Mahendra Amul Project

7/29/2019 Mahendra Amul Project

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SINHGAD INSTITUTE OF MANAGEMENT AND

COMPUTER APPLICATION

PROJECT REPORT ON-

MARKET SURVEY AND DISTRIBUTION STRATEGY

IN TARGET MARKET IN PUNE

PROJECT GUIDE SUBMITTED BY:

SURENDRA KUMAR NAGARHITESH ACHARYA

(MMM I SEM)

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INTRODUCTION

I did my project in Gujarat Co-Operative Milk Marketing Federation Limited on

Market survey and Distribution strategy in target marketin Pune. During my

summer project, I got an opportunity to apply my marketing skills and theoretical

knowledge that I had learnt in my marketing studies with the information and

suggestion provided by the company guidance, which was a great learning

experience for me and that will definitely help me in developing qualities required

for an manager.

In todays competitive market every organization has to take initiative to keep its

product demand in market and also to update its product according to customer

demand. For the fulfillment of customers demand, retailer plays a major role. I did

my research work on distribution strategy adopted in target market. My objective

was to study awareness level of Retailers, availability of Amul products in retail

outlets and Retailers problems in regards to Amul.

Indian FMCG is one of the most emerging markets in the global scenario because

India has second largest population of the world and their food pattern increasing

day by day.

Gujarat co-operative milk and marketing federation is well known fast moving

consumer goods company in India. It operates all over India through a nationwide

network of distributor and retailer outlets.

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Reasons for selecting the topic

There are many reasons for selective the topic distribution strategy in target market.

They are as follows:

I am doing Master in Marketing Management, therefore marketing is my core

subject and I thought to have practical experience with my theoretical knowledge.

During the initial discussions with Mr. HITENDRA SINHA (Sales Executives),he

suggest me that there are problems arising in distribution in Pune Depot (Amul)

due to lack of good market information. They assigned me the Research work and

told me to get market information.

EXECUTIVE SUMMARY

The project entitled Distribution Strategy in Target Market was a very nice and

challenging experience for me in doing the project in a company like AMUL.

Within these two months (4th may to 3 July) of my project period I went to many

retail shop in Pune to gather information of retailers. I have visited MG road,

Camp, Harapsar, Shivaji Nagar, & various others scattered parts of the city.

Objective:-

This project was done by me in AMUL company was out with broad objective like

understanding the real market scenario, awareness level of retailers, problems of

retailers and distribution strategy in target market.

Research Methodology:-

The various means and methods have been deployed for effective collection of the desired

data-has been elucidated in this section.

The following marketing search tools were made use of

Depth interview method.

1- Questionnaire direct structured method.

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Both primary and secondary data were used to collect information regarding this

project. These data were collected through direct retailers interactions as well as

through secondary research work involving internet search.

Sampling size:-

The sample size is one hundred twenty (120).

Findings:-

I have found in my project that there are problems regarding AMULs distribution

system in terms of availability and delivery of products at right time with others

problems like replacement and complains handling. Amul have advantages like

packaging, quality as well as brand name.

Suggestions:-

The distribution of products should not only be simpler but also much faster and

there should be regularity of supply by distributors. AMUL should provide

awareness about schemes and replacement facility given to retailers as distributors

hide this fact.

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COMPANY PROFILE

Name: - KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS

UNION LIMITED, ANAND Known as AMUL (Anand

Milk Union Ltd)

Form: - Co-operative sector registered under the Co-operative Society

Act

Location: - Amul dairy, Station road, Amul Dairy road, Anand- Gujarat

India.

Registration: 14th December 1946

Registered Office: - Kaira District Co-operative Milk Producers Union Limited

Anand-388001

Major Plants $ Chilling Centres:-

Dairy Plant,Anand

Mogar Complex,Mogar

Kheda Satellite Dairy,Khtaraj

Cattle feed factory,Kanjari

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Camby satellite Dairy,Undei

Chilling Centre, Balasinor

Kapadwanj Chilling Centre,Kapadwanj

Amul Satellite dairy,Pune

Kolkata Unit, Kolkata

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative

movement in India. It is a brand name managed by an apex cooperative

organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF),

which today is jointly owned by some 2.6 million milk producers in Gujarat, India.

It is based in Anand town of Gujarat and has been a sterling example of a co-

operative organization's success in the long term.

The Amul Pattern has established itself as a uniquely appropriate model for rural

development. Amul has spurred the White Revolution of India, which has made

India the largest producer of milk and milk products in the world. It is also the

world's biggest vegetarian cheese brand.

GCMMF:

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.

Amul's product range includes Milk powders, Milk, Butter, Ghee, Cheese, Curd,

Chocolate, Ice cream, Shrikhand, Paneer, Gulab Jamuns, Burundi, Nutramul brand

and others. In January 2006, Amul plans to launch India's first sports drink

Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's

Gatorade.

Amul is the largest food brand in India and world's Largest Pouched Milk Brand

with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6

million producer members with milk collection average of 10.16 million litres per

day. Besides India, Amul has entered overseas markets such as Mauritius, UAE,

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USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South

African countries. Its bid to enter Japanese market in 1994 had not succeeded, but

now it has fresh plans of flooding the Japanese markets .Other potential markets

being considered include Sri Lanka.

Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man

behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the

Banaskantha Union, was elected chairman of GCMMF.

