Professional Documents
Culture Documents
1
A REPORT ON THE PENETRATION OF AMUL MILK IN
RETAIL OUTLETS
VIDYASAGAR UNIVERSITY
Report submitted by
Name: Poushali Dutta
Roll No: PG/25/MBA-IIS 0214
Institute: Bengal Institute of Business Studies
Registration No: 01275
Company: Amul India (GCMMF)
Industry Mentor: Mr. Kaushik Chakraborty
This Project is submitted for the partial fulfillment of Masters of Business
Administration from Vidyasagar University
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ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my industry mentor Mr. Kaushik Chakraborty and faculty
mentor Ms. Priyanka Gangopadhyay and Mrs. Sulakshana Sinha, who gave me the golden opportunity to do this
wonderful Summer Internship Project Report on the topic “A REPORT ON THE PENETRATION OF AMUL
MILK IN RETAIL OUTLETS”, which also helped me in doing a lot of Research and I came to know about so
many new things I am really thankful to them.
Poushali Dutta.
3
DECLARATION
I hereby declare that the following project report titled “A REPORT ON THE PENETRATION OF AMUL
MILK IN RETAIL OUTLETS” in Amul India (GCMMF) at Kolkata 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 promotion is a profound and honest work of mine.
Poushali Dutta.
4
CONTENTS
1 EXCECUTIVE SUMMARY 6
2 INTRODUCTION 7
5 PRODUCT PROFILE 14
10 LIMITATIONS 34
CONCLUSION
12 36
13 BIBLIOGRAPHY 37
14 ANNEXURE 38-40
5
EXCECUTIVE SUMMARY
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 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 milk from Naihati to Kalyani. The
project included as part of MBA Programme and the project is done from 2nd April to 31st May 2019.
Title:
“THE PENETRATION OF AMUL MILK IN RETAIL OUTLETS”.
Organization:
Amul India (GCMMF).
Objective:
A record on standard operation procedures for Amul Milk at Retail Store.
To find size of retail network of Amul Milk within the allotted areas.
To find the problems faced by retailers in selling and storing.
To know about the competitors.
Research Methodology:
Research type was descriptive. The research was done through retailers. I have collected the primary data through
questionnaire which was filled by retailers, customers. Questions were both open and close ended. The secondary
data was collected from website www.amul.com.
Data Analysis:
The data analysis has done area wise. It gives idea about the competitors of Amul dairy milk. It gives information
regarding their market share.
Findings:
In the allocated region there are around more players in of liquid milk exist. Those are like Metro, Mother Dairy,
ITC, Thacker Dairy, Amul, Red cow and many other local brands. As per the findings AMUL 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 High to moderate. The sale is totally depending on the retailers.
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 moderate as other competitors present in the
market.
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INTRODUCTION
The dairy industries companies run mainly on the factors such as availability, service frequency, affordability, taste
and marketing. Availability is plays a vital role because purchasing power is depending upon availability of that
product, in case distributors and retailers service matter a lot.
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.
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 allotted areas. For analyzing and presenting information that is tied to
geographical location, we divided the areas in different markets. 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.
Finally, the whole study of the research work, the needs to grow network & penetration of Amul Milk in Retail
Outlets.
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. So market survey of retailers, 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.
This project helps to determine penetration level which can be used to influence large number of retailers so as to
increase the sales of the Amul milk effectively.
7
COMPANY PROFILE
‘Where there is unity, there is always victory.’
Proving the validity of the above-mentioned quote is a company that changed the entire milk procurement process
and spurred the White Revolution in India.
A company that was founded by a few farmers with a mission to stop the exploitation by middlemen, gradually
became the biggest brand in the nation. A brand that not only changed the lives of many poor farmers but also took
our nation to new heights. Let’s analyze the story of a brand that grew from being an infinitesimal firm to a huge
brand – ‘Amul –The Taste of India.’
It all started more than 73 years ago when poor farmers who worked hard, day in and day out were exploited by the
local traders and given small incentives. Angered by unfair and manipulative practices followed by local traders,
the farmers under the leadership of Tribhuvandas Patel approached Sardar Vallabhbhai Patel to resolve their
grievances.
Empathizing with the farmers, Patel Ji advised them to be self-sustaining entrepreneurs and work for themselves.
The farmers took the advice seriously and formed their own cooperative societies. What started with only a few
farmers producing 247 liters of milk grew into a fully-fledged organization with more than 3.6 million milk
producers producing around 14.85 million liters per day (Data till 2015).
Amul was founded in 1946 in Anand, Gujarat with a mission to stop the exploitation of the farmers by middlemen.
Amul is managed by the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which is jointly owned
by more than 3.6 million milk producers of Gujarat. Amul spurred the White Revolution in India, which placed
India at the top of milk producing nations. The Amul corporative was created by Dr. Varghese Kurien, who is also
known as the Father of the White Revolution in India.
More than 15 million milk producers pour milk in 144500 dairy cooperative societies across the country. Amul is
present in over 50 countries, and in India alone has more than 7200 exclusive parlors.
In 1999, Amul was awarded the “Best of All” Rajiv Gandhi National Quality Award “for maintaining the utmost
level of quality in its plants. Amul has been awarded the Guinness World Record for the longest running
advertisement campaign.
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Key Success Factors –
The Amul girl is the advertising mascot used by the company to promote the brand. The brand has been cleverly
using the cartoon figure in its longest running ad campaign, to instill an element of humor into its print ads. The
content is liked by the people and results in better customer engagement. This increases the brand recall value for
Amul. Hence, the Amul girl advertising campaign is often described as one of the best Indian advertising concepts.
2. Innovation
Amul has constantly been innovating – be it launching new products, creative marketing campaigns or challenging
traditional societal trends to come up with better ones.
In the 1960’s, Amul became the first brand in the world to make skimmed milk powder from buffalo milk. Also
with its three-tiered cooperative structure, Amul changed from traditional operations to a more cost-efficient and
effective structure.
For its continuous innovation, the brand won the “CNN-IBN Innovating for Better Tomorrow Award” and “World
Dairy Innovation Award” in the year 2014.
3. Strong Brand
Amul follows the Branded House Architecture way, wherein whatever they promote; they promote it under one
common brand name – Amul. The prime focus is on promoting the parent brand rather than individual products
which helps them gain more brand visibility and results in lesser marketing and advertising costs.
Amul follows a three-tier cooperative structure which consists of a dairy cooperative society at the village level that
is affiliated with milk unions at the district level which in turn is federated to a milk federation at the state level.
Milk is collected at the village dairy society, procured and processed at the district milk union and marketed at the
state milk federation.
The greatness of this model lies in the fact that Amul was the first company to follow this model, and it was
replicated all over the country under Operation Flood in the 1970’s. The model ensures that there’s efficiency and
swiftness in operations.
The Amul model has helped India become the largest milk producer in the world.
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Conclusion
This Polish proverb that rightly says, ‘If the farmer is poor then so is the whole country.’ It was Sardar Vallabhbhai
Patel, Tribhuvandas Patel and Dr. Varghese Kurien who must’ve understood what this quote meant and took certain
measures to stop the exploitation of the farmers.
It was their sheer determination and hard work that ensured a self-sustaining state for the farmers. Today, the brand
has enabled farmers to be entrepreneurs and earn their own living. The whole process is transparent has ensured
that there is no exploitation. The Amul brand has proved that it is not just a product but a movement that represents
the economic freedom of farmers. The brand has given farmers the courage to dream, to hope and to live. Amul in
all its sense has proved that it is Amulya i.e. ‘Priceless’ for our nation and that we must preserve it.
10
INDUSTRY PROFILE
The International Dairy Federation presents its annual World Dairy Situation report- an in-depth analysis of the
global dairy sector. The editing team aim to include the most accurate data and as many countries as possible.
Country Reports are primarily based on questionnaires completed by IDF National Committees and other national
contributors, as well as on official data from various recognized sources. The report not only provides a thorough
and detailed overview of the current dairy situation, but it also allows individual states to present information on
their own dairy sectors.
However, demand from importing countries could not absorb the additional output on the market, which resulted
in a sustained drop in dairy prices throughout the year. Average 2015 farm gate milk prices plunged dramatically
from their 2014 highs. Mergers and acquisitions continue to intensify and are becoming increasingly global.
