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ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for Gujarat Co-operative Milk Marketing Federation Ltd. It has been an enriching experience for me to
undergo my summer training at “GCMMF”, which would not have possible without the
goodwill and support of the people around. As a student of “Management Education and
Research Institute” New Delhi, I would like to express my sincere thanks to all those who
helped me during my training program.
I would like to express my gratitude to all those who gave me the encouragement to completethis project. I would like to thank my college authorities and Director Mr. Y.L. Grover, forproviding me the opportunity to work with the one prestigious organization.
I would like to give my heartily gratitude to the Mr. Narendra Singh, Senior Executive
(SALES), GCMMF Ltd., New Delhi for having given me the opportunity to do my project
work in the organization and lighted my way of progress with his guidance.
My sincere and deepest thanks to Mrs. Deep Shikha Kalra, Faculty Member of
MANAGEMENT EDUCATION AND RESEARCH INSTITUTE, NEW DELHI for having
spared his valuable time with me and for all the guidance given in executing the project as perrequirements.
I would like to give my special thanks to my parents, their love, support and blessing enabledme to complete this Project work.
However, I accept the sole responsibility for any possible error of omission and would beextremely grateful to the readers of this project report if they bring such mistakes to mynotice.
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DECLARATION
I hereby declare that the following project report titled “MARKET ANALYSIS &
SALES DEVELOPMENT OF AMUL MILK” at Gujarat Co-operative Milk
Marketing Federation Ltd., New Delhi is an authentic work done by me. It is to the
best of my knowledge and belief. This is to declare that all my work indulged in the
completion of this Project Report such as research, competitor analysis and sales
promotion is a profound and honest work of mine.
Date:
Mr. KAILASH KUMAR
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-:CONTENTS:-
Sr. No. Subject Page No.
1 EXECUTIVE SUMMARY 4-6
2 INTRODUCTION 7-9
3 INDUSTRY & COMPANY PROFILE 10-31
4 OBJECTIVE & SCOPE OF STUDY 32-33
5 RESEARCH METHODOLOGY 34-38
6 DATA PROCESSING & ANALYSIS 39-49
7 OBSERVATION & FINDINGS 50-52
8 LIMITATIONS 53-54
9 CONCLUSION 55-57
10 SUGGESTION & RECOMMENDATION 58-60
11 BIBLIOGRAPHY 61-62
12 ANNEXURE 63-65
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EXECUTIVE SUMMARY
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In today’s competitive world while entering in the market it is very necessary to have
good knowledge of the potential of a particular market. The information regarding the
activities of competitor’s existing in the market so that we can plan our each activity according
to that. It is also necessary to retain the existing customers apart from attracting the new
customers.
The Project is concern with the market analysis & sales development of Amul dairy
milk in Sangam Vihar and nearby area. The project included as part of PGDM Programme
and the project is done from 7th
May to 30th
June.
1.1 Title:
“MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN SANGAMVIHAR AND NEARBY AREA”.
1.2 Organization:
“Gujarat Co-operative Milk Marketing Federation (GCMMF), Anand, Gujarat”.
1.3 Objective:
The Primary objective of study was to find size of retail network of Amul Milk in
specific areas of New Delhi city. In the study my intention was go through the retail network of
Amul dairy milk to know retailers view about supply chain of Amul dairy milk, to know the
complaints of Amul dairy milk and to find the suggestions from retailers for more penetration
of Amul dairy milk in Sangam Vihar and nearby area.
The secondary objective was to find customer response towards Amul milk. My aim
was to go through the customers to know the interest of purchasing & using Amul milk.
Basically the study was for the demand of Amul milk among the customers. And also to know
the complaints on Amul milk.
1.4 Research Methodology:
Descriptive research was done through retailers using Judgment sampling.. I have
collected primary data through questionnaire which was filled by retailers. Questions were
both open and close ended. The secondary data was collected from website www.amul.com.
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1.5 Findings:
In Sangam Vihar region there are around more players in of liquid milk exist. Those
are like DMS, Mother Dairy, Amul, Paras, and many other local brands.
As per the findings MOTHER DAIRY is the Market leader and having more market share.
Awareness of Amul dairy milk among the retailers as well as consumers is good but acceptance
is low. The sale is totally depends on the retailers.
1.6 Data Analysis:
The data analysis has done area wise. It gives idea about the competitors of Amul dairy
milk. It gives information regarding their market share.
1.7 Conclusion:
It was concluded that Amul dairy milk i.e. Full Cream milk and Cow milk has a high
potential in the market and it is the known to its customers but still its acceptance is
comparatively low as other competitors present in the market, because perception of
customers towards the product is wrong, some of the consumer continuously using other
brand and they do not want to switch over other brand and most of the customers are price
sensitive.
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INTRODUCTION
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2.1 CONTEXT OF THE TOPIC:
The dairy industries companies run mainly on the factors such as availability, service
frequency, affordability, taste and marketing. Availability is plays a vital role becausepurchasing power is depend upon availability of that product, in case distributors and retailers
service matter a lot. Retailing includes all the activity in selling goods or service directly to the
customers or personal nonbusiness use. A retailer or retail store is any business enterprises
whose sales volume comes primarily from retailing.
