1

PROJECT REPORT ON
“Market Analysis & Sales Development of Amul Milk”
This study was conducted from 8th June 09 to 8th August 09
At Gujarat Co-operative Milk Marketing Federation Limited
BY: PRASANTA KUMAR MOHAPATRA PGDM
OF
ASIAN SCHOOL OF MANAGEMENT A report submitted in partial fulfillment of the requ
irements of PGDM (2008-10)
Company Guide:
Mr. PRANIL JADHAV SENIOR EXECUTIVE (SALES) GCMMF Ltd. PUNE
Faculty Guide:
PROF. K K BHASIN
2
PREFACE
The PGDM programme is well structured and integrated course of business studies.
The main objective of practical training at PGDM level is to develop skill in s
tudent by supplement to the theoretical study of business management in general.
Industrial training helps to gain real life knowledge about the industrial envi
ronment and business practices. The PGDM programme provides student with a funda
mental knowledge of business and organizational functions and activities, as wel
l as an exposure to strategic thinking of management.
In every professional course, training is an important factor. Professors give u
s theoretical knowledge of various subjects in the college but we are practicall
y exposed of such subjects when we get the training in the organization. It is o
nly the training through which I come to know that what an industry is and how i
t works. I can learn about various departmental operations being performed in th
e industry, which would, in return, help me in the future when I will enter the
practical field.
Training is an integral part of PGDM and each and every student has to undergo t
he training for 2 months in a company and then prepare a project report on the s
ame after the completion of training.
During this whole training I got a lot of experience and came to know about the
management practices in real that how it differs from those of theoretical knowl
edge and the practically in the real life.
In today’s globalize world, where cutthroat competition is prevailing in the mar
ket, theoretical knowledge is not sufficient. Beside this one need to have pract
ical knowledge, which would help an individual in his/her carrier activities and
it is true that “Experience is best teacher”.
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CERTIFICATE
The following summer internship project report titled “MARKET ANALYSIS & SALES D
EVELOPMENT OF AMUL MILK” at Gujarat Co-operative Milk Marketing Federation Ltd.,
Pune from 8th June 2009 to 8th August 2009 is here by approved as a certified s
tudy in management carried out and presented in a manner satisfactory to warrant
it’s acceptance as a prerequisite for the award of post-graduate diploma in man
agement (PGDM). For which it has been submitted. It is understood that by this a
pproval the undersigned do not necessarily endorse or approve any statement made
, opinion expressed on conclusion drawn therein but approve the summer internshi
p report only for the purpose it is submitted.
Signature Prof. K.K BHASIN Faculty guide
Signature Mrs. K Madhavi Director
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CERTIFICATE
This is to certify that Mr. Prasanta Kumar Mohapatra, Roll No. A-7028 a student
of course PGDM from the institute Asian School of Management has done his summer
training at GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LIMITED, PUNE.
The project work entitled “MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK” has
done under the supervision of Mr. K.K. BHASIN faculty member of ASIAN SCHOOL OF
MANAGEMENT.
The project work embodies the original work done by Mr. Prasanta Kumar Mohapatra
during his summer project training period.
Signature Prof. K.K BHASIN Faculty guide
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ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for Gujarat C
o-operative Milk Marketing Federation Ltd. It has been an enriching experience f
or me to undergo my summer training at “GCMMF”, which would not have possible wi
thout the goodwill and support of the people around. As a student of “Asian Scho
ol of Management”, Pune I would like to express my sincere thanks too all those
who helped me during my training program.
I would like to express my gratitude to all those who gave me the encouragement
to complete this project. I would like to thank my college authorities and Direc
tor Mrs. Madhavi Khare, for providing me the opportunity to work with the one pr
estigious organization. I would like to give my heartily gratitude to the Mr. Pr
anil Jadhav, Senior Executive (SALES), GCMMF Ltd., Pune for having given me the
opportunity to do my project work in the organization and lighted my way of prog
ress with his guidance.
My sincere and deepest thanks to Mr. K.K. Bhasin, Faculty Member of ASIAN SCHOOL
OF MANAGEMENT, PUNE for having spared his valuable time with me and for all the
guidance given in executing the project as per requirements. I would like to gi
ve my special thanks to my parents, their love, support and blessing enabled me
to complete this Project work. However, I accept the sole responsibility for any
possible error of omission and would be extremely grateful to the readers of th
is project report if they bring such mistakes to my notice.
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DECLARATION
I hereby declare that the following project report titled “MARKET ANALYSIS & SAL
ES DEVELOPMENT OF AMUL MILK” at Gujarat Co-operative Milk Marketing Federation L
td., Pune is an authentic work done by me. It is to the best of my knowledge and
belief. This is to declare that all my work indulged in the completion of this
Project Report such as research, competitor analysis and sales promotion is a pr
ofound and honest work of mine.
Date:
Signature Mr. PRASANTA KUMAR MOHAPATRA
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-:CONTENTS:-
Sr. No.
Subject
Page No.
1 2 3 4 5 6 7 8 9 10 11 12
EXECUTIVE SUMMARY INTRODUCTION INDUSTRY & COMPANY PROFILE OBJECTIVE & SCOPE OF S
TUDY RESEARCH METHODOLOGY DATA PROCESSING & ANALYSIS OBSERVATION & FINDINGS LIMI
TATIONS CONCLUSION SUGGESTION & RECOMMENDATION BIBLIOGRAPHY & WEBLIOGRAPHY ANNEX
URE
9 12 16 43 45 51 68 71 73 75 78 80
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EXECUTIVE SUMMARY
9
In today’s competitive world while entering in the market it is very necessary t
o have good knowledge of the potential of a particular market. The information r
egarding the activities of competitor’s existing in the market so that we can pl
an our each activity according to that. It is also necessary to retain the exist
ing customers apart from attracting the new customers. The Project is concern wi
th the market analysis & sales development of Amul dairy milk in Pune city. The
project included as part of MBA Programme and the project is done from 8th June
to 8th August.
1.1 1.2
Title:
“MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY”.
Organization:
“Gujarat Co-operative Milk Marketing Federation (GCMMF), Anand, Gujarat”.
1.3
Objective:
The Primary objective of study was to find size of retail network of Amul Taaza
and Amul
Gold in specific areas of Pune city. In the study my intention was go through th
e retail network of Amul dairy milk to know retailers view about supply chain of
Amul dairy milk, to know the complaints of Amul dairy milk and to find the sugg
estions from retailers for more penetration of Amul dairy milk in Pune region. T
he secondary objective was to find customer response towards Amul milk. My aim w
as to go through the customers to know the interest of purchasing & using Amul m
ilk. Basically the study was for the demand of Amul milk among the customers. An
d also to know the complaints on Amul milk.
1.4
Research Methodology:
Research type was descriptive. The research was done through retailers. I have c
ollected the
primary data through questionnaire which was filled by retailers, customers. Que
stions were both open and close ended. The secondary data was collected from web
site www.amul.com.
Sampling done is nonprobability sampling. The type of sampling method was Judgme
nt sampling.
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1.5
Findings:
In Pune region there are around more players in of liquid milk exist. Those are
like Chitale,
Katraj, Krishnai, Mahanand, Amul, Warna, and many other local brands. As per the
findings CHITALE is the Market leader and having more market share. Awareness o
f Amul dairy milk among the retailers as well as consumers is average but accept
ance is low. The sale is totally depends on the retailers.
1.6
Data Analysis:
The data analysis has done area wise. It gives idea about the competitors of Amu
l dairy milk.
It gives information regarding their market share.
1.7
Conclusion:
It was concluded that Amul dairy milk i.e. Full Cream milk and Cow milk has a hi
gh
potential in the market and it is the known to its customers but still its accep
tance is comparatively low as other competitors present in the market, because p
erception of customers towards the product is wrong, most of the consumer contin
uously using other brand and they do not want to switch over other brand.
