A MINOR PROJECT REPORT

ON
COMPARATIVE ANALYSIS OF
AMUL CHOCOLATE

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION 2011-14
SUBMITTED BY: SUBMITTED TO:
AMIT KUMAR JAIN MRS. ARTI MALIK
Enrollment no. 03121201711 Assistant Professor
BBA (GEN.) 2nd Shift MSI
IIIrd SEMESTER

MAHARAJA SURAJMAL INSTITUTE

Affiliated to Guru Gobind Singh Indraprastha University (GGSIPU),
C-4, Janakpuri New Delhi-110059
 STUDENT’S DECLARATION

This is to certify that I have completed this Project titled

“Comparative Analysis Of Amul Chocolate” under the
guidance of “MS. ARTI MALIK” in partial fulfillment of
the requirement of the award of degree of Bachelor of
Business Administration at Maharaja Surajmal Institute,
Delhi. This is an original piece of work and I have not
submitted it earlier elsewhere.

Date: 25-10-12 AMIT KUMAR JAIN

Place: NEW DELHI ROLL.NO. 03121201711
 CERTIFICATE FROM THE GUIDE
This is to certify that the project titled “Comparative
analysis of Amul Chocolate” is an academic work done by
“AMIT KUMAR JAIN” submitted in the partial fulfillment of
the requirement for the award of the degree of Bachelor of
Business Administration from Maharaja Surajmal Institute, C-
4, JANAKPURI, Delhi, under my guidance & direction.

Ms. ARTI MALIK

Assistant Professor
MSI
 ACKNOWLEDGEMENT

First of all, I would like to express my thanks to Prof. AZAD. S.

CHHILLAR (Director, MSI) for giving me such a wonderful
opportunity to widen the horizons of my knowledge.

In no small measures, I would also like to gratefully thank to all those

who gave me constructive suggestions for the improvement of all the
aspect related to this project.

In particular, I would like to thank Ms. ARTI MALIK, my research

guide for her valuable suggestions and guidance.

I also owe a deep sense of gratitude to other faculty members for their
continuous encouragement.

Despite all efforts, I have no doubt that error and obscurities remain
that seen to afflict all research project and for which I am culpable.

AMIT KUMAR JAIN

Roll. No.: 03121201711
 Table of CONTENTS

S.NO. TITLE PAGE NO.

1. CHAPTER 1:- 1
INTRODUCTION 2
OBJECTIVES OF THE STUDY 6
RESEARCH METHADOLOGY 7
LIMITATIONS OF THE STUDY 15

2. CHAPTER 2:- 16
PROFILE OF THE ORGANISATION 17

3. CHAPTER 3:- 29
ANALYSIS AND INTERPRETATION 32

4. CHAPTER 4:- 52
RECOMMENDATIONS 53
CONCLUSION 55

5. BIBLIOGRAPHY 56

6. ANNEXURE -
 PREFACE

The AMUL model is based on strong economic logic for the existence of each tier, meaning
each higher tier must generate sufficient value to the satisfaction of its immediate lower tier.
Interlocking system of control and ownership ensures that this logic is never lost of sight the
owners of AMUL - namely, the farmers have ensured that the organization never loses its
independence and autonomy, and that no internal or external stakeholder can take me system
for a ride. In order to protect and promote the farmers' interests, AMUL has been always
engaged in lobbying activities. Its initiatives in countering the evil effects of WTO, in the
passing of Parallel Cooperatives Act in several states, in bringing out the Co-operative
Company's Act at the center are only some of the recent examples. By setting standards in the
market place in terms of product quality and its price, AMUL has become the natural market
leader in its areas of functioning and won the hearts or all Indians. By its organizational
design and strategies, AMUL has rediscovered the model of a new-generation producer
cooperative in India, which is different from its traditional form in assigning the right kind of
incentives to the shareholders. In terms of forward linkages, however, AMUL approximates a
Japanese Keiretsu, wherein the different stakeholders join hands with each other to maximize
the value of the enterprise.

By its pricing and quality strategies, AMUL is always striking a balance between the interests
of the consumer with those of its producers. Because of Its larger appeal, AMUL has truly
symbo.l1zed the real 'Taste of India. Its innovative advertisements have further reinforced its
competitive power and appeal. Professional management. Of AMUL, which is always
accountable to the members, has ensured excellent economic and financial management of it
federation, the GCMMF.

Probably the most important component of AMUL‟s success is its visionary and dedicated
leadership, which has spent its private resources not only to solve free rider's problem at
every stage of collective action but also to protect the organization from predatory attacks
from the external environment.
 CHAPTER 1

INTRODUCTION

1
 INTRODUCTION

OVERVIEW OF CHOCOLATE INDUSTRY

The vital statistics of the confectionery segment seem more promising than the
conventional FMCG categories such as toilet soaps or detergents. While toilet soaps and
detergents already reach over 90 per cent of the households, both chocolate and sugar
confectioneries have abysmally low penetration levels.

ORG-MARG estimates suggest that chocolates penetrated just five per cent of the
Indian households in 2000. On the other hand, sugar-boiled confectionery reaches 15 per cent
of the households, leaving ample room for growth. Even considering the urban market alone,
the category reaches just 22 per cent of the urban consumers.

This category, therefore, has considerable potential to grow before it reaches

saturation point -- as have traditional FMCG products such as soaps and detergents.
Chocolates and sugar-boiled confectionery boast of even lower penetration levels than
biscuits, which reach 56 per cent of the households.

The Indian confectionery market is segmented into sugar-boiled confectionery,

chocolates, mints and chewing gums. Sugar-boiled confectionery, consisting of hard-boiled
candy, toffees and other sugar-based candies, is the largest of the segments and valued at
around Rs 2,000 crore. Nutrine Confectionery and Parry Confectionery dominate the
organized segment, apart from the Indian arms of MNCs such as Perfetti India and Warner
Lambert.

