Amul the Taste of India

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Project report onModern Format Stores at Chandigarh

inGujarat cooperative milk marketing federation ltd.BY: TEENA SAREEN PGDM OF

A report submitted in partial fulfillment of the Requirement of PGDM (2010-1012)

Submitted to:COMPANY GUIDE:Mr. vishal chopra BRANCH MANAGER GCMMF LTD.

FACULTY GUIDE:Mr.Ritu Raj NIILM CMS GREATER NOIDA

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MODERN FORMAT STORE IN GCMMF LTD.

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DECLARATIONI hereby declare that the project report titled Modern format store in Gcmmf ltd. is my own work, to the best of my knowledge and belief. It contains no material previously published or written by another person, nor material, which, to a substantial extent, has been accepted for the award of any other degree or diploma of any other institute, except where due acknowledgement has been made in the text.

Teena sareen Roll No. 2010158 NIILM-CMS, GREATER NOIDA

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Certificate of Completion from faculty Guide

This is to certify that Summer Project Report on "Modern format store in GCMMF LTD. prepared by Teena sareen Roll no.2010158 of PGDBM 2010-2012 Batch is her genuine effort under my guidance and supervision.

Signatures of the Faculty Guide: Name of the Faculty Guide:

Signatures of the Student: Name of the Student:

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ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for Gujart Co-operative Milk Marketing Federation Ltd, CHANDIGARH.It has been an enriching experience for me to undergo my summer training at AMUL, which would not have possible without the goodwill and support of the people around . As a student of NIILM CENTRE OF MANAGEMENT STUDY,I would like to express my sincere thanks to all those who helped me during my practical training program. Words are insufficient to express my gratitude towards Mr. vishal chopra branch manager of AMUL, who helped me at every step whenever needed. I would also like to give my heartily thanks to Mr.surinder Sharma deputy incharge . As we know research work needs hard work, keen insight and long patience with scholarly vision based on content operation hence it becomes a humble duty to express my sincere gratitude to all my faculty members for the proper guidance and assistance extended by them. I am also grateful to my parents, friends, to encourage & giving memoral support. However, I accept the sole responsibility for any possible error of omissionand would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

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PREFACESummer Training is an essential part in PGDBM curriculum. It enables the student to share the real experience in industry. The main objective of practical training at PGDBM level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. My summer training has placed in Gujart cooperative milk market ing federat io n ltd, Chandigarh. My project t it le is Modern format store in chandigarh. This report is mirror of my pract ical work, which I have done during my internship. I have tried to make this report in very cordial manner and I hope readers will sat isfied wit h my project in all ways.

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TABLE OF CONTENTSS.NO CONTENTS 1. INTRODUCTION PAGE NO 5

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RESEARCH METHODOLOGY

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DATA,FINDING &ANALYSIS

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4. 5.

INDUSTRY PROFILE RECOMMENDATION& CONCLUSION BILOGRAPHY REFRENCES Annexur

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6. 7. 8.

37 38 40

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IntroductionAmul 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[1]. 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 [3]. Amul is the largest food brand in India with an annual turnover of US $868 million (2005-06) [4]. 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, 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

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It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL', 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. Its success has not only been emulated in India but serves as a model for rest of the World. It is exclusive marketing organisation of 'Amul' and 'Sagar' branded products. It operates through 47 Sales Offices and has a dealer network of 5000 dealers and 10 lakh retailers, one of the largest such networks in India. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc.GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. Many of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years. For the year 2009-10, GCMMF has been awarded "Golden Trophy' for its outstanding export performance and contribution in dairy products sector by APEDA. For its consistent adherence to quality, customer focus and dependability, GCMMF has received numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality Award in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected Company Award instituted by Business World. In 2003, it was awarded the The IMC Ramkrishna Bajaj National Quality Award - 2003 for adopting noteworthy quality management practices for logistics and procurement. GCMMF is the first and only Indian organisation to win topmost International Dairy Federation Marketing Award for probiotic ice cream launch in 2007. The Amul brand is not only a product, but also a movement. It is in one way, the representation of the economic freedom of farmers. It has given farmers the courage to dream. To hope. To live.

