ACKNOWLEDGEMENT

This is the only page where we have the opportunity of expressing

our emotions and gratitude from the core of our heart.
This report has been prepared to give a brief description of the Marketing Strategies of

AMUL which was taken for the Market Research (core paper) for the fulfillment of
our professional course.
We would like to express our gratitude towards our project guide Mr.PRAMOD RAWAT who
not only gave us directions on how to work on the project but also taught the valuable skills of
getting our work done with the help of others. She was a constant source of inspiration.
We are thankful to the company persons who helped us with valuable datas and the
consumers who became the part of our survey.
Being on the same line, we are thankful to all our friends and well wishers whose moral
support has helped us directly or indirectly in completing this project.

SWATI GUPTA

CONTENTS
Acknowledgment
Executive Summary
Strategic Management
History of Cooperative Movement
Management of change : The Strategic Initiatives
Range of Products
Strategies involved in the launch of Amul Products
Amul Ice Creams
Recommendations
Limitations of the project
Bibliography

EXECUTIVE SUMMARY
The AMUL model is based on strong economic logic for the existence of each tier, meaning
each higher tier must generate sufficient value to the satisfaction of its immediate lower tier.
Interlocking system of control and ownership ensures that this logic is never lost of sight The
owners of AMUL - namely, the farmers have ensured that the organization never loses its
independence and autonomy, and that no internal or external stakeholder can take me system
for a ride. In order to protect and promote the farmers' interests, AMUL has been always
engaged in lobbying activities. Its initiatives in countering the evil effects of WTO, in the
passing of Parallel Cooperatives Act in several states, in bringing out the Co-operative
Company's Act at the center are only some of the recent examples. By setting standards in the
market place in terms of product quality and its price, AMUL has become the natural market
leader in its areas of functioning and won the hearts or all lndians. By its organizational
design and strategies, AMUL has rediscovered the model of a new-generation producer
cooperative in India, which is different from its traditional form in assigning the right kind of
incentives to the shareholders. In terms of forward linkages, however, AMUL approximates a
Japanese Keiretsu, wherein the different stakeholders join hands with each other to maximize
the value of the enterprise.

Because of this approach, AMUL has never shied away from entering into strategic alliances
with other business partners - be they cooperatives or private corporate enterprises. This
approach has imparted considerable competitive strength to AMUL through cost reduction,
and product and process innovations. Its employees and other stakeholders are quite happy to
maintain long term relations with the organization.

By its pricing and quality strategies, AMUL is always striking a balance between the interests
of the consumer with those of Its producers. Because of Its larger appeal, AMUL has truly
symbo.l1zed the real 'Taste of India. Its innovative advertisements have further reinforced its
competitive power and appeal. Professional management. of AMUL, which is always
accountable to the members, has ensured excellent economic and financial management of it
federation, the GCMMF.

Probably the most important component of AMUL' s success is its visionary and dedicated
leadership, which has spent its private resources not only to solve free rider's problem at every
stage of collective action but also to protect the organization from predatory attacks from the
external environment. Naturally, longer term success and reliability of the AMUL model
depends upon whether and to what extent such visionary leadership can be recreated in the
coming years.

STRATEGIC MANAGEMENT
Once there were two company presidents who competed in the same industry. These
two presidents decided to go on a camping trip to discuss a possible merger. They
hiked deep into woods. Suddenly, they came upon a grizzly bear that rose up on its
hind legs and snarled. Instantly, the first president took off his knapsack and got out a
pair of jogging shoes. The second president said, Hey, you cant outrun that bear.
The first president responded, May be I cant outrun that bear, but I can surely outrun
you! this story captures the notion of strategic management.

Defining Strategic Management

It can be defined as the art and science of formulating, implementing and evaluating
cross-functional decisions that enable an organization to achieve its objective.

Stages of Strategic Management

1.

Strategy Formulation- It includes developing a business mission, identifying

an organizations external opportunities and threats, determining internal strength and

weaknesses, establishing long term objectives, generating alternative strategies and
choosing particular strategy to pursue. It also includes deciding what new business to
enter, what businesses to abandon, how to allocate resources, whether to expand
operation or to diversify, whether to enter international markets, whether to merge or
form joint venture, and how to avoid hostile take over.

2.

Strategy Implementation- It requires a firm to establish annual objectives,

devise policies, motivate employees and allocate resources so that the formulated
strategies can be executed. Strategy implementation includes developing a strategysupportive culture, creating an effective organizational structure, redirecting marketing
efforts, preparing budgets, developing and utilizing information systems and linking
employee compensation to organizational performance. It is also called as the action
stage of strategic management. Implementing means mobilizing employees and
managers to put formulated strategies into action. Often considered to be the most
difficult stage of strategic management, strategic implementation requires personal
discipline, commitment, and sacrifice. Successful implementation hinges upon
managers ability to motivating employees. Strategy formulated but not implemented
has no value. Interpersonal skills are especially critical for successful strategy
implementation. The challenge of implementation is to stimulate managers and
employees throughout an organization to work with pride and enthusiasm towards
achieving stated objectives.
3.

Strategy Evaluation- it is the final stage in strategic management. Managers

desperately need to know when particular strategies are not working well; strategy
evaluation is the primary means for obtaining this information. All strategies are
subjected to future modification because external and internal factors are constantly
changing. Three fundamental strategy-evolution activities are
a)

Reviewing external and internal factors that are bases of current strategies.

b)

Measuring performance.

c)

Taking corrective actions.

Strategies evaluation is needed because success today is no guarantee of success

tomorrow! Success always creates new and different problems; complacent
organizations experience demise. Strategy formulation, implementation and evaluation
activities occur at three hierarchical levels in the large organization; corporate,
divisional or strategic business unit and functional. By fostering communication and
interaction among managers and employees across hierarchical levels, strategic
management helps a firm function as a competitive team. Most small businesses and
some large business organization do not have divisions or a strategic business unit;
they have only corporate and functional levels. Nevertheless, managers and employees
at these two levels should be actively involved in strategic management activities.

Integrating Intuition and Analysis

The strategic management process can be described as an objective, logical,
systematic approach for making major decisions in an organization. It attempts to
organize qualitative and quantitative information in a way that allows effective
decisions to be made under conditions of uncertainty. Yet strategic management is not
a pure science that lends to a nice, neat, one-two-three approach.
Based on past experiences, judgment and feelings, intuition is essential to making
good strategic decisions. Intuition is particularly useful in making decision in
situations of great uncertainty or little precedent. It is also helpful when highly
interrelated variables exist, when there is immense pressure to be right, or when it is

necessary to choose from several plausible alternatives. These natures describe the
very nature and heart of strategic management.

Although some organization today may survive and prosper because they have
intuitive geniuses managing them, most are not so fortunate. Most organization can
benefit from strategic management, which is based on integrating intuition and
analysis in decision making. Choosing an intuitive or analytic approach to decision
making is not an either-or proposition. Managers at all levels in an organization should
inject their intuition and judgment into strategic management analysis. Analytical
thinking and intuitive thinking complement each other.

Adopting To Change
The strategic management is based on the belief that organization should continuously
monitor the internal and external trends so that timely changes can be made as needed.
The rate and magnitude of changes that affect the organization are increasing
dramatically.
To survive in the competitive market the organization must be capable of astutely
identifying and adapting to change. The strategic management process is aimed at
allowing organization to effectively adopt the change to survive in the long run.
The need to adopt to change leads organizations to key strategic-management
questions such as: what kind of business should we become? Are we in the right
fields? Should we reshape our business? What new competitors are entering our

industry? What strategy should we pursue? How our customer changing? Are new
technologies being developed that put us out of the business?

Key Terms in Strategic Management

Strategist- they are the individuals who are most responsible for the success or failure
of an organization. They have various job titles, such as chief executive officer,
president, owner, chairman of the board, executive director etc.

