A PROJECT REPORT ON THE MARKETING AND SALES OF SEETHA ICE CREAMS PVT LTD.

Submitted by RAJESH KAPILA 1120742 2nd MBA V Under the guidance of Prof. RAM MOHAN Professor and Co coordinator, Christ University Institute of Management A Report Submitted in Partial Fulfillment of the Requirements for the Award of t he Degree of Master of Business Administration BANGALORE,INDIA 2012 DECLARATION I, Rajesh Kapila, hereby declare that the Summer Internship Project report entit led " A PROJECT REPORT ON THE MARKETING AND SALES OF SEETHA ICE CREAMS PVT LTD." has been undertaken by me for the award of Master of business Administration. I have completed this study under the guidance of Prof. RAM MOHAN, professor and coordinator, Institute of Management, Christ University. I also declare that this project has not been submitted for the award of any Deg ree, Diploma, Associate ship or Fellowship or any other title in this University or any other University. Place: BANGALORE RAJESH KAPILA Date: 30-6-2012 0742 Candidate Name: Register No: 112

CERTIFICATE This is to certify that the Summer Internship project report submitted by RAJE SH KAPILA on the title " A PROJECT REPORT ON THE MARKETING AND SALES OF SEETHA ICE CREAMS PVT LTD." is a record of research work done by him during the academi c year 2012-2013 under my guidance and supervision in partial fulfillment of the requirements for the award of the degree of Master of Business Administration. This dissertation has not been submitted for the award of any Degree, Diploma, A ssociate ship or Fellowship or any other title in this University or any other U niversity. Place: BANGALORE Prof. RAM MOHAN Date: 30-6-2012

ACKNOWLEDGEMENT I am indebted to many people who helped me complete this project report. First, I thank the Vice-Chancellor Dr.(Fr.) Thomas C. Matthew and Pro Vice-Chanc ellor Dr.(Fr.) Abraham V. M of Christ University for giving me the opportunity t o do this project. I thank Fr. Thomas T. V , Director, Christ University Institute of Management an d Prof. C. K. T. Chandrasekhara, Head-Administration for their kind support. I thank Prof. Ram Mohan for his support and guidance during the course of my Pro ject. I remember him with much gratitude for his patience and motivation, but fo r which I could not have submitted this work. I am extremely grateful to Mr. GIRIYAPPA. K, Managing Director of SEETHA ICE CRE AMS PVT LTD. for their invaluable contribution towards conducting this study. I thank my parents for their blessings and constant support, without which this dissertation would not have seen the light of day. RAJESH KAPILA

TABLE OF CONTENTS DECLARATION ii CERTIFICATE iii ACKNOWLEDGEMENT TABLE OF CONTENTS v INTRODUCTION 6 INDUSTRY PROFILE 8 COMPANY PROFILE MISSION AND VISION 18 ORGANISATION CHART 24 FUNCTIONAL DETAILS OF DAIRY RICH PRODUCTION DEPARTMENT FINACNE DEPARTMENT PERSONNEL DEPARTMENT MARKETING DEPARTMENT STRUCTURE OF MARKETING DEPARTMENT MARKETING SEGMENTATION SALES OF THE COMPANY SALES OF DAIRY RICH

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25 25 29 30 33 34 36 46

47 CONCLUSION 49 BIBLIOGRAPHY 50 INTRODUCTION Ice cream is a frozen dessert usually prepared from dairy products, such as crea m, milk, sugar combined with fruit and other flavors. Artificial flavorings are also used in addition to, or instead of natural ingredients. Most popular flavor s of ice cream are Vanilla and Chocolate. Gelato, Frozen Custard, Sorbet are some alternative names for Ice Cream. In the Persian Empire, people had poured concentrate of grape juice over snow, in a bowl, and would consume it as a treat, especially when the weather w as hot. Cool keeping underground chambers known as "YAKHCHAL" were used to save snow or taken from snowfall that remained at the top of the mountain by summer c apital- HAGMATENA. The Persians, further invented a special chilled food, which was made from rose water and vermicelli, and was being served to royalty during summer. Saffron, fruits and various other flavors were being used to mix with ic e for thousands of years. Ice was being served as cold foods by the ancient civi lizations. The BBC reports that a frozen mixture of milk and rice was used in China around 200 BC. Roman Emperor Neo had ice brought from mountains and combined it with fruit toppings. The first people to use milk as a major ingredient in the production of ice cream were the Arabs. Sugar was used by them to sweeten it rather than fruit juices and perfected means of commercial production. In the early 10th century, ice cream had become very famous among the major Arab cities like Bagdad etc. It was being produced using milk and cream, and also yogurt was being used somet imes and was flavored wit rosewater, dried fruits and nuts. It is believed that the recipe was based on older ancient Arabian recipes which were it is presumed the first and precursors to Persian Faloodeh. The Mughal Emperors, in the 16th century used relays of horsemen to brin g ice from the Hindu Kush to Delhi, where it was used in fruit sorbets. 1674 was the year where the first recipe for flavored ice appears in Nicolas Lem ery's " Recueil de curiosities rares et novellas' de plus admirables effets de l a nature" . In 18th century, ice cream recipes appeared in England and America. In the year 1832, an African confectioner named Augustus Jackson, not only crea ted multiple ice cream recipes but he also invented techniques to manufacture ic e cream. The ice cream sundae was invented in the 19th century. Many people claim ed to have invented it, but there was no sufficient conclusive evidence to suppo rt their stories. The ice cream cone and Banana split became popular in the earl y 20th century. Premium and super premium varieties, which were thicker ice creams, were invented in the 1980's and they were being branded by famous companies like Hag gen Dazs and Ben & Jerry's.