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THREE TIER MODEL OF AMUL

The Amul Model is a three-tier cooperative structure. This structure consists of a DairyCooperative Society at the village level affiliated to a Milk Union at the District level whichin 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 theVillage 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 onlyinternal competition but also ensuring that economies of scale is achieved. As the abovestructure was first evolved at Amul in Gujarat and thereafter replicated all over the countryunder 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.

1. Village Dairy Cooperative Society (VDCS)The milk producers of a village, having surplus milk after own consumption, cometogether and form a Village Dairy Cooperative Society (VDCS). The Village DairyCooperative is the primary society under the three-tier structure. It has membership of milk producers of the village and is governed by an elected Management Committeeconsisting of 9 to 12 elected representatives of the milk producers based on theprinciple of one member, one vote. The village society further appoints a Secretary (apaid employee and member secretary of the Management Committee) for management of the day-to-day functions. It also employs various people for assistingthe Secretary in accomplishing his / her daily duties. The main functions of theVDCS are as follows: Collection of surplus milk from the milk producers of the village & payment based onquality & quantity

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Providing support services to the members like Veterinary First Aid, ArtificialInsemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seedsales, conducting training on Animal Husbandry & Dairying, etc. Selling liquid milk for local consumers of the village Supplying milk to the District Milk Union Thus, the VDCS in an independent entity managed locally by the milk producers andassisted by the District Milk Union.

2.District Cooperative Milk Producers Union (Milk Union)The Village Societies of a District (ranging from 75 to 1653 per Milk Union inGujarat) having surplus milk after local sales come together and form a District Milk Union. The Milk Union is the second tier under the three-tier structure. It has membership of Village Dairy Societies of the District and is governed by a Board of Directors consisting of 9 to 18 elected representatives of the Village Societies. TheMilk Union further appoints a professional Managing Director (paid employee andmember secretary of the Board) for management of the day-to-day functions. It alsoemploys various people for assisting the Managing Director in accomplishing his /her daily duties. The main functions of the Milk Union are as follows: Procurement of milk from the Village Dairy Societies of the District Arranging transportation of raw milk from the VDCS to the Milk Union. Providing input services to the producers like Veterinary Care, ArtificialInsemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seedsales, etc. Conducting training on Cooperative Development, Animal Husbandry & Dairying for milk producers and conducting specialised skill development & LeadershipDevelopment training for VDCS staff & Management Committee members.

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Providing management support to the VDCS along with regular supervision of itsactivities. Establish Chilling Centres & Dairy Plants for processing the milk received from thevillages. Selling liquid milk & milk products within the District Process milk into various milk & milk products as per the requirement of StateMarketing Federation. Decide on the prices of milk to be paid to milk producers as well on the prices of support services provided to members. 3.State

Cooperative Milk Federation (Federation)

The Milk Unions of a State are federated into a State Cooperative Milk Federation. TheFederation is the apex tier under the three-tier structure. It has membership of all thecooperative Milk Unions of the State and is governed by a Board of Directors consisting of one elected representative of each Milk Union. The State Federation further appoints aManaging Director (paid employee and member secretary of the Board) for management of the day-to-day functions. It also employs various people for assisting the Managing Director in accomplishing his daily duties. The main functions of the Federation are as follows: Marketing of milk & milk products processed / manufactured by Milk Unions. Establish distribution network for marketing of milk & milk products. Arranging transportation of milk & milk products from the Milk Unions to themarket. Creating & maintaining a brand for marketing of milk & milk products (brandbuilding). Providing support services to the Milk Unions & members like Technical Inputs,management support & advisory services.

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Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions. Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk Unions. Arranging for common purchase of raw materials used in manufacture packaging of milk products. Decide on the prices of milk & milk products to be paid to Milk Unions. Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity required for the same. Conduct long-term Milk Production, Procurement & Processing as well as Marketing Planning. Arranging Finance for the Milk Unions and providing them technical know-how.

