Intern Ship Training In Pappai Icecream.

A STUDY ON FUNTIONAL AREAS IN RIME RICH FOODS PVT. LTD A SUMMER REPORT Submitted by MUNEER.PP

(Reg. No. AC08MBF056)

Submitted in partial fulfillment of the Requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION 2008-2010 Under the guidance of Mr.S.M.SIVASHANKER B.E,M.B.A

ADHIYAMAAN COLLEGE OF ENGINEERING (AUTONOMOUS),HOSUR (Approved by AICTE & Government of Tamil nadu & affiliated to ANNA UNIVERSITY) JULY-2009

Internship

training in pappai ice cream

CERTIFICATE

This is to certify that the summer training report entitled “A STUDY ON FUNCTIONAL AREAS IN

RIME RICH FOODS PVT LIMITED ’’

Submitted by MUNEER.PP(ACO8MBF056) is a Bonafide record of the industrial training done by her \ him during the academic year 2008-10, under my guidance and supervision in partial fulfillment of

DEGREE OF

MASTER OF BUSINESS ADMINISTRATION.

PLACE: HOSUR DATE:

Mr.S.M.SIVASHANKER (faculty guide)

Dr.V.NAVNEETHAKUMAR (Director)

2 Department of management studies, AERI College, Hosur

Internship

training in pappai ice cream

DECLARATION I MUNEER PP here by declare that this internship training carried out by me, at RIME RICH FOODS PVT LIMITED during the period of study in Adhiyamaan College of Engineering Hosur under the guidance of Mr.S.M.SIVASHANKER the faculty member of DEPARTMENT OF MANAGEMENT STUDIES for the partial fulfillment of requirement of the MASTER OF BUSINESS ADMININSTRATION program of ADHIYAMAAN COLLEGE OF ENGNEERING, HOSUR. I also certify that this project has not been submitted at any time to any other university or institute for the award of Degree or Diploma

Place: Hosur

MUNEER PP

Date:

3 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

ACKNOWLEDGEMENT We thank almighty GOD for the blessing that have been showered upon us to complete the project successfully. I would like to express my sincere gratitude and heartfelt thanks to our PRINCIPAL Dr.G.RANGANATH whose as given me chance to do my post graduation in this College and also to our DIRECTOR Dr.NAVANEETHKUMAR For His valuable Guidance . We hereby express my deepest gratitude to Mr.FINESON.K.J Managing Director Rime Rich Foods (p) Ltd and to all the employees for their immense support and patience they offered at all the time, thus helping me to complete the project in the stipulated time period. We used this opportunity to express my sincere and solemn thanks to our internal guide

Mr.S.M.SIVASHANKER Department of MANAGEMENT

Studies For the valuable guidance, constant encouragement and creative suggestions offered during the course of the project and also while preparing the project. Indeed no words can express my deep sense of gratitude to my parents And friends for extending motivation and financial assistance in the completion of my In plant training.

4 Department of management studies, AERI College, Hosur

training in pappai ice cream

Sr. No.

CONTENTS

Internship

Page No.

1.

Introduction & History

1

2.

Industry profile

8

3.

Company profile

10

4

FUNCTIONAL AREAS

4.1

Finance department

15

4.2

Purchase department

16

4.3

Human Resource department

17

4.4

Production department

19

4.5

Marketing department

28

4.6

Sales department

30

5 Department of management studies, AERI College, Hosur

Internship

training in pappai ice cream

Sr. No.

Page No.

CONTENTS

5.

SWOT Analysis

33

6.

Findings

37

7.

Suggestions

39

8.

Conclusion

40

9.

Bibliography

41

6 Department of management studies, AERI College, Hosur

Internship

training in pappai ice cream

OBJECTIVE OF THE PROJECT UNDERTAKEN

1. Understanding the process  A Complete Study on the movement of Ice cream production in end to end process. 2. Plant reviewing and production techniques  Frequent visits to plants and discussions with the officers 3. Learning and adjusting according to workplace environment

IMPORTANCE OF THE STUDY Even though this study is mainly of an academic one, it is important in many other aspects. This type of study and training will through some light

on

the

positive

and

the

negative

aspects

various

business

entrepreneurs selected for training. The finding of such studies by the student will enable the local authority to frame their policies and chalk out effective programs.

7 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

SCOPE OF THE STUDY The scope of the study neither deep nor wide. Only serious attempt has been made to understand this industry and the unit. The industry whole has been studied further the studies concentrated on major areas like production, marketing, human resources of the pappai. In the areas of marketing the emphasis is given to a brief study of marketing strategies of the concern.  Vast semi –urban market  Increasing trend of ice-cream in India  Good Market  Competition

PRIMARY DATA Primary data consist of mainly the result of the directed personal enquiry and observation. The relevant information was collected from the management staff and workers.

