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
ASIAN SCHOOL OF MANAGEMENT A report submitted in partial fulfillment of the requirements of PGDM (2008-10)
Mr. PRANIL JADHAV SENIOR EXECUTIVE (SALES) GCMMF Ltd. PUNE
PROF. K K BHASIN
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.
In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field.
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.
In today’s globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that “Experience is best teacher”.
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 it’s acceptance as a prerequisite for the award of post-graduate diploma in management (PGDM). For which it has been submitted. It is understood that by this approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed on conclusion drawn therein but approve the summer internship report only for the purpose it is submitted.
Signature Prof. K.K BHASIN Faculty guide
Signature Mrs. K Madhavi Director
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 entitled “MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK” has done under the supervision of Mr. K.K. BHASIN faculty member of ASIAN SCHOOL OF MANAGEMENT.
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
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.
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.
Signature Mr. PRASANTA KUMAR MOHAPATRA
1 2 3 4 5 6 7 8 9 10 11 12
EXECUTIVE SUMMARY INTRODUCTION INDUSTRY & COMPANY PROFILE OBJECTIVE & SCOPE OF STUDY RESEARCH METHODOLOGY DATA PROCESSING & ANALYSIS OBSERVATION & FINDINGS LIMITATIONS CONCLUSION SUGGESTION & RECOMMENDATION BIBLIOGRAPHY & WEBLIOGRAPHY ANNEXURE
9 12 16 43 45 51 68 71 73 75 78 80
In today’s 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 competitor’s 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.
“MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY”.
“Gujarat Co-operative Milk Marketing Federation (GCMMF), Anand, Gujarat”.
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.
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.
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.
The data analysis has done area wise. It gives idea about the competitors of Amul dairy milk.
It gives information regarding their market share.
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.
CONTEXT OF THE TOPIC:
The dairy industries companies run mainly on the factors such as availability, service
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 competitor’s 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, competitor’s 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.
Promotion Tool Used:
The consumer promotion tools mean the promotion activities, which are beneficial for
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.
• • • • •
The consumers are seduced to buy the product. It helped to increase sales volume. Consumer can get good quality of good in cheaper price. 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.
• • •
Turn switcher to loyal users, It induced to make some subsequent purchases. Give little permanent gain in market share.
Need of Study:
Managers are always curious about the position of their company’s products in the market
which largely depend upon the company’s 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.
Statement of The Problem:
“MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY” It helps to study all activities which can be used to influence large number of customers so as
to increase the sales of the Amul milk effectively”.
INDUSTRY & COMPANY PROFILE
3.1.1 The World Dairy Situation:
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.
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.
3.1.2 Indian Dairy Industry -- A Profile:
India’s 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.
3.1.3 Co – Operative Unions:
Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice. 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.
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 producer’s 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 better future for India's farmers. 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. customer
-:Some of the major dairy cooperative federations include:-
• • • • • • • • • • • • • •
Andhra Pradesh Dairy Development Co-operative Federation Ltd (APDDCF) Bihar State Co-operative Milk Producers Federation Ltd (COMPFED) Gujarat co-operative Milk Marketing Federation Ltd (GCMMF) Haryana Dairy Development Cooperative Federation Ltd. (HDDCF) Himachal Pradesh State Cooperative Milk Producers Federation Ltd (HPSCMPF) Karnataka Cooperative Milk Producers Federation Ltd (KMF) Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF) Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF) Maharashtra Rajya Sahkari Maryadit Dugdh Mahasangh (Mahasangh) Orissa State Cooperative Milk Producers Federation Ltd (OMFED) Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF) Punjab State Cooperative Milk Producers Federation Ltd (MILKFED) Rajasthan Cooperative Dairy Federation Ltd (RCDF) Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF)
3.1.4 The Dairy Cooperative Network
• • • • Includes 170 milk unions Operates in over 338 districts Covers nearly 1,08574 village level societies Is owned by nearly 12 million farmer members. Apart from making India self sufficient in milk, these dairy co-operatives have established our country as the largest milk-producing nation in the world.
3.2.1 Introduction & History:
In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name AMUL in 1955. The brand name Amul means “AMULYA”. This word derived form the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, 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 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.
However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand. Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Cooperative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL.
At the initial stage only 250 liters of milk was collected 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.
3.2.2 Amul 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.
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. 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.
