Arun ice-cream Chandramohan started its business into ice-creams from a small room in 1970 next to his uncle’s textile shop. As it was situated in a busy market place and delivering the customer’s fresh ice-cream from the factory Arun banged the profit of 40,000 in the first year of its business. Than Chandramohan though an expansion and for Arun he went for three fold expansion. Eventually the business began stagnant where expansion increased cost with sales not increasing in the ice cream. Arum ice-cream was unable to meet the expenses t Chandramohan used Me-Too tactics for not losing the brand Arun.
With no knowledge of books regarding the business strategy and having learnt every move of the business in a hard way he thought of joining the Davar’s college an institution offering specialized short duration programme h for working executive courses. He pursued into marketing and personnel management. Coming back with a degree from Davar’s college he was also confident and ready with the bunch of ideas to implement into the business and studying the customers he implemented the cold-chain model.
Arun Ice-Cream Essay Example
Where he saw the big brands like joy and kwality not targeting the college canteen where there was a huge market to make a product a brand name. He started with IIT Madras and went on signing contracts from different places. He accepted the JIT concept and started earning profit from that Arun tried to also capture the interior market of TN and few ports like Pondicherry, Madurai, Kumbakonam and Sivakasi in Tamil Nadu. He started advertising Arun ice-cream through hoardings and banners. Where he introduced Sit and eat the novel method where it increased the popularity of Arun.
From 1981 replicating the model by opening two new franchises without a clue that Chandramohan has started the franchises business for Arun he distributed its product through franchises. He also incepted the concept of exclusive parlours. which increased the turnover from 1, 50,000 to 4, 25,000by 1981 and to about 28. 0 million by 1990. He thought that without inward and outward logistics the ice-cream business will not be a success and with that thought he started a spanking new ice-cream plant at Salem some 320 km south west of Madras.
Than in 1987 he started sales promotion activity the first promotion activity was 1 eat all you can ice-cream mela. 2 slow speed driving competition. 3 phone and have an ice-cream. In 1986 a pvt. Ltd co. Hasten milk food pvt ltd overtook Arun ice-cream where the ice-cream market was shaken by the giant firm like HUL where they overtook BBIL and even a large market that hindered he ice-cream market. According to me the company can adopt the following steps: * Increasing its distribution- expanding business in the central and west zone * Go for advertisements via different means of communication (media)