Final Amul Project.docx

8/10/2019 Final Amul Project.docx

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A PROJECT REPORT ON

IMPACT OF BTL ACTIVITY ON CONSUMERS

OF DAIRY PRODUCTS IN SOUTH MUMBAI

PROJECT REPORT SUBMITTED BY

Shaikh Raihan Alam Mohd Jaish

UNDER THE GUIDANCE OF

MR. PRAKASH AUTE

ZONAL INCHARGE, MUMBAI


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CERTIFIC TE

This is to certify that the project reported titled IMPACT OF BTL ACTIVITY

ON CONSUMER BEHAVIOROF AMUL INDIAwhich is being submitted

herewith for the award of MASTER IN MANAGEMENT STUDIES

(Marketing), Mumbai is the result of the original research work completed by

HANSEL HILLARY DSILVAunder my supervision and guidance and to the

best of my knowledge and belief the work embodied in this Project Report has not

formed earlier the basis for the award of any degree or similar title of this or any

other University or examining body.

PLACE: MUMBAI

DATE: 30/09/14


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DECLARATION

I, the undersigned, hereby declare that the Project Report titled IMPACT OF

BTL ACTIVITY ON CONSUMER BEHAVIOR AT MUMBAIwritten and

submitted by me to the University of Mumbai, in partial fulfilment of the

requirement for the award of Master in Management Studies is my original

work and the conclusions drawn therein are based on the material collected by

myself.

Place: Mumbai

Date: 30/09/14


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AKNOWLEDGEMENT

It has been great pleasure for me to work as a summer trainee in an esteemed

organization like Amul India, which made me aware of the culture followed in the

organization and gave me a great exposure.

The project work has been made possible through direct and indirect co-operation

of various persons for whom I wish to express my appreciation and gratitude. I

shall remain grateful to Mr.Tejas Ramnathkar for his incisive support and objective

guidance during the project. I am also grateful for the kind co-operation and

guidance provided by Prof. Swati Iyengar and our Director Mr. S.K.

Ramakrishnan without which the project could not have been completed

successfully.

Once again I express my gratitude to Branch manager Thane MMO Mr.

Mangesh Yadav for their kind co-operation.

Last but not the least I thank my parents and friends who gave me moral support

throughout.

Thank to you!!

Place: Mumbai

Date: 30/09/14


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EXECUTIVE SUMMERY

This project report is to study the impact of below the line activities on consumers

of dairy products in South Mumbai. Herein expert interviews were conducted with

officers of GCMMF ltd (AMUL) to study the current milk market in Mumbai.

Further a survey of retail outlets was conducted with 362 outlets from different

categories, to collect information on sales of AMUL products under fresh product

division and study the penetration of AMUL distribution network. From the data

collected in this survey, it was interpreted that AMUL FPD has a good retail

penetration of 84% with a market share of 48% under pouch milk.

From the above study it was found that the sales of AMUL masti dahi in pouch has

poor sales, hence it was decided to conduct a BTL activity in selected outlets to

study the impact of this activity on consumers buying behavior. An FGD was

conducted to frame the parameters for judging the consumer behavior for buying

dahi.

The BTL activity was conducted at 35 selected outlets for a period 3 days/outlet

and the data collected was analyzed using SPSS paired sampled T test, it was

interpreted that the alternative hypothesis is accepted i.e. there was a significant

impact of BTL activities on sales of pouch dahi in South Mumbai.


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Table of contents

Sr. No Topic Page No.

1 Executive Summary 5

2 Introduction 7

3 Literature Review 9

4 Company Profile 10

5 Product Profile 16

6 Objectives 21

7 Research Design 22

8 Research Methodology 24

9 Results and Discussion 27

10 Conclusion 38

11 Finding 39

12 Suggestion 40

13 Reference 41


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Introduction

The milk industry in India has been on a sturdy path of progression since Indian

independence. The milk production of India has grown from 17 million tonnes

(1951) to 127 million tonnes (2012). Today, India is the worlds largest milk

producer; accounting for more than 17% of the worlds total milk production. The

capita milk availability is around 290 g per day. India has the largest cattle (185.2

million, 2.1 kg dairy yield/animal and contributed 38% of total milk production)

and buffalo population (97.9 million, 2.6 kg dairy yield/ animal and contributed

54% of total milk production) total population in the world. More than 67 percent

of dairy animals are owned by marginal and small farmers. Interestingly, buffalo

milk accounts for the largest share of the total milk produced in the country. The

pricing policies totally based on fat contains, hence buffalo milk offers higher

profit margins as compared to cow milk.

Milk production is growing 7% by volume and app. 5% by value. This progress is

primarily attributed to structural changes in the Indian dairy industry (IDI) brought

about by the advent of dairy cooperatives. A market size of IDI was USD 48.5

billion in 2011. With a Compound Annual Growth Rate (CAGR) of 16 percent,

India represents one of the worlds most lucrative dairy markets. Driven by a

strong growth in both urban and rural demands, the market for milk products in

India is expected to surpass US$ 163 Billion by 2017. The market size of milk andmilk products (organized and non organized) is estimated about INR 0.036 Lakh

Billion. The organized sector dairy market is growing 10% annually. About 50%

of total milk produced in India is converted into Traditional Indian Dairy Products

(TIDP).


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Milk Production in India

Milk production in India

Year Production (Million Tonnes) Per Capita Availibilty

(gms/day)

2008-09 112.2 266

2009-10 116.4 273

2010-11 121.8 281

2011-12 127.9 290

2012-13 132.4 NA


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Literature Review

Indian milk Sector

Indian milk sector has made remarkable progress over the last few decades. The co-operative

movement, especially operation flood has been important driver of this progress and has played

an important role in facilitating the participation of smallholders in the expanding sector.

Although the share of organized market steadily increases over the last three decades, the

informal sector compromising middlemen, private milk traders and direct sale from producer to

consumer, still accounts for nearly 80 percent of marketed milk and milk products in the country.

India ranks first in the world in milk production , which has gone up from 53.9 million

tonnes in 1990- 1991 to 127.9 million tonnes in 2012-13. This represents sustained growth in the

availability of milk and milk products for the growing population of the country, apart from

being an important secondary source of income for rural families.Milk production across India

has grown at a rate of about 19 per cent during the five-year period of 2006-10 and crossed

121 million tonnes (mt) as of 2010-11.

However, despite being the largest milk producer in the world, per capita milk availability in

India at 252 grams falls below the global average of 279 grams per person per day, according to

a study titled Unlocking the growth potential of Indian dairy industry, conducted by The

Associated Chambers of Commerce and Industry of India. Andhra Pradesh (AP) recorded the

highest growth rate of over 41 per cent and about 36 per cent in terms of milk production and

per-capita milk availability. The state ranked third in terms of annual milk production with over

1.1 mt. Apart from AP, Rajasthan (28 per cent), Kerala (24.8 per cent), Karnataka (24 per cent)

and Gujarat (23.7 per cent) are amid the top five states in terms of clocking high growth in milk

production.

It is imperative for Indias dairy industry to streamline its value chain processes and integrate

the small dairy producers into the processing value chain to improve the overall performance of

the industry. Growing at a compound annual growth rate (CAGR)of over four per cent, milk

production in India is expected to rise to about 177 mt by 2019-2020 and that would help in
http://www.business-standard.com/search?type=news&q=Milk+Productionhttp://www.business-standard.com/search?type=news&q=Milk+Productionhttp://www.business-standard.com/search?type=news&q=Cagrhttp://www.business-standard.com/search?type=news&q=Cagrhttp://www.business-standard.com/search?type=news&q=Milk+Production


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meeting the projected demand of 150 mt by 2016-17.

COMPANY PROFILE

Dairy co-operatives account for the major share of processed liquid milk is around 20%. There

are 170 milk producers co-operative unions spread across 22-states cooperative dairy federation.

Dairy sector has developed through co-operative in many parts of the country.