3.2.3 GCMMF Overview:
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest Organisation in FMCG industry engaged in marketing of milk & milk products under the brand names of AMUL and SAGAR with an annual turnover exceeding Rs 5000 crores. GCMMF is a unique organisation. It's a body created by Farmers, managed by competent professionals serving a very competitive and challenging consumer market. It is a true testimony of synergistic national development through the practice of modern management methods.
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.
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.
3.2.6 Organization Structure:
Organization Structure is divided into two parts: • • External Organization Structure Internal Organization Structure
External Organization Structure
External Organization Structure is the organization structure that affects the organization from the out side. State Level Marketing Federation
District Milk Product Union Ltd.
Village Milk Product Union Ltd.
As we know, GCMMF is unit of Gujarat Milk Marketing Federation, which is a co-operative organization. The villagers of more than 10000 villages of Gujarat are the bases of this structure. They all make village milk producers union, district level milk producers union and then a state level marketing federation is established. The structure is line relationship, which provides easy way to operation. It also provides better communication between two stages.
Internal Organization Structure:
The following is internal organisation chart of Amul:
Organization Structure Chart
Ass. General Manager
Sales & Purchase Dept.
3.2.7 Production Function:
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.
Amul’s 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
Methyline Blue Reduction Test Purchasing And Standardizing Process
3.2.8 Distribution Network:
Most producers work with marketing intermediaries to bring their products to market. The marketing intermediaries make up a marketing channel also called distribution cannel. Distribution channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption. The Head Office of GCMMF is located at Anand. The entire market is divided in 5 zones. The zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover there are 49 Depots located across the country and GCMMF caters to 13 Export markets. A zero level of channel also called a direct marketing channel consists of a manufacturer selling directly to the final customers. A one level channel; contains one selling intermediary such as retailer to the final customers. A two level channel two intermediaries are typically wholesaler and retailer. A three level channel are typically wholesaler, retailer and jobber in between. GCMMF has an excellent distribution. It is its distribution channel, which has made it so popular. GCMMF’s products like milk and milk products are perishable. It becomes that much important for them to have a good distribution.
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
3.2.9 Managing Competition:
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.
3.2.10 Advertising by Amul:
Amul has two agencies that look after its entire range of products namely FCB Ulka and Da Cunha. FCB Ulka looks after a broad range of products namely, Amul Lite Breadspread, Amul Shrikhand, Amul Chocolates, Amul Paneer, Amul SnowCap Softy Mix Ice cream, Amul/Sagar Ghee, Amul Infant Milk Formula 1 & 2, Sagar Tea and Coffee whitener, Amul Spray Infant Milk Food, Amul Mithaee, Amul Gulab Jamun, Amulya Dairy Whitener, Mithaimate Sweetened Condensed Milk, Amul Ice cream, Sagar Skimmed Milk Powder and Amul Whole milk Powder. Da Cunha looks after the Amul butter. Da Cunha also prepares the very popular Amul butter billboard campaigns, which we see at various locations. Over and above the Amul butter, Da Cunha also looks after the Amul Cheese, Cheese spread, Gouda Cheese, Emmental Cheese, Masti Dahi and Buttermilk, Amul Slim-n-Trim, Amul Taaza and Amul Gold (all different brands of milk), Amul Fresh Cream, Amul Chocolate Milk, Amul Fresh Milk and Nutramul. FCB Ulka also looks after the corporate campaign. 33
3.2.11 Sales Turnover:
Sales turn over of GCMMF from 1994 to 2009:-
Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113
US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504
3.2.12 Areas of Operation:
Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African nations. Other potential markets being considered include Sri Lanka.
3.2.13 Some Facts:
Members: No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 2008-09):
13 district cooperative milk producers' Union 2.79 million 13,328 11.22 million litres per day 3.05 billion litres
Milk collection (Daily Average 2008-09): 8.4 million litres Milk Drying Capacity: Cattlefeed manufacturing Capacity: 626 Mts. per day 3500 Mts per day
3.2.14 Achievement & Awards:
Amul: Asia’s largest dairy co-operative was created way back in1946 to make the milk producer self-reliant and conduct milk- business with pride. Amul has always been the trend setter in bringing and adapting the most modern technology to door steps to rural farmers. Amul created history in following areas: First self motivated and autonomous farmers “organization comprising of more than 5000000 marginal milk producers of Kaira District”. Created Dairy co-operatives at village level functioning with milk collection centers owned by them. Computerized milk collection system with electronic scale and computerized accounting system. The first and only organization in world to get ISO 9000 standard for its farmers co-operatives. First to produce milk from powder from surplus milk. Amul is the live example of how cooperation amongst the poor marginal farmers can provide means for the socio-economic development of the under privileged marginal farmers.
