Visakhapatnam - 530045 Summer Internship Project Report Distribution System of Amul Products through Pharmacies In Hyderabad

Submitted By

LINGAM KRISHNA RAVITEJA MBA IB (1226112129)

In Partial Fulfillment of Requirement for the Award of the Degree of Master of Business Administration (International Business)

Under the Guidance of

Faculty Guide
Dr. V. L. Rao GITAM Chair Professor of International Trade and Finance GSIB

Industry Guide
Mr. S.V. R Chary Branch Manger Amul, Hyderabad

DECLARATION
I here by solemnly declare that the project entitled Distribution System of Amul Products through Pharmacies at Hyderabad submitted by me to GITAM School of International Business, GITAM University is a genuine and bona fide work done by me and is not submitted to any other University or published any time before .The project work is in partial fulfillment of the requirement for award of Master of Business Administration .

Place ; Visakhapatnam Date

LINGAM KRISHNA RAVITEJA

ACKNOWLEDGEMENT

I would like to our heartfelt gratitude and thanks to Prof V L Rao for his guidance and support throughout this project. I am thankful to my Institute for providing me with proper resources and fostering this project work.

I convey my sincere thanks to Mr S.V. R Chary Branch Manager for granting me an opportunity to work with an esteemed organization. He has been benevolent enough to lend help and spare his valuable time throughout this project. He has been immensely contributive with his ideas, constructive criticism and motivation which were the guiding light during the entire tenure of this project.

I also extend my heartiest thanks to the Manager and other employees of GCMMF for their support and guidance.

CONTENTS

Executive Summary 1 Chapter 1- Introduction 1.1 Objectives 1.2 Research Methodology 2 Chapter 2- The Dairy Industry in India Production policy Regulation of milk and milk products in India Trade Policy 3 Chapter 3- Company profiles Amul Pattern Three-Tier Amul Model Business Philosophy of Gcmmf 4 Chapter 4- Amul marketing and Distribution Strategies Pricing Strategies Marketing Strategies Market Segmentation Distribution Channel 5 6 Chapter 5- Analysis APPENDIX I- Questionnaire

EXECUTIVE SUMMARY Overview

The project makes an attempt to identify the distribution system of Amul products through pharmacies in Hyderabad and also to identify the different system followed by various corporate and also the potential market for distribution for their products and also the key areas to be focused in the distribution Findings Because of low profit margin almost all retailers are not interested in Amul .The 250 ml and 5 Ltr milk pouch are no available to the retailers for selling. Retailers were selling different brands. Because they were able to receive more margin from on popularized brand that they could not from well known brands. All retailers get Amul products from company selected distributors. All retailers were familiar with sales promotion activities undertaken by Amul. But more of the activities were not communicated by distributors. So it shows that distributors are taking the advantage of such activities. Some questions were asked with view to convert retailers into distributors, but due to low margin they denied that. The awareness for the AMUL pro is not so more in the market Suggestions The company must give more awareness for Amul pro in the market .The company must also see the margin which it is giving for the Pharmacies and retail outlets .The company must also focus on the price compared with its competitor

1. INTRODUCTION
The Indian dairy market is experiencing rising demand due to various driving factors which in turn is providing immense opportunities to manufacturers to grow and operate in the market lucratively. The Indian food and beverage sector is huge and highly competitive in nature. The industry comprises of several sub-sectors such as fruits & vegetables, meat & poultry, dairy, marine products, grains and consumer foods. Dairy Industry plays an important role in the socioeconomic development of the nation by generating huge rural employment as well as providing cheap and nutritional food to the vast population. Though the dairy market in India is dominated by the unorganized sector, the organized sector has shown remarkable growth last few years. For dairy products, quality standards laid by FSSAI have to be followed by the industry players. Various government policies that have been formulated for the food processing sector such as FDI, tax benefits and export promotions are applicable for the dairy category as well. India has one of the largest livestock populations in the world. Fifty percent of the buffaloes and twenty percent of the cattle in the world are found in India, most of which are milk cows and buffaloes. Dairy development in India has been acknowledged the world over as one of modern Indias most successful developmental programmer. Today, India is the largest milk producing country in the world. Milk and milk products is rated as one of the most promising sectors which deserves appreciation in a big way. When the world milk production registered a negative growth of2 percent, India performed much better with 4 percent growth. The total milk production is over 72 million tones and the demand for milk is estimated at around 80 million tones. By 2011, the value of Indian dairy produce is expected to be Rs. 1,000,000 million. In the last six years foreign investment in this sector stood at Rs. 3600 million which is about one forth of the total investment made in this sector. Manufacture of casein and lactose, largely being imported presently, has good scope. Exports of milk products have been decimalized. The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus States.

OBJECTIVES The main of the project is to review the different distribution systems followed by the various corporate for the coverage of their products for pharmacies and chemist outlets To allow suggest the GCMMF on which products they need to focus for the pharmacies and which channel gives the profit margin To all also know which products are being available in the pharmacies

THE STUDY WOULD INCLUDE:

The survey is mainly based on the two products from GCMMF which are being focused through the pharmacies The different products available in the GCMMF Understanding the distribution channel which are followed by various corporate and also the best channel which GCMMF should follow

METHODOLOGY
PRIMARY DATA The primary data is collected from the medical shops at Hyderabad and also with interacting which marketing team and also with the distribution team and the channel member of GCMMF employees SECONDARY DATA The secondary data is taken from the web sites of GCMMF and also from the Various and dairy sector report Sample size: 100 medical shops

