27951878 Amul Project
-
Upload
manjrekar-rohan -
Category
Documents
-
view
257 -
download
3
Transcript of 27951878 Amul Project
-
7/27/2019 27951878 Amul Project
1/100
1
-
7/27/2019 27951878 Amul Project
2/100
PROJECT REPORT ON ON
PROJECT REPORT ON
ONMarket Analysis & Sales Development of Amul Milk
This study was conducted from 8th June 09 to 8th August 09
AtGujarat Co-operative Milk Marketing Federation Limited
BY:
PRASANTA KUMAR MOHAPATRAPGDM
OFOFOF
ASIAN SCHOOL OF MANAGEMENT
A report submitted in partial fulfillment of the requirements ofPGDM (2008-10)
Company Guide: Faculty Guide:Mr. PRANIL JADHAV PROF. K K BHASINSENIOR EXECUTIVE (SALES)
GCMMF Ltd. PUNE
-
7/27/2019 27951878 Amul Project
3/100
2
-
7/27/2019 27951878 Amul Project
4/100
PREFACE
The PGDM programme is well structured and integrated course of business studies. Themain objective of practical training at PGDM level is to develop skill in student bysupplement to the theoretical study of business management in general. Industrialtraining helps to gain real life knowledge about the industrial environment and
business practices. The PGDM programme provides student with a fundamentalknowledge of business and organizational functions and activities, as well as anexposure to strategic thinking of management.
In every professional course, training is an important factor. Professors give ustheoretical knowledge of various subjects in the college but we are practically exposed ofsuch subjects when we get the training in the organization. It is only the training throughwhich I come to know that what an industry is and how it works. I can learn aboutvarious departmental operations being performed in the 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 thetraining for 2 months in a company and then prepare a project report on the same after
the completion of training.
During this whole training I got a lot of experience and came to know about themanagement practices in real that how it differs from those of theoretical knowledge andthe practically in the real life.
In todays globalize world, where cutthroat competition is prevailing in the market,theoretical knowledge is not sufficient. Beside this one need to have practicalknowledge, which would help an individual in his/her carrier activities and it is true thatExperience is best teacher.
-
7/27/2019 27951878 Amul Project
5/100
3
-
7/27/2019 27951878 Amul Project
6/100
CERTIFICATE
The following summer internship project report titled MARKET ANALYSIS &
SALES DEVELOPMENT 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 study in management carried out and presented in a manner
satisfactory to warrant its acceptance as a prerequisite for the award of post-graduate
diploma in management (PGDM). For which it has been submitted. It is understood that
by this approval the undersigned do not necessarily endorse or approve any statement
made, opinion expressed on conclusion drawn therein but approve the summer
internship report only for the purpose it is submitted.
Signature SignatureProf. K.K BHASIN Mrs. K MadhaviFaculty guide Director
-
7/27/2019 27951878 Amul Project
7/100
-
7/27/2019 27951878 Amul Project
8/100
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.
SignatureProf. K.K BHASIN
Faculty guide
-
7/27/2019 27951878 Amul Project
9/100
5
-
7/27/2019 27951878 Amul Project
10/100
ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for Gu
Co-operative Milk Marketing Federation Ltd. It has been an enriching experience for m
undergo my summer training at GCMMF, which would not have possible without the goo
and support of the people around. As a student ofAsian School of Management, Pune I w
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 tocomplete this project. I would like to thank my college authorities and Director Mrs.Madhavi Khare, for providing me the opportunity to work with the one prestigiousorganization.
I would like to give my heartily gratitude to the Mr. Pranil 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 progress 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 give 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 beextremely grateful to the readers of this project report if they bring such mistakes to mynotice.
6
-
7/27/2019 27951878 Amul Project
11/100
DECLARATION
I hereby declare that the following project report titled MARKET ANALYSIS &
SALES DEVELOPMENT OF AMUL MILK at Gujarat Co-operative Milk
Marketing Federation Ltd., 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
profound and honest work of mine.
Date: Signature
Mr. PRASANTA KUMAR MOHAPATRA
-
7/27/2019 27951878 Amul Project
12/100
7
-
7/27/2019 27951878 Amul Project
13/100
-:CONTENTS:-
Sr. Subject Page No.No.1 EXECUTIVE SUMMARY 9
2 INTRODUCTION 12
3 INDUSTRY & COMPANY PROFILE 16
4 OBJECTIVE & SCOPE OF STUDY 43
5 RESEARCH METHODOLOGY 45
6 DATA PROCESSING & ANALYSIS 51
7 OBSERVATION & FINDINGS 68
8 LIMITATIONS 71
9 CONCLUSION 73
10 SUGGESTION & RECOMMENDATION 75
11 BIBLIOGRAPHY & WEBLIOGRAPHY 78
12 ANNEXURE 80
8
-
7/27/2019 27951878 Amul Project
14/100
EXECUTIVE SUMMARY
9
-
7/27/2019 27951878 Amul Project
15/100
In todays competitive world while entering in the market it is very necessary to have good knowledge
of the potential of a particular market. The information regarding the activities of competitors
existing in the market so that we can plan our each activity according to that. It is also necessary to
retain the existing customers apart from attracting the new customers.
The Project is concern with 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 Title:
MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY.
1.2 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 the 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 suggestions from retailers for more penetration of Amul dairy milk in Pune
region.
The secondary objective was to find customer response towards Amul milk. My aim was to go through
the customers to know the interest of purchasing & using Amul milk. Basically the study was for the
demand of Amul milk among the customers. And also to know the complaints on Amul milk.
1.4 Research Methodology:
Research type was descriptive. The research was done through retailers. I have collected the primary
data through questionnaire which was filled by retailers, customers. Questions were both
open and close ended. The secondary data was collected from website www.amul.com.
