SUMMER TRAINING PROJECT

REPORT ON
THE TOPIC OF
“SALES FORECASTING”

ON

In Partial fulfillment of degree of

Master of Business Administration

at

MAHARANA PRATAP COLLEGE OF ENGINEERING

SESSION 2018-2020

SUBMITTED TO: SUBMITTED BY:

Mr. SHYAM DUBEY YADAV MANISH KUMAR ARUN KUMAR

MBA Department
1804670034

MBA Final Year

1|Page
 ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report of AMUL It has been

an enriching experience for me to undergo my project on Amul, which would not have

possible without the goodwill and support of the people around. As a student of

MAHARANA PRATAP COLLEGE OF ENGINEERING.

I would like to give my heartily thanks to MR.SHYAM DUBEY, Faculty guide, who

helped me at every step whenever needed, for having spared his valuable time with me

and for all the guidance given in executing the project as per requirements.

YADAV MANISH KUMAR ARUN KUMAR

MBA Final Year

1
 DECLARATION

I, Yadav Manish Kumar Arun Kumar, hereby

declare that research report on Sales

Forecasting on Amul, is a factual report of my

own project work undertaken towards partial

fulfillment of the degree of management. The

facts and figures presented here is correct and

true to best of knowledge & belief

YADAV MANISH KUMAR ARUN KUMAR

MBA Final Year

2
 PREFACE

As a student of M.B.A. (Master of Business Administration), one of the most

reputed professional course, I consider as my privilege to thank all the persons

involved in the working of this project and their supervision and guidance I have

been able to complete this research.

The attractive feature of the M.B.A. course is that along with theory we also get

to have the exposure of the practical environment. This is through the summer

training that we have to undergo after the completion of first year. The entire

journey from the very idea of this project report to reality would not have been

possible without guidance and support of many people. The Research Report is

based on Systematic and Scientific search for pertinent information on Specific

Topic.

The study was confined geographically to Delhi & Noida. The data source was

collected from the regular visits of Shopkeepers. The special task is also

assigned to me to analyze the market opportunities in different regions of Delhi.

It constitutes the Delhi regions and under that different counters have been

visited. A set of questionnaire was prepared & scrutinized before going for

market analysis.

1
 CONTENTS

TABEL OF CONTENTS PAGE NO.

 Introduction

 Research Objective

 Company profile

 Research methodology

 Data analysis

 Findings

 Conclusions

 Limitations

 Recommandation & suggestions

 Questionnaires

 Bibliography

2
AN INTODUCTION -TO FMCG INDUSTRY

The FMCG sector is a cornerstone of the Indian economy. This sector can drive

growth, enhance quality of life, create jobs, and support penetration of

technology. A vibrant FMCG sector can boost agricultural product and

export. It contributed to the exchequer significantly, disperse technology across

the value chain and usher in the product innovation. This innovation can

improve Indian Health standards.

Fast Moving Consumer Good (FMCG) industry has a long history. However,

the Indian FMCG began to take shape only during the last fifty-odd years Today,

the Indian

FMCG industry continues to suffer from a definitional dilemma. In fact, the

industry is yet to crystallize in terms of definition and market, size, among others.

The definitional confusion that has marked the Indian FMCG industry is

getting confounded. Some others call it the CPG industry and some even

call it the PMCG industry. The Indian FMCG industry has suffered because

of the confusion.

It is an industry which touches every aspect of human life from looks to hygiene

to palate. Perhaps defining as industry whose scope is so vast is not so easy.

3
The government is at crossroads not knowing how and where to slot the Indian

FMCG industry and unsurprisingly, the manner in which it has treated an industry

which holds tremendous promise as producer of goods that pervade everyday life

has been only callous. The facts that the FMCG industry is a noteworthy

employer and a major tax payer are being ignored.

The only thing that is cheering the industry are the reforms of the nineties. Post

reforms, the industries is excited about a burgeoning rural population whose

income are rising and which is a willing to spend on goods designed to improve

lifestyle. What is needed now is a change in the mindset of the mandarins,

FMCG industry -friendly legislation are the needs of the hour. It does not matter whether

changes are being brought about by dawning market realities or the ongoing

economic reforms. One thing is certain here: The Indian FMCG industry has a

promising future to look forward to.

In terms of growth potential, the Indian market is a great horse to bet on. With

a little help and understanding from the government, the Indian FMCG

can realize its true potential. So far, it has been a checked graph for the

MNC’s operating in the Indian FMCG industry. Domestic companies are only

beginning to make their presence felt in the industry. It has taken tremendous

consumer insight and market savings for the FMCG players to reach where they

are today. But, the journey has only begun.

4
 COMPANY PROFILE

Formally known as GCMMF, AMUL means “priceless” in Sanskrit. The

brand name “AMUL” from the Sanskrit “Amoolya,” was suggested by a quality

control expert in Anand. Amul products have been in use in millions of homes

since 1946. Amul butter, Amul milk powder, Amul ghee, Amul spray, Amul

cheese, Amul chocolates, Amul Shrikhand, Amul ice cream, Nutramul, Amul

milk and Amulya have made Amul a leading food brand in India. Today Amul is

a symbol of many things… of high quality products sold at reasonable prices…

of the genesis of a vast cooperative network… of the triumph of indigenous

technology… of the marketing savvy of a farmers organization… and of a proven

model for dairy development.

50 years after it was first launched, Amul sales figures have jumped from

1000 tonnes a year in 1966 to over 25000 tonnes a year in 1997 and sales figure

of rupees 11140 millions in 1994-95 to rupees 23365 millions in 2012-13. No

other brand comes even close to it. It was all because a thumb sized girl climbed

on to the hoardings and put a spell on the masses.

For thirty odd years the Utterly Butterly girl has managed to keep her fan

following intact. So mush so that the ads are now ready to enter the Guinness

Book of World Records for being the longest running campaign ever. The

5
ultimate compliment to the butter came when a British company launches butter

and called it Utterly Butterly, few years back.

