A PROJECT RESEARCH REPORT ON Promotional Scheme of Amul Ice Cream

Submitted in partial fulfillment of the requiments for the award of the degree of Master of Business Administratipn

Submitted to: Faculty guide: Submitted By:Seshanvita Das Dharmendra kumar GIMT, Greater Noida ROLL: 0909470031 MBA 4sem

ACKNOWLEDGEMENT

This study even internal part of our MBA program and to do this project in a

short period was a heavy task. Intention, dedication, concentration and hard

work are very much essential to complete any task. But still it needs lot of

support, guidance assistance, co-operation of people to make it successful.

I bear to imprint of my people who have given me their precious ideas and

times to enable me to complete the research and the project report. I want to

thank them for their continuous support at my research and writing efforts.

First of all I would like to thank Dr.shruti Gaur, faculty member of LIMT

Gr. Noida, for giving me an opportunity to write my Dissertation report

under his guidance and supervision and for all the help and support which

led me complete the project.

At last but not least I also thanks to the entire customer interviewed for their

kind co-operation.

With Regards

Surendra Pal Singh

DECLARATION

1

I, Dharmendra kumar vhereby declares that the project work entitled “Promotional scheme of Amul Ice cream” is my project. I have not copied this project. I have worked hard for this project. Dr. Shruti Gaur was my project guide. Her encouragement, indulgency, and affection made this project a reality. I have proudly got her guidance in designing the architecture underlying the system.

Signature of the Project Developer: Surendra Pal Singh.

Name: Surendra Pal Singh.

Course: Master of Business Administration. Date: 16/Dec/2010.

Signature of the Center Director:________________________________________________

Name of the Learning Institution: - GIMT,Institute of management & technology- II Greater noida 201306

2

Abstract:

Amul is the largest co-operative movement in India with 2.2 million

milk producers organized 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

3

mover disadvantage through aggressive pricing, better quality,

innovative promotion, and superior distribution

TABLE OF CONTENTS

List of Table

List of Figure

Certificate

Acknowledgement

Declaration

Abstract

CHAPTER PAGE NO.

Introduction ----------------------------------------6

Company Profile -------------------------------- 9

Distribution network --------------------------------- 15

Executive Summary ----------------------------------------41

Industry Scenario ---------------------------------47

Introduction of problem ----------------------------------48

About the study ---------------------------------

Rationale and Scope ---------------------------------50

Objective of the project -----------------------------------52

4

Review OF Literature ----------------------------------54

Marketing Mix 4 P’s -----------------------------------58

SWOT Analysis ------------------------------------60

Research Methodology ------------------------------------66

Project Activity Sequence -------------------------------------71

Data Analysis & Finding ----------------------------------------- 74

One way ANOVA -----------------------------------89

Finding -----------------------------------92

Recommendations --------------------------------------------95

Conclusions ----------------------------------------------100

Bibliography ------------------------------------------------------ 102

Annexure ----------------------------------------------103

Questionnaire

LIST OF TABLE & GRAPHS

Analysis of non existing outlet 82

Mode of payment for deep freezer 83

Relationship on the basis of retailer 84

Analysis of Existing Amul outlet 85

Mode of purchase 87

Pack of ice cream sold most 88

5

INTRODUCTION

Gujarat Cooperative Milk Marketing Federation (GCMMF), one of India's

greatest success stories with its Amul brand, is now aiming at a 17-per cent

growth in sales to Rs 3,200 crores this fiscal against sales of Rs 2,746 crores

in the previous year ended 31 March 2003.

The federation is expecting each of its products to contribute higher sales

this year as new products are being added to each product line.

The big hope is not surprisingly the Amul brand of ice creams, which is

expected to contribute Rs 250 crores to the turnover, up from Rs 150 crores

last year. Last year there was a good growth in ice cream, cheese, butter and

ghee. The company is launching new products in almost every line that are

in, with specific stress on ice creams.

For its ice cream and milk business, GCMMF has begun investing in

increasing its milk capacity. It recently firmed up plans to invest Rs 100-120

crore to expand this from 1.1 million liters a day to 1.8 million litres a day at

6

its Gandhinagar factory. The investment will take place over the next two

years.

The cooperative is also planning to expand its production facilities beyond

Gujarat to service other regions in India. GCMMF recently bought an ice-

cream manufacturing unit in Nagpur and is installing a dairy unit alongside.

Through this unit, the organisation has also extended its milk supply to over

10 cities spread over Rajasthan, Madhya Pradesh and Maharashtra.

Amul is now focusing on its supply system. Efforts are on to ensure greater

availability of Amul ice-cream at pushcarts and small outlets. The company

feels that availability is the most important factor in ice cream sales. Thus,

Amul ice-cream can be found in 'just around the corner shops,' local STD

booths, local kirana shops, chemists and bakers, who stock the ice-cream in

deep freezers.