Sampling done is nonprobability sampling. The type of sampling method was Judgment sampling.
10
-
7/27/2019 27951878 Amul Project
16/100
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 of Amul
dairy milk among the retailers as well as consumers is average but acceptance 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 Amul 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 high potential in the
market and it is the known to its customers but still its acceptance is comparatively low as other
competitors present in the market, because perception of customers towards the product is wrong, most
of the consumer continuously using other brand and they do not want to switch over
other brand.
11
-
7/27/2019 27951878 Amul Project
17/100
INTRODUCTION
12
-
7/27/2019 27951878 Amul Project
18/100
2.1 CONTEXT OF THE TOPIC:
The dairy industries companies run mainly on the factors such as availability, service frequency,
affordability, taste and marketing. Availability is plays a vital role because purchasing power is depend
upon availability of that product, in case distributors and retailers service matter a lot. Retailing
includes all the activity in selling goods or service directly to the customers or personal nonbusiness use
.A retailer or retail store is any business enterprises whose sales volume comes primarily from retailing.
Retailers are the part of milk marketing channels and perform the work of moving goods from
producers to the customers. It overcomes 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 anumber of key functions. Some functions (physical, title, promotion) constitute 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 directions.
The project delves into the workings from the distribution aspect of an FMCG organization, in detail.
AMUL, being an FMCG company, attaches a lot of significance 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 retailer- friendliness 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 parlors, and
competitors outlets. This project was carried out in Pune city. For analyzing and presenting
information that is tied to geographical location, we divided the city in different wards. By analyzinggeographical representation and sales data with spatial distribution Amul outlets, competitors
outlets and the density of others in an area, we identify unexplored area and plan location outlets to
increase its market penetration. Using such research we can ascertain the quality and depth of retail
penetration in specific area.
13
-
7/27/2019 27951878 Amul Project
19/100
Addition to this we carried out sales promotion activity through discount coupons. Sales promotion
consists of diverse collection of incentive tools, most short-term designed to stimulate and/or greater
purchase of a particular product by consumers 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, dealer sales contests); sales force promotion (for example bonuses,
contests, sales rallies).
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, premiums, prizes, cross promotion
and coupons etc. We decided to use discount coupons. 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.
14
-
7/27/2019 27951878 Amul Project
20/100
2.3 Need of Study:
Managers are always curious about the position of their companys products in the market which
largely depend upon the companys goodwill, and the position of their brand. In order to maximize the
sale and profit, company must deliver outstanding satisfaction to the retailers, wholesaler &
customers. So market survey of retailers, wholesalers & customers, chart out the position of the
company as compared to the competitors. It helps the organization to find out the brand being sold
most by the retailers along with their stocking and also consumer buying preferences.
2.4 Statement of The Problem:
MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY
It helps to study all activities which can be used to influence large number of customers so as to
increase the sales of the Amul milk effectively.
15
-
7/27/2019 27951878 Amul Project
21/100
INDUSTRY&
COMPANY PROFILE
16
-
7/27/2019 27951878 Amul Project
22/100
3.1 Industry Profile:- 3.1.1 The
World Dairy Situation:
According to a report published by International Dairy Federation (IDF) on the World 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 tonnes 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 tonnesin China and 94.60 million tonnes in India. India would continue to be the largest milk producer,
followed by the US, with projected production of 82.60 million 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 expected to decline again in 2007-08.
Industrial cheese production is continuing to grow. The major cheese producing regions are Europe and
North America and both 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 dairy products, especially liquid milks of UHT
type, coffee cream and coffee whitener including some of the non-dairy origin.
World trade in dairy products after a period of relative stagnation, started recovery in the second half
of 2006-07 and it continued in the first half of 2007-08. The recovery is due to prosperity
resulting from economic demand. However, the 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.
-
7/27/2019 27951878 Amul Project
23/100
17
-
7/27/2019 27951878 Amul Project
24/100
The outlook for the trade in dairy commodities for 2007-08 appears bright. However, 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 growth in 2007-08 at the same momentum as in previous years.
Because of the price situation in 2007-08, one may ask whether demand can follow the expected trends,
but it would be premature to expect stagnation in the trade. In established markets, the potential for
demand to reduce slightly can release the additional supplies, which are needed to maintain the growth
of trade.
3.1.2 Indian Dairy Industry -- A Profile:
Indias dairy sector is expected to triple its production in the next 10 years in veiw of expanding
potential for export to Europe and the West. Morever with WTO regulations expected to come into
force in coming years all the develope countries 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
cost producer of per litre of milk in the world, at 27 cents, compared with the US 63 cent. Also to take
advantage of this lowest cost of milk production and increasing production in yhe country
multinational companies are planning to expand their activities here. Some of those milk producers
have already obtained quality 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 going 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 Indian dairy produce is expected to be Rs 10, 00,000 million. Presently
the market is valued at around Rs7, 00,000mn.
-
7/27/2019 27951878 Amul Project
25/100
18
-
7/27/2019 27951878 Amul Project
26/100
3.1.3 Co Operative Unions:
Backward integration of the process led the cooperatives to advances in animal husbandry and
veterinary practice. The system succeeded mainly because it provides 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 not 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, when
the profit of the business was cornered by the middlemen, the system ensured that 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 competition snapping at
its heels, the sector which has been governed by arcane laws until the recent past will see a special
provision inserted in the companies Act, 1956. All the cooperative unions will be re- christened
cooperative companies; they will come under the purview of the registrar of companies, instead of the
registrar 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 producers cooperative unions, which federate into 15 state
co-operative milk marketing federations.