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ACHIEVEMENT:Amul :Asia s largest dairy co-operative was created way back in1946 to make the milk producer self-reliant and conduct milk- business with pride. Amul has always been the trend setter in bringing and adapting the most modern technology to door steps to rural farmers. Amul created history in following areas: a)First selfmotivatedand autonomous farmers organization comprising of more than 5000000 marginal milk producers of Kaira District. b) Created Dairy co-operatives at village level functioning with milk collection centres owned by them. c) Computerized milk collection system with electronic scale and computerized accounting system. d)The first and only organization in world toget ISO 9000 standard for its farmersco- operatives. e)First to produce milk from powder from surplus milk. Amul is the live example of how co-operation amongst the poor marginal farmers can provide means for the socio-economic development of the under privileged marginal farmers.

Amul in abroad:Amul is going places. Literally. After having established its presencein China, Mauritius and Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), India s largest milk cooperative, is waiting to flood the Japanese market. Then, GCMMFis also looking at Sri Lanka as one of its next export destinations. Amul products are already available on shelves across several countries, including the US, China, Australia, West Asian countries and Africa. GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include

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

PLANTSFirst plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk.

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite.

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Third plant is at Kanjari, which produces cattelfeed.

Fourth plant is at Khatraj, which engaged in producing cheese.

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Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.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] SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGYOBJECTIVE OF THE RESEARCH To know the relationship of sales with the advertisement . To know which advertisement tool is mostly preferred by people. To determine the preference levels of various customers and the kind of milk they are buying. To determine the various factors influencing buying decisions. To determine the expectations of customers from the company . To determine the satisfaction level of the milk and services provided by Amul in Chandigarh. To study post purchase behavior. To study satisfaction level. To study post purchase behavior. To study store influences. Analyse the type of store preferred- retail or general.

RESEARCH DESIGNThe study was both an exploratory and descriptive in nature. Firstly, exploratory study was conducted to find out basic information regarding store attributes. The exploratory study was helpful in formulating hypothesis & also in assessing how consumers make decision about the specific retail type for buying goods. After carrying out the exploratory research,descriptive study was carried out to identify the factors or variables so to understand the determinants of store loyalty. Exploratory research-

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Exploratory research seeks to discover new relationship, emphasison discovery of ideas.Marketing researches devote a significant portion of their work onexploratory studies when very little is known about the problem being examined. Conclusive studiesConclusive studies attempts to determine the frequency with whichsomething occurs or the relationship between two phenomenons.Usually conclusive studies assume certain under underlyingcharacteristics of the market or have some precise statement of research questions/hypothesis. RESEARCH INSTRUMENT USED - DETAILS & WHY? If one wants to know what type of dentifrice people use, what theythink of, television commercials, or why they buy particular brandsof cars, the natural procedure is to ask them. Thus, thequestionnaire method has come to be the more widely used of thetwo data collection method. Many consumers are now familiar withthe telephone caller who greets them with We are making asurvey , and then proceeds to ask a series of questions. Some interviews are conducted in person, others by telephone, and othersby mail. Each of these has its special advantages and disadvantages and limitations. The questionnaire method in general, however, hasa number of pervasive advantages and disadvantages. Discussion of particular variations will be more meaningful if these characteristicsof the general methods are brought out first.A questionnaire consists of list of questions to be asked from therespondents and the space provided to record the answer /responses. Questionnaire can be used for the personal interviews,focus groups, mails and telephonic interviews. The choice amongthese alternatives is largely determined by the type of informationto be obtained and by the type of respondents from whom it is to be obtained. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to question, written or oral. Questionnaire in the project consists of:

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Multiple choice questions Dicthomus Multiple choice questions: Questions of this type offer the respondents an alternative to choosethe right answer among others. It is faster, time saving and lessbiased. It also simplifies the tabulating process. DICTHOMUS: These are the questions which are Boolean in nature. These answersare straightforward and respondents have to answer them in astraight way. That means the answer can only be either Yes or No .

