A Summer Internship Project Report on

“CHANNEL ANALYSIS OF AMUL MILK AT KALEWADI, PUNE”

Submitted in partial fulfilment of the requirements for the degree of Post Graduate Diploma in Management (Marketing) By

BHAVENDRA DAS
Roll No: 74 Under the guidance of

Prof. SUNIL VERMA
A Study Conducted for GCMMF (AMUL)

At Indira Institute of Management Pune (2012-14)

ACKNOWLEDGEMENT

It gives me a great pleasure to present this report, a written testimony of the most fruitful
training I have undergone. I sincerely acknowledge that whatever achievements I have made, was through the efforts and sincere co-operation of the entire Marketing department of Gujarat Co-operative Milk Marketing Federation Ltd. Pune region. I whole-heartedly thank my company guide Mr Pranil Jadhav (Asst. Manager, Sales), who have been an invaluable source of encouragement. I am immensely grateful to them for all their help and support. Also I would like to thank Prof. Pranav Vyas (HOD) and my internal guide Prof. S.K. Verma for their valuable guidance, co-operation extended to me and providing all necessary facilities to carry out project work. I would also like to acknowledge the support of the Dealers, Retailers and especially who provided me all kind of all information and support. Without them getting primary data from field would have been near to impossible. Finally, I would say that this training was a wonderful experience, where I could apply theoretical and practical knowledge, which I shall cherish forever.

Bhavendra Das

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DECLARATION

I, Bhavendra Das a student of PGDM (2012-14) studying at Indira Institute of Management declare that the project title “CHANNEL ANALYSIS OF AMUL MILK AT

KALEWADI, PUNE” at Gujarat Co-Operative Milk Marketing Federation Ltd. was carried out
by me in the partial fulfilment of Post Graduate Diploma in Management. This project was undertaken as a part of academic curriculum according to the university rules and norms and by no commercial interests or motives.

Name of Student Bhavendra Das Date:
Place: Pune.

Signature of the Student

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INDEX Chapter.NO CONTENTS PAGE NO 01 EXECUTIVE SUMMARY 5 02 INTRODUCTION OF THE STUDY 9 03 INDUSTRY PROFILE 11 04 COMPANY PROFILE 17 05 OBJECTIVE OF THE STUDY 27 06 RESEARCH METHODOLOGY 30 07 DATA ANALYSIS AND INTERPRETATION 36 08 OBSERVATIONS & FINDING 54 09 CONCLUSIONS & SUGGESTION 56 10 BIBLIOGRAPHY 58 11 ANNEXURE 59 -4- .

EXECUTIVE SUMMARY -5- .

OBJECTIVES: 1. online. TOOLS USED: Questionnaire. RESEARCH METHODOLOGY USED:• • • • • TYPE OF RESEARCH: Descriptive Research. 6. SECONDARY DATA: From www. Its scope is mainly limited to Kalewadi area of (Pune) city.com. SAMPLE SIZE: 100 Retailers & 50 customers. • DATA COLLECTION: PRIMERY DATA: Face to face communication with retailers/Customer.” 2. To study the retailers preference towards various milk and Milk products of Amul Dairy to analyse channel penetration of Amul. 2. To judge the retailers preference with respect to price and availability at different milk counters of Milk products of Amul Dairy for product density presence in counters. TITLE: CHANNEL ANALYSIS OF AMUL MILK AT KALEWADI. COMPANY: GCMMF (AMUL) 4.EXECUTIVE SUMMARY 1.(It is the research method used because descriptive studies embrace a large proportion of market research. TECHNIQUE of SAMPLING: Non-probability Judgement sampling. SECTOR: Dairy Industry. 7. past records. agents. 3. SCOPE OF THE STUDY: . PUNE.amul.) UNIVERSE UNDER STUDY: Pune retailers. directs marketing. LOCATION: Pune 5.The scope of the study is to understand retailers‘ feedback regarding Amul milk and distribution service. -6- . 3. SAMPLE FRAME: Kalewadi area. To understand channel selection & nature of channel conflict criteria among retailers for selecting milk and milk products of Amul.

whereas Katraj.  The dairy channel at Kalewadi expect a continuous and sustained delivery frequency also the logistic breakage and demurrages ensures a better channel relation and trust building exercise. Govardhan. Gokul are the major accepted brand at Kalewadi. flex gates would better Amul brand product placement at Kalewadi. credit facility offering different trade scheme. The other promotion activities such as glow signboards. Chitale. Chitale and Katraj are the subsequent accepted brand. Gokul are regional brands. Chitale.  The customer accept for Amul taste it‘s durability and the right value for money is derived due to the product acceptance of Amul milk as it is more than two generation old product. the range of the product are complete promotion of Amul brand is also suitably done.  Amul brand has a sustained taste and the milk delivery at customer door step ensures better quantum billing of Amul at Kalewadi.8.  Amul has a sustained brand equity presence on the PAN India scale. Amul. FINDINGS:For Retailers:  At Kalewadi most of the milk retailers have multi-brand dairy product outlet.  Katraj has the market share a little bit less than half customers. Morality and its cooperative success also contribute to the product acceptance by customers at Kalewadi. Katraj. Pune. so dairy products are displayed as major product. The quality of Amul is quite good.  Amul is a PAN India brand. Amul milk has good brand equity. tastes are moderately maintained in comparison to Katraj and Chitale. Govardhan.  The channel strength of dairy products is mostly dependent upon the price acceptability of the retailer and customer.  Most of the milk outlet has sweets these local brands of lassi and milk shake. -7- . Amul.