The idea is to ensure visibility and availability, which more often than not

ensures a sale as ice-cream consumed out of home is most often an

impulsive purchase. Amul expects to clock sales of 34 million litres during

the current year and the accent will be on offering 'value for money'

products.

7

The new ice-creams which are launched by Amul this year includes a mega-

bite almond cone (the largest volume cone in the country), an orange ice-

cream (Santra Mantra), a Bouncer ice-cream with nuts and essential

proteins, vitamins and minerals for the growing children, a cheese ice-cream

and a sundae in cone for kids in different variants.

Amul ice cream is positioned as 'real ice-cream' made from real milk cream,

while HLL's Kwality Walls is made from vegetable oil and its items are

dubbed as Frozen Deserts.

Last year, Amul ice cream made its entry into New Delhi, India's biggest

ice-cream market, where its anti-compete agreement with Mother Dairy has

expired. Amul has been sourcing its entire ice-cream requirement for the

northern market (including Delhi) from its own Gandhinagar plan

8

INDUSTRIES

OVERVIEW

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview –

Gujarat Cooperative Milk Marketing Federation (GCMMF) is a India’s

largest food product marketing organization. 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: 12-district cooperative milk producers’ Union

No. of Producer Members 2.23 million

No. of Village Societies: 10,852

Total Milk handling capacity: 6.7 million litres per day

Milk collection (Total - 2001-02): 1.67 billion litres

9

Milk collection (Daily Average 2001- 02): 4.59 million litres

Milk Drying Capacity: 510 metric Tons per day

Cattlefeed manufacturing Capacity: 1450 Mts per day

10

Sales Turnover Rs. (million) US$ (million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27475 575

AMUL means "priceless" in Sanskrit. A quality control expert in Anand

suggested the brand name “Amul,” from the Sanskrit “Amoolya,” 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. 25 .)

11

billion in 2002). 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.

12

50 years after it was first launched, Amul's sale figures have jumped from

1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other

brand comes even close to it. All because a thumb-sized girl climbed on to

the hoardings and put a spell on the masses.

Dairy giant Gujarat Co-operative Milk Marketing Federation Ltd.

(GCMMF) recorded 22 per cent growth in turnover during the first half of

the current financial year with milk products sales amounting to Rs 1,000

crore.

GCMMF sold 10.5 crore litres of milk in pouches during April to September

1998 under its well-known brand `Amul'.

"GCMMF's financial performance during this period has been even more

attractive with a growth of 25 per cent. However, this won't be reflected in

our balance sheet. The multinationals would have shown it as glittering

profit, but we are working on our mandate of returning any surplus back to

grass-root village co-operative milk society members by periodic price

differentials for their production.

13

With 12 processing units (unions), each located at the district-level,

GCMMF today has a membership of 20 lakh farmers, who belong to 10,000

village dairy co-operative societies.

GCMMF, the largest producer of dairy products in Asia, has over 26

products ranging from `Amul Butter', `Amul Spray', `Amul Lite', `Amul

Cheese' to `Amul Mithaimate', `Amul Mithaee Gulabjamun' and ‘Amul

Frozen Pizza’.

The co-operative is launching wide range of cheese including the exotic

Emmental from the Swiss Alps, soft Mozzarella from Italy and slices of

processed Cheddar cheese.

GCMMF has also come out with `Amul cheese powder' used in soups,

salads, dressings and hoard of other fast foods.

The federation has been able to capture 50 per cent of the ice-cream market

in the state in a short span of one year.

`Amul Ice creams' are also now available in 12 states and two union

territories and enjoy 35 per cent to 40 per cent market share.

The `Amul Ice-cream' strategy bordered on its punch line, `real milk, real

ice-cream'

`Amul Ice creams' were smoother and creamier than its competitors as fat

used was pure milk, which was more expensive and not vegetable fat.

14

GCMMF, which has 45 sales offices, plans to make these products

"available all over the country".

The federation has a distribution network comprising more than 2,700

wholesale dealers and over five lakh retail outlets.

DISTRIBUTION NETWORK

15

Amul

Baroda Dairy

C&F

Agencies

Sub Distributor Retailers

Retailers

Amul manufactures its ice cream in Baroda dairy plant. Its supplies raw

material like milk from different places of Gujarat to Baroda dairy. When ice

cream is fully prepared and packed than it’s transferred to different states via

air-conditioned trucks. The C&F agents store it in big deep freezer rooms.

From C&F the ice cream is delivered to different distributors. And from

distributes the ice cream is delivered to different retailers and sub retailers.

And finally the consumers purchased from the retailers.

Amul would provide the design and specifications for renovation of the

outlet. It will provide consultancy if required and will also inspect the work

of the contractor.

Amul will help in assessing the business potential of the shop and will help

in making the business plan.

Amul will guide you in purchase of various equipment. It will also help you

in choosing between the various sizes and types available based on its

experience of the business.

