Professional Documents
Culture Documents
Amul Project
Amul Project
PROJECT REPORT ON
“Market Analysis & Sales Development of Amul Milk”
This study was conducted from 8th June 09 to 8th August 09
At
Gujarat Co-operative Milk Marketing Federation Limited
BY:
PRASANTA KUMAR MOHAPATRA
PGDM
OF
2
PREFACE
The PGDM programme is well structured and integrated course of business studies.
The main objective of practical training at PGDM level is to develop skill in
student
by supplement to the theoretical study of business management in general.
Industrial
training helps to gain real life knowledge about the industrial environment and
business practices. The PGDM programme provides student with a fundamental
knowledge of business and organizational functions and activities, as well as an
exposure to strategic thinking of management.
Training is an integral part of PGDM and each and every student has to undergo the
training for 2 months in a company and then prepare a project report on the same
after
the completion of training.
During this whole training I got a lot of experience and came to know about the
management practices in real that how it differs from those of theoretical
knowledge
and the practically in the real life.
3
CERTIFICATE
The following summer internship project report titled “MARKET ANALYSIS &
Marketing Federation Ltd., Pune from 8th June 2009 to 8th August 2009 is here by
that by this approval the undersigned do not necessarily endorse or approve any
statement made, opinion expressed on conclusion drawn therein but approve the
Signature Signature
Prof. K.K BHASIN Mrs. K Madhavi
Faculty guide Director
4
CERTIFICATE
This is to certify that Mr. Prasanta Kumar Mohapatra, Roll No. A-7028 a student
of course PGDM from the institute Asian School of Management has done his
OF AMUL MILK” has done under the supervision of Mr. K.K. BHASIN faculty
The project work embodies the original work done by Mr. Prasanta Kumar Mohapatra
Signature
Prof. K.K BHASIN
Faculty guide
5
ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for
Gujarat Co-operative Milk Marketing Federation Ltd. It has been an enriching
experience for me to undergo my summer training at “GCMMF”, which would not
have possible without the goodwill and support of the people around. As a student
of
“Asian School of Management”, Pune I would like to express my sincere thanks too
all those who helped me during my training program.
I would like to express my gratitude to all those who gave me the encouragement to
complete this project. I would like to thank my college authorities and Director
Mrs.
Madhavi Khare, for providing me the opportunity to work with the one prestigious
organization.
I would like to give my heartily gratitude to the Mr. Pranil Jadhav, Senior
Executive
(SALES), GCMMF Ltd., Pune for having given me the opportunity to do my project
work in the organization and lighted my way of progress with his guidance.
My sincere and deepest thanks to Mr. K.K. Bhasin, Faculty Member of ASIAN
SCHOOL OF MANAGEMENT, PUNE for having spared his valuable time with
me and for all the guidance given in executing the project as per requirements.
I would like to give my special thanks to my parents, their love, support and
blessing
enabled me to complete this Project work.
However, I accept the sole responsibility for any possible error of omission and
would
be extremely grateful to the readers of this project report if they bring such
mistakes to
my notice.
6
DECLARATION
I hereby declare that the following project report titled “MARKET ANALYSIS &
Marketing Federation Ltd., Pune is an authentic work done by me. It is to the best
of my knowledge and belief. This is to declare that all my work indulged in the
completion of this Project Report such as research, competitor analysis and sales
Date: Signature
Mr. PRASANTA KUMAR MOHAPATRA
7
-:CONTENTS:-
1 EXECUTIVE SUMMARY 9
2 INTRODUCTION 12
5 RESEARCH METHODOLOGY 45
8 LIMITATIONS 71
9 CONCLUSION 73
12 ANNEXURE 80
8
EXECUTIVE SUMMARY
9
In today’s competitive world while entering in the market it is very
necessary to have good
knowledge of the potential of a particular market. The information regarding the
activities of
competitor’s existing in the market so that we can plan our each activity according
to that. It is also
necessary to retain the existing customers apart from attracting the new customers.
The Project is concern with the market analysis & sales development of Amul
dairy milk in
Pune city. The project included as part of MBA Programme and the project is done
from 8th June to
8th August.
1.1 Title:
“MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY”.
1.2 Organization:
“Gujarat Co-operative Milk Marketing Federation (GCMMF), Anand, Gujarat”.
1.3 Objective:
The Primary objective of study was to find size of retail network of Amul
Taaza and Amul
Gold in specific areas of Pune city. In the study my intention was go through the
retail network of
Amul dairy milk to know retailers view about supply chain of Amul dairy milk, to
know the
complaints of Amul dairy milk and to find the suggestions from retailers for more
penetration of
Amul dairy milk in Pune region.
The secondary objective was to find customer response towards Amul milk. My
aim was to
go through the customers to know the interest of purchasing & using Amul milk.
Basically the study
was for the demand of Amul milk among the customers. And also to know the
complaints on Amul
milk.
Sampling done is nonprobability sampling. The type of sampling method was Judgment
sampling.
