DEEP Final Project

8/2/2019 DEEP Final Project

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A

PROJECT REPORT

ON

Distribution channel of AMUL

At

Gujarat Co-operative Milk Marketing Federation Ltd.

BY:

Deepak.M.Gade

Submitted at

DATTA MEGHE INSTITUTE OF MANAGEMENT

STUDIES, NAGPUR

Company Guide: Faculty Guide:Mr. KEVIN ARAMBHADIYA Mr. SHIVAJI DHAWADEXECUTIVE (SALES) D.M.I.M.S. NAGPURGCMMF LTD NAGPUR


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CERTIFICATE

This is to certify that the project report titled is DISTRIBUTION CHANNEL OF AMUL. a

benefited work of Deepak Gade the student of Master Degree in Business Administration

course of the R.T.M. Nagpur University conducted by our institute.

This report is product of his own work successfully carried out under our guidance during the

academic year 2011-2012, at Amul. In partial fulfillment of the Master Degree in Business

Administration, under Nagpur University.

Project Guide DirectorMr.Shivaji Dhwad Dr. Amishi Arora


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ACKNOWLEDGEMENT

As a trainee, it has been a remarkable experience for my career to be a part of one of anautomobile company. I have been fortunate enough to have a glimpse of working with the

AMUL Nagpur.

In my endeavor to achieve successful completion of my project, I am thankful to number of

people whose help and guidance enabled me to accomplish this project. I am thankful to Mr.

Kevin sir, for giving me an opportunity to work in this organization.

I express my sincere gratitude to my project guide, Mr. shivaji dhawad for constantly guiding me

throughout my training at DMIMS, her advice and suggestion have significantly contributed

towards the completion of this project.

I am equally thankful to all those who have been of a great help for this project at different point

of time and nevertheless their contribution has been immense.

Place: Nagpur (Deepak .Gade)

Date: MBA 4th SEM


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DECLARATION

I Deepak. Gade a student of Datta Meghe Institute of Management Studies, Nagpur hereby

solemnly declare that the project titled distribution channel of Amul. with AMUL is my

original work as all the information, facts and figure procedures in this report is based on my

own experience and study during my final project.

Further I also declare that I have tried my best to complete this project with almost sincerity,

honesty and accuracy. Even then if any mistake or error has found in this, I shall most humbly

request to the reader to point out those error. Any suggestions regarding this project will be most

welcome.

Deepak.M. Gade

DMIMS

Nagpur


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EXECUTIVE SUMMARY

The market research for authorized dealer of amul at nagpur. Was carried out in this year. The

sample for the study was various Amul shops in and distributer of Nagpur city. A sample size of

twenty various shops Amul company and three distributer. The sampling used in this study was

observation and scheduled interviews and questionnaire method.

The objectives of the study were To understand the different level of intensity in

distribution channel and how it will add value to the marketing mix of Amul.

.

The data collected was edited and tabulated for analysis and following conclusions were drawnfrom the analysis.

1. It is found. that Amuls product has a very good quality And its brand-name workpositively for the company.

2.3. Market demand of product is higher but avability of product is not good to distributer

and retailer.

4. The company provides good quality product but profit margin is low for distributer aswell as retailer but it also not bad one

5. 4. There is good potential for AMUL ICE-CREAM in Nagpur city.


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INDEX

Sr. No Topic Page No

1 Introduction

2 Company Profile

3 Research Methodology

Research Objective

Type of Research

Methods of Data Collection

4 Scope Of Study

5 Limitation of Study

6 Conclusion

7 Findings Of The Research

8 Suggestions And Recommendations

9 Bibliography

10 Questionnaires


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INTRODUCTION:

CHANNELS OF DISTRIBUTIONA channel of distribution or trade channel is defined as the path or route along which

goods move from producers or manufacturers to ultimate consumers or industrial users. In other

words, it is a distribution network through which producer puts his products in the market and

passes it to the actual users. This channel consists of: - producers, consumers or users and the

various middlemen like wholesalers, selling agents and Sretailers (dealers) who intervene

between the producers and consumers. Therefore, the channel serves to bridge the gap between

the point of production and the point of consumption thereby creating time, place and possession

utilities.

A channel of distribution consists of three types of flows:-

Downward flow of goods from producers to consumers

Upward flow of cash payments for goods from consumers to producers

Flow of marketing information in both downward and upward direction i.e. Flow of

information on new products, new uses of existing products, etc from producers to

consumers. And flow of information in the form of feedback on the wants, suggestions,

complaints, etc from consumers/users to producers.