SECONDARY DATA Secondary data primarily consist of the following  Annual report, other report of the firm and other printed source.  Records of the company regarding production, marketing and other details  Books and publications, internet etc

8 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

LIMITATION OF THE STUDY  The study is restricted certain part of Malappuram District because this unit of company is producing for that area.  Certain respondents were not given proper information.  Time is also limiting factor.

9 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

The Evolution of Ice Cream Ice cream's origins are not known to reach back as far as the second century B.C., although no specific date of origin nor has inventor been undisputable credited with its discovery. We know that Alexander the Great enjoyed snow and ice flavored with honey and nectar. Biblical references also show that King Solomon was fond of iced drinks during harvesting. During the Roman Empire, Nero Claudius Caesar (A.D. 5486) frequently sent runners into the mountains for snow, which was then flavored with fruits and juices. Over a thousand years later, Marco Polo returned to Italy from the Far East with a recipe that closely resembled what is now called sherbet. Historians estimate that this recipe evolved into ice cream sometime in the 16th century. England seems to have discovered ice cream at the same time, or perhaps even earlier than the Italians. "Cream Ice," as it was called, appeared regularly at the table of Charles I during the 17th century. France was introduced to similar frozen desserts in 1553 by the Italian Catherine de Medici when she became the wife of Henry II of France. It wasn't until 1660 that ice cream was made available to the general public. The Sicilian Procope introduced a recipe blending milk, cream, butter and eggs at Caf Procope, the first caf in Paris. Wide availability of ice cream in the late 19th century led to new creations. In 1874, the American soda fountain shop and the profession of the "soda jerk" emerged with the invention of the ice cream soda. In response to religious criticism for eating "sinfully" rich ice cream sodas on 10 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

Sundays, ice cream merchants left out the carbonated water and invented the ice cream "Sunday" in the late 1890's. The name was eventually changed to "sundae" to remove any connection with the Sabbath. According to legend, Marco Polo brought the secrets of ice cream with him from the Orient, together with other sundry savories. There is, however, no proof of that, although there is some evidence that the Chinese indulged in iced drinks and desserts, which gives some weight to the Marco Polo theory. The Chinese did, however, teach Arab traders how to combine syrups and snow, to make an early version of the sherbet. Arab traders proceeded to show Venetians, then Romans, how to make this frozen delight. The Emperor Nero was quite fond of pureed fruit, sweetened with honey, and then mixed with snow--so much so that he had special cold rooms built underneath the imperial residence in order to store snow. In the 1500s, Catherine de Medici brought the concept of the sorbet to the French, who were soon to make a great improvement on it. Thomas Jefferson, who imitated Nero in having a special cold room for storing snow, provides us with the first recipe for ice cream found in the United States. Not to be outdone, George Washington invested in one of the ice cream machines. Until 1851, ice cream (or, more frequently, cream ice) was solely made at home. But an intrepid man from Baltimore, named Jacob Fussell changed all that by opening the first ice cream factory. Near the turn of the century, the ice cream soda was created, although by who seems to be in question-either James W. Tuff or Robert Green. It does seem to have been done by accident, however--a scoop of ice cream falling in a glass of flavored soda water. At any rate, the drink became a national craze, and many a girl and boy went courting over an ice cream soda. So many, in fact, that many municipalities passes laws forbidding the sale of soda water on Sunday. Quickly afterwards, the 'sundae' was invented--it contained the ice cream, syrup, and whipped cream of the soda, but without the evil influence of soda water. Numerous variations existed. 11 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

 The first official account of ice cream in the New World comes from a letter written in 1744 by a guest of Maryland Governor William

Bladen.

 President George Washington spent approximately $200 for ice cream during the summer of 1790.



The first ice cream parlor in America opened in New York City in 1776.

 Invention of the ice cream soda is usually attributed to Robert M. Green, who operated a soda water concession in Philadelphia. Green, who sold a mix of carbonated water, cream, and syrup, apparently ran out of cream and substituted ice cream, hoping his customers wouldn't notice. But they did and daily sales receipts climbed from $6 to $600.  The first commercial ice cream plant was established in Baltimore in 1851 by Jacob Fussell.  In 1991, flavor phenomenon was created -- Chocolate Chip Cookie Dough ice cream, which combines the best part of the Chocolate Chip cookie -- the raw dough - with creamy vanilla ice cream and semi-sweet chocolate chips.  In 1843, New England housewife Nancy Johnson invented the hand-cranked ice cream churn. She patented her invention but lacked the resources to make and market the churn herself. Mrs. Johnson sold the patent for $200 to a Philadelphia kitchen wholesaler who, by 1847, made enough freezers to satisfy the high demand. From 1847 to 1877, more than 70 improvements to ice cream churns were patented. 12 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

