A PROJECT REPORT

ON
“Managing Channel Management and Analyzes
market at rural India”
for
Gujarat Co-operative Products Marketing Federation
Limited, Gujarat (GCMMF)

Submitted By:
Mr. Pulkit Shukla

Submitted to:-
Sinhgad Business School
Ambegaon,Pune
Company Guide: Faculty Guide:
Sanjeev kapoor Prof. R.K. Dikkatwar
 CERTIFICATE

This is to certify that Mr. Pulkit Shukla, pursuing his MMM

Regular course from Sinhgad Business School, Pune, has
successfully completed his Summer Project-2011 as a partial
fulfillment of his curriculum during the tenure of MMM degree.
The following summer internship project report titled
“Managing Channel Management and Analyzes market at
rural India”
AT Gujarat co-operative milk marketing federation ltd Nagpur
from 16th june 2011 to 16th August 2011 is here by Approved as a
Certified Study in Management carried out & presented in a
manner Satisfactory. He has performed his Summer Training to
the extent of his potential and achieved the objectives while
undergoing the project.

Company Guide: Faculty Guide:

Mr.Sanjeev Kapoor Prof. R.K. Dikkatwar
(Branch Manger)
 Declaration

I hereby declare that this project work entitled

“Managing Channel Management and Analyzes market
at rural India”
is my work, carried out under the guidance of my faculty
guide Prof. R.K. Dikkatwar and company guide
Mr.Sanjeev Kapoor

This report neither full nor in part has ever been submitted
for award of any other degree of either this university or
any other university.

Company Guide: Faculty Guide:

Sanjeev kapoor Prof. R.K. Dikkatwar
(Branch Manager)
 ACKNOWLEDGEMENT
I sincerely thanks to GUJRAT CO-PERATIVE MILK
MARKETING FEDERATION LIMITED getting a chance to be
a part of reputed organization, its always a privilege for any MMM
student especially the knowledge I gathered while working here. I
feel proud to do my summer training in GCMMF, Limited and in a
city like Gadchiroli & chandrapur where the competition is very
aggressive in the products and dairy industry especially in pouch
products segment.
I take this opportunity to extend my sincere gratitude to
Mr. Sanjeev Kapoor (Branch Manager) for providing me the
valuable support and encouragement at each step of my training at
GCMMF, Limited.
I am carrying with me a very sweet memory and a positive attitude
from GCMMF, Limited and hope to join this esteemed
organization in near future.
Next I would like to thank my internal project guide Prof. R.K.
Dikkatwar for extending his support at every stage of the project.
I am grateful to my institute the faculty, staff and fellow student
each of who in his or Her own ways have contributed to the
completion of the project.
PULKIT SHUKLA
 INDEX
SR. PAGE
NO. TOPICS NO.
1. ACKNOWLEDGEMENT
2. EXECUTIVE SUMMARY
3. INTRODUCTION
4. COMPANY PROFILE
a) Amul History
b) About the Product
c) Competitor
d) GCMMF Overview
5. OBJECTIVE OF THE STUDY
6. RESEARCH METHODOLOGY/ DESIGN
(a) Method Used
(b) Data Collection
(c) Topic Selection
7. ANALYSIS OF THE DATA
8. MAJOR FINDINGS
9. SWOT ANALYSIS OF THE COMPANY
10. CONCLUSION
11. LIMITATIONS OF PROJECT
12. RECOMMENDATIONS & SUGGESTIONS
13. QUESTINNAIRE
14. BIBLIOGRAPHY
 EXECUTIVE SUMMARY

The research conducted was descriptive in nature. Nagpur division

segment was survey to attain certain results. The survey was
conducted to analyze the Market Share as, which would influence
the buying decision of the customers and about the functioning of
existing dealers and distributors.

Random sampling was used as the mode of collecting the sample.

After the survey completion; the data was first sorted and then
analyzed on chosen parameters. This analyzed data was later
converted into forms of graphs such as pie charts, bar graphs etc.
This was done to make results easily comprehensible by any one
going through the report. This also made it easy to draw
conclusions based on the research and provide a presentable
format of the customers as well as dealers.