INDUSTRY PROFILE

The per capita income of ice cream consumption is very low in India. It is 300ml per annum. Because of a number of reasons, this trend is slowly changing. Indian summers are interrelated to ice creams. We can see a variety of colorful pushcarts selling variety of ice creams in numerous flavors from the traditional vanilla, strawberry, chocolate to unusual varieties like Sundaes, Ma tka kulfi etc . There are a number of varieties introduced my many ice cream com panies now. For example, the ice cream varieties for the kids would be totally different from that for the teenagers or for the adults. For those who love to have ice cream at ease, there are a number of ice cream parlors that are opening up like the famous Corner House, Edge Ice Cream parlous etc. A 100 ml scoop of ice cream that is offered may contain up to 50% air. Because of this, the business is a highly profitable undertaking to get into At times, the profits can go up to 100% too. However, there are many threats to th is industry as well. THE ICE CREAM INDUSTRY- AN OVERVIEW Exploring the industry data first. In 2007, the global market of ice creams was pegged at $61.6 billion in terms of market value or 15 billion liters in terms o f volume. Of this, the Asian market was worth $13 billion in terms of market va lue or 5,128 million liters in terms of volume. Looking at the Indian market, th e Indian ice cream trade is presently projected to be worth Rs. 2,000 crores, bu dding at a rate of approximately 12%. RS Sodhi, Chief General Manager of Gujarat Co-operative Milk Marketing (GCMMF), the producers of Amul, tells, The ice cream marketplace in India can be grouped into: the branded market and the grey market . The branded market currently is 100 million liters per annum prized at Rs. 800 crores. The grey market contains small local company and cottage industry". In the year 2008-09, in the branded ice cream market, Amul gained the number one p lace, with a market share of 38%, subsequently Kwality Walls at 14%, Vadilal at 12% and Mother Diary at 8%. Regardless of an upright growth rate, the ice cream business faced the t hreat of low per capita consumption. The key trends are: Rising occurrence of international brands lashing consumption in metros and mini -metros. Accessibility of several options to consumers from ice-creams to conventional ku lfis to new forms such as gelatos and flavored yoghurts. Increasing tendency of going out to consume ice-cream. With growing health awareness especially among young metropolitan population, hi gher spotlight on fat free, low sugar and pro-biotic variants. Falling blow of seasonality on consumption. Several players ready to raise presence with aggressive expansion plans. Budding edge on smaller and profitable formats. In the midst of a per capita consumption of only 0.30 liters in a year, ice crea m in India has presently not realized its full capacity. INDUSTRY AT A GLANCE The per capita consumption of ice cream in India is roughly 300 ml, as against t he world consumption average of 2.3 liters per annum. Vanilla, Strawberry and Ch ocolate altogether comprise just about 60% of the market. The per capita consump tion of ice creams in India is just 300 ml per annum, as against to 22 liters in the USA, 18 liters in Australia, 14 liters in Sweden. India is a way behind in terms of the world average per capita ice cream consumption of 2.3 liters per a nnum. India is a country with hot weather with a youthful population. Pankaj Cha turvedi, Executive Director of Baskin Robins, explains Indian cuisine has a huge range of desserts. Dinner or lunch is never complete with ice creams". Apart fro m desserts, ice cream also vies for notice with other like foods for example in summers with cold drinks, coffee, juice, etc. An additional trend that is witnes sing a alteration is the seasonal nature of the industry. Having told that, the peak season for ice cream still remained the summer months of April-June and fal ls in the months of November-February. According to the industry troupe, this dr ift specially holds accurate for the North and the Western parts of India. Accor ding to Pankaj Chaturvedi, The deviation in sales for Baskin Robins can vary from

1530% from season to off season depending on layout and brand.