50 years after it was first launched, Amul sales figures have jumped from

1000 tonnes a year in 1966 to over 25000 tonnes a year in 1997. No other brand

came even close to it. All because thumb sized girl climbed on the hoardings and

put a spell on the masses.

Mumbai: summer of 1967. A charni road flat. Mrs. Sheela Mane, a 28

year old house wife is out in the balcony drying clothes. From her second floor

flat she can see her neighbors on the road. There are other people too. The crowd

seems to be growing larger by the minute. Unable to curb her curiosity Sheela

mane hurries down to see what all the commotion is about. She expects the worst

but can see no signs of an accident. It is her four year old who draws her attention

to the hoarding that has come up over night. “It was the first Amul hoarding that

was put up in Mumbai,” Recalls Sheela mane. “People loved it. I remember it

was our favourite topic of discussion for the next one week! Everywhere we went

some how or the other the campaign always seems to crop up in our

conversation.”

Call her the Friday to Friday star. Round eyed, chubby cheeked, winking

at you, strategically placed hoardings at many traffic lights. She is the Amul

moppet everyone loves to love (including prickly votaries of the Shiv Sena and

6
BJP). How often have we stopped, looked chuckled at the Amul hoardings that

casts her sometime as the coy, shy Madhuri, a bold sensuous Urmila or simply as

her self, dressed in her little polka dotted dress and a red and white bow, holding

out her favourite packet of butter.

For 30 odd years the Utterly Butterly girl has managed to keep her fan

following intact. So much so that the ads are now ready to enter the Guinness

book of world records for being the longest running campaign ever. The ultimate

compliment to the butter came when a British company launched butter and

called it Utterly Butterly.

It all began in 1966 when Sylvester daCunha, then the managing director

of the advertising agency, ASP, clinched the account for Amul butter. The butter

which had been launched in 1945, had a staid, boring image, primarily because

the earlier advertising agency which was incharge of the account preferred to

stick to routine, corporate ads.

In India, food was something one couldn’t afford to fool around with. It

had been taken too seriously, for too long. Sylvester daCunha decided it was time

for change of image.

The year Sylvester daCunha took over the account, the country saw the birth of

a campaign whose charms has endured fickle public opinion, gimmickry and all

else.

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 The Amul girl who lends herself so completely to Amul butter, created as

a rival to the Polson butter girl .This one was sexy, village belle, clothed in a

tantalizing choli all but covering her upper region.“ Eustace Fernandez (the art

director) and I decided that we needed a girl who would warm her way in to a

house wife’s heart. And who better than a little girl?” says Sylvester daCunha.

And so it came about that the famous Amul moppet was born.

That October, lamp kiosks and the bus sites of the city were splashed with

the moppet on a horse. The base line simply said, through bread, Utterly Butterly

delicious Amul… it was matter of few hours before the daCunha office was

ringing with calls. Not just adults, even children were calling up to say how much

they had liked the ad. “The response was phenomenal,” recalls Sylvester

daCunha. “We knew our campaign was going to be successful.”

For the first one year the ads made statements of some kind or the other

but they had not yet acquired the topical tone. In 1967, Sylvester decided that

giving the ad a solid concept would give them extra mileage, more dum, so to

say. It was a decision that would stand the daCunha in good stead in the years to

come.

In 1969, when the city first saw the beginning of the Hare Rama Hare

Krishna movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar,

than the creative team working on the Amul account came up with a clincher—‘

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Hurry Amul, Hurry Hurry’. Mumbai reacted to the ad with a fever that was almost

as devout as the Iskon fever.

From the sixties to the nineties, the Amul ads have come a long way. While

most people agree that the Amul ads were at their peak in the eighties they still

maintain that the Amul ads continue to tease laughter out of them.

Where does Amul’s magic actually lie? Many believe that the charm lies

in the catchy lines. That we laugh because the humour is what anybody would

enjoy. They do not pander to your nationality or certain sentiments. It is pure and

simple, every day fun.

The Amul Model is a three-tier cooperative structure. This structure consists of a

dairy cooperative society at the village level affiliated to a milk union at the

district level which in turn is federated into a milk federation at the state level.

Milk collection is done at the village dairy society, milk procurement and

processing at the District Milk Union and milk and milk products marketing at

the state milk federation. The structure was evolved at Amul in Gujarat and

thereafter replicated all over the country under the Operation Flood programme.

It is known as the 'Amul Model' or 'Anand Pattern' of dairy cooperatives.

The main functions of the VDCS are:

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 Collection of surplus milk from the producers of the village and payment

based on quality and quantity,

 Providing support services to the members like veterinary first aid, artificial

insemination services, cattle-feed sales, mineral mixture sales, fodder and

fodder seed sales, conducting training on animal husbandry and dairying,

 Selling liquid milk for local consumers of the village,

 Supplying milk to the District Milk Union.

State Cooperative Milk Federation (Federation)[edit]

The main functions of the federation are as follows:

 Marketing of milk and milk products processed/manufactured by Milk

Unions,

 Establish a distribution network for marketing of milk and milk products,

 Arranging transportation of milk and milk products from the Milk Unions to

the market,

 Creating and maintaining a brand for marketing of milk & milk products,

 Providing support services to the Milk Unions and members like technical

inputs, management support and advisory services,

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 Pooling surplus milk from the Milk Unions and supplying it to deficit Milk

Unions,

 Establish feeder-balancing dairy plants for processing the surplus milk of the

Milk Unions,

 Arranging for common purchase of raw materials used in

manufacture/packaging of milk products,

 Decide on the prices of milk and milk products to be paid to Milk Unions,

 Decide on the products to be manufactured at Milk Unions and capacity

required for the same.

 Conduct long-term milk production, procurement and processing as well as

marketing planning.

