along with gelato-an Italian novelty of ice-cream.

Gelato, or the plural Gelati, is Italian ice cream made from milk and sugar, combined with other flavorings. The gelato ingredients (after an optional pasteurization) are frozen while stirring to break up ice crystals as they form. Like high end ice cream, gelato generally has less than 35% air - resulting in a dense and extremely flavourful product.

This café would be designed to cater people of 18-25 years of age primarily. This age group includes college going youth as well as newly working people. The café is intended to be situated near colleges, call centers, hanging out places, or malls that attract young people. The target group contains people primarily from upper class and upper middle class.

In order to understand demographic, psychographic & behavioural profiles of the target population, we conducted a sample survey on consumers of selected café.

To judge the feasibility of opening café in a mall, we observed selected malls & hypermarket which are operational in Ahmedabad. Our aim was to observe various aspects related to food court & several parameters of these malls that affect food court visitors.

As this café is intended to serve ice cream also, a sample survey on consumers of ice cream parlours, primarily of people of 18-30 years of age, was conducted. This survey revealed useful information on various demographic, behavioural & psychographic aspects of the target population.

We conducted survey on outlets of selected ice cream brands in Ahmedabad to understand their format and other operational parameters.

These observations and surveys generated useful information regarding consumer habits and preferences and for assessing mall as a feasible location for the café. It also revealed information regarding operational parameters of outlets of various ice cream brands.

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(B) INTRODUCTION AND BRIEF HISTORY OF ANIL PRODUCTS LIMITED:

Vision

“ To be a leader in Indian Corn Wet Milling industry and become a player of global recognition.”

Mission

“We aim to expand the business by establishing presence in the global markets and growing Indian market by striving to provide total customer satisfaction and competitive value to the customers through total quality excellence.”

ANIL PRODUCTS LTD., erstwhile known as The Anil Starch Products

Ltd., situated in the city of Ahmedabad, is one of the oldest and largest corn

(maize) wet millers in India. It is part of the LALBHAI GROUP, a group that has

played an important role in the commercial, cultural and educational development

of the city of Ahmedabad, in particular, and Gujarat in general. Today, the

LALBHAI GROUP has operations at various locations in India and abroad.

Anil Products Limited (APL/Anil) was established in the year 1939 by

Late Shri Chinubhai Manibhai Sheth in the name of The Anil Starch Products

Limited (ASPL) and subsequently its name has been changed to APL by virtue of a

recently concluded restructuring exercise.

Anil is one of the oldest and largest Corn Wet Milling (CWM) Units in the

country producing the entire range of starches from basic Maize Starch to

Modified and Specialty Starches and related down stream products like Dextrose

Monohydrate, Anhydrous Dextrose, Corn Syrup, and Sorbitol.

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Anil commenced the operations in 1941 with 1 Ton grind per day. From

there the company has grown to 450 Tons per day and proceeded to produce

complete range of starch products. Anil is a pioneer in the introduction of various

products in the Indian market and manufactures a range of products for textile,

food, pharmaceutical, chemical, paper and other industries in India.

Chronology of development

Manufacturing facility Year of commissioning

Corn wet milling 1941Corn syrup (Liquid Glucose) 1943Calcium Gluconate 1951Dextrose 1959Enzymes 1967Anhydrous dextrose 1970Sorbitol 1976

Anil was the first manufacturer of products shown in bold face.

Over the years, Anil realized that it has the opportunity to take an early

mover advantage and decided to develop new applications of the existing product

range and also new products, so as to climb up the value chain. This involved a

considerable investment in terms of developing and building up strong research

and development capabilities and also focusing on new market development while

launching the new value added products based on newer applications. Thus, the

last decade can be truly described as a phase of development, through intense R &

D efforts put in by the company essentially for development of new product, new

applications and new markets. It can be stated that Anil is today the largest

producer of modified starches (down stream value added products) in the country

and with this strong platform is poised to achieve rapid growth both in terms of

top line, but more particularly in terms of the bottom line, in the coming years.

4

Factory / Business Location

Anil Road, Ahmedabad-380025

Gujarat, India

Area: 150000 Sq. Meters

A Break-up of product Group-wise capacities is indicated below:

Product Group Capacity (TPA)Grind 1,60,000Starch 48,000Modified Starches 15,000Liquid Glucose 24,000Dextrose Monohydrate (DMH) 17,500ANH Dextrose (AD) 6,000Sorbitol 3,250Hydroxy Ethylated Biopolymer 1825Other Modified Starches 4000

Total Sales in Rs. Million

FY 2001-02 : 953.99FY 2002-03 : 1075.24FY 2003-04 : 1403.30FY 2004-05 : 1800 (Appx)FY 2005-06 : 1800 (Appx)FY 2006-07 : 2100 (Appx)

No. of employees in Workmen category : 600No. of employees in Staff / Management Category : 200

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(C) INDUSTRY OVERVIEW:

CAFÉ:

In India, Café Coffee Day was the pioneer of café culture. It established its first café in 1996 in Bangalore. Currently it has grown to 3096 outlets in 34 cities of India. After Café Coffee Day, many national as well as international players entered Indian market.

Many changes in economic, demographic, social, and cultural profile of Indian mega cities, altogether, create great opportunity for upcoming café and restaurants.

According to National Council for Applied Economic Research (NCAER) 2005-2006 report, in India, 77% of routine household expenditure is spent on food and beverages. India’s GDP is growing at about 9% p.a. and it is expected to cross 10% p.a. in the coming years. With growth in the economy and national income, the purchasing power of an average Indian is rising significantly.

Looking at the demographics, India has the second largest population in the world and 65% of this population is below 40 years of age. Today in India, average age is near to 24 years. Comparatively, youngsters are getting more freedom and more money to spend.

The economic growth has brought with it more workload and more stressful life. This calls for a need for places for recreation and socializing. More and more people are visiting cafes and restaurants for the same reason. In fact, it has become an inseparable part of day to day lives for many of them.

