Professional Documents
Culture Documents
Amul Project
Amul Project
PROJECT REPORT ON
Market Analysis & Sales Development of Amul Milk
This study was conducted from 8th June 09 to 8th August 09
At
Gujarat Co-operative Milk Marketing Federation Limited
BY:
PRASANTA KUMAR MOHAPATRA
PGDM
OF
Company Guide:
Faculty Guide:
PROF. K K BHASIN
PREFACE
The PGDM programme is well structured and integrated course of business studies.
The main objective of practical training at PGDM level is to develop skill in student
by supplement to the theoretical study of business management in general. Industrial
training helps to gain real life knowledge about the industrial environment and
business practices. The PGDM programme provides student with a fundamental
knowledge of business and organizational functions and activities, as well as an
exposure to strategic thinking of management.
Training is an integral part of PGDM and each and every student has to undergo the
training for 2 months in a company and then prepare a project report on the same after
the completion of training.
During this whole training I got a lot of experience and came to know about the
management practices in real that how it differs from those of theoretical knowledge
and the practically in the real life.
CERTIFICATE
The following summer internship project report titled MARKET ANALYSIS &
SALES DEVELOPMENT OF AMUL MILK at Gujarat Co-operative Milk
Marketing Federation Ltd., Pune from 8th June 2009 to 8th August 2009 is here by
approved as a certified study in management carried out and presented in a manner
satisfactory to warrant its 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
Prof. K.K BHASIN
Faculty guide
Signature
Mrs. K Madhavi
Director
CERTIFICATE
This is to certify that Mr. Prasanta Kumar Mohapatra, Roll No. A-7028 a student
of course PGDM from the institute Asian School of Management has done his
summer training at GUJARAT CO-OPERATIVE MILK MARKETING
FEDERATION LIMITED, PUNE.
The project work embodies the original work done by Mr. Prasanta Kumar Mohapatra
during his summer project training period.
Signature
Prof. K.K BHASIN
Faculty guide
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
Asian School of Management, Pune 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 Mrs.
Madhavi Khare, for providing me the opportunity to work with the one prestigious
organization.
I would like to give my heartily gratitude to the Mr. Pranil Jadhav, Senior Executive
(SALES), GCMMF Ltd., Pune 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 Mr. K.K. Bhasin, Faculty Member of ASIAN
SCHOOL OF MANAGEMENT, PUNE for having spared his valuable time with
me and for all the guidance given in executing the project as per requirements.
I would like to give my special thanks to my parents, their love, support and blessing
enabled me to complete this Project work.
However, I accept the sole responsibility for any possible error of omission and would
be extremely grateful to the readers of this project report if they bring such mistakes to
my notice.
DECLARATION
I hereby declare that the following project report titled MARKET ANALYSIS &
SALES DEVELOPMENT OF AMUL MILK 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. PRASANTA KUMAR MOHAPATRA
-:CONTENTS:-
Subject
Sr.
No.
Page No.
EXECUTIVE SUMMARY
INTRODUCTION
12
16
43
RESEARCH METHODOLOGY
45
51
68
LIMITATIONS
71
CONCLUSION
73
10
75
11
78
12
ANNEXURE
80
EXECUTIVE SUMMARY
In todays competitive world while entering in the market it is very necessary to have good
knowledge of the potential of a particular market. The information regarding the activities of
competitors existing in the market so that we can plan our each activity according to that. It is also
necessary to retain the existing customers apart from attracting the new customers.
The Project is concern with the market analysis & sales development of Amul dairy milk in
Pune city. The project included as part of MBA Programme and the project is done from 8th June to
8th August.
1.1
Title:
MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY.
1.2
Organization:
Gujarat Co-operative Milk Marketing Federation (GCMMF), Anand, Gujarat.
1.3
Objective:
The Primary objective of study was to find size of retail network of Amul Taaza and Amul
Gold in specific areas of Pune city. In the study my intention was go through the retail network of
Amul dairy milk to know retailers view about supply chain of Amul dairy milk, to know the
complaints of Amul dairy milk and to find the suggestions from retailers for more penetration of
Amul dairy milk in Pune region.
The secondary objective was to find customer response towards Amul milk. My aim was to
go through the customers to know the interest of purchasing & using Amul milk. Basically the study
was for the demand of Amul milk among the customers. And also to know the complaints on Amul
milk.