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INTRODUCTION
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2.1
CONTEXT OF THE TOPIC:
The dairy industries companies run mainly on the factors such as availability, s
ervice
frequency, affordability, taste and marketing. Availability is plays a vital rol
e because purchasing power is depend upon availability of that product, in case
distributors and retailers service matter a lot. Retailing includes all the acti
vity in selling goods or service directly to the customers or personal nonbusine
ss use .A retailer or retail store is any business enterprises whose sales volum
e comes primarily from retailing. Retailers are the part of milk marketing chann
els and perform the work of moving goods from producers to the customers. It ove
rcomes the time, place and possession gap that separates goods and service from
those who needs or wants them. Retailers as member of marketing channel perform
a number of key functions. Some functions (physical, title, promotion) constitut
e a forward flow of activity from the company to the customers; other functions
(ordering and payment) constitute a backward flow from customers to the company.
Still others (information, negotiation, finance and risk taking) in both direct
ions. The project delves into the workings from the distribution aspect of an FM
CG organization, in detail. AMUL, being an FMCG company, attaches a lot of signi
ficance to the distribution aspect of its business. The distribution channel of
AMUL holds a lot of potential in affecting the demand or sales of AMUL products
through delivery on time, delivery of variety of products, the retailerfriendlin
ess of the policies being set by the distributors and equitable distribution of
products to all the retail outlets in a particular region, to name a few. So, In
order to plan retail coverage we map out the positions of Amul outlets, Amul pa
rlors, and competitor’s outlets. This project was carried out in Pune city. For
analyzing and presenting information that is tied to geographical location, we d
ivided the city in different wards. By analyzing geographical representation and
sales data with spatial distribution Amul outlets, competitor’s outlets and the
density of others in an area, we identify unexplored area and plan location out
lets to increase its market penetration. Using such research we can ascertain th
e quality and depth of retail penetration in specific area. 13
Addition to this we carried out sales promotion activity through discount coupon
s. Sales promotion consists of diverse collection of incentive tools, most short
-term designed to stimulate and/or greater purchase of a particular product by c
onsumers or the trade. Whereas advertise offers a reason to buy, sales promotion
offers incentive to buy. Sales promotion includes tools for consumer promotion
(for example samples, coupons, prizes, cash refund, warranties, demonstrations,
contest); trade promotion (for example buying allowance, free goods, merchandise
allowances, co-operative advertising, advertising and display allowances, deale
r sales contests); sales force promotion (for example bonuses, contests, sales r
allies). Sales promotion efforts are directed at final consumers and designed to
motivate, persuade and remind them of the goods and receives that are offered.
2.2
Promotion Tool Used:
The consumer promotion tools mean the promotion activities, which are beneficial
for
consumers as well as company. Such as price discounts, samples, cash refund, pre
miums, prizes, cross promotion and coupons etc. We decided to use discount coupo
ns. We distributed it among customers and validity kept seven days from issued.
• • • • •
The consumers are seduced to buy the product. It helped to increase sales volume
. Consumer can get good quality of good in cheaper price. It can attract the new
consumers and customers buying other milk brands. Attract brand switchers, who
are primarily looking for low price, good value or premiums.
• • •
Turn switcher to loyal users, It induced to make some subsequent purchases. Give
little permanent gain in market share.
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2.3
Need of Study:
Managers are always curious about the position of their company’s products in th
e market
which largely depend upon the company’s goodwill, and the position of their bran
d. In order to maximize the sale and profit, company must deliver outstanding sa
tisfaction to the retailers, wholesaler & customers. So market survey of retaile
rs, wholesalers & customers, chart out the position of the company as compared t
o the competitors. It helps the organization to find out the brand being sold mo
st by the retailers along with their stocking and also consumer buying preferenc
es.
2.4
Statement of The Problem:
“MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY” It helps to stud
y all activities which can be used to influence large number of customers so as
to increase the sales of the Amul milk effectively”.
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INDUSTRY & COMPANY PROFILE
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3.1
Industry Profile:-
3.1.1 The World Dairy Situation:
According to a report published by International Dairy Federation (IDF) on the W
orld Dairy Situation 2007 the worldwide milk production is expected to grow at a
slower pace in 2007-08 and is estimated at 655 million tonnes, only 9 million t
onnes more than the production of 2006 – 2007. The strongest growth would be in
Asia, notably in China and India. Milk production is projected at 36 million ton
nes in China and 94.60 million tonnes in India. India would continue to be the l
argest milk producer, followed by the US, with projected production of 82.60 mil
lion tonnes.
Major changes are not expected in dairy products basket. World butter production
increased for two years, in 2004 and 2005 and then declined in 2006-07. It is e
xpected to decline again in 2007-08. Industrial cheese production is continuing
to grow. The major cheese producing regions are Europe and North America and bot
h areas are expected to have a faster growth rate.
The production of condensed and evaporated milks is subject to a declining trend
for many years in the developed market. It has been replaced by many other dair
y products, especially liquid milks of UHT type, coffee cream and coffee whitene
r including some of the non-dairy origin.
World trade in dairy products after a period of relative stagnation, started rec
overy in the second half of 2006-07 and it continued in the first half of 2007-0
8. The recovery is due to prosperity resulting from economic demand. However, th
e bullish price situation is not likely to continue long and would level down.
Export of butter and butter-oil recovered in 2006-07 and this recovery continued
in early 2007-08. The total volume of the world trade in cheese has accelerated
and this trend is likely to continue in the year 2008.
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The outlook for the trade in dairy commodities for 2007-08 appears bright. Howev
er, since the new market equilibrium, in respect of prices has to be found, the
question is whether international trade in dairy products will continue its grow
th in 2007-08 at the same momentum as in previous years. Because of the price si
tuation in 2007-08, one may ask whether demand can follow the expected trends, b
ut it would be premature to expect stagnation in the trade. In established marke
ts, the potential for demand to reduce slightly can release the additional suppl
ies, which are needed to maintain the growth of trade.
3.1.2 Indian Dairy Industry -- A Profile:
India’s dairy sector is expected to triple its production in the next 10 years i
n veiw of expanding potential for export to Europe and the West. Morever with WT
O regulations expected to come into force in coming years all the develope count
ries which are amoung big exporters today would have to withdraw the support and
subsidy to their domestic milk product sector. Also India today is the lowest c
ost producer of per litre of milk in the world, at 27 cents, compared with the U
S’ 63 cent. Also to take advantage of this lowest cost of milk production and in
creasing production in yhe country multinational companies are planning to expan
d their activities here. Some of those milk producers have already obtained qual
ity standard certificates from the authorities. This will help them in marketing
their products in foreign countries in processed form.
The urban market for milk products is expected to grow at an accelerated pace of
around 33% per annum to around Rs.83, 500 crores by year 2010. This growth is g
oing to come from the greater emphasis on the processed food sector and also by
increase in the conversation of milk into milk products. By 2010, the value of I
ndian dairy produce is expected to be Rs 10, 00,000 million. Presently the marke
t is valued at around Rs7, 00,000mn.
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3.1.3 Co – Operative Unions:
Backward integration of the process led the cooperatives to advances in animal h
usbandry and veterinary practice. The system succeeded mainly because it provide
s an assured market at remunerative prices for producers milk besides acting as
a channel to market the production enhancement package. What s more, it does no
t disturb the agro-system of the farmers. It also enables the consumer an access
to high quality milk and milk products. Contrary to the traditional system, whe
n the profit of the business was cornered by the middlemen, the system ensured t
hat the profit goes to the participants for their socio-economic upliftment and
common good.
Recently the Indian cooperative movement got a much needed facelift. With compet
ition snapping at its heels, the sector which has been governed by arcane laws u
ntil the recent past will see a special provision inserted in the companies Act,
1956. All the cooperative unions will be rechristened cooperative companies; th
ey will come under the purview of the registrar of companies, instead of the reg
istrar of cooperatives.