SAMPLE DESIGNThe sampling design used was area and convenience sampling, which is a probability and non-probability sampling method. The convenience factors were the availability and approachability of the respondents. The area sampling involves in study of the geographical subdivisions

populationAll types of outlets that stock and sell food products in the markets. The outlets have beenclassified as followsBakery shops Sweets shop General store Departmental store

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PLACES OF STUDYThe study was conducted in the retail outlets in and around chandigarh in the following areasSector 17 Sector 7 Sector 8 Sector 37 Sector 38 Sector 19-c Sector 34-c Sector 44-c

SAMPLING1. 2. 3. 4. 5. 6. 7.sampling technique is: Convenience Sampling Sampling unit: people who buy grocery stores including modern format store. sampling size: 120 respondents(age ranging between 5 yrs to 75 yrs) method questionnaire :direct interview through data analysis method: graphical method area of survey: Chandigarh Timing of survey:10:30 am to 4:30 pm.

Limitations of the researchNon-cooperative approach and rude behaviour of the respondents. Sometimes it is difficult to collect the information due to rainy season. Sometimes retailers hesitate to give full information in fear of losing their business. Limited time available for interviewing the respondents. As aresult of this it was not possible to gather full information aboutthe respondents. When I interviewed children and teenagers, sometimes theyuse togive answers under the influence of their parents or elders.

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As summer training is going under summer season so sometimes people are less interested in filling up questionnaire.

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DATA, FINDING & ANALYSIS

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Analysis&interpretation ofdataType of Outlet visited? Type of Bakery shop outlet No of 10 outlet Sweet shop General store 10 20 Departmental total store 10 50

depatmental store general store sweet shop bakery shop 0 5 10

10 20 10 10 15 20 25

The following table show that out of 50 outlets surveyed; there were 10 bakery shop,10 sweet shop,20 general store and 10 departmental store. 1.what kind of ice cream do you eat? (a)branded 95% (b)non branded 5%5%

BRANDED 95% NON BRANDED

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INFERENCE95% respondents in the region of chandigarh consume Branded ice cream, while 5% still consume non branded. 2. what ice cream flavour do you like? (a)vanilla 20% (b)butterscotch 25% (c)strawberry 10% (d)other 55%

20% 55% 25% 10% vanilla butterscotch strawberry other

INFERENCE- The above diagram suggest that the most preferred form is other i.e.55%, followed by vanilla i.e. 20%, are all time favorites with25% while other forms are preferred to the extent of 10%. 3.Do you aware about amul kool milk? a)yes 35% (b)no 65%

35% yes no 65%

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InferenceThe chart shows that 35% respondents have aware Amul kool milk,while still 65% have not tried Amul kool milk. 3.By which media you prefer to watch advertisement ? (A) television 67% (b)newspaper25% (c)magazines 5% (d)others3%

5%

3% television newspaper 67% magazines other

25%

InferenceMostly people like to watch an advertisement through Television because most of them belongs to service class. Children are getting attracted through advertisement on television and hoardings.Company tries to give attractive advertisement through T.V. and hoardings because advertisement through hoardings is less costly.

4. What is the frequency of purchasing ice cream? (a)daily 25% (b)weekly30% (c)occasionally55%

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25% daily 55% 30% weekly occassionally

InferenceThe frequency of ice cream differ a lot where 25% respondents buy it daily, 30% weekly, and there is a Hugh chunk of people who buy chocolate occasionally. 5.which company ice cream do you like most? (a)amul 65% (b)kwality walls 15% (c) vadilal 20%

(d)mother dairy2% (e)others13%

2% 20%

13% amul kwality walls 65% 15% vadilal mother dairy other

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InferenceWe can clearly gauge from the pie chart that amul being on thetop slot with 65% market share dominates the icecream market,followed by kwality walls with 20% share, whereas mother dairy have only 2%market share and thus lags behind.

