Brand Audit of Amul

Group Member

Mehdi Rizvi - 88

Hanif Sable - 94

Nazmuddin Farooqui - 106

Ritu Rajani

Purnima Shahu

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BRAND AUDIT

Brand audit is concerned with the ‘behavioural & psychological’ nature of brand equity, not the

financial dimension, and it will be discussed in terms of the strength of a brand’s equity and its

nature. In the management of a brand, the building, strengthening, and nurturing of its equity will

lead to a more positive contribution to market value for the company. But from a strategic brand

management standpoint, one is concerned with measures that will help better manage that equity.

If successful, the financial value of a brand name will take care of itself.

The real benefit of conducting a brand audit is that it helps provide a look at the current state of

knowledge about a brand’s equity as well as providing a fresh understanding of the brand. It will

also provide a better understanding of what role advertising and other marketing communication

has played and can play in maintaining a brand.

But, the most important question which comes to our mind is what should be reviewed? At least

everything that is reasonably available and likely to be relevant to the brand. Obviously, this will

include any recent research that has been conducted for the brand, but also studies of general

market trends and other information about the category, distribution channels, competitive

activity etc.

Brand Knowledge

Brand knowledge refers to brand awareness (whether and when consumers know the brand) and

brand image (what associations consumers have with the brand). The different dimensions of

brand knowledge can be classified in a pyramid adapted from Keller in 2001, in which each

lower-level element provides the foundations of the higher-level element.

Brand Awareness

Brand awareness measures the accessibility of the brand in memory. Brand awareness can be

measured through brand recall or brand recognition. Brand recall reflects the ability of

consumers to retrieve the brand from memory when given the product category, the needs

fulfilled by the category, or some other type of probe as a cue.

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Brand Recall

It is important to measure not only the depth of recall (the percentage of people who know the

brand) but also the width of recall (the cues that lead to brand recall). Therefore, it is important to

ponder the choice of the cue that will be used in the recall question. A good start is to think about

who, when, where and how the brand will be bought or used). Typical cues are:

- Subcategories (beverages/soft drinks/colas/diet colas, etc.).

- Consumption occasions/goals (beverages that you would consider purchasing for a romantic

date, etc.).

- Places (available in a supermarket, in a bar, etc.).

- People (drink alone, in a group, etc.).

Brand Recognition

Brand recognition reflects the ability of consumers to confirm prior exposure to the brand (i.e.,

recognize that it is an “old” brand that they have seen before and not a “new” brand that they are

seeing for the first time). In a recognition task, consumers see a stimulus (e.g., an ad for the

brand, a brand name) and must say whether they have seen it before (e.g., last night on

television, in magazine X, etc.). It is important to make the task as realistic as possible by

allowing only a short amount of time to answer the recognition question and by using realistic

stimuli and context.

Brand Image

Brand image is defined as consumer perceptions of a brand and is measured as the brand

associations held in consumers’ memory. To measure brand image, you can either use and adapt

an existing list of brand associations (e.g., Young & Rubicam’s BrandAsset Valuator or Aaker’s

brand personality list) or start from scratch by eliciting brand associations and then measuring

the strength of these associations. The outcome of this exercise is usually a short list of the

positive and negative associations consumers have with the brand, ranked by strength.

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Brand Equity

Brand equity is the differential effect that brand awareness and brand associations have on

consumer response to the marketing of that brand. By marketing, we include advertising,

distribution, pricing and promotion as well as new products and brand extensions

Brand Value

Brand value is the financial value of the brand, i.e., the net present value of the financial benefits

derived from the brand. Brand value is a function of the brand’s equity, of course, but also of the

brand’s sales. For example, although Rolls-Royce has a higher brand equity than Bentley (people

would prefer the same car with an RR logo than with a Bentley logo), its sales are so much lower

than Bentley’s sales (and must remain so to retain the brand’s exclusivity) that, in the end,

Interbrand estimated that the value of the Rolls-Royce brand is lower than the value of the

Bentley brand. The ability to value and put a price tag on a brand’s value may be useful for a

number of reasons, including mergers and acquisitions, brand licensing, fund-raising and brand

management decisions.

About Amul

AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya,"

was suggested by a quality control expert in Anand. Amul products have been in use in millions

of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul Cheese, Amul

Chocolates, Amul Shrikhand, Amul Ice cream, Amul Milk and Amulya have made Amul a

leading food brand in India. (Turnover: Rs. 67.11 billion in 2008-09). Today Amul is a symbol

of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast co-

operative network.And of a proven model for dairy development.