Later on this information was compiled in the form of presentable

and highly comprehensible report.
 INTRODUCTION

In today's competitive world where cut throat competition exists,

every one wants to know their position, their strength and weakness, so it is
very essential to know opportunity to target the potential market, capture the
market, evaluate and form the marketing strategies.
Today is the world of changing era, with modern changes in tastes,
fashions, technology and higher standard of living changing customer's
needs and preferences, wants and desires and their high expectations for new
and improved products have enforced the companies to bring new, modern
and superior products in the market. For this every company must establish
and evaluate new product development ideas and strategies.
Market survey is one of the most widely used Marketing Research
techniques. Market survey is at times viewed as synonymous with market
research. This is erroneous. It has to be understood clearly that market
survey is just one of the techniques of marketing research and is not
synonymous with marketing research. It is just one method of collecting the
marketing information required for carrying out a given marketing research
task. It is used if the required data is not available from the company's
internal records and from external published resources. It amounts to
original field research work for the purpose of collecting primary data.
The project holds great interest for us as consumer, as students and as
marketers. As consumer we benefits from insight into our own consumption
related decision "what we buy and how we buy". As students of human
behavior, it is important for us to understand the internal and external
influence that impels individuals to act in certain consumption related ways.
 Thus, this project helps the company in understanding of present and
future requirement of super distributors and distributors. Also this project
helps in understanding the distributors and customer's ideas about the
product in the market. As we know distributors and distributors are the most
important elements of the market, their ideas about the product and market
survey will help the company in many ways taking into consideration its
important factors of success.
 COMPANY PROFILE
The Amul History

The Kaira District Cooperative Products Producers’ Union Limited

was established on 4 January 1946 as a response to exploitation of marginal
products producers in the city of Anand (in Kaira district of the western state
of Gujarat in India) by traders or agents of existing dairies. Producers had to
travel long distances to deliver products to the only dairy, the Polson Dairy
in Anand – often products went sour, especially in the summer season, as
producers had to physically carry products in individual containers. These
agents decided the prices and the off-take from the farmers by the season.
Products is a commodity that has to be collected twice a day from each
cow/buffalo. In winter, the producer was either left with surplus unsold
products or had to sell it at very low prices. Moreover, the government at
that time had given monopoly rights to Polson Dairy (around that time
Polson was the most well known butter brand in the country) to collect
products from Anand and supply to Bombay city in turn (about 400
kilometers away). India ranked nowhere amongst products producing
countries in the world in 1946.
The producers of Kaira district took advice of the nationalist leaders,
Sardar Vallabhbhai Patel (who later became the first Home Minister of free
India) and Morarji Desai (who later become the Prime Minister of India).
They advised the farmers to form a cooperative and supply directly to the
Bombay Products Scheme instead of selling it to Polson (who did the same
but gave low prices to the producers). Thus the Kaira District Cooperative
was established to collect and process products in the district of Kaira.
Products collection was also decentralized, as most producers were marginal
farmers who would deliver 1-2 liters of products per day. Village level
cooperatives were established to organize the marginal products producers in
each of these villages. The first modern dairy of the Kaira Union was
established at Anand (which popularly came to be known as AMUL dairy
after its brand name). The new plant had the capacity to pasteurized 300,000
pounds of products per day; manufacture 10,000 pounds of butter per day,
12,500 pounds of products powder per day and 1,200 pounds of casein per
day. Indigenous R&D and technology development at the Cooperative had
led to the successful production of skimmed products powder from buffalo
products – the first time on a commercial scale anywhere in the world. The
foundations of a modern dairy industry in India had just been laid as India
had one of the largest buffalo populations in the world. We move to year
2000. The dairy industry in India and particularly in the State of Gujarat
looks very different. India has emerged as the largest products producing
country in the world. Gujarat emerges as the most successful State in terms
of products and products product production through its cooperative dairy
movement.
The Kaira District Cooperative Products 4 Producers’ Union Limited,
Anand becomes the focal point of dairy development in the entire region and
AMUL emerges as one of the most recognized brands in India, ahead of
many international brands1. Starting with a single shared plant at Anand and
two village cooperative societies for products Procurement, the dairy
cooperative movement in the State of Gujarat had evolved into a network of
2.12 million products producers (called farmers) who are organized in
10,411 products collection independent cooperatives (called Village
Societies). These Village Societies (VS) supply products to thirteen
independent dairy cooperatives (called Unions). AMUL is one such Union.
Products and products products from these Unions are marketed by a
common marketing organization (called Federation). Figure 1 gives the
hierarchical structure of this extensive network of cooperatives.
Gujarat Cooperative Products Marketing Federation or GCMMF is
the marketing entity for products of all Unions in the State of Gujarat2.
GCMMF has 42 regional distribution centers in India, serves over 500,000
retail outlets and exports to more than 15 countries. All these organizations
are independent legal entities yet loosely tied together with a common
destiny! (In a recent survey GCMMF was ranked amongst the top ten
FMCG firms in the country while AMUL was rated the second most
recognized brand in India amongst all Indian and MNC offerings).
Interestingly, the Gujarat movement spread all over India and a similar
structure was replicated (all are at different levels of achievement but their
trajectory appears to be quite similar). Two national organizations, the
National Dairy Development Board (NDDB) and the National Co-operative
Dairy Federation of India (NCDFI) were established to coordinate the dairy
activities through cooperatives in all the States of the country. The former
provides financing for development while the latter manages a national
products grid and coordinates the deficit and surplus products and products
powder across the states of India. In the early nineties, AMUL was asked by
the Government of Sri Lanka to establish a dairy on similar lines in Sri
Lanka. Interestingly, while Polson folded up sometimes in 1960s, the
cooperatives are faced with new competition in liberalizing India – from
multi-national corporations (MNCs) that brought in new and improved
product portfolio, international network and immense financial support.
 The Cooperatives face new challenges that test the robustness of
their approach and their commitment to the movement and a new style of
management thinking. Today AMUL is a symbol of many things of a
promise to member. Farmers are assured a guaranteed purchase of all the
products. That they produce at pre-determined prices, of high-quality
products sold at reasonable prices to consumers & the developing and
coordinating a vast co-operative network. Of making a strong business
proposition out of serving a large number of small and 5 marginal suppliers
of the triumph of indigenous technology & the marketing savvy of a farmers'
organization. In the remaining part of the paper, we first review the role that
cooperatives have played in the development of dairy industry globally and
how is this sector adjusting to new global challenges. Next, we look at
AMUL within this context and highlight their journey towards excellence.
Specifically, we study how AMUL achieved this exalted status, what were
the ingredients of its success, how did the belief in cooperation transform the
business environment and the lives of people, and what lessons does it hold
for other businesses.
 Mission:

“We at GCMMF Ltd. endeavor to satisfy the taste and nutritional

requirements of the consumers of world through excellence in marketing by
our committed team. Through co-operative networking we are committed to
offering quality products that provide best value for money”.

Values:
 Customer orientation
 Commitment to producers
 Integrity
 Co-operation
 Excellence
 Leadership
 Quality
 Innovation
 Growth oriented new products
 Belongingness
 Pride in organization
 Employees’ satisfaction.
 The Products Grid:

The remarkable innovation allows products to follow from areas of

surplus products. This is channeled through the grid to other districts with
spare capacity to be sold in liquid form or converted into non-perishable
dairy products.

The surplus of the flush season is preserved and stored against the
scarcities of he lean months maintaining equilibrium on prices around the
year. The farmer is sheltered from the anxieties of seasonal ups and downs
on the prices he receives, which processing plant are assure of being able to
function at capacity.

PRODUCTS OF AMUL:

AMUL means "Priceless" in Sanskrit. A quality control expert

in Anand suggested the brand name “Amul,” from the Sanskrit “Amoolya”.
Variants, all meaning "priceless", are found in several Indian languages.
Amul products have been in use in millions of homes since 1946. Amul
Butter, Amul Products Powder, Amul Ghee, Amulspray, Amul Cheese,
Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul
Products and Amulya have made Amul a leading food brand in India. Today
Amul is a symbol of following things,
1) High-quality products sold at reasonable prices.
2) The genesis of a vast co-operative network.
3) The triumph of indigenous technology.
 AMUL MILK:

“INSIST ON AMUL PRODUCTS ONLY”

Products is the “nature’s perfect food” for all ages. It has almost all
the vital nutrients need for the growth and well being of human body.
Products is the richest natural source of calcium and essential amino acids,
which is good for bone formation. It is particularly beneficial for people
recovering from sickness, for sportsmen, for old people, for pregnant women
and for growing girls and boys. The doctor recommends a minimum daily
intake of 250 ml or more for every person.

Normal cow products has 4% Fat and buffalo has 7% Fat. There is another
important constituent of products is Solids Non Fat (SNF). This (or SNF as
it is commonly called) comprises of proteins, minerals, carbohydrates and
vitamins. For mil to be nutritionally balanced, it has to contain both Fat and
Solids Not Fat in proportion.
Amul Gold :

Amul Long Life Products is fresh and only fresh products, which
has been processed with a technology called UHT (Ultra
High Temperature), hence also known as UHT products. The
UHT treatment ensures zero microbic activation, while
preserving the maximum flavour, taste, and nutritional
value. The aseptic packaging system protects the product
from air and light and guarantees long shelf life of 120
days without any need of refrigeration.
Price: Rs.42/ Litre

Amul Taaza:

Amul Long Life Products is fresh and only fresh products, which
has been processed with a technology called UHT (Ultra
High Temperature), hence also known as UHT products. The
UHT treatment ensures zero microbic activation, while
Preserving the maximum flavors, taste, and nutritional
Value. The aseptic packaging system protects the product
from air and light and guarantees long shelf life of 120
days without any need of refrigeration.
Price: Rs.42/ Litre
Amul UHT products is available in two variants - Amul Gold with 4.5% fat,
Amul Taaza with 3.0% fat . Amul Taaza is available in 1 Litre, 200 ml and
500 ml packs, Gold in 200 ml and 1 Litre pack.
 The PFA act lays down standards of Fat and SNF for various types of
products, as follows:

Sr. No. Type Of Amul Products FAT SNF

1. Toned products (Amul Taaza) 3.0% Min 8.5% Min
2. Full Cream Products (Amul 6.0% Min 9.0% Min
Gold)
3. Cow Products (Amul Cow 3.5% Min 9.0% Min
Products)

Amul Products is available in Nagpur division and surrounding

areas in Toned, Full cream and cow products varieties. Amul Products
strictly confirms to PFA standards. In fact we keep our standards. In facts we
keep our standards higher so as to abundantly comply with the legal
requirements and to provide wholesome nutritive food to our consumers.