6.which flavour do you prefer most? (a)rose20% (b)mango15% (c)elaichi40% (d)kesar25%

25%

20% rose 15% mango elaichi 40% kesar

InferenceThe above diagram suggest that the most preferred form is elaichi i.e.40%, followed by kesar i.e. 20%, rose are all time favorites with25% while other forms are preferred to the extent of 15%.

7. which other brand do you buy? (a)Amul lasse 40% (b)Amul butter milk 10%

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(c) Amul milk shake 5% (d)other product 45%

45%

40%

AMUL LASSE AMUL BUTTER MILK AMUL MILK SHAKE

5%

10%

OTHER PRODUCT

INFERENCE The above diagram suggest that the most preferred form is amul lasse i.e.45%, followed by other product i.e. 40%, are all time favorites with10% while other forms are preferred to the extent of 5%. 8.Give your rating to following attributes of amul product?

ATTRIBUTE (a)PRICE (b)PACKAGING (c)QUALITY (d)BRAND IMAGE (e)AVAILABILITY

VERY GOOD

GOOD

AVERAGE

BELOW

07% 37% 46% 55% 50%

23% 12% 20% 20% 23%

22% 18% 14% 20% 15%

48% 33% 20% 10% 12%

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Finding of the studyAs per the analysis the following outcome may be considered-: Amul is available in maximum outlets in the comparison of the competitor products. Lack of Awareness in consumers. Many people are not knowabout Amul kool milk specially children and teenagers. There is lack of Sales PromotionalActivities i.e. free tattoo,extra weight, toys, quiz contest etc. People who have taste Amul Chocolate are not ready topurchase the same again. amul is available in maximum outlets in the comparison of other local brand. there is sufficient demand in the market for Amul milk but due to improper distribution company not able to fulfil demand which results decrease in sale. factors that influence the retailers stocking decision: Consumer preference Distribution in supplying the products regularly Promotional strategies Margins Replacement Packaging of the product the concern of distribution channel , most of the retailers agree that Amul has good distribution channel. I find the main thing is that Amul brand name has very goodimage in consumer s mind and they consider it as Pure &Good Product.

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INDUSTRY PROFILE

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INDUSTRY PROFILEFOOD INDUSTRY The food industry is the complex, global collective of diverse businesses that together supply much of the food energy consumed by the world population. Only subsistence farmers, those who survive on what they grow, can be considered outside of the scope of the modern food industry. The food industry includes: y Regulation: local, regional, national and international rules and regulations for food production and sale, including food quality and food safety, and industry lobbying activities y Education: academic, vocational, consultancy y Research and development: food technology y Financial services: insurance, credit y Manufacturing: agrichemicals, seed,farm machinery and supplies, agricultural construction, etc. y Agriculture: raising of crops andlivestock, seafood y Food processing: preparation of fresh products for market, manufacture of prepared food products y Marketing: promotion of generic products (e.g.milk board),new products, public opinion, through advertising, packaging, public relations, etc y Wholesale and distribution: warehousing, transportation, logistics y Retail: supermarket chains and independent food stores, direct-toconsumer, restaurant, food services. ADVANTAGE OF INDIA UNDER FOOD INDUSTRY: y India is one of the largest food producers in the world. y India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for foodprocessing companies

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y

y y y y y y

y y

Investment requirement of around US$ 15 billion exists in the food processing sector India is looking for investment in infrastructure, packaging and marketing India has huge scientific andresearch talent pool. A largely untapped domestic market of 1000 million consumers 300 million upper and middle class consume processed food 200 million more consumers expectedto shift to processed food by 2010 Well developed infrastructure and distribution network Rapid urbanization, increased literacy, changing life style, increased number of women in workforce, rising per capita income-leading to rapidgrowth and new opportunities in food and beverages sector 50 per cent of household expenditure by Indians is on food items Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia)

Under the food industry, Dairy productis very important part offood processing. Dairy processing is acting good role in India.