Now, looking at the local market, Ahmedabad is a growing mega city. It is a vast pool of opportunity that attracts people from allover India and abroad. This is also one of the reasons why many food joints in Ahmedabad have received an overwhelming response. People of Ahmedabad have always welcomed almost all kinds of cuisines such as Punjabi, South Indian, Chinese, Italian, Continental, etc.

Ahmedabad has a large number of educational institutions and thousands of students are studying in those colleges. Also, like in other mega cities café culture is growing rapidly over here. APL, taking into account all these positive signs for growth of hospitality business in Ahmedabad, stepped forward to tape this opportunity.

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ICE CREAM INDUSTRY:

The ice cream market growth picked up after de-reservation of the sector in 1997. Of the total size of Rs 15-16bn, around 30-32% is in the hands of organized sector, rest all is with the unorganized sector. Among the major players in this industry Hindustan Lever has a market share of around 50%, represented mainly by Kwality Walls brand. Amul with an estimated market share of 35% is rapidly gaining market share and lastly Vadilal is the player in the national market with 8-9% of the market share.

Production area:

In rural areas, kulfis / ice creams made by small / cottage industry are popular. The market for organized sector is restricted to large metropolitan cities. Almost 40% of the ice creams sold in the country are consumed in the western region, followed by 30% in the north and 20% in the south. Ahmedabad, being a major city in the western region, definitely has a good market potential.

Types of markets:

Indian Ice Cream market can be segmented in three different ways, namely on the basis of flavors; on the basis of stock keeping units / packaging and on the basis of consumer segments.

Growth promotional activities:

The Indian government adopted the policy of liberalization in 1991. The ice cream industry also benefited from de-reservation in 1997. Since then this sector showed an annual growth ranging from 15- 20% per annum in the initial 2-3 years itself.

Since the last few months, Ahmedabad has been fortunate to experience the Gelato- an Italian brother of ice-cream, with its first gelato serving parlour in the city. Gelato, with its distinct freshness, low fat content and rich texture, attracts people who love to have fresh ice cream as well as the health conscious.

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CHAPTER # 2

RESEARCH METHODOLOGY

8

OBJECTIVE OF THE STUDY

“Our objective is to identify a suitable market segment and understand their needs and preferences regarding the offering and understand various aspects for launching a café in Ahmedabad”

CONSUMER’S SURVEY FOR CAFE

(A) Objectives:

1. Understanding the demographic, psychographic, and behavioral aspect of

consumers of café in Ahmedabad.

2. To get an idea of consumer preferences regarding café in Ahmedabad.

(B) Research plan:

(I) Source of data: Primary data source

(II)Data collection method: Personal interview

(III) Research instrument: Questionnaire

(C) Survey design:

(I) Target population: Customers of high-profile café in western part of the

city e.g. Barista, CafeCoffeeDay

(II) Sampling unit: Consumers of selected café

(II)Sample size: 350

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(III) Sampling method: Simple random sampling.

(IV) Scope: The scope of our study is limited to customers of café in posh

areas that attract youth.

OBSERVATION OF MALLS AND HYPERMARKETS

(A) Objectives:

1. To assess feasibility of opening a café in a mall.

2. To ascertain the ratio and demographics of people visiting foot courts in malls.

(B) Research plan:

(I) Source of data: Primary data source

(II)Data collection method: Observation

(III) Research instrument: Questionnaire

(C) Survey design:

(I) Target population : Malls and hypermarkets in Ahmedabad.

(II)Sampling unit : site

(III) Sample size: 4

(IV) Sampling method: convenience sampling.

(V) Scope: Scope of our study is limited to the operational parameters that affect food court.

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CONSUMER SURVEY FOR ICE-CREAM

(A) Objectives:

2. Understanding the demographic, psychographic, and behavioral aspect of young consumers visiting ice-cream parlours in Ahmedabad.

3. To ascertain the proportion of consumers that prefer to have ice-cream in café.

4. To understand consumer preferences regarding ice-cream.

(B) Research plan:

(IV) Source of data: Primary data source

(V) Data collection method: Personal interview

(VI) Research instrument: Questionnaire

(C) Survey design:

(I) Target population: Consumers of ice-cream parlours of 18-25 years of age.

(II)Sampling unit: Consumers of selected ice-cream parlours of 18-25 years of age.

(III) Sample size: 300

(IV) Sampling method: Simple random sampling.

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(V) Scope: The scope of our study is limited to consumers of selected ice-cream parlours of 18-30 years of age

SURVEY OF ICE-CREAM PARLOURS

(A) Objective :

To understand format and operational parameters of outlets of ice cream brands.

(B) Research plan:

(I) Source of data: Primary data source

(II) Data collection method: Personal interview & observation

(III) Research instrument: Questionnaire

(C) Survey design:

(I) Target population: Ice-cream parlours of famous brands.

(II)Sampling unit: Selected ice-cream parlours

(III) Sample size: 17

(IV) Sampling method: Simple random sampling.

(V) Scope: The scope of our study is limited to selected ice-cream parlours of famous brands, in the western region of the city. It does not

include local ice-cream parlours.

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CHAPTER # 3

DATA ANALYSIS AND INTERPRETATION

13

CAFE

DEMOGRAPHIC DISTRIBUTION OF THE SAMPLE

GENDERMale 250Female 100Total 350

The inequality between no. of male and female respondents can have a bearing on results regarding preference for non-smoking section. But other responses can be considered bias-free.

GENDER

71%

29%Male

Female

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AGE-WISE BREAK-UP

20

162

104

42

8 3 11

020406080

100120140160180

≤18 19-22 23-25 26-30 31-35 36-40 NR

Age - groups

No

. of

res

po

nd

en

ts

(*NR= Not Replied) The most lucrative segment is that of college-going youth (19-22) with 46%

share and the second most attention dragging segment is that of post-graduate students/ newly working executives (23-25) sharing appx. 30%market.

FAMILY SIZE

56

122

76

2615

55

0

20

40

60

80

100

120

140

3 4 5 6 ≥ 7 NR

No. of members

No

. of

res

po

nd

en

ts

51% of the total no. of respondents have 3-4 family members, which indicates high disposable income. Also, 22% people have 5 family members.

