Dr Varghese Kurien popularly known as the Father of White Revolution and renowned social entrepreneur who had the vision of creating India’s biggest food brand AMUL.

GUJRAT CO-OPERATIVE MILK MARKETING FEDERATION LTD

SUMMER INTERNSHIP REPORT

ON

ANAND MILK UNION LIMITED (AMUL)

THE TASTE OF INDIA

PREPARED BY

SHASHANK SHAW

BENGAL INSTITUTE OF BUSINESS STUDIES

MASTERS OF BUSINESS ADMINISTRATION

BATCH (2012-2014)

SUBMITTED TO

MR MUKUL RANJAN SINHA

SENIOR EXECUTE

AMUL-HOWRAH DEPOT

CONTENT

SR NO PARTICULARS PAGE NO1. Acknowledgement 3

2. Company profile 6-133. Objective of the study 14-16

4. Summary of Report 17-235. Amul Ice Cream 24

6. Amul Preferred Outlet 25-317. Hamara Apna Deep

Freeze32

8. Margin of Profit 33

9. First visit North 24 Parganas

34-42

10. Second visit Hooghly 43-46

11. Dankuni Plant 47-4912. Market position 50-52

13. Amul Market Segment 5314. Amul & Competitors 54-62

15. Sales Turnover & Advertising

63-67

16. Market Cycle 68

17. Rate chart 69-72

18. Swot Analysis 73-76

19. Project Findings 78-8120. Conclusion 82-83

ACKNOWLEDGEMENT:

This is to acknowledge to those people who have cooperated me to reach at the edge of my training work. I wish to place a deep sense of gratitude to Mr Mukul Ranjan Sinha (Project guide) Mr Subroto Das (Training Guide) of North24 Parganas, Mr Bapi Bachar (Training Guide) of Howrah & Hooghly Region.

Above of all I would like to thank all my faculty members Mr Vidur Kapoor (Chairman, BIBS), Mr Anindya Dutta (Faculty Guide) & Mrs Sayari Poddar (Placement Advisor) for giving me this opportunity to work in such a highly reputative company “AMUL”.

I am also highly thankful to the Management committee for helping me in my project work by providing me all the information needed and guided me in making the report, directing and helping me which made the process very easy and educational. I would also like to thank all those people who have knowingly and unknowingly he led me in my report making.

I hope that I can build upon the experience and knowledge that I have gained and make a valuable contribution towards this industry in coming future.

DECLARATION

I SHASHANK Shaw, a student of MBA 2012-2014 Batch of BENGAL INSTITUTE OF BUSINESS STUDIES,KOLKATA thereby declare that the project work “CHANNEL DISTRIBUTION ANALYSIS ON AMUL ICE- CREAM” done by me. I am submitting the project work to AMUL, in partial fulfillment of the requirements of the MBA Program of BENGAL INSTITUTE OF BUSINESS STUDIES for the purpose of summer internship project is a record of original research work done during the period of 8TH April to 15th may under the guidance of Mr. Mukul Ranjan Sinha. (Senior executive Amul)

Student’s signature Industry Guide

COMPANY PROFILE:

Amul is an Indian dairy cooperative organisation based in Anand district in the state of Gujarat. It was formed in 1946 under the name of Gujarat Milk Marketing Federation of India which is today jointly own by 3 million milk producers of Gujarat. The word is derived from the Sanskrit word Amulya which means invaluable.

It became the country’s largest producer of milk and milk products it also became the largest food brand in India and has also ventured into markets overseas.

The Cooperative was further developed and managed by Dr.Verghese Kurien along with H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk for the first time anywhere in the world and a little later, along with Kurien's help, making it on a commercial scale, led to the first modern dairy of the cooperative at Anand, which made them compete against established players in the market.

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50 sales offices spread all over the country, more than 5000 wholesale dealers and more than 900000 retail outlets.

Amul became the world's largest vegetarian cheese and the largest pouched-milk brand.

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 hut milk clarified butter and indigenous sweet.

The major milk markets are USA, West Indies, and countries in Africa, the Gulf Region, and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China, and others such as Mauritius, Australia, Hong Kong and a few South African countries. Its bid to enter the Japanese market in 1994 did not succeed, but it plans to venture again.

In September 2007, Amul emerged as the leading Indian brand according to a survey by Synovate to find out Asia's top 1000 Brands.

In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The Brand Trust Report, published by Trust Research Advisory.

Since 1967 Amul products' mascot has been the very recognisable "Amul baby" or “Amul girl” (a chubby butter girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the tagline Utterly Buttery Delicious Amul. The mascot was first used for Amul butter. But in recent years in a second wave of ad campaign for Amul products, she has also been used for other products like ghee and milk.

AMUL is mainly into the business of marketing, transporting and distributing the milk and milk products manufactured by its owners. Besides creating urban employment in dairy plants, marketing, transporting and distribution, it has helped to provide farmers with a sustainable rural employment program.

Overview:

EVOLUTION OF THE GCMMF

Over five decades ago, the life of an average farmer in Kheda District was dependent almost entirely from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand – often milk went sour, especially in the summer season, as producers had to physically carry milk in individual containers. Private traders and middlemen controlled the marketing and distribution system for the milk. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. Moreover, the government at that time had given monopoly rights to POLSON DAIRY to collect milk from Anand and supply to Bombay city in turn (about 400 kilometres away). India ranked nowhere amongst milk producing countries in the world in 1946.

SETTING UP OF KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS' UNION

The Kaira District Co-operative Milk Producers' Union Limited (KDCMPUL) began pasteurizing milk for the Bombay Milk Scheme in June 1948. By the end of 1948, more than 400 farmers joined in more Village Society, and the quantity of milk handled by one Union increased from 250 to 5,000 litres a day. Dr. Varghese Kurien, fed up being at the government creamery in Anand, which held no challenge, volunteered to help Shri Tribhovandas Patel, the Chairman of KDCMPUL, in setting up a processing plant. This marked the birth of AMUL.

SETTING UP OF GUJARAT COOPERATIVE MILK MARKETING FEDERATION

In 1954, Kaira District Co-operative Milk Producers’ Union built a plant to convert surplus milk produced in the cold seasons into milk powder and butter. In 1958, a plant to manufacture cheese and one to produce baby food were added. Subsequent years saw the addition of more plants to produce different products. In 1973, the milk societies/district level unions decided to set up a marketing agency to market their products. This agency was the Gujarat Cooperative Milk Marketing Federation (GCMMF). It was registered as a co-operative society on 9th July 1973.

The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level. Milk collection is done at the Village Dairy Society, milk procurement and processing at the District Milk Union and milk and milk products marketing at the State Milk Federation. The structure was evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programme, it is known as the ‘Amul Model’ or ‘Anand Pattern’ of Dairy Cooperatives.The main functions of the Amul are:

Collection of surplus milk from the milk producers of the village, and payment based on quality and quantity,

Providing support services to the members like veterinary first aid, artificial insemination services, cattle-feed sales, mineral mixture sales, fodder and fodder seed sales, conducting training on animal husbandry and dairying.

Selling liquid milk for local consumers of the village.

GCMMF TODAY:

GCMMF is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat, which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products, which are good value for money. GCMMF markets and manages the Amul brand. From mid-1990's Amul has entered areas not related directly to its core business. Its entry into ice cream was regarded as successful due to the large market share it was able to capture within a short period of time - primarily due to the price differential and the brand name.