Dairy ProcessingIndia ranks first in the world in terms of milk production. Indian production stands at 91 million tones growing at a CAGR of 4 per cent. This is primarily due to the initiatives taken by the Operation flood programmes in organizing milk producers into cooperatives; building infrastructure for milk procurement, processing and marketing and providing financial, technical andmanagement inputs by the Ministry of Agriculture and Ministry of Food Processing Industries to turn the dairy sector into viable self-sustaining organized sector. About 35% of milk produced in India is processed. The organized sector (large scale dairy plants) processes about 13million tones annually, while the unorganized sector processes about 22million tones per annum. In the organized sector, there are 676 dairy plants in the Cooperative, Private

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and Government sectors registered with the Government of India and the state Governments. India has aunique pattern of production, processing and marketing/consumption of milk, which is not comparable with any large milk producing country. Approximately 70million rural households (primarily, small andmarginal farmers andlandless labourers ) in the country are engagedin milk production. Over 11 million farmer are organized into about 0.1 million village Dairy Cooperative Societies (DCS)(about 110 farmers per DCS). The cumulative milkhandled by DCS across the country is about 18 million kg of milk per day. These cooperatives form part of a national milk grid which links the milk producers through out India with consumers in more than 700 towns and cities bridging the gaps on account of seasonal and regional variations in the availability of milk. The Ministry of food Processing Industries is promoting organized Dairy processing sector to accomplish upcoming demands of processed dairy products andhelping to identify various areas of research for future product development and quality improvement to revamp the Indian dairy export by way of providing financial assistance to the dairy processing units. 32 Units have been sanctioned financial assistance (Rs.591 lakhs) under the plan scheme of the Ministry during the year 2006-07.

Major Indian and Overseas Players in the Food industryy ITC Limited Parle Products Pvt. Ltd. y Agro Tech Foods Amul Perfetti India Ltd. y Cadbury India Ltd. PepsiCo y India Holdings Nestle India Pvt. Ltd. y Britannia Industries Ltd. y Hindustan Uni Lever Limited y MTR foods limited y Godrej industries Limited

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RECOMMENDATIONSIn order to maintain and increase the sales in the city of chandigarh, the following recommendations regarding Amul product; particularly regarding advertisement, distribution,promotional policies, etc, are hereby suggested: Company should use brand ambassador which attracts eachage segment i.e. Saniya Mirza, Shaktimaan, Amitabh Bacchan,Superman, Krrish, Jadoo etc . Amul should give local advertisements apart from theadvertisements given at the national level. Local advertisement must mention the exclusive Amul shops of the city. Company should introducesales promotion schemes likefree weight, pranky, tattoo, contest, free gifts etc. Advertisement can be done with the help of animations thatattracts children and teenagers because chocolates areconsumed largely in this segment. Discount is also a importantfactor of stocking decision for retailers. So, company should give discount to all retailers for influencing the stocking. Only fresh product should be supply in the outlet. The main cause of the supply of fresh product is that customer always wants fresh product. They don t want to take 3 or 4 days old product. The Company has to evaluate the performance of distributors regularly to make thedistributors channel effective. Company should give proper instructions to distributors about packaging, expiry date before selling them to retailer. Company should also give the replacement offer to that outlet which is running withsmall business.

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Company has to focus on 4P s of marketing mix (Product, Place, Price, and Promotion)in which promotion & place are two major factors where the company is lagging behind. Credit is the 2nd biggest factor that influences the penetration of the product into the retail outlet. So company should give the credit to all outlets. Try and change the perception of the people throughword of mouth about Amul in advertisements, because they are thebest source to reach Children and families. Credit is the 2nd biggest factor that influences the penetration of the product into the retail outlet. So company should give the credit to all outlet. Company should launch chocolates,curd in new flavors like Mix Fruit Pineapple Elaichi Strawberry Banana

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CONCLUSION

Amul is very big organization andmarket leader in dairy products. It has maximum market share inMilk, Butter and Cheese, which are its main/core products. As weknow Amul is a co-operative organisaion but chocolate industry is aprofitable industry we can t ignore it. With the help of research,company can find out its week points in chocolate product and canincrease its market share through rectify mistakes. People havebelieved in Amul s product and they will accept its chocolates also if effective actions were taken.

