Amul Project

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A Project Report On “Study on Market Segmentation, Promotion & Placement of Amul Products in Pune Market for Amul India.” Submitted By Mr.ABHISHEK S BANJARE. (MBA BATCH 2009-10) In Partial Fulfillment for the Award of Degree of Masters in Marketing Management For Pune University Institue of Business Management & Research,Pune Year 2007-08

Transcript of Amul Project

Page 1: Amul Project

AProject Report

On

“Study on Market Segmentation, Promotion &Placement of Amul Products

in Pune Market for Amul India.”

Submitted ByMr.ABHISHEK S BANJARE.

(MBA BATCH 2009-10)In Partial Fulfillment for the Award of Degree of Masters in Marketing Management

ForPune University

Institue of Business Management & Research,PuneYear 2007-08

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ACKNOWELDGEMENT

It has been great pleasure for me to work as a summer trainee in an esteemed organization like Amul India , which made me aware of the culture followed in the organization and gave me a great exposure.

The project work has been made possible through direct and indirect co-operation of various persons for whom I wish to express my appreciation and gratitude.

I shall remain grateful to Ms………. for her incisive support and objective guidance during the project. I am also grateful for the kind co-operation and guidance provide by our Director Prof.Mr……. and Project Guide Prof……, without which the project could not be completed successfully.

Once again I express my gratitude to Amul India, Pune for their kind co-operation.

Last but not the least I thank my parents and friends who gave me moral support throughout.

Thanks to you all.

(Vinit A. Gade)

MBA-II

(IBMR,Pune )

TABLE OF CONTENTS

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SR. NO. PARTICULARS PAGE NO

1. EXECUTIVE SUMMARY1-3

2. INTRODUCTION

3. RESEARCH DESIGN

4. DATA ANALYSIS

5. GRAPHICAL REPRESENTATION OF

DATA

6. CONCLUSIONS

7. SUGGESTIONS

8. LIMITATIONS

ANNEXURES

BIBLIOGRAPHY

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CHAPTER I

EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

This project was carried out for the study of placement of Amiul Chocolates and Shrikhand at Pune. This project has given us excellent chance to work intimately with the organization and it is a wonderful and overwhelming experience working with Amul, Pune.

The project is titled “Study on market Segmentation, PromotionPlacement of Amul Chocolate and Shrikhand in Pune Market and Wholesalers and Retailers feedback for Amul India.” The basic objective was to have in-depth study of the main competitors of Amul India and their distribution network across Pune region.

The research methodology adopted for the accomplishment of the objectives was interviewing the wholesalers and retailers, using a detailed questionnnare as an instrument. The data was collected by primary and secondary sources. Primary source of data was collectedbthrough well structured questionnaire which was supported by personal interview that included both open ended and close ended questions. Other information was collected through websites & company files which acted as a secondary source of data. The survey was conducted in Pune region by choosing wholesalers & retailers as a sampling unitwith a sample size of 100 retailes & wholesalers.

The survey regarding market share shows that Amul India, leads the market in Shrikand with competitors like Chitale, Gagangiri and Warna. But, for the chocolate market it lags behind leaders like Cadbury, Nestle etc. It shows that the retail margin is quite high for these products but the distribution network has to built in more efficiently.

The company must undertake various promotional strategies to boost up their distribution network and at the same time must advertise their products through various channels like newspapers, hoardings, manuals, brochures etc;.

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This is the brief summary of the project presented.

CHAPTER II

INTRODUCTION

Company Profile Marketing Strategy Channel of Distribution

Product Profile

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INTRODUCTION

This project includes the study of of Amul Chocolate and Shrikhand and feedback from wholesaler, retailer and customer.This project includes personal interview of wholesaler and retailers who sale chocolate and Shrikhand in Pune District. Retailer’s and customer feedback is an important aspect in this project.

Personal interview was based on questionnaire. All the question in the questionnaire are related to Project objective. I have achieved the project objective through questionnaire and their interpretation and analysis. Questionnaire includes both open ended and close ended question.

Project is related to marketing research methodology is included in project. Tabels and graph shown data interpretation and analysis.