This means when you are buying Amul Products you are sure to
get the “nature’s perfect food” for your family. You are sure to get your full
500 ml. in every pack. You are sure of getting products, which has longer
life because of superior bacteriological quality and state of art processing
technology
The loose products available from local vendors often does not
confirm to PFA standards. It often has less Fat and less Solid Non Fat then
required. Remember that if your products contains 0.5% less Fat or SNF,
you are paying up to one rupee per pouch extra. Besides, it is not uncommon
to find artificial preservatives, which are not permitted by law being added
to loss products.
PANEER:

Amul is all set to enter the Fresh Paneer segment by

leveraging its Liquid Products distriution network covering over 100000
retail outlets across India. India's top dairy brand on Monday launched Amul
FreshPaneer .
Amul Fresh Paneer is the latest addition in its product portfolio in its quest
to become the numero-uno brand in the Indian Paneer market.

After establishing itself as a market leader in Frozen Paneer category

through its Amul Malai Paneer brand commanding over 65% market share
in the branded Paneer market, Amul is now entering the Fresh Paneer
segment in order to strengthen its position in the Dairy products category.

To start with, Amul will be launching Amul Fresh Paneer which does not
contain any harmful chemicals or preservatives, in Ahmedabad through its
Liquid Products distribution network. Amul Fresh Paneer will be available at
all Products outlets in Ahmedabad round the year in the convenient sizes of
200 g Block priced at Rs. 42/- and 1 kg Block priced at Rs. 210/-
AMUL SHRIKHAND:

Shrikhand is a traditional sweet. It is the only pasteurized. Shrikhand

available in the country with smooth texture and extended shelf life. Made
from most modern dairy equipment.
AVAILABLE IN : 100GM
200GM
500GM

AMUL MITHAI GULAB JAMUN:

Amul Gulab jamun is delicious product made with hygienic and adivative
terms . Made from most modern dairy equipment.
AMUL CHOCOLATES:

AMUL CHOCOLATE is made from Sugar, Cocoa Butter,

Products Solids, Chocolate mass .

AMUL GHEE:

Amul Ghee is delicious and rich varied nutrient product made by intensive
care and lucrative addivatives
GCMMF Overview :

GCMMF is the India’s largest food products marketing

organization. It is a state level apex body of products co-operatives in
Gujarat, which aims to provide remunerative returns to the farmers and also
serves the interest of consumers by providing quality products, which are
good value for money.

Members 13 districts Co-Operative

bulk producers union
No. Of producer members 2.41 million
No. Of village societies 12,792
Total products handling 7.4 million per day
capacity
Products collection 2.28 billion liters
Products collection daily 6.25 million liters
average
Products drying capacity 511 metric tons per day
Cattle feed manufacturing 2340 metric per day
capacity
 Sales Turnover

Year Rs. (in million) US $ (in million)

1995-96 13790 400
1996-97 15540 450
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
2009-2010 74245 1802
2010-2011 86574 2089
(3)World's Largest Products Producer:

India has become the world's No. 1 products producing country, with output
in marketing year ending March 2000 forecasted at 78 million tonnes.
United States, where the products production is anticipated to grow only
marginally at 71 million tonnes, occupied the top slot till 1997. In the year
1997, India's products production was on par with the U.S. at 71 million
tonnes. The world products production in 1998 at 557 million tonnes would
continue the steady progress in recent years. Furthermore, the annual rate of
growth in products production in India is between 5-6 per cent, against the
worlds at 1 per cent. The steep rise in the growth pattern has been attributed
to a sustained expansion in domestic demand, although per capita
consumption is modest - at 70 kg of products equivalent.

Annual Products Production has trebled:

India's annual products production has more than trebled in the last 30 years,
rising from 21 million tonnes in 1968 to an anticipated 80 million tonnes in
2001. This rapid growth and modernization is largely credited to the
contribution of dairy cooperatives, under the Operation Flood (OF) Project,
assisted by many multi-lateral agencies, including the European Union, the
World Bank, FAO and WFP (World Food Program). In the Indian context of
poverty and malnutrition, products has a special role to play for its many
nutritional advantages as well as providing supplementary income to some
70 million farmers in over 500,000 remote villages.
Exports:
GCMMF is India's largest exporter of Dairy Products. It has been accorded a
"Trading House" status. GCMMF has received the APEDA Award from
Government of India for Excellence in Dairy Product Exports for the last 8
years.