 Arranging finance for the Milk Unions and providing them technical know-

how.

 Designing and providing training in cooperative development and

technical and marketing functions.

 Conflict resolution and keeping the entire structure intact.

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Today, there are around 176 cooperative dairy unions formed by 125,000 dairy

cooperative societies, having a total membership of around 13 million farmers on

the same pattern, who are processing and marketing milk and milk products

profitably, be it Amul in Gujarat or Verka in Punjab, Vijaya in Andhra Pradesh,

Milma in Kerala, Gokul in Maharashtra, Saras in Rajasthan or a Nandini in

Karnataka. This process has created more than 190 dairy processing plants spread

all over India with large investments by these farmers' institutions. These

cooperatives today collect approximately 23 million kg of milk per day and pay

an aggregate amount of more than Rs. 125 billion to the milk producers in a year.

HISTORY

Amul the co-operative registered on 1 December 1946 as a response to the

exploitation of marginal milk producers by traders or agents of the only existing

dairy, the Polson dairy, in the small city distances to deliver milk, which often

12
went sour in summer, to Polson. The prices of milk were arbitrarily determined.

Moreover, the government had given monopoly rights to Polson to collect milk

from mikka and supply it to Bombay city.[7][8]

Angered by the unfair trade practices, the farmers of Kaira

approached Sardar Vallabhbhai Patel under the leadership of local farmer

leader Tribhuvandas K. Patel. He advised them to form a cooperative and supply

milk directly to the Bombay Milk Scheme instead of Polson (who did the same

but gave them low prices).[9] He sent Morarji Desai to organise the farmers. In

1946, the milk farmers of the area went on a strike which led to the setting up of

the cooperative to collect and process milk.[8] Milk collection was decentralized,

as most producers were marginal farmers who could deliver, at most, 1–2 litres

of milk per day. Cooperatives were formed for each village, too.[10]

The cooperative was further developed and managed by Dr.Verghese

Kurien with H.M. Dalaya. Dalaya's innovation of making skim milk powder

from buffalo milk (for the first time in the world) and a little later, with Kurien's

help, making it on a commercial scale,[11] led to the first modern dairy of the

cooperative at Anand, which would compete against established players in the

market.

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The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy

soon spread to Anand's neighbourhood in Gujarat. Within a short span, five

unions in other districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat

– were set up.[8] To combine forces and expand the market while saving on

advertising and avoid competing against each other, the GCMMF, an apex

marketing body of these district cooperatives, was set up in 1973. The Kaira

Union, which had the brand name Amul with it since 1955, transferred it to

GCMMF.[12]

In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality

Award.[13]

Adding to the success, Dr. Madan Mohan Kashyap (faculty Agricultural and

Engineering Department, Punjab Agricultural University Ludhiana), Dr.

Bondurant (visiting faculty) and Dr Feryll (former student of Dr Verghese

Kurien), visited the Amul factory in Gujarat as a research team headed by Dr.

Bheemsen. Shivdayal Pathak (ex-director of the Sardar Patel Renewable Energy

Research Institute) in the 1960s. A milk pasteurization system at the Research

Centre of Punjab Agricultural University (PAU) Ludhiana was then formed

under the guidance of Kashyap.

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 Way back in December, 1946 the seeds of what was later to become the

Amul juggernaut were sown. Following strategic advice from Sardar Vallabhbhai

Palel and nifty footwork by Shri Morarji Desai, a handful of farmers formed milk

co-operative in Kaira district. About 250 liters of milk collected daily from the

farmers of two village co-operative societies was pasteurized and send to the

Bombay milk scheme. The first lesson in milk marketing was learnt when an

assured outlet for milk in Bombay stimulated increased milk in the villages of

Kaira district. More and more farmers joined hands in more villages to supply

milk. The Amul milk co-operatives started growing rapidly.

The second lesson in marketing came some seven years later. Even by

1953, all the milk collected by Kaira’s village co-operative societies in peak

winter months was not accepted by the Bombay milk scheme. It had to be sold

as surplus milk at low prices to middlemen. A need was felt for building a dairy

plant with powder and butter manufacturing capacity that would process and

utilized all the milk supplied by the farmers. This was accomplished by 1955.

To legendary figures of the Indian dairy industry - Tribhuvandas K. Patel

and Verghese Kurien made all these possible. Together they consolidated, scaled

up and developed the milk co-operatives. Many milestones were created one after

another. New products were added, the brand name AMUL was created and milk

15
co-operatives on the lines of Anand were from in other districts of Gujarat in

quick succession. The Gujarat Co-operative Milk Marketing Federation

(GCMMF) was born in 1973 to market the products being packed at several dairy

plants in the states under the brand name ‘AMUL’.

The dairy business reached new heights year after year. The magic of milk

co-operative was working not only in Gujarat but also elsewhere across the

country under Operation Flood of NDDB where the Anand pattern of dairying

was being replicated in its entirely breeding, feeding, milk collection, cattle

management, disease control, The dairy industry of India was coming into its

own. There was no looking back.

THE MODERN FACE OF AMUL

The nineties brought in some winds of change. Liberalization of the

countries economy was being talked about. In the milk business the scene had

changed from one of shortages of self sufficiency. While everything seemed to

be going well, there was a growing realization of the need to manage effectively

the ever expanding milk business in tune with changing times. Would the dairy

16
managers be able to handle the business through the existing systems and

processes? Two factors needed attention (1) How to cater to ever changing

aspirations of the customers and, (2) How to improve the quality of products and

services that GCMMF offered. The organization had to brace themselves to effect

the change fast and with as little pain as possible. Information technology had to

be incorporated in our systems and the organizations made learning organization

through perpetual training and retraining.