Founder Of The Amul Company

Dr Verghese Kurien, the Chairman of the GCMMF (Gujarat Co-operative Milk Marketing

Federation Ltd), an apex cooperative organisation, based in the in Anand town of Gujarat, India.

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COMPANY PROFILE OF AMUL

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in

India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative

Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6

million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a

sterling example of a co-operative organization's success in the long term. The Amul Pattern

has established itself as a uniquely appropriate model for rural development. Amul has

spurred the White Revolution of India, which has made India the largest producer of milk and

milk products in the world. It is also the world's biggest vegetarian cheese brand .

AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya,"

was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found

in several Indian languages.

Gujarat Cooperative Milk Marketing Federation (GCMMF)

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.

Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice

cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January

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2006, Amul plans to launch India's first sports drink Stamina, which will be competing with

Coca Cola's Powerade and PepsiCo's Gatorade .

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual

turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with

milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas

markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong

and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded,

but now it has fresh plans of flooding the Japanese markets .Other potential markets being

considered include Sri Lanka.

Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the

success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was

elected chairman of GCMMF.

ACHIEVEMENT

Amul :Asia‟s largest dairy co-operative was created way back in1946 to make the milk producer

self-reliant and conduct milk- business with pride. Amul has 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:

a)First self motivated and autonomous farmers‟ organization comprising of more than 5000000

marginal milk producers of Kaira District.

b) Created Dairy co-operatives at village level functioning with milk collection centres owned by

them.

c) Computerized milk collection system with electronic scale and computerized accounting

system.

d)The first and only organization in world to get ISO 9000 standard for its farmers co-operatives.

e)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.

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Amul in abroad

Amul is going places. Literally. After having established its presence in China, Mauritius and

Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), India‟s largest milk

cooperative, is waiting to flood the Japanese market.

Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products

are already available on shelves across several countries, including the US, China, Australia,

West Asian countries and Africa.

GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk, ultra

heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.

Facts

Amul - Business Model

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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 liters per day

Milk collection (Total - 2008-09): 3.05 billion liters

Milk collection (Daily Average 2008-09): 8.4 million liters

Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing Capacity: 3500 Mts. per day

SWOT Analysis 

Strengths

Demand profile: Absolutely optimistic. Milk being a necessity product, the demand will

stay and the sales at GCMMF are bound to increase over a period of time.

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Margins: Quite reasonable, even on packed liquid milk. The margins are enough to limit

the entry of potential entrants.

Flexibility of product mix: Tremendous. With balancing equipment, GCMMF has kept

adding a wide array of products to its product line.

Availability of raw material: Abundant. Presently, more than 80 per cent of milk

produced is flowing into the unorganized sector, which requires proper channelization. Amul &

GCMMF have leveraged this and has got itself a strong base of suppliers who provide them milk

throughout the year. Large number of dairy plants in public and cooperative sectors besides

several others coming up in the private sector would result in competition. Because of this the

end consumer would benefit and a good product mix would emerge.

Technical manpower: Professionally trained, technical human resource pool, built over

last 30 years is the strength that GCMMF has. The employees of GCCMF are highly recognized

in the industry and have earned name for themselves as well as the federation.

Enhanced Milk Production: Increase in the milk production with consequently

increased availability of milk processing has led to increase in consumption and faster access to

the consumers through effective distribution. The technology is brought from Denmark and the

production of milk has benefited from that.

Transportation: The transportation facilities and the easy availability of the special

trucks have provided a boost. Cold refrigerated trucks are there in place and the warehouses also

have the cold storage facilities that facilitate the transportation.

Vast resources: Country has vast natural resources which offer immense potential

growth and development for dairying. Moreover the financial resources available with the

federation are immense and the reputation is such that in case of any further requirements, it can

approach any institution and raise any form of capital.

Increasing purchase power and changing tastes of the consumers: The purchasing

power of the residents is increasing. As a result a lot of products are being consumed. Moreover,

the consuming habits are changing. As a result, the demand for products such as butter and

cheese is increasing at a very rapid rate.

Weaknesses

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Perishability: Pasteurization has overcome this weakness partially. UHT gives milk

long life. Still perishability is there at the milk vendors end. This does result in loss of

some production. But Amul Dairy is taking steps to store milk at the vendors end.

Surely, many new processes will follow to improve milk quality and extend its shelf life.

Lack of control over yield: Theoretically, there is little control over milk yield. A lot

depends upon the monsoon in the country. This is because of the quality of cattle feed that

would be available will not have the required nutritional content. Steps are taken to provide

awareness regarding these and the penetration of quality feed is being increased. Moreover,

increased awareness of developments like embryo transplant, artificial insemination and properly

managed animal husbandry practices, coupled with higher income to rural milk producers should

automatically lead to improvement in milk yields.

Logistics of procurement: Woes of bad roads and inadequate transportation facility

make milk procurement problematic. All these factors lead to perishability of the procured milk.

But with the overall economic improvement in India, these problems would also get solved.

Erratic power supply: The erratic power supply would cause harm in the processing of

milk.

Underdeveloped systems: There still exist underdeveloped raw milk collection systems

in some parts of the country. However steps are being taken such as setting up of cold storage

points at key collection centers to combat the situation.

Lack of proper implementation: Dairy development programmes have not been fully

implemented as per the needs of the region in different agro-climatic zones.

Infrastructure: The infrastructure that is available is not up to the current world

standards. Also lack of infrastructure for offering dairy business management programmes to the

trained personnel is creating a hindrance.

Opportunities

"Failure is never final, and success never ending”. Dr Kurien bears out this statement

perfectly. He entered the industry when there were only threats. He met failure head-on,

and now he clearly is an example of ‘never ending success’! If dairy entrepreneurs are

looking for opportunities in India, the following areas must be tapped:

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Competition: With so many newcomers entering this industry, competition is becoming

tougher day by day. But then competition has to be faced as a ground reality. The market is large

enough for many to carve out their niche. Moreover due to competition, there is a chance to

better serve the market with innovative products.

Value addition: There is a phenomenal scope for innovations in product development,

packaging and presentation. Given below are potential areas of value addition:

o Steps should be taken to introduce value-added products like shrikhand, ice

creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater

presence and flexibility in the market place along with opportunities in the field of

brand building.

o Addition of cultured products like yoghurt and cheese lend further strength - both

in terms of utilization of resources and presence in the market place.

o Yet another aspect can be the addition of infant foods, geriatric foods and

nutritional.

Export potential: Efforts to exploit export potential are already on. Amul is exporting to

Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty,

opportunities will increase tremendously for the export of agri-products in general and dairy

products in particular. There is a strong basis of cost efficiency, which GCMMF can leverage in

the world market.

Markets: The market for the traditional as wells as processed dairy products is

expanding both at the domestic and international front.

IT support: Software is now available for project formulation for dairy enterprise. It has

also computerized its production processes. Mother Dairy was the first fully computerized dairy

in India. In its Anand plant all products are processed computerized, which does not have any

hand touch during any stage of process.

Threats

Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of

place in the industry. Organized dissemination of information about the harm that they are doing

to producers and consumers should see a steady decline in their importance.

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Infestation: There are increasing incidents of chemical contaminants as well as residual

antibiotics in milk.

Quality: The quality of the milk is found to be poor as compared to the international

standards. One of the reasons for these according to the EU and America is the method of

milching the milk. In these nations the milk is hands by the farmers owning the cattle do milched

with the help of machines, while in India.

Exploitation: The liberalization of the Dairy Industry is likely to be exploited by the

multinationals. They will be interested manufacturing the milk products, which yield high

profits. It will create milk shortage in the country adversely affecting the consumers.

Subsidy by Western Nations: There have been incidences wherein the Western nations

subsidizing the dairy products by a few means like transportation. Because of such reasons the

final price of the product goes below the prices prevailing in the Indian Market. Hence it proves

a threat to GCMMF’s and other Indian dairy products.

Creation of Non Tariff Barriers by Developed Nations: The Developed Nations have

created Non Tariff Barriers related to Quality of the milk specifically. They want that the milk be

processed with potable Air and Water. They also want that the milching of cattle be done with

the help of machines. However this type if system is yet to evolve in India. Because of these

reasons they are reducing the market potential of Indian made products, where GCMMF holds a

lions share.

The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far outweigh

‘weaknesses’ and ‘threats’. Strengths and opportunities are fundamental and weaknesses and

threats are transitory. Any investment idea can do well only when you have three essential

ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines

and marketing) and values (of quality/ethics).

Competition

Amul has to defend against Mahananda, Vijaya, Milma, and other cooperative milk

brands

Aggressive moves against Britannia, Nestle, Mother Dairy, Kwality

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Amul has a competitive sustainable advantage. This lies in the procurement part. Its

ability to collect 7 million liters of milk from 2.6 million farmers and onvert it into

Rs. 6 crore worth products and distribute them to 5 lakhs retailers is a tough job.

Intelligent marketing

THE COMPETITORS

The various competitors of Amul product –wise is given as under:

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AMUL SALES TURNOVER

Marketing Mix

PRODUCT

Cheese

Amul pasteurized processed cheese

Amul cheese spreads

Amul emmentel cheese

Amul pizza mozzarella cheese

Gouda cheese

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Cooking

Amul pure ghee

Amul cooking butter

Amul malaipaneer

Utterly delicious pizza

Masti dahi

Desserts

Amul ice –cream

Amul shrikhand

Amul mithai gulabjamun

Amul chocolates

Amul lassi

Amul basundi

Health drink

Nutramul

Amul shaktihealth food drink

Bread spread

Margarine Amul butter

Amul lite

Delicious table

Milk drinks

Amul kool milkshake

Nutramul energy drink

Amul koolflavouredbottled milk

Amul mastispiced buttermilk

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Amul koolthandai.

Powder milk

Amul spray infant milk food

Amul instant full cream powder

Sagar skimmed milk powderr

Sagar tea coffe whitener

Amul dairy whitener

Fresh milk

Amul fresh milk

Amul gold milk

Taza double toned milk

Amul liteslim and trim milk

Amul fresh cream a

Amul shaktitoned milk

Amul calciplus

PRICE Survival. Capture market share. To provide service to all income group

Amul butter:100gm– Rs.18Competitor: Mother Diary 100gm- Rs.19

Amul cheese:200gm– Rs.55Competitor: Britannia cheese–200gm– Rs.70

Amul Ghee:1Lit.– Rs.190 Competitor: Gits. 1Lit.-Rs.210

Amul Kool Milkshake200ml– Rs.15

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Competitor Nestle Milk Shake –200ml–Rs.20

Sr.No: Product Pack size Max. Retail price1. Amul Butter 100g Pack Rs. 182. Amul Butter 500g Pack Rs. 923. Amul Lite Low fat Bread

spread200g tub Rs. 32

4. Amul Cheese 400g Tin Rs. 1055. Amul Cheese Slices 200g Pack Rs. 706. Amul Cheese Chiplets 200g Pack Rs. 607. Amul Cheese 1 kg Block Rs. 1978. Amul Shrikhand 200g Elaichi Rs. 219. Amul Chocolates 35g Fruit &Nut Rs.1610. Amul Mithaee Gulab

jamun1kg. Rs.100

PROMOTION

Advertising philosophy"tobesimple,fresh and innovative".

The clean, emotion-based ads.

Amul ads-creative, apt forth current situation.

The Amul ads are one of the longest running ads based on a theme, now vying for the

Guinness records

1% of its turnover on promotions.

Not spending more than Rs 2crore on Amul butter.

Billboard campaign

First billboard came up in 1967

For the first one year the ads made statements of some kind

Later many topical adds came into existence

When Mumbai first saw the beginning of the Hare Rama Hare Krishna movement

Amul came up with a clincher—‘Hurry Amul, Hurry Hurry

INDIAPromotion by events

Amul Chef of the Year, 2009 contest

Amul Maharani Contest, 2008-09

Amul Food Festival Contest

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Winners of Slogan likho Disney land dekho contest

Winners of" Amulya Fly to Bangkok Contest

Sponsoring amul star voice of india

Amul promotes itself by conducting various contests such as:

• Chef of the year- in this, the participants are required to use as many Amul products as

possible

• Amul Maharani of the year – in this, the participants are required to fill up

questionnaires and then there is a lucky draw.

Amul publishes some books periodically. Basically they are related to Amul or dairy industry

Amul also gives away academic excellence awards for school children every year. They are

called Vidya Shree – for 10th std and Vidya Bhushan – for 12th std students.

PLACE Amul-Place

Channels

Coverage

Assortments

Locations

Inventory

Transport

Its supply chain one of the most complicated in the world. Amul has plans to create a large chain of such outlets to be managed by franchisees

throughout the country

ChannelOnline (Internet):

Amul cyber store

Ice-cream cyber store

Direct retailing through"AmulUtterlyDelicious"parlours:

Major cities Ahmadabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat.

Presently 1,500 parlours and plan to open 10,000 of them by 201

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Retailers:

Currently online are Chennai and Calcutta

Chennai, Kolkata, Nasik, Jalgaon, Aurangabad, Delhi, Raipur, Jodhpur, Udaipur, Pune,

Siliguri/Durg, Kota.

Wholesalers:Producer Cooperatives: This type of distribution organization is formed by agricultural producers for

selling their produce in the local market.

Network of over 3,500 distributors

Coverage

India:

Covering 13,000 villages benefiting 2.7 million farmers

Collection 447,000 liters of milk/day from 2.12 million farmers.

Delivery of goods to over 500,000 retail outlets across the country

Members: 13 district cooperative milk producers 'Union

No. of Producer Members: 2.7 million

No. of Village Societies: 13,141

International Markets:

Available in over 40 countries.

Locations

The major markets are the US, WestIndies, countries in Africa, the Gulfregion, Singapore, the

Philippines, Thailand, Japan and China. Some Amul Parlours in the country run by the company

or its wholesale dealers:

Delhi Metro Rail Corporation

The Somnath Temple

National Institute of Design

Infosys Technologies in Bangalore, Mysore & Pune

Wipro campus in Bangalore

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L.J. College, Ahmedabad

Ahmedabad Airport

Surat Municipal Corporation

Gujarat State Raod Transport Corporation

Jubilee Mission Medical College, Trichur,Kerala

Sanjay Gandhi Hospital Parlour, Amethi

Indian Institute of Management, Kolkata

Café Amul, MDG, Gandhinagar

Inventory

47 depots with dry and cold ware houses of entire range of products.

Total Milk handling capacity: 10.21 million liters per day

Milk collection (Total-2007-08): 2.69 billion liters

Milk collection (DailyAverage2007-08): 7.4 million liters

Milk Drying Capacity: 626Mts. Per day

Cattle feed manufacturing Capacity: 3090 Mts per day

Transport

Transport cans

Engages in route scheduling

Has dedicated vehicle operations.

Assortment

Amul’s dominance: Products like cheese, butter, liquid milk and yogurt sectors

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Amul’s success today is partly because of its strong supply chain design. Below is the schematic

diagram of Amul’s supply chain.

With products being highly perishable, the supply chain ought to have to maintain correct

temperature, humidity etc and the chain should move fast. To reach out its consumers more

directly and let them the total brand experience, Amul has come up with Amul parlours. These

are called “Utterly delicious parlours”. They have come up in major cities like Ahmadabad,

Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat already, and many more starting up

real soon. Till date there are about 400 Amul parlours across the country. These parlours are set

at prominent locations such as campuses of Infosys, Wipro, IIM-A, IIT-B, temples, Metros etc.

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RESEARCH DESIGN:

Research Problem:

Increase the awareness level of AMUL chocolates.

Seek the general perception of consumer towards Amul Chocolates.

To find the performance of Amul Chocolate vis-à-vis other brands.

To know the consumer psyche and their behaviour towards Amul Chocolate.

Research Objectives and related sub-objectives:

To know the relationship of sales with advertisement.

To know the awareness of people towards Amul Chocolates.

To know in which segment chocolates are most preferred.

To know which advertisement tool is mostly preferred by people.

To know the preference of Amul Chocolates with comparison to other competitive

brands.

To know the factors which affects consumer’s buying behaviour to purchase chocolates.

Information requirement:

First, we had to know about all the competitors present in the chocolate segment

(Reputed and well established brands as well as local brands)

Before going for the survey we had to know the comparative packs and prices of all the

competitors existing in the market.

Since chocolate is a product that attracts children and youngsters hence we had to trace

the market segmenting it, which mainly deals with people of various age groups.

As chocolate is a different, the main information needed is the various types of

chocolates available in the market, their calorific value and various other facts.

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Choice of Research design:

Despite the difficulty of establishing an entirely satisfactory classification system, it is helpful to

classify marketing research on the basis of the fundamental objectives of the research.

Consideration of different types, their applicability, their strengths and their weaknesses will help

us to select the type best suited to a specific problem.

The general types of research applied are:

Exploratory Research:

Exploratory research seeks to discover new relationship, emphasis on discovery of ideas.

Marketing research devote a significant portion of their work on exploratory studies when very

little is known about the problem being examined.

Conclusive Research:

Conclusive studies attempts to determine the frequency with which something occurs or the

relationship between two phenomenons. Usually conclusive studies assume certain underlying

characteristics of the market or have some precise statement of research questions and

hypothesis.