Retailers are the part of milk marketing channels and perform the work of moving
goods from producers to the customers. It overcomes the time, place and possession gap that
separates goods and service from those who needs or wants them. Retailers as member of
marketing channel perform a number of key functions. Some functions (physical, title,
promotion) constitute a forward flow of activity from the company to the customers; other
functions (ordering and payment) constitute a backward flow from customers to the company.
Still others (information, negotiation, finance and risk taking) in both directions.
The project delves into the workings from the distribution aspect of an FMCG
organization, in detail. AMUL, being an FMCG company, attaches a lot of significance to the
distribution aspect of its business. The distribution channel of AMUL holds a lot of potential in
affecting the demand or sales of AMUL products through delivery on time, delivery of variety
of products, the retailer-friendliness of the policies being set by the distributors and equitable
distribution of products to all the retail outlets in a particular region, to name a few.
So, In order to plan retail coverage we map out the positions of Amul outlets, Amul
parlors, and competitor’s outlets. This project was carried out in Delhi city. For analyzing and
presenting information that is tied to geographical location, we divided the city in different
wards. By analyzing geographical representation and sales data with spatial distribution Amul
outlets, competitor’s outlets and the density of others in an area, we identify unexplored area
and plan location outlets to increase its market penetration. Using such research we can
ascertain the quality and depth of retail penetration in specific area.
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2.2 Need of Study:
Managers are always curious about the position of their company’s products in the
market which largely depend upon the company’s goodwill, and the position of their brand. In
order to maximize the sale and profit, company must deliver outstanding satisfaction to the
retailers, wholesaler & customers. So market survey of retailers, wholesalers & customers,
chart out the position of the company as compared to the competitors. It helps the organization
to find out the brand being sold most by the retailers along with their stocking and also
consumer buying preferences.
2.3 Statement of The Problem:
“MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN SANGAM
VIHAR AND NEARBY AREA”
It helps to study all activities which can be used to influence large number of customers so
as to increase the sales of the Amul milk effectively”.
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INDUSTRY
&
COMPANY PROFILE
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3.1 Industry Profile:-
3.1.1 The World Dairy Situation:
According to a report published by International Dairy Federation (IDF) on the World
Dairy Situation 2007 the worldwide milk production is expected to grow at a slower pace in
20010-11 and is estimated at 655 million tones, only 9 million tones more than the production
of 2009 – 2010. The strongest growth would be in Asia, notably in China and India. Milk
production is projected at 36 million tonnes in China and 94.60 million tones in India. India
would continue to be the largest milk producer, followed by the US, with projected production
of 82.60 million tonnes.
Major changes are not expected in dairy products basket. World butter production
increased for two years, in 2006 and 2007 and then declined in 2008-09. It is expected to
decline again in 2009-10. Industrial cheese production is continuing to grow. The major cheese
producing regions are Europe and North America and both areas are expected to have a faster
growth rate.
The production of condensed and evaporated milks is subject to a declining trend for many
years in the developed market. It has been replaced by many other dairy products, especially
liquid milks of UHT type, coffee cream and coffee whitener including some of the non-dairy
origin.
World trade in dairy products after a period of relative stagnation, started recovery in
the second half of 2008-09 and it continued in the first half of 2009-10. The recovery is due to
prosperity resulting from economic demand. However, the bullish price situation is not likely
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to continue long and would level down.
Export of butter and butter-oil recovered in 2008-09 and this recovery continued in
early 2009-10. The total volume of the world trade in cheese has accelerated and this trend is
likely to continue in the year 2010.
The outlook for the trade in dairy commodities for 2009-10 appears bright. However,
since the new market equilibrium, in respect of prices has to be found, the question is whether
international trade in dairy products will continue its growth in 2009-10 at the same
momentum as in previous years. Because of the price situation in 2009-10, one may ask
whether demand can follow the expected trends, but it would be premature to expect
stagnation in the trade. In established markets, the potential for demand to reduce slightly canrelease the additional supplies, which are needed to maintain the growth of trade.
3.1.2 Indian Dairy Industry -- A Profile:
India’s dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. More ever with WTO regulations
expected to come into force in coming years all the developed countries which are among big
exporters today would have to withdraw the support and subsidy to their domestic milk
product sector. Also India today is the lowest cost producer of per liter of milk in the world, at
27 cents, compared with the US’ 63 cent. Also to take advantage of this lowest cost of milk
production and increasing production in country multinational companies are planning to
expand their activities here. Some of those milk producers have already obtained quality
standard certificates from the authorities. This will help them in marketing their products in
foreign countries in processed form.
The urban market for milk products is expected to grow at an accelerated pace of
around 33% per annum to around Rs.83, 500 crores by year 2015. This growth is going to
come from the greater emphasis on the processed food sector and also by increase in the
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conversation of milk into milk products. By 2015, the value of Indian dairy produce is expected
to be Rs 10, 00,000 million. Presently the market is valued at around Rs7,00,000
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3.1.3 Co – Operative Unions:
Backward integration of the process led the cooperatives to advances in animal
husbandry and veterinary practice. The system succeeded mainly because it provides anassured market at remunerative prices for producers' milk besides acting as a channel to
market the production enhancement package. What's more, it does not disturb the agro-
system of the farmers. It also enables the consumer an access to high quality milk and milk
products. Contrary to the traditional system, when the profit of the business was cornered by
the middlemen, the system ensured that the profit goes to the participants for their socio-
economic upliftment and common good.