THE ICE CREAM BUSINESS The ice cream market has conventionally developed at a stable rate of 12% year-o n-year. The development in Ice cream market has been mainly due to intensificatio n of distribution channels and cold chain infrastructure. Channels such as Mobil e retailing Units have been rising year to year to get in touch with a larger se t of customers. Further, customers also have the option of trying out diverse pr oduct offerings from diverse brands to keep them energized, Paul Thachil, CEO Dai ry & Foods, Mother Dairy Fruit & Vegetable. What precisely is defined as ice cream under the guiding principle? The Prevention of Food Adulteration (PFA) Rules, 1955 defines ice cream as a frozen product that contains not less than 10% milk fat, 3.5% protein, 36.0% total solids, and 0.5% permitted stabilizer and emulsifier. Marketers who move a way from these norms diplomatically call their product "frozen dessert. However, it is unlawful to sell ice cream which has contents below these specified standard s. The fundamental steps in the manufacturing of ice cream are normally first blend ing the ingredients, pasteurization, homogenization, aging the mix, freezing, an d hardening. Now, in the hardening procedure, the ice cream mixture is integrate d with air. This is done to craft the product light and creamy. This is essential be cause without air, ice cream would be like frozen ice. The ice cream can include a significant quantity of air, even up to half of its volume. This perhaps make s ice cream a business with good profit margin. Manish Vithalani of Space Dotz comments, A ice cream blend (consisting of milk, e mulsifier, sugar and so on) cost about Rs. 60-65 a liter. And in one liter we ca n include up to one liter of air. Hence, per liter the mix would cost us roughly Rs 32. If we take a 150 ml cup, we can create 13 cups of ice cream from one lit er of mixture. Calculating on that foundation, the per cup cost comes to about R s 5. Now add to that Rs 5 value of packaging cost, electricity, labor, transport ation, advertisement cost etc. It comes to around Rs 10 per cup. Depending on the assortment, the profit margin hence can go up to even 100%. While for bigger co mpetitors, the distribution and advertising costs eats into the profit margins, for smaller players, it is the volume that matter. Apart from selling their products through kiosks, parlors and push carts, a cons iderable part of the revenue is got from corporate sales. Says Pankaj Chaturvedi , About 55% of our business is contributed by selected ice cream parlors and kios ks whereas 30% is from corporate or food service. The remaining comes in from re tail and exports. A chef at a well-known five star Delhi hotel tells us their banquet section itse

lf buys 6 gallons of ice cream from manufacturers on a daily basis. The demand, he tells, rises up to 10 gallons through peak season. What is the expenditure for establishing a small scale ice cream manufacturing u nit? Manish Vithalani comments, The expenditure for establishing a small scale ic e cream manufacturing unit could be roughly Rs. 10 lakh, together with the cost of a ice cream unit, labor (3-4), storage units, and so on. This cost does not i nclude the land cost. Lately, a number of marketers who have entered the market a re playing on innovative aspects, for example, natural flavors made from fruits. Some marketers like Mumbai-based Space Dotz are also approaching up with new te chnology. According to Dilip Jagad of Space Dotz, Unlike the normal ice cream, ou r product comes in the form of balls. In addition, the product has no air mixtur e and uses cryogenic technology, used in rocket science. Another remarkable moder nization was the pro-biotic and low fat ice cream bought into the market by Amul . THE CHALLENGES There are quite a few challenges that affect the industry unfavorably. As told b efore, the industry marketers not only face competition from their competitors, but also from other like foods. Although changing, customers still believe ice c ream as a dessert and a side item. Sharing his knowledge, Siddhartha Jaiswal of Joos, a juice bar chain, says, We had introduced ice creams on an tentative basis in our juice outlets in Ahmadabad. We noticed that customers order ice creams a s a side item or only when they were accompanied by children. We ultimately deci ded not to move forward with it. Furthermore, of the ice cream consumption in Ind ia, almost 60% is accounted to by three flavors of vanilla, strawberry and choco late. And to be on the safer side, major marketers be inclined to play around th ese flavors only. For major players, local competition from small players is y et another major problem. Another major issue faced by the industry players, specially while development, is reduced infrastructure such lack of cold storage and in case of rural access, even erratic power supply becomes a question. This is mainly correct for big pl ayers. Manish Vithalani says, Apart from the existence of other players, an added obstacle is the high rent charged for floor space, particularly in malls. This also becomes a crisis when we try to develop.

COMPANY PROFILE DAIRY RICH

AN ALTERNATIVE FOR PREMIUM ICE CREAM

Seetha Enterprises, was started in 1994, as a distributors for Indiana Ice Cream . Since Mr.Giriyappa had 154 varieties in marketing sales of Ice Cream, he reach ed the turnover of Rs.2.25 Lakh per month from a 900days 25,000 P.M. After seein g the demand from the market, he started manufacturing Mr.Mini Dairy Rich brand ic e creams in 1996, with a small investment of about Rs.2.5 Lakh. In 1997 we registered the company as Seetha Ice Creams Pvt. Ltd. Today w e have reached the turnover of around 2 Crores and the number of outlets were in creased for 15-20 the 1996 to an outstanding 800 in 2006 across small Karnataka, Tamilnadu, and Andrapradesh, we have about 17 distributors covered places like Bangalore, Mandya, Mysore, Mangalore, Hassan, Kolar, K.G.F, Tumkur, Davangre, Ch itradurga, Bellary, Hubli, Hindupura, Hosur, Krishnagiri, Salem, Thirchy, Maddur , Gowribidanur, Belgaum, Mangalore, Puttur, Sullia. Since 2-3 years, we are growing at a steady rate of around 50% every yea r. In another 3-4 years we are expecting a minimum turnover of around 6-7 crores for which we may required a big place for the factory. Since there are more 125 -150 varieties of ice creams we make in have keep minimum quality of holding mat erials of 125-150 varieties, it requires large place for storage. Accordingly si nce we have to keep sufficient stock of 125-150 varieties of ice creams, we have to have huge cold rooms to store the ice creams. Hence we may require at list 3 acres of land. The total number of dealers in the year 2012 has increased to over 15002000 and there is a vast opportunity of increasing this dealership to around 500 0 in the coming years. The annual turnover which was 2crores in the year 2006 i s increased to around 10crores in the year 2012. At present, the factory runs it s operations in Industrial Estate of Rajajinagar. The company is planning to exp and its manufacturing operations in the Industrial area of Bidadi so that it can hold a lot of cold storage rooms and raw materials and also expand its market t o the northern part of India. We also supply ice creams to major food chains like the Adiga's, Kamath and many other caterers. SCOPE: 1. At present the Company has around 45 employees for the turnover of Rs.2 Crores, In another 3-4 years, we may appoint at least 50-75 more people & hence we will give at least 100 to 125 employments. 2. Since we appoint dealers and distributors to sell our product on commiss ion basis, indirectly we give self employment to hundreds of people. 3. Since the VAT for Ice Cream Industry is 12.5%, in 3-4 years, we may pay around 1 Crores rupees per annum to the Government of Karnataka as the value add ed tax. 4. With the staff contribution & others we may pay approx. Rs. 50000 per an

