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SubmittedIn partial fulfillment

Of the requirement for degree ofMaster in business

administrative(2010-2012)

OfDoon Business School

Dehradun

Project report OnMARKET RESEARCH WITH

REFERENCE TO“ Amul Chocolate”

Submitted by:-

Project guided by:- Sunil Kumar Dubey

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Lt.Col.(Dr.) Anirudh tomar MBA 2nd semester Director Doon Business School

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DECLEARATION

I sunil kumar dubey, student of MBA 2nd sem. ROLL NO.10360500086,hereby declear that I done work my research report on the topic

titled PROJECT ON MARKET RESEARCH WITH REFERENCE TO AMUL CHOCOLATE”

SUNIL KUMAR DUBEY

MBA 2ND SEM.

(2010-2012)

ROLL NO.-13060500086

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ACKNOWLEDGEMENT

My genial thanks to the facilities extended by the “DOON BUSINESS SCHOOL” which Encourage me to shape our Endeavour.

I solicit the active assistance of our project incharge Lt.Col.(Dr.) Anirudh tomar ( Director Doon Business School ),who gave me management searchlight at every stage, make possible this challenging Task and has been kind enough to extend his able, pious and virtual supervision throughout the study. It was only his guidance, ability supervision and extraordinary consultancy pain taken in each and every step in completing the present project. I would also like to acknowledge greatly the helping hand of our faculty members only Lt.Col.(Dr.) Anirudh tomar ( Director Doon Business School ).

SUNIL KUMAR DUBEY

MBA 2ND SEM.

(2010-2012) ROLL NO.-

13060500086

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CERTIFICATE OF ORGINALITY

This is to certify that Sunil kumar Dubey bonafide student of Master in Business Administration Semester 2nd of this institute has completed the semester project titled “Market Research on amul Chocolate”

The matter embodied in this project is a genuine work done by the student and has not been submitted whether to this university or to any university/institute for the fulfillment of requirement of any course of study.

Signature of the student Signature of the guide…………………………………….. …………………………………………………..Name and address Name and designation………………………………………..

……………………………………………………

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1 . History and introduction …………………………072. Board of Directors………………………………….093. Reason for Success………………………………….104 . Amul Philosophy…………………………………...115. Product Profile……………………………………...126. Product Line………………………………………...147. The New Amul Chocolate………………………….15- Composition8. Market Segmentation………………………………179. Market Targeting…………………………………..2010. Marketing Mix……………………………………...2211. Pricing and Promotion Strategy………………….2412. Advertising and Banners………………………….2913. Product, Positioning and Distribution Strategy…3114. Market Research………………………………….3515. Research Methodology…………………………...3716. Limitation…………………………………………3917. Recommendation…………………………………4018. Achievement of Amul movement………………..4219. Journey of Amul………………………………….4620. SWOT analysis……………………………………4721. Research Objective……………………………….4922. Amul Brand Building…………………………….52

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23. Company Financials……………………………...5324. My Finding………………………………………..5525. Conclusion………………………………………...56 26. Bibliography……………………………………...5827. Questionnaires…………………………………….59

Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand. Some cite the origin as an acronym to (Anand Milk Union Limited).

The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity. It 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 2.41 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 one of the largest milk producers in the world. It is also the world's biggest vegetarian cheese brand.

Amul's product range includes milk powders, milk, butter, ghee, cheese, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 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 with an annual turnover of US $868 million (2005-06). Currently Amul has 2.41 million producer members with milk collection average of 5.08 million litres/day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA,

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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 [5]. Other potential markets being considered include Sri Lanka.

The brand name Amul means “AMULYA”. This word derived from the Sanskrit word “AMULYA” which means “priceless”. A quality control expert in Anand suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as “ANANDPATTERN”).