2
 Cadbury India and Nestle India also made a foray into this segment five years ago and
have a small presence. Chocolates make up a 22,500-tonne market, which is valued at Rs 400
crore and dominated mainly by listed players Cadbury India and Nestle India. But slipping
volumes however, despite its unmistakable potential, the major players in the confectionery
industry have not fared too well in recent times in terms of sales growth. Take the chocolate
segment. Cadbury India, which derives nearly 76 per cent of its revenues from chocolates and
sugar confectionery, has seen its top line growth wind down from 19 per cent in 1999 to 12
percent in 2000 and further to 7 per cent in the first six months of 2001. Nestle India has
managed to report healthier sales and profit growth, but this is more on account of the
contribution from milk, coffee and culinary products rather than sugar or chocolate
confectionery.

The only listed player in sugar-boiled confectionery has not done too well either.
Parrys Confectionery, a leading player in sugar-boiled confectionery, has reported shrinking
sales volumes in 1998-99 and 1999-2000, after robust financial performance in earlier years.

Screeching to a halt these top line numbers only reflect the ground realities. Industry
sources estimate that the 22,500-tonne chocolate market, which grew at a robust 12 per cent
per annum until 2000, grew by just three per cent in that year.

Several factors appear to behind this slowdown. As with all other FMCG products,
the demand for confectionery products appears to have been hit by the economic slowdown
and the consequent shrinkage in consumer spending. Confectionery products are impulse
foods and thus appear to have borne the brunt of a cutback in consumer spending over the
past couple of years, while staple foods have continued to exhibit healthy growth rates.

This is evident from ORG-MARG figures, which suggest that the annual per capita
consumption of chocolates actually fell from 312 grams in 1999 to 307 grams in 2000, while
that for sugar boiled confectionery fell from 621 grams to 579 grams (source: ORG-MARG
Milestone Papers: The Growth Inertia). Branded staples such as atta and salt registered a
healthy increase in per capita consumption over this period.

3
No price hikes

Despite fairly aggressive promotional efforts by marketers, the overall penetration

level for chocolates registered no increase between 1999 and 2000.

Consumption of chocolates could have been impacted by the selling price increases
that marketers affected between 1999 and 2000. In 1999 and 2000, selling prices of key
chocolate brands were pegged up by 5-15 per cent, partly reflecting a spike in cocoa prices in
that period. This probably contributed to the sales growth for the year.

However, with cocoa prices falling sharply in the second half of 2000, marketers were
forced to maintain selling prices of most products, holding back value growth in sales.
Cadbury India, the market leader in the chocolate segment (market share 71.9 per cent) saw
the growth in its chocolate portfolio slow to 6 per cent in the April 2000 to April 2001 period,
from nine per cent the previous year. This was mainly due to the healthy double-digit growth
rates in its flagship brand -- Cadbury's Dairy Milk. Brands such as 5 Star and Perk stagnated
in 2000-01.

Nestle India's chocolate portfolio (comprising of Kit Kat, Munch and Charge
commanding a total market share of 24.7 per cent) slowed even more dramatically,
registering less than one per cent growth between April 2000 and April 2001. Though
Nestlé‟s recent launch, Munch, has been a success, the low-priced brand has moderated the
value growth in Nestlé‟s portfolio. Wooing adults now The avenue for growth appears to lie
in taking advantage of the low penetration level for chocolates by roping in new consumers.
The chocolate majors attempted to do this by repositioning chocolate, earlier targeted at
children, as a snack food for adults. Cadbury's chocolate-coated wafer Perk and Nestlé‟s
Charge and Munch were essentially sold on this platform.

Though products such as Perk did succeed initially (Cadbury India claims to have
added eight million new consumers in 2000), growth in this segment appears to be petering
out. Both Perk and Kit Kat (the chocolate-coated wafer which is central to Nestlé‟s chocolate
portfolio), have shown signs of stagnation in 2001, actually reporting negative growth rates
for a few of the months.

4
 Banking on smaller editions Of late, the chocolate majors have been rejigging their
products to launch chocolates in the Rs 10 and Rs 5 price points. Mimicking the trend in
other FMCG products, the chocolate majors have been relaunching their conventional
chocolate brands in smaller unit packs, hoping that this will prompt more frequent purchases
and pep up volume growth.

It is early days yet to judge if this has indeed pepped up volume growth in the
segment. However, the chocolate majors do not have much to lose. Unlike the low unit pack
versions of products such as shampoos, the low unit packs of chocolates do not cost less on a
per gram basis than their normal versions.

In most cases, the gram age offered under the low priced packs, has been brought
down in the same proportion as the price, leaving realizations for the chocolate majors
untouched.

5
 OBJECTIVES OF THE STUDY

The primary objective would be:-

 To conduct a comparative analysis of Amul Chocolate vis-à-vis its competitors.

The other objectives would be:-

 To compare Amul Chocolate with its competitors in terms of sales figure.

 To make an analysis of the shortcomings of Amul Chocolate compared to its
competitors.

Finally to conclude the findings and suggest the necessary corrective measures and
recommendations for improving the market position of Amul Chocolate.

6
 RESEARCH METHODOLOGY

Significance

Any Research has its own importance in any business organization. The
research shows the real fact about product as well as organization. Research is a systematic
and scientific investigation of any idea either precise or abstract from a continuous
basis for learning , it could be either exploratory or descriptive.

According to above definition research is a systematic and scientific

investigation through which any organization try to find out its strength and weakness
as well as opportunity and threat. As we know in the present era the business activities
have become more complex and complicated due to modern technology , globalization
and liberalization and in other hand today customer are highly conscious about
products and brand .

