DOCUMENTARY REPORT AND CASE ANALYSIS
ARUN ICE CREAM
INDUKAKA IPKOWALA INSTITUTE OF MANAGEMENT
Constituent of Charotar University of Science and Technology.
I, Swetang Panchal, hereby declare that the DOCUMENTARY REPORT AND CASE ANALYSIS titled “ARUN ICE CREAM” is a result of my own work and my indebtedness to other work publication, if any, have been duly acknowledged.
Date:13/11/2009 Swetang Panchal
Facts of the company
Arun Ice cream was an Ice cream maker & distributor company established by the person named R Chandramogan, son of vegetable wholesaler from the south Indian state Tamilnadu. He was completely inexperienced person and did not complete his college studies as he discontinued at very pre university stage, but he had a strong urge to run the business and to succeed as a businessman. Initially he did not know what the business to go for but after the suggestion given by his uncle he went for the ice cream business. He started with a small premise in busy locality of Madras with which he got succeeded and moved to three fold expansion in just second year of its commencement which was turned out and again resumes to previous old premise! He continuously improved the quality of his product to meet the needs of customers thus he captured the market of the hotels. Chandramogan was applying trial & error method in his business! As Chandramogan was searching for niche market for his business he captured the rest 5 % market of educational institution and shipyard chandlers about 95 % about 1975. Talking about this 5 % market the rest 95 % market was occupied by other big banner competitor! He also approached the district market of Tamilnadu completely ignored by competitor and captured the market with the sound strategies! As his market for product grew up his sales were also taking place in high proportion and became enough financially sound to payback the debts and to earn enough. Chandramogan identified Pondicherry, Madurai, Kumbakonam, and Sivakasi as the potential market and began advertising in such market to create brand awareness and to establish Arun as a strong brand, thus he also captured these market because these markets were also ignored by the competitor. Initially he started selling Ice cream in such area on ad hoc basis but then he gained the market and also the offer from franchisee agent who was keen to invest in the Arun’s franchisee, this lead to birth of franchisee market of Arun Ice cream which was grown very steadily that even other agents were also began to invest in Arun ice cream in their own freezers. In 1991 Chandramogan also established another high capacity plant in Salem close to Kerala and Karnataka and in the milk belt which facilitated procurement of milk.
Through regular advertisements and marketing his product Chandramogan established chain of franchisee parlours of Arun ice cream. Arun emerged as the largest ice cream manufacturer in Tamilnadu with turnover raised to 28 million from 150000 in 1970 and 425000 in 1981. Chandramogan established ‘seat and eat’ themed parlour in Madras suburbs and outskirts, By the year 1999 Arun emerged as owner of the 60 % market share of Tamilnadu and 36 % of four south Indian states. Arun began to introduce 7 to 10 new flavours every year and thus Arun’s product folio consist of 30 to 35 flavours at any given time! Arun also acquired a fully automatic plant in Red Hill area with capacity of 15000 litres of ice cream mix every day. And began operated in 1995. Because of the investment restriction The Madras plant was setup under a separate firm named Hatsun milk Products though it was fully established by R Chandramogan. Because of the continuous advertising and promotioning of the brand Arun began to...