10
1.5 Findings:
In Pune region there are around more players in of liquid milk exist. Those
are like Chitale,
Katraj, Krishnai, Mahanand, Amul, Warna, and many other local brands.
As per the findings CHITALE is the Market leader and having more market share.
Awareness of
Amul dairy milk among the retailers as well as consumers is average but acceptance
is low. The sale
is totally depends on the retailers.
1.7 Conclusion:
It was concluded that Amul dairy milk i.e. Full Cream milk and Cow milk has
a high
potential in the market and it is the known to its customers but still its
acceptance is comparatively
low as other competitors present in the market, because perception of customers
towards the product
is wrong, most of the consumer continuously using other brand and they do not want
to switch over
other brand.
11
INTRODUCTION
12
2.1 CONTEXT OF THE TOPIC:
Retailers are the part of milk marketing channels and perform the work of
moving goods
from producers to the customers. It overcomes the time, place and possession gap
that separates
goods and service from those who needs or wants them. Retailers as member of
marketing channel
perform a number of key functions. Some functions (physical, title, promotion)
constitute a forward
flow of activity from the company to the customers; other functions (ordering and
payment)
constitute a backward flow from customers to the company. Still others
(information, negotiation,
finance and risk taking) in both directions.
The project delves into the workings from the distribution aspect of an FMCG
organization,
in detail. AMUL, being an FMCG company, attaches a lot of significance to the
distribution aspect
of its business. The distribution channel of AMUL holds a lot of potential in
affecting the demand or
sales of AMUL products through delivery on time, delivery of variety of products,
the retailer-
friendliness of the policies being set by the distributors and equitable
distribution of products to all
the retail outlets in a particular region, to name a few.
So, In order to plan retail coverage we map out the positions of Amul
outlets, Amul parlors,
and competitor’s outlets. This project was carried out in Pune city. For analyzing
and presenting
information that is tied to geographical location, we divided the city in different
wards. By analyzing
geographical representation and sales data with spatial distribution Amul outlets,
competitor’s
outlets and the density of others in an area, we identify unexplored area and plan
location outlets to
increase its market penetration. Using such research we can ascertain the quality
and depth of retail
penetration in specific area.
13
Addition to this we carried out sales promotion activity through discount
coupons. Sales
promotion consists of diverse collection of incentive tools, most short-term
designed to stimulate
and/or greater purchase of a particular product by consumers or the trade. Whereas
advertise offers a
reason to buy, sales promotion offers incentive to buy. Sales promotion includes
tools for consumer
promotion (for example samples, coupons, prizes, cash refund, warranties,
demonstrations, contest);
trade promotion (for example buying allowance, free goods, merchandise allowances,
co-operative
advertising, advertising and display allowances, dealer sales contests); sales
force promotion (for
example bonuses, contests, sales rallies).
The consumer promotion tools mean the promotion activities, which are
beneficial for
consumers as well as company. Such as price discounts, samples, cash refund,
premiums, prizes,
cross promotion and coupons etc. We decided to use discount coupons. We distributed
it among
customers and validity kept seven days from issued.
14
2.3 Need of Study:
Managers are always curious about the position of their company’s products
in the market
which largely depend upon the company’s goodwill, and the position of their brand.
In order to
maximize the sale and profit, company must deliver outstanding satisfaction to the
retailers,
wholesaler & customers. So market survey of retailers, wholesalers & customers,
chart out the
position of the company as compared to the competitors. It helps the organization
to find out the
brand being sold most by the retailers along with their stocking and also consumer
buying
preferences.
It helps to study all activities which can be used to influence large number
of customers so as
to increase the sales of the Amul milk effectively”.
15
INDUSTRY
&
COMPANY PROFILE
16
3.1 Industry Profile:-
Major changes are not expected in dairy products basket. World butter
production increased
for two years, in 2004 and 2005 and then declined in 2006-07. It is expected to
decline again in
2007-08. Industrial cheese production is continuing to grow. The major cheese
producing regions are
Europe and North America and both areas are expected to have a faster growth rate.
17
The outlook for the trade in dairy commodities for 2007-08 appears bright.
However, since
the new market equilibrium, in respect of prices has to be found, the question is
whether
international trade in dairy products will continue its growth in 2007-08 at the
same momentum as in
previous years. Because of the price situation in 2007-08, one may ask whether
demand can follow
the expected trends, but it would be premature to expect stagnation in the trade.
In established
markets, the potential for demand to reduce slightly can release the additional
supplies, which are
needed to maintain the growth of trade.
18
3.1.3 Co – Operative Unions:
Recently the Indian cooperative movement got a much needed facelift. With
competition
snapping at its heels, the sector which has been governed by arcane laws until the
recent past will see
a special provision inserted in the companies Act, 1956. All the cooperative unions
will be re-
christened cooperative companies; they will come under the purview of the registrar
of companies,
instead of the registrar of cooperatives.