The dairy board's programmes and activities seek to strengthen the functioning of dairy co- operatives,
as producer-owned and controlled organizations. NDDB supports the development of dairy
co-operatives by providing them financial assistance and technical expertise, ensuring a better future
for India's farmers.
Over the years, brands created by cooperatives have become synonymous with quality and value.
Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini
(Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer
confidence.
-
7/27/2019 27951878 Amul Project
27/100
19
-
7/27/2019 27951878 Amul Project
28/100
-: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)
Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF)
Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF)
Maharashtra Rajya Sahkari Maryadit Dugdh Mahasangh (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 Ltd (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 societiesIs owned by nearly 12 million farmer members.
Apart from making India self sufficient in milk, these dairy co-operatives have established
our country as the largest milk-producing nation in the world.
20
-
7/27/2019 27951878 Amul Project
29/100
3.2 The Organization:
3.2.1 Introduction & History:
In the year 1946 the first milk union was established. This union was started with 250 liters of milk per
day. In the year 1955 AMUL was established. In the year 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 AMULYA. This word derived form the Sanskrit word AMULYA
which means PRICELESS. A quality control expert in Anand had suggested the brand name
AMUL. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk
Powder, 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 many things like of the high-quality products
sold at reasonable prices, of the genesis 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 dairy
development (Generally known as ANAND PATTERN).
In the early 40s, the main sources of earning for the farmers of Kaira district were farming and selling
of 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 accept it without uttering a single word.
-
7/27/2019 27951878 Amul Project
30/100
21
-
7/27/2019 27951878 Amul Project
31/100
However, when the exploitation became intolerable, the farmers were frustrated. They
collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom
movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co- operative
union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai
in order to gain 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 collection of the milk.
These village societies would collect the milk themselves and would decide the prices at which they can
sell the milk. The district union was also form to collect the milk from such village co-operative
societies and to sell them. It was also resolved that the Government should be asked to buy milk from
the union.
22
-
7/27/2019 27951878 Amul Project
32/100
However, the govt. did not seem to help farmers by any means. It gave the negative response by
turning down the demand for the milk. To respond to this action of 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 scheme 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 district level to collect and sell milk on a
cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest
in establishing union 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.
23
-
7/27/2019 27951878 Amul Project
33/100
At the initial stage only 250 liters of milk was collected every day. But with the growing awareness of
the benefits of the cooperativeness, the collection of milk 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 period. 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 develop the chilling unit at various
junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus,
today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073
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 manufacture milk powder and butter was planned.
Dr.Rajendra Prasad, the president of India laid the foundation on November 15, 1954. Shri Pandit
Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955.
-
7/27/2019 27951878 Amul Project
34/100
24
-
7/27/2019 27951878 Amul Project
35/100
3.2.2 Amul Secret Of Success:
The system succeeded mainly because it provides 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 not 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, when the profit of the business was
cornered by the middlemen, the system ensured that the profit goes to the participants for their
socio-economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a pattern and model foremulation elsewhere.
Amul has been able to:
Produce an appropriate blend of the policy makers farmers board of management and the
professionals: each group appreciating 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-economic 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
members. In that sense, Amul is an example par excellence, of an intervention for rural change.
-
7/27/2019 27951878 Amul Project
36/100
25
-
7/27/2019 27951878 Amul Project
37/100
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 LIMITED), a name which suggest THE TASTE
OF INDIA.
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 hands 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 customers. Fourth hand is of
customers, without whom the products would have not carried on.
-
7/27/2019 27951878 Amul Project
38/100
26
-
7/27/2019 27951878 Amul Project
39/100
3.2.3 GCMMF Overview:
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing
organisation. It is a state level apex body of milk cooperatives 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 value for money.
Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest Organisation in FMCG
industry engaged in marketing of milk & milk products under the brand names of AMUL and SAGAR
with an annual turnover exceeding Rs 5000 crores.
GCMMF is a unique organisation. It's a body created by Farmers, managed by competent professionals
serving a very competitive and challenging consumer market. It is a true testimony of synergistic
national development through the practice of modern management methods.
3.2.4 Vision:
GCMMF will be an outstanding marketing organization, with specialization in marketing of food and
dairy products both fresh and long life with customer focus and IT integrated. The network would
consist of over 100 offices, 7500 stockiest covering at least every Taluka. Head quarter servicing
nearly 10 lakh outlets with 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 customer of the world
through excellence in the marketing by our committed team. Through co-operative networking,
we are committed to offering quality product that provides best value for money.
27
-
7/27/2019 27951878 Amul Project
40/100
3.2.6 Organization Structure:
Organization Structure is divided into two parts:
External Organization Structure
Internal Organization Structure
External Organization Structure
External Organization Structure is the organization structure that affects the organization 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-operative
organization. The villagers of more than 10000 villages of Gujarat are the bases of this structure. They
all make village milk producers union, district level milk producers union and then a state level
marketing federation is established. The structure is line relationship, which provides easy way to
operation. It also provides better communication between two stages.
28
-
7/27/2019 27951878 Amul Project
41/100
-
7/27/2019 27951878 Amul Project
42/100
3.2.7 Production Function:
Explosion of the production technology and changes in technical field is going to bring out revolution
in the industry sector which eventually gives stand to study and favors the come backing subject i.e.
production and management.
Production and operation management is planning, organizing, staffing, directing and controlling
of all the production system those portion of organization that convert inputs into products and
services. In general production system takes raw material, personnel, machines, buildings and
other resources and produce products and services.
The core of production system is its conversion subsystem where in workers; 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 cost products and superior quality in timely manners.
Thus, there arises enormous need 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.