The major export products are:

Consumer Packs

 Amul Pure Ghee

 Amul Butter
 Amul Shrikhand
 Amul Full Cream Products Powder
 Amul Mithaee Gulabjamun.
 Amul Skimmed Products Powder
 Nutramul Brown Beverage
 Amulspray Infant Products Food
 Amul Cheese
 Amul Malai Paneer

Bulk Packs

 Amul Skimmed Products Powder

 Amul Full Cream Products Powder

Many of our products are now available in the USA, Gulf Countries and
Singapore.
Comparison of Price, Margin (Distributors & Distributors) of
Amul Products & Other Brands:
(Values in Rs.)
Products
(in %)
Name of Brand Price S.S Margin Distributors
Margin
Amul 42.00 2.50 4.00
Mahanaad 28.00 4.00 5.00
Dinshaw 30.00 4.00 5.00

The above values or the prices and margins of distributors may be changed

Some of the major dairy cooperative

federations include:
 Andhra Pradesh Dairy Development Co-operative Federation Ltd
(APDDCF)

 Bihar State Co-operative Milk Producers Federation Ltd (COMPFED)

 Gujarat co-operative Milk Marketing Federation Ltd (GCMMF)

 Haryana Dairy Development Cooperative Federation Ltd. (HDDCF)

 Himachal Pradesh State Cooperative Milk Producers Federation Ltd

(HPSCMPF)

 Karnataka Cooperative Milk Producers Federation Ltd (KMF)

Amul Secret Of Success:

The system Succeed Mainly because it provide an assured Market at

remunerative price for the producer Milk beside acting as a Channel to
Market the Production Enhancement package. What’s more, it does not
disturb the Agro-System of the former. It also enable the Consumer an
access to high quality Milk and Milk Product. Contrary to the Traditional
system, when the profit of the Business was cornered by the Middlemen, the
system ensured that the profit goes to the Participant for socio-economic
upliftment and common good.
Looking back on the path traversed by Amul the following features make it a
pattern and model for emulation elsewhermer .
Amul has been able to :
 Produce an appropriate blend of the policy makers for farmers board
of management and the professionals: each group appreciating its role
and limitation.
 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-Economics systems.
 Plough back the Profits,by prudent use of Men,Material and
Machines,in the rural 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 producer member.in that sense,amul is an example par
excellence,of an intervention for rural change.
The Union looks after policy formulation,processing and marketing of
milk,provision of technical inputs to enhance milk yield of animals,the
artificial insemination service,veterinary care,better feeds and the like all
through the village societies.basically the union and cooperation of people
brought amul into fame i.e amul (ANAND MILK UNION LTD),a name
which suggest THE TASTE OF INDIA.

Amul is based on four hands,which are coordinated with each other.

The actual meaning of this symbol is co-oedination of four hands of
different people by whome this union is at top position in asia .

 Firsthand is of farmers,without whome the organization would not

have existed.
 Second hand is of processors,who process he row material into
finished goods.
 Third hand is of marketer,without whome the product would have not
reached the customers.
 Fourth hand is of customers,without whom the product would have
not carried on.
Achievement & Awards:

Amul Asia’s largest dairy co-operative was created way back in 1946 to
make the milk producer self-reliant and milk business with pride.Amul has
always been the trend setter in bringing and adapting the most morden
technology to door steps to rural farmers.

Amul created history in following areas:

 First self motivated an d autonomus farmers organization comprising

of more than 5000000 Marginal milk producer of khira district.
 Created dairy co-operative at village level functioning with milk
collection centers owned by them.
 Computerized milk collection system with electronic scale and
computerized accounting system.
 The first and only organization in world to get iso 9000 standard for
its farmers co-operatives.
 First produce milk from powder from surplusmilk.Amul is the live
example of how co-operation amongst the poor marginal farmers can
provide means for the socio-economic development of the under
privileged marginal farmers.
AWARDS:-
Amul a co-operative society and its co-operation has led many different
awards in its favour.

 Magsaysay award for community leadership presented in manila.

 Philippines 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 Productivity” 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 the Amul union has achieved the
prestigious ISO 9001-2000 and HACCP Certificate and 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 Federation Ltd. has

emerged as the top scorer in the service category of the prestigious IMC
Ramkrishna Bajaj National Quality Award.

2006-07: GCMMF has bagged award for excellent performance in exports

of dairy products from Agricultural and Processed Food Exports
Development Authority (APEDA).

2007: Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy

Summit.
 Organization Structure Chart
Chairman

Managing Director

General Manager

Ass. General Manager

Finance Production Marketing Sales & Purchas Personnel

Dept. Dept. Dept. Dept Dept.

Finance Production Marketing Sales Personnel

Manager Manager Manager Manager Manager

Accountant Officer Marketing Officer P.R.F.

Executive

Officers Supervisor F.S.R. Salesmen Executive

DISTRIBUTION CHANNEL OF AMUL
PRODUCTS:
Company’s Plant is situated at shahapur in Kalyan district. Products is
processed and packed at Kalyan and sent to the respected Distributors and
then distributors to Distributors.

Distribution Network of GCMMF India Ltd.

Manufacturer (Plant)

SUPER-STOCKIST

SUB-STOCKIST

RETAILER
SCOPE AND OBJECTIVE OF STUDY:

Decision-making requires relevant and correct information for

collecting the data, which can be used for decision-making. Objectives of
data collection should be very clear, objective guide us to collect the right
data from the right source.