Dairy cooperatives account for the major share of processed liquid milk
marketed in the
country. Milk is processed and marketed by 170 milk producer’s cooperative unions,
which federate
into 15 state co-operative milk marketing federations.
Over the years, brands created by cooperatives have become synonymous with
quality and
value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan).
Nandini
(Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned
customer
confidence.
19
-:Some of the major dairy cooperative federations include:-
20
3.2 The Organization:
In the year 1946 the first milk union was established. This union was
started with 250 liters
of milk per day. In the year 1955 AMUL was established. In the year 1946 the union
was known as
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand
name AMUL in 1955.
The brand name Amul means “AMULYA”. This word derived form the Sanskrit word
“AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested
the
brand name “AMUL”. Amul products have been in use in millions of homes since 1946.
Amul
Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul
Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading
food
brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol
of many things like
of the high-quality products sold at reasonable prices, of the genesis of a vast
co-operative network,
of the triumph of indigenous technology, of the marketing savvy of a farmers'
organization. And
have a proven model for dairy development (Generally known as “ANAND PATTERN”).
In the early 40’s, the main sources of earning for the farmers of Kaira
district were farming
and selling of milk. That time there was high demand for milk in Bombay. The main
supplier of the
milk was Polson dairy limited, which was a privately owned company and held
monopoly over the
supply of milk at Bombay from the Kaira district. This system leads to exploitation
of poor and
illiterates’ farmers by the private traders. The traders used to beside the prices
of milk and the
farmers were forced to accept it without uttering a single word.
21
However, when the exploitation became intolerable, the farmers were
frustrated. They
collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in
the freedom
movement. Sardar Patel advised the farmers to sell the milk on their own by
establishing a co-
operative union, Instead of supplying milk to private traders. Sardar Patel sent
the farmers to Shri
Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting
at Samarkha
village near Anand, on 4th January 1946. He advised the farmers to form a society
for collection of
the milk.
These village societies would collect the milk themselves and would decide
the prices at
which they can sell the milk. The district union was also form to collect the milk
from such village
co-operative societies and to sell them. It was also resolved that the Government
should be asked to
buy milk from the union.
22
However, the govt. did not seem to help farmers by any means. It gave the
negative response
by turning down the demand for the milk. To respond to this action of govt., the
farmers of Kaira
district went on a milk strike. For 15 whole days not a single drop of milk was
sold to the traders. As
a result the Bombay milk scheme was severely affected. The milk commissioner of
Bombay then
visited Anand to assess the situation. Having seemed the condition, he decided to
fulfill the farmers
demand.
Thus their cooperative unions were forced at the village and district level
to collect and sell
milk on a cooperative basis, without the intervention of Government. Mr. Verghese
Kurien showed
main interest in establishing union who was supported by Shri Tribhuvandas Patel
who lead the
farmers in forming the Cooperative unions at the village level. The Kaira district
milk producers
union was thus established in ANAND and was registered formally on 14th December
1946. Since
farmers sold all the milk in Anand through a co-operative union, it was commonly
resolved to sell
the milk under the brand name AMUL.
23
At the initial stage only 250 liters of milk was collected every day. But
with the growing
awareness of the benefits of the cooperativeness, the collection of milk increased.
Today Amul
collect 11 lakhs liters of milk every day. Since milk was a perishable commodity it
becomes difficult
to preserve milk for a longer period. Besides when the milk was to be collected
from the far places,
there was a fear of spoiling of milk. To overcome this problem the union thought
out to develop the
chilling unit at various junctions, which would collect the milk and could chill
it, so as to preserve it
for a longer period. Thus, today Amul has more than 150 chilling centers in various
villages. Milk is
collected from almost 1073 societies.
With the financial help from UNICEF, assistance from the govt. of New
Zealand under the
Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter
was planned.
Dr.Rajendra Prasad, the president of India laid the foundation on November 15,
1954. Shri Pandit
Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on
November 20, 1955.
24
3.2.2 Amul Secret Of Success:
Looking back on the path traversed by Amul, the following features make it a
pattern and
model for emulation elsewhere.
Bring at the command of the rural milk producers the best of the technology and
harness its fruit
for betterment.
Provide a support system to the milk producers without disturbing their agro-
economic systems.
Plough back the profits, by prudent use of men, material and machines, in the
rural sector for the
common good and betterment of the member producers.
Even though, growing with time and on scale, it has remained with the smallest
producer
members. In that sense, Amul is an example par excellence, of an intervention
for rural change.
25
The Union looks after policy formulation, processing and marketing of milk,
provision of
technical inputs to enhance milk yield of animals, the artificial insemination
service, veterinary care,
better feeds and the like - all through the village societies. Basically the union
and cooperation of
people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which
suggest THE TASTE OF INDIA.
Amul (Anand milk union ltd.) is based on four hands, which are coordinated
with each other.
The actual meaning of this symbol is co-ordination of four hands of different
people by whom this
union is at the top position in Asia.
First hand is of farmers, without whom the organization would not have existed.
Second hand is of processors, who process the row material (milk) into finished
goods.