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Shri B. M. Vyas -------- ManagingDirectorGCMMF

Shri Deepak Dalal - District Registrar

Shri Rahul Kumar - Managing Director

shri Ramsinh Prabhatsinh Parmar - Chairman

Shri Rajendrasinh Dhirsinh Parmar Vice –Chairman

Shri Dhirubhai Amarsinh Zala - Director

Smt. Mansinh Kohyabhai Chauhan - Director

Shri Maganbhai Gokalbhai Zala - Director

Shri Shivabhai Mahijibhai Parmar - Director

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Shri Pravinsinh Fulsinh Solanki - Director

Shri Chandubhai Madhubhai Parmar – Director

Shri Bhaijibhai Amarsinh Zala – Director

Shri Bipinbhai Manishankar Joshi- Director

Smt. Sarayuben Bharatbhai Patel - Director

Shri Ranjitbhai Kantibhai Patel- Director

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Robust Supply ChainThe vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets

Diverse Product MixAmul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya

Strong Distribution NetworkAmul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. 47 depots with dry and cold warehouses to buffer inventory of the entire range of products.

Technology and e-initiatives New products Process technologyComplementary assets to enhance milk productionE-commerce.

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Progressive addition of higher value productswhile maintaining the desired growth in existing products.

Amul introduced products with consistent value addition but never left the core philosophy of” providing milk at a basic, affordable price”

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

CHOCOLATES: MAJOR TYPES & BRANDS

Types Brand

Molded chocolates Dairy Milk, Truffle, Amul Milk Chocolate, Nestle Premium, NestleMilky Bar, Nestle ClassicCount lines 5 Star, Perk, Kit Kat, Picnic, MunchPanned products Gems (Cadbury), Nutties, Marbles (Nestle)

AMUL CHOCOLATE

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GIFT FOR SOMEONE YOU LOVE

AMUL CHOCOLATE

is made from Sugar, Cocoa Butter, Milk Solids,and Chocolate mas

The various brands of Amul's bread spreads are Amul Lite, Amul Butter, and Delicious Table Margarine.

The Brand Amul's milk drinks are sold under various names such as Amul Kool, Amul Kool Cafe, Kool Koko, Amul Kool Chocolate Milk, and Amul Masti Spiced Buttermilk.

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Amul's powder milk are sold under many names like Amulya Dairy Whitener, Sugar Tea Coffee Whitener, Sugar Skimmed Milk Powder, and Amul Instant Full Cream Milk Powder.

The brand's cheeses are also sold under various names such as Gouda Cheese, Amul Cheese Spreads, and Amul Emmental Cheese.

Amul Brand's desserts are sold under many names like Amul Basundi, Amul Lassee, Gulab Jamun Mix, Amul Shrikhand, and Amul Ice Creams.

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

Composition:

Total fat 32%Cholesterol 2%Sodium 2%Carbohydrate 7%Dietary fiber 9%

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Vitamin A 2%Vitamin C 2%Calcium 8%Iron 4%

Composition:-

Milk Fat 2%

Sugar 55%

Total Fat 32.33%

(Milk Fat + Cocoa Fat)

Cocoa Solids 7.5%

Milk Solids 20%

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Market segmentation is the process in marketing of grouping a market (i.e. customers) into smaller subgroups. These markets are often termed niche markets or specialty markets. These segments are fairly homogeneous in their attitudes about certain variables.

Because of this intra-group similarity, they are likely to respond somewhat similarly to a given marketing strategy. That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way, and promoted in a certain way.

The purpose of segmentation is to identify and target prime customer groups (eg the 20% that account for 80% of your sales) so that you get the

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maximum return from a limited marketing budget (the most bang for your buck).

Market Segmentation Of Amul CHOCOLATE

Homogeneity within the segmentHeterogeneity between segments Segments are measurable and identifiable Segments are accessible and actionable Segment is large enough to be profitable.....

These criteria can be summarized by the word SADAM:

S Substantial: the segment has to be large and profitable enough A Accessible: it must be possible to reach it efficiently D Differential: it must respond differently to a different marketing mix A Actionable: you must have a product for this segment M Measurable: size and purchasing power can be measured.

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The Process-Data Model Of Marketing Segmentation

o Above given is a generic process-data model is given for the whole process of segmenting and positioning as a basis of deciding on the most effective marketing strategy and marketing mix.

o This model consists of the three main activities: segmenting, targeting and positioning. It shows the chronological dependency of the different activities.

o On the right side of the model the concepts resulting from the activities are showed. The arrows show that one concept results from one or more previous concepts; the concept can not be made when the previous activities have not taken place.

o Below the three main activities are shortly described as well as their role as a basis for the next step or their dependency on the previous step.