it is necessary to create Amul Brand favouritism among local people by various means. Amul Dairy should not spoil its Brand image by giving Bad Service to customers at milk parlours. So it‘s challenge in front of Amul to tackle this situation. -8- . • Amul Dairy has huge brand advantage of its brand name so it should continue to maintain good brand image in the minds of customer. Therefore. CONCLUSION:• Katraj brand is favourite among local people in Pune. This leads to better profit and sale. its refrigeration equipment‘s quality and maintain good quality of milk could only be sold to customers. • its Amul Dairy should start and implement an online ordering system for its distributers/retailers and consumers. • Amul Dairy should develop Research and Development (R & D) department for its growth and development in future. it is necessary to open more number of milk parlours throughout the city and semi urban area to get more product spread. It is necessary to change the taste of Amul milk pungent to sweet. • • • It is also necessary that the margin given to retailers is equal to competitors. • Amul Milk and Milk products are not available in close vicinity of all human habitats. • Quality means it is necessary to increase the fat or malai content of Milk as compare to other brands. . Therefore. Amul Dairy has biggest advantage of its brand name so it should continue to maintain good brand image in the minds of customer.9. • There are many customers who have already shifted to Chitale who use to use Amul. • It is necessary to check the quality of Amul milk products.

CHAPTER-1 INTRODUCTION OF STUDY -9- .

C. rate of milk and Milk brands sold in area. Availability of AMUL Milk and Suggestion if any given by the retailers to improve service. To know retailers expectations from Amul company 2) To know retailers expectations from Amul Company to reduce the time it takes to get the product to the market. as marketing students. fat content. 3) To study the quality of the product so as to maintain its integrity. In this case. Product Preference Test and Advertisement Evaluation. as per company suggestion Market surveys were carried out to understand the quality & distribution of Amul as a Brand of milk. CUSTOMER SURVEY: Customer survey is carried to find perception of consumer with respect to AMUL milk. Quantity of AMUL milk available in the retail outlet & Distributor warehouse. Kalewadi market was divided into 2 brief areas and a detailed survey was carried out about the distribution.10 - . Doing so researchers. This can be done by carrying out Market survey. taste.2 Background of the topic A. In Kalewadi.1 Background of the Study Companies and Marketing Managers often carry out study of specific problems and opportunities in the market so as to analyse the performance of their Brands and respective Products in the market.INTRODUCTION 1. Retailer survey is carried out to identify the lacuna in distribution of AMUL milk and to increase the quality like taste. In this Project the observational method and questionnaire method was used with respect to the following points:1) The Period. but the fact is Amul has good brand name and brand equity in local area in Pune. quality. RETAILER SURVEY. shelf life. . Distributors and Measuring of product performance in a market 1. got a brief exposure to the functioning of small and large scale Retailers. shelf life of AMUL milk. AMUL milk has average market share.

11 - .Chapter-2 INDUSTRY PROFILE .

. At the same time. along with new dietary trends and preferences are fostering awareness. Leading much of this growth are highly populated emerging markets such as India and China.12 - . Despite the global economic crisis. It is 'The Oyster' of the global dairy industry. even with a recent history of price volatility and the current economic slowdown. It‘s also a commodity that continues to experience steady growth worldwide. India has emerged today as the largest producer of milk in the world crossing 97 million tones. trying to keep pace with the galloping progress around the world. inhabited by over 25 per cent of the country's population. It offers opportunities galore to entrepreneurs worldwide. where continued population growth and rising incomes. who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. for example. global consumption of liquid dairy products has reached a compound annual growth rate of 2.4% — with consumption hitting an all-time high of 258 billion litres in 2008. by purchasing budget brands and private label products. The expected rise in urban population would be a boon to Indian dairying. Over the past four years. An estimated 50 per cent of the total milk produced is consumed here.1. It‘s a basic food staple.1 The World Dairy Situation – Every day. The effective milk market is largely confined to urban areas.1Industry Profile 3.2 Indian Dairy Industry-A Profile From chronic shortages of milk.1. the current financial turmoil is likely to encourage many consumers to economise when buying milk. The Indian dairy industry is rapidly growing. A bagful of 'pearls' awaits the international dairy processor in India. millions of people around the world consume milk. consumption of liquid dairy products is expected to continue to grow steadily over the next three years — with emerging markets driving much of this growth. demand for and consumption of dairy products. which is considered part of a healthy diet for all ages. 3.3.

milk yield per animal is very low. Presently the market is valued at aound Rs7.000mn.000 million.00.500 crores by year 2010.Presently. The main reasons for the low yield are:  Lack of use of scientific practices in milching. This growth is going to come from the greater emphasis on the processed food sector and also by increase in the convesation of milk into milk products.  Inadequate availability of fodder in all seasons.00. By 2010. India‘s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. whose entire herd comprises two to three animals Every day: 70 million farmers milk 105 million cows in 50. However. India has 300 million head of dairy cattle — roughly 1/5 of the world‘s total bovine population.13 - . the value of Indian dairy produce is expected to be Rs 10.000 cities in India Although milk production has grown at a fast pace during the last three decades (courtesy: Operation Flood). the organized sector both cooperative and private and the traditional sector cater to this market.  Unavailability of veterinary health services.000 villages and the national milk grid transports the milk (an average of 1-2 litres per farmer) to more than 700. Typical milk consumption Indian households  45% tea or coffee whitening  30% liquid milk for children  17% curd or yogurt preparation  8% cooking in other forms . The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.83. most of these cows belong to farmers in small villages.