num as professional tax for Government of Karnataka. 5. At present there is no excise duty for Ice Cream.

6. Since our basic raw material is milk , milk powder & sugar (95%) and we are directly helping farmers.

ICE CREAM MARKET IN SOUTH Lunch or Dinner is incomplete without ice cream. Eating ice creams is no more a rich man's habit. Every child will ask ice creams whenever he/she passes by an i ce cream shop or parlor. Youngsters, college students are the main customers of ice creams. Every function or an occasion like Marriage, Birthday celebration et c. will have ice creams in their menu. Lunch in Holiday Restaurants and clubs in cludes the ice cream as a desert. Ice Creams market is graving extent by 15% from year to year. Ice creams market in Karnataka itself is around 100 Crores and in Bangalore done about 50 Crores f rom organized sector. Same availability will be from unorganized sector also. Ma jor players in this market are Kwality Walls, Vadilal, Arun, Dins haws, M.T.R, D airy Day, Nandini, Aditya, Amul, Uncle John's etc. But market national companie s like Kwality walls sustain in the market branch of the high comments required in the market. Companies with manufacturing unity like Vadilal, Dins haws& Arun also face problem because of the transportation storage of distribution problems . So the companies which have manufactory unit situated in & around Bangalore ci ty like ours have the more scope to grow. At present the leading ice cream market in Karnataka is the famous Kwal ity Walls, followed by Amul. We gain the 3rd position in the market and because of our quality policy and good delivery methods we have successfully gained thi s position. After Dairy Rich, Arun gains the 4th place and many others. We are trying our maximum to gain the 1st place as Kwality Walls is faci ng a lot of problems with their supply and delivering the products to their cust omers. Dairy Rich is successful in providing quality products at a deliverable t ime and therefore, there are chances of gaining the market share in Karnataka.

MISSION OF THE COMPANY Treat all the employees as a member of the organization. The policy of the organization is to take care of employees and in turn expect s incere and hard work for the "Mutual Growth" or "Growth For All Members". To make best quality ice creams comparable to the best brands available in the m arket. Best margins to the dealers in the ice cream industry. Through ISO 9001-2000 certification, constantly satisfy customers and continuous ly improve quality management system.

VISION OF THE Build Build t with a huge

COMPANY the brand- "DAIRY RICH" to state and national level. an ultra modern new Ice Cream manufacturing plant. It will be a Model Plan capacity of 20000liters per day.

PERSONAL BIO-DATA NAME AGE D.O.B QUALIFICATION ADDRESS : GIRIYAPPA.K : 55YEARS : 04-01-1955 : B.Sc passed (1978) : NO.1624, 1st BCROSS, Opp. Water Tank, Chandra Layout BANGALORE-560-040. : SEETHA ICE CREAMS PVT. LTD., C-104, Industrial Estate, Rajajinagar, BANGALORE-560-044. : 080-23107080/23107081.

OFFICE ADDRESS

PHONE NO .

EXPERIENCE : 1. Started the job as a Sales Executive in TAJ Ice Cream, Bombay worked for 3 1/2 years. : 2. Joined Gokul Ice Creams as an Area Sales Manager and worked for 1. 1/2 years. :3. Worked as a States Sales Manager with Kwality Ice Cream Company (Indias No .1 Ice Creams Company) for 5-1/2, years in Bangalore as Headquarter. Since 199 6, as Managing Director of SEETHA ICE CREAMS PVT, LTD.

PROJECTION Particulars 9 2011-2012. rores Sales 3.8 Crores 2004-2005 2005-2006 2006-2007 1.5 Crores 2007-2008 2 Crores 50nos. 2008-200 2.8 C 60nos.