16

Amul will provide the design and/or supplier of the uniform for the parlour

boys.

Amul will provide advice and consultancy for inauguration and operation of

your shop, as well as for attracting customers and increasing sales.

Amul will provide signages and glowsign to the outlet at its own cost. The

design will be standard and such as to identify your outlet as a "a direct

outlet of the company", which stores and sells the entire range of Amul

products.

Amul shall give target based additional margin on its products for the first

year of operation upto a maximum of 1% on dairy products and 2% on ice-

cream.

Amul shall help in the inauguration by providing free ice-cream worth Rs.

1000. The other expenses of the inauguration shall be borne by you.

Amul shall give 1000 pamphlets specially printed for your shop for

newspaper insertion in the neighborhood to generate awareness about your

outlet.

Amul shall design and implement in-shop promotions based on requirement.

Amul shall keep you in its list of preference for all promotions schemes,

launch of new products, etc.

List of Products Marketed:

17

Breadspreads:

Amul Butter

Amul Lite Low Fat Breadspread

Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese)

Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

18

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

19

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 ( 6 months above)

Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardised Milk 4.5% fat

20

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

21

Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh

Strawberry, Black Currant, Santra Mantra, Fresh

Pineapple

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

22

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

Amul - Evolution of Marketing Strategy

23

Product Development

Amul's product development was driven both by the spirit of the

cooperative system and profitability. Being a cattle farmers'

cooperative, Amul was committed to buying all the milk offered by the

farmer. The perishable nature of milk made it imperative for Amul to

process the surplus milk and enter new product categories as

production increased...

Butter

Launched in 1955, butter was one of the first milk products offered by

Amul. It was also the first time Amul successfully challenged the

hegemony of an established brand. Amul's earliest competitor, Polson

had been the monopoly milk supplier to the Bombay Milk Scheme.

Amul displaced Polson to emerge as the undisputed leader in the butter

market...

24

Cheese

GCMMF launched processed cheese in 1959 followed by cheese powder in

the early 1970s. In the 1980s the popularity of cheese increased...

Ghee, Skimmed milk powder and Baby food

Amul launched ghee (clarified butter) and skimmed milk powder in 1955.

Amul Ghee was an instant success...

Milk and UHT Milk

Amul was the market leader in the Gujarat whole milk market with a 90%

market share in 2002. Apart from supplying milk to parts of Maharashtra

and Rajasthan, GCMMF also sold milk to the NDDB owned Mother Dairy

in Delhi...

25

The idea is to ensure visibility and availability, which more often than not

ensures a sale as ice-cream consumed out of home is most often an

impulsive purchase. Amul expects to clock sales of 34 million litres during

the current year and the accent will be on offering 'value for money'

products.

The new ice-creams which are launched by Amul this year includes a mega-

bite almond cone (the largest volume cone in the country), an orange ice-

cream (Santra Mantra), a Bouncer ice-cream with nuts and essential

proteins, vitamins and minerals for the growing children, a cheese ice-cream

and a sundae in cone for kids in different variants.

.

.

26

Amul ice cream is positioned as 'real ice-cream' made from real milk cream, while HLL's Kwality Walls is made from vegetable oil and its items are dubbed as Frozen Deserts

27

Pricing

Amul's philosophy had all along been to deliver value for money to its

customers. Despite being priced economically, Amul maintained its

product quality...

Distribution

GCMMF's formidable distribution network comprised 300 stock keeping units,

46 sales offices, 3,000 distributors, 100,000 retailers with refrigerators, an

18,000-strong cold chain, and 500,000 non-refrigerated retail outlets...

28

Advertising and Sales Promotion

Over the years, Amul's advertising philosophy had been "to be simple,

fresh and innovative". The clean, emotion-based ads refrained from

using hi-tech special effects, and aimed at maintaining the perfect

balance between the traditional and the modern...

Looking Ahead

The liberalization of the dairy industry in 1991 had seen a number of

multinational players like Britannia, Le Bon, Dabon and Hi-Life enter the

sector.

29

Analysts wondered whether a co-operative with limited financial means

could stand up to the might of these MNCs, and if its low pricing strategy

would continue to stay relevant. MNCs like Pizza Hut, Domino's, Hindustan

Lever Limited and Cadbury had also become competitors. Amul had proved

its detractors wrong and firmed up ambitious growth plans..

AMUL PRODUCTS

. 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.

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.

52.55 billion in 2007-08). 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' organisation. And of a proven model for dairy

development.