REASONS FOR SELECTING THE TOPIC:The objective is this project is to evaluate the the pattern of “Placement of Amul Chocolate and Shrikhand”. This topic has been selected by me to know the whole process involved in the distribution and placement in that particular area at Pune. This also involved meeting with different retail outlets individuals. t\This has given me exposure in the real market and to analysed the real market situation. Another reason is to find out the opportunities that exist in this segement. To accomplish this objectives as whole it involves meeting with different wholesalers, retailers and customers and collecting feedback from them.

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COMPANY PROFILEAMUL 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. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 37.74 billion in 2005-06). Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices & a vast co-operative network..

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.

Members: 13 district cooperative milk producers' Union

No. of Producer Members: 2.6 million

No. of Village Societies: 12,792

Total Milk handling capacity: 10.16 million litres per day

Milk collection (Total - 2006-07):

2.38 billion litres

Milk collection (Daily 6.5 million litres

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Average 2006-07):

Milk Drying Capacity: 594 Mts. per day

Cattlefeed manufacturing Capacity:

2640 Mts per day

List of Products Marketed:

Breadspreads:

Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter

Cheese Range:

Sales Turnover Rs (million) US $ (in million)1994-95 11140 3551995-96 13790 4001996-97 15540 4501997-98 18840 4551998-99 22192 4931999-00 22185 4932000-01 22588 5002001-02 23365 5002002-03 27457 5752003-04 28941 6162004-05 29225 6722005-06 37736 8502006-07 42778 1050

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Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix Avsar Ladoos

UHT Milk Range:

Amul Shakti 3% fat Milk Amul Taaza 1.5% fat Milk Amul Gold 4.5% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy Mix

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

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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 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat Amul Cow Milk

Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert) Amul Masti Dahi (fresh curd) Amul Masti Spiced Butter Milk Amul Lassee

Amul Icecreams:

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi) Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit

Bonanza, Roasted Almond) Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh

Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)

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Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta)

Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)

Chocolate & Confectionery:

Amul Milk Chocolate Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)

Amul Kool Cafe

Health Beverage:

Amul Shakti White Milk Food

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MARKETING STRATEGYIn corporate planning, strategy is the grand design or a dynamic action

oriented formal general plan to accomplish components mission, basic objectives, as well as functional objectives. It involves the choice of a general type of plan. the details of the program are developed in the action, plans at large stage. strategies provide preferred means to accomplkish the desired ends.

Marketing StrategyMarketing Strategy is the total and unbeatable instrumental or a plan

shaped and desired specifically for attaining the marketing objectives of a firm. a marketing mission and objectives tell us where we want to go and marketing strategy provides the grand design for reaching out there.

MarketMarket is ana atmosphere, a region , or a supra-system in which the

forces of demand and supply operate directly and indirectly to bring about the title of goods and services. Market is an arrangement tat provides oppurtionities of goods and exchange.

According to Prof.H.E.Michelle “Marketing is getting of buyers and sellers in persons, by mails, by telephones, telegraphs or other means of communications.”

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MarketingIt is the phase of the business activity throughout which humans wants are satisfied by exchange of goods and services. Prof.Harry L.Hanson define “ Marketing” as process of discovering an translating consumer needs and wants into products , services specifications creating demands for these products and services and then, in term, expanding these demand.Philip Kotler says “marketing id=s the analysis, planning, implementation and control of programs designed to bring desired exchanges with target audience for the purpose of personal and mutual gain. It relies heavily on the adaption and coordination of product, price, place and promotion for achieving response.”

Strategic PlanningAccording to Philip Kotler “Strategic Planning” stands for the process of developing and maintaining, a strategic fit between the organization goals and capabilities market oppurtinuties.1.Positioning the product into the minds of customers.CompetitorsA good position is :1.What makes you unique? “Strategic Plannning” is the process of examining a company’s market opportunities, allocating resources to capitalize on those opportunities and predicting market and financial performance that are likely to occur.

2.This consideration abenefit by your target. both of these conditions are necessary for a good positioning. Does your target consider this is a good thing?

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Positioning is important because you are competing with all the noises out there for your potential fans attention. If you stand out with a uniquebenefit, you have a chance getting their attention. It is important to understand your product from customer point.

CHANNELS OF DISTRIBUTION

In the field of marketing, channel of distribution indicates routes or pathways through which goods and services flow, or move from product from producer to the consumer. We can define formally the distreibution channel as a set of independent activities involved in the movement or the flow of goods and services from primary producer to the ultimate consumer.