Third hand is of marketer, without whom the product would have not reached the
customers.
Fourth hand is of customers, without whom the products would have not carried
on.
26
3.2.3 GCMMF Overview:
3.2.4 Vision:
3.2.5 Mission:
27
3.2.6 Organization Structure:
Villagers
28
• Internal Organization Structure:
Chairman
Managing Director
General Manager
29
3.2.7 Production Function:
30
• Operating Analysis-
Collection of Raw-Milk
Electronic Milk Test
Methyline Blue
Reduction Test
Purchasing And Standardizing Process
Separation Process
Quality Check
Packaging Process
Cold Storage
31
3.2.8 Distribution Network:
Most producers work with marketing intermediaries to bring their products
to market. The
marketing intermediaries make up a marketing channel also called distribution
cannel. Distribution
channels are sets of interdependent organizations involved in the process of making
a product or
service available for use or consumption.
The Head Office of GCMMF is located at Anand. The entire market is divided
in 5 zones.
The zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai.
Moreover
there are 49 Depots located across the country and GCMMF caters to 13 Export
markets.
Distribution Chart
Products
Agents
Wholesaler
Retailer
Consumer
We can see from above figure that GCMMF distribution channel is simple and
clear. The
products change hands for three times before it reaches to the final consumer.
First of all the
products are stored at the Agents end who are mere facilitators in the network.
Then the products are
sold to wholesale dealers who then sell to retailers and then the product finally
reaches the
consumers.
32
3.2.9 Managing Competition:
Amul has two agencies that look after its entire range of products namely
FCB Ulka and Da
Cunha.
FCB Ulka looks after a broad range of products namely, Amul Lite
Breadspread, Amul
Shrikhand, Amul Chocolates, Amul Paneer, Amul SnowCap Softy Mix Ice cream,
Amul/Sagar
Ghee, Amul Infant Milk Formula 1 & 2, Sagar Tea and Coffee whitener, Amul Spray
Infant Milk
Food, Amul Mithaee, Amul Gulab Jamun, Amulya Dairy Whitener, Mithaimate Sweetened
Condensed Milk, Amul Ice cream, Sagar Skimmed Milk Powder and Amul Whole milk
Powder.
Da Cunha looks after the Amul butter. Da Cunha also prepares the very
popular Amul butter
billboard campaigns, which we see at various locations. Over and above the Amul
butter, Da Cunha
also looks after the Amul Cheese, Cheese spread, Gouda Cheese, Emmental Cheese,
Masti Dahi and
Buttermilk, Amul Slim-n-Trim, Amul Taaza and Amul Gold (all different brands of
milk), Amul
Fresh Cream, Amul Chocolate Milk, Amul Fresh Milk and Nutramul.
34
3.2.13 Some Facts:
Amul: Asia’s largest dairy co-operative was created way back in1946 to
make the milk
producer self-reliant and conduct milk- business with pride. Amul has always been
the trend setter in
bringing and adapting the most modern technology to door steps to rural farmers.
The first and only organization in world to get ISO 9000 standard for its
farmers co-operatives.
First to produce milk from powder from surplus milk. Amul is the live example of
how co-
operation amongst the poor marginal farmers can provide means for the socio-
economic
development of the under privileged marginal farmers.
35
AWARDS:-
Amul a co-operative society and its co-operation has led many different awards in
its favour.
1965: “Padmshri” awarded was given to V. Kurien, general manager, by the president
of India.
1987: “Best Productivity” awarded by national productivity council for the year
1985-86 awarded to
Amul dairy.
1988: “Best Productivity” awarded for the second successive year 1986-87 by the
president of
India, Mr. R. Venkatrao to kaira union.
1993: “ICA” Memenoto towards genuine and self sustaining cooperative worldwide ICA
regional
office for Asia and pacific, New Delhi, 1996.
1999: G.B.Birla award. Moreover the Amul union has achieved the prestigious ISO
9001-2000 and
HACCP Certificate and effects are got to obtain ISO 14000.
1999: Best of All" Rajiv Gandhi National Quality Award for the year,
2003: The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the
top scorer in
the service category of the prestigious IMC Ramkrishna Bajaj National Quality
Award.
2006-07: GCMMF has bagged award for excellent performance in exports of dairy
products from
Agricultural and Processed Food Exports Development Authority (APEDA).
2007: Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit.
36
3.3 List of Products Marketed:-
Bread spreads
• Amul Butter
• Amul Lite Low Fat Breadspread
• Amul Cooking Butter
Cheese Range
Pure Ghee
37
UHT Milk Range
Milk Powders
Fresh Milk
38
Sweetened Condensed Milk
Curd Products
39
Chocolate & Confectionery
Brown Beverage
Milk Drink
Health Beverage
Recently launched
• Amul Ganthiya
40
PLANTS
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee,
milk butter etc.
41
Third plant is at Kanjari, which produces cattelfeed.