The beginning of new era India’s contribution to the modern world may not be signed in numbers, but whatever contribution made worth wise is absolutely great. One of the contributions in the desert category “THE KULFI”

Kulfi Kulfi is a popular South Asian, ice cream made with boiled milk typically from water buffalo. It comes in many flavors, including pistachio, malai, mango, cardamom (elaichi), and saffron (kesar). Kulfi differs from western ice cream in that it is richer in taste and creamier in texture. As well, where western ice creams are whipped with air or overrun, kulfi contains no air; it is solid dense frozen milk. It is made by boiling milk until it is reduced to half. Then sugar is added and the mixture is boiled for another ten minutes. Then flavorings, dried fruits, cardamom, etc. are added. The mixture is then put in moulds and frozen. One can eat kulfi plain as is or it can be garnished with ground cardamom, saffron, or pistachio nuts. As well, Kulfi is also served with Falooda vermicelli noodles. But since the kulfi could not become world famous, with the concept of kulfi, ice-cream was started in 1981 in India. Then onwards it has been one big journey……. on the road. Now, Rime Rich Foods (p) Ltd – The Healthy Ice Cream brings to you the new generation of Ice Creams….

13 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

INDUSTRY PROFILE The ice cream market growth picked up after de-reservation of the sector in 1997. The total size of Indian ice-cream industry is 800+ cores. In the organized sector the major players are Hindustan Lever represented mainly by Kwality Walls brand. Amul with an estimated market share of 38% is biggest player in market also he is rapidly gaining market share and lastly Vadilal is the player in the national market with 8-9% of the market share. Almost 40% of the ice creams sold in the country are consumed in the western region with Mumbai being the main market, followed by 30% in the north and 20% in the south.

Growth :The Indian government adopted the policy of liberalization regarding the ice cream industry also and it is since then that this sector has shown an annual growth ranging from 15-20% per annum for last 1- 2 year. Till now it is estimated at worth of 800+ crores. This growth rate is expected to continue for another next 2- 3 years because of lower base. Per capita consumption of ice-cream in India is still a dismal 106 ml per annum against 22 liters in markets like the US. So Indian ice-cream industry is still is in growth phase. This is a good sign for competitors.

14 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

RECENT DEVELOPMENT IN ICE CREAM: This time companies are coming with concept of Probiotic health and wellness ice creams and sugar free variants. They are coming with natural flavors like natural vanilla.  Amul, the market leader in the ice cream space, has already launched Probiotic health and wellness ice creams and is also offering sugar free variants.  Mother Dairy, a subsidiary of the National Dairy Development Board, has decided to expand its naturally flavored offerings along with its new packaging.  Some company is looking at adding more natural flavors to its portfolio. The company is also betting big on fruit juice bars to cater to the growing number of conscious consumers.  Hindustan Unilever introduced Moo ice cream under the health and wellness umbrella. Moo, a combination of chocolate and vanilla, is targeted at children and mothers because of its health credentials each stick has calcium equivalent to one glass of milk.  In the field of marketing and setting up new shops the multinational companies are targeting big malls and multiplex. They are setting shops in malls and multiplex in good positions to attract customers.

15 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

COMPANY PROFILE Location:-

kinfra techno industrial park kakkanchery near Calicut

university. Rime Rich Foods pvt limited was established in 2002 at kakkanchery. It was the first started industry in Techno park It is situated at kakkanchery at a distance of 10 kms away from Calicut airport and having a vast premise in about 18 acres of land, where its office and plants are situated. The installed capacity of this is 6000 liters per day. And it has 5 crores of sales and 10 crores of turnover per day. Its marketing administrative office is situated at THRISSUR, for the successful implementation of operation flood programme in Kerala. The firm has got an Efficient management. The different department have managers and assistant managers. They came under the control of Rime Rich manager. Rime Rich Foods (p) Ltd will have plant with foreign machineries scheduled to be commissioned in Jan 2002 by AIFA LAVAL, an Italian company owned by world famous TETRA PACK of SWEDEN Rime Rich Foods (p) Ltd will have highly sophisticated laboratory to check the quality of product at every stage of production and this to add to the Total Quality Management (TQM) policy of the company

MANAGEMENT The mega venture is brought to you by Mr. John Johnson, an NRI(Non Resident Indian) associated with a major air lines industry in UAE for the last 22years with a sound financial and business acumen backed by proven track record in food, marketing, and customer service and 16 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

Mr. Starson, managing partner of a leading ice cream company in Kerala, India.