1.4
Research Methodology:
Research type was descriptive. The research was done through retailers. I have collected the
primary data through questionnaire which was filled by retailers, customers. Questions were both
open and close ended. The secondary data was collected from website www.amul.com.
Sampling done is nonprobability sampling. The type of sampling method was Judgment sampling.
10
1.5
Findings:
In Pune region there are around more players in of liquid milk exist. Those are like Chitale,
Katraj, Krishnai, Mahanand, Amul, Warna, and many other local brands.
As per the findings CHITALE is the Market leader and having more market share. Awareness of
Amul dairy milk among the retailers as well as consumers is average but acceptance is low. The sale
is totally depends on the retailers.
1.6
Data Analysis:
The data analysis has done area wise. It gives idea about the competitors of Amul dairy milk.
1.7
Conclusion:
It was concluded that Amul dairy milk i.e. Full Cream milk and Cow milk has a high
potential in the market and it is the known to its customers but still its acceptance is comparatively
low as other competitors present in the market, because perception of customers towards the product
is wrong, most of the consumer continuously using other brand and they do not want to switch over
other brand.
11
INTRODUCTION
12
2.1
frequency, affordability, taste and marketing. Availability is plays a vital role because purchasing
power is depend upon availability of that product, in case distributors and retailers service matter a
lot. Retailing includes all the activity in selling goods or service directly to the customers or personal
nonbusiness use .A retailer or retail store is any business enterprises whose sales volume comes
primarily from retailing.
Retailers are the part of milk marketing channels and perform the work of moving goods
from producers to the customers. It overcomes the time, place and possession gap that separates
goods and service from those who needs or wants them. Retailers as member of marketing channel
perform a number of key functions. Some functions (physical, title, promotion) constitute a forward
flow of activity from the company to the customers; other functions (ordering and payment)
constitute a backward flow from customers to the company. Still others (information, negotiation,
finance and risk taking) in both directions.
The project delves into the workings from the distribution aspect of an FMCG organization,
in detail. AMUL, being an FMCG company, attaches a lot of significance to the distribution aspect
of its business. The distribution channel of AMUL holds a lot of potential in affecting the demand or
sales of AMUL products through delivery on time, delivery of variety of products, the retailerfriendliness of the policies being set by the distributors and equitable distribution of products to all
the retail outlets in a particular region, to name a few.
So, In order to plan retail coverage we map out the positions of Amul outlets, Amul parlors,
and competitors outlets. This project was carried out in Pune city. For analyzing and presenting
information that is tied to geographical location, we divided the city in different wards. By analyzing
geographical representation and sales data with spatial distribution Amul outlets, competitors
outlets and the density of others in an area, we identify unexplored area and plan location outlets to
increase its market penetration. Using such research we can ascertain the quality and depth of retail
penetration in specific area.
13
Addition to this we carried out sales promotion activity through discount coupons. Sales
promotion consists of diverse collection of incentive tools, most short-term designed to stimulate
and/or greater purchase of a particular product by consumers or the trade. Whereas advertise offers a
reason to buy, sales promotion offers incentive to buy. Sales promotion includes tools for consumer
promotion (for example samples, coupons, prizes, cash refund, warranties, demonstrations, contest);
trade promotion (for example buying allowance, free goods, merchandise allowances, co-operative
advertising, advertising and display allowances, dealer sales contests); sales force promotion (for
example bonuses, contests, sales rallies).
Sales promotion efforts are directed at final consumers and designed to motivate, persuade
and remind them of the goods and receives that are offered.
2.2
consumers as well as company. Such as price discounts, samples, cash refund, premiums, prizes,
cross promotion and coupons etc. We decided to use discount coupons. We distributed it among
customers and validity kept seven days from issued.
It can attract the new consumers and customers buying other milk brands.
Attract brand switchers, who are primarily looking for low price, good value or
premiums.
14
2.3
Need of Study:
Managers are always curious about the position of their companys products in the market
which largely depend upon the companys goodwill, and the position of their brand. In order to
maximize the sale and profit, company must deliver outstanding satisfaction to the retailers,
wholesaler & customers. So market survey of retailers, wholesalers & customers, chart out the
position of the company as compared to the competitors. It helps the organization to find out the
brand being sold most by the retailers along with their stocking and also consumer buying
preferences.