Recently the Indian cooperative movement got a much needed facelift. With
competition snapping at its heels, the sector which has been governed by arcane laws until the
recent past will see a special provision inserted in the companies Act, 1956. All the cooperative
unions will be re-christened cooperative companies; they will come under the purview of the
registrar of companies, instead of the registrar of cooperatives.
Dairy cooperatives account for the major share of processed liquid milk marketed in
the country. Milk is processed and marketed by 170 milk producer’s cooperative unions,
which federate into 15 state co-operative milk marketing federations.
The dairy board's programmes and activities seek to strengthen the functioning of
dairy co-operatives, as producer-owned and controlled organizations. NDDB supports the
development of dairy co-operatives by providing them financial assistance and technical
expertise, ensuring a better future for India's farmers.
Over the years, brands created by cooperatives have become synonymous with quality
and value. Brands like Amul (GCMMF), Mother Dairy, DMS, Paras, Nestle are among those
that have earned customer confidence.
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• The Dairy Cooperative Network
Includes 170 milk unions
Operates in over 338 districts
Covers nearly 1,08574 village level societies
Is owned by nearly 12 million farmer members.
Apart from making India self sufficient in milk, these dairy co-operatives have
established our country as the largest milk-producing nation in the world.
3.2 The Organization:
3.2.1 Introduction & History:
In the year 1946 the first milk union was established. This union was started with 250
liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was
known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union
selected the brand name AMUL in 1955.
The brand name Amul means “AMULYA”. This word derived form the Sanskrit word
“AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested
the brand name “AMUL”. Amul products have been in use in millions of homes since 1946.
Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a
leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of
many things like of the high-quality products sold at reasonable prices, of the genesis of a vastco-operative network, of the triumph of indigenous technology, of the marketing savvy of a
farmers' organization. And have a proven model for dairy development (Generally known as
“ANAND PATTERN”).
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In the early 40’s, the main sources of earning for the farmers of Kaira district were
farming and selling of milk. That time there was high demand for milk in Bombay. The main
supplier of the milk was Polson dairy limited, which was a privately owned company and held
monopoly over the supply of milk at Bombay from the Kaira district. This system leads to
exploitation of poor and illiterates’ farmers by the private traders. The traders used to beside
the prices of milk and the farmers were forced to accept it without uttering a single word.
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However, when the exploitation became intolerable, the farmers were frustrated. They
collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom
movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-
operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers toShri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at
Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society
for collection of the milk.
These village societies would collect the milk themselves and would decide the prices at
which they can sell the milk. The district union was also form to collect the milk from such
village co-operative societies and to sell them. It was also resolved that the Government shouldbe asked to buy milk from the union.
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However, the govt. did not seem to help farmers by any means. It gave the negative
response by turning down the demand for the milk. To respond to this action of govt., the
farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk
was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk
commissioner of Bombay then visited Anand to assess the situation. Having seemed the
condition, he decided to fulfill the farmers demand.
Thus their cooperative unions were forced at the village and district level to collect and
sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien
showed main interest in establishing union who was supported by Shri Tribhuvandas Patel
who lead the farmers in forming the Cooperative unions at the village level. The Kaira district
milk producers union was thus established in ANAND and was registered formally on 14th
December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was
commonly resolved to sell the milk under the brand name AMUL.
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At the initial stage only 250 liters of milk was collected every day. But with the growing
awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul
collect 11 lakhs liters of milk every day. Since milk was a perishable commodity it becomes
difficult to preserve milk for a longer period. Besides when the milk was to be collected fromthe far places, there was a fear of spoiling of milk. To overcome this problem the union
thought out to develop the chilling unit at various junctions, which would collect the milk and
could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150
chilling centers in various villages. Milk is collected from almost 1073 societies.
With the financial help from UNICEF, assistance from the govt. of New Zealand under
the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was
planned. Dr.Rajendra Prasad, the president of India laid the foundation on November 15,
1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul
dairy on November 20, 1955.
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3.2.2 Amul Secret Of Success:
The system succeeded mainly because it provides an assured market at remunerative
prices for producers' milk besides acting as a channel to market the production enhancement
package. What's more, it does not disturb the agro-system of the farmers. It also enables the
consumer an access to high quality milk and milk products. Contrary to the traditional system,
when the profit of the business was cornered by the middlemen, the system ensured that the
profit goes to the participants for their socio-economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a pattern
and model for emulation elsewhere.
Amul has been able to:
Produce an appropriate blend of the policy makers farmers board of management and
the professionals: each group appreciating its rotes and limitations.
Bring at the command of the rural milk producers the best of the technology and
harness its fruit for betterment.
Provide a support system to the milk producers without disturbing their agro-economic
systems.