An entrepreneur has a number of alternative channels available to him for distributing his

products. These channels vary in the number and types of middlemen involved. Some channels

are short and directly link producers with customers. Whereas other channels are long and

indirectly link the two through one or more middlemen.

These channels of distribution are broadly divided into four types:-

Producer-Customer:- This is the simplest and shortest channel in which no middlemen

is involved and producers directly sell their products to the consumers. It is fast and

economical channel of distribution. Under it, the producer or entrepreneur performs all

the marketing activities himself and has full control over distribution. A producer may

sell directly to consumers through door-to-door salesmen, direct mail or through his own

retail stores. Big firms adopt this channel to cut distribution costs and to sell industrial


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products of high value. Small producers and producers of perishable commodities also

sell directly to local consumers.

Producer-Retailer-Customer:- This channel of distribution involves only one

middleman called 'retailer'. Under it, the producer sells his product to big retailers (or

retailers who buy goods in large quantities) who in turn sell to the ultimate consumers.

This channel relieves the manufacturer from burden of selling the goods himself and at

the same time gives him control over the process of distribution. This is often suited for

distribution of consumer durables and products of high value.

Producer-Wholesaler-Retailer-Customer:- This is the most common and traditional

channel of distribution. Under it, two middlemen i.e. wholesalers and retailers are

involved. Here, the producer sells his product to wholesalers, who in turn sell it to

retailers. And retailers finally sell the product to the ultimate consumers. This channel is

suitable for the producers having limited finance, narrow product line and who needed

expert services and promotional support of wholesalers. This is mostly used for the

products with widely scattered market.

Producer-Agent-Wholesaler-Retailer-Customer:- This is the longest channel of

distribution in which three middlemen are involved. This is used when the producer

wants to be fully relieved of the problem of distribution and thus hands over his entire

output to the selling agents. The agents distribute the product among a few wholesalers.

Each wholesaler distributes the product among a number of retailers who finally sell it to

the ultimate consumers. This channel is suitable for wider distribution of various

industrial products.


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COMPANY PROFILE :

INTRODUCTION AND HISTORY

Type Cooperative

Industry Dairy

Founded 1946

Headquarters Anand,India

Key peopleChairman, Kaira District Cooperative Milk

Producers' Union Limited. (KDCMPUL)

Revenue $2.15 billion (2010-11)

Employees735 employees of Marketing Arm. However, real

pool consist of 2.8 million milk producers
http://en.wikipedia.org/wiki/Anand,_Gujarathttp://en.wikipedia.org/wiki/Anand,_Gujarathttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Anand,_Gujarat


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INTRODUCTION

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest

food product marketing organization with annual turnover (2010-11) US$ 2.2 billion. Its daily

milk procurement is approx 12 million lit (peak period) per day from 15,712 village milk

cooperative societies, 17 member unions covering 24 districts, and 3 million milk producer

members.

It is the Apex organization 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 marketingorganization 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 year2009-10, GCMMF has been awarded "Golden Trophy' for its outstanding export performance

and contribution of dairy product 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 IMC Ramkrishna

Bajaj National Quality Award - 2003 for adopting noteworthy quality management practices for

logistics and procurement. GCMMF is the first and only Indian organization to win topmostInternational 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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GCMMF - An Overview

Year of Establishment 1973

Members17 District Cooperative Milk Producers' Unions (13 Members& 4 Nominal Members)

No. of Producer Members 3.03 Million

No. of Village Societies 15,712

Total Milk handling capacity perday

13.67 Million litres per day

Milk Collection (Total - 2010-11)

3.45 billion litres

Milk collection (Daily Average2010-11)

9.2 million litres (peak 12 million)

Milk Drying Capacity 647 Mts. per day

Cattle feed manufacturingCapacity

3690 Mts. per day

Sales Turnover -(2010-11) Rs. 9774 Crores (US $2.2 Billion)

AWARDS

Amul Bags Srishti G-cube Award For Good Green Governance - 2009

Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit

Ramkrishna Bajaj National Quality Award - 2003

Qimpro Gold Standard Award - 2003

Amul - The Taste Of India (GCMMF) Receives International CIO 100 Award ForResourcefulness