Verka (Punjab). Saras (Rajasthan).Typical milk consumption Indian households tea or coffee whitening liquid milk for children curd or yogurt preparation cooking in other forms The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs. Presently the market is valued at aound Rs7. By 2010. .500 crores by year 2010. brands created by cooperatives have become synonymous with quality and value. the value of Indian dairy produce is expected to be Rs 10. Vijaya (AP).000mn. Brands like Amul (GCMMF).00.000 million.14 - . Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence.83.00. Over the years. This growth is going to come from the greater emphasis on the processed food sector and also by increase in the convesation of milk into milk products. Nandini (Karnataka).

1. (HDDCF) Himachal Pradesh State Cooperative Milk Producers Federation Ltd (HPSCMPF) Karnataka Cooperative Milk Producers Federation Ltd (KMF) Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF) Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF) Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh) Orissa State Cooperative Milk Producers Federation Ltd (OMFED) Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF) Punjab State Cooperative Milk Producers Federation Ltd (MILKFED) Rajasthan Cooperative Dairy Federation Ltd (RCDF) Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF) West Bengal Cooperative Milk Producers Federation Ltd.15 - .Some of the major Dairy Co-operative Federations include:                Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF) Bihar State Cooperative Milk Producers Federation Ltd (COMPFED) Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) Haryana Dairy Development Cooperative Federation Ltd. (WBCMPF) 3. Apart from making India self-sufficient in milk.08574 village level societies Is owned by nearly 12 million farmer members.3 The Dairy Cooperative Network     Includes 170 milk unions Operates in over 338 districts Covers nearly 1. these dairy co-operatives have established our country as the largest milk-producing nation in the world! .

This includes using MDFL to enter into 51:49 joint venture companies with state cooperative federations to assist them with marketing value added products and to help them in other ways to become self-reliant enterprises. stagnation with growth and transformed dairying into an instrument for the development of Indian farmers.16 - . The National Dairy Development Board was created in 1964 in response to the Prime Minister Lal Bahadur Shastri's call to "transplant the spirit of Anand in many other places". foreign exchange savings and increased farmer incomes. employment generation. NDDB believes that the Rs 7. He wanted the Anand model of dairy development .3.1.000-crore (Rs 70-billion) milk cooperative market is getting much more competitive and wants to strengthen the position of cooperatives through a multi-pronged action plan with an outlay of Rs 800 crore (Rs 8-billion). finance and support producer-owned and controlled organizations. This commitment has been rewarded with achievements made by cooperative dairies in milk production. NDDB's programmes and activities seek to strengthen farmer cooperatives and support national policies that are favourable to the growth of such institutions. NDDB's programmes and activities seek to strengthen farmer cooperatives and support national policies that are favourable to the growth of such institutions. Thus NDDB's mandate is to promote. finance and support producer-owned and controlled organizations. The National Dairy Development Board (NDDB) has replaced exploitation with empowerment. A commitment to help rural producers help themselves has guided the Dairy Board's work for more than 30 years.replicated in other parts of the country. convention with modernity. Fundamental to NDDB's efforts are cooperative principles and the Anand Pattern of Cooperation. . The Board's creation was routed in the conviction that our nation's socio-economic progress lies largely on the development of rural India. per capita availability of milk. which were sensitive to their needs and responsive to their demands .4 National Dairy Development Board The National Dairy Development Board was created to promote.with institutions owned by rural producers.

Chapter-3 COMPANY PROFILE .17 - .

COMPANY PROFILE 2.1. 37.1 History of AMUL:Gujarat Co-operative Milk Marketing Federation (GCMMF) Gujarat Cooperative Milk Marketing Federation (GCMMF) is the largest food product marketing organization of India. Amul Milk Powder. Gujarat Cooperative Milk Marketing Federation. of Producer Members: No.712 13. Amul products are used by millions of people.2 billion) Milk collection (Daily Average 2010-11): Milk Drying Capacity: Cattle feed manufacturing Capacity: Sales Turnover (2010-11) : .2 million litres 647 Mts. Nutramul.2010-11): 13 District Cooperative Milk Producers' Unions 3.03 million 15.74 billion in 2005-06.67 million litres per day 3. and Amulya has made Amul one of the leading food brands in India. Amul Milk. Amul was formed in 1946 by an apex co-operative organization. Amul Butter. Amul Shrikhand.45 billion litres 9. of Village Societies: Total Milk handling capacity: Milk collection (Total . AMUL means "priceless" in Sanskrit. Members: No. per day 3690 Mts per day Rs. Amul Ghee. Amul Cheese. It aims to provide good returns to the farmers and also to fulfill the requirements of consumers by giving them quality products. Amul Chocolates.18 - . Amul has a turnover of Rs. Amul Ice cream. Amul products are sold at reasonable prices. 9774 Crores (US $ 2. Amul spray.

evolved into the most visible face of brand Amul. The network of more than 4000 parlors in almost all major towns of the country bears testimony to the fact that the model is hugely scalable and inherently sustainable.Sales Turnover of Amul Dairy Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 80053 97742 US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1700 2172 RETAILING The concept of Amul parlors initiated in 2002 has come a long way and has today.e. This retailing initiative has not only enabled us to interface directly with consumer. it has also helped us in our endeavor to reduce middle-men from the supply chain. wholesale distributors who have embraced the concept by starting their own parlors and also motivated franchises to create parlors for meaningful employment.19 - . The addition of more than 2000 parlors during the current year is largely attributed to Amul channel partners i. .