2. THE DAIRY INDUSTRY IN INDIA

India being the worlds largest producer and consumer of dairy products, India represents one of most lucrative dairy markets .Indian Dairy Market Report & Forecasts 2011-2016 provides an analytical and statistical insight into the Indian Dairy market. In India, the dairy sector plays an important role in the countrys socio -economic development, and constitutes an important segment of the rural economy. Dairy industry provides livelihood to millions of homes in villages, ensuring supply of quality milk and milk products to people in both urban and rural areas. With a view to keeping pace with the countrys increasing demand for milk and milk products, the industry has been growing rapidly. The government is taking several initiatives and running plans and programs like National Diary Plan and Intensive Dairy Development Program to meet the growing demand for milk in the country. Our report talks about such schemes, and government regulations to present an objective and balanced picture of the industry. India derives nearly 33% of the gross Domestic population from agriculture and has66% of economically active population, engaged in agriculture. The share of livestock product is estimated at 21% of total agriculture sector. The fact that daring could play a more constructive role in promoting rural welfare and reducing poverty is increasly being recognized. Milk production alone involves more than 70 million producers, each raising one or two cows/ buffaloes primarily for milk production. The domesticated water buffalo is one of the gentlest of all farm animals, hence it can be breaded easily. The dairy sector offers a good opportunity to entrepreneurs in India. India is a land of opportunity for those who are looking for new and expanding markets. Growth prospects in the dairy sector are very bright. As the worlds largest producer and consumer of milk products, India represents one of the worlds most lucrative dairy markets. IMARC Group, one of the worlds leading research and advisory firms, finds in its new report entitled Indian Dairy Market Report & Forecasts 20122017 that driven by a strong growth in both urban and rural demands, the market for milk products in India is expected to surpass US$ 163 Billion by 2017. an updated and far more extensive and analytical version of our popular 2011 study, provides and draws upon a comprehensive analysis of every major dairy segment in India. The study, which has been undertaken using both desk research and two waves of qualitative primary research, has analyzed three aspects of the Indian dairy market.

The first section quantifies the Indian dairy market into fourteen major segments and investigates the current and future opportunities in each of these segments. The second section provides an in-depth understanding of dairy consumption patterns among Indian consumers and the potential of value added dairy products. The third section investigates into the usage of natural coloration in dairy products and evaluates their current and future potential. Indian dairy sector has evolved from rags to riches....

Production 123 million tonnes in CY2011 (USDA) Estimated to reach 170 million tonnes by 2020 Grew at CAGR of 3.7 % in the last decade* Milk is Indias largest agricultural commodity UP contribute to about 18% of milk production

In response to growing demand, Post forecasts CY2012 fluid milk production at a record 127 million tons, approximately 4.5 percent more than CY 2011 which is consistent with national estimates.

This estimate may fluctuate slightly in response to fodder availability and overall monsoon conditions in 2012. CY 2011 production of milk is estimated at 121.50 million tons, around 4 percent up over CY 2010. CY 2010 fluid milk production is kept unchanged at 117 million tons reflecting strong monsoon and related good fodder availability. Production of non-fat dry milk (NFDM) is largely a function of flush season fluid milk availability and lean season demand. As that India continues to take measures to increase the quantity of milk powders available to Indian consumers, NFDM production is expected to grow in correlation with increased fluid milk output. (In 2011, India prohibited NFDM exports as well increased the quota on duty-free milk powder imports from 30,000 metric tons to 50,000 metric tons- see TRADE section). Additionally, industry reports that prevailing strong milk prices are encouraging NFDM production for later release during the lean season. Given these conditions, CY 2012 production of NFDM is forecast to increase to Dairy, Butter Dairy, Milk, Nonfat Dry Dairy, Milk, Fluida record 450,000 metric tons. The CY 2011 production estimate for NFDM has been kept unchanged at 410,000 metric tons. Post has revised NFDM production estimates for CY 2010 up marginally by 5,000 metric tons to 380,000 metric tons, reflecting good fluid milk production on account of a favorable 2010 monsoon. Post forecasts 2012 production of combined butter and ghee (clarified butter) to increase by 4 percent over 2011 to 4.50 million metric tons, following Indias rising production trend. Post has revised the 2011 production estimates of butter down 5000 metric tons to 4.32 million metric tons in response to the 6000 metric ton carry over from 2010. CY 2010 production of butter has been revised marginally upwards by 7,000 metric tons to 4.16 million metric tons reflecting good milk production on account of a favorable 2010 monsoon.

PRODUCTION POLICY Indian dairy policy is currently focused on increasing milk output. The NDDB has created a National Dairy Plan, (NDP) with the overall objective of meeting Indias growing demand for dairy products and putting India on the path to sustainability in milk production. Although the NDP is not yet finalized, it is envisaged to span over a 15-year period with an estimated outlay of more than 3 billion U.S. dollars in various phases.

The plan aims to increase milk production to 180 million tons by 2020, bringing about a second White Revolution in India. (The White Revolution was the program which oversaw the creation of Indias milk marketing system and helped India to become one of the worlds largest dairy producers). The plan further envisages this transformation to occur through activities including improved artificial insemination (AI) and breeding services, improved cattle feed manufacturing, and expanding/strengthening milk processing infrastructure. The plan also proposes to enhance the share of milk from organized sector in total marketable surplus. The Government of India (GOI) is exploring World Bank assistance to bring down the cost to the government. In addition to the National Dairy Plan, the Department of Animal Husbandry, Dairying and Fisheries (DAHD), Ministry of Agriculture, implemented four schemes in the dairy sector during 11th plan period (2007-2012). REGULATION OF MILK AND MILK PRODUCTS IN INDIA The new Food Safety and Standards Authority of India (FSSAI) is charged with regulating food safety in India. Under the mandate of the Food Safety and Standards act of 2006, the FSSAI has consolidated various food laws, including the Milk and Milk Products Regulation (MMPR) 2009, into one umbrella regulation known as the Food Safety and Standards Regulation, 2011. The Food Safety and Standards Rules and Regulation 2011 was enforced nationwide on August5, 2011. Among various food products, the regulation also regulates the production, distribution, and supply of milk products; establishes sanitary requirements for dairies, machinery, and premises; and sets quality control standards for milk and milk products. Although minimal changes are expected to Indias existing food safety laws, the Food Safety and Standards Regulation proposed a new definition for cheeses which would prohibit the use of animal-derived rennet. These regulations apply equally to domestic and imported food. authority shall be an officer of the concerned state government or union territory. Dairy units handling more than 200 TLPD of milk or 10,000 metric tons of milk solids per annum shall be registered by the Central Registering Authority. Under the new food safety law, food business operators are expected to assume their responsibility for safety in production, import, distribution, and sale of food.

CONSUMPTION: According to NDDB, total dairy production is estimated to be growing at 4 percent annually while demand for milk is growing at approximately twice the growth rate of production. The major factors driving growth in milk consumption are increased demand due to population growth, growing household incomes, increased demand for value-added milk products, and the preference for fluid milk as a principal protein source across all age groups in India. Given Indias strong demand for dairy products, India consumes nearly all the dairy and dairy products it can produce. Indian consumption of nonfat dry milk is forecast to surpass Indian production in 2012, reflecting the small but growing deficit in dairy production and the need for increased supplies.2012 fluid milk consumption is set to match 2012 fluid milk production. Butter consumption exceeded domestic production in 2010 and is forecast to do so again in 2011 and 2012. PROCESSING The Indian processed dairy sector is expanding. Industry estimates suggest around 15-percent growth in the processed dairy segment in next five years. Sources indicate that growth in the processed dairy sector is being driven by an expanding middle class which is demanding a greater diversity of choices. Growth is further being enabled by the expansion of modern retail facilities, especially in tier 1 cities .Products such as yogurts, ice creams, dairy drinks, and western-style cheeses, as well as dairy products with enhanced nutritional properties are growing in popularity. Given this scenario, the processed dairy sector is likely poised for growth, although this will rely greatly on the stability of dairy supply as well as the expansion of necessary infrastructure and the cold chain system.