Rajiv Gandhi National Quality Award - 1999
http://www.amul.com/m/amul-bags-srishti-g-cube-award-for-good-green-governance-2009http://www.amul.com/m/amul-pro-biotic-ice-cream-gets-no-1-award-at-world-dairy-summithttp://www.amul.com/m/amul-pro-biotic-ice-cream-gets-no-1-award-at-world-dairy-summithttp://www.amul.com/m/Ramkrishna-Bajaj-National-Quality-Award-2003http://www.amul.com/m/Ramkrishna-Bajaj-National-Quality-Award-2003http://www.amul.com/m/qimpro-gold-standard-awardhttp://www.amul.com/m/international-cio-100-award-for-resourcefulnesshttp://www.amul.com/m/international-cio-100-award-for-resourcefulnesshttp://www.amul.com/m/international-cio-100-award-for-resourcefulnesshttp://www.amul.com/m/rajiv-gandhi-national-quality-award-1999http://www.amul.com/m/rajiv-gandhi-national-quality-award-1999http://www.amul.com/m/rajiv-gandhi-national-quality-award-1999http://www.amul.com/m/international-cio-100-award-for-resourcefulnesshttp://www.amul.com/m/international-cio-100-award-for-resourcefulnesshttp://www.amul.com/m/qimpro-gold-standard-awardhttp://www.amul.com/m/Ramkrishna-Bajaj-National-Quality-Award-2003http://www.amul.com/m/amul-pro-biotic-ice-cream-gets-no-1-award-at-world-dairy-summithttp://www.amul.com/m/amul-bags-srishti-g-cube-award-for-good-green-governance-2009


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THE AMUL MODEL

The Amul Model of dairy development is a three-tiered structure with the dairy cooperativesocieties at the village level federated under a milk union at the district level and a federation ofmember unions at the state level.

Establishment of a direct linkage betweenmilk producers and consumers byeliminating middlemenMilk Producers (farmers) controlprocurement, processing and marketingProfessional management


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The Amul model has helped India to emerge as the largest milk producer in the world. More than13 million milk producers pour their milk in 1,28,799 dairy cooperative societies across thecountry. Their milk is processed in 176 District Co-operative Unions and marketed by 22 StateMarketing Federations, ensuring a better life for millions.


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THE PRODUCTS

Bread spreads

Cheese ranges

UHT milk

Milk powders

Fresh milk

Ice creams

Chocolates

Mithaiee range


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RESEARCH METHODOLOGY

RESEARCH PROCESS

Preliminary Study

Discussion with faculty and company guide

Survey, objectives and questionnaire design

Data Collection

Data Analysis

Presentation of Findings & Recommendation

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the problem. It may be

understood as a science of studying how researchers scientifically. In it we study the various

steps that are generally adopted by a researcher in studying his research problem along with the

logic behind them. It is necessary for the researcher to know not only the research method/

techniques but also methodology. Researchers not only need to know how to develop certain

indices or test, how to calculate the mean, the mode , the median or the standard deviation or chi

square, how to apply particular research technique, are relevant and which are not , and what

would they mean and indicate and why.

We can say research methodology has many dimension and research methods do

constitutes a part of research methodology. The scope of research methodology is wider than that

of research methods. Thus when we talk of research methodology we not only talk of the

research method but also consider the logic behind the method we use in the context of our

research study and explain why we are using a particular method of technique and why we are


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using others so that research result are capable of being evaluate either by the researcher himself

by others. Why a research study has been adopted, why particular technique of analyzing data

has been used and a lot similar other question are usually answered when we talk of research

methodology concerning research problem or also.

RESEARCH INSTRUEMENT

As we know there are two ways of collection of data;

Observation Method

Questionnaire Method and Personal interview

Observation Method:

Under the method the information is sought by way of investigators own direct

observation without asking form the respondent. The main advantage of this method is that of

subjective bias is eliminated, if observation is done accurately.

Questionnaire Method:

This method of data collection is quite popular; particularly in case of big enquiries in

this method a questionnaire is provided to a person concerned with the request to answer the

question and the return the questionnaire. A questionnaire consist of number of printed or type in

definite form or set of forms.

Between this two method best suited for research was questionnaire method. Since in

observation method only the effect can be observed while the case remains unknown.

More ever observation method requires special observational skill on the part of

researcher. Whereas through questionnaire asking to the people who are thought to have the

desired information collects data. Questionnaire is set of question with some space for answer.

The questionnaire for the report consists of open ended, close ended and ranking type of

questions.


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TYPE OF RESEARCH

Exploratory Research is also known as qualitative research. This type of research is used

to discover new relationship. It looks of hypothesis tentative answer to question that solve as a

guide for most research project. The project is also exploratory in nature. I have conducted

research with the help of questionnaire. I have also taken personal interview of different

customers which provided key information about the product, service and goodwill of the

organization. There are different questions in my questionnaire which focused problem solving

seeking objective. This report is prepared on the basis of answer given by various customers.

Types of Research Exploratory Research

Data source Primary Data & Secondary Data

Data collection Techniques Questionnaire Method and Personal Interview.

Contact Method Personal Interview

Sampling ProcedureConvenience Sampling and satisfied Random

Sampling.