1 Crores 10 Crores 35nos. 90nos 45nos

Employments 75nos Sales Tax Payment

to the Govt. of Karnataka 47.5 lakh Consumption of milk(in liters)

12.5 lakh 90 lakh

17 lakh

25lakh

35 lakh

1.08 lakh 1.62 lakh 0 lakh 10 lakh Consumption of Sugar 300 450 840 1140 3000 (which help farmers indirectly) in tons (approx)

2.16 lakh 600

3.02 lakh

4.1

PROJECT AND PROJECT COST To achieve the target and further expansion, we are interested to start the Ice cream factory with the installed capacity of about 25,000liters of Ice cr eam per day. In with this unit, we can reach the turnover of about Rs. 50 Cror es annually. Further, If any scope for the expansion, we can do with the further investment in machinery only. To achieve the target of 25,000 liters per day, the following machines are requi red. PASTEURISER HOMOGINISER PLATE CHILLER AGING WATTS CONTINUOUS FREEZER : COLD ROOMS BRAIN TANKS : : : : 2000 Lit./ hrs. 2000 Lit./hrs. : 2000 Lit./hrs. 10,000 Liters 3nos. of 300 Lit. capacity/ hrs. : 2000 cubic meter : 4 nos. of 9 moulds each.

APPROXIMATE COSTING (in Lakh) LAND BUILDING PASTEUREISER (2000Lit/hrs.) HOMOGINEER(2000Lit/hrs.) PLATE CHILLER(2000 Lit./hrs.) AGING WATTS (10,000 Liters) CONTINUOUS FREEZER COLD ROOMS BRAIN TANKS Total 52.50 90.00 3.00 15.00 2.00 8.00 54.00 50.00 5.00 279.50

ORGANISATION CHART

FUNCTIONAL DETAILS OF DAIRY RICH PRODUCTION DEPARTMENT- Production refers to change the form of raw materials to a finished product which can satisfy human needs by processing it through manpow er or labor and machinery. In short the formation of a product or service, makin g necessary change in the figure, size, weight of the raw material through a pro cess. There are quite a few sections in the division, in the sections a step by step process of the product can be viewed . The particulars about the sections a re as follows: MAINTENANCE UNIT: This is the major unit of the firm. The heavy machinery is installed here. The u nit 3 compressor which helps in cooling the ice-creams. There are generators in the company in case of a power breakdown, it has to be turned on to maintain the ice cream fresh and frozen. There are also boilers in this unit. MANUFACTURING UNIT: In this place all the necessary raw material are assorted and then they are proc essed. The raw materials go in the course of many formations before it is conver ted to the final product. The real process of producing ice-cream starts and sub sequent to ice-cream manufacture , they are moved to the cold storage rooms. RAW MATERIAL UNIT: In this unit, all the raw material, such as milk, milk powder, sugar, stabilizer etc. are carefully examined and verified. COLD STORAGE UNIT: The processed ice cream passes to the cold storage room. The temperature in the cold storage room should be around -25 to -27 so that the product remains frozen and ready to use and they will be removed from the room depending on the orders made by the customers. RESEARCH AND DEVELOPMENT The laboratory in Dairy Rich looks after the hygiene and quality of ice creams. Every is inspected and certified here prior to being launched, at most each take n in respect of quality. PACKAGING UNIT In this unit, the packaging of ice creams is done. The production date and best before data are labeled here. Moreover it is the storage room where the packages are used where ever needed.

PRODUCTION PROCESS Addition of Milk Addition of SMP(30C to 45C) Addition of Sugar(45C to 55C) Addition of St abilizer(45C to 55C) Addition of Cr eam(60C to 65C)

FINANCE DEPARTMENT- The finance department is the vibrant and the most important function of Dairy Rich. Financial department is one of the managerial departmen

t where planning of expenditure is decided or the allocation of funds is made. Funds are effectively utilized on purchase of raw materials, payment to its cred itors etc. Financial Manager has to plan on how much money the company should inves t and therefore, planning is the most important activity which is required by t he Financial Manager. The most important current asset for operating the business on a continu ous basis and for smooth running of the firm is cash. There should be sufficient cash in the company. If there is shortage of cash, it will affect the manufact uring operations of the firm and if there is excess cash, it tends to remain idl e. Therefore, the cash and bank balance of the company should be optimum and to maintain this, they can use the system of investment in reserves too. NEED FOR FINANCE: In Dairy Rich, the need for finance arises due to the following reasons: The need for expansion. The need for diversification. The need for renovation. The need for payment for creditors. Finance purpose as procurement of finances and their efficient consumpti on in the business. Finance is the job of providing money required by the ventur e on the term that are most positive to keeping it in view of the objective of t he enterprise.

PERSONNEL DEPARTMENT- Personnel department is a very important division of the organization. It refers to the employment not only of material factors, but wha t is still more significant of people who are functioning on these factors. Ther e are 65 members who are each divided into group of production wise or category wise. There are 3shifts from the employees in Dairy Rich. Every shift works on the integration of production unit, while the others are in charge of cold stor age rooms. As Dairy Rich is an ice-cream manufacturing unit, the task has to be uninterrupted. Employees get excellent facilities, timely incentives are also gi ven to inspire the employees. They are given fair salaries and bonus is also given every year to creat e a corporate surrounding where the employees feel cheerful of being part of the Dairy Rich family, attain optimum employee participation at all levels cultivat e a sense of inter-dependence and co-operation between all employees and make s ure that all employees take part in the quality procedure in one form or the oth er. Make everybody in the firm from the managing director to the individual on the shop floor share the dependability of maintaining the Dairy Rich customs of quality, hygiene and good taste. RECRUITMENT AND SELECTION: The Recruitment is done officially. That is the recruitment is done by a pplication of education. Thisisneededfor receiving job in DairyRich for the tech nological division. Persons from ITI & Diploma are given much preference. Since there is a computer laboratory and registered office computer engineer as well a s management students are also given preference for the same. A lot of evaluatio n programs today is also given to the executives. EMPLOYEE BENFITS AND FACILITIES: The employees in Dairy Rich are given good benefits. They are rewarded well and on the other hand many other benefits are also provided on particular occasions. All the family members are invited to the factory. Apart from this, there is al so a presentation by the top level management which helps them in getting motiva