ABOUT THE BRAND NAME PAPPAI PAPPAI means child in many language in India. The brand name pappai was selected by a survey among customers. From some samples more people selected pappai. and the world famous cartoon “POPEYE” . A major part of ice cream customers are children. Any children can easily pronounce the word pappai. Because “pappa” is one word as father which any child learn to pronounce first. So this factor influenced the selection of brand name pappai. It was introduced in Kerala just seven years before. But the growth of the pappai was exclamatory. New pappai was one of the most famous ice cream in Kerala. Turn over 40 crores. Today pappai is symbol of many things at high quality product sold at reasonable price

PRODUCT DEFINITION Ice cream may be defined “as a frozen dairy product made by suitable blending and processing of cream and together with sugar and flavor, with or without stabilize or color and with incorporation of air during the freezing process”. Rime Rich Foods (p) Ltd is a multi million rupees business venture in ice cream industry eyeing the south India market with soon to be launched delicious product PAPPAI ice creams

17 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

RAW MATERIAL Main product frozen dessert:  vegetable fat & milk fat.  Butter  Skimmed milk powder  Sugar  Stabilizer  Vegetable fat LOCATION ADVANTAGES  Good transportation facility.  33kv substation. 

Near national highway.

 Industrial park.  Industrial atmosphere.

18 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

Different departments:1. production and maintenance 2. marketing 3. human resource management 4. dispatching 5. front office

MISSION STATEMENT Pappai Ice Cream’s mission is presented below: We pledge that we will serve fresh foods in a prompt and friendly manner. We pledge that we will serve only quality foods that meet the nutritional standards of the International Premium Ice Cream Institute. We pledge that we will be good community citizens, respectful of the environment, and friendly neighbors to the surrounding businesses. We pledge that we will always present a positive public image and make our establishment one that you can visit with safety and peace of mind. We pledge that we will be responsive to your suggestions and concerns. If we do not keep our pledge of satisfaction, you do not pay! 19 Department of management studies, AERI College, Hosur

Internship

training in pappai ice cream

ORGANIZATION STRUCTURE

Board of directors

Managing Director

Purch Mgr MMngr

Prodn Dept

Finance

Marketing

Store keeper

ProdnMngr

A/C Mngr

Sales Mngr

Supervison

Accountant

Despatch dept

Despatch Assistant

Sales officer

Worker

20 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

FINANCE / ACCOUNTS DEPARTMENT Finance is the life blood of business. It is the most important aspects of a business and scarce. Therefore it requires proper planning and control to achieve the objectives the objectives of a business. Accounting has rightly been termed as the language of the business.

The basic function of a language is to serve as a means of

communication. Accounting also serves this function. It communicates the results of business operation to various parties who gave some stake to the business, proprietor, creditors, investors, government and other agencies. The financial statements of the company have being prepared under historical cost convention, in accordance with the GAAP applicable in India and the provisions of company Act 1956. WAGE PAYMENT Wages are paid to the workers on monthly. Payment is made on the last day of each month. The wages of workers are fixed on the basis of their skill. Yearly increments in the grades are also given. A skilled worker get minimum Rs 4000/-per month. Wage payment also considers the work experience and skill. Total wages Rs 200000 paid in a month BENEFIT AND INCENTIVES The company pays festival allowances to workers during Onam season. During peak season Sunday are also considered as working days. For these days wage are paid above than the normal rate. All the days in a 21 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

week are working days except Sunday. Yearly they can take 13 holidays. That is four national holidays and 9 festival holidays. Employees can take 15 days casual leave plus sick leave. Any leave taken above this will be treated as leave without pay. Company provide ESI and Provident Fund coverage to its permanent workers

PURCHASE DEPARTMENT Purchase order is placed based on the requirements. Reorder level varies from materials to materials on the basis of distances of the suppliers and the usage of the material. Purchase indents will be received from the stores, maintenance department the material like sugar, packing materials the purchase department itself will make the check and order.

QUALITY OBJECTIVE  To produce material cost, improve supplier’s performance.

DUTIES OF PURCHASE MANAGER  He is in charge for the smooth functioning  He is also having right to negotiation.

22 Department of management studies, AERI College, Hosur

Internship

training in pappai ice cream

HUMAN RESOURCE pappai regards its personnel as its most valuable asset. Involvement at all levels starts with open communication, whether on specific aspects of the business, or about the activities of the Company in general. Suggestions for changes and proposals for improvements of pappai’s practices are encouraged. Human Resource Management is concerned with the peoples dimension in organization.

Human Resource Management is a series of

integrated decisions that from the employment relationship; their quality contributes to the ability of the organizations and the employees to achieve their objectives. Human Resource is considered to be an invaluable asset. Employees are motivated to bring out the best within themselves. Performance is recognized with an appropriate compensation package. Human Resource Department endures smooth and homogeneous industrial relationship at all the units.