In recent time customers are not blind follower of a product. They are giving high
priority to all feature like price, quality, innovative features etc. But after all this features
brand becomes the inevitable parts of any product because it gives the complete identification
of product so it is also the one most important part.

My research work is highly focused on this issue, which is important for me as

well as the organization. During research work I learnt retailer‟s opinion about product and
services.

I learnt which factors affect the retailer to sale an individual product, this research gives
me insight to understand the retailers problem as well their area of interest , in this I got
the great experience about the market

For company point of view I tried to find the serious drawback, which is
highly, affected the sale of chocolates. I tried to find market share of Amul chocolate
which is itself important .I tried to find the sale figure of Amul chocolate in term of
rupees, due to some hurdle I don‟t claim my research work is 100% accurate because
so many factors was uncontrolled during the project .I tried to finish my research with
100% accuracy which is best available in market .

7
 So it is my strong believe that my research work is significant in all manners.
This research is helpful for organization, retailers as well as consumer.

Managerial usefulness of the study

The research is a systematic investigation of any idea. The research is widely used in the
business world for analyzing & evaluation business policy as well as the analyzing &
evaluates competitor‟s activity and policy. The research is itself valuable. The research gives
fact and figure, which is useful in planning.

As it is obvious any business activity is based on to the 4 P‟s of marketing viz.

price, product, promotion, place all these P‟s have its own importance and all are inter-related
with each other but most importantly all the factor are independent in the nature. In any
organization all factors are carefully formulated to gain a success in the market. It is very
important for business analyst to evaluate the modern trend and market position. In the other
hand it is vital for business operation to know the need and desire of customer. All the
necessary information is received from market by research work.

The study reveals many facts that have come up during my project and these facts can either
be used as opportunities in exploring and expanding the business as well as can be used as
safeguards against threats by the competitions. To prepare an effective marketing strategy a
company must study it s competitors as well as its actual and potential retailer. A company
should maintain good relation with their distributors and retailers keeping in view
competitive orientation in today‟s global market. Company should neither put much emphasis
on competitors positioning nor should it solely concentrate on its own products and policy.
Rather it should find midway between these two extremes and adopt flexible policy.
Companies should manage a good balance of declares retailer , consumer & competitors
monitoring .

The information will prove beneficial in taking proactive action for combating competition
.the standing of the company and its competitors in the mind off the retailer in a vital factor in
deciding the success of business the study also aims at finding out the market share in term of
their sale, product penetration demand etc which is adjusted by retailer. This information is

8
good guide to management as it brings out the strength of the competition their product
penetration, product demand their promotion policy, which gives a overview where the
company needs to improve. This study basically aimed at providing the management desired
vital information about the market situation.

There say due to immerse competition in India‟s fast moving consumer goods
market my work on GCMMF Ltd. And consumer behavior can be useful in following ways :-

 It can be useful for adopting the proper marketing mix in respect of type of chocolate,
distribution pattern, and market share.
 It can be useful to understand the consumer perception which is very vital for product
mix as well as promotion mix.

SCOPE OF THE STUDY

The present study is the study on GUJARAT COOPERATIVE MILK

MARKETING FEDERATION LIMITED, one of the India‟ largest food production
marketing organization, which is a state level apex body of milk cooperative in Gujarat. From
the study one can easily infer the present market position of Amul chocolate with its leading
competitors.

The study is designed and focused primarily on identifying the present market position of the
Amul chocolate. It also includes identification of its core competitors and enhancing efforts
towards brand repositioning in present and in future.

METHODOLOGY

Marketing research is the process collecting and analyzing marketing information and
ultimately arrived at certain conclusion Management in any organization need information
about potential marketing plans and to change in the market place. Marketing research
includes all the activities that enable an organization to obtain the information. This research
is very important in strategy formation and feed back of any organizational plan.

9
There are many type of research some are conceptual, empirical, descriptive, explorative etc.
each research type is being used for various purpose. In this research I have used descriptive
research, I try to describe what are the factors, which affect the business plan of AMUL‟S
Chocolate.

Research design is the plan, structure and strategy of investigation conceived so as to

obtained to research problem and control variances. It is the specification of methods and
procedures for acquiring the information needed. It is overall operational pattern or
framework of the project that stipulated what information is to be collected and from which
source and by what procedure.

RESEARCH DESIGN

Different types of research design have emerged on account of the different

perspectives from which a research study can be viewed. There are three fundamental
categories that we used frequently are given below.

1. EXPOLETARY RESEACH: - In the case of exploratory research, the focus is on the

discovery of ideas. An exploratory study is generally based on the secondary data that
are readily available. It does not have formal and rigid as the researcher may have to
change his focus or direction, depending on new idea and relationships among
variables. An exploratory research is in nature of a preliminary investigation.
2. DISCRIPTIVE RESEARCH: - The objective of such a study is to answer the “who,
what, when, where and how.” Of the subject under investigation, descriptive studies
are well structured and tend to be rigid and its approach cannot be changed every now
and then. It is therefore, necessary that the researcher
give sufficient thought to farming research question and deciding the types of data to
be collected and procedure to be used for this purpose.
3. CAUSAL RESEARCH: - A causal research investigates is cause and effect
relationship between two or more variables. The causal research design is based on
reason along well-tested line. We use inductive logic for confirming hypothesis with
the help of future evidence.

10
TYPE OF RESEARCH CARRIED OUT: -

In my project work I used exploratory research, as it aim to answering question about

sale, brand availability, service quality, distribution pattern etc.

DATA COLLECTION:-

To achieve the objectives, the primary as well as secondary source of data is used. Primary
source includes the retailers and company‟s officials through questionnaires.

Secondary source of data includes the past records of company.

The data were collected through the following methodical techniques in the
present project work.