Channel FunctionA marketing channel performs the work of moving goods from producer to , place and position gaps that separate goods and services from those the consumer. It overcomes the time, place and position gaps that separate goods and services from those who wants them. member of marketing channel perform a key functions-

They gather information about potential and current customer, competitors and other factors and forces in the marketing environment.

They develop and disseminate percussive communication to stimulate purchasing.

They place order with manufacturer. they assume risks connected with carrying out channel work.

Channel Levels A zero level channel (also called as a direct marketing channel)

consists of manufacturers’s selling directly to the final customer.

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A one level channel contains one selling intermediary, such as retailer. A two level channel contains two level intermediaries. In consumer

markets, these are typically wholesaler and a retailer. A third level channel contains three intermediaries.

Consumer Marketing Channels

0 Level 1st Level 2nd Level 3rd Level

Manufacturer Manufacturer Manufacturer Manufacturer

Wholesaler

JobberWholesaler

Retailer RetailerRetailer

Consumer Consumer ConsumerConsumer

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Marketing Channel of Amul India’s Shrikhand & Ice-Cream Market :

Amul India comes under two level marketing channels, contains two intermediares- 2nd Level

Manufacturer

Distributor

Retailer

End Consumer

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PRODUCT PROFILEAmul India has a variety of milk products, starting from milk to sweet

chilled Ice-creams and chocolates.

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, of the triumph of indigenous technology,of the marketing savvy of a farmers' organization and of a proven model for dairy development. Their products includes-

Pasteurized Butter Processed Cheese Pure Ghee Shrikhand Nutramul Amul's Mithaee Gulab Jamuns

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 9 years.

The major export products are:

Consumer Packs

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Amul Pure Ghee Amul Butter Amul Shrikhand Amul Mithaee Gulabjamun Nutramul Brown Beverage Amulspray Infant Milk Food Amul Cheese Amul Malai Paneer Amul UHT Milk (Long Life) Amul Fresh Cream

Shrikhand:

Shrikand is a traditional sweet. It is the only pasteurized Shrikhand available with smooth texture and extended shelf life. Made from most modern dairy equipment.

Amul Prolife Probiotic Wellness Ice Cream-India’s First Probiotic Ice Cream

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AMUL is all set to storm the Ice cream market with a new range of probiotic ice cream aimed at the total health conscious.

Proboitic means “ for life”. Probitics are defined as “live beneficial culture administered in adequate amounts which confer a beneficial health effect on the host”. Amul probiotic wellness ice cream have been made to confer the health benefit of these probiotics.

Amul Probiotic wellness ice cream :

Improves immunity Improves digestion Prevent gut infection

Manages traveler’s diarrhea

Available in so many flavours packed in international packings:

Amul Probiotic wellness ice cream is available in : 125ml/500ml+500ml free and 1.25 litrs in 5 flavours : Vanilla with chocolate sauce/Starwberry/chocolate/shahi Anjir and fresh litchi price ranging from Rs.15(125ml) to 110(1.25litrs).

Amul Prolife Sugar Free Probiotic Wellness frozen dessert India’s First low fat low calorie Delight

Several generations of Indian consumers have grown up eating ice creams, which traditionally is a combination of full cream milk, lot of sugar and nuts.. Now with the changing trends, life style and climatic conditions people are becoming more and more health conscious. Keeping in mind the need of these calorie conscious people, Amul is introducing first time in India-Amul prolife sugar free probiotic wellness frozen dessert.

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Amul Prolife sugar free Probiotic wellness dessert : LOW FAT LOW CALORIE Amul Prolife sugar free Probiotic wellness dessert has been made by reduced fat content and sugar replaced with combination of low calorie sweetner(Fructo-oligo saccharide and sucralose).These sweetners has very low glycemic index because they sparingly gets digested by digestive enzymes in stomach and small intestine. Amul Prolife sugar free wellness frozen desserts has also been added with probiotic cultures which imparts a gastrointestinal well being and health benefiting factor.

Low Fat : Amul Prolife Sugar Free delight is containing 50% less fat than the normal ice cream.