-
7/27/2019 27951878 Amul Project
43/100
30
-
7/27/2019 27951878 Amul Project
44/100
Operating Analysis-
Amuls only source of raw material is Village Milk societies. Milk is brought from such village milk
societies every morning and evening. This milk is then sent to the dairy plant. In the dairy plant the milkis processed i.e. it is made free 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
-
7/27/2019 27951878 Amul Project
45/100
3.2.8 Distribution Network:
Most producers work with marketing intermediaries to bring their products to market. The marketingintermediaries make up a marketing channel also called distribution cannel. Distribution channels aresets of interdependent organizations involved in the process of making a product or service availablefor use or consumption.
The Head Office of GCMMF is located at Anand. The entire market is divided in 5 zones. The zonaloffices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover there are 49Depots located across the country and GCMMF caters to 13 Export markets.
A zero level of channel also called a direct marketing channel consists of a manufacturer selling
directly to the final customers. A one level channel; contains one selling intermediary such as retailer tothe final customers. A two level channel two intermediaries are typically wholesaler and retailer. Athree level channel are typically wholesaler, retailer and jobber in between.
GCMMF has an excellent distribution. It is its distribution channel, which has made it so popular.GCMMFs products like milk and milk products are perishable. It becomes that much important forthem to have a good distribution.
Distribution Chart
oducts
Agents
Wholesaler
Retailer
Consumer
We can see from above figure that GCMMF distribution channel is simple and clear. The productschange hands for three times before it reaches to the final consumer. First of all the products are storedat the Agents end who are mere facilitators in the network. Then the products are sold to wholesaledealers who then sell to retailers and then the product finally reaches the consumers.
32
-
7/27/2019 27951878 Amul Project
46/100
3.2.9 Managing Competition:
The Indian market is dominated by a large number of small local and regional players. There are anestimated 150 manufacturers in the organized segment, which accounts 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 value. Along with good quality products and reasonable price the packaging is also very
good. Most of its products are available in many flavors. Excellent advertising backs its products andhelps 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 products are exported by GCMMF.
3.2.10 Advertising by Amul:
Amul has two agencies that look after its entire range of products namely FCB Ulka and Da Cunha.
FCB Ulka looks after a broad range of products namely, Amul Lite 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 Coffee whitener, Amul Spray Infant Milk Food, Amul Mithaee,
Amul Gulab Jamun, Amulya Dairy Whitener, Mithaimate Sweetened Condensed Milk, Amul Ice
cream, Sagar Skimmed Milk Powder and Amul Whole milk Powder.
Da Cunha looks after the Amul butter. Da Cunha also prepares the very popular Amul butter billboard
campaigns, which we see at various locations. Over and above the Amul butter, Da Cunha also looks
after the Amul Cheese, Cheese spread, Gouda Cheese, Emmental Cheese, Masti Dahi and Buttermilk,
Amul Slim-n-Trim, Amul Taaza and Amul Gold (all different brands of milk), Amul Fresh Cream,
Amul Chocolate Milk, Amul Fresh Milk and Nutramul.
FCB Ulka also looks after the corporate campaign.
33
-
7/27/2019 27951878 Amul Project
47/100
3.2.11 Sales Turnover:
Sales turn over of GCMMF from 1994 to 2009:-Sales Turnover Rs (million) US $ (in million)
1994-95 11140 355
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
3.2.12 Areas of Operation:
Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,
Australia, China, Singapore, Hong Kong and a few South African nations. Other potential
markets being considered include Sri Lanka.
34
-
7/27/2019 27951878 Amul Project
48/100
3.2.13 Some Facts:Members: 13 district cooperative milk producers' Union
No. of Producer Members: 2.79 million
No. of Village Societies: 13,328
Total Milk handling capacity: 11.22 million litres per day
Milk collection (Total - 2008-09): 3.05 billion litres
Milk collection (Daily Average 2008-09): 8.4 million litres
Milk Drying Capacity: 626 Mts. per day
Cattlefeed manufacturing Capacity: 3500 Mts per day
3.2.14 Achievement & Awards:
Amul: Asias largest dairy co-operative was created way back in1946 to make the milk producer
self-reliant and conduct milk- business with pride. Amul has always been the trend setter in bringing
and adapting the most modern technology to door steps to rural farmers.
Amul created history in following areas:
First self motivated and autonomous farmers organization comprising of more than 5000000
marginal milk producers of Kaira District.
Created Dairy co-operatives at village level functioning with milk collection centers owned bythem.
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 to produce milk from powder from surplus milk. 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.
35
-
7/27/2019 27951878 Amul Project
49/100
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 toAmul dairy.
1988. Best Productivity awarded for the second successive year 1986-87 by the president ofIndia, Mr. R. Venkatrao to kaira union.
1993. ICA Memenoto towards genuine and self sustaining cooperative worldwide ICA regionaloffice for Asia and pacific, New Delhi, 1996.
1999. G.B.Birla award. Moreover the Amul union has achieved the prestigious ISO 9001-2000 andHACCP Certificate and effects are got to obtain ISO 14000.
1999. Best of All" Rajiv Gandhi National Quality Award for the year,
2000. The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer in theservice category of the prestigious IMC Ramkrishna Bajaj National Quality Award.
2006-07: GCMMF has bagged award for excellent performance in exports of dairy products fromAgricultural and Processed Food Exports Development Authority (APEDA).
2007. Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit.