15

BEHAVIORAL ASPECTS

USAGE RATE:

FREQUENCY OF VISITSOnce a week 1852-3 times a week 94More than 3 times a week 57Once a month 14

Total 350

FREQUENCY OF VISITS

53%

27%

16%4% Once a week

2-3 times a week

More than 3 times aweek

Once a month

16

Almost half of the people (53%) visit cafe once a week preferably between 8-10 p.m. There is not much discrimination as to preferable days of week. But definitely, more no. of customers can be expected on Sunday and Saturday.

PREFERRED DAYS OF WEEKWeekday 146Saturday 148Sunday 159

Total 453

PREFERRED DAYS OF WEEK

32%

33%

35%Weekday

Saturday

Sunday

PREFERRED TIME SLOT

6 to 8 1138 to 10 21510 to 12 63

Total 391

17

PREFERRED TIME SLOT

29%

55%

16%

6 to 8

8 to 10

10 to 12

PREFERENCE REGARDING FOOD & CAFÉ:

TYPE OF FOOD ORDERED

24%

14%

18%

44%Snacks

Mocktail

Dessert

Coffee

FOOD ORDERED WITH SNACKS

26%

24%

50%Mocktail

Dessert

Coffee

In a café people prefer coffee the most followed by snacks. Also, with snacks too, people like to have coffee the most.

PREFERRED CUISINEMexican 47Italian 70Thai 9Chinese 132Indian 233

Total 491

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PREFERRED CUISINE

10%

27%

47%

14%

2%

Italian

Thai

Chinese

Indian

Total

Most people prefer Indian food. Also, Italian and Chinese cuisines are quite popular.

CCD enjoys the largest share followed by MOCHA.The reasons for CCD’s success can be referred as follows:

Strategic locations Attractive layout Ambience

PREFERRED CAFÉCCD 204MOCHA 130Upper Crust 44New Yorker 13Others 42

Total 433

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PREFERRED CAFE

47%

30%

10%

3%10%

CCD

MOCHA

Upper crust

New yorker

Others

BENEFITS SOUGHT BY CUSTOMERS:

Following are certain attributes sought by customers while selecting a café as ranked by respondents in order of importance according to them:

1. Taste of food2. Privacy3. Fun place to hang out4. Ambience5. Speed of service6. Variety of menu selections7. Value8. Portion sizes

Effect Of Special Price Discount:

EFFECT OF SPECIAL PRICE DISCOUNT

Very likely 115

20

Likely 155

Not likely 80

Total 350

77% of the people are likely to be attracted by a special price discount. Still, we have to judge the likelihood of attracting different classes of people according to their spending power.

AMOUNT SPENT PER PERSON

<50 1850-70 10470-100 124>100 104

Total 350

EFFECT OF SPECIAL PRICE DISCOUNT

33%

44%

23% Very likely

Likely

Not likely

21

AMOUNT SPENT PER PERSON

5%

30%

35%

30% <50

50-70

70-100

>100

Here it is visible that there is not much difference among classes of people according to their spending per person at a café. But a big segment can be attracted by special price discounts. Surprisingly, many of those spending more than Rs.100 can be attracted by discounts. This class also includes people who visit café 2-3 times a week.

EXTRAS :

OTHER ATTRACTIONS

Music 240

TV 71

Private party space 106

Total 417

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OTHER ATTRACTIONS

58%17%

25%

Music

TV

Private party space

58% of the total responses were in favour of music. Most of them like to

have light music in café so that they can comfortably chat with their friends. Also, as mentioned earlier, people like to have some private part space in café.

Preference For A Café Which Starts Operating In The Morning:

PREFER CAFÉ THAT STARTS OPERATIONS IN MORNING?

Yes 108

No 48

Total 156

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PREFER OPERATIONS IN THE MORNING?

69%

31%

Yes

No

Many of the morning college students prefer café that starts operating in the morning.

Preference For Non-Smoking Section:

PREFER A NON-SMOKING SECTION?

Yes 235

No 115

Total 350

PREFER A NON-SMOKING SECTION?

67%

33%yes

no

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PSYCHOGRAPHIC ASPECTS

Following are some of the psychographic variables which show lifestyle of the respondents:

Willingness To Pay Extra For Low Fat/Calorie Food:

WILLING TO PAY EXTRA FOR LOW CALORIE FOOD?

Yes 108No 87

Total 195

WILLING TO PAY EXTRA FOR LOW FAT/CALORIE FOOD?

55%45% Yes

No

55% of the respondents are ready to pay extra for low fat/calorie food. It shows health consciousness of these people. Preference for low calorie food is good for opening a café- cum- gelateria.

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Preference To Celebrate Occasions In Café:

PREFER TO CELEBRATE OCCASIONS IN CAFÉ?

Yes 204

No 146

Total 350

PREFER TO CELEBRATE OCCASIONS IN CAFE?

58%

42% Yes

No

55% of the respondents prefer to celebrate occasions like birthday in café. This rising trend for celebrating such occasions in café calls for need of a private party space too.

Preferred Newspaper:

PREFERRED NEWSPAPERTimes of India 121Gujarat Samachar 29Divya Bhaskar 25Sandesh 16

Total 191

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PREFERRED NEWSPAPER

64%15%

13%

8%

TOI

GS

DB

Sandesh

64% of the responses were in favour of the Times of India, whereas 15% of the responses were in favour of Gujarat Samachar. Readership of Divya Bhaskar and sandesh is comparatively very less. For advertising, Times of India seems to be the best in print media.

(Note: 1. Many of the questions involved multiple answers, therefore the total number of

responses exceed total no. of respondents.2. In questions regarding consumer preference only those questionnaires were included

for analysis in which answers for the same were provided.)

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CHI-SQUARE ANALYSIS

The above mentioned analysis of proportions gives valuable, yet incomplete information. We can further make better use of collected data to understand relationships between many of the variables through chi-square analysis.

We have analysed results of chi-square test of independence as follows, calculations for which are provided as annexure:

I. FREQUENCY OF VISITS & AVERAGE AMOUNT SPENT PER VISIT:

Frequency/ Expense per visit(In Rs.)

