Professional Documents
Culture Documents
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?
arly history and Strategy
This success story began with two unfortunate incidents; one was Kamath's failure in
the seventh grade, because of which his father stopped his education and brought him
to Mumbai and the second was his split with his brother and their business venture in
Mumbai Gokul, a chain of restaurants serving ice creams, fast food and juices.
The split with his brother was in 1984 and he realized that if he had to prove himself he
had to initiate a very novel idea and enterprise on it. What dawned on him was to
introduce a business venture in which he had domain expertise as well as one which
would be unique, and hence he decided upon making ice creams the traditional way
and keeping it completely natural, devoid of artificial flavours and preservatives.
At that moment the market was dominated by industrial players, like Vadilal and Kwality
and it had a loyal crowd of customers. Moving away from the artificial was his unique
selling proposition. After the initial introduction of traditional ice creams he added a
small treat to it, by deciding to add bits of fresh fruits to the ice creams.
Kamath had gained a lot of proficiency while with his brother, but the idea of fruits came
from the fact that his father was a dealer in fresh seasonal fruits, from whom he learnt
the nuances of fruit trade.
And hence the brand Natural was born
.
About Natural Ice cream
In 1984 with an initial investment of just Rs 3 lacs, Kamath opened his first outlet in
Juhu. This was the first business venture he embarked on all by himself, and he wanted
to run it very cautiously. He then had only 3 as staff members and his wife assisting him
then. He did not initially spend on the outlet ambience and instead let his products spea
for itself. This also worked as an advantage to him as he was not under pressure to
earn high returns immediately.
So armed with the basic skill of making ice cream the traditional Indian way, he started
his business. It struck him that whenever Indians wanted to embellish a seasonal fruit,
they often poured milk on it. He thought of doing the reverse, by embellishing his
traditional ice cream with fruit. Hence he added slivers of whichever fruit the customer
asked for. Since he knew about fruits, it was easier for him to choose the best ones.
A few months after the outlet opened he introduced 15 new fruit flavours, of which
Sitafal was an instant hit. He recalls having sold 300 scoops or 12 kgs of ice cream on
the very first Sunday of February 1984.
Once the idea of combining traditional ice creams with fruits proved successful, he
decided not to settle on anything except the best seasonal fruits and hence traveled
across the state to procure them. He travellled to Saswad, a small town near Pune for
sitafals and to Ratnagiri for mangoes. Soon he was able to give a wide choice to his
consumers.
Although he had instant success through his specialized products, he priced them at a
reasonable amount and much lower than the other established brands. He continually
sought to learn from the customer and incorporated their suggestions effectively to profit
from it. In an instance, a customer informed him of how other businesses were getting
innovative with fruits and ice creams in places like Africa and Singapore. These
suggestions were seriously acted upon and improvements were accordingly made. He
is even said to have introduced the jamun flavour on the feedback of a customer.
After having started with a single outlet of 300 sq. ft. in Mumbai, it has grown to possess
46 such outlets in Mumbai, 4 in Pune and one each in Nasik and Ahmedabad. All the
outlets get their ice cream from a factory in Charkop, Mumbai. The ice cream is
dispatched in batches to ensure that only fresh produce is stocked at the outlets. As the
process uses no preservatives and fresh fruits are added, the ice cream must be sold
and consumed within a short time period since its manufacturing. It however does not
have a distributor network in place and even to places like Pune, Nasik and Ahmedabad
it delivers through its ice cream factory at Charkop.
In 2006 it was voted as one of the Top ice creams at the 2nd Consumer Reaction
Award conducted by Bharati Vidyapeeth Institute of Management Studies and Research
& DNA.
The philosophy of Naturals is to find the purest and the finest ingredients and craft them
into ice cream. It is a way of doing business that is as much demanding as it is
uncommon. This is the reason why Natural ice cream epitomizes as the finest ice
creams of India.
Challenges faced
The journey to a strong market holding was not a smooth sailing one. The process of
producing traditional Indian ice cream was not only slow but also laborious and had to
be done manually, which meant maintaining the consistency in taste was a huge
challenge. It also had to be made in batches to ensure that it is fresh. To resolve this
issue Kamath began seeking equipments which would not only make the traditional ice
cream but also enhance productivity and ensure quality. Hence he approached a Dairy
technologist who educated him on efficiency, bacterial quality, hygiene and consistency.
