BUSINESS STRATEGY

ASSIGNMENT 8

ARUN ICECREAM

DIAMOND MODEL FOR ARUN ICE-

CREAM
SUBMITTED TO:
DR.ABRAR ALI SAIYED
SUBMITTED BY:
GROUP 14
DIAMOND MODEL FOR ARUN ICE-
CREAM
 ELEMENTS OF STRATEGY

1. ARENA:
By diversifying in dairy business, Arun can produce
milk for ice-crams and can also manufacture milk
products which would help Chandramogan to increase
the revenue and increase his own market share.
Arun can diversify its products into milk, cheese,
butter, flavored milk, etc.
The new products can be consumed by the markets of
south india with a growth.
New products will be sold in existing markets of Arun
where its franchises existed i.e. in pondicherry,
chennai, kerela, andhra pradesh, etc.
Arun will assure quality by producing its own milk
and thus its own ice-cream products.

2. VEHICLES:
Arun should focus on internal developmnet of its dairy
business.as they they have plants they can be
expanded and utilize resources properly.
Old networks of ships and colleges can be used to
supply their dairy products.
Collaboration with milk farms and local dairies to get
supply of milk.
Franchises of arun can be used for selling of new
products and to increase revenue from new product
line more no of franchises should be inaugrated.
 Theres a good market share in south indian areas and
so more focus should be layed over there for more
development.

3. DIFFERENTIATORS:
Image: It will be created through product packing and
quality of dairy products.
Customization: Exclusive parlors for dairy products.
Styling: Through attractive packing of glass bottles
and plastic for dairy products.
Price: Similar to competitors or slightly higher for
better quality of dairy products.
Speed to market: Products will be easily available in
both urban and rular market.
Product reliability: Products will be hygenic with
better quality and products will be added preservatives
so that they can last longer.
As the franchises are owned by his own close friends
and relatives and theres a good co-operation among
them and so differentiators can be achieved.

4. STAGING:
To know the dairy industry and to think about that
would it be easy to run it along with the ice-cream
business.
To think about all necessary requirements such as
technolgy, R&D, distribution channel, etc.to set up
dairy industry along with ice-cream.
Production of dairy products should be in own
plants and the products should be of better quality.
 As mentioned earlier collaborating with milk farms
should be done.
Salem and chennai plant should be set up with
necessary requirements.
Implementation of progressive strategies
Sequence of initiatives:
Dairy products

Development of products

Selling to earlier market such as hotels, colleges, etc.

Social events

5. ECONOMIC LOGIC:
The main purpose of business is to gain profit and that
too above the firms cost of capital.
Arun was left with 75-80% of the MRP as it was
providing margin of 20-25% to its retailers.they
adopted single tier distribution startegy and so
intermediaries were absent. Compared to others arun
was far away as other only gained 60-65%. Seeing this
in ice-cream sector we can surmise that in dairy
products too Arun can gain such profits and increase
its revenue.
 It was costly for Arun to deliver ice-creams to places
with less order quantity and to decrease this cost arun
started delivering icecream to such places in passenger
trains. Such can be done with dairy products too.
Inspite of cost problems Arun managed to gain profit
from it so if we surmise it wont be a big problem for
Arun to gain profit from dairy products.
Months % of annual sales
April-June 34
July-September 22
October-December 19
January-March 25

From the above mentioned data of sales we can coNclude that

the consumption of ice-creams is lower in winter and monsson
season and so the availabilty of raw material would be less for
manufacturing icecream products in such seasons and so it can
be used in producing dairy products resulting in low cost.