Professional Documents
Culture Documents
ON
THE CONSUMER PERCEPTION OF AMUL
BRAND OF
CHOCOLATES AMONGST OTHER BRAND OF
CHOCOLATES IN
DELHI / NCR
1
Certificate
I, Mr.YOGESH DAHIYA_, Roll No. _07517003909_ certify that the Project Report
(MS-204) entitled “THE CONSUMER PERCEPTION OF AMUL BRAND OF
CHOCOLATES AMONGST OTHER BRAND OF CHOCOLATES IN DELHI / NCR”
is done by me and it is an authentic work carried out by me at __AMUL_ The matter
embodied in this report has not been submitted earlier for the award of any degree or
diploma to the best of my knowledge and belief.
Certified that the Project Work Report/ (M S- 204) entitled “THE CONSUMER
PERCEPTION OF AMUL BRAND OF CHOCLATE AMONGST OTHER BRAND OF
CHOCOLATES IN DELHI/NCR “ done by Mr.YOGESH DAHIYA, Roll No.
07517003909_, is completed under my guidance.
Date:
PROF.RAJESH
BAJAJ
Designation:
Address:
Tecnia Institute of
Advanced Studies, New
Delhi-110085
Countersigned
Dean/Director
2
ACKNOWLEDGEMENT
I would like to thank my faculty guide PROF.RAJESH BAJAJ , who provided me with
the necessary information and utmost co-operation during my project and acted as a
constant source of motivation & enlightenment for me. His valuable inputs at every stage
of the research process charted the course towards the successful and timely completion
I would like to acknowledge my indebtedness to TIAS Faculty for approval and support
for my Dissertation.
RAJESH BAJAJ
07517003909
3
CONTENTS
S No Topic Page No
1 Certificate 2
2 Acknowledgement 3
3 Body of Report
Chapter-1 Introduction 5
Methodology
4
TO DETERMINE THE CONSUMER
PERCEPTION OF AMUL BRAND OF
CHOCOLATES AMONGST OTHER BRAND
OF CHOCOLATES IN
DELHI / NCR
5
6
EXECUTIVE SUMMARY
I have described about the project why it was undertaken. Where the
success came with regard to chocolates and how the research was
undertaken.
Going through the project the Finding and Analysis, the data collection,
SWOT analysis has been presented analyzed to meet the objectives of the
study.
Finally it includes the last but not least conclusions and suggestion which
present before us the gist and the crux of the study and necessary from the
in-hand experience gained out of the whole course of attaining the task of
completing the project.
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CHAPTER 1
COMPANY PROFILE
8
INTRODUCTION TO AMUL
Thirty years ago the milk producers of Gujarat had come together and decided to create
their own organization to enhance the marketing capacity of the dairy Co-operative milk
(GCMMF Ltd.). Dr. V. Kurien was the founder of this co-operative society and this
Gujarat Cooperative Milk Marketing Federation (GCMMF Ltd) is India’s largest food
Gujarat which aims to provide remunerative return to the farmers and also serve the
interest of consumers by providing quality products which are good value for money.
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AMUL’S HISTORY
Amul birth is indelibly linked to the freedom movement in India. It was Sardar
Vallabhbhai Patel who said that if the farmers of India are to get economic freedom then
they must get out of the clutches of the ‘middlemen’. The first Amul cooperative was the
called by Morarji Desai under the advice from Sardar Vallabhai Patel, to fight rapacious
milk contractors. It was Sardar’s vision to organize farmers, to have them gain control
over production, procurement and marketing by entrusting the task of managing these to
prosperity.
The decision was taken that day in January 1946. Milk producers’ cooperatives in
villages, federated into a district union, and should alone handle the sale of milk from
Kaira the government run Bombay Milk Scheme. This was the origin of the Anand
pattern of cooperatives. The colonial government refused to deal with the cooperative.
The farmers called a milk strike. After fifteen days the government capitulated. This was
the beginning if ‘Kaira District Cooperative Milk Producers’ Union Ltd., Anand
registered on 14 December 1946. Mr. V.Kurien was the founder of this cooperative
society. this society had been formed in a small village of Gujarat named Anand.
Originally the Anand pattern included dairy cooperative societies at the level. Inspired by
the Kaira Union, similar milk unions came up in the other districts too. In 1973, in order
to market their product more effectively and economically, they formed the GCMMF
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Ltd. GCMMF become the sole marketer of the original range of Amul products including
milk powder and butter. That range has since grown to include ice cream, ghee, cheese,
chocolates, shrikhand, paneer, and so on. These products have made Amul a leading food
brand in India.
