SUMMER INTERNSHIP

PROJECT
As partial fulfilment of requirement for the Master in Management Studies
program
Report on identifying market condition, market potential and placement of
Amul Fresh Products including Amul Pro and understanding consumer
behaviours.
Submitted to:Anjuman-I-Islams Allana Institute of Management Studies
Submitted by:Wasim Nizamuddin Shaikh
Div-A Roll No-52
Under the Guidance of
Mr. Rohit Shetty
Territory Sales Officer
Gujarat Co-operative Milk Marketing Federation Ltd. (AMUL)
&
Under the Mentorship of
Prof. Awesh Bhornya
For the Academic Year
2012-2013

CERTIFICATE
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This is to certify that Mr. Wasim Nizamuddin Shaikh, has completed her summer internship
at GCMMF Ltd (AMUL), and has submitted this project report entitled Identifying market
condition, promotion, placement of Amul Pro and Amul Fresh Products and a study of
consumer behaviour, towards partial fulfilment of the requirements for the award of the
Master in Management Studies.
This Report is the result of his own work and to the best of my knowledge no part of it has
earlier comprised any other report, monograph, dissertation or book. This project was carried
out under my overall supervision.
Date:
Place:

---------------------------------Internal Faculty Guide

ACKNOWLEDGEMENT

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The satiation and euphoria that accompany the successful completion of the project
would be incomplete without the mention of the people who made it possible.
I would like to take the opportunity to thank and express my deep sense of gratitude to
my corporate mentor Mr. Rohit Shetty and my faculty mentor Prof. Awesh Bhorny. I
am greatly indebted to both of them for providing their valuable guidance at all stages
of the study, their advice, constructive suggestions, positive and supportive attitude and
continuous encouragement, without which it would have not been possible to complete
the project.
I would also like to thank Mr. Sameer Bhiwapurkar (Senior Marketing Executive) and
our institutes Director Dr. Lukman Patel in spite of their busy schedule they has cooperated with me continuously and their indeed valuable contribution and guidance has
been certainly indispensable for my project work.
I am thankful to Mr. Alam Parvez (Branch Manager) for giving me the opportunity to
work with GCMMF Ltd. AMUL and learn.
I owe my wholehearted thanks and appreciation to the entire staff of the company for
their cooperation and assistance during the course of my project. I hope that I can build
upon the experience and knowledge that I have gained and make a valuable
contribution towards this industry in coming future.

TABLE OF CONTENT

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Sr No.
1

2
3

Topic
Executive summary
Introduction:
Need of the study
Objective of the study
Organisational Background
Literature Review:
Current scenario
Supply chain management
Distribution channels
Quality control
Products Features and Competitor Analysis

Research methodology
Research design
Sources of data
Data collection method
Sample size
Study of Distributor and Retailers

Study of Consumers behaviours

Experiences/Learning during project

10

Conclusion

11

Limitation

12

Recommendation

13

Reference

14

Annexure

EXECUTIVE SUMMARY

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Pg No.

The project was started on 2nd of May for 8 weeks. The main aim of project was to find out
the overall market condition, market potential for Amul Masti Dahi, Flaavyo, Pro Life
Lassee, Amul Pro and Paneer and placement of Amul Fresh Products (Amul Masti Dahi,
Flaavyo, Pro Life Lassee and including Amul Pro) and understanding the competitor analysis
for Amul Masti Dahi, Amul pro, Flaavyo, Pro Life Lassee in Ulhasnagar located in Thane.
The first part of my project involves the study of distributor allocated to me and Identification
of their problem areas and helping them in order to increase sale. It also involves a study of
retailers for better understand the grievances; identify the gaps, in order to increase sales of
Amul Pro and of Amul Fresh Products. For this I used the method of personal interviews and
questionnaires. For this I visited around 900 retail outlets in the area, understand the problems
faced by them, had try to solve them and also had made the promotion and placement of
Amul Pro and AFPs. I was also had to find out new retail for APO (Amul Preferred Outlet)
and convince them to sell Amul products by showing them the opportunity of getting attached
with a big FMCG brand like Amul and increase the customer base. I was successful in
convincing retailer for placement of Amul Pro and of AFPs and a number of new retail sale
points were developed and the sale was increased For Amul Pro and of Amul fresh product.
The second part of my internship was free sampling of Amul pro and Flaavyo and the study
of consumer attitude towards Amul fresh products including Amul Pro or more specifically
the factors affecting the decision of purchase of these Products. For this a sample of 200
consumers was taken and a factor analysis was carried on to find the decision making factors.