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
1964: “Padmabhusan” award given to Shri T.K. Patel 1965: “Padmshri” awarded was given to V. Kurien, general manager, by the president of India. 1987: “Best Productivity” awarded by national productivity council for the year 1985-86 awarded to Amul dairy. 1988: “Best Productivity” awarded for the second successive year 1986-87 by the president of India, Mr. R. Venkatrao to kaira union. 1993: “ICA” Memenoto towards genuine and self sustaining cooperative worldwide ICA regional office for Asia and pacific, New Delhi, 1996. 1999: G.B.Birla award. Moreover the Amul union has achieved the prestigious ISO 9001-2000 and HACCP Certificate and effects are got to obtain ISO 14000. 1999: Best of All" Rajiv Gandhi National Quality Award for the year, 2003: The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer in the service category of the prestigious IMC Ramkrishna Bajaj National Quality Award. 2006-07: GCMMF has bagged award for excellent performance in exports of dairy products from Agricultural and Processed Food Exports Development Authority (APEDA). 2007: Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit.
List of Products Marketed:Bread spreads
• • •
Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter
• • • • • • • •
Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned Utterly Delicious Pizza
Mithaee Range (Ethnic sweets)
• • • • • •
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix Avsar Ladoos
• • •
Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee 37
UHT Milk Range
• • • • • • •
Amul Shakti 3% fat Milk Amul Taaza 1.5% fat Milk Amul Gold 4.5% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy Mix
Infant Milk Range
• • •
Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months above) Amulspray Infant Milk Food
• • • •
Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener
• • • • • •
Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardized Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat Amul Cow Milk
Sweetened Condensed Milk Amul Mithaimate Sweetened Condensed Milk Curd Products
• • • •
Yogi Sweetened Flavored Dahi (Dessert) Amul Masti Dahi (fresh curd) Amul Butter Milk Amul Lassee
Amul Ice creams
Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti) Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)
• • •
Utsav Range (Anjir, Roasted Almond) Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate) Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)
• • •
Sundae Range (Mango, Black Currant, Chocolate, Strawberry) Millennium Ice cream (Cheese with Almonds, Dates with Honey) Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)
• • • • • • • •
Cool Candies (Orange, Mango) Cassatta Tricone Cones (Butterscotch, Chocolate) Megabite Almond Cone Frostik - 3 layer chocolate Bar Fundoo Range - exclusively for kids SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple) Health Isabcool
Chocolate & Confectionery
Amul Milk Chocolate Amul Fruit & Nut Chocolate
Nutramul Malted Milk Food
Amul Kool Flavoured Milk
Amul Shakti White Milk Food
Ready to Serve Soups
Masti Tomato Soup Masti Hot & Sour Soup
Recently launched • Amul Ganthiya
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.
Third plant is at Kanjari, which produces cattelfeed.
Fourth plant is at Khatraj, which engaged in producing cheese.
OBJECTIVE & SCOPE OF THE STUDY
4.1 Objectives of Project:
The main objective of the Study can be listed as follows
A. Primary Objective 1. To find size of retail network of Amul Taaza and Amul Gold in specific Pune city. 1. To find the problems faced by retailers in selling and storing. 2. To collect the information about the competitors. areas of
B. Secondary Objective 1. To organize sales promotional activities to improve milk selling. 2. To generate and secure consumer awareness.
4.2 Scope of Project:
The study carried out in Pune city so its scope is mainly limited to Pune city. It gives information about the size of the retail network. It gives information about the services given by distributor to their retailer. It gives information about the competitors’ products. It will serve consumer in better manner. It provides suggestions to the company to improve their products sales. It gives information about the sales promotion activities to improve the milk sale
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.
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.
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 are to be used. Question can be classified in various ways. Questionnaire contains following type information1. 2. 3. Open-ended question Dichotomous question 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
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. 1. 2. 3. RESPONDENT Retailers Consumers Distributors TOTAL NUMBER 169 95 4
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.
