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SUMMER TRAINNING PROJECT ON MARKET RESEARCH,ANALYSIS & SALES DEVELOPMENT ON AMUL POUCH MILK
PROJECT GUIDED BY BETTY SIBIL SUBMITTED BY BOBIN.V POST GRADUATION IN DIPLOMA MANAGEMENT (BIOTECHNOLOGY) ROLL NO: 5 SEMIESTER III 2010 -2011
ACKNOWLEDGEMENT I would like to take this opportunity to express my since gratitude to those who encouraged me to complete this project successfully. First and foremost, I would like to express my sincere thanks to Dr. Vijayaragavan, Director of Pillai’s Institute of Management Studies and Research, New Panvel, for giving me this opportunity. I am especially indebted to my project guide Prof. Betty Sibil for providing me continuous support and help in my Endeavour. Last but not the least I would like to thank each and every one who helped me to compile my project during the entire period.
Bobin .V Roll No 5 PGDM BTM PIMSR New Panvel
CERTIFICATE The following summer internship project report titled “MARKET RESEARCH ,ANALYSIS & SALES DEVELOPMENT OF AMUL MILK” at Gujarat Co-operative Milk Marketing Federation Ltd., Kala Ghoda Mumbai, in Vashi City from 24th May 2011 to 11th July 2011 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. Betty Sibil Signature Dr G.Vjayaragavan
DECLARATION BY THE STUDENT I Bobin .V hereby declare that the following project report titled “MARKET RESEARCH, ANALYSIS & SALES DEVELOPMENT OF AMUL MILK” at Gujarat Co-operative Milk Marketing Federation Ltd., Kala Ghoda, Mumbai 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.
Executive Summery 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 selected sectors of Vashi city from 24th May 2011 to 11thJuly 2011. 1.1 Title: “MARKET RESEARCH ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN VASHI”. 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 Vashi city. In the study my intention was go through the retail network ofAmul 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 Vashi region. The Secondary objective was to find customer response towards Amul milk. My aim was to go through the retailer to know the interest of purchasing & using Amul milk. Basically the study was for the demand of Amul pouch milk among the customers through the retailer. 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 various website from internet. Sampling done is non probability sampling. The type of sampling method was Judgment sampling.
1.5 Findings: In Vashi the finding was done in Sector 9, Sector 9A, Sector 10, Sector 11, Sector 12, Sector 15, Sector28, Sector 29, there are around more players in of liquid milk exist. Those are like Gokul, Amul, Warana, Mother dairy, and many other local brands. As per the findings Gokul is the Market leader and having more market share as Vashi has a Big Cold Storage of Gokul. 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. It gives information regarding their market share. 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.
Table of Contents
Chapter 1 a. Introduction b. Scope & Objective Of The Study c. Limitations Of The Project d. Company Profile And Organization Chart Chapter II a. Process / Methodology Chapter –III a. Data analysis & interpretation Chapter –IV a. Findings Suggestions / Recommendations Bibliography Annexure (Questionnaire)
CHAPTER 1 INTRODUCTION
2.1 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 non business 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 retailer-friendliness 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 Vashi 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. 2.2 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. 2.3 Statement of The Problem: “MARKET RESEARCH ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN VASHI 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”.
SCOPE & OBJECTIVE OF THE PROJECT
3.1 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 areas of Vashi city. 2. To find the problems faced by retailers in selling and storing. 3. To collect the information about the competitors. 2. To generate sales
3.2 Scope of Project:
• • • • • • •
The study carried out in Vashi city so its scope is mainly limited to Vashi 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 served 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 sales.
LIMITATION OF THE PROJECT
4.1Limitations:This report had to work under several constraints and limitations. Some of the key limitation is. 1. The survey is limited only to few sectors only. 2. Time period of the project was weeks, which may not be enough to understand the
whole market. 3. Convenient sampling was used as the mode of conducting the research. 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. The psychology and temperament of a retailer play a significant role. Some respondents are more sensitive as against others who are more tolerant. A change in the composition of the retailer can affect the answers adversely or favorably. 6. Retailers 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 retailers 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 the dose not reflects the exact view because they may to bias.