Trade Policy:
India allows imports of milk and milk products without any quantitative limitations, although tariff rate quotas apply and import permit is required. NFDM imported above the tariff rate quota attracts a basic duty of 60 percent while above quota imports of butter oil are charged a basic duty of 40 percent. Historically, India has only imported limited quantities of milk powder and butter because domestic production has been able to meet general requirements. As incomes and population grow, (and consequently consumption), India may require additional supplies and imports of butter and NFDM, absent significant domestic production growth.

India consistently exports milk powders, (particularly casein), although these exports constitute a small percentage of Indias total production.

TRADE: EXPORT: Post has revised CY 2011 estimates for export of NFDM to zero based on India s prohibition of milk powder exports. Specifically, on February 18, 2011, the GOI prohibited the export of milk powders (including skimmed milk powder, whole milk powder, dairy whitener and dairy-based infant formula, casein and casein products) in order to help control rising Indian dairy prices, which have risen by about 20 percent in the retail market and by 12 per cent at the wholesale level over the last year. The move to ban exports came ahead of the summer season, which generally witnesses a dip in milk production. According to industry sources, it is believed that milk prices will continue to rise over the short to medium term due to sustained demand and increasing production costs resulting in a possible extension of the export ban for a second year in 2012. Post therefore forecasts nil exports of NFDM in CY 2011 and 2012. Exports of NFDM for CY 2010 have been revised upwards to 18,000 metric tons, reflecting strong export demand, coupled with good production. Prior to banning milk powder exports in 2011, India exported various categories of dairy products including milk powders, baby foods, butter and other fats, casein, milk and cream, cheese, and whey products. Milk powder exports constituted more than 40 percent of the total dairy exports in volume terms during CY 2010, followed by casein and its derivatives (21 percent), butter and other fats (19percent), and other processed dairy products. India exported around 50 percent of its total dairy product shipments to Bangladesh, Nepal, the United States, U.A.E, and Singapore during CY 2010.

IMPORTS:
Due to strong domestic demand and concern over seasonal shortages, the GOI has allowed NDDB duty-free imports of NFDM up to 50,000 tons and 15,000 tons of butter and butter oil at zero duty during 2011-12 (April-March). While only 30,000 metric tons of NFDM was allowed duty-free in 2010, the quota was expanded in spring 2011 to 50,000 metric tons. Thus, post has revised CY 2011 NFDM imports to 45,000 metric tons.

As that there is no indication at this point that NFDM duties will again be expanded to 50,000 metric tons in 2012, post forecasts 2012 NFDM imports at 30,000 metric tons. CY 2010 NFDM imports have been revised down by 5,000 metric tons to 20,000 metric tons, based on revised GOI export statistics. India typically imports butter oil. Production, supply and demand estimates (PSD) are shown in butter, adjusted to its butter oil equivalent. CY 2012 butter imports are forecast at 20,000 metric tons assuming that the tariff rate quota (TRQ) will remain at zero duty for 15,000 metric tons.CY 2011 butter imports are revised upwards to 20,000 metric tons against a previous estimate of 5,000 metric tons, as the government rolled over last years (April 2010-March 2011) zero duty TRQ of 15,000 metric tons of butter, butter oil and anhydrous milk fat to the current year (April 2011-March 2012). CY 2010 imports increased to 25,000 metric tons following the governments liberalization of duty free imports of butter oil in March 2010. Duty free imports in 2010 were allowed due to concerns about a deficient monsoon and expected significant production drops which never materialized in 2010.

3. COMPANY PROFILE
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money Amul (Anand Milk-producers Union Limited), formed in 1946, is a dairy cooperative movement in India. The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand. It is a brand name managed by an apex cooperative organization, Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat, India It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. AMUL PATTERN It has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. Situation of farmers Over five decades ago, the life of an average farmer in Kheda District was very much like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand often milk went sour, especially in the summer season, as producers had to physically carry milk in individual containers. Private traders and middlemen controlled the marketing and distribution system for the milk. These middlemen decided the prices and the off-take from the farmers by the season. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. In this situation, the private trader made a killing. Moreover, the government at that time had given monopoly rights to Polson Dairy (around that time Polson was the most well known butter brand in the country) to collect milk from Anand and supply to Bombay city in turn (about 400 kilometers away). India ranked nowhere amongst milk producing countries in the world in 1946.

Gradually, the realization dawned on the farmers with inspiration from then nationalist leaders Sardar VallabhbhaiPatel (who later became the first Home Minister of free India) and Morarji Desai (who later become the Prime Minister of India) and local farmer, freedom fighter and social worker Tribhovandas Patel, that the exploitation by the trader could be checked only if they marketed their milk themselves. Amul was the result of the realization that they could pool up their milk and work as a cooperative. THREE-TIER AMUL MODEL: The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level. The above three-tier structure was set-up in order to delegate the various functions, milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. This helps in eliminating not only internal competition but also ensuring that economies of scale is achieved. As the above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programmed, it is known as the Amul Model or Anand Pattern of Dairy Cooperatives. Responsible for Marketing of Milk & Milk Products Responsible for Procurement & Processing of Milk Responsible for Collection of Milk Responsible for Milk Production 1 VILLAGE DAIRY COOPERATIVE SOCIETY (VDCS): The milk producers of a village, having surplus milk after own consumption, come together and form a Village Dairy Cooperative Society (VDCS). The Village Dairy Cooperative is the primary society under the three-tier structure. It has membership of milk producers of the village and is governed by an elected Management Committee consisting of 9 to 12 elected representatives of the milk producers based on the principle of one member, one vote. The village society further appoints a Secretary (a paid employee and member secretary of the Management Committee) for management of the day-to-day functions. It also employs various people for assisting the Secretary in accomplishing his / her daily duties. The main functions of the VDCS are as follows:

