Amul report

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  • 1.A PROJECT RESEARCH REPORT ON Promotional Scheme of Amul Ice CreamSubmitted in partial fulfillment of the requiments forthe award of the degree of Master of Business AdministratipnSubmitted to:Faculty guide:Submitted By:Seshanvita DasDharmendra kumarGIMT, Greater Noida ROLL: 0909470031MBA 4sem

2. ACKNOWLEDGEMENTThis study even internal part of our MBA program and to do this project in ashort period was a heavy task. Intention, dedication, concentration and hardwork are very much essential to complete any task. But still it needs lot ofsupport, guidance assistance, co-operation of people to make it successful.I bear to imprint of my people who have given me their precious ideas andtimes to enable me to complete the research and the project report. I want tothank 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 LIMTGr. Noida, for giving me an opportunity to write my Dissertation reportunder his guidance and supervision and for all the help and support whichled me complete the project.At last but not least I also thanks to the entire customer interviewed for theirkind co-operation.With Regards Surendra Pal Singh DECLARATION2 3. I, Dharmendra kumar vhereby declares that the project workentitled Promotional scheme of Amul Ice cream is myproject. I have not copied this project. I have worked hardfor this project. Dr. Shruti Gaur was my project guide. Herencouragement, indulgency, and affection made this projecta reality. I have proudly got her guidance in designing thearchitecture 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 CenterDirector:________________________________________________Name of the Learning Institution: - GIMT,Instituteof management& technology- II Greater noida 2013063 4. Abstract:Amul is the largest co-operative movement in India with 2.2 millionmilk producers organized in 10,552 co-operative societies in2003-2004.The countrys largest food company, Amul, is the market leader inbutter, whole milk, cheese, ice cream, dairy whitener, condensedmilk, saturated fats and long life milk.Amul follows a unique business model, which aims at providingvalue for money products to its consumers, while protecting theinterests of the milk-producing farmers who are its suppliers as wellas its owners. Despite being a farmers co-operative, Amul has givenmultinationals a run for their money.In butter, cheese and saturated fats, Amul has remained theundisputed market leadersince its inception in 1955, by offering quality products atcompetitive prices. In other categories, Amul has nullified its latemover disadvantage through aggressive pricing, better quality,innovative promotion, and superior distribution 4 5. TABLE OF CONTENTSList of TableList of FigureCertificateAcknowledgementDeclarationAbstractCHAPTERPAGE NO.Introduction ----------------------------------------6Company Profile-------------------------------- 9Distribution network --------------------------------- 15Executive Summary----------------------------------------41Industry Scenario---------------------------------47Introduction of problem ----------------------------------48About the study ---------------------------------Rationale and Scope ---------------------------------50Objective of the project -----------------------------------52Review OF Literature ----------------------------------54Marketing Mix 4 Ps-----------------------------------58SWOT Analysis------------------------------------60Research Methodology------------------------------------665 6. Project Activity Sequence -------------------------------------71Data Analysis & Finding ----------------------------------------- 74One way ANOVA -----------------------------------89Finding -----------------------------------92Recommendations--------------------------------------------95Conclusions ----------------------------------------------100Bibliography ------------------------------------------------------ 102Annexure ----------------------------------------------103Questionnaire LIST OF TABLE & GRAPHSAnalysis of non existing outlet 82Mode of payment for deep freezer83Relationship on the basis of retailer 84Analysis of Existing Amul outlet85Mode of purchase87Pack of ice cream sold most 886 7. INTRODUCTIONGujarat Cooperative Milk Marketing Federation (GCMMF), one of Indiasgreatest success stories with its Amul brand, is now aiming at a 17-per centgrowth in sales to Rs 3,200 crores this fiscal against sales of Rs 2,746 croresin the previous year ended 31 March 2003.The federation is expecting each of its products to contribute higher salesthis year as new products