36
-
7/27/2019 27951878 Amul Project
50/100
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 Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned
Utterly 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 Ladoos
Pure Ghee
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee
37
-
7/27/2019 27951878 Amul Project
51/100
UHT Milk Range
Amul Shakti 3% fat Milk
Amul Taaza 1.5% fat Milk
Amul Gold 4.5% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk
Amul Shakti Toned Milk
Amul Fresh Cream
Amul Snowcap Softy Mix
Infant Milk Range
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 (6 months above)
Amulspray Infant Milk Food
Milk Powders
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
Fresh Milk
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardized Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk
38
-
7/27/2019 27951878 Amul Project
52/100
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, Badshahi 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, Raspberry Dolly, Shahi Badam Kulfi, ShahiPista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)
Cool Candies (Orange, Mango)
Cassatta
Tricone Cones (Butterscotch, Chocolate)
Megabite Almond Cone
Frostik - 3 layer chocolate Bar
Fundoo Range - exclusively for kids
SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)
Health Isabcool
39
-
7/27/2019 27951878 Amul Project
53/100
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
-
7/27/2019 27951878 Amul Project
54/100
PLANTS
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk butter etc.
Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia
and Amul lite.
41
-
7/27/2019 27951878 Amul Project
55/100
Third plant is at Kanjari, which produces cattelfeed.
Fourth plant is at Khatraj, which engaged in producing cheese.
42
-
7/27/2019 27951878 Amul Project
56/100
OBJECTIVE&
SCOPEOF THE STUDY
43
-
7/27/2019 27951878 Amul Project
57/100
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 Gold in specific areas of Pune
city.
1.To find the problems faced by retailers in selling and storing.
2.To collect the information about the competitors.
B.Secondary Objective
1.To organize sales promotional activities to improve milk 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 provides suggestions to the company to improve their products sales.
It gives information about the sales promotion activities to improve the milk
sale
44
-
7/27/2019 27951878 Amul Project
58/100
RESEARCHMETHODOLOGY
45
-
7/27/2019 27951878 Amul Project
59/100
5.1 Research Methodology:
The research was conducted from 8th June, to 8th July, 2009. The research include meetings with the
retailers, consumers and dealers. It included preparation of the questionnaire to be answered by abovepeople for knowing the competitive position of Amul in the milk market. The views of the above parties
were recorded in the research 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 was desirable. Thus we
conducted the research as the representative of Amul company 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 formulated 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 to decide which types of question are to be
used. Question can be classified in various ways.
Questionnaire contains following type information-
1.Open-ended question
2.Dichotomous question
3.Multiple-choice Question
Both the questionnaire consists of all three types of question. Mostly all questions are multiple typequestions. Dichotomous question are few in number. There is only one open-ended type question.
-
7/27/2019 27951878 Amul Project
60/100
46
-
7/27/2019 27951878 Amul Project
61/100
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 related to reason and satisfaction.
5.1.5 Sampling Plan:
Sample Size:
The sample size was as follows:
SR. NO. RESPONDENT TOTAL NUMBER
1. Retailers 169
2. Consumers 95
3. Distributors 4
Sampling Technique:
A stratified sampling technique was used. A different Stratum for different type of
respondent within every stratum the respondents was selected as per convenience basis.
5.1.6 Method of Survey:
Personal Interview:
It is direct form of investigation, involving face-to-face communication with free feedback
information. It offers a sense of participation. It is more flexible form of data collection. Use of
unstructured, open-end questions is possible. Rate of refusal is low. Depth interview is possible.
Complex questions can be asked. The interview can have questions to secure more information.
Observation approach can be combined to verify age, income, status, standard information. Visual aids
in the form of catalogues samples etc. can be used to get views, opinions, and attitudes of responder.
47
-
7/27/2019 27951878 Amul Project
62/100
5.2.1 Product for Which Survey Was Conducted:-
Composition:
Variety Fat (%) SNF(%)*
Amul Gold (Whole Milk) 6 9
Amul Taaza (Toned milk) 3 8.5
*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34 parts of protein and
9parts of minerals.
Special Features:
Amul Milk is the most hygienic liquid milk available in the market. It is pasteurized in state-
of-the-art processing plants and pouch-packed to make it conveniently available to consumers.
Product Specification:
Amul milk meets the PFA standards for the respective type of milk.
Pricing of the Milk
Amul Gold:
Price to distributor : Rs. 25.37 Price to
Retailer : Rs. 26.00 MRP : Rs.27.00
Amul Taaza:
Price to distributor : Rs. 20.57 Price to
Retailer : Rs. 21.00 MRP : Rs. 22.00
48
-
7/27/2019 27951878 Amul Project
63/100
5.3.1 Area of Operation:
The areas of operation were the research was done are as follows:
Sahakar 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 milk ?
Whether the company provides any promotional support ?
Territory Level:
Does he sell local milk or not ? Which is the
most selling 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
-
7/27/2019 27951878 Amul Project
64/100
Others:
Types of schemes given to him.What are the uses of milk ?
Addendum:
Outlets may include institutions, general stores, mithai shops, super market, canteens, juice
bars, ice-cream corners etc.
These sectors were chosen because the company believed that these segments could be the
best potential buyers for this product.
50
-
7/27/2019 27951878 Amul Project
65/100
DATA PROCESSINNG&
ANALYSIS
51
-
7/27/2019 27951878 Amul Project
66/100
6.1 Data Analysis For Retailers:-
1.Number of retailers stocking Amul milk.
Answer No. of respondents PercentageYes 55 20%
No 114 80%
Yes
33%
Yes
No
No67%
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 retailers.
52
-
7/27/2019 27951878 Amul Project
67/100
2.Sizes of Amul milk packets retailers preferred to store.
(Out of 169 retailers only 55 were buying Amul milk.)
Answer No. of
respondents
250ml 0
500 ml 32
1 Ltr 23
5 Ltr 0
5 Ltr 0
1 Ltr 23
500 ml 32
250ml 0
05 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 case of 5 Ltr. Pouch there was no customers demand.