2.4
15
INDUSTRY
&
COMPANY PROFILE
16
3.1
Industry Profile:-
According to a report published by International Dairy Federation (IDF) on the World Dairy
Situation 2007 the worldwide milk production is expected to grow at a slower pace in 2007-08 and is
estimated at 655 million tonnes, only 9 million tonnes more than the production of 2006 2007.
The strongest growth would be in Asia, notably in China and India. Milk production is projected at
36 million tonnes in China and 94.60 million tonnes in India. India would continue to be the largest
milk producer, followed by the US, with projected production of 82.60 million tonnes.
Major changes are not expected in dairy products basket. World butter production increased
for two years, in 2004 and 2005 and then declined in 2006-07. It is expected to decline again in
2007-08. Industrial cheese production is continuing to grow. The major cheese producing regions are
Europe and North America and both areas are expected to have a faster growth rate.
The production of condensed and evaporated milks is subject to a declining trend for many years in
the developed market. It has been replaced by many other dairy products, especially liquid milks of
UHT type, coffee cream and coffee whitener including some of the non-dairy origin.
World trade in dairy products after a period of relative stagnation, started recovery in the
second half of 2006-07 and it continued in the first half of 2007-08. The recovery is due to
prosperity resulting from economic demand. However, the bullish price situation is not likely to
continue long and would level down.
Export of butter and butter-oil recovered in 2006-07 and this recovery continued in early
2007-08. The total volume of the world trade in cheese has accelerated and this trend is likely to
continue in the year 2008.
17
The outlook for the trade in dairy commodities for 2007-08 appears bright. However, since
the new market equilibrium, in respect of prices has to be found, the question is whether
international trade in dairy products will continue its growth in 2007-08 at the same momentum as in
previous years. Because of the price situation in 2007-08, one may ask whether demand can follow
the expected trends, but it would be premature to expect stagnation in the trade. In established
markets, the potential for demand to reduce slightly can release the additional supplies, which are
needed to maintain the growth of trade.
Indias dairy sector is expected to triple its production in the next 10 years in veiw of
expanding potential for export to Europe and the West. Morever with WTO regulations expected to
come into force in coming years all the develope countries which are amoung big exporters today
would have to withdraw the support and subsidy to their domestic milk product sector. Also India
today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the US
63 cent. Also to take advantage of this lowest cost of milk production and increasing production in
yhe country multinational companies are planning to expand their activities here. Some of those milk
producers have already obtained quality standard certificates from the authorities. This will help
them in marketing their products in foreign countries in processed form.
The urban market for milk products is expected to grow at an accelerated pace of around
33% per annum to around Rs.83, 500 crores by year 2010. This growth is going to come from the
greater emphasis on the processed food sector and also by increase in the conversation of milk into
milk products. By 2010, the value of Indian dairy produce is expected to be Rs 10, 00,000 million.
Presently the market is valued at around Rs7, 00,000mn.
18
Recently the Indian cooperative movement got a much needed facelift. With competition
snapping at its heels, the sector which has been governed by arcane laws until the recent past will see
a special provision inserted in the companies Act, 1956. All the cooperative unions will be rechristened cooperative companies; they will come under the purview of the registrar of companies,
instead of the registrar of cooperatives.
Dairy cooperatives account for the major share of processed liquid milk marketed in the
country. Milk is processed and marketed by 170 milk producers cooperative unions, which federate
into 15 state co-operative milk marketing federations.
The dairy board's programmes and activities seek to strengthen the functioning of dairy cooperatives, as producer-owned and controlled organizations. NDDB supports the development of
dairy co-operatives by providing them financial assistance and technical
expertise, ensuring a
Over the years, brands created by cooperatives have become synonymous with quality and
value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini
(Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned
confidence.
19
customer
20
3.2
The Organization:
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, 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.
21
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 cooperative 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.
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.
22
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.
23
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 for a 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.
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.
24
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.
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.
25
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.
Amul (Anand milk union ltd.) is based on four hands, which are coordinated with each other.
The actual meaning of this symbol is co-ordination of four hands of different people by whom this
union is at the top position in Asia.
First hand is of farmers, without whom the organization would not have existed.
Second hand is of processors, who process the row material (milk) into finished goods.
Third hand is of marketer, without whom the product would have not reached the customers.
Fourth hand is of customers, without whom the products would have not carried on.