20 - . every year. Chilled. an expanded competency based distribution by inducting about 300 Distributors having expertise in servicing specific market segments and secondly. 3500 Distributors for Value added milk products. This is going to give more and more competitive advantage. ensure that Amul Products are available to all segments of consumers in India through more than 2 Million outlets. The retailing business alone fetched a sales turnover of more than Rs. 1800 Distributors for Fresh Milk.125 crore last year. two key initiatives have been taken during the year. EXPORT Despite unfavorable conditions in international dairy market. these parlors also provide Amul an effective platform to introduce all the innovative products that Amul launch. Today. Firstly. Moreover. . Frozen and Fresh products simultaneously through versatile distribution highways. Amul also made giant strides forward in reaching out to millions of railway commuters by setting up more than 50 Amul stalls across major railway stations of the country and also to set up another 300 railway parlors during the coming year. Amul has plan to take the total tally of Amul parlors to 10000 by adding 6000 parlors during the coming financial year. DISTRIBUTION NETWORK Over a period of time Amul have built unique capabilities of distributing Ambient. the latest addition to the retailing revolution are yet another blockbuster from the house of Amul and expect to add 200 more parlors in the coming year. To enhance further efficiency in distribution. export business reached Rs.133 crores against Rs. divides the value added product lines amongst three sets of Distributors to cater to the same market.The relentless focus on expansion of Amul parlors is now paying rich dividends.200 Crores during the current year. Ice-cream scooping parlors.

. The Federation has also enhanced the Financial Control System in EIAS. Further to smoothen business operations across the supply chain and strengthen the linkages between GCMMF and its Member Unions.21 - . It has also developed Sales Performance Monitoring System across various levels.Milk Processing and Distribution Process INFORMATION TECHNOLOGY INTEGRATION GCMMF has further advanced its Information Technology solutions by linking all the Milk Plants of the member unions with its customized ERP System (EIAS & Web EIAS) to improve the liquid milk marketing operations. Federation has decided to implement common ERP system for entire enterprise.

Federation has also developed ―Online Cattle Feed Raw Material Pricing/Contract Information Sharing System‖ to enable smooth collaboration between member unions for purchase of Cattle Feed raw material. GCMMF has further advanced the use of Geographical Information systems by enhancing the GIS application and implementing GIS based Sales Analytics solution across various offices. It has also developed a GIS based Decision Support System (DSS) for the top management for effective & geographically monitoring of the sales performance of WDs, ADAs, Retailers, and Products etc.

 MISSION 2020
This plan, appropriately titled ―Mission 2020‖, envisages that the dairy cooperatives of Gujarat will have a group turnover of Rs. 27000 crores by the year 2020. This will be a three-fold increase over our current group turnover of approx. Rs. 9600 crores. With further expansion of cooperative network, increase in number and productivity of milch animals; Milk production in our milk shed area will increase to 231 lakh kg per day (23.1 million kg per day), at an annual growth rate of 4%. We will be strengthening our milk procurement infrastructure by installing Bulk Milk Chillers and Automatic Milk Collection Systems in all our village cooperative societies. This will enhance our milk procurement capacity in such a way, that we easily collect as much as 195 lakh kg per day (19.5 million kg per day) of milk in the peak flush season. Through expansion of distribution network, creative marketing, consumer education and product innovation, we will leverage effectively on rising income levels and growing affluence among Indian consumers. While expanding markets for our existing products, we will create fresh avenues for growth by tapping the rising demand for new value-added products. Special emphasis will be given to strengthening our presence in the large market for liquid milk, in metropolitan cities. Satellite dairies with combined processing and liquid milk packaging capacity of 50 LKPD will be established in major metro markets. Our objective is to ensure that the maximum share of the consumer‘s rupee goes back to the milk producers.

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In view of the high demand and procurement projections, we plan to double to processing capacity of our dairy plants to 20.7 million kg per day, by 2020. This would include multifold capacity expansion for major product categories including milk powders, Ice-cream, paneer, cheese, ethnic sweets, curd, ghee and other dairy products. Milk drying capacity will also be enhanced by 200 MTs per day, to process additional milk in the peak season. For increasing milk production, it is vital to provide nutritious feed to milch animals. For this reason, we plan to expand our cattlefeed manufacturing capacity, more than four times to 12000 MTs per day, by 2020. At current prices, total investments envisaged for creating all the required infrastructure would be Rs. 2600 crores (Rs. 26 billion) till the year 2020. I am glad to inform you that the plan 2020 has been shared with all the member unions. It has also been discussed in the respective boards and necessary resolutions for investments have also been taken. This detailed plan will serve as our comprehensive roadmap for the next ten years and will ensure a glorious future for our dairy cooperatives.