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METHODS OF DATA COLLECTION

PRIMARY DATA :-

By observation of distribution channel through dealer, retailer & customer

By Questioner methods

SECONDARY DATA :- From website of Amul, Books & Magazines


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RESEARCH OBJECTIVE :-

To understand the role of distribution channel in the marketing mix of Amul.

To study how distribution channel add value to the marketing mix of Amul.

To understand the different level of intensity in distribution effort.

To understand the type function those distribution channels perform in Amul.

How strong relationship Amul has with the distributors and retailers.

To study Retailer satisfaction from distributor the service


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SCOPE OF STUDY AND ITS UTILITY

The scope of study is limited to Nagpur city. The survey was undertaken only this areas survey

covered the whole Nagpur city that is the full information provided to company. The research

have been undertaken by the researcher is useful to dealer, distributer & company in many ways.

The study is useful in finding the market potential and the total consumption of AMUL in the

city covered during the survey. The study will help the distributer in targeting those shops first

where there is good potential and the selling of is higher. During the study it has been found has

been found that still there are many company what strategy apply for theses area like rated,

quality, schemes, service AMUL decide

It gives information about role of the distribution channel in Amul.

It gives information about the services given by distributor to their retailer.

LIMITATIONS OF STUDY:-

The research was conducted in NAGPUR city, if the research would have been conducted

in other city or over the country, the conclusion would have been different.

The companys rules and regulations didnt allow researcher to go to in depth regarding

some confidential strategies.

Only two months time is very less to know the each and every aspect of marketing

activities.

The instrument used may not be 100 percent accurate.


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DATA ANALYSIS AND INTERPRETATION

QUESTIONNARIE FOR DISTRIBUTER-

Que 1. What are the satisfaction levels of distributer considering followingdetails?

Level of Satisfaction

Deatails Good % Avg % Poor %

Supply of Product 1 33.3 1 33.33 1 33.3

Availability of Product 1 33.3 2 66.67 0 0

Packaging of Product 2 66.7 1 33.33 0 0

Profit Margin 0 0 2 66.67 1 33.3

Varieties of Product 3 100 0 0 0 0

Offers 0 0 1 33.33 2 66.7

Customer Satisfaction 3 100 0 0 0 0

From the survey it reveals that the most of the distributer are not satisfied from the

availability and service of the Amul.

Profit margin provides the average satisfaction to the distributor.

Distributor are well satisfied from the different varieties of Amul product and also a

good number of customers are satisfied from the .

0

0.5

1

1.5

2

2.5

3

Good Avg Poor

Supply of Product

Availability of Product

Packaging of ProductProfit Margin

Varieties of Product

Offers

Customer Satisfaction


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Q.2 Are you satisfied from after purchase service?


Deatails Good % Avg % Poor

Receiving of Order 0 0 2 66.67 1

Time of Delivery 1 33.3 2 66.67 0

Replacement 0 0 1 33.33 2

Billing 2 66.7 1 33.33 0

Response to Complaints 2 66.7 1 33.33 0

Company Representative Visits 1 33.3 2 66.67 0

According to the survey, the receiving of order seems to be good, but time of delivery is average

Distributer is not at all happy with the replacement policy of the company. And responses

to the complaints are also very slow.

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Good Avg Poor

Receiving of Order

Time of Delivery

Replacement

Billing

Response to Complaints

Company Representative Visits


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QUESTIONNARIE FOR RETAILER

1. Reason for retailing particular brand:

(1 is given first priority and 5 last most priority)

Reason to Retail (%)

Reason To Retail

REASOM TO RETAIL

Details 1 % 2 % 3 % 4 % 5 %

Low price 1 5 3 15 7 35 7 35 2 10

Best Quality 7 35 6 30 6 30 2 10 0 0

Profit Margin 0 0 4 20 8 40 6 30 2 10

Higher Verieties 8 40 6 30 5 25 1 5 0 0

Service 1 5 3 15 5 25 7 35 4 20

Market Demand 7 35 6 30 4 20 3 15 0 0Follow up of a company representative 2 10 3 15 6 30 7 35 2 10


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Interpretation of Graph 1 :

On the basis of above chart & graph we can say that majority of Retailer choose Amul as

brand it gives more importance to the Quality of the product plus varieties available in market.

They give less importance to the service & the margin provided by the company to the

retailers.

There are also some retailers who select particular brands because of the company

executive continually follow up them to open a shop.


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2. What are the satisfaction levels of retailers considering following details?