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After the most attractive segments are selected, a company should not directly start targeting all these segments. The attractiveness of the segments is also depending on other important factors. In the main activity of defining a target market, four sub activities are given which are the bases for deciding on which segments will actually be targeted.

AGE GROUP TARGETED

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The four sub activities performed by Amul while targeting are:-

Defining the abilities of the product and resources needed to enter a market

Analyzing competitors on their resources and skills

Considering the company’s abilities compared to the competitors’

Deciding on the actual target markets.

o The first three sub activities are described at the topic competitor analysis. The last sub activity of deciding on the actual target market is an analysis of the information made available when comparing the companies abilities to the competitors’.

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o This analysis leads to a list of segments which are most attractive to target and have a good chance of leading to a profitable market share.

o Obviously, targeting can only be done when segments are predefined; there have to be segments to analyze the competitors which are in this market. When the process of targeting is ended, the markets to target are selected, but the way to use marketing in these markets is not yet defined. To decide on the actual marketing strategy, knowledge of the differential advantages of each segment is needed. When positioning a product, the segments are first analyzed, this process is described next.

The major marketing management decisions can be classified in one of the

following four categories:

PRODUCT

PRICE

PLACE

PROMOTION

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These variables are known as the marketing mix or the 4 P's of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market. The marketing mix is portrayed in the following diagram:

The Marketing Mix

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TARGET MARKET

PRODUCT POSITION

PRICEPROMOTION

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o The firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner.

o Now, lets see the marketing mix for new launch of AMUL’S CHOCO CRUNH i.e., their products, price, place and promotion.

Competition Based Pricing

Setting the price based upon prices of the similar competitor products.

Amul’s new launch Choco Crunch Pricing is based on three types:-

1) Product is lasting distinctiveness from competitor's product. here we can assume a) The product has low price elasticity. b) The product has low cross elasticity. c) The demand of the product will rise.

2) Products have parishable distinctiveness from competitor's product, assuming the product features are medium distinctiveness.

3) Products have little distinctiveness from competitor's product. Assuming that: a) the product has high price elasticity. b) The product has some cross elasticity. c) No expectation that demand of the product will rise.

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Price is the factor that beats out all other choclates in the competition. Such as Cadbury. If you have been you must have seen that Amul and Cadbury frenchise are right next to each other. But if given the choice people would prefer Amul products and not Cadbury as the prices of Amul product is quite cheap as compared to their competitors like Cadbury and this has worked as an advantage for Amul since most of the customers prefer amul product over cadbury’s product, due to this price factor.The prices for an average milk product ranges between Rs. 20 and Rs. 35.

Comparing Prices Of AMUL and CADBURY:

Product AMUL

(Rs.)

CADBURY

(Rs.)

Dry fruit Choco

Crunch (pack of

20pcs)

80 100

By comparing the prices of the products of Amul and cadbury, we can see that the prices offered by Cadbury are on the higher side as compared to Amul. Thus we can see that cadbury’s target customers are professionals, working couples and families in the sec- a and sec-b categories that detest the loud ambience of Amul and who are willing to pay higher prices.

Whereas Amul’s typical customers are between the age of 07-50 years, which shows that these include children’s, youngsters and also aged people’s or are from the upper middle class or middle class families, who can afford these prices and looking at these target customers the company has designed its outlet to look young and trendy with vibrant colors such as brownie, black current (purple) and Butter scotch predominating the outlets.

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A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisations promotional strategy can consist of:

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Advertising: Is any non personal paid form of communication using any form of mass media?

Public relations: Involves developing positive relationships with the organisation media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention.

Sales promotion: Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers.

Promotion BudgetCOST SHEET

** SCHEDULE ‘A’

PARTICULARS Rate Total CostMascot (Mooh) 100/day 10,000Television Advertisements 90,000Radio Jingles 6,045.45Banners and Hoardings 58,000Print Advertisements (Newspapers)

60,000

Print 45,500

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Advertisements(Magazines)World Cup Promotional Activity -NilPayment to brand ambassador 3,50,000

Above A Pull Strategy (Left) Push Strategy (Right).

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Communication by the manufacturer is not only directed towards consumers to create demand.

A push strategy is where the manufacturer concentrates some of their marketing effort on promoting their product to retailers to convince them to stock the product. A combination of promotional mix strategies are used at this stage aimed at the retailer including personal selling, and direct mail. The product is pushed onto the retailer, hence the name.

