Dessertation REPORT ON

MARKETING STRATEGIES FOR

AMUL CHOCOLATES

AT

RISHIKESH

SUBMITTED IN THE PARTIAL FULFILLMENT OF THEAWARD OF THE DEGREE OF

MASTER’S DEGREE IN BUSINESS ADMINISTRATION H.N.B.GARHWAL UNIVERSITY,SHRINAGAR,

UTTARANCHAL

OMKARANANDA INSTITUTE OF MANAGEMENT AND TECHNOLOGY

SUBMITTED BY:- SUPPERVISED BY:-

MR. SUNIL PANDEY DR.D.S.CHAUBEY M.B.A. IV SEMESTER ASST-PROFESSOR SESSION-2004-06 OIMT-RISHIKESH

PROJECT REPORT ON MARKETING STRATEGIES FOR AMUL CHOCOLATES

ACKNOWLEDGEMENT

I would like to avail this opportunity to express my deep

sense of gratitude and thanks to my project guide mr.

D.S.Chaubey for his best guidance during the course of my

project as it could not have been materialized without his

systematic guidance.

I extend my sincere regards to Mr. R.S.Mehta (director, Institute of management of management and technology) for providing me time and support to prepare this report.

Finally I express my sincere thanks towards all those who directly or indirectly helped me. Thanks a lot.

SUNIL PANDEYMBA IV SEMESTER

EXECUTIVE SUMMARY

The Rs 2,500-crore Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), or Amul. Amul began the dairy cooperative movement in India and formed an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which is jointly owned by some 2.2 million milk producers in Gujarat, India. Now, not only had the milk collection and the number of co-operative members increased but Amul were also giving a stiff challenge to the multinationals.

Chocolate consumption in India is extremely low. Per capita consumption is around 160gms in the urban areas, compared to 8-10 kg in the developed countries. In rural areas, it is even lower. Chocolates in India are consumed as indulgence and not as a snack food.

The main objective was to know the market position of Amul chocolates and to know strategies of their competitors. The Amul chocolate market is segmented in two parts that is SVS Marketing and RKJP Marketing. Currently Amul is having five variants under his umbrella brand that are Pure Milk Chocolate, Fruits and Nuts, Fundoo, Bindaaz and Almondbar, In an attempt to boost sales, the company has launched three new chocolates in Market under the brands Fundoo, Bindaaz and Almond Bar. While the first two have been priced point at Rs 10 for a 30 gm stick, Almond Bar carries a price tag of Rs 10 for a 35 gm chocolate, Fundoo is available in Rs 5 price point also. This is one of the shortcomings as Cadbury have price points from Rs 5 to 50 ranges. Amul also have very few variants as comparison to Cadbury India. The company's festival season pack "Rejoice" now comes with six chocolates in the city up during the festive season last year. After conducting survey of Customers, and Dealers I analyzed sale of Amul chocolates are not quite good in market as in front of it Cadbury is one of the

biggest competitor more over Amul doesn’t provide any kind of services like Dispensers, Glass top fridges and Replacement facilities for their chocolates as their competitor are providing to their Retailers. As per our survey, retailers list a credible Replacement policy as a factor very high on their wish list. They would be willing to make further investments only for that

brand which offers replacement facilities. Another competitor in this field is NESTLE

The problems that these Dairy chocolate (Amul) giants faced were in the way their chocolates would be displayed in urban, premium and super markets. The chocolates were kept without bottlers and dispensers and without the proper cooling equipment the chocolates in almost all the places would melt since they would get heated at 40 C and would lose its taste. Thus the superior product they would aim to tantalize the market with, would not work with bad pieces and melting disadvantages by only providing dispensers but special types of table top coolers as Cadbury preserve its product even in the remotest of rural outlets and create brand visibility through the colorful display options.

These coolers today help in sales generation and brand visibility not ignoring efficient cooling that protects and preserves the real taste of Cadbury' s chocolates in a very cost effective manner, Amul should not overlook this fact.

In customer segments Children’s and college student showed most tempting towards chocolates. Most of the Consumer is not satisfied as they want improvement in present Taste of chocolate and mostly satisfied consumers showed positive allure towards Pure Milk chocolate. Survey also reveled that price is not the influencive factor for chocolate consumption but its Company’s Brand name and taste of chocolate which influence them most. Presently their is no schemes for Customers from Amul, and as children and teenagers are their main target customers, they are most attracted by the schemes available like Cadbury is offering Tennis Ball with pack of Heros and Perk of Rs 40. With sum up of all of these reasons customers are not satisfied with Amul Chocolates.

Amul is getting ready to challenge Cadbury in the molded chocolate market. The co-operative, which has been lying low for a while with its

generic chocolate variants such as Fruit & Nut and Milk, now intends segmenting its chocolates, catering to different age-groups and categories that are likely to consume its brand. Encouraged by the rising numbers, GCMMF has drawn up plans to make its chocolate business a separate division of the company.

TABLE OF CONTENTS CHAPTER NAME PAGE NO. CHAPTER 1: PROJECT BACKGROUND 8 — 131.1 OBJECTIVE OF THE PROJECT 81.2 AN OVERVIEW OF THE ORGANIZATION 9 — 101.3 BACKGROUND OF THE COMPANY 11 — 13

CHAPTER 2: PRODUCT PROFILE 14 — 242.1 PRODUCT RANGE 14 — 212.2 PRODUCT PROFILE 22 — 24

CHAPTER 3: RESEARCH METHODOLOGY 25 — 373.1 OBJECTIVE OF THE RESEARCH 253.2 RESEARCH DESIGN 25 — 26

3.2.1 SAMPLE DESIGN 253.2.2 SEGMENTATION 26

3.3 SOURCES OF DATA 26

3.4 TOOLS OF ANALYSIS 273.5 ANALYSIS OF MARKET RESEARCH DATA 28 — 37CHAPTER 4: MARKETING STRATEGIES 38 — 484.1 DEVELOPING A BRAND PLAN

39

4.2 NAMING A BRAND 40

4.3 SEGMENTATION 40 — 41

4.4 MARKETING MIX 42 — 434.5 PROMOTIONAL MIX 43

— 444.6 ADVERTISING THE BRAND 45 — 46

4.7 PACKAGING 46 —48

CHAPTER NAME PAGE NO.

CHAPTER 5 : DISTRIBUTION CHANNEL 49 — 50

CHAPTER 6 : STUDY OF COMPETITORS 51 — 64

6.1 COMPARATIVE STUDY OF COMPETITORS 51 — 52

6.2 COMPARATIVE STUDY OF CHOCOLATES DEALERS 53 —64

CHAPTER 7 : SUMMARY 65 — 71

7.1 SWOT ANALYSIS 65 — 677.2 FINDINGS FROM RESEARCH WORK 68 — 697.3 RECOMMENDATIONS 70 — 71

LIMITATIONS 72

LEARNING EXPERIENCES 73

REFERENCES/ BIBLIOGRAPHY 74 — 82

ANNEXURE/APPENDICES 83

THE MAIN OBJECTIVE OF THE PROJECT

The main objective of the project is to know the market potentials and awareness about new variants of Amul chocolate in Rishikesh City.

Other objectives of my project are

To find the market share of Amul in chocolate segment

To know Customer’s perception towards Amul chocolate.