ted to join the company. Some particular programmers such as gathering at qualit y circle are also prepared to know the unknown qualities of the employees and th ose extraordinary skill identification programs are also conducted for this reas on and awards are also given. A selection method begins with retention of a employee and then he is advanced. Separation can be done in 3 ways: Resignation. Retirement. Termination. The commercials for employees are given in means of newspaper on to the consulta nts. The remuneration is provided by 3 ways either by government acts or by the length of the task or by performance. TRAINING AND DEVELOPMENT: Different ways of training and development and undertaken for the manage rs of Dairy Rich ice-creams. Training is provided to the bottom level managemen t while development programs are intended for the top level department. The empl oyees here are supplied with uniform, cap, masks and gloves. Employees' security is given preference at most cases . There is a re commendation box in which the recommendations from staff is taken into considera tion. Not only this, if the recommendations are worthwhile, they are rewarded wi th nice gifts such as 25% discount is provided to employees at all Dairy Rich p roducts. The troubles of employees are tackled and steps on procedures are unde rtaken at good level. ORGANIZATION OF MARKETING DEPARTMENT The marketing division of the firm SEETHA ICE CREAMS PVT LTD., the marketing man ager Mr. Suresh Babu handles and he works openly under the managing director Mr. Giriyappa. K, Dairy Rich conveys quality, service, cleanliness and worth to cons umers around Karnataka, Tamil Nadu and Andhra Pradesh. Essential thoughts of pac kaging and designing develop from marketing work which is inspected by Mr. Sures h Babu Desai under Mr. Giriyappa. There are 3 regional officials or executives i n Bangalore, Tamil Nadu and Andhra Pradesh. The markets of the firm under the re gional officers provides distributors where more than 1500 outlets under distri butors work to make accessible of ice cream to the final customers. The marketing managers report to the managing director once in three day s and give the daily reports on the work done by them. They have to at least vis it 30 shops everyday and improve the sales of the company. The company also looks into the total number of outlets achieved by the executives and the managing director provides the executives with a cell phone, fuel reimbursements of 200 per day and expenses for food.

MARKETING DEPARTMENT The objective of marketing is to create customer satisfaction gainful by developing value added connection with vital customers. The marketing departm ent cannot achieve this objective by itself. It must team up directly with other departments of the firm and partner with organizations throughout its complete value delivery system to supply advanced value to customers. This marketing calls up everyone in the organization. Some people believ e that only big business firm working in extremely developed economies employ ma rketing, but sound marketing is vital for the achievement of every organization,

whether big or small, for profit or non-profit, domestic or global. The plan of marketing is to create selling surplus products. The aim is to recognize and appreciate the customer so healthy that the product or service sells by its elf. Marketing study is the application of assembly and interpretation, detai ls per to any phase of the firm, facts are required for improved decision buildi ng for better preparation and for improved programming. The base of marketing st udy in an organization which consider, its key duty is to establish the desires, wants and values of a target market and mentor adopts itself to convey the pref erred pleasure more efficiently and proficiently to its competitors. The study i nvolves the assortment and investigation of data and information bearing on the special features of marketing effort of a firm. Marketing study focus on the rev ision of product preparation and progress, pricing policy, effectiveness of pers onnel, selling, advertising and sales, promotional distribution structure etc.

STRUCTURE OF MARKETING DEPARTMENT

MARKET DEMAND Forecasting demand is the evaluation of the important proceedings of prospect ba sed on the study of the past & present situation actions. Future cannot be predi cted if one knows how the dealings have happened and how they accrue currently. According to Netter & Washman industry estimation demand refers to the expectation of purchasers wants under an agreed set of upcoming conditio ns. Forecasting demand for the non-durable goods is not so simple for the reason that it has variation in demand throughout the year. More unbalanced the demand , more the business need precise forecast detailed forecasting measures. A good forecasting is a key aspect in company's achievement. Dai ry Rich has achieved healthy in forecasting demand even though, the ice cream de mand is unbalanced throughout the year. They take up a variety of methods for fo recasting demand. They also take up marketplace review and consumer is there for knowing the purchasing actions of consumer manufacturer necessity and want.