Dairy cooperatives account for the major share of processed liquid milk marketed
in the country. Milk is processed and marketed by 170 milk producer’s cooperati
ve unions, which federate into 15 state co-operative milk marketing federations.
The dairy board s programmes and activities seek to strengthen the functioning o
f dairy cooperatives, as producer-owned and controlled organizations. NDDB suppo
rts the development of dairy co-operatives by providing them financial assistanc
e and technical better future for India s farmers. expertise, ensuring a
Over the years, brands created by cooperatives have become synonymous with quali
ty and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Raja
sthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those
that have earned confidence. customer
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-:Some of the major dairy cooperative federations include:-
• • • • • • • • • • • • • •
Andhra Pradesh Dairy Development Co-operative Federation Ltd (APDDCF) Bihar Stat
e Co-operative Milk Producers Federation Ltd (COMPFED) Gujarat co-operative Milk
Marketing Federation Ltd (GCMMF) Haryana Dairy Development Cooperative Federati
on Ltd. (HDDCF) Himachal Pradesh State Cooperative Milk Producers Federation Ltd
(HPSCMPF) Karnataka Cooperative Milk Producers Federation Ltd (KMF) Kerala Stat
e Cooperative Milk Marketing Federation Ltd (KCMMF) Madhya Pradesh State Coopera
tive Dairy Federation Ltd (MPCDF) Maharashtra Rajya Sahkari Maryadit Dugdh Mahas
angh (Mahasangh) Orissa State Cooperative Milk Producers Federation Ltd (OMFED)
Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF) Punjab State Cooperative
Milk Producers Federation Ltd (MILKFED) Rajasthan Cooperative Dairy Federation L
td (RCDF) Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF)
3.1.4 The Dairy Cooperative Network
• • • • Includes 170 milk unions Operates in over 338 districts Covers nearly 1,
08574 village level societies Is owned by nearly 12 million farmer members. Apar
t from making India self sufficient in milk, these dairy co-operatives have esta
blished our country as the largest milk-producing nation in the world.
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3.2
The Organization:
3.2.1 Introduction & History:
In the year 1946 the first milk union was established. This union was started wi
th 250 liters of milk per day. In the year 1955 AMUL was established. In the yea
r 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION.
This union selected the brand name AMUL in 1955. The brand name Amul means “AMU
LYA”. This word derived form the Sanskrit word “AMULYA” which means “PRICELESS”.
A quality control expert in Anand had suggested the brand name “AMUL”. Amul pro
ducts have been in use in millions of homes since 1946. Amul Butter, Amul Milk P
owder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul
Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in
India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of man
y things like of the high-quality products sold at reasonable prices, of the gen
esis of a vast co-operative network, of the triumph of indigenous technology, of
the marketing savvy of a farmers organization. And have a proven model for dai
ry development (Generally known as “ANAND PATTERN”). In the early 40’s, the main
sources of earning for the farmers of Kaira district were farming and selling o
f milk. That time there was high demand for milk in Bombay. The main supplier of
the milk was Polson dairy limited, which was a privately owned company and held
monopoly over the supply of milk at Bombay from the Kaira district. This system
leads to exploitation of poor and illiterates’ farmers by the private traders.
The traders used to beside the prices of milk and the farmers were forced to acc
ept it without uttering a single word.
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However, when the exploitation became intolerable, the farmers were frustrated.
They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activi
st in the freedom movement. Sardar Patel advised the farmers to sell the milk on
their own by establishing a cooperative union, Instead of supplying milk to pri
vate traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to ga
in his co-operation and help. Shri Desai held a meeting at Samarkha village near
Anand, on 4th January 1946. He advised the farmers to form a society for collec
tion of the milk.
These village societies would collect the milk themselves and would decide the p
rices at which they can sell the milk. The district union was also form to colle
ct the milk from such village co-operative societies and to sell them. It was al
so resolved that the Government should be asked to buy milk from the union.
22
However, the govt. did not seem to help farmers by any means. It gave the negati
ve response by turning down the demand for the milk. To respond to this action o
f govt., the farmers of Kaira district went on a milk strike. For 15 whole days
not a single drop of milk was sold to the traders. As a result the Bombay milk s
cheme was severely affected. The milk commissioner of Bombay then visited Anand
to assess the situation. Having seemed the condition, he decided to fulfill the
farmers demand. Thus their cooperative unions were forced at the village and dis
trict level to collect and sell milk on a cooperative basis, without the interve
ntion of Government. Mr. Verghese Kurien showed main interest in establishing un
ion who was supported by Shri Tribhuvandas Patel who lead the farmers in forming
the Cooperative unions at the village level. The Kaira district milk producers
union was thus established in ANAND and was registered formally on 14th December
1946. Since farmers sold all the milk in Anand through a co-operative union, it
was commonly resolved to sell the milk under the brand name AMUL.
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At the initial stage only 250 liters of milk was collected every day. But with t
he growing awareness of the benefits of the cooperativeness, the collection of m
ilk increased. Today Amul collect 11 lakhs liters of milk every day. Since milk
was a perishable commodity it becomes difficult to preserve milk for a longer pe
riod. Besides when the milk was to be collected from the far places, there was a
fear of spoiling of milk. To overcome this problem the union thought out to dev
elop the chilling unit at various junctions, which would collect the milk and co
uld chill it, so as to preserve it for a longer period. Thus, today Amul has mor
e than 150 chilling centers in various villages. Milk is collected from almost 1
073 societies. With the financial help from UNICEF, assistance from the govt. of
New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufactu
re milk powder and butter was planned. Dr.Rajendra Prasad, the president of Indi
a laid the foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru, the pr
ime minister of India declared it open at Amul dairy on November 20, 1955.
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3.2.2 Amul Secret Of Success:
The system succeeded mainly because it provides an assured market at remunerativ
e prices for producers milk besides acting as a channel to market the productio
n enhancement package. What s more, it does not disturb the agro-system of the f
armers. It also enables the consumer an access to high quality milk and milk pro
ducts. Contrary to the traditional system, when the profit of the business was c
ornered by the middlemen, the system ensured that the profit goes to the partici
pants for their socio-economic upliftment and common good. Looking back on the p
ath traversed by Amul, the following features make it a pattern and model for em
ulation elsewhere. Amul has been able to: Produce an appropriate blend of the po
licy makers farmers board of management and the professionals: each group apprec
iating its rotes and limitations.
Bring at the command of the rural milk producers the best of the technology and
harness its fruit for betterment.
Provide a support system to the milk producers without disturbing their agro-eco
nomic systems.
Plough back the profits, by prudent use of men, material and machines, in the ru
ral sector for the common good and betterment of the member producers.
Even though, growing with time and on scale, it has remained with the smallest p
roducer members. In that sense, Amul is an example par excellence, of an interve
ntion for rural change.
25
The Union looks after policy formulation, processing and marketing of milk, prov
ision of technical inputs to enhance milk yield of animals, the artificial insem
ination service, veterinary care, better feeds and the like - all through the vi
llage societies. Basically the union and cooperation of people brought Amul into
fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF IN
DIA. Amul (Anand milk union ltd.) is based on four hands, which are coordinated
with each other. The actual meaning of this symbol is co-ordination of four hand
s of different people by whom this union is at the top position in Asia.
First hand is of farmers, without whom the organization would not have existed.
Second hand is of processors, who process the row material (milk) into finished
goods.
Third hand is of marketer, without whom the product would have not reached the c
ustomers.
Fourth hand is of customers, without whom the products would have not carried on
.
26
3.2.3 GCMMF Overview:
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India s largest food pr
oducts marketing organisation. It is a state level apex body of milk cooperative
s in Gujarat which aims to provide remunerative returns to the farmers and also
serve the interest of consumers by providing quality products which are good val
ue for money. Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the l
argest Organisation in FMCG industry engaged in marketing of milk & milk product
s under the brand names of AMUL and SAGAR with an annual turnover exceeding Rs 5
000 crores. GCMMF is a unique organisation. It s a body created by Farmers, mana
ged by competent professionals serving a very competitive and challenging consum
er market. It is a true testimony of synergistic national development through th
e practice of modern management methods.