The brand name AMUL, has taken from the Sanskrit Amoolya, meaning priceless, was
suggested by a quality control expert in Anand also from Anand Milk Unit Limited. The
first products with the Amul brand name were launched in 1955. Since then, they have
been in use in millions of home in all parts of India and beyond. Today Amul is a symbol
of many things: of high quality dairy products sold at reasonable price, availability,
service. Amul is the brand name of two million farmers, members of 10,000 village dairy
cooperative societies throughout Gujarat. This is the heart of Amul; it vis what is so
special about the Amul saga. Amul in 1946 was really an effort to carve out a truly Indian
company that would have the involvement of millions of Indians and place direct control
It was a mandate for producing, owning and marketing and above all, building your own
truly Indian Brand. Amuls’s birth was thus a harbinger of the economic independence of
our farmer brethren. Today, 173 milk producers’ cooperative unions and 22 federations
play a major role in meeting the demand for packed milk and milk products. Quality
packed milk is now available is more than 1,000 cities throughout the length and breadth
of India. Amul, therefore, is a brand with a difference. That difference manifests itself in
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a larger than life purpose. The purpose – freedom to farmers by giving total control over
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ORGANIZATIONAL STRUCTURE
BOARD OF DIRECTOR
MANAGING DIRECTOR
GENERAL MANAGER
EXECUTIVE
DEPUTY EXECUTIVE
ASSISTANT EXECUTIVE
SENIOR EXECUTIVE
JUNIOR EXECUTIVE
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DISTRIBUTION CHANNEL
DEPOT GODOWN
DISTRIBUTOR
RETAILERS
CONSUMER
14
INDUSTRIAL OVER VIEW OF CHOCOLATE INDUSTRY
The vital statistics of the confectionery segment seem more promising than the
conventional FMCG categories such as toilet soaps or detergents. While toilet soaps and
detergents already reach over 90 per cent of the households, both chocolate and sugar
ORG-MARG estimates suggest that chocolates penetrated just five per cent of the Indian
households in 2000. On the other hand, sugar-boiled confectionery reaches 15 per cent of
the households, leaving ample room for growth. Even considering the urban market
alone, the category reaches just 22 per cent of the urban consumers.
This category, therefore, has considerable potential to grow before it reaches saturation
point -- as have traditional FMCG products such as soaps and detergents. Chocolates and
sugar-boiled confectionery boast of even lower penetration levels than biscuits, which
reach 56 per cent of the households. The Indian confectionery market is segmented into
confectionery, consisting of hard boiled candy, toffees and other sugar-based candies, is
the largest of the segments and valued at around Rs 2,000 crore. The organised segment
is dominated by Nutrine Confectionery and Parry Confectionery, apart from the Indian
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Cadbury India and Nestle India also made a foray into this segment five years ago and
400 crore and dominated mainly by listed players Cadbury India and Nestle India. but
slipping volumes However, despite its unmistakable potential, the major players in the
confectionery industry have not fared too well in recent times in terms of sales growth.
Take the chocolate segment. Cadbury India, which derives nearly 76 per cent of its
revenues from chocolates and sugar confectionery has seen its top line growth wind down
from 19 per cent in 1999 to 12 per cent in 2000 and further to 7 per cent in the first six
months of 2001. Nestle India has managed to report healthier sales and profit growth, but
this is more on account of the contribution from milk, coffee and culinary products rather
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The only listed player in sugar-boiled confectionery has not done too well either. Parrys
sales volumes in 1998-99 and 1999-2000, after robust financial performance in earlier
years. Screeching to a halt These topline numbers only reflect the ground realities.
Industry sources estimate that the 22,500-tonne chocolate market, which grew at a robust
12 per cent per annum until 2000, grew by just three per cent in that year.
Several factors appear to behind this slowdown. As with all other FMCG products, the
demand for confectionery products appears to have been hit by the economic slowdown
and the consequent shrinkage in consumer spending. Confectionery products are impulse
foods and thus appear to have borne the brunt of a cutback in consumer spending over the
past couple of years, while staple foods have continued to exhibit healthy growth rates.
This is evident from ORG-MARG figures which suggest that the annual per capita
consumption of chocolates actually fell from 312 grams in 1999 to 307 grams in 2000,
while that for sugar boiled confectionery fell from 621 grams to 579 grams (source:
ORG-MARG Milestone Papers: The Growth Inertia). Branded staples such as atta and
salt registered a healthy increase in per capita consumption over this period.
