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A PROJECT REPORT ON MARKETING STRATEGY OF AMUL (MMM-A + PGDM )

SUBMITTED BY:
SIDDARTH RAVINRAN JAYDEV KUMAR DHARMENDRA PRASAD

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND RESEARCH 2010-2012

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ACNOWLEDGEMENT
We extend my sincere thanks to Mr. SwapnilPatilfor providing us the opportunity to work on this project. Weexpress our deep sense of indebtness to him because he has been the moving force behind the successful accomplishment of the project we thank him for taking time out of his busy schedule and guiding me in the project. We would also like to thank our project guideSwapnilPatiland faculty membersfor their valuable guidance and encouragement at all the stages of the project.

. the company should always be ready to make necessary changes according to the requirement in order to attract more customers so as to maintain a substantial growth in the market. We have tried to put my maximum effort to get the accurate statistical data. please ignore it. The topic given to me was: “MARKETING STRATEGIES AMUL” We have tried to put our best efforts to complete this task on the basis of skill that we have achieved during our studies in the institute. If there is any error or any mistake in collecting the data. Moreover.3 PREFACE The success of any business entity solely depends on how effectively does it utilizes its optimum resources and how soon does it make arrangements for the removal of the customer’s grievances.

4 INDEX  Objectives of the project  Introduction of the Topic  Company profile of Amul  Amul and co-operation  GCMMF  PEST Analysis amul  4P’s of markering  Comparison between chocolate companies  Conclusion  Bibliography .

I have done PESTanalyses.5 OBJECTIVES OF THE PROJECT The main objective of the study on this project is to study the company profile of Amul India Ltd and demonstrate its marketing strategies of and to arrive at my findings. And also 4 P’s of Marketing:• Product • Price • Place • Promotion .

expansion and development. The topic “To study about Strategy and Market Share of Amul chocolates“ highlights on the market share of Amul Chocolates Pune city in comparison to existing player in the Milk chocolate Market. As the competitors are concerned there are only two of them i. The market share can be found with the help of retailers. .Moreover the study also helps in knowing the best medium for creating the awareness about the Amul Chocolates. To know the Market share and problems faced by retailers is very important for every organization for their promotion.e.6 INTRODUCTION TO THE TOPIC . Cadbury and Nestle The study is also concerned to find out the various reasons due to which the retailers do not prefer to sell Amul Chocolates.

7 COMPANY PROFILE .

processing and producing milk products at the respective 12 District Dairy Unions.8 1. “We have traversed a path that few have dared to. 3. Chairman. chocolate. Information Technology has played a significant role in developing the Amul brand. Formed in 1946. 2. In 1996 Amul was one of the first major organizations in India to have a website and this has been used both to develop an intranet of Amul distributors as well as a cyber-store for consumers. Yet. we must. We hold on trust the aims and aspirations o millions of our countrymen”. AMUL AND CO-OPERATION .consumers and good returns to the farmer members. milk fat content. Kurien. one of the first examples of e-commerce activity in India. cheese. Amul has initiated the Dairy Cooperative movement in India and formed an Apex Cooperative Organization. We are continuing on a path that still fewer have the courage to follow. has been to build a strong Indian society economically through an innovative cooperative network. GCMMF. (GCMMF). The logistics behind co-ordinating the collection of some 6 million litres of milk per day from 10. We must pursue a path that even fewer can dream to pursue. ice cream and pizza are widely used throughout India and abroad and have made Amul the largest food brand in India today with an annual turnover of some Rs. 4. jointly owned by some 2.1 million milk producers in Gujarat.755 separate Village Cooperative Societies throughout Gujarat and then storing.29 Billion ($US 616 million) per annum. V. are awesome. to provide quality service and products to end. The installation of 3000 Automatic Milk Collection System Units (AMCUS) at Village Societies to capture member information. ghee. India. butter. Kurien states. Dr. liquid milk. including milk powders. Its products. The primary goal of Dr. volume collected and amount payable to each member has proved invaluable in ensuring fairness and transparency throughout the whole Amul organization. Gujarat Co-operative Milk Marketing Federation Ltd.