International projections show a population of nearly 10 billion in 2050, which means increased demand for food
in the coming decades. In 2015, global per capita dairy consumption was estimated at 111.3 kg. According to the
OECD and FAO, this number should increase 12.5% by 2025. Consumption in developing countries should increase
further still. These trends are confirmed by national experts who completed the “Global Marketing Trends” survey
on predicted household dairy consumption in the coming decade.
The report aims to give an overview of the latest dairy data from around the world- starting with production,
processing and industry; to consumption, trade, and price forecasts. In-depth analyses of current trends, recent
developments and expected changes are also provided.
MILK PRODUCTION
World: cow’s milk production (share per region)
EU
24% Asia
29%
North and
Central Oceania
America 5%
Africa
18%
Other 5%
South
europe
america
9%
10%
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Indian Dairy Industry -- A Profile:
India’s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export
to Europe and the West. Moreover, with WTO regulations expected to come into force in coming years all the
developed countries which are among big exporters today would have to withdraw the support and subsidy to their
domestic milk product sector. Also India today is the lowest cost producer of per liter of milk in the world, at 27
cents, compared with the US’63 cent. Also to take advantage of this lowest cost of milk production and increasing
production in the country multinational companies are planning to expand their activities here. Some of those milk
producers have already obtained quality standard certificates from the authorities. This will help them in marketing
their products in foreign countries in processed form. The urban market for milk products is expected to grow at an
accelerated pace of around 33% per annum to around Rs.83, 500 crores by year 2010. This growth is going to come
from the greater emphasis on the processed food sector and also by increase in the conversation of milk into milk
products. By 2025, the value of Indian dairy produce is expected to be Rs 10, 00,000 million. Presently the market
is valued at around Rs7, 00,000mn
Co – Operative Unions:
Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice.
The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk
besides acting as a channel to market the production enhancement package. What's more, it does not disturb the
agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary
to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that
the profit goes to the participants for their socio-economic upliftment and common good. 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 rechristened 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. The dairy board's programs and
activities seek to strengthen the functioning of dairy cooperatives, as producer-owned and controlled organizations.
NDDB supports the development of dairy co-operatives by providing them financial assistance and technical
expertise, ensuring a better future for India's farmers. 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.
12
Some of the major dairy cooperative federations include: -
13
PRODUCT PROFILE
Milk is the “nature’s perfect food” for all ages. It has almost all the vital nutrients need for the growth and
well-being of human body. Milk is the richest natural source of calcium and essential amino acids, which
is good for bone formation. It is particularly beneficial for people recovering from sickness, for sportsmen,
for old people, for pregnant women and for growing girls and boys. The doctor recommends a minimum
daily intake of 250 ml or more for every person.
Normal cow milk has 4% Fat and buffalo has 7% Fat. There is another important constituent of milk is
Solids Non Fat (SNF). This (or SNF as it is commonly called) comprises of proteins, minerals,
carbohydrates and vitamins. For mil to be nutritionally balanced, it has to contain both Fat and Solids Not
Fat in proportion.
The PFA act lays down standards of Fat and SNF for various types of milk, as follows:
FAT SNF
1. Amul Taaza 3.0% Min 8.5% Min
2. Amul Gold 6.0% Min 9.0% Min
3. Amul Shakti 4.5% Min 8.5% Min
4. Amul Slim N Trim 1.5% Min 9.0% Min
5. Amul DTM Milk 3.5% Min 8.5% Min
In fact, we keep our standards higher so as to abundantly comply with the legal requirements and to provide
wholesome nutritive food to our consumers.
This means when you are buying Amul Milk you are sure to get the “nature’s perfect food” for your family.
You are sure to get your full 500 ml. in every pack. You are sure of getting milk, which has longer life
because of superior bacteriological quality and state of art processing technology
The loose milk available from local vendors often does not confirm to PFA standards. It often has less Fat
and less Solid Non Fat then required. Remember that if your milk contains 0.5% less Fat or SNF, you are
paying up to one rupee per pouch extra. Besides, it is not uncommon to find artificial preservatives, which
are not permitted by law being added to loss milk.
If you are buying cheap loose milk or even pouch milk, think again! By compromising on the quality of
milk, you may be depriving your children of essential life-building proteins and nutrients that only pure and
high quality Amul Milk will give.
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OBJECTIVE & SCOPE OF THE STUDY
Objectives of Project:
The main objective of the Study can be listed as follows:
Primary objective:
A record on standard operation procedures for Amul Milk at Retail Store.
To find size of retail network of Amul Milk within the allotted areas.
To find the problems faced by retailers in selling and storing.
To know about the competitors.
Secondary objective
To organize sale promotional activities to improve milk sales.
To generate and secure consumer awareness.
To improve existing retail network of Amul product.
Scope of Project:
The study carried out in specific cities so its scope is mainly limited to some areas of North 24
parganas & Kalyani.
It gives information about the size of the retail network.
It gives information about the services given by distributor to their retailer.
It gives information about the competitors’ products.
It will serve consumer in better manner.
It provides suggestions to the company to improve their products sales.
It gives information about the sales promotion activities to improve the milk sale
15
RESEARCH METHODOLOGY
The research was conducted from 8th June, to 8th July, 2009. The research includes meetings with the
retailers 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.
Research Approach:
The objective was to know the competitive position of Amul in the milk market thus in order 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 ITC or Mother Dairy in order to have an unbiased opinion of the concerned persons and it worked to
achieve our goal.
Research Instrument:
The research instrument was the structured questionnaire formulated for the respondents. The
questionnaire was for the retailers and dealers. There were also the area maps.
Types of Question:
The second important aspect in the designing a question is to decide which types of question
are to be used. Question can be classified in various ways.
Questionnaire contains following type information-
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 questions are few in number. There is only one open-ended
type question.
Phrasing of Question:
In questionnaire, I try to phrase the question in logical way. For example, I arrange question
in sequence as personal information, awareness data, usage data, and finally related to reason and
satisfaction.
Sampling Plan:
Sample Size:
The sample size was as follows:
1. Retailers 177
2. Dealers 4
16
Sampling Technique:
A stratified sampling technique was used. A different Stratum for different type of respondent within every
stratum the respondents was selected as per convenience basis.
Method of Survey:
Personal Interview:
It is direct form of investigation, involving face-to-face communication with free feedback information. It
offers a sense of participation. It is more flexible form of data collection. Use of unstructured, open-end
questions is possible. Rate of refusal is low. Depth interview is possible. Complex questions can be asked.
The interview can have questions to secure more information.
Observation approach can be combined to verify age, income, status, standard information. Visual aids in
the form of catalogues samples etc. can be used to get views, opinions, and attitudes of responder.
Area of Operation:
The areas of operation were the research was done are as follows:
• NAIHATI
• BAGHMORE
• HALISAHAR
• KANCHRAPARA
• KALYANI
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DATA ANALYSIS AND INTERPRETATION
Quality 7
Packaging 9
Availability 14
Affordability 24
NO. OF RESPONDENTS
yes no
27%
73%
Interpretation:
The above graph indicates that almost 3/4th of the retailers are selling packaged milk.
It also shows that packaged milk is popular among the retailers.
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2. Reasons for not keeping milk in retail shops.
No. of respondents
Others 3
Storage problem 7
Low distribution 11
No Replacement 6
Low margin 18
0 2 4 6 8 10 12 14 16 18 20
Interpretation:
This graph shows that 29 out of the 49 retailers who do not stock milk, are due to low
margin & low distribution.
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3. Types of brands retailers stock in their outlets.
Amul 23
Mother Dairy 18
Thacker Dairy 9
Red cow 4
Itc 14
Metro 7
Multiple brands 57
No. of respondents
Multiple brands 57
Metro 7
Itc 14
Red cow 4
Thacker Dairy 9
Mother Dairy 18
Amul 23
0 10 20 30 40 50 60
Interpretation:
57 retailers keep multiple brands instead of just one brand.
Out of all the single brand milk shops, Amul has the maximum numbers of shops.
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4. The most preferable brand of packaged milk as per consumer that retailers stock.