To make comparative study of different variants of chocolates.

To know strategies of competitors and implement on those strategies.

To find out the potential market mainly for new variants (like Fundoo,

Bindaaz).

To make SWOT analyses of NESTLE

To identify the best season for launching of new variants .

To give proper suggestions or recommendation the company so that

can overcome from their weakness and increase their sales

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview Gujarat Cooperative Milk Marketing Federation (GCMMF) is an India’s largest food product marketing organization. It is a state level apex body of milk cooperatives in Gujarat that 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. It is respected

for its credentials even after 56 years after its inception.

The Co-Operative movement started with two villages and 247 liters of milk in 1946. It has become a rupee one billion-business now. The success of Amul explains the reasons for this remarkable growth. Following the strategic advice from the freedom fighters like Sardar Vallabhai and Morarji Desai, the Co-Operative movement started with the slogan “Remove middlemen” in Gujarat by the village masses. The collective farmers succeeded in making the British government accept the concept of Co-

Operative societies. The Kaira District Co-Operative Milk Producers union Ltd., Anand was born on Dec 14,1946.

GCMMFL is in a state where it is growing rapidly and it is one amongst the most respected Indian companies in 2003. It is because of the values and systems that are in place. As a Chinese proverb says, “As long as the trunk is firm, worry not about the branches swinging to the wind.” GCMMFL is trying to strengthen its rural base – The Village Cooperatives – to ensure the lead in the dairy business.

Members: 12 district cooperative milk producers' Union

No. Of Producer Members: 2.28 million

No. Of Village Societies: 11,132

Total Milk handling capacity: 6.7 million liters per day

Milk collection (Total – 2002-03): 1.86 billion liters

Milk collection (Daily Average 2002-03):

5.08 million liters

Milk Drying Capacity: 510 metric Tons per day

Cattle feed manufacturing Capacity: 1450 Mts per day

Table 1

The only reason for the success of GCMMF as Dr.V.Kurien stated: “Determination, Dedication, Discipline are forming the driving forces of the Amul” The GCMMF consists of 12 affiliated member Dairies / District milk unions and it has its own manufacturing unit called Mother Dairy at Gandhinagar with the largest network in food industry supported by marketing and distribution of liquid milk and a variety of products under the brands – Amul and Sagar. It is also the sole selling agent for the National Dairy Development Board’s (NDDB) edible oil – ‘DHARA’. GCMMF also coordinates with the manufacturing dairy units for production planning and

milk procurement and handles the distribution of milk from surplus union to the deficit areas.

The value chain of GCMMF is shown in Fig.1

Figure 1

BACKGROUND

Q.- HOW DID THE AMUL BRAND BECOME WHAT IT IS?

ANSWER- we must journey back in time, to the history books, to the time of India’s independence because Amul’s 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 result of a farmers’ meeting in Samarkha (Kaira district, Gujarat) on 4 January 1946, called by Morarji Desai under the advice from Sardar Vallabhbhai 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 qualified professionals, thereby eliminating the middle men, the bane in farmers’ prosperity.

The decision was taken that day in January 1946: Milk producers’ cooperatives in villages, federated into a district union, should alone handle the sale of milk from Kaira to 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 of Kaira District Cooperative Milk Producers’ Union Ltd., Anand, registered on 14 December 1946.

Originally the Anand pattern included dairy cooperative societies at the village level, and a processing unit called a ‘union’ at the district level. Inspired by the Kaira Union, similar milk unions came up in other districts too. In 1973, in order to market their products more effectively and economically, they formed the Gujarat Cooperative Milk Marketing Federation Limited (GCMMF Ltd.). GCMMF became 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.PROJECT GOALS OF GCMMF’SSuccess of any project is decided by the objectives and vision it has envisaged at the inception phase. The rural IT empowerment project started by GCMMF had the following objectives:

To build transparency among the farmers towards cooperative society To build the competencies in the area of it Training the rural people towards the quality supply of milk Getting the whole activity chain of GCMMF under uninterrupted

information flow network To reduce the pilferage To remove the complexity associated with the village cooperative

society milk Collection process Empowering the rural masses towards self-development activities To build the transparency and trust amongst the rural people towards

the cooperative system To face the global competition by effective decision-making.

ORGANIZATIONAL ACHIEVEMENTSGCMMFL, Gujarat Co-Operative Milk Marketing Limited is being driven by the vision of the thousands of Gujarat Farmers. This specific organization has a purpose for its existence. GCMMFL better described as the one cooperative organization working for the well being of millions of farmers. The commitment of GCMMF to the village farmers and vice versa is tremendous. GCMMF changed the operations looking into the needs of the

farmers. Today GCMMF is ahead of all its competitors meeting the expectations of their suppliers and the customers.

AMUL WITH ITS BRAND NAME – ‘THE TASTE OF INDIA’ HAS BECOME THE BIGGEST FOOD BRAND IN INDIA.

The Rational behind The Butter GirlThe moppet who put Amul on India's breakfast table 50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it. All because

a thumb-sized girl climbed on to the hoardings and put a spell on the masses. Bombay: Summer of 1967. Mrs. Sheela Mane, a 28-year-old housewife is out in the balcony drying clothes. From her second floor flat she can see her neighbors on the road. There are other people too. The crowd seems to be growing larger by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what all the commotion is about. She expects the worst but can see no signs of an accident. It is her four-year-old who draws her attention to the hoarding that has come up overnight. "It was the first Amul hoarding that was put up in Mumbai," recalls Sheela Mane. "People loved it. I remember it was our favorite topic of discussion for the next one week! Everywhere we went somehow or the other the campaign always seemed to crop up in our conversation."

Call her the Friday-to-Friday star. Round eyed, chubby cheeked, winking at you, from strategically placed hoardings at many traffic lights. She is the Amul moppet everyone loves to love.

While most people agree that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads continue to tease laughter out of them where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. That we laugh because the humor is what anybody would enjoy. They don'tpander to your nationality or certain sentiments. Its pure and simple everyday fun.

Today, after becoming everyone's favorite little "utterly buttery delicious" girl through print and television ads, the Amul Butter Girl has finally come alive

PRODUCT RANGE

AMUL – The Taste of India, a brand so distinctively Indian, has been a part of our lives for nearly five decades now and still is able to touch a chord in our hearts. As a brand Amul has grown from being merely a differentiating factor to protect the interests of producers and consumers, and has now become a critical success factor in the very existence and growth of a movement that started way back in the pre-independence India.

The Amul Era

Amul came into being as a consequence of a revolution and it has continued to be revolutionary in every stage of its life. It initially started a as means to balance the fluctuating milk supply and grew at a phenomenal rate as a liquid milk supplier. The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in 1948. However by the 1950s it was amply clear that the future lay in manufactured dairy products. Amul responded by embarking on a wide range of dairy processing activities, involving newTechnologies, and by expanding its processing facilities. It challenged the established Polson brand in butter manufacturing, and then moved on to sweetened condensed milk in direct confrontation with the international giant Nestle. It also locked horns with Glaxo over the production of baby food in India. On all of these occasions Amul not only displayed feats of resilience but also in fact came out much stronger than ever before.Amul realized it as early as late 1960s that the only way it could increase the share of the market was by maintaining the reasonable prices of its products, but widening the range. During 1966-1970, Amul added sweet buttermilk powder, a second brand of baby food (Amulspray) and a high protein weaning food (Balamul). In 1974 the Amul Milk Chocolate was released

commercially and was followed by several varieties of chocolates and chocolate confectionaries. Also Nutramul, a malted cocoa beverage was launched in 1976.Cheese powder was released commercially in the early70s.