Collection of surplus milk from the milk producers of the village & payment based on quality & quantity Providing support services to the members like Veterinary First Aid, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting training on Animal Husbandry & Dairying, etc. Selling liquid milk for local consumers of the village Supplying milk to the District Milk Union Thus, the VDCS in an independent entity managed locally by the milk producers and assisted by the District Milk Union. 2 DISTRICT COOPERATIVE MILK PRODUCERS UNION (MILK UNION) The Village Societies of a District (ranging from 75 to 1653 per Milk Union in Gujarat) having surplus milk after local sales come together and form a District Milk Union. The Milk Union is the second tier under the three-tier structure. It has membership of Village Dairy Societies of the District and is governed by a Board of Directors consisting of 9 to 18 elected representatives of the Village Societies. The Milk Union further appoints a professional Managing Director (paid employee and member secretary of the Board) for management of the day-to-day functions. It also employs various people for assisting the Managing Director in accomplishing his / her daily duties. The main functions of the Milk Union are as follows: Procurement of milk from the Village Dairy Societies of the District Arranging transportation of raw milk from the VDCS to the Milk Union. Providing input services to the producers like Veterinary Care, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc. Conducting training on Cooperative Development, Animal Husbandry & Dairying for milk producers and conducting specialized skill development & Leadership Development training for VDCS staff & Management Committee members. Providing management support to the VDCS along with regular supervision of its activities.

3 STATE COOPERATIVE MILK FEDERATION The Milk Unions of a State are federated into a State Cooperative Milk Federation. The Federation is the apex tier under the three-tier structure. It has membership of all the cooperative Milk Unions of the State and is governed by a Board of Directors consisting of one elected representative of each Milk Union. The State Federation further appoints a Managing Director (paid employee and member secretary of the Board) for management of the day-to-day functions. It also employs various people for assisting the Managing Director in accomplishing his daily duties. The main functions of the Federation are as follows: Marketing of milk & milk products processed / manufactured by Milk Unions. Establish distribution network for marketing of milk & milk products. Arranging transportation of milk & milk products from the Milk Unions to the market. Creating & maintaining a brand for marketing of milk & milk products (brand building). Providing support services to the Milk Unions & members like Technical Inputs, management support & advisory services. Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.

PRODUCTS IN AMUL
Bread Spreads, Milk Drinks, Powder Milk, Fresh Milk, Cheese , For Cooking ,Desserts ,Health Drink Emerging Dairy Markets

Food service institutional market: It is growing at double the rate of consumer market Defense market: An important growing market for quality products at reasonable prices Ingredients market: A boom is forecast in the market of dairy products used as raw material in pharmaceutical and allied industries Parlour market: The increasing away-from-home consumption trend opens new vistas for ready-to-serve dairy products which would ride piggyback on the fast food revolution sweeping the urban India.

India, with her sizable dairy industry growing rapidly and on the path of modernization, would have a place in the sun of prosperity for many decades to come. The one index to the statement is the fact that the projected total milk output over the next 15 years The competitors Amul products are different the competitor for milk powder is Nestle and were as for the fresh milk the local brands and for the ice creams they are many competitors . The competitors varies from product to product in the Amul product line . OBJECTIVES AND BUSINESS PHILOSOPHY OF GCMMF The main stakeholder of GCMMF was the farmer member for whose welfare, the GCMMF executives felt, it existed. Unlike other organizations, our objective is not to maximize our profit. After all, the farmers themselves are the owners of the Federation. We are restricted, by our byelaws, to giving a maximum of 12 percent on the paid share capital as the dividend. So we are more interested in giving the best price for the farmers for their milk than in making a large profit. Thus we look at the price given to our suppliers as not a cost but as an objective. GCMMF had, as its main objective, carrying out activities for the economic development of agriculturists by efficiently organizing marketing of milk and dairy produce, veterinary medicines, vaccines and other animal health products, agricultural produce in raw and/or processed form and other allied produce6. This was to be done through: Common branding Centralized marketing Centralized quality control Centralized purchases and Pooling of milk efficiently. GCMMF had declared, as its business philosophy, the following: To serve the interests of milk producers To provide quality products that offer the best value to consumers for money spent.

The biggest strength of GCMMF was the trust it had created in the minds of its consumers regarding the quality of its products. GCMMF, and its brand Amul, explained Mr. Vyas, stood for guaranteed purity of whatever products it had produced. Adulteration was simply not done in any of its products. In India, where such trust was hard to come by, this could provide a central anchor for GCMMFs future business plans, said Mr. Vyas. Growth and Financials of GCMMF In the recent years, GCMMF had been registering an annual growth of nearly 20 percent. Exhibit 6 shows the growth rate from 1984-85 till 1998-99. The salient financial data of GCMMF over the years 1993-94 till 1998-99. The sales of the milk and milk related products depended on the procurement of milk that could be done. The growth in milk procurement by GCMMF from 1983-84 till 1998-99. The rate of growth in milk procurement was in the region of five percent per year. The total milk production in India was in the region of 86 million tonnes per year for the growth in the total milk production in India). It was believed that less than half (about 46 percent of this was procured by organized agencies, the rest being retained by farmers for their own consumption at home or retailed by themselves or small contractors). GCMMF in the Year 2000 The new Millennium presented GCMMF with new opportunities as well as uncertainties. The milk market appeared to be getting saturated from the supply side. The rate of growth of milk production was around 6 percent per annum. The demand, however, could be expected to grow at 8 to 10 percent per annum, according to industry experts. The per capita milk consumption in India still being around 225 grams per day, as compared to more than 600 grams in many other countries, there was scope for increasing the consumption of milk still further. But the problems on the supply side were formidable. The yield of Indian cattle, at about 1000 kg per lactation per animal, still was much lower than in other dairy countries such as New Zealand and Holland (about two tons), and an increase was possible, but presented a challenge. But at least in the medium run, the supply side would pose constraints in the development of the milk market. Said

Opportunities abounded in the market, both domestic as well export. GCMMF had been making major efforts to make its brand known in many countries, including U.S.A., where it had entered into an alliance with Kanan Dairy Products, Illinois to market its products. It had established offices and agencies in New Zealand, Gulf, Sri Lanka and Australia. It had entered into Ecommerce in a fairly big way, with all its products available for ordering through the net in India as well as abroad. Through its TV programmers in the Star TV, it hoped to increase the brand awareness in the SAARC countries.