26
3.2.4 Vision:
GCMMF will be an outstanding marketing organization, with specialization in marketing of
food and dairy products both fresh and long life with customer focus and IT integrated. The network
would consist of over 100 offices, 7500 stockiest covering at least every Taluka. Head quarter
servicing nearly 10 lakh outlets with a turnover of Rs.10,000 Cr and serving several co-operatives.
GCMMF shall also create markets for its products in neighboring countries.
3.2.5 Mission:
We at GCMMF endeavor to satisfy the taste and nutritional requirements of the customer of
the world through excellence in the marketing by our committed team. Through co-operative
networking, we are committed to offering quality product that provides best value for money.
27
External Organization Structure is the organization structure that affects the organization
from the out side.
State Level Marketing Federation
Villagers
28
Managing Director
General Manager
Finance
Dept.
Production
Dept.
Marketing
Dept.
Senior
Manager
Senior
Manager
Senior
Manager
Senior
Manager
Senior
Manager
Finance
Manager
Production
Manager
Marketing
Manager
Sales
Manager
Personnel
Manager
Officer
Marketing
Executive
Officer
Supervisor
F.S.R.
Accountant
Officers
Salesmen
29
Personnel
Dept.
P.R.F.
Executive
Explosion of the production technology and changes in technical field is going to bring out
revolution in the industry sector which eventually gives stand to study and favors the come backing
subject i.e. production and management.
Production and operation management is planning, organizing, staffing, directing and
controlling of all the production system those portion of organization that convert inputs into
products and services. In general production system takes raw material, personnel, machines,
buildings and other resources and produce products and services.
The core of production system is its conversion subsystem where in workers; raw materials
are used to convert inputs into products and services. This production department is at heart of the
firm, as it is able to produce low cost products and superior quality in timely manners.
Thus, there arises enormous need of giving due importance to this department as a whole
and a strong concrete base being foundation pillars of a manufacturing organization, if the intention
is to succeed domestically and globally.
30
Operating Analysis-
Amuls only source of raw material is Village Milk societies. Milk is brought from such
village milk societies every morning and evening. This milk is then sent to the dairy plant. In the
dairy plant the milk is processed i.e. it is made free from germs.
Milk Processing
The entire process of milk can be divided into following steps:
Steps:
Milk Processing Chart:
Collection of Raw-Milk
Electronic Milk Test
Separation Process
Quality Check
Packaging Process
Cold Storage
31
Distribution Chart
Products
Agents
Wholesaler
Retailer
Consumer
We can see from above figure that GCMMF distribution channel is simple and clear. The
products change hands for three times before it reaches to the final consumer. First of all the
products are stored at the Agents end who are mere facilitators in the network. Then the products are
sold to wholesale dealers who then sell to retailers and then the product finally reaches the
consumers.
32
The Indian market is dominated by a large number of small local and regional players. There
are an estimated 150 manufacturers in the organized segment, which accounts for 30-35% of sales
and about 1000 units in the unorganized segments of the market. In the organized segment the
significant brands are Kwality Walls , Vadilal, Amul, Havmor, Mother dairy and Baskins &
Robbins. GCMMF is facing very tough competition from both in and outside India.
Amul combats competition from its competitors by providing quality products at a price
which its customers value. Along with good quality products and reasonable price the packaging is
also very good. Most of its products are available in many flavors. Excellent advertising backs its
products and helps GCMMF (AMUL) to leave its competitors a tough time. Also Amul has come
out with Amul Parlours to cater to various segments of customers. Amul has a very strong Brand
Image in the Domestic market. Many products are exported by GCMMF.
Sales Turnover
Rs (million)
US $ (in million)
1994-95
11140
355
1995-96
13790
400
1996-97
15540
450
1997-98
18840
455
1998-99
22192
493
1999-00
22185
493
2000-01
22588
500
2001-02
23365
500
2002-03
27457
575
2003-04
28941
616
2004-05
29225
672
2005-06
37736
850
2006-07
42778
1050
2007-08
52554
1325
2008-09
67113
1504
34
Members:
2.79 million
13,328
35
AWARDS:-
Amul a co-operative society and its co-operation has led many different awards in its favour.
Magsaysay award for community leadership presented in manila.
Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien
36
3.3
Amul Butter
Cheese Range
Amul Amrakhand
Avsar Ladoos
Pure Ghee
Milk Powders
Fresh Milk
38
Amul Lassee
Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black
Currant)
Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi
Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)
Cassatta
Health Isabcool
39
Brown Beverage
Milk Drink
Health Beverage
Recently launched
Amul Ganthiya
40
PLANTS
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk butter etc.
Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia
and Amul lite.
41
42
OBJECTIVE
&
SCOPE
OF THE STUDY
43
A. Primary Objective
1. To find size of retail network of Amul Taaza and Amul Gold in specific
Pune city.
areas of
B. Secondary Objective
1. To organize sales promotional activities to improve milk selling.
2. To generate and secure consumer awareness.
44
RESEARCH
METHODOLOGY
45
5.1
Research Methodology:
The research was conducted from 8th June, to 8th July, 2009. The research include meetings
with the retailers, consumers and dealers. It included preparation of the questionnaire to be answered
by above people for knowing the competitive position of Amul in the milk market. The views of the
above parties were recorded in the research as per the questionnaire set by us.
5.1.1
Research Approach:
The objective was to know the competitive position of Amul in the milk market thus in order
to successfully conduct the research the unbiased opinion of the above parties was desirable. Thus
we conducted the research as the representative of Amul company and sometimes the representatives
of the other company like Chitale or Katraj in order to have an unbiased opinion of the concerned
persons and it worked to achieve our goal.
5.1.2
Research Instrument:
The research instrument was the structured questionnaire formulated for the respondents. The
questionnaire was different for the retailers and dealers and for the consumers there was a different
set of questionnaire. There were also the area maps.
5.1.3
Types of Question:
The second important aspect in the designing a question is to decide which types of question
Open-ended question
2.
Dichotomous question
3.
Multiple-choice Question
Both the questionnaire consists of all three types of question. Mostly all questions are
multiple type questions. Dichotomous question are few in number. There is only one open-ended
type question.
46
5.1.4
Phrasing of Question:
In questionnaire, I try to phrase the question in logical way. For example I arrange question
in sequence as personal information, awareness data, usage data, and finally related to reason and
satisfaction.
5.1.5
Sampling Plan:
Sample Size:
The sample size was as follows:
SR. NO.
RESPONDENT
TOTAL NUMBER
1.
Retailers
169
2.
Consumers
95
3.
Distributors
Sampling Technique:
A stratified sampling technique was used. A different Stratum for different type of
respondent within every stratum the respondents was selected as per convenience basis.
5.1.6
Method of Survey:
Personal Interview:
It is direct form of investigation, involving face-to-face communication with free feedback
information. It offers a sense of participation. It is more flexible form of data collection. Use of
unstructured, open-end questions is possible. Rate of refusal is low. Depth interview is possible.
Complex questions can be asked. The interview can have questions to secure more information.
Observation approach can be combined to verify age, income, status, standard information. Visual
aids in the form of catalogues samples etc. can be used to get views, opinions, and attitudes of
responder.
47
Composition:
Variety
Fat (%)
SNF(%)*
8.5
*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34 parts of protein and
9 parts of minerals.
Special Features:
Amul Milk is the most hygienic liquid milk available in the market. It is pasteurized in stateof-the-art processing plants and pouch-packed to make it conveniently available to consumers.
Product Specification:
Amul milk meets the PFA standards for the respective type of milk.
Pricing of the Milk
Amul Gold:
Price to distributor
Rs. 25.37
Price to Retailer
Rs. 26.00
MRP
Rs.27.00
Price to distributor
Rs. 20.57
Price to Retailer
Rs. 21.00
MRP
Rs. 22.00
Amul Taaza:
48
Sahakar Nagar
Upper
Sukhsagar Nagar
Bibewadi
Balaji Nagar
Dhankwadi
At Approach:
What type of shop it is? (hotels, amrutulya, bakery, restaurant, general stores, super
market)
Secondary Level:
Territory Level:
49
Others:
Addendum:
Outlets may include institutions, general stores, mithai shops, super market, canteens,
juice bars, ice-cream corners etc.
These sectors were chosen because the company believed that these segments could be
the best potential buyers for this product.
50
DATA PROCESSINNG
&
ANALYSIS
51
6.1
Answer
Yes
No. of
respondents
55
Percentage
20%
No
114
80%
Yes
33%
Yes
No
No
67%
Interpretation:
The above graph indicates that only 1/3rd of the retailers are selling Amul milk.