2.1.3 AMUL PRODUCT PROFILE / RANGE: List of Products Marketed:Milk Range
      

Amul Shakti 3% fat Milk Amul Taaza 4.5% fat Milk Amul Gold 6.0% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snow cap Softy Mix

Infant Milk Range
  

Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months above) Amulspray Infant Milk Food
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Milk Powders
   

Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener

Sweetened Condensed Milk

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk
      

Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardized Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat Amul Cow Milk Amul Shakti White Milk Food

 AMUL PRODUCT RANGE UNDERTAKEN FOR STUDY:
AMUL MILK:AMUL MILK is Pasteurized Milk

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5 8. It is fresh and only fresh milk. while preserving the maximum flavour.  Amul Gold Milk: Amul Gold is Long Life standardized milk.0 *Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates. and nutritional value. Special Features: Amul Milk is the most hygenic liquid milk available in the market. 34 parts of protein and 9 parts of minerals. It is pasteurised in state-of-the-art processing plants and pouch-packed to make it conveniently available to consumers. Notwithstanding popular misconception.5 9. kids and adolescents who simply love its creamy taste sans the inconvenient cream layer! Amul Gold contains 6. hence also known as UHT milk. Product Specification: Amul milk meets the PFA standards for the respective type of milk. which has been processed with a technology called UHT (Ultra High Temperature).5 1.25 - . The aseptic packaging system protects the product from air and light and guarantees a long shelf life of 180 days without refrigeration. UHT technology does not involve any use of preservatives.5 SNF (%)* 9 8.0% fat and 9. The UHT treatment ensures zero microbial activation.0% SNF minimum and is ideal for making sweet .Composition: Variety Amul Gold (Whole milk) Amul Shakti Amul Taaza Amul Slim N Trim Fat (%) 6 3 4. taste.

dishes (like kheer. Growing children love its taste while benefiting from its comprehensive nutrition. It is also ideal for drinking straight from the pack for Amul Gold comes in convenient 1 liter and 500ml packs. payasam etc.5% SNF minimum. It is the ideal multipurpose milk.5% fat and 8. Amul Taaza comes in convenient 1 liter and 500ml packs.  Amul Taaza: Amul Taaza contains 4.26 - . .) and for setting curds.

CHAPTER-5 OBJECTIVES & SCOPE OF THE STUDY .27 - .

The calculations are based on research conducted in selected area and hence it should not be considered for the whole area.  To understand channel selection & nature of channel conflict criteria among retailers for selecting milk and milk products of Amul.28 - . 3. . Gokul. It is the competitive market having atleast 15 to 16 dealers for various brands like Chitale. Amul. Gobind. 4. The survey is conducted in Pune city to study the retailer‘s preference towards various milk and by-product of Amul Dairy.OBJECTIVE OF THE STUDY The research work has been taken to find out the following objective which will help to take the marketing decision regarding to capture the largest market share:  To study the retailers preference towards various milk and Milk products of Amul Dairy to analyse channel penetration of Amul. Gobordhan and various other companies. The survey is conducted by preparing questionnaire for retailers. The purchase decision of the milk and by-products is mainly taken by retailers. 5. 2. Study also shows that the demand for the Amul by-product is comparatively less than the Amul Milk. 6. SIGNIFICANCE OF THE STUDY 1. Study shows that most of the retailers are not satisfied with the Amul by-product.  To judge the retailers preference with respect to price and availability at different milk counters of Milk products of Amul Dairy for product density presence in counters.  To understand consumer‘s preference towards Amul brand.

It gives information about the size of the retail networks. 4. Amul company get the information about competitors and can develop new marketing strategies. It will serve consumer in better manner. 3. 2. . 1. Its scope is mainly limited to Kalewadi area of (Pune) city. It gives information about the services given by distributors to their retailer.SCOPE OF THE STUDY The scope of the study is to understand retailers‘ feedback regarding Amul milk and distribution service. It gives information about the competitors‘ products. It provides suggestions to the company to improve their products sales.29 - .

CHAPTER-6 RESEARCH METHODOLOGY .30 - .

data interpretation was done to represent the current AMUL position in the local market and reasons for it. Retailer survey is carried out for retailer in pimpri-chincwad area and a Crosssectional Study was carried out on the selected sample population of customer on . 6.1 Research Design Types of Research Designs used for the study: Descriptive Research : Descriptive Research includes surveys and fact findings enquiries of different kinds. A brief interview using Questionnaire was conducted to find out packaged Milk available and their performance in terms of consumer buying preference and retailers selling preference along with their reason for not stocking AMUL milk and their valuable suggestion for the company (if any) and consumer survey is carried by choosing customer randomly based on geographical cluster.31 - . research was used in order to find out whether AMUL Dairy‘s market share differs between geographical regions and to discover how many competitors AMUL Dairy have in the pimpri-chincwad market. The basic reason for carrying out descriptive research is to identify the cause of something that is happening. For This instance.1.Research is a way of finding new ways at familiar things in order to explore ways of changing it. Formulation of hypothesis may in itself be a topic of research focuses itself on descriptive rather than on casual or experimental aspects.RESEARCH METHODOLOGY Research is a means for gaining knowledge can be carried out either arbitrarily or in systematic fashion is a purpose investigation . Primary data was collected using survey method. Based on the survey observations.

Primary Data for Market Survey is as follows:Total No.the selected routes to understand the Brand distribution of Milk products in pimprichincwad . . of Retailers Total No.32 - .2 Source of data  Primary Data: The data is original in nature and it is collected at first time for a specific purpose is called as ‗Primary Data‘. 6. of Customers 100 100  Secondary Data: Secondary Data was collected form Books and the Internet website mentioned below in bibliography and references.1.

33 - .3 Process of Research:The Process of Research PROBLEM IDENTIFICATION RESEARCH DESIGN DEFINE RESEARCH OBJECTIVES SOURCES OF DATA PRIMARY DATA DATA COLLECTION SECONDARY DATA DATA ANALYSIS AND FINDINGS SUGGESTIONS AND RECOMENDATIONS .5.1.

Retailers Expectations in terms of product and service.III – Collecting the Information:Information was collected from the retailers and also customer survey is carried out to find out customer perception regarding Amul.4 Sample design :- Step – I Defining the problem & Research objectives:Retailer survey and competitive analysis was carried out to study the performance of AMUL packaged milk in the pune city. data interpretation along with suggestions and recommendation for solving the above stated problem. The main objective was to find out the reasons for low quality of Amul milk brand and for which reason it spoil its brand image.1.34 - . Step. Step – II – Developing Research Plan:In order to meet these objectives as structured Questionnaire was developed which concentrated on finding out reason for low performance and a detailed Retailer survey and consumer survey was carried out in Kalewadi area. Amul milk Availability. Step V – Presentation of information:From the above study a brief report was prepared consisting of the analysis of the gathered data. Customer buying preferences. . Step IV – Analysing the information – The Information so gathered was analysed in order to check the Most sold Brands area wise.5.

Milk Customers through cluster sampling for customer survey. 5.selective sampling Selective Sampling Method: .1.7 Method of Data Collection: – 1) Personal contact (Interview) 2) Questionnaire (Interview) 3) Observation . Distributor Retailers and customer Kirana Stores.5. Tea stalls and Sweet Marts in Kalewadi.The Entire Kalewadi area is taken for sampling. 5. of Retail Outlets:  Customer survey: Sample size: 1 100 100 customers  Sample Units Sample Frame – Retailers i. Shop and Suggestions if any for improvement of both product and services associated with it.5 Sample Size – From Retailers & Distributors Total No.1. All Kirana stores and Sweet Marts which stock milk are selected for sampling and surveyed and Personal Interviews of Store owners or Managers was taken to find out the performance of packaged milk in his area. Sweet homes and Tea stall. . Of Distributors : Total No.6 Sampling method Sampling method .35 - .e.1. Kirana Goods retailers.

CHAPTER-7 DATA ANALYSIS AND INTERPRETATIONS .36 - .

2. Amul milk is present at most of the counters as a range mix strategy of shop keepers to keep a low end in terms of price product at their respective counters 3.37 - . Factors Amul Katraj Chitale Gokul Others Total Responses 25 40 15 15 5 100 Percentage 25% 40% 15% 15% 5% 100% 15 15 5 25 Amul Katraj Rajhans Gokul 40 Other Graph 1: Brands Available Interpretation: 1. 5. 1. What are the major brands available in your shop? Sr.DATA ANALYSIS To retailer 1. 2. Most of sweet shop are multi milk brand sales outlet . 3. 4. No. Analysis shows that most retailers are having Katraj milk as first preference and the second preference is Amul milk.

It is one step to excellent. .38 - .2. How you rate the quality of Amul milk? Parameter Bad Good Excellent Total No. of respondents 25 60 15 100 % 25 60 15 100 50 45 40 35 30 25 20 15 10 5 0 Bad Good Excellent Series1 Graph 2: Ratting of quality of Amul milk Interpretation: Analysis shows that most respondents are rating the Amul milk as good.

How is the quality of Amul milk as compare to other brands? Parameters More malai as compare to other brands Less malai as compare to other brands Good taste as compare to other brands Bad taste as compare to other brands Total No.3. .39 - . of respondents 15 35 30 20 100 % 15 35 30 20 100 Series 1 35 30 25 20 15 10 5 0 More malai as compare to other brands Less malai as compare to other brands Good taste as compare to other brands Bad taste as compare to other brands Series 1 Graph 3: Quality of Amul milk as compare to other brands Interpretation: Analysis shows that most respondents says that Amul milk has less malai as compare to other brands but taste good as compare to other brands.

of respondents 58 42 100 % 58 42 100 No. Are the milk delivered at your store? Parameter Yes No Total No. of Respondents Yes No Graph 4: Milk delivered at doorstep Interpretation: Analysis shows that most respondents say that milk delivered at their store but still some respondents are not satisfy with the delivery procedure. .4.40 - .

41 - . And the respondents are not at all satisfied with the distribution channel. If yes who delivered the milk? Parameter Company directly Distributor Whole-seller Buying on own from market Any other Total No. of respondents Company directly Distributor Whole-seller Buying on own from market Any other Graph 5: Who delivers the milk Interpretation: Analysis shows that the respondents delivered the milk by distributor itself but some respondents are buying on own from market. .5. of respondents 3 56 15 23 3 100 % 3 56 15 23 3 100 No.

Interpretation: Analysis shows that company undertakes advertisement as the most preferred sales promotional activity followed by POP displays.6. . coupons and credit facility as the least preferred sales activity.42 - . Do you know which Sales promotional activities does the company undertake for Amul Milk? Factors Price Off Credit facility Coupons Advertisement POP Display Total Responses 20 3 17 33 27 100 Percentage 20% 3% 17% 33% 27% 100% Price off Credit facility Coupons Advertisement P-O-P Displays Graph 6: Sales promotional activity undertake by Amul Milk. While price off.