Gujarat Cooperative Milk Marketing Federation GCMMF:

An Overview

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

products marketing organization. It is a state level apex body of milk cooperativesin 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:13 district cooperative milk producers'

Union

No. of Producer Members: 2.7 million

No. of Village Societies: 13,141

Total Milk handling capacity: 10.21 million liters per day

Milk collection (Total - 2007-08): 2.69 billion liters

Milk collection (Daily Average 2007-08): 7.4 million liters

Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing Capacity: 3090 Mts per day

HISTORY

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Amul was formally registered on December 14, 1946. The brand name Amul,

sourced from the Sanskritword Amoolya, means priceless. It was suggested by a

quality control expert in Anandand it was chosen because it was a perfect acronym

forAnand MilkUnion Limited?

The Amul revolution was started as awareness among the farmers. It grew and

matured into a protest movement that was channeled towards economic prosperity.

Over five decades ago, the life of an average farmer in Kheda District was very

much likes that of his/her counterpart anywhere else in India. His/her income was

derived almost entirely from seasonal crops. The income from milk buffaloeswas

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 middle men controlled the marketing and distribution system for

the milk. These middlemen decided the prices and the off-take from the farmers by

the season. As milk is perishable, farmers were compelled to sell it for whatever

they were offered. Often, they had to sell cream and gheeat throw-away prices. Inthis situation, the private trader made a killing.

Moreover, the government at that time had given monopoly rights to Polson Dairy,

which was run by a person of Parsidescent, (around that time Polson was the most

well known butter brand in the country) to collect milk from Anand and supply to

Mumbai city in turn (about 400 kilometers away).

Another problem farmers faced was that in winter the milk output of buffaloes

doubled which caused prices to fall down even further. India ranked nowhere

amongst milk producing countries in the world in 1946. Gradually, the realization

dawned on the farmers with inspiration from then nationalist leaders

SardarVallabhbhai Patel(who later became the first Home Minister of free India)

and Morarji Desai(who later become the Prime Minister of India) and local farmer,

freedom fighter and social worker Tribhovandas Patel, that the exploitation by the

trader could be checked only if they marketed their milk themselves. Amul was the

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result of the realization that they could pool up Their milk and work as a

cooperative.

Market share of Amul in India

AMUL

40%

HUL

30%

VADILAL

20%

OTHERS

10%

MARKET SHARE

Among the major players in this industry AMUL has a market share of around

40%,. Hindustan Unilever Ltd with an estimated market share of 30% represented

mainly by Kwality Walls brand and lastly Vadilal is the player in the national

market with 20% of the market share and 10% of the others brand like Mother

Dairy, Arun Dairy and some local brands

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SWOTANALYSIS

MISSION &VISION OF AMUL

MISSION OF AMUL

The main mission of Amul is to help farmers. Farmers were the foundation stone of Amul

Company. The system works only for farmers and for consumers, not for profit. The main

aim of Amul is to provide quality products to the consumer at minimum cost. The goal of

Amul is to provide maximum profit in terms of money to the farmers.

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VISION OF AMUL

Vision of Amul is to provide and vanish the problems of farmers (milk producers) of their

livelihood. The Amuls apparition was to run the organization with the co-operation of four

main parties like the farmers, the representatives, the marketers and the customer.

ACHIVEMENTS

INTERNATIONAL CIO 100 AWARDS FOR RESOURCEFULNESS

GCMMF is a winner of the prestigious international CIO 100 award from IDG's

CIO Magazine, USA. The 2003 CIO 100 award recognizes the organizations

around the world that excel in positive business performance through resourceful

IT management and best practices.

This CIO International IT excellence Award has recognized the Cooperative

Movement & its Leadership under the "Amul" brand, initiated by Dr. V Kurien,

Milkman of India, whos main Motto is to build Indian Society economically &

literally strong through innovative cooperative resourceful network, so as toprovide quality service & products to the end consumers and good returns to the

farmer members.

This award has also given direction that IT need to be encouraged & adopted more

& more at grass root level and bridge the digital divide through proper training, re-

training so as to bring radical change & benefit to the Indian society.

It has also recognized the Managing Director, Mr. B M Vyas, who has taken IT

initiative by setting the direction "GCMMF as IT Company in Food business".

It has also inspired all the employees of GCMMF Enterprise to sustain the

challenges as a "Change Agent" by excelling their IT skills in order to transform

the people around them towards IT Integration (e-Vision) on both the ends of

supply chain (Village level Farmer to end consumer). This award also motivated

the each & every member dairy, Amul's wholesale distributors, retailers,

transporters and suppliers who have supported whole-heartedly the IT initiatives of

GCMMF.

The Gujarat Co-operative Milk Marketing Federation (GCMMF) has been

honoured at the CIO 100 Symposium & Award Ceremony on August 19, 2003, at

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the Broad moor in Colorado Springs, Colorado, USA. Shri Subbarao Hegde, Head

of IT had been to USA and received the said Award on behalf of GCMMF.

BOARD MEMBERS

Shri Ramsinh Prabhatsinh Parmar Chairman

Shri Rajendrasinh Dhirsinh Parmar Vice-Chairman

Shri Dhirubhai Amarsinh Zala Director Smt. Mansinh Kohyabhai Chauhan Director

Shri Maganbhai Gokalbhai Zala Director

Shri Shivabhai Mahijibhai Parmar Director

Shri Pravinsinh Fulsinh Solanki Director

Shri Chandubhai Madhubhai Parmar Director

Shri Bhaijibhai Amarsinh Zala Director

Shri Bipinbhai Manishankar Joshi Director

Smt. Sarayuben Bharatbhai Patel Director

Shri Ranjitbhai Kantibhai Patel Director

Shri B. M. Vyas Managing Director

G.C.M.M.F

Shri Deepak Dalal District Registrar

Shri Rahul Kumar Managing Director

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AMUL PRODUCTS

Bread Spreads

Amul Butter

Utterly ButterlyDelicious

Amul Lite

Low fat, low CholesterolBread Spread

Delicious Table

Margarine

The Delicious way toeat healthy

Beverage Range

Amul Kool Amul Kool Cafe

Kool Koko

A delight to ChocolateLovers. DeliciousChocolate taste

Nutramul Energy Drink

A drink for Kids -provides energy to suitthe needs of growing Kids

Amul Kool Chocolate

Milk

Amul Kool Flavoured

Bottled Milk

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Amul Kool Flavoured

Tetra Pack

Amul Masti Spiced

Buttermilk

Amul introduces the BestThirst Quenching Drink

Powder Milk

Amul Spray Infant Milk

Food

Still, Mother's Milk isBest for your baby

Amul Instant Full

Cream Milk Powder

A dairy in your home

Sagar Skimmed Milk

Powder

Which is especially usefulfor diet preparations orfor use by people on lowcalorie and high proteindiet.

Sagar Tea Coffee

Whitener

Amulya Dairy Whitener

The Richest, Purest DairyWhitener

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Fresh Milk

Amul Fresh Milk

This is the most hygienicmilk available in themarket. Pasteurised instate-of-the-art processing

plants and pouch-packedfor convenience.

Amul Gold Milk

Amul Taaza Double

Toned Milk

Amul Lite Slim and

Trim Milk

Amul Fresh Cream Amul Shakti Toned

Milk

Cheese

Amul Pasteurised

Processed Cheese

100% Vegetarian Cheesemade from microbialrennet

Amul Cheese Spreads

Tasty Cheese Spreads in 3great flavours..

Amul Emmental Cheese

The Great Swiss Cheesefrom Amul, has a sweet-dry flavour and hazelnutaroma

Amul Pizza Mozzarella

Cheese

Pizza cheese...makesgreat tasting pizzas!

Gouda Cheese

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For Cooking

Amul / Sagar Pure Ghee

Made from fresh cream.Has typical rich aroma

and granular texture. Anethnic product made bydiaries with decades ofexperience.

Cooking Butter

Amul Malai Paneer

Ready to cook paneer tomake your favouriterecipes!

Utterly Delicious Pizza

Mithai Mate

Sweetened CondensedMilk - Free flowing andsmooth texture. White tocreamy color with a

pleasant taste.

Masti Dahi

Desserts

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Amul Ice Creams

Premium Ice Cream madein various varieties andflavours with dry fruitsand nuts.

Amul Shrikhand

A delicious treats,anytime.

Amul Mithaee Gulab

Jamuns

Pure Khoya GulabJamums...best served

piping hot.

Gulab Jamun Mix

Amul Chocolates

The perfect gift for someone you love.

Amul Lassee

Amul Basundi

Health Drink

Nutramul

Malted Milk Foodmade from maltextract has thehighest proteincontent among all the

brown beveragepowders sold inIndia.

INDUSTRY PROFILE

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FOOD INDUSTRY

The food industry is the complex, global collective of diverse businesses that

together supply much of the food energy consumed by the world population. Only

subsistence farmers, those who survive on what they grow, can be considered

outside of the scope of the modern food industry.

The food industry includes:

Regulation: local, regional, national and international rules and regulations for

food production and sale, including food quality and food safety, and industry

lobbying activities

Education: academic, vocational, consultancy

Research and development: food technology

Financial services: insurance, credit

Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural

construction, etc.

Agriculture: raising of crops and livestock, seafood

Food processing: preparation of fresh products for market, manufacture of

prepared food products

Marketing: promotion of generic products (e.g. milk board), new products, public

opinion, through advertising, packaging, public relations, etc

Wholesale and distribution: warehousing, transportation, logistics

Retail: supermarket chains and independent food stores, direct-to-consumer,

restaurant, food services

ADVANTAGE OF INDIA UNDER FOOD INDUSTRY:

India is one of the largest food producers in the world

India has diverse agro-climatic conditions and has a large and diverse raw material

base suitable for food processing companies Investment requirement of around US$

15 billion exists in the food processing sector

India is looking for investment in infrastructure, packaging and marketing

India has huge scientific and research talent pool

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A largely untapped domestic market of 1000 million consumers

300 million upper and middle class consume processed food.

200 million more consumers expected to shift to processed food by 2010.

Well developed infrastructure and distribution network.

Rapid urbanization, increased literacy, changing life style, increased number of

women in workforce, rising per capita income- leading to rapid growth and new

opportunities in food and beverages sector.

50 per cent of household expenditure by Indians is on food items.

Strategic geographic location (proximity of India to markets in Europe and Far

East, South East and West Asia).

Under the food industry, Dairy product is very important part of food processing.

Dairy processing is acting good role in India.

Dairy Processing

India ranks first in the world in terms of milk production. Indian production stands

at 91 million tones growing at a CAGR of 4 per cent. This is primarily due to the

initiatives taken by the Operation flood programmes in organizing milk producers

into cooperatives; building infrastructure for milk procurement, processing and

marketing and providing financial, technical and management inputs by the

Ministry of Agriculture and Ministry of Food Processing Industries to turn the dairy

sector into viable self-sustaining organized sector. About 35% of milk produced in

India is processed. The organized sector (large scale dairy plants) processes about

13 million tones annually, while the unorganized sector processes about 22 million

tones per annum. In the organized sector, there are 676 dairy plants in the

Cooperative, Private and Government sectors registered with the Government of

India and the state Governments.