3.2.4 Vision:
GCMMF will be an outstanding marketing organization, with specialization in mark
eting of food and dairy products both fresh and long life with customer focus an
d IT integrated. The network would consist of over 100 offices, 7500 stockiest c
overing at least every Taluka. Head quarter servicing nearly 10 lakh outlets wit
h a turnover of Rs.10,000 Cr and serving several co-operatives. GCMMF shall also
create markets for its products in neighboring countries.
3.2.5 Mission:
We at GCMMF endeavor to satisfy the taste and nutritional requirements of the cu
stomer of the world through excellence in the marketing by our committed team. T
hrough co-operative networking, we are committed to offering quality product tha
t provides best value for money.
27
3.2.6 Organization Structure:
Organization Structure is divided into two parts: • • External Organization Stru
cture Internal Organization Structure
•
External Organization Structure
External Organization Structure is the organization structure that affects the o
rganization from the out side. State Level Marketing Federation
District Milk Product Union Ltd.
Village Milk Product Union Ltd.
Villagers
As we know, GCMMF is unit of Gujarat Milk Marketing Federation, which is a co-op
erative organization. The villagers of more than 10000 villages of Gujarat are t
he bases of this structure. They all make village milk producers union, district
level milk producers union and then a state level marketing federation is estab
lished. The structure is line relationship, which provides easy way to operation
. It also provides better communication between two stages.
28
•
Internal Organization Structure:
The following is internal organisation chart of Amul:
Organization Structure Chart
Chairman
Managing Director
General Manager
Ass. General Manager
Finance Dept.
Production Dept.
Marketing Dept.
Sales & Purchase Dept.
Personnel Dept.
Senior Manager
Senior Manager
Senior Manager
Senior Manager
Senior Manager
Finance Manager
Production Manager
Marketing Manager
Sales Manager
Personnel Manager
Accountant
Officer
Marketing Executive
Officer
P.R.F.
Officers
Supervisor
F.S.R.
Salesmen
Executive
29
3.2.7 Production Function:
Explosion of the production technology and changes in technical field is going t
o bring out revolution in the industry sector which eventually gives stand to st
udy and favors the come backing subject i.e. production and management. Producti
on and operation management is planning, organizing, staffing, directing and con
trolling of all the production system those portion of organization that convert
inputs into products and services. In general production system takes raw mater
ial, personnel, machines, buildings and other resources and produce products and
services. The core of production system is its conversion subsystem where in wo
rkers; raw materials are used to convert inputs into products and services. This
production department is at heart of the firm, as it is able to produce low cos
t products and superior quality in timely manners. Thus, there arises enormous n
eed of giving due importance to this department as a whole and a strong concrete
base being foundation pillars of a manufacturing organization, if the intention
is to succeed domestically and globally.
30
•
Operating Analysis-
Amul’s only source of raw material is Village Milk societies. Milk is brought fr
om such village milk societies every morning and evening. This milk is then sent
to the dairy plant. In the dairy plant the milk is processed i.e. it is made fr
ee from germs.
Milk Processing The entire process of milk can be divided into
following steps: Steps: Milk Processing Chart:
Collection of Raw-Milk Electronic Milk Test
Methyline Blue Reduction Test Purchasing And Standardizing Process
Separation Process
Quality Check
Packaging Process
Cold Storage
31
3.2.8 Distribution Network:
Most producers work with marketing intermediaries to bring their products to mar
ket. The marketing intermediaries make up a marketing channel also called distri
bution cannel. Distribution channels are sets of interdependent organizations in
volved in the process of making a product or service available for use or consum
ption. The Head Office of GCMMF is located at Anand. The entire market is divide
d in 5 zones. The zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kol
kata and Chennai. Moreover there are 49 Depots located across the country and GC
MMF caters to 13 Export markets. A zero level of channel also called a direct ma
rketing channel consists of a manufacturer selling directly to the final custome
rs. A one level channel; contains one selling intermediary such as retailer to t
he final customers. A two level channel two intermediaries are typically wholesa
ler and retailer. A three level channel are typically wholesaler, retailer and j
obber in between. GCMMF has an excellent distribution. It is its distribution ch
annel, which has made it so popular. GCMMF’s products like milk and milk product
s are perishable. It becomes that much important for them to have a good distrib
ution.
Distribution Chart
Products Agents Wholesaler Retailer Consumer
We can see from above figure that GCMMF distribution channel is simple and clear
. The products change hands for three times before it reaches to the final consu
mer. First of all the products are stored at the Agents end who are mere facilit
ators in the network. Then the products are sold to wholesale dealers who then s
ell to retailers and then the product finally reaches the consumers. 32
3.2.9 Managing Competition:
The Indian market is dominated by a large number of small local and regional pla
yers. There are an estimated 150 manufacturers in the organized segment, which a
ccounts for 30-35% of sales and about 1000 units in the unorganized segments of
the market. In the organized segment the significant brands are Kwality Walls ,
Vadilal, Amul, Havmor, Mother dairy and Baskins & Robbins. GCMMF is facing very
tough competition from both in and outside India. Amul combats competition from
its competitors by providing quality products at a price which its customers val
ue. Along with good quality products and reasonable price the packaging is also
very good. Most of its products are available in many flavors. Excellent adverti
sing backs its products and helps GCMMF (AMUL) to leave its competitors a tough
time. Also Amul has come out with Amul Parlours to cater to various segments of
customers. Amul has a very strong Brand Image in the Domestic market. Many produ
cts are exported by GCMMF.
3.2.10 Advertising by Amul:
Amul has two agencies that look after its entire range of products namely FCB Ul
ka and Da Cunha. FCB Ulka looks after a broad range of products namely, Amul Lit
e Breadspread, Amul Shrikhand, Amul Chocolates, Amul Paneer, Amul SnowCap Softy
Mix Ice cream, Amul/Sagar Ghee, Amul Infant Milk Formula 1 & 2, Sagar Tea and Co
ffee whitener, Amul Spray Infant Milk Food, Amul Mithaee, Amul Gulab Jamun, Amul
ya Dairy Whitener, Mithaimate Sweetened Condensed Milk, Amul Ice cream, Sagar Sk
immed Milk Powder and Amul Whole milk Powder. Da Cunha looks after the Amul butt
er. Da Cunha also prepares the very popular Amul butter billboard campaigns, whi
ch we see at various locations. Over and above the Amul butter, Da Cunha also lo
oks after the Amul Cheese, Cheese spread, Gouda Cheese, Emmental Cheese, Masti D
ahi and Buttermilk, Amul Slim-n-Trim, Amul Taaza and Amul Gold (all different br
ands of milk), Amul Fresh Cream, Amul Chocolate Milk, Amul Fresh Milk and Nutram
ul. FCB Ulka also looks after the corporate campaign. 33
3.2.11 Sales Turnover:
Sales turn over of GCMMF from 1994 to 2009:-
Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2
002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 3
7736 42778 52554 67113
US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504
3.2.12 Areas of Operation:
Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA, Ba
ngladesh, Australia, China, Singapore, Hong Kong and a few South African nations
. Other potential markets being considered include Sri Lanka.
34
3.2.13 Some Facts:
Members: No. of Producer Members: No. of Village Societies: Total Milk handling
capacity: Milk collection (Total - 2008-09):
13 district cooperative milk producers Union 2.79 million 13,328 11.22 million
litres per day 3.05 billion litres
Milk collection (Daily Average 2008-09): 8.4 million litres Milk Drying Capacity
: Cattlefeed manufacturing Capacity: 626 Mts. per day 3500 Mts per day
3.2.14 Achievement & Awards:
Amul: Asia’s largest dairy co-operative was created way back in1946 to make the
milk producer self-reliant and conduct milk- business with pride. Amul has alway
s been the trend setter in bringing and adapting the most modern technology to d
oor steps to rural farmers. Amul created history in following areas: First self
motivated and autonomous farmers “organization comprising of more than 5000000 m
arginal milk producers of Kaira District”. Created Dairy co-operatives at villag
e level functioning with milk collection centers owned by them. Computerized mil
k collection system with electronic scale and computerized accounting system. Th
e first and only organization in world to get ISO 9000 standard for its farmers
co-operatives. First to produce milk from powder from surplus milk. Amul is the
live example of how cooperation amongst the poor marginal farmers can provide me
ans for the socio-economic development of the under privileged marginal farmers.
35
AWARDS:-
Amul a co-operative society and its co-operation has led many different awards i
n its favour. Magsaysay award for community leadership presented in manila. Phil
ippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien
1964: “Padmabhusan” award given to Shri T.K. Patel 1965: “Padmshri” awarded was
given to V. Kurien, general manager, by the president of India. 1987: “Best Prod
uctivity” awarded by national productivity council for the year 1985-86 awarded
to Amul dairy. 1988: “Best Productivity” awarded for the second successive year
1986-87 by the president of India, Mr. R. Venkatrao to kaira union. 1993: “ICA”
Memenoto towards genuine and self sustaining cooperative worldwide ICA regional
office for Asia and pacific, New Delhi, 1996. 1999: G.B.Birla award. Moreover th
e Amul union has achieved the prestigious ISO 9001-2000 and HACCP Certificate an
d effects are got to obtain ISO 14000. 1999: Best of All" Rajiv Gandhi National
Quality Award for the year, 2003: The Gujarat Co-operative Milk Marketing Federa
tion Ltd. has emerged as the top scorer in the service category of the prestigio
us IMC Ramkrishna Bajaj National Quality Award. 2006-07: GCMMF has bagged award
for excellent performance in exports of dairy products from Agricultural and Pro
cessed Food Exports Development Authority (APEDA). 2007: Amul Pro-Biotic Ice-cre
am Gets No. 1 Award At World Dairy Summit.
36
3.3
List of Products Marketed:Bread spreads
• • •
Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter
Cheese Range
• • • • • • • •
Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizz
a (Mozarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda
Cheese Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned Utter
ly Delicious Pizza
Mithaee Range (Ethnic sweets)
• • • • • •
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul
Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix Avsar Lad
oos
Pure Ghee
• • •
Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee 37
UHT Milk Range
• • • • • • •
Amul Shakti 3% fat Milk Amul Taaza 1.5% fat Milk Amul Gold 4.5% fat Milk Amul Li
te Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk Amul Fresh Cream Amul Sno
wcap Softy Mix
Infant Milk Range
• • •
Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months abo
ve) Amulspray Infant Milk Food
Milk Powders
• • • •
Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Saga
r Tea and Coffee Whitener
Fresh Milk
• • • • • •
Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standa
rdized Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Ski
mmed Milk 0% fat Amul Cow Milk
38
Sweetened Condensed Milk Amul Mithaimate Sweetened Condensed Milk Curd Products
• • • •
Yogi Sweetened Flavored Dahi (Dessert) Amul Masti Dahi (fresh curd) Amul Butter
Milk Amul Lassee
Amul Ice creams
• •
Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)
Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Ba
dshahi Badam Kulfi, Shista Pista Kulfi)
• • •
Utsav Range (Anjir, Roasted Almond) Simply Delicious Range (Vanilla, Strawberry,
Pineapple, Rose, Chocolate) Nature s Treat (Alphanso Mango, Fresh Litchi, Anjir
, Fresh Strawberry, Black Currant)
• • •
Sundae Range (Mango, Black Currant, Chocolate, Strawberry) Millennium Ice cream
(Cheese with Almonds, Dates with Honey) Milk Bars (Chocobar, Mango Dolly, Raspbe
rry Dolly, Shahi Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista K
ulfi)
• • • • • • • •
Cool Candies (Orange, Mango) Cassatta Tricone Cones (Butterscotch, Chocolate) Me
gabite Almond Cone Frostik - 3 layer chocolate Bar Fundoo Range - exclusively fo
r kids SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple) Hea
lth Isabcool
39
Chocolate & Confectionery
• •
Amul Milk Chocolate Amul Fruit & Nut Chocolate
Brown Beverage
•
Nutramul Malted Milk Food
Milk Drink
•
Amul Kool Flavoured Milk
Health Beverage
•
Amul Shakti White Milk Food
Ready to Serve Soups
• •
Masti Tomato Soup Masti Hot & Sour Soup
Recently launched • Amul Ganthiya
40
PLANTS
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghe
e, milk butter etc.
Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Am
ul Ganthia and Amul lite.
41
Third plant is at Kanjari, which produces cattelfeed.
Fourth plant is at Khatraj, which engaged in producing cheese.
42
OBJECTIVE & SCOPE OF THE STUDY
43
4.1 Objectives of Project:
The main objective of the Study can be listed as follows
A. Primary Objective 1. To find size of retail network of Amul Taaza and Amul Go
ld in specific Pune city. 1. To find the problems faced by retailers in selling
and storing. 2. To collect the information about the competitors. areas of
B. Secondary Objective 1. To organize sales promotional activities to improve mi
lk selling. 2. To generate and secure consumer awareness.
4.2 Scope of Project:
The study carried out in Pune city so its scope is mainly limited to Pune city.
It gives information about the size of the retail network. It gives information
about the services given by distributor to their retailer. It gives information
about the competitors’ products. It will serve consumer in better manner. It pro
vides suggestions to the company to improve their products sales. It gives infor
mation about the sales promotion activities to improve the milk sale
44
RESEARCH METHODOLOGY
45
5.1
Research Methodology:
The research was conducted from 8th June, to 8th July, 2009. The research includ
e meetings
with the retailers, consumers and dealers. It included preparation of the questi
onnaire to be answered by above people for knowing the competitive position of A
mul in the milk market. The views of the above parties were recorded in the rese
arch as per the questionnaire set by us.
5.1.1
Research Approach: The objective was to know the competitive position of Amul in
the milk market thus in order
to successfully conduct the research the unbiased opinion of the above parties w
as desirable. Thus we conducted the research as the representative of Amul compa
ny and sometimes the representatives of the other company like Chitale or Katraj
in order to have an unbiased opinion of the concerned persons and it worked to
achieve our goal.
5.1.2
Research Instrument: The research instrument was the structured questionnaire fo
rmulated for the respondents. The
questionnaire was different for the retailers and dealers and for the consumers
there was a different set of questionnaire. There were also the area maps. 5.1.3
Types of Question: The second important aspect in the designing a question is t
o decide which types of question are to be used. Question can be classified in v
arious ways. Questionnaire contains following type information1. 2. 3. Open-ende
d question Dichotomous question Multiple-choice Question
Both the questionnaire consists of all three types of question. Mostly all quest
ions are multiple type questions. Dichotomous question are few in number. There
is only one open-ended type question. 46
5.1.4
Phrasing of Question: In questionnaire, I try to phrase the question in logical
way. For example I arrange question
in sequence as personal information, awareness data, usage data, and finally rel
ated to reason and satisfaction. 5.1.5 Sampling Plan:
Sample Size: The sample size was as follows: SR. NO. 1. 2. 3. RESPONDENT Retaile
rs Consumers Distributors TOTAL NUMBER 169 95 4
Sampling Technique: A stratified sampling technique was used. A different Stratu
m for different type of respondent within every stratum the respondents was sele
cted as per convenience basis. 5.1.6 Method of Survey:
Personal Interview: It is direct form of investigation, involving face-to-face c
ommunication with free feedback information. It offers a sense of participation.