4 AMUL MARKETING AND DISTRIBUTION STRATEGIES

Pricing Strategies At the time Amul was formed, consumers had limited purchasing power, and modest consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money. Despite competition in the high value dairy product segments from firms such as Hindustan Lever, Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing butter at a basic, affordable price to appeal the common masses. This helped AMUL BUTTER to create its brand image in the household sector of the society. Rs.87 Rs.18 PLACE: A Global Distributor GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 9 years. Currently Amul has 2.41 million producer members with milk collection average of 5.08 million liters/day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets. Other potential markets being considered include Sri Lanka.

PROMOTION: Initial Promotional Strategy The butter, which had been launched in 1945, had a staid, boring image, primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine, corporate ads. They didnt help in creating a brand image of AMUL butter which was their then motive.

The image they presented was, well, boring. A brand - Amul A Taste of India However, in 1966, a man named Sylvester lacuna, from the ad agency of ASP, took over the Amul account. And in 1967 it began, innocently enough. In India, food was something one couldn't afford to fool around with. It had been taken too seriously, for too long. Sylvester lacuna decided it was time for a change of image. Scott Bradbury, the marketing genius behind Nike and Starbucks, once said A great brand is a story that is never completely told. A brand is a metaphorical story thats evolving all the time. Stories create the emotional context people need to locate themselves in the larger experience He could easily have been talking about the Amul moppet. The moppet who put Amul on India's breakfast table The year Sylvester daCunha took over the account, the country saw the birth of a campaign whose charm has endured fickle public opinion, gimmickry and all else. The Amul moppet, the little girl who created a home in the hearts and minds of millions and millions of Indians. No easy task. And to be there for almost 34 years! Call her the Friday to Friday star because Every Friday, since 1967, this little girl appears at billboards, strategically placed all over India, focusing on the item of the week tongue in cheek, of course. Round eyed, chubby cheeked, winking at you, from strategically placed hoardings at many traffic lights. She is the Amul moppet everyone loves to love (including prickly votaries of the Shiv Sena and BJP). How often have we stopped, looked, chuckled at the Amul hoarding and product wrappers with the equally recognizable tagline Utterly Butterly Delicious Amul that casts her sometime as the coy, shy Madhuri, a bold sensuous Urmila or simply as herself, dressed in her little polka dotted dress and a red and white bow, holding out her favorite packet of butter. There are no boundaries and nothing is off limits. From the political scene, to entertainment, from local news to international, from sports to stars, she has a line for everything. Often said to be playing the role of a social observer with evocative humor, the billboards became, and still are, a topic of conversation amongst millions. With their hing-lish (a combination of Hindi and English) punch-lines, they have won the maximum number of awards in India for any ad campaign ever! This little Thumbelina, seems to have the masses, right where she wants them wanting more of her and of Amul. No other brand comes close to what Amul has been able to accomplish.

THE MAIN MARKETING MODEL FOR AMUL

The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level.

The Amul model has helped India to emerge as the largest milk producer in the world. More than 15 million milk producers pour their milk in 1,44,246 dairy cooperative societies across the country. Their milk is processed in 177 District Co-operative Unions and marketed by 22 State Marketing Federations, ensuring a better life for millions.

ADVERTISING Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. This formed a large chunk of the collective memory of us Indians. We grew with them as the ads grew with us. They are quirky, poke fun at no one in particular and are pure eye-candy! It almost admire the speed with which the ad-people come up with copy and illustration for the ads that change every few days!! From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads continue to tease a laughter out of them. The Amul ads are one of the longest running ads based on a theme, now vying for the Guinness records for being the longest running ad campaign ever. Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. That we laugh because the humour is what anybody would enjoy. They don't pander to your nationality or certain sentiments. It is pure and simple, everyday fun. BRANDING The first products with the Amul brand name were launched in 1955. Since then, they have been in use in millions of homes in all parts of India, and beyond. There is something more, though, that makes the Amul brand special and that something is the reason for the commitment to quality and value for money. Amul is the brand name of 2 million farmers, members of 10,000 village dairy cooperative societies throughout Gujarat. This is the heart of Amul, it is what gives strength to Amul, and it is what is so special about the Amul saga. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has made India one of the largest milk producers in the world. Amul, therefore, is a brand with a difference. That difference manifests itself in a larger than life purpose. The purpose freedom to farmers by giving total control over procurement, production and marketing. Our commitment to the producer and our contract with the consumer is the reasons we are confident that cooperative brands, like Amul, will have an even bigger role to play in the next fifty years.

MARKETING STRATEGIES
DIVISION OF MARKETING DEPT HEAD OFFICE ZONAL OFFICE DEPOT OFFICE CARRYING & FORWARDING AGENTS (C & F) WHOLESALE DEALERS RETAILERS CONSUMERS MARKET RESEARCH Market research is a method of getting facts to be used by the executives in formulating policies and plans. It enables a manufacturer or producer to know what the customers want, at what time and what quantity. It is an organized attempt to reduce market risk. He principle task of marketing research is to widen the basis of facts upon which business plans can be laid. Marketing research shows changes from time to time , if any. AMUL conducts basically two types of market research. One is for products and another for the advertising conducted by the company. These research results serve as an input in future decision making. The company basically collects feedback from the customers, about the effectiveness of its advertising campaign and liking of the product especially in case of new products launched. It tries to find out by conducting a survey in a target market whether or not the product is liked by the consumers and ask for their suggestions for improvement. However AMUL is not much into conducting research before the launch of the product. Most of its research is done only once when the product is already launched in the market. It doesnt have any separate department for this purpose but its sales agents themselves do the work of research for the company. Yet the results are almost comparable to those conducted by professionals.

NEW PRODUCT DEVELOPMENT New product development means development of original product or product improvement or modification or new brands through Research & Development efforts .New product development has become more difficult with the passage of time, due to shortage of new ideas, keen competition, government and environmental constraints .It is an expensive affair which involves lot of crucial decision making. A number of decisions are taken by AMUL with regards to launch plans and strategies for the new product, which are as under: Deciding the target customers Designing the promotional campaign Deciding the price Market analysis GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD Deciding the sales force to be employed Deciding the marketing mix Deciding whether to launch the product across the country or in the selected area Appointing distributors Conducting market research

PRODUCT LIFE CYCLE STAGES A product passes through distinct stages during its life in market, each posing different challenges, opportunities and problems .Profits rise and fall at different stages of the product life cycle. There are four different stages of product life cycle, namely 1. INTRODUCTION STAGE 2. GROWTH STAGE 3. MATURITY STAGE 4. DECLINE STAGE Different products of AMUL are in different stages in the product life cycle. Products like milk, butter, chocolate and cheese are in the maturity stage, while ice-creams, chocolates and shrikhand are still in the growth stage. On the other hand, products like milk powders, infant food, frozen food items and mix are in introduction stage. The company adopts aggressive selling techniques for those products which are in the introductory stage, while very less promotional programmers are carried out for those products which are in the growth or maturity stage. PRODUCT MIX A product mix consists of all the product lines and items that a particular seller offers for sale. A companys product mix has four important dimensions : width, length ,depth and consistency. Product mix width refers to how many different product lines the company carries. AMUL has 4 different product lines namely milk and milk products, chocolate and ice-cream, wet products and dry products. Product mix length refers to the total number of items in the mix . In the milk and milk products line there are 14 different products, while in ice-cream and chocolate range there are 21 products and in wet and dry products line there are 20 and 10 different products respectively. Product line depth refers to how many variants are offered of each product in the line . Product line consistency refers to how closely related the various product lines are in the end use, production requirements, distribution channels or some other ways .