As district unions multiplied, Kaira Cooperative recognized the benefits of a marketing federation and thus the Gujarat Cooperative Milk Marketing Federation (GCMMF) was established in 1973. GCMMF commenced marketing on April 1, 1974under the single brand name of Amul. In 1978-79 it registered a turnover of Rs. 100 crore, which grew to Rs. 539.67 crore in 1987-89. In 2002-03 the turnover stood at Rs. 2745.70 crore. At present GCMMF have 2.28 million producer members with a total milk collection in 2002-03 being 1.86 billion litres. The success rate has been to the extent that GCMMF has now become India's largest food products marketing organization. GCMMF test marketed Amul Cheese spread in 1983 following it with a new softer cheese spread. In 1982, it introduced Amul Shrikhand in Bombay, and brought out new flavors between 1986 and 1989. Amul UHT milk in tetra packs, with a shelf life of days, was released in 1983 and by 1988-89 UHT milk with shelf life of 60 days had become available. Between 1987 and 1989, Amul Choco Shake,

Amul Elaichi Shake, and Amul Lassi were successfully marketed in tetra bricks.

In the 1990s, Amul continued on an expansion path and several new product ranges were added to its portfolio. A much deeper Amul Cheese range with Amul Malai Paneer and Amul Pizza Cheese, extended Amul Mithaee range with Gulabjamuns and Kulfi mix, a wider UHT milk range Amul Taaza milk and Amul Fresh Cream, fresh milk range with brands like Amul Gold, Amul Smart and Amul Shakti, a new Curd range with Amul Masti Dahi, and a new Milk drink – Amul Shakti Flavored Milk. Amul also started aggressive marketing of its wide array of Ice creams posing stiff competition to established players like HLL’s Kwality Walls and Mother Dairy. Recently it also introduced ready to serve soups under the brand name of Masti Today 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. Amul has evolved from its traditional image and now is a symbol of many things. Of 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.

LIST OF PRODUCTS MARKETED:

BREAD SPREADS:

Amul Butter Amul Lite Low Fat Bread spread Amul Cooking Butter

CHEESE RANGE:

Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozzarella) Cheese

Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Frozen 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

UHT MILK RANGE:

1) Amul Taaza 3% fat Milk 2) Amul Gold 4.5% fat Milk 3) Amul Slim-n-Trim 0% fat milk

4) Amul Chocolate Milk 5) Amul Fresh Cream 6) Amul Snowcap Softy Mix 7) Amul Taaza Double Toned Milk

PURE GHEE:

Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee

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

SWEETENED CONDENSED MILK:

Amul Mithaimate Sweetened Condensed Milk

FRESH MILK:

Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 3% fat Amul Smart Double Toned Milk 1.5% fat

CURD PRODUCTS:

Amul Masti Dahi (fresh curd) Amul Butter Milk Amul Lassee

AMUL ICECREAMS:

o Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)

o Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)

o Utsav Range (Anjir, Roasted Almond) o Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose,

Chocolate)

o Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)

o Sundae Range (Mango, Black Currant, Chocolate, Strawberry) o Millennium Icecream (Cheese with Almonds, Dates with Honey) o Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam

Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)

AMUL TOPICALS FROM 2003-2004 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

CHOCOLATE & CONFECTIONERY:

Amul Milk Chocolate Amul Fruit & Nut Chocolate Amul Eclairs Amul Fundoo Amul Bindaaz Amul Almondbar

BROWN BEVERAGE:

o Nutramul Malted Milk Food

MILK DRINK:

Amul Shakti Flavored Milk

Ready to Serve Soups:

Masti Tomato Soup Masti Hot & Sour Soup Masti chanch

PRODUCT PROFILE

Research for availability and acceptability of Amul Chocolate and their different variants including New Launched

CHOCOLATES: MAJOR TYPES & BRANDS

Types BrandMolded chocolates Dairy Milk, Truffle, Amul Milk

Chocolate, Nestle Premium, Nestle Milky Bar, Nestle Classic

Count lines 5 Star, Perk, Kit Kat, Picnic, Munch

Panned products Gems (Cadbury), Nutties, Marbles (Nestle)

AMUL CHOCOLATE“GIFT FOR SOMEONE YOU LOVE”

AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, and Chocolate mass

Composition:

Milk Fat 2% Sugar 55% Total Fat 32.33% (Milk Fat + Cocoa Fat) Cocoa Solids 7.5% Milk Solids 20%

AMUL MILK CHOCOLATEAMUL FRUIT AND NUT CHOCOLATE

Rich Milk Chocolates from the House of Amul.Upholding Decades of Trust and Satisfaction

AMUL FUNDOOChoti bite. Badi Masti.

Milk Chocolate Enriched with Glucose for Extra Energy.

AMUL BINDAAZ BINDAAZ KHAO HUNGAMA MACHAO

A Rare Blend of Dark Chocolate and Milk Chocolate laced with Crispy Chocolate Crumbs.

ALMONDBARBITE BITE MEIN DUM

Rich and Chewy Almond Nougats Coated with Rich Milk

Chocolate.

Product Specification:Meets all requirements under the PFA for boiled sugar confectionary.

DIFFERENT VARIANTS OF AMUL CHOCOLTES AND THEIR RELATIVE PRICING

SL.NO BRAND/PACK

MRP TRADEPRICE

DISCOUNTED PRICE

NETMARGIN

1. Amul Milk Chocolate 35g Rs.10 Rs. 9.13 Rs. 8.70 15 %

2. Amul Milk chocolate 18g Rs. 5 Rs. 4.56 Rs. 4.34 15.1 %

3. Amul F&N chocolate 30g Rs. 15 Rs. 13.87 Rs. 13.21 13.5 %

4. Amul Fundoo 30g Rs. 10 Rs. 9.00 Rs. 8.57 16.7%

5. Amul Fundoo 15g Rs. 5 Rs. 4.50 Rs. 4.28 16.7 %

6.Amul Bindaaz chocolate 30g

Rs. 10 Rs. 9.00 Rs. 8.57 16.7 %

7.Amul Almond Bar 35g Rs. 10 Rs.9.00 Rs. 8.57 16.7 %

Table 2.

RESEARCH METHODOLOGY

OBJECTIVE OF RESEARCH

Assessment of present Amul chocolate market

Size of Market – Availability, Awareness, Acceptability of Amul Chocolates.

Share of Amul – Share of Amul Chocolates.

Customer’s Expectations – Required Changes, Defects (Shortcomings) of Amul Chocolates.

Competitors – Size, Share, New product launching.

RESEARCH DESIGN

SAMPLE DESIGN:

Of the total sample design Customer and Retailers survey was formulated on basis of Selective sampling and the Distributors survey was based on total Census sampling –

A total 150 Customer Surveyed. A total 50 Retailers Surveyed. A total 5 Distributors were Surveyed.