<50 50-70 70-100 >100 Total

Once a week 13 67 56 39 1752-3 times a week 4 19 36 28 87More than 3 times a week 3 6 23 27 59

Total 20 92 115 94 321

HO: Average amount spent per visit is independent of frequency of visits to café.

H1: Average amount spent per visit depends upon the frequency to visit cafe.

For the above mentioned data,

Sample chi-square value = 25.99.Chi-square statistic containing 0.10 area under the curve with 6 degrees of freedom =10.645.

Sample chi-square value > Chi-square statistic

Our hypothesis that average amount spent per visit is independent of frequency of visits is rejected. Therefore, we can conclude that average amount spent on every visit per person is affected by frequency of visits. People who visit café once a week tend to spend more than those visiting more frequently.

II. FREQUENCY OF VISITS AND AGE:

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Frequency/Age ≤18 19-22 23-25 26-30 ≥31 Totalonce a week 13 72 52 28 6 1712-3 times a week 1 51 23 7 1 83more than 3 times a week 3 37 15 4 2 61

Total 17 160 90 39 9 315

HO: Frequency of visits and age of the visitor are independent of each other.

H1: Frequency of visits depends upon age of the visitor.

Sample value of chi-square statistic = 9.83Chi-square statistic containing 0.10 area under the curve with 8 degrees of freedom = 13.362

Sample chi-square value < Chi-square statistic

Therefore, we accept the hypothesis that frequency of visits and age of the visitor are independent of each other.

III. AGE OF THE VISITOR AND AVERAGE AMOUNT SPENT PER VISIT:

Age/expenditure(In Rs.)

≤18 19-22 23-25 26-30 ≥31 Total

<50 4 8 7 2 0 2150-70 5 41 32 14 5 9770-100 3 56 29 13 3 104>100 5 55 26 12 1 99

Total 17 160 94 41 9 321

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HO: Age of the visitor and average amount spent per visit are independent of each other.

H1: The average amount spent per visit depends upon the age of the visitor.

Sample value of chi-square statistic = 4.37Chi-square statistic containing 0.10 area under the curve with 8 degrees of freedom =18.549

Sample chi-square value < Chi-square statistic

Therefore, we accept the hypothesis that age of the visitor and average amount spent per visit are independent of each other.

IV. AVERAGE AMOUNT SPENT PER VISIT AND LIKELIHOOD OF BEING ATTRACTED BY SPECIAL PRICE DISCOUNT:

Expenditure (in Rs.)/ Effect of discount

Very likely

Likely Not likely

Total

<50 9 5 6 2050-70 36 49 8 9370-100 23 61 34 118>100 28 41 28 97

Total 96 156 76 328

HO: The likelihood of being attracted by special price discounts is independent of average amount spent per visit.

H1: The likelihood of being attracted by special price discounts depends upon the average amount spent per visit.

Sample value of chi-square statistic = 24.86Chi-square statistic containing 0.10 area under the curve with 6 degrees of freedom = 10.645

Sample chi-square value > Chi-square statistic

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Therefore, we reject the hypothesis that the likelihood of being attracted by special price discounts is independent of average amount spent per visit. People with low spending power are more likely to be attracted by special price discounts, whereas those with high spending power are less likely to be affected by such promotions.

V. FREQUENCY OF VISITS & LIKELIHOOD OF BEING ATTRACTED BY SPECIAL PRICE DISCOUNTS:

Frequency of visits/ Effect of discount

Very likely

Likely Not likely

Total

Once a week 53 81 37 1712-3 times a week 27 43 21 91More than 3 times a week 13 27 17 57

Total 93 151 75 319

HO: The likelihood of being attracted by special price discounts is independent of frequency of visits.

H1: The likelihood of being attracted by special price discounts depends upon the frequency of visits.

Sample value of chi-square statistic = 2.58Chi-square statistic for 0.10 area under the curve with 4 degrees of freedom = 7.779

Sample chi-square value < Chi-square statistic

Therefore, we accept the null hypothesis that the likelihood of being attracted by special price discounts is independent of frequency of visits.

Limitation of the survey:

Due to limitation of time, we could not enlarge our sample size up to 500. Larger sample size could generate more accurate information.

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OBSERVATION OF MALLS

In order to assess the feasibility of opening the café in a mall, we observed big malls and hypermarkets in the city which are operational at present. Primarily, our focus was on food courts situated in these malls and other operational parameters of them that affect food courts. Following is the result of observation and its analysis:

DETAILS/ MALLS GALLOPS VISHAL HIMALAYA 10 ACRESLOCATION Iskon S.G.Highway Drive-in Rd. RaipurPARKING SPACE 175 40-50 350 305NO. OF STORES 43 - 56 46NO. OF FLOORS 3 2 4 2FOOD COURT ON FLOOR NO.

2 1 2 1

MALL TIMING 10:30-11:30 10:30– 10:30 10:30– 12:00 10:00 - 10:00

PEAK HOURS 6 to 8 p.m. 6 to 8 p.m. 6 to 8 p.m. 5 to 7 p.m.FOOTFALL PER HOURWEEKDAY 322 576 816 592SATURDAY 876 408 1560 1512SUNDAY 1522 936 2500 2200AVERAGE 906 640 1625 1434MALE : FEMALE VISITORS

43 : 57 36 : 64 50 : 50 42 : 58

MALL VISITORS : FOOD COURT VISITORS (AVG.)

23.38% 10.5% 7.19% 6.31%

SITTING SPACE IN FOOD COURT (SQ. FT.)

5040 480 1200 1080+5408

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AGE-WISE BREAK-UP OF FOOD COURT VISITORS

FOOD COURT VISITORS/AGE-GROUPS

≤18 18-25 25-35 35-45 ≥45

GallopsWeekdays 14% 39% 16% 18% 13%Saturday 18.5% 31% 21.5% 15% 13%Sunday 29% 28% 11% 23% 9%VishalWeekdays 31% 14% 26% 24% 5%Saturday 25% 20% 29% 18% 8%Sunday 27% 23% 22% 21% 75HimalayaWeekdays 25% 29% 20% 15% 11%Saturday 26% 34% 25% 8% 7%Sunday 21% 21% 33% 14% 11%10 AcresWeekdays 28% 33% 25% 8% 6%Saturday 36% 14% 16% 28% 6%Sunday 25% 23% 18% 25% 9%

Size:

We can observe that Himalaya mall has the largest number of stores, and more no. of floors than other malls. Also, it can accommodate largest no. of two-wheelers and four-wheelers, i.e. it has largest parking space. It remains open for more no. of hours (10.30 am to 12.00 pm) than the other malls. While 10 Acres mall is largest in terms of area.