42
OBJECTIVE
&
SCOPE
OF THE STUDY
43
4.1 Objectives of Project:
A. Primary Objective
1. To find size of retail network of Amul Taaza and Amul Gold in specific
areas of
Pune city.
B. Secondary Objective
1. To organize sales promotional activities to improve milk selling.
The study carried out in Pune city so its scope is mainly limited to Pune city.
44
RESEARCH
METHODOLOGY
45
5.1 Research Methodology:
The research was conducted from 8th June, to 8th July, 2009. The
research include meetings
with the retailers, consumers and dealers. It included preparation of the
questionnaire to be answered
by above people for knowing the competitive position of Amul in the milk market.
The views of the
above parties were recorded in the research as per the questionnaire set by us.
to successfully conduct the research the unbiased opinion of the above parties was
desirable. Thus
we conducted the research as the representative of Amul company and sometimes the
representatives
of the other company like Chitale or Katraj in order to have an unbiased opinion of
the concerned
questionnaire was different for the retailers and dealers and for the consumers
there was a different
1. Open-ended question
2. Dichotomous question
3. Multiple-choice Question
Both the questionnaire consists of all three types of question. Mostly all
questions are
multiple type questions. Dichotomous question are few in number. There is only one
open-ended
type question.
46
5.1.4 Phrasing of Question:
satisfaction.
Sample Size:
1. Retailers 169
2. Consumers 95
3. Distributors 4
Sampling Technique:
Personal Interview:
47
5.2.1 Product for Which Survey Was Conducted:-
Composition:
Variety Fat (%) SNF(%)*
Amul Gold (Whole Milk) 6 9
Amul Taaza (Toned milk) 3 8.5
*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34
parts of protein and
9 parts of minerals.
Special Features:
Amul Milk is the most hygienic liquid milk available in the market. It is
pasteurized in state-
of-the-art processing plants and pouch-packed to make it conveniently available to
consumers.
Product Specification:
Amul milk meets the PFA standards for the respective type of milk.
Amul Taaza:
Price to distributor : Rs. 20.57
Price to Retailer : Rs. 21.00
MRP : Rs. 22.00
48
5.3.1 Area of Operation:
The areas of operation were the research was done are as follows:
• Sahakar Nagar
• Upper
• Sukhsagar Nagar
• Bibewadi
• Balaji Nagar
• Dhankwadi
At Approach:
• What type of shop it is? (hotels, amrutulya, bakery, restaurant, general
stores, super
market)
• Does it stock Amul products?
• What other brands available in the shop
Secondary Level:
• Whether it sells milk ?
• If yes, whether it sells Amul milk ?
• Whether the company provides any promotional support ?
Territory Level:
• Does he sell local milk or not ?
• Which is the most selling milk in the market ?
• Who supplies milk to your shop ?
• Does the delivery of milk is on time ?
• What is the mode of payment credit or cash ?
49
Others:
Addendum:
• Outlets may include institutions, general stores, mithai shops, super
market, canteens,
juice bars, ice-cream corners etc.
• These sectors were chosen because the company believed that these
segments could be
the best potential buyers for this product.
50
DATA PROCESSINNG
&
ANALYSIS
51
6.1 Data Analysis For Retailers:-
No 114 80%
Yes
33%
Yes
No
No
67%
Interpretation:
• The above graph indicates that only 1/3rd of the retailers are selling
Amul milk.
• It shows that Amul milk brand is not popular among the retailers.
52
2) Sizes of Amul milk packets retailers preferred to store.
(Out of 169 retailers only 55 were buying Amul milk.)
Answer No. of
respondents
250ml 0
500 ml 32
1 Ltr 23
5 Ltr 0
5 Ltr 0
1 Ltr 23
500 ml
32
250ml 0
0 5 10 15 20 25 30
35
No. of respondents
Interpretation:
• The above graph shows that most of the retailers preferred to stored 500 ml
and 1 Ltr pouch
of Amul milk as per the customer demand.
• In case of 5 Ltr. Pouch there was no customers demand.
• 250 ml pouches were not available to retailers.
53
3) Reasons for Amul milk not stored by retailers.
No.
of
Answer
respondents
Absence of packaging date 6
Low margin 75
No distribution 13
No replacement for
20
leakage
Low margin
75
Absence of packaging
6
date
0 10 20 30 40 50 60
70 80
No. of respondents
Interpretation:
• From above graph it is clear that half of the retailers were not satisfied
with Amul
replacement and margin policy.
• Some retailers responded about absence of packaging date.
• Very less retailers complained about distribution network
54
4) Preference of retailer’s to milk brand.
BRANDS RESPONDENTS
Amul
15
Chitale
77
Katraj
45
Gokul
6
Others
26
Others 26
Gokul 6
Katraj 45
Chitale
77
Amul 15
0 10 20 30 40 50 60 70
80 90
RESPODENT
. S
Interpretation:
• The above graph shows that the Chitale is most preferable brand in all.
• Some retailers also prefers Katraj and others brands.