INTRODUCTION
Need of the study

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The project was an attempt to increase the sales for Amul Pro and of Amul fresh products,
knows the reasons behind low sales in the city for the mention products. In doing so firstly
the grievances of the distributors and the retailers were required to be solved in order to
encourage them for push sales. Secondly a study of consumers decision making factors is
required in order to understand their priorities which can be worked upon. For this purpose a
research is to undertaken to find out the market scenario. With the help of the responses given
by the retailers, consumers and data analysis, the company will be able to understand its
strengths, weakness, opportunities and threats. The survey report submitted by me will assist
the company to take right decisions to increase the turnover and market share.
Objective of the study
The objectives of the study are the following:1. The main objective of this project was to promotion and placement of Amul Pro and
of Amul fresh products
2. To study the distribution channel in the retail chain of Amul
3. To identify the issues related to retailers and distributors
4. To find and set up new APO for the area
5. To study Amul positioning in the mind of the consumers vis--vis competitors in case
of mention products
6. To find out the factors that affect consumers decision to purchase Amul products
7. Suggesting viable recommendations to be implemented in the area

QRGANISATION BACKGROUND

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Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. The word
Amul is derived from the Sanskrit word Amulya , meaning invaluable. The co-operative is
also sometimes referred to as Anand Milk Union Limited.
Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3 million milk
producers in Gujarat.
Amul spurred India's White Revolution, which made the country the world's largest producer
of milk and milk products. In the process Amul became the largest food brand in India and
has also ventured into markets overseas.
Dr Verghese Kurien (26 November 1921 9 September 2012), founder-chairman of the
GCMMF for more than 30 years (19732006), is credited with the success of Amul.
Dr Verghese Kurien was a renowned Indian social entrepreneur and is best known as the
Father of the White Revolution. He founded around 30 institutions of excellence (like
AMUL, GCMMF, IRMA, NDDB) which are owned, managed by farmers and run by
professionals. As the founding chairman of the Gujarat Co-operative Milk Marketing
Federation (GCMMF), Kurien was responsible for the creation and success of the
Amul brand of dairy products. A key achievement at Amul was the invention of milk powder
processed from buffalo milk (abundant in India), as opposed to that made from cow-milk, in
the then major milk producing nations. His achievements with the Amul dairy led Prime
Minister Lal Bahadur Shastri to appoint him as the founder-chairman of National Dairy
Development Board (NDDB) in 1965, to replicate Amul's "Anand model" nationwide.

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MISSION STATEMENT
GCMMF endeavour to satisfy the taste and nutrition requirements of the customers, of the
world through excellence in marketing by their committed team. Through co-operative
networking, they are committed to offer quality products that provide best value for money.
VISION STATEMENT
Amuls vision is to provide more and more satisfaction to the farmers, their customers,
employees and distributors.

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History
The Kaira District Co-operative Milk Producers' Union Ltd. was registered on 1 December
1946 as a response to the exploitation of marginal milk producers by traders or agents of the
only existing dairy, the Polson (brand) dairy, in the small town of Anand (in Kaira District
of Gujarat).Milk producers had to travel long distances to deliver milk, which often went sour
in summer, to Polson. The prices of buffalo and cow milk were arbitrarily determined.
Moreover, the government at that time had given monopoly rights to Polson to collect milk
from Anand and supply it to Bombay city. Angered by the unfair trade practices, the farmers
of Kaira approached Sardar Vallabhbhai Patel under the leadership of local farmer
leader Tribhuvandas K. Patel. He advised them to form a cooperative and supply milk
directly to the Bombay Milk Scheme instead of Polson (who did the same but gave them low
prices).He sent Morarji Desai to organise the farmers.
In 1946, the milk farmers of the area went on a strike which led to the setting up of the
cooperative to collect and process milk. Milk collection was decentralized, as most producers
were marginal farmers who could deliver almost 12 litres of milk per day. Cooperatives
were formed for each village too.The Cooperative was further developed and managed by Dr.
Verghese Kurien along with H.M. Dalaya. Dalaya's innovation of making skim milk powder
from buffalo milk for the first time anywhere in the world and a little later, along with
Kurien's help, making it on a commercial scale, led to the first modern dairy of the
cooperative at Anand, which would compete against established players in the market.
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to
Anand's neighbourhood in Gujarat, and within a short span, five unions in other districts
Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up. In order to combine
forces and expand the market while saving on advertising and avoid competing against each
other, the GCMMF, an apex marketing body of these district cooperatives was set up in 1973.
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The Kaira Union which had the brand name of Amul with it since 1955 transferred it to
GCMMF.