In 1994, to facilitate the above information GCMMF decided to introduce

the concept of Total Quality Management (TQM) with its twin pillars of

customers focus and continuous improvement. This package entailed employee

involvement, waste reduction, problem solving techniques and improvement of

the processes, together with continuous training. Shri B.M. Vyas who had then

just taken over as the managing director of GCMMF took up this gamble and

decided to lead the organization from the front. He was ably assisted by Shri

James Joseph (now in U.S.). Six years down the line and organization has been

transformed.

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 BEGINNING OF THE SAGA

In the early years of 1900’s POLSON emerged a new name in the history

of dairying in Kaira. Pestonji Edulji Dalal was born in Mumbai of poor

Parsi parents on February28,1875 was the person behind Poison. He had

begun his one man operation in 1988 but by 1900 he was doing quite well,

enough to shift to a slightly larger place near Mumbai’s famous Crawford

Market which was patronized by the city’s elite. Needing a name for

promoting his product and wanting, in the spirit of those time, to have on

English-sounding name, he hit upon “Poison”. Later , as his enterprise

thrived, he was to be known more simply, but adequately, as Seth Poison.

And Poison itself was to become a great name. A national name and

the first name in India for branded coffee and butter. There was also to

come a stage when Poison entered the English language as an everyday

word. To “POLSON” meant buttering up some one flattering the boss.

Poison’s contractors were men who had been in the business of collecting

milk and cream for a long time and many people were asked to suggest a brand

name for the milk products. Philip and Kurien went over each and every

one of them carefully, until, one day, Dr. M.K. Patel , formerly professor of

18
microbiology at Poona Agriculture college, during his visit to ANAND in

his capacity as advisor on the setting up quantity control laboratory,

suggested the brand name of AMUL The name that was to be blazoned

billboards all over the country: AMUL. Amul stood for the Sanskrit Amulya-

invaluable, priceless! In a Gujarati dialect. Both felt that it had distinctly Indian

touch. Also, it had ascertained class that went with high quantity. AMUL

conjured a product unsurpassed. In excellence, the name was short, easily

remembered and could just easily go as an acronym for ANAND MILK

UNION LIMITED. There was no such thing as Anand Milk Union ltd. The

parent organization has the widely name of Kaira district Co-operative milk

producers union and no acronym would have been possible out of that. There

after the products of Kaira unions were called as AMUL.

they knew how to handle errant farmers with perhaps one or two buffaloes that

gave milk, and provided them with limited source of income. Kurien later was use

to say that if Poison had either given the farmer a fair price or had decided to buy

all that the farmer produced throughout the year, he would not have to face

any difficulties and the Kaira Milk Co-operatives would then have had no

rationale to be established.

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But Poison entire business training ran on different lines. Poison was shrewd, but

not wise clever but could not for see what Co-operatives could do to undo him.

He was , of course, to learn this lesson late in life.

Soon after V. Kurien took over as manager of the Kaira Co-operatives plant he

had confirmation with Poison. Kurien was not getting a proper price for the

surplus milk and cream he was selling to Poison and so wanted to make

butter out of it. That would have been completion with Poison. But Kurien was

willing to make a compromise, provided Poison bought the surplus milk of the

Co-operative.

Kanpur Co-operative Milk Marketing Federation

GCMMF: An Overview

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Kanpur Co-operative Milk Marketing Federation (KCMMF) is India's largest

food products marketing organization. It is a state level apex body of milk

cooperatives in Kanpur which aims to provide remunerative returns to the

farmers and also serve the interest of consumers by providing quality products

which are good value for money.

Members: 12 district cooperative milk producers' Union

No. of Producer Members: 2.41 million

No. of Village Societies: 11,615

Total Milk handling capacity: 13.79 million litres per day

Milk collection (Total – 2012-13): 5.08 billion litres

Milk collection (Daily Average 2012-13): 8.71 million litres

Milk Drying Capacity: 511 metric Tons per day

Cattle feed manufacturing Capacity: 2340 Mts per day

AMUL’S VALUES

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 Customer orientation

 Commitment to producers

 Integrity

 Cooperation

 Excellence

 Leadership

 Quality

 Innovation

 Growth orientation – new products

 Belongingness

 Pride in organization

 Employee satisfaction

KANPUR CO-OPERATIV MILK MARKETING

FEDERATION

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G C M M F : A n Ov e r v i e w

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

food product marketing organization. It is a state level apex body of milk

cooperatives in Gujarat, which aims to provide remunerative returns to the

farmers and also serve the interest of consumers by providing quality products,

which are good value for money.

Members: 12 district cooperative milk producers’ Union

No. Of Producer 2.28

million Members:

No. Of Village Societies: 11,132

Total Milk handling 6.7 million litres per

day capacity:

Milk collection (Total - 1.86 billion

litres 2002-03):

Milk collection (Daily 5.08 million

litres Average 2002-03):

Milk Drying Capacity: 510 metric Tons per day

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Cattle feed 1450 Mtrs per

day manufacturing Capacity:

AMUL’S MISSION

We at KCMMF endeavor to satisfy the taste and nutritional requirements

of the customers of the world, through excellence in marketing by our committed

team.

Through cooperative networking, we are committed to offering quality

products that provide best value for money.

JOURNEY 2012

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 KCMMF will be an outstanding marketing organization, with

specialization in marketing of food and dairy products, both fresh and long life,

with customer focus and information technology integration.

The network would consist of over 100offices, 7500 (4000 urban, 3500

rural) stockiest covering at least every taluka headquarter town, serving nearly

10 lakh outlets with a turnover of Rs. 10,000 crores, and serving several

cooperatives.

KCMMF shall also create a market for its products in neighboring

countries.