It is more flexible form of data collection. Use of unstructured, open-end ques
tions is possible. Rate of refusal is low. Depth interview is possible. Complex
questions can be asked. The interview can have questions to secure more informat
ion. Observation approach can be combined to verify age, income, status, standar
d information. Visual aids in the form of catalogues samples etc. can be used to
get views, opinions, and attitudes of responder.
47
5.2.1 Product for Which Survey Was Conducted:-
Composition: Variety Amul Gold (Whole Milk) Amul Taaza (Toned milk) Fat (%) 6 3
SNF(%)* 9 8.5
*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34
parts of protein and 9 parts of minerals. Special Features: Amul Milk is the mos
t hygienic liquid milk available in the market. It is pasteurized in stateof-the
-art processing plants and pouch-packed to make it conveniently available to con
sumers. Product Specification: Amul milk meets the PFA standards for the respect
ive type of milk. Pricing of the Milk Amul Gold: Price to distributor Price to R
etailer MRP Amul Taaza: Price to distributor Price to Retailer MRP : : : Rs. 20.
57 Rs. 21.00 Rs. 22.00 48 : : : Rs. 25.37 Rs. 26.00 Rs.27.00
5.3.1 Area of Operation:
The areas of operation were the research was done are as follows: • • • • • • Sa
hakar Nagar Upper Sukhsagar Nagar Bibewadi Balaji Nagar Dhankwadi
How the survey conducted To approach the outlets with the following requirements
in mind
At Approach: • What type of shop it is? (hotels, amrutulya, bakery, restaurant,
general stores, super market) • • Does it stock Amul products? What other brands
available in the shop
Secondary Level: • • • Whether it sells milk ? If yes, whether it sells Amul mil
k ? Whether the company provides any promotional support ?
Territory Level: • • • • • Does he sell local milk or not ? Which is the most se
lling milk in the market ? Who supplies milk to your shop ? Does the delivery of
milk is on time ? What is the mode of payment credit or cash ?
49
Others:
• •
Types of schemes given to him. What are the uses of milk ?
Addendum: • Outlets may include institutions, general stores, mithai shops, supe
r market, canteens, juice bars, ice-cream corners etc. • These sectors were chos
en because the company believed that these segments could be the best potential
buyers for this product.
50
DATA PROCESSINNG & ANALYSIS
51
6.1
Data Analysis For Retailers:1) Number of retailers stocking Amul milk.
Answer Yes No
No. of respondents 55 114
Percentage 20% 80%
Yes 33%
Yes No
No 67%
Interpretation: • The above graph indicates that only 1/3rd of the retailers are
selling Amul milk. • It shows that Amul milk brand is not popular among the ret
ailers.
52
2) Sizes of Amul milk packets retailers preferred to store. (Out of 169 retailer
s only 55 were buying Amul milk.)
Answer 250ml 500 ml 1 Ltr 5 Ltr 0
No. of respondents 32 23 0
5 Ltr
0
1 Ltr
23
500 ml
32
250ml 0
0 5 10 15 20 25 30 35
No. of respondents
Interpretation: • The above graph shows that most of the retailers preferred to
stored 500 ml and 1 Ltr pouch of Amul milk as per the customer demand. • • In ca
se of 5 Ltr. Pouch there was no customers demand. 250 ml pouches were not availa
ble to retailers. 53
3) Reasons for Amul milk not stored by retailers. (Out of 169 retailers 114 were
not buying Amul milk.)
Answer Absence of packaging date Low margin No replacement for leakage No distri
bution
No. of respondents 6 75 20 13
No distribution
13
No replacement for leakage
20
Low margin
75
Absence of packaging date 0
6
10
20
30
40
50
60
70
80
No. of respondents
Interpretation: • From above graph it is clear that half of the retailers were n
ot satisfied with Amul replacement and margin policy. • • Some retailers respond
ed about absence of packaging date. Very less retailers complained about distrib
ution network 54
4) Preference of retailer’s to milk brand.
BRANDS Amul Chitale Katraj Gokul Others
RESPONDENTS 15 77 45 6 26
Others Gokul Katraj Chitale Amul 0 10 15 20 6
26
45 77
30
40
50
60
70
80
90
. Interpretation: • •
RESPODENT S
The above graph shows that the Chitale is most preferable brand in all. Some ret
ailers also prefers Katraj and others brands.
55
5) Sources from where retailers get Amul milk (Out of 169 retailers only 55 were
buying Amul milk.)
Answer No. of Percentage respondents 95 % Distributors 52 Other suppliers 3 5%
Interpretation: • Almost all retailers said that they purchased milk from Amul d
istributors.
56
6) Retailer’s satisfaction with Amul distributor. (Out of 169 retailers only 55
were buying Amul milk)
Answer Yes No
No. of Percentage respondents 62 % 34 21 38 %
No 38%
Yes Yes 62% No
Interpretation:
•
Graph shows that most of the retailers were satisfied with the service provided
by the Amul distributors.
57
7) Awareness among retailers about different Sales Promotional activities for Am
ul milk. (Out of 169 retailers only 55 were buying Amul milk.)
Activities Price off Free samples Credit facility Advertisement P-O-P Displays C
oupons
Aware 37 13 16 49 41 50
Not aware 18 42 39 6 14 5
60 50 40 30 20 10 0 Price off Free samples Credit facility Advertisement P-O-P D
isplays Coupons 37 13 16 42 6 18 39 49 41 50 14 5
Aware
Not aware
Interpretation: • The graph shows that retailers were aware about the sales prom
otion activity that Amul carried out, but some respondents were unaware about va
rious activities. • • Most of the retailers were aware about advertisement and c
oupons scheme during festivals. Credit facility and free samples were not provid
ed to single retailers.
58
8) Interest of retailers in wholesale distribution of Amul milk.
Answer Yes No
No. of respondents 27 142
Percentage 16 % 84 %
Yes 16%
Yes No
No 84%
Interpretation: • Graph represents the interest of the retailers to start Amul m
ilk distribution .The questions asked to increase the retail coverage. • • Most
of the retailers were not interested. Only 16% of the retailers were ready to st
art Amul distribution.
59
9) Awareness among retailers for Amul Parlor (APO) and its benefits. (Out of 169
retailers only 118were questioned as they had large store.)
Answer Yes No
No. of respondents 70 48
Percentage 59 % 41 %
No 41%
Yes No
Yes 59%
Interpretation: • APO is the outlet where you get Amul milk and milk products an
d it helps to increase the market share. This question asked to the retailers wh
o were strong enough in capital. • From graph it can be interpreted that the awa
reness about APO is very low.
60
10) Interest of retailers in opening an Amul Parlor (APO). (Out of 169 retailers
only 118 were questioned as they had large store.)
Answer Yes . No
No. of respondents 15 103
Percentage 13 % 87 %
Yes 13%
Yes No
No 87%
Interpretation:
•
The graph represent that very less number of retailers were interested to start
APO.
61
11) Consumer’s expectation from Amul milk. (Out of 169 retailers only 55 were bu
ying Amul milk.) ATTRIBUTE Good quality Clear packaging date Availability RESPON
DENTS 7 23 25
Availability
25
Clear packaging date
23
Good quality
7
0
5
10 RESPODENT S
15
20
25
30
Interpretation:
•
The question asked to the retailers where the Amul milk is being sale, and tried
to collect feedback of customers about Amul milk.
• •
More customers were having complaints about the clear date of packaging and avai
lability. Some customers were not happy with quality of milk.