Mission Statement- Mission statements are enduring statements of purpose that

distinguish one business from other similar firms. A mission statement identifies the
scope of the firms operation in product and market terms. It addresses the basic
question that is faced by all strategists: what is our business? a clear mission
statement describes the values and priorities of an organization. Developing a business
mission compels strategist to think about the nature and scope of present operations
and to assess the potential attractiveness of future markets and activities.

External Opportunities and Threats- these terms refer to economic, social, cultural,
demographic, environmental, political, legal, governmental, technological and
competitive trends that could significantly benefit or harm the organization in the
future. Opportunities and threats are beyond the control of a single organization, thus
the term external

Internal Strengths and Weakness- internal strategies and internal weakness are
controllable activities within an organization that are performed especially well or
poorly. Management, marketing, finance, accounting, production, operations, research
and development and computer information systems activities of a business are the
areas where internal strengths or weakness arise. The process of identifying strengths
and weaknesses in the functional areas of the business are essential activities in
strategic management. Organizational strive to pursue strategies that capitalize on the
internal strengths and improve upon internal weakness.

Long Term Objectives- Objectives can be defined as specific results that an

organization seeks to achieve in pursuing its basic mission. Long term means more
than one year. Objectives are essential for organization successes because they provide
direction, aid in evaluation, create synergy, revel priorities, allow coordination and
provide a basis for effective planning. Objective should be challenging, measurable,
consistent, reasonable and clear.

Strategies- the means by which long term objectives will be achieved. Business
strategies may include geographic expansion, diversification, acquisition, product
development, market penetration, retrenchment, divesture, liquidation and joint
venture.

Annual Objective-annual objectives are short term milestones that organizations must
achieve to reach long term goals. Annual objectives are especially important in

strategy implementation whereas long term objectives are important in strategy

formulation.

Policies- policies may be defined as a means by which annual objectives will be

achieved. Policies include guidelines, rules and procedures established to support
efforts to achieve stated objective. Policies are guide to decision making and address
repetitive or recurring situations.

Benefits of Strategic Management

Strategic management allows the organization to be more proactive than reactive in
shaping its future. It allows the organization to initiate and influence activities and
thus to exert control over its destiny.

Historically the principle benefit of strategic management has been to help

organization to make better strategies through the use of more systematic, logical and
rational approach to strategic choice. A major aim of the process is to achieve
understanding and commitment from all the managers and employees. When this
happens, managers and employees become very creative and innovative. Thus a great
benefit of strategic management is the opportunity which it provides by empowering
the individual.

More and more organization is decentralizing the strategic-management process,

recognizing that planning must involve lower-level managers and employees. The

notion of centralized staff planning is being replaced in organizations by decentralized

line manager planning.
The worst thing a strategist can do is develop strategic plans themselves and then
present them to operating managers to execute. Through involvement in the process,
line managers become owners of the strategy
Thus strategic management allows following benefits:
1.

It allows for identification, prioritization and exploitation of opportunities.

2.

It provides an objective view of management problems.

3.

It represents a framework for improved coordination and control of activities.

4.

It minimizes the effect of adverse conditions and changes.

5.

It allows major decisions to better support established objective.

6.

It creates a framework for internal communication among personnel.

7.

It helps to integrate the behavior of an individual into a total effort.

8.

It gives encouragement to forward thinking.

9.

It creates favorable attitude towards change.

10.

It gives a degree of discipline and formally to the management of a business.

ANALYSIS
Gujarat Cooperative Milk Marketing Federation
(G.C.M.M.F.)
GCMMF is an apex cooperative organization involved in the marketing and
distribution of Dairy Products under the brand names of AMUL and SAGAR since
1973. GCMMF is also involved in distribution of Oil Products under the brand name
of DHARA since 1989 for NDDB.

Mission Statement
We at GCMMF endeavor to satisfy the taste & nutritional requirements of the
customers of the world, through excellence in marketing by our committed team
through cooperative networking; we are committed to offering quality products that
provide best value for money.

Journey 2005 (Vision 2001-05)

GCMMF will be an outstanding marketing organization, with specialization in
marketing of food and dairy products both fresh and dairy products both fresh and
long life with customer focus and information technology integration.
The network would consist of over 100 offices, 7500 (400 urban, 3500 rural)
stockiest, covering at least every taluka head quarter town, serving nearly 10 lakh
outlets with a turnover of Rs 10,000 crores, and serving several cooperatives.
GCMMF shall also create market for its products in neighboring countries.

GCMMF: Industry Standing

Indias largest food products marketing organization.

It markets popular brands Amul, Sagar and Dhara.

6th most respected organization in India.

Reach extends to West Asia, Nepal, Bangladesh and U.S.A.

GCMMF: Business Philosophy

To serve the interests of milk producers.

To provide quality products to consumers which offer best value for money
spent.

GCMMF: Milk Procurement

GCMMF: Sales Turnover

GCMMF: Manufacturing Facilities

Dairy plants:14

Total milk handling capacity: 6 million liter per day

3 plants with 1 million liter per day capacity

Milk drying capacity: 450 Tones Per Day

Peak milk handled: 5.3 million liter per day

GCMMF: Distribution in India

47 sales offices.

About 3000 dealers.

400,000+ retailers.

Indias largest cold chain network.

GCMMF: Exports

Indias largest export of dairy products.

Winner of 5 consecutive APEDA awards.

WMP, Ghee, Butter, Cheese, SMP, Shrikhand, Gulabjamun, Nutramul,

are exported in consumer packs.

WMP, SMP, casein in bulk

IMF

GCMMF: Product Portfolio

CATEGORY

BRAND NAME

MARKET

RANK

IMF
DAIRY WHITENER
WHOLE MILK POWDER
SKIM MILK POWDER

AMULSPRAY
AMULYA
AMUL WMP
SAGAR SMP

SHARE (%)
65
60
80
40

1
1
1
1

BUTTER

AMUL BUTTER

80

BREAD SPREAD
CHEESE
CHEESE SPREAD
GHEE

AMUL LITE
AMUL CHEESE
AMUL CHEESE SPREAD
SAGAR GHEE
AMUL GHEE
AMUL ICECREAM
MITHAI MATE
AMUL SHRIKHAND
AMUL GULABJAMUN
AMUL CHOCOLATES
NUTRAMUL

80
50
90
10
8
38
50
50
50
10
15

1
1
1
1
2
2
1
1
1
3
4

ICE CREAM
CONDENCE MILK
ETHNIC SWEET
CHOCOLATES
BROWN BEVRAGE

MANAGEMENT OF CHANGE: THE STRATEGIC

INITIATIVES
House Keeping (5s)
The house keeping activity mainly based on 5S principle. They are:

Segregation.

Arrangement.

Cleanliness.

Maintenance of standards.

Discipline.

Kaizen
Kaizen is basically small improvements carried out by individuals in his/her day to
day activities. The purpose of kaizen movement is to create a culture of continuous
improvement in the organization.
Nearly 120,000 Kaizens have been done in GCMMF from May 95 bringing about
improvements in business processes, communication, coordination and learning.

Organisation Climate Survey

Regular surveys are being conducted among all employees to identify pain
areas.

The performance appraisal system has been re-designed based on the

Organization Climate Survey feedback.

Management Initiatives

STRATEGY

STRUCTURE

STYLE

SHARED
VISION

SKILLS

STAFF

SYSTEM

Small Group Activities

More than 200 SGAs are at various stages of completion in GCMMF. The seven steps
which are taken into consideration while doing SGAs in GCMMF are as follows:

Reason for improvement.

Current situation.

Analysis.

Counter measures.

Results.

Standardization.

Future plans.