MARKETING SEGMENTATION Everywhere a market for a good or service consist of two or more customers. The market is capable of being divided that can be segmented into useful buyer clust ers. The principle of segmentation is to decide the major consumers to organi ze suitable segments. Dairy Rich segments its market on the below mentioned basi s. The market segmentation is done on the foundation of the 3types. Geographical segmentation- Dairy Rich has divided its market typically in Karnat aka, Tamil Nadu and Andhra Pradesh. It has also marketed in Northern and souther n parts of Karnataka. The market is divided typically in Bangalore, Mandya, Myso re, Mangalore, Hassan, Kolar, K.G.F, Tumkur, Davangre, Chitradurga, Bellary, Hub li, Hindupura, Hosur, Krishnagiri, Salem, Thirchy, Maddur, Gowribidanur, Belgaum , Mangalore, Puttur, Sullia. Demographical segmentation- Dairy Rich Ice-cream has market segmentation based o n demographical factors such as age, income group etc. It has mostly segmented f or children, teenagers and middle age people. It launched variety of flavors for different age group. It has released a variety of Candies and Choc bar essential ly for children Behavioral segmentation- The firm also divides its market on the behavioral vari ables like occasions, parties. Dairy Rich use special segmentation for its produ ct. It launched certain innovative flavors for the festivals like, Navaratri, Di wali and other festivals. It also divides its markets based on some events like golden jubilee of independence day, It has developed August-15 flavor for this unf orgettable day. The Ice-cream business usually approve geographical segmentation . But Dairy Rich has given equivalent significance to all the segmentation.

MARKETING MIX It the mixture of the a variety of functions of marketing recognized through dem and and supply. It is the strategy approved by the manufacturer to expand succes s in marketing area of the company. It is the mixture of four inputs, which comp rise the companys marketing classification. The product price formation, the promotional action are inte rconnected because judgment in one have an effect on the other, marketing mix is forceful theory as it keeps transforming in the market situation and location. Product mix includes design attributes, value etc. Promotion mix is a process of communicating with customers through personal selling, social contacts, adverti sing, publicity etc. It is concerned with the informing and influencing the cons umers about goods of the firm. Price mix contains judgment regarding base price, price strategy, discount and c redit cost, demand, competition and several other things which control the price . Place mix is concerned with connecting the seller and the buyer. It contains que stions as to amount and type of middleman or distributors, ways of transportatio n system etc. The course over which the goods should be transported from the man ufacturer to the customers has to be decided and selected.

PRODUCT Anything that can be presented to a consumer for awareness, acquisition, use or

consumption that may persuade a want or need. It consists of material object, se rvices, persons, place, organization and ideas. PRODUCT LIST These are the products which are offered by Dairy Rich to the consumers. PARTY PACKS (1000ML) VANILLA STRABERRY TUTTY FRUITY FRESH MANGO VANILLA CHOCO CHIPS KAJU KISHMISH RICH CHOCOLATE BUTTERSCOTCH RAINBOW FIG-O-HONEY BLACK CURRANT PISTA BADAM KESAR PISTA LYCHEE CHIKKOO SITAPPLE DAIRY RICH DELIGHT FAMILY PACKS(500ML) VANILLA STRABERRY TUTTY FRUITY FRESH MANGO RICH CHOCOLATE BUTTERSCOTCH PISTA BADAM BLACK CURRANT HALF LITRE TUBS VANILLA CHOCOLATE SUNDAE RASBERRY SUNDAE MANGO SUNDAE VANILLA CHOCO CHIPS CHOCOLATE ALMOND FUDGE DAIRY RICH DELIGHT CHIKKOO RAINBOW CHOCOLATE CHOCO CHIPS SITAPPLE SMALL CUPS(50ML) VANILLA STRABERRY PINEAPPLE GREEN PISTA RICH CHOCOLATE FRESH MANGO TUTTY FRUITY BUTTERSCOTCH DAIRY RICH DELIGHT LARGE CUPS(100ML)

VANILLA STRABERRY CHOCOLATE FRESH MANGO TUTTY FRUITY BUTTERSCOTCH PISTA BADAM BLACK CURRANT KESAR PISTA STICKS ORANGE JUICY MANGO JUICY PINEAPPLE JUICY GRAPE JUICCY RASBERRY SPLIT MANGO SPLIT VANILLA CHOCO CHIPS BAR CHOCOBAR MINI CHOCOBAR NUTTY BAR TREAT MINI KULFI 30ML KULFI STICK 60ML

NOVELTIES BALL-VANILLA BALL-STRABERRY MANGO IN MANGO RAINBOW GUDBUD CASATTA SLICE QUICK SUNDAE MINI CONES- VANILLA, STRABERRY, CHOCOLATE, MANGO EASY CONES MANGO SUNDAE CHOCOLATE SUNDAE MATKA KULFI

PACKING The actions of crafting the container ,wrapper for a good is called packing. The package may contain the ice creams main container, a minor package that is dispo sed away when the products is ready to be consumed and shipping package is essent ial to shop locator and dispatch the product, labeling the printed data appearin g with the package. Conventionally the prime role of the package is to hold the product. Currently, several variables have made packing an essential marketing device, improved rivalry. Modern packaging can give the firm advantages ro face competitions.

DAIRY RICH'S PRODUCT PACKAGING: The firm employs solid card board for family packs. There are transparent plasti c bowls for new flavor ice-cream, strawberry in stand berry shape ball, candies are traded using sticks, chocolate sundae and mango sundae are sold using plasti c transparent cups, matka kulfis are sold through hard matkas etc. The packing i n addition includes a number of vital and handy data like code number. Dairy Ric h utilizes plastic cups for ice-cream and its diverse products. It employs thick , hard card papers for the packing of family pack. The packing also includes a n umber of important and useful information like: The Code Number The Net Weight Date of Packing Date of Expire Maximum Retail Price etc.