it will enable Amul to begin trading competitively throughout the world. Mr. Amul products have been in use in millions of home since 1946. “Amul is not a food company. In saying this he was recognizing that the most efficient way of building links between milk producers and consumers so as to provide the best returns for the both is through IT innovation. B M Vyas. Amul Ice cream. The brand name “Amul. (Turnover: Rs. Not only will the TLD enable consumers in India to recognize an established brand they can trust online. Amul Ghee. Amul Butter.” from the Sanskrit “Amoolya. SubbaraoHegde said. Thus is why Amul has embraced the ideas behind coop with such enthusiasm. Amulspray.” was suggested by a quality control expert in Anand. “Information Technology is the most effective tool we have in communicating with our members and the millions of consumers who purchase Amul products throughout India every day. Amul Milk and Amulya have made Amul a leading food brand in India. said that. The CIO. Coop not only reflects the cooperative values which shape our own organization democratically dynamic. Variants. Today Amul is a symbol of many things. Amul Cheese. . Mr. Amul Milk Powder. 29 billion in 2004). it is an IT company in the food business”. it will also give us a vital business advantage as we seek to develop the Amul brand throughout the world. reaching markets.” are found in several Indian languages. Amul Chocolates.9 The CEO. AmulShrikhand.” AMUL means “priceless” in Sanskrit. all meaning “priceless. Nutramaul. which have hitherto been inaccessible. Of high-quality products sold at reasonable prices.

333 Total Milk handling capacity6.97 million liters Milk Drying Capacity 511 metric Tons per day Cattlefeed manufacturing 2340 Mats per day Capacity: Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 37736 42778 52448 67113 Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2005-06 2006-07 2007-08 2008-09 US $ (in millions) 355 400 450 455 493 493 500 500 575 616 850 1050 1325 1504 .36 million No.10 GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION(GCMMF) An Overview: Gujarat Cooperative Milk Marketing Federation (GCMMF) is India’s largest food products marketing organization. of Producers Members 2.86 billion liters Milk collection (Daily Average (2003-04) 4.9 million liters per day Milk collection (Total –2002-03) 1. It is state level apex body of milk cooperative 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. of Village Societies 11. Members: 12 district cooperative milk producersUnion No.

3) Low cost of production – better penetration. S-1) Per capita consumption expected to increase – fashion. 2)Increasing gifts culture – increase in demand. no political effects are envisaged. 3) Lower cholesterol than “Mithais” (sweet meat) – substitute demand T-)Will have to reinforce technology to international levels once India is a “free” economy .11 PEST ANALYSIS OF AMUL P-)Since the budget range is decontrolled. E-1) Increasing per capita income resulting in higher disposable income 2) Growing middle class/urban population – increase in demand.

The wide variety products offered by the company include: List of Products Marketed: - Breadspreads:  Amul Butter  Amul Lite Low Fat Breadspread  Amul Cooking Butter Cheese Range:  Amul Pasteurized Processed Cheddar Cheese  Amul Processed Cheese Spread  Amul Pizza (Mozarella) Cheese  Amul Shredded Pizza Cheese  AmulEmmental Cheese  Amul Gouda Cheese  AmulMalaiPaneer (cottage cheese) Frozen and Tinned  Utterly Delicious Pizza Mithaee Range (Ethnic Sweets):  AmulShrikhand (Mango. delivering to her door step additional benefits which she would never have imagined possible. But the winner will surpass them by constantly exceeding her expectation. Cardamom)  AmulAmrakhand  AmulMithaeeGulabjamuns  AmulMithaeGulabjamun Mix  AmulMithaeeKulfi Mix UHT Milk Range:  AmulTaaza 3% fat Milk  Amul Gold 4. Saffron.5% fat Milk  Amul Slim-n-Trim 0% fat Milk . Cadbury’s offer such product. Almond Pistachio. But delight dazzles the average company will compete for customer by conforming to her expectation consistently.12 4 P’S OF MARKETING PRODUCT:Satisfaction suffices.

ShistaPistaKulfi)  Utsav Range (Anjir. MawaMalaiKulfi. Fresh Litchi. TuttiFrutti)  Nut-o-Mania Range (KajuDrakshi. Mango Dolly.13     Amul Chocolate Milk Amul Fresh Cream Amul Snowcap Softy Mix AmulTaaza Double Toned Milk Pure Ghee:  Amul Pure Ghee  Sagar Pure Ghee  Amul Cow Ghee Infant Milk Range:  Amul Infant Milk Formula 1 (0-6 months)  Amul Infant Milk Formula 2 (6 months)  Amulspray Infant Milk Food Milk Powders:  Amul Full Cream Milk Powder  Amulya Dairy Whitener  Sagar Skimmed Milk Powder  Sagar Tea and Coffee Whitener Sweetened Condensed Milk:  AmulMithaimate Sweetened Condensed Milk Fresh Milk:  AmulTaaza Toned Milk 3% fat  Amul Gold Full Cream Milk 6% fat  Amul Shakti Standardised Milk 3% fat  Amul Smart Double Toned Milk 1. Strawberry)  Millennium Icecream(Cheese with Almonds. Pineapple. Chocohips. KerarCarival.AmulLassee AmulIcecreams:  Royal Treat Range (Rajbhog. Fresh Strawberry. Dates with Honey)  Milk Bars (Chocobar. Black Currant. Roasted Almond. Cappuccino. Roasted Almond)  Simply Delicious Range ( Vanilla. Chocolate. Chocolate)  Nature’s Treat (Alphanso Mango. ShahiPistaKulfi. Green PistaKulfi) .ShahiBadamKulfi. Butterscotch. Anjir. Strawberry. Black Currant)  Sundae Range (Mango. KesarPista. Raspberry Dolly.5% fat Curd Products:  AmulMastiDahi (fresh curd)  Amul Butter Milk . BadshahiBadamKulfi. Rose.

