SUMMER INTERNSHIP 2010 AMUL

By Sumeet Agarwal PGDM-Marketing 62

Market Analysis and Sales Development of Amul Masti Dahi

Internal Guide Prof. Rajesh Nair (Prof. Marketing)

External Guide Mr. Yogesh Nikam (Sales Executive, Amul)

AMUL Fact-filey Type: Cooperative y Headquarters: Anand, India y Key people: Chairman, GCMMF y Industry: Dairy Products y Revenue: INR 67.11 billion, $15.04 billion USD (08-09) y Employees: 735 employees of Marketing Arm. However, real

pool consist of 2.8 million Milk producers y Website: www.amul.com y CRISIL, India's leading Ratings, Research, Risk and Policy Advisory Company assigned "AAA/Stable/P1+" to the various bank facilities of GCMMF.

AMUL Product Portfolio

RESEARCH OBJECTIVE The main objective of the Study can be listed as follows:

1. To find the problems faced by retailers in selling and storing of Amul Masti Dahi. 2. To collect the information about the competitors of Amul Masti Dahi.

RESEARCH METHODOLOGYy Research Design:

- Exploratory and Descriptive Research y Sampling Plan: - Sample Size 200 respondents(100 Retailers; 100 Customers) - Sampling Unit People between age group 20 to 70 years residing in CBD, Kharghar. - Sampling Technique Cluster Sampling and Convinience Sampling

Data AnalysisData was Collected by conducting a survey using a questionnaire amongst the customers and retailers.

Key Findings Based on consumers survey report y High brand awareness 92% y On the basis of customer survey report most of the respondent was from middle and higher

middle class.y Mother Dairy curd is rolling almost Double times more than Amul Masti Dahi because of its

quality, availability and schemes.y Amul Should target Housewife as they are the decision makers for household groceries. y Most of the respondents buy the products based on the quality. y

Mother Dairy is the market leader in Navi Mumbai Area.

y Most of the respondent have expressed that proper advertisement is necessary to create demand

in the market.

Based on Retailers survey report y No replacement is provided for damaged goods. Other brands like Mother dairy,

nestle, Warana provide replacement.y Amul has no separate delivery unit. Delivery of Amul Masti Dahi happens once in

a week while Mother Dairy, Nestle, Warana delivers Twice/Thrice a Week.y Other brands like Mother dairy, Nestle provide refrigerators to the retailer and

use it as a strategy by not allowing retailers to store other brands.y Distribution channel is not properly hooked up. y Amul gives the least profit margins to its Retailers which demotivates them to

sell Amul Masti Dahi. No Schemes are offered to the retailers.

SWOT ANALYSIS OF AMUL MASTI DAHISTRENGTH y Good brand Image - It manufactures only milk and milk products, which are purely vegetarian so it gives quality assurance to the consumers. y Competitive Pricing Pricing of the product is line with the competitors.

y y y y y y

WEAKNESS Improper supply No replacement No separate delivery unit No commercial refrigeration supply Distribution channel is not properly hooked up. Fewer Margins to Retailers.

OPPORTUNITY y Extension - Intensive advertisements and brand image, company has good scope in future. y Product offering- Can offer wide variety of Dahi under umbrella of Amul Masti Dahi. y Existing market is not fully tapped & the company can increase presence by penetrating further. THREATS y Existence of other brands, like Nestle, Mother dairy is the choice of upper class section of people. y There is no brand loyalty, so customers can change the brand.

SUGGESTIONS/RECOMMENDATIONSy Since the set curd is consumed by upper class and upper middle class,

y y y

y

company must go for the varities of products like sugar free curd for old age people, slim curd for teen age with different flavor. Company should provide commercial refrigeration supply to keep the product in set form. The product needs advertisement to create the brand value for Amul Masti Dahi. Availability of the product in the shop is the most important factor. There is always a complaint from the distributors regarding supply shortage from the company which can be checked by centralizing the distribution channel. In such case if the distributors does not have proper stock to supply the product in the required retail shop then the problem can be solved by taking it from the other distributor of the Amul company which is nearby to their place. There is no doubt that Amul Masti Dahi is a brand name, but it should create brand identity.

y Company should provide expiry replacement facility to the retailers as all y

y

y

y

other brands provide it. Amul has a relatively good distribution network, but still company is not able to fulfill the demand of outlet in the peak season when demand is very high. Here company should consider on the supply of product in the peak season. Only fresh product should be supply in the outlet. The main cause of the supply of fresh product is that customer always wants fresh product. They dont want to take 3 or 4 days old product. In order to motivate the channel members it is very essential for the company to increase the margins for hard selling items. Eg. Amul Masti Dahi where it faces competition from brands like Nestle and Mother Diary. In order to remain sensitive to market demand, it is essential for the company to place additional salesman on the field since the brand as such commands a high demand in the market buts fails to match it with the supply.

Conclusiony Food industry is changing rapidly in India but packaged food is still at a very nascent

stage.The potential is huge as far as India is concerned since the pattern of people consuming fast food and packaged food is changing rapidly.

y Amul needs to perform product innovation and advertise if it wants to

convert Amul Masti Dahi to a star product and become a market leader.