In September 2007, Amul emerged as the leading Asian brand according to a survey by Synovate to find out Asia's top 1000 Brands.

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.

Members- 12 district cooperative milk producers ‘Union

No. of Producer Members- 3.18 million

No. of Village Societies- 16,117

Total Milk handling capacity- 3.88 billion litres per day

Milk collection (Total - 2011-12) -10.6 billion litres

Milk collection (Daily Average 2011-2012) – 1.6 million litres

Milk Drying Capacity- 647 metric Tons per day

Cattle feed manufacturing Capacity-3690 Mts per day.

SPREADING THE AMUL CULTURE:

The establishment of Amul is also known as White Revolution. The White Revolution of India inspired the notable Indian film-maker Shyam Benegal to base his film Manthan (1976) on it. The film starred Smita Patil, Girish Karnad, Naseeruddin Shah and Amrish Puri. The film itself was financed by over five lakh rural farmers in Gujarat who contributed Rs 2 each to the film's budget. Upon its release, these same farmers went in truckloads to watch 'their' film, making it a commercial success. The film was chosen for the 1977 National Film Award for Best Feature Film in Hindi.

OBJECTIVE OF THE STUDY:

The reason for undergoing summer internship project is to get accustomed with the corporate culture. It provides us an insight in to the company. It helps in knowing the work procedure of the company, how they operate what are the strategies they follow in different situation. During the project, I get lot of exposure about the corporate culture and got the chance to network with peoples. The main objective of summer training is to implement theoretical ideas into practical knowledge. This project helps me in gaining immense knowledge about skills required to perform the job. It also helps me in networking with peoples where I had gone for survey work i.e., visiting the nearby client’s offices as well as the competitor’s area. Beside it also help me in knowing the

Business area of the company

What are the different products produced by Amul.

What is the market position of the company during the last five years?

What are the competitor’s strategies, for gaining the more market share?

Competitive analysis of the company with the competitors

The marketing process and the different strategies followed by Amul

What are the strength, weakness, opportunity and threats of the company?

METHODOLOGY

A research methodology defines what the activity of research is, how to proceed, how to measure progress, and what constitutes success.

Research methods

There are three types of research methods used namely, Exploratory Research, Descriptive Research and Causal Research. But the researcher has used only two of the following in the research

a. Exploratory Research

b. Descriptive Research

Exploratory research is a type of research conducted because a problem has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist.

Exploratory research often relies on secondary research such as reviewing available data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies. The Internet allows for research methods that are more interactive in nature:

Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how.

TYPE OF INFORMATION NEEDED

Finding the flaws in the retailing as well as the distribution channel on which the sales performance gets poor.

Awareness regarding source of Ice-Cream products among retailers and Vis a Vis its competitors.

SOURCE OF INFORMATIONS

In primary data collection, the researcher collects the data using methods such as interviews and questionnaires. The key point here is that the data collected is unique to the research. There are many methods of collecting primary data and the main methods include:

questionnaires

interviews

focus group interviews

observation

case-studies

diaries

critical incidents

Portfolios.

SUMMARY OF REPORT:

AMUL – ICE CREAM (division)

ANALYSING THE CHANNEL DISTRIBUTION SYSTEM IN NORTH 24 PARGANAS AND HOWRAH REGION

AMUL ICE-CREAM HISTORY:

Amul Ice Cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs. Amul ice cream was launched on the platform of ‘Real Milk. Real Ice Cream’ given that it is a milk company and the wholesomeness of its products gives it a competitive advantage.

In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999.

It has combated competition like Walls, Mother Dairy and achieved the No 1 position in the country. This position was achieved in 2001 and it has continued to remain at the top.

Today the market share of Amul ice cream is 38% share against the 9% market share of HLL, thus making it 4 times larger than its closest competitor.

Not only has it grown at a phenomenal rate but has added a vast variety of flavours to its ever growing range. Currently it offers a selection of 220 products. Amul has always brought newness in its products and the same applies for ice creams.

In January 2007, Amul introduced SUGAR FREE & Pro Life Probiotic Wellness Ice Cream, which was a first in India. This range of SUGAR FREE, LOW FAT Diabetic Delight & Pro Life Probiotic Wellness Ice Cream is created for the health conscious.

Amul’s entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time – due to price differential, quality of products and of course the brand name.

ICE-CREAM SECTOR IN INDIA

Though India has a low per capita ice cream consumption of 300 ml per annum, the trend is slowly changing due to a number of reasons..

Indian summers are synonymous with ice creams. Come summers, and you will see a number of colourful pushcarts selling the choicest of ice creams in numerous flavour’s from the traditional vanilla and chocolate to unusual varieties like Mother Diary’s Shahi Nazrana. If that doesn’t baffle you then the ice cream range definitely would, for example the ice cream range for the children would be entirely different from that for the teenagers or for that matter adults. Or, for those who like to have ice cream in peace, there are a number of ice cream parlours that are opening shop.

But did you know that a 100 ml scoop of your favourite ice cream that you ordered may contain up to 50% air! This makes the business a highly profitable venture to get into – sometimes, the profits can go upto 100%! However, there are several challenges to this business as well. In this story, DARE attempts to find out the dynamics of the business.

The Ice Cream Industry: An Overview

Looking at some industry facts first. In 2007, the global market of ice creams was pegged at $61.6 billion in terms of retail value or 15 billion LITRES in terms of volume. Of this, the Asia-Pacific ice cream market was worth $13 billion in terms of retail value and 5,128 million litres in terms of volume. Coming to India, the Indian ice cream industry is currently growing at a rate of approximately 12%. RS Sodhi, Chief General Manager

of Gujarat Co-operative Milk Marketing (GCMMF), the makers of ‘Amul,’ explains, “The ice cream market in India can be divided into: the branded market and the grey market. The branded market at present is 100 million litres per annum valued at Rs. 800 crores. The grey market consists of small local players and cottage industry players.” In 2008-09, in the branded ice cream market, Amul held the number one spot, with a market share or 38%, followed by Kwality Walls at 14%, Vadilal at 12% and Mother Diary at 8%.

Despite a decent growth rate, the ice cream industry faces the challenge of low per capita consumption.

The industry can be divided into the branded market and the unbranded market. The branded market at present is 100 million litres per annum valued at Rs. 800 crores

In 2008-09, in the branded ice cream market, Amul held the number one spot, with a market share or 38%, followed by Kwality Walls at 14%, Vadilal at 12% and Mother Diary at 8%

The per capita consumption of ice cream in India is approximately 300 ml, as against the world average of 2.3 litres per annum

Vanilla, Strawberry and Chocolate together constitute approximately 60% of the market.

The per capita consumption of ice creams in India is just 300 ml per annum, compared to 22 litres in the US, 18 litres in Australia, 14 litres in Sweden. India is a way too far behind even in terms of the world average per capita ice cream consumption of 2.3 litres per annum. This when India is a country with hot climate with a young population. Pankaj Chaturvedi, Executive Director of Baskin Robins, explains “Indian cuisine has a huge range of desserts in its mix. Ice cream always competes

against these for attention.” Besides desserts, ice cream also vies for attention with other like foods for example in summers with cold drinks, coffee, juice, etc.

Another trend that is witnessing a change is the seasonal nature of the industry. Having said that, the peak season for ice cream still remains the summer months of April-June and dips in the months of November-February. According to the industry players, this trend especially holds true for the North and the Western parts of India. According to Pankaj Chaturvedi, “The variation in sales for Baskin Robins can range from 15–30% from season to off season depending on geography and brand.

ICE- CREAM BUSINESS

The ice cream industry has traditionally grown at a healthy rate of 12% year-on-year. “The growth in Ice cream industry has been primarily due to strengthening of distribution network and cold chain infrastructure. Channels such as Mobile Vending Units have been increasing year on year to reach out to a larger set of consumers. Besides, consumers also have the choice of trying out varied product offerings from different brands to keep them excited,” Paul Thachil, CEO – Dairy & Foods, Mother Dairy Fruit & Vegetable.

What exactly is defined as ‘ice cream’ under the guidelines? The Prevention of Food Adulteration (PFA) Rules, 1955 define ice cream as “a frozen product that contains not less than 10% milk fat, 3.5% protein, 36.0% total solids, and 0.5% permitted stabilizer and emulsifier.” Players who deviate from these norms tactfully call their product "frozen dessert.” However, it is illegal to sell “ice cream” which has contents below these specified standards.

The basic steps in the manufacturing of ice cream are generally first blending the ingredients, pasteurization, and homogenization, aging the mix, freezing, and hardening. Now, during the hardening process, the ice cream mixture is incorporated with air. This is done to make the product ‘light’ and ‘creamy’. This is necessary as without air, ice cream would be like frozen ice. Now the ice cream can contain a considerable quantity of air, even up to half of its volume. This perhaps makes ice cream a business with high profit margin.

Manish Vithalani of Space Dots informs, “A ice cream mix (consisting of milk, emulsifier, sugar and so on) costs about Rs. 60-65 a LITRES. And in one LITRE you can add up to one litre of air. Therefore, per LITRES the mix would cost you approximately Rs 32. If you take a 150 ml cup, you can make 13 cups of ice cream from one LITRES of mixture. Calculating on

that basis, the per cup costing comes to about Rs 5. Now add to that Rs 5 worth of packaging cost, electricity, labour, transportation, advertisement cost etc. It comes to approximately Rs 10 per cup.” Depending on the variety, the profit margin therefore can go up to even 100%. While for bigger players, the distribution and advertising costs eats into the profit margins, for smaller players, it is the volumes that matter.

AMUL –ICE CREAM:

First Task

To study the channel distribution chain for the Howrah Depot and North 24 Parganas region how the distributors work what are the marketing strategy that are adopted by the company from time to time and are those regularly adapted by the distributors or not.

To find out the flaws under the working system of the organisation or in distributorship and provide some valuable knowledge towards the company so that it can add some value addition with them.

To see weather distributor are regularly supplying the products in the markets and are the retailers happy with working under the particular distributor.

Second Task

To find out the prospective number of APO i.e. (Amul Preferred Outlet) means an outlet that has been given the franchise from the Amul Company to sell only the Amul products in the store other product he can also keep for those Amul is not the manufacturer.

To find out more opportunity for opening more such new APO so that it can add some value to the company.

Also selling of HADF i.e. (Hamara Apna Deep Freeze) means selling of deep freezer for the Ice-Cream in the store where they don’t have such deep freeze with them. Or even if they have engage them in buying new Deep freeze which also has various offers with it.

AMUL PREFFERED OUTLET (APO)

It’s a marketing strategy of GCMMF where they invite the franchisees for opening an APO so that they get a place to sell the entire range of Amul products under one roof. Amul boasts the marketing of more than 40 products with a range exceeding 400 SKUs in Pouch Milk, Dairy Products, and Ice-Cream Categories.

This strategy of GCMMF makes an Amul parlour an attractive business opportunity for the aspiring entrepreneurs who generally have a very limited resources. This strength can be understood from the fact that more than 450 Amul Parlours are operating across 1400 towns of the country. This type of parlours is successfully operating across railway stations colonies, commercial centres, bus station and various centres etc.

The cost of opening an APO is approx. 25000/-. For the Brand Deposit

Backlit Glow Sign board will be provided by GCMMF at its own cost.

The other things which are also required are:

A shop with an area of 100-300 sq. ft or own open space of about 100 sq. ft. or more amidst to market place.

Willingness to invest of approx. 150000/-

FOR RENOVATION:

GREEN & YELLOW TILLING……………… Rs 70000/- approx.

COUNTER………………………………………. Rs 25000/- approx.

DISPLAY SHELVES…………………………….. Rs 10000/- approx.

ELECTRICAL WIRING & LIGHTING…….Rs 10000/- approx.

PAINTING……………………………………….Rs 5000/- approx.

FLOORING………………………………………Rs 10000/- approx.

FOR EQUIPMENT:

Minimum Requirement is about Rs 60000/- to Rs 70000/-.

DEEP FREEZE………………………………Rs 27000/-

VISICOOLER…………………………..Rs 28000/-

PIZZA OVEN………………..Rs 5000/- to Rs 10000/-

GLOW SIGN BOARD AND BACKLIT BOARD WILL BE PROVIDED BY GCMMF

A FULLY PREPARED AMUL PREFERRED OUTLET LOOKS LIKE

THIS

PLACES WHERE AMUL HAS ESTABLISHED ITS APO ARE:

Another task of us was to sells HADF to the Retail Outlets from Amul.

Amul has various tie up with National brands like Voltas, Western, Celfrost, Frigoglass & Haier who provides the equipment to the APO franchisees and also to the Retail outlet who sells Ice Cream

Visicooler Subsidy Scheme for Retailers and APO are:

Sr No Visi cooler Capacity

Price (Inclusive of taxes)

Subsidy

1. up to 400 litres 28000 70002. Above 400 and

up to 800 litres50000 12000

3. More than 800 litres

68000 15000

Deep Freeze Subsidy Scheme For Retailers and APO are:

Sr No Deep Freeze

Capacity

Price (Inclusive

of taxes)

Subsidy

1. up to 300 litres 16500 3000

2. Up to 400 litres 22000 4000

MARGIN OF PROFIT:

From Distributor point of view:

DAIRY PRODUTS-3.8% Profit Margin on the cost basis from the company

ICE-CREAM PRODUCTS-9.8% Profit Margin on the cost basis from the company

From Retailers point of view:

DAIRY PRODUCTS- 9.8% Profit Margin on the cost basis from the Distributor

ICE-CREAM PRODUCTS -17.5% Profit Margin on the cost basis from the Distributor

Catering and Institutional pack of 1 litres- 25% Profit Margin on the cost basis from the Distributor.

As per there some personal terms and conditions with the Distributor

From APO point of view:

Margin of profit is same as that of the retailers.

But the additional benefit which they are getting is 1% extra on the purchase from the distributor on showing of the original purchase bill it can reimburse to the APO.

FIRST VISIT:

North 24 Parganas

09/04/2013-21/04/2013

The main project theme that was assigned to us was by our industry guide was to understand and to have a deep knowledge of Channel Distribution Analysis under a particular distributor for a particular time how the supply chain of the Amul company works what are the demands that distributor puts in toward the company and is company is able to fulfil that demand or not. For this we worked under various distributors for many days such as our first destination was Barasat region in North 24 Parganas. Over there we got the opportunity to meet two distributors one was for the Dairy and the other was for Ice-Cream both operating in the Barasat, Madhayagram, Hridaypur, Birati, and New Barrackpore.

RADHAKRISHNA SILVERHOUSE AGENCY-

ICE-CREAM Distributor for Barasat, Madhayagram, Hridaypur, Birati, BisparaKodalya.

DAIRY Distribtor for New Barrackpore, Habra, Dum Dum, Dum Dum Cantonment.

DHURBO ENTERPRISE-

ICE-CREAM Distributor for New Barrackpore, Habra, Dum Dum, Dum Dum Cantonment and its some part of it local area.

DAIRY DISTRIBUTOR for Barasat, Madhayagram, Hridaypur, Birati, BisparaKodalya...

This sort of region distinction been made between the distributor because due to company policy and that everyone should get equal opportunity to work.

OBJECTIVE OF THE STUDY: Studying the existing distribution network and observing the flaws

of the retailing and distribution. To carry out retail survey. Analysis of data collected. Interpretation. Suggestions and recommendation

Research was descriptive in nature .For studying the distribution network in BARASAAT I used the questionnaires method covering almost all the retailers in that region which mostly consisted of formal and informal types.

List of question that we generally asked were all this:

We visited of around 16 shops in Barasat region were Amul products were already available and had a talk with retailers to find out their

opinion that were there satisfied by selling Amul product or they were unhappy with it were they are satisfied with the % given by the company. Weather the supply is properly made in time or the supply is very much regular by the distributor or not.

After interoperating from the above data we came to realise that:

Amul lacks deep penetration in Barasat city because of limited outlets, inefficient distribution and improper replacement policy.

Amul has strong brand image among its customers. To find out the flaws of the distribution channel in the area of

Barasat region. % (profit margin) given by Amul Company is low as compared to

other company. Supply is not that much regular because distributor workmen

negligence.

One of the common problem that we faced all over the Barasat region was that among the retailers was that as promised by the company for the free Ice- Cream within 3 months till they have not receive so the retail outlets were very much unhappy with it and this was the region many of the retailers were not wishing to keep Amul Ice- Cream with them.

A New Distributor was appointed in the New Barrackpore region in North 24 Parganas we worked for 4 days under this distributor and was able to grab many things form this. It was a very good learning experience for us.

Ghosh Traders was one of the distributors who were handling the distribution system in the Hasnabad region which was very close to the Bangladesh Border.

We made a survey of Hasnabad Market and found that they working very efficiently and retailers were also satisfied with their working environment

DISTRIBUTION CHANNEL:(NORTH 24 PARGANAS)

EARLIER OBSERVATION IN THIS REGION

In this area mainly the researcher did the pre observation of the area and then on the basis of these observations actions were taken.

In the area of North 24 Parganas initially the problems pertaining were:-

•Retailers were in ample number but the proper supply side i.e., distribution system was missing.

•There were very few retail shops selling Amul milk in the region along Feeder Road, M.B. Road and Birati.

•Different shops that were operating in the area are been located in non-uniform basis in the region.

In many places retailers are very much unhappy with the working the of the distributor especially in the Hasnabad region the problem which retailers complained that the distributor was over charging them with the prices of the products and also sometimes they were not getting the goods in time within though the goods have been stocked in the distributors Godown.

But we came across the distributor financial statement it showed us that the distributor has already achieved its target near about double. Where his March ending target was set around 40 lakhs he has achieved of around 67 lakhs.

So here arises the question that where did the distributor suppied its product because the retailers complained that they don’t have the stock with them.

UTILITY TO CONSUMERS:

The study will help the consumers in this way:

1. This study will enable consumers to get the complete information about the company activities regarding its product.

2. This will also be helpful to customers in terms of awareness about the brand and the product.

UTILITY TO STUDENTS:

The study will help the students in this way:

1. This helps to understand the FMCG market closely by involving deeply in it.

2. This was an excellent opportunity to apply the theoretical study in practical industry.

3. This also helps to understand the retailer buying behaviour pattern depending upon the demographics.

LIMITATIONS:

•The most important limitations were that the answers as well as the remarks given by the retailers and the customers were not true all the times. This happens as most of the people usually give the false reply.

•Many retailers and the customers are illiterate as in the areas of Barasat and Birati therefore it becomes difficult to get the answer from them also it is a difficult task to make them aware about the product.

•Many a times the retailers and customers were not interested in answering and give the rude reply.

•The study was based on convenient sampling although with great care but outcome cannot be considered as universal result.

•Time was the major constraint as 13 days were not enough to cover the whole market of North 24 Parganas.

SECOND VISIT:

HOOGHLY

25/04/2013 – 04/05/2013

After gaining a fair bit of knowledge from North 24 Parganas market our industry guide shifted us to the Hooghly Area for gaining a more deep knowledge on channel distribution System.

Our first destination was Sreerampore Market over there we got the opportunity to meet the distributor who was controlling most region of that area like.

SWASTIK AGENGY- DAIRY AND ICE-CREAM DISTRIBUTORS & LIQUID

Area which was covered by this distributor was- Dankuni, Gobra, Uttar Para, Kumimara, and Chanditala.

In this market the response literally good as compared to the North 24 Parganas market the working capability of the distributor was very good the distribution system was also good it had 2 mini truck which move all along the week giving a rest of one day.

BENEFITS:

The area which comes under this distributor very renowned places and the market condition were also very good people are very eager to buy the Amul products.

LIMITATION:

As said it earlier also nothing is correct after having such a better distribution network they were not able to cope up with the expectation with the company because they were not able to fulfil the targets as assigned by the company. The reason for lacking of targets was the negligence of the work and man power and also the supply to the retailers the products which were mostly in demand line Orange candy and Cola Candy they were not able to supply that because mostly of low price it can happen so this reason the worst suffers were final and end consumers.

Many of the retailers were not keeping the Amul products due to company and distributor negligence like I came across one shop.

Chamunda Mata Ice-Cream point- This shop were unhappy with supply of the distributor and was often confused with who the distributor is for that region. Because he was not getting ice cream for long time so they stopped keeping Amul ice cream and now only dealing with Kwality Walls and Mother Diary and Metro Ice- cream.

Also many of the stores were off banners with no paintings in their walls and to make situation worse many of them even didn’t have price list of the Ice-Cream. This was very much frequent in this region. Retailers said that they have asked for many time to the distributor but they were not

listening only saying that they are also getting no response from the company

Ice Cream Van which use to supply the Ice- Cream in various regions of Hooghly and the temperature which makes the Ice Cream cool should be -20 to -25 degree Celsius.

An Amul Preferred Outlet which was

Situated in Hooghly Region in Dankuni Highway which has had a bang on location to carrying on the business. Comparing an APO to the normal retail outlets the purchasing capacity of the APO is much higher than a retailers in many cases..

THIRD VISIT:

ICE-CREAM FACTORY

DANKUNI

On 02/05/2013 our industry guide took us to the Ice-Cream factory in Dankuni to have a practical knowledge and to have a more impact on our learning to see how the plant operates how ice- cream are made.

Over there we got the opportunity to meet the Factory In charge who was the head of Dankuni Plant he explained my things to us regarding the Ice- Cream market what are the requirements that markets demands from time to time and how does the factory adapt to its changes .

He also took much relevant information from us regarding like what were our reviews about the market condition of the Amul Ice Cream what are the problems that retailers and distributors face and are distributor’s able supply properly in the market from time to time.

Then he took us for rounding of the factory we saw many big machines which were operating automatically and simultaneously but there were some people who were looking at it every time

By visiting the plant we gained a huge amount of experience to see how the ice cream are made through various process and we also saw how packaging and distribution of the product are made from factory.

Firstly we got a cap to wear so that no germs or bacteria go inside the production zone. After we went to the cold storage room which was -30 degree because ice cream needs to be hardened when recently manufactured

After completition of the production and after storing in the cold storage every ice cream should be kept in in -25 degree so that irt does not get melted.

Per day electric consumption of the factory was minimum of 5 lakhs which was a huge number.

We saw the maximum production of orange and cola candy which has been doing with the use of new Machine which was installed in the month of March which had a production capacity of producing 10 lakhs orange candy in a day which was a huge number.

There were 4 cold storage rooms in the plant whose minimum temperature used below 30 degree because when Ice Cream are manufactured its temperature is about -4 to -5 degree Celsius then this Ice Cream are kept in the cold storage for at least i1 to 2 days to get it hard and after that it gets supplied in the market.

Production of Orange Candy...

Working Environment is very much Hygienic with hand are covered with gloves and hair and mouth are also covered so that no dust particles

enters in to chamber where Ice Cream are made.

MARKET POSITION OF ICE- CREAM SECTORS: (in terms of volume basis)

COMPANY %METRO 44%KWALITY 40%AMUL 38%VADILALL 25%MOTHER DAIRY 20%CREAM BELL 16%

METRO KWALITY AMUL VADILALL MOTHER DAIRY

CREAM BELL0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Series1Series2

From the above table we can see that Amul stands at the 3rd position but a huge potential for growth in the parlour business coming in from small towns the Gujarat Co-operative Milk Marketing Federation (GCMMF), which owns the Amul brand.

It had identified retailing as a strategic thrust area and made giant strides here over the last five years. Today we have the best distribution in the country, reaching out to the smallest of the towns,” said Sodhi.

Amul currently has 7,000 Amul Parlours in more than 1,600 towns across the country, opened through franchises that GCMMF monitors. The foray is fetching an annual turnover of Rs. 500 crores (5% of its total turnover of Rs. 13,668 crores). GCMMF aims to add 3,000 more of such parlours, with the focus on small towns.

At present, market leader Amul has a 38% market share in the ice-cream and frozen desserts business, estimated at annual revenue of Rs. 2,500 crores and growing at 20% every year. The company is trying to leverage its vast supply chain logistics to grow the parlour business.

It is as much about reaching out to customers as fighting off rivals, as the likes of Hindustan Unilever’s Kwality Walls, Mother Dairy, Metro and many regional players scale up presence.

Amul's expansion comes at a time when the competition is waking up to the potential of the segment. There is also the possibility of investment

coming in the supply chain logistics with the opening up of foreign direct investment in multi-brand retail.

MARKET SEGMENTATION OF AMUL

Demographic factor:

Demographic variables of Amul target market are mostly age and income based. Amul have created many sorts of ice cream to cater all age groups. It has pro-biotic sugar free ice cream which is aimed to hit diabetic customer and the people aged than 45. If we consider the income segmentation, Amul is targeting upper, middle and lower middle income group and also lower group people by selling ice creams in stick at low cost.

Age Under 6 years, 6-11, 12-19, 20-34, 35-49, 50-60, 60+

Family size Young, single: young, married, no children: young, married, Youngest child under 6: Young, married, youngest child under 6Or over: older, married, with children: older, married, no children under 18: older, single: other.

Income Low (up to 40,000 p.a), lower middle (Rs.40, 001 – 80,000 p.a), middle (Rs.80, 001 – 1, 20,000 p.a), upper middle (Rs.1, 20,001 – 1,60,000 p.a) and high (above Rs. 1,60,000).

Occupation Unskilled worker, skilled worker, petty traders, shop owners, businessman/industrialist, self-employed (professional, clerical/salesperson, supervisory level, officers/junior executives, middle/senior executives.

Education Illiterate, school up to 4 years, school between 5 and 9 years,ssc/hsc, no graduate, graduate/post.

AMUL & ITS COMPETITORS IN THE MARKET (in Kolkata):

KWALITY WALLS

MOTHER DAIRY

VADILAL

Metro Ice- Cream

Rollick Ice-Cream

BASKIN & ROBINS

CREAM BELL

METRO DAIRY GETS A BIGGER SCOOPE IN KOLKATA MARKET:

METRO Dairy had the largest scoop of the ice-cream market in Kolkata in the last financial year.

However, Hindustan Lever's Kwality Walls cut out a fractionally bigger share of the market in the city in terms of value.

AC Nielsen ORG-Marg retail audit for ice-creams in six select urban conglomerates — Mumbai, Delhi, Kolkata, Chennai, Bangalore and Ahmedabad — showed that during the financial year to March 31, greater Kolkata recorded a retail sales of 38.9 litres of ice-cream, valued at Rs 35.4 crores.

Metro Dairy, promoted by the West Bengal Cooperative Milk Federation, Keventers Agro and ICICI Bank, had the highest market share of 44.99 per cent in terms of volumes, up from its previous fiscal's share of 38.2 per cent. Kwality Walls was the clear loser in 2002-03. Its volume share dropped to 26.37 per cent from 37.7 per cent in 2001-02.

In terms of value, Metro Dairy almost caught up with Kwality Walls during 2002-03. While Kwality Walls bagged a Kolkata market share of 35.98 per cent in value terms, Metro Dairy's slice was no less than 35.47 per cent in 2002-03, according to AC Nielsen ORG-Marg study. The total Kolkata sales figure for 2002-03, confirmed by AC Nielsen ORG-Marg, for Kwality Walls stood at Rs 12, 72,66,000. For Metro Dairy it was placed at Rs 12, 54,73,000.

The third slot in volume terms for Kolkata was bagged by Rollick of Indus Food Products & Equipment Ltd with a market share of 10.80 per cent. Gujarat Cooperative Milk Marketing Federation's Amul grabbed 6.95 per cent and Big Ones of Nobile Ice-cream Co claimed a share of 3.21 per cent. Interestingly, Amul ice-creams had a taste of Kolkata market for the first time in 2002-2003.

HUL & Amul Battle Hots up in Branded Ice Cream Market:

The branded ice-cream sector is set to witness rising temperature as Hindustan Unilever Ltd (HUL) and Gujarat Cooperative Milk Marketing Federation Ltd (GCMFL) fight it out for visibility and reach.To sustain its competitive edge, Amul (with 36% market share) is extending its distribution network by adding 15,000 retail outlets. Amul has around 70,000 retail outlets for its ice cream brands in India.Rival HUL (makers of Kwality Walls) is investing in increasing availability and visibility for its products in key markets in top 23 cities across the country. "Our business strategy is focused on driving growth in the key ice cream markets in India with long-term growth potential,” said a HUL spokesperson. Kwality Walls is available at over 35,000 outlets across top 23 cities in the country, including exclusive parlours."A very strategic and key part of the business is the vending operation, which has been a key driver of availability and growth," added the HUL spokesperson.The Rs 1300-crore branded ice cream sector is currently growing at 15% a year. “Amul Ice Cream faces stiff competition from Kwality Walls, Mother Dairy and other regional brands with increasing competition, this sector is expected to register around 20 % growth this year,” said a Mumbai-based analyst.

RS Sodhi, general manager, GCMMF said: "This summer, we plan to promote our brands through our preferred outlets ‘Amul Parlours’ and 'Amul Scooping Parlours' across the country. We are adding 2,000 Amul Parlours and 500 Scooping Parlours this summer." Amul has 5000 Amul Parlours and 400 Scooping Parlours in India.

Sodhi added Amul planned to increase the capacity in existing plants to meet the growing demands of consumer this summer. Amul has manufacturing facilities in major metros, which include Bangalore and Chennai. “We will be investing in mass media ad campaigns to gain visibility for our ice cream brands. We have a plan of creating 10,000 Amul Parlours by 2012,” said Sodhi.To take on Amul, HUL is sharpening its focus on new launches and is launching high-voltage television campaigns to woo consumers. "In 2010, we have launched over 10 new products to meet diverse needs of

consumers. Our frozen Desserts/Ice Cream business has been growing well, with the five-year compounded annual growth rate for the business at a healthy 21%," said HUL spokesperson. Like Amul, Kwality Walls has also been aggressively growing its Out-of-Home foot print through ice cream parlours. The company has 300 ice cream parlours and 100 Swirl’s parlours across the country.Analysts say that per capita consumption of ice cream in India is around 250 ml compared with 23 litres in the US, 18 litre in Australia, 14 litre in Sweden and 800 ml in Pakistan. “This presents a huge opportunity for organised players in the ice cream industry,” said a Mumbai-based Analyst.

AMUL & MOTHER DIARY VERY CLOSE OF GAINING MORE MARKET SHARE:

New Delhi-based dairy products major Mother Dairy, the wholly owned subsidiary of the National Dairy Development Board, is planning to enter Gujarat, considered the bastion of Amul. It is expected in a month, Mother Dairy would start test-marketing its dairy products and ice creams in Surat. It should start the test-marketing with Surat, as it is adjacent to Mumbai, where we have a decent foothold. Once the test-marketing is done, we shall enter the state in three to four months.

Said apart from fresh products such as Dahi and lassi, the company would focus on segments that were less penetrated. "Cheese, for example, would be one of those focus areas," he said. Apart from the North, western India is considered to be one of the biggest dairy products market.

Together, Gujarat and New Delhi account for a third of the country's Rs 1,800-crore ice-cream market. Mother Dairy had entered the Mumbai market about four years ago. According to its in-house research team, now, it is the leader in fresh fermented dairy products in Mumbai.

In the ice-cream segment, it says it is about to break into the top three slots this year. The company is ranked fourth now in Mumbai's ice-cream market, after Amul, Vadilal and Kwality Walls . "The fresh dairy products' shelf lives are limited. So, the presence in Mumbai would greatly aid the Gujarat foray. Mother Dairy says the top two companies in the Gujarat ice-cream market are local brands; there's scope to develop its own space in the state. "We are looking at revenue of Rs 2,000 crore (from the dairy products business) in the next three to four years; about Rs 350 crores should come from the western market, which comprises Mumbai and Gujarat, For the dairy products business, the company aims to record revenue of Rs 800 crores by the end of this financial year.

AMUL & VADILAL:

Expecting to grow at 40 per cent this year, Vadilal Industries Ltd (VIL), India's second largest ice-cream maker after Amul, has increased its production capacity from 2.25 lakh litres a day to 3.25 lakh litres. VIL has invested Rs 40 crores on expansion-cum-modernisation plans at each of its two manufacturing plants in Pundhara, Gandhinagar district (Gujarat) and Bareilly (Uttar Pradesh) to ramp up capacities.

The BSE-listed company raised funds for this through internal accruals and borrowings, Mr Rajesh Gandhi and Mr Devanshu Gandhi, both Managing Directors, said here. The 80-year-old company has also set up India's fastest cone-making machine whose capacity is 18,000 cones an hour, as against 6,000 in the case of the existing machines. Since 60 per cent of sales come from cups, cones and candies, Vadilal plans to increase its share in the organised market from the current 20 per cent to 24 per cent by focusing on these as also small-value packs which are new growth drivers.

Its candy-making capacity — 15 lakh pieces a day — are the largest in India. With a view to achieve a growth of 40 per cent, as against the industry's 15 per cent, Vadilal is increasing its ad-spend by 40 per cent, with a focus on the electronic media. While the Chinese ice cream market size is around Rs 20,000 crores per annum, India's is only Rs 2,500 crores, of which, the organised sector market is estimated at Rs 1,500 crores.

Problems such as weak cold chains, logistics and reach to the rural areas are hampering the growth of this industry, the Gandhi’s added. At present, Vadilal has the largest range of ice creams in India with 150-plus flavours sold in a variety of more than 250 packs and forms. The range includes cones, candies, and bars, ice-lollies, small and big cups, family packs and economy packs.

TURNOVER

VIL, whose turnover in 2010-11 was around Rs 270 crore with a PAT of Rs 10 crores, is increasing the network of retailers from the current 50,000 to 70,000 across India. At present, it procures 70,000 litres of milk a day and is planning a backward integration to increase it in the near future.

Vadilal and Amul both having their origin from Gujarat it will very important to see in the future who gain the more market share in this tough competitive market.

SALES TURNOVER:

During the year, sales for GCMMF registered an impressive growth of Rs.13750 crores (Rs.137.50 billion). Last year, our turnover was Rs.11674crores (Rs.116.74 billion). This is an impressive growth, considering the shortage of milk we faced in the beginning two quarters of the year and that GCMMF has recorded a consistent 20% of growth rate for last five years. I am also pleased to note that our Federation has done remarkably well in most of our value-added consumer packs. Amul Milk in pouches has shown an impressive value growth of 29%. Sale of Amul Dahi and Amul Buttermilk have grown by remarkable 41% and 27% respectively in value terms. Our sales in Amul Cheese have shown

consistent and very impressive growth of 23%. Our dairy whitener, Amulya too has shown 26% growth overall sales.

RETAILING:

Retailing business at GCMMF Ltd. has received a fillip during the last financial year. Amul Exclusive parlours have reached to total tally of 6,315 which is almost 20% higher than the previous year's number of 5,350. The rate of growth has improved over the previous financial year wherein 965 Parlours were added at an average of approximately 3 outlets per day. Revenue from the retailing business has witnessed an encouraging growth with an annual turnover of `460 crores. The average throughput per APO is also steady and growing.

ADVERTISMENT;

Amul has just been ranked as the No. 1 Indian brand by Campaign magazine in its list of Top 1000 Brands of Asia for the third consecutive year. And I’m really excited. Amul is one brand which truly deserves this accolade. Formed in 1946, Amul is not one of those flamboyant multinationals but a dairy cooperative, jointly owned by 2.8 million milk producers in Gujarat. Talk about unity!

Amul has been a stellar example of rural development and has been at the forefront of the White Revolution in India which has made the country a production powerhouse for milk and milk products. With an annual turnover in excess of US$1.7 billion, Amul is the largest food brand

in India and has a presence in 40 countries globally. Here’s a mind boggling statistic. The daily milk collection from Amul’s producer members stands in excess of 9 million litres.

So what makes Amul such an amazing brand? While Amul is synonymous with milk and butter, it’s product range is quite formidable and includes ghee, cheese, curd, yogurt, chocolate, ice cream, shrikhand and many other products. This strategy has allowed it to reign supreme in the dairy products segment in India. The other thing that works in Amul’s favour is its amazing network. It has about 50 sales offices pan-India with more than 3,000 wholesale dealers and more than 5, 00,000 retailers. That is huge!

But they also have a secret weapon. The Amul mascot, a cute and chubby girl usually dressed in a polka dot dress, is universally recognisable in India. And the tagline, ‘Utterly Butterly Delicious Amul’ is just as catchy. Together, these two elements are a fantastic combination of brand elements for Amul. And get this, the Amul mascot has been the same since its inception in 1967. That’s almost 45 years ago. But the Amul girl is still as relevant as ever.

The Amul girl was the brainchild of Sylvester dacha, the managing director of the advertising agency AS. The ads were designed as a series of hoardings with designs relating to day-to-day issues. The beauty of these ads is that instead of using a celebrity, a character was created from scratch and associations built around it. The brand recall for the Amul girl is phenomenal across India today. And the biggest reason for this is the topical nature of the ads.

The Amul ads have witty one-liners which capture relevant events that have caught the fancy of the nation. This instantly creates a connect with the populace and helps them to identify with the brand in a surrogate manner. Apart from this, the humour is incisive and funny. The style of drawing is also very distinctive, and there is instant recognition of the brand without even needing to take a close look. All in all, the Amul girl has become iconic in Indian advertising.

While today’s advertising revolves around creating stylistic ads and abounds in celebrity endorsements, Amul is like a breath of fresh air that

has held onto its roots and yet managed to stay relevant over the years. Kudos to this very Indian brand!

FREEZE ON WHEELS IS ALSO A TYPE OF

PROMOTION BU WHICH SALE ARE INCREASED.

THIS TYPE OF FOW GENERALLY COST AROUND Rs 70000/-

Product Launch for the Month:

DIVISION OF MARKETING DEPT:

HEAD OFFICE

ZONAL OFFICE

DEPOT OFFICE

CARRYING & FORWARDING AGENTS (C & F)

WHOLESALE DEALERS

RETAILERS

CONSUMERS

ICE- CREAM RATE CHART FOR RETAILERS

REGULAR FLAVOUR

ML/ LITRES AMOUNT

ORANGE & COLA

CANDY

40 ML 5/-

VANILLA CUP

40ML & 90ML 5/- & 10/-

STRAWBERRY CUP

40ML & 90ML 6/- & 12/-

TWO IN ONE CUP

90ML 15/-

CHOCLATE CUP

90ML 15/-

MANGO CUP

90ML 15/-

KESAR PISTA CUP

90ML 20/-

MANGO FUNDOO

CUP

90ML 20/-

TRICONE ML/ LITRES PRICE

BUTTER SCOTCH

50ML/ 100ML/

10/- 15/- 22/-

120MLCHOCO CRUNCH

50ML / 100ML/ 120ML

12/- 20/- 25/-

CHOCOBAR 40ML/ 60ML 8/- & 15/-

FROSTICK 40ML /70ML 8/- & 15/-

NEW FRUIT LICKS

60 ML 10/-

DUETS 60ML 15/-

KOOLFI 60ML 15/-

CONTAINER ML/ LITRES PRICEVANILLA 750ML 100/-

MAGIC CHOCLATEVANILLA MAGIC

STRWBERRY

750ML 100/-

CHOCLATE KESAR BADAM

750ML 110/-

CHOCLATE & MANGO SWIRL

125ML 25/-

CATERING PACK

ML/ LITRES PRICE

VANILLA BAR

1 LITRES 80/-

TWO IN ONE 1 LITRES 80/-

BARBUTTER SCOTCH

2 LITRES 200/-

VANILLA 5 LITRES 390/-TWO IN ONE 5 LITRES 400/-BUTTER SCOTCH

5 LITRES 430/-

CHOCLATE BAR

5 LITRES 430/-

CHOCO CHIPS 5 LITRES

5 LITRES 650/-

TOOTY FROOTY

5 LITRES 650/-

KESAR PISTA 5 LITRES 650/-

SWOT ANALYSIS:

STRENGTH:

The brand name of Amul is the biggest thing that Amul has

inherited and this is biggest strength of it. People generally buy

Amul only by its brand in all the sector has excelled in all the 4ps of

marketing.

Because of its Indian origin thus creating the feeling of oneness in

the mind of the customers. People are very much confident about

the quality of product supply by the Amul.

The prices are relatively cheaper than those compared to Kwality

walls and Mother Dairy. It manufactures only milk and milk

products which is purely vegetarian thus creating confidence in the

minds of the consumers and also the place where the Amul

products are made are also very much hygienic.

Good Range of Products.

It has launched brands such as sugar free probiotic ice-creams.

There are many premium varieties. It’s got good food energy

valuei.e calories per 100ml-196.7.

It’s available in all metropolitan cities and is in the reach of

middleclass & above middleclass.

WEAKNESS:

Channel distribution is very much improper as compared to other

companies such as Kwality Walls and Mother Dairy because they

are not able to reach every place within the country.

Lack of capital invested in Ice-Cream as compared to other

company.

Also the visibility of the Amul Company is very much like there is no

advertisement or the advertisement has gone out dated or old

advertisement still going in place.

Also the man power of the company is poor.

Trade practises and Margins of other company are better than Amul

Also they are unable to meet the market demand during peak

season time.

Very much dependable on one distributor for supplying the goods

to all the retailers

No training schedule for training of Distributors salesman

Lack of co-ordination.

OPPURTUNITY:

By increasing the production & logistics capacity it can fulfil the

demand during the peak season.

By making different distributor for different regions so that it could

increase the business of the company

There is a lot of potential for growth and development as huge

population stay in rural market where other companies are not

targeting.

The Ice-Cream market is at growth stage with very less competition

so by introducing new brand and intensive advertising there can be

a very good scope in future.

There exists no brand loyalty in the Ice-Cream market and

consumers frequently shift their brands.

By solving the replacement problem it can maximise the attention

of the retailers for selling the products.

It can come up with new flavours which would be able to attract the

youth.

It should not restrict themselves to departmental stores in fact

come with new luxury brands which can be available in hotels.

It should use a strategy similar to what they used in case of butter

(Utterly butterly girl).

THREATS:

The biggest threat for Amul ice-cream industry would be its

competitors. Its ranked 3RD in the Indian Market.

It faces tough competition from the organized & unorganized sector

as well.

A slight change in the price of the ice-cream would shift its

customers to another brand.

Foreign players like Baskin-Robbins entering Indian market with

new premium brands at feasible prices.

Cut throat competition in the market from other players such

Kwality Walls, Mother Dairy, and Vadilal.

Customers are not brand loyal in Ice- Cream industry.

Kwality Walls and Mother Dairy focuses mainly on advertisement

thus creating a brand image.

PROJECT FINDINGS:

As per the information collected through primary & secondary resources, I have come out with the facts as follows:-

Proper supply chain management in Mother Dairy. The distributors of mother dairy fulfil the demand of retailers whenever they want. While in Amul, supply is only once a week.

Area code is not fixed to prevent mixing of distributers. It leads to confrontations among the distributors & retailers.

Unavailability of Amul products to the retailers. The other brands like Mother dairy & Kwality are offering a better

margin as compared to margin given by Amul. This attracts the retailers to sell other brands.

Extra benefits or schemes are target based in Amul, which again a tough job for the distributors & retailers.

In case of solving complaints of the Retailers, Mother dairy takes quick action on the day itself; while Amul takes a long time to sort out the matter.

In Mother Dairy, distributors & retailers have direct access to the company’s website regarding any problems in supply, sour milk, increased demand of product etc. They can talk directly to the officers at Mother Dairy or their customer care, while in Amul; it takes a long time to solve the problems.

PROJECT SUGGESTIONS:

Availability, affordability and accessibility are most important from consumers as well as retailers point of view.

Work on response channel. Set up of order desk and decide order time. Make reliable distributors for long period. Frequently visits by Amul representatives to the retailers to make a

familiar environment and it will also help to identify and remove redundancies.

Retail shops should be set up on a proper distance by which the 360* sales can be generated. Moreover less resource will generate high profits.

Amul as a brand has a very good image among the customers but due to poor promotional activities the visibility of Amul is not up to the mark so awareness level of Amul should be increased by more advertisement activities

Tie up be done with the juice centres , tea stalls and small institutional places like coffee houses, canteens, and be given special schemes to capture high growth.

Establishing best practices:

A key source of competitive advantage has been the enterprise's ability to continuously implement best practices across all elements of the network: the federation, the unions, the village societies and the distribution channel.

In developing these practices, the federation and the unions have adapted successful models from around the world. It could be the implementation of small group activities or quality circles at the federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level.

More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high.

For example, every Friday, without fail, between 10.00 a.m. and 11.00 a.m., all employees of GCMMF meet at the closest office, be it a department or a branch or a depot to discuss their various quality concerns.

Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a process check at the end to record how the meeting was conducted. Similar processes are in place at the village societies, the unions and even at the wholesaler and C&F agent levels as well.

Examples of benefits from recent initiatives include reduction in transportation time from the depots to the wholesale dealers, improvement in ROI of wholesale dealers, implementation of Zero Stock Out through improved availability of products at depots and also the implementation of Just-in-Time in finance to reduce the float.

Kaizens at the unions have helped improve the quality of milk in terms of acidity and sour milk. For example, Sabar Union's records show a reduction from 2.0% to 0.5% in the amount of sour milk/curd received at the union.

The most impressive aspect of this large-scale roll out is that improvement processes are turning the village societies into individual improvement centres.

PRODUCT LIFE CYCLE STAGES:

A product passes through distinct stages during its life in market, each posing

Different challenges, opportunities and problems .Profits rise and fall at different

Stages of the product life cycle. There are four different stages of product life cycle,

Namely

1. INTRODUCTION STAGE

2. GROWTH STAGE

3. MATURITY STAGE

4. DECLINE STAGE

Different products of AMUL are in different stages in the product life cycle.

Products like milk, butter, chocolate and cheese are in the maturity stage, while

Ice-creams, chocolates and shrikhand are still in the growth stage. On the other Hand, products like milk powders, infant food, frozen food items and mix are in Introduction Stage. The Company adopts aggressive selling techniques for those products which are in the introductory stage, while very less promotional programmes are carried out for those products which are in the growth or maturity stage.

CONCLUSION:

Amul means different things to different people.

To a milk producer – A life enriching experience

To a consumer – Assurance of having wholesome milk

To a mother – A reliable source of nourishment for her child

To the country – Rural development and self-reliance

Amul has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and

Milk products in the world. Amul products have been in use in millions of homes since 1946. Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice

cream; cream; shrikhand; paneer; gulab jamuns; beverages; Nutramul etc. have made it a leading food brand in India. Today Amul is a symbol of many things like of high-quality products sold at reasonable prices & the genesis of a vast co-operative network.

Amul is growing in Kolkata along with the increase in size of market.

With the help of this market survey, Amul can improve its market and it can eliminate the inefficiencies in the distribution system, retailers & customer complaints.

India is a country where milk and its products are used heavily. So opportunities are always there in this segment.

Amul has built a strong position in the market when it comes to customer and brand loyalty.

In order to be a market leader in near future, Amul should give more attention to advertisements.

Company should make policies and schemes to give benefits and better margins to its distributors and retailers.

The main reason for Amul’s market being lower is its late supply management. It is therefore suggested that by working on some key areas Amul can still become a market leader in coming 3-4 years.

People are mostly satisfied with the overall quality of Amul Milk, but for the existence in the local market Amul must use aggressive selling techniques

Annexure-II:

Project Details:

Title of the Project: Channel Distribution Analysis

Synopsis:

This project about understands the demand for the Amul product in the market and what happens in case of of short supply and how to tackle with them.

&

Developing the strategies for opening Amul Preferred Outlet and New Ice cream Parlour.

From distributor point of view:

To find out the return of income of the distributor in the market how much they are spending in the market at what point of time...

From company point of view:

What are the distributor and retailers business strategy by dealing with the Amul products and are they satisfied with them or not.

Goals:

By making a deep survey for the Amul ice cream product and what are the products are in demand and is that product has proper supply or not if not then find out the reasons for it and find out who has the fault is distributor over stocking the product to increase the demand for the product and provide such value information towards the company so that the company could see the rest

Secondly to increase the number of apo and ice cream parlour and also to sell of HADF (Hamara Apna deep freeze) in this season in the particular terriortary which would result in the more profitable for the company?

So by doing this it would provide some value addition toward the company.

Proposed Methodology: (if possible)

Schedule of Completion:

To complete a particular terriortary minimum of 15 days’ time is required to complete each and every region in it.

A territory in which we posted is known as Howrah Depot and it generally consisted of 4 regions.

Howrah, Hooghly, North 24 Parganas, Burdawan.

References:

Things which were required for our project was details of all the Amul products that are available in the and also the list of distributors of a particular region who are dealing with distribution channel for supplying the product in the market

Signature : SHASHANK SHAW

Date : 03-05-2013

Place : KOLKATA

Annexure-III:

Weekly SIP Progress Report

Name of the student: SHASHANK SHAW

Enrolment No:

SIP Company: AMUL

Company Guide: Mr Mukul Ranjan Sinha

Faculty Guide: Proff Anindya Dutta

Project Title: Channel Distribution Analysis

Progress Report:

Targets/Tasks Assigned:

Along with the distributor visits the various shops across the Barasat, Madhayagram, Sodpur, and New Barrackpore.

Finding the opportunity of opening new APO and Parlour.

Convincing the customers to buy Amul deep refrigerator.

Achievements/Progress during the week:

Received 13 orders for deep freeze in north 24 Parganas region and and still in progress convincing the customer for opening the Amul preferred outlet (APO)

Plan for the next week:

Completed a survey in north 24 Parganas region and now moving on to the Howrah and Hooghly region...

Reasons for non-completion, if any:

Week No:

Date:

Attendance during the week: Attendance till date:

Required Actual

Required Actual

Signature of the Student

Signature of the Industry Guide

Signature of the Faculty

BIBLIOGRAPHY

WEBSITES: -

WWW. ECONOMICTIMES.COM

WWW. HINDUDAILYNEWS.COM

WWW. WIKIPEDIA.COM

WWW. BUSINESS LINE.COM

WWW. AMUL.COM

WWW. KWALITYWALLS.COM

WWW.MOTHERDAIRY. COM

WWW.VADILAL .COM