Benefits:

Has low fat and calorie content: hence reduces obesity Contains no added sugar Improves immunity and digestion Prevent gut infection and manages traveler’s diarrhea

Available in so many flavours packed in international packings: Amul Prolife Sugar free wellness delight is available in : 125ml/500ml+500ml free and 1.25 litrs in 5 flavours : Vanilla with chocolate sauce/Starwberry/chocolate/shahi Anjir and fresh litchi price ranging from Rs.18(125ml) to 120(1.25litrs).

Amul Chocos

Amul has launched pure milk chocolate bars, the Badam bar chocolates which are completely made of Badam and the Fruit & Nut chocolate bars.

Fruit & Nut Chocolates

Best Impression

“First Impression is the Best Impression” – this Fruit & Nut Bar is packaged in a pleasant dark ink blue color (a trademark color for all bar chocolates?) on the upper half and a nice-looking yellow color at the bottom shining wrapper with colorful prints of nuts and dry fruits which makes its appearance very special and catchy !

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Nutty

As the name suggests, the chocolate is rich in dry fruits and crusty nuts which makes eating this crispy and crunchy choco bar a very delightful experience.

Creamy

Rich in chocolate cream, jus’ running your already mouth-watering tongue on this yummy chocolate flavor itself is exceptionally enjoyable ! The chocolate bar is entirely made of chocolate flavor without wafers, but the nuts and fruits make it very crunchy and youthful !

Ingredients

This Completely Choco Bar is made up of sugar, cocoa butter, milk solids, chocolate mass, cocoa mass and permitted preservatives and has been carefully manufactured meeting all the requirements under the PFA for Boiled sugar confectionary.

Amul India (Gujarat Co-operative Milk Marketing Federation Ltd.)

We are pleased to introduce our organization Gujarat Co-operative Milk Marketing Federation Ltd(GCMMF) as India's largest food products marketing organisation with annual sales turnover of Rs.2881 crores(US $ 650 million). We manufacture and market a wide range of dairy products in India and abroad under the brand names of Amul and Sagar. GCMMF has 19 affiliated dairy plants with a total milk handling capacity of 6.7 million litres per day. The total milk drying capacity is 510 MT per day. GCMMF is also the largest exporter of dairy products from India.

We manufacture and market a wide range of dairy products in India and abroad under the brand names of Amul and Sagar. The product categories are Infant Milk Food, Skimmed Milk Powder, Full Cream Milk Powder,

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Dairy Whitener, Table Butter, Cheddar Cheese, Mozzarella Cheese, Emmental Cheese, Cheese Spreads, Gouda cheese, Ghee, Sweetened Condensed Milk, Chocolates, Malted Milk Food, Blended Breadspreads, Fresh milk, UHT(Long life) Milk, Ice-ream and ethnic Indian sweets. Each of our products is a market leader in India.

GCMMF is the largest exporter of dairy products from India. We export our products in consumer packs and bulk to USA, Singapore, UAE, Australia, Bahrain, Qatar, Oman, Kuwait, Bangladesh, Madagascar, Yemen, Sri Lanka etc. On a regular basis. We have won 9 awards consecutively from APEDA, Govt of India.

Basic Information

Company Name: Amul India (Gujarat Co-operative Milk Marketing Federation Ltd.)

Business Type: Manufacturer  

Product/Service: Infant Milk Food,Skimmed Milk Powder,Butter,Cheese (Cheddar,Mozzarella,Emmental,Gouda),Cheese spreads,Ghee,Condensed Milk,Chocolates,malted milk

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food,Breadspreads,fresh milk,UHT milk,Ice-cream.  

Company Address: Amul Dairy Road, Anand, Gujarat, India  

No. of Total Employees: 501 - 1000 People

Ownership & Capital

Year Established: 1973  

Legal Representative/Business Owner:

B M Vyas  

Trade & Market

Main Markets: North America, South America, Western Europe, Eastern Europe, Eastern Asia, Southeast Asia, Mid East, Africa, Oceania, China  

Total Annual Sales Volume: Above US$100 Million  

Factory Information

No. of R&D Staff: Above 100 People  

Contract Manufacturing: OEM Service Offered  

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Amul "Utterly Delicious" Parlours

Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country. We have created Amul Parlours at some prominent locations in the country, which are run by the company or its wholesale dealers:

1. Delhi Metro Rail Corporation 2. The Somnath Temple

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3. National Institute of Design 4. Infosys Technologies in Bangalore, Mysore & Pune 5. Wipro campus in Bangalore 6. Ahmedabad Municipal Corporation 7. Surat Municipal Corporation 8. Delhi Police 9. Gujarat State Raod Transport Corporation

"Amul Utterly Delicious" parlours are an excellent business opportunity for investors, shopkeepers and organizations. In order to come closer to the customer, we have decided to create a model for retail outlets, which would be known as "Amul Preferred Outlets"(APO).