250 ml pouches were not available to retailers.
53
-
7/27/2019 27951878 Amul Project
68/100
3. Reasons for Amul milk not stored by retailers.
(Out of 169 retailers 114 were not buying Amul milk.)
Answer No. of respondentsAbsence of packaging date 6
Low margin 75
No replacement for leakage 20
No distribution 13
No distribution 13
No replacement for leakage 20
Low margin 75
Absence of packaging date 6
010 20 30 40 50 60 70 80 No. of respondents
Interpretation:
From above graph it is clear that half of the retailers were not satisfied with Amul
replacement and margin policy.
Some retailers responded about absence of packaging date.
Very less retailers complained about distribution network
54
-
7/27/2019 27951878 Amul Project
69/100
4. Preference of retailers to milk brand.
BRANDS RESPONDENTSAmul 15
Chitale 77
Katraj 45
Gokul 6
Others 26
Others 26
Gokul 6
Katraj 45
Chitale 77
Amul 15
010 20 30 40 50 60 70 80 90
. RESPODENT
Interpretation:
The above graph shows that the Chitale is most preferable brand in all. Some retailers also prefers Katraj and others brands.
55
-
7/27/2019 27951878 Amul Project
70/100
5. Sources from where retailers get Amul milk
(Out of 169 retailers only 55 were buying Amul milk.)
Answer No. of respondents Percentage
Distributors 52 95 %
Other suppliers 3 5 %
Interpretation:
Almost all retailers said that they purchased milk from Amul distributors.
56
-
7/27/2019 27951878 Amul Project
71/100
6. Retailers satisfaction with Amul distributor.
(Out of 169 retailers only 55 were buying Amul milk)Answer No. of
respondentsPercentage
Yes 34 62 %
No 21 38 %
No
38%
Yes
Yes No
62%
Interpretation:
Graph shows that most of the retailers were satisfied with the service provided by the Amul
distributors.
57
-
7/27/2019 27951878 Amul Project
72/100
7. Awareness among retailers about different Sales Promotional activities for Amul milk.
(Out of 169 retailers only 55 were buying Amul milk.)
Activities Aware Not awarePrice off 37 18
Free samples 13 42
Credit facility 16 39
Advertisement 49 6
P-O-P Displays 41 14
Coupons 50 5
60
50 18 6 14 5
40 42 39
30 49 41 50
20 37
10
0
13 16
Price off Free samples Credit facility Advertisement P-O-P Displays
Aware Not aware
Coupons
Interpretation:
The graph shows that retailers were aware about the sales promotion activity that Amul
carried out, but some respondents were unaware about various activities.
Most of the retailers were aware about advertisement and coupons scheme during festivals.
Credit facility and free samples were not provided to single retailers.
58
-
7/27/2019 27951878 Amul Project
73/100
8.Interest of retailers in wholesale distribution of Amul milk.
Answer No. ofrespondents
Percentage
Yes 27 16 %
No 142 84 %
Yes
16%
Yes
No
No
84%
Interpretation:
Graph represents the interest of the retailers to start Amul milk distribution .The questions
asked to increase the retail coverage.
Most of the retailers were not interested.
Only 16% of the retailers were ready to start Amul distribution.
59
-
7/27/2019 27951878 Amul Project
74/100
-
7/27/2019 27951878 Amul Project
75/100
10. Interest of retailers in opening an Amul Parlor (APO).
(Out of 169 retailers only 118 were questioned as they had large store.)
Answer No. ofrespondents
Percentage
Yes 15 13 %
No 103 87 %
.
Yes
13%
Yes
No
No
87%
Interpretation:
The graph represent that very less number of retailers were interested to start APO.
61
-
7/27/2019 27951878 Amul Project
76/100
11. Consumers expectation from Amul milk.
(Out of 169 retailers only 55 were buying Amul milk.)
ATTRIBUTE RESPONDENTS
Good quality 7
Clear packaging date 23
Availability 25
Availability 25
Clear packaging date 23
Good quality 7
05 10 15 20 25 30 RESPODENT
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 availability.
Some customers were not happy with quality of milk.
62
-
7/27/2019 27951878 Amul Project
77/100
12. Ratings from retailers for attributes of Amul milk.
(Out of 169 retailers only 55 were questioned as they buying Amul milk.)
Attribute Brand
Quality
Rating image Availability Packaging Margin
Very good 37 48 34 5 0 Good 13 7 15 2 0 Average 5 0 0 48 0 Bad 0 0
6 0 0 Very bad 0 0 0 0 55 Total 55 55 55 55 55
60
00 0 0 05 7 6
50 0
40 13 15
30 48 48 55
20 37 34
10 2
0 5 0
Quality Brand image Availability Packaging Margin Very good Good Average
Bad Very bad
Interpretation:
From the above graph it can be concluded that
QUALITY: Most of the retailers were satisfied with Amul milk quality.
BRAND IMAGE: The graph shows that Amul is having good brand image.
AVAILABILITY: Most of the retailers 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
-
7/27/2019 27951878 Amul Project
78/100
6.2 Data Analysis for Customers:-
1. Number of customers purchasing Amul milk.
Answer No. of respondents PercentageYes 30 32%
No 65 68%
Yes
32%
Yes
No
No
68%
Interpretation:
The above graph indicates that only 32% of the customers are purchasing Amul milk.
It shows that Amul milk brand is not popular among the customers.
64
-
7/27/2019 27951878 Amul Project
79/100
13. Ratings from customers for attributes of Amul milk.
(Out of 95 customers only 30 were questioned as they buying Amul milk.)