Footfalls:

Himalaya mall is situated on drive-in road which is a residential area, whereas Vishal mega mart and Gallops are situated almost in the outskirts of the city. This may be the reason why Himalaya mall enjoys largest footfall. Also, opening of “Adlabs” is expected to augment no. of visitors. Opening of food court will have a similar effect.

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10 Acres mall enjoys second largest footfall because it’s the only mall in the eastern area. Vishal precedes Gallops during weekdays thanks to ladies shopping for staple goods. But Gallops manages to attract relatively more no. of people on weekends, partially due to fun places around (e.g., Fun republic, wide angle).

Classes of visitors:

A large portion of the visitors of Vishal mega mart and Himalaya mall belong to middle class, where as we can see more upper class crowd in Gallops mall.

Similarly, the kind of people visiting 10 Acres mall belong to a different class because it is situated in the eastern part of the city which is not very developed.

Mall timings:

Mall timings are more or less the same for all four malls, although, Himalaya mall remains open till 12:00 p.m. similarly, maximum footfall takes place during 6:00 p.m. to 8:00 p.m. Still, visitors could be seen in large number in Himalaya mall and Gallops mall till 9:00 p.m. on weekend. 10 Acres mall in Raipur enjoys maximum footfall between 5:00 to 7:00 p.m.

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Demographics

Ratio of male and female visitors:

The ratio of male and female visitors in Vishal mega mart is 9:16 which may be because it is a hyper market. For other three malls the ratio is more or less same i.e. 50:50.

Age-wise segmentation:

Gallops: The biggest segment is of 25-35 age-group followed by that of 18-25 (except on weekends when people of 18-25 age are more). The third largest segment is that of 35-45 age-group followed by that of less than 18 year’s age-group. This segment consists of children accompanying their parents of 25-45 years’ age. The smallest segment consists of people of more than 45 years’ age.

Vishal: Here also biggest segment is that of 25-35 age-group followed by that of 35-45 age-group shopping for staple goods primarily. Children accompanying them formed second least segment which preceded people of more than 45 years’ age. The third largest segment is of 18-25 years’ age-group. Vishal mega mart does not seem to be a cool place to hang out for youngsters. Also, it does not seem to be having the concept of food court. Thus, this place can be safely ignored for our purpose.

Himalaya: It was observed that biggest segment was of 25-35 age-group followed by that of less than 18 years’ age. The smallest segment again consists of people of more than 45 years’ age preceded by 35-45 age-group. The third largest segment is that of 18-25 years’ age-group. Youngsters seemed to be attracted by Mc’D, CCD and sub way. Also, Adlabs is expected to be one of the prime attractions. Again, future opening of food court cannot be ignored.

10 Acres: Here the age-groups of 18-25 and 25-35 almost equally rule the first position followed by age group of less than 18 years. Again, age-group of 35-45 follows the smallest segment i.e. more than 45 years’ age.

Thus, on an average, the largest segment of visitors in all four malls is that

of 25-35 age-group. People of 18-25 years of age and those below 18 years’ age together seem to be second largest segment. Similarly, people of more than 45 years’ age form the smallest segment in all malls and those of 35-45 precede them.

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Mall Visitors : Food Court Visitors

This ratio seems to be best in case of Gallops owing to its large food court. There is not much difference between the ratios for Vishal and Himalaya mall. But in case of Himalaya, this ratio is definitely expected to improve after opening of food court. Here, this ratio is poorest for 10 Acres mall.

Age-Wise Break-Up Of Food Court Visitors:

Gallops: Largest segment: 18-25 – on any day of the weekOn weekdays more no. of people belonging to 25-45 years’ age-group were seen. On Saturday, more no. of people belonging to 25-35 years’ age-group were seen followed by those below 18 years’ age. On Sunday, second largest segment was that of <18 years followed by 35-45 years’ age.

Vishal: Largest segment: <18 years followed by 25-35 years’ age- group.On weekdays, third largest segment consists of people of 35-45 years’ age butAs weekend approaches, more people of 18-25 years’ age can be seen.

Himalaya: Largest segment: 18-25 years followed by that of <18 years’ On Sunday, more no. people of 25-35 years’ age can be seen than the

above mentioned two segments.

10 Acres: On weekdays, 18-25 age-group forms largest segment. Below 18 and 25-35 follow equally.On Saturday, people below age of 18 years form largest segment followed by those 35-45 years of age.On Sunday, almost equal no. of people of below 18, 18-25 and 35-45 age-groups each visit food court.

Limitations of the study:

1. At present in Ahmedabad, very few malls are operational. So our sample size is limited.

2. It is difficult to obtain accurate figures in many cases.

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CONSUMER PREFERENCE REGARDING ICE CREAM

DEMOGRAPHIC DISTRIBUTION OF THE SAMPLE

GENDER

Male 191

Female 109

AGE - GROUPS

<18 17

18 - 20 128

21 - 22 96

23 - 25 43

NR 16

AGE - GROUPS

6%

43%

32%

14%5%

<1818 - 2021 - 2223 - 25NR

More than 75% of the respondents are under-graduate or post- graduate students of age of 18-22 years. And mean family size is 4.

FAMILY SIZE

GENDER

64%

36% Male

Female

37

≤3 614 1335 69≥6 33NR 4

BEHAVIOURAL ASPECTS

(1) FREQUENCY OF PURCHASE

Once a week 1262-3 times a week 95More than 3 times a week 79

FREQUENCY OF PURCHASE

42%

32%

26%Once a week

2-3 times aweek

More than 3 timesa week

42% of the respondents purchase ice cream only once a week (most probably on Sunday evening). 32% of them buy ice cream 2-3 times a week & 26% population buys ice cream more than 3 times a week. This is of course, the most suitable segment that should be targeted.