Plough back the profits, by prudent use of men, material and machines, in the rural
sector for the common good and betterment of the member producers.
Even though, growing with time and on scale, it has remained with the smallest
producer members. In that sense, Amul is an example par excellence, of an intervention
for rural change.
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The Union looks after policy formulation, processing and marketing of milk, provision
of technical inputs to enhance milk yield of animals, the artificial insemination service,
veterinary care, better feeds and the like - all through the village societies. Basically the union
and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNIONLIMITED), a name which suggest THE TASTE OF INDIA.
Amul (Anand milk union ltd.) is based on four hands, which are coordinated with each
other. The actual meaning of this symbol is co-ordination of four hands of different people by
whom this union is at the top position in Asia.
First hand is of farmers, without whom the organization would not have existed.
Second hand is of processors, who process the row material (milk) into finished goods.
Third hand is of marketer, without whom the product would have not reached the
customers.
Fourth hand is of customers, without whom the products would have not carried on.
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3.2.3 GCMMF Overview:
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food
products marketing organisation. 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.
Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest
Organisation in FMCG industry engaged in marketing of milk & milk products under the
brand names of AMUL and SAGAR with an annual turnover exceeding Rs 5000 crores.
GCMMF is a unique organisation. It's a body created by Farmers, managed by
competent professionals serving a very competitive and challenging consumer market. It is a
true testimony of synergistic national development through the practice of modern
management methods.
3.2.4 Vision:
GCMMF will be an outstanding marketing organization, with specialization in marketing
of food and dairy products both fresh and long life with customer focus and IT integrated. The
network would consist of over 100 offices, 7500 stockiest covering at least every Taluka. Head
quarter servicing nearly 10 lakh outlets with a turnover of Rs.10,000 Cr and serving several co-
operatives. GCMMF shall also create markets for its products in neighboring countries.
3.2.5 Mission:
We at GCMMF endeavor to satisfy the taste and nutritional requirements of the customer
of the world through excellence in the marketing by our committed team. Through co-operative
networking, we are committed to offering quality product that provides best value for money.
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3.2.6 Sales Turnover:
Sales turn over of GCMMF from 1994 to 2009:-
Sales Turnover Rs (million) US $ (in million)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504
3.2.7 Areas of Operation:
Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA,
Bangladesh, Australia, China, Singapore, Hong Kong and a few South African nations. Other
potential markets being considered include Sri Lanka.
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3.2.8 Some Facts:
Members: 13 district cooperative milk producers' Union
No. of Producer Members: 2.79 million
No. of Village Societies: 13,328
Total Milk handling capacity: 11.22 million litres per day
Milk collection (Total - 2011-12): 3.05 billion litres
Milk collection (Daily Average 2011-12): 8.4 million litres
Milk Drying Capacity: 626 Mts. per day
Cattlefeed manufacturing Capacity: 3500 Mts per day
3.2.9 Achievement & Awards:
Amul: Asia’s largest dairy co-operative was created way back in1946 to make the
milk producer self-reliant and conduct milk- business with pride. Amul has always been the
trend setter in bringing and adapting the most modern technology to door steps to rural
farmers.
Amul created history in following areas:
First self motivated and autonomous farmers “organization comprising of more than
5000000 marginal milk producers of Kaira District”.
Created Dairy co-operatives at village level functioning with milk collection centers
owned by them.
Computerized milk collection system with electronic scale and computerized accounting
system.
The first and only organization in world to get ISO 9000 standard for its farmers co-
operatives.
First to produce milk from powder from surplus milk. Amul is the live example of how
co-operation amongst the poor marginal farmers can provide means for the socio-
economic development of the under privileged marginal farmers.
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AWARDS:-
Amul a co-operative society and its co-operation has led many different awards in its favour.
Magsaysay award for community leadership presented in manila.
Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien
1964: “Padmabhusan” award given to Shri T.K. Patel
1965: “Padmshri” awarded was given to V. Kurien, general manager, by the president of
India.
1987: “Best Productivity” awarded by national productivity council for the year 1985 -86awarded to Amul dairy.
1988: “Best Productivity” awarded for the second successive year 1986-87 by thepresident of India, Mr. R. Venkatrao to kaira union.
1993: “ICA” Memenoto towards genuine and self sustaining cooperative worldwide ICAregional office for Asia and pacific, New Delhi, 1996.
1999: G.B.Birla award. Moreover the Amul union has achieved the prestigious ISO 9001-2000 and HACCP Certificate and effects are got to obtain ISO 14000.
1999: Best of All" Rajiv Gandhi National Quality Award for the year,
2003: The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the topscorer in the service category of the prestigious IMC Ramkrishna Bajaj NationalQuality Award.
2006-07: GCMMF has bagged award for excellent performance in exports of dairyproducts from Agricultural and Processed Food Exports Development Authority(APEDA).
2007: Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit.
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3.3 List of Products Marketed:-
Bread spreads
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
Cheese Range
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned
Utterly Delicious Pizza
Mithaee Range (Ethnic sweets)
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
Amul Mithaee Kulfi Mix
Avsar Ladoos
Pure Ghee
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee
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UHT Milk Range
Amul Shakti 3% fat Milk
Amul Taaza 1.5% fat Milk
Amul Gold 4.5% fat Milk
Amul Lite Slim-n-Trim Milk 0% fat milk
Amul Shakti Toned Milk
Amul Fresh Cream
Amul Snowcap Softy Mix
Infant Milk Range
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 (6 months above)
Amulspray Infant Milk Food
Milk Powders
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
Fresh Milk
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardized Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk
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Sweetened Condensed Milk
Amul Mithaimate Sweetened Condensed Milk
Curd Products
Yogi Sweetened Flavored Dahi (Dessert)
Amul Masti Dahi (fresh curd)
Amul Butter Milk
Amul Lassee
Amul Ice creams
Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)
Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival,
Badshahi Badam Kulfi, Shista Pista Kulfi)
Utsav Range (Anjir, Roasted Almond)
Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)
Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black
Currant)
Sundae Range (Mango, Black Currant, Chocolate, Strawberry)
Millennium Ice cream (Cheese with Almonds, Dates with Honey)
Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi Pista
Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)
Cool Candies (Orange, Mango)
Cassatta
Tricone Cones (Butterscotch, Chocolate)
Megabite Almond Cone
Frostik - 3 layer chocolate Bar
Fundoo Range - exclusively for kids
SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)
Health Isabcool
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Chocolate & Confectionery
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Brown Beverage
Nutramul Malted Milk Food
Milk Drink
Amul Kool Flavoured Milk
Health Beverage
Amul Shakti White Milk Food
Ready to Serve Soups
Masti Tomato Soup
Masti Hot & Sour Soup
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PLANTS
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk
butter etc.
Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, AmulGanthia and Amul lite.
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Third plant is at Kanjari, which produces cattelfeed.
Fourth plant is at Khatraj, which engaged in producing cheese.
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OBJECTIVE
&
SCOPE
OF THE STUDY
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4.1 Objectives of Project:
The main objective of the Study can be listed as follows:
A. Primary Objective
The Primary objective of study was to find size of retail network of Amul Milk in
specific areas of New Delhi city. In the study my intention was go through the retai
network of Amul dairy milk to know retailers view about supply chain of Amul dairy
milk, to know the complaints of Amul dairy milk and to find the suggestions from
retailers for more penetration of Amul dairy milk in Sangam Vihar and nearby area.
B. Secondary Objective
The secondary objective was to find customer response towards Amul milk. My
aim was to go through the customers to know the interest of purchasing & using Amu
milk. Basically the study was for the demand of Amul milk among the customers. And
also to know the complaints on Amul milk.
4.2 Scope of Project:
The study carried out in Sangam Vihar region so its scope is mainly limited to Sangam
Vihar region.
It gives information about the size of the retail network.
It gives information about the services given by distributor to their
retailer. It gives information about the competitors’ products.
It will serve consumer in better manner.
It provides suggestions to the company to improve their products sales.
It gives information about the sales promotion activities to improve the milk
sale.
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RESEARCH
METHODOLOGY
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5.1 Research Methodology:
The research was conducted from 7th
May, to 30th
June, 2012. The research include
meetings with the retailers, consumers and dealers. It included preparation of the questionnaire to
be answered by above people for knowing the competitive position of Amul in the milk market. The
views of the above parties were recorded in the research as per the questionnaire set by us.
• Research Approach:
The objective was to know the competitive position of Amul in the milk market thus in
order to successfully conduct the research the unbiased opinion of the above parties was
desirable. Thus we conducted the research as the representative of Amul company and
sometimes the representatives of the other company like Mother Dairy or Paras in order
to have an unbiased opinion of the concerned persons and it worked to achieve our goal.
• Research Instrument:
The research instrument was the structured questionnaire formulated for the
respondents.
• Types of Question:
The second important aspect in the designing a question is to decide which types of question
are to be used. Question can be classified in various ways.
Questionnaire contains following type information-
• Open-ended question
• Dichotomous question
• Multiple-choice Question
Phrasing of Question:
In questionnaire, I try to phrase the question in logical way. For example I arrange
question in sequence as personal information, awareness data, usage data, and finallyrelated to reason and satisfaction.
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5.1.5 Sampling Plan:
Sample Size:
The sample size was as follows:
SR. NO. RESPONDENT TOTAL NUMBER
1. Retailers 110
2. Distributors 4
Sampling Technique:
A stratified sampling technique was used. A different Stratum for different type of respondent within every stratum the respondents was selected as per convenience basis.
5.1.6 Method of Survey:
Personal Interview:
It is direct form of investigation, involving face-to-face communication with free
feedback information. It offers a sense of participation. It is more flexible form of data
collection. Use of unstructured, open-end questions is possible. Rate of refusal is low. Depth
interview is possible. Complex questions can be asked. The interview can have questions to
secure more information. Observation approach can be combined to verify age, income, status,
standard information. Visual aids in the form of catalogues samples etc. can be used to get
views, opinions, and attitudes of responder.