SEGMENTATION:

The total research area covered were segmented into two Sub-segment,

1. REGION WISE.2. GROUP WISE.

REGION WISEBy region wise the survey was carried out according to beat plan of AMUL in Dehradun.

Which was divided into two Plans 1. SVS PLAN. 2. RKJP PLAN.

SVS PLAN AREASTrivani ghat

Subhash chok Bankhandi Dhal wala.

RKJP PLAN AREASShampur

idpl tilak road ganganagar kailash gate

SOURCES OF DATA

Data were collected from two sources –

Primary sources —Which include Questionnaire, Direct interview

and data collected on personal observation. These are the data, which are collected on self-basis.

Secondary Data —Which Include Journals, Magazine, News Paper

And Net. These are the data, which are collected o from the secondary sources, which are made available by other organization or company through their annual report’s or journals or news magazine.

TOOLS OF ANAYSIS

The Major tools of analysis were

Questionnaire Direct Interview/ Observation Method

The questionnaire was formulated for three categories 3 they are

DEALERS

1. QUESTIONNAIRE RETAILERS

CUSTOMERS

All the three questionnaire are attached with annexure

2. OBSERVATION METHOD –

During the research work, I opted both the questionnaire and observation method.

In observation cum interview method I have visited to different distributors and retailer in and around Dehradun.

Who deals with different brand chocolates and during Interview session, I interacted with them and put various relevant questions related to Chocolates Retailing and tried to obtain data related to Consumption of Chocolates in Rishikesh Market area. And analyzed and compiled the provided data through Graphical representation.

ANALYSIS OF MARKET RESEARCH DATA:

CUSTOMERS SURVEY

AFFINITY TOWARDS CHOCOLATES

OPTION NO. OF RESPONDENTS

PERCENTAGE

YES146 97

NO 4 3

ANALYSIS: The analysis shows that almost 97% of consumer surveyed consumes Chocolates. Which shows Chocolates are well preferred in Consumer Market.

USAGE RATE

OPTIONS NO. OF RESPONDENTS PERCENTAGEDAILY 12 8

TWICE IN A WEEK 30 20WEELKY 48 32

OCCASIONALLY 60 40

ANALYSIS: The rates of consumption of Chocolates are less Frequent i.e. occasionally so companies should try to make consumption of a Chocolates a daily habit of consumer as foreign companies do.

MOST PREFFERED CHOCOLATE TYPES

OPTIONS NO. OF RESPONDENTS.

PERCENTAGE

WAFERS 30 20NUTTIES 47 31

PURE CHOCOLATE 73 49

ANALYSIS: Pure Chocolate is most popular in almost all segments of Consumer surveyed and Nutties next preferred after it.

MOST POPULAR BRAND

OPTIONS NO.OF RESPONDENTS

PERCENTAGE

AMUL 34 23NESTLE 36 24

CADBURY 80 53

ANALYSIS: Cadbury is the most popular brand in the market and is the biggest competitor of Amul Chocolates, which holds more than 50 % share in Total market of Chocolates.

CONSUMER AWARNESS

OPTION NO. OF RESPONDENTS

PERCENTAGE

YES132 88

NO 18 12

ANALYSIS: People are well aware of Amul Chocolates. As about 88 % of customer surveyed are consuming Amul Chocolates. Which means that Amul is quite popular Brand in India.

SATISFACTION LEVEL OF CONSUMERS

OPTION NO. OF RESPONDENTS

PERCENTAGE

VERY GOOD 44 33SATISFACTORY 78 59

POOR 10 8

ANALYSIS: The Graph shows that image of Amul Chocolates are quite Satisfactory in the eye of Consumers Surveyed. The company Should require improving its Brand Image in Chocolate Market By increasing satisfaction level of consumption.

REASONS FOR BUYING AMUL CHOCOLATES

OPTION NO. OF RESPONDENTS

PERCENTAGE

GOOD TASTE 45 35BRAND NAME 55 42

ADVERTISEMENT 14 11REASONABLE

COST18 12

ANALYSIS: This shows that Price is not the reason which appeals Consumers to Buy Chocolates but its Good taste and Brand name attracts Consumers, whereas Advertisements and Reasonable can be the secondary factor to buy Chocolates.

BRAND LOYALTY

OPTIONNO. OF

RESPONDENTSPERCENTAGE

YES 118 79NO 32 21

ANALYSIS: From this we can analyze that in spite of increase in price 79 %of consumers surveyed will still stuck to their favorite Brand Chocolates. Therefore reduction in price will hardly matter in the Consumption of Chocolate.

CONSUMER’S VIEWS ON IMPROVEMENT OF AMUL CHOCOLATES

OPTIONNO. OF

RESPONDENTSPERCENTAGE

YES 120 80NO 30 20

ANALYSIS : This shows that most of the Amul chocolates consumer surveyed are unsatisfied with the present variant and wants Improvements.

TYPES OF IMPROVEMENTS DEMANDED BY CONSUMERS IN AMUL CHOCLATES

OPTIONNO. OF

RESPONDENTSPERCENTAGE

CHANGE IN PACKAGING

35 29

CHANGE IN TASTE 64 53REASONABLE

PRICING21 18

ANALYSIS: In this analysis more than 50 % of Consumers have demanded for change in Taste of Amul Chocolates

therefore the company should try to improve the taste of Chocolates

SUGGESTED MARKETING STRATEGIES (Theoretical concept)

The term, marketing, is conventionally associated with promotion and selling of products or services to consumers, where the promotion is done using mass media like newspapers, magazines, T.V. or billboards. But is this all? No. The concept of marketing can be enlarged to include in its purview the whole gamut of communication process geared towards persuading others. Marketing, broadly defined, is getting your ideas across to the people and influencing them to act accordingly, thereby, achieving what you want. It is not that marketing is done only by the corporate at the marketplace; even you and I indulge in marketing in day-to-day life. Say, you want to win that crucial student body election or you want to motivate your reluctant friends to come along with you to Goa. What will you do? You will market yourself or your ideas convincingly and succinctly, so that you/your ideas stand out among the crowd. This means your selling pitch should be unique, so that the others sit up and take notice. It should easily be discernible from the others; in other words, it should stand out in multitude. Brand Definition

Brand, An identifying symbol, words, or mark that distinguishes a product or company from its competitors. Usually brands are registered (trademarked) with a regulatory authority and so cannot be used freely by other parties. For many products and companies, branding is an essential part of marketing

Branding allows a company to differentiate themselves from the competition and, in the process, to bond with their customers to create loyalty. So a position is created in the marketplace that is much more difficult for the competition to poach. A satisfied customer may leave. But a loyal one is much less likely to.

How To Make Your Brand Expressive. Segmentation - demographics, behaviors, needs & values, situational

segmentation Choose your trademark architecture

Develop your brand trademark "look and feel" Advertising Promotions Public relations Define pricing policy Design packaging Ensure the legal protection of trademarks Develop a plan for formal communications Direct marketing/mail/catalogs Events/exhibitions/fairs Literature/brochures/data sheets/price pages Develop store design/layout

Tracking performance and effectiveness of the value of brand Track brand equity Identify future events & needs Track the effectiveness of product portfolio Track the effectiveness of service Track the effectiveness of communications Track the effectiveness of packaging Track the effectiveness of pricing strategy

Developing a Brand plan The fastest moving companies today plan on a continuous basis

rather than on an annual one, and use business scorecards to map their performance in each area of the action plan from total business to individual performance level.