Scope Of The Study:

The study carried out in Nagpur division region so its scope is
mainly limited to Nagpur division region.

 Market share of Amul Products.

 The study will serve consumer in better manner.
 The study gives information about the services
given by distributor to their
Distributor.

 The study gives information about the size of the retail network.
 The study provides suggestions to the company to improve their
products sales.
 The study gives information about the competitors’ products.
OBJECTIVES OF PROJECT:

PRIMARY OBJECTIVE:

 Managing Chanel Management and Analyse market for Amul in

Rural India.
 To find size of Retail Network of Amul Products in specific areas
of Gadchiroli & Chandrapur.
 To find the problems faced by retailers in selling and storing.
 To collect the information about the competitors.

SECONDARY OBJECTIVE:

 To appoint distributor in rural India.

 Analyze rural market and look for logistic issues in market.
 To analyze scope of managing product management.
 Making aware of other overheads which are required for
segmentation in market.
 Creating demand for the product in the market.
 RESEARCH METHODOLOGY:
METHODS & SOURCE OF DATA COLLECTION

Facts, information or premises systematically collected and presented

for the purpose of the drawing inferences may be called data. The first hand
information bearing on any research, which has been collected by we or his
agent or assistant, may call data.

For collecting the information for this project I have used the source
of data. For the collection of the data I have used in-depth interview method
for that purpose. I have taken a general interview of distributors and
consumers. Thus the data obtained through this method is primary one and
true.

PRIMARY DATA:

The data was generally collected by structured questionnaire, the

technique applied through personal direct survey, indebt interviews were
taken and by observations.
Primary data’s most important role is in knowing the –
o Distribiutor & Distributor’s attitude & opinion.
o Distributors & Distributor’s awareness about the product/brand.
SECONDARY DATA:

Secondary data consist of information that is already in existence, having

been collected for another purpose.

1 Website: www.amul.com from this website information collected like the

history of organization regions, market, various products, competitors,
companies objectives & welfare activities of company.

TOPIC SELECTION

Topic selection is the one of the important aspects of project. It

decides the course of action to be followed. The topic selected should be
such that it helps in understanding the market concepts clearly, as was given
the topic by the company itself.
The topic given by my project guide was

“Managing Channel Management and analyse market

in rural India”
 Interpretation of Data:

Flow of the Project:-

The main objective was to analyze and manage distributor management for
the company. The project was factored under Nagpur Division Amul
(Marketing division).
Company was tapping for the channel management and expanding its rural
market, As company was on the platform to increase it base in rural India
where 70% of Population reside.
Project was mainly thorough to appoint distributor for the company and by
making appropriate channels of distributor for the company .
Company is also on win win situation to make the surface more wide and
develop the platform for the rural market

Primary Step:-
Company has appointed in Nagpur division where Channel was intimate to
Gadchiroli District. Gadchiroli is rural market for the most of FMCG
companies located in Maharashtra surrounded by23 Talukas and many small
villages. Products is always a bread and butter for everyone in country.

Company has appointed Super Stockist at Gadchiroli, which was base

point to work or we can say the place from where the goods will be
distributed to my dealers located at various junctions.
Things in Consideration:-
Company has made responsible for all the terms and conditions to be
explained while appointing distributor at this places. Various Norms are
taken into consideration while appointing dealers which was sole
consideration while appointing any distributor for the company. Various
stringent factors are determined while making distributor for any rural India.

SALES WISE ATTRIBUTES :

According to observation & servey the following data is drawn,
Table.2

Sales

5%
9% Gadchiroli

27% Dhanora

9% Wadsa
Bramhapuri
Nagbhid
9% MUL
9% Sironcha
9% Rajura
9% Gondpripri
14%

From above pie chart we can know that type of the consumer in the market.
From above diagram we can say that 13 % of the consumers are price
sensitive. 27 % customers are having distribution problem. They do not get
the products at their nearest shop. customers are unaware of the products.
The most i.e.54% of customers prefer a good quality.
Awareness of Customer Using Advertisement:-
After market survey &observation following data is drawn.
Advertising No. Of
Media For No. Of Customer In
Amul Customer %
Ads 90 45
Banners 40 20
Newspaper 40 20
Relative 10 5
Other 20 10
100
Total 400
Sourcd:-Amul Website and Annual Data

Awareness of Customer using Advertisement

Ads
5%
10% Banners
45%
20%
Newspaper
20%
Relative
other

From above graph, we are know that the 45% of customer know about Amul
Products by through advertise in media, 20% customer know by Banner
through, 20% customer know by Banner through, 5% customer know by
Relative through & 10% customer know by other such as distributor,
neighbor, friend.
Effect of Advertisement:

Effect Of Advertisement On selling

4%

36%
Yes
60%
No
Can't say

It is found that 60% distributors said advertisement is effective to increase a

sale, 36% distributors are said advertisement is not effective to increase a
sale and 4% distributors doesn’t give proper answer.