are being added to each product line.The big hope is not surprisingly the Amul brand of ice creams, which isexpected to contribute Rs 250 crores to the turnover, up from Rs 150 croreslast year. Last year there was a good growth in ice cream, cheese, butter andghee. The company is launching new products in almost every line that arein, with specific stress on ice creams.For its ice cream and milk business, GCMMF has begun investing inincreasing its milk capacity. It recently firmed up plans to invest Rs 100-120crore to expand this from 1.1 million liters a day to 1.8 million litres a day at 7 8. its Gandhinagar factory. The investment will take place over the next twoyears.The cooperative is also planning to expand its production facilities beyondGujarat 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 over10 cities spread over Rajasthan, Madhya Pradesh and Maharashtra.Amul is now focusing on its supply system. Efforts are on to ensure greateravailability of Amul ice-cream at pushcarts and small outlets. The companyfeels 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 STDbooths, local kirana shops, chemists and bakers, who stock the ice-cream indeep freezers.The idea is to ensure visibility and availability, which more often than notensures a sale as ice-cream consumed out of home is most often animpulsive purchase. Amul expects to clock sales of 34 million litres duringthe current year and the accent will be on offering value for moneyproducts.8 9. 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 essentialproteins, vitamins and minerals for the growing children, a cheese ice-creamand a sundae in cone for kids in different variants.Amul ice cream is positioned as real ice-cream made from real milk cream,while HLLs Kwality Walls is made from vegetable oil and its items aredubbed as Frozen Deserts.Last year, Amul ice cream made its entry into New Delhi, Indias biggestice-cream market, where its anti-compete agreement with Mother Dairy hasexpired. Amul has been sourcing its entire ice-cream requirement for thenorthern market (including Delhi) from its own Gandhinagar plan9 10. INDUSTRIESOVERVIEWGujarat Cooperative Milk Marketing FederationGCMMF: An Overview Gujarat Cooperative Milk Marketing Federation (GCMMF) is a Indiaslargest food product marketing organization. It is a state level apex body ofmilk cooperatives in Gujarat, which aims to provide remunerative returns tothe farmers and also serve the interest of consumers by providing qualityproducts, which are good value for money.Members:12-district cooperative milk producers UnionNo. of Producer Members 2.23 millionNo. of Village Societies: 10,852Total Milk handling capacity:6.7 million litres per day10 11. Milk collection (Total - 2001-02): 1.67 billion litresMilk collection (Daily Average 2001- 02):4.59 million litresMilk Drying Capacity: 510 metric Tons per dayCattlefeed manufacturing Capacity:1450 Mts per day 11 12. Sales TurnoverRs. (million) US$ (million)1994-95 11140 3551995-96 13790 4001996-97 15540 4501997-98 18840 4551998-99 22192 4931999-00 22185 4932000-01 22588 5002001-02 23365 5002002-03 27475 575AMUL means "priceless" in Sanskrit. A quality control expert in Anandsuggested the brand name Amul, from the Sanskrit Amoolya, Variants,all meaning "priceless", are found in several Indian languages. Amulproducts have been in use in millions of homes since 1946. Amul Butter,Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, AmulChocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk andAmulya have made Amul a leading food brand in India. (Turnover: Rs. 25 .) 12 13. billion in 2002). Today Amul is a symbol of many things. Of high-qualityproducts sold at reasonable prices. Of the genesis of a vast co-operativenetwork. Of the triumph of indigenous technology. Of the marketing savvyof a farmers organization. And of a proven model for dairy development. 13 14. 50 years after it was first launched, Amuls sale figures have jumped from1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No otherbrand comes even close to it. All because a thumb-sized girl climbed on tothe 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 ofthe current financial year with milk products sales amounting to Rs 1,000crore.GCMMF sold 10.5 crore litres of milk in pouches during April to September1998 under its well-known brand `Amul."GCMMFs financial performance during this period has been even moreattractive with a growth of 25 per cent. However, this wont be reflected inour balance sheet. The multinationals would have shown it as glitteringprofit, but we are working on our mandate of returning any surplus back to