The Ministry of food Processing Industries is promoting organized Dairy

processing sector to accomplish upcoming demands of processed dairy products

and helping to identify various areas of research for future product development

and quality improvement to revamp the Indian dairy export by way of providing

financial assistance to the dairy processing units. 32 Units have been sanctioned

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financial assistance (Rs.591 lakhs) under the plan scheme of the Ministry during

the year 2006-07.

Major Indian and Overseas Players in the Food industry

ITC Limited

Parle Products Pvt. Ltd.

Agro Tech Foods

Amul

Perfetti India Ltd.

Cadbury India Ltd.

PepsiCo India Holdings

Nestle India Pvt. Ltd.

Britannia Industries Ltd.

Hindustan UniLever Limited

MTR foods limited

Godrej industries Limited

Dabur India Ltd.

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AMUL COMPETITORS

Amul have strong competitors in market like Britannia, Nestle, Pizza Hut, Nirulas, Hul

and Cadbury in various sectors which are represented below in form of diagram:-

ICECREAM

LIQUID FRESHMILK

PIZZA

COMPETITION

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THEOROTICAL BACKGROUND

Distribution Strategy

Marketing consists of the "4Ps:" product, place, promotion and price. Product refers

to what is being sold, promotion to how it is touted in the market, and price to the

strategy used to generate revenue. Place is the method of distribution that the

company selects to move its product to the market. This consideration, distribution,

can be critical to a company's success since choosing the wrong distribution system

can mean that the company's product is not available to the consumers when they

need it. Lost sales result, and companies can suffer serious consequences due to

poor distribution. This research considers the overall issue of distribution and

factors that companies need to take into account when developing a distribution

strategy.

Few manufacturers sell their goods directly to end users; one of the primary

exceptions to this is farmers who sell to consumers. However, most manufacturers

sell their goods to wholesalers, who sell to distributors, who sell to retail stores,

who sell to consumers. Sometimes the distributor is eliminated, or the wholesaler

and distributor are the same. In some instances, such as with retailers who are as

large as Wal-Mart, the manufacturers do market directly to the retailer.

This system, while it sounds cumbersome when described, can actually prove quite

efficient. Manufacturers typically produce large quantities of goods. These are

divided into smaller shipments (but still containing large numbers here is no excess

inventory carrying costs. However, this is not an effective method for retailers

because they cannot determine demand with the accuracy of a foreman on a

production line. Recommendations Companies who are evaluating their distribution

system need to take into account the end user and the best way to reach that user.

Industrial users are not reached effectively through retailers, and consumers are not

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reached through industrial supply houses. Some industries do not lend themselves

well to wholesalers and distributors, and manufacturers serving only a local market

may be able to more efficiently serve as wholesaler to their clients. Building a close

relationship with customers and suppliers is important so that manufacturers and

distributors have a clear idea of the factors behind increases (or decreases) in

demand. This can help prevent surpluses and shortages and ensure that all of the

participants in the distribution channel receive the maximum benefit from the

system.

Distribution Strategies Importance

For product-focused companies, establishing the most appropriate distribution

strategies is a major key to success, defined as maximizing sales and profits.

Unfortunately, many of these companies often fail to establish or maintain the most

effective distribution strategies. Problems that we have identified include:

Unwillingness to establish different distribution channels for different products

Fear of utilizing multiple channels, especially including direct or semi-direct sales,

due to concerns about erosion of distributor loyalty or inter-channel cannibalization

Failure to periodically re-visit and update distribution strategies

Lack of creativity and resistance to change

To be fair, there can be sound reasons for these perceived weaknesses. More

typically, however, they are due to failings such as simple inertia, lack of

understanding of the ultimate customers and their preferences, or a failure to

acknowledge the importance of a distribution strategy

Distribution system

Distribution system has two divisions, namely

Physical Distribution

Channels of distribution

The channel members such as mercantile agents, wholesalers and retailers are

middlemen in distribution and they perform all marketing functions .Such

middlemen facilitate the process of exchange and create time, place and position

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utilities through matching and sorting process. Sorting enables meeting the supply

with consumer demand.

Physical distribution-

Physical distribution looks after physical handling of goods and assures maximum

customers service .It aims at offering delivery of right goods at right time at right

place to the customers physical distribution activities cover at right placed to the

customers Physical distribution cover-

Order processing

Handling of goods

Packaging

Warehousing

Transportation

Inventory control

Customer service

All middlemen in distribution perform these functions and they assure placing the

product within an arms length of customers desire and demand.

Channels of distribution

A channel of distribution is an organized network or a system of agencies network or asystem of agencies and institutions, which in combination perfume all the activities

required to link producer with users and users with producers to accomplish the marketing

task.

According to Phillip kotler-Marketing channels is an independent organization involved

in the process of making a product or service available for use or consumption.

Thus, a channel of distribution is a pathway directing is a pathway directing the flow of

goods and services from producers to consumers composed of intermediaries through their

functions and attainment of mutual objectives. These intermediaries are as follows:-

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Manufacturer-Consumer

In this channel Manufacture sells directly to ultimate consumer. The major ways

are door to door, home parties, mail order, telemarketing, television selling and

manufacturer owned stores.

Manufacturer Retailer Consumer

This channel has one intermediary namely retailer. The most common channel for

consumer durables such as textiles, shoes, readymade garments and so on.

Manufacturer-Wholesaler-Consumer

This channel bypasses the last name retailer, when there are large and institutional

buyers. Example-industrial buyers, Government, consumer co-operatives,

Hospitals, educational institutions, business houses.