55
5) Sources from where retailers get Amul milk
Other suppliers 3 5%
Interpretation:
• Almost all retailers said that they purchased milk from Amul distributors.
56
6) Retailer’s satisfaction with Amul distributor.
No 21 38 %
No
38%
Yes
Yes
No
62%
Interpretation:
• Graph shows that most of the retailers were satisfied with the service
provided by the Amul
distributors.
57
7) Awareness among retailers about different Sales Promotional activities for
Amul milk.
(Out of 169 retailers only 55 were buying Amul milk.)
60
50 6
5
18 14
40
42 39
30
49
50
20 37 41
10 16
13
0
Price off Free samples Credit facility Advertisement P-O-P
Coupons
Displays
Interpretation:
• The graph shows that retailers were aware about the sales promotion
activity that Amul
carried out, but some respondents were unaware about various activities.
• Most of the retailers were aware about advertisement and coupons scheme
during festivals.
• Credit facility and free samples were not provided to single retailers.
58
8) Interest of retailers in wholesale distribution of Amul milk.
No 142 84 %
Yes
16%
Yes
No
No
84%
Interpretation:
• Graph represents the interest of the retailers to start Amul milk
distribution .The questions
asked to increase the retail coverage.
• Most of the retailers were not interested.
• Only 16% of the retailers were ready to start Amul distribution.
59
9) Awareness among retailers for Amul Parlor (APO) and its benefits.
(Out of 169 retailers only 118were questioned as they had large store.)
No 48 41 %
No
41%
Yes
No
Yes
59%
Interpretation:
• APO is the outlet where you get Amul milk and milk products and it helps to
increase the
market share. This question asked to the retailers who were strong enough in
capital.
• From graph it can be interpreted that the awareness about APO is very low.
60
10) Interest of retailers in opening an Amul Parlor (APO).
(Out of 169 retailers only 118 were questioned as they had large store.)
. No 103 87 %
Yes
13%
Yes
No
No
87%
Interpretation:
• The graph represent that very less number of retailers were interested to
start APO.
61
11) Consumer’s expectation from Amul milk.
(Out of 169 retailers only 55 were buying Amul milk.)
ATTRIBUTE RESPONDENTS
Good quality 7
Availability 25
Availability
25
Good quality 7
0 5 10 15 20
25 30
RESPODENT
S
Interpretation:
• The question asked to the retailers where the Amul milk is being sale, and
tried to collect
feedback of customers about Amul milk.
• More customers were having complaints about the clear date of packaging and
availability.
• Some customers were not happy with quality of milk.
62
12) Ratings from retailers for attributes of Amul milk.
(Out of 169 retailers only 55 were questioned as they buying Amul milk.)
Attribute
Brand
Rating Quality Availability
Packaging Margin
image
Very good 37 48 34 5
0
Good 13 7 15 2
0
Average 5 0 0 48
0
Bad 0 0 6 0
0
Very bad 0 0 0 0
55
Total 55 55 55 55
55
60
0 0 0 0
5 7 6
50 0
13 15
40
30 48
55
48
20 37 34
10
2
5
0
0
Quality Brand image Availability Packaging
Margin
Interpretation:
From the above graph it can be concluded that
• QUALITY: Most of the retailers were satisfied with Amul milk quality.
• BRAND IMAGE: The graph shows that Amul is having good brand image.
• AVAILABILITY: Most of the retailers were satisfied with the Amul milk
distribution.
• PACKAGING DATE: Most of the retailers were not satisfied about not printing
of
packaging date and they were facing a problem regarding same.
• MARGIN: All retailers were not satisfied with the margin policy given by
Amul.
63
6.2 Data Analysis for Customers:-
No 65 68%
Yes
32%
Yes
No
No
68%
Interpretation:
• The above graph indicates that only 32% of the customers are purchasing
Amul milk.
• It shows that Amul milk brand is not popular among the customers.
64
13) Ratings from customers for attributes of Amul milk.
(Out of 95 customers only 30 were questioned as they buying Amul milk.)
Attribute
Brand
Rating Quality Availability
Packaging Price
image
Very good 18 25 16 5
6
Good 9 5 9 2
13
Average 3 0 0
15 11
Bad 0 0 5 8
0
Very bad 0 0 0 0
0
Total 30 30 30
30 30
35
30 0 0 0 0
0
3 5 5
25 0 8
11
9
20 9
15 15
25
13
10 18 16
5 2
5
6
0
Quality Brand image Availability Packaging
Price
Interpretation:
From the above graph it can be concluded that
• QUALITY: Most of the customers were satisfied with Amul milk quality.
• BRAND IMAGE: The graph shows that Amul is having good brand image.
• AVAILABILITY: Most of the customers were satisfied with the Amul milk
distribution.
• PACKAGING DATE: Most of the customers were not satisfied about not printing
of
packaging date and they were facing a problem regarding same.
• PRICE: Some customers were not satisfied with the price given by Amul.
65
14) Preference of retailer’s to milk brand.
BRANDS
RESPONDENTS
Amul
15
Chitale
44
Katraj
11
Gokul
8
Others
17
17
Others
8
Gokul
11
Katraj
44
Chitale
15
Amul
0 5 10 15 20 25 30
35 40 45
RESPODENTS
.
Interpretation:
• The above graph shows that the Chitale is most preferable brand in all.
• Some customers also prefers Katraj and others brands.
66
6.3 Data Analysis for Sales Promotion Activity:-
We carried sales promotion activity at two places of Pune city
1. Sahakar nagar
2. Sinhgad road
Sales (Ltr)
35
30 30
25 25 25 25 25 25
25
sai
20 20
vaishali
15 15 15 15 15 15 15 15
15 hanuman
10 10
new
8 8 8 8 8
8 hanuman
5 5 5 5 5 5 5
5 Durga
0 0
initially Day 1 Day 2 Day 3 Day 4 Day 5 Day 6
Day 7
Interpretation:
• Most of the retail outlets were not interested in Amul milk selling, but
after launching
coupons scheme, not only sales shoot up by considerable amount initially
but also remain
constant for next days.
• In case of Sai and Vaishali retail outlet they were not interested in Amul
milk selling but
now they are selling 20 Ltr of milk daily. And they said if response will
remain same they
will increase milk order.
67
OBSERVATION
&
FINDINGS
68
7.1 Observation Findings:-
• Retailers are not interested because they don’t have storage facility but if
company provides
them such facility they will be sale Amul milk.
• Because of low profit margin almost all retailers are not interested in Amul
milk selling.
• The 250 ml and 5 Ltr milk pouch are no available to the retailers for
selling.
• Retailers were selling different brands. Because they were able to receive
more margin from
non popularized brand that they could not from well known brands.
• Measurable amount of retailers were not happy with the distributors, because
of frequent
change in distributors and late delivery of milk.
• Some questions were asked with view to convert retailers into distributors,
but due to low
margin they denied that.
• Retailers were not interested to start APO because to start APO one required
large amount
investment i.e. near about 2 Lakhs and with this it is mandatory to sale
only Amul products,
so most of the retailers did not show interest in APO.
• When question came to retailers ratings towards Amul milk rating most of the
most
respondents complaining about profit margin and packaging date.
69
• During campaign it is found that the mindset of consumers towards Chitale
milk is very high
and hence it has become a milk maket player. As from the sales chart it is
clear that the sales
of Chitale pouch milk is 50% more then Amul pouch milk.
• Retailers also demand for the replacements for the damage due to the
spoilage of milk that
they have to bear when the Amul milk gets spoiled after the purchase.
• Awareness level among the consumers is around 75% to 80% but still only
around 15%
consumers are consuming Amul milk.
• Consumers have a perception that Amul milk is unfresh and is having lots of
cuddling
problem.
• The packaging of Amul milk is not popular among the customers as compared to
other milk
brands are available in the market.
• The awareness level of Amul milk in bulk users is around 90% but only 10%
are using Amul
milk.
• The preference of purchasing milk by the bulk users is mainly quality, price
and timely
availability.
• The reasons for not using milk by the bulk users are :
1. Higher price that is not meeting the competitors rate as bulk user are
very price sensitive.
70
LIMITATIONS
71
Limitations:-
This report had to work under several constraints and limitations. Some of the key
limitation are.
.
1. The survey is limited only for six wards.
2. Time period of the project was 8 weeks, which may not be enough to
understand the
whole market.
3. Convenient sampling was used as the mode of conducting the research.
4. The sample size of the taken was small, therefore it can be said that
the chosen sample is
not the representative of the whole population and this hindered
quantitative research.
5. The psychology and temperament of a respondent play a significant role.
Some
respondents are more sensitive as against others who are more tolerant.
A change in the
composition of the respondents can affect the answers adversely or
favorably.
6. Respondents may not have been true in answering various questions and
may be biased to
certain other questions.
7. Out of the whole research and analysis, only three major brands could be
highlighted,
leaving aside the other non-popular brands.
8. The questionnaire mostly contained multiple choice questions, therefore
many
respondents did not give a proper thought before up the questions, and
some even ticked
things, which were not applicable. Therefore, all this increased the
bias.
9. The sample size of Retailers / Wholesalers was very small and therefore
response from
them dose not reflect the exact view because they may to biased.
72
CONCLUSION
73
Conclusion:-
As we know that Amul is very big organization and market leader in dairy
products. It has
maximum market share in Milk, Butter, Cheese & Ice-Cream which are its main/core
products. But
in case of local market like Pune the Amul milk is not a popular product as
compared to other Amul
Products. With the help of research, company can find out its week points in Milk
product and can
increase its market share through rectify mistakes. People have believed in Amul’s
product and they
will accept it also if effective actions were taken.
# Amul must come up with new promotional activities such that people become
aware about
Amul Milk like Amul Tazza & Gold.
# In comparison to Amul Milk, the other players such as Chitale, Katraj,Gokul &
Krushnai
provide a better availability and give competition to the hilt.
# People are mostly satisfied with the overall quality of Amul Milk, but for the
existence in the
local market Amul must use aggressive selling techniques
74
.
SUGGESTIONS
&
RECOMMENDATION
75
Suggestions & Recommendation:-
The Milk products market has reached Maturity stage in India large no. of
Co-operatives
having a variety of product range has entered the market, thus there is one way for
Amul to sustain
their milk business in the market by delivering outstanding satisfaction to their
retailers, so that they
can take interest in selling of Amul milk products. This can be done as follows
• Amul has a relatively good distribution network, but still company is not
able to fulfill the
demand of outlet in the peak season when demand is very high. Here company
should
consider on the supply of product in the peak season.
• Supply should be regular to all the outlets including those that lie in the
pocket roads and
not just in the outlets which lie on the easily accessible routes.
• 250 ml milk pouch should make available to retailers for selling, because
lower income
family has intention to buy small pouch milk.
• Incentives & schemes should be given to the retailers and some scrutiny
should be follow to
check the scheme get being communicated properly by distributors or sales
person.
• Do not change distributor frequently, because he is the only person who act
as a connecting
link between company and retailers.
• Try to minimize bank deposits for APO, which help to retailer think to
start.
• Though the customers are asking for Branded milk is very few but Amul should
invest more
money in Brand promotion and marketing in Pune, it will be beneficial for
the company in
the long run as well as in the short run.
• For Brand promotion and marketing of Amul milk in Pune it should introduce a
mascot for
the Amul milk as it already has for Amul Butter i.e. The Amul Butter Girl in
order to gain a
good position in the mind of customers. This will also help in easy Brand
differentiation and
Recognition.
76
• Also advertising on the television, Radio Mirchi and Sponsorship of the events,
Trade Fairs
will be a better choice.
• The study of milk market reveled that there is no Mergers and Acquisition in the
milk
industry. Amul should go for Mergers and Acquisition and try to acquire the local
players in
the Pune market like Chitale, Katraj and Gokul etc. It will help the company in
increasing its
Dealers network, Market share, Customer base etc. It will also save time of
establishing a
new manufacturing unit.
• Our Research revealed that there is no awareness among the consumers regarding
the Amul
milk in Pune. So it is advisable to the company to conduct various consumer
awareness
programs like distributing of pamphlets outside the big shopping malls, giving
presentations
in schools and colleges about the Amul Milk by telling them about the qualities
of milk. By
this we can able to reach to a large number of people at one time only as there
will students
along with their teachers and other staff members of the school and colleges.
• The pamphlets should be printed in such a way that it not only advertise about
the milk but
also provides information about how to preserve the milk in different conditions.
• In order to attract the ladies segment the pamphlets should have some recepies on
the other
side of it.
• Some brand ambassador like M S Dhoni, Hrithik Roshan or Vriendra Sehwag may be
used.
That will help customers to accept the product more quickly.
• Special offers should be there for dealers, retailers and consumers at the time
of diwali and
holi.
• Discount coupons should be given to the consumers in order to buy more milk.
• If adding preservatives in the milk keeps the milk for longer times then Amul
should also
add some preservatives in the milk as people not only see quality but also sees
the time
duration i.e. how much times we can store the milk.
• In order to push the milk to the customers the profit margin should be increased.
• Company should improve its distribution channel and should increase the number of
distributors.
• Company should take care of retailers by solving their problems and should call
back by
appointing separate company representatives.
• Timely visit should be given to the retail shops.
77
BIBLIOGRAPHY
AND
WEBLIOGRAPHY
78
Books:
Websites:
i. www.google.co.in
ii. www.wikipedia.com
iii. www.amul.com.
iv. www.marketresearch.com
v. www.dairy.com
79
ANNEXURE
80
QUESTIONNAIRE:-
(Retailer Survey)
2) If yes, what is the size of Amul milk packets do you preferred to store?
a) 250 ml
b) 500 ml
c) 1 Ltr
d) 5 Ltr.
3) If No, Why?
a. Absence of packaging date
b. Low margin
c. No replacement for leakage
d. Low distribution
4) Which is the most preferable brand of packaged milk that you stock?
• Amul
• Chitale
• Katraj
• Gokul
• Others
81
5) From where do you get Amul milk?
a) Distributors
b) Other suppliers
a) Yes
b) No
7) Do you know which Sales promotional activities does the company undertake for
Amul
milk?
a) Yes
b) No
a) Yes
b) No
a) Yes
b) No
82
11) What is consumer’s expectation from Amul milk?
a) Good quality
b) Packaging
c) Availability
a) Quality
b) Brand image
c) Availability
d) Packaging
e) Margin
83
QUESTIONNAIRE:-
(Customer survey)
Yes No
Yes No
Other (Specify)……………………..
Yes No
84
7) How is the taste of Amul Tazza?
Yes No
f) Quality
g) Brand image
h) Availability
i) Packaging
j) Price
85