30

Bread Spreads

Amul ButterUtterly Butterly Delicious

Amul LiteLow fat, low Cholesterol Bread Spread

Delicious Table MargarineThe Delicious way to eat healthy

Milk Drinks

Amul Kool Millk Shaake

Amul Kool

31

Amul Kool Cafe

Kool KokoA delight to Chocolate Lovers. Delicious Chocolate taste

Nutramul Energy DrinkA drink for Kids - provides energy to suit the needs of growing Kids

Amul Kool Chocolate Milk

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack

Amul Masti Spiced ButtermilkAmul introduces the Best Thirst Quenching Drink

Amul Kool Thandai

32

Powder Milk

Amul 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

33

Amulya Dairy WhitenerThe Richest, Purest Dairy Whitener

   

Fresh Milk

Amul 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

Amul Taaza Double Toned Milk

Amul Lite Slim and Trim Milk

34

Amul Fresh Cream

Amul Shakti Toned Milk

Amul Calci+

Cheese

Amul Pasteurised Processed Cheese100% Vegetarian Cheese made from microbial rennet

Amul Cheese SpreadsTasty Cheese Spreads in 3 great flavours..

Amul Emmental CheeseThe Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma

Amul Pizza Mozzarella CheesePizza cheese...makes great tasting pizzas!

35

Gouda Cheese

   

.

For Cooking

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

Cooking Butter

36

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

Desserts

Amul 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.

Amul ChocolatesThe perfect gift for someone you love.

37

Amul Lassee Amul Basundi

Health Drink

NutramulMalted 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.

.

38

39

40

INDUSTRY SCENARIO

Total ice cream market in our country is of Rs.2000 crores in which branded

ice cream market share is of Rs. 650 crores. Amul captures around 27% of

total market share of organized sector. In 2003, Amul ice cream sales wet

Rs.160 crore, almost three times the Rs.55 crore sales in 1998.

The ice cream consumption in Delhi is 20% of the total consumption in our

country. Out of which Amul captures around 30% of the Delhi market.

41

42

INTRODUCTION TO THE PROBLEM

Retailers are the one of the most important member of the distribution

channel. They are the people who provides product to the final consumers.

As they have the direct touch with the consumers, so they can play a vital

role for influencing the buyers decisions. The company should try to

provide services to the retailers in such a way that they can satisfy with

them.

43

44

RATIONALE:

The market share of Amul ice cream is increased by three times in just two

years. The total consumption of Amul Ice- Cream in terms of rupees is Rs.

30,00,000 per month in one of the agencies of Amul in Delhi. The Amul Ice

Cream captures around 30% of the total market share in Delhi. There is an

immense opportunity for the company to extend their market share. The

project will create the opportunity for the company to capture the market

share.

SCOPE:

The scope of study is to understand the problem faced by the company while

increasing the retail outlets. With the help of this project GCMMF can

increase their outlets by analyzing the feedback given by the interviewer

(including existing and non existing outlets). GCMMF can also analyze the

pricing strategy followed by the rivals. By this study company will get the

information about current competitive position of the Amul ice cream in the

market.

45

46

PRIMARY OBJECTIVES: To increase the number of outlets of Amul ice

cream.

SECONDARY OBJECTIVE:

To analyze the retailers perception about Amul ice cream.

To find out the competitive edge of the company over the competitors.

To analyze the market size of ice cream.

To study the consumer preference about different ice cream

companies.

To study distribution channel.

47

48

Retailing includes all the activities involved in selling goods or services

directly to final consumers for personal, non-business use. A retailer or retail

store is any business enterprise whose sales volume comes primarily from

retailing.

Any organization selling to final consumers – whether it is a manufacturer,

wholesaler, or retailer- is doing retailing. It does not matter how the goods or

services are sold or where they are sold. Consumers today can shop for

goods and services in a wide variety of retail organizations. There are store

retailers, non-store retailers, and retailer’s organization. Perhaps the best-

known type of retailers is the department store. Retail-store types pass

through stages of growth and decline that can be described as the retail life

cycle. A type emerges, enjoys a period of acceleration growth, reaches

maturity, and then declines. Older retail forms took many years to reach

maturity; newer reach maturity, whereas warehouse retail outlets reached

maturity in 10 years. The most important retail-store types are:

Specialty store: Narrow product line with a deep assortment.

Department store: Several product lines with each line operated as a

separate department managed by specialist buyers.

49

Supermarket: Relatively large, low-margin, high volume, self

service operation designed to serve total needs for food, and

household products.

The wheel-of-retailing hypothesis explains one reason that new store types

emerge. Conventional retail stores typically increase their services and raise

their prices to cover the costs. These higher costs provide an opportunity for

new store forms to offer lower prices and less service. New store types meet

widely different consumers preferences for service levels and specific

services.

Retailers can position themselves as offering one of the four levels of

services:

1. Self-services: Self-services is the cornerstone of all discounts operation.

Many customers are willing to carry out their own locate-compare-select

process to save money.

2. Self-selection: Customers find their own goods, although they can ask

for assistance.

50

3. Limited services: These retailers carry more shopping goods, and

customers need more information and assistance. The stores also offer

services such as credit and merchandise-return privileges.