The survey resulted into following conclusions:Amul is lagging behind in proper use of 4P s of marketing mix (Product, Place,Price, and Promotion) As Amul is the oldest brands of our country, consumer always 1st asks for the Amul products if it s not available then it shift to other brands this shows thecustomer loyalty towards the brand. For all the companies distribution channel is the backbone. Amul has its gooddistribution channel but from time to time company has to evaluate its distributorsto make the distribution channel effective. Amul must come up withnew promotional activities suchthat people become aware about Amul Chocolates like Chocozoo, Bindaaz, and Fundoo. Amul is the co-operative society so it s for the people (farmers), to the people(consumers), by the people (management). In comparison to Amul Chocolate,the otherplayers such as Cadbury,nestle provide better availability and give competition to the hilt.

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WEBLIOGRAPHYwww.amul.comwww.amuldairy.com www.google.com www.dairy.com www.marketresearch.com

BIBLIOGRAPHYNaresh K Malhotra., Marketing Research An Applied Orientation 4th Edition, Pearson Education Pvt.Ltd, New Delhi, 2003. C.R.Kothari- Research Methodology, New Age International (P) Limited, New Delhi 2007.

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REFERENCESAjith Paninchukannath, Organized Supermarkets of South India Indian Journal of Marketing May 2008 David L Laudon, Albert J Della Bitta Consumer Behavior Dr. C P Gupta, Mitali Chaturvedi Retailing: An Emerging Trend in India- Indian Journalof Marketing June 2007 Gitanjali Bhatnagar Retail Revolution- Indian Journal of Marketing November 2004 Henry Arsael- Consumer Behavior and Marketing Action K Ambarish Kumar In-Store Influences on Shoppers P.U.Management Review Zeithaml V (1988), Consumer Perception of Price, Quality and Value: A Means-End Model and Synthesis of Evidence , Journal of Marketing, Vol. 52 (July)68

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ANNEXURE QUESTIONNAIRE FOR CUSTOMER CUSTOMER NAME: ADDRESS: OCCUPATION: CONTACT NO: 1.what kind of ice cream do you eat? (a)branded[ ] (b)non-branded[ ] AGE:

2.what ice cream flavour do you like? (a)vanilla[ ] (b)butterscotch[ ] (c)strawberry (d)other 3.Do you aware about amul kool milk? (a)yes[ ] (b)no[ ] 3.How did you come to know about Amul kool milk ? (a) By friends [ ] (b) By relatives[ ]

(c)By shopkeepers[ ] (d)By advertisement[ ] (E)others[ ] 4.By which media you prefer to watch advertisement ? (A) television (b)newspaper (c)magazines (d)others

5.What is the frequency of purchasing ice cream? (a)daily[ ] (b)weekly[ ] (c)occasionally[ ]

6.which company ice cream do you like most? 43

(a)amul [ ] (b)kwality walls[ ] (c) vadilal[ ] (d)mother dairy[ ] (e)others[ ]

7.which flavour do you prefer most? (a)rose[ ] (b)mango[ ] (c)elaichi[ ] (d)kesar[ ] 8.which other brand do you buy? (a)Amul lasse [ ] (b)Amul butter milk[ ]

(c) Amul milk shake[ ] (d)other product[ ] 10.which brand do you like most? (a)amul lasse[ ] (b)amul milk shake[ ] (c) amul butter milk [ ] (d)amul kool cafe[ ] (e)other[ ]

11.Give your rating to following attributes of amul product? ATTRIBUTE (a)PRICE (b)PACKAGING (c)QUALITY (d)BRAND IMAGE (e)AVAILABILITYTHANK YOUVERY GOOD GOOD AVERAGE BELOW

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