PRICING POLICY PRICING POLICY Price refers to the sum of money charged for a good or an intangible service on the value of the buyer exchange for the benefits of utilizing the product or ser vice. FACTORS CONSIDERED FOR PRICING- Internal factors which affect price choices inc lude surviving present profit, maximizing market share, development of product q uality, leadership, marketing mix plan. External factors consist of the characte r of the market and demand competition and other situational factor like economi c state, supplier response, government social concerns etc. PRICING APPROACHES COST BASED PRICING- It contains cost plus pricing and even examination and targe t profit pricing. VALUE BASED PRICING- Verdict cost base on purchasers opinion of value. COMPETITOR BASED PRICING- Dairy Rich looks into the competitors price and also aims to continue the equal price. Also, the business thinks cost of production profit and later make a decision on the price. So the business tracks blend of t wo approachs specifically going rate pricing and cost plus pricing.

DISTRIBUTION CHANNEL The distribution channel followed in Dairy Rich can be showed by the following d iagram:

PROMOTION MIX ADVERTISING: The American Marketing Association has defined advertising as" any paid form of non-personal communication of idea, goods or services by an identif ied sponsor". Dairy Rich has spent 7.5% of total revenue on advertisement. Adver tisements are beautiful message which appeal to the customers and frequently col ored significance are generated by relative group in Dairy Rich. Medium of adve rtisement is mainly through newspaper. OBJECTIVES OF ADVERTISINGIntroduction of New Products. Influencing Potential Customer to Buy Dairy Rich products. Reminding Users about the forgotten product. To Create Brand Image. To Intimate Customers About New Users of Product. Dealer Support. SALES PROMOTION- To promote the sales and increase the awareness of ice creams, Dairy Rich introduced some offers like Buy One Get One Free, 10 percent extra i n the existing product, providing free samples to the distributors so that it wo uld help to influence in more purchasing. This also helps to increase the sales of the firm. As of now, the company follows only these strategies to promote the products and sales of Dairy Rich.

SALES OF THE COMPANY During the period of my internship, I was assigned with the task of checking on the sales of the company. There has been a major variation in the sales and reve nue of the company. When the company started, there was an annual turnover of ab out 6lakhs but in the year 2012, the total revenue of the firm increased to 10 c rores and the annual profit was incurred to around 3-4 crores. The success of the sales of the company is totally dependent on the m arketing strategy adopted by the company. Because of the promotional tools, pric ing techniques, introduction of new products into the existing product line, dis tribution channels, the company has been able to increase the sales. In the month of April, the revenue was around 95 lakh and for the m onth of May, the revenue was 90lakh. Because of rain in the starting of May for a week, there was a downfall in the sales and it soon regained its position and could sell more and more products.

MARKET INFORMATION New Competitors have launched their product in Bangalore Market (2011-12) HANGYO ICE CREAM SHRUTHI ICE CREAM CREAMBELL ICE CREAM ESKIMO ICE CREAM TIRUMALA ICE CREAM Mangalore Chittur Gurgaon Bangalore Chilkur

The above mentioned competitors have launched their products with a variety of schemes: ree HANGYO ICE CREAMS SHRUTHI ICE CREAMS CREAMBELL ICE CREAMS ESKIMO ICE CREAM THIRUMALA ICE CREAM - Worth Rs.1000/ Stock purchase on box any item f On purchase of five box one box free. Deep freezer at lower price. On purchase of five box one box free. Deep freezer at lower price.

SEETHA ICE CREAM PVT.LTD., started new scheme on 15th November towards Deep Free zer: 200 litter Deep Freezer - Rs.10,000/- + Rs.25000/- value of ice crea ms free, earlier it was Rs.12000/ 300 litter Deep Freezer -Rs.13,000/- + Rs.3000/- value of ice creams free, earlier it was Rs.15000/Suggestion to improve marketing:To improve sales we plan to introduce our brand Ice Cream in Andraprades h, Tamilnadu and other parts of Karnataka which are not covered. Planning to introduce Combo-Pack (800ml + 800ml) of two fast moving fla vors. Effectiveness / Response of the scheme can be established during July 2012 .

CONCLUSION After going through the marketing plan of Dairy Rich, I can conclude by saying t hat Dairy Rich is giving a tough competition to their competitors and moving tow ards success although it has many strong competitors in Karnataka, however it ha s intended to give their competitors a strong challenge in the years to approach . It is tough to mention right now, whether Dairy Rich will be able t o create their achievement in its fresh original marketing strategy. My overall idea about this entity is inexpressible. This is an unforgettable practice for m e to visit the plant of Seetha Ice Creams Pvt Ltd.

I conclude that the job of preparing project report is seen with co-o peration, unity and team work. Once more, I am very grateful to the management o f Seetha Ice Creams Pvt. Ltd., for making my report both beautiful and useful.

BIBLIOGRAPHY WEBSITEwww.wikipedia.com www.dare.co.in www.businessstandards.com www.marketresearchreports.in www.dairyrichicecreams.com BOOKSAswathapa. K. Human Resources and Personnel Management Kotler Philip Principles of Marketing