4. Full services: Salespeople are ready to assist in every phase of the

locate-compare-select process. Customers who like to be waited on prefer

this type of store. The high staffing cost, along with the higher proportion

of specialty goods and slower-moving items and the many services,

resulted in high-cost retailing.

5. Corporate retailing: Although many retail stores are independently

owned, an increasing number are part of some form of corporate

retailing. Corporate retail organizations achieve economies of scale,

greater purchasing power, wider brand recognition, and better-trained

employees. The major types of corporate retailing—corporate chain

stores, voluntary chains, retailer cooperatives, franchises, and

merchandising conglomerates.

51

52

FOUR P’S OF THE PRODUCT

PRODUCT: Amul ice cream has wide range of variety that consists of more

than hundred flavors available in the market including 20 new flavors, which

is introduced in this summer. As ice cream is an impulsive purchase item so,

its sale depends mostly on availability and variety.

PRICE: The price of Amul ice cream is very less compared to its

competitors. In novelty item the price of the flavors varies from Rs.2 to

Rs22. The pricing strategy of Amul is, to target each income group of the

society. The cheaper price of ice cream is meant for targeting the people

with low income. Along with the low income group Amul is also targeting

medium as well as the premium segment by providing different flavors at

different prices.

PLACE: The distribution of the ice cream in Delhi is done through

exclusive Amul outlets situated in various locations. In Delhi, Amul has

eleven distributors who supplies ice cream to more than 3000 outlets. These

eleven distributors are responsible for their respective areas.

53

PROMOTION: Amul is a well-established brand name of GCMMF. For

promotion of the ice cream the company gives advertisement in newspaper

and magazines. It gives glow sign board to every retailers and also makes

wall paintings on there request. Amul uses their punch line ---“Real milk

real ice cream” for the promotion.

SWOT ANALYSIS

54

STRENGTH:

a) Biggest sourcing base for milk and milk products in India.

b) India’s best-known local Brand across all categories.

c) 35% market share in the national Ice Cream market.

d) Presence of a well-established distribution and delivery network for

dairy products.

e) Penetration pricing strategy – Amul is the price warrior in the Ice cream

market and currently has a very wide range to offer for all price points.

f) Kwality Walls, Amul’s main rival, has been able to extend it’s cold

chain in only about 150 out of 300 class I towns. Whereas Amul has

presence in almost all towns because of its already existing butter lines.

g) Customer is most comfortable buying Ice Cream in the Value for

Money segment and Amul is well present in this segment.

55

h) Amul has built up a formidable image as a brand in which generations

of consumers have placed their trust. This can be used to its advantage

while introduction of ice creams.

WEAKNESS:

a) Relationship between retailer and company is not effective.

b) After sales service is not upto retailers expectation level

c) Availability of all type of verity ice is not regular.

d) Advertising is low profile, as the results of our survey show. Kwality

Walls on the other hand is into heavy advertising and consequently, is

popular.

e) As per our survey, retailers list a credible Replacement policy as a

factor very high on their wish list. They would be willing to make

further investments only for that brand which offers replacement

facilities. Amul has no replacement policy.

56

f) Retailers now demand freezers without having to pay any deposit.

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

other ice cream brands

OPPORTUNITY:

a) Delhi market is not restricted to monopoly outlets. There are a

significant number of retailers who are currently stocking more than

two brands. This is in Amul’s favor, as earlier it had to overcome this

problem in the Mumbai market.

b) There is ample scope in the low priced segment as also in other

categories where consumers presently are dissatisfied with the quantity

being provided vis a vis the price being charged.

57

c) Amul has the opportunity to capture the more evolved young adults and

children who are open to new products provided they meet their

expectations.

d) Kwality Walls is right now in an investment mode and is concentrating

on expanding the market as also its reach. Amul should direct its

resources towards cashing in on Walls market development.

e) Distributors are dissatisfied with the margin & customer support

services currently being provided in the market. This can be used to

Amul’s advantage. Mother Dairy is extremely apathetic to retailers and

there is a gap to be exploited.

THREAT:

a) New companies are entering the ICE industry.

b) Local manufacturers are growing at alarming rate

c) Good advertisement campaign from competitors.

58

d) The consumers have very well received Kwality Walls product

differentiation strategy and Mother Dairy is also pushing up its

advertising pitch.

59

60

RESEARCH DESIGN:

The research design prepared with great care keeping in mind the research

objective. The project was divided into two parts—parts ‘A’, part ‘B’.

RESEARCH APPROACH:

In the part ‘A’ the research was conducted by visiting to the various non

existing outlets of Amul and asking them about Amul ice cream and whether

they would like to keep Amul ice cream. I also told them about the Amul’s

promotional scheme and various superseding factors.

In the part ‘B’ the research was conducted by visiting to the various existing

Amul’s outlets and knew about the replacement of old and unsold stock and

services of Amul.

RESEARCH INSTRUMENTS:

The primary data collected for this study was done through detailed market

survey by means of unstructured interaction. The secondary data is collected

through Internets, Material provided by company, e.t.c.