A pull strategy is based around the manufacturer promoting their product amongst the target market to create demand.

Consumers pull the product through the distribution channel forcing the wholesaler and retailer to stock it, hence the name pull strategy. Organisations tend to use both push and pull strategies to create demand from retailers and consumers.

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ADVERTISING:-

An Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in between George Fernandes and Vajpayee.

Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. The pun in her words has been popular.

The Amul ads are one of the longest running ads based on a theme, now vying for the Guinness records for being the longest running ad campaign ever. Sylvester daCunha, was the managing director of the advertising agency, ASP, that created the campaign in 1967 whose charm has endured fickle public opinion, gimmickry and all else.

BANNERS:-

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Cost

A strong emphasis on target costing, design-to-cost, value engineering, and design for manufacturability. Minimum product variety. Significant manufacturing and accounting involvement in development. Suppliers are well-integrated into the development process. Factory uses high volume equipment specifically oriented to the product; automated material handling.

Quality / Reliability /

Dependability

A disciplined and rigorous product development process. Strong focus on understanding customer needs and providing products that meet those needs. Use of techniques like FMEA, FTA, FRACAS, DOE, Taguchi Methods, poke-yoke, and reliability prediction. Heavy emphasis on testing and qualification. Processes are oriented to self-checking and adjustment and use of computer- aided inspection and test equipment.

Time-to-Market

Use of modular design approaches. Sufficient resources to undertake development processes underway. Continuous surveillance of the marketplace and understanding of customer needs. Well-defined development processes based on tightly integrated design automation tools. Well-planned and managed programs with clear definition and acceptance of responsibilities. Process equipment to handle a wide range of work envelopes; FMS; quick set-up and changeover.

Innovativeness / Technology

A technology plan and roadmap based on the business and product strategy and plan. Effective technology management. Process to review new technologies developed outside for applicability internally. Effective process to deploy n ew technology to development programs. State-of-the-art design and analysis tools to support requirements of new technology. Policies to invest in training and development of personnel to master new technology. Culture open to new ideas and taking risks. Investment in new process technology.

A starting point is to define and understand the company's marketplace, customer needs and competition. Based on this assessment, the company's primary competitive dimensions can be selected and a strategy defined to develop and enhance these competitive dimensions. Once this is done, product and process design based on IPD can be oriented to implement this strategy.

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When the list of target markets is made, a company might want to start on deciding on a good marketing of a product. But an important step before developing the marketing mix is deciding on how to create an identity or image of the product in the mind of the customer. Every segment is different from the others, so different customers with different ideas of what they expect from the product.

The Process Of Positioning The Product Of A Company:

1. Identifies the differential advantages in each segment

2. Decides on a different positioning concept for each of these segments. This process is described at the topic positioning; here different concepts of positioning are given.

The process-data model shows the concepts resulting from the different activities before and within positioning. The model shows how the predefined concepts are the basis for the positioning statement. The analyses done of the market, competitors and abilities of the company are necessary to create a good positioning statement.

When the positioning statement is created, one can start on creating the marketing mix.

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B2C and B2B

The process described above can be used for both business-to-customer as well as business-to-business marketing. Although most variables used in segmenting the market are based on customer characteristics, business characteristics can be described using the variables which are not depending on the type of buyer. There are however methods for creating a positioning statement for both B2C and B2B segments. One of these methods is MIPS: a method for managing industrial positioning strategies by Muhlbacher, Dreher and Gabriel-Ritter (1994).

In order to ensure a continuous & efficient distribution, an approximate figure has to be arrived at for getting the initial orders & to ensure adequate supply so that any delays or resultant losses are avoided. For this purpose, the company adopted the consumer response hierarchy model so that, it is ensured that all the company enters the market with a bang avoiding any problems of late or inadequate supplies. This is highly essential to support the huge promotional budget, since if the supplies aren’t at the right time, all other effort can be in vain.

As Per The Consumer Response Hierarchy Model; The Calculations Are Like Below:

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RE-PURCHASE

TRIAL

PREFERENCE

LIKING

KNOWLEDGE

AWARENESS 80% of TargetedPopulation

60% of Awareness

40% of Knowledge

20% of Liking

10% of Preference Preference

5% of Trial

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Studying The Demographic Conditions Of INDIA

It is expected that 80% of this targeted population will get aware about the products with the help of the sales promotion, advertising and other marketing tactics.