It shows that Amul milk brand is not popular among the retailers.
52
Answer
5 Ltr
No. of
respondents
250ml
500 ml
32
1 Ltr
23
5 Ltr
1 Ltr
23
500 ml
32
250ml
0
0
10
15
20
25
30
35
No. of respondents
Interpretation:
The above graph shows that most of the retailers preferred to stored 500 ml and 1 Ltr pouch
of Amul milk as per the customer demand.
No.
of
respondents
6
Low margin
75
20
No distribution
13
Answer
No distribution
13
No replacement for
leakage
20
Low margin
75
Absence of packaging
date
10
20
30
40
50
60
70
80
No. of respondents
Interpretation:
From above graph it is clear that half of the retailers were not satisfied with Amul
replacement and margin policy.
BRANDS
RESPONDENTS
Amul
15
Chitale
77
Katraj
45
Gokul
Others
26
Others
26
Gokul
Katraj
45
Chitale
77
Amul
15
0
10
20
30
40
50
60
70
RESPODENT
S
.
Interpretation:
The above graph shows that the Chitale is most preferable brand in all.
55
80
90
Answer No.
of Percentage
respondents
95 %
Distributors
52
Other suppliers
5%
Interpretation:
Almost all retailers said that they purchased milk from Amul distributors.
56
Answer
Yes
No.
of Percentage
respondents
62 %
34
No
21
38 %
No
38%
Yes
Yes
62%
No
Interpretation:
Graph shows that most of the retailers were satisfied with the service provided by the Amul
distributors.
57
7) Awareness among retailers about different Sales Promotional activities for Amul milk.
(Out of 169 retailers only 55 were buying Amul milk.)
Activities
Aware
Not aware
Price off
37
18
Free samples
13
42
Credit facility
16
39
Advertisement
49
P-O-P Displays
41
14
Coupons
50
60
50
6
18
40
42
30
20
49
13
39
37
10
14
41
50
16
0
Price off
Aware
P-O-P
Displays
Coupons
Not aware
Interpretation:
The graph shows that retailers were aware about the sales promotion activity that Amul
carried out, but some respondents were unaware about various activities.
Most of the retailers were aware about advertisement and coupons scheme during festivals.
Credit facility and free samples were not provided to single retailers.
58
Answer
Percentage
Yes
No. of
respondents
27
No
142
84 %
16 %
Yes
16%
Yes
No
No
84%
Interpretation:
Graph represents the interest of the retailers to start Amul milk distribution .The questions
asked to increase the retail coverage.
59
9) Awareness among retailers for Amul Parlor (APO) and its benefits.
(Out of 169 retailers only 118were questioned as they had large store.)
Answer
Percentage
Yes
No. of
respondents
70
No
48
41 %
59 %
No
41%
Yes
No
Yes
59%
Interpretation:
APO is the outlet where you get Amul milk and milk products and it helps to increase the
market share. This question asked to the retailers who were strong enough in capital.
From graph it can be interpreted that the awareness about APO is very low.
60
Answer
Percentage
Yes
No. of
respondents
15
No
103
87 %
13 %
Yes
13%
Yes
No
No
87%
Interpretation:
The graph represent that very less number of retailers were interested to start APO.
61
RESPONDENTS
Good quality
23
Availability
25
Availability
25
23
Good quality
10
15
20
25
30
RESPODENT
S
Interpretation:
The question asked to the retailers where the Amul milk is being sale, and tried to collect
feedback of customers about Amul milk.
More customers were having complaints about the clear date of packaging and availability.
62
Brand
Quality
Rating
image
Availability
Packaging
Margin
Very good
37
48
34
Good
13
15
Average
48
Bad
Very bad
55
Total
55
55
55
55
55
60
50
40
0
5
0
7
0
6
0
13
15
48
30
20
48
37
34
10
2
5
0
Quality
55
Brand image
Very good
Good
Availability
Average
Packaging
Bad
0
Margin
Very bad
Interpretation:
From the above graph it can be concluded that
QUALITY: Most of the retailers were satisfied with Amul milk quality.
BRAND IMAGE: The graph shows that Amul is having good brand image.
AVAILABILITY: Most of the retailers were satisfied with the Amul milk distribution.
PACKAGING DATE: Most of the retailers were not satisfied about not printing of
packaging date and they were facing a problem regarding same.
MARGIN: All retailers were not satisfied with the margin policy given by Amul.