In June 2013, it was reported that the Kaira District Cooperative Milk Producers Union
Limited, better known as Amul Dairy, had signed a tripartite agreement to start a dairy plant
in Waterloo village in upstate New York. The plant will initially manufacture paneer and
ghee. Amul will utilize an existing dairy plant owned by New Jersey-based NRI Piyush Patel
for manufacturing. The plant is strategically located, as it close to supply centres from where
raw material is procured, and is also near New Jersey, which has a large Indian population.
Amul said that it will be able to produce and supply Amul products in the US as well as
Canada, and export it to Europe, under the arrangement.

Company info.
The GCMMF (AMUL) is the largest food products marketing organisation of
India. It is the apex organisation of the Dairy Cooperatives of Gujarat.
Over the last five and a half decades, Dairy Cooperatives in Gujarat have
created an economic network that links more than 3.1 million village milk
producers with millions of consumers in India.
The cooperatives collect on an average 9.4 million litres of milk per day
from their producer members, more than 70% of whom are small,

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marginal farmers and landless labourers and include a sizeable population

of tribal folk and people belonging to the scheduled castes.
The turnover of GCMMF (AMUL) during 201011 was 97.74 billion
(US$1.7 billion). It markets the products, produced by the district milk
unions in 30 dairy plants. The farmers of Gujarat own the largest state of
the art dairy plant in Asia Mother Dairy, Gandhinagar and Gujarat which
can handle 3.0 million litres of milk per day and process 160 MTs of milk
powder daily.
On 18 Aug 2012, Vipul Chaudhary of Mehsana district's milk cooperative
was elected chairman of GCMMF, following a court's intervention.

The Amul brand

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly
50 sales offices spread all over the country, more than 5000 wholesale dealers and more than
700000 retailers.
Amul became the world's largest vegetarian cheese and the largest pouched-milk brand.
AMUL is also the largest exporter of dairy products in the country. AMUL is available today
in over 40 countries of the world. AMUL is exporting a wide variety of products which
include whole and skimmed milk powder, cottage cheese (Paneer), UHT milk, clarified butter
(Ghee) and indigenous sweets.
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The major markets are USA, West Indies, and countries in Africa, the Gulf Region,
and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China, and others
such as Mauritius, Australia, Hong Kong and a few South African countries. Its bid to enter
the Japanese market in 1994 did not succeed, but it plans to venture again.
In September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.
In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The
Brand Trust Report, published by Trust Research Advisory. rediff.com; "India's top 20
brands: Amul is No. 1"

Distribution Network:-

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Mumbai Fort Branch Management Hierarchy

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AMUL PRODUCT MIX & PRODUCT LINE

Bread spreads

Amul Butter, Amul Lite, Delicious Table Margarine

Cheese Range

Amul Pasteurized Processed Cheddar Cheese, Amul Processed Cheese

Spread, Amul Pizza (Mozarella) Cheese,Amul Emmental Cheese, Amul
Gouda Cheese, Amul Malai Paneer (cottage cheese), Utterly Delicious Pizza

Fresh Milk

Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk 4.5%

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Fat, Amul Taaza Toned Milk 3% fat,Amul Slim & Trim, Amul Cow Milk
UHT Milk Range

Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza 1.5% fat
Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream

Milk Powders

Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar Skimmed
Milk Powder, Amulspray Infant Milk Food, Sagar Tea and Coffee Whitener

Milk Drink

Amul Kool Flavoured Milk, Amul Kool Cafe, Amul Kool Koko,Amul Kool
Millk Shaake, Amul Kool Chocolate Milk, Nutramul Energy Drink

Health Drink

Stamina Instant Energy Drink, Amul Pro

Brown Beverage

Nutramul Malted Milk Food

Curd Products

Amul Masti Dahi (fresh curd),Amul Masti Spiced Butter Milk ,Amul
Lassee, Amul Flaavyo Yoghurt

Pure Ghee

Amul Pure Ghee, Sagar Pure Ghee

Sweetened Condensed
Milk

Amul Mithaimate

Mithaee Range (Ethnic

Amul Shrikhand, Amul Mithaee Gulabjamuns, Amul Basundi,Avsar Ladoos
Sweets)
Ice-cream

Sundae Range, probiotic, ,sugarfree and probiotic

Chocolate &
Confectionery

Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul Chocozoo, Amul
Bindass, Amul Fundoo

SALES TUNOVER (from 1994-95 to 2012-2013)

Sales Turnover

Rs (in millions)

US $ (in millions)

1994-95
1995-96

11140
13790

355
400

1996-97

15540

450

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1997-98

18840

455

1998-99

22192

493

1999-00

22185

493

2000-01

22588

500

2001-02

23365

500

2002-03

27457

575

2003-04

28941

616

2004-05

29225

672

2005-06

37736

850

2006-07

42778

1050

2007-08

52554

1325

2008-09

67113

1504

2009-10

80053

1700

2010-11

97742

2172

2011-12

116680

2500

2012-13

137350

2540

AWARDS

GCMMF wins the SAP Award for Customer Excellence (SAPACE) 2013 under the
category of "Best Run Award in Finance"

ET-Corporate Citizen Award of the Year 2010-11 to GCMMF

Amul receives Green Globe Foundation Award

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Dr. V.Kurien honoured with Life Time Achievement Award

GCMMF receives Srishti's G-Cube Award 2010

Amul Bags International Dairy Federation Award

Amul Bags Srishti G-cube Award For Good Green Governance 2009

Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit

Ramkrishna Bajaj National Quality Award 2003

Qimpro Gold Standard Award - 2003

Amul the Taste of India (GCMMF) Receives International CIO 100 Award For
Resourcefulness

Rajiv Gandhi National Quality Award - 1999

LITERATURE REVIEW

Current Scenario
The distributor allocated to us was operating in Ulhasnagar city. So as per my survey we can
say that Amul dairy products have a present market share of around 70% in Ulhasnagar and
total sells turnover of around Rs. 45 lakh over a month, with more than 1100 retail outlet. It
has huge advantage over its competitor as it has a brand name. The total sales turnover of
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present scenario should be between 60 to 65 lakh. Before the entrance of the competitor like
Gowardhan, Mother Dairy, Warana etc, the total market share of Amul was 90% in this area.
However since last three years the sale has shown declining trends.

Supply Chain Management

The products are supplied from production units to distributor on weekly basis and from
distributor it is distributed in 18 beats handle by three salesmen. So there are no problems
related to SCM.

Distribution network

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Amul products are deliver to distributor on weekly basis and after these salesmen takes the
order from retailers and after one day the products are placed in retailers outlet.
Quality Control
Stringent quality control methodologies are employed in G.C.M.M. Ltd (AMUL)

The milk is tested for adulterations and quality at the time of collection from the
farmers.
The Milk that comes from the collection points to the Mother Dairy plant is ensured
to have a temperature of not more than 4C and is subjected to 15 product and quality
checks.
The Products is checked repeatedly after each processing phase and the temperature is
judiciously maintained less than 4C always.
The temperature of the delivery trucks is always maintained less than 4C.
Since all the employed processing procedures are automated, no contamination by
human hands takes place.
There are norms set by company to be followed by distributors which help the Amul
products from spoiling and damages.

PRODUCTS FEATURES & COMPETITOR ANALYSIS

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Amul Pro

Amul PRO is a malt based milk additive, which not only enhances milks nutritive value but
also makes milk a very tasty drink for people of all ages, especially kids, who need milk and
nutrition for healthy growth. It comes from the House of Amul, the brand which is known all
over for providing quality products at value for money price.
SHELF LIFE 12 months

Survey Report
o As in the area allocated to us, Amul pro was not placed in many outlets, so I
convinced many retailers have disclose the qualities of Amul pro in front.
o Have made the placement in around 210 stores
o As per market survey most of the retailers were not aware of Amul Pro. As
there was no promotional strategy adopted
o Consumers are also not aware of Amul pro
o As there were few stores where amul pro was placed one year before but there
sales were slow and many were on the merger of replacement

Competitors

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Product
As can been seen in below table as Whey Protein is included only in Amul Pro, here is
the place where Amul Pro can have better chance of capturing market.

Product
Bournvita
Amul Pro
Horlicks

Component
27 essential nutrients and DHA
27 essential nutrients, DHA and Whey Protein
27 essential nutrients and DHA

o 27 Essential Nutrients (proteins, vitamins and minerals): Complete Wellness

o DHA (Docosahexaenoic Acid): Brain Development
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o Whey Protein: Muscle building & Immunity

Price
As the method of price is consider Amul Pro stand first with comparatively low price
as compare to the competitor. As can be seen in the table, price is the factor which can
help Amul Pro to capture market. As man problem with Amul Pro is low promotion
and advertisement adopted by company. As if company increase the Amul Pro rate by
Rs.5 and this amount can be used for advertisement and other promotional activity it
can help in to capture more market by Amul Pro. As Amul is known by its name, it
will surely affect its growth.
Product
Bournvita
Amul Pro
Horlicks
Complan

Rate for 500gms jar

Rs. 187
Rs. 150
Rs. 220
Nearby Rs. 190

Available in
75gms, 500gms, 1kg.
50gms, 200gms, 500gms.
75gms, 500gms, 1kg.
75gms, 500gms, 1kg.