India contributes to world milk production rise from 12-15% and increasing. India leads amongst

the worlds major milk producing countries. In India the leading brands in Milk and Dairy

Industry is Amul (Anand Milk Union Limited). It is situated in the Kaira district of Gujarat, India

Derived from the Sanskrit word "Amulya," Amul mean valuable. Formed in 1946, it is a brand

name managed by an Indian cooperative organization, Gujarat Co-operative Milk Marketing

Federation Ltd. (GCMMF), which today is jointly owned by 3.03 million milk producers

in Gujarat, India.

Beginning of Amul is based inAnand,Gujarat and has been a success of example cooperative

organization. Amul spurred the Revolution in India which in turn made India the largest

producer of milk and milk products in the world. It is also the world's largest vegetarian cheese

brand .Amul is the largest food brand in India and world's largest pouched milk brand with

annual turnover of US $2.2 billion (2010-11). Currently Unions making up GCMMF have 3.1

million producer members with milk collection average of 9.10 million litres per day.

Besides India, Amul has entered overseas markets suchMauritius,UAE,USA,Oman,Banglades

h,Australia,China,Singapore,Hong Kong and a fewSouth African countries. Its bid to

enterJapanese market in 1994 did not succeed, but it plans to venture again.Dr. Verghese

Kurien,former chairman of the GCMMF, is recognized as a key person behind the success of

Amul. On 10 Aug 2006Parthi Bhatol,chairman of the Banaskantha Union, was elected

chairman of GCMMF.

At 5% level of significance the value is 0.05 and the observed value is 0.00 which is less

than our value. Hence we reject out null hypothesis and conclude that there is significance

difference of BTL activities on sales of pouch dahi.
http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Anand,_Gujarathttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Mauritiushttp://en.wikipedia.org/wiki/UAEhttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/Omanhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/Japanese_peoplehttp://en.wikipedia.org/wiki/Dr_Verghese_Kurienhttp://en.wikipedia.org/wiki/Dr_Verghese_Kurienhttp://en.wikipedia.org/wiki/Parthi_Bhatolhttp://en.wikipedia.org/wiki/Parthi_Bhatolhttp://en.wikipedia.org/wiki/Dr_Verghese_Kurienhttp://en.wikipedia.org/wiki/Dr_Verghese_Kurienhttp://en.wikipedia.org/wiki/Japanese_peoplehttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Omanhttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/UAEhttp://en.wikipedia.org/wiki/Mauritiushttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Anand,_Gujarathttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brand


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Sales Turnover of last five years:

Sales Turnover Rs. (crores)

2008-09 67113

2009-10 80053

2010-11 97742

2011-12 116680

2012-13 137350

2013-14 181434


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The Origin

TheKaira District Co-operative Milk Producers' Union was registered on December 01, 1946 as

a response to exploitation of marginal milk producers by traders or agents of existing dairies in

the small town namedAnand (inKaira District ofGujarat). Milk Producers had to travel long

distances to deliver milk to the only dairy, thePolson Dairy in Anand. Often milk went sour as

producers had to physically carry the milk in individual containers, especially in the summer

season. The prices ofbuffalo and cow milk were arbitrarily determined. Moreover, the

government at that time had given monopoly rights to Polson Dairy to collect milk from Anand

and supply it to Bombay city in turn. Angered by the unfair and manipulative trade practices, the

farmers of Kaira District approachedSardar Vallabhbhai Patel (who later became the first

Deputy Prime Minister and Home Minister of free India) under the leadership of the local farmer

leaderTribhuvandas Patel.Sardar Patel advised the farmers to form a Cooperative and supply

milk directly to the Bombay Milk Scheme instead of selling it to Polson (who did the same but

gave low prices to the producers).[12]

He sentMorarji Desai (who later became Prime Minister ofIndia) to organize the farmers. In 1946, the farmers of the area went on a milk strike refusing to

be further oppressed. Thus the Kaira District Cooperative was established to collect and process

milk in the District of Kaira in 1946. Milk collection was also decentralized, as most producers

were marginal farmers who were in a position to deliver, at most 1-2 litres of milk per day.

Village level cooperatives were established to organize the marginal milk producers in each of

these villages.

The Cooperative was further developed and managed by Dr.Verghese Kurien along with Mr.