63
6.2
Answer
Yes
No. of
respondents
30
Percentage
32%
No
65
68%
Yes
32%
Yes
No
No
68%
Interpretation:
The above graph indicates that only 32% of the customers are purchasing Amul milk.
It shows that Amul milk brand is not popular among the customers.
64
Brand
Quality
Rating
image
Availability
Packaging
Price
Very good
18
25
16
Good
13
Average
15
11
Bad
Very bad
Total
30
30
30
30
30
35
30
0
3
0
5
0
5
0
25
9
0
8
11
20
15
15
25
10
18
16
13
2
5
Packaging
Price
0
Quality
Brand image
Very good
Good
Availability
Average
Bad
Very bad
Interpretation:
From the above graph it can be concluded that
QUALITY: Most of the customers were satisfied with Amul milk quality.
BRAND IMAGE: The graph shows that Amul is having good brand image.
AVAILABILITY: Most of the customers were satisfied with the Amul milk distribution.
PACKAGING DATE: Most of the customers were not satisfied about not printing of
packaging date and they were facing a problem regarding same.
PRICE: Some customers were not satisfied with the price given by Amul.
65
BRANDS
RESPONDENTS
Amul
15
Chitale
44
Katraj
11
Gokul
Others
17
17
Others
8
Gokul
11
Katraj
44
Chitale
15
Amul
0
10
15
20
25
30
35
RESPODENTS
.
Interpretation:
The above graph shows that the Chitale is most preferable brand in all.
66
40
45
6.3
Sales(Ltr)
Initially
Day 1
Day 2
Day 3
Day 4
Day 5
Day 6
Day 7
Sai
10
Vaishali
15
15
15
15
15
15
15
New hanuman
20
15
15
15
15
15
15
Hanuman
15
30
25
25
25
25
25
25
Durga
10
10
Sales (Ltr)
35
30
30
25
25
25
25
25
25
25
sai
20
15
20
15
10
10
5
0
15
5
0
initially Day 1
vaishali
15
15
15
15
15
15
hanuman
8
5
8
5
8
5
8
5
8
5
8
5
new
hanuman
Durga
Day 2
Day 3
Day 4
Day 5
Day 6
Day 7
Interpretation:
Most of the retail outlets were not interested in Amul milk selling, but after launching
coupons scheme, not only sales shoot up by considerable amount initially but also remain
constant for next days.
In case of Sai and Vaishali retail outlet they were not interested in Amul milk selling but
now they are selling 20 Ltr of milk daily. And they said if response will remain same they
will increase milk order.
67
OBSERVATION
&
FINDINGS
68
69
During campaign it is found that the mindset of consumers towards Chitale milk is very high
and hence it has become a milk maket player. As from the sales chart it is clear that the sales
of Chitale pouch milk is 50% more then Amul pouch milk.
Retailers also demand for the replacements for the damage due to the spoilage of milk that
they have to bear when the Amul milk gets spoiled after the purchase.
70
LIMITATIONS
71
Limitations:This report had to work under several constraints and limitations. Some of the key limitation are.
.
1.
2.
Time period of the project was 8 weeks, which may not be enough to understand the
whole market.
3.
4.
The sample size of the taken was small, therefore it can be said that the chosen sample is
not the representative of the whole population and this hindered quantitative research.
5.
6.
Respondents may not have been true in answering various questions and may be biased to
certain other questions.
7.
Out of the whole research and analysis, only three major brands could be highlighted,
leaving aside the other non-popular brands.
8.
9.
The sample size of Retailers / Wholesalers was very small and therefore response from
them dose not reflect the exact view because they may to biased.
72
CONCLUSION
73
74
SUGGESTIONS
&
RECOMMENDATION
75
Suggestions & Recommendation:The Milk products market has reached Maturity stage in India large no. of Co-operatives
having a variety of product range has entered the market, thus there is one way for Amul to sustain
their milk business in the market by delivering outstanding satisfaction to their retailers, so that they
can take interest in selling of Amul milk products. This can be done as follows
Company should start printing packaging date on milk pouch.
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.
Supply should be regular to all the outlets including those that lie in the pocket roads and
not just in the outlets which lie on the easily accessible routes.
250 ml milk pouch should make available to retailers for selling, because lower income
family has intention to buy small pouch milk.