SAMPLE PROCEDURE:

The procedure adopted for sampling was on the basis of judgmental

sampling.

61

HYPOTHESIS:

Ho1 --- There is no significance difference between the price of Amul Ice-

cream and it’s competitors.

Ho2 --- There is no significance difference between the product quality of

Amul Ice –cream and it’s competitors.

Ho3 --- There is no significance difference between the company’s scheme

of Amul ice – cream and it’s competitors.

Ho4 --- There is no significance difference between the services provided by

Amul and it’s competitors.

Ho5 --- There is no significance difference between the availability of Amul

Ice – cream and it’s competitors.

Ho6 --- There is no significance relation between the taste of Amul ice

cream and its competitors.

Ho7 --- There is no significance difference between the packaging of Amul

ice cream and its competitors.

62

Ho8 --- There is no significance between the flavor of Amul ice cream and

its competitors.

Ho9 --- There is no significance difference between the brand image of

Amul ice cream and its competitors.

LIMITATIONS:

The study limit to Central Delhi

Due to unavailability of proper conveyance facility, it was really hard to

cover the market under a scorching sun.

In many residential blocks shops located in corners of by lanes were

difficult to locate.

The time duration of two months was short for the completion of all

activities.

Being a perishable product no sample could be shown as demanded by

many prospecting clients.

1

63

64

PROJECT ACTIVITY SEQUENCING

Final Report

65

Start

Conduct survey in south Delhi by

Compile and analyze the collected information

Do report writing

Collecting some secondary

data/information from various

sources

Study the information

Developing open and structured

questionnaire

66

67

This table shows the interested to take retailership for ice-cream

Dealers Number YES NO

100 67 33

From the above graph it is found that 67% retailers are interested in keeping

ice cream. Only 33% retailers are not interested.

68

If yes, which brand would you like to go for:

Retailers Amul Kwality Mother dairy Cream bell

100 40 17 20 23

The graph shows that out of hundred percent retailers 40% retailers were

favored Amul ice cream. After Amul the most favored ice cream is cream

bell. Cream bell is second most important because its new in market with

higher rate of margin and less price.

69

Preference given by the retailers to the following companies on the given quality:

70

13712713892Services

1378691119C. Scheme

104140145121Taste

108115121111Availability

106111139127Pack

9597100123Variety

90138128135Quality

1278084115Margin

11911083123Price

Cream bellMother dairyKwalityAmul

71

Comparison of preference given by the retailers to the different Ice –

cream-making companies:

From the above graph it is conclude that Amul is leading in the price and

variety preference but giving equivalent competition to other companies in

quality, packaging and availability. Amul is way behind in terms of services.

72

(ANALYSIS OF NON-EXISTING OUTLETS)

Percentage of people likes to keep deep freezer provided by the

company:

Retailers Yes No

100 87 13

Here graph shows that the most of the retailers wants to keep deep freezer

provide by the company.

Mode of payment for deep freezer:

73

Retailers C.D.P Installment Security

100 17 40 43

The above graph shows that most of the retailers want to keep deep freezer

on either installment basis or security basis. Only 17% retailers are

interested for cash down payment.

74

Relationship on the basis of:

Retailers Trial basis Long term Short term

100 23 77 0

The above graph shows that the most of the retailers wants to keep

relationship with Amul for long-term basis.

75

(ANALYSIS OF EXISTING AMUL’S OUTLETS)

Do you keep Amul ice cream?

Retailers Yes No

100 90 10

About 90% of the existing Amul outlets are still keeping Amul ice cream.

Due to the lack of proper sales services 10% of the existing outlets are now

switch over to other companies.

76

From where you bought your deep freezer:

Retailers Amul Others100 80 20

Most of the existing outlets purchased deep freezer from Amul. The graph

shows that 80% of the Amul outlets purchased their deep freezer from Amul.

77

Mode of purchase:

Retailers Cash down Installment Security100 74 3 23

The graph shows that the 74% of existing retailers purchased their deep

freezer form Amul by paying cash. Only 23% of the retailers who have their

shops on prime location got deep freezer on security basis.

78

Which pack of ice cream is sold most?

Retailers Cups Cone Fundoo Candies/Bar Family/ Party pack

100 25 30 15 20 10

The graph shows that the most saleable flavor is cone. Party pack and Cups

are also sold in bulks. The flavors that are not sold much are Fundoo and

Candies.

79

At what period of time customers comes in bulk:

Retailers Morning Afternoon Evening Night

100 0 30 50 20

In the evening from 6 p.m to 9 p.m the sale of ice cream reached to its

optimum level. The ice cream is not sale much in the morning period.