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5.3.1 Area of Operation:
The areas of operation were the research was done are as follows:
Sangam Vihar
Ratiya Marg Mangal Bazar
Vir Bazar
Sani Bazar
Band Road
Sanik Form
Asthal Mandir
Devli Road
Tigdi
Khanpur
Madangir
How the survey conducted
To approach the outlets with the following requirements in mind
At Approach:
What type of shop it is? (hotels, bakery, restaurant, general
stores, super market)
Does it stock Amul products?
What other brands available in the shop
Secondary Level:
Whether it sells milk ?
If yes, whether it sells Amul milk ?
Whether the company provides any promotional support ?
Territory Level:
Does he sell local milk or not ?
Which is the most selling milk in the market ?
Who supplies milk to your shop ?
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Does the delivery of milk is on time ?
What is the mode of payment credit or cash ?
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DATA PROCESSINNG
&
ANALYSIS
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Data Analysis For Retailers:-
1) Number of retailers stocking Amul milk.
Answer No. of Percentage respondents
Yes 102 92.72%
No 8 7.28%
Interpretation:
The above graph indicates that more than 90% of the retailers are selling Amul
milk.
It shows that Amul milk brand is popular among the retailers.
92.72%
7.28%
No. of respondent
YES
NO
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2) Sizes of Amul milk packets retailers preferred to store. (Out of 110 retailers only 102
were buying Amul milk.)
Interpretation:
The above graph shows that most of the retailers preferred to stored 500 ml and 1 Ltr
pouch of Amul milk as per the customer demand.
In case of 6 Ltr. Pouch there was no customers demand.
Answer No. of PercentageRespondents
500 ml 80 78.43 %
1 Ltr 22 21.57 %
6 Ltr 0 0 %
78.43%
21.53%
00.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
500 ml 1 Ltr 6Ltr
No. of respondent
No. of respondent
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3) Reasons for Amul milk not stored by retailers.
(Out of 110 retailers 8 were not buying Amul milk.)
Answer No. of respondents
Low margin 4
No replacement for leakage 3
No distribution 1
Interpretation:
From above graph it is clear that most of the retailers were not satisfied with Amul
replacement and margin policy.
Very less retailers complained about distribution network
4
3
1
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Low margin No replacement
for leakage
No distribution
N0. of respondent
N0. of respondent
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4) Preference of retailer’s to milk brand.
BRANDS RESPONDENTS
Amul 47
MotherDairy
52
DMS 8
Paras 3
Interpretation:
The above graph shows that the Mother Dairy is most preferable brand in all.
Few retailers also prefer DMS and Paras brands.
47
52
8
3
0
10
20
30
40
50
60
Amul Mother Dairy DMS Paras
No. of respondents
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5) Sources from where retailers get Amul milk.
(Out of 110 retailers only 102 were buying Amul milk.)
Answer No. of Percentage respondents
Distributors 35 34.32 %
Other suppliers 67 65.68 %
Interpretation:
More than 65% retailers purchased milk from other suppliers.
34.32%
65.68%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Distributor Other suppliers
No. of respondents
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6) Retailer’s satisfaction with Amul distributor.
(Out of 110 retailers only 102 were buying Amul milk)
Answer No. of Percentage respondents
Yes 42 41.18 %
No 60 58.82 %
Interpretation:
Graph shows that less than 50% of the retailers were satisfied with the service provided
by the Amul distributors.
41.18%
58.82%
No. of respondents
YES
NO
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7) Awareness among retailers about different Sales Promotional activities for Amul milk.
(Out of 110 retailers only 102 were buying Amul milk.)
Activities Aware Not aware
Price off 62 40
Credit facility 29 73
Advertisement 93 9
P-O-P Displays 78 24
Interpretation:
The graph shows that retailers were aware about the sales promotion activity that
Amul carried out, but some respondents were unaware about various activities.
Most of the retailers were aware about advertisement and P-O-P Display scheme during
festivals.
Only 29% retailers aware about credit facility.
62
29
93
78
40
73
9
24
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Price off Credit facility Advertisement P-O-P Display
Not aware
Aware
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8) Awareness among retailers for Amul Parlor (APO) and its benefits.
(Out of 102 retailers only 48 were questioned as they had large store.)
Answer No. of Percentage respondents
Yes 36 75 %
No 12 25 %
Interpretation:
From graph it can be interpreted that the awareness about APO is very low.
75%
25%
No. of respondent
YES
NO
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9) Interest of retailers in opening an Amul Parlor (APO).
(Out of 102 retailers only 48 were questioned as they had large store.)
Answer No. of Percentage respondents
Yes 9 18.75 %
. No 39 81.25 %
Interpretation:
The graph represent that very less number of retailers were interested to start APO.
18.75%
81.25%
No. of respondent
YES
NO
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10) Consumer’s expectation from Amul milk.
ATTRIBUTE RESPONDENTS PERCENTAGE
Good quality 14 13.73 %
Clear packaging date 32 31.37 %
Availability 56 54.90 %
Interpretation:
The question asked to the retailers where the Amul milk is being sale, and tried to
collect feedback of customers about Amul milk.
More customers were having complaints about the clear date of packaging and availability.