AMUL’S STRATEGIC THRUST AREAS

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  Build capability of marketing fresh products

 Expand marketing of existing products

 Identify and market new products

 Rationalizing taxes

 Integration through IT

 Attract and retain quality manpower

 Integration of cooperatives with common branding

LIST OF PRODUCTS MARKETED

Breadspreads:

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  Amul Butter

 Amul Lite Low Fat Breadspread

 Amul Cooking Butter

Cheese Range:

 Amul Pasteurized Processed Cheddar Cheese

 Amul Processed Cheese Spread

 Amul Pizza (Mozarella) Cheese

 Amul Shredded Pizza Cheese

 Amul Emmental Cheese

 Amul Gouda Cheese

 Amul Malai Paneer (cottage cheese)

 Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

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

 Amul Amrakhand

27
  Amul Mithaee Gulabjamuns

 Amul Mithaee Gulabjamun 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-n-Trim Milk 0% fat milk

 Amul Shakti Toned Milk

 Amul Fresh Cream

 Amul Snowcap Softy Mix

Pure Ghee:

 Amul Pure Ghee

 Sagar Pure Ghee

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  Amul Cow Ghee

Infant Milk Range:

 Amul Infant Milk Formula 1 (0-6 months)

 Amul Infant Milk Formula 2 ( 6 months above)

 Amulspray Infant Milk Food

Milk Powders:

 Amul Full Cream Milk Powder

 Amulya Dairy Whitener

 Sagar Skimmed Milk Powder

 Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

 Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

 Amul Taaza Toned Milk 3% fat

29
  Amul Gold Full Cream Milk 6% fat

 Amul Shakti Standardised Milk 4.5% fat

 Amul Slim & Trim Double Toned Milk 1.5% fat

 Amul Saathi Skimmed Milk 0% fat

 Amul Cow Milk

Curd Products:

 Yogi Sweetened Flavoured Dahi (Dessert)

 Amul Masti Dahi (fresh curd)

 Amul Masti Spiced Butter Milk

 Amul Lassee

Amul Icecreams:

 Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

 Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza,

Roasted Almond)

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  Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh

Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)

 Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

 Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,

Chococrunch, Megabite, Cassatta)

 Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake

Magic)

Chocolate & Confectionery:

 Amul Milk Chocolate

 Amul Fruit & Nut Chocolate

Brown Beverage:

 Nutramul Malted Milk Food

Milk Drink:

 Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom,

Rose, Chocolate)

 Amul Kool Cafe

31
Health Beverage:

 Amul Shakti White Milk Food

32
 KEY PLAYERS

Key players in this industry are Mother Dairy, Amul, Paras, Gopalji. But

Mother Dairy dominates this industry. The reason for its success is that it is the

market leader of packaged milk and its quality and advertisement also play major

role in its success.

As a pioneer in the packaged milk industry, Mother Dairy secured first-

mover advantage in the market. It has sustained this advantage through

outstanding product quality and a well-oiled distribution network. This has

helped Mother Dairy to ensure that its brand has the highest top-of-mind

awareness among consumers. During the 1990s, when the growth potential in the

packaged milk market attracted new players, including a couple of large

industries, some observers thought Mother Dairy would take a hit. It hasn’t the

brand has actually grown in value and volume.

However, growing awareness of health and hygiene issues and increasing

prosperity have boosted the demand for branded pasteurized milk. In this

scenario, Mother Dairy is the best-placed brand. And it retains more than 80%

share of the branded milk in Delhi market despite the entry of new players.

33
 Mother Dairy always rides an emotional wave with its advertisement

campaigns. It also attempts to elevate the brand to the status of a health icon-

“Piyo Pure”

Also the reason for its success is its quality. Still consumers feel that

Mother Dairy is better than any other milk in the market. It has captured the

maximum share of this industry.

AVAILABILITY & VISIBILITY OF KEY PLAYERS

34
 Most of the milks are available at every shop. Mother Dairy is present

nearly on every shop as it is the necessity of the retailers to keep it so as to retain

the customers. Other branded milks are also present in every shop but they are

uneven in availability.

In this tough competition in the milk industry availability is one of the

factors for success. When Britannia was launched, its advertising campaign was

very attractive therefore it created a huge demand in the market, but proper supply

or adequate supply was not there in the market, and quality and taste was as good

as Mother dairy, and hence its sales got down.

The customer are not as much brand loyal in this industry, they comes to

the retailer shop and ask for Mother Dairy milk but if it is not available then it is

not that they come out of the shop and search for Mother Dairy, in spite of this

they take any other milk which is advised by the retailer or supplied by the

supplier (suppliers are those who gives the home delivery of milk) because milk

is not luxury but it is the necessity. So keeping this point in view, Amul must be

made available at every shop.

Although Amul milk is available on most of the shops but there are some

shops, which are left uncovered by the sales agents, so the company needs to

focus on covering those uncovered shops in Delhi city.

DISTRIBUTION PROCESS

35
 Product flow

Factory

C&F Agent

Distributor

Retailers

Consumers

DISTRIBUTION PROCESS

36
 There is a distributor for every milk in the sub city, his job is to ensure the

distribution of milk to each and every area and outlet in the sub city.

This distributor works as a representative of the company for the retailers.

Further this distributor ensures the supply of milk to the customers with the help

of retailers. Sometime distributor delivers the product directly to the customer.

So there are two main players in the distribution process:

1. Distributor

2. Retailers

The company delivers the product to the distributor with the help of C&F

agent, and the distributor further distributes the product to the customers with the

help of retailers. For this distribution distributor forms a team of sales agents.

These sales agents go to every market in the sub city and check for the demand

and supply of milk for the retailers. These sales agents work as a link between

the retailers and the distributor. Supervisors are appointed to check the working

of these sales agents. The supervisor is responsible for the working of his sales

agents.

TRADE SCHEMES

37
 The company gives schemes to the distributor when the quantity is large.

The sole purpose of scheme is to encourage the purchase. These schemes may be

in the form of discount or in the form of gifts.

Other types of schemes are launched for the retailers to encourage the

purchase of milk. These schemes may be issued by the company or by the

distributor also.