Amul 59
Mother Dairy 32
Thacker Dairy 14
Red cow 9
Itc 11
Metro 7
No. of respondents
Metro 7
Itc 11
Red cow 9
Thacker Dairy 14
Mother Dairy 32
Amul 59
0 10 20 30 40 50 60 70
Interpretation:
Amul is the most preferred brand amongst others.
59 out of 132 retailers agreed that Amul is the most consumer’s preferred brand.
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5. Source from where the retailers get Amul milk.
Distributors 53 80%
Whole sellers 9 14%
Other suppliers 4 6%
NO. OF RESPONDENTS
Distributors Whole sellers Other suppliers
6%
14%
80%
Interpretation:
Almost 80% of retailers said that they purchased milk from Amul distributors.
14% bought from whole sellers and 6% from others.
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6. Satisfaction of the retailers with Amul distributors.
Yes 41 62%
No 25 38%
NO. OF RESPONDENTS
Yes No
38%
62%
Interpretation:
61% of the retailers were satisfied with Amul milk distributors.
23
7. Varieties of Amul milk retailers stock.
Taaza 13
Shakti 7
Double Toned Milk 2
Gold 8
Slim N Trim 9
Multiple 27
No. of respondents
30
25 27
20
15
13
10
9
8
5 7
2
0
Taaza Shakti Double Toned Gold Slim N Trim Multiple
Milk
Interpretation:
Most of the retailers prefer to keep multiple varieties of Amul milk which helps to cater
different groups of customers.
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8. Quantities of each brand retailers stock.
Brands
Amount (crate) Mother
Amul Metro Red cow ITC Thacker Dairy
Dairy
<1 5 11 4 8 7 10
1 to 3 22 7 7 13 18 3
3 to 5 18 13 3 6 14 8
5 to 10 8 9 14 10 7 13
>10 13 0 1 8 11 9
Quantity of milk
Thacker Dairy
Mother Dairy
ITC
Brands
Red cow
Metro
Amul
0 5 10 15 20 25
>10 5 to 10 3 to 5 1 to 3 <1
Interpretation:
Most of the retailer kept Amul milk from 1-5 crate range.
25
9. Types of problem retailers face with Amul Milk.
Leakage 34
Supply timings 7
Availability 16
Ordering 11
No. of respondents
Ordering 11
Availability 16
Supply timings 7
Leakage 34
0 5 10 15 20 25 30 35 40
Interpretation:
The most common problem with Amul milk was leakage and packaging related issues.
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10. Retailer’s expectation from Amul milk.
Quality 20
Packaging 9
Availability 28
Affordability 12
No. of respondents
Affordability 12
Availability 28
Packaging 9
Quality 20
0 5 10 15 20 25 30
Interpretation:
Availability & Quality are the most expected attributes of Amul milk.
27
11.Retailer’s ratings to following attributes of Amul milk.
Margin
Packaging
Availability
Brand Image
Quality
0 5 10 15 20 25 30 35
Ratings Very bad Ratings Bad Ratings Average Ratings Good Ratings Very good
28
12.Retailer’s expectation from Mother Dairy milk.
Quality 7
Packaging 9
Availability 14
Affordability 24
No. of respondents
Affordability 24
Availability 14
Packaging 9
Quality 7
0 5 10 15 20 25 30
Interpretation:
24 retailers rated affordability to be the most expected attribute of Mother Dairy milk.
29
13. Retailer’s ratings to following attributes of Mother Dairy milk.
Margin
Packaging
Availability
Brand Image
Quality
0 5 10 15 20 25 30 35 40
Ratings Very bad Ratings Bad Ratings Average Ratings Good Ratings Very good
30
15.Retailer’s expectation from Aashirvaad svasti milk.
Quality 4
Packaging 12
Availability 10
Affordability 19
No. of respondents
Affordability 19
Availability 10
Packaging 12
Quality 4
0 2 4 6 8 10 12 14 16 18 20
Interpretation:
29 of the retailers rated affordability & availability to be the most expected attributes of
Aashirvaad svasti milk.
