The principal worrying factor for Arun management was the dramatic developments in the marketplace that could seriously undermine Arun’s growth plans.

The key question was whether to aggressively reinforce Arun’s competitive profile and further expand its franchise network in the face of HLL’s competitive onslaught.

1970M/s. R.G. Chandramogan & Co. set up.

Arun Icecream Launch. 1978

First Arun Icecreams Parlour. 1986 March- M/s. Hatsun Foods (HFPL) incorporated as a private limited

company. The same year HFPL was admitted as a partner in M/s. R.G. Chandramogan & Co.

1986 April HFPL takes 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 icecream sales.

1991 MPD Factory (Atlantic) - Salem Inauguration.

1993 Hatsun Dairy Private Limited (HDPL), promoted by M/s.

Hatsun FoodsPrivate Limited, established.Salem Dairy - Inauguration.

1995 M/s. Hatsun Foods goes public. Changes name to

Hatsun Agro Product Limited. Icecream Factory - Red Hills - Inauguration

1998Hatsun Milk Product Limited (formerly known as HFPL amalgamated with Hatsun Agro Product Limited.

2000Belgaum Dairy - Inauguration.Kanchipuram Dairy Acquisition.

2004Dairy Ingredient Plant - Inauguration (Salem & Kanchipuram)

1.Focus on customer needs, wants, expectations

Fresh ice candies at factory counters Climate –summer are peak months for

sales Quality ,flavors, homogenized ice cream

demand Bulk institutional sales to leading group of

hotels in Madras.

Arun ice cream's “sit and eat parlors”

Educational institutions –Hostels & Canteens

Supply to ships calling at Madras port.

Upcountry mofussil towns- Madurai, Pondicherry, Sivakasi,Kumbakonam as there were no good quality icecreams available.

Departmental stores with deep freezers

Icecream majors ignored District towns which are virgin, absence of serious competition there is a chance of striking it big.

Wedding and other social events.

ARUN ICE CREAMS-”UNLIMITED”

Marketing Mix:

Product Price Place Promotion

Ice candies to Ice creams Product differentiation: Varieties:

vanilla, strawberry , pista, mango, orange , chocolate, pineapple, cassata, butterscotch,etc.

Cost plus pricing Brand equity and not just brand ,since

arun was not the same as unbranded low priced icecream served in local restaurants.

Franchisees were given at 20-25% of MRP depending on their location and the costs borne by them.

The overall distribution costs of Arun was about 3-4% of Sales, compared to 8-9% of competitors

Capabilities,organisational architecture and infrastructure to support the strategy.

Factory in Chennai and Salem Distribution channel- deep freezer Sit & eat parlor Franchisee Procuring the milk directly from the farmers Transportation of icecream boxes in trains

for outstations. Depot in Madurai to meet the requirements

of the franchisees.

ARUN Icecream is sold through exclusive franchisee outlets and is occupying the top slot in Tamilnadu and figures within the top three in the south India.

With the commissioning of plant in Belgaum, the company has entered into the Goa, Pune and southern districts of Maharashtra markets.

The company has also entered into International markets during the financial year (2004-05).

The company has implemented an arrangement, whereby Arun icecream is now available in Seychelles. Arun Icecream is also being exported to Brunei

The Company has an excellent milk collection system with chilling centres in more than 50 locations and a fleet of more than 1348 vehicles on contract for procurement.

Its milk shed area is spread over 10 districts in Tamil nadu and 3 in Karnataka and covers over 70,000 milk producers and 2000 medium and bulk milk vendors.

The Company is also involved in dairy extension services to farmers for the development of livestock quality and yields.

Besides this the company also has tie up with banks for arranging agricultural loans to milk producers.

More than 110 veterinary doctors under direct employment rendering full-scale animal care to the milk producers.

“Eat all you can”-campaign “Slow speed driving competitions”-campaign

Advertisement: mailers to addressees outside the specified localities Banners and hoardings Posters and fliers

Ideal and convenient location Well-decorated parlours where cleanliness

given top priority Convenient working hours (10 A.M to 10 P.M.) Regular maintenance of freezer to keep them

functioning at optimum levels Courteous and unmatched service Knowledge of product/variety among the staff Ability to understand customers' needs so as to

satisfactorily cater to their tastes Innovative approach - promotions done in a

novel manner.

Its Managing Director, Mr R.G. Chandramogan, said in the next five years, Hatsun is looking at setting up operations in four or five countries in the region, he said.

Extensive consumer research into the development and application of relevant technologies innovatively in new product formulation and refrigerated product handing can be done.

New standards can be set in terms of Quality. It can increase the network of franchisees

geographically. Advertisements and promotional activities

can increased.

The core of any marketing strategy is understanding the changing needs of customers and the opportunities to shape these needs.

Arun effectively understood the needs and formulated the strategies which are stable and long run that could leverage on the company’s current strengths.

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