Company’s human

resources have played a vital role in achieving the improved results. They are being appreciated for their hard work and dedication.

Health, safety

measures, disciplinary and improved working conditioned are provided for the employees. The Human Resource department maintains the record of the employees containing the names of the employees, their age, qualifications, experience, promotion, and achievements etc for future reference.

23 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

WORKING TIME  The factory works all days in the week except Sunday.  In times of greater demand production will be carried out on Sunday also the company works 8 hours.  The normal working time is 7.30am to 4.30pm.  The office staff’s works from 9am to 6pm.

24 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

PRODUCTION

Production process

SELECTING INGREDIENTS

FIGURING MAKING

PASTURIZATION

HOMOGEUNAIZATION

COOLING AND AGING

FREEZING 25 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

PLANT LAYOUT OF PAPPAI

26 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

SELECTING INGREDIENTS Selection of ice cream ingredients involves extraction of fat and SNF from milk is not sufficient to prepare same quantity of ice cream. There for we separate fat and SNF and later mix the required amount needed in ice cream. Moreover, stabilizer and sugar are also used.

Composition of pappai ice cream •

greater than 10% milk fat by legal definition, and usually between 10% and as high as 16% fat in some premium ice creams

•

9 to 12% milk solids-not-fat: this component, also known as the serum solids, contains the proteins (caseins and whey proteins) and carbohydrates (lactose) found in milk

•

12 to 16% sweeteners: usually a combination of sucrose and glucosebased corn syrup sweeteners

•

0.2 to 0.5% stabilizers and emulsifiers

•

55% to 64% water which comes from the milk or other ingredients

FIGURING :Suitable and accurate quantity of the listed ingredients is decided proportionally.

MAKING :The process of making ice cream is the next step. All the above components are mixed well and blending is done to make the mixture smooth and soft.

PASTURIZATION:27 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

The mix is then pasteurized. Pasteurization is the biological control point in the system, designed for the destruction of pathogenic bacteria. In addition to this very important function, pasteurization also reduces the number of spoilage organisms such as psychrotrophs, and helps to hydrate some of the components (proteins, stabilizers). Here its heated at 68 degree Celsius for 30 minute and cooled slowly as needed. Homogenization is done for the complete mixing of fat and water content which gives definite and homogenous content shape of ice cream.

HOMOGEUNAIZATION :The mix is also homogenized which forms the fat emulsion by breaking down or reducing the size of the fat globules found in milk or cream to less than 1 µ m. Two stage homogenization is usually preferred for ice cream mix. Clumping or clustering of the fat is reduced thereby producing a thinner, more rapidly whipped mix. Melt-down is also improved. Homogenization provides the following functions in ice cream manufacture: •

Reduces size of fat globules

•

Increases surface area

•

Forms membrane

•

makes possible the use of butter, frozen cream, etc.

•

makes a smoother ice cream

•

gives a greater apparent richness and palatability

•

better air stability

•

increases resistance to melting

COOLING AND AGING :The mix is then aged for at least four hours and usually overnight. This allows time for the fat to cool down and crystallize, and for the proteins and polysaccharides to fully hydrate. Aging provides the following functions: 28 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

Aging is performed in insulated or refrigerated storage tanks, silos, etc. Mix temperature should be maintained as low as possible without freezing, at or below 5 C. An aging time of overnight is likely to give best results under average plant conditions. A "green" or unaged mix is usually quickly detected at the freezer.

FREEZING :The mix then enters the dynamic freezing process which both freezes a portion of the water and whips air into the frozen mix. The "barrel" freezer is a scraped-surface, tubular heat exchanger, which is jacketed with a boiling refrigerant such as ammonia or freon. Mix is pumped through this freezer and is drawn off the other end in a matter of 30 seconds, (or 10 to 15 minutes in the case of batch freezers) with about 50% of its water frozen. There are rotating blades inside the barrel that keep the ice scraped off the surface of the freezer and also dashers inside the machine which help to whip the mix and incorporate air. Ice cream contains a considerable quantity of air, up to half of its volume. This gives the product its characteristic lightness. Without air, ice cream would be similar to a frozen ice cube. The air content is termed its overrun, which can be calculated mathematically. As the ice cream is drawn with about half of its water frozen, particulate matter such as fruits, nuts, candy, cookies, or whatever you like, is added to the semi-frozen slurry which has a consistency similar to soft-serve ice cream. In fact, almost the only thing which differentiates hard frozen ice cream from soft-serve, is the fact that soft serve is drawn into cones at this point in the process rather than into packages for subsequent hardening.