Data Collection Methods:

The questionnaire method has come to be the most widely used method of data collection. A

questionnaire consists of list of questions to be asked from the respondents and the space

provided to record the answer. Questionnaire can be used for personal interviews, focus group,

mail and telephonic interviews. The choice among these alternatives largely depends on the type

of information to be obtained and by the type of respondents from whom information is to be

obtained. The various types of questions included are as under:

Multiple choice questions:

Questions of this type offer the respondents an alternative to choose the right answer among

others. It is faster, time saving and less biased. It also simplifies the tabulating process.

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Open ended questions:

In this type the respondents are free to answer in their own words and express the ideas they

think are relevant, such questions are good as opening questions. They introduce the subject and

obtain general reaction.

Dichotomous:

These are the questions which are Boolean in nature. These answers are straight forward and

respondents have to answer them in a straight way either yes or no.

Sampling Design:

Sampling design is a definite plan of obtaining some items from the whole population. The

sample design used in this project is two stage sampling i.e.

Cluster sampling, and

Convenience sampling.

Sampling Technique used:

Non-Probability sampling technique: It is a technique in which each element does not have an

equal chance of getting selected.

Sampling Unit available: People who buy chocolates in retail outlets, superstores etc.

Sample size: 60 respondents (Age ranging between 8 to 30)

Method: Direct interview through Questionnaire.

Data analysis method: Graphical method.

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Findings:

1. During the survey it was found that still there are 10% of the people who have not tasted

Amul Chocolates.

2. Lack of awareness among consumers. Many people do not know about Amul Chocolates

specially teenagers and children.

3. As we have found that the main product of Amul is Milk and the company firstly wants

to capture maximum market share in milk market which is approximately 66%, after it

Amul is concentrating upon butter and cheese which has a market share of approximately

88%, so it is not concentrating upon chocolates.

4. When responses were taken it was found that many of the people cannot recall Amul

chocolate advertisements. It shows lack of proper advertising strategies.

5. Amul has not taken any measures like celebrity endorsements etc for its advertising

campaigns.

6. There is lack of sales promotional activities for different age groups like tattoos, quiz

contests, extra weight, toys, etc.

7. Cadbury is the major competitor and strategically a better performer than Amul.

8. The Amul Brand name has a good image in consumer’s mind and they consider it as a

pure and good product.

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Recommendations:

1. 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

consider on the supply of product in the peak season.

2. 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.

3. Since the penetration of Amul products in eateries is the worst among all the channels,

the company ought to adopt strategy like supplying free menu cards, which has the

company logo printed on them, this will not only increase the penetration of the product

in the outlets, but also improve the market sales.

4. The company should also ask its distributors to supply its products on a bill to bill based

credit system with at least all the reliable retailers, so that the product penetration in the

outlets increases in terms of percentage of units stocked at a time in the outlet, this would

also look appealing to the customer who would instead like to pick up the product at first

glance.

5. Credit is the 2nd biggest factor that influences the penetration of the product into the

retail outlet. So company should give the credit to all outlets.

6. Given the fact that margin offered to the retailer is not similar in the case of the

competitor‟s product. For this fact, the company should give good margin to the retailers

than the competitors.

7. Due to the lack of awareness of milk product in cochin, the company should be

advertised of the product by print and electronic media specially in local channel and

newspapers.

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8. Discount is also a important factor of stocking decision for retailers. So, company should

give discount to all retailers for influencing the stocking.

9. Company should also give the replacement offer to those outlet which is running with

small business.

10. Only fresh product should be supply in the outlet.

11. Amul should take proper steps to improve service because although being in the top slot

in butter and cheese supplies it does not get the sales in chocolates.

12. The company should use brand ambassadors to attract all age groups.

13. Amul should give local advertisements apart from the advertisements given at the

national level. Local advertisements must mention the exclusive Amul shops of the city.

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Conclusion:

Amul is a well known brand and a market leader in dairy products. It has maximum market share

in milk, butter and cheese which are its core products. Amul is a cooperative organisation but

chocolate making is a profitable industry. So Amul must concentrate on profit making through

the chocolate industry. With the help of research the company can find out its weak points in

chocolate product and can increase its market share by rectifying its mistakes.

The Survey resulted into the following conclusions:

Amul must come up with new promotional activities so that people become aware of

Amul chocolates.

Quality is the dominating factor which influences consumers to buy Amul products but

prompt availability of other chocolate brands and aggressive promotional activities

attracts customers towards them and also increases their sales.

People are mostly satisfied with the overall quality of Amul chocolates, but for the

existence in the local market it must use aggressive selling techniques.

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