1. Through questionnaires
2. Through interview
3. Through observation

DATA SOURCES

 PRIMARY DATA
 SECONDARY DATA

PRIMARY DATA:-

Primary data is that kind of data which is collected by the investigator himself for the
purpose of the specific study. The data such collected is original in character. The advantage
of third method of collection is the authenticity. A set of question s was put together in the
form of questionnaire with. Question. The method of sampling was the random method as it
is unbiased.

SECONDARY DATA:-

When an investigator uses the data that has been already collected by others is called
secondary data. The secondary data could be collected from Journals, Reports and Various
Publications. The advantages of secondary data can be economical, both in the term of money
11
and time spent. The researcher of the reporter also did the same and collected secondary from
various Internet sites like Google.com.altavista.com and many more. The researchers of the
reporter also visited various libraries for collection of the introduction part.

QUESTIONNAIRES DESIGN: -

Questionnaires consist of question printed or type in definite order on a form

or set of form. It was questionnaire format firms tested on small sample then was modified
and developed according to the environmental situation and other affecting factors. Each
questionnaire is framed with systematic and modern technique to make useful in achieving
the objectives up to a maximum possible limit.

There are two types of questionnaires, the first one is standard questionnaire
and the second is un-standard questionnaire. The authority or expert sets the standard
questionnaire. In the other hand un-structured questionnaire is set according to objective of
the study by researcher.

In this research work I used un-structured questionnaire with my best ability

and under the guidance of my institutes faculties and the project guide of the organization.

After floor acing the questionnaire, the respondents (retailers and customers)
were personally contacted. Each respondent was requested to answers the question with
appropriate answer genuinely. All the questions were made very clear to them. The
questionnaires were duly filled with the responses of all the respondents in the current project
work.

INTERVIEW METHOD: -

There is a fact to face interaction with most of the samples they were directly
questioned and according personal and professional problem were collected from them for
question are asked to the responded to flourish the questionnaire effectively and efficiently.
In this project work I have made interview with almost respondent to know some extra data
or fact, which was used in this project work. After using this method I tried to find the
competitors policy and there strength after this method I was able to conclude all facts with
competitor‟s point of view.

12
OBSERVATION METHOD: -

During the project work, I contact the retailers and consumers particularly and
find their opinion about the Amul Chocolate.

In the observation method the research himself collects necessary information‟s by observing
the phenomena under this method. Observation may be conducted on in the natural field or in
the form of experiment.

After observation the data carefully noted in the questionnaire format. I used uncontrolled
observation in this observation takes place in the natural setting. Retailer and customer are
free to express their felling about the product and the company. The observation method give
me an idea about the satisfaction level of customer and retailer in the other hand there
precious knowledge about the market situation make me understand the business difficulties
which help me a lot to carry out my project in a significant and effective manner.

SAMPLE DESIGN

SAMPLE DESIGN: - The sampling designs are mainly of two types non-probability
sample designs and probability sample design.

 RANDOM SAMPLING: - a random sample gives every unit of population a

known and non-probability of being selected. Since random sampling implies
equal probability to every unit in the population; it is necessary that the selection
of the sample must be free from human judgment.
 SYSTEMATIC SAMPLING: - In this method first a sampling fraction is
calculated as N/n where N is total no. of units in the population and “n” is the size
of sample..
 STRATIFIED RANDOM SAMPLING: - A stratified random sampling is divided
into mutually exclusive and mutually exhaustive strata or sub group and then a
simple random sample is selected with in each of the strata or sub group.
 CLUSTER SAMPLING: - cluster sampling implies that instead of selecting
individual units from the population entire groups or clusters are selected random.

13
  QUOTA SAMPLING: - quota sampling involves the fixation of certain quotas,
which are to be fulfilled by the interviewers, since quota sampling is not based on
random selection it is not possible to calculate estimates of standard errors for the
sample result.
 JUDGEMENTAL SAMPLING:- the main characteristics of judgmental sampling
is that units or elements of the population are purposely selected it is because of
this that judgment samples are also called purposive samples. Since the process of
judgmental sampling is not based on random sampling it is also called non-
probability sampling.

DATA COLLECTION

 Data collection from retailers of different areas viz. south Delhi, North Delhi, East
Delhi, West Delhi and Central Delhi
 Sample size of retailers covered 250
 Sample size of customer 100
 Other information related to project has been taken from company website

14
 LIMITATIONS OF THE STUDY

Although all efforts were taken to make the result of survey as accurate as possible
the survey had the following constraints:

 Retailers are not willing to give answers of the questions due to their busy schedules.
 Retailers hide the facts especially in the sales figure.
 A few retailers were not cooperating during the project survey. It was quite difficult to
collect necessary data.
 Due to the time constraint and other imperative workload during the training period it
could not be made possible to explore more areas of concern pertaining to project
study.
 The employees of Amul India limited were very hesitant and reluctant to give all
information which was vital for my project work because some information were
confidential in nature.

15
 CHAPTER 2

PROFILE OF THE ORGANISATION

16
 PROFILE OF THE COMPANY

ABOUT THE COMPANY

Thirty years ago the milk producers of Gujarat had come together and decided to
create their own organization to enhance the marketing capacity of the dairy Co-operative
milk marketing federation Limited (GCMMF Ltd.). Mr. V. Kurien was the founder of this co-
operative society and this society had been formed in a small village of Gujarat named
Anand.

Gujarat Cooperative Milk Marketing Federation (GCMMF Ltd) is a India‟s largest

food product marketing organization. It is a state level apex body of milk cooperative in
Gujarat, which aims to provide remunerative return to the farmers and also serve the interest
of consumers by providing quality products, which are good value for money.