Key elements of a brand plan would include: Brand vision (long term) Brand mission (mid term) Market definition Situation analysis Market size and forecasts Market dynamics and trends Market structure and share of trade at supplier, intermediary,

and end customer level segmentation

Brand scope (own and competitor brand architectures and performance, brand definitions, comparative brand strategies, brand competencies)

Market attraction vs. brand competency chart Alternative scenarios for the next 2-5 years Key programs and their goals Brand objectives

Naming a brand

TrademarksNaming brand is one aspect of developing a brand identity that can be

trademarked. Other elements are: Graphical design (the Nike® "swoosh", the Coca-Cola® bottle

design) Type face Use of color (Green for Dettol, Blue for Cadbury, Red for Nestle) Sounds (like Airtel tune,)

Segmentation

The foundation of a successful branding strategy is compelling segmentation, answering the following questions:

With whom are we have to build long-term relationships and on what basis?

What will make these customers special to us, and what will make us special to them?

Above all, how will we recognize them when we see them? You can use at least four levels of segmentation:

Demographic segmentation. Behavioral segmentation. Needs and values segmentation. Situational segmentation.

In more detail…

1. Demographic segmentationThis is the standard segmentation of the "broken down by age and

sex" variety. Additional demographic segmentations would include socio-economic class, life stage, geographical region, number of people in a household, income and, in business-to-business markets, industry classification, number of employees and turnover.

Demographic segmentations tell about how to recognize people but are much less helpful in identifying motivations. For instance, people in a certain income bracket do not all behave the same way, nor do those of the same sex or those living in the same part of the country.2. Behavioral segmentation

Examples of behavioral segmentations would be Internet shoppers, frequent flyers, night workers, and buyers of competitive products/services or special offer seekers. They often tell you how and where to find people, but not what to say to them when you do (except perhaps in the case of special offer seekers).

3. Needs and values segmentationNeeds and values segmentations answer why customers behave as

they do, and therefore indicate how we should position our brand. There are many highly sophisticated market research techniques, often based on psychological theories, aimed at uncovering customers' hidden needs and values.

These needs and values will usually work at several levels, from what customers volunteer as being their motivations through to deep psychological needs, which they would be most uncomfortable discussing.

4. Situational segmentationIt has been argued that the same people behave more differently in

different situations than do different people in the same situations. Situational segmentations recognize, for instance, that when people have plenty of time to browse the shelves they will behave differently than when they are in a hurry. Indeed, they may be happy to buy products when they are in a hurry that they would not dream of buying at any other time.

Next steps

Having identified the segmentations in your market at several levels, there is a need to ensure three things:

That the segment is large enough and profitable enough to be worth your while. If not, you may have to combine segments

That the segment is recognizable. If you cannot find them by way of demographics, a communication channel, or a short screening exercise, can they find you?

That your chosen segment(s) will choose to do business with you

Marketing Mix

In market as there many types of products are available so it becomes difficult for the marketers to peruse the right segment market so that they can position their product effectively to target customer. In order for this they use mix of tools of marketing, which is, know as marketing mix.

Marketing mix is a set of marketing tools that the firm uses to peruse its marketing objectives in the target market. Theses tool s can be classified broadly into four Ps of marketing, Product, Price, Place, and Promotion.

MARKETING MIX

PRODUCT PRICE PLACE PROMOTION1. Variety 1. List Price 1. Channels 1. Advertisements2. Quality 2. Discounts 2. Coverage 2. Sales Force3. Design 3. Allowances 3. Locations 3. Public Relations4. Brand Name 4. Credit Norms 4. Inventory 4. Direct Marketing

Figure 3.

PRODUCT –Product is the offering that is made to customer, which satisfy

their wants. This is the most important tool that company uses to attract consumer. As for Amul butter is their most profit-earning product as Dairy Milk for Cadbury.

TARGET MARKET

PRICE – Price is the critical marketing tool. Price is namely the amount

of Money that customers have to pay for the product. It is only mix that produces revenue for the company.

The two-price points under which Amul Chocolates are available are Rs 10, and Rs 5.

PLACE –A place is key marketing mix tool, stands for the various

activities the company undertakes to make the product accessible and available to the Target Customers.

PROMOTION – Promotion is an important tool, which stands for the various marketing activities that the company undertakes to promote its product to the target market.

As Amul now provide schemes to Retailers of 1 unit Free with 20 units of Amul Chocolates.

Promotional Mix Promotion consists of those activities that are design to bring companies goods or services to the target customers.

The promotional activities are concerned with:

Informing the people about products distinct wants—satisfying characteristics and its availability.

Reminding people periodically about the product and its roles.

Persuading the people, prospective buyers that make people do what they might not otherwise do what they do not really want to do.

Promotional Tools

1. ADVERTISING:

On one hand advertisement can be use to build up a long term relationship for a product (utterly buttery delicious), Advertisement is an effective way to reach numerous geographically dispersed buyers at a low cost per exposure. Certain forms of advertising such as TV advertising, can require a large budget, while other forms, such as newspaper advertising can be done on small budget.

2. SALE PROMO:

Companies use sales promo tools to create a stronger and quicker response. Sales promotion can be used to dramatize the product offer and to boost sagging sales. Sales promotion effects are usually short run, however, and not in building long run Brand preference.

3. DIRECT MARKETING:

The message is normally addressed to a specific Person and does not reach other. It can be customized to appeal to the addressed individual. It can be prepared very quickly for delivery to an individual.

4. PUBLIC RELATION AND PUBLICITY:

Public relation can reach many prospects who might avid sales people advertising, a potential for dramatizing the company product. A well thought public relation program coordinated with promotion mix elements could be extremely effective.

ADVERTISING BRAND

Question paper leakage of CAT of On difficulties in obtaining college

IIMS admissions

Nisha Sharma refuses to marry her SAARS Scare Groom on Dowry

Key Action Points

Define the measurable objectives for advertising campaign Develop a comprehensive briefing document for the advertising

agency, including: What is our brand horizon (where do we want it to be in the

medium/long term)? What are the measurable objectives for the advertising campaign? How will we measure the results? How is our brand defined? What is our target audience? What are the other communications activities are to be conducted? What is the competition doing?

Treat media buying as a separate issue, and consider hiring a specialist media agency

Having appointed the advertising agency of choice, work on building a long-term relationship

Objectives of advertising

Advertising has different roles at different times: Introducing the brand to potential customers Building the brand into the potential customer's landscape Tempting potential customers to give the brand a test Encouraging existing customers to buy the brand again/more often Strengthening relationships between customers & the brand

It can therefore have many objectives:

Awareness & recognition of the brand Familiarity with the brand Favorability towards the brand Belief in brand values Emotional bonding to the brand Propensity to purchase the brand Propensity to pay a premium price for the brand Developing the brand as a talking point

Some agencies offer eye-tracking research that tells the advertiser which part of a printed advertisement held the consumers' attention. Consumers' eyes often dart around a printed advertisement, missing the main messages & the brand identification, because they cannot find its focal point or any point of entry. The ideal printed advertisement provides a clear flow for the consumer to follow.