5.2.1 Product for Which Survey Was Conducted:-
Composition: Variety Amul Gold (Whole Milk) Amul Taaza (Toned milk) Fat (%) 6 3 SNF(%)* 9 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 Price to Retailer MRP Amul Taaza: Price to distributor Price to Retailer MRP : : : Rs. 20.57 Rs. 21.00 Rs. 22.00 48 : : : Rs. 25.37 Rs. 26.00 Rs.27.00
5.3.1 Area of Operation:
The areas of operation were the research was done are as follows: • • • • • • Sahakar Nagar Upper Sukhsagar Nagar Bibewadi Balaji Nagar Dhankwadi
How the survey conducted To approach the outlets with the following requirements in mind
At Approach: • What type of shop it is? (hotels, amrutulya, bakery, restaurant, general stores, super market) • • Does it stock Amul products? What other brands available in the shop
Secondary Level: • • • Whether it sells milk ? If yes, whether it sells Amul milk ? Whether the company provides any promotional support ?
Territory Level: • • • • • Does he sell local milk or not ? Which is the most selling milk in the market ? Who supplies milk to your shop ? Does the delivery of milk is on time ? What is the mode of payment credit or cash ?
Types of schemes given to him. What are the uses of milk ?
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.
DATA PROCESSINNG & ANALYSIS
Data Analysis For Retailers:1) Number of retailers stocking Amul milk.
Answer Yes No
No. of respondents 55 114
Percentage 20% 80%
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.
2) Sizes of Amul milk packets retailers preferred to store. (Out of 169 retailers only 55 were buying Amul milk.)
Answer 250ml 500 ml 1 Ltr 5 Ltr 0
No. of respondents 32 23 0
0 5 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. • • In case of 5 Ltr. Pouch there was no customers demand. 250 ml pouches were not available to retailers. 53
3) Reasons for Amul milk not stored by retailers. (Out of 169 retailers 114 were not buying Amul milk.)
Answer Absence of packaging date Low margin No replacement for leakage No distribution
No. of respondents 6 75 20 13
No replacement for leakage
Absence of packaging date 0
No. of respondents
Interpretation: • From above graph it is clear that half of the retailers were not satisfied with Amul replacement and margin policy. • • Some retailers responded about absence of packaging date. Very less retailers complained about distribution network 54
4) Preference of retailer’s to milk brand.
BRANDS Amul Chitale Katraj Gokul Others
RESPONDENTS 15 77 45 6 26
Others Gokul Katraj Chitale Amul 0 10 15 20 6
. Interpretation: • •
The above graph shows that the Chitale is most preferable brand in all. Some retailers also prefers Katraj and others brands.
5) Sources from where retailers get Amul milk (Out of 169 retailers only 55 were buying Amul milk.)
Answer No. of Percentage respondents 95 % Distributors 52 Other suppliers 3 5%
Interpretation: • Almost all retailers said that they purchased milk from Amul distributors.
6) Retailer’s satisfaction with Amul distributor. (Out of 169 retailers only 55 were buying Amul milk)
Answer Yes No
No. of Percentage respondents 62 % 34 21 38 %
Yes Yes 62% No
Graph shows that most of the retailers were satisfied with the service provided by the Amul distributors.
7) Awareness among retailers about different Sales Promotional activities for Amul milk. (Out of 169 retailers only 55 were buying Amul milk.)
Activities Price off Free samples Credit facility Advertisement P-O-P Displays Coupons
Aware 37 13 16 49 41 50
Not aware 18 42 39 6 14 5
60 50 40 30 20 10 0 Price off Free samples Credit facility Advertisement P-O-P Displays Coupons 37 13 16 42 6 18 39 49 41 50 14 5
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.
8) Interest of retailers in wholesale distribution of Amul milk.
Answer Yes No
No. of respondents 27 142
Percentage 16 % 84 %
Interpretation: • Graph represents the interest of the retailers to start Amul milk distribution .The questions asked to increase the retail coverage. • • Most of the retailers were not interested. Only 16% of the retailers were ready to start Amul distribution.
9) Awareness among retailers for Amul Parlor (APO) and its benefits. (Out of 169 retailers only 118were questioned as they had large store.)
Answer Yes No
No. of respondents 70 48
Percentage 59 % 41 %
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.
10) Interest of retailers in opening an Amul Parlor (APO). (Out of 169 retailers only 118 were questioned as they had large store.)
Answer Yes . No
No. of respondents 15 103
Percentage 13 % 87 %
The graph represent that very less number of retailers were interested to start APO.
11) Consumer’s expectation from Amul milk. (Out of 169 retailers only 55 were buying Amul milk.) ATTRIBUTE Good quality Clear packaging date Availability RESPONDENTS 7 23 25
Clear packaging date
10 RESPODENT S
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. Some customers were not happy with quality of milk.