29 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

How Ice Cream Is Made Everybody has a favorite flavor or brand of ice cream, and the debate over whose ice cream is the best rages on each year. While each manufacturer develops its own special recipes, ice cream production basics are basically the same everywhere. The most important ice cream ingredients come from milk. The dairy ingredients are crucial in determining the characteristics of the final frozen product. Federal regulations state that ice cream must have at least 10% milk fat, the single most critical ingredient. The use of varying percentages of milk fat affects the palatability, smoothness, color, texture and food value of the finished product. Gourmet or super premium ice creams contain at least 12% milk fat, usually more. Ice cream contains nonfat solids (the non-fat, protein part of the milk), which contribute nutritional value (protein, calcium, minerals and vitamins). Nonfat dry milk, skim milk and whole milk are the usual sources of nonfat solids. The sweeteners used in ice cream vary from cane or beet sugar to corn sweeteners or honey. Stabilizers, such as plant derivatives, are commonly used in small amounts to prevent the formation of large ice crystals and to make a smoother ice cream. Emulsifiers, such as lecithin and mono- and triglycerides, are also used in small amounts. They provide uniform whipping qualities to the ice cream during freezing, as well as a smoother and drier body and texture in the frozen form.

30 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

These basic ingredients are agitated and blended in a mixing tank. The mixture is then pumped into a pasteurizer, where it is heated and held at a predetermined temperature. The hot mixture is then "shot" through a homogenizer, where pressure of 2,000 to 2,500 pounds per square inch breaks the milk fat down into smaller particles, allowing the mixture to stay smooth and creamy. The mix is then quick-cooled to about 40°F and frozen via the "continuous freezer" method (the "batch freezer" method) that uses a steady flow of mix that freezes a set quantity of ice cream one batch at a time. During freezing, the mix is aerated by "dashers," revolving blades in the freezer. The small air cells that are incorporated by this whipping action prevent ice cream from becoming a solid mass of frozen ingredients. The amount of aeration is called "overrun," and is limited by the federal standard that requires the finished product must not weigh less than 4.5 pounds per gallon. The next step is the addition of bulky flavorings, such as fruits, nuts and chocolate chips. The ingredients are either "dropped" or "shot" into the semi-solid ice cream after it leaves the freezer. After the flavoring additions are completed, the ice cream can be packaged in a variety of containers, cups or molds. It is moved quickly to a "hardening room," where sub-zero temperatures freeze the product to its final state for storage and distribution.

Business strategy Our business strategy will include the determination of the most beneficial product market in term of establishing itself in this new product segment. The most important factor for the success of Rime Rich Foods (p) Ltd. brand is the perception of the consumer and to what extent it can build a positive image in the consumer’s mind. The intensity of the business 31 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

environment, the sustainable competitive advantage of a quality product will give it a strong base to build the market. It is important for us to adopt a different strategy for the Indian market since it is composed of quality buyers as well as those who will buy for their family. Thus, we shall introduce some new strategies so as to establish our self in the Indian market and develop a strong customer base.

Items Processed From antiquity to modern times, Europe has played a central role in world culture. Having contributed to some of the world's most admired architecture, paintings, literature and music. And to this day, these proud people continue to cherish and pay tribute to their culture. Through their many local dialects, holidays, festivals and songs. And yes, cuisines too. Now you can feel that magic, live those lives and taste their delicacies. With all new range that is winning over lovers of ice creams.

Cups(50ml & 100ml) , Family Pack(500ml), Party Pack(1 litre) and Bulk (4 litre) Vanilla , Strawberry, Orange, Pineapple, Chocolate, Mango, Coffee, Chocolate Chips, Coconut, Spanish Delight, Caramel Butter Scotch, Pista Green, Walnut Cherry, Butter Scotch, Maharaja, Fig & Honey, Black Currant, Scottish Crunch, Kaju Kismis, Kulfi, Kesar Pista, Apricot, Sweety Pai, White Honey, Mango Twinkle, Badam Bononz, Star Truck, Dil Bahar, Special Kesar, Star Angel, Richi Lichi Special Varieties  Cassatta (Regular, Premium & Deluxe)  Pappai Slice  Rich Ball (100 ml & 125 ml)  Strawberry 'n' Strawberry  Rich Corona 32 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

 Pot Kulfi  Sundae Rich  Chotta Corona  Stick Items  Choko Rime, Mango Rime, Pineapple Rime, Strawberry Rime, Orange Rime  Ice Lolly Pineapple, Ice Lolly Orange, Ice Lolly Grape, Ice Lolly Mango, Ice Lolly in Tube

FLAVOUR MOST PREFERED ICE-CREAM FLAVOUR

INTERPRETATION :The above data shows the different ice-cream flavor which is most preferred by consumers. As per my survey, Vanilla flavor is the most preferred ice-cream flavor by consumers with 43% of market shares. It is preferred by almost all type of peoples. Strawberry is the second most demandable flavor by the customers. Almost 24% of all the ice-cream 33 Department of management studies, AERI College, Hosur

Internship

training in pappai ice cream

consumption is comes from strawberry. It is followed by chocolate with 19% and14% of other flavors.