Packaging

The Austrian opinion researcher Dr. Helene Karmasin illustrated the importance of the connection between brand name goods and consumers. Her key argument is “consumers buy packages”. Of course it is not the package itself that she means, but rather the hidden meaning of the package. Every product has not only a functional value, but also serves the

emotional needs of the consumer - and this is where packaging plays an important role as a buying incentive.

A company should constantly ask itself what it is selling - and should translate this into a system of symbols. “If you sell pet food, you are selling love. If you sell cosmetics, you are selling hope - and this is what needs to be brought across to consumers on the packaging.” Shape, colour, text, pictures, and layout - all of these aspects play a role, because they all carry a culture-based meaning. “Products are news,” stated Dr. Karmasin. They give us information, and need to be coded accordingly: because the package is the last information, the last symbol, that the consumer gets before deciding which product to buy.

The package must stimulate the customer to buy the product. “The strength of packaging lies exactly in meeting the market challenge.” Packaging can be made with brilliant colours and the highest quality “This is exactly what brand owners need.”

Definition Materials used for the containment, protection, handling, delivery and

presentation of goods and the activities of placing and securing goods in those materials.

Wrappers or containers used to protect food or other products from dirt, germs, and damage. Packaging often provides information about the product. Sometimes goods contain more packaging than they need.

Materials used for the containment, protection, handling, delivery and presentation of goods and the activities of placing and securing goods in those materials.

Research shows that customers receive most communications impacts about the brand from:

The products/services themselves Their packaging Packaging has two major areas of focus: The physical build: The outer/bulk packaging The inner/display packaging

The aesthetic design - color, shape, size, smell, taste, movement, touch, weight, texture, sound

In many FMCG (fast moving consumer goods) markets, the packaging is the product. The brand team works on the image of the packaging and its contents as a unity. In business-to-business markets the packaging is dealt with as an after thought, and not seen as integral to the product positioning.

With each individual receiving reputedly 1,000-3,000 brand impacts a day, most of them audio-visual, there is a major opportunity to differentiate brands through the other senses that human beings are less able to manage on a conscious level. We may be able to recall a brand's slogan, or its logo, but how do we respond to the smells & textures associated with a brand, if we know that we are responding at all?

If food and drink brands could give you a foretaste of what is inside, or what should be associated with what is inside (for instance heather with whisky), that could be powerful. The packaging of children's toys is another good example, with its "Try Me!" buttons; or the "Singing Fish" that not only sings in its packaging, but also allows you to feel it moving, and even turns to look at you.

MeasurementThe three elements to research within packaging are:

Physical build - which denotes the quality/trustworthiness of the brand

Aesthetic design - which denotes the core values of the brand Informational content - which can denote both the trustworthiness

and core values of the brand, but which is usually treated functionally

Packaging should be a vehicle for regionalism, for balancing conflict between government and the private sector, between business and the environmental sector.

For users and manufacturers of packaging this means that we must continuously seek innovative packaging solutions and optimize packaging processes.

“One of the most important functions of packaging is to look good in consumers' eyes. That's even more of a challenge when those eyes are rheumy”.

Maximizing brand value

Brand valuation ultimately works on the basis of a potential buyer asking "how much more profit can I get for my products and services sold under this brand than under any brand I might build?”

The way to maximize brand value is to: Develop a compelling brand proposition Have a large segment of loyal customers who value the brand

significantly above its competitors Legally protect ownership of the brand Deliver the brand consistently through rigorous customer relationship

management processes Maximize awareness of, and familiarity with, the brand

DISRIBUTUION CHANNEL

In today’s economy, most producers do not sale goods directly to final consumer. But between them and final consumer their stand host of marketing intermediaries such as Brokers, Distributors, retailers, sales agents searching of customers and may negotiate on behalf of the producers and do not take the title of the goods these are what called middleman

The distribution channel of Amul comprise of

MANUFACTURER C& F

DISTRIBUTORS

WHOLESALER

RETAILERS

CUSTOMERS

A distribution channels performs the works of moving goods from the producer to consumers. It overcomes the line, place and increases the utility of goods and services.

The Supply Chain Of GCMMF is Given In Fig.4.

Figure 4.

FARMERS

Village Cooperative Societies (with Chilling Units)

Village Cooperative Societies (without Chilling Units)

Local Restaurants/ Others Milk Related Business

Milk Sold to Village and Local Residents

Milk Processing Union & Warehouses

GCMMF Warehouses

Warehouses and C & S

Chilling Plants

Home Delivery Contractors

Retailers

Network Services

Veterinary Services.Animal Husbandry.Animal Feed Factory.Milk Can Producer.Agriculture University.Rural Management Institute.Trucking Facilities.

COMPARATIVE STUDY OF COMPETITOR

Nestle India Ltd.Executive summary

Nestle India Ltd, 51% subsidiary of Nestle SA, is among the leading branded food player in the country. It has a broad based presence in the foods sector with leading market shares in instant coffee, infant foods, milk products and noodles. It has also strengthened its presence in chocolates, confectioneries and other semi processed food products during the last few years. The company has launched Dairy Products like UHT Milk, Butter and Curd and also ventured into the mineral water segment in 2001. Nestlé’s leading brands include Cerelac, Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Life.

Competition: Baby food and Instant coffee are categories where brand loyalties are very strong and Nestle is the market leader. HLL is a significant competitor to Nestle in instant coffee; while Heinz is the main competitor in the baby foods market. The market for culinary products, semi-processed foods such as noodles, ready mixes for Indian ethnic breakfast and sweets, is largely an urban market. HLL and Indo Nissin Foods are the main competitors in these product segments. Nestle has also achieved a significant 25% share in the chocolate/confectionery market. The company has recently expanded its dairy products portfolio to include, milk, curd and butter. The company also forayed into the bottled water segment with the launch of its Perrier brand in the premium mineral segment and Pure Life in the purified water segment.

Nestlé has maintained its thrust on improving availability of its products and on initiatives to increase the freshness of stocks available to consumers. New products are continuously launched in all product segments. In the current year the company has launched mineral water, UHT milk, butter, curd, new tomato and curry flavors in Maggie noodles, a new confectionery - Nestle Choco Stick at an affordable price point of Rs2, a soft chewy fudge

Milky bar Choo and Nestea iced tea. The company is also setting up ‘Café Nescafe’ and ‘Coffee Corners’ across metros and mini-metros.

COMPARATIVE STUDY OF CHOCOLATE DEALERS IN DEHRADUN

DETAILS OF DISTRIBUTORS

Name of the company Name & Address of the distributors

Mr. Pankaj, Tilak road Johar complex,Rishikesh.

Mr. Parth, Sturdia colony, virbhadra road

Rishikesh

Bharat Enterprises, 35/43, Railway Road,

Rishikesh

DISTRIBUTION CHANNEL

MANUFACTURER

GHAZIABAD DEPOT

KANPUR DEPOT

ROORKEE DEPOT

DISTRIBUTORS

WHOLESALER RETAILERS

CUSTOMERS

MANUFACTURER C & FDISTRIBUTORS

WHOLESALER

RETAILERS

CUSTOMERS

MANUFACTURERC & F

DISTRIBUTORS

WHOLESALER

RETAILERS

CUSTOMERS

SERVICES PROVIDED BY DEALERS

AMUL No services are provided.