Place
Amul Pro almost available in all states

Promotion
Here is the place where Amul Pro is lacking behind, due to which retailers and
costumers are not aware of Amul Pro. To stand in front of the competitors who spend
lots on advertisement and promotional activities. Amul Pro also needs to come with
same strategy.
As can be seen Amul pro have more qualities as compare to competitor. So if proper
promotional strategies are adopted Amul Pro will definitely have capacity to capture huge
market.

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Amul Masti Dahi and Amul Prolife Lassee

Dahi or Curd plays a key role in the Indian diet and in preparation of delicious dishes
like Dahi Wada, Dahi BatataPuri, Dahi Rice, Dahi Idli, Dahi Raita, Kadhi and Muglai Food.
Dahi and Lassee is well known for its nutritive values. Making fresh Dahi and Lassee is
cumbersome, time consuming chore and can cause great embarrassment to the house wife
when it is not prepared properly. Dahi and Lassee prepared by local shop owners or at home
varies in terms of quality & culture used.
Amul Dahi and Amul Lassee are prepared in
controlled conditions i.e. maintaining proper temperatures to grow beneficial bacteria and to
avoid growth of harmful bacteria. It is difficult to maintain controlled conditions at Home or
at local shop level.
Many times the quality of Dahi available from the local market is far from satisfactory
and often found to be contaminated as the culture used do not contain 100% beneficial
bacteria. AMUL Masti Dahi is a pasteurized product i.e. free from unwanted bacteria.

SHELF LIFE 15 Days for Lassee and 7 days for Dahi

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 Overall Report
o As Amul Masti Dahi and Amul Prolife lassee was already in the market since
many years. So mostly, all retailers and consumers are aware of it. The flow of
Amul dahi and lassee was good till last year, but due to entrance of new
competitor and strategy adopted by them affected the sales of Amul lassee and
dahi.
o I was successful in placing Amul Masti Dahi and Amul Prolife Lassee in many
store where it was not placed earlier.
o Retailer were keeping the dahi/lassee of competitor in large quantity compare
to Amul dahi lassee the reason behind these was, competitor were offering
more margin to retailer, giving them various schemes and were also providing
replacement over lassee and dahi.
o There was demand for amul dahi and amul lassee was good, but due to local
area competitor it sales was affected. As seen after every twenty shops there
were outlet of Dahi and lassee which make dahi and lassee in there on shop.
So consumers usually prefer loose dahi and lassee, reason behind these was
freshness (can seen in the consumer study).

Competitors

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Product
The quality and component of Amul Masti Dahi and Amul Lassee was much better
than the competitors, also free from unwanted bacteria.

Price
Products
Gowardhan
Amul

Price 200gms Rs.

(Dahi)
18
18

Margin to retailers
on 200gms Rs.
2

Warana

18

Mother Dairy

20

Other local players

20 Self Made)

As can be seen the price of Dahi of competitors are similar, but margin provided by
competitors to retailers are much higher as compare to the Amul Masti Dahi. Also
retailers prefer to keep and promote those products that offer greater margin. Same is
the case with Amul lassee.
In spite of lower margin, due to demand of Amul Dahi and Amul Lassee in the market
retailers are force to keep Amul Dahi and Lassee.

Place
Amul Masti Dahi and Amul Lassee are available in almost all the states where there
are demand for lassee and dahi.

Promotion
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Amul are doing more promotional activities than the competitors for dahi and lassee.
Companies supply flyers, hoardings etc. to the retailers. Also there are no much need
for promotion of Amul Masti Dahi and Amul Lassee, as many consumers are aware of
it and words of mouth plays major role in case of Amul Dahi and Lassee

Many times the quality of Dahi available from the local market is far from satisfactory and
often found to be contaminated as the culture used do not contain 100% beneficial bacteria.
Amul Masti Dahi is a pasteurized product i.e. free from unwanted bacteria. If these message
are conveyed to the consumers by way of promotional activities. More consumers can be
diverted from local area competitor towards Amul Dahi and Lassee
The areas where companies are lacking behind are low margin provided to the retailers. If
this problem is solved the market share for Amul Dahi and Lassee will show upward trend.

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Amul Flaavyo Yoghurt

Amul Flaavyo is a flavoured dahi

Product Feature
o
o
o
o
o
o

Tasty, Healthy and refreshing treat for all age people.

Contains live probiotic bacteria which helps digestion and improve immunity.
Made with special culture to give a smooth, mild acidic taste.
It is made from natural ingredients.
Fortified with essential vitamins.
Available in five flavours namely Mango, Pineapple, Strawberry, Vanilla and
Misti Doi.