Member 12 district cooperative milk producer‟s

union

No. of Producer Member: 2.36 million

No. of Village Societies : 11.333

Total Milk handling capacity 6.9 million liters per day

Milk collection (Total-2009-2010) 1.81 billion liters

Milk collection (Daily Average 2009- 4.97 million liters

2010)

Milk Drying Capacity: 511 metric Tons per day

Cattel feed manufacturing Capacity: 2340 Mitts per day

17
AMUL’S HISTORY

Amul birth is indelibly linked to the freedom movement in India. It was Sardar Vallabhbhai
Patel who said that if the farmers of India are to get economic freedom then they must get out
of the clutches of the „middlemen‟. The first Amul cooperative was the result of a farmers‟
meeting in Samarkha (Kaira district, Gujarat) on 4 January 1946, called by Morarji Desai
under the advice from Sardar Vallabhai Patel, to fight rapacious milk contractors. It was
Sardar‟s vision to organize farmers, to have them gain control over production, procurement
and marketing by entrusting the task of managing these to qualified professionals, thereby
eliminating the middlemen, the bane in farmers‟ prosperity.

The decision was taken that day in January 1946. Milk producers‟ cooperatives in villages,
federated into a district union, and should alone handle the sale of milk from Kaira the
government run Bombay Milk Scheme. This was the origin of the Anand pattern of
cooperatives. The colonial government refused to deal with the cooperative. The farmers
called a milk strike. After fifteen days the government capitulated. This was the beginning if
„Kaira District Cooperative Milk Producers‟ Union Ltd., Anand registered on 14 December
1946. Mr. V.Kurien was the founder of this cooperative society. This society had been
formed in a small village of Gujarat named Anand.

Originally the Anand pattern included dairy cooperative societies at the level. Inspired by the
Kaira Union, similar milk unions came up in the other districts too. In 1973, in order to
market their product more effectively and economically, they formed the GCMMF Ltd.
GCMMF become the sole marketer of the original range of Amul products including milk
powder and butter. That range has since grown to include ice cream, ghee, cheese,
chocolates, shrikhand, paneer, and so on. These products have made Amul a leading food
brand in India.

The brand name AMUL, has taken from the Sanskrit Amoolya, meaning priceless, was
suggested by a quality control expert in Anand. The first products with the Amul brand name
were launched in 1955. Since then, they have been in use in millions of home in all parts of
India and beyond. Today Amul is a symbol of many things: of high quality products sold at
reasonable price, availability, and service. Amul is the brand name of two million farmers,
members of 10,000 village dairy cooperative societies throughout Gujarat. This is the heart of
Amul; it vis what is so special about the Amul saga. Amul in 1946 was really an effort to
18
carve out a truly Indian company that would have the involvement of millions of Indians and
place direct control in the hands of the farmers. It was a mandate for producing, owning and
marketing and above all, building your own truly Indian Brand. Amuls‟s birth was thus a
harbinger of the economic independence of our farmer brethren. Today, 173 milk producers‟
cooperative unions and 22 federations play a major role in meeting the demand for packed
milk and milk products. Quality packed milk is now available is more than 1,000 cities
throughout the length and breadth of India. Amul, therefore, is a brand with a difference. That
difference manifests itself in a larger than life purpose. The purpose – freedom to farmers by
giving total control over procurement, production and marketing.

RANGE OF THE PRODUCT

Bread spreads:

 Amul Butter

 Amul Lite Low Fat Bread spread

 Amul Cooking Butter

Cheese Range:

 Amul Pasteurized Processed Cheddar Cheese

 Amul processed Cheese Spread

 Amul Pizza (Mozzarella) Cheese

 Amul Shredded Pizza cheese

 Amul Emmental Cheese

 Amul Gouda cheese

 Amul malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned

19
  Utterly Delicious Pizza

Curd Products:

 Yogi Sweetened Flavored Dahi (Dessert)

 Amul masti Dahi (Fresh cured)

 Amul Butter Milk

 Amul lassee

Milk Drink: Amul cool flavored Milk

 Amul Cool Kesar

 Amul Cool Elachi

 Amul Cool Coffee

 Amul Cool Rose

 Amul Cool Strawberry

 Amul Cool Mango

Health Beverage:

 Amul Shakti White Food

Mithaee Range (Ethnic Sweets):

 Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

 Amul Amrakhand

 Amul Mithaee Gulabjamuns

20
  Amul Mithaee Gulabjamuns Mix

 Amul Mithaee Kulfi Mix

 Avsar Ladoos

UHT Milk Range:

 Amul Shakti 3% fat Milk

 Amul taaza 1.5% fat Milk

 Amul Gold 4.5% fat Milk

 Amul Lite Slim & Trim Milk 0% fat Milk

 Amul Shakti Toned Milk

 Amul Fresh Cream

 Amul Snowcap Softy Mix

Chocolate & Confectionery:

 Amul Milk Chocolate

 Almond Bar

 Chocozoo

21
Milk Powder:

 Amul Full Cream Milk Powder

 Amulya Dairy Whitener

 Sagar Skimmed Milk Powder

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

22
 PRODUCT SPECIFICATION

Composition:

 Milk Fat 2%

 Sugar 55%

 Total Fat 32.33%

 (Milk Fat + Cocoa Fat)

 Cocoa Solids 7.5%

 Milk Solids 20%

23
ORGANIZATIONAL STRUCTURE

BOARD OF DIRECTOR

MANAGING DIRECTOR

CHIEF GENERAL MANAGER

GENERAL MANAGER

ASSISTANT GENERAL MANAGER

EXECUTIVE

DEPUTY EXECUTIVE

ASSISTANT EXECUTIVE

SENIOR EXECUTIVE

JUNIOR EXECUTIVE

FIELD SALES REPRESENTATION

24
DISTRIBUTION CHANNEL

MEMBER UNION (PLANT)

DEPOT GODOWN

DISTRIBUTOR

RETAILERS

CONSUMER

25
 PROBLEM OF THE ORGANISATION

It is not a hidden fact that the amul has its own image or brand, which shows the value
of money for its product. The AMUL‟S have a great product line and depth. AMUL‟S
products are Amul Butter, Amul Cheese Amul confectionery, Amul Flavored Milk and
Pasteurized milk, Dahi, Lashi, Ice-cream,etc.