MARKETING American marketing association defines marketing as “the performance of business activity that direct the flow of goods and services from producer to consumer or user” “Marketing as a social and management process by which individual and group obtain what they need or what they want through creating, offering and exchanging product of value with others” -Philip kotler-

MARKETING CONCEPT

Costomer orientation

Costomer satisfaction

Achievement of organizations performance objectives 34 Department of management studies, AERI College, Hosur

Internship

training in pappai ice cream

Co-ordinated marketing

Organization success

During internal analysis the promoter should take care of the following things:  Raw material requirement  Power supply  Labour requirement  Working force  Capital  Working capital  Internal rules and regulations  Proper management  Proper material handling

Market research Customers purchase decisions are based on perceptions about brands. They also keep on changing with fashion, income and changes in lifestyle. Unlike industrial products, it is difficult to differentiate products on technical or 35 Department of management studies, AERI College, Hosur

Internship

training in pappai ice cream

functional grounds. With increasing competition, companies spend enormous sums on product launches. Market research and test marketing become inevitable. The business rests on the two aspects that are brand equity and distribution network.

SALES Sales revenue for the product and service are a major components for the forecast. Everything else is geared around the company’s ability to exploit its sales potential.

TOTAL REVENUE IN FORECAST PERIOD

.=

NUMBER OF UNIT

.X

.

including yours PRICE PER UNITx

Customer base being served by all available competing product

.

.% of xtotal

customer for Your product MARKET SHARE

.Number of potential

TOTAL CUSTOMER BASE

Our approach to forecasting product and service revenue is:

36 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

PRICE The price is the exchange value of the product , It is value expressed in terms of monetary medium of exchange . It is a link that binds the customer and the company . It helps to establish a mutually advantageous economic relationships and facilitates the transfer of ownership of goods and services from the company to buyers , Price serves to bring supply of goods and services produced in equilibrium with the quantity demanded.

OUR PRICING IS DONE BY CONSIDERING •

our marketing objectives

•

the economic condition of our target market

•

pricing of our competitor

•

the nature of our business

Sales promotion •

Foreign trip for distributors those who achieving the target

•

Conducting Road show

•

Special schemes in seasons 37

Department of management studies, AERI College, Hosur

training in pappai ice cream

•

Internship

Providing free freezer to distributors

Distribution network In this sector, one of the most critical success factors is the ability to build, develop, and maintain a robust distribution network. Availability near the customer is vital for wider penetration as most products are high value products. It takes enormous time and effort to build a chain of stockiest, retailers; dealers etc and establish their loyalties. There are entry barriers for a new entrant as a new product is typically slow moving and has lesser consumer demand. Therefore dealers/ retailers are reluctant to allocate resources and time. Established players use their clout to inhibit new entrants. However, when a product offers a strong breakthrough, equity build up rapidly and so does the distribution network.

Distribution channel

Super stockist

stockist

Distributor

Sub Distributor

38 Department of management studies, AERI College, Hosur

Internship

training in pappai ice cream

Dealer

End consumer

SWOT Analysis The SWOT analysis is gaining momentum in the present days. The researcher, doing their job in this field is increasingly using this analysis as a mode of presenting their concluding remarks. The term SWOT explains the STRENGTH, WEAKNESSES, OPPORTUNITIES AND THREATS. As far as the project in hand is concerned, the chapter aims at bringing out clearly the strength, weaknesses, opportunities & threats of Rime rich foods (pvt) Limited.

STRENGTH: •

Less fixed cost required

•

No side effects

•

Less consumption of sugar

•

Less consumption of fats

•

Reduces chances of illness like diabetes

•

Useful for health conscious people 39

Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

•

Tasty with health

•

Variety

•

Eco-friendly

•

Efficient supply chain.

•

Distribution structure that allows wide reach and coverage in the target markets.

•

Capable and committed human resources.

WEAKNESSES: •

Slightly high in price due to use of special products

•

Complex supply chain configuration.

OPPOURTUNITIES: •

Introduction of new flavors

•

Easy in achieving breakeven point

•

Prices can be reduced in short run

•

Potential for expansion in the smaller towns and other geographies.