CADBURY Sale Units Services 3000 - 5000 Non- Cooling Dispenser

10,000 – 12,000 Cooling Dispenser. 12,000 & above Fridges

Local Service Station ( Cadbury repair Station ) Door Delivery, Bannering, Postering

NESTLE Credit Facility Dispenser Replacement.

STOCK DELIVERY PATTERN.

AMULSVS Marketing – Ready Stock

RKJP Marketing – Ready Stock

CADBURY Gita Parth Agency – Ordered booking

National Agency – Ordered booking

NESTLE Bharat Enterprises – Ready stock

DISTRIBITION OPERATION

AMUL SVS Marketing –

Inventory/Days – 10 Days Max. Limit – Rs. 75,000 Sales/Month – Rs 25,000

RKJP Marketing – Inventory/Days – 15 Days Max. Limit – Rs. 60,000 Sales/Month – Rs 15,000

CADBURY

Gita Parth Agency – Inventory/Days – 15 Days Max. Limit – Rs 18 to 20 Lakh Sales/Month – Rs 14 Lakh

National Agency – Inventory/Days – 30 Days Max. Limit – Rs. 20Lakh Sales/Month – Rs 10Lakh Seasons Sales Rs 12 Lakh

NESTLE

Bharat Enterprises – Inventory/Days – 20 Days Max. Limit – Rs 10 to 12 Lakh Sales/Month – Rs 12 Lakh.

SERVICE COST

AMUL NO SERVICES

CADBURYa) Dispensers b) Glass Top Fridges

NESTLE a) Dispensers – Rs 250 to 300 b) Glass Top Fridges – Rs 6000 to 8000.

FUTURE PLANS / SUGGESTIONS

AMULConsumer Awareness, Dispenser Availability, And Schemes for Retailers and Consumers

CADBURY

Publicity

NESTLE Product Penetration, Classic in a Pack of 40gm and 28 gm, good adds in comparisons to Cadbury.

GRIEVANCES

AMUL No Replacement by Company ( 20% hardly) Pressure Stocking ( leads to expiry as of low sales

and high inventory) Less Variety.

CADBURY Pressure Selling Lots of chances of Damages Pressure to keep high Inventory.

NESTLE Satisfied

SWOT

The term SWOT analysis on elaboration is self-explanatory term in which S stands for Strengths, W Stands for Weakness, O Stands for Opportunities, and T stands for Threats.

The Words Strengths here mean what are the strong areas where company is well ahead of its competitors and due to which the image of the company is strong in the market.

The word Weakness means what are the areas where company is trailing from its competitors.

The word Opportunities means what are the areas the company is having chance to be well ahead from it’s competitors by making some changes or by adding some attributes to it’s brand.

The word Threats means those areas that are the acting as negative ones for the company and positive one for its competitor.

Swot analysis of Amul Chocolates and their competitors

STRENGTHS –

A well recognized Brand Biggest sourcing base for milk and milk products in India. India’s best-known local Brand across all categories. Good margin of Profit for retailers High demand of Amul milk Chocolate Advantage of our already existing cold chain to get more

active in the growing market of molded chocolates and confectionery

Can make good utilization of Established goodwill of Butter channel

A sense of patriotism is attached (the taste of India) Amul has built up a formidable image as a brand in which

generations of consumers have placed their trust. This can be used to its advantage while introduction of new variants of chocolates.

WEAKNESS – No advertisements and promotions are made for Amul

Chocolates. Less number of variant in chocolates, as just only five

variants is present at latest. Absence of Customers Schemes. As per our survey, retailers list a credible Replacement

policy as a factor very high on their wish list. They would be willing to make further investments only for that brand which offers replacement facilities. Amul has no replacement policy.

OPPORTUNITIES – Packaging can be made more attractive and Glossy as it

affects the psychology of a consumer. Good market penetration made by their dairy products,

chocolate segment can make food use of it. Can try to create Brand loyal customer Lots of scopes of improvement like in the field of

Distribution, Sales Services, Credit sale. Retailers now demand freezers without having to pay any

deposit. This is especially true of those retailers who already stock one or the other

THREATS – Low Market Coverage. Provides no services like Dispenser, Visi coolers. Retailers and Distributors not Satisfied with company

Services unlike Cadbury and Nestle Usually Supply of old dated Chocolates.

SWOT Analysis

STRENGTH – Brand leader in noodles (Maggie) and coffee (Nescafe) Satisfied middleman Brand ambassador like Rani Mukheerje

WEAKNESS – Profit margin need to be revised No innovation or new variants

OPPORTUNITY – All brand not successful All variants not successful

THREAT – Tough competition from Amul and Cadbury Low profit margin to retailer’s

FINDINGS

In this project we covered Dehra Dun city and the total sample size was 205. Which includes 150-customer survey, 50 retailers survey and 5 Distributors. The product under study was Amul Chocolates especially newly launched Variants Fundoo, Bindaaz, and Almond Bar.

The whole Amul market for Dehra Dun Valley was segmented into two parts

1. SVS MARKETING

2. RKJP MARKETING

Findings from customer’s survey –

Chocolates in India are consumed as indulgence (pleasure) and not as a snack food

People are not regular customers of chocolates because out of 150 surveyed customer only 8 % has polled for daily.

People are well aware of Amul chocolates but of old variant mostly milk chocolate. And prefer less in comparison to Cadbury.

Presently Cadbury is most preferred brand in chocolate market, which holds more than 53 % of total chocolates market.

Brand name influence the sale of chocolate up to greater extent. In case of product like chocolates taste is very important factor .

Among all the packs of Amul chocolate Rs 10 is mostly preferred price point, but it varies according to area as in Dharampur, Nehru colony Fundoo pack of Rs 5 was most Preferred.

Most of the consumer surveyed are not satisfied with the taste of Amul chocolates and want buttery type taste as similar to that of Cadbury chocolate.

Mostly surveyed customer consumes Cadbury and is loyal towards their brand, which means a tough task for Amul to turns customers loyalty.

Pure milk chocolate of Amul is mostly demanded among all variants of Amul Chocolate

Dairy milk of Cadbury is most preferred chocolate in over all chocolate market.

Children and College Students are the main consumers of chocolates to whom Amul should do their product positioning.

Findings from Dealers survey –

I have visited dealers of mainly three companies Amul, Cadbury, Nestle.

Their findings are as follows.

Among all the three companies Cadbury is the leader in the chocolate market.

Both Cadbury and Nestle deals on Credit basis except Amul This could the reason why Retailers avoid to Deal with Amul as all the transaction are made on Cash basis.

Rajpur roads Palltan Market are most Favorable Market for all the three Dealers.

Dealers of Amul rarely visit retailers because they don’t have Variety’s in Comparison to Cadbury and Nestle.

Amul doesn’t provide any kinds of services like replacement of expired chocolates where as this facilities are available in both the company Cadbury and Amul.

Packaging of Chocolates was Dull and is not attractive. All the companies offer Schemes to Retailers (as 20 + of Amul). Distributors are forced to stock more Quantity of Chocolates

then required, chances of damage is more as such.