Although the products vary in many ways there is still product line consistency in AMUL. All the products of AMUL are marketed through same channels of distribution. MARKET SEGMENTATION Market Segmentation is the act of sub dividing a market into distinct sets of customers who merit attention. Targeting these customers for marketing by evaluating, selecting, and concentrating becomes a corollary to segmentation. Market segmentation assumes importance in the context of intense competition market is bombarded with. A market consists of buyers, and buyers differ in one or more ways. They may differ in their wants, resources, locations, products requirements. These variables have to be considered in the process of segmentation. There are different levels of market segmentation. They are mass marketing, segment marketing, niche marketing and micro marketing. Markets can be segmented on the geographical basis, demographical basis, psychological basis, behavioral basis and loyalty status. AMUL segments its market on the following basis: 1. GEOGRAPHICAL BASIS: This segmentation is done on the basis of the lifestyle of people in different regions and their tastes and consumption patterns which are distinct according to their geographical situation. AMUL has segmented India geographically into 5 zones. 2. DEMOGRAPHICAL BASIS: They have segmented its market on the basis of the socio-economic status of the customers. i.e. on the basis of their purchasing power and income level as follows: GROUPA: Consumers falling in this group are from higher social and economic class. GROUPB: Consumers falling in this group are from middle socio-economic class.

GROUPC: Consumers falling in this group are from the lower middle class. MARKET TARGETING After segmenting the market, company evaluate the various segments and decides how many and which ones to target. Generally the market is targeted in three ways:UNDIFFERENTIATED MARKETING DIFFERENTIATED MARKETING CONCENTRATED MARKETING AMUL uses undifferentiated marketing strategy for targeting its customers as far as its milk and milk product line is concerned. While the company implements differentiated marketing strategy for targeting its customers for the other product lines that are ice creams and chocolates, wet products and dry products. Differentiated marketing means market coverage strategy in which a firm decides to target several market segments and designs separate offers for each. AMUL targets its customers according to the segments like geographic and demographic. PACKAGING Packing includes the activities of designing and producing the container for the product. Packaging has become the potent marketing tool. Well designed packages can create convenience and promotional value. Various factors contribute to packaging growing use as a marketing tool: SELF SERVICE CONSUMER AFFLUENCE COMPANY AND BRAND IMAGE INNOVATION OPPORTUNITY

Packaging of the products of AMUL varies according to the nature of the product. As most of the products are perishable in nature special care is taken in packing them. MILK AND MILK PRODUCTS are packed in plastic bags or containers, while ICE-CREAMS AND CHOCLATES are packed in cardboard packing. The company maintains the standards prescribed by BIS, with regards to packing. These products are then packed in cartoons, for greater safety measures and for transporting them to the market. LABELING Labeling printed information that appears on or with the package, is also a part of packaging. Labels may range from simples tags attached to products to complex graphics that are part of the package. Label identifies describes and promotes the product through attractive graphics. The label might carry only the brand name or great deal of information or pictures. Even if the seller prefers a simple label the law may require additional information. The labels of the products of AMUL are attractively designed. It contains all the information as per statutory requirements. Information like name of product, brand name, logo, date of packing & manufacturing, expiry date, price, code number, ingredients, storage and usage instructions, weight, manufacturers and marketers name, logo showing PURE VEG etc appears on the label of the products. BRANDING A brand is a name, term, sign, symbol or design or a combination of these used to identify a product or company. A trademark is a legally recognized brand. Branding has become so strong that today hardly anything goes unbranded. Today customers view a brand as an important part of the product and branding adds value to a product. Brand names help customers identify products that might benefit them and also tells the buyer something about the product quality. To the sellers brand name and trademark provides legal protection for unique product features that otherwise might be copied by the competitors and it also helps them to segment markets. A brand name is selected keeping in view the product and its benefits, the target market and proposed marketing strategies. Decisions about branding are taken at the Head Office at Anand. AMUL means priceless in Sanskrit. The brand name AMUL from the Sanskrit Amoolya was suggested by a quality control expert in Anand. Variants, all meaning priceless, are found

in several languages of India. AMUL manufactures and markets its products under two brand names AMUL and SAGAR Information Technology (IT) has played a significant role in developing the Amul brand. The installation of 3000 Automatic Milk Collection System Units (AMCUS) at Village Societies to capture member information, milk fat content, the volume collected and amount payable to each member has proved invaluable in ensuring fairness and transparency throughout the whole Amul organization. BRAND EQUITY Brand equity refers to the value of a brand, based on the extent to which it has brand loyalty, brand name awareness, perceived quality, strong brand associations, and the other assets such as patents, trademarks and channel relationship. It is evaluated on the basis of brand assets which are: 1. BRAND AWARENESS: Awareness ultimately enhances brand equity. AMUL enjoys very high brand awareness among its customers. According to the survey done by the company, brand awareness is as high as almost 90%. 2. BRAND LOYALTY: Brand loyalty means the ability to retain the existing customers. AMUL is blessed with high brand loyalty among its customers. As it is one of the biggest market players it has proportionately larger group of loyal customer, who are in turn a medium of marketing/ advertising. 3. BRAND ASSOCIATIONS: Consumers associate the brand with certain tangible and intangible attributes. Most of these associations are derived from brand identity and brand image. Customers associate AMULs brand with high quality standards and reasonable price. 4. BRAND IMAGE: Brand image is the meaning consumers give to a product based on the perceived values it delivers. AMUL has created brand image by offering excellent quality products at reasonable price. Perfect distribution channel; continuous & effective advertising; use of different promotional tools; wide loyal market share, has contributed to create an excellent image in its trade operations.

MANAGING THE SUPPLY CHAIN Even though the cooperative was formed to bring together farmers, it was recognized that professional managers and technocrats would be required to manage the network effectively and make it commercially viable. Coordination Given the large number of organizations and entities in the supply chain and decentralized responsibility for various activities, effective coordination is critical for efficiency and cost control. GCMMF and the unions play a major role in this process and jointly achieve the desired degree of control. Buy-in from the unions is assured as the plans are approved by GCMMF's board. The board is drawn from the heads of all the unions, and the boards of the unions comprise of farmers elected through village societies, thereby creating a situation of interlocking control. The federation handles the distribution of end products and coordination with retailers and the dealers. The unions coordinate the supply side activities. These include monitoring milk collection contractors, the supply of animal feed and other supplies, provision of veterinary services, and educational activities. Managing third party service providers From the beginning, it was recognized that the unions' core activity lay in milk processing and the production of dairy products. Accordingly, marketing efforts (including brand development) were assumed by GCMMF. All other activities were entrusted to third parties. These include logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores, provision of animal feed, and veterinary services. It is worth noting that a number of

these third parties are not in the organized sector, and many are not professionally managed with little regard for quality and service. This is a particularly critical issue in the logistics and transport of a perishable commodity where there are already weaknesses in the basic infrastructure. Establishing best practices A key source of competitive advantage has been the enterprise's ability to continuously implement best practices across all elements of the network: the federation, the unions, the village societies and the distribution channel. In developing these practices, the federation and the unions have adapted successful models from around the world. It could be the implementation of small group activities or quality circles at the federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level. More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high. PRICING The amount of money charged for a product or service or the sum of the values that consumers exchange for the benefit of having or using the product or service is called its price. A companys pricing decisions are affected by both internal factors like companys objectives, marketing mix strategy, cost and organizational considerations and external factors like nature of the market and demand, competition and other environmental elements. While deciding the price of its products takes into consideration all the below mentioned factors, this is true for all the products. Cost of raw materials Cost of labour Profit margin of distributors Various administrative and manufacturing overheads Prices of the competitors

 Demand and supply position in market Fair return to the farmers The company with largest market share will enjoy lowest cost and highest long run profit to become the market leader. They set prices as low as possible. DISTRIBUTION CHANNEL A distribution channel is a set of interdependent organizations involved in the process of making a product or service available for the use of consumption by the consumer or business user. In other words, the channel decision is one which takes the product to the customer. The channel selected affects every other marketing decision and has a bearing on the future. Marketing channel decision is among the most decision that management faces. Before selecting a particular channel, every firm takes some factors into consideration and then only decides a particular channel. Decisions taken by Companies are as under: 1. ANALYSING CONSUMERS NEEDS 2. SELECTING CHANNEL OBJECTIVES 3. TYPES OF INTERMEDIARIES 4. NUMBER OF INTERMEDIARIES 5. EVALUATING ALTERNATIVES Distribution channel can be described by the number of channels levels involved. Channel level is the level of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. The following are the different types of distribution channel that a firm may use: (i) ZERO-LEVEL CHANNEL: Manufacturer--------------- Consumer (ii) ONE-LEVEL CHANNEL: Manufacturer--- Retailer--- Consumer (iii) TWO-LEVEL CHANNEL: Manufacturer-- Wholesaler-- Retailer-- Consumer (iv) THREE-LEVEL CHANNEL: Manufacturer- Wholesaler- Agents- Retailer- Consumer

Companies has three-level distribution channel, i.e. it employs carry forward agents, wholesaler and retailers to carry its products to the final consumers. Till today, the major development on the distribution front is the development and alignment of four distribution highways - those of Fresh Products, Chilled Products, Frozen Products and Ambient Products. This is a significant achievement because it allows companies are developing all their product lines and to leverage these highways to introduce and distribute new products as per market demand. No other organization in India has been able to develop this kind of channel synergy so far. Another major initiative undertaken is the Time-based Military Technique (TMT) of distribution. This has been deployed to effect a nationally synchronized mass distribution of their products with the objective of achieving total channel penetration on a single day. DECISION ABOUT THE CHANNEL MEMBER Decisions about selecting a channel member are taken by the head office. Wholesalers are appointed by conducting the market survey , finding out the number of distributors available manpower and financial capabilities of each of them, market likelihood, infrastructural facilities etc. all this information is filled in a form which is sent to the head office where it moves from Marketing Manager to the General Manager who finally selects the one that suits the best to the company. Distributors have to give a bank guarantee or demand draft in against of the value of goods they want to purchase and have to make a payment for the same within four days of the dispatch of the order. The seller then forwards the goods to the retailers for which prices and norms of delivery are fixed by the head office. Both the retailers and wholesalers are required to maintain certain basic infrastructural facilities. The head office and all the depot offices have their own authorized transporters who carry the order from the production place to place of order.

SALES FORCE MANAGEMENT

The organization of sales department is as under: ZONAL INCHARGE DEPOT INCHARGE EXECUTIVES F.S.R. (Field Sales Representative) PSM (Pilot Sales man) The companies conducts intensive training programme for its employees. The company sends any of its employees for training who will later train the other employees. Its not necessary that the person sent for training must be someone from the top or middle management, he can be any employee. The company treats all its employees equally. Various training programmes like TQM, Self management Programmers, etc conducted so far. The turnover and absenteeism ratio is almost negligible which is the proof of the well functioning of the Human Resource Management. All the agents and sales

INTERNATIONAL DISTRIBUTION STRATEGIES The company has appointed special carry forward agents for distributing its products in the international market .It has rented cold storages in various countries to store its products from where they are distributed as per orders. Although the distribution network for international market is not so well knitted as in case of domestic market, it has been successful in maintaining a satisfactory network that ensures smooth functioning.

INTERNATIONAL PRICING STRATEGIES While deciding the prices for international market the company takes into consideration the prices of the competitors , production cost , distribution cost for international market , taxes and duties to be paid ,etc. However the company tries not to have much difference in prices in National and the International markets.

PRODUCT VARIATIONS There are no variations in the basic products that the company offers in National and International markets, except for the fact that the company has to maintain the quality standards as per the regulations of the respective countries. Not all the products manufactured are yet available in International market because of the difference in preferences and consumption pattern of the people in various countries.

PRODUCT VARIATIONS There are no variations in the basic products that the company offers in National and International markets, except for the fact that the company has to maintain the quality standards as per the regulations of the respective countries. Not all the products manufactured are yet available in International market because of the difference in preferences and consumption pattern of the people in various countries.

EXPORT POTENTIAL India has the potential to become one of the leading players in milk and milk product exports. Location advantage: India is located amidst major milk deficit countries in Asia and Africa. Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close to India. Low Cost of Production: Milk production is scale insensitive and labor intensive. Due to low labor cost, cost of production of milk is significantly lower in India.

CONCERNS IN EXPORT COMPETITIVENESS ARE : Quality: Significant investment has to be made in milk procurement, equipments, chilling and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to international standards. Productivity: To have an exportable surplus in the long-term and also to maintain cost competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast market for the export of traditional milk products such as ghee, paneer, shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered all over the world

5 Analysis and Findings

Delivery of the Product after ordering
The delivery time which was taken by the company to reach the retailer outlet is generally In week span the distributer supply the product to the retail outlet

Interpretation There are 80 % of the respondents say that the delivery of the product is done in 2-7 days and 10% of the respondents say that 6-12hour the distribution of the product is mainly based on the packs available in the ware house and also the order quantity by the retailer the distribution is done based on this if the ordered pharmacies is far away from the ware house it may take more time.

Selling Amul Products

Amul generally prefer some outlets to sell their product in some specific stores so the retailer generally prefer the Amul brand because of the margin they get by selling this product gives more margin compared to other product

Interpretation The major findings for this is the 60% of the people say the demand is more for the product which they are selling and 10% for margin and promotional schemes because compared with other products the margin for Amul is different for different pharmacies because of the different distribution system so the margin earned by the pharmacies is different compared with competitors products.

Damage Policy The company generally give the damage policy only when the product was in their under so the company will replace the product when its their fault once the product leaves the company premises its under the distributor risks so they will take care of the product

Interpretation The damage policy which was given by the company based on the survey we can say the company can gives the damage policy to the retailers when the good is under their supervision so most of the respondents say they are highly satisfied. And some say dissatisfied because the policy may differ from retailer to retailer because the company gives the gives the order based on the order they so the policy may differ from retailer to retailer.

Stock
The company supply the stocks to the distributer based on his credit policy which he is maintaining with the company so they will supply according to the capacity of handling the goods in their ware house. The distributor will supply the product according to retailer outlet capacity of storage

Interpretation Generally every shop keeps some safety stock .The stock kept buy the retailers is based on the area were the retailer outlet is present and generally every retailer outlet keeps a stock of 30 packets .

Prefer size to store

The company will give supply of product based on the distributer storage capacity and his legal permission which will be given by government for him to store generally the company will supply stock which is moving high in the market to retailer and distributors and based on the order also they will supply because the demand for the same product will not be same in all the regions.

8 30 200g 500g sample packs l lit

60

Interpretation 30% of the respondents say they keep a stock of 200g packets and 60 % of them say they keep 500g of pack this all based on the were the retailer outlet is located and also the purchasing power of the people in and around the shop generally the retail outlets do not keep the sample packets and they dont keep 1lit packs in high quantity.

Quality of the product

The company itself standard for the name quality which is maintained since from decades so the company generally does not lose its quality compared to its competitor and it also upgrading its technology and it also comes with new products which are helpful .

Interpretation Based on the survey 90% of the respondents say they are satisfied with the Amul quality products were as 10% responded that they have an average opinion on the Amul because they have good opinion the competitor product.

Branding of the product

The company GCMMF sells the products under the brand name Amul which has tag line Taste of India. The product which are made by real milk so the brand names play an important role in the market and gets a huge market share in the market

Interpretation Based on the survey 90% of the respondents say they have rated good brand name for the Amul because they highly satisfied with the Amul products and 10% of the respondents say average because they may be using the competitor products or they are selling this products

Supply norms for the product

The supply norms which was followed by the company is based on the distributer and also the credit system which was maintained by distributor with company and retailer with the distributer Generally the company supply the products based on some credit to the distributor.

Interpretation The supply norms which was given by the distributor was fine said by 90% of the respondents Because the distributer for the Amul product may be given nice credit compared with competitor 10 % of the respondents say that they are average with the supply norms this because they competitor for giving more period of credit to their product .

Distribution channel
The distribution channel which was followed by the company is zero level to three level channel so the distribution was the main profit to the company which was supplied the products in time to the customers as well as the retailers and the distributors with in time. The company follows just in time.

Interpretation The retailer are very much satisfied with the distributer because they are following the best distribution system which they are able to supply the products to the retailers in time whenever they are in need so 99% of the respondents say yes they are satisfied with distribution on 1% of the respondents say no because they may not get the products in time because the outlets may not be in the city premises so they couldnt distribute in time .

Questionnaire Name of the Pharmacies ;

1. Are you selling AMUL Product? a. Yes b. No 2. Reason for Selling AMUL Product? a. Margin b. Promotional Schemes c. Demand e. Credit Policy f. Other Reasons

d. Dealer relationship

3. Reason for not selling AMUL Product? a. Credit Policy b. Promotional Material Not Supplied on Time c. Schemes are not conveyed on time d. Supply of product is not proper e. Dont Wish To Specify 4. How much time does it take for delivery of AMUL Product after ordering? a . 6-12 Hours b. 1 to 2 Days c. 2 to 7 Days d. More than7 Days 5. How do you rate the schemes of the company? a. Good b. Average c. Poor 6. How do you rate the Margin of the company? a. Good b. Average c. Poor 7. How do you rate the Quality of AMUL Product? a. Good b. Average c. Poor 8. How do you rate the Brand Pull of the company? a. Good b. Average c. Poor 9. How do you rate the Supply norms of the company? a. Good b. Average c. Poor 10. Do the company executives convey schemes on time? A . Yes B. No

11. How do you rate the Representative behavior with retailers? a. Highly Satisfied b. Satisfied c. Dissatisfied d. Highly Dissatisfied 12. How do you rate the Damage Policy? a. Highly Satisfied b. Satisfied c. Dissatisfied d. Highly Dissatisfied 13. Are you getting information about scheme of AMUL Product at proper time? a. Yes b. No 14. Are you satisfied with the distribution channel of AMUL Product? a. Yes b. No 15. How much stock do you keep? 1. 10 packets 2. 20 packets 3. 30 packets 4. More than 50 packets

16. What size of the packets do you prefer to store? 1. 200 g 2. 500 g 3. Sample packs 4. 1 lit 17.Which is the most preferred brand that you stock? 1. Amul 2. Nestle