Provide reasonable Margin to retailers as compared to competitors, this motivates them to
promote companys milk and milk products.
Improve delivery schedule to provide products on time for the retailers about who claimed
that Amul milk is not available to them on time.
Incentives & schemes should be given to the retailers and some scrutiny should be follow to
check the scheme get being communicated properly by distributors or sales person.
Provide consistent service to retailers as this will help gain company goodwill in the market.
Do not change distributor frequently, because he is the only person who act as a connecting
link between company and retailers.
Do not place more than one distributor in same market area.
Try to minimize bank deposits for APO, which help to retailer think to start.
Though the customers are asking for Branded milk is very few but Amul should invest more
money in Brand promotion and marketing in Pune, it will be beneficial for the company in
the long run as well as in the short run.
For Brand promotion and marketing of Amul milk in Pune it should introduce a mascot for
the Amul milk as it already has for Amul Butter i.e. The Amul Butter Girl in order to gain a
good position in the mind of customers. This will also help in easy Brand differentiation and
Recognition.
76
Also advertising on the television, Radio Mirchi and Sponsorship of the events, Trade Fairs
will be a better choice.
The study of milk market reveled that there is no Mergers and Acquisition in the milk
industry. Amul should go for Mergers and Acquisition and try to acquire the local players in
the Pune market like Chitale, Katraj and Gokul etc. It will help the company in increasing its
Dealers network, Market share, Customer base etc. It will also save time of establishing a
new manufacturing unit.
Our Research revealed that there is no awareness among the consumers regarding the Amul
milk in Pune. So it is advisable to the company to conduct various consumer awareness
programs like distributing of pamphlets outside the big shopping malls, giving presentations
in schools and colleges about the Amul Milk by telling them about the qualities of milk. By
this we can able to reach to a large number of people at one time only as there will students
along with their teachers and other staff members of the school and colleges.
The pamphlets should be printed in such a way that it not only advertise about the milk but
also provides information about how to preserve the milk in different conditions.
In order to attract the ladies segment the pamphlets should have some recepies on the other
side of it.
Some brand ambassador like M S Dhoni, Hrithik Roshan or Vriendra Sehwag may be used.
That will help customers to accept the product more quickly.
Special offers should be there for dealers, retailers and consumers at the time of diwali and
holi.
Discount coupons should be given to the consumers in order to buy more milk.
If adding preservatives in the milk keeps the milk for longer times then Amul should also
add some preservatives in the milk as people not only see quality but also sees the time
duration i.e. how much times we can store the milk.
In order to push the milk to the customers the profit margin should be increased.
Company should improve its distribution channel and should increase the number of
distributors.
Company should take care of retailers by solving their problems and should call back by
appointing separate company representatives.
Timely visit should be given to the retail shops.
77
BIBLIOGRAPHY
AND
WEBLIOGRAPHY
78
Books:
i.
ii.
Websites:
i.
www.google.co.in
ii.
www.wikipedia.com
iii.
www.amul.com.
iv.
www.marketresearch.com
v.
www.dairy.com
79
ANNEXURE
80
QUESTIONNAIRE:(Retailer Survey)
2) If yes, what is the size of Amul milk packets do you preferred to store?
a) 250 ml
b) 500 ml
c) 1 Ltr
d) 5 Ltr.
3) If No, Why?
a. Absence of packaging date
b. Low margin
c. No replacement for leakage
d. Low distribution
4) Which is the most preferable brand of packaged milk that you stock?
Amul
Chitale
Katraj
Gokul
Others
81
a) Distributors
b) Other suppliers
d) Free samples
b) Credit facility
e) Coupons
c) Advertisement
f) P-O-P Displays
a) Yes
b) No
82
Very good
a) Quality
b) Brand image
c) Availability
d) Packaging
e) Margin
83
Good
Average
Bad
Very bad
QUESTIONNAIRE:(Customer survey)
1)
2)
3)
Cheese
Shrikhand
Milk Powder
Dahi
Milk
Ice-Cream
Butter Milk
4)
No
No
Katraj
Chitale
Other (Specify)..
5)
6)
No
Satisfactory
Excellent
84
Gokul
7)
8)
Average
Good
Excellent
11.
High
10.
Excellent
9)
Satisfactory
No
Very good
f) Quality
g) Brand image
h) Availability
i) Packaging
j) Price
12.
85
Good
Average
Bad
Very bad