2009

The Taste of India

Potential for Amul Pouch Lassi in Kolkata Market
[By Rohit Ranjan & Vikash Kumar]
For Amul

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The Taste of India
A Project Report on

Potential for Amul Pouch Lassi in Kolkata Market

SUBMITTED TO

Amul

BY

Rohit Ranjan Vikash Kumar

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The Taste of India

Table of Contents

Serial No. 1 2 3 4 4.1 4.2 4.3 4.4

Particulars Acknowledgement List of Tables INTRODUCTION Background Scope of Study Research Objective Research Problem Research Design a) Category Of Research b) Information Needed c) Data Collection Method d) Sampling Plan e) Areas Covered Kolkata Lassi Market- An overview Competitors Analysis Loose Lassi Retailers Organised Players 4P Analysis of Competitors a) Product b) Price c) Promotion d) Place  Distribution Strategy Research Findings a) Findings from Consumers survey b) Findings from General retailers survey c) Findings from Loose Lassi Retailers d) Limitation and Caveats Insight From Market Survey Market Potential Demand estimation of Amul Pouch Lassi SWOT Analysis of Amul Pouch Lassi Launch Plan- Amul Pouch Lassi Marketing Objectives STP Analysis of Amul Pouch Lassi 4 P of Amul Pouch Lassi

Page No. 5 6 7 8 8 9 9 10-12

5 6 6.1 6.2 6.3

13-14 15 15 15 16-18

7

19-31

8 9 10 11 12 13 14 15

32 32-33 33 34 35 35 36 36-43
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a) Product Strategy b) Placement Strategy  Distribution Strategy c) Pricing Strategy d) Promotion Strategy Post Launch Plan for Amul Pouch Lassi Annexure 1: Questionnaire for consumers Annexure 2: Questionnaire for General Retailers Annexure 3: Questionnaire for Loose Lassi Retailers

16 17 18 19

44 45-47 48-49 50-51

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Acknowledgement
The summer training at Amul has been one of the enriching learning experiences of our lives. It gave us an opportunity to participate and learn about the concept of launching strategy of a new product. Throughout the course of exploration about the potential of Amul’s proposed Pouch Lassi we got plentiful opportunity to learn and understand the insight of consumer’s behaviour. The survey conducted on consumers of Kolkata and Loose Lassi retailers operating in Kolkata Market gave us the first hand understanding about the Lassi and curd market of Kolkata. We would like to thank the authority of Amul for providing us with a good environment and facilities to complete this project. We would like to mention unique gratitude towards Mr. Manoranjan Pani (GM, Amul Kolkata), Deepak Chakraborty for his sincere facilitation in the project and valuable guidance during the course of project. We would like to thank to our Facilitating officer of this project, Mr. Sameer Nayak for the valuable guidance and advice. He inspired us greatly to work in this project. His willingness to motivate us contributed tremendously to our project. We would also like to mention the help and support we received from Mr. Niladri Chakraborty during our field trip. His critical suggestions helped us in no small measure. Finally we would like to thank CIMP for providing us this opportunity to work with an organization like Amul. Rohit Ranjan Vikash Kumar

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The Taste of India
List of tables

Serial number 1 2 3 4 5 6 7 8 9 10 11 12

Name of the table Respondents Profile Market size of Lassi in Kolkata Market Share of Branded and Loose Lassi retailers Share of Branded Players Pricing profile of Competing brands and loose Lassi retailers Cost of production for Loose Lassi retailers Attributes affecting purchasing decision of Lassi Satisfaction from Existing source of Lassi Market potential of Lassi Distribution Cost of Amul Pricing profile of Proposed Amul Pouch Lassi Budget required for Promotion

Page no. 12 14 15 15 18 19 26 27 36 43 44 45

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The Taste of India
Introduction

Market Area: Kolkata, Howrah and surrounding markets Lassi is a traditional Indian drink and it is used as a refreshment drink especially in summer season. It is made by blending dahi with water, sugar, ice and Indian spices. Traditionally Bengali people have a special liking for sweet food items like Rosogulla, Misti Dahi. The taste of Lassi is sweet which makes it more acceptable by the people of Kolkata as they have a liking for sweet food items. Lassi as a drink has several advantages first it refresh its consumer and apart from that it also acts as better filler, a more nutritious and healthy drink. It is a complete drink and due to its high nutritional value it is consumed by people of all ages. Lassi has the potential to take place of carbonated drinks. Homemade Lassi fulfils the requirement of Lassi of Kolkata market and Lassi sold in open market. Demand of Lassi reaches to its peak in summer season whereas in winter its demand decreases drastically. Lassi market of Kolkata is highly dominated by unorganized players (Loose Lassi retailers). Organised players enjoy a very small market share of Lassi market of Kolkata. The two most important factors in the marketing of Lassi is quality of Lassi and its availability. People of Kolkata want Lassi of a brand on which they can trust and it should be easily available in all parts of Kolkata. Amul’s proposed new product Lassi in pouch pack would be an interesting addition in the existing product line which will add value to the brand and helps Amul to reach customers in a better way.

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Background
Amul has its presence in the Lassi market of Kolkata with its product Amul Kool Lassi but in spite of good acceptance from the consumers of Kolkata this product is not successful. The major problem with this product is short supply problem. Amul Kool Lassi is being produced in Gujarat and from there it is supplied to Kolkata market. Due to this Amul is not able to tap the Kolkata Lassi market. Thus Amul needs a product which can fill this gap of demand and supply. This research project will evaluate the market potential of Amul’s pouch Lassi because Amul want to have a wide presence in Kolkata to tap the Lassi market. Amul wants to be engaged in the mass production, mass distribution and mass promotion of pouch Lassi for all buyers and this could be possible only when it can provide Lassi at an affordable price with better quality visa-a-visa its competitors (mainly loose Lassi retailers). The aim of this research study is to assist Amul in making decision about launching proposed pouch Lassi in the Kolkata & Howrah market. This research involves developing a database from which conclusions can be drawn about launching and marketing strategy which can touch and cater to the maximum consumer base.

Scope of study The study is aimed at determining the market potential of Lassi market of Kolkata and its surroundings. An analysis of consumers of Kolkata will be done to identify unfulfilled needs and wants of consumers regarding Lassi. Alongside an analysis of Loose Lassi retailers and other competitor’s marketing and distribution strategies will be done. The study will focus on analyzing competitor’s strengths and weaknesses and on the basis of these findings design an efficient launching strategy for proposed AMUL pouch Lassi. The study is confined to the geographical limits of Kolkata, Howrah and its surroundings.

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Research objective The major research objectives of this research are following: 1. To estimate the market size of Lassi market of Kolkata 2. To find out the market share of Loose Lassi retailers and their pricing and marketing strategy 3. To find out the market share of organised players and their marketing and distribution strategy 4. To find out the perception of consumers regarding Loose Lassi in respect to Lassi of organised players 5. To find out the preferences of consumers for pouch Lassi of a strong brand Amul 6. To design a launching strategy for proposed Amul pouch Lassi in Kolkata market Research Problems a) Marketing Decision Objective/ Problems: Should Amul launch Lassi in pouch pack in Kolkata market? b) Marketing Research Objective/Problems: i) What is the perception of consumers about Loose Lassi and what is their preference for pouch Lassi? ii) What are the major influencing factors that affect buying behaviour of customers and how these factors can be used to create an uncontested market for Amul pouch Lassi?

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The Taste of India
Research Design

a) Category of research:
Descriptive

b) Information Needed
i) ii) iii) iv) v) vi) vii) Sources of Lassi Level of penetration of Loose Lassi retailers. Marketing and distribution strategies of organised players. Consumption behaviour of consumers of Lassi. Factors that affect purchasing decision of consumers. Factors of existing Lassi with which customers are unsatisfied. Preference of consumers for pouch Lassi in respect to Loose Lassi

Data Collection Method  Primary Data: i. Sample survey of Consumers, non consumers of Lassi using questionnaire method. ii. Sample survey of general retailers, Pan Shops who keeps carbonated drinks using questionnaire method. iii.  Sample survey of Loose Lassi retailers using questionnaire method.

Secondary Data: i. ii. Internet Data available with Amul

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Sampling Plan  Target Population: General consumers of Kolkata, general retailers, Pan shops keeping any form of soft drink and Loose Lassi retailers.  Sampling Technique: Cluster sampling: - Kolkata and Howrah was divided into 20 clusters and from each cluster a set of consumers, Loose Lassi retailers and general retailers were surveyed. The basis for consumer and retailers sampling was locality.  Sample size: Consumers: 396

Consumers of Lassi Buyers of Loose Lassi Buyers of Amul kool Lassi Buyers of competing Brands
(Table 1: Respondents Profile)

335 274 23 18

General retailers: 58 Loose Lassi retailers: 97

Loose Lassi retailers Retailers keeping Amul Kool Lassi Retailers keeping competing brands of Lassi Retailers not keeping Lassi
(Table 1: Respondents Profile)

97 29 4 25

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Areas covered: DamDam, Maniktala, Shyam Bazar, Shobha Bazar, Ulta Danga, Salt Lake, Belia ghat, Garia, Jadavpur, Dhakuria, Behala, Thakurpukur, Sealdah, Hazra, Bada Bazar, Park Street, Dharamtala, Rasbihari, Kalighat, Alipoore, Khidirpur, Bagha jatin, Howrah and outskirts of Kolkata.

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Kolkata Lassi Market – An Overview
Kolkata is a big market of Dahi. Traditionally, people of Kolkata have a special liking for Misti Dahi and Dahi made products. Traditionally Bengali does not have a habit of consuming Lassi. They have got into this habit of consuming Lassi after following the food habit of nonBengali people specially Marwari and Punjabi. People from Bihar, Uttar Pradesh, Punjabi and Marwari have a special liking for Lassi. The weather of Kolkata is very humid thus Kolkata is a very big market of refreshment drinks very. Most of this sell of refreshment drink comes in the form of impulsive buying. The population of Kolkata and Howrah is around 1.5 Crore. The total requirement of Lassi per day of Kolkata market is around 3.8 LLPD. Out of this requirement, homemade Lassi is fulfilling 1.7 LLPD (45%) of requirement of Lassi. The Lassi sold in the market fulfils rest of the requirement of Lassi. Unorganized players have a major say in that.

Lassi Market size of Kolkata Homemade Lassi sold in Market

(LLPD) 1.7 2.1

(Table 2: Market size of Lassi of Kolkata)

Lassi sold in the market: Out of total Lassi sold in the market, the unorganized players enjoy around 98% (2.05) of market share and the organised players enjoy only 2% of market share of Lassi market of Kolkata. Lassi sold in Kolkata market Branded (Pouch+ Tetra) Loose
(Table 3: Share of Branded & Loose Lassi)

(2.1LLPD) 0.05 2.05

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In the organised segment, there are three players. Among these brands Arambagh and Bens supply Lassi in pouch pack whereas Amul supply Lassi in tetra pack. Among these organised players, Arambagh has a market share of 40% and both Amul and Bens enjoys a market share of 30% each. Brand Amul Arambagh Bens Total
(Table 4: Share of Branded players)

Sales volume (LPD) 1500 2000 1500 4500

Kolkata being the capital of West Bengal, is a hub of offices, both government and private. This has resulted in a greater population being in the service class, which has considerably increased the literacy rate of the city. Keeping this fact in mind, it is comparatively easier to generate awareness about the hygiene and adulteration issue associated with the loose Lassi and it is vindicated by the increasing number of consumers want to shift to the branded Lassi. But still because of product unavailability people have to rely on Loose Lassi retailers.

Competitors Analysis
Lassi market of Kolkata is highly dominated by Loose Lassi retailers. They enjoy a market share of more than 95%. Rest of the market is enjoyed by organised players Amul, Arambagh and Bens. Loose Lassi retailers: There are around 4000 Loose Lassi retailers operating in Kolkata and Howrah. Most of these Loose Lassi retailers are seasonal. They operate mainly during summer, Rainy and during festival (Durga Puja) season. Some of the Loose Lassi retailers operate throughout the year. 14 | P a g e

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Loose Lassi retailers are not evenly distributed in every area of Kolkata. In some areas like Salt Lake, Behala, Thakurpukur it is hard to find a loose Lassi retailer. But areas like Sealdah, Park Street, Dharamtalla, Bada Bazar, Ulta Danga, Writers Building are the hub of loose Lassi retailers. The retail price of Loose Lassi varies from Rs 5 to Rs 15. These retailers make a margin of more than 100%.

Organised Players: Arambagh Among the organised players Arambagh enjoys the highest market share. Per day consumption of Arambagh Lassi is around 2000 Litre. Bens Bens also supply Lassi in pouch pack like Arambagh. Per day consumption of Bens Lassi is around 1500 Litre. These two brands have very limited presence in Kolkata market. They have their presence only in south Kolkata specially Garia and its surroundings. These two companies are not able to supply pouch Lassi in every part of city. Because of operating in very small area these companies cannot make success in the Lassi market of Kolkata. 4P Analysis of competitors: a) Product i. ii. b) Price i. The retail price of Loose Lassi is Rs 10 in most of the areas. However it varies in some places from Rs 5 to Rs 15. In Sealdah region retail price of Lassi is Rs 5 which they are able to keep by mixing more quantity of water and ice. ii. The retail price of Arambagh pouch Lassi is Rs 8 whereas the retail price of Bens pouch Lassi is Rs7. The extra price charged by Arambagh is passed to distributors and retailers as Arambagh provide greater margin to its distributors and retailers in comparison to Bens. 15 | P a g e Loose Lassi retailers offer Lassi in glass. The quantity of Lassi provided per Glass is 200 ml. Arambagh and Bens offer a similar kind of product i.e. Lassi in pouch pack with a pack size of 200ml.

The Taste of India
Name of Brand Pack Size Type of packing Pouch Pouch Glass Cost to WD (RS) 6 5.55 0.75 0.65 Margin Retailer’s Margin Price 6.75 6.2 4.96 1.25 0.8 5.04 8 7 10 MRP

Arambagh 200 ml Bens Loose 200 ml 200 ml

(Table 5: Pricing Profile of Competitors)

Cost of Production for Loose Lassi Retailers Average cost of Milk/ lit (Rs) 1 Lit Milk Cost of 1 KG Dahi (Rs) 1 KG Dahi 1 kg sugar makes 22 glasses of Lassi Cost of 1 KG sugar (Rs) Other cost/ Glass (Ice, Water, Straw, Bhand) (Rs) Cost of 1 Glass of Lassi Retail Price (Rs) Margin (%)
(Table 6: Cost of Production for Loose Lassi retailers)

24 900 gm Dahi 27 10 glasses of Lassi

24 1.2 4.96 10 102%

c) Promotion i. Loose Lassi retailers being an unorganized sector does not have any promotion strategy apart from mouth publicity. ii. Arambagh and Bens have no promotional strategy for their Pouch Lassi. 16 | P a g e

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d) Place i. Loose Lassi retailers have their shops mainly in market places, near bus stands and near Railway station. Movement of consumers is very frequent at these places which help them in having a good business. ii. Arambagh and Bens have their presence only in south Kolkata and outskirts of Kolkata. Thus strategically they are not properly placed in Lassi market of Kolkata.

Distribution Strategy Both Arambagh and Bens follow same distribution strategy. These companies also have their pouch milk in market. They use their existing distribution channel of pouch milk for the supply of pouch Lassi. Lassi is distributed through Milk van and it is supplied to only those distributors who keep milk of these companies. From there it is supplied to only those retailers who keep milk of these companies. Pouch Lassi is supplied in early morning around 2-4 am to distributors and till the time it is supplied to retailers it is kept in open place. As a result of this the quality of Lassi is decreased till the time it reaches to end consumer.

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Research Findings
To study the Lassi Market of Kolkata a survey was conducted for duration of one month in and around Kolkata. Findings of Consumer Survey i. Consumers of Lassi and reason for non-consumption:

Lassi is a popular drink of Kolkata market as 85% respondents said that they consume Lassi and among the 15% who do not consume Lassi the main reason for non-consumption are taste and health problems. Among the non-consumers 16% respondent do not consume Lassi because of its unavailability. Thus if Lassi is being provided in these areas then these non-consumers of Lassi can become the consumer of Lassi.

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ii. Perception toward Lassi and preferred soft drink

Perception towards Lassi
Positive Negative

15%

85%

More than 3/4th of the population has a positive perception towards Lassi and they considered Lassi as a nutritious and healthier drink. When the respondents were asked about their preferred soft drinks then 44% respondents said they would prefer Lassi that shows the popularity of Lassi among the consumers of Kolkata market. iii. Sources of purchasing Lassi and Dahi

Respondents were asked to express their source of Lassi and from there it was found that around half (45%) of the requirement of Lassi is fulfilled by homemade Lassi and rest of the requirement is fulfilled by Lassi sold in the market. 19 | P a g e

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From the survey, it was observed that the major chunk of respondents that prepare Lassi in home treat it as a traditional drinks and they prepare it by using homemade Dahi. iv. Lassi consumed from Market

In the case of Lassi consumed from market, around 90% respondents said that they purchase it from Loose Lassi retailers. Among the branded segment 64% respondents said they consume Amul Kool Lassi. From the survey it was observed that the people have become habituated to purchase Lassi from Loose Lassi retailers because of their deep penetration in the market

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v.

Purchasing and consuming time of Lassi:

Consuming time of Lassi

2% 7% 30% 61% Morning Noon Evening Night

According to the respondents the most frequent time for purchasing and consuming Lassi were at noon and evening. Only 1 % respondent were purchasing Lassi in morning and consuming it during daytime and those respondents were mainly the customer of Arambagh and Bens. Thus, on the basis of findings it can be concluded that Lassi is more of an impulse product rather than take away product.

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vi.

Frequency of consumption:

250

200

Axis Title

150

100

50

0 Daily respondent number respondent % 15 4

Every second day 20 6

once in a week 82 25

occasionally 218 65

Respondents were interviewed to know about their frequency of consumption of Lassi. The survey reveals that 65 % of the respondents consume Lassi occasionally that is at every fifteen days. The findings suggest that Lassi is not their need based product and they take it mainly as a refreshment product during summers.

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vii. Purchasing decision: Attributes that effects Purchasing decision Of Lassi Order of Priority 1. Taste 2. Freshness 3. Health 4. Hygiene 5. Convenience of Purchase 6. Price 7. Shelf Life 8. Pack Size
(Table 7: Attributes effecting purchasing decision of Lassi)

Attribute Points 1.071 1.101 1.164 1.183 1.633 1.851 1.972 2.131

Here we had tried to identify the attributes which the consumer considered important while purchasing Lassi on a 3 point rating scale i.e. 1 for high importance, 2 for medium and 3 for low importance. The findings revealed that consumer had rated taste, freshness, health and hygiene as most important while purchasing Lassi whereas the rest attributes is of medium importance. This outcome would help Amul to develop more customized Lassi that can be acceptable to the consumers. viii. Satisfaction level: Satisfaction from Lassi generally consumed Order of Priority 1. Taste & Freshness 2. Availability 3. Price 4. Health & Hygiene 5. Packaging 6. Shelf Life Attribute Points 2.901 2.634 2.189 2.185 2.039 2.021

(Table 8: Level of satisfaction with Lassi generally consumed)

Respondents were asked to rate their existing Lassi which would seek to know the level of satisfaction for each attributes so that Amul could take measures while developing and supplying Lassi. Respondents were asked to rate on 4 point scale that was 1 for poor , 2 for 23 | P a g e

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average, 3 for good and 4 for excellent. Respondents rated taste & freshness & price as good and remaining four attributes as average (were not up to their expectation). ix. Awareness and preference:

65% of respondents were aware of Amul Kool Lassi being available in their nearby area and more than 3/4th respondents have expressed their willingness to prefer Amul Lassi in pouch as they can get the same product at lower price. This finding suggests that Amul should launch Amul Lassi in pouch pack. x. Preferred pack size and price:

The ideal pack size suggested by respondents was of 200ml which was supported by more than 50% respondents and the preferred price suggested by respondents was Rs 7.

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xi.

Shift and consumption level:

Of those respondents who have preferred Amul Lassi in pouch, 70 % have given their consent to shift from their existing Lassi to Amul Pouch Lassi provided that quality and taste would be good. 46 % of the respondents that will shift to Amul Lassi have told that this shift will increase their consumption level.

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Findings of General Retailers survey: a) Retailers not keeping Lassi:

This survey was carried out for the retailer to know the reason behind not keeping Lassi and their willingness to keep it. It was identified that half of the retailers were not keeping Lassi due to unavailability of product. It was also found that some of the retailers that were keeping Amul Kool Lassi has stopped keeping due to the lack of supply at regular interval which was a basic problem for Amul as it was suffering from short supply problem. Of the total retailers surveyed that were not keeping Lassi around 70 % were ready to keep pouch Lassi of a good brand. The rest were not ready to keep it due to mainly above mentioned reason.

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b) Retailers Keeping Branded Lassi i) Time of sell and Margin:

Knowledge about the actual time of sale of Lassi can be immensely helpful for Amul in minimizing the supply demand gap and also to minimize the logistics cost associated with distribution. It is clearly evident from the chart that the maximum number of customer purchase Lassi during day time especially in summer as a refreshment drink. When retailers were asked about the margin they make by selling one pack of Lassi, 65% of the respondents told about margin of Rs 0.5-1.0.

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ii) Preferred Pack size and Price

Preferred pack size & price:

The suggested pack size and price preferred by retailers for proposed Amul pouch Lassi was of 200 ml and having a price of Rs7. Thus the suggested pack size and price from both consumer survey and retailer survey are same. This will help Amul in making decision about pack size and price.

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Findings from Loose Lassi Retailers survey: i) Source of Dahi and Milk:

More than 90% Loose Lassi retailer use self prepared curd for preparing Lassi and their major source of Milk for preparing curd is loose Milk procured from milkman. One finding came out from this survey was that the retailers prefer to buy buffalo milk as it have high fat contents (gives more thickness to dahi) irrespective of its high price than the cow milk. ii) iii) iv) Customer arrival time and kind of customer

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From the survey it was found that maximum number of customer arrival happens during the daytime and the maximum sales of Lassi comes from the walk-in customer. Actually it was observed that the loose Lassi retailers were deeply penetrated in and around the commercial places, railway stations, bus stop etc. where maximum movement of people occurs.

LIMITATION & CAVEATS 1. Total coverage of the study was limited to few geographical areas. 2. Sample size of the study was restricted to 600 respondents only. 3. Most of the respondents (especially loose Lassi retailer) hesitate to give information but how ever an attempt was made to collect the data systematically. 4. Time was the one constraint of the survey.

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Insight from Market Survey
i) Availability of Lassi in every part of city is major because in its many potential customer go for other form of soft drinks. Amul can fill this gap by providing its Lassi in every part of Lassi and can capture this market. ii) Absence of organised players in this market will be helpful for Amul as it will have first mover advantage in this segment as the other two players have a very limited presence in Kolkata. iii) Consumers are not satisfied with the quality (Health & Hygiene) of Loose Lassi retailers, Amul can count on it as it has a good brand image and people have faith in the quality of Amul products.

Market Potential
The requirement of Lassi of Kolkata market is 3.8 LLPD. But the potential of market is more than this existing figure. In the survey it is found that around 2.5% do not consume Lassi because of unavailability of Lassi. Around 45% respondents said that their favourite soft drink is Lassi but they do not consume it frequently because it is not easily available at every place. If Lassi is provided properly in every part of the city, the frequency of consumption of these consumers of Lassi will increase. Around 45% respondents even said that if Amul pouch Lassi will come in market then it will increase their consumption of Lassi. Then going by the conservative approach the market potential of Lassi is 5 LLPD.

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Population of Kolkata market % 0f population whose consumption will increase Quantity of Lassi consumed at a time by a consumer Increase in consumption (Assumption) Latent Demand Existing Market Size Total Market Potential
(Table 9: Market potential of Lassi)

15000000 40% 200 ml 200 ml extra in every 10 days = 15000000*40%*0.2/10 3.8 LLPD 5 LLPD

Demand estimation of Amul pouch Lassi
Pouch Lassi is a mass product and its target consumer is very big. To cater to this large base of consumers it should be available at maximum retail points. At the time of launch it should be available at around 4000 retail outlet which will include APO, General retailers keeping Dairy line products of Amul, stores keeping carbonated drinks and Pan Shops. If we consider 1 crate per point on average then the demand would be 40000LPD. This demand will increase later on as the product gets popular and the number of retail points increases. The requirement of Lassi will also increase from 1 crate per point to around 1.7-2 crate per retail points. Thus the demand of Amul pouch Lassi will reach to around 1.5 LLPD.

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SWOT Analysis of Amul Pouch Lassi

Strengths • • • • Strong Brand name of Amul Better quality of Lassi at affordable price in comparison to Loose Lassi retailers Strong distribution network and established infrastructure at each level Experience of selling pouch Lassi in other parts of country

Weaknesses • No weakness

Opportunities • • • Huge potential market (5 LLPD) Lack of competition from organised players Price advantage

Threats • Fear of new entrant in the market

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Launch Plan- Amul Pouch Lassi

AMUL has got a strong brand name and AMUL’s products are known for its quality. Amul has year’s long relationship with customer and enjoys a reliable image which makes it easier for AMUL to launch a new product and capture a fair market share for it in comparison of its other competitors. Thus to launch a product Amul need to have a launching strategy which will add to existing brand image. A proper launch and marketing strategy will help the product to capture a fair market share. On the basis of our gathered information of the Lassi market of Kolkata, it can easily be concluded that there is a reasonable market opportunity for AMUL to launch its pouch Lassi.

Marketing Objectives
 Short term objective : To capture 20% market share of Kolkata Lassi market within 1 months of launch  Long term objective: To capture 60% market share of Kolkata Lassi market

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STP Analysis of Amul pouch Lassi

 

Segment : Mass Product Target consumers a) Lower middle, Middle income group customers b) Institutional Customers like IRCTC, College & Office Canteens

Positioning It will be positioned as a refreshment and hygienic product.

4P of Amul Pouch Lassi
Product strategy
Core Product: Fresh and pasteurized Lassi packed in poly-film pouch form and a straw will be provided with it. Packing a) Pouch size: 250ml (The suggested pack size was 200ml but looking at the infrastructure available it should be 250 ml.) b) Pack size for WD: 250ml*40

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Branding: Amul Masti Lassi

Design on pouch: Same as on Amul Masti Dahi pouch (Amul Masti Dahi in pouch is a hit product in market, thus Lassi in pouch can get easy recognition.)

Placement Strategy
Launch time Lassi is a seasonal product and its sells pick up in March, thus Pouch Lassi of Amul be launched in 2nd week of March 2010. During the entire summer product will be established in the market and achieve maximum sales. Launch target a) 35000 LPD within 10 days of product launch b) 75000 LPD within 30 days of product launch Channel partners a) Wholesale Distributors (WD) b) Retailers/ APO • • • Proposed Number of retail outlets : 4000 Proposed Number of WD : 14 Area coverage plan: 300 retail outlets/WD

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• The number of retail outlets will increase, as the product gets familiar and accepted by people of Kolkata. • Minimum 1 crate of Lassi placed at each retail point of Amul pouch Lassi.

Role of Channel Partner 1. WD (wholesale Distributors) a. Important link between Company and Retailer b. Primary sales take place at this level Infrastructure required a. Deep refrigerator to store goods b. Delivery Vehicle 2. Retailers a. Purchase goods from WD b. Sell goods to end consumer Infrastructure required Refrigerator Type of retailers a. General retailers/ Pan shops b. APO c. Institutional players

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Distribution Strategy • a) Distribution Channel Amul Pouch Lassi is different from the existing fresh line and dairy line products of Amul. Shelf life of existing fresh line products is 18-24 hrs whereas shelf life of Dairy line products is more than 10 days. The shelf life of proposed pouch Lassi will be 2-3 days. Thus, it needs a separate distribution channel other than the existing Fresh line and Dairy line distribution channel. b) New WD should be selected and they can have similar kind of product in their kitty like Pouch Lassi, Pouch Butter milk, Misti Dahi and Plain Dahi in cup as the shelf life of all these products is around 2-3 days. c) Lassi will be supplied in crate through insulated medium size vehicles (Tata Ace) from plant to distributors. d) From WD Pouch Lassi should be supplied to retail points through small insulated vehicles during 10-1 am.

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Distribution diagram

Distribution Cost

Distribution Cost Kolkata Tata Ace Beyond 100 Km 5 per Km 500

Up to 100 Km Rate (Rs) Actual Cost (Rs) Per Vehicle Transportation Cost (Rs) Vehicle Capacity Transportation Cost per pouch (Rs)
(Table 10: Distribution Cost)

900 900 1400 1000 Lt (4000 pouches) 0.35

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Distribution Scheduling Cycle

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Pricing Strategy The following could be the price structure of Amul pouch Lassi:-

Pack Quantity Size

WD Price

WD Margin 20

% Retailer Margin Price 9 250

Retailer Margin 30

% Margin 12

MRP 280

MRP/Pack 7

250 250 ml *40 230 ml Pouch

(Table 11: Pricing profile of Amul pouch Lassi)

Promotion Strategy o o Free sampling: - Pre-testing of pouch Lassi for 3 days. Trade scheme

For retailers: 1pouch of Lassi free with every purchase of 20 pouch of Lassi for first 2 weeks. o Media Activities

a) Print Media Advertisement: Ad in 1 major vernacular and 1 national English Newspaper for the first week of launch period b) FM Radio: Airing the ad or jingle for the first 2 weeks in local FM like Radio Mirchi or Big FM for at least 8 times a day o POP support

a) 500 banners across the roads of Kolkata at the time of launching the product b) c) d) 2000 stickers at retail points 750 Stand board 2000 leaflet for institutions like IRCTC, Hotels and Canteens

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o Outdoor activity 100 kiosks at public places like parks, religious places, apartments, and stadiums during match time for first two weeks.

Budget required for Promotional Purpose Piece Rate/piece (Rs) Banners Stickers stand board Leaflets Kiosk Free sampling (pouch) Trade scheme (4000 crate) Advertisement Total
(Table 12: Budget required for promotional purpose)

Days

Amount (Rs) 125000 4000 300000 2000

500 2000 1000 2000 100 10000 2000

250 2 300 1 200 5.75 5.75 14 4 14

280000 223000 161000

250000 1204500

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Post Launch Plan for Amul Pouch Lassi
• WD and retailers addition: Amul pouch Lassi is a mass product and the size of target consumers is very big i.e. 1.2 cr. It is an impulse product thus this product can produce desired result only if it is available at maximum retail points so that it is easy for consumers to purchase and consume it. • Post- launch survey

a) ATR assessment of Amul Pouch Lassi. b) • a) Customer and retailer satisfaction with quality and service of new product. Future plans Work to improve customer and retailer satisfaction and remove complaints from the product. b) Study the finding of survey and act to improve the value of product.

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Annexure 1
Questionnaire for consumers: (Lassi in pouch) Dear Respondent, As part of marketing research we are conducting a survey related to Lassi. For this purpose we would like you to spare a few minutes and share your views with us. Thank You. Name: ………………………………………… Address: ……………………………………. Gender: a) Male b) Female b) Service c) Housewife d) Student e) Others Contact No. ………………………………..

Occupation: a) Business Income:

a) Less than Rs15000 c) Rs30000-50000

b) Rs15000-30000 d) More than Rs50000

Family size …………………………………………… ___________________________________________________________________________ __ 1. Do you consume Lassi as a drink? a) Yes d) No (If yes then go to question no 3 else question no 2) 2. Why don’t you consume Lassi? a) Unavailability b) Taste c) Health problems d) other (specify……………………..) 3. How do you perceive Lassi as compared to other soft drinks (carbonated, fruit juice)? …………………………………………………………………………………………………………………… … 4. Provided an option which soft drinks will you like to purchase and consume from a shop which keeps all kinds of soft drink? a) Carbonated drinks b) Fruit based drinks b) Flavoured milk d) Lassi 5. Do you prepare Lassi in home or purchase from outside? a) Only in home c) Mostly from Market 44 | P a g e

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b) Purchase from market d) Mostly at Home

6. When prepared in home from where do you get Tak (plain) Dahi? a) Homemade b) Loose c) Packed d) Any

7. When purchase from market what kind of Lassi do you usually purchase? a) Pouch b) Loose c) Tetra Pack d) Any 8. If packed which brand of Lassi do you normally buy? a) Amul b) Arambagh c) Bens d) Other (Specify)………… 9. When do you generally purchase Lassi in a day? a) Morning b) Noon c) Evening d) Night 10. When do you generally consume Lassi in a day? a) Morning b) Noon c) Evening d) Night 11. In your family who prefers to consume Lassi? a) Children b) Youngster c) Middle aged 12. How often do you consume Lassi? a) Daily b) Every second day

d) Old people

c) Once in a week

d) Occasionally

13. Which of the following attributes do you consider important while consuming Lassi? High Importance Price Taste Freshness Shelf Life Pack Size Convenience of purchase Health Hygiene Medium Importance Low Importance

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14. How do you rate your existing Lassi? Attribute Poor Taste & freshness Price Packaging Health& hygiene Availability Shelf life

Average

Good

Excellent

15. In Which Season do you consume Lassi? Yes a) b) c) d) e) Summer Winter Spring Rainy All Season ……….. ……….. ……….. ……….. ………... No ………… ………… ………… ………… ………...

16. Are you aware of Amul kool Lassi being available in your nearby outlet? a) Yes b) No c) Don’t know 17. Will you prefer Amul Lassi in pouch? a) Yes b) No 18. What should be? Pack size of Amul Lassi in pouch a) 150ml b) 200ml c) 250ml Price (200ml) a) Rs5 b) Rs6 c) Rs7

d) 500ml d) Rs8

19. Provided an option of Amul Lassi in pouch at cheaper price will you shift from your current source of Lassi to Amul Lassi? a) Yes b) No c) Don’t know 20. If yes then will it increase your consumption and by what quantity? a) Yes b) No c) Don’t know

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Annexure 2
Questionnaire for Loose Lassi Retailers: (Lassi in pouch) Dear Respondent, As part of marketing research we are conducting a survey related to Lassi. For this purpose we would like you to spare a few minutes and share your views with us. Thank you. Name of the shop: …………………………………………………………… Area: …………………………………………………………………………………….. ___________________________________________________________________________ __ 1) From how many years are you in this business? ……………………………………………………………………………… 2) In which season do you sell Lassi? a) Summer b) Rainy c) Winter d) Spring e) All season 3) How much quantity of Lassi do you sell per day? a) Less than 20 Lit b) Between 20 to 30 Lit c) More than 30 Lit 4) What is the shelf life of Lassi prepared by you? a) 5 hrs b) 8 hrs c) 1 day 5) How do you get curd for making Lassi? a) Self prepared curd c) Purchase Branded curd 6) In case of self prepared curd from where do you get milk? b) Purchase loose Curd

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a) Amul Taza d) Other b) Mother Dairy DTM c) From Milkman (buffalo or cow milk)

7) Do you buy high fat /SNF milk while preparing good quality of curd? …………………………………………. 7) What is the cost of milk/lit? ……………………………………………………………………… 8) In case of purchasing branded curd which company’s curd do you use? ………………………………………………………………………………………………………………………… …… 9) Quantity of Lassi/glass: …………. Rate/glass: ………………….

10) How many glasses of Lassi do you prepare from : 1kg of curd: ………….. One slab of Ice: …………………… 11) At what time maximum customers come to your shop? a) 9-12 am b) 12-4 pm c) 4-8 pm 12) What kind of customers generally come to your shop? a) Permanent and regular b) Permanent but irregular 13) From what kind of customers do you get maximum sales? a) Permanent b) Running 14) What portion of your income is generated through Lassi business? ………………………………………………………………………………………………………………………. 1kg of sugar: …………………

c) Running

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Annexure 3
Questionnaire for Retailers: (Lassi in pouch) Dear Respondent, As part of marketing research we are conducting a survey related to Lassi. For this purpose we would like you to spare a few minutes and share your views with us. Thank you. Name of the shop: ………………………………………………………………… Kind of Shop: a) APO b) General Retailer

Area: …………………………………………………………………………………….. ___________________________________________________________________________ __ 1) Do you keep Lassi? a) Yes b) No (If yes then go to question no 5 else question no.2) 2) Why don’t you keep Lassi? a) Lack of demand b) Storage problem

c) Product unavailability d) Lack of resource

3) Do you keep other soft drinks (carbonated, fruit juice)? a) Yes b) No 4) If yes, will you like to keep Pouch Lassi of a good brand? a) Yes b) No 5) Which brand of Lassi do you keep? a) Amul b) Aram Bagh c) Meghna Dairy

d) Bens

e)Other

6) How much quantity of Lassi do you sell per day? b) Less than 20 pak b) Between 20 to 30 Pak c) More than 30 Pak 7) At what time maximum customers come to your shop? b) 9-12 am b) 12-4 pm c) 4-8 pm 8) What kind of customers generally come to your shop? b) Permanent and regular b) Permanent but irregular 9) From what kind of customers do you get maximum sales? b) Permanent b) Walk in

c) Walk in

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10) What is the margin per pack do you make from Lassi? a) Rs 0.5-1 b) Rs 1-1.5 c) Rs 1.5-2.0 d) Rs2.0-3.0 11) At what time Lassi is being supplied to you? ……………………………………………………………………………………………………………. 12) Does Amul Kool Lassi match to your expectations? (For retailers dealing with Amul Kool Lassi) a) Yes b) No 13) If No what is the problem a) Quality problem b) Price problem c) Supply problem d) Packaging e) Margin problem

………… ………… ………… ………… ………….

14) Customer purchases Amul cool Lassi because of Yes a) Price …………. b) Quality …………. c) Hygiene …………. d) Packing …………. e) Others …………..

NO …………. …………. …………. ………… …………

15) Do the customers ask for Pouch pack of Amul Lassi and if yes what is the frequency of that? ………………………………………………………………………………………………………………………… …… 16) What should be the Pack size of Amul Lassi in pouch? a) 150ml b) 200ml c) 250ml d) 500ml Price (200ml) a) Rs5 b) Rs6 c) Rs7 d) Rs8 17) At what time will you like pouch Lassi to be supplied to your counter? ………………………………………………………………………………………………………………………… …

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References:

1. http://www.amul.com 2. http://www.indiadairy.com 3. http://www.nddb.org 4. http://indiastat.com 5. http://indairyasso.org 6. http://chillibreeze.com

7. http://www.mapsofindia.com

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