Attribute BrandQuality
Rating image Availability Packaging Price
Very good 18 25 16 5 6 Good 9 5 9 2 13 Average 3 0 0 15 11 Bad 0 0
5 8 0 Very bad 0 0 0 0 0 Total 30 30 30 30 30
35
30 00 0 0 0 025 3 5 5
08
9 1
20
15 1525 1
10 18 16
5 2
5 6
0
Quality Brand image Availability Packaging Price Very good Good Average Bad
Very bad
Interpretation:
From the above graph it can be concluded that
QUALITY: Most of the customers were satisfied with Amul milk quality.
BRAND IMAGE: The graph shows that Amul is having good brand image.
AVAILABILITY: Most of the customers 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
-
7/27/2019 27951878 Amul Project
80/100
14. Preference of retailers to milk brand.
BRANDS RESPONDENTSAmul 15
Chitale 44
Katraj 11
Gokul 8
Others 17
Others 17
Gokul 8
Katraj 11
Chitale 44
Amul 15
05 10 15 20 25 30 35 40 45
. ESPODENTS
Interpretation:
The above graph shows that the Chitale is most preferable brand in all.
Some customers also prefers Katraj and others brands.
66
-
7/27/2019 27951878 Amul Project
81/100
6.3 Data Analysis for Sales Promotion Activity:-
We carried sales promotion activity at two places of Pune city
1.Sahakar nagar
2.Sinhgad road
Store name Sales(Ltr)
Initially Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Sai 0 10 5 5 5 5 5 5 Vaishali 0 15
15 15 15 15 15 15 New hanuman 5 20 15 15 15 15 15 15 Hanuman 15 30 25 25 25 25
25 25 Durga 5 10 10 8 8 8 8 8
Sales (Ltr)
35
30 30
25 25 25 25 25 25 25
sai
20 20 vaishali
15 15 15 15 15 15 15 15 15 hanumannew
10 10
5 5 88 8 8 8 80 0 55 5 5 5 5
initially Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7
Interpretation:
Most of the retail outlets were not interested in Amul milk selling, but after launching
coupons scheme, not only sales shoot up by considerable amount initially but also remainconstant for next days.
In case of Sai and Vaishali retail outlet they were not interested in Amul milk selling butnow they are selling 20 Ltr of milk daily. And they said if response will remain same they willincrease milk order.
67
-
7/27/2019 27951878 Amul Project
82/100
OBSERVATION&
FINDINGS
68
-
7/27/2019 27951878 Amul Project
83/100
7.1 Observation Findings:-
7.1.1 Retailers: (super market, grocery shops, ets)
Retailers are not interested because they dont have storage facility but if company provides
them such facility they will be sale Amul milk.
Because of low profit margin almost all retailers are not interested in Amul milk selling.
The 250 ml and 5 Ltr milk pouch are no available to the retailers for selling.
On question, why retailers are 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 different brands. Because they were able to receive more margin from
non popularized brand that they could not from well known brands.
All retailers get Amul milk from company selected distributors.
Measurable amount of retailers were not happy with the distributors, because of frequent
change in distributors and late delivery of milk.
All retailers were familiar with sales promotion activities undertaken by Amul. But more ofthe activities were not communicated by distributors. So it shows that distributors are takingthe advantage of such activities.
Some questions were asked with view to convert retailers into distributors, but due to low
margin they denied that.
Retailers were not interested to start APO because to start APO one required large amountinvestment i.e. near about 2 Lakhs and with this it is mandatory to sale only Amul products, somost of the retailers did not show interest in APO.
I found that customers were complaining about the packaging especially packaging datebecause Amul do not print packaging date on pouch.
When question came to retailers ratings towards Amul milk rating most of the most
respondents complaining about profit margin and packaging date.
69
-
7/27/2019 27951878 Amul Project
84/100
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 chart it is clear that the sales ofChitale pouch milk is 50% more then Amul pouch milk.
Retailers also demand for the replacements for the damage due to the spoilage of milk that
they have to bear when the Amul milk gets spoiled after the purchase.
7.1.2 End Users: (House holds)
Consumers preference for purchasing of liquid milk is mainly based on quality, taste,
availability, home delivery and freshness respectively.
Awareness level among the consumers is around 75% to 80% but still only around 15%
consumers are consuming Amul milk.
Consumers have a perception that Amul milk is unfresh and is having lots of cuddling
problem.
The packaging of Amul milk is not popular among the customers as compared to other milk
brands are available in the market.
7.1.3 Bulk Users: (sweet shops, restaurants, hotels, canteens etc).
The awareness level of Amul milk in bulk users is around 90% but only 10% are using Amul
milk.
The preference of purchasing milk by the bulk users is mainly quality, price 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 complaint about cuddling of milk.
3. In case of canteens contract some of them prefer credit purchasing which is againstcompanys norms and policies.
70
-
7/27/2019 27951878 Amul Project
85/100
LIMITATIONS
71
-
7/27/2019 27951878 Amul Project
86/100
Limitations:-
This report had to work under several constraints and limitations. Some of the key limitation are.
.
1.The survey is limited only for six wards.
2.Time period of the project was 8 weeks, which may not be enough to understand the
whole market.
3.Convenient sampling was used as the mode of conducting the research.
4.The sample size of the taken was small, therefore it can be said that the chosen sample is
not the representative of the whole population and this hindered 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 answering various questions and may be biased to
certain other questions.
7.Out of the whole research and analysis, only three major brands could be highlighted,
leaving aside the other non-popular brands.
8.The questionnaire mostly contained multiple choice questions, therefore many
respondents did not give a proper thought before up the questions, and some even ticked
things, which were not applicable. Therefore, all this increased the bias.
9.The sample size of Retailers / Wholesalers was very small and therefore response fromthem dose not reflect the exact view because they may to biased.
