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A PROJECT REPORT ON AMUL ICE CREAMS AND PROJECT WORK ENTITLED AS

“AMUL ICE CREAMS (SALES AND MARKETING)”

THIS STUDY WAS CONDUCTED FROM 9TH APRIL TO 19TH MAY.

ATGUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LIMITED

BY: KETAN GAJANAN BANKAR

PGDMOF

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF SUMMER INTERNSHIP

FACULTY GUIDE:Dr.Priya Kenkare

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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 “United world School of Business”, Mumbai. I would like to express my sincere thanks too 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 complete this project. I would like to thank my college authorities and Director Dr.Krishna Ram, for providing me the opportunity to work with the one prestigiousOrganization.

I would like to give my heartily gratitude to the Mr. S R Nagale,Manager(SALES), GCMMF Ltd.,Mumbai 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 Dr.Priya Kenkare, Faculty Member of Unitedworld School of Business, Mumbai for having spared his valuable time with me and for all the guidance given in executing the project as per requirements.

However, I accept the sole responsibility for any possible error and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

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DECLARATION

The following summer internship project report titled “Sales of Amul Ice Creams in Catering Industry” at Gujarat Co-operative Milk Marketing Federation Ltd., Mumbai from 21st May 2010 to 8th June 2010 is here by approved as a certified study in management carried out and presented in a manner satisfactory to warrant it’s acceptance as a prerequisite for the award of post-graduate diploma in management (PGDM). For which it has been submitted. It is understood that by this approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed on conclusion drawn therein but approve the summer internship report only for the purpose it is submitted.

Signature SignatureDr.Priya Kenkare Dr.Ram Krishna

Faculty Guide Director

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CERTIFICATE

I hereby declare that the following project report titled “AMUL ICE CREAMS (SALES AND MARKETING) at Gujarat Co-operative Milk Marketing Federation Ltd., Pune 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: Signature Mr.Ketan Gajanan Bankar

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-: Table of Contents:-

Sr.No Topic Page No1. Title Page 22. Acknowledgement 33. Declaration of faculty guide 44. Certificate of trainee 55. Introduction and history 76. Report details 147. Summary 168. Conclusion 179. Bibliography 18

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5. INTRODUCTION AND 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, AmulChocolates, 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 vast co-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”).

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.

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 to Shri 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.

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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 cooperative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union.

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.

At the initial stage only 250 liters of milk was collected everyday. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk everyday. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period.Besides when the milk was to be collected from the 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 1073societies. 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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Amul has been able to:

1. Produce an appropriate blend of the policy makers farmers board of management and the professionals each group appreciating its rotes and limitations.

2. Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterments.

3. 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.

4. 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.

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 cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), name which suggest THE TASTE OF INDIA.

Achievements of GCMMF:

2.8 million milk producer member families 13,759 village societies 13 District Unions 8.5 million liters of milk procured per day Rs. 150 million disbursed in cash daily GCMMF is the largest cooperative business of small producers with an annual

turnover of Rs. 53 billion The Govt. of India has honoured Amul with the “Best of all categories Rajiv Gandhi

National Quality Award”. Largest milk handling capacity in Asia Largest Cold Chain Network 48 Sales offices, 3000 Wholesale Distributors, 5 lakh retail outlets Export to 37 countries worth Rs. 150 crores Winner of APEDA(The Agricultural and Processed Food products Export

Development Authority) award for nine consecutive years

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Plants:

First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavoured milk and buttermilk.

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia 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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Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.

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GCMFF: PRODUCT PORTFOLIO:

Sr.No Category Market Shares Market Position1. Liquid Milk. N.A. 12. Butter

a. Amul Butter.b. Amul Lite, a low fat butter

spread. c. Amul Ghee. d. Sagar Ghee.

8580

810

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3. Milk Powder a. Amul Spray. b. Amul Milk Powder. c. Amulya, dairy whitener.

658060

111

4. Cheesea. Amul pasteurized processed

cheddar cheese.b. Amul cheese spreads in

three flavors.

50

90

1

1

5. Ice Creamsa. Amul Ice Creams. 30 2

6. Sweets 50 17. Chocolates 10 38. Chocolate Drinks 15 4

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6. REPORT DETAILS

Name of the Institute United World School of Business

Names of team members Ketan G.Bankar

Mohd.Anas

Company Project Guide Mr. Sameer Nagle

Period of SIP 9th April, 2010 – 19th May, 2010

Objectives Learn the basics of Sales & get the knowledge of market

Name of the Distributor Om Sai Marketing

Details of Om Sai Marketing:

1. Owner name Mr.Yogesh.2. Located at Dockyard road.3. Temperature of cold storage maintain at -22 degree centigrade.4. Total outlets supplied 115.5. Target achieved Rs.17 lakhs in April 2010, Rs.23.50 lakhs in May 2010.

Learning’s:1. Order taking procedure.2. How to deal with retailer in case of problems.3. Communication skills.4. Stacking of goods.5. How to build customer relationship.6. How to maintain and grow market shares.

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Problems faced:A. GCMMF:

1. Irregular supply of ice creams.2. Sometimes ice creams are supplied after their expiry date.3. Updating the price list of the Amul products is a problem as frequent price

changes were observed by the retailers and they found it difficult to manage price list.

4. Huge problem faced in replacement of damage goods.

B. Distributor:1. Damage ice creams sold to retailer & there is hardly any replacement give by

the distributor.2. Shortage of stocks.3. Delivery problems.4. Freezer problems.

C. Sales personnel:1. Less salary and less incentive.2. Due to non availability of goods, sales personnel have to face problems from

retailers.

Recommendations:

A. SHORT TERM:1. If the production for the products such as those that are highly in demand in the

market are carried out in a huge quantity would solve the short term problems such as Irregular supply of goods, increase the sales turnover of the distributors as well as the company.

B. LONG TERM:

1. To carry out Advertisements for the new arrivals in the market before the product is available to sell, which would be a better solution for pushing up the product and creating a demand beforehand.

C. LONG TERM:

1. If the claims for other damages such as party pack and family pack are provided would be a better solution for the company to build a longer growth prospect in terms of relationship with the distributors, building customer loyalty, increase the sales turnover.

2. There seems to be a huge demand of the flavor called “Sitafal “. If this is produced there could be a huge turnover in the sales.

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7. SUMMARY

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 COOPERATIVE MILK PRODUCERS' UNION. This union selected the brand name AMUL in 1955.

The brand name AMUL means "AMULYA". 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. Today AMUL is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast cooperative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization.

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. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word. Sardar Patel advised the farmers to sell the milk on their own by establishing a cooperative union, Instead of supplying milk to private traders.

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 cooperative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. It gave the negative response by turning down the demand for the milk.

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. 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 cooperative union, it was commonly resolved to sell the milk under the brand name AMUL. At the initial stage only 250 liters of milk was collected everyday. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased.

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8. Conclusion

Amul means different things to different people.To a milk producer – A life enriching experience

To a consumer – Assurance of having wholesome milkTo 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 hasmaximum market share in Milk, Butter, Cheese & Ice-Cream which are its main/core products. But in case of local market like Pune 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 Chitale, Katraj, Gokul & Krushnai provide a better availability and give competition to the hilt.

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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9. Bibliography

1. www.amul.com2. www.google.com

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