Level of Satisfaction (%)

Level of SatisfactionLevel of Satisfaction

Deatails V. Good % Good % Avg % Poor % V. Poor %

Supply of Product 0 0 3 15 9 45 8 40 1 5

Availability of Product 1 5 3 15 7 35 7 35 2 10

Packaging of Product 4 20 4 20 7 35 4 20 1 5

Profit Margin 0 0 3 15 12 60 4 20 1 5

Varieties of Product 5 25 8 40 6 30 1 5 0 0

Offers 0 0 3 15 6 30 8 40 3 15

Customer Satisfaction 5 25 9 45 5 25 1 5 0 0


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Interpretation of Graph 2 &3

From the survey it reveals that the most of the retailers are not satisfied from the supply

and service of the Amul.

Profit margin provides the average satisfaction to the retailers.

Retailers are well satisfied from the different varieties of Amul product and also a good

number of customers are satisfied from the Amul .


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3. Are you satisfied from after purchase service?


Level of SatisfactionV. Good % Good % Avg % Poor % V. Poor %

Receiving of Order 3 15 5 25 6 30 4 20 0 0

Time of Delivery 0 0 4 20 8 40 6 30 2 10

Replacement 0 0 1 5 2 10 13 65 4 20

Billing 0 0 7 35 13 65 0 0 0 0

Response to Complaints 0 0 2 10 7 35 9 45 2 10

Company Representative Visits 0 0 2 10 4 20 10 50 4 20

Interpretaion of Graph 4

According to the survey, the receiving of order seems to be good, but time of delivery

is not seems okay.

Retailers are not at all happy with the replacement policy of the company. And

responses to the complaints are also very slow.


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CONCLUSION

From survey we came to know that-

The company provides good quality product but profit margin is low for distributer

as well as retailer but it also not bad one.

Market demand of product is higher but avability of product is not good to

distributer and retailer.

The company does not supply product to distributer on time.

The survey shows that company does not provide the good schemes to the retailers

as well as distributer.

The replacement policy of the company is very poor and not good for the retailers.

Distributors do not make delivery of product on time.

Customer happy with the amul product and qulity.


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FINDINGS OF THE RESEARCH

It is found that Amuls product has a very good quality. And its brand-name work

positively for the company.

It is found that the retailers were not happy with service, supply and replacement of

defective product.

Retailers were sell other brands as it give them better margin and better service.

Avability of product to distributer is not good. thats why Distributors does not make

delivery of product on time to retailer.


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SUGGESTIONS AND RECOMMENDATIONS

Amul has a relatively good distribution network, but still company is not able to fulfill the

demand of outlet in the peak season when demand is very high. Here company should

consider on the supply of product in the peak season.

Supply should be regular to all the outlets including those that lie in the pocket roads and

not just in the outlets which lie on the easily accessible routes.

Provide reasonable Margin to retailers as compared to competitors, this motivates them to

promote companys Ice-cream and Dairy products. Improve delivery schedule to provide products on time for the retailers about who claimed

that Amul Ice-cream is not available to them on time.

Incentives & schemes should be given to the retailer.

Provide consistent service to retailers as this will help gain company goodwill in the

market.


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BIBLIOGRAPHY

WEBSITES

www.amul.com

www.wikipedia.org

www.indiadairy.com

www.Google.com

BOOKS

Distribution channels by Julian Dent

Marketing channels by Coughlan Anne T.
http://www.amul.com/http://www.amul.com/http://www.wikipedia.org/http://www.wikipedia.org/http://www.indiadairy.com/http://www.indiadairy.com/http://www.google.com/http://www.google.com/http://www.indiadairy.com/http://www.wikipedia.org/http://www.amul.com/


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QUESTIONNARIE FOR RETAILER

Name retailer

AddressContact.Email

1) State the reason to retail particular brand ?

No Detail Mark

1 Low price2 Best quality3 Profit margin

4 Higher varieties5 service

6 Market demand7 Follow up by company

representative

2) Give your opinion about following factors.

No Detail Mark

1 Supply of product2 Availability of product

3 Packaging of product4 Profit margin

5 Varieties of product

6 Offer /free gifts7 Customer satisfaction


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3) Are you satisfied from after purchase service?

No Detail Mark

1 Receiving order

2 Time of delivery

3 replacement4 billing

5 Response to complaints

6 Market demand7 Follow up by company representatives

4) What is monthly turnover of product?a) In peak season

b) In rainy seasonc) In winter season

5) What is your about company representative?

No Detail Mark

1 knowledge of product2 courteousness

3 Willingness to help4 Efficiency/quickness

5 behavior

6) Overall all opinion about Amul product?

Good B) Better C) Best D) Poor E) Very Poor

DEEP Final Project

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