72
-
7/27/2019 27951878 Amul Project
87/100
CONCLUSION
73
-
7/27/2019 27951878 Amul Project
88/100
Conclusion:-
Amul means different things to different people. To
a milk producerA life enriching experience
To a consumerAssurance of having wholesome milk To a
motherA reliable source of nourishment for her child To the
country Rural development and self reliance
As we know that Amul is very big organization and market leader in dairy products. It has maximum
market share in Milk, Butter, Cheese & Ice-Cream which are its main/core products. But in case of
local market like Pune the Amul milk is not a popular product as compared 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 mistakes. People have believed in Amuls product and they will accept it
also if effective 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 product, but
prompt availability of other Milk brands and aggressive promotional activities by others
influences the consumer towards them and also leads to increase sales.
In comparison to Amul Milk, the other players such as Chitale, Katraj,Gokul & Krushnai
provide a better availability and give competition to the hilt.
People are mostly satisfied with the overall quality of Amul Milk, but for the existence in the
local market Amul must use aggressive selling techniques
-
7/27/2019 27951878 Amul Project
89/100
74
-
7/27/2019 27951878 Amul Project
90/100
.
SUGGESTIONS&
RECOMMENDATION
75
-
7/27/2019 27951878 Amul Project
91/100
Suggestions & Recommendation:-
The Milk products market has reached Maturity stage in India large no. of Co-operatives having avariety of product range has entered the market, thus there is one way for Amul to sustain their milkbusiness in the market by delivering outstanding satisfaction to their retailers, so that they can take
interest in selling of Amul milk products. This can be done as follows
Company should start printing packaging date on milk pouch.
Amul has a relatively 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 should consideron the supply of product in the peak season.
Supply should be regular 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 should make available to retailers for selling, because lower incomefamily has intention to buy small pouch milk.
Provide reasonable Margin to retailers as compared to competitors, this motivates them to
promote companys milk and milk products.
Improve delivery schedule to provide products on time for the retailers about who claimed
that Amul milk is not available to them on time.
Incentives & 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 person.
Provide consistent service to retailers as this will help gain company goodwill 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 deposits for APO, which help to retailer think to start.
Though the customers are asking for Branded milk is very few but Amul should invest moremoney in Brand promotion and marketing in Pune, it will be beneficial for the company in the
long run as well as in the short run.
For Brand promotion and marketing of Amul milk in Pune it should introduce a mascot forthe Amul milk as it already has for 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 andRecognition.
76
-
7/27/2019 27951878 Amul Project
92/100
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 there is no Mergers and Acquisition in the milk
industry. Amul should go for Mergers and Acquisition and try to acquire the local players inthe Pune market like Chitale, Katraj and Gokul etc. It will help the company in increasing itsDealers network, Market share, Customer base etc. It will also save time of establishing a newmanufacturing unit.
Our Research revealed that there is no awareness among the consumers regarding the Amulmilk in Pune. So it is advisable to the company to conduct various consumer awarenessprograms like distributing of pamphlets outside the big shopping malls, giving presentations inschools and colleges about the Amul Milk by telling them about the qualities of milk. By thiswe can able to reach to a large number of people at one time only as there will students alongwith their teachers and other staff members of the school and colleges.
The pamphlets should be printed in such a way that it not only advertise about the milk but
also provides information about how to preserve the milk in different 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 Dhoni, 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, retailers 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 preservatives in the milk as people not only see quality but also sees the time durationi.e. how much times we can store the milk.
In order to push the milk to the customers the profit margin should be increased.
Company should improve its distribution channel and should increase the number of
distributors.
Company should take care of retailers by solving their problems and should call back by
appointing separate company representatives.
Timely visit should be given to the retail shops.
77
-
7/27/2019 27951878 Amul Project
93/100
BIBLIOGRAPHYAND
WEBLIOGRAPHY
78
-
7/27/2019 27951878 Amul Project
94/100
Books:
i.Marketing Management (12th Edition) Philip Kotlar
ii. Research Methodology C. R. Kothari
Websites:
i.www.google.co.in
ii. www.wikipedia.com
iii. www.amul.com.
iv. www.marketresearch.com
v. www.dairy.com
79
-
7/27/2019 27951878 Amul Project
95/100
ANNEXURE
80
-
7/27/2019 27951878 Amul Project
96/100
QUESTIONNAIRE:-
(Retailer Survey)
Name of the shop: __________________________________________________
Retailer Name: ____________________________________________________
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.250 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 most preferable brand of packaged milk that you stock?
Amul
Chitale Katraj
Gokul
Others
81
-
7/27/2019 27951878 Amul Project
97/100
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 Sales promotional activities does the company undertake for Amulmilk?
a.Price off d) Free samples
b.Credit facility e) Coupons
c.Advertisement f) P-O-P Displays
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
-
7/27/2019 27951878 Amul Project
98/100
11.What is consumers 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
-
7/27/2019 27951878 Amul Project
99/100
QUESTIONNAIRE:-
(Customer survey)
Name of the shop: __________________________________________________
Retailer Name: ____________________________________________________
Address: __________________________________________________________
1. Do you know about Amul?
Yes No
2. What are the products of Amul you use very frequently?
Butter Cheese Shrikhand Milk Powder Dahi Milk
Ice-Cream Butter Milk
3. Do you regularly get the Amul Milk?
Yes No
4. Which brands milk do you like most?
Amul Katraj Chitale Gokul
Other (Specify)..
5. Do you know about Amul God and Taaza?
Yes No
6. How is the taste of Amul Gold?
Poor Satisfactory Excellent
84
-
7/27/2019 27951878 Amul Project
100/100