43 - . And 22% do not prefer to give suggestions to Amul. of respondents Yes No Interpretation: The analysis shows that 78% retailers give suggestions to Amul’s milk and their distributors. Do you want to give some suggestion to Amul’s milk? Parameter Yes No No. . of respondents 78 22 % 78 22 No.7.

of Respondents 25 20 50 5 100 % 25 20 50 5 100 No. of Respondents Katraj Chitale Amul Gokul Graph 1: Most preferred brand Interpretation: Analysis shows that most of the respondents prefer Katraj Brand of dairy products at Kalewadi.TO CUSTOMERS 1.44 - . Which brand do you prefer in buying milk? Parameter Amul Chitale Katraj Gokul Total No. .

of Respondents 55 27 8 10 100 % 55 27 8 10 100 No. of Respondents Quality Taste Price Any other Graph 2: Reasons for preferring the Amul milk Interpretation: Analysis shows that main reason for preferring their brand Milk is its good quality.45 - . . What are the reasons for preferring the above brand? Parameter Quality Taste Price Any other Total No.2.

46 - .3. Are you satisfied with the quality of Amul milk? Parameter yes No No. Interpretation: Analysis shows that most of the old Amul milk customers are satisfied with the Amul milk and would prefer to continue with Amul milk. of Respondents Yes No Graph 3: Satisfied with the quality of Amul milk. of Respondents 55 45 % 55 45 No. .

Why you prefer the Amul milk over other brand? Parameter More malai Less malai Colour Soothing odour Good for children Tea & Coffee Total No.47 - . of Respondents 10 27 3 5 35 20 100 % 10 27 3 5 35 20 100 No. of Respondents More malai Less malai Colour Soothing odour Good for children Tea & Coffee Graph 4: Reasons for Preference of Amul milk Interpretation: Analysis shows that due to less malai it is good for children health that’s why respondents prefer Amul milk.4. .

of Respondents 38 32 10 20 100 % 38 32 12 18 100 Katraj Amul Gokul Chitale Graph 5: Brand preferred if preferred brand is not available.5.48 - . Interpretation: Analysis shows that most of the respondents prefer Katraj brand if brand is not available. . If preferred brand is not available then which other brand you will prefer? Parameter Katraj Amul Gokul Chitale Total No.

What is the colour of your preferred milk brand? Parameter More whitish Less whitish More yellowish Less yellowish Total No. of respondents More whitish Less whitish More yellowish Less yellowish Graph 6: Colour of your preferred brand Interpretation: Analysis shows that most respondents view about the colour of their preferred brand is more whitish and more yellowish.49 - . of respondents 43 7 39 11 100 % 43 7 39 11 100 No. .6.

7. . What is the taste of Amul milk? Parameter Sweet Pungent Total No. of Respondents Sweet Pungent Graph 7: Taste of Amul milk Interpretation: Analysis shows that more than 50% respondents says that Amul milk is sweet in taste. of Respondents 57 43 100 % 57 43 100 No.50 - .

of Respondents 1 Day 2 Days 3 days 4 Days Graph 8: Milk gets sour Interpretation: Analysis shows that most respondents say that Amul milk gets sour within 1 day. After how many days the milk get sour? Parameter 1 Day 2 Days 3 days 4 Days Total No.51 - .of Respondents 67 26 7 0 100 % 67 26 7 0 100 No. .8.

39% respondents says that the milk get sour immediately.52 - . What are the reasons for dissatisfaction with Amul milk? Parameter Bad taste Bad odor Get sour Less thick/fatty More thick/fatty Total No. .9. of respondents Bad taste Bad odour Get sour Less thick/fatty More thick/fatty Graph 9: Reasons for dissatisfaction with Amul milk Interpretation: Analysis shows that most of the respondents are not satisfied with the self-life of Amul milk. of respondents 26 23 39 9 3 100 % 26 23 39 9 3 100 No. Also 26% respondents dislike due to bad taste & 23% due to bad odour.

10. Others reason May that milk is not available in vicinity.53 - . What are the reasons for non-usage of Amul milk? Parameter Never used before Short self-life high price Not available in vicinity Total No.of Respondents Never used before Short self life high price Not available in vicinity Graph 11: Reasons for non-usage of Amul brand Interpretation: Analysis shows that main reason for non-usage of Amul milk is short shelf life. .of Respondents 10 27 7 56 100 % 10 27 7 56 100 No.

54 - .CHAPTER-7 OBSERVATIONS & FINDING .