COMPANY PROFILE & ORGNIZATION CHART
5.1 Industry Profile:5.1.1 The World Dairy Situation: IDF World Dairy Situation 2010 The International Dairy Federation (IDF) is aware that consumer needs are changing and the dairy sector must adjust to such demands quickly. The world dairy market is constantly growing and evolving. Every year, global production is increasing and fulfilling new needs and requirements in regions and continents around the world. The IDF World Dairy Situation 2010 has incorporated several changes designed to make it more
usable and relevant to decision-makers and dairy sector stakeholders concerned with continuously changing global dairy market conditions. It is also easier to use and reference thanks to its new innovative layout. This updated edition is the result of close collaboration between experts and key organizations around the globe and within the IDF. Its contents, including statistics on production, consumption and trade in all regions of the world, as well as specific observations from IDF member countries, will help the reader to better understand and deal with the many challenges and opportunities facing the global dairy market. Many of these are driven by population and income growth, consumer health concerns and changing dietary patterns worldwide. Commenting on the World Dairy Situation 2010 report, Bob Yonkers, Chair of the IDF Standing Committee on Dairy Policies and Economics said: “Despite ups and downs, world trade in dairy products continues to increase, rising seven per cent in 2009 compared to the previous year. That trend appeared to be continuing in the first half of 2010. New market exchange activity, reported in the World Dairy Market Forum section of this report, is a reflection of this trend and an expectation that it will continue. The IDF World Dairy Situation 2010 brings strategic insights into this dynamic and growing world dairy market for use by producers of farm milk, dairy product manufacturers, and ultimately the end-users of those products around the globe.” The World Dairy Situation 2010 is considered an essential and very useful resource by the global dairy community and is presented at the annual IDF World Dairy Summit. Source: http://www.thedairysite.com/news/32596/idf-world-dairy-situation-2010. 5.1.2 Indian Dairy Industry -- A Profile: India’s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West Moreover with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk product sector. Also India is the lowest cost producer of per liter 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 inched 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 around33% 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 conversion of milk into milk
products. In 2010, the value of Indian dairy produce was Rs 10, 00,000 million. Presently the market is valued at around Rs7, 00,000million. 5.1.3 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 re-christened 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 programs 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 better future for India's farmers. 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 customer confidence.
-: Some of the major dairy cooperative federations include:19
• • • • • • • • • • • • •
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) Tamilndu Cooperative Milk Producers Federation Ltd (TCMPF)
5.1.4 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. 5.2 The Organization: 5.2.1 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 from the Sanskrit word“AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”). In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor 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 Shir Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Shir 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 Samarkh 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. Varghese 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 Pundit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955.
5.2.2 Amul’s Secret Of Success: The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What’s more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high
quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socioeconomic upliftment and common good. Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere. Amul has been able to:
Produce an appropriate blend of the policy maker’s farmer’s board of management and the professionals: each group appreciating its rotes and limitations. Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. Provide a support system to the milk producers without disturbing their agro-economic systems. Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers. 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 5.2.3 GCMMF Overview: Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. 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 Organization 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 organization. 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. 5.2.4 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 lakhs 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. 5.2.5 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.
5.2.6 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 outside.
The following is internal organization chart of Amul. State Level Marketing Federation District Milk Product Union Ltd
Village Milk Product Union Ltd
Villagers External Organization Structure Chart
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 organization chart of Amul: Chairman
Asst. General Manager
Internal Organization Structure Chart 5.2.7 Production Function: Expansion 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 that portion of organization that converts 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.
Operating AnalysisAmul’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. ·
6.1 Milk Processing The entire process of milk can be divided into following steps:
Milk Processing Chart
6.2. 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 channel. 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 Ahmadabad, 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. 6.3 Distribution Chart 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.
Distribution Chart 6.4 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 Parlous to cater to various segments of customers. Amul has a very strong Brand Image in the Domestic market. Many products are exported by GCMMF. 6.5 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 Bread spread, AmulShrikhand, Amul Chocolates, Amul Paneer, Amul SnowCap Softy Mix Ice cream, Amul/SagarGhee, 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.
1st Amul Billboard in Mumbai
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 Cunhaalso 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.
In 1966, Amul hired Sylvester daCunha, then managing director of the advertising agency AS to design a new ad campaign for Amul Butter. daCunha designed an ad campaign as series of hoardings with topical ads, relating to day-to-day issues. The campaign was widely popular and earned a Guinness world record for the longest running ad campaign in the world. Since the 1980s, cartoon artist Bharat Dabholkar has been involved with sketching the Amul ads, which rejected the trend of using celebrities in advertisement campaigns. Dabholkar credited chairman Dr Varghese Kurien with creating a free atmosphere that fostered the development of the ads.
Despite encountering political pressure on several occasions, daCunha's agency has made it a policy of not backing down. Some of the more controversial Amul ads include one commenting on Naxalite uprising in West Bengal on the Indian Airlines employees strike, and the one depicting the Amul butter girl wearing a Gandhi cap 6.6 Sales Turnover:
6.7 Areas of Operation: Besides India, AMUL has entered overseas markets such as Mauritius UAE USA Bangladesh Australia Singapore China, Hong Kong Sri Lanka. South Africa
6.8 Some Facts:
Members: 13 district cooperative milk producers' Union No. of Producer Members: 2.79 million No. of Village Societies: 13,328 Total Milk handling capacity: 11.22 million liters per day Milk collection (Total - 2008-09): 3.05 billion liters Milk collection (Daily Average 2008-09):8.4 million liters Milk Drying Capacity: 626 Mts. per day Cattle feed manufacturing Capacity: 3500 Mts per day 6.9 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 farmer’s 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 favor. 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” Memento 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 Ramakrishna 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.
6.10 Some of The Products Marketed:-
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk.
Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite
Third plant is at Kanjari, which produces cattle feed.
Fourth plant is at Khatraj, which engaged in producing cheese.
Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.
CHAPTER 2 PROCESS & RESEARCH METHODOLOGY
6.12 Research Methodology The research was conducted from 24 May to July 11.
The research includes 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. 6.13 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 Gokul or Waran in order to have an unbiased opinion of the concerned persons and it worked to achieve our goal. 6.14 Research Instrument: The research instrument was the structured questionnaire formulated for the retailers. 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. 6.15 Types of Question: The second important aspect in the designing a question is to decide which types of questions to be used. Question can be classified in various ways. Questionnaire contains following type information1. Open-ended question 2. Questions including reasons behind why they did not wanted to sell Amul Milk 6.16 Phrasing of Question: In questionnaire, I try to phrase the question in logical way. For example I arrange questioning sequence as personal information, awareness data, usage data, and finally related to reason and satisfaction. 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. 6.17 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 shopkeeper.
6.18 Products for Which Survey Was Conducted:-
Composition Varity Amul Taaza Amul Gold Special Feature Amul Milk is the most hygienic liquid milk available in the market. It is pasteurized in state-of-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. 6.19 Pricing of the Milk Amul Taaza Price to distributor Price to Retailer MRP : Rs. 26.53 : Rs. 27.10 : Rs.28.00 Amul Gold: Price to distributor : Rs. 33.20 Price to Retailer MRP : Rs. 33.80 : Rs. 35 Fat% 6 3 SNF% 9 8.5
6.20 Area of Operation: The areas of operation were the research was done are as follows: Vashi Sectors 9, 9A, 10, 11, 12,15,28,29 At Approach:
•What type of shop it is? (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?
CHAPTER 3 DATA ANALYSIS & INTERPRETATION
7.1 Data Analysis 7.1 Number of shops were order was received & deliver was done Answer No of shops (20)
Amul Pouch Milk Sales In Vashi
10 8 6 4
Gokul Warana Amul Sales of Amul Milk Compaired To It Compitiors
k i M l u m A s p h S f O o N t c j P e h T g n i r u D d l o S
Since Vashi has Local Exclusive Milk distribution Booth of both Gokul & Warna their Sales are as they have continues supply of their milk pouch to all the nearby shops & they are available even in retail shops also & due it better supply chain & regular availability the Sales of Amul Milk is getting affected even after it’s a well know brand. Like Gokul has a Cold Storage in Vashi Amul should have a Cold Storage also so that the supply is continues to its retailer.
1. Do you sell pouch Milk? Answer Yes No No of shops(20) 18 2
Interpretation Out of 20 shops visited it was found that only 18 shops sell pouch milk 2 shops did not sell milk at all.
2. Which Brands you have or you sell presently? Brands Gokul Warana Amul Out of 20 shops 12 9 Only Tetra packs no pouch milk
Am ul Gokul Warana
As Gokul has a strong market hold in Vashi most of the retailer was selling it other than any other brands including Amul
3. Are you interested in selling Amul Milk? Answer Yes No No of shops(20) 5 15
Out of the 20 shops 5 shops were willing to sell Amul Pouch Milk.
4. May I know your reason behind not interested in selling Amul Pouch Milk? Answer Irregular supply Not interested Not allowed No customers Storage problem No of shops(20) 7 5 1 1 2
Irregular Supply Not interested No customer Storage problem
The main reason behind why many were not selling Amul Pouch Milk was found to be irregularity in supply which was followed by not interested in sell it as they don’t sell Milk at all, not allowed as, no customers & storage problem as the shop itself was very small.
CHAPTER 4 Findings Suggestions & Recommendation
8.1 Findings Amul is known to the Retailer & even Coustomer know the quality of its products. Its irregular supply to the Retailer is making ground for its competitor like Gokul& Warana which are still smaller than Amul make its way into Amul’s Market Share due their better & regular supply to the retailers. 9.1 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. • Amul has a relatively good distribution network, but still company is not able to fulfill the demand of outlet in areas like its competitors has their company outlet. 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. 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. Though the customers are asking for Branded milk is very few but Amul should invest more money in Brand promotion and marketing in Vashi, 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 Vashi 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. Timely visit should be given to the retail shops.
• • • • • •
10.1 Bibliography www. amul.com www. scribd.com www.4 shared.com www.Wikipedia.com
www. Google.com / image search http://www.nddb.org/partners/gcmmf.html http://www.dudhsagardairy.co.in/milk-products.htm
11.1 Annexure 1. Do you sell pouch Milk? Answer Yes No No of shops(20) 18 2
2. Which Brands you have or you sell? Brands Gokul Warana Answer Amul Yes No Out of 20 shops 12 9 No of shops(20) Only Tetra packs no 5 pouch milk 15 3. Are you interested in selling Amul Milk?
4. May I know the reason behind your not interested in selling Amul Milk? Answer Irregular supply Not interested Not allowed No customers Storage problem No of shops(20) 7 5 1 1 2
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