Manufacturer-Agent-Wholesaler-Retailer-Consumer

This is a longest channel of distribution, where the producer uses the services of

agent middlemen such as sales agent for the initial dispersion of goods. The agent

in turn may distribute to wholesalers, who in turn sells to retailers and thus reaches

consumers.

Functions of the distribution channels in brief:-

Buying and assembling of goods.

Providing warehouse facility.

Providing transportation of goods from products to their warehouse.

Financing

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Risk bearing, Grading, packing, and packaging

Dispatching and selling the goods.

Advertising

Providing market information

Informing about consumer preferences.

Factors affecting distribution strategy

Market factors:

An important market factor is "buyer behavior"; how do buyers want to purchase

the product? Do they prefer to buy from retailers, locally, via mail order or perhaps

over the Internet? Another important factor is buyer needs for product information,

installation and servicing. Which channels are best served to provide the customer

with the information they need before buying? Does the product need specific

technical assistance either to install or service a product? Intermediaries are often

best placed to provide servicing rather than the original producer - for example in

the case of motor cars.

The willingness of channel intermediaries to market product is also a factor.

Retailers in particular invest heavily in properties, shop fitting etc. They may

decide not to support a particular product if it requires too much investment (e.g.

training, display equipment, warehousing).

Another important factor is intermediary cost. Intermediaries typically charge a

"mark-up" or "commission" for participating in the channel. This might be

deemed unacceptably high for the ultimate producer business.

Producer factors

A key question is whether the producer has the resources to perform the functions

of the channel? For example a producer may not have the resources to recruit, train

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and equip a sales team. If so, the only option may be to use agents and/or other

distributors.

Producers may also feel that they do not possess the customer-based skills to

distribute their products. Many channel intermediaries focus heavily on the

customer interface as a way of creating competitive advantage and cementing the

relationship with their supplying producers.

Another factor is the extent to which producers want to maintain control over how,

to whom and at what price a product is sold. If a manufacturer sells via a retailer,

they effective lose control over the final consumer price, since the retailer sets the

price and any relevant discounts or promotional offers. Similarly, there is noguarantee for a producer that their product/(s) are actually been stocked by the

retailer. Direct distribution gives a producer much more control over these issues.

Product factors:

Large complex products are often supplied direct to customers (e.g. complex

medical equipment sold to hospitals). By contrast perishable products (such as

frozen food, meat, bread) require relatively short distribution channels - ideally

suited to using intermediaries such as retailers.

Distribution Intensity

There are three broad options - intensive, selective and exclusive distribution: Intensive distribution aims to provide saturation coverage of the market by using all

available outlets. For many products, total sales are directly linked to the number of

outlets used (e.g. cigarettes, beer). Intensive distribution is usually required where

customers have a range of acceptable brands to choose from. In other words, if one

brand is not available, a customer will simply choose another.

Selective distribution involves a producer using a limited number of outlets in a

geographical area to sell products. An advantage of this approach is that the

producer can choose the most appropriate or best-performing outlets and focus

effort (e.g. training) on them. Selective distribution works best when consumers are

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prepared to "shop around" - in other words - they have a preference for a particular

brand or price and will search out the outlets that supply.

Exclusive distribution is an extreme form of selective distribution in which only one

wholesaler, retailer or distributor is used in a specific geographical area.

Amul catering need of every sections of society

CUSTOMER BASED MARKET SEGMENTATION

Kids:- Amul cool chocolate milkNutramul energy drinkAmul kool milk shake

Women: - Amul calci

Youth: - Utterly Delicious PizzaAmul Emmental cheeseAmul cheese spreadsv

Caloric Conscious:-Amul liteSagar skimmed milk pasteAmul lite slim trim milk

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Health Conscious:-NutramalAmul Shakti

Health food drinkINDUSTRY BASED MARKET SEGMENTATION

MILK:-

Ice cream manufactures

Restaurant/Food chains

Coffee shop chains

Temples

Butter/cheese/ghee:-

Bakery Confectionaries

Pizza Retailers

REASONS FOR SUCCESS

Robust Supply chain

Vast and complex hierarchical network. Co-operation stretches from small suppliersto large fragmented markets

Low cost strategy

Affordable and attractive to consumer

Guaranteeing them value for money

Diverse Product Mix

Amul Butter

Milk Powder

Ghee

Amulspray

Cheese

Chocolates

Shrikhand

Ice-cream

Nutramul

Amulaya

Strong distribution network Available in 500,000 retail available across India

Available 3500 distributors

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Available dry and cold warehouses to buffer inventory

Technology and e-initiatives

New Product Process technology.

SCOPE OF THE PROJECT

Being in the field work, I came into contact with distributors & retailers and

enriched my knowledge regarding marketing field.

A. I have increased my knowledge regarding the Retailers problem and strategy follow

by distributors to sell their products to Retailers.

B. The Retailers expectations & opinion from the Company is known during the field

work.

C. To help Company to design better distribution channel.

D. Binding customers loyalty by providing best quality to the retailers.

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OBJECTIVES OF THE STUDY

According to needs of the Company I have decided my objectives:-

Primary objectives

1. To know the awareness level of the Amul products among Retailers.

2. To know about the availability of the Amul products in local Retail Outlet

3. To know the Retailers problems in regards to AMUL products as well as distribution

process.

Secondary objectives

1. To understand Retailer buying Behaviors.

2. To know the competitors availability in the market

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MARKETING RESEARCH METODOLOGY

Marketing research plays an important role in the process of marketing. It helps the

firm to acquire a better understanding of the consumers, the competition and the

marketing environment.