62
12) Ratings from retailers for attributes of Amul milk. (Out of 169 retailers on
ly 55 were questioned as they buying Amul milk.) Attribute Rating Very good Good
Average Bad Very bad Total Quality 37 13 5 0 0 55 Brand image 48 7 0 0 0 55 Ava
ilability 34 15 0 6 0 55 Packaging 5 2 48 0 0 55 Margin 0 0 0 0 55 55
60 50 40 30 20 10 0 Quality Brand image Very good Good Availability Average 48 3
7 34 2 5 Packaging Bad Very bad 0 5 13 0 7 0 6 0 15 48 55 0
0 Margin
Interpretation: From the above graph it can be concluded that • • • • • QUALITY:
Most of the retailers were satisfied with Amul milk quality. BRAND IMAGE: The g
raph shows that Amul is having good brand image. AVAILABILITY: Most of the retai
lers were satisfied with the Amul milk distribution. PACKAGING DATE: Most of the
retailers were not satisfied about not printing of packaging date and they were
facing a problem regarding same. MARGIN: All retailers were not satisfied with
the margin policy given by Amul. 63
6.2
Data Analysis for Customers:1) Number of customers purchasing Amul milk.
Answer Yes No
No. of respondents 30 65
Percentage 32% 68%
Yes 32%
Yes No
No 68%
Interpretation:
• The above graph indicates that only 32% of the customers are purchasing Amul m
ilk. • It shows that Amul milk brand is not popular among the customers.
64
13) Ratings from customers for attributes of Amul milk. (Out of 95 customers onl
y 30 were questioned as they buying Amul milk.) Attribute Rating Very good Good
Average Bad Very bad Total Quality 18 9 3 0 0 30 Brand image 25 5 0 0 0 30 Avail
ability 16 9 0 5 0 30 Packaging 5 2 15 8 0 30 Price 6 13 11 0 0 30
35 30 25 9 20 15 25 10 5 0 Quality Brand image Very good Good Availability Avera
ge Bad Packaging Very bad Price 18 16 0 3 0 5 0 5 0 9 15 13 0 8 0 11
2 5
6
Interpretation: From the above graph it can be concluded that • • • • • QUALITY:
Most of the customers were satisfied with Amul milk quality. BRAND IMAGE: The g
raph shows that Amul is having good brand image. AVAILABILITY: Most of the custo
mers were satisfied with the Amul milk distribution. PACKAGING DATE: Most of the
customers were not satisfied about not printing of packaging date and they were
facing a problem regarding same. PRICE: Some customers were not satisfied with
the price given by Amul. 65
14) Preference of retailer’s to milk brand.
BRANDS Amul Chitale Katraj Gokul Others
RESPONDENTS 15 44 11 8 17
Others 8
17
Gokul
Katraj
11
Chitale 15
44
Amul 0 5 10 15
20
25
30
35
40
45
. Interpretation: • •
RESPODENTS
The above graph shows that the Chitale is most preferable brand in all. Some cus
tomers also prefers Katraj and others brands.
66
6.3
Data Analysis for Sales Promotion Activity:1. Sahakar nagar 2. Sinhgad road Stor
e name Initially Sai Vaishali 0 0 5 15 5 Day 1 10 15 20 30 10 Day 2 5 15 15 25 1
0 Sales(Ltr) Day 3 5 15 15 25 8 Day 4 5 15 15 25 8 Day 5 5 15 15 25 8 Day 6 5 15
15 25 8 Day 7 5 15 15 25 8
We carried sales promotion activity at two places of Pune city
New hanuman Hanuman Durga
Sales (Ltr)
35 30 25 20 15 10 5 0 5 0 initially Day 1 15 20 15 10 15 8 5 15 8 5 15 8 5 15 8
5 15 8 5 15 8 5 30 25 25 25 25 25 25 sai vaishali hanuman new hanuman Durga
Day 2
Day 3
Day 4
Day 5
Day 6
Day 7
Interpretation: • Most of the retail outlets were not interested in Amul milk se
lling, but after launching coupons scheme, not only sales shoot up by considerab
le amount initially but also remain constant for next days. • In case of Sai and
Vaishali retail outlet they were not interested in Amul milk selling but now th
ey are selling 20 Ltr of milk daily. And they said if response will remain same
they will increase milk order. 67
OBSERVATION & FINDINGS
68
7.1 Observation Findings:-
7.1.1 Retailers: (super market, grocery shops, ets) • Retailers are not interest
ed because they don’t have storage facility but if company provides them such fa
cility they will be sale Amul milk. • Because of low profit margin almost all re
tailers are not interested in Amul milk selling. • The 250 ml and 5 Ltr milk pou
ch are no available to the retailers for selling. • On question, why retailers a
re not interested in selling of Amul milk, it is found they were not happy with
margin, availability and replacement of leak pouches. • Retailers were selling d
ifferent brands. Because they were able to receive more margin from non populari
zed brand that they could not from well known brands. • All retailers get Amul m
ilk from company selected distributors. • Measurable amount of retailers were no
t happy with the distributors, because of frequent change in distributors and la
te delivery of milk. • All retailers were familiar with sales promotion activiti
es undertaken by Amul. But more of the activities were not communicated by distr
ibutors. So it shows that distributors are taking the advantage of such activiti
es. • Some questions were asked with view to convert retailers into distributors
, but due to low margin they denied that. • Retailers were not interested to sta
rt APO because to start APO one required large amount investment i.e. near about
2 Lakhs and with this it is mandatory to sale only Amul products, so most of th
e retailers did not show interest in APO. • I found that customers were complain
ing about the packaging especially packaging date because Amul do not print pack
aging date on pouch. • When question came to retailers ratings towards Amul milk
rating most of the most respondents complaining about profit margin and packagi
ng date.
69
• During campaign it is found that the mindset of consumers towards Chitale milk
is very high and hence it has become a milk maket player. As from the sales cha
rt it is clear that the sales of Chitale pouch milk is 50% more then Amul pouch
milk. • Retailers also demand for the replacements for the damage due to the spo
ilage of milk that they have to bear when the Amul milk gets spoiled after the p
urchase.
7.1.2 End Users: (House holds) • Consumer’s preference for purchasing of liquid
milk is mainly based on quality, taste, availability, home delivery and freshnes
s respectively. • Awareness level among the consumers is around 75% to 80% but s
till only around 15% consumers are consuming Amul milk. • Consumers have a perce
ption that Amul milk is unfresh and is having lots of cuddling problem. • The pa
ckaging of Amul milk is not popular among the customers as compared to other mil
k brands are available in the market.
7.1.3 Bulk Users: (sweet shops, restaurants, hotels, canteens etc). • The awaren
ess level of Amul milk in bulk users is around 90% but only 10% are using Amul m
ilk. • The preference of purchasing milk by the bulk users is mainly quality, pr
ice and timely availability. • The reasons for not using milk by the bulk users
are : 1. Higher price that is not meeting the competitors rate as bulk user are
very price sensitive. 2. In sweet marts mawa generation is less and there is a c
omplaint about cuddling of milk. 3. In case of canteens contract some of them pr
efer credit purchasing which is against company’s norms and policies.
70
LIMITATIONS
71
Limitations:This report had to work under several constraints and limitations. S
ome of the key limitation are. . 1. 2. The survey is limited only for six wards.
Time period of the project was 8 weeks, which may not be enough to understand t
he whole market. 3. 4. Convenient sampling was used as the mode of conducting th
e research. The sample size of the taken was small, therefore it can be said tha
t the chosen sample is not the representative of the whole population and this h
indered quantitative research. 5. The psychology and temperament of a respondent
play a significant role. Some respondents are more sensitive as against others
who are more tolerant. A change in the composition of the respondents can affect
the answers adversely or favorably. 6. Respondents may not have been true in an
swering various questions and may be biased to certain other questions. 7. Out o
f the whole research and analysis, only three major brands could be highlighted,
leaving aside the other non-popular brands. 8. The questionnaire mostly contain
ed multiple choice questions, therefore many respondents did not give a proper t
hought before up the questions, and some even ticked things, which were not appl
icable. Therefore, all this increased the bias. 9. The sample size of Retailers
/ Wholesalers was very small and therefore response from them dose not reflect t
he exact view because they may to biased.
72
CONCLUSION
73
Conclusion:Amul means different things to different people.