No price hikes
Despite fairly aggressive promotional efforts by marketers, the overall penetration level
17
Consumption of chocolates could have been impacted by the selling price increases that
marketers effected between 1999 and 2000. In 1999 and 2000, selling prices of key
chocolate brands were pegged up by 5-15 per cent, partly reflecting a spike in cocoa
prices in that period. This probably contributed to the sales growth for the year.
However, with cocoa prices falling sharply in the second half of 2000, marketers were
forced to maintain selling prices of most products, holding back value growth in sales.
Cadbury India, the market leader in the chocolate segment (market share 71.9 per cent)
saw the growth in its chocolate portfolio slow to 6 per cent in the April 2006 to April
2007 period, from nine per cent the previous year. This was mainly due to the healthy
double digit growth rates in its flagship brand -- Cadbury's Dairy Milk. Brands such as 5
commanding a total market share of 24.7 per cent) slowed even more dramatically,
registering less than one per cent growth between April 2006 and April 2007. Though
Nestle's recent launch, Munch, has been a success, the low-priced brand has moderated
the value growth in Nestle's portfolio. Wooing adults now The avenue for growth appears
to lie in taking advantage of the low penetration level for chocolates by roping in new
targeted at children, as a snack food for adults. Cadbury's chocolate-coated wafer Perk
and Nestle's Charge and Munch were essentially sold on this platform.
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Though products such as Perk did succeed initially (Cadbury India claims to have added
nine million new consumers in 2007), growth in this segment appears to be petering out.
Both Perk and KitKat (thechocolate-coated wafer which is central to Nestle's chocolate
portfolio), have shown signs of stagnation in 2001, actually reporting negative growth
rates for a few of the months. Banking on smaller editions Of late, the chocolate majors
have been rejigging their products to launch chocolates in the Rs 10 and Rs 5 price
points. Mimicking the trend in other FMCG products, the chocolate majors have been
relaunching their conventional chocolate brands in smaller unit packs, hoping that this
The past year has seen a slew of such launches, the 18-gram version of 5 Star (retailing at
Rs 5), the 15-gram version of Cadbury Dairy Milk (Rs 5), Perk Slims (Rs 5), Cadbury
Chocobix (a chocolate biscuit combination priced at Rs 5), Nestle Crunch (a mini snack
It is early days yet to judge if this has indeed pepped up volume growth in the segment.
However, the chocol`1ate majors do not have much to lose. Unlike the low unit pack
versions of products such as shampoos, the low unit packs of chocolates do not cost less
In most cases, the grammage offered under the low priced packs, has been brought
down in the same proportion as the price, leaving realisations for the
chocolate majors untouched.
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PEOPLE POWER: AMUL'S SECRET OF SUCCESS
20
PROBLEMS OF THE ORGANIZATION
It is not a hidden fact the Amul has its own image or brand which show the value of
money for its product. The AMUL’S have a great product line and depth. AMUL’S
products are Amul Butter, Amul Cheese Amul confectionery, Amul Flavored Milk and
If we give a overall look on the all market position of AMUL’S product almost all
product have a grate market share in other hand all product are market leader with there
grater sales volume and high turn over, for example AMUL Butter, AMUL Flavored
milk, AMUL Mogerella chess. But in case of AMUL Chocolate the position of AMUL is
not satisfactory. It is generally consider AMUL is in the 3rd position after CADBURY
and NESTLE. Both the company has separate distribution channel for chocolate, they are
giving high priority to confectionery products. They are providing easy replacement, high
penetration, and regular visit to retailers shop. Most importantly they are providing cool
storage equipment to their retailers and they positioning their product through heavy
advertisement campaign.
Recently the AMUL Chocolate is re-lunched in market but the position remains same,
which is very critical for the company. After re-lunched, the sale volume and customer
awareness about the all chocolate products remain unsatisfactory, which create harsh
situation for all organization. Company highly willing to excel in the chocolate field there
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There are some problems, which is as follows: -
• Replacement
PRODUCT PROFILE
Product Specification
22
Composition:
• Milk Fat 2%
• Sugar 55%
23
CHAPTER 2-
CONCEPTUAL
FRAMEWORK &
RESEARCH
METHODOLOGY
24
REVIEW OF LITERATURE
The first Amul cooperative was the result of a farmers’ meeting in Samarkha
(Kaira district, Gujarat) on 4 January 1946. The brand name AMUL, has taken
from the Sanskrit Amoolya, meaning priceless. The first products with the
Amul brand name were launched in 1955
The earliest record of chocolate was over fifteen hundred years ago in the
central America rain forests, where the tropical mix of high rain fall combined
with high year round temperatures and humidity provide the ideal climate for
cultivation of the plant from which chocolate is derived, the cacao tree.