Product Application
o As a healthy dessert
o For on the go consumption.
o Available in Gujarat and Maharashtra

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SHELF LIFE 15 days

Survey Report
o Retailers were not aware. As it is new in the market, after describing its
qualities to the retailers, I was successful in placing it in more than 30 retail
outlets.
o There should be more promotional strategy for the awareness of Flaavyo
among the consumers and also for retailers. Retailers were also not aware of
Amul Flaavyo.
o As seen retailers keep only those products, whos advertisement are there and
for which various promotional strategy are adopted by the company.

Competitors
o As per my research there were no competitor products when it comes to Amul
Flaavyo. So company has greater chance of higher sales for Flaavyo if proper
steps are taken.

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Amul Paneer

Only market potential in case of Amul Paneer was required to conducted in the area allotted

Survey Report
o As seen the total market potential that Amul Paneer can capture in these area
was in between 20% to 25%
o The reason behind these low market potential was, as after every twenty shops
there were outlet of Dahi, lassee and paneer, which make paneer in there on
shop by which is self made and as per consumer they prefer fresh paneer.
Amul Paneer has a expire day of fifteen days

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SWOT

Strengths

Weaknesses

1. High brand equity and top of the

mind brand
2. Economic of Scale
3. Strong Management
4. Strong network Indias largest food
brand, trusted for its quality
5. Number of popular milk products
like ice cream, ghee, butter, paneer,
dahi, milk, etc. Products available at
affordable price
6. Market leader in butter segment
7. Responsible for white revolution in
India
8. A popular mascot in the Amul girl
Opportunities

1. Low market share for chocolates,

2.

3.
4.
5.

Threats

1. Introduce new products in the

chocolate segment
2. To tap the untapped market, increase
its reach in rural markets
3. Advertisement
and
Promotion
strategy for new products
4. Rise in purchasing power of Indian
people

Summer Internship Report MMS

Amul Pro and AFPs in the allotted

area.
Strong competition from international
& domestic players in the ice cream
segment means limited market share
Low margin provided to retailers as
compare to competitors products
No replacement
Advertisement only for few products

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1. 1.Strong
competition
from
international players
2. 2.Economic slowdown and inflation

PROMOTION STRATEGIES ADOPTED

As Amul Masti Dahi and Amul Prolife lassee was known by consumers and there sales were
also good so my concentrate was mostly on Amul Pro and Flaavyo
Promotional strategies adopted were as follow:

Had convinced retailers to keep Amul Pro in such a place so that customers will have
direct eye contact with Amul Pro
Had done promotion outside various retail outlet, highlighting the Quality of Products
among various customers
Had done direct selling of Amul Pro and of Flaavyo to consumers outside retail stores
Distributed the pamphlet of Amul pro and Amul Fresh products
Have done the sampling of Amul pro outside the schools and sampling of Flaavyo in
hotels
Distributed discount coupon for Amul lassee and Flaavyo to the customers

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RESEARCH METHODOLOGY

Purpose
The basic purpose of this research is to find out the factors affecting the decision of the
consumer to purchase of Amul Pro and AFPs. . Problems faced by retailers
Problem
To find out problem is the first stage of the research process. It represents translating the
management problem into research problem. It is rightly said, A problem well defined is half
solved.
Consumers have faith in the brand image of Amul, still its losing share to competitors and
other local brands when it comes to Amul Dahi, Lassee etc.

Objectives
The objective of the study was to find the actual reason why there are low sales for Amul Pro
and AFPs
Sources of data
Primary data
Data collection method
Questionnaire and Personal Interviews

SAMPLE
Sampling Frame:
A Sampling frame consists of a list of item from which the sample is to be drawn.
The sample frame for this research constitutes the customers visiting retail outlets
Sample Size:

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The sample size of the research was 200 consumers and more than 700 retailers.

STUDY OF DISTRIBUTOR AND RETAILERS

This project was carried out Ulhasnagar city of Thane for analyzing present market condition
of amul products, understanding problem faced by distributor and retailer. The main focus of
project was to promote and place Amul Pro and Amul Fresh Products. First of all the problem
of distributor and retailer have to be understood.
As per distributor point of view:

Commission is less as compared to other competitive brand

Sales of Amul Pro and Amul Fresh Products can increase if company do
advertisement and other promotional activities
Average daily sales turnover nearby Rs. 1.5 lakh
Amul Butter, Amul Sagar Ghee, Amul Cheese, Amul Kool have highest sells in
Ulhasnagar
There are chances of increasing no of retailers if company will provide more margins
to them
There are no problem of leakages and packing
There are regular supplies from production units

Retailers study:
So as seen the distributor is not facing much of the problem. As then to look after
retailer problem, why there are low sales of Amul Pro and Amul Fresh Products, I use
method of personal interview and visited various retail outlets. The problems faced by
the retailer are mention below, due to which many retailer were not ready to keep
Amul Pro and Amul Fresh Products.