80

According to the retailer the flavour has maximum sale:

RETAILER

VANILLA

CHOCOLATE

BUTTER SCOTCH

PINAPPLE/MANGO

KAJU/PISTA

ANJEER/LITCHI

100 25 15 30 15 10 5

The graph shows that the most demanded flavor is vanilla. After that Butter

Scotch gets the position. Anjeer and Litchi are rarely sold in the market.

81

Preference given to attributes:

RETAILERS PRICE MARGIN QUALITY VARIETY PACK. AVALB. TASTE

100 7 23 18 6 17 6 13

The above graph suggests that the quality of Amul ice cream is admired

more. The price and packaging also count. The problem area is the

availability of ice cream. The retailer says that all the flavors are not

available on demand.

82

ONE-WAY ANOVA TEST:

As in our research the number of independent variables are more than two so

here we are using one-way ANOVA. The number of independent variable is

five here. The independent variables are Amul, Kwality,,Mother Dairy,

Cream Bell and Vadilall. The dependent variables are price, margin, quality,

availability, company scheme, flavour, packaging and brand image.

The following data is calculated on the basis of one-way ANOVA with the

of SPSS software. The software gives the result very quickly. We have to

put the independent variable in variance one column and dependent variable

in variance two column. And after giving the right command we can get the

answer.

Here is one of the value for product quality attribute is calculated. The

degree of freedom four is obtained by subtracting one from independent

variable that is five. D.o.f 145 obtained by subtracting five from hundred

fifty dependent variables.

83

149630.593Total

2.167145313.967Within the group

0.0036.55779.1574316.627Between the group

SignificanceFMean squared.o.fSum of squares

COMPARISON OF TABLE VALUE WITH CALCULATED VALUE.

Since the table value is less than the calculated value, so here all the

hypotheses are rejected. It means that, there is a significance difference

between the preferences given by the retailers to the different attributes of

Amul ice cream and its competitors.

84

Criteria Calculated value Table value Acct./Reject.

Prod. Quality 36.557   Rejected

Price 39.355   Rejected

Services 33.522   Rejected

Schemes 29.314   Rejected

Advertisement 30.777   Rejected

Flavor 12.538   Rejected

Packaging 13.334   Rejected

Brand Image 37.340   Rejected

3.32

3.32

3.32

3.32

3.32

3.32

3.32

3.32

85

FINDINGS

After analyzing all the data given by shopkeepers we found certain key

findings that is very important for our project.

1.Most of the retailers are interested for keeping Amul Ice Cream.

2. Retailers are not satisfied with the services provided by the company.

3.Most of the retailers like to keep deep freezer on installment basis and

security basis.

4.Cone and Party packs are sold most.

5.The sale of ice cream is higher in evening.

6.The full varieties of flavor are not available on regular basis.

7. Prices of Amul ice cream are almost as par customers need.

8. Margin in Amul ice cream is very high.

9. People were highly satisfied with product quality of Amul.

10. Although Amul has opened numerous outlets it is seen that distributors

are finding it

difficult to deliver supplies in the stipulated time leading to retailer in

convenience.

86

11. It was found that many deep freezers had developed technical snags and

service

personal was late in rectifying them. This created a negative rapport in

mind of the

retailers.

12. Retailers are unsatisfied with the replacement of unsold Amul ice cream.

13. Distributors could not provide all type of varieties because of less stock.

14. Other companies are providing deep freezers at law security which

attract the retailers

and create threat for HADF scheme.

87

RECOMMENDATION:

1) Relationship with retailers and company should be kept under a close

watch

2) Salesmen should be given the responsibility to handle the retailer’s

grievances

3) Orders by the retailers should be executed in a proper manner to avoid

irregular availability.

4) Low security and easy installment should be given on deep freezer.

5) Promotion activities should take into consideration in two different

ways a) Company should associate themselves with social events, b)

Company should use electronic as well as print media for their

advertisement.

6) Company should give special offers to retailers frequently.

7) Company should expand their business throughout the small towns.

8) Company should open exclusive Amul parlors and outlets in big

shopping mouls for promotion in higher segment.

9) There have been a lot of complaints about replacement policy of Amul.

Amul should try to improve its replacement policy and make it

somewhat liberal.

88

10) Innovative schemes like Priviledge cards giving

discount on successive purchases may be introduced to make a

customer brand loyal to Amul.

89

90

CONCLUSION

There is an ample scope for ice cream making companies do progress in this

lus green environment. The market size is increasing day by day and the

demand for new flavors are arising. The companies like HLL, Cream Bell,

Vadilall, and Mother Dairy are trying to capture more market share with

their new ideas and plan. As per Amul is concern the company should

become liberal on his policies. Amul market share in central Delhi is high

but for maintaining the growth rate it should give the retailers more facilities

for opening of new outlets and running successfully. The company also

needs a proper distribution network for availability of products at demand.