Cost of Living

The Price of 1 Litre of

Products
United States Rs.78

Australia Rs.48
Italy
Rs.71
Spain
Rs.56
India
Rs.28
Preferences of Distributors Towards Various brands of
products with respect to the attributes offered:
After interviewing the Distributors and asking them
about their preferences of brand we got the following information.
Brand Preferences in %
Mahanand 35
Amul 30
dinshaw 25
Thorat 6
Others 4

Preferences in %

4%
6%

35% Mahanand
Amul
25%
Dinshaw
Thorat
Others

30%

After analyzing brand wise uses of the consumers we found that Amul is not
that much demanded brand in the given market. We tried to find out the
reasons for the low sale of Amul.
 Complaints Of Distributors About Amul
Products:

According to Distributors ; we get following information;

After performing the market survey researcher tried to find out the reasons
for low sales of Amul Products in Gadchiroli & Chandrapur. Thereafter
researcher found the following problems or complaints of distributors about
the Amul Products.
The problems were as follows:
 High price (low margin)
 Poor distribution
 Expiry date problem
 Storage problem

The survey we found that large numbers of people are price sensitive in the
central Zone area. The major problem is low margin for distributors.
Distribution Problem is the second important problem faced by
the distributors about the Amul products in the given area. The Amul super
stockiest are currently having amit agencies in the Gadchiroli & Chandrapur
of the Nagpur division.Only single super stockist in the north area of the
Nagpur division. But after performing the survey we found that he is not
covering all the area & unable to reach at every part of Nagpur division.
Replacement Problem is also we found in the market. Distributors are
having complaints that the Amul Company doesn’t give any replacement for
leakage problems and they don’t give replacement for old stock. While
competitors does give the replacements. This also makes the difference in
the sale of Amul products.
This is a strange problem, which we found in the north Zone
area of the Nagpur division city. The Amul Company is having policy to
print the manufacturing date of previous day of delivery on the Products
pouches. While competitors print the present date of delivery. For e.g. If the
products is suppose to be deliver on 11th July, then Amul prints previous
date i.e. 10th July. Where competitor print the present date i.e. 11th July. This
creates confusion and misunderstanding in the minds of consumers as well
as distributors.

Problem %
High Price 70
Poor Distribution 20

Replacement 7
Printed date 3

Table.8

Retailers Problems About Amul Milk in %

80
70
60
50
%

40 %
30
20
10
0
High Price Poor Replacement Printed date
Distribution

Problem
The above diagram is showing that:-
The 70% distributors have a pricing problem. Because of
competitor like Mahanand & Dinshaw give a highest margin than Amul to a
distributors. This is one of the major reasons for the low sale of Amul
products in west Zone of Nagpur division .
The 20% distributors have a problem of distribution. company
is not delivering an amul products timely to distributor as they expected.
Also the distribution in some area like Gadchiroli and Chandrapur the
distribution is very poor or almost absent. Therefore even if demand is there
the sale is very low in that area.
The 7% distributors have a problem of replacement. The
competitors do give the replacements where Amul doesn’t give a
replacement.
The 3% distributor have problem of printed date. From such
Distributor as well as customer think that Amul is not fresh products due to
the date problem. This is one of the problems, which curtails down the sale
of Amul products.
MAJOR FINDINGS:

 Demand for Amul Taaza and Amul Gold is less. The most of
customer use Mahanand & dinshaw.
 The surveys we can found that, the most of customers are priced
sensitive. The Customers are give preference of availability and
quality. The most of customers are unaware of the Amul products.
 Advertisement of Amul Products is not impressive in different Medias
Advertisement is negligible.
 The consumers are not buying Amul Products because of high rate
and they do not get the products at their nearest shop.
 they said that products is not fresh and it gets spoiled faster due to late
delivery.
 Mahanand is the most leading brand in the Nagpur division market
followed by Amul, Dinshaw, Thorat, and Others.

 The consumption Amul Cow Products (Taja) is higher i.e.80% and

Amul Buffalo Products (Gold) is 20%.
 Most of distributors said advertisement is effective to increase a sale
 The most of distributors are give the first preference to Mahanand
after that they will select Amul Products. Mahanand products has a
nice brand image in the minds of distributors.
 Some distributors’ complaint about the late or no delivery of Amul
Products in their shop.
SWOT ANALYSIS
To analyzes the competitor strength of a company we adopt a
technique abbreviated as SWOT ANLYSIS where.

S :- Stands for STRENGTH.

W :- Stands for WEAKNESS.
O :- Stands for OPPORTUNITY.
T :- Stands for THREATS.
This technique gives a clear picture of the company i.e. were it
stands in comparison to its competitors.