H.M Dalaya. Dr.Kurien, aWorld Food Prize andMagsaysay Award winner, was the pioneer of

thisWhite Revolution. The first modern dairy of the Kaira Union was established at Anand.

Indigenous research and development and technology development at the Cooperative had led to

the successful production of skimmed milk powder from buffalo milk for the first time on a
http://en.wikipedia.org/wiki/Kaira_District_Co-operative_Milk_Producers%27_Unionhttp://en.wikipedia.org/wiki/Anand,_Gujarathttp://en.wikipedia.org/wiki/Kairahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/w/index.php?title=Polson_Dairy&action=edit&redlink=1http://en.wikipedia.org/wiki/Water_Buffalohttp://en.wikipedia.org/wiki/Sardar_Vallabhbhai_Patelhttp://en.wikipedia.org/wiki/Tribhuvandas_Kishibhai_Patelhttp://en.wikipedia.org/wiki/Amul#cite_note-tehelka-11http://en.wikipedia.org/wiki/Amul#cite_note-tehelka-11http://en.wikipedia.org/wiki/Amul#cite_note-tehelka-11http://en.wikipedia.org/wiki/Morarji_Desaihttp://en.wikipedia.org/wiki/Verghese_Kurienhttp://en.wikipedia.org/wiki/World_Food_Prizehttp://en.wikipedia.org/wiki/Magsaysay_Awardhttp://en.wikipedia.org/wiki/White_Revolutionhttp://en.wikipedia.org/wiki/White_Revolutionhttp://en.wikipedia.org/wiki/Magsaysay_Awardhttp://en.wikipedia.org/wiki/World_Food_Prizehttp://en.wikipedia.org/wiki/Verghese_Kurienhttp://en.wikipedia.org/wiki/Morarji_Desaihttp://en.wikipedia.org/wiki/Amul#cite_note-tehelka-11http://en.wikipedia.org/wiki/Tribhuvandas_Kishibhai_Patelhttp://en.wikipedia.org/wiki/Sardar_Vallabhbhai_Patelhttp://en.wikipedia.org/wiki/Water_Buffalohttp://en.wikipedia.org/w/index.php?title=Polson_Dairy&action=edit&redlink=1http://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Kairahttp://en.wikipedia.org/wiki/Anand,_Gujarathttp://en.wikipedia.org/wiki/Kaira_District_Co-operative_Milk_Producers%27_Union


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commercial scale anywhere in the world. The success of the dairy co-operative movement

spread rapidly in Gujarat.

In order to combine forces and expand the market while saving on advertising and avoid a

situation where milk cooperatives would compete against each other it was decided to set up anapex marketing body of dairy cooperative unions in Gujarat.

Thus, in 1973, the Gujarat Co-operative Milk Marketing Federation was established. The Kaira

District Co-operative Milk Producers Union Ltd. which had established the brand name Amulin

1955 decided to hand over the brand name to GCMMF (AMUL). Impressed with the

development of dairy cooperatives in Kaira District and its success,Lal Bahadur Shastri,the then

Prime Minister of India during his visit to Anand in 1964, asked Dr.Kurien to replicate the

Anand type dairy cooperatives all over India. Thus, theNational Dairy Developed Board wasformed and Operation Flood Programme was launched for replication of the Amul Model all

over India.

In 1960's Dr M M Kashyap (faculty Agricultural and Engg Dept.), Bondurant and Dr Feryll( ex-

student of Dr Verghese Kurien (AMUL) visited AMUL factory in Gujarat as a research team

under the head ship of Dr Bheemsen Shivdayal Pathak ( ex- Director Sardar Patel Renewable

Energy Research Institute)

The Gujarat Cooperative milk Marketing Federation Ltd.
http://en.wikipedia.org/wiki/Lal_Bahadur_Shastrihttp://en.wikipedia.org/w/index.php?title=National_Dairy_Developed_Board&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Dairy_Developed_Board&action=edit&redlink=1http://en.wikipedia.org/wiki/Lal_Bahadur_Shastri


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GCMMF

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

product marketing organisation with annual turnover (2013-14) US$ 3.0 billion. Its daily milk

procurement is approx 13.18 million lit per day from 17,025 village milk cooperative

societies, 17 member unions covering 31 districts, and 3.23 million milk producer members.

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 ofconsumers 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 53 Sales Offices and

has a dealer network of 10000 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. In 2013-14, GCMMF took giant strides in

expanding its presence in International markets. Amuls presence on Global Dairy Trade (GDT)

platform in which only the top six dairy players of the world sell their products, has earnedrespect and recognition across the world. By selling milk powders on GDT, GCMMF could not

only realize better prices as per market demand but it also firmly established Amul in the league

of top dairy players in world trade.


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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 organisation to win topmost

International Dairy Federation Marketing Award for probiotic ice cream launch in 2007. For the

innovations, GCMMF has received AIMA-RK Swamy High Performance brand award 2013 and

CNN-IBN Innovating for better tomorrow award in 2014. For the tree plantation activity

GCMMF has received seven consecutive Good Green Governance award from Srishti during

2007 to 2013.

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.

GCMMF - An Overview

Year of Establishment 1973

Members 17 District Cooperative Milk Producers' Unions

No. of Producer Members 3.23 Million

No. of Village Societies 17,025

Total Milk handling capacity per day 23.2 Million litres per day

Milk Collection (Total - 2013-14) 4.79 billion litres

Milk collection (Daily Average 2013-14) 13.18 million litres

Cattle feed manufacturing Capacity 6190 Mts. per day


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Sales Turnover -(2013-14) Rs. 18143 Crores (US $ 3.0 Billion)

PRODUCT PROFILE

1. AMUL TAAZA

Product Name : - Amul Taaza

Product Detail: - Pasteurised & homogenised toned milk.

Packing : - Poly Pack - 500ml, 1000ml, 6 Ltr*

Product Specifications

Composition FAT%3.0 Min, SNF*8.5 Min

Shelf life 48 hrs from manufacturing

Storage Under Refrigeration (Below 8C)


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2. AMUL GOLD

Product Name : - Amul GOLD

Product Detail: : - Pasteurised Milk Amul milk meets the PFA standards for the

Respective type of milk.

Packing : - Poly Pack - 500ml, 1000ml, 200ml, 5 Ltr*

Product Specifications

Composition FAT%6.0 Min, SNF*9.0Min

Shelf life 48 hrs from manufacturing


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Storage Under Refrigeration (Below 8C)

3. AMUL DAHI

Product Detail

Product Name : - Amul Masti Dahi

Description : - Curd made from Pasteurised Toned Milk

Packing : - Poly Pack - 200 gm, 400 gm, 1 kg *

PP Cup - 200 gm, 400 gm, 100 gm *

* In Selected markets only


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4. BUTTER MILK

Product Details

Product Name: - AmulPouch Butter Milk

Description : - Pasteurized Buttermilk meets the PFA standards.

Packing : - poly pack 500ml

Composition FAT(%) 1.0 , SNF(%) 5.5


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Shelf Life 48 hours from the date of packing

Storage Condition Under Refrigeration below 8C

5. LASSI

Product Detail

Product Name : - AmulProlife Probiotic Lassee

Description : - Flavoured Probiotic Lassee (Drinking Yoghurt)

Packing : - 200ml Glass


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OBJECTIVE OF THE STUDY

To study the milk market and milk distribution in Mumbai.

To evaluate the market penetration and market share of AMUL

products in Mumbai

To study the parameters considered by customers while makingimpulsive buying decision of dairy products.

To analyse the impact of BTL activity on consumers of dairy products

in south Mumbai.


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Research Design

PROBLEM STATMENT

AMUL masti dahi sales were poor in south Mumbai market; compared to the total market

size for dahi and that of the sales of other brands.

HYPOTHESIS

H0: There is no significant difference of BTL activities on sales of pouch dahi

Ha: There is significant difference of BTL activities on sales of pouch dahi

SCOPE

1. This study can be implemented on other dairy products under brand AMUL.

2.

This study can be utilized examine the promotional impacts of FMCG products of

food industry.


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3. This project can be implemented in suburbs, tier 2 cities etc.

LIMITATION

Time constrain:

This study was conducted only in South Mumbai due to time constraints of 2

months.

This study was conducted during summer season wherein sales of Dahi &

Buttermilk are high and due to time constraint it was not feasible to conduct

the study in other season.

Budget constrain:

Schemes offered on dahi were limited to Max Rs 4/- on 200gm & Rs 6/- on

400gm, due to budget constraints availed for the project.

Man power constrains:

Selected outlets were covered as population and further 10% of it was taken

as sample outlets to conduct the study, due to limitation of manpower.

Retailers constrains


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Many retailers were not comfortable to offer the scheme from their outlet.

REASERCH METHODOLOGY

Expert Interview:

A conference of Mr Prakash Aute (Zone ManagerFPD Mumbai, GCMMF Ltd) was

attended to gain information on milk market in Mumbai and following was the

information derived.

Milk market of Mumbai is of 50 Lakh Litres per day

Pouch milk sales is 60% of the total market

AMUL milk enjoys 40% market share in pouch milk

Competitors to Amul are: Gokul, Mahanand, Mother, loose milk & local brands

Survey:

A questionnaire was designed to study the sales of various milk brands in south Mumbai.

Design Below the Line activity:

An Activity on Amul Pouch Dahi was conducted with the offer of Rs.4off and Rs.6off on

200gms and 400gms respectively.


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Focus Group discussion:

Our team conducted an FGD to find out the impact of consumer behaviour on pouch

Dahi in Mumbai.

Sources of Data:

Primary data:

Current Scenario of milk market & its operations in Mumbai was stated by

Mr. Prakash Aute during a conference meet.

AMUL retail penetration & market share information was collected from

market survey of 362 outlets in South Mumbai

Parameters for consumer behaviour of impulse buying were decided during

FGD.

Consumer buying behaviour was observed at 35 outlets during the BTLactivity.

Results of BTL activity were recorded for pouch dahi at Point of sales.

Secondary data:

A Secondary was collected from research reports & literature review which were

available on the internet.

Data collection instrument:

a) Questioner


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b) Observation technique of data collection

Population:

362 Retail Outlets

Sampling Method:

Sample shops to conduct the activity were decided on the basis of pouch dahi sales indifferent localities, areas withpoor sales were considered and shops within these

area with low sales volume were selected as the sample outlets to conduct the

activity.


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Sample

Size

FPD Retail

Penetration

Milk

Penetration

Dahi

Penetration

BM

Penetration

Mkt

Share

Next

Competitor


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Result and Discussion

FPD PENETRATION OF SOUTH MUMBAI:

South

Mumbai

362 84 66.3 26.24 30.38 48.05 Gokul

Wadala 30 93.33 90 30 0 74.01 Gokul

Colaba 33 90.9 100 9.01 0 59.72 Gokul

Mahalaxmi 8 87.5 100 0 0 37.5 Gokul

Madanpura 22 86.36 60 36.36 0 65.51 Gokul

Sewree 35 100 100 37.14 0 51.47 Gokul

Dadar 34 61.76 29.41 32.35 38.23 29.51 Gokul

Parel 38 84.21 86.84 28.94 39.15 56.42 Gokul

Worli 64 53.125 40.62 9.37 0 38.15 Mahananda

Lower Parel 23 69.56 34.78 56.52 0 43.84 Gokul

Delsie Road 27 66.66 48.14 44.44 0 16.7 Gokul

Saat Rasta 9 88.88 88.88 66.66 0 70.26 Gokul

Lal Baugh 25 96 88 8 0 52.89 Gokul

Tardeo 14 92.85 35.71 50 78.57 82.75 Gokul


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General Store

67%Milk Stall

5%

Open Point

12%

Dairy16%

Description of Population Survey

0

32%

01 to 30

16%31 to 60

16%

61-90

6%

91 to 120

7%

121 to 150

3%

150 and above

20%

Graphical representation of milk sold

at the surved outlets


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81%

8%

6%

3% 2%

Milk Stalls

Amul

Gokul

Mahanada

Mother Dairy

Other

85%

3%

2% 7%3%

General Stores

Amul

Gokul

Mahananda

Mother

Other


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61%

22%

11%

5%

1%

Open Point

Amul

Gokul

Mahanada

Mother Dairy

Other

65%17%

7%

6%5%

Dairy

Amul

Gokul

Mahanada

Mother Dairy

Other


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Interpretation of The Survey

1. AMUL Fresh Product Division retail penetration of South Mumbai is 84%, of which

Milk retail penetration is 66.3%

Dahi retail penetration is 26.24%

Buttermilk retail Penetration is 30.38%

2. Amul milk market share in South Mumbai is 48.05%

3. Weak markets for AMUL FPD

a. Overall retail penetration: Dadar, Delisle Rd, Lower Parel & Worli has poor

penetration i.e.62.77%

b.

Milk retail penetration: Madanpura, Dadar, Worli, Lower Parel and Delisle Road

have poor penetration i.e. 41.44%.

c. Overall retail penetration of pouch dahi in South Mumbai.

d. Overall retail penetration of pouch Butter Milk in South Mumbai.

4. Gokul milk is the nearest competitor for Amul, followed by Mahanand & Mother Dairy.

5. From the graphical representation it is interpreted that most of the competitorssales are

show from Dairy shops & open milk points as compared to General stores & Milk stalls

where the sale AMUL milk is high.


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33

Focus Group Discussion

The objective was to study the parameters which the customers consider while impulsivepurchase of dahi. There was a group of 9 members, 8 males and one female, with an average age

of 23 years and annual family income of Rs 50,000.

The topics discussed were to study the parameters the consumers look at the point of purchase,

which are as follows:

1. Where the placement of promotional material will be more effective? (outside the shop

(option A) or within the shop(Option B))

2. Is the customer, coming in to buy only one single product (Option A) or is looking for

impulsive shopping (Option B)?

3. Is the customer attracted to the discounts/schemes been offered (option A) or not (option

B)?

4. Does the brand offering the discount impacts the buying decision of the customer (option

A) or (option B)?


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34

Observation of Consumer Behaviour Data

Total sample size is of 240 customers

(In fig)

Question No. Option A Option B

1 104 136

2 139 101

3 123 117

4 124 116

(In %)

Question No. Option A Option B1 43.44 56.66

2 57.91 42.08

3 51.25 48.25

4 51.66 48.33

57% of the customers were attracted by the promotional material placed within

the shop rather than the one placed outside the shop.

Majorly i.e. 60% of customers coming to buy specific food items do not looks for

impulsive buy.

It is been observed that 50% of customers in South Mumbai gets attracted to

offers mentioned and these customers are even brand conscious on which the

scheme is offered.


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35

BTL ACTIVITY REPORT

Before During

Sr. 200gms(Pouch) 400gms(pouch) 200gms(pouch) 400gms

(pouch)

1 0 0 50 24

2 20 10 75 36

3 10 8 25 12

4 10 8 25 12

5 10 8 25 12

6 10 8 25 12

7 20 10 50 24

8 0 24 16 0

9 50 24 75 36

10 5 5 25 12

11 0 0 25 12

12 0 0 12 0

13 12 8 12 0


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36

14 50 0 10 0

15 0 24 5 24

16 0 24 25 24

17 0 0 45 0

18 5 0 50 24

19 0 0 50 24

20 25 12 50 24

21 25 24 50 48

22 5 2 15 10

23 0 8 20 14

24 5 0 15 8

25 0 4 22 16

26 0 0 15 8

27 10 6 25 18

28 0 5 10 15


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38

Paired Sample Test

H0: There is no significant difference of BTL activities on sales of pouch dahi

Ha: There is significant difference of BTL activities on sales of pouch dahi

Paired Samples Test

Paired Differences T df Sig. (2-

tailed)Mean Std.

Deviation

Std. Error

Mean

95% Confidence Interval

of the Difference

Lower Upper

Pair

1

Before -

V5

-

16.30615.018 2.503 -21.387 -11.224 -6.515 35 .000

Pair

2V4 - V6 -8.472 7.053 1.175 -10.859 -6.086 -7.208 35 .000


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Conclusion

At 5% level of significance the value is 0.05 and the observed value is 0.00

which is less than our value. Hence we reject out null hypothesis and conclude

that there is significance difference of BTL activities on sales of pouch dahi.


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Findings

It is been observed that AMUL enjoys a Market share of 48% and market penetration of

84% in South Mumbai Milk Market.

The penetration of AMUL Milk (66%), Butter Milk (30%) & Dahi (26%) is poor as

compared to the penetration of AMUL as a whole (84%)

From the initial survey it has been interpreted that the sales of Amul Masti Dahi is poor

as compared to other competitors. Within Amul Masti Dahi the availability of cup Dahi is

better as compared to Pouch Dahi at retail outlets.

The visibility for AMUL promotional materials & products is poor as compared to other

competitor brands.

Competitors have presence in all categories of milk as compared to AMUL which is

available only in two categories in Mumbai market. This gives competitors an added

advantage of attracting health conscious customers.

From customers & retailers survey it is been observed that demand for AMUL toned milk

is always better than that of competitors.

It was found that the makers of sweets i.e. halwai do prefer loose milk or Gokul over

AMUL FCM, because of the quality of FAT content been better in loose & Gokul.

Following are the problems faced by retailers:

o Margins & schemes offered by other brands are better than that of AMUL

o Retailers face problems with replacement of expired products and leakage

pouches of milk.

o Relationship problems between retailers & distributors are causing loss of sale to

AMUL.


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SUGGESTION

1) AMUL FPD can improve its market penetration in all 3 product line by using its same

distribution network & infrastructure, as it is found that the total market penetration for

AMUL products is 84% which is much higher than penetration of each product category.

Increase in market penetration will result into increase in sales & market share.

2) New ADAs should be appointed in the following areas as this market cannot be covered

completely with the services of current ADA:-

a. Worli

b. Dadar West

c.

Lower Pareld. Delsie Road

3) To increase the sales of pouch dahi, AMUL should experiment and replace the order

from retailers for cup dahi to pouch dahi. This will create awareness among customers

about price point of AMUL masti pouch dahi, which may not only cannibalize the sales

of AMUL cup dahi but will also replace for sales of competitors brand.

4) It is been observed that sales from halwais to other brands & loose milk if good, hence

AMUL should come up with a new product category which will caterer to the need of

Sweet makers of high FAT milk. From the initial survey it can be judged that the

volumes of sale from this category of product can justify the production capacity.

5) It has been observed that distributors who have larger volume of business do not address

the problems & queries of small retailers; which results into problems in relation between

retailers & distributors. It is suggested that ADAs volume of business should be limited

according to their capacity, so that they can not only supply products but also maintain

good relations with retailers.


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REFERENCE

About AMUL

http://www.amul.com/about.php

About Dairy Products

http://en.wikipedia.org/wiki/Dairy_product

About Amul Masti Dahi

http://www.amul.com/products/amul-mastidahi-info.php

About Amul Taaza Milk

http://www.amul.com/products/amul-taaza-info.php

About Amul ButterMilk

http://www.amul.com/products/amul-pouchbuttermilk-info.php

About Amul Lasse

www.amul.com/products/amul-prolifelassee-info.php
http://en.wikipedia.org/wiki/Dairy_producthttp://en.wikipedia.org/wiki/Dairy_producthttp://www.amul.com/products/amul-mastidahi-info.phphttp://www.amul.com/products/amul-mastidahi-info.phphttp://www.amul.com/products/amul-taaza-info.phphttp://www.amul.com/products/amul-taaza-info.phphttp://www.amul.com/products/amul-pouchbuttermilk-info.phphttp://www.amul.com/products/amul-pouchbuttermilk-info.phphttp://www.amul.com/products/amul-pouchbuttermilk-info.phphttp://www.amul.com/products/amul-taaza-info.phphttp://www.amul.com/products/amul-mastidahi-info.phphttp://en.wikipedia.org/wiki/Dairy_product

Final Amul Project.docx

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