DEFINITION

Marketing research is a systematic gathering, recording and analysis marketing

problem to facilitate decision making.

- Coundiff & Still.

Marketing research is a systematic problem analysis, model building and fact

finding for the purpose of important decision making and control in the marketing

of goods and services.

- Phillip Kotler.

MAIN STEPS INVOLVED IN MARKETING RESEARCH

Defining the Marketing Problem to be tackled and identifying the market research

pr

(1) Define the problem and its objectives.

(2) Identify the problem.

(3) Determine the information needed.

(4) Determine the sources of information.

(5) Decide research methods.

(6) Tabulate, Analyze and interpret the data.

(7) Prepare research report.

(8) Follow-up the study.

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(1) Define the problem and its objectives: - This includes an effective job in planning

and designing a research project that will provide the needed information. It also

includes the establishment of a general framework of major marketing elements

such as the industry elements, competitive elements, marketing elements and

company elements.

(2) Identify the problem: - Identifyingthe problem involves getting acquainted with

the company, its business, its products and market environment, advertising by

means of library consultation and extensive interviewing of companys officials.

(3) Determining the specific Information needed :- In general the producer, themanufacturer, the wholesaler and the retailer try to find out four things namely :-

(a) What to sell

(b) When to sell

(c) Where to sell

(d) How to sell

(4) Determine the sources of information:-(a) Primary Data: - Primary datas are those which are gathered

specially for the project at hand, directly e.g. through questionnaires &

interviews. Primary data sources include company salesman, middleman,

consumers, buyers, trade associations executives & other businessman & even

competitors.

(b) Secondary Data: - These are generally published sources,

which have been collected originally for some other purpose. Source are internal

company records, government publication, reports & publication, reports &

journals, trade, professional and business associations publications & reports.

(4) Decide Research methods for collecting data: - If it is found that the

secondary data cannot be of much use, collection primary data become

necessary. Three widely used methods of gathering primary data are

A) Survey

B) Observation

C) Experimentation

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d) Panel Research

A) Survey Method: - In this method, information gathered directly from individual

respondents, either through personal interviews or through mail questionnaires or

telephone interviews.

B) Observation Method: - The research data are gathered through observing and

recording their actions in a marketing situation. This technique is highly accurate. It is

rather an expensive technique.

C) Experimental Method: - This method involves carrying out a small scale trial

solution to a problem, while at the same time, attempting to control all factors relevant

to the problem. The main assumption here is that the test conditions are essentially the

same as those that will be encountered later when conclusions derived from the

experiment are applied to a broader marketing area.

D) The Panel Research: - In this technique the same group of respondents is contacted

for more than one occasion; and the information obtained to find out if there has been

any in their taste demand or they want any special quality, color, size, packing in the

product.

(5) Follow-up the study: - The researchers, in the last stage, should follow up this

study to find if his recommendation are being implemented. The marketing

research process which I adopted is influenced by theory of marketing consist the

following stages:-

Defining the problem and the research objective: -

The objective of my research is to determine the distribution strategies in target market.My

target markets are M.G road, Camp, Shivaji Market and Bhawani Peth.

Developing the research plan: -

When the problem is identified, the next step is to prepare a plan for getting the

information needed for the research. The present study will adopt the well structure

questionnaire and interview for collecting the necessary data from the Retailers.

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Collecting and Sources of data:-

Market research requires two types of data, i.e., primary data and secondary data. I used

both types of data for collecting information. Mostly primary data I used well-structuredquestionnaires to collect information from the Retailers..

In my project primary data involves:-

Interviewing the Amul Retailers

Observation at retail outlets.

Interviewing was done on basis of questionnaire for retailers; observation method was

followed for distributors and consumers. Lots of care was taken at the time of

preparing questionnaire so that it gives a better and authentic result.

Secondary Data: - The secondary data are those which have already been collected by

someone else and which have already been passed through statistical process.

In my project secondary data involves:-

Organization , journals , and booklets

Retailers price list

Analysis of Collecting Data:-

This involves converting raw data into useful information. It involves tabulation of data,

using Microsoft Excel on them for developing Graphs and chart to retrieve useful

information from the data collected.

Report Research Findings:-

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This is the part which gives a quick view of my marketing survey effort. The report with

the research finding is a formal written document. The research finding and personal

experience will be used to propose suggestion & recommendations to improve the

distribution strategy. In this research report I include everything whatever I found at the

time of survey.

RESEARCH PROCESS

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RESEARCH DESIGN

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Research design is the plan structure and strategy of investigation conceived so as

to obtain answers to research question and control variance.

Research design is the blueprint for the collection, measurement, and analysis of

data.

Research design category into three:-

Research design in case of exploratory research studies.

Research design in case of descriptive and diagnostic research studies.

Research design in case of hypothesis-testing research studies.

RESEARCH DESIGN USED IN MY RESEARCH

METHOD USED FOR DATA COLLECTION

Observation and Interview of retailers

TOOLS FOR DATA COLLECTION

Primary Data: Interview Schedule

Secondary Data: Company journals & sites

SAMPLE DATA

Universe : - Retailers of 4 areas of pune

Population : - Retailers, their competitor, selling outlets, presently not

selling Amul brand but wanted to sell.

Sample Size : - Number of retailers are 120

Sample method: - Convenient sampling method

Statistical technique: - Percentage method

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DATA ANALYSIS

TITLE

(1) Which of the following brand do you provide?