To a milk producer – A life enriching experience To a consumer – Assurance of ha
ving wholesome milk To a mother – A reliable source of nourishment for her child
To the country – Rural development and self reliance As we know that Amul is ve
ry big organization and market leader in dairy products. It has maximum market s
hare in Milk, Butter, Cheese & Ice-Cream which are its main/core products. But i
n case of local market like Pune the Amul milk is not a popular product as compa
red to other Amul Products. With the help of research, company can find out its
week points in Milk product and can increase its market share through rectify mi
stakes. People have believed in Amul’s product and they will accept it also if e
ffective actions were taken.
The survey resulted into following conclusions :
Amul must come up with new promotional activities such that people become aware
about Amul Milk like Amul Tazza & Gold.
Quality is the dominating aspect which influences consumer to purchase Amul prod
uct, but prompt availability of other Milk brands and aggressive promotional act
ivities by others influences the consumer towards them and also leads to increas
e sales.
In comparison to Amul Milk, the other players such as Chitale, Katraj,Gokul & Kr
ushnai provide a better availability and give competition to the hilt.
People are mostly satisfied with the overall quality of Amul Milk, but for the e
xistence in the local market Amul must use aggressive selling techniques
74
.
SUGGESTIONS & RECOMMENDATION
75
Suggestions & Recommendation:The Milk products market has reached Maturity stage
in India large no. of Co-operatives having a variety of product range has enter
ed the market, thus there is one way for Amul to sustain their milk business in
the market by delivering outstanding satisfaction to their retailers, so that th
ey can take interest in selling of Amul milk products. This can be done as follo
ws • Company should start printing packaging date on milk pouch. • Amul has a re
latively good distribution network, but still company is not able to fulfill the
demand of outlet in the peak season when demand is very high. Here company shou
ld consider on the supply of product in the peak season. • Supply should be regu
lar to all the outlets including those that lie in the pocket roads and not just
in the outlets which lie on the easily accessible routes. • 250 ml milk pouch s
hould make available to retailers for selling, because lower income family has i
ntention to buy small pouch milk. • Provide reasonable Margin to retailers as co
mpared to competitors, this motivates them to promote company’s milk and milk pr
oducts. • Improve delivery schedule to provide products on time for the retailer
s about who claimed that Amul milk is not available to them on time. • Incentive
s & schemes should be given to the retailers and some scrutiny should be follow
to check the scheme get being communicated properly by distributors or sales per
son. • Provide consistent service to retailers as this will help gain company go
odwill in the market. • Do not change distributor frequently, because he is the
only person who act as a connecting link between company and retailers. • Do not
place more than one distributor in same market area. • Try to minimize bank dep
osits for APO, which help to retailer think to start. • Though the customers are
asking for Branded milk is very few but Amul should invest more money in Brand
promotion and marketing in Pune, it will be beneficial for the company in the lo
ng run as well as in the short run. • For Brand promotion and marketing of Amul
milk in Pune it should introduce a mascot for the Amul milk as it already has fo
r Amul Butter i.e. The Amul Butter Girl in order to gain a good position in the
mind of customers. This will also help in easy Brand differentiation and Recogni
tion. 76
• Also advertising on the television, Radio Mirchi and Sponsorship of the events
, Trade Fairs will be a better choice. • The study of milk market reveled that t
here is no Mergers and Acquisition in the milk industry. Amul should go for Merg
ers and Acquisition and try to acquire the local players in the Pune market like
Chitale, Katraj and Gokul etc. It will help the company in increasing its Deale
rs network, Market share, Customer base etc. It will also save time of establish
ing a new manufacturing unit. • Our Research revealed that there is no awareness
among the consumers regarding the Amul milk in Pune. So it is advisable to the
company to conduct various consumer awareness programs like distributing of pamp
hlets outside the big shopping malls, giving presentations in schools and colleg
es about the Amul Milk by telling them about the qualities of milk. By this we c
an able to reach to a large number of people at one time only as there will stud
ents along with their teachers and other staff members of the school and college
s. • The pamphlets should be printed in such a way that it not only advertise ab
out the milk but also provides information about how to preserve the milk in dif
ferent conditions. • In order to attract the ladies segment the pamphlets should
have some recepies on the other side of it. • Some brand ambassador like M S Dh
oni, Hrithik Roshan or Vriendra Sehwag may be used. That will help customers to
accept the product more quickly. • Special offers should be there for dealers, r
etailers and consumers at the time of diwali and holi. • Discount coupons should
be given to the consumers in order to buy more milk. • If adding preservatives
in the milk keeps the milk for longer times then Amul should also add some prese
rvatives in the milk as people not only see quality but also sees the time durat
ion i.e. how much times we can store the milk. • In order to push the milk to th
e customers the profit margin should be increased. • Company should improve its
distribution channel and should increase the number of distributors. • Company s
hould take care of retailers by solving their problems and should call back by a
ppointing separate company representatives. • Timely visit should be given to th
e retail shops.
77
BIBLIOGRAPHY AND WEBLIOGRAPHY
78
Books:
i. ii. Marketing Management (12th Edition) – Philip Kotlar Research Methodology
– C. R. Kothari
Websites:
i. ii. iii. iv. www.google.co.in www.wikipedia.com www.amul.com.
www.marketresearch.com www.dairy.com
v.
79
ANNEXURE
80
QUESTIONNAIRE:(Retailer Survey)
Name of the shop: __________________________________________________ Retailer Na
me: ____________________________________________________ Address: ______________
____________________________________________
1) Do you stock Amul milk? a) Yes b) No
2) If yes, what is the size of Amul milk packets do you preferred to store? a) 2
50 ml b) 500 ml c) 1 Ltr d) 5 Ltr. 3) If No, Why? a. Absence of packaging date b
. Low margin c. No replacement for leakage d. Low distribution 4) Which is the m
ost preferable brand of packaged milk that you stock? • • • • • Amul Chitale Kat
raj Gokul Others
81
5) From where do you get Amul milk?
a) Distributors b) Other suppliers
6) Are you satisfied with Amul distributor? a) Yes b) No 7) Do you know which Sa
les promotional activities does the company undertake for Amul milk? a) Price of
f b) Credit facility c) Advertisement d) Free samples e) Coupons f) P-O-P Displa
ys
8) Are you interested in distribution of Amul milk?
a) Yes b) No
9) Are you aware of Amul Parlor (APO) and its benefits? a) Yes b) No
10) Are you interested in opening an Amul Parlor (APO) a) Yes b) No
82
11) What is consumer’s expectation from Amul milk? a) Good quality b) Packaging
c) Availability
12) Give your ratings to following attributes of Amul milk.
Very good
Good
Average
Bad
Very bad
a) Quality b) Brand image c) Availability d) Packaging e) Margin
83
QUESTIONNAIRE:(Customer survey)
Name of the shop: __________________________________________________ Retailer Na
me: ____________________________________________________ Address: ______________
____________________________________________
1)
Do you know about Amul? Yes No
2)
What are the products of Amul you use very frequently? Butter Dahi Cheese Milk S
hrikhand Ice-Cream Milk Powder Butter Milk
3)
Do you regularly get the Amul Milk? Yes No
4)
Which brand’s milk do you like most? Amul Katraj Chitale Gokul
Other (Specify)…………………….. 5) Do you know about Amul God and Taaza? Yes 6) No
How is the taste of Amul Gold? Poor Satisfactory Excellent
84
7)
How is the taste of Amul Tazza? Poor Satisfactory Excellent
8)
What about the price of Amul milk? Low Average High
9)
How is the packing of Amul milk? Poor Good Excellent
10.
Do you like the home delivery scheme of Amul Milk? Yes No
11.
Give your ratings to following attributes of Amul milk.
Very good
Good
Average
Bad
Very bad
f) Quality g) Brand image h) Availability i) Packaging j) Price
12.
Any suggestion about Amul milk:
85