91

REFERENCES

1 BOOKS.

Marketing management by Philip Kotler

Published by Pearson Education Pvt. Ltd, Indian Branch,

12th edition ,

Hunger J.D &Wheelen T.L ,Essentional of strategic

Management ,Prentice-Hall,3rd edition,2004,pp-81-94

Wheelen T.L & Hunger J.D-Concept in strategic Management

& Business policy,Pearson education,9th edition ,2007,pp-135-

145

2 INTERNET.

www.Amul.com

www.google.com

www.indiatimes.com

www.infoline.com

3 MAGAZINES.

India today, April 19, 2009, Page no-36

INSIGHT-The Consumer Magazine, May-June 2009, Page no – 6-12

92

93

Questionnaire (For New Outlet)

CONSUMER DETAILS:

Name:

Address:

Contact Number:

1. Have you ever through of expansion of your business in terms of ice -

cream?

Yes No

If no why

_______________________________________________________

2. If yes, which brand would you like to go for?

i) Amul ii) Kwality iii) Mother Dairy iv) Cream Bell

3. Rank according to your preference.

High Moderate Low

Amul

Kwality

Mother Dairy

Cream Bell

4. What is your preference about following companies on the given

qualities ?(1-5)

Amul Kwality Mother Dairy Cream Bell

i) Price

94

ii) Margin

iii) Quality

iv) Variety

v) Packaging

vi) Availability

5. Would you like to have deep freezer provided by the company

Yes No

6. If No,

why_____________________________________________________

__

7. If yes, then which mode of payment are you looking for.

i) Cash down payment

ii) Installment

iii) Security

8. Would you like to have retailership on?

i) Trial basis

ii) Long term

iii) Short term

Date: Signature:

______________

95

(FOR EXISTING OUTLETS)

Name: ______________________________________

Address: ____________________________________

Contact No. __________________________________

Dear Customer,

This survey is made for the purpose of my Summer Project and doesn’t have

any commercial impact.

1. Do you keep Amul ice cream?

a. Yes b. No

If no than why

________________________________________________

2. How long you are keeping Amul ice cream?

a. Less than six months

b. 6 to 12 months

c. 12 to 18 months

d. more than 18 months

96

3. What is the sales turnover from day one?

a. 1st 6th months__________________

b. between 6 to 1 year______________

c. 1 to 2 year_____________________

d. 2 to 3 years_____________________

4. Form where you brought your deep freeze?

a. from Amul _________

b. other source ( Please specify)_______________________

5. On which basis you procured your Deep Freezer?

a. Cash down payment:___________________________

b. Installment:__________________________________

c. Security:____________________________________

d. Other:______________________________________

6. How many brands you keep?

____________________________________________________________

_

____________________________________________________________

_

7. How many customers are looking for Amul Ice cream (percentage)?

97

1 - 10 10 - 20 20 – 30 30 – 40 40 and above

8. According to which brand of Ice Cream has maximum sales.

Brand Rank Reason

Amul

Kwality wall’s

Vadilal

Mother dairy

Cream bell

9. According to you which flavour of Ice-cream has maximum sales?

Flavour (Rank them at a scale of 1 - 5)

a. Vanilla

b. Strawberry

c. Chocolate

d. Butter Scotch

e. Mango/Pineapple/Orange

f. Kaju/Pista/Kessar

g. Anjeer/Litchi

98

Do you feel color of the Ice Cream affect its demand? Yes No

If ‘Yes’ then which color _________________________

10. Which flavors are mostly preferred under Family/Party Pack?

___________________________________________________

11. Which pack of Ice Cream is most sold? (rank at a scale of 1 - 5)

a. Cups

b. Cone

c. Fundoo

d. Candies/Bar

e. Family/Party Pack

12. Please grade different companies on the following attributes in

context of ice Cream

Scale on the following basis: (5 as Very good and 1 as Very Poor)

Very Good

Good

Normal

Poor

99

Very Poor

Attributes Brand Names

  AmulKwality Walls Vadilal

Mother Dairy

Cream Bell

Product Quality          Price          Service          Schemes          Advertising          Brand Image          Flavors          Packing          

Total          

13. At which period of time customers comes in bulk?

Morning Afternoon Evening Night

14. Any suggestion or observation to bring more sales of

Amul Ice Cream

____________________________________________________________

Date: Signature:

_______________

100

Commercial Terms & Condition

The above price (indicated in col. 2 & 3) are inclusive of Excise Duty

and Sales Tax.

The prices are on FOR basis.

Transportation charges from Dadra to all courier location are included in

the above price.

For other locations delivery will be free upto 20kms. From the nearest

branch of courier.

For outside 20kms, delivery charges will be extra @ Rs. 7/- per km. Up

and down on per unit basis.

All entry tax and octrol if any will be extra as applicable.

The above prices are inclusive of stabilizer prices.

Charges for Five-year warranty are included in the above prices.

100% payment in advance from the retailers in the form of DD

drawn in favour of Voltas Limited – Hyderabad Unit and payable at

Hyderabad for Dadra Billing and at New Delhi for local billing.

101