12) Ratings from retailers for attributes of Amul milk. (Out of 169 retailers only 55 were questioned as they buying Amul milk.) Attribute Rating Very good Good Average Bad Very bad Total Quality 37 13 5 0 0 55 Brand image 48 7 0 0 0 55 Availability 34 15 0 6 0 55 Packaging 5 2 48 0 0 55 Margin 0 0 0 0 55 55
60 50 40 30 20 10 0 Quality Brand image Very good Good Availability Average 48 37 34 2 5 Packaging Bad Very bad 0 5 13 0 7 0 6 0 15 48 55 0
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
Data Analysis for Customers:1) Number of customers purchasing Amul milk.
Answer Yes No
No. of respondents 30 65
Percentage 32% 68%
• 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.
13) Ratings from customers for attributes of Amul milk. (Out of 95 customers only 30 were questioned as they buying Amul milk.) Attribute Rating Very good Good Average Bad Very bad Total Quality 18 9 3 0 0 30 Brand image 25 5 0 0 0 30 Availability 16 9 0 5 0 30 Packaging 5 2 15 8 0 30 Price 6 13 11 0 0 30
35 30 25 9 20 15 25 10 5 0 Quality Brand image Very good Good Availability Average Bad Packaging Very bad Price 18 16 0 3 0 5 0 5 0 9 15 13 0 8 0 11
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
14) Preference of retailer’s to milk brand.
BRANDS Amul Chitale Katraj Gokul Others
RESPONDENTS 15 44 11 8 17
Amul 0 5 10 15
. Interpretation: • •
The above graph shows that the Chitale is most preferable brand in all. Some customers also prefers Katraj and others brands.
Data Analysis for Sales Promotion Activity:1. Sahakar nagar 2. Sinhgad road Store name Initially Sai Vaishali 0 0 5 15 5 Day 1 10 15 20 30 10 Day 2 5 15 15 25 10 Sales(Ltr) Day 3 5 15 15 25 8 Day 4 5 15 15 25 8 Day 5 5 15 15 25 8 Day 6 5 15 15 25 8 Day 7 5 15 15 25 8
We carried sales promotion activity at two places of Pune city
New hanuman Hanuman Durga
35 30 25 20 15 10 5 0 5 0 initially Day 1 15 20 15 10 15 8 5 15 8 5 15 8 5 15 8 5 15 8 5 15 8 5 30 25 25 25 25 25 25 sai vaishali hanuman new hanuman Durga
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
7.1 Observation Findings:-
7.1.1 Retailers: (super market, grocery shops, ets) • Retailers are not interested because they don’t have storage facility but if company provides them such facility they will be sale Amul milk. • Because of low profit margin almost all retailers are not interested in Amul milk selling. • The 250 ml and 5 Ltr milk pouch are no available to the retailers for selling. • On question, why retailers are not interested in selling of Amul milk, it is found they were not happy with margin, availability and replacement of leak pouches. • Retailers were selling different brands. Because they were able to receive more margin from non popularized brand that they could not from well known brands. • All retailers get Amul milk from company selected distributors. • Measurable amount of retailers were not happy with the distributors, because of frequent change in distributors and late delivery of milk. • All retailers were familiar with sales promotion activities undertaken by Amul. But more of the activities were not communicated by distributors. So it shows that distributors are taking the advantage of such activities. • Some questions were asked with view to convert retailers into distributors, but due to low margin they denied that. • Retailers were not interested to start APO because to start APO one required large amount investment i.e. near about 2 Lakhs and with this it is mandatory to sale only Amul products, so most of the retailers did not show interest in APO. • I found that customers were complaining about the packaging especially packaging date because Amul do not print packaging date on pouch. • When question came to retailers ratings towards Amul milk rating most of the most respondents complaining about profit margin and packaging date.
• 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.
7.1.2 End Users: (House holds) • Consumer’s preference for purchasing of liquid milk is mainly based on quality, taste, availability, home delivery and freshness respectively. • Awareness level among the consumers is around 75% to 80% but still only around 15% consumers are consuming Amul milk. • Consumers have a perception that Amul milk is unfresh and is having lots of cuddling problem. • The packaging of Amul milk is not popular among the customers as compared to other milk brands are available in the market.
