Project Reprt on Amul

A PROJECT REPORT ON AMUL CHOCOLATES

(An in depth study of the people’s preferences and perceptions about Amul chocolates)

Project guide:

Submitted by:

DECLARATION

I, ………………….do hereby declare that the Project titled “A PROJECT

REPORT ON AMUL CHOCOLATES” is a genuine project work undertaken by me.

Date: Place:

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TO WHOM IT MAY CONCERN

This is to certify that……….student of has done his final boards Entrepreneurship project report on “A PROJECT REPORT ON AMUL

CHOCOLATES” under my supervision. This study is an original piece of work..The undersigned wishes her success in all endeavors of life.

Date:

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CONTENTS

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Particulars

INTRODUCTION AND HISTORY

PEOPLE POWER: AMUL'S SECRET OF SUCCESS

Research design

Tabulation & Interpretation

Limitations

Findings & Suggestions

Conclusion

Bibliography

Annexure ( Questionnaire)

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 from 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 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 co-operative 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. T o 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 Co-operative 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 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 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 1073 societies.

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PEOPLE POWER: AMUL'S 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 maker’s farmer’s 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 and

• 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 union

and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED),

a name which suggest THE TASTE OF INDIA.

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Plants

First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk

powder, flavored 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.

MARKETING RESEARCH

Marketing research plays an important role in the process of marketing. Starting with

market component of the total marketing talks. It helps the firm to acquire a better

understanding of the consumers, the competition and the marketing environment.

RESEARCH DESIGN

“Advertising is a paid form of non-personal presentation and promotion of ideas,

goods or Services by an identified sponsor.”

RESEARCH PROBLEM

Increase the awareness level of AMUL CHOCOLATE.

Seek the general perception of consumer towards AMUL CHOCOLATE.

To find the performance of AMUL CHOCOLATE vis-à-vis other Brands.

To know the consumer psyche and their behaviour towards AMUL CHOCOLATE.

RESEARCH OBJECTIVES & related sub objectives

To know the relationship of sales with the advertisement.

To know awareness of people towards Amul chocolates.

To know in which segment chocolates are mostly like/preferred.

To know which advertisement tool is mostly preferred by people.

To know the preference of Amul chocolates with comparison to other

competitive brands.

T o know the factors which affects consumer’s buying behaviour to purchase

chocolates.

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Information requirement

• First, I had to know about all the competitors present in the chocolate segment (Reputed

and well established brands as well as Local brands).

• Before going for the survey I had to know the comparative packs and prices of all the

competitors existing in the market.

• Since chocolate is a product that attracts children and youngsters hence I had to

trace the market and segment it, which mainly deals with people of various age groups.

• As chocolate is different product, the main information needed is the various types of

chocolates available in the market, their calorific value and various other facts.

AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, Chocolate mass.

Composition:

• Milk Fat 2%

• Sugar 55%

• Total Fat 32.33%

(Milk Fat + Cocoa Fat)

• Cocoa Solids 7.5%

• Milk Solids 20%

Choice of research design – alternatives & choice

Despite the difficulty of establishing an entirely satisfactory classification system, it is

helpful to classify marketing research on the basis of the fundamental objectives of the

research. Consideration of the different types, their applicability, their strengths, and

their weakness will help the student to select the type best suited to a specific problem.

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The two general types of research are:

EXPLORATORY RESEARCH

Exploratory research seeks to discover new relationship, emphasis on discovery of ideas.

Marketing researches devote a significant portion of their work on exploratory studies when

very little is known about the problem being examined.

CONCLUSIVE RESEARCH

Conclusive studies attempts to determine the frequency with which something occurs or the

relationship between two phenomenons. Usually conclusive studies assume certain under

underlying characteristics of the market or have some precise statement of research

questions/hypothesis.

RESEARCH INSTRUMENT USED

If one wants to know what type of dentifrice people use, what they think of, television

commercials, or why they buy particular brands of cars, the natural procedure is to ask

them. Thus, the questionnaire method has come to be the more widely used of the two data

collection method. Many consumers are now familiar with the telephone caller who greets

them with “We are making a survey”, and then proceeds to ask a series of

questions. Some interviews are conducted in person, others by telephone, and others by mail.

Each of these has its special advantages and disadvantages and limitations. The questionnaire

method in general, however, has a number of pervasive advantages and disadvantages.

Discussion of particular variations will be more meaningful if these characteristics of the general

methods are brought out first.

A questionnaire consists of list of questions to be asked from the respondents and the

space provided to record the answer / responses. Questionnaire can be used for the

personal interviews, focus groups, mails and telephonic interviews. The choice among these

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alternatives is largely determined by the type of information to be obtained and by the type of

respondents from whom it is to be obtained.

The common factor in all varieties of the questionnaire method is this reliance on verbal

responses to question, written or oral.

Questionnaire in the project consists of:

MULTIPLE CHOICE QUESTIONS:

Questions of this type offer the respondents an alternative to choose the right answer among

others. It is faster, time saving and less biased. It also simplifies the tabulating process.

OPEN ENDED QUESTIONS:

In this type respondents are free to answer in their own words and express the ideas they think

are relevant, such questions are good as first questions or opening questions. They introduce

the subject and obtain general reaction.

DICTHOMUS:

These are the questions which are Boolean in nature. These answers are straightforward and

respondents have to answer them in a straight way. That means the answer can only be

either ‘Yes” or ‘No’.

SAMPLING TECHNIQUE USED & SAMPLE SIZE

Sample design is a definite plan of obtaining some items from the whole population. The

sample design used in this project is two state sampling i.e. Cluster and convenience. In the

probability sampling methods, each items in the sample is chosen one at a time from a

complete list of universe elements. In marketing research practice, it will sometimes be more

expedient to select clusters or groups of universe elements, rather than to choose sample

items individually. Sampling methods in which universe elements are chosen in groups ----

rather than individually -- are called cluster-sampling methods. They are widely used in the

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sampling of human populations. When no complete universe listing exists, a type of sampling is

called area sampling may be the only practically feasible form of probability sampling.

NONDISGUISED, STRUCTURED TECHNIQUES

The non structured techniques for attitude measurement are primarily of value in

exploratory studies, where the researcher is looking for the salient attributes of given products

and the important factors surrounding purchase decisions as seen by the consumer. Structured

techniques can provide a more objective measurement system, one which is more comparable

to a scale or a yardstick. The term scaling has been applied to the efforts to measure attitudes

objectively, and a number of useful scales have been developed.

SAMPLING

Sampling Technique : Non probability sampling (A non probability sampling technique is

that in which each element in the population does not have an equal chance of getting

selected)

Sample Unit : People who buy chocolates available in retail outlets, superstores, etc

Sample size : 30 respondents (Age ranging between 15 yrs to 50 yrs)

Method: Direct interview through questionnaire.

Data analysis method: Graphical method.

FIELD WORK- METHOD USED FOR DATA COLLECTION

• Questionnaire was prepared keeping the objective of research in mind.

• Questions were asked to respondents as regards to their willingness to purchase

Chocolates.

• The help of questionnaires conducted direct interviews, in order to get accurate information.

• In order to get correct information I had to approach consumers ranging from 15 yrs to 50 yrs.

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PRIMARY TABULATION & INTERPRETATION

[1] What kind of Chocolate do you eat?

98%

2%

BRANDEDNON-BRANDED

INFERENCE

98% respondents in the region of Guwahati consume Branded Chocolates, while 2% still consume none branded.

[2] Who uses chocolates in your family?

55%

43%

2%

ChildrenYoungOld

INFERENCE

Mostly children like chocolates in their families. So we should give stress on children segment to increase market share. Young people also using chocolates for consuming & for giving as a gift.

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[3] What form of Chocolate do you like?

14%

60%

20% 6%

CookiesBarWaferOthers

INFERENCE

The above diagram suggest that the most preferred form is bar i.e. 60%, followed by wafer i.e. 20%, Cookies are all time favorites with14% while other forms are preferred to the extent of 6%.

[4] Which Television channel you like to watch most?

15%

20%

15%18%

2%

30%

StarZeeSonyColorsCartoon Others

INFERENCE

Mostly people like Zee channel. This channel is very popular among all the age group

people. SONY, COLORS, STAR & CARTOON channels are also equally popular. In other

channels sports and news channels are preferred. CARTOON channel is specially preferred by

children. So it will be more beneficial to give advertisements on all channels where a wide

range of age group can be targeted upon.

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[5] In between what time you like to watch television?

32%

45%

10%3% 10%

5 to 8 pm8 to 11pmLate nightMorningAfternoon

INFERENCE

From the survey it was found that 45% of the respondents like to watch T.V. After 8 pm to 11

pm. Because mostly people belong to service class, students, & females in the families got their

work by this time. At 5 to 8 pm 32% respondents in which especially children watch

cartoon channel & etc. So it is good to advertise on preferred channels on these

timings.

[6] By which media you prefer to watch advertisements?

67%

17%

8% 5%3%

TelevisionHoardingsNewspapersMagazinesOthers

INFERENCE

Mostly people like to watch an advertisement through Television because most of them

belong to service class. Children are getting attracted through advertisement on television

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and hoardings. Company tries to give attractive advertisement through T.V. And

hoardings because advertisement through hoardings is less costly.

[7] What factors effects you in a chocolate advertisement?

30%

10%23%

20%

15% 5%

Brand AmbassadorJinglesComedyMusicEmotionsOthers

INFERENCE

Good Brand Ambassador generally effects people’s perception towards a product and

create an image in their mind. Mostly people like to see celebrities like Amitabh Bacchan,

Sachin Tendulkar, M.S.Dhoni, Saniya Mirza etc. As a Brand Ambassador in chocolate

advertisements. At the same time people like comedy, slow music & specially children like

jingles in advertisements.

[8] Have you ever tasted Amul Chocolate?

90%

10%

YesNo

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INFERENCE

The chart shows that 90% respondents have tasted Amul Chocolate, while still 10% have not tried Amul Chocolates. Amul must use proper techniques in order to cater the needs of every common man.

[9] Can you recall AMUL Chocolate advertisement?

32%

68%

YesNo

INFERENCE

Here it was observed that only 32% respondents in were able to recall Amul Chocolate

advertisement. This shows how much Amul lags behind in promotional activities and

advertisement. Therefore Amul must use strong promotional activities and

advertisement in order to retain their potential consumers.

[10] What is the frequency of purchasing Chocolate?

15%

35%

50%DailyWeeklyOcassionally

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INFERENCE

The frequency of chocolate differ a lot where 15% respondents buy it daily, 35% weekly and

there is a Hugh chunk of people who buy chocolate occasionally.

[11] How do you scale your Chocolate?

Attributes Excellent Good Average Poor Very poor

Price 2% 20% 64% 10% 4%

Taste 20% 20% 50% 10%

Packaging 10% 20% 50% 15% 5%

Softness 20% 20% 40% 8% 2%

Availability 3% 20% 54% 20% 2%

Flavour variety

10% 20% 40% 10% 10%

PRICE TASTE

2% 20%

64%

10%

ExcellentGoodAveragePoor

20%

20%

50%

10%

ExcellentGoodAveragePoor

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PACKAGING SOFTNESS

10%

20%

50%

15%5%

ExcellentGoodAveragePoorVery poor

20%

20%40%

8% 2%


AVAILABILITY FLAVOUR VARIETY

3% 20%

54%

20% 2%


10%

20%

40%

10%10%


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[12] How much do you think the following attributes in a chocolate are important?

Price of chocolates

10%

30%

30%

20%

10%

Very importantsomewhat importantneithersomewhat not importantNot important

Taste of chocolates

98%

2%

Very importantsomewhat important

Softness

50%

20%

10%5%

5%


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Packaging of chocolates

30%

30%

20%

10% 10%


Availability of chocolates

75%

25%

Very importantsomewhat important

Flavour variety in chocolates

40%

20%

30%

10%

Very importantsomewhat importantneithersomewhat not important

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[12] Which Chocolate do you like most?

13%

58%

28%1%

AmulCadburyNestleOthers

LIMITATIONS

Limited time available for interviewing the respondents. As a result of this it was not possible

to gather full information about the respondents.

When I interviewed children and teenagers, sometimes they use to give answers

under the influence of their parents or elders.

If the respondents answer does not falls between amongst the options given then it will

turn up to be a biased answer.

MY FINDINGS

During the survey it was found that still there are 10% people who have not tasted Amul

Chocolate.

Lack of Awareness in consumers. Many people are not know about Amul chocolates

specially children and teenagers.

As I found that the main product of Amul is Milk and company firstly wants to

capture maximum market share in milk market which is approx. 66%, after it

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Amul is concentrating upon butter & cheese which has market share of approx. 88%, so

it is not concentrating upon chocolates.

When I interviewed people then many of the people cannot recall Amul chocolate

advertisement. It shows Lack of Advertisement or advertisement is not timely given

or advertisement is not given on right time.