OBSERVATION TABLE

Parameter Amul Cadbury Nestle HUL

Respondents 112 98 87 115

Percentage (%) 93 82 73 96

GRAPHICAL REPRESENTATION

INTERPRETATION

93% Retailers have Amul products, 82% have Cadbury products, 73% have Nestle

products, and 96% have Hul products.

HUL products are available in the retailers shop more compare to Amul and other

Brands.

So research shows that Amul finds second place in retailer shop.

TITLE

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2. How do you contact with the Amul distributor?

OBSERVATION TABLE

Sample size-120

Medium Telephone Email Personal Visit

Respondents 88 5 27

Percentage (%) 73 4 23


INTERPRETATION

73% Retailers communicate with Telephone, 23% communicate with Personal visit

and 4% communicate with Email to their distributor respectively.

Retailers finds convenient with Telephone compare with others means of

communication.

So, research shows that Telephone is the most popular means of communication

TITLE

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(3) Does Amul distributor supply exact quantity as per order?

OBSERVVATION TABLE

Sample size-120

Supply of product Yes No

Respondent 68 52

Respondent (%) 56.7 43.3


INTERPRETATION

Out of 120 Retailers,

68(56.7%) retailers say that distributor supply as per order but 52(42.3%) retailers

complain short supply of demanded product.

So, we can say that supply given by distributor is not equal to demand of retailers.

TITLE

(4) What is your opinion regarding speed of receiving Amul products after placing order

by Retailers?

OBSERVATION TABLE

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Sample size 120

Frequency of

product

Fast Very Fast Medium Slow

Respondent 18 32 60 10

Respondent (%) 15 27 50 8


INTERPRETATION

Out of 120 Respondents,

18(15%) Retailers feels that frequency of receiving products are fast, 32(27%) feels

that frequency are very fast, 60(50%) retailers feels that frequency are medium, and

10(8%) feels that frequency are slow.

So, we can that frequency of receiving products after placing order by retailers are

medium.

TITLE

5. What is your opinion regarding Packaging of Amul products?

OBSERVATION TABLE

Sample size-120

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Packaging Excellent Good Satisfied Poor


Respondent (%) 14.2 42.5 35.8 7.5


INTERPRETATION

14.2% Retailers believe that amul have got Excellent Packaging, 42.4% believe that Amul

have good packaging, 7.5% Retailers believe that Amul have poor packaging and 35.8%

Retailers are satisfy with Amul packaging

So, we can say that Amul have got packaging advantage

6.TITLE

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Do you have cooling equipment?

OBSERVATION TABLE

Sample size-120

Cooling equipment Yes No

Respondent 97 23

Respondent (%) 81 19


INTERPRETATION

Out of 120 retailers, 97(81%) retailers say that they have cooling equipment while

23(19%) retailers say that they have no cooling equipment.

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TITLE

7. How often the Amul product does get damaged?

OBSERVATION TABLE

Sample size-120

Frequency of

damaged goods

Never Sometimes Many times Always


Respondent (%) 7.5 75.8 12.5 4.2


INTERPRETATION

Out of 120 respondents,

91 retailers(71.8%) complaint that products sometimes damaged during the distribution

process, 15(12.5%) complaints that many times products damaged, 5(4.2%) complaints

that products always damaged and 9(7.5%) Retailers believe that products never

damaged during distribution process.

So, we can say that damaging of products takes place during distribution process which

should be minimized.

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TITLE

(8) Which Company solve problem fast in terms of Replacement?

OBSERVATION TABLE

Sample size-120

REPLACEMENT Amul Cadbury Nestle HUL

RESPONDENT 10 53 34 23

RESPONDENT

(%)

8.3 44.2 28.3 19.2


INTERPRETATION

Out of 120 Retailers,

53(44.2%) retailers are happy with the replacement facility given by Cadbury, 34

(28.3%) retailers are happy with the replacement facility of Nestle, 10(8.3%) are happy

with replacement facility of Amul and 23(19.2%) are happy with replacement facility

of HUL.So, we can say that Amul gives the least Replacement facility.

TITLE

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9. Are you getting facility of credit purchase for Amul products?

OBSERVATION TABLE

Sample size-120

Credit Purchase Yes No

Respondent 13 107

Respondent (%) 10.8 89.2


INTERPRETATION

11% Respondents saying that Company is providing credit facility while 89 % are not

agree with this view.

TITLE

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11 Which Company gives you better sales promotion schemes?

OBSERVATION TABLE

Sample size-120

Sales promotionschemes

Amul Cadbury Nestle HUL


Respondent (%) 32.5 26.7 24.2 16.6


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INTERPRETATION

From the above pie chart we can say 32.5% retailers better sales promotion schemescompare to other Company.26.7% favour for Cadbury, 24.2% for Nestle and 16.6% forHUL in providing sales promotion schemes respectively

TITLE

(13) Which Company gives you better margin on sale?

OBSERVATION TABLE

Sample size-120

Sales margin Nestle Cadbury Amul Hul


Respondent (%) 19.2 26.7 18.3 35.8


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INTERPRETATION

38.8% Retailers believe that Hul gives the better sales margin , 26.7% Retailers believe

that Cadbury gives better sales margin while 19.2% believe in Nestle and 18.3% believe inAmul in terms of sales margin.

So, we can say that sales margin is one of the factors that makes Amul unpopular in retailoutlets.

OBSERVATIONS AND FINDINGS

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Amul finds second place in Retailers outlets after HUL products as 93% Retailers have

Amul products and 96 % have HUL products. Cadbury finds third place and Nestle fourthplace with 82% and 73% Retailers have these products respectively.