Gradually he custom-made, developed and adopted equipments like mechanical
churners to improve efficiency. He also faced other challenges like de-seeding sitafal.
As it was the most popular flavour it had to be done in huge quantities, however, a
single person could deseed only 2 kilograms of it a day. Eventually he found a machine
to do it.
Even his educational background poised a problem to him at one point of time. He was
unable to handle the taxation issues
Natural ice cream has achieved its success sans advertising and also seems confident
that it is a household name and has a stream of loyal customers. It has created a niche
which keeps at bay the threats posed by any new entrant. However now with the
increasing opportunities and the expanding market through India's liberalization Kamath
sees the need to expand. It is continuing to innovate and experiment to provide new and
unique flavours to its consumers. It already has around 100 natural flavours, but that
does not stop him from introducing more of them.
TIuL mungo, cusLurd uppIe, cIIkoo und coconuL couId evoke Immense pussIon In someone
becomes crysLuI cIeur wILIIn 1o mInuLes oI sLrIkIng u conversuLIon wILI RugIunundun
SrInIvus KumuLI, cIuIrmun und munugIng dIrecLor, Our TImes ce Creum, LIe purenL
compuny oI MumbuI`s weII-known NuLuruI ce Creum.
TIe son oI u IruIL-seIIer, KumuLI`s Iondness Ior IruILs begun In 1q8q wIen Ie soId IIs IIrsL
IruIL Ice creum Irom u smuII sIop In JuIu ScIeme In MumbuI. knew Iud Lo specIuIIse In
someLIIng Lo sLund ouL. TIIs Is wIen my Iove uIIuIr
wILI IruILs begun, suys KumuLI.
R.S Kamath, 54, CMD Our Times ce C that has a current turnover of Rs
30 crore
CurrenLIy operuLIng ouL oI u q,ooo-squure-IooL IucLory
LIuL produces Iour Lo IIve Lonne oI Ice-creum every
duy, KumuLI soon pIuns Lo sIIIL InLo u zo,ooo-squure-IooL sLuLe-oI-LIe-urL IucIIILy.
PresenL In MumbuI, Pune und AImedubud currenLIy, Ie wunLs Lo Luke NuLuruI Lo DeIII und
BunguIore nexL yeur.
TIougI NuLuruI Ius ouLIeLs uII over MumbuI, ILs JuIu ScIeme bruncI Is sLIII LIe bIg money-
spInner, wILI un unnuuI Lurnover oI Rs . crore.
L wus un unIorLunuLe encounLer wILI LIe ncome Tux
DepurLmenL LIuL Ied Lo LIe compuny`s expunsIon. Iud
no knowIedge ubouL keepIng reguIur uccounLs, suys
KumuLI, wIo IosL everyLIIng Lo LIe Lux depurLmenL In
1qqq excepL IIs brund nume und IIs recIpes.
TIIs Is wIen Ie decIded Lo udopL LIe IruncIIsee modeI.
TIougI LIe munuuI Iubour eurIIer necessury Ior Ice
creums Ius been done uwuy wILI, sourcIng equIpmenL
Iusn`L been eusy Ior KumuLI. SInce Ie InsIsLs on noL
usIng sLubIIIsers, urLIIIcIuI coIours und IngredIenLs, LIe
mucIInes Iud Lo be cusLom mude.
BuL II LIere`s one LIIng LIuL Iusn`L cIunged, IL`s
KumuLI`s experImenL wILI new IruILs, even z yeurs on. TIuL despILe LIe IucL LIuL LIII now
NuLuruI Ius InLroduced 1oo dIIIerenL IIuvours LIII now und Ius z1 on ILs menu rIgIL now.
ScoopuIoIIc, Isn`L Ie?
Soccess muntru: Even LIougI NuLuruI
Ius InLroduced 1oo IIuvours LIII now,
KumuLI Is sLIII experImenLIng.
%orning point: WIen Ie IosL IIs enLIre
Income Lo LIe T depurLmenL In 1qqq Ior
IuIIure Lo keep proper uccounLs.
Growth puth: L Look IIm z yeurs Lo
open 1 ouLIeLs. Now Ie pIuns Lo doubIe
LIe number wILIIn LIe nexL yeur.