Retailers normally prefer the reduction in the net rate of the milk as a

scheme. They like scheme on which milk is free on the purchase of milk rather

than anything else is free on the purchase of milk. This creates problem for the

retailers, e.g. suppose on the purchase of one crate of milk company was giving

two pouch of curd free. Now this will create inventory problem for the retailers.

First he has to store curds in the store. Secondly sometime retailer demands the

free gift by purchasing only half crate of milk and says that he will purchase the

rest half crate next day and then the scheme will be satisfied.

The biggest problem in such type of schemes is that customer demands for

the reduction in the net rate rather than anything else. So the retailers always

prefer the reduction in the net price rather than the scheme or they prefer the

scheme in which milk is free on milk. So that the net effect of the scheme is the

reduction in price.

38
 MARKETING RESEARCH

The American marketing association defines marketing research as

follows:

“Marketing Research is the functional links to the customers, consumers & public

to marketing through information. Information used to identify and define

marketing opportunities and problems; generate, define and evaluate marketing

actions; monitor marketing performance and improve understanding of

marketing process.”

Marketing Research specifies the information requires addressing these

issues, designing the method for collecting information, managing and

implementing the data collecting process, analyzing the result and

communicating the findings and their implementations.

39
 OBJECTIVE OF RESEARCH

“Establish a suitable channel for distribution between the distributor and

consumers by eliminating the retailers from the distributor channel with the aim

to promote Amul milk and to give better facilities and services to the consumers

of Dwarka sub city.”

40
 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research

problem. It may be understood as a science of studies how research is done

scientifically. Research methodology has many dimensions.

The purpose of methodology is to describe the process involved in the

research work. This includes the overall research design, the data collection

process, the sampling process, the field survey, and analysis procedure.

41
 RESEARCH DESIGN

Research Design consists of three parts:

1. Exploratory Research

2. Descriptive Research

3. Causal Research

An exploratory research focuses on the discovery of idea and is generally

based on secondary data. It is preliminary investigation that does not have a rigid

design. This is because a researcher engaged in an exploratory study that may

have to change his focus as a result of new ideas and relationship among the

variables.

A descriptive study is undertaken when the researcher wants to know the

characteristics of certain group such as age, sex, educational level, income, and

occupation etc.

A casual research is undertaken when the researcher is interested in

knowing the cause and effect relationship between two or more variables. Such

studies are based on reasoning along well-tested lines.

42
 DATA SOURCE

Data is generally of two types:

1. Primary data

2. Secondary data

Primary Data are those data specially collected for problem in hand. In

this study data were collected from primary sources in personal interview of

retailers and interaction with consumers by survey method.

These methods of data collection are quite popular. These are the major

methods of data collection in the research study.

Secondary Data are those data, which are collected for some purpose

other than helping and solving the problem in hand.

Sources of secondary data are:

 Old reports

 Company records

 Magazines

 Company web site (http://www.amul.com)

43
Sample Procedure:

How should the respondents be chosen? To get the most feasible and

accurate result, simple random probability sampling method was adopted for

direct interview of retailers and cluster sampling was used to communicate the

consumers from different apartments of different sectors for the survey.

In simple random probability sampling, probability of being chosen as a

sample unit for each unit in the population is equal. Each sample unit from the

population is chosen randomly. Probability of being chosen as a sample unit

depends upon the population size and no. of sample units to be chosen.

While in cluster (area) sampling the population is divided into mutually

exclusive groups (such as city blocks, sectors etc.), and the researcher draws a

sample of the groups using random sampling. Sometimes researcher again draws

sample units of respondents from the selected groups, it is known as two step area

sampling.

44
Sample Size:

Distributors 1

Retailers 25

Consumers 1244

Field Work

During the survey sample packs of Amul milk and curd have been distributed

among the selected consumers, and their feedbacks have been taken regarding

those samples.

I have covered the following societies for the survey and promotion of Amul milk

 Harmony Apartment

 Shah Jahanabad Apartment

 Himachal Apartment

 Green Heaven Apartment

 United Apartment

 Shri Krishna Apartment

 Kalyani Apartment

 Brindawan Garden Apartment

45
 Anant Apartment

 Naveen Apartment

 Katyayani Apartment

 Vidyut Apartment

46
 RESEARCH APPROACH

Primary data can be collected in various ways: through observation, focused

group, surveys, behavioral data, and experiments. During this research data have

been collected using survey method. Survey method is best suited for descriptive

research. Companies undertake surveys to learn about people’s knowledge,

beliefs, preferences, and satisfaction, and to measure these magnitudes in the

general population.

Research Instrument:

Questionnaire is most common research instrument in collecting primary data

during marketing research. A questionnaire consists of a set of questions

presented to respondents. Because of its flexibility, the questionnaire is by far the

most common instrument used to collect primary data.

47
 SWOT ANALYSIS

STRENGTHS:

 Amul is the oldest Milk Marketing Federation in India.

 It has a large network of villages from where it collects milk.

 Amul is a reputed and well known company in India, its products are easily
recognized by the customers.

 Amul has evolved from a single product company to Multi-product

Corporation.

 Its products range is spread over a wide spectrum, from milk and curd to
ice cream and chocolate.

 Customers will at least think of using the product once and check its
quality, as it is the product of Amul.

 Amul has the oldest ad campaign in the country.

WEAKNESSES:

 Amul perceived old traditions.

 It is good in quality but not better than Mother Dairy.

 Advertisement is not frequent.

 Mother Dairy has the advantage of being the market leader of packaged
milk in the market.

 Price is competitive as compared to other brands in the market, but margin

to the distributor is less than that of other brands.

48
  Amul milk has been launched just one and half year back in Delhi, so
awareness among the people is low about the Amul milk.

 It lacks in aggressive marketing approach, which is helping competitors.

OPPORTUNITIES:

 There is a huge opportunity in milk market.

 Mother Dairy is available since last so many years in the market, and it has
dominated this industry, so people need change.

 If Amul provide a better taste and quality then it can swap most of the
customers of Mother Dairy with least effort.