•

Try to adopt new technologies that our competitors are not using

THREATS: •

Lot of competition from existing Ice Cream parlors offering sugar free ice creams

•

Rising prices of raw materials and fuels. 40

Department of management studies, AERI College, Hosur

training in pappai ice cream

•

Slowdown in rural demand

•

Economic slowdown can reduce the demand

•

Major players may enter target market

Internship

FUTURE OF ICE CREAM MARKET IN INDIA Ice Cream market will expand with increase in number of malls HLL has been increasing their ice cream outlets - Swirl. Few years consumers use to go out for walk after dinner and use to buy ice creams from hawkers. But now consumer who often visit malls for entertainment prefer to buy ice creams during different times of the day as it is visible upfront and feel like spending Rs. 50 for that tasty chocolate swirl with cake and nuts. As marketers are understanding the different needs of consumers, be it health conscious people, kids, youngsters, young etc, and coming up with products specific for them... with portfolio of flavors, consumer today has plethora of options at hand to choose from and therefore high probability of buying one more scoop of ice cream. Also with increasing wallet size and innovative modern retail formats, it has definitely given a good chance to the ice cream industry in India. PER CAPITA CONSUMPTION OF ICE-CREAM( IN US $):-

41 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

As given in the above table, the per capita consumption of Icecream in India is only US $0.2 which is much smaller than the same in USA, But the main thing is the increasing opportunities for Ice-cream trade. MAJOR FACTORS:1. The broad market of semi urban market. 2. Least no. of competition. 3. Increase in consumption level of people. 4. Favorable climate for ice-cream in India. 5. GDP growth and growth in per capita income. We can get all the data regarding the per capita income of India from the following table:PER CAPITA INCOME OF INDIA SINCE 2000

42 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

As given in the table, the GDP of India is increasing in the last 5 years. It has brought a remarkable change in the spending habits of consumers, It has move the consumers preferences from economic to premium products. In those days, people unhasitantly wants to spend money on good and quality products. It has been a gain for food and beverage industry. As the result the ice cream industry is also improving and it develops at an increasing rate.

Future plans of pappai  Set up new plant in Thiruvananthapuram ,Kannur and Erode.  Produce sugar free ice cream by collaboration with us technology without changing the taste.  Produce ice cream which boost resistance power .

FINDINGS Production  Pappai using latest technologies in production field.  Pappai is using high quality raw material for its production. 43 Department of management studies, AERI College, Hosur

Internship

training in pappai ice cream

 Pappai is using Stimulated Milk Powder (SMP) instead of milk. It provides more durability than using milk.

Human resources  Pappai providing healthy ice cream to its customers.  Pappai conduct training and development programme for its employees.  Payment is made according to the skills of employees.  Pappai

keeping

employees

database

(wages,

performance

of

employees etc..) by using software’s.

MARKETING AND SALES DEPARTEMENT  Company is using strong distribution channel for marketing ice cream timely  Company providing freezers to distributors.  Company gives more promotional activities to suppliers for increasing sale.  Company gives more offerings to distributors those achieving target.  Some of the innovative ideas are made for the high selling retailers. Such as giving them special packages. Which encourages the dealers.  Pappai Introduced some attractive schemes to improve the sale.  for attracting youths, sponsorship programs are taken .  Company

launched

new attractive packing to change image of

pappai ice-cream in consumers mind.  Company gains competitive advantage.

Finance department  Pappai have sound finance

44 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

 Pappai is using tally software for recording all financial transaction. it provide more security for financial data  Proper allocation fund to various department

SUGGESTIONS 45 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

 Company may use brand ambassador which attracts

each age

segment.  Company may introduce sales promotion schemes like free weight, cutting knife, contest, free gifts etc.  Company may launch ice-cream in new flavors like Mix Fruit  The company needs to improve their packaging material quality. Packaging is one of the main areas of disagreement with the ice cream because the packaging of the Prolife & Sugar free ice cream creates problem with caring and forwarding  The full information about the company and all it’s products may be provided in the website of the company.  Company may launch Prolife sugar free ice-cream in new attractive packing to change image of competitor in consumers mind.

46 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

CONCLUSION Pappai is one of the market leader in ice cream industry in Kerala

Quality is the dominating aspect which influences consumer to

purchase pappai ice cream. for the existence in the local market pappai using aggressive selling techniques. even though in economic slowdown pappai is growing fastly. Rime Rich Food created a good brand image and company well known its brand name pappai, due to its quality. pappai have lot of future plans for expansion of business and production of healthy ice cream. With the help of research, company can find out its week points and can increase its market share through rectify mistakes. People have believed in pappai and they will accept its ice-cream, also if effective actions were taken. The industrial training in Rime Rich Food pvt limited helped me to learn about ice-cream industry and its different departments process . I express my thanks to one and all helped me to complete the project.

47 Department of management studies, AERI College, Hosur

training in pappai ice cream

Internship

Bibliography  Marketing management -philip kotler  Business today  www.pappai.com  www.google.com  www.wikipedia.com  www.pdfcoke.com

48 Department of management studies, AERI College, Hosur