If we give a overall look on the all market position of AMUL‟S product almost all
product have a great market share in other hand all product are market leader with their
greater sales volume and high turnover, for example AMUL Butter, AMUL Flavored milk,
AMUL Mozerella cheese.

But in case of AMUL Chocolate the position of AMUL is not satisfactory. It is

generally consider AMUL is in the 3rd position after CADBURY and NESTLE. Both the
company has separate distribution channel for chocolate, they are giving high priority to
confectionery products. They are providing easy replacement, high penetration, and regular
visit to retailers shop. Most importantly they are providing cool storage equipment to their
retailers and they positioning their product through heavy advertisement campaign.

Recently the AMUL Chocolate is re-lunched in market but the position remains same,
which is very critical for the company. After re-lunched, the sale volume and customer
awareness about the all chocolate products remain unsatisfactory, which create harsh
situation for all organization. Companies highly willing to excel in the chocolate field there
are some problem, which is adversely influence the organization.

There are some problems, which is as follows: -

 Competitors position in market

 Vast distribution channel which deals almost all product

 Replacement

 Retailer satisfaction level

 Awareness about the product

26
 COMPETITORS’ INFORMATION

 Cadbury

Cadbury dominates the Indian chocolate market with a 65% market share. Besides, it
has a 10% market share in the organized sugar confectionery market and a 25%
market share in milk/ malted foods segment.

 Nestle

Nestle at about 23% market share

27
 CHAPTER 3

ANALYSIS AND INTERPRETATION OF DATA

28
S.W.O.T ANALYSIS

STRENGTH:-

 Amul has a brand image.

 It has a high quality.

 It has a great purity.

 It has a pool of dedicated and hardworking workforce.

 Experienced market player.

WEAKNESS: -

 Company does not provide credit to retailers Company.

 Company has no proper promotion strategy.

 Complex replacement procedure.

 Fewer margins to retailers.

 There is Lack of availability.

 Distribution is not up to the mark in every area.

 Lack of salesmen and distributor in some areas in Delhi.

 There is a problem with storage of Amul Chocolate

29
OPPORTUNITY: -

 Providing the replacement offer to retailers can increase Sale.

 Increase in retailer margin can enhance the sale of Amul Chocolate.

 Focused approach towards small market can also increase the sale of Amul Chocolate.

 New schemes can be provided to the retailers to attract them to push the sale of Amul
Chocolate.

 Regular supply can be easily compete the competitors and increase its own sale.

THREATS: -

 More competitors are entering in the market.

 Competitors are providing more margins to retailers.

 Competitors also giving replacement facility to retailers.

 Competitors providing regular supply and strong distribution channel.

 Competitors also reaching to small market.

30
 DATA ANALYSIS OF CUSTOMER QUESTIONNIERS

MOST POPULAR KIND OF CHOCOLATE

9% 8%

17%
Canndy
Bar
Toffey
All

66%

Fig.1

Interpretation:-

The red colour segment in the pie chart indicates the most popular bar, which is consumed by
the consumer with 66 %. The yellow color segment shows that toffee is the second most
popular chocolate, which is consumed with 17 % with the consumers. The blue colour
segment indicates candy, which is liked by people with 08 %. The last green segment
indicates that only 09 % people like all the chocolates.

31
 CUSTOMER PERCEPTION WHILE PURCHASING

30%

Flavour
Gift
66%
4% Both

Fig. 2

Interpretation:-

The customers while purchasing the chocolates have different prefences, as shown in the pie
chart the blue segment shows that 66 % of the customers purchases chocolates with their
preferred flavors. The red segment shows that only 04 % of the customers prefer gifts as
chocolates. The yellow segment shows that 30 % of the customers prefer both the flavors and
gift while purchasing chocolates.

32
 TIME FOR CHOCOLATE
4%

8%

After meal
Party/Birthday
Any Time
88%

Fig. 3

Interpretation:-

There are various time periods where the demand changes for the chocolates. The yellow
segment of the chart with 88 % shows that the customers prefer chocolates at any time. The
red segment shows that 08 % of the customers like chocolates during parties or birthdays.
The blue segment indicates that only 04 % of the customers like chocolates after their meals.

33
 FLAVOUR PREFERANCE
2% Milky
6%
Coffee
8% 22%
Fruit-n-Nut
12% Milky+Coffe
2% 26% Milky+Fruit-n-Nut
22% Coffee+Fruit-n-Nut

All

Other

Fig. 4

Interpretation:-

This analysis shows the demand of the chocolate with the preferred flavors. According to the
survey 22 % of the customers prefer milky flavor, 26 % of the customers prefer coffee flavor,
22% of the customers like the fruit n nut flavour, 2% of the customers like the milky And
coffee flavor, 12 % of the customers kike milky and fruit n nut flavour, 8% prefer coffee and
fruit n nut flavour,2% of the customers like all the flavors, and only 6% of the customers
prefer other flavors.

34
 FIRST PREFERANCE OF CHOCOLATE

13% 5% 15%
Amul
Cadbury
Nestle
Other
67%

Fig. 5

Interpretation:-

The customers have different first preference of chocolate. The red shows that 66% of the
customers prefer Cadbury as their first preference, the blue shows that 15% of the customers
prefer amul as the first preference, the yellow shows that 13% like nestle as their first
preference, and only 6% customers prefer other as their first preference.