(2) AVERAGE AMOUNT SPENT ON EVERY PURCHASE

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Up to Rs. 50 149Rs. 50 to Rs. 100 96More than Rs. 100 55

Students’ preference for cup/cone justifies why half of them spend less than Rs. 50 and about 32% of them spend between Rs. 50 to Rs. 100 on every purchase.

(3) MEDIA HABITSWord of mouth 79Television 153Newspaper 114Magazine 25Radio 36Hoardings 36

AVERAGE AMOUNT SPENT ON EVERY PURCHASE

50%

32%

18% Up to Rs. 50

Rs.50 to Rs.100

More than Rs.100

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MEDIA HABITS

18%

34%26%

6%8%

8% Word of mouthTelevisionNewspaperMagazineRadioHoardings

34% of the respondents come across a new brand/ flavour through television, whereas 26% of them seek this information through newspaper. Thus, these two media are the most effective for communicating introduction of a new brand/flavour.

(4) In order to design effective marketing & promotional strategies, we need to understand the criteria consumers consider to be important while purchasing an ice cream brand.

The respondents were asked to rank following criteria in order of their importance and on the basis of their combined ranks, we have ranked them as follows:

1. Taste2. Flavours3. Creaminess4. Price5. Presentation6. Texture7. Consistency

Here, taste seems to be the most important criterion followed by variety of flavours and creaminess of the ice cream. Subsequently, we will analyse the performance of selected brands on two most important criteria viz. taste and flavours.

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(5) Further, respondents were asked as to which promotional schemes can attract them to increase their ice cream consumption. Following promotional exercises are ranked in order of their attractiveness (as per cumulative ranking):

1. Buy 1 get I free2. Seasonal discount3. Coupons/ discount vouchers4. Tie- up with other products/ brands

CONSUMER PERCEPTION AND PREFERENCES

(1) In order to position the market offering effectively, we need to understand what attracts people to try a new brand of ice cream.

FACTORS INDUCING TRIAL OF A NEW BRANDPrice 80Visual appeal 99Promotional scheme 64Image of parent company 68Image of associated location/ retail format 28

FACTORS INDUCING TRIAL OF NEW BRAND

24%

29%19%

20%

8%Price

Visual appeal

Promotional scheme

Image of parent company

Image of partners

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According to the survey, visual appeal is the most attractive feature that induces to try a new ice cream brand. The second most important factor is price.

(2) MOST PREFERRED PLACE TO HAVE ICE CREAM

Mall 77

Restaurant 90Café 96Home 63Others 33

MOST PREFERRED PLACE TO HAVE ICE CREAM

21%

25%27%

18%

9% MallRestaurantCaféHomeOthers

More than 25% of the respondents like to have ice cream at café. Also, 25% of them like to have ice cream at restaurant. Also, about the same no. of respondents like to have ice cream at malls. So, a combined figure of 48% seems attractive for this project.

(3) PREFERRED FORM OF ICE CREAMCup/ Cone 147Stick 57Sundae 58Softy 62

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PREFERRED FORM

45%

18%

18%

19% Cup/ConeStickSundaeSofty

Students tend to buy cup/ cones more than other forms & large pack sizes (for family). Therefore, half of them spend less than Rs. 50 on every purchase.

(4) COMPANIONFriends 210Colleagues 53Family 96

COMPANION

58%

15%

27%

Friends

Colleagues

Family

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Around 58% of the respondents like to have ice cream with their friends, which Indicates a good opportunity.

(5) PERCEPTION OF QUALITY

Taste 144Freshness 136Creaminess 89

PERCEPTION OF QUALITY

39%37%

24%

Taste

Freshness

Creaminess

Almost 39% of the respondents perceive quality as good taste, whereas for about same no. of people quality means freshness. And about 24% of the total responses were in favour of creaminess of ice cream as a measure of its quality.

(6) PREFERRED CONVENTIONAL

FLAVOURSVanilla 81Chocolate 47Strawberry 77Butterscotch 115Kaju draksh 57Kesar pista 47Mango 40Pineapple 22

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PREFERRED CONVENTIONAL FLAVORS

16%

10%

16%

23%

12%

10%

8% 5%VanillaChocolateStrawberryButter scotchKaju drakshKesar pistaMangoPineapple

Among conventional flavours, Butterscotch is the most popular flavour followed by strawberry and vanilla respectively.

While, in novelties, chocolate chips is the most popular flavour followed by cassata and black forest.

(7) PREFERRED NOVELTIES

Cassata 81RoastedBadam 47Anjir 77Black forest 115Litchi 57Chocochips 47coffee 40Black current 22

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PREFERRED NOVELTIES

19%

5%

7%

18%28%

8%

11%

4%

CassataRoasted badamAnjirBlack forestLitchiChocochipsCoffeeBlack current

ANALYSIS OF BRANDS

PREFERRED BRAND(S)

20%

42%

27%

2%3%4% 2%

Natural

Amul

Havmor

Vadilal

Baskin Robbins

Kwality walls

Others

Havmor is the most popular brand among youngsters in Ahmedabad followed by Amul and vadilal respectively. Following are the ratings given to these brands on five important dimensions.

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Brand/factor Price Taste Quality Promotion Flavors

Natural 43 33 41 17 11Amul 33 84 65 36 16Havmor 27 43 65 31 28Vadilal (happinezz)

36 54 81 53 19

Kwality walls 21 26 49 46 30Baskin Robbins 20 22 53 15 33

Price and taste are two most important considerations for the company. So, we shall examine performance of each brand on these two dimensions. Here, we can ascertain consumers’ perception about the brands on these dimensions.

As per this multi-dimensional scale’s analysis, Amul is performing better on both the dimensions than the other brands. Vadilal is perceived to be better on price affordability but lower on taste as compared to Amul. Havmor, which according to the survey is the most popular brand, is lower on both the dimensions than the former ones.

BRAND/FACTOR ANALYSIS

0

10

20

30

40

50

60

70

80

90

0 10 20 30 40 50

Price affordability

Tast

e

Natural

Amul

Havmor

Vadilal(Happinezz)Kwality walls

BaskinRobbins

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Limitation of the survey:

The scope of our study was limited to branded ice-cream so we could not cover consumers of local ice-cream parlours that accounts for big market share.

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OBSERVATION – ICE CREAM PARLOURS

In order to get an idea of the format and other operational parameters of popular ice cream brands, we conducted a sample survey of 16 ice-cream parlours. We obtained the following information through observation and personal interview.

PARLOUR/ DETAILS

MONTHLY SALES (appx.)

PARLOUR SIZE (IN SQ.FT.)

DISPLAY SIZE (IN SQ.FT.)

SITTING SPACE (NO. OF CHAIRS)

PEAK SALES TIME

  E-scoops 2,72,000 1500 75 46 7 – 12p.m.

Natural 2,64,000 45 ─ 7 – 11p.m.

HAVMOR Vastrapur 11,50,000* 300 - 360 20 16 8 – 10p.m.

C.G.Road 2,70,000 280 16 12 7 - 9 p.m.

Gallops 3,30,000 55 10 20 7 – 11p.m.

S.G.Highway 4,98,000 300 - 360 20 ─ Weekend evePanchvati Not replied 300 - 360 10 28 7 – 11p.m.

Navrangpura Not replied 400 24 12 12 – 3p.m.

HAPPINEZZ Vastrapur 84,000 140 25 ─ Sunday

eveningGallops 60,000 108 40 12 7 – 11p.m.

Fun republic 92,000 224 32 20 7 – 11p.m.

Law garden Not replied 1800 40 22 9 – 12p.m.

Amul Vastrapur 11,48,000 64 ─ ─ 8 – 11p.m.

Cheers 2,20,000 1200 16 32 Evening

Dairyden Not replied 336 30 >50 9 – 12p.m.

Baskin Robbins 2,00,000 300 10 11 8 – 11p.m.

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PARLOUR/ DETAILS

AVG. STORAGE

TIME

SCOOP SIZE

TUB SIZE DISPLAYED FLAVOURS

AVAILABLE FLAVOURS

  E-scoops 7-10 days 100 ml 50, 100 ml ─ 26

Natural 2 days 80 gm. 500 gm. 15 15

HAVMOR Vastrapur 1 day 90-100

ml750 ml 48 60

C.G.Road 2 days – week

110 ml 110 ml, 120 ml

18 60 – 70

Gallops 1 -2 days 100 ml 100 ml 24 24, 64

S.G.Highway 1 -2 days 100 ml 500 ml 16 – 20 25-30,

Panchvati 5 hours 100 ml 750 ml 24 Up to 75

Navrangpura 2- 3 hours 90 ml 750 ml 24 24

HAPPINEZZ Vastrapur 1 day 120 ml 60 ml 12 36, 50

Gallops 1 – 2 days 100 ml 50 ml 36 36

Fun republic 2 days 100 ml 100,120, 150 ml

36 36

Law garden 1 – 2 days 160 ml 750 ml, 1ltr. 36 100

Amul-Vastrapur 1 – 2 days

─ 750 ml ─ 8, 15

Cheers 2 days 100 ml 125 ml 52 26 softy + 26 ICDairyden 2 days 40 gm. 80 gm. 14 14, 21

Baskin Robbins 8 – 10 days

125 ml 125, 250 ml 31 31

1. Comparing area-wise sales:

Vastrapur emerges as the most lucrative market being a combination of both – a residential area as well as a fun place to hang out for youngsters.

S.G.Highway is the second most selling territory followed by C.G.Road.

2. Parlour Size: The mean parlour size is about 241 sq. ft. ranging from 64 sq. ft. to

400 sq. ft. Here, we have ignored E-scoops, cheers and Happinezz (Law Garden) (with a mean size of 1500 sq. ft.) as they are more than ice cream parlours like a café/restaurant.

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3. Display size: Average display size is about 27.5 sq. ft., ranging from 10 to 75 sq. ft. Average width varies from 5 to 25 ft and average breadth varies from 2 to 3 ft.

4. Sitting space: Most of the parlours have sitting space for minimum 11 to 32 persons.

5. Peak time: 7:00 p.m. to 12:00 p.m.

6. Average storage time: 1-2 days, although, it varies from parlour to parlour e.g., 5 hours to 10 days.

7. Scoop size: 90 to 100 ml. or 40 to 80 gm.

8. Tub size: 50ml to 150 ml. Also, it depends upon no. of scoops e.g. single sundae, double sundae. Another range serves tub with 750 ml to 1 litre

9. Displayed flavours: 12 to 52. Usually, a standard no. of 24 or 36 flavours are displayed.

10. Available flavours: Except Amul, Dairyden and Natural’s, all the parlours have 24 to 70 flavours available at a time with a range of 24 to 75 flavours (including seasonal fruit flavours). Vadilal (happinezz) enjoys the maximum range with 100 flavours – all available.

11. Most preferred flavours:

We can rank popular flavours in their order of preference:

1. Chocochips2. Chocolate3. Vanilla4. Butter scotch5. Kaju draksh

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Also, at Happinezz parlours, golden pearl and caramel are very popular in sundaes. At Natural’s parlour tender coconut, kala jamun and mango flavours very popular.

At Baskin Robbins, mint chocolate, chocolate moos, banana ‘N’ strawberry, Bavarian chocolate are very popular.

12. Highest Selling Pack Size:

At Havmor parlours, 750 ml party pack sells highest, owing to its buy 1 get 1 free offer. In case of Happinezz, sundaes are more popular. At Amul parlour 1.25 liter pack is sold highest. At Natural parlour, only family packs are available. At e-scoops highest selling pack size is sundae.

13. Promotional Schemes:

Currently, Havmor, Amul and Happinezz (Vastrapur) are offering buy 1 get 1 free scheme in 750 ml party pack. Baskin Robbins offers buy 2 get 1 free scheme for scoops and buy 1 get 1 free for hand packs. No other ice cream parlours are offering any scheme.