Strength:
By strengths of company we mean in which areas it enjoys an advantageous
positions viz a to its competitors. These are: -
 Amul has an excellent brand image present in the market since last 55
years. So it doesn’t require investing huge amount to make brand
image.
 GCMMF Ltd. has 12 district co-operative member union dairies in
different states; hence it becomes easy for them to make their
presence in each corner of the Nation. They are striving for the quality
that’s why their products are called “The Real Products Products”.
Weakness:

By weaknesses of a company we mean that in which areas the competitors

are doing better and the company itself is suffering. Amul has some major
weaknesses: -
 Profit margin for Retailer and Distributors is comparatively less.
 Sales promotion activities, which are not satisfactory as compared to
the competitors.
 Advertisement for the product is dull, especially of Amul Products.

Opportunities:

Opportunities for a company we mean that what are new emerging areas in
which company can start its operations and should try to cash the
opportunities.
 There is a vast market for GCMMF’s products especially in
FMCG field in country.
 The company should cash the wider acceptance of its
products in the market by launching new range of products
like hot beverages, pickles, ketchup and snacks.
 The company should also enter into confectionery field.
 The company can also avail the opportunity by getting more
export oriented
Threats:

By threats we mean two types of threats. First are the threats that company is
facing now days and second are the threats, which are likely to appear in the
near future. Both these types of threats should be dealt with care otherwise
the company can suffer. Because by ignoring the threats a company can’t
survive. The present and future threats that Amul (GCMMF) is facing: -

 Amul Products is facing a cutthroat competition with the local and

national based competitors. In the areas where the research was
conducted, Amul Products had face a tough competition from the
competitors’ brands.

 Because of Liberalization and Globalization many other local as well

as national brands are entering in the market.

In addition to above, changing political scenario is also having effect on

GCMMF Ltd. has to extra caution about the political implications.
 CONCLUSION:

It was concluded that the Amul products i.e. Amul milk & Amul dairy
products is though known to its consumers but still its acceptance is
comparatively low as compared to other local brands present in the market.
Therefore, measures in terms of reach & availability and efficient sale
promotion are to be initiate to enhance sales and acceptability among the end
user. There is no awareness of Amul among the customers. So, there should
be proper advertisement and sales promotions activities by the company to
capture good market share for Amul and to enhance its awareness level,
which is very low among the customers as well as distributors.

The sale of Amul products is low due to higher prices, low margins,
improper distribution and lack of awareness about the product. So from
above studies we conclude that we have to overcome above problems to
increase the sale.
When we compare the past sale we found that sale growth has been stop and
it has started declining. i.e. the product has become mature in the given area.
 LIMITATIONS OF THE PROJECT:

DEMAND AND AWARENESS OF THE PRODUCT:

Because of no advertising of Amul milk & Amul dairy products Products in
Nagpur division city, awareness level among customers as well as
distributors is very negligible. So to get demand company should spread
awareness among customers through advertisement.

TIME DURATION:
The time duration for conducting the research was very short, due to this
one could not do justice to the Market Survey.

SAMPLE SIZE:
The sample size does not cover maximum number of distributors and
customers of Nagpur division city. The sample size was restricted to certain
number.
Some of the respondents were reluctant / hesitant to provide proper
information.
It was assumed that the findings from the respondents were correct.
Due to lack of knowledge of the geographical area, the survey was made
randomly.
 SUGGESTIONS:

 Company should provide replacement of the spoiled products to

the distributors.
 Should improve its distribution channel & chain by increasing the
no. Of distributors.
 Distributors should be only for Amul brand i.e. exclusive
distributor.
 Company should provide gifts, with their products to attract the
customers.
 There should be proper check & control over schemes given to the
distributors.
 Should provide point of display materials to each & every
distributors that can spread awareness among the customers.
 Company should give some special discount to bulk user of Amul
products.
 Should increase margin to the distributors in Amul products.
 Should provide home delivery for the convenience of the
consumers.
 The company should highlight the price tag on the product, which
will attract more customers because it is cheaper.
 Company should take care of distributors by solving their
problems and helping them proper service by appointing company
representatives.
 Timely visits should be given to the retail shops.
 Evening stall in front of high volume sale retail outlets, gym,
public place etc.
 Should try to build good PR with the distributors, as they are the
only person who is responsible for changing the perception of un-
fresh products; create awareness & demand among the consumers.
 Give adv. In health magazines, news papers, on radio & national
entertainment channels, such as STAR T.V., ZEE, SONY, Alpha
& Etv Marathi, DD channel etc. this will enhance its publicity &
awareness.
 Company can come up with an AMUL PRODUCTS PARLOR, in
which it can serve its products products in form of a different
flavors & taste. This will increase its products consumption as well
as people will find a suitable shopping mart for dairy products.
 Company should target bulk users such as institutions, hotel,
caterers, etc.
BIBLIOGRAPHY:
Books:
Marketing Research : S. L. GUPTA
Marketing Management : Philip Kotler
Marketing Management : Dr. V.S.Ramaswamy & S.Namkumari

Web sites:
www.amul.Com
http://www.indiandairy.com/
www.google.com
wws.slideshare.com
www.wikipedia.com