35
 SECOND PREFERANCE OF
CHOCOLATE

Amul
20% 14%
Cadbury
28% 38%
Nestle
Other

Fig. 6

Interpretation:-

This survey shows that 38% of the customers prefer Cadbury as their second preference, 28%
customers prefer nestle as their second preference, 20% of the customers prefer amul as their
second preference, and 14% of the customers prefer others as a second preference.

36
 WEEKLY PURCHASE(IN RS/-)

10%

20% Below Rs/- 50

70% Rs/- 50 -100
Above Rs/- 100

Fig. 7

Interpretation:-

This analysis shows the purchasing power of the customers in a week. This shows that.70%
customers spend Rs. 50 on chocolate, 20% customers spend Rs 50-100 on chocolate, 10%of
the customers spend above Rs. 50 on chocolate.

37
 AWARENESS OF AMUL CHOCOLATE IN
CUSTOMER

5%
10%
4%

Amul Milk Chocolate

23% 58%
Almond Bar
Bindaaz
Fundoo
Chocozoo

Fig. 8

Interpretation

This analysis shows that 58% of the customers are all well aware about the amul milk
chocolates. 23% customers are well aware about the almond bar.10% customers are well
aware about the chocozoo, 5% customers are well aware about the fundoo, 4% customers are
aware about the bindaz.

38
 DATA ANALYSIS OF RETAILER’S

Penetration of Chocolate
120

100 96 94 95 98
92
85
82 80
Percentage of Retailer

80
70 71 72
68
64 65
60 North Delhi
52
south Delhi
East delhi
40
West Delhi
Central Delhi

20

0
Company Name

Fig. 9

Interpretation:

This is a survey which is conducted for the retailers .it shows that 92-98% customers sells
Cadbury chocolate,70-85% customers sells nestle chocolate,52-72% customers seels amul
chocolate

39
 Penetration of Amul Chocolate

120

9997 98
100 92
89

80 North Delhi
Percentage

south Delhi
60
60 53 East delhi
50
Wes Delhi
4038 40 42 40
38 38
40 35 35 Central Delhi
30
23
20
20 13 15
10 12
7

0
Milk Almond bar Bindaaz Chocozoo Fundoo
Chocolate

Items

Fig. 10

Interpretation:-

This survey is conducted for the penetration of amul chocolates. it shows that 89-99%
customers are well aware about the milk chocolate,10-40% customers are well aware about
the almond bar,7_50% of the customers are well aware about the chocozoo,15-60%
customers are well aware about the fun doo.

40
 Procurment of Amul Chocolate(East Delhi )

29%
48% Distributor
WholeSaler
23%
Both

Fig. 11

Interpretation:-

This survey is done on the various parts of Delhi this is about the east Delhi. It shows that
procurement of amul chocolate through distributor in east Delhi is 29%, procurement of
amul chocolate through wholesaler in east Delhi is 23%, procurement of amul chocolate
through distributor and wholesaler in east Delhi is 48%.

41
 Procurment of Amul Chocolate (North Delhi)

17%
Distributor
13%
70% WholeSaler
Both

Fig.12

Interpretation:-

This survey is done in the north side of the Delhi .it shows that the retailer procure 70%
amul chocolate from distributor in north Delhi, retailer procure 13% amul chocolate from
wholesalers in north Delhi, retailer procure 17% amul chocolate from distributor and
wholesaler in north Delhi.

42
 Procurment of Amul Chocolate(South Delhi)

19%
9% Distributor

72% WholeSaler
Both

Fig. 13

Interpretation:-

.This survey is conducted in south Delhi. it shows that retailers procure 72% amul chocolate
from distributor in south Delhi, retailer procure 9% amul chocolate from who; sealer in south
Delhi, retailer procure 19% amul chocolate from distributor and wholesaler in south Delhi.

43
 Procurment of Amul Chocolate(West Delhi)

17% 31% Distributor

52% WholeSaler
Both

Fig. 14

Interpretation:-

.This survey shows that retailers procure 31% amul chocolate from distributors in west
delhi,retailer procure 52% amul chocolate from wholesalers in west Delhi, retailer procure
17% amul chocolate from distributor and wholesaler in west Delhi.

44
 Procurment of Amul Chocolate(Central Delhi)

27%
47% Distributor
WholeSaler
26%
Both

Fig. 15

Interpretation:-

.This survey shows that retailers procure 27% amul chocolate from distributor in central
Delhi, retailer procure 26% amul chocolate from wholesalers in central Delhi, retailer procure
47% amul chocolate from distributor and wholesaler in central Delhi.

45
 Demand of Chocolate(Entire Delhi)

11%
Cadbury
27%
62% Nestle
Amul

Fig. 16

Interpretation:-

This survey is conducted for the demand of the amul chocolates. It shows that demand of
Cadbury chocolate in entire Delhi is about 62%,demand of nestle chocolate in entire de3lhi is
about 27%,demand of amul chocolate in entire Delhi is about 11%

46
 Weekly Sale of Chocolate(North Delhi)

12%
17% Cadbury

71% Nestle
Amul

Fig. 17

Interpretation:-

This survey shows the weekly sales of chocolates in north Delhi. weekly sales of Cadbury in
north Delhi is about 71% weekly sales of nestle in north Delhi is about 17%,weekly sales of
amul is about 12%.

47
 Weekly Sale of Chocolate(South Delhi)

20% Cadbury
Nestle
52% Amul
28%

Fig. 18

Interpretation:-

This shows weekly sales of chocolates in south Delhi. It shows that weekly sales of Cadbury
in south Delhi is about 52%, weekly sales of nestle in south Delhi is about 28%, weekly sales
of amul in south Delhi is about 20%.