We welcome you to meet the Top Retailers for Amul. Currently online are Chennai and Calcutta. We will keep adding the different locations across the country as the information comes in.

Chennai Kolkata Nasik Jalgaon Aurangabad Delhi Raipur Jodhpur Udaipur Pune Siliguri / Durg Kota

THE TOP 10 COMPANIES IN FMCG SECTOR

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Product ProfileAmul is the largest co-operative movement in India with 2.2 million milk producers organised in 10,552 co-operative societies in 2003-2004. The country's largest food company, Amul, is the market leader in butter, whole milk, cheese, ice cream, dairy whitener, condensed milk, saturated fats and long life milk. Amul follows a unique business model, which aims at providing 'value for money' products to its consumers, while protecting the interests of the milk-producing farmers who are its suppliers as well as its owners. Despite being a farmers' co-operative, Amul has given multinationals a run for their money. In butter, cheese and saturated fats, Amul has remained the undisputed market leader since its inception in 1955, by offering quality products at competitive prices. In other categories, Amul has nullified its late mover disadvantage through aggressive pricing, better quality, innovative promotion, and superior distribution.

Amul's Business Model

Amul followed a unique business model, which aimed at providing 'value

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for money' products to its consumers, while protecting the interests of the milk-producing farmers who were its suppliers as well as its owners. As milk was a perishable item, the farmer suffered a loss if it was not sold before the end of the day.

Amul bought all the milk offered by the milk producer, made timely payment, and shared with the producers the profit generated from marketing the milk and milk products under the Amul brand name. This arrangement offered an incentive to the milk producers to increase production and use modern dairy techniques to enhance productivity, while lowering costs. GCMMF decided to sell all its products under the Amul brand name. This enabled GCMMF to spend just 1% of its turnover on advertising campaign as against 6-7% that would be spent on promoting multiple brands. A few products like ghee, milk and baby foods were also sold under the 'Sagar' brand name for the local market and were not advertised nationally. Amul was the market leader in butter, ghee, cheese, and dairy whitener right from the start. Amul remained focused on three basic business principles: be customer driven; adapt quickly to the changing environment; anticipate change and act today to meet tomorrow's challenges. While entering new product categories, Amul's game plan was to attack existing players through aggressive pricing, better quality, and superior distribution.

Amul retained a competitive edge in the market by offering quality products at competitive prices. Right from the early years, Amul focused on building a strong distribution network. Amul also followed a strategy of forging alliances with other co-operatives across the country to help it in the critical functions of procurement and manufacturing. Apart from keeping capital costs low, these alliances proved critical in the case of low-shelf life products like milk and curd. The ability to outsource products from other co-operatives helped GCMMF keep its wage cost low. Its wage costs in 2000-01 were 0.8% of sales, as compared to 5% in case of Hindustan Lever Limited (HLL). .......

PRODUCT LIST

Bread Spreads

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Amul Kool Flavoured Tetra Pack

Amul Masti Spiced ButtermilkAmul introduces the Best Thirst Quenching Drink

Powder MilkAmul Spray Infant Milk FoodStill, Mother's Milk is Best for your baby

Amul Instant Full Cream Milk PowderA dairy in your home

Sagar Skimmed Milk PowderWhich is especially useful for diet preparations or for use by people on low calorie and high protein diet.

Sagar Tea Coffee Whitener

Amulya Dairy WhitenerThe Richest, Purest Dairy Whitener

   

Fresh MilkAmul Fresh MilkThis is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience.

Amul Gold Milk

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Amul / Sagar Pure GheeMade from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by diaries with decades of experience.

Cooking Butter

Amul Malai PaneerReady to cook paneer to make your favourite recipes!

Utterly Delicious Pizza

Mithai MateSweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste.

Masti Dahi

DessertsAmul Ice CreamsPremium Ice Cream made in various varieties and flavours with dry fruits and nuts.

Amul ShrikhandA delicious treat, anytime.

Amul Mithaee Gulab JamunsPure Khoya Gulab Jamums...best served piping hot.

Gulab Jamun Mix

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Amul ChocolatesThe perfect gift for someone you love.

Amul Lassee

Amul Basundi    

Health DrinkNutramulMalted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.

Amul Shakti Health Food Drink Available in Kesar-Almond and Chocolate flavours.

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Scope of the workThe project will extend its periphery in proving information about present practices capabilities, vulnerabities, and future directions of Amul’s. It also helps in understanding the market of Pune city.

Understanding domestic marketing and product strategies along with the study of capabilities of competitors and prices quoted by them.Quality , service, and pricing factor of products are also an important part of the study.

Objective of the Project To study the market share ofAmul in Pune region. To study the competitor market offerings. To make a compartive study of Amul products with the other’s. To study the service provided to the retailers of different brands. To study the penetration of Amul products viz. Shrikhand and

chocolate in Pune region.

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Research MethodologyResearch, particularly in social science contains endless word spinning and too many quotations; end result though may be far from expectations. In context of planning and development it is to be noted that it significant lies in quality than quantity.

Therefore, eventually proper attentation has to be paid to designing and adhering to appropriate methodology throughout so as to improve the quality of the research.

Research type: This type of result is Descriptive research .Descriptive Research includes surveys and fact finding enquiries of different kinds. The major purpose of Descriptive Research is description of the state of affairs, as it exists at present.

Research Design:The survey was conducted for the Amul products where a

questionnaire was filled from the retailers, wholesaler and consumers. The population and the samples were evenly divided in such a manner so as to extract the best possible results within the given limitation.

Sampling Design:The survey was conducted within a selected part of Pune region by

dividing the sample evenly. The whole of Pune region was divided based on the number of wholesalers and retailers.

Sampling Unit: Retail outlets.

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Sample Size: 950 retail outlets.

Areas Covered: NDA, Uttamnagar, Manikbaug, Suncity, Wadgoan, Pimpri Nighidi, Vallabhnagar, Ajemera, Pradhikiran, Paudroad, Warje 1 & 2, Karvenagar, Kothrud.

Method of Data collection:There are several method of data collection available but,one of the

most common method is-questioannare method,same was found appropriate for this research , for the reason thatQuestionnaire are one of the most commonly used methods.

It is cost-effective. It is time-effective.

The questionnaire was designed by us and also with the help of panel members of Amul.

Determination of sources of Data collection:A list of retailers were generated area wise and later on contacted

individually.

Sampling procedures: The procedure employed for conducting the survey is on random

basis. The database was referred for carrying out the survey. First the areas

to be covered were decided and then the respondents were contacted directly.

As the respondents filled the sheets, his/her view relating to his expectation was also noted. This was done with the aim to gather the information, which would provide related and relevant insights as to what did the customer expect.

Tools for the Data Collection:

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For the collection of primary data one to one interview method with the help of well structured questionnaire with both open and closed ended questions were used.The survey of all retailers was conducted and their responses were taken down carefully with the help questionnaire.

Tools for Data Analysis:For the purpose of analyzing the data statistical tools such as weighted

average method and percentage analysis were used.For better understanding the raw data tools like bar graphs and pie charts were used.

Limitations: The sample size: The biggest limitation of the research is the wide

area of Pune region. Only 30% of the entire area was considered for the research.

The survey was done in Pune city; hence if generalizations are to be maid for other cities, some deviations might occur.

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RESEARCH DESIGN

Identify the Problem“To study the market segmentation, promotion & placement of amul

chocolate & shrikhand in pune market”

Designing of Research ProcedureProcedure employed for survey is on random basis.

Areas to be covered were desided and the respondents were contacted directly.

Expectations and views were noted as the respondents fillend in their response sheets.

Defining Methods of Data Collection

Primary Data Secondary Data

Questionnaire Prepared Collection of Data from websites, manuals and company records

Surveyed 950 retail outlets in Pune city

Analyzing and tabulating the Data1. For analyzing of Data, statistical tools such as weighted average

method and percentage analysis were used2. Also, Data was tabulated with the help of Bar charts and Pie diagrams.

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A

A

Interpretation of Data

Findings

1.Amul India has a market share of around 5% in Chocolate industry for which the competitors includes leaders like Cadburys & Nestle.2.For Shrikhand market, Amul has a market share of 30% which includes tough competition with chitle, warna & Gagangiri.3.The distribution Network of Amul India has to be more efficient as compared top others.4.The Trade margin for Amul products is quite high.

Suggestions

1.Should increase the awareness of Amul products through advertising in various media.2.The Retail margin for thede products should be increased so that that more number of retailers will have Amul products.

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GRAPHICAL REPRESENTATION OF DATA

The data is obtained by administering the questionnaire to the selected samples and the results are calculated on the basis of the data thus collected.

The da`ta is supported by graphs and charts for easy understanding.

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PIE DIAGRAM SHOWING THE MARKET SHARE OF CHOCOLATES IN PUNE REGION

Fig.1

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Competitors Market Share(%)Cadbury 48Nestle 18Amul 16Others 18

Explanation:From the fig.1, we can see that, Amul faces a tough competiton eith the leaders from chocolate industry like Cadbury & Nestle. Cadbury leads the market of Chocolates with a market share of 48% and Amul with a share of mere 16%.

PIE DIAGRAM SHOWING THE MARKET SHARE OF SHRIKHAND IN PUNE REGION

Fig.2

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Competitors Market Share(%)Amul 30

Chitale 40Warna 20

Gagangiri 10

Explanation:From the fig.2, it shows the market share of shrikhnad in Pune region. The fig. clearly reflects that the share of Amul Shrikhand holds a good position after Chitale. The market share is about 30% of Amul, 40% of Chitale , 20% of Warna & 10% of Gagangiri.

BAR CHART SHOWING THE DEALER MARGIN FOR CHOCOLATES IN PUNE REGION

Fig.3

Competitors Dealers’s MarginAmul 4

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Nestle 6Cadbury 9Others 10

EXPLANATION:From the fig.3, it reflects that the dealer margin is quite low for Amul

Chocolates as compared to Nestle & Cadbury with a dealer margin of 6 and 9 points respectively.

BAR CHART SHOWING THE DEALER MARGIN FOR SHRIKHAND IN PUNE REGION

Fig.4

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EXPLANATION:From the Fig.4, it shows the dealer margin for Shrikhand market in Pune region.

BAR CHART SHOWING THE DEALER MARGIN FOR CHOCOLATES IN PUNE REGION

Fig.5

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EXPLANATION:From the Fig.5, it shows the dealer margin for Chocolates market in Pune region.

OBSERVATIONS AND FINDINGS

On the analysis of data following were the findings

In the survey of each outlet I found that availability of Amul Shrikhand is more than other brand.

The service provided by Amul to retailer is very good comparing with other brand.

The quality of Amul Chocolate and Shrikhand is very good comparing with other brands.

Amul Shrikhand sales is more than any other brand. At most of the outlets, employees are not satisfied even dealers also.

According to them, Amul only takes action for customer satisfaction, but for the outlets employee’s satisfaction, Amul tries to avoid it.

In retail outlets customers focus on quality of products and not on service given by them.

Customer trust on brand of product and name of company while purchasing the product.

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Retailers feedback

The survey we carried out among 950 retailers for Amul Chocolates and Shrikhand was a great success in finding some important feedback. The survey we carried out was a face to face interview with retailers and customer.

Pricing Many retailers want more margins on Amul’s Chocolate and

Shrikhand. Some said that the price should be in round figures. Some said the price should be less.

Product Quality Majority of the people said that the quality of Amul Chocolate and

Shrikhand is very good. They don’t have any problem regarding this.

Many said that Amul should maintain its quality in coming years.

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CONCLUSIONS Amul India sells quality products like Amul milk, Amul shrikhand,

Amul Chocolates, Amul Ice-cream and Amul butter which are a brand in itself. So, its widely favoured with the consumers.

Consumers get good quality, good product, good brand & good service at their door-step at an affordable price.

From the survey, it shows that the Shrikand market is favourable for Amul rather than Chocolate market as it facess stiff competition with the leaders in chocolate industry like Cadbury & Nestle.

The dealer margin is quite low as compared to other competitors. Also, the distribution network of Amul India is quite efficient.

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RecommendationsIt is said that the ‘line to perfection never exists’, in a way it suggests

that continuos improvement and development is essential to atleast near to the ‘Perfection’.

To help a plant grow it must be suitably watered, sunlight snd soil, which best suit its kind, similarly the organization too, to see that its efforts get results, must provide with proper attention for the development of the company.

After analyzing the data collected during the survey, following improvements can be made in future.

1. Replacement facility should be made available for all the products.

2. Promotional activities like, Wall paintings, Flex boards should make available for more product awareness.

3. Efficient distribution must be followed.4. Promotinal activities should be undertaken.

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5. To create awarness for the products, different modes of publicities should be used such as Neon sign, Hoardings, Danglers.

6. Dealers should offer some attractiuve commissions for generating regular supply of Amul Chocolates and Shrikhand.

Limitations1. The sample size was too small when we take the universe into the

consideration, which is very big. 2. The survey was done in a part of Pune city hence if generalizations

are to be made for whole city, sime deviations might occur.3. Though the data is collested in a best possible way but still in nom

waythe above figures depict the performance of the company.4. The sample selected wasdone on random basis and taken from few

selected areas that are supposed to represent the whole population. Hence some deaviations mught be there when the same is applied to the whole universe.

5. Retailers did not provide the real data for the study.6. Retailers are scattered all over Pune city and its very difficult to locate

and contact each of them.7. The big retailer are not ready to fill up the questionnaire.

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8. Feedback may not be very reliable owing to difference in opinion.

QUESTIONNAIRE FOR WHOLESALERS

WHOLESALER(WD) 1. 2. 3. 4.WD NameLocation

Which Chocolate sellMore?1. Milk Chocolate2.Fruit n Nut3.Fundoo4.Bindass5.Almond bar6.Chocozoo

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7.Sugar free8.Rejoice

At what time is theDemand ofChocolates more?1.Festival2.Holiday3.School open

What kind of tradeSupport would increaseThe sale?1.Chocolate2.Shrikhand

What else can weDo to increase the sales?

QUESTIONNAIRE FOR CONSUMERS

CONSUMER 1. 2. 3. 4.NameLocation

Which is your chocolate?Have you eaten AmulChocolate?If yes did you like theTaste?Which flavour do youLike the most? 1.Milk Chocolate

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2.Fruit n Nut 3.Fundoo 4.Bindass 5.Almond 6.Chocozoo 7.Sugar free 8.Rejoice

Do you gift chocolates?When would you likeTo eat chocolates?Is chocolate easilyAvailable in yourLocality?Would you like to buyAmul chocolates?

Which Shrikhand do youEat?Have you eaten Amul Shrikhand?Which flavour do youLike the most?1.Kesar 2.Badam 3.Pista 3.Elaichi 4.MangoIs Shrikhand availableIn your locality?

QUESTIONNAIRE FOR RETAILERS

RETAILERS 1. 2. 3. 4.Retailer NameLocation

Do you keep Amul Chocolates?If yes the, which chocolate sell more?

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1. Milk Chocolate 2.Fruit n Nut 3.Fundoo 4.Bindass 5.Almond bar6. Chocozoo 7.Sugar free 8.Rejoice

At what time is demand of chocolates more?1.Festival 2.Holiday 3.School open

Which age group people buy the chocolates more?1. 4-10 yrs 2. 11-20 yrs 3. 20-35yrs 4. Above 35yrs

Do you keep Amul Shrikhand?What are the retailer margin for?1. ChocolateA)Cadbury B)Nestle C)Others2. ShrikhandA)Warna B)Chitale C)Gagangiri D)OthersTrade schemes onA) Chocolates B) Shrikhand

What kind of trade would Increase the sell?1. Chocolates 2.Shrikhand

BIBLIOGRAPHYBooks referred :1.Marketing management --------- Philip Kotler,

Millennium Edition(1998) Prentice Hall Publication, INDF,

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New Delhi – 110001

2.Reserch Methodology ----------- C. R Kothari, Second Edition,

Twenty First Re-print, 1998 Wishwa Prakashan, New Delhi.

3.Marketing research -------------- David Lucky and Ronald Rubin Prentice Hall of India Private Ltd; 1997(Ninth Edition)

4. Information supplied by the company.(Company manuals & files)

5. Websites -------------------------- www.amul.com www.google.com