“Chocolate is made from the cocoa bean, found in pods growing from the
trunk and lower branches of the cacao tree
Now day’s dealers are expecting the promotion activity for availability of the
product at the right time is vary important. It happens where dealers will be
least care about the brand availability by offering this promotion activity
Cadbury will be able to hit the minds of dealers and again this activity will
also helps in improving the image of Cadbury where it is weak, as well as the
specialties like dairy milk etc.
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RETAILERS’ EXPECTATION
• Around 90% of the retail markets are ready for Amul chocolate as they
1 FREEZER: -
All the chocolate company viz. Cadbury and nestle give their own freezers
and the retailers are not allowed to stock other companies product in it. The freezer
now being provided by Cadbury are two type. The first serve the dual purpose of
storage and also a display counter as they come with a transparent glass. According to
the retailers these freezer have added to their sales now the customer can actually see
that various chocolate kept inside further these chocolate operate on only 100 watts of
electricity can on an inverter too and the chocolate does not melt up to a long time.
The second type of freezer is the rack freezer. The deposit taken generally depends on
size and the kind of freezer taken but in certain cases I found out that the retailer
differ and tend to be flexible with the amount of sales given by that particular
retailers.
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2. ADVERTISING: -
This is another factor that affect the retailers a lot. All the major player
and especially Cadbury takes special care in this respect. Nestle also does the
advertising but not as Cadbury. Amul has to taken aggressive advertising countered
especially at Delhi market. The retailers have Cleary stated that they would first see the
demand of the product in the market coupled with advertising support from the
company and only them they would be interested in stocking Amul chocolate.
3. REPLACEMENT POLICY :-
Amul is already blamed for poor replacement policy and with two major player
giving this policy. Amul has to giving certain kinds of replacement policy to make its
product more acceptable to the retailers for instance Cadbury gives 100% replacement for
product defects and around 80% replacement for damage due to some the time taken by
Big retailers said that they would keep the product only when the customer demand for it.
There policy and other retailer said that the quality of chocolate should be good and
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5 . PROPER DISTRIBUTION :- Cadbury have sound distribution system. They give
their dealer a lot of monetary benefits through schemes and dealers in turn taken care
The dealers also take care of malignance of freezer in the event of these to repair the
freezer.
6. SCHEMES :-
During the festival season viz. rakha-bandan, depawali, and other religious
function Cadbury promote their product by giving special offer to there retailer as well as
to there customer. In this time every company try to maximize there sale and advertise
there product in same way so Amul should try to do in this line too.
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SIGNIFICANCE AND SCOPE OF STUDY
Consumer Perception plays a vital role in success or failure of any particular brand or
product. The study has been undertaken to study the perception of Amul brand of
chocolates amongst chocolates customers in DELHI / NCR and to determine the extent to
which the company has been successful in achieving their objectives.
From the study one can easily infer the present market position of Amul chocolate with
its leading competitors. The study is designed and focused primarily on identifying the
present market position of the Amul chocolate. It also includes identification of its core
competitors and enhancing efforts towards brand repositioning in present and in future.
• To find out the profiles of the consumers of Amul Chocolates in Delhi NCR
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30
RESEARCH METHODOLOGY
i) PRIMARY SOURCE –
Questionnaire
Personal Discussion and Interview
ii) SECONDARY SOURCE –
• Websites
• Magazines and Newspapers
31 years + 20 persons
• BAR GRAPH
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CHAPTER-3
DATA REDUCTION
&
PRESENTATION
32
DATA ANALYSIS OF CUSTOMER QUESTIONNIERS
AGE yes no
67% Customer s eat chocolate, and 33%. of customers don’t eat chocolates
33
AT WHAT TIME DO YOU LIKE TO EAT CHOCOLATES
50%
40%
0%
any time celebration
No
reason
34
WHICH TYPE OF CHOCOLATES DO YOU LIKE MOST
INTERPRETATION
consumer, lesser People like candy, and few people like all kind of chocolate
35
WHICH TYPE OF FLAVOUR DO YOU LIKE MOST
According to Survey 22% Customer Prefer Milky Flavor, 26% Prefer Coffee,
22% Prefer Fruit-n-Nut, 2% Prefer Milky and Coffee,12% Prefer Milky and Fruit-
n-Nut, 8% Prefer Coffee and fruit-n-Nut,2% prefer All Flavors and only 6%
36
WHAT IS IN YOUR MIND WHILE PURCHASING CHOCOLATE
While Purchasing Chocolate majority of the Customer Prefer Flavors, very few
37
HOW MUCH DO YOU LIKE TO SPEND ON CHOCOLATE PER WEEK
70% customer spend below Rs/-50 on chocolate 20% customer spend Rs/-50-100
38
HOW DO YOU RATE THESE BRANDS BASED ON THE PARAMETERS
AMUL
NESTLE
39
CADBURY
40
ARE YOU AWARE OF
58% customer are well aware about the Amul milk chocolate,23% customer are
well aware about the Almond Bar,10% customer are well aware about the
Chocozoo,5% customer are well aware about the Fundoo,4% customer are well
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RETAILERS QUESTIONNAIRE
42
CHOCOLATES ARE ALWAYS PURCHASED BY WHOM
Children are the ones who mostly buy the chocolates, followed by their parents,
43
ARE YOU AGREEING THAT CHOCOLATES ARE ALWAYS IMPULSIVE
PURCHASE
75% retailers agree that chocolate are always impulsive purchase, 20% feel that it
is not impulsive purchase, and only 5% agree that to some extent it is impulsive
purchase.