In some retail outlet there were irregular supplies of Amul Products by Distributor.

Due to low advertisement and promotional activities for Amul Pro and Flaavyo
retailers were not giving order for it.

Many products of Amul like Dahi, lassee do not require much advertisement because
consumer are aware of these products, but product like Amul pro and Flaavyo there
are low demand by consumer as they are not aware of these product.

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Retailers give orders only for the products which have demand in the market.

Sometime it happens that in between fresh products, expire products also lies in the
middle.

Margin problem as behind many products retailer get only 8% to 10% for e.g. the
price of the Amul butter was Rs 31, retailer price Rs. 29, retailer get less margin
behind the products.

Also many retailer face the problem over replacement as there was no replacement
provided by distributor to retailer, As Amul Fresh product has very less shelf life if it
is not sell within the expire date the retailer have to suffer loss.

Also price strategy of some products were affecting the retailers For e.g. price of
butter was Rs. 31, if consumer do not comes with change retailer have to give it for
Rs.30 . These were the overall problem facing by retailer in the area allocated.

Many retailers do not keep Amul Fresh products as do not have refrigerato0.r

Due to problem faced over other Amul product retailers do not give order for Amul
Pro and Amul Fresh Products.

After reporting these problems to distributor and to company they were solved to some extent
As seen there were not much problem related to Amul Dahi and Amul Lassee. The main
problem that slows the sales of Amul pro and of Flaavyo was awareness, as consumers were
not aware of the products, so it became difficult for the retailer to sell it .

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STUDY OF CONSUMERS BEHAVIOUR

For the study of consumer behaviour a research was conducted. The sample size for the
research was 200 consumers. A list of question in a questionnaire was prepared (refer
annexure)
Here are the responses:

Brand come to your mind when it comes to dairy products:

Govardhan; 8%

Others; 5%

Warana; 3%
Mother Dairy; 14%

amul; 71%

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Purchasing decision depends on:

Quality; 30%
Brand; 46%

Packing; 10%
Price; 14%

Which factors helpto make purchasing decision?

Retailers prefeence; 14%

WOM; 24%

Advertisment; 57%

Availability; 5%

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Number of consumer aware of:

180

30

20
Amul Pro

155

Flaavyo

Amul Masti Dhai

Amul Prolife Lassee

Which lassee/dhai you usually preferred?

Home made; 10%

Loose; 50%
Packed; 40%

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Why do you prefer loose lassee/dhai?

Price; 19%
Freshness; 51%
Quality; 31%

Interpretation
It has been noticed that many consumers of the area prefer loose dahi. Many consumer do not
see price, they look at freshness and quality when its come to dahi and lassee. As people are
not aware of hygienic condition needed to prepare dahi and lassee, if this message is
communicated to the people there is the chance to increase the sales of Amul Dahi and Lassee
in these area. Amul Dahi and lassee is also free from unwanted bacteria.

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Health drink preferred by you

5th Qtr; 19%
Bournvita; 38%
Boost; 19%
Amul Pro; 0%
Horlices; 23%

Why you prefer above mention drink?

4th Qtr; 7%
Price; 8%
Brand; 48%
Quality; 36%

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Purchasing decision for health depend upon

Word of Mouth; 10%

Childrens; 24%

Retailers; 2%

Advertisment; 65%

Interpretation:
As can been seen by the AMUL brand is famous among the customers and when it comes to
dairy product consumer mainly prefer Amul products. The main reason where company is
lacking behind is the awareness strategy for certain products. As seen in case of Amul Pro
costumers are not aware of it. Only 20% of total sample size knows about Amul pro. As there
are strong competition when it comes to health drinks, so if a strong promotional activity are
adopted it can boost the sales of Amul pro. As can been seen 48% prefer brand products.

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EXPERIENCES/LEARNING FROM THE PROJECTS

First thing I got to know that not only the needs of consumer but also the needs and
requirements of retailers must be understand and look after.
As for placement of the products, strong convincing power is needed
Advertisements and other promotional activities are the major factors behind sales
turnover over particular products.
Competitor strategy should be kept in mind and more benefit should be provided to
the retailers from competitor products.