Hoshin Kanri

VISION

MISSION

JOURNEY 2005

STRATEGIC THRUST AREA

GOALS (HOSHINS)

INDIVIDUAL ACTION PLANS

INDIVIDUAL HOSHIN SHEETS

Hoshin Kanri is a unique practice which is being done in all the depot of GCMMF. It
is on the line of

Management By Objective where individual goals are aligned to

organizational thrust area. It is done on a monthly basis.

Internal Consultant Development (ICD)

It is a unique step taken by GCMMF where it has encouraged its employees to give
valuable advice to improve the work.

200 INTERNAL CONSULTANTS DEVELOPED

QUALITY CIRCLES IN EVERY DEPOT

MEETING EVERY 3RD SATURDAY OF THE MONTH

GCMMFs Values
GCMMFS values are as follows:

Customer orientation.

Commitment to producers.

Integrity.

Cooperation.

Excellence.

Leadership.

Quality.

Innovation.

Growth oriented new products.

Belongingness.

Pride in organization.

Employee satisfaction.

Themes & Thrust Areas

The major thrust areas and themes include:

1. Expand marketing of existing products Get to know the customer.

Make product available close to customer.
Reduce cost.

2. Identify and market new product Capability for scanning.

 Concept development.
Launch of a new products.

3. Building capability of marketing fresh products

Distribution expertise (cold chain).
Expertise manpower.

4.

Integration through IT
Create hardware/ software and manpower capabilities.

5. Attract and retain quality manpower Restructuring on product line.

Innovative salary.
Human resource development.

6.

Rationalizing taxes
Acquire expertise in taxation.
Lobbying.

7. Integration of cooperative with common branding

Creating awareness.
Develop capability to integrate cooperatives at national.

STRATEGY INVOLVED IN THE LAUNCH OF AMUL

PRODUCT
New Product Development
The following steps are taken in GCMMF for product development:
Step -1 Idea Generation and Screening
Create a multi-disciplinary team.
Identify a product champion.
Identify a project team.
Team Activities

Benchmark product category.

Identify competition.

Evaluate trends.

Define Consumer benefit.

Establish product differentiation.

Estimate barriers to entry.

Complete Idea Brief

Idea Description.
Business rationale.

Consumer target.
Core benefits promise.
Available benchmarks.
Competitive profile.
Research & Development Department

Conduct literature search.

Evaluate relevant competitive product.

Evaluate Ideas for fundamental technical needs and expertise.

Estimate possible resources required for feasibility.

Estimate likely time schedules.

Legal, regulatory and environmental issues.

Production

Estimate possible manufacturing approach.

Estimate capital and lead time.

Stage-2: Deliverables
Concept Brief

Product Concept Description.

Core Benefit Promise.

Relevant Market Research.

Available Benchmarks.

Technical Requirements.

Barriers.

Financial Requirements.

Resources.

Marketing

Define and test consumer concepts.

Complete detailed market analysis.

Refine product positioning.

Capture consumers' voice.

Develop business plan.

Refine sales estimate.

Finance

Verify final cost with all pertinent cost assumption.

Time

Total man days to launch.

Sales sample requirement date.

Earliest start date of project.

Proposed date of launch.

Decision

Progress with development.

Hold/Shelve/Recycle.

Demand Estimation Formats

Demand Estimation
How to estimate market potential for a productIproduct category?
1. Search into secondary sources of data

Through the material available in-house.

Through secondary data sources available at various libraries like IRMA,

GAU, SPU and contact respective librarians

Through Marker Research Cell for available information.

Through Internet through search engines like YAHOO.COM,

ROCKETMAIL.COM or any other.

Through syndicated market research reports like MRUC, ORG etc.

2. Send market estimation circular to Depot In charge.

3. Seek information from our advertising agencies viz, dCA, FCB ULKA, MUDRA.
4. Compile the collected information in a presentable manner from macro to micro.
5. Analyze the material and prepare the market demand report.

Price Working
How to prepare a Price Working for the given product?
1. Get the product specification approval from Quality assurance.
2. Send the product specification to the production unit and ask for the ex factory cost
from

them.

3. Get the information on CST (Central Sales Tax), LST (Local Sales Tax), and STNM
(Sales Tax Normalization Margin in %) and other levies applicable from Commercial
Department.
4. Get the information on transportation charges and freight and insurance, applicable
from

Commercial department.

5. Collect the margin structure for competing brands.

6. Decide on the GCMMF Margin, WD Margin and Retailer Margin.
7. Prepare at least 3 options varying the WD and Retailer Margin.
8. Get the approval of GPM, AGM (Mktg.), D.M. (Commercial), AGM (Commercial)
and MD on the final option.
9. Send the approved copy of price working to commercial department for issue of
circular to depots in the standard format.

Packaging Material
To ensure the packaging material requirement of a given product
1. An indent is raised by Purchase department for the annual requirement of the
packaging material on the basis of the marketing plan.

Purchase department decides on the following. .

Packaging material type Tin, Rexi or Refill.

Packaging material options and filling trials.

Filled packaging material trials plus shelf life study is done.

Engineering drawing is obtained from Unions.

Engineering drawing costing received from suppliers.

Decide on Primary, Secondary, Tertiary configuration packing.

A copy of the Engineering drawing is send to the Ad Agency.

Ad Agency decides on the Printability test such as suitability for Offset

Printing.

A meeting of Ad Agency and Supplier is scheduled wherein the two

discuss the feasibility of design and printing on the required surfaces.

Agency parallel finalizes pack design after meeting the statutory

requirements.

2. A trial test run packs from supplier through purchase department.

3. Checking for the defects, getting it corrected and getting the approval on the final
version of the trial pack from the relevant departmental heads.
4. Request is made to the purchase department to issue RAL (Rate Approval Letter) to
Member Union.
5. Follow up is done with the purchase department for timely supply of packaging
material to member Unions as per the production schedule.

Advertising Brief
An advertising brief essentially contains the following.
1. Industry Scenario
2. Existing competition and individual market shares of major players
3. SWOT analysis of competitor brands and GCMMFS product
4. Rationale of the product launch / Marketing Objective
5. Market Size and Roll out Plan
6. Product characteristics contain:
Introduction/Background
Manufacturing Process, Product Composition, Shelf life, Advantages, Applications,
Unique Selling Proposition, Pack configuration (Outer and Inner packaging), Gross
weight and Net weight, Nutritional Facts and MRP of GCMMFS product.
7. Distribution strategy
8. Target Audience/Segments
9. Positioning Strategy
10 Communication strategies, the message sought to be delivered and the media
vehicles needed for delivering the same
11. Deliverables expected form the agency like Pack design, Press Campaign,
Hoarding designs, Electronic (TV) Campaign, Point Of Purchase promotion tools like
Danglers, Posters, Streamers, Stickers, Banners, and Backing Sheets etc.
12. Time schedule. Typically agency provides 2-3 options.

Market Research
What is the procedure for conducting Market Research?
1. Annual Calendar is prepared for Market Research requirements (Projects to be
undertaken)
2. Classified into In-house research, researches by professional agencies and
syndicated researches
3. In-house researches are classified into projects done by Federation Staff and
projects done by management Trainee Students
5. Projects are allocated to students based on their background and area of interest
6. Students are briefed about the project requirements and background. Based on
which they submit work schedule and project proposal.
7. During the course of the study, mid exercise review are done to make necessary
correction in the on-going project.
8. At the end of the project, a report is presented and major findings are discussed with
the concerned person.
9. A hard copy of the project is kept at the central library for future reference
10. In case of projects by federation staff, the basic procedure remains the same, only
difference from the above procedure is that all data collection, analysis and report
preparation is done by Federation employees only.
11. Another variation is that, the data collection is done through outside data collectors
12. In case of customized researches from professional agencies, a brief is provided to
the M R agency. Based on it they provide proposal with the inherent cost estimates.