Banana. Mango) Cassatta Tricone(Butterscotch.14         Cool Candies (Orange. Pineapple) Health: Isabcool Chocolate & Confectionery:  Amul Milk Chocolate  AmulAlmondbar  AmulFundoo  AmulChocozoo  AmulBindaaz  Amul Fruit & Nut Chocolate Brown Beverage:  Nutramul Malted Milk Food Milk Drink:  Amul Shakti Flavoured Milk Ready to Serve Soups:  Masti Hot & Sour Soup . Chocolate) Megabite Almond Cone Frostik – 3 layer chocolate Bar Fundoo Range – exclusively for kids SlimScoop Fat Free Frozen Dessert (Vanilla. Mango.

) Amul Milk Chocolate 35g AmulFundoo AmulFundoo Amul Fruit Nut AmulBindaaz AmulAlmondbar AmulChocozoo All the chocolates are made up of: Milk Fat Sugar Solid Milk (2%) .(55%) .5%) .(7.15 PRICING:Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically.  AMUL has launched various products which cater to all customer segments. Therefore maximizing the returns involves identifying right price level for each segment. In milk chocolate Amul has the following brands: Name of chocolate Weight Price (Rs. and then progressively moving through them. So every customer segment has different price expectation from the product.(20%) 30g 15g 35g 30g 35g 10 10 5 15 10 10 500g(Tub) 138 Cocoa Solids . The strategy used by Cadbury’s is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them.

More often than not. 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages. grab her acceptance and then extract retention competing with thousands of other units of communication trying to do the same. India – 1 billion people.28 million sq. the receiver must at least half want it to. grab her attention evoke her comprehension. communication must first ensure exposure. Effective advertising is rarely hectoring or loudly explicit…. a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature. and be prepared too take step toward the sender. spread cross 3.16 Physical Distribution – “Place” In a product and price parity situation. It often both attracts and generates arm feelings. . the brand that sells more is the one that reaches the highest number of customers. Promotion If an advertisement is to communicate effectively. To penetrate into the inner recesses of her memory.

33% who deal in Amul chocolates.e.1 Chocolate companies and their penetration Name of company Amul Cadbury Nestly Other No of shops 20 149 148 18 Graph 1. Table 1.17 COMPARISION BETWEEN CHOCOLATE COMPANIES 1) Name of Chocolate Companies and their penetration in marketThe table below deals in finding the numbers of retailers that sellsdifferent company chocolates and their penetration in markets.1 Chocolate companies and their penetration 160 140 120 100 80 60 40 20 0 Amul Cadbury Nestle Others 20 18 149 148 The graph 1. 13. There are only 20 retailers i. The percentage is very less compared to Cadbury and Nestle.1 shows the number of retailers selling different company chocolates. .

125940 Rs. 239750 Rs.5%. compared to other companies.1 Market Share Share Market (%) share Rs. 3130 00. which is very less.1 shows the market share of different company chocolates in terms of rupees.5% 33. . 2500 Rs.84% 64.67% 100% Rs. Table 2.18 2) Market share The table below deals in finding the Market Share of Amul Chocolates and other companies chocolate. 371320 1% 34% 64% 1% Amul Cadbury Others Nestle The graph 2. From the graph we can say that the market share of Amul chocolates is only 1%. Cadbury has the maximum share of 64.9% 00.1 Market Name of company Total Sale (Per month) Amul Cadbury Nestle Others Total Graph 2.

The table below helps in finding the different brands of Amul Chocolates that is available on Amul Chocolate Outlet. A shop that sells even one Amul Chocolate is an Amul Chocolate Outlet Table 3. Of Amul chocolate Outlet 8 4 11 4 16 6 0 0 A Amul Milk chocolate B AmulFundoo C Amul Fruit n Nut D AmulBindaaz E F AmulAlmondbar AmulChocozoo G Amul Rejoice H All Chocolates Brand of Amul Chocolates & their selling percentage 20 15 10 5 0 A B C D 8 11 16 6 4 4 0 E F G 0 H Graph-3.1 .19 3) a)Brands of Amul chocolates sold on Amul chocolate Outlet.1 Brand of Amul Chocolates & their selling percentage Name of chocolate No.