44
WHICH BRAND OF CHOCOLATES DO YOU SELL
Approximately 90% of retailers sell all the 3 major brand of chocolates ie Amul,
45
WHICH BRAND IS MOST PREFERRED BY THE CUSTOMERS
46
WHAT IS THE DEMAND DRIVEN FORMULA FOR THE CUSTOMERS
Taste and quality are the most demand driven factors for the customers
47
HOW DO YOU RATE THESE
AMUL
CADBURY
48
NESTLE
Distribution and Sales/Month are the highest rated factor for all the three major
brands of chocolates.
49
DO CUSTOMERS DEMAND THE CHOCOLATES BY THEIR BRAND NAME
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CHAPTER-4
DATA ANALYSIS
51
S.W.O.T ANALYSIS
STRENGTH:-
WEAKNESS:-
52
OPPORTUNITY:-
• Focused approach towards small market can also increase the sale of
Amul Chocolate.
• New schemes can be provided to the retailers to attract them to push the
THREATS:-
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CHAPTER -5
SUGGESTIONS &
CONCLUSION
54
CONCLUSION
• Amul Chocolate enjoys the trust of the retailers as well as the consumer because
• Some distributors do not give proper information to the retailers about the product
and offers given by the company for the promotion of the Amul Chocolate. This
• There is some problem with the packaging of the product. As a result the
• Some of the competitors are providing easy replacement facility to the retailers
• Some of the competitors are providing wider margins to the retailers. Wider
margin is making the retailers to push the sales of the competitors. There are some
of the areas in Delhi /NCR are not yet tapped properly by the company.
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SUGGESTIONS
• The company should try to build some feed back mechanism from the retailer
the wholesaler try to hamper the goodwill as well as the other benefit of the
• The company should maintain separate distribution channel for the chocolate
because it is seem mostly during study that one single distribution deals all
product, as it is not a hidden fact that the product line and product depth is very
wide.
• The company should provide new schemes on the regular basis to the retailers as
• During my project this fact become clear that the customer are not well aware
about the all product item of amul chocolate so through the strong advertisement
well as Nestlé both company provide refrigerator and display box for proper
on this line.
all chocolate products need special kind of care but there some unavoidable factor
damage the chocolate so company should provide revive the policy about the
56
LIMITATIONS OF THE STUDY
Although all efforts were taken to make the result of survey as accurate as possible the
• Retailers are not willing to give answers of the questions due to their busy
schedules.
• A few retailers were not cooperating during the project survey. It was quite
• Due to the time constraint period it was not possible to explore more areas of
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BIBLIOGRAPHY
BOOKS REFERRED
SEARCH ENGINE:-
• www.google.com
• www.yahoo.com
WEB SITE:-
www.amul.com
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ANNEXURE-A
CUSTOMER QUESTIONNAIRE
Yes □ No. □
Others □
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7. How do you rate these brand base don the parameters mentioned below @ 1-4
Yes No.
ANNEXURE-
RETAILER’S QUESTIONNAIRE
60
1. Do you sell the chocolates?
Yes □ No □
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CHOCOLATES DISTRIBUTION PROFIT MARGIN SALES/ MONTH
NAME CHANNEL
AMUL
CADBURY
NESTLE
OTHERS
Respondent details
Name : ___________________________________________
Address: __________________________________________
Thank you very much for your kind co-operation and invaluable time.
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