31
16. Retailer’s ratings to following attributes of Aashirvaad svasti milk.
Very good 0 4 9 3 0
Good 7 21 14 18 8
Average 19 17 18 21 22
Ratings
Bad 10 3 1 3 12
Very bad 9 0 3 0 3
Total 45 45 45 45 45
Margin
Packaging
Availability
Brand Image
Quality
0 5 10 15 20 25
Ratings Very bad Ratings Bad Ratings Average Ratings Good Ratings Very good
32
OBSERVATION & FINDINGS
• Retailers were not interested to start ADA because to start ADA one required large amount investment
i.e. near about 3 Lakhs and with this it is mandatory to sale only Amul products, so most of the retailers did
not show interest in ADA.
• I found that customers were complaining about the packaging especially packaging date because Amul
do not print packaging date on pouch.
• When question came to retailer’s ratings towards Amul milk rating most of the most respondents
complaining about profit margin and packaging date.
• 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.
33
LIMITATIONS
This report had to work under several constraints and limitations. Some of the key limitation are.
.
1. The survey is limited only for five areas.
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 two 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 does not
reflect the exact view because they may to biased.
34
SUGGESTIONS AND RECOMMENDATIONS
The Milk products market has reached Maturity stage in India large no. of Companies 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 follow
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.
Provide reasonable Margin to retailers as compared to competitors, this motivates them to promote
company’s milk and milk products.
Improve delivery schedule to provide products on time for the retailers about who claimed that
Amul milk is not available to them on time.
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.
Company should provide advertising facility like outside wall painting; provide company’s stand
boards, Posters which help to sell Amul milk.
Provide consistent service to retailers as this will help gain company goodwill in the market.
Our Research revealed that there is low awareness among the consumers regarding the Amul milk.
So it is advisable to the company to conduct various consumer awareness programs like distributing
of pamphlets outside the shops, giving coupons to encourage consumers to buy more quantity.
35
CONCLUSION
As we know that Amul is very big organization and market leader in dairy products. It has maximum market
shares in Milk, Butter, Cheese & Ice-Cream which are its main/core products. Also in case of local market
the Amul milk is a popular product as compared to other Amul Products. With the help of research,
company can find out these points in Milk product and can increase its market share and grow local retail
network. People have believed in Amul’s product and they will accept it more dearly, also if effective
actions were taken the lack of awareness can be mended.
The survey resulted into following conclusions:
Quality is the dominating aspect which influences consumer to purchase Amul product, but prompt
availability of other Milk brands and aggressive promotional activities by others influences the
consumer towards them and also leads to increase sales.
In comparison to Amul Milk, the other players such as Mother Dairy, Thacker Dairy, Metro, Red
cow & Aashirvaad svasti should provide a better availability and higher margin to give
competition to the hilt.
Setup a good way to let customers tell what they think about their experience with the brand in
specific locations.
Though Amul has more penetration in retail market than its other two competitors but it should
come up with more innovative price or coupon strategies and also should conduct more
promotional activities in newly opened outlets to create awareness among customers.
Retailers & customers are mostly satisfied with the overall quality of Amul Milk, but for the
existence in the local market Amul must use aggressive selling technique.
To build the kind of customer loyalty that actually drives revenue over time, one needs to
consistently deliver an ideal customer experience.
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BIBLIOGRAPHY
Books:
Marketing Management by Philip Kotler (15th edition).
Research Methodology Methods and Techniques by C.R. Kothari.
Websites & Journals:
Google
Amul India (GCMMF) website
National Dairy Development Board
The International Dairy Federation (IDF)
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ANNEXURE
QUESTIONNAIRE (Retailer Survey)
Name of the shop: __________________________________________________
Retailer Name: ____________________________________________________
Address: __________________________________________________________
2. If no, why?
a) Absence of packaging date b) Low margin
c) No Replacement for leakage d) Low distribution
e) Storage problem f) Others
4. Which is the most preferable brand of packaged milk as per consumer that you stock?
a) Amul b) Mother Dairy
c) Thacker Dairy d) Red cow
e) Itc f) Metro
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5. What is the source from where do you get Amul milk?
a) Distributors
b) Whole sellers
c) Other suppliers
a) Yes
b) No
<1
1-3
3-5
5-10
>10
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10. What is retailer’s expectation from Amul milk?
a) Quality b) Packaging
c) Availability d) Affordability
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14. What is retailer’s expectation from Aashirvaad svasti milk?
a) Quality b) Packaging
c) Availability d) Affordability
41