48
 Weekly Sale of Chocolate(Central Delhi )

14%
Cadbury
25%
62% Nestle
Amul

Fig. 19

Interpretation:-

This shows the weekly survey in central Delhi. It shows that weekly sale of Cadbury in
central Delhi is about 52%, weekly sales of nestle in central Delhi is about 28%,weekly sales
of amul in south Delhi is about 20%.

49
 Scheme from Company to their Retailer

7%

35% Cadbury
58% Nestle
Amul

Fig. 20

Interpretation:-

This shows the weekly sales of chocolates in west Delhi. This shows that weekly sales of
Cadbury in west Delhi is about 66%, weekly sales of nestle in west Delhi is about 24%,
weekly sales of amul in west Delhi is about 10%

50
 CHAPTER 4
CONCLUSION AND RECOMMENDATIONS

51
 RECOMMENDATIONS

On the basis of research and analysis of the study conducted in DELHI market, which was
divided into five areas viz. south, north, east, west and central Delhi for the AMUL
Chocolate. I would like to suggest the following key point to the company.

 The company should try to build some feedback mechanism from the retailer to check
the wholesalers intervention in the AMUL‟S distribution area because the wholesaler
try to hamper the goodwill as well as the other benefit of the company and their most
important part of distribution channel.

 The company should maintain separate distribution channel for the chocolate because
it is seem mostly during study that one single distribution deals all product, as it is not
a hidden fact that the product line and product depth is very wide. In the other hand
other product most importantly AMUL butter is hot item for distributor as well as for
retailers. Therefore they don‟t pay proper attention on to it.

 The company should provide new schemes on the regular basis to the retailers as well
as to the consumers to increase its market share.

 During my project this fact become clear that the customer are not well aware about
the all product item of amul chocolate so through the strong advertisement company
should try to increase the awareness of the AMUL chocolate.

 The retailer‟s main problem is storage of AMUL Chocolate as I saw Cadbury as well
as Nestle both company provide refrigerator and display box for proper storage as
well as the promotion of their product so AMUL should do something on this line.

 Replacement is big problem for retailers especially in chocolate segment because all
chocolate products need special kind of care but there some unavoidable factor
damage the chocolate so company should provide revive the policy about the

52
 replacement, easy replacement facility to the retailers so that they could be attracted
toward selling the AMUL Chocolate.

 The company should start promotion campaign at the micro-level by increasing the
visit of company‟s representatives to the retailers.

 The company should work collaboratively with the distributors in effective manner
towards focusing on the area where there is a potential market for AMUL Chocolate
and target that area.

53
 CONCLUSION

FROM THE ANALYSIS, THE FOLLOWING CONCLUSION CAN

BE ARRIVED AT:

 Amul Chocolate enjoys the trust of the retailers as well as the consumer because of its
quality and huge brand image. Currently the stock of Amul Chocolate supplied by the
company is not of fresh date. As a result of this situation is making an adverse impact on
the market of Amul Chocolate

 There a big storage problem with Amul Chocolate it has needed to keep in certain
temperature.

 Some distributors do not give proper information to the retailers about the product and
offers given by the company for the promotion of the Amul Chocolate. This leads bad
image of the company.

 There is some problem with the packaging of the product. As a result the Chocolate
puffed before its expiry period.

 The supply of Amul Chocolate is not proper in some specific areas .Which gives wrong
message about company.

 The competitors of some of the competitors of are providing easy replacement facility to
the retailers which are attracting them towards those companies.

 Some of the competitors of some of the competitors are providing wider margins to the
retailers. Wider margin is making the retailers to push the sales of the competitors. There
are some of the areas in Delhi are not yet

 Tapped properly by the company. On the other hand the competitors are making a
regular.

54
 BIBLIOGRAPHY

BOOKS:-

 KOTLER PHILIP “MARKETIG MANAGEMENT” NEW DELHI

PRENTICEHALL OF INDIA. 2011

 PANDEY , I.M., FINANCIAL MANAGEMENT, VIKAS PUBLICATION, NEW

DELHI , 2007

 KOTHARI C.R. “RESEARCH METODOLOGY”

SEARCH ENGINE:-

 www.google.com

 www.yahoo.com

WEB SITE:-

 www.amul.com

MAGAZINES:-

 BUSINESS WORLD

 BUSINESS TODAY

PREOIDICAL:-

 ECONOMIC TIMES

 TIMESOFINDIA(DELHIEDITION)

55
 ANNEXURES

CUSTOMER QUESTIONNAIRE

Name ………………………… Occupation………..

Age………………… Monthly income……….
Place……………….
(Your information will be kept confidential)
1. Do you eat chocolate?

Yes No

2. Which type of chocolate do you like most?

Candy Toffee Bar

3. What‟s in your mind while purchasing chocolate?

Flavor Gift both

4. At which time do you like to eat chocolate?

After meal Birthday party any time

5. Which type of flavor/taste does you like the most?

Milky coffee Fruit-n-Nut Other…

6. Which chocolate do you like the most? Name

a) ………………….. b) ……………………..

7. How much do you spend in chocolate in a week?

Below 50 50-100 Above 100

8. Do you aware about?

Yes No

Amul milk chocolate …… ……

Almond Bar …… ……

Bindaaz …… ……
Fundo …… ……

Chocó zoo …… ……

9. Have you tasted Amul chocolate?

Yes No

Milk chocolate ……. ……

Almond Bar …… …….

Bindaaz ……. …….

Fundo ……. …….

Chocó zoo ……. …….

10. If yes give point (1-10) for each?

Milk chocolate ………………………..

Almand Bar …………………….

Bindaaz …………………….

Fundo ……………………..

Chocó zoo …………………….

11. How you come to know about Amul chocolate?

By electronic media By print media By retailer By Display Any

other ………….

12. Give point (1-10) for following chocolate?

Taste Price packaging

Cadbury

Nestle

Amul

13. Any suggestion? ………………………………………………………