 Customers always believe that there is a chance of improvement.

 Milk is basic necessity for daily use; everyone needs it daily for one or
other reason.

 Average consumption of milk is 1-2 liter in each house.

 In Delhi about 72% of total milk market is packaged milk market and rest
is of loose milk. So there remains a big area to be covered.

THREATS:

 There is a very tough competition with other brands.

 Better image of competitor in particular segment.

 Mother Dairy is dominating milk in the market, quality wise and price
wise.

 Market is too price sensitive.

 People are using Mother Dairy and other brands since so many years, so it
is difficult for them to suddenly change the brand and taste that has already
been developed. So it is really difficult to convince the

49
 DATA ANALYSIS

Total Milk Consumption (per day)

Total milk consumption 28200 Ltrs.
Mother dairy 18000 Ltrs.
Amul 2400 Ltrs.
Other packaged milk 1800 Ltrs.
Loose milk 6000 Ltrs.

Total Milk Consumption

21%

6%

9% 64%

Mother Dairy Amul

Other pakaged milk Loose milk

Mother Dairy has dominated milk industry in Delhi. Around 65% of total milk
market in Dwarka has been captured by Mother dairy. Other brands include
Paras, Gopalji etc.

50
 Total Packaged Milk

Total consumption 22200 Ltrs.

Amul & Mother Dairy 20400 Ltrs.
Others 1800 Ltrs.

Total Packaged Milk

8%

92%

Amul & Mother Dairy Others

Only 8% of total packaged milk market is of local brands.

51
 Packaged Milk Market in Terms of Volume
(Before Promotion)

Total milk consumption 22200 Ltrs.

Mother dairy 18000 Ltrs.
Amul 2400 Ltrs.
Others 1800 Ltrs.

Total Packaged Milk (Volume)

8%
11%

81%

Mother Dairy Amul Others

52
 Packaged Milk Market in Terms of Money
(Before promotion)

Total milk consumption Rs. 357420

Amul Rs. 39168
Mother dairy Rs. 289800
Others Rs. 28452

Total Packaged Milk (Money)

81%

8%
11%

Amul Mother Dairy Others

Amul had around 11% market share in Dwarka.

Packaged Milk Market in Terms of Volume

53
 (After Promotion)

Total milk consumption 22272 Ltrs.

Mother dairy 14664 Ltrs.
Amul 5832 Ltrs.
Others 1776 Ltrs.

Total Packaged Milk (Volume)

8%
26%

66%

Mother Dairy Amul Others

After promotion, sale of Amul in Dwarka sub city has been increased by 143%
(i.e. from 2400 Ltrs. to 5832 Ltrs. Per day). Most of the customers, who have
switched to Amul, were the customers of Mother Dairy.
Consumption of Milk Before and After
Sales Promotion

54
 20000
17500
15000
12500
10000
7500
5000
2500
0
Mother Dairy Amul Others

Before Promotion After Promotion

Consumption of Milk (in Ltrs.)

Mother Dairy Amul Others

Before Promotion 18000 2400 1800
After Promotion 14664 5832 1776

Demand of Different Variants of Packaged Milk

55
Total milk consumption 22200 Ltrs.
Full Cream 6660 Ltrs.
Tonned 14430 Ltrs.
Double Tonned 1110 Ltrs.

Demand of Different Variants

5%
30%

65%

Full Cream Tonned Double Tonned

Tonned is the variant which is highly used.

Demand of Different Variants of Amul Milk

Total milk consumption 2400 Ltrs.

56
Full Cream (Amul Gold) 840 Ltrs.
Standardized (Amul Shakti) 24 Ltrs.
Tonned (Amul Taaza) 1416 Ltrs.
Double Tonned (Amul Slim Trim) 120 Ltrs.

Demand of Different Variants

5%
35%

59% 1%

Amul Gold Amul Shakti

Amul Taaza Amul Slim Trim

Due to lack of advertisement Amul Shakti was used in least quantity.

Availability of Milk on Retail Shops

Only Mother Dairy 16%

Only Amul 4%

57
Both & Others 80%

Availability of Milk on Retail Shops

16%
4%

80%

Only Mother dairy Only Amul Both & Others

Mother Dairy is highly dominated.

Does Packing Play any Role in Promoting Sales

Yes 24%
No 76%

58
 Does Packing Play any Role in Promoting
Sales

24%

76%

Yes No

Quality and Taste are basic factors, which affect sales.

Selling Price of Milk

At M.R.P. 84%
More than M.R.P. 12%

59
Less than M.R.P. 4%

Selling Price of Milk

4%
12%

84%

At M.R.P. More than M.R.P. Less than M.R.P.

RECOMMENDATIONS AND SUGGESTIONS

60
 This industry is most competitive industry. There are large numbers of

competitors in this field. In such condition a small loop may create a big problem.

The condition is made more though by Mother Dairy, which is dominating in this

industry, so only a detained study and full fledged effort can help in good sales

to capture the market. Three things are necessary to improve the sales in the sub

city:

1. Advertisement

2. Quality of milk

3. Margin provided to the retailer and distributor

Advertisement is the most important step to improve sales. People are not

loyal to any brand; they purchase milk, which had an image in their minds. Before

leaving their home they already know for which milk they will ask the

shopkeeper. And this image comes from advertisement. In city distributing small

pamphlets along with newspaper or fixing posters or hoardings can do

advertisement.

Of course quality of milk is another issue, which can improve sales. In long

run if we want to succeed then we have to create a value for our milk in the mind

of the customers and that can be done by quality. The first priority must be to

ensure that the milk lack in taste by Mother Dairy as it is the main competitor.