Out of the People being aware of the products & the company, 60% will have somewhat exact knowledge of the product.

It is expected that out of the people having the knowledge of the product, with the product features and the requirement of milk in the country, 40% will develop a liking for the products.

20% of the target audience who have developed a liking, will opt for the company’s product as against the products they are using for daily consumption.

10% of the people who might prefer the product, will actually try it for the first time.

5% of the people who have tried it for the first time, might be convinced to purchase the product again

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Thus, adding up the people trying the product and the re-purchaser of the products, it comes up to 624960 people.

Market research is discovering what people want, need, or believe. It can also involve discovering how they act. Once that research is complete it can be used to determine how to market your specific product. Whenever possible, try to reduce risks at the earliest possible stage. For example you could carry out market research early on and not wait until you are almost ready to enter the market. If early market research reveals that your business idea has real potential, you can use this information in planning the build-up of your business.

For starting up a business there are a few things should be found out through market research in order to know if your business is feasible. These are things like:

“Marketing research is a systematic gathering, recording and

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analysis marketing problem to facilitate decision making.”- Coundiff & Still.

“Marketing research is a systematic problem analysis, modelbuilding and fact finding for the purpose of important decisionmaking and control in the marketing of goods and services.- Phillip Kotler

Market Information

Market information is making known the prices of the different commodities in the market, the supply and the demand. Information about the markets can be obtained in several different varieties and formats. The most basic form of market information is the best quotation and last sale data, including the number of shares, with respect to a particular security at a given time.

Examples Of Market Information Questions Are:

Who are the customers?

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Where are they located and how can they be contacted?

What quantity and quality do they want?

What is the best time to sell?

What is the long-term or historical price data over a

number of years?

What is the expected production in the country?

Is there more demand for one product or another? Etc.

OBJECTIVE OF RESEARCH

Assessment of present Amul chocolate market

Size of Market – Availability, Awareness, Acceptability of

AmulChocolates.Share of Amul – Share of Amul

Chocolates.Customer’s Expectations – Required Changes,

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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

SOURCES OF DATA

Data were collected from two sources –

Primary sources

Which include Questionnaire, Direct interviewand data

collected on personal observation. These are the data,which are

collected on self-basis.

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Secondary Data

Which Include Journals, Magazine, News Paper and Net.

These are the data, which are collected o from thesecondary

sources, which are made available by other organizationor

company through their annual report’s or journals or

newsmagazine.

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Limited time available for interviewing the respondents. As result of this it was not possible to gather full information abou the respondents.

When I interviewed children and teenagers, sometimes theyuse togive answers under the influence of their parents or elders.

Sometimes the problem which I face is language problem forwhich I have to make them understand.

Non-cooperative approach and rude behavior of therespondents.

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Must enter into marketing alliances with various portals to offer products (on those portals that were developed for festive occasions and celebrations such as Valentines Day and Friendship Day .Rejuvenate and strengthen the existing brands Extend its reach to semi-urban and rural markets. Sell its products through ' non-traditional ' outlets like music stores (such as MusicWorld), malls , renowned bookstores and popular apparel outlets (such as Pantaloons and Wills Sport boutiques). To put chocolate carts (similar to traditional bicycle ice-cream carts ) in malls and near college campuses to increase its reach. Increase frequency of advertisement . Company should introduce sales promotion schemes like free weight, pranky, tattoo, contest, free gifts etc. Advertisement can be done with the help of animations that attracts children and teenagers because chocolates are consumed largely in this segment.

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The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level.

The above three-tier structure was set-up in order to delegate the various functions, milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. This helps in eliminating not only internal competition but also ensuring that economies of scale is achieved.

As the above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programme, it is known as the ‘Amul Model’ or ‘Anand Pattern’ of Dairy Cooperatives.

Responsible for Marketing of Milk & Milk Products Responsible for Procurement & Processing of Milk Responsible for Collection of Milk Responsible for Milk Production

The phenomenal growth of milk production in India – from 20 million MT to 100 million MT in a span of just 40 years – has been made possible only because of the dairy cooperative movement. This has propelled India to emerge as the largest milk producing country in the World today.

The dairy cooperative movement has also encouraged Indian dairy farmers to keep more animals, which has resulted in the 500 million cattle & buffalo population in the country – the largest in the World.

The dairy cooperative movement has garnered a large base of milk producers, with their membership today boasting of more than 13 million member families.

The dairy cooperative movement has spread across the length and breadth of the country, covering more than 125,000 villages of 180 Districts in 22 States.

The dairy cooperatives have been able to maintain democratic structure at least at the grass-root level with the management committee of the village level unit elected from among the members in majority of the villages.

The dairy cooperatives have also been instrumental in bridging the social divide of caste, creed, race, religion & language at the villages, by offering open and voluntary membership.

The dairy cooperatives have been successfully propagating the concepts of scientific animal husbandry & efficiency of operations, which has resulted in low cost of production & processing of milk.

The movement has been successful because of a well-developed procurement system & supportive federal structures at District & State levels.

Dairy Cooperatives have always been proactive in building large processing capacities, which has further propelled growth of milk production.

The dairy cooperatives are among those few institutions in India, which still cherish a strong Cooperative identity, values and purpose. They still boast of idealism & good will of members and employees.

The dairy cooperatives have removed the poor farmers of India from the shackles of agents & middlemen and provided an assured market for their produce. As these are the institutions run by farmers themselves, it has also resulted in fair returns to the members for their produce

2.8 million milk producer member families

13,759 village societies

13 District Unions

8.5 million liters of milk procured per day

Rs. 150 million disbursed in cash daily

GCMMF is the largest cooperative business of small producers with an annual turnover of Rs. 53 billion

The Govt. of India has honoured Amul with the “Best of all categories Rajiv Gandhi National Quality Award”.

Largest milk handling capacity in Asia

Largest Cold Chain Network

48 Sales offices, 3000 Wholesale Distributors, 5 lakh retail outlets

Export to 37 countries worth Rs. 150 crores

Winner of APEDA award for nine consecutive years

Amul has recently entered into direct retailing through &quota; 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.

Amul should give local advertisements apart from the advertisements given at the national level. Local advertisement must mention the exclusive Amul shops of the city.

1970s – Market LeaderA classic 1970 - 80 Advertisement AMUL AD ON INDRAJAL(1970 80) 1990s

Shifted focus in 1990’s towards other milk products. Competition from multinationals Market share down to 2-3% 1990s AMUL ADVERTISEMENT Introduced newer varities of chocolates, like ‘Bindas’, ‘Nuts About You’ and others, targeting teenagers

2003.... Increase in sales due to cadbury worm controversy.(20 % increase in sales) To boost sales, Amul launched three new chocolates in under the brands Fundoo, Bindaas and Almond Bar . While the first two have been priced at Rs 10 for a 30 gm stick , Almond Bar carries a price tag of Rs 10 for a 35 gm chocolate. As a result, AMUL's festival season pack"Rejoice" came with six chocolates, up from three during the festive season before

2004-Repositioning Launch of ‘Chocozoo’ - chocolates in shapes of motorcycles, aeroplanes, animals and comic charaters. Targeted Kids . Introduced economic variants of chocolates priced at Re 1, Rs 3 and Rs 5.’’ A tub of ‘ Chocozoo ’ chocolates were priced at Rs 138 for 46 units of chocolates, but retailers can sell the chocolates loose, at Rs 3 each . This, was done to attract kids. Trendy Look – Removed the cute little butter girl and cheese boy from its wrappers. New wrappers , designed by a US firm, trendy and colourful . A new tag line: Amul Chocolate — For Someone You Love. Not merely gifts, but make a more emotional pitch with emphasis on Amul Chocolates for love on all occasions.

Strengths1. The company is having Indian origin thus creating feeling of oneness in the mind of the customers.

2. It manufactures only milk and milk products, which is purely vegetarian thus providing quality confidence in the minds of the customers.

3. It is aiming at rural segment, which covers a large area of loyal customers, which other companies had failed to do.

4. People are quite confident for the quality products provided by Amul.

5. Amul has its base in India with its butter and so can easily promote chocolates without fearing of loses.

6. The prices of chocolates of Nestles are comparatively cheap as compared to other companies.

Weaknesses1. There are various big players in the chocolate market, which acts as major competitors restricting their growth. 