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CONCLUSION
This project was about the understanding of the overall market condition of Amul in the area
allocated. It also include understanding the market potential for Amul Masti Dahi, Amul pro,
Flaavyo, Pro Life Lassee and Paneer and have also to make placement of these products in
various retails outlet. I was successfully in completing all the above requirement of the
project. As have solved the various problems faced by retailer and placed Amul Pro and
AFPs in many retail outlets so there was increase in sales of Amul Pro, Amul Masti Dahi,
Flaavyo and Pro Life Lassee. I have placed Amul pro in more than 300 retailer outlet But as
Amul pro was new product for this area and there was no awareness among consumer of
Amul Pro, so Amul pro outflow movement was slow from many retail outlet. Consumer
decision regarding the purchase of Amul Pro and Flaavyo are Advertisement, Awareness,
Taste and Packing. Awareness was created among costumers by way of distribution of
pamphlet and by way of sampling. As the final outcome of the project is that the parameters
which can increase sales for these products is that retailer should be provided with more
margin than the competitor products. As seen retailers keep products which offer greater
margin to them. The main problem of retailer was margin and replacement over the products.
Also more awareness strategy should be adopted by company. Company should spend more
on advertisement for products which are in the market but of which consumers are not aware.
As if these problems are solved the sales of Amul Pro, Flaavyo and other related products can
increased.

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LIMITATION

The limitation of the project is as follows:

Some of the respondents could not give their proper response due to lack of time.
which may affect the reliability and relevance of the study

It might be some retailer might have not disclosed the problem faced by them due fear
of distributor.

Due to low margin, no replacement and lack of promotional activities some retailers
have not given any response.

It might also be so that some respondents were not motivated enough to respond
properly although full attempt was made to keep it as unbiased as possible.

There was no provision of visiting cards for the summer trainees which hinder
communication at times

It was happen that orders were taken from retailers by me for Amul Pro and AFPs,
but there was no placement of order due to non availability of stock with distributor.

The duration of the project was short, so the scope of more in-depth evaluation was
not possible

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FINDINGS & RECOMMENDATIONS

The recommendations for the company for further growth and profit are as follows:

Amul is known by its brand. Amul products are liked by consumers, but there are
products like Amul Pro and Flaavyo of which consumers and also retailers are not
aware, so promotion with the help of boards, hoardings etc. and also it can advertise
in radio for Amul Pro and AFPs. This can help Amul products (Amul pro, Flaavyo,
Amul Paneer etc.) to capture market

Amul should come up with schemes for Amul Pro and for AFPs for customers and
retailers as it would be a real boost to the sales and also it will help the company to
get back its lost customers for e.g. In case of Amul Pro a small gift like toys, puzzle
games should be provided as free gift so that childrens can be attracted towards Amul
Pro.

During the survey it was found that some retailers were uninterested because they
were concerned about the storage problem if company provide schemes over
refrigerators it can help to capture more market.

It was also seen that due to low margin and problem over replacement some retailers
have shifted to competitors products

If dry ice boxes can be supplied free of cost, sale would be increased. Also it would be
economical and convenient. Later, if the retailer drops out, the box can be collected
back.

Company should provide replacement for various products it is the place where
company is lacking as compared to competitors.

As Amul is known by its brand, so if products price are raise by a rupee or two more
margin can be provided to retailer, resulting in increase sales for all products and also
it will help the company to get back its lost retailers, it can also help to overcome
replacement problem

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The online billing method for retailers should be adopted by company so that retailer
will not be overcharged (there were case of overcharging of bill by distributor)

There should be company visit to retail outlets once in six months so that, retailers
problems can be looked over and solved

The organisation should schedule these kinds of surveys on a more regular basis

The company should try to adopt a relatively short period incentive system on target
basis for salesman in order to make it more friendly and achievable more sales.

REFERANCE

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Books
Marketing Management
-

By Philips Kotler

Research Methodology
-

C.R. Kothari

Website
www.amul.com

ANNEXURE
Questionnaire
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CONSUMER
Name:Contact no. :Gender:Address:1. The brand comes to mind when it comes to purchase Dairy products?
a) Amul
b) Mother Dairy
c) Warana
d) Govardhan
e) Others
2. What do you see while purchasing?
a) Brand
b) Price
c) Packing
d) Quality

3. Which factors help you to make your purchasing decision?

a) Advertisement
b) Availability
c) Word of mouth
d) Retailers preference

4. Are you aware of:

a) Amul Pro
b) Flaavyo
c) Amul Masti Dahi
d) Amul Prolife lassee

5. Which lassee/dahi you usually preferred?

a) Loose
b) Packed
c) Home made
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(If ans. is b state which brand you prefer)

(If ans. is b directly go to Q no. 7)
6. Why do you prefer loose/homemade lassee/dahi?
a) Price
b) Quality
c) Freshness

7. Which health drink you usually prefer for your family?

a) Bournvita
b) Amul pro
c) Horlicks
d) Boost
e) Complan
8. Why you prefer above mention drink?
a) Brand
b) Quality
c) Price
d) Other reason
9. From where you get to know above mention health drink
a) Advertisement
b) Retailer
c) Childrens
d) Word of mouth
e) Other

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