14. Peak Season: March to June, vacation.

15. Slack Season: August to October, Monsoon.

16. Dress code: At all the parlours, waiters and in-charge have their respective dress codes.

17. Availability of water and parking: All the parlours provide these facilities with minimum parking area of 20 two-wheelers.

18. Presentation:

Happinezz parlours present their ice creams (especially sundaes) in more attractive way than the other parlours. All the Happinezz parlours have kiosks/ screens with floating pictures of various sundaes. Also, e-scoops’ presentation (also interior and ambience) is very attractive. Havmor has paid attention to presentation only in case of Gallops parlour; other Havmor parlours are very average looking ice cream parlours. If asked to rank parlours for presentation, following opinion can be observed:

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1. All Happinezz parlours2. E-scoops3. Havmor Navrangpura and Gallops parlours4. Gwalia’s ATM (city gold)5. Natural’s6. Cheers7. Dairyden8. Baskin Robbins9. Other Havmor parlours10. Amul

Limitations of the survey:

Responses from many retailers cannot be considered reliable especially regarding sales turnover.

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CHAPTER # 4

OBSERVATIONS AND FINDINGS

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CAFÉ

1. Sample Distribution: The ratio of male & female respondents is equal to 2:1. Half of the respondents have 3-4 family members whereas 37% have 5 family members. 75% of the market is formed by individuals of 19-25 years of age.

2. BEHAVIOURAL ASPECTS:

Usage Rate: More than half of the respondents visit café once a week and 1/4th of them visit café 2-3 times a week. More than half of them prefer to visit café between 8 – 10 p.m. preference for days of week for visiting a café is almost equal for weekdays, Saturday and Sunday.

Preference For Food And Café: half of the respondents prefer CCD where as 1/3rd of them prefer mocha. People prefer to have coffee more than any other type of food. Second most preferred type of food is snacks. The most favourite cuisine is Indian followed by Chinese cuisine.

Taste of food and privacy (respectively) are the most sought after criteria, in selecting a café, followed by “fun place to hang out”.

Although, there is not much difference among no. of people, in case of expenditure per visit, 75% of them are likely to be attracted by special price discounts.

A café playing light music and having a non-smoking section is welcomed by most of the respondents. About 2/3rd of the respondents have shown interest for a café that starts operating in the morning.

Psychographic aspects: 55% of the respondents have shown willingness to celebrate occasions in a café & pay extra for low calorie/ fat food. 64% respondents read the Times of India, all these observations show their health consciousness & life style.

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MALLS

1. 10 Acres mall is largest in terms of area whereas Himalaya is largest in terms of no. of stores, no. of floors and parking space. Himalaya enjoys largest footfalls followed by 10 Acres.

2. All four malls remain open during 10:00 p.m. to 10:00 p.m. Usual peak time is 6:00 to 8:00 p.m.

3. We can observe more upper class people in Gallops mall than in Himalaya/ Vishal & 10 Acres respectively. Ratio of male & female visitors is almost 1:1 in all the malls.

4. Largest segment of mall visitors consists of people of 25-35 years of age followed by those of 18-25 years of age and below 18 years of age.

5. Gallops enjoys far better ratio of mall visitors to food court visitors (avg. 23 %) than the other malls (avg. about 7%). But opening of food court in Himalaya mall may improve its given ratio.

6. In food court visitors, people of 18-25 years of age form the biggest segment followed by those below 18 years of age and 25-35 years of age respectively.

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SURVEY REGARDING ICE-CREAM

People tend to eat ice cream more frequently than visiting café. Similarly, amount spent per visit is smaller in case of ice cream. 27% people prefer to have ice cram in cafe and 25% in restaurants.

45% people prefer cup/cone as compared to other forms of ice creams. 58% of the respondents prefer to have ice cream with their friends. Most people perceive quality as taste and freshness respectively.

Butterscotch, vanilla and strawberry are most preferred conventional flavours, whereas Chocochips, cassata and black forest are most preferred flavours among novelties.

Visual appeal and price are most important factors inducing trial of a new brand followed by image of the parent company. Similarly, taste, flavours and creaminess are the most important criteria for selecting an ice cream brand. Buy 1 get 1 free is the most effective promotional scheme. Seasonal discount also works well.

Havmor, Amul and vadilal are most popular brands in Ahmedabad. Their most appealing factors are quality, taste and quality respectively.

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CHAPTER # 5

RECOMMENDATIONS

58

LOCATION AND LAYOUT:

As our target market is college-going youth and newly working executives i.e. people of 18–25 years of age with high disposable income, the interior and layout of our café should be peppy and different from other cafes in the city.

There is no such happening café near commerce six roads apart form barista and upper crust at Vijay cross roads. Also, TC’s is the only lifestyle café nearest to the employees of call centres like Aegis, Azure, Magus, Motif, etc. both of these places provide a good opportunity.

Location and visual appeal of the place are very important factors for success in case of CCD and Mocha. Most of CCD cafes are situated at the corners of the roads, that too, at prime locations such as university, C.G.Road, etc. Also, its red and purple coloured outer layout is eye- catchy. So, the café should be at some prominent location.

Privacy has been ranked second among all important factors and about 60% people prefer to celebrate occasions like birthdays in cafes. Also, more than 60% people prefer to have a non-smoking section. Similarly, hukka bars like Mocha, TC’s are also very popular among youngsters. So the café can provide various sections such as a private party space, a non-smoking section .

It is good idea to open café having separate hookah parlour, by doing so we can attract more customers, based on observation than empirical data.

Malls in residential areas enjoy larger footfall than otherwise. Therefore, it is advisable to open the cafe in a mall situated near residential area. We can promote the café through games/contests in malls during 8:00 to 10:00 p.m. on weekends.

PROMOTION:

Newspaper is the most effective medium for advertising in the local market. Advertising in Times of India, especially Ahmedabad Times can grab attention of a large portion of our target population.

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Radio Mirchi is also very popular among youngsters in Ahmedabad. As per our knowledge, no other cafe has used Mirchi for advertising. We can sponsor some quiz/contest to create awareness and offer vouchers of our café as prizes to the winners.

We can sponsor some contest or events in colleges. We can sponsor prizes for some other such events attracting youth.

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