20 The Graph 3.2 shows the ordering pattern followed by Amul Chocolate outlets. There is not a single outlet that sells Rejoice. . 3) b) Ordering Pattern The table below deals in finding the ordering pattern for Amul Chocolates. of Retailers Daily Weekly Monthly Graph 3.2 Ordering Pattern Option No.2 0 0 20 Ordering Pattern 25 20 15 10 5 0 Daily Weekly Monthly 0 0 20 The graph 3. It is seen that almost all of them order once in a month since their demand is very less. Table 3.1 above shows that Amul Almond Bar is sold at most of the Amul Chocolate outlet followed by Amul fruit n Nut &Amul Milk Chocolate.

From the graph we can say that according to the retailers the company does not provide any financial support for promotion.1 Financial Support For Promotion Option Yes No No. of Retailers 0 20 Graph 4.21 4) Financial Support for promotion. .1 Financial Support for Promotion 20 20 15 10 5 0 Yes No 0 The graph 4. Table 4. The table below deals in knowing whether the company provides any financial support for promotion to Amul chocolate outlets.1 shows the financial support for promotion.

The table below deals in finding the reasons for retailers due to which they do not sell Amul Chocolates.1 Reasons For Not Selling Amul Chocolates 120 100 80 60 40 20 0 A B C D E F 73 45 21 15 108 98 The graph 5.22 5) Reasons for not selling Amul Chocolates. of Retailers 108 73 98 45 21 15 Graph 5.1 Reasons For Not Selling Of Amul Chocolates Reasons A B C D E F Distribution & Service problem Low demand Low Margin Replacement Problem No Refrigerator Not Interested No.1 shows the various reasons due to which the retailers do not sell Amul chocolates. Table 5. From the graph we can say that Distribution & Service problems and Low Margin are the major reasons followed by Low demand and Replacement problem because of which the retailers do not want to sell Amul chocolates. .

23 6) Reasons for Preference in selling other company chocolates. Good service as well as Higher Margin. The major reasons are the More demand of other company chocolates. of Retailers 97 105 73 23 30 The graph 6. Table 6.1 Reasons For Selling Other Company Chocolate Reasons A B C D E Good Distribution and Service More Demand Higher Margin Better Replacement More Benefit Graph 6. .1 Reasons For Selling Other Company Chocolate 150 97 100 50 0 A B C D E 105 73 23 30 No.1 shows the reasons for which the retailers prefer to sell other company chocolates. The table below deals with finding the reasons due to which the retailers prefer to sell other company chocolates and not Amul chocolates.

The table below deals with finding the most attractive scheme according to the retailers. of Retailers 34 40 79 25 Graph 7. Table 7.24 7) The most attractive scheme.1 The Most Attractive Scheme 100 80 60 40 20 0 Incentive Scheme Free Pack on Increase Profit Large Purchase Margin Lucky Draw 34 40 25 79 The graph 7. Mostly the retailers are attracted towards increased Profit Margin followed by Free Pack on large purchase.1 The most Attractive Scheme Different Schemes Incentive Scheme Free Pack on Large Purchase Increase Profit Margin Lucky Draw No. .1 shows show the Different Schemes for attracting the retailers for selling Amul Chocolates.

According to all of the retailers. The table below deals in finding the most appropriate medium for creating awareness.25 8) Mediums for Creating Awareness. Table 8. Of Shops paper 150 62 48 160 140 120 100 80 60 40 20 0 62 48 More TV / News paper Advertisement Banners Gift/Coupons The graph 8. . the most effective medium is TV and Newspaper advertisement.1 Effective Medium Option More TV / News Advertisement Banners Gift/Coupons Graph 8.1 shows the different effective mediums for creating awareness about the Amul chocolates.1 The Effective Medium 150 No.

Bindaaz.26 CONCLUSION As we know thatAmul is very big organization and market leader in dairy products. the other players such asCadbury. People have believed inAmul’s product and they will accept its chocolates also if effective actions were taken.  In comparison to Amul Chocolate. Nestle. . It has maximum market share in Milk. and Fundoo. As we know Amul is a co-operative organization but chocolate industry is a profitable industry we can’t ignore it.The survey resulted into following conclusions :  Amul must come up with new promotional activities suchthat people become aware about Amul Chocolates like Chocozoo. areprovide a better availability and give competition to the hilt. which are its main/core products. company can find out its week points in chocolate product and can increase its market share through rectify mistakes.  People are mostlysatisfied with the overall quality of AmulChocolate.  Quality is the dominating aspect which influences consumerto purchase Amul product. but prompt availability of other chocolate brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales. but for the existence in the local market Amulmust use aggressive selling techniques. With the help of research. Butter and Cheese.

amul.com 4. www. www.com . Research Methodology. Kothari swapnilpatil2k@gmail.com 5.com 6. C.Boyd. (HarperW. www.dairy. R.marketresearch. www.com 3.google.27 BIBLIOGRAPHY 1.