Some customers were not happy with quality of milk.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Good Quality Clear Packaging
Date
Availability
13.73%
31.37%
54.90%
No. of respondents
No. of respondents
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OBSERVATION
&
FINDINGS
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7.1 Observation Findings:-
7.1.1 Retailers: (super market, grocery shops, ets)
Because of low profit margin almost all retailers are not interested in Amul milk selling.
The 250 ml milk pouch are not available to the retailers for selling.
On question, why retailers are not interested in selling of Amul milk, it is found theywere not happy with margin, availability and replacement of leak pouches.
Retailers were selling different brands. Because they were able to receive more marginfrom non popularized brand that they could not from well known brands.
All retailers get Amul milk from company selected distributors.
Measurable amount of retailers were not happy with the distributors, because of frequent change in distributors and late delivery of milk.
All retailers were familiar with sales promotion activities undertaken by Amul. But more of the activities were not communicated by distributors. So it shows that distributors aretaking the advantage of such activities.
Some questions were asked with view to convert retailers into distributors, but due tolow margin they denied that.
Retailers were not interested to start APO because to start APO one required largeamount investment i.e. near about 2 Lakhs and with this it is mandatory to sale onlyAmul products, so most of the retailers did not show interest in APO.
Retailers also demand for the replacements for the damage due to the spoilage of milk
that they have to bear when the Amul milk gets spoiled after the purchase.
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7..2 End Users: (House holds)
Consumer’s preference for purchasing of liquid milk is mainly based on quality,taste, availability, home delivery and freshness respectively.
Awareness level among the consumers is around 75% to 80% but still onlyaround 15% consumers are consuming Amul milk.
Consumers have a perception that Amul milk is unfresh and is having lots of cuddling problem.
The packaging of Amul milk is not popular among the customers as compared to othermilk brands are available in the market.
7.1.3Bulk Users: (sweet shops, restaurants, hotels, canteens etc).
The awareness level of Amul milk in bulk users is around 90% but only 10% are usingAmul milk.
The preference of purchasing milk by the bulk users is mainly quality, price andtimely availability.
The reasons for not using milk by the bulk users are :
1. Higher price that is not meeting the competitors rate as bulk user are very price sensitive.
2. In sweet marts mawa generation is less and there is a complaint about cuddling of milk.
3. In case of canteens contract some of them prefer credit purchasing which is againstcompany’s norms and policies.
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LIMITATIONS
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Limitations:-
This report had to work under several constraints and limitations. Some of the key limitation are.
1 The survey is limited only for Sangam Vihar and Nearby area.
2 Time period of the project was 8 weeks, which may not be enough to understand the
whole market.
3 Convenient sampling was used as the mode of conducting the research.
4 The sample size of the taken was small, therefore it can be said that the chosen sample is
not the representative of the whole population and this hindered quantitative research.
5 The psychology and temperament of a respondent play a significant role. Some
respondents are more sensitive as against others who are more tolerant. A change in
the composition of the respondents can affect the answers adversely or favorably.
6 Out of the whole research and analysis, only three major brands could be
highlighted, leaving aside the other non-popular brands.
7 The questionnaire mostly contained multiple choice questions, therefore many
respondents did not give a proper thought before up the questions, and some even
ticked things, which were not applicable. Therefore, all this increased the bias.
8 The sample size of Retailers / Wholesalers was very small and therefore response
from them dose not reflect the exact view because they may to biased.
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CONCLUSION
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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
As we know that Amul is very big organization and market leader in
dairy products. It has maximum market share in Milk, Butter, Cheese & Ice-
Cream which are its main/core products. But in case of local market like New
delhi the Amul milk is not a popular product as compared to other Amul
Products. With the help of research, company can find out its week points in
Milk product and can increase its market share through rectify mistakes.
People have believed in Amul’s product and they will accept it also if effective
actions were taken.
The survey resulted into following conclusions :
Amul must come up with new promotional activities such that people
become aware about Amul Milk like Amul Tazza & Gold.
Quality is the dominating aspect which influences consumer to
purchase Amul product, but prompt availability of other Milk brands
and aggressive promotional activities by others influences the
consumer towards them and also leads to increase sales.
In comparison to Amul Milk, the other players such as Mother Dairy,
DMS & Paras provide a better availability and give competition to the
hilt.
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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
.
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SUGGESTIONS
&
RECOMMENDATION
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Suggestions & Recommendation:-
The Milk products market has reached Maturity stage in India large no. of Co-operativeshaving a variety of product range has entered the market, thus there is one way for Amul to
sustain their milk business in the market by delivering outstanding satisfaction to their retailers, sothat they can take interest in selling of Amul milk products. This can be done as follows
Amul has a relatively good distribution network, but still company is not able to fulfillthe demand of outlet in the peak season when demand is very high. Here companyshould consider on the supply of product in the peak season.
Supply should be regular to all the outlets including those that lie in the pocket roadsand not just in the outlets which lie on the easily accessible routes.
250 ml milk pouch should make available to retailers for selling, because lower income
family has intention to buy small pouch milk.
Provide reasonable Margin to retailers as compared to competitors, this motivatesthem to promote company’s milk and milk products.
Improve delivery schedule to provide products on time for the retailers about whoclaimed that Amul milk is not available to them on time.