In their advertisement they are not using any brand ambassador which attracts all age

group people like Cadbury.

There is Lack of Sales Promotional Activities i.e. free tattoo, extra weight, toys, quiz

contest etc.

Cadbury is main competitor and strategically better performer then Amul.

I found the main thing is that “Amul” brand name has very good image in consumer’s

mind and they consider it as Pure & Good Product.

People who have tasted Amul Chocolate are not ready to purchase the same again.

SUGGESTIONS

In order to maintain and increase the sales in the city of Guwahati, the following

recommendations regarding Amul Chocolates; particularly regarding advertisement,

distribution, promotional policies, etc, are hereby suggested:

First and foremost Amul should take proper action in order to improve service,

because although being on a top slot in Butter and milk supplies it does not get the

sales in chocolate, which it should get.

Company should use brand ambassador which attracts each age segment i.e. Saniya

Mirza, Amitabh Bacchan, Ranbir Kapoor, Superman, Krrish, Jadoo etc.

Amul should give local advertisements apart from the advertisements given at

the national level. Local advertisement must mention the exclusive Amul shops of the

city.

Try and change the perception of the people through word of mouth about Amul in

advertisements, because they are the best source to reach Children and families.

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Though Amul chocolate advertisements are rarely shown on television yet many

people could recall it as per the data of research. It shows that there is only need to

give advertisement only to rememorize customers. Because Amul is very strong brand

name.

Company should launch chocolate in new attractive packing to change image of Amul

chocolate in consumers mind.

Company should introduce sales promotion schemes like free weight, pranky, tattoo,

contest, free gifts etc.

CONCLUSION

As we know that Amul is very big organization and market leader in dairy products. It has

maximum market share in Milk, Butter and Cheese, which are its main/core products. As we

know Amul is a co-operative organization but chocolate industry is a profitable industry we

can’t ignore it. With the help of research, company can find out its week points in chocolate

product and can increase its market share through rectify mistakes. People have believed

in Amul’s product and they will accept its chocolates 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 Chocolates like Chocozoo, Bindaaz, and Fundoo.

Quality is the dominating aspect which influences consumer to purchase Amul product,

but prompt availability of other chocolate brands and aggressive promotional activities

by others influences the consumer towards them and also leads to increase sales.

In comparison to Amul Chocolate, the other players such as Cadbury, Nestle, and

Perfetti provide a better availability and give competition to the hilt.

People are mostly satisfied with the overall quality of Amul Chocolate, but for the

existence in the local market Amul must use aggressive selling techniques.

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BIBLIOGRAPHY

1. www.amul.com

2. www.amuldairy.com

3. www.google.com

4. www.marketresearch.com

5. www.dairy.com

6. Research Methodology. ( Harper W.Boyd, C. R. Kothari

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QUESTIONNAIRE

[1] What kind of Chocolates do you eat?

Branded ______ Non-branded ______

[2] Who uses chocolates in your family?

Children ______ Teenager _____

Young _____ Old _____

[3] What form of Chocolate do you like?

Cookies _____ Bar _____

Wafer _____ Other _____

[4] Which T elevision channel you like to watch most?

STAR _______ ZEE ________

SONY _______ CARTOON ________

Others _______

[5] In between what time you like to watch television?

Timings _____________

[6] By which media you prefer to watch advertisements?

T elevision ____ Hoardings _____

Newspapers ______ Magazines ______

Others (Mention) _____

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[7] Which advertisement you like the most?

_______________

[8] What factors effects you in a chocolate advertisement?

Brand ambassador _______ Jingles ________

Comedy _______ Music ________

Others (Mention) _______

[9] Have you ever tasted Amul Chocolate?

Yes _____ No ______

[10] Can you recall AMUL Chocolate advertisement?

Yes ____ No ____

[11] What is the frequency of purchasing Chocolate?

Daily ______ Weekly _______

Fortnightly ______ Occasionally _______

[12] How do you scale your Chocolate?

Attributes Excellent Good Average Poor Very poor

Price

Taste

Packaging

Softness

Availability

Flavour variety

13] Which Chocolate do you like most?

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AMUL ____________

CADBURY ____________

NESTLE ____________

PERFETTI ____________

OTHERS ____________

[14] What would you like to see in a chocolate advertisement?

______________________________________________

______________________________________________

______________________________________________

______________________________________________

NAME: ___________

AGE: ___________

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Project Reprt on Amul

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