61
 These two above mentioned factors are tough to implement. The easiest

step to improve the sales in the market is the margin provided to the retailers. The

reason for this is simple Mother Dairy is best milk in the market and retailers do

not want to sale it. They are forced to sale it because customer demand for it. The

reason why retailers do not prefer to sale Mother Dairy is its margin. Retailers

always try to sale milk other than Mother Dairy because they provide good

margin to them. The milks, which are best in margin, are Paras and Gopalji.

Therefore retailers always try to sale Paras and Gopalji instead of Mother Dairy

and Amul. Now if Amul can provide good margin to the retailers then they will

try to sale Amul instead of Mother Dairy. And once the milk becomes established

then the rates can be increased and the margin to the retailers can be decreased.

The most important competitive advantage in this market is distribution.

The ability to get their product to as many outlets as possible and to ensure its

availability on a continuous basis is the biggest challenge for producer. This is so

because milk is a basic necessity (not a luxury) with little relationship to personal

income that is the milk consumption per person is not likely to vary significantly

by income level.

Critical success factors:

 More frequency of visit of sales personnel

62
  More timely delivery of stocks

 Better replacements

 More credit period

 Relaxation in collection of payment

 Initiative on display by distributor

 More schemes provided to the smaller outlets

 Aggressive sales promotion schemes are needed due to stiff competition

 More emphasis should be given on services

LIMITATIONS

63
 Marketing research suffers from several limitations. A large number of

problems which are caused by financial constraints, insufficient sample size, and

lack of personal contact etc. marketing research only helps managers in decision

making process. It provides data and information to the managers but it can not

be a substitute for marketing.

Limitations of Survey:

 In this industry, it is very difficult to find the exact figures as the

consumption is very low.

 There is not a particular trend followed in this industry to promote sales.

Actions are taken according to the situations and the situation changes very

fast in this industry.

 Sales price vary from retailer to retailer, as the cost price is different for

different retailers due to schemes given.

 The number of shops is very large in number and it is very difficult to cover

all of them.

CONCLUSION

64
Milk industry is very competitive industry and dominance of Mother Dairy

makes it tougher for other brands to establish in this field. So in order to compete

in this market everything should be perfect with main focus on distribution. The

distribution must be proper and retailers must be the main center of focus. They

are the people who can make difference.

Amul advertisement is coming on TV and FM Radio in Delhi also. So there

is a possibility that sales will increase as more and more people come to know

about Amul milk. Advertisement can bring the customers to the shops but after

that the retailer is the key person. If he wants he can sell any milk. Therefore it

should be the combined effort of company and retailers to improve the sales. Also

people always prefer change so if we provide them better substitute of Mother

Dairy they will welcome this change.

RETAILER SURVEY FORM

65
Name of the shop ___________________________
Address ___________________________
Tel.No. ___________________________

Q1) What are the milks you usually keep in your shop?
a) Mother Dairy
b) Amul
c) Paras
d) Gopalji
e) Others _______________

Q2) Rate these milks in terms of volume of sales from 1 to 3.

a) Mother Dairy
b) Amul
c) Paras
d) Gopalji
e) Others

Q3) Does packing play any role in promoting sales?

a) Yes
b) No

Q4) How you sold the milk?

a) At M.R.P.
b) Less than M.R.P.
c) More than M.R.P.

66
Q5)How you get the delivery from the distributor?
a) Through rickshaw
b) Through tampo
c) Through mini truck
d) Others _______________

Q6) How would you compare the services of Amul and Mother Dairy on the
following? (Rank 1 to 5)

a) Frequency of visit of sales ____ ____

personnel
b) Timely delivery ____ ____
c) Display support ____ ____
d) Any other ____ ____

Q7) Is there any improvement possible with distributor on the following

parameter? (Please tick )
Yes No
a) Credit period ____ ____
b) Collection of payment ____ ____
c) Replacement ____ ____
d) Any other ____ ____

Q8) Customer purchase milk because of:

a) Price
b) Quality
c) Packing

67
 d) Scheme
e) Others ______________

CONSUMER SURVEY FORM

Name of consumer ___________________________

Address ___________________________

68
Tel.No. ___________________________

Q1) Which brand of milk do you consume?

a) Mother Dairy
b) Amul
c) Paras
d) Gopalji
e) Other _____________

Q2) Which variant of milk do you use?

a) Full Cream
b) Standardized
c) Tonned
d) Double Tonned

Q3) How much milk you purchase daily?

a) Full Cream _____ Ltrs.
b) Standardized _____ Ltrs.
c) Tonned _____ Ltrs.
d) Double Tonned _____ Ltrs.

Q4) How do you get milk?

a) From retailers

69
 b) From supplier
c) From other ______________

Q5) How much do you pay to the retailer/supplier for the milk?
a) FCM Rs._____
b) STD Rs._____
c) Tonned Rs._____
d) DTM Rs._____

Q6) If you are getting home delivery, is supplier charging extra cost for the
delivery?

a) Yes Rs._____ per (Liter/Day)

b) No

(For those who are not currently using Amul)

Q7) Have you ever used Amul milk?
a) Yes
b) No
Q8) If no, then do you want to taste it at least once?
a) Yes
b) No
Q9) If you find it better than your current brand, then will you continue using it?
a) Yes

70
b) No

71
 BIBLIOGRAPHY

BOOK REFERRED:

 Marketing Research : Measurement and Method, Donald S. Tull and Del

I.Hawkin,Prentice Hall India,Sixth Edition,Nov,2001

 Beri,G.C., Market research, New Delhi, Tata McGraw Hill publishing co.

LTD, 1980 IInd edition.

 Boyd,W.Harper, Ralph Westfall Stanley f. stasch, Marketing Research text

and cases, All India Traveller book seller, Delhi, seventh edition.

 Philip Kotlar , Marketing Management, New Delhi , Pearson education

(Singapore) pte LTD) eleventh edition

 Kothari, C.R., Research methodology, New Delhi, Vikas publication

house, eleventh edition.

WEB SITE:

 www.amul.com

 www.google.com

 www.webindia123.com

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