Incentives & schemes should be given to the retailers and some scrutiny should be follow tocheck the scheme get being communicated properly by distributors or sales person.
Provide consistent service to retailers as this will help gain company goodwill in themarket.
Do not change distributor frequently, because he is the only person who act as aconnecting link between company and retailers.
Do not place more than one distributor in same market area.
Try to minimize bank deposits for APO, which help to retailer think to start.
Though the customers are asking for Branded milk is very few but Amul should investmore money in Brand promotion and marketing in New Delhi, it will be beneficial forthe company in the long run as well as in the short run.
For Brand promotion and marketing of Amul milk in New Delhi it should introduce amascot for the Amul milk as it already has for Amul Butter i.e. The Amul Butter Girlin order to gain a good position in the mind of customers. This will also help in easyBrand differentiation and Recognition.
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Also advertising on the television, Radio Mirchi and Sponsorship of the events, TradeFairs will be a better choice.
The study of milk market reveled that there is no Mergers and Acquisition in the milk
industry. Amul should go for Mergers and Acquisition and try to acquire the localplayers in the New Delhi market like Mother Dairy, DMS and Paras etc. It will help thecompany in increasing its Dealers network, Market share, Customer base etc. It willalso save time of establishing a new manufacturing unit.
Our Research revealed that there is no awareness among the consumers regarding the
Amul milk in New Delhi. So it is advisable to the company to conduct various
consumer awareness programs like distributing of pamphlets outside the big shopping
malls, giving presentations in schools and colleges about the Amul Milk by telling them
about the qualities of milk. By this we can able to reach to a large number of people at
one time only as there will students along with their teachers and other staff membersof the school and colleges.
The pamphlets should be printed in such a way that it not only advertise about the milkbut also provides information about how to preserve the milk in different conditions.
In order to attract the ladies segment the pamphlets should have some recepies on theother side of it.
Some brand ambassador like M S Dhoni, Hrithik Roshan or Vriendra Sehwag may beused. That will help customers to accept the product more quickly.
Special offers should be there for dealers, retailers and consumers at the time of diwaliand holi.
Discount coupons should be given to the consumers in order to buy more milk.
If adding preservatives in the milk keeps the milk for longer times then Amul shouldalso add some preservatives in the milk as people not only see quality but also sees thetime duration i.e. how much times we can store the milk.
In order to push the milk to the customers the profit margin should be increased.
Company should improve its distribution channel and should increase the number of distributors.
Company should take care of retailers by solving their problems and should call backby appointing separate company representatives.
Timely visit should be given to the retail shops.
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BIBLIOGRAPHY
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Books:
• Marketing Management (12th
Edition) – Philip Kotlar
• Research Methodology – C. R. Kothari
Websites:
• www.google.co.in
• www.wikipedia.com
• www.amul.com.
• www.marketresearch.com
• www.dairy.com
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ANNEXURE
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Good morning/evening. We would be grateful if you could spare a few minutes to complete this
Retailer preference Questionnaire to help us ensure that our standard of Retailer care exceedsexpectations wherever possible.
Name Contact
Address Date
1. Do you sell Amul products (Milk, Curd, Buttermilk) ?Yes No
2. Which product do you sell?
Milk Curd Buttermilk All
3. Which other brand of milk products do you sell?
Product Mother Dairy DMS Paras
Milk
Curd
Buttermilk
4. Which variance of milk do you sell?Full cream Toned Double Toned All
5. At which time do you receive the supply of milk?
TIME Amul Mother Dairy DMS ParasBefore 6:00 a.m
6:00 – 7:00 a.m
7:00 – 8:00 a.m
8:00 – 9:00 a.m
After 9:00 a.m
6. How much quantity of milk products do you sell everyday?
PRODUCT Amul Mother Dairy DMS Paras
Full Cream
Toned
Double Toned
CurdButtermilk
7. How do you think the sale of Amul pouched milk can be increased?Advertisement banner Promotional Schemes
Early Delivery
Others (please specify)…………………………………………………………………………….
7/31/2019 KAILASh(Amul-Project) Submitted in College
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8. Rate the overall performance of distributors (out of 10).
1-Very Bad 10- Extremely Good
COMPANY NAME 1 2 3 4 5 6 7 8 9 10
Amul
Mother Dairy
DMS
Paras
9. What kind of problem/complain do you have from the distribution channels?Late delivery Behaviour Irregular supply
Leaked packets Demand not met No complain
10. Does the distributor take necessary action regarding your problem?Yes No
If no (specify),………………………………………………………………………………
11. Does Amul as an organization taking enough steps to market its milk products (milk, curd,
buttermilk)?Yes No
12. Which factor in milk the customer has major concerns?Price Quality Early delivery
Brand name Easy availability
13. Which factor do you consider that affect the sale(retailer point of view)?Price Quality Timely delivery
Brand Margin
14. What can be various marketing schemes to promote the sales & encourage more retailers to
sell Amul milk products.Schemes Advertisement
Refrigeration facility Evening milk supply
15. Any special issues or suggestions for Amul.
……………………………………………………………………………………………………………………………………………………...………………………………………………………
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