A PROJECT REPORT ON AMUL CHOCOLATES

(An in depth study of the peoples preferences and perceptions about Amul
chocolates)









Project guide:


Submitted by:










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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





















Particulars
INTRODUCTION AND HISTORY

PEOPLE POWER: AMUL'S SECRET OF SUCCESS

Research design
Tabulation & Interpretation
Limitations
Findings & Suggestions
Conclusion
Bibliography
Annexure ( Questionnaire)


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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 40s, 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 makers farmers board of management
and the professionals: each group appreciating its rotes and limitations,
Bring at the command of the rural milk producers the best of the technology and harness its
fruit for betterment.
Provide a support system to the milk producers without disturbing their agro-
economic systems,
Plough back the profits, by prudent use of men, material and machines, in the rural
sector for the common good and betterment of the member producers 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--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 consumers 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?

INFERENCE
98% respondents in the region of Guwahati consume Branded Chocolates, while 2% still
consume none branded.
[2] Who uses chocolates in your family?

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.
98%
2%
BRANDED
NON-BRANDED
55%
43%
2%
Children
Young
Old


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[3] What form of Chocolate do you like?

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?

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.
14%
60%
20%
6%
Cookies
Bar
Wafer
Others
15%
20%
15%
18%
2%
30%
Star
Zee
Sony
Colors
Cartoon
Others


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

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?

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
32%
45%
10%
3%
10%
5 to 8 pm
8 to 11pm
Late night
Morning
Afternoon
67%
17%
8%
5% 3%
Television
Hoardings
Newspapers
Magazines
Others


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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?

INFERENCE
Good Brand Ambassador generally effects peoples 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?

30%
10%
22.50%
20%
15%
5%
Brand Ambassador
Jingles
Comedy
Music
Emotions
Others
90%
10%
Yes
No


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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?

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?

32%
68%
Yes
No
15%
35%
50% Daily
Weekly
Ocassionally


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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%
Excellent
Good
Average
Poor
20%
20%
50%
10%
Excellent
Good
Average
Poor


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PACKAGING SOFTNESS


AVAILABILITY FLAVOUR VARIETY


10%
20%
50%
15%
5%
Excellent
Good
Average
Poor
Very poor
20%
20%
40%
8% 2%
Excellent
Good
Average
Poor
Very poor
3%
20%
54%
20%
2%
Excellent
Good
Average
Poor
Very poor
10%
20%
40%
10%
10%
Excellent
Good
Average
Poor
Very poor


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


Taste of chocolates

Softness

10%
30%
30%
20%
10%
Very important
somewhat important
neither
somewhat not important
Not important
98%
2%
Very important
somewhat important
50%
20%
10%
5%
5%
Very important
somewhat important
neither
somewhat not important
Not important


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Packaging of chocolates


Availability of chocolates


Flavour variety in chocolates

30%
30%
20%
10%
10%
Very important
somewhat important
neither
somewhat not important
Not important
75%
25%
Very important
somewhat important
40%
20%
30%
10%
Very important
somewhat important
neither
somewhat not important


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[12] Which Chocolate do you like most?


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
13%
58%
28%
1%
Amul
Cadbury
Nestle
Others


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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 consumers
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
cant 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 Amuls 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



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13] Which Chocolate do you like most?
AMUL ____________
CADBURY ____________
NESTLE ____________
PERFETTI ____________
OTHERS ____________
[14] What would you like to see in a chocolate advertisement?
______________________________________________
______________________________________________
______________________________________________
______________________________________________
NAME: ___________
AGE: ___________