2. Lack of capital invested as compared to other companies.

3. Improper distribution channel in India.

Opportunities1. There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting.

2. The chocolate market is at growth stage with very less competition so by introducing new brand and intensive advertising there can be a very good scope in future.

Threats1. The major threat is from other companies who hold the majority share of consumers in Indian market i.e. Cadburys and Nestle.

2. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands.

3. New companies’ entering in Indian market like Fantasie fine poses lot problems for Amul.Advertisement

Amul chocholate’s Market share decreased to 5% much less than market leader(79%)The awareness level of AMUL CHOCOLATE is very low. To find the performance of AMUL CHOCOLATE vis-à-vis other Brands. To know the consumer psyche and their behaviour towards AMUL CHOCOLATE.

To gauge the awareness of people towards Amul chocolates.

To find out in which segment chocolates are mostly liked/preferred. To understand which advertisement medium must AMUL use. To know the perception of Amul chocolates in comparison to other competitive brands. To formulate an IMC strategy for Amul Chocolate.

The main objective of the project is to know the market potentials andawareness about new variants of Amul chocolate in Varanasi 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).

RESEARCH OBJECTIVES & related sub objectives

To know the relationship of sales with the advertisement.To know awareness of people towards Amul chocolates.To know in which segment chocolates are mostly like/preferred.To know which advertisement tool is mostly preferred by people.To know the preference of Amul chocolates with comparisonto Other competitive brands.To know the factors which affects consumer’s buying behaviourto purchase chocolates

Information about all the competitors present in the chocolate segment (Reputed & well established brands as well as Local brands e.g. Cadburies, Nestle etc.)

Information about the comparative packs and prices of all the competitors existing in the market.

To trace the market and segment, which mainly deals with people of various age groups.

Various types of chocolates available in the market

Information if the television advertisement timing is effective or not.

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50 sales offices spread all over the country, more than 3,000 wholesale dealers and more than 5,00,000 retailers.

AMUL is also the largest exporter of dairy products in the country. AMUL is available today in over 40 countries of the world. AMUL is exporting a wide variety of products which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee) and Indigenous Sweets.

The major markets are USA, West Indies, and countries in Africa, the Gulf Region, and [SAARC] SAARCneighbours, Singapore, The Philippines, Thailand, Japan and China.

In September 2007, Amul emerged as the leading Indian brand according to a survey by Synovate to find out Asia's top 1000 Brands.

The sales turnover of the Brand Amul :Sales Turnover Figures

Year Rs (million) US $ (in million)1999-00 22185 4932000-01 22588 5002001-02 23365 5002002-03 27457 5752003-04 28941 6162004-05 29225 6722005-06 37736 8502006-07 42778 10502007-08 52554 13252008-09 67113 1504

1. CHOCHOLATE MARKET IN INDIA o Chocolate market is estimated to be around 1500 crores

(ACNielson) growing at 18-20% per annum o Cadbury is the market leader with 79% market share o The per capita consumption of chocolate in India is 300 gram

compared with 1.9 kilograms in developed markets such as the United Kingdom

o Over 70 per cent of the consumption takes place in the urban markets .

o The chocolate wafer market (Ulta Perk etc) is around 35 % of the total chocolate market and has been growing at around 13% annually.

o As per Euromonitor study, Indian candy market is currently valued at around USD 664 million , with about 70%, or USD 461 million, in sugar confectionery and the remaining 30%, or USD 203 million , in chocolate confectionery .

o Entire Celebrations range marketshare is 6.5%

2. COMPETITION SCENARIO o The chocolate market in India has only three big players,

Cadbury(79%), Nestle(14%) and Amul (5%) o New brands such as Sweet World, Candico and Chocolatiers

are present in several malls . o The largest target segment for Cadbury is youth . o Delhi-based Chocolatiers , started with a small shop in south

Delhi’s Chittaranjan Park and has now ventured into malls and multiplexes in NCR, Mumbai and Bangalore , with focus on high-end or designer chocolates , a niche market of their own.

Candico India is aiming for 400 locations across malls and multiplexes in the country by 2010

Amul – Product Portfolio

During the survey it was found that still there are10%  people who have not tasted Amul Chocolate.

Lake of Awareness  in consumers. Many people are not know about Amul chocolates specially children and teenagers.

As I found that the  main product of Amul is Milk and company firstly wants to capture maximum market share inmilk market which is approx. 66%, after it Amul isconcentrating upon butter & cheese which has market share ofapprox. 88%, so it is not concentrating upon chocolates.

When I interviewed people then many of the people can not recall  Amul chocolate advertisement. It shows Lake of Advertisementor advertisement is not timely givenoradvertisement is not given on right time.

In its advertisement is  not using any brand ambassador which attracts all age group people like Cad bury.

There is lake of  Sales Promotional Activities i.e. free tattoo ,extra weight, toys, quiz contest etc.

Cadbury is main competitor and strategically better performer then Amul.

I find the main thing is that“Amul”  brand name has very good image in consumer’s mind and they consider it as Pure & Good Product.

People who have tasted  Amul Chocolate are not ready to purchase the same again

Competition will never end so let's not avoid it but face it confidently,

"For a chief executive, unless he knows where he is going no one can take him there".

What's the use of Marketing & Advertising if it does not reach the right people and yield desired results? Therefore it is necessary for every individual who has something to sell but no one to buy, to detect the problem areas and try to solve them. But for this, knowing the right problem is extremely essential otherwise hitting the target in dark means nothing.

Therefore, it is rightly said that a "well defined problem is half done". Once you know your drawbacks only then you can correct it. Therefore, to know your drawbacks you need to conduct a survey and get information right from the ultimate users of your product. They should be asked to bring out your drawbacks. This will help you to not only know your pitfalls but also what your customers want and their likes and dislikes and while doing so build a good rapport with your customers. While conducting such surveys you can also advertise your products among those customers who are not much aware of it.

"There are three ways of doing a thing—- the wrong way, the right way and our way"

whichever may be your way the ultimate aim is to achieve the results and implement them to maximize customer satisfaction we all know competition is intense then why not take it positively so that it helps us to improve our product quality, makes customers loyal to us, helps us know our shortcomings and rectify them. The best way to overcome your competitors is to give your customers what they expect or probably more than that.

To know the customers expectations towards Amul, I had conducted a market Research of the existing customers, which helped me to know the satisfaction, awareness and liking among customers for the products of Amul and analyse the situation and provide them suggestion to improve the situation.

In comparison to Amul Chocolate, the other players such as Cadbury, Nestle, and Perfetti provide a better availability and give competition to the hilt.

People are mostlysatisfied with the overall quality of Amul Chocolate, but for the existence in the local market Amul must use aggressive selling techniques.

o www.rediff.com o www.indiainfoline.com o www.amul.com o www.amuldairy.com o www.google.com o www.India-stats.com o www.Agencyfaqs.com o www.indiantelevision.com o www.dairy.com o www.thehindubusinessline.com

Marketing management by Kotler ,keller   - Coundiff & Still

Research methodology-c r kothari

NAME: - ………………………………………………

CONTACT NO ……………………………………….

1-Do you like chocholates ?

Yes 97 %

No 3 %

2- Who in your family uses chocholates?

3- What kind of chocolates do you prefer?

o Branded o Non Branded

4- What type of chocolates do you prefer?

o Waferso Bars o Small chocolates o Other

5- Which type of television channel do you prefer watching the most?

o News

o Cartoon

o Zee/Star (Entertainment)

o Other

6- Which time slot do you prefer for watching television?

o Morning

o Afternoon

o 5-8 pm

o 8-11 pm

o Late Night

7- Media where the last time you saw a chocolate advertisement was

o Television

o Hoardings

o Radio

o Newspaper

o Magazine

o Other

8- According to you which of the following makes a television advertisement more memorable?

o Jingles

o Brand Ambassador

o Emotion

o Humour

o Product display

o Others

9- Have you heard of Amul Chocolates?

o Yes

o No

10- Can you recall any of the Amul chocolates Advertisement/ Hoarding?

o Yes

o No

11- Which chocolates do you like the most?

o Amul

o Nestle

o Cabury

o Others

12- When do you usually purchase a chocolate?

o Festivals

o Gifting

o Snacks

o Just like that