Natural Ice Cream Case Study

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Topics: Ice cream
Natural Ice Cream The ice cream parlour which began as a small initiative in 1984 stands in 2006 as an entity with profitability as high as Rs 1.4 crore and with determination to double it in the subsequent financial year. Mr. R. S. Kamath is the brainchild of one of Mumbai’s best known ice cream brands – the Natural Ice cream. Since its inception the company has managed to build its equity purely through word-of-mouth.

Natural ice cream has gained the reputation as being the most sought after ice cream parlours in Mumbai especially among the young people. It enjoys a very substantial footfall at its outlets, making thus evident the facility and service orientation applied to it. Natural ice cream as a company has been registering a consistent growth over the years. R. V. Mallya, General Manager, attributes this growth partially to the changing – lifestyles, eating habits and the increasing per capita income and significantly to the quality of the products offered by the company thus enabling customers to be retained and also augmented through a good word-of-mouth.

However, although the company has a strong position it does face challenges. One in terms of continually innovating and introducing new products coupled with consistency and the other through competition from not only local players but also foreign players like Gelato, Amore etc

The questions before Management was Should Natural increase its advertising to reach out to a larger segment of the masses? Should it expand beyond the precincts of Maharashtra and Gujarat to enhance its market share?

___________________________________________________________________________ This Case is based on the project work of Rohini Anupriya, Yogesh Deora , Shubhada Ankush Jadhav and Amit Vohra, students of MBA (2008-10) batch of SVKM’s NMIMS University.

1

Early history and Strategy This success story began with two unfortunate incidents; one was Kamath’s failure in the seventh grade, because of which

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