so dairy products are displayed as major product. Morality and its cooperative success also contribute to the product acceptance by customers at Kalewadi. Chitale. Amul. flex gates would better Amul brand product placement at Kalewadi.  The customer accept for Amul taste it‘s durability and the right value for money is derived due to the product acceptance of Amul milk as it is more than two generation old product. credit facility offering different trade scheme. Gokul are regional brands. Govardhan.  Amul has a sustained brand equity presence on the PAN India scale.  The dairy channel at Kalewadi expect a continuous and sustained delivery frequency also the logistic breakage and demurrages ensures a better channel relation and trust building exercise. FMCG product sector is gaining momentum in Pune prime urban areas and at Kalewadi as well. . The quality of Amul is quite good. Amul milk has good brand equity. Amul. whereas Katraj. the range of the product are complete promotion of Amul brand is also suitably done. Govardhan.55 - . Chitale.  Most of the milk outlet has sweets these local brands of lassi and milk shake. The other promotion activities such as glow signboards.  Katraj has the market share a little bit less than half customers.  The channel strength of dairy products is mostly dependent upon the price acceptability of the retailer and customer.  Amul brand has a sustained taste and the milk delivery at customer door step ensures better quantum billing of Amul at Kalewadi.  The 3 V are the most important value preposition for the acceptance of any consumer products which is good value product are normally sold in good volumes and yields good volumes of revenue and profit generated by the retailers and manufacturer and Amul suits to such value preposition in prime. tastes are moderately maintained in comparison to Katraj and Chitale. Katraj. Pune.OBSERVATIONS AND FINDING  At Kalewadi most of the milk retailers have multi-brand dairy product outlet. Chitale and Katraj are the subsequent accepted brand.  Amul is a PAN India brand. Gokul are the major accepted brand at Kalewadi.

CHAPTER-8 CONCLUSION & SUGGESTIONS .56 - .

the entire organisation provided me with the relevant information which made a good learning experience. .  Amul Dairy should start and implement an online ordering system for its distributers/retailers and consumers.  Lot of people prefers to get home delivery due to convenience. Moreover. This leads to better profit and sale. The Distribution channel should be such that all customers throughout the pune city should receive milk daily.V advertising.  Amul Dairy should not spoil its Brand image by giving Bad Service to customers at its milk parlours. Therefore. There are many customers who have already shifted to Katraj who use to use Amul. Pune.CONCLUSION AND SUGGESTIONS  Katraj brand is favourite among local dairy brands among people in Pune. I really learnt a lot about the esteemed organisation. it is necessary to create Amul Brand’s product spread local people by various means. Lots of retailers have complaints about Amul’s milk. regularly and on time.  Amul Dairy has huge brand advantage of its brand name so it should continue to maintain good brand image in the minds of customer. its sound working culture. actually production of milk.57 - .  Amul Dairy should develop Research and Development (R & D) department for its growth and development in future.  It is necessary to check the quality of Amul milk products.  It is also necessary to increase the shelf life of Amul as quality of milk so that it enhances the sale. Therefore. it was a very nice experience in Amul (GCMMF). To conclude with it. In such situation company should total control on Distributor. its refrigeration equipment’s quality and maintain good quality of milk could only be sold to customers. it is necessary to open more number of milk parlours throughout the city and semi urban area to get more product spread.  Amul Milk and Milk products are not available in close vicinity of all human habitats.  There is need to spend heavily on promotional activities and T. They told Amul’s consumers have shifted to Chitale due to not good services. So it’s s challenge in front of Amul to tackle this situation.

R.com .Amul. Kothari Marketing management - Philip kotler www.58 - .BIBLIOGRAPHY    Research Methodology C.

3. . 4. Katraj.) More malai as compare to other brands. How is the quality of Amul milk as compared to other brands? (Chitale. Retailer questionnaire 1. How much quantity of milk do you sale every day for the following types? a) Cow milk________ l ts b) Buffalo milk______ lts. How much quantity of Amul milk do you sale every day? a) Cow milk________ l ts b) Buffalo milk______ lts. Less malai as compare to other brands Good taste as compared to other brands Bad taste as compare to other brands. Gokul.59 - . What are the major milk brands available in your shop? Amul Katraj Chitale Gokul 2.ANNEXURE 1. How you rate the quality of Amul milk? Bad Good Excellent 5. Govardhan etc.

.......6................................................. If yes please explain..................................................................................................................... 10.... ...................... Do you know which Sales promotional activities does the company undertake for Amul Milk? Price off Credit facility Advertisement free samples Coupons P-O-P Displays 9............. .........................................60 - .................... Are the milk delivered at your store? Yes No 7........................................................................................................................................................................................................... ....................... .......... If yes................................... who delivers the milk? Company directly Buying on own from market Distributor any other Whole seller 8. ... Do you want to give some suggestion to Amul milk? Yes No....

b) Cow________lts. CUSTOMER QUESTIONNAIRE 1. 3. Are you satisfied with the quality of _______milk? Yes No. If preferred brand is not available then which other brand you will prefer? Chitale Amul Gokul Katraj 7. What are the reasons for preferring the above brand? Quality Taste prices any other______. What is the colour of your preferred milk brand? More whitish Less Whitish More yellowish less yellowish . 5.61 - . 4.2. How much quantity of milk do you purchase daily? a) Buffalo_____ lts. Why you prefer the Amul milk over above brand? (Tick multiple options) More malai Good for children Less malai Tea & coffee Colour Soothing odour 6. Which milk brand do you prefer to purchase? Amul chitale Katraj Gokul 2.

........................................ ... What are the reasons for dissatisfaction with Amul milk? Bad taste More thick/fatty Bad odour Get sour Less thick/fatty 11........... Do you want to give suggestion to Amul milk.....................................................................................8................ .....................................................................................................................................................................................62 - .................... What is the taste of Amul milk? Sweet Pungent 9.................. ............. After how many days the milk gets sour? 1 day 2 days 3 days 4 days 10..................... please explain? ................................................................................................................. What are the reasons for non-usage of Amul brand? Never used before Not available in vicinity High price Short self-life 12.................................. .....................................