Telephone is the most popular means of communication as 73% Retailers communicate

with telephone to their distributors. Again 23% communicate with Personal visit and

4% communicate with Email to their distributors.

57% Retailers said that distributor supply as per order but 43% Retailers complaints

about short supply of demanded product.

Replacement facility given by Amul is not up to the mark as only 8.3% are happy with

replacement facility given by Amul compare to other brands like Cadbury, Nestle and

HUL.

As per survey 81% retailers have cooling equipment while 19% retailers said that

they have no cooling equipment.

.

Survey shows that75.8% retailers complaint that products sometimes damaged

during the distribution process, 12.5% complaints that many times products damaged,

4.2% complaints that products always damaged and 7.5% retailers said that products

never damaged during distribution process.

Sales margin is one of the factors that makes Amul unpopular in retail shop as

survey shows that 38.8% retailers said that HUL gives the better sales margin, 26.7%

retailers said that Cadbury gives better sales margin while 19.2% said Nestle and

18.3% said Amul in terms of sales margin.

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Amul have got Packaging advantage as survey shows that14.2% retailers believe

that Amul have got Excellent Packaging, 42.5% believe that Amul have good

packaging, 7.5% retailers believe that Amul have poor packaging and 35.8%

Retailers are satisfy with Amul packaging.

Survey shows that 32.5% retailers say that Amul provides better sales promotion

schemes compare to other Company.26.7% favour for Cadbury, 24.2% for Nestle

and 16.6% for HUL in providing sales promotion schemes.

Distribution to Retailers: - Amul having 3-4 vans with each distributor to distribute

the product according to the demand.

Payment period:-Payment collection is done by distributors between 12pm to 4pm

in cash as well as in demand draft and cheques.

Payment method:-During the survey, it is observed that only 11% were only getting

credit facility, while 89% wants product for 2-3 days credit. But company provide

credit only if they maintain good relationship..

.

.

LIMITATIONS

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Some retailers do not gives time as they are busy with customers.

Some retailers manipulated the facts and figures while interview.

Consumers taste and preference changes very frequently.

As the research work needs to be undertaken in the morning time, it was found difficultto meet many retailers.

Large sample size would have given much better conclusion.

Lack of Company support and inadequate data due to Company privacy and secrecy

makes my research incomplete.

.

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SUGGESTIONS

Proper delivery should be done and Retailers should get products as per order. For this

distributor can develop good distribution network.

During distribution process care should be taken in handling of products so that

damaged should be minimized.

Company person should visit to the retailers regularly so that complaints of retailers

about distributor can be taken into notice.

.

Replacement facility should be provided up to certain extent

.

Margin of sales should be increased as it motivates retailers to push the sales of

product.

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CONCLUSION

Amul is confident of growing its business through innovation coupled with an

aggressive marketing and rural distribution drive. Despite several shortcomings

Amul contains brand name and have good promotion program.

The major problem as far as Pune concerned is high competition and loyalty

towards competitors.

There is need for proper concentration on marketing strategy especially on

promotion programme, delivery of the product, and facilities like replacement and

credit to retailers.

Amul should implement and amend marketing strategy as soon as possible because

Nestle, HUL and Cadbury also introducing new flavor and offering consumer and

retailer.

The Amul should focus on accelerated growth of the impulse segment, through

more focused brands and deliver affordable products through appropriate

innovation. This will provide the platform for a stronger performance in the years

ahead.

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BIBLIOGRAPHY

BOOKS:-

Kotler Philip: Marketing Management, eleventh edition, Pearson Education PvtLtd. Indian Branch, Delhi.

C.R. Kothari: Research Methodology (Methods & Techniques), Second Edition,New Age International Publishers, New Delhi.

V.S. Ramaswamy: Marketing Management, third edition, MacMillan India Ltd.New Delhi

MAGAZINE:-

Business Today

India Today

WEBSITE:-

www.amul.com/companyprofile.htm/annualreport.htm on

www.wikipedia.com on 27/8/09

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http://www.amul.com/companyprofile.htm/annualreport.htm%20on%2023/06/2009http://www.wikipedia.com/http://www.amul.com/companyprofile.htm/annualreport.htm%20on%2023/06/2009http://www.wikipedia.com/


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ANNEXURE

Name of Retail outlet ---------------------

Address-------------------------------

Contact No------------------------

Email id------------------------

1. Which of the following brand do you provide?

(a) Amul (b) Cadbury

(c) Nestle (d) Hul

2 How do you contact with the Amul distributor?

(a)Telephone (b) Personal visit of Employee

(c)Email

3. Does Amul distributor supply exact quantity as per order?

(a) Yes (b) No

4. What is the speed of receiving the products after placing Amul order by you?

(a) Very fast (b) Fast

( c) Medium (d) Slow

5. What is your opinion regarding Amul packaging?

(a) Excellent (b) Good

(c) Satisfied (d) Poor

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6 Do you have cooling equipment?

(a)Yes (b) No

7. How often the Amul product does get damaged?

(a) Always (b) Sometimes

(c) Never (d) many times

8. Which Company solve problem fast in terms of Replacement?

(a) Amul (b) Cadbury(c) Nestle (d) Hul

9 Are you getting facility of credit purchase for Amul products?

(a) Yes (b) No

10. Which Company gives you better sales promotion schemes?


(c) Nestle (d) Hul

11. Which Company giving better margin on sales?


(c) Nestle (d) Hul

12. Would you like to give any suggestions?

i. -----------------------------

ii. ------------------------------

iii. ---------------------------------

DATE SIGNATURE

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Mahendra Amul Project

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