7.1.3 Bulk Users: (sweet shops, restaurants, hotels, canteens etc). • The awareness level of Amul milk in bulk users is around 90% but only 10% are using Amul milk. • The preference of purchasing milk by the bulk users is mainly quality, price and timely availability. • The reasons for not using milk by the bulk users are : 1. Higher price that is not meeting the competitors rate as bulk user are very price sensitive. 2. In sweet marts mawa generation is less and there is a complaint about cuddling of milk. 3. In case of canteens contract some of them prefer credit purchasing which is against company’s norms and policies.
Limitations:This report had to work under several constraints and limitations. Some of the key limitation are. . 1. 2. The survey is limited only for six wards. Time period of the project was 8 weeks, which may not be enough to understand the whole market. 3. 4. Convenient sampling was used as the mode of conducting the research. 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. The psychology and temperament of a respondent play a significant role. Some respondents are more sensitive as against others who are more tolerant. A change in the composition of the respondents can affect the answers adversely or favorably. 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. The questionnaire mostly contained multiple choice questions, therefore many respondents did not give a proper thought before up the questions, and some even ticked things, which were not applicable. Therefore, all this increased the bias. 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.
Conclusion:Amul means different things to different people.
To a milk producer – A life enriching experience To a consumer – Assurance of having wholesome milk To a mother – A reliable source of nourishment for her child To the country – Rural development and self reliance As we know that Amul is very big organization and market leader in dairy products. It has maximum market share in Milk, Butter, Cheese & Ice-Cream which are its main/core products. But in case of local market like Pune the Amul milk is not a popular product as compared to other Amul Products. With the help of research, company can find out its week points in Milk product and can increase its market share through rectify mistakes. People have believed in Amul’s product and they will accept it also if effective actions were taken.
The survey resulted into following conclusions :
Amul must come up with new promotional activities such that people become aware about Amul Milk like Amul Tazza & Gold.
Quality is the dominating aspect which influences consumer to purchase Amul product, but prompt availability of other Milk brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales.
In comparison to Amul Milk, the other players such as Chitale, Katraj,Gokul & Krushnai provide a better availability and give competition to the hilt.
People are mostly satisfied with the overall quality of Amul Milk, but for the existence in the local market Amul must use aggressive selling techniques
SUGGESTIONS & RECOMMENDATION
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 company’s 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.
BIBLIOGRAPHY AND WEBLIOGRAPHY
i. ii. Marketing Management (12th Edition) – Philip Kotlar Research Methodology – C. R. Kothari
i. ii. iii. iv. www.google.co.in www.wikipedia.com www.amul.com.
Name of the shop: __________________________________________________ Retailer Name: ____________________________________________________ Address: __________________________________________________________
1) Do you stock Amul milk? a) Yes b) No
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
5) From where do you get Amul milk?
a) Distributors b) Other suppliers
6) Are you satisfied with Amul distributor? a) Yes b) No 7) Do you know which Sales promotional activities does the company undertake for Amul milk? a) Price off b) Credit facility c) Advertisement d) Free samples e) Coupons f) P-O-P Displays
8) Are you interested in distribution of Amul milk?
a) Yes b) No
9) Are you aware of Amul Parlor (APO) and its benefits? a) Yes b) No
10) Are you interested in opening an Amul Parlor (APO) a) Yes b) No
11) What is consumer’s expectation from Amul milk? a) Good quality b) Packaging c) Availability
12) Give your ratings to following attributes of Amul milk.
a) Quality b) Brand image c) Availability d) Packaging e) Margin
Name of the shop: __________________________________________________ Retailer Name: ____________________________________________________ Address: __________________________________________________________
Do you know about Amul? Yes No
What are the products of Amul you use very frequently? Butter Dahi Cheese Milk Shrikhand Ice-Cream Milk Powder Butter Milk
Do you regularly get the Amul Milk? Yes No
Which brand’s milk do you like most? Amul Katraj Chitale Gokul
Other (Specify)…………………….. 5) Do you know about Amul God and Taaza? Yes 6) No
How is the taste of Amul Gold? Poor Satisfactory Excellent
How is the taste of Amul Tazza? Poor Satisfactory Excellent
What about the price of Amul milk? Low Average High
How is the packing of Amul milk? Poor Good Excellent
Do you like the home delivery scheme of Amul Milk? Yes No
Give your ratings to following attributes of Amul milk.
f) Quality g) Brand image h) Availability i) Packaging j) Price
Any suggestion about Amul milk: