Executive summary

Ice cream market is expanding rapidly, the reason behind this is entrance of manyplayers in market in turn result into increase competition. Because in increase incompetition only the fittest player have survived. The company, which sets its goals and objectives according to market condition and prepares strategies so as to achieve these goals, will survive in the long run. The above has given us a slight preview of competition in the market.I have done this project to study how major player (Amul) is surviving in the market and is giving tough competition to other players. This project is divided into following parts : 1) Deals with what is co-operative organisation. 2) Informatiouln on MNC’ in India. 3) Over view on:Marketing Stratergy of amul ice cream. 4) Market share. 5) Major players. 6) Lastly primary data has been collected through small sample size done on consumer behaviour with respect to ice cream industry, to show which company will survive in near future.

In this project I have tried to handle various conceptual, theoretical, and practical aspect related to various types of strategies am sure this project will provide a good study material for any management student.

INTRODUCTION
OBJECTIVE

Objective of the Study:

1. To understand the concept of marketing strategy of amul. 2. Analyze how marketing strategyl of amul is effective is today’s market. 3. Study the various aspects related to amul management.
To position the brand in the mind of customer. Gathering and disseminating relevant information to customers.

4. Understanding and fulfilling the expressed and latest needs of customers buying behavior

Introduction of ‘AMUL’

AMUL means "priceless" in Sanskrit. A quality control expert in Anand suggested the brand name “Amul,” from the Sanskrit “Amoolya,” Variants, all meaning "priceless", are found in several Indian languages. 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 (turnover in 18.8billiond in 1997-98). Today Amul is a symbol of many things. Of highquality products sold at reasonable prices. Of the genesis of a vast cooperative network. Of the triumph of indigenous technology. Of the marketing savvy of a farmers' organisation. And of a proven model for dairy development.
AMUL has diversified into 40 product categories. Their distribution comprises of 2400 wholesale distributors with 5 lakh retail outlets, 50 sales offices with an annual turnover of Rs. 22.6 billion in sales. „Amul‟ has to compete with almost 6 to 8 transnationals in the marketplace. It s main competitors are: CADBURY - CHOCALETS/ CONFECTIONERS

HINDUSTAN LEVER - ICE CREAM NESTLE - BUTTER, INFANT MILK SUSTITUES, CHOCALETS, CURD, CHEESE ETC BRITANIA -BUTTER, PANEER, LIQUID FRESH MILK, DAIRY WHITENERS.

Some Of The Well Known Amul Products: BUTTER FRESH MILK CHEESE SHIKAND MILK FOOD HEALTH DRINK ICE-CREAM CHOCOLATES SOUPS PANEER DAHI PIZZA GHEE MITHAEE .

It has launched milk-based ice cream under its flagship brand Amul in January 1997. This has helped in attaining a good volume grown in short time span. which manufactures ice cream on behalf of GCMMF. Milk Procurement: Advantages in procurement of milk the key raw-material in ice-cream. Besides procurement from other regional co-operatives is also easier for GCMMF as compared top other players. Milk supply in India is largely controlled by the regional milk co-operatives. Brand awareness is high: The Amul brand has a strong equity in milk products and GCMMF has engaged to beverages on this brand equity and attained over 20% market share in Mumbai within a year of its launch. GCMMF itself is the western region. which is marketed under the Amul brand name. Infact. Amul has a tie-up with the Karnataka milk marketing federation. . Amul has a distinct edge over existing new entrants on several counts.Amul Ice Cream: Amul has been the latest entrant in the national ice cream market. Comparative Pricing: GCMMF can procure milk at lower prices thus Amul ice cream has been launched at a substantial price discount to main competitor Kawality Walls & Vadilal.

Presently Amul ice cream has second higher share in the market (35%) and has garnered major share in its existing markets in a short time span of 3 years. The company has a total of seven ice-cream manufacturing units. Amul is planning to acquire basically ice-cream facility of Vadilal industries limited. mother dairy (Bangalore) for the southern market and Patna dairy project which commenced production from April‟ 98 for the eastern market.Established distribution network: GCMMF already has a wide retail distribution network. For the regional markets GCMMF was collaborated with various regional dairy co-operative like mother dairy (Delhi) for the northern market. Earlier in 1997 the company has acquired Tarapur based production facility.5 lakh lpd. three are in Gujarat. The acquisition would help Amul to increase its presence in northern and eastern markets of the country. Amul ice-cream brand franchise was extended with launch in eight states and two union territories. GCMMF‟s main ice-cream manufacturing facility is located at Ghandinagar which is Asia‟s largest and most modern integrated icecream manufacturing plant for users world renowned refrigeration units for an efficient cold chain. one each in Delhi. This would be second such acquisition of Vadilal‟s ice-cream facility by Amul. Patna & Bangalore and another one in Tarapur. With the aim of increasing presence of its ice-cream across the country Amul is going for contract manufacturing arrangement with milk co-operatives of various regions is also acquiring some of the existing ice-cream manufacturing units. Hence distribution reach the single most important factor in creating a critical mass is already available. which markets its other milk products such as cheese and butter. The company is also said to be in talks with co-operative federation of UP and MP for contract manufacturing its ice cream in Lucknow and Ujjain daries. The current planned acquisition would add 15k litres per day capacity to maul are consolidated of 1. 5bn turnover from ice-cream business by 2003. . it also has a high brand recall. The company has set a target of Rs.

Kesar. Simply Delicious Range: Vanilla. Black Currant. Fresh Litchi. Chocolate. Pineapple. Shahi Pista Kulfi. Cappuchino. Strawberry. Strawberry. Butterscotch. Fresh Strawberry.BlackCurrant. Badshahi Badarn Kulfi. Roasted Almond. Tutii fruti. SundaeRange: Mango. Utsav Range: Anjir. Nut-o-Mania Range: Kaju Drakshi. Choc chips. Mawa Malai Kulfi. Raspberry Dolly. Roasted Almond. Kesar Pista. Green Pista- . Nature's Treat: Alpllanso Mango.Chocolate. Shahi Badam Kulfi. Mango Dolly.List Of Amul Icecreams: Royal Treat Range: Rajbhog. Millennium Icecream: Cheese with Almonds. Dates with Honey. Carnival. Anjir. Milk Bars: Chocobar. Shista Pista Kulfi.

Kulfi Cool Candies: Orange. Chocolate. Fundoo Range: exclusively for kids. Frostik: 3 layer chocolate Bar. Tricone Cones: Butterscotch. Banana. . Mango. SlimScoop Fat Free: Vanilla. Pineapple. Mango.

These whosaler has near about 7. which are spread across the country. these agents are not same as the retailer and wholesaler because these agents don‟t get fixed margin as in the case of retailer and wholesaler. Such as salaries. Here retailer get approximately 19 % to 21% margin. one each in Delhi.Distribution Channel Of Amul Ice-Cream: Amul has total seven ice-cream production units spread over the entire country. . After the ice-cream are ready they are being despatch to the C & F agents. three are in Gujarat. In these factories different Amul ice-creams products are being produced to fulfil the consumer demand. Then these ice cream comes to the retail out-let. And finally the consumers get the taste of ice cream as a where they want. and other expenses over and above they charge some extra amount (not fixed) for rendering their services. From here the ice cream are being supplied to the wholesaler.0 % margin. Patna and Bangalore. They charge the company for all the kinds of the expense.8% to 8. which they have incurred for the distribution of the ice cream.

Distribution Chart Of ‘Amul’ Ice-Cream Production Unit Clearing & forwarding Agent. (C & F) Wholesaler/Distributo r Retailer Consumer .

Cadbury had entered the market in 1992 with its Dollops brand. cups.Market Size And Growth: Ice creams are available in various forms such as cone. The growth rate could have been even higher but for poor infrastructure. ice cream manufacture was reserved for small-scale sector. Till 1997. Besides. Erratic supply and shortage of power in most parts of the country have been the major factors limiting growth of a cold chain. whereas cups and other novelties contribute the rest. Frozen desserts market in India is very small and refers to vegetable fat (instead of milk fat) based ice creams. bar (candy). but was unsuccessful in building up a significant franchise and withdrew two years later. rest all is with the unorganised sector. around 30-32% is in the hands of organized sector valued at Rs4. Some of the players built up their market through exclusive . Excise on ice cream was increased from 13% to 16% in the FY2000 budget. party pack etc. Candy sticks account for about 25-30% of volumes. The leading players were unable to invest adequately to develop an infrastructure of cold chain for storage and distribution. high excise duty I sales tax etc. For last 1-2 years the ice cream market in India is growing at 15-20% per annum and presently in 1999-00 it is estimated at worth of Rs15-16bn. The ice-cream market growth during the late '80s and in the early '90s was very low at around 2-3% pa but slowly the market has started picking up especially after de-reservation of the sector in 1997. there was a dearth of good quality products in the market and also lack of adequate infrastructure to distribute the same. Market growth historically was stunted by Government policies. local players were able to build up a strong franchise in respective local areas. a wider range of frozen desserts is also made in-house and served in 5 star hotels. In the absence of any competition from MNC‟s. As a result. This growth rate is expected to continue for another next 23 years because of lower base.9bn. Of the total size of Rs 15-16bn.

Amul is the second largest player at the national level. Hindustan Lever (HLL) entered the market through frozen dessert route. At the beginning of first phase of liberalization. Amul ice cream. Frozen desserts (which use edible oil fat instead of milk fat) were technically not reserved for small scale. In 1997. But in most cases parlour network also could not extend beyond local limits. It has introduced the Max range of ice creams targeted at children.parlours. Market Shares: Hindustan Lever has a market share of around 50%. based on the recommendations of the Abid Hussain Committee report. intensifying the competition. Removal of licensing restrictions and investment by new players in capacity and market expansion is expected to lead to rapid demand growth in the sector. on grounds of hygiene and technology. manufactured by the largest milk-producing co-operative was introduced in Mumbai market in 1996. the sector was dereserved from small scale. Vadilal is another player in the national market with 8-9% of the market share but that too is shrinking. represented mainly by Kwality Walls brand. with an estimated market share of 35% and is rapidly gaining market share. .

Dairy Fresh Amul. which have carved a niche for themselves in their respective regional markets.. Dairy classic. roadside stalls on highways. hotels. groceries. Vadilal International GCMMF/Other milk Maharashtra Dairy Products Vadilal. the significant brands are Kwality Walls. which accounts for 30-35% of sales and about 2000 units in the unorganised market. These players sell through their exclusive parlours. Mother Dairy and Baskin Robbins. In the organized segment. .. restaurants. Vadilal. Mother Dairy Baskin Robbins Other Players: Besides the main national brands there are other premium brands. The major national players sell through franchise parlours as well as through retail stores. Region East West Brand Tulika.Major Players: The Indian Ice cream market is dominated by a large number of small local manufacturers and regional players. There are an estimated 150 manufacturers in the organized segment. Amul. Rollicks (Induss Ice creams) Nature World. Pastonji. These players have mostly concentrated on the large metro cities. Naturals (Mumbai only). etc. Major National Players Hindustan Lever Brands Kwality Magnum Walls. Cornetto.

Ice-cream Express. promoted by Hatsun Foods Pvt. Together. Mother Dairy the Delhi version of the Amul brand also has a strong presence in the Northern region. Joy. etc which are priced at a premium over the Kwality Walls and Amul brands Arun. . Arun sells its ice creams through exclusive parlours. is a dominant brand in the South. Nandini (Karnataka only) Mumbai has several players such as Nature World. Dinshaw's. Ltd. Joy. Nirula's is a strong local player in Delhi. another marginal national player has a stronger presence in the South. Havmor (Gujarat only). Joy and! run have a sizable presence in the Southern markets of Chennai and Tamil Nadu. which are popular in the southern cities. Naturals. Yum of Dairy Den (Gujarat Only) North Mother Dairy.Dinshaw‟s (Maharashtra only). Nirula's South Arun (Hatsun Foods).

It also started opening new parlors in untapped market.arun. Haryana and Kerala. vadilal. Rajasthan. The top brands like kwallity. markets. Through exclusive parlors. Dollops tied up with music giant HMV and came out . It offered attractive discounts on party and family packs. It tied up with Citibank and launched a gift scheme. Kwality walls.MARKET STRATEGIES ADOPTED BY DIFFERENT ICE-CREAM MAKERS . It also used the fund-food idea and targeted the products at middle and upper class audiences through high visibility ad campaigns. Obviously.and various hotelchains & local brands are suddenly in the thick of fight. Gujrat. amul. Kwality tried to secure yet another edge. & Cadbury in particular are locked in afierce bottle. new flavour & new promotional campaigns . amul. c) CADBURY’S DOLLOPS RELIES ON PROMOTION:It started pushing its products through aggressive advertising. went in for process/product innovation. All the players. In selected cities it offered lower price suffering loses. especially in the states like Punjab. lipton & the national dairy development-board have entered field recently. brooke bond. the aim was to win brand loyalty from among a captive audience of 3 lakh Citibank card holders. It concentrated on selling its ice-cream to the retail trade explaining to them quality unmatched product strength. Vadilal put market research to good use. Summer jobs were offered at Dollops-Lopstops parlors to teenage children of citi card holders. It spent nearly 1 crore rupees just for redesigning the Vadilal logo. Vadilal researched the product profiles. Kwality expanded its network of Yankee Doodles parlors. Vadilal. consumers and competition. milk food. It has introduced the soft freeze process which enables the preservation of fruits inside the ice-cream fresh and juicy. the market-leader with a 50% share among national brands. Cadburys. It also went for joint promotion and strategic alliances. and a number of new players including Britannia industries. churning up new products. Citi card holders would win points on dollops 4 get gifts on reaching a specified score. b) VADILAL CONCENTRATES ON ‘SELLING TO HOUSEHOLD’ Vadilal suggests new recipes to households and cleverly pushed its family and party packs among the home-consumer segment. So they adopted different market strategies as follows:- a) KWALLITY OPTS FOR PRODUCT INNOVATION: Kwality. The these strong players intensified the competition further. just to grab market.joy. An extension of a 25% discount on purchaces for birthday parties was another scheme.

It organized „ice cream meals‟ in which one could eat as much ice cream as one really could eat within 25 minutes. Arun too want in for the dial delivery service. Using the parlors.15. intensified its distribution and promotion. a leading regional brand. Arun also made a number of innovative sales promotion efforts to stay ahead. heroes. Arabian Date. The Indian Hotels co. Dollops launched its new range. the hotel-chains form a significant segment. (the Taj Group) has been one significant player in this segment. It had already become the largest selling ice cream in Tamil Nadu and started gaining ground in Kerala and Karnataka. Arun put up a large chain of ice cream parlors in all these states. paying just Rs. They added to the competition with their offei of the „pure gold‟ ice cream. compared to the earlier range. Among the other players. Dollops also promoted its new „Dial-a-lop‟ scheme. Arun made the nonmetro politician towns like Madurai and Tiruchi important ice cream markets. Hawaiian Sundae keeping the prices 20% lower. Arun promoted the brand through distribution of leaflets and door-to-door campaigns. . Dollops would deliver the ice-cream at no extra cost.with a special promotion aimed at the new MTV generations of consumers. d) REGIONAL BRANDS STRIVE HARD TOO Arun Ice cream. In this scheme.

throughout the 1950s & the 1960s official policies in dairy processing & marketing militated against the goals of official policy in the animal husbandary. By the end of the 1960s however it was clear that the india of city milk scheme was unworkable as they found it difficult to complete the dudhias who delever the fresh milk at the door step of the customers.A peparall. eg: Bombay had its milk colony at agarey. Most of this co-operatives were organization of milk merchants. Co-operatives in the India dairy sector predated the rise of Amul by over two decades. As a result separate department of milk commissionerater were aerated with the state government to hasten the place of dairy of dairy development. It was at this stage that R. the Milk Marketing Advisors to the government of Indian c ities contain high bacterial count than sewerage water in London. . Tamil Nadu & Gujarat. Dairy co-operatives also came up in erode district of Tamil Nadu. The milk sub-committee of the policy committee an agriculture (1950) recommended for the monopolization of milk supply & distribution through milk control boards. in surat district of Gujarat& maharashtra. The earliest dairy co-operative was found around 1930s in Allahabad with milk & ghee traders as its members. But it had negligible impact on overall dairy practice.COMPETITION FROM LOCAL The history of dairy co-operatives is not very old in India. This all gave birth to dairy co-operatives in India. Thus . Since late 1920s government milk colonies were established by municiple co-orporation in large cities which promoted huge dairy farms in their peripheries. In 1930s&40s isolated efforts for organizing co-operatives were formed in some parts of the country such as Allahabad.

Firms which had been established in no priority areas prior to the implementation of this policy have. If a multinational is operating in an import substitution industry. been very dismal. This approach toward MNC‟s is into right approach to estimate the net impact of multinationals on the foreign exchange reserves by taking the net foreign exchange outflow or inflow. An often heard criticism against the is that multinationals drain the foreign exchange resources of the developing countries. Multinationals in several developing countries make sustention contribution to the exports earnings. ignoring the national priorities. been allowed to continue in those sectors. . Again it is wrong to assume that the success of multinationals or Foreign brands is guaranteed in a developing countries and that the domestic firms. in Indian the government policy confined the foreign investment to the priority areas like technology and heavy investment sectors of national importance and export sectors. the net effect on the foreign exchange reserves could be favourable even if there is a net foreign exchange outflow by the company. However.COMPETITIONS OF MNC’S IN INDIA In India comparatively very little foreign investment has taken place due to several reasons such as dominant role assigned to the public sector in the industrial policy and the restrictive government policy. This is attributed mostly to the government policy. The performance in the case of India has. however. however. However the new policy is expected to give a considerable impetus for MNC‟s investment in India. particularly the small ones. “We have consistently followed policies in India that discriminate against export production and in favour of production for the local market. will not be able to survive the competition from them. A common criticism against the MNC‟s is that they tend to invest in the low priority and high profits sectors in the developing countries.

Cornetto. 200ml etc. 1) On The Basis Of Flavours: The market today has a number of flavours like vanilla. impulse and sticks. chocolate. which together account for more than 70% of the market followed by butterscotch and other fruit flavours. dry fruit flavours. This segment also consists of balls. These packs are available in different size such as 500ml. strawberry. . c) Cones: Eg. b) Cups: cups are small packs of ice cream normally round in shape at bottom and flat on the top. 300ml. e) Sticks and candies: Eg.feast. on the basis of stock keeping units/packaging and on the basis of consumer segments. butterscotch a number of fruit flavours. 2) On The Basis Of The Stock Keeping Units / Packing: Taking different types of packaging in to consideration does this type of segmentation. mango. traditional flavours like Kesar. The market is totally dominated by Vanilla.Pista. namely on the basis of flavours. chocobar. In it the ice-cream market is divided into packages such as: a) Bulk: bulk can be said as huge packs of ice-cream which are normally supplied to ice-cream out-lets or retailers they are mainly in the pack of 4-5 litres.Market Segmentation Of Ice-Cream Indian Ice Cream market can be segmented in three different ways. d) Family pack and party pack: Mainly for families and parties. tri-cone. and frostik. Strawberry and chocolate. Kaju.Draksh etc.

it is divided into following categories. 2) Retail (Home take-aways).3) On The Basis Of Consumer: Present market is known as consumer market hence case of ice-cream products. retail and impulse combinedly take the major chunk with 70% of the market. In the While institutional or catering accounts for around 15%. Feast aims at teenagers. Venetta etc targeted at the top end of the market. The company has also launched its premium brands like Magnum. 3) Institutional/catering. Max is for children. . 1) Impulse segment (Pull cart). HLL today has identified four key segments in the market and has specific brands for each of them. Recently the company launched softies for the lower end of the market. 4) Parlours before segmenting any kind of the product this aspect should be considered. and Cornetto targets young adults.

7) Kwality walls. 3) 35% market share in the national ice cream market 4) Presence of a well-established distribution and delivery network for dairy products. . Whereas Amul has presence in almost all towns because towns because of it already exist butter lines. 8) Customer is most comfortable buying ice cream in the value for money segment and Amul is well present in this segment. 2) India‟s best-known local brand across all categories. Amul‟s main rival. have been able to extend its cold chain in only about 150 out of 300 class I towns. 6) Research has shown that consumers in India prefer dairy ice cream rather than frozen desserts and Amul has a wide portfolio in the dairy ice cream segment. 9) Amul has built up a formidable image as a brand in which generations of consumers have placed their trust.Swot Analysis Of Amul Ice Cream Strengths: 1) Biggest sourcing base for milk and milk products in India. 5) Penetration pricing strategy-Amul is the price warrior in the ice cream market and currently has a very wide range to offer for all price points. This can be used to its advantage while introduction of ice creams.

5) Distributors are dissatisfied with the margin and customer support services currently being provided in the market. 2) There is ample scope in the low priced segment as also in other categories where consumers presently are dissatisfied with the quantity being provided vis a vis the price being charged. Amul has no replacement policy. Walls are present in 456 outlets out of a total of 610 and Amul would have a tough time getting a foothold in the retail market. Opportunities: 1) Delhi market is not restricted to monopoly outlets. as the results of our survey show. 2) A major entry barrier Amul faces is Kwality Walls heavy presence in the retail market in Delhi. Majority of respondents has not heard of Amul ice cream. is popular. This is in Amul‟s favor. This is especially true of those retailers who already stock one or other ice cream brands. Amul should direct its resources towards cashing in on Walls market development. 4) Kwality Walls is right now in an investment mode and is concentrating on expanding the market as also its reach. They would be willing to make further investments only for that brand which offers replacement facilities. There are a significant number of retailers who are currently stocking more than two brands. 3) Amul has the opportunity to capture the more evolved young adults and children Who are open to new products provided they meet their expectations. Kwality Walls on the other hand is into heavy advertising and consequently. This can be used to Amul‟s . 4) Retailers now demand freezers without having to pay any deposit.Weakness: 1) Advertising is low profile. as earlier it had to overcome this problem in the Mumbai market. retailers list a credible Replacement policy as a factor very high on their wish list. 3) As per our survey.

as the brand does not matter. As of now. 2) The customers have very well received Kwality Walls product differentiation strategy and mother dairy is also pushing up its advertising pitch. which Amul can exploit as the supply. is unorganised as yet and the owners are only concerned with the profit margin. . 3) We have identified banquet halls as a segment of the market. Mother dairy is extremely apathetic to retailers and there is a gap to be exploite Threats: 1) Amul might face threat from the local manufacturers in the low and of the market.advantage. local manufacturers supply to these banquet halls.

political leaders such as Sardar Vallabhbhai Patel. Morarji Desai & Tribhuvandar Patel encouraged the farmer to form a co-operative. They called an exprt from England. A private firm has given monopoly of milk procurement rights in these village & then supply milk to the government for distribution in Bombay. Angered by this state of affaires. preserved it & sold it into the market were the price was high. an area about 400 km north of Bombay.THE SUCCESS STORY OF AMUL Men & women in Bombay were suffering for persistent tummy problems. the farmers called a strike & refuse to supply milk. collect milk in the district & supply to the government. It was therefore decided to bring from some villages Khaira district.milk producers union better known by its trade name of ‘AMUL’. This firm appointed contractors to collect the milk and as they constituted monopoly. Since milk is highly perishable commodity & since all milk could not be sold in a fluid form. Amul collect milk from all the villages in Kaira District. The co-operative began with an initial collection of just 250 litres of milk per day. they convert milk in milk powder & other products. thus providing higher price to milk producers. . After studing the subject. the experts pronounce that gutter water of London was bacteriologically superior to the milk of Bombay.This was the beginning of Kaira District Co-operative.

8 per cent in Hyderabad.75 per cent and Mother Dairy 8. The raw material strength also determined its punch line 'Real Milk Real Ice Cream. The share ranges from 33. the other consolidated at an equally rapid pace. While one went in for geographical expansion at break-neck speed. Amul claimed a market share of 33. "In a short span of five years Amul has become the largest ice-cream brand in the country. the other streamline offerings.7 per cent in Bangalore to 58.' .000 crore ice cream market in India. Clearly.Articles Amul. HLL's decision to focus on six cities follows from its estimates that they account for 60 per cent of all ice cream sales. It was the head-on collision of a home-grown cooperative with a multinational.42 per cent (Amul 24. And each claims to have emerged the leader. the contrasts in the battle for supremacy in the ice-cream market could not have been more stark." says Mr Sodhi. Ice-cream brands Amul from the Gujarat Cooperative Milk Marketing Federation and Kwality Walls from Hindustan Lever definitely went their own separate ways this summer. We have already touched the sales figure of Kwality Walls.22 per cent.66 per cent) and put the Kwality Walls share at 28. Amul has decided to grow the Rs 2. general manager (marketing). has spread out in 400 markets and claims to be ahead of Kwality Walls in 395 of these. HLL fight for top spot in ice-cream market This summer. While one tailor-made products for every conceivable sub-segment. "We have prepared a marketing strategy based on our inherent strength of low price raw material (milk) availability. Says R S Sodhi. Mumbai remains a disputed territory with both companies claiming top slot. Amul. in contrast." HLL in turn quotes ORG (value) figures for April 2002 to claim leadership in all six markets it is focusing on.

which together account for over 60 per cent of India‟s ice cream sales. Amul will launch a mega bite almond cone (the largest volume cone in the country). however. Amul claims that. HLL says the Rs 150-crore turnover claimed by Amul for 2002 is in terms of end consumer prices and HLL‟s turnover by the same method would be around Rs 210 crore. it says. Amul expects to clock sales of 34 million litres during the current year by offering value for money.V/S HLL. contests the figures. is only16. Amul‟s market share. a „Bouncer‟ ice cream with nuts and essential proteins. HLL‟s audited results say that its net realisation from the ice cream division came down from Rs 156. Last year. vitamins and minerals for the growing children. in comparison. It quotes an audit by A C Nielsen which says that HLL has a market share of 38. Hyderabad. Kolkata and Mumbai. an orange ice cream „Santra Mantra‟. its net realisation went up from Rs 120 crore by selling 18 million litres in 2001 to Rs 150 crore with the sale of 24.5 million litres in 2002.3 per cent by value for the full year 2002 in Bangalore.39 crore by selling 24 million litres in 2001 to 107crore from 16.7 per cent. HLL. Delhi. . HLL‟s market share is over 50 per cent. The audit adds that if the vending channel (push carts) is taken into consideration. Amul dispute ice-cream numbers Gujarat Co-operative Milk Marketing Federation has claimed that its Amul ice creams have outperformed Hindustan Lever’s Kwality Walls at the national level by achieving a marketshare of 30 per cent compared to HLL’s share of 19 per cent. HLL had decided to restrict its operations in the top six metros in the country and claims it has a larger market share in each of these locations.5 million litres in 2002. a cheese ice cream and a sundae in cone for kids in different variants.

Mehta observes. has been in expansion mode on the product front for Mother Dairy ice-creams. to partner with State dairy co-operative federations in the form of joint ventures. Executive Director (Icecream Division)." Attributing the expected turnaround next year to a `radically new strategy'. J. focus on six citadels and aligning of our cost structure to the new strategy. and has undertaken a large-scale exercise to revamp its ice-cream push-carts. NDDB has decided to float a subsidiary marketing company.was recently relaunched. "Two-thirds of our ice-cream turnover comes from these six cities. from the Rs 20-crore figure the previous year. is engaged in a pitched battle with erstwhile associate GCMMF. "Our strategy in 2002 focused on one of our power brands.C. Mother Dairy Foods Ltd. launch of differentiated innovations.which accounts for one-fifth of the company's ice-cream business turnover . Kwality Wall's. While analysts view this as a cautious move on the company's part. NDDB's Mother Dairy milk booths are not selling competing Amul's products any more. Kwality Wall's and Amul. of which the organised sector accounts for Rs 650 crore. claiming to be market leaders in the Rs 1. HLL.000crore domestic ice-cream business. . Mehta. against 18 million litres (Rs 115 crore) the previous year. And this summer. H. recently announced its decision to focus on six cities . HLL's ice-cream business losses were reduced to Rs 6 crore in the AprilDecember 2002 period.Ice-cream. Both Hindustan Lever Ltd (HLL) and Gujarat Cooperative Milk Marketing Federation (GMCCF) have already locked horns over their respective brands. which the company attributes predominantly to the decision to shift its business from commodity to product model and working on supply chain efficiencies.the four metros and Bangalore and Hyderabad.or Amul . GCMMF . National Dairy Development Board's (NDDB's) Mother Dairy. Nielsen data. HLL disputes this by quoting A. valued at around Rs 150 crore. which is expected to turn around its Rs 210-crore ice-cream business in 2003." HLL managed to halve its losses in ice-creams last year. While GCMMF says it has become the country's leading ice-cream seller in both value and volume terms. NDDB is further strengthening its marketing and finance divisions. supported by appropriate communication and activation. explains. it promises to be the fiercest ever the domestic ice-cream industry has seen. The third contender in the Big Fight.5 million litres. HLL. hot battles IT'S a Cold War out there. Meanwhile. Also. Kwality Wall's' Rs 80-crore Max sub-brand .has projected that it will end the April-March 2002-03 period with ice-cream sales of 24.

30. some of which are already in the market." GCMMF.3 per cent by value in 2002. "In individual cities.2 per cent) and 54.according to which Kwality Wall's had an overall market share of 38. GCMMF is now gearing to introduce super-premium ice-creams at `valuefor-money' prices. GCMMF's Shah emphasises that the Rs 150-crore figure represents net turnover." And while HLL's spokesperson points to Amul's turnover figure of Rs 150 crore being calculated on the basis of end consumer prices (ECP). Further. barring six cities from where A. As Prasanna Shah.000 DFOs annually. during this period. 36. Amul's claim is. our share was 36. Analysts expect that Amul's move will give the HLL ice-cream management more sleepless nights. Kwality Wall's. head of GCMMF's ice-cream division. unlike soaps or biscuits.3 per cent in Delhi (9. explains.1 per cent in Hyderabad (13. meanwhile.C Nielsen's data on the grounds that it is limited to seven cities. Nielsen's panel has not been updated for the last four years and during this period we have been adding around 10. "Market surveys are based on sales reported by the same sample of outlets year after year. Regional-level players. absolutely incorrect. by broadbasing their products across various price points. aren't giving way easily. ice-cream. Nielsen's sample is drawn. therefore.C.5 per cent in Bangalore (15. say.C. HLL has withdrawn its ice-cream from virtually every market. against Amul's 16. Says an HLL spokesperson. . however.7 per cent). contests A.9 per cent in Mumbai (against 35 per cent for Amul). Market share apart. A.7 per cent. Besides. will not stock rival brands. each of the Big Three are busy generating consumer pull necessary for both out-of-home and in-home consumption. the sales from which are not captured in the survey data. is sold through exclusive deep freezer outlets (DFOs) and a retailer who sells one brand.2 per cent).

For the market research the questionnaire was being framed considering the objective of the project and I personally interviewed consumers.  DATA COLLECTION TECHNIQUE: There are two types of methods prevalent in research methodology are: 1) Secondary data. There are three types of research:    Exploratory research Casual research Descriptive research Our research falls in the casual category.  SAMPLE SIZE : Thirty customers have been interviewed being conducted in the mumbai only. .Market Research & Analysis RESEACH METHODOLOGY:  RESEARCH PLAN:  OBJECTIVE The objective is to find the preference by the consumer for buying ice-cream of Amul other than its competitors. For this survey primary method of data collection technique was adopted. 2) Primary data.

Impulse Buying. Not Fixed. Q4) How often do you consume Ice-creams? Weekly. which influence you to buy an Ice cream? Price. Once in 3 Months. Q1) Do you consume Ice cream? Yes. . Taste. . Q2) Have you ever tasted ice-cream? Yes No Q3) What is the most important FACTOR. No. Note: If yes than go to 3 otherwise ask 2. Easy Availability Climate. . Once in a Month.Questionnaire Name: Address: .

Others . Others. Cups. Butterscotch. Candy.P. Chocolate. Q9) Among the following which type of Ice cream do you have? Cones. F. .Q5) Are you particular about consuming a particular Brand of Ice-cream? Yes No Q6) Which Brand of Ice-cream do you recall? Top of Mind Spontaneous General Awareness Q7) From the above Brands mentioned which brand do you prefer for your Consumption? Q8) Which Flavour do you consume More? Vanilla. Strawberry.

Q10) What price point of ice-cream do you prefer? Rs10 Rs20 Rs35 More than 50 Q11) How would you rate the following Parameters for both the Brands (Amul & Kwality Walls)? Excellent. Parameters Packing Taste Quality Price Amul Kwality Walls Q12) If considered the all the above parameter which brand will be a better deal for you? Amul. . Fair. Not satisfied. Kwality Walls. Good.

but Amul is always undertaking promotion to promote the brand amul. Both the companies have different promotion strategy & both are successful as far as brand awareness is concerned. Amul very rarely promotes its individual products separately. Amul is more popular & is doing well. Walls as well as Amul is doing very well as far as promotion is concerned. . the company may loose its share. Still perception of the people in our country. Still perception of people in our country is to get good quality at cheaper price & Amul is falling true on people’s beliefs. If distribution network is not sound. it can create a negative in the mindset of consumers. it is clear that more than 65 % of people are very specific about consuming a particular brand. Consumer demands different sizes according to their convenience & if the company does not satisfy their required demands.CONCLUSION: From the research done. Walls are having a strategy of promoting its individual products separately. So ultimately the main aim of the company must be to make a proper with retailers to motivate the distributors and finally satisfy the customers wants and desire. Brand’s as well as companies position depends upon the consumer & their preference. a large middle segment is to be tapped yet which can be done through proper pricing. stronger is the brand as consumer is the ring. The reason being was that Amul provides quality at cheaper price so that any body can afford it & can enjoy to the fullest.

S. S.thehindubusinessline.P 3) Amul Brochure and annual report 4) Business environment and development 5) Marketing management 6) Distortion in co operative -N.com 3) www.com 4) www.com Magazines: 1) Business world 2) Business today 3) Business India Newspaper: 1) Economic times 2) Business times . Kale .BIBLIOGRAPHY Books: 1) Co-operative marketing in India and abroad 2) Co operatives management -Ramkishen .Namakumari -P.B.V.Ramaswamy.indiainfoline.hll.Kulkarni Website: 1) www.com 2) www.com 5) www.Y -Sing L.amulindia.google.G.

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