13. Approval is sought from MD based on the cost estimates and cost benefit analysis.
Once the go-ahead is given to the MR agency, progress of the report is monitored on
continuous basis based on interim presentations. This interim presentation is made to
and reviewed by a Top Management Committee. At the end of the project, a report is
presented and action to be taken is decided based on the findings of the project and
communicated to the concerned Product Officer.
14. Based on the periodicity, the reports are analyzed on monthly, quarterly, six
monthly or yearly basis and the findings and actions to be undertaken are
communicated to the concerned Product Officer/User groups.
15. Some reports, books are purchased from time to time, which contains useful data
about markets, consumers and retailers. These books/reports are stored at the central
library and used for long term planning or other exercises.
16. The budgets are frozen at the time of presenting brand plans at the start of the
financial year. For every new subscription or renewal of existing one, MD's approval
has to be taken.

Indent Allocation
How to do Indent Allocation for a product for a given month and year?
Indents are received by Product Manufacturing Group on 24th of each month from all
the depots. An indent consolidation statement is prepared which gives the product wise
pack wise indents for and the products. The individual product wise pack wise indents
are handed over the respective product officer in order to plan out the subsequent
allocation. The cumulative product wise pack wise indents are also entered into

programming committee format which tells tile MU total requirements of various

Dairy Products to be manufactured during the coming month.

Trade Schemes
How to give Trade Schemes for a Product?
Trade schemes are discounts given on standard price working elements with the
discount budget coming from a certain sum of money set aside at the start of the year,
which in marketing parlance is known as Trade scheme budget. The trade scheme
budget for the trade scheme financial year is frozen at the time of presenting brand
wise trade scheme proposal to be in operation for the current year.
The trial amounts are worked out on the following principles:
1. Trade schemes are aimed to gain Trade Push.
2. To preempt competitors from taking leverage at a time when he is planning market
penetration by entering the market at a lower price so that brand switching takes place
3. Brand position in the given product category.
4. Goals for the brand for the coming year
5. The relative position of the brand in the thrust area map
6. The amount of money sanctioned during the previous year for the same brand
7. The proportionate rise in the overall advertising and marketing spend based on the
standard premise of a certain % of turnover each year.
8. New product launch
9. Speed of movement of the product at retail shelves

10. To push the stock at depots and Wholesale Distributor Godowns during Off Season
and / or Festive Season

The modalities of a typical trade scheme are as under

1. Study the previous schemes given for the product category in different markets and
the response to the scheme
2. Interact with the depots on their requirements in terms of the most effective trade
scheme.
3. Design the trade scheme covering the following points

Product

Pack

Period

Targeted sales

Area of operation/Coverage

Scheme

Discount on the basic price to WD

For example, 4% Trade Scheme means 4% less on the invoice price to the WD which
has to be passed on to retailers by him. In other words Basic Price to WD to be
reduced so that the net discount to retailer can be given at the rates specified above
(4%) after adding local sales tax while holding existing Wd and retailer Margins at the
same level) WDs can give scheme on their existing stocks and can retain the same
quantity after the end of the scheme.

Monitoring the scheme would entail giving details of scheme progress to the zonal
office every fortnight giving the following details:

Total Sales achieved

Total Discount given

Primary Sales Percent that have translated to Secondary Sales, a typical

norm can be 80% primary sales are to be converted to secondary sales

Pack wise opening stocks with respective depots one day before the start
of the scheme

Pack wise closing stock with respective depots one day after the end of the
scheme

Apart from that the total expenditure involved is also calculated by Cost Benefit
Analysis. Then a proposal is made to MD with the above contents and relevant
enclosures from the depots. It is then forwarded to MD through GPM & AGM(Mktg).
Once approved send circular to depots listing modalities of the scheme

Programme Committee Meeting

Objective

Production Planning.

Planned production vs. Actual production.

Planned dispatch vs. Actual dispatch

Market feedback.

New product development and improvement

Competitors activities.

Counter measure to counter competitors activity.

Programming Committee is comprised of Managing Directors of all member Unions,

GM of Mother Dairy Gandhinagar, MD and AGM (Mktg) of GCMMF. PCM Is held
within first 10 days of the month. In the PCM, last two month's union wise milk
procurement is reviewed and current and next month's procurement figures are
chalked out. Apart from procurement, Inter dairy milk sales, Milk procurement prices,
Liquid milk sale quantity & prices, Cattle feed selling price are decided. Union wise
product wise production and dispatch are reviewed against planned ones. Sales and
stock figures (at both unions and depots) are discussed. Current month's planned
production and dispatch are also discussed. There will be presentation on performance
of one consumer product every month.

Production Planning: Production planning helps to plan the supply and demand of
products at the union and depot. Planning is done annually and monthly.

Annual Production Planning is done as follows:

1. Letter to member unions asking for projections of milk procurement and production
of dairy products.

2. Federation's projections of milk procurement after consultations with AGM(Mktg).

3. Projection of Interunion and private party milk sales.
4. Deciding on the production targets with the help of Marketing Dossier.
5. Deciding on the union production of various products based on fat and SNF
availability.
6. Finalizing the projections at each stage.
7. Submission of Annual production Plan document to MD, AGM (Mktg).

Monthly Production Planning is done as follows:

1. Projecting current month milk procurement.
2. Projecting interunion and private party milk sales
3. Entering the actual figures for milk procurement, milk sales, production, dispatch
and closing stocks till date.
4. Projecting sales and stocks for the depots.
5. Indent consolidation for the coming month.
6. Estimation of pack wise, union wise, product wise production.
7. Verified by AGM (Mktg)
8. Verified copies are given to respective Product Officer, Dispatch and Purchase.
9. Month end processing done by Dispatch Department.

What is Hoshin Kanri?

One of the most significant activities performed every six months is Hoshin Kanri.

The word Hoshin Kanri comes from Japanese and literally means Guiding Light. The
principal objective of this is to set Goals for the Brand at the start of the year stating an
end goal in mind called Hoshin, the Action Plan highlighting the planning steps and in
which way it is desired to be achieved, the Measure of Performance against which
these achievements will be Benchmarked, the time by which it will be completed, the
Champion responsible for spearheading the same and the resources required. The
goals set for the year are reviewed every six months under Hoshin Review. The
planning steps of Hoshin Kanri are as follows:

HRD Department in consultation with Planning Management Group

constitutes a HOSHIN Design Team.

The Design Team has representatives from various departments at HO and

also some major depots representatives.

The team meets well in advance to chalk out the HOSHIN SCHEDULE.
The Hoshin Schedule lists down the Topics/Presenters/Methods/Outcomes,
duration for each of these activities, start and end times. The entire
exercise is spread over three days and the meetings usually take place at
IRMA Library basement. The design team finalizes the Agenda and
circulates a copy of the same among various internal customers. Their
views are obtained and the more pressing ones are incorporated. The trial
schedule is then presented to MD who critically examines it and gives his
consent. Any changes suggested by MD are duly incorporated.

HRD then prepares the Final Schedule and circulates among the Product
Officers, zonal Managers, Depot in Charges and other relevant target

groups.
HRD also decides on a Logistics Team which is entrusted with the task of
smooth running of establishment activities besides setting facilities for
instant Record Keeping of the proceedings.

Once the dates are announced the PMG group has its Internal Review of
the objectives set during the last Hoshin Kanri meet. A meeting of all
Product Officers is called with GPM chairing the meet. This is usually at a
couple of hours notice. The Pending Hoshins are sorted out and
explanations proffered by the concerned Product Officer regarding the
status of the same. Fire fighting measures are also adopted wherein the fire
can be doused. The Golden rule is keep a copy of Hoshin Booklet in front
of you and take initiative for following and carrying out the enlisted
activities.

After this a meeting is held with AGM(Mktg.) apprising him of the internal
Hoshin Review and design of Data on the Brand Updates to be presented is
then chalked out.

BRAND UPDATE
Typically a Brand Update has following heads:
-

Product Sales Trend: Figures & Graph

Monthwise/Yearwise Sales Performance

Sales Comparison: Quarters/Six monthly/Yearly

- Depotwlse/Zonewise Sales performances in terms of

Volumes

Achieved/reasons for growth/decline/Pack wise Sales

Sales of Top 100 Cities with ranks and growth rates

Total Market Size, Brand Shares, Targeted Market Shares

Actual Monthly Sales Targeted and Achieved

Competitor Activities:

Trade arid Consumer Schemes/Prices of Competing

Brands/Price Revisions/New Launches

Goals for the Brand

Usually the deadline for the Hoshin Kanri Presentations should be ready in
12 hours flat! The Product officers generally work even overnight to
complete their Brand updates and meet their deadlines. The prepared drafts
are then presented to AGM (Mktg.) in which the Product officers present
the Data.

AGM then calls for a Stock-Taking Meet in which the following questions
are answered
How much time and effort it will take to incorporate the changes?
If the workload is too severe then action teams consisting of two Product
officers working on one Brand are worked out. One of the Product Officers
is entrusted with the task of gathering the soft and hard copies at one place.
Individual Product officers present the Brand updates in Board Room to
MD. Comments of MD are then noted down and incorporated in the
Updates.

Annual Marketing Plan

The Annual Marketing Plan lays down marketing efforts for the next year. This is one
of the most crucial planning exercise undertaken in November December each year.

The typical contents of the Marketing Plan are standard formats called 'The
Annual Marketing Plan Dossier' designed by Product Management Group
which are then sent to the Depots for getting the necessary information.

The typical Table of Contents has the following:

Market Status of Amul brands vs. Competitor brands

Actual Sales say for year 01-02, estimated sales 02-03 and

projected sales 03-04

Market share for each category for the same period

Barriers to sales growth and suggestions to overcome it.

Strategic moves of competitors and suggested counter measures

Pack wise sales status of AMUL brands

Actual pack wise sales 01-02, estimated sales 02-03 and

projected sales 03-04

Pack wise % deviation of estimated Current Year Sales over

Actual Past Year Sales

Reasons for deviation in sales.

Projected pack wise sales for 98-99 and its ratio.

Information for New Product Development

Manufacturer of the given new product, his production capacity

and Annual turnover

Organised/Unorganised market for the new product

Annual turnover of the brands, its price to the distribution

channel and MRP.

Projected sales for the first year, if the product is launched

Quality Control
Quality control happens to be the pillars on which an FMCGs reputation in the market
stands. Essentially the interactions between marketing and quality control border on
the following.

Name of the product

Packing configuration both primary and secondary.

Name of manufacturer

Name of marketer

Placement of corporate, GCMMF and Operation flood logos

Ingredient used

MRP, Batch number, Date of manufacture and Date of expiry.

Transportation
The important part played by the Depot in primary sales is ensuring speedy delivery of
the goods to the WD Point. Therefore, in Depot as soon as the Order of WD is
received, the invoice is prepared and sent to the C&F and simultaneously the
transporter is also informed.
The valid requirement, as per the federation norms, for the delivery of goods to the
WD point is as under:

DISTANCE(Km)
Local Dealer
<100
101-200
201-300
301-400
>400

TIME OF DELIVERY(Hour)
8
12
16
20
24
36

The transporter is penalized in monetary terms (Rs. 150 per day of delay) in case the
transporter is unable to lift and deliver the goods in the stipulated time.

Nature of Work at a Depot

The operation of the Depot is an integrated process i.e. it can be explained considering
the yearly sales planning exercises as the starting point and the sales of products in the
Retail Counters as the end point and vice versa.
It can be described in five heads:
1. Sales Functions
2. Accounts Functions
3. Commercial 'Functions
4. MIS

5. Computerization of Operations (Branch Application System)

Sales function at the depot: The various aspects of sales functions for the Depot
include the followings:
1. Corporate Sales Planning - Depot Sales Targets.
2. Distribution and Sales Planning at the Depot Level.
3. Ensuring Physical Movement of Goods from Depot to WDs - Primary Sales
4. Ensuring Physical Movement of Goods from WDs to Retailers Secondary Sales.
5. Ensuring Physical Movement of Goods from Retailers to Consumers - Tertiary
Sales
The Depot is involved in the preparation of Corporate Sales Plan and is also
responsible to implement the same in the field.

A. Corporate Sales Planning

At the beginning of the financial year, the Depot submits the yearly Sales Forecast of
each product to the HO. In forecasting the sales, the Depot takes into consideration the
sales growth of each product during the year and the potential of the product in the
market.
The marketing Department revises the targets of the Depot depending upon the
Corporate Sales Plan and gives back the final sales target to the Depot. The sales target
acts as the guideline and the Depot plans its operations to achieve the targets.

B. Distribution and Sales Planning at the Depot

I.

Annual Sales Planning

The DIC calls for a meeting of all the WDs at the beginning of the financial year and
they mutually decide the target of each WD, keeping in mind the growth and sales
potential in the market of each WD and the sales target of the depot.

II.

Monthly Sales Planning

The DIC prepares the sales plan for the following month on 18th of every month.
Accordingly, the DIC prepares the Indent for the next month (with break-up of 10 days
period) and next to next month. While preparing the sales plan and indent, the
following factors are taken into consideration:

Expected sales and closing stock by the end of the month, Sales of products during last
year same period (for which indent is prepared), Growth of Sales over the last year
and expected growth.Seasonality/Local Festivals during the month, Availability of
stocks in the market, Schemes, if any
The indent and sales plan are to reach HO latest by 20th and 25th respectively.
Thereafter, HO Intimates the Depot regarding the Indent allocated for each product.
The allocated quantity may vary from the quantity indented by the Depot.

III.

Market Coverage and FSR Monitoring

A continuous interaction is essential to measure the performance of AMULS product

vis--vis the competitors. Therefore, at the beginning of every month, the market visits
by FSR, Sales Officer and DIC is planned. During the first week of the month, a
meeting of the DIC, Sales Officer and FSR is held at the Depot. In the meeting the
activities to be carried out by the Depot during the month is decided. The Depot also
decides to put concerted efforts on certain products

IV. Distribution Planning:

The distribution planning is also done at the Depot level to facilitate smooth and
efficient movement of goods. The DIC has to ensure that all the WDs send their
Draft/Pay Order of a minimum amount on a particular day. Accordingly, the
transporter is informed .in' advance the day wise destination. Such planning helps in
efficient transportation of goods.

V. Scheme Announcement
The HO informed the Depot, in case of any scheme is introduced for any particular
product. The same is intimated to the WDs by the Depot. The schemes could be of the
following types:
WD/Primary Schemes
Such schemes are meant for the WDs. If the primary scheme is some cash discounts,
then while billing for the product the amount is deducted.
Trade/Secondary Schemes
Such types of schemes are meant for the retailers. The scheme amount is deducted
from the WD's bill and the same amount is passed onto the retailers by the WD. The
sales personnel working in the field ensures that the secondary scheme is passed on to
the retailers. At present we are giving 4% trade scheme on Chocolates in the festive
occasion.
Consumer/Tertiary Scheme

The benefit of such schemes is passed onto the Consumer. Such schemes are
announced on the pack itself. However, the same is also announced in the Media.
The other types of schemes are WD Sales Man Incentive Scheme, FSR Incentive
Schemes. Such schemes are given on the achievement of the targets.

C. Ensuring Primary Sales

The primary sales take place when the goods are sold to the WDs by the Depot.

I Order Execution & Invoice Preparation

As a matter of policy, the orders placed by WDs are executed only on receipt of
advance payment in the form of Demand Draft payable in favour of GCMMF Ltd.
However, in case of local dealers, the payment can also be made in the form of Pay
Order and Cheques (only if Bank Guarantee is given by WQ). GCMMF reimburses
0.15% of the DD amount to WDs towards DO commission.
Along with the DD, the 'WDs place their order for different products in the format
prescribed by GCMMF. The filled in format shows the stock status at WD point along
with the date of manufacturing of the products and the order placed by the WD for
different products and pack sizes.
On receipt of the order form from the WD, the Depot In-Charge (Ole) allocates
various products, keeping in mind the stock position at WD Point and C&F Godown
and also the market and sales potential of different products in the particular territory.

Money Receipt
The Money Receipt is generated by feeding information in Branch Application System
regarding the payment instrument viz. Type of Instrument (Draft, PO, and Cheque
etc), Name/Branch of the Bank, Date and the Amount. Once the information is fed the

amount is credited in the account of the respective dealer.

Invoice Preparation
After the Money receipt is generated, the invoice for the products is generated using
BAS: To prepare the invoice the information regarding Quantity of products (No. of
cases) allocated along with the break up for each pack size is fed into the system. Then
the system automatically shows the value of products allocated (as the Master is
updated) which also takes into account the State Sales Tax, Transit Insurance Rebate
and Schemes/discounts if any. The system is full proof in the sense that it does not
accept the entries if the allocated value exceeds the amount credited in the WD's
account.
Separate invoices are prepared for dry and wet milk products, since the godowns are
located in different places. Separate invoices are also prepared for Dhara since we are
the sole selling agent for the same (the invoice form used for Dhara is separate from
the dairy products).
The Invoice is sent to the C&F agent for dispatches to the WD point. The C&F agent
receives the BILTI from the transporter as a token of acknowledgement of the goods
and the goods are sent to the WD along with a copy of the BIL TI and Invoice.

D Ensuring Secondary Sales

The WD maintains separate files for the following:
1 Order Copy
2 Invoices
3 Transport copy
4. Accounts (Money Receipts, Credit/Debit Notes (Part ledger etc.)
5. Circulars received from HO
6. Claim File
7. Daily Sales and Stock position
8. Bill Book.
Godown Hygiene: The onus of maintaining the hygiene of the godown lies with the
WD.
Route Scheduling: The WD divides the entire market into several bits and the route
scheduling is done to cover each bit on a particular day of the week (Sunday Closed).
The WD takes into account the following factors for route scheduling:
1. The route scheduling is done in such a way that the products reach the retail outlets
before the market day of that area. The market off days (e.g. Thursday Closed) is taken
into consideration in the route scheduling.
2. The route scheduling is done in such a way that it becomes economic for the WD
from transportation point of view.

3. The WD preferably covers a particular market the day before the coverage by the
major competitor.
The route scheduling/bit planning for our product is clearly displayed at the WD point.

E. Ensuring Tertiary Sales

All the planning, sales and distribution efforts of a company aims at ensuring sell of
products to the final consumer. Apart from ensuring the availability of the products at
the retail outlet the company also carries out different activities in the market to ensure
the visibility of the product and maintain the company image.
The officer while in the market looks for:

Visibility of the product

POP material like Posters, Danglers etc

Product Complaint Form

Distribution Network
Depot has an important place in the whole distribution network. A typical distribution
channel in GCMMF Ltd. is as follows:

Manufacturer

Depots

Wholesale Dealers

Retailers

In case of such a structure all the entities have their own specific role to play and they
have to be coordinated in terms of time, transaction and operation. Besides such a

structure reduces the burden of storing or selling a product just on one entity. The
depot also helps in better coordination and provides a link between the consumer and
Head Office. This is because of the proximity to the market the supply is being made.
Physical Verification:
Physical verification of the stocks is carried out at regular intervals. This provides
knowledge of the actual stock position on paper and in the Godown. In case actual
stock and records do not tally, enquiry is made to remove the discrepancy. The
verification can also give information (if required).
Appointment of Wholesale Dealers (WD):
As the market share increases the Depot In charge may divide the area under on dealer
into two or more area under different dealers. This is done for better servicing of the
retailers. It is taken care that the business of the previous WD does not suffer to such
an extent that he loses interest in the business.
Applications are invited from interested parties for the appointment of WDs. The
applicants are visited and information of financial stability, previous service record in
similar kind of work (if any) etc are checked. Information about his record is also
gathered from trade circle. There are few requirements, which the. WDs have to meet
before they are appointed. The WDs have to provide bank guarantee (generally 25% of
sales assured by Federation), vehicles for transport, salesman etc. As far as possible,
the WDs should not simultaneously handle competitors product because he may
neglect or compromise on the sales of our product.

Once the above criteria are fulfilled the depot gives a preference list after short1isting
the candidates. The Head Office has the final say in selecting the WD in consultation
with the Depots.
Insurance:
The stocks are insured so that in case of damages or pilferage, the loss can be made
good by the insurance company. Federation buys the policy for the first leg transport
(Union to Depot). Federation has bought the policy from UTI and LIC for first leg
transport. It is an open policy covering transport of all the goods from different unions
to different depots. The depot has to claim for the insurance in case of any
damage/pilferage. The claims can be of two types: (a) non - survey (b) survey
(a) Non-Survey: If the claim is less than Rs. 1500 (for dry dairy product), Rs. 1000 (for
Dhara oil) and Rs. GOO (for wet dairy products) then the claim are non-survey i.e. no
person from the insurance company will visit the site to survey the damage.
(b) Survey: In case the claim is more than the above mentioned amounts then an official
from the insurance company is appointed to survey the damage and quantify it. The
goods, which are not in salvageable condition, have to be destroyed in presence of
survey and Federation officers.

Route Scheduling:
Scheduling is basically done for ease in operations of dispatch. Scheduling should be
done in a way that all the WDs receive stock regularly and does not face stock outs.
Routes on which goods will be transferred each day of the week are decided in

advance to avoid confusion during loading

Product Complaint Handling:

Every depot has been allotted a budget of 0.05% of the sales turnover for replacement.
70% of the above budget can be settled by FSR, 20% by executives and rest 10% by
Depot In charge (DIC). 0.01 % of sales turnover of the zone can be settled by Zonal
managers. Replacement becomes a crucial Issue in market when the competitors are
providing almost 100% replacements. Yet, assuring the retailers 1000/0replacement
will induce complacency in the retailers regarding the stocking of the goods. To avoid
this, the depots replace the goods on case to case basis. The retailers have to fill the
Product Complain Forms and submit it to the depot before replacement is made

Appointment of Transporters:
Quotations are invited from the transporters regarding the rates. The transporter
quoting the minimum rates is selected by the depot. Negotiations are done with other
transporters to bring them down to the lowest quoted rate before they are chosen. The
transporter needs to pay a bank guarantee of Rs.50,000. He is not supposed to carry
any other parties' goods along with Federation goods else he is liable to pay a penalty
of Rs. 1000.

Scheme announcement:
A certain sum is fixed at the beginning of the year for the depots to announce any
schemes or to sponsor any programmes. In case of trade and consumer schemes the

depots are informed and sales targets are fixed for the respective depots.

Price Working:
The depots are given the information about Ex-Factory price, WD and Retailer
Margin and the MRP of the product. The depot has to carry out backward price
working for the product. The transporters pay the Octroi during transport. By 10th of
the next month the transporter submits the bills and the Octroi is reimbursed by the
depot.

Terms of Payment:
Federation does not extend any credit to the WDs. The WDs have the option to extend
credit to the retailers. The only concession Federation provides to the WDs is that the
WD can lift goods against his bank guarantee but he has to remit the invoice amount
before 72 hours of the date of invoice.

Hiring of Godown:
A tender is published in the dailies for want of space to store the products against
which the quotations are received. The comparative statement is based on the area
made available, rates, location of the Godown, reputation of the party etc. After
finalizing on the party, agreement is made with the concerned party for the same.

Activities of a C&F Agent

1. Receive the goods, LR and invoice from the Transporter
2. Acknowledge the receipt of the goods
3. Examine the goods
4. Note down the short quantities, damaged quantities, if any.
5. Prepare the Arrival Report and DER (Delivery Examination Report) and send to
Depot Office.
6. For Dhara & Vanaspati damaged goods, do the salvage operation and take out the
loose oil Vanaspati
8. Receive the invoice or summary from the Depot office
9. Prepare the gate pass for "First Manufactured" products in the invoice
10. Send the pending dispatches information to the Depot Office
l1. Send the dispatch register, stock position to Depot Office
12. Get the party name and rate for the loose products and prepare the loose oil bill
and gate pass to

take out the loose products.

13. Destroy the damage goods in the presence of GCMMF officers and auditors and
prepare the Destruction Certificate
14. Prepare other documents for the products lost or damaged.

AMUL ICE CREAM

Definition
Ice-cream is a frozen product obtained from milk or milk products, with or without
addition of Sugar, Eggs, Fruits, Nuts, Chocolate etc and permitted food colors. It may
contain permitted stabilizer and emulsifier not exceeding 0.5%. The product should
not contain less than 10% milk fat, 3.5% protein and 36% total solid.

Why ice cream?

GCMMF went into the ice-cream market because of the following reasons:

There was a gap in the Dairy Product Category.

IMRB conducted a survey which suggested that ice-cream had a huge demand.

There was an increase in monopoly of MNC through acquisition and merger.

There was attractive growth rate of ice-cream industry.

GCMMF had advantage as they had large procurement base of raw material,
having technical know how, prevalence of marketing culture and a strong
network of 180 Milk Co-Operative union network, state of art plants

Mission

To make AMUL ICECREAM available in top 1000 cities by the year 2002.

To get Rs 500 crore business from AMUL ICECREAM by the year 2002.

To get Rs 1000 crore business from AMUL ICECREAM by the year 2005.

Manufacturing of AMUL ICCREAM in 20 ice cream manufacturing unit.

Advertising Positioning
Since ice-cream is fun product, GCMMF can not talk of nutritional and health.
However subliminally GCMMFs strategy reflects this insight.

GCMMF opted for Amul Ice Cream, Real Milk Real Ice Cream.

Amul stands for milk.

Cues Nutrition, Health.

Universal appeal of Ice Cream.

Marketing Strategy
Since its launch, GCMMF has successfully done the positioning of Amul Ice Cream as
No-2 national brand.

It has received more than 100% growth for many years.

It has its presence in more than 18,000 outlets.

It has strong presence in 13 states & 3 union territories with 26 depots.

GCMMF has tied alliance with various milk unions. Some of which have
already started and some of which are under negotiation.

Manufacturing capacities are as follows:

COOPERATIVES

ICECREAM

STICKS(in nos)

Sugam

dairy,

(lpd)
10,000

20,000

Baroda
Mother

Dairy,

35,000

150,000

Gandhinagar
Vidya Dairy, Anand
Vasudhara Dairy,

5,000
30,000

Nil
50,000

Boisar
Mother

8,000

20,000

Dairy,

Banglore
Some Of The Successful New Launches Of Amul Ice Cream To Create Premium
Image Are:

FROSTIK(Real Fast): 80 ml

TRICONE: Vanilla/Chocolate/Butter Scotch

Shahi Pista & Shahi Badam: 60 ML(All India)

Ripples: Mango/Strawberry/Chocolate- 100ml/ 500ml/ 1 litre/ 4 litre

Cappuccino(west)/ Black Currant- 100ml/500ml/1litre/4litre

Chococone: 60ml

Cassata:150ml

Fresh Fruits:- Fresh straw/ Fresh Litchi

Cappuccino/Black Currant- 100ml/500ml/1litre/4litre.

Sweet Heart- Tender Cream/ Pista Passion/ Strawberry Blush.

Tempting pack (re-usable plastic container packs) - Vanilla, Butter Scotch &
Kaju Draksh with 500ml, 1000ml &200 ml.

Advertising & Promotional Activities

Various activities have been done to promote the Amul Ice-cream to counter its
competitors are:

Reach to the mass through media like

Chalo Chalen-Let us go for Amul Ice-cream
For FROSTIK Love at first bite

Shop painting and Van paintings have been done.

Advertises are best of its kind and everlasting POP.

These advertisements have maximum visibility.

Budget is provided for 100%outlet coverage.

Average area for these advertisements is 100sqft (average).

They have also standardized the design for their advertisements like Signage
Design should cover 75% and Glow sign Design should cover 25%.

For price list PVC covered small price list is made. Sun pack for big price list.

SEGMENTATION

AMUL

Impulse Cups

17%
48%

Bulk
Carry Away

27%
8%

Impulse Stick

K-WALLS

29%

29%

23%

19%

Impulse Cups
Bulk
Carry Away
Impulse Stick

Product Development
GCMMF is constantly trying to development and launch new flavors in ice-cream like
fresh fruit range, extruded varieties, sandwich type. It is also sending its employee to
Denmark to learn world class technique.
Task In Hand

50% market share in all launched market.

Number of Amul outlets should be equal to total number of competing

brands.

Outlets in all launched markets i.e. 50% market penetration.

Visibility of outlets in all strategic locations.

Good quality of shop painting on all outlets.

To make strong foothold in institutional and caterers segment

Each and every WD should have competency and arrangement for catering.

Participate in all mela and festival.

OBJECTIVE
SIGNIFICANCE OF THE STUDY
For any business venture, human resource go hand in hand. Opportunities come and
go but business comes from the ones, which are handled properly in terms of leads. Leads for
any new opportunity are very important for it to turn out a profitable venture.
Promotion plays a very important role in both the departments. Promotion helps us to
market a product properly and also helps in increasing the sale of the product as compared to
competitors.

MANAGERIAL USEFULNESS OF THE STUDY

Helps to have human resource experience

Helps to deal with different customers

Helps to overcome the objections of the customers

Helps to understand the problems of agents in a broader prospect

It provides a platform where managerial role can be played effectively and efficiently

OBJECTIVE OF THE STUDY

To analyze the consumer preference and perception for Cadbury Chocolate with reference
to other market players

Market share of competitors brands.

To study the consumer behavior of chocolates.

Analysis of the product, pricing, availability ,quality, taste, advertising and packaging of
Cadbury Chocolates.

To study the strategies & measures adopted by Cadbury.

SCOPE OF THE STUDY

To study the present human resource in the organization at various levels, A human resource
manual and policies covering others (employees and customers) in company which can prefer
this new technology to transfer their data with full security and reliability and with great speed
of data transmission.

Methodology
Methodology
Marketing Research is a process of collecting and analyzing marketing
information and ultimately to arrive at certain conclusion. The purpose of this
research is to describe the research procedure. Research Methodology is the
mean to plan out the working process or the course of action to reach the
objective. It is extremely crucial and holds the key to the success of the survey.
Cadbury India ltd. is, which is marketing products having different brands. Thus
a survey method of marketing research is essentially exploratory in nature.
Marketing research have its importance not only for consumers market but also
it survey effectively to the producer of goods and services. The use of marketing
research in consumer market may be explained on the basis of following
services rendered by it.
1. It ascertains the position of a company in specified Industry.

2. It indicates the present, future trend of Industry and point out how the
companys affairs are being turned up.

3. It helps in development and introduction of new product.

DATA SOURCES
Data collection is most important part of research because the research is based
on it. There are several ways of collecting data, which differs considerably in
terms of cost, time and other resources at the disposal of the researchers.
The data collection method for this research work is from primary source as well
as secondary. The survey is carried out through a non-probability convenience
sampling in Delhi through a structured questionnaire.
Type of Data
There are two types of Data:
1) Primary
2) Secondary
Primary Source: Source from where first hand information gathered directly are
called primary source and thus information collected is called Primary data.
In case of above study the primary source was consumer.
The techniques available for collecting primary data are:
SAMPLE SIZE
The survey is conducted among 100 respondents.
SAMPLE DURATION
I have undergone training for 3 months.
SURVEY AREA
I have done survey in Delhi and NCR region
Secondary Source: The source of information already gathered for some other
purpose are available is called secondary data, with regard to my study
secondary sources of my study where records of the company, magazines and
papers. The Secondary data was collected on the basis of requirement,
conveniences and reliability of the data. Out of these I have chosen
questionnaire method to collect the data because of low cost, free from the bias
of other interviewer and respondent

LIMITATIONS OF THE PROJECT

The information has been collected by secondary data thats why what people actually
believe of Amul could not be given.
The coke company has so many products that it is not possible to go in detail of each
and every product in such a short time.
There is no enough information present on the net so that I cannot focus on one
particular product, though I referred to encyclopedia and other magazines but it
was still not enough.
As I was not available with enough of primary data, so the analysis of the project may
differ from person to person.
I was not able to get the details of their transactions for the past few years because of
which I cant compare the increase or decrease of Amuls profit

ANALYSIS
Gujarat Cooperative Milk Marketing Federation
(G.C.M.M.F.)
GCMMF is an apex cooperative organization involved in the marketing and
distribution of Dairy Products under the brand names of AMUL and SAGAR since
1973. GCMMF is also involved in distribution of Oil Products under the brand name
of DHARA since 1989 for NDDB.

Mission Statement
We at GCMMF endeavor to satisfy the taste & nutritional requirements of the
customers of the world, through excellence in marketing by our committed team
through cooperative networking; we are committed to offering quality products that
provide best value for money.

Journey 2005 (Vision 2001-05)

GCMMF will be an outstanding marketing organization, with specialization in
marketing of food and dairy products both fresh and dairy products both fresh and
long life with customer focus and information technology integration.
The network would consist of over 100 offices, 7500 (400 urban, 3500 rural)
stockiest, covering at least every taluka head quarter town, serving nearly 10 lakh
outlets with a turnover of Rs 10,000 crores, and serving several cooperatives.
GCMMF shall also create market for its products in neighboring countries.

GCMMF: Industry Standing

Indias largest food products marketing organization.

It markets popular brands Amul, Sagar and Dhara.

6th most respected organization in India.

Reach extends to West Asia, Nepal, Bangladesh and U.S.A.

GCMMF: Business Philosophy

To serve the interests of milk producers.

To provide quality products to consumers which offer best value for money
spent.

GCMMF: Milk Procurement

GCMMF: Sales Turnover

GCMMF: Manufacturing Facilities

Dairy plants:14

Total milk handling capacity: 6 million liter per day

3 plants with 1 million liter per day capacity

Milk drying capacity: 450 Tones Per Day

Peak milk handled: 5.3 million liter per day

GCMMF: Distribution in India

47 sales offices.

About 3000 dealers.

400,000+ retailers.

Indias largest cold chain network.

GCMMF: Exports

Indias largest export of dairy products.

Winner of 5 consecutive APEDA awards.

WMP, Ghee, Butter, Cheese, SMP, Shrikhand, Gulabjamun, Nutramul,

are exported in consumer packs.

WMP, SMP, casein in bulk

IMF

GCMMF: Product Portfolio

CATEGORY

BRAND NAME

MARKET

RANK

IMF
DAIRY WHITENER
WHOLE MILK POWDER
SKIM MILK POWDER

AMULSPRAY
AMULYA
AMUL WMP
SAGAR SMP

SHARE (%)
65
60
80
40

1
1
1
1

BUTTER

AMUL BUTTER

80

BREAD SPREAD
CHEESE
CHEESE SPREAD
GHEE

AMUL LITE
AMUL CHEESE
AMUL CHEESE SPREAD
SAGAR GHEE
AMUL GHEE
AMUL ICECREAM
MITHAI MATE
AMUL SHRIKHAND
AMUL GULABJAMUN
AMUL CHOCOLATES
NUTRAMUL

80
50
90
10
8
38
50
50
50
10
15

1
1
1
1
2
2
1
1
1
3
4

ICE CREAM
CONDENCE MILK
ETHNIC SWEET
CHOCOLATES
BROWN BEVRAGE

RECOMMENDATION
SUGGESTION TO INCREASE THE SALE OF AMUL BUTTER.

Should be available in a bigger pack for institutions like 1kg.

Give consumer scheme with butter.

Use the topicals as stickers.

Introduce flavored butter for children appeal.

Be available in small packs for consumer like 50 gms pack worth Rs 5. it will
increase the number of times the product sold.

2.

SUGGESTIONS TO IMPROVE SALES OF AMUL/SAGAR GHEE

Increase the supply to meet the demand.

Introduce smaller pack, either 200g or 250g, to cater lower consumer segment.

Introduce 10g/15g sachet for one time usage.

Introduce promotional plans: print media, Hoarding, POP etc. (at present ghee
doesnt have any promotional plans)

Emphasis on AGMARK in advertisements to have an edge on quality

perception.

Increase the retail penetration especially in North India which is the largest
ghee market in the country.

Update Amul Ghee recipe book and sponsor Cookery shows/contest.

Participate in exhibitions and village melas to spread out into upcountry

markets.

3.

Replace defective/expired material immediately to boost retailer confidence.

SUGGESTION TO INCREASE THE SALES OF AMUL WMP

Regularise production. Availability of the product through the year meeting the
demand.

4.

Inclusion of WMP recipe in Amul Taste OF India cookery book.

Regular advertisement should be placed in satellite TVs and in newspapers.

Conducting or sponsoring cooking competition region-wise or all India basis.

SUGGESTIONS TO INCREASE THE SALES OF SAGAR SMP

Medical promotion highlighting low calorie and high protein diet.

Should be available in smaller packslike 100gm, 50gm to increase the

affordibility.

Popularize and service tea and coffee shops also railway stalls.

Tea or coffee shops using Amul product should have a board highlighting that
the tea, coffee or any other item is made with Amul products.

Sampling of product at the health clinic.

Adequate campaign to support the above.

5.

SUGGESTION TO INCREASE THE SALES OF NUTRAMUL

Improve the overall quality of the product, taste solubility, aroma colour etc.

Improve the pack design.

Build a new image of the productthrough adequate campaign and

advertisement.

Increase the price in par with the competitor and give better consumer
schemes.

To bring awareness among the school kids by conducting creative competition

and awarding them suitably. Simultaneously conducting sampling of the
product.

To hold stalls in rural melas to capture the rural market.

If possible, come out with smaller packs.

Army supplys should be of the existing pack and the civilian market pack
should be of improved quality to prevent it from infiltration.

Regular advertisement in frequently watched channels to fortify the image.

BIBLIOGRAPHY
1. Mathew Vinod, Amul dishes more for India to taste, Hindu Business Line, August 8,
2001
2.

Amul plans to enter fast food market, The Financial Express, July 18, 2001.

3. Zachariah Reeba, Amul to restructure product portfolio, Business Standard, March 6,

2001.
4. www.coop/founders/amul.asp
5. 25th Annual Report 98-99.
6. 26th Annual Report 99-00.
7. 27th Annual Report 00-01
8. 28th Annual Report 01-02.
9. 29th Annual Report 02-03.
10. 30th Annual Report 03-04.
11. 31st Annual Report 04-05.
12. The Amul India Story, Tata McGraw Hill, New Delhi.
13. Harward Business School(1998). Amul and Indias Dairy Development Board,
Harward University Press.

RANGE OF PRODUCTS