RECOMMENDATIONS

As the Company Amul Are taking some efforts but still it should consider

some suggestion, which I intended to put forward to the organization this,

have been developed through discussion with retailers, customers and

dealers while on survey of Amul chocolate in Rishikesh.

Improvement in taste is must (Should be more Buttery like Cadbury Dairy

Milk)

Should make packaging more attractive and glossy as packaging

affect psychologically on people’s mind.

Try to introduce more variants and different price points

Should make attractive ads and promos of chocolates, as there is no

advertisement till now.

Customer schemes should be made available like KIT – KAT of

Nestle.

Should try to provide proper service to its distributors as Nestle is

providing so that they can be fully satisfied.

More flavors should be introduced as Nestle have at present.

Go for good Brand Ambassador as Amitab and Pretty Zinta for

Cadbury and Rani Mukheerje for Nestle Munch.

Should Improve distribution Channel so as to make Amul chocolates

available at every shop.

Should provide Sale services (Dispenser, Coolers)

Should provide Facilities of Credit and Replacement of out Dated and

Damaged products.

Company should launch Wafers types of Chocolate as Perk and Kit-

Kat are mostly in demand.

Company should also offer Schemes or free gifts to customer as

presently no Schemes for Customers are there.

Small shop Should Not Be Neglected.

If Amul Company actually want to lead or dominate the Chocolate

market then it should try to ponder this suggestion and provide Chocolate

vending machine.

LIMITATIONS

Time constraints due to time constraints I have not been able to cover all the regions of Rishikesh.Had to cover only those regions, which come under beat plans of Amul.

Some retailers were unwilling to give information, as they were not at all interested in dealing with Amul chocolates.

There might be possibility of biased information by some retailers due to misrepresentation of facts.

Cadbury and nestle didn’t had any exact figure that how much sale of which variant are contributing monthly.

Also wanted to include Campco in comparative study of chocolates and for that visited twice to campco’s Super Stockiest but might be because of hectic schedule the dealers was not able to gave time.

LEARNING EXPERIENCES

Working in an organization like Amul India was really a wonderful experience for me to know about Amul India and also about the corporate world. Specially the competitors of Amul such as Cadbury, Nestle etc.

Working under the guidance of an area manager of Amul India, Dehradun Mr. Mukesh Sadana helped me to gather first hand experience of market and some practical experience of life.

1. How to enter into the market

2. How to convince the parties / people (like Retailers) so that they will

purchase your product.

3. Marketer must have deep knowledge of the product with which he is

dealing.

4. Knowledge of the company in which a person is working is not

enough but the knowledge of the competitor and cooperate world is

also must.

5. A marketer must always keep this proverb in his mind that

“Customer is king” so he should try to take care of the demand of his

customer

6. A person should well know hierarchy level of management in the

organization, which he is working.

7. Confidence level should be high.

8. Should always be ready to face any kind of problem that exists in the

market or in company.

9. Good listening or tolerance power is must. He should always

remember that listening is much more required than speaking.

10.Good relation with employee where you are working is must.

ANNEXURE

CUSTOMER’S QUESTIONNAIRE

1. Do you like to have a chocolate?

2. How often do you use chocolate? a) Daily b) Twice in week c) Weekly d) Occasionally

3. Which type of chocolate you like most? a Wafers types b) Nutties types c) Pure chocolate

4. Which brand of a chocolate you prefer most and why? a) Amul b) Nestle c) Cadbury.

5. Have you ever tried Amul chocolate?

6. If yes how did you find it? a) Very good b) Satisfactory c) Poor.

7. What makes you to buy for Amul chocolate? a) Good taste b) Brand name c) Advertisement d) Reasonable cost

8. With increase price will you still buy your favorite chocolate?

9. Do you feel that there should be any improvement in Amul chocolate?

a) Yes b) No

10. Do you feel that there should be any improvement in Amul chocolate? a) Change in packaging b) change in taste c) reasonable pricing

11. Any suggestions

PERSONAL DETAILSName: Age: Address: No. of family members: Phone No.: Your monthly Savings: Your monthly Expenses:

RETAILER’S QUESTIONNAIRE

1. Chocolate of which brand do you stock most?a) Amul b) Nestle c) Cadbury

2. What is the reason of buying these brand chocolates?a) Demand b) Profit Margin c) Sale services

3. Which variant of Amul chocolate is/are most demanded by customers?a) Milk Chocolate b) Fruit & Nuts c) Fundoo d) Bindaaz e) Almond bar

4. Who are the regular customers of chocolate?a) Children b) College Students c) House Wives.

5. Have you ever got any complaints in Amul chocolates? a) Yes b) No If yes please specify.6. How do you find the sale of Amul chocolates?

a) Good b) Satisfactory c) Bad

7. What are the problems that you face while dealing with Amul chocolates?a) Storage b) Selling c) Supplies.

8. During which month do you feel that the sale of Amul chocolate increases most?

a) January to April b) May to August c) September to December.

9. Which pack is mostly demanded?a) Rs 10 b) Rs 5.

10. Do you feel that there should be any improvement in Amul chocolates?a) Yes b) No.

11. If yes what kind of improvement?a) Change in Packaging b) Change in taste c) Distribution Channels.

PERSONAL DETAILSName: Age: Phone No:Shop Address: Your monthly expenses on chocolates:

QUESTIONNAIRE OF DISTRIBUTORS

1. Name of the company?

2. Name of the distributors?

3. Address of the distributors?

4. Your distribution channel.

5. What kind of infrastructural facilities do you have?(a)Salesman (b) Delivery vehicle i) 2 Wheeler ii) 3 Wheeler

6. Profit Margin(a) Distributors (b) wholesalers (c) Retailers (d) salesman

7. Stock delivery pattern.(a)Ordered booking (b) Ready stock

8. Coverage(a)Total Retailers (b)Total Wholesaler

9. Coverage Frequency (Daily / Monthly / Weekly).

(a) Retailers (b) Wholesaler

10.Mode of payment.( w / r / s)(a) Cash (w / r / s)(b) Credit (w/ r / s)

i) Cheque (w / r / s) (ii) Demand Draft (w / r / s)(c) Credit Period Received

i) wholesalers (ii) retailers (iii) salesman

11.Mode of Receipt. (W / r / s)(a) Cash (w / r / s)(b) Credit (w/ r / s)

I) Cheque (w / r / s) (ii) Demand Draft (w / r / s) (c) Credit Period Given.

i) Wholesalers (ii) retailers (iii) salesman

12.Which is the most favorable market?

13.What are the Services that are Mostly demanded by supply Chain (r/w/s/c)?

14.Schemesa) Wholesalers/salesman b) Retailers c) Customers

15. What are the services do you provide to ( r/w/s/c)?

16. Distributor’s operation a) Inventory (days) Maximum limit b) Stock capacity c) Sales (monthly/weekly/daily)

17. How much does your service cost? a) Dispensers b) Glass Top Fridge.

18. Future Plans / Suggestions

19. Grievances.

REFERENCES

ARTICLES/JOURNALS/BOOKS

From An Article By Mini Varma Published In The Asian Age On March 3, 1996

Annual Report Of Gcmmf 1999 Business Today September 30,2001 Phillip Kotler, Marketing Management.

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