An Industry Oriented

Dissertation Project on
“ACCEPTANCE OF AMUL PRODUCTS AT RETAIL
LEVEL FOR AMUL INDIA”

Submitted for the Partial fulfillment of the requirement of the

degree of

MASTER OF MANAGEMENT STUDIES

UNIVERSITY OF MUMBAI

Submitted By
Bachhav Akshay
Roll No. MMS/06

Submitted To

SASMIRA’S INSTITUTE OF MANAGEMENT STUDIES

AND RESEARCH, WORLI, MUMBAI- 400030

JULY 2020
 EXECUTIVE SUMMARY

The project report titled “Acceptance of Amul products at retail level”.

This project report draws significant information about the Amul Retail Stores. The

customer’s perception for the Amul products & the problem faced by the Retailers. It gives

the information that where the Amul need to improve the level of customer satisfaction and

the role of Retailers for the Amul product’s distribution.

I have done my project under the guidance and supervision of Mr. Sahil Arora.

The analysis and conclusion was carried out from the data collected through various primary

and secondary resources (Market survey, Company Website namely www.amul.com, Books,

company’s executives, e-Newspapers, e-Magazines, journals, interviews and many other

websites).
 DECLARATION BY THE CANDIDATE

I hereby certify that the work which is being presented in this industry oriented Dissertation Project
entitled- “ACCEPTANCE OF AMUL PRODUCTS AT RETAIL LEVEL FOR AMUL INDIA” in partial
fulfilment of the requirement for the award of the Degree of Master of Management Studies, University of
Mumbai and submitted to the Sasmira’s Institute of Management Studies and Research, Worli , Mumbai,
is an authentic record of my own work carried out during a period from 1st May, 2020 till 30th June, 2020
under the guidance of Prof.. Dinesh Sonkul.
The matter presented in this project report has not been submitted by me for the award of any other
degree of this or any other institute.
Wherever references have been made to intellectual properties of any Individual / Government /
Private / Public Bodies / Universities, research paper, text books, reference books , research monographs,
archives of newspapers, corporate, individuals, business / Government and any other source of intellectual
properties viz., speeches, quotations, conference proceedings, extracts from the website, working paper,
seminal work et al, they been clearly indicated, duly acknowledged and included in the Bibliography.

Name of the Student: - Akshay B Bachhav

Signature of the Student: -

This is to certify that the above statement made by the candidates is correct to the best of our knowledge.

Signature of Guide: -

Name of Guide: - Prof. Dinesh Sonkul.

 CERTIFICATE BY THE GUIDE

This is to certify that Mr. Akshay Bachhav of the two-year full-time Master’s
Degree Programme in Management Studies (MMS), (Marketing), Roll No.06 has
carried out the work on the Industry Oriented Dissertation Project titled is ACCEPTANCE OF AMUL
PRODUCTS AT RETAIL LEVEL FOR AMUL INDIA.
Under my guidance in partial fulfilment of requirement for the completion of MMS
as prescribed by the University of Mumbai.

This Industry Oriented Dissertation Project Report is the record of authentic work
carried out by her during the period from 2nd May 2020 to 1ST July 2020.

Place:

Date:

Signature of Guide:

Name of Guide: Prof. Dinesh Sonkul

 CONTENTS

Sr. No. Chapter Details Page No.

I Executive Summery 1
II Declaration By The Candidate 2
III Certificate By Guide 3
IV Acknowledgement 4

01 Introduction 1-3
02 Company Profile 4-17
03 Literature Review 18-23
04 Objectives Of Study 24
05 Scope Of Study 25
06 Research Methodology 26-29
07 Data Analysis and Interpretation 30-40
08 Observation And Findings 41
09 Suggestion And Recommendations 42
10 Conclusion 43
11 Annexure 44-47
12 Bibliography 48
 ACKNOWLEDGEMENT

This report has been made possible through direct and indirect support of
various people for whom I wish to express my appreciation and gratitude.

I take this opportunity to express my sincere thanks to the management of Amul

located in Worli Mumbai, for providing me the opportunity to the carry out the project
in their organization.

I express my to Mr. Sahil Arora ( Territory sales in charge ) who inspire of this
pressing duties and responsibility has shown genuine interest in providing necessary
guidance regarding concept clarity of the project and rendered support at all stage of
the study.

I would like to give my special thanks to my respected mentor Prof. Dinesh Sonkul
(SASMIRA) for guiding me to make this project meaningful.

Bachhav Akshay

Sasmira’s

Worli, Mumbai.
 Chapter-1 Introduction:

1.1 Project title : “Acceptance of Amul products at retail level”

Description: This project briefly covers market research on various Amul preferred
outlets and Amul parlors along with the Amul distributors.

Amul has justified its undisputed leadership in foods business by creating 7200 Amul

Preferred outlets in a record time which exclusively sell wide range of Amul products. This

has been possible due to strong brand equity and immense Consumer support. Amul Parlor

are successfully operating in more than 1400 towns at high streets, residential areas, Railway

Stations, Bus Stations, Educational Institutions and a whole lot of center of Excellence.

“Amul Preferred Outlets are an excellent business opportunity for Budding Entrepreneurs.

1
Gujarat Co-operative Milk Marketing Federation (GCMMF), custodian of the Amul brand is

India’s largest food products marketing organization. With its wide product Portfolio

GCMMF today has a turnover in excess of Rs.40,000 Cr. With a singular focus on marketing

and distribution, GCMMF today reaches consumers in all parts of the country. A state level

apex body of milk co-operatives in Gujarat, it has been an endeavor of GCMMF to provide

remunerative returns to the farmers and also serve the interest of consumers by providing

quality products which are good value for money. Today ice creams are equally popular

among children and grown-ups.

Amul are committed to produce wholesome and safe foods of excellent quality to remain

market leader through deployment of quality management systems, state-of-art-technology,

and innovation and eco-friendly operations to achieve delightment of customers and

betterment of milk producers. 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 depend upon availability of that product, in case distributors

and retailers service matter a lot. A retailer or retail store is any business enterprises whose

sales volume comes primarily from retailing.

Time frame: - 3rd May 2020 to 3rd July 2020

Time Period Project progress(work)

2
 3rd May - 30th May Filled Retailer Census forms filled by

retailer

31st May- 10th June Promotion activity for Amul New

Product(Amul Pro)

11th June – 14th June Make Display in selective Shops

15th June – 26th June Done In shop Promotion activity

27th June – 29th June Make Questionnaire and Data collection

from Retailer,

30th June – 2nd July Data Analysis and Interpretation

3rd July Project Ending

Value addition to the company by this project: -

The project gives the current position of the Amul Retail Shops in the Pune division. The

report tells:

1. How Amul Retail Shops are performing?

2. What are the problems faced by Retailers?

3. What is the customer’s perception towards Amul?

This all information can be useful for the company in taking decisions for Retailers which

will help to eliminate the problems and generate more sales & increase the profit.

3
Chapter-2 Company Profile:

INDUSTRY PROFILE:

Dairy is a place where handling of milk and milk products is done and technology refers to

the application of scientific knowledge for practical purposes. Dairy Technology has been

defined as that branch of dairy science, which deals with the processing of milk and the

manufacture of milk products on an industrial scale. The dairy sector in the India has shown

remarkable development in the past decade and India has now become one of the largest

producers of milk and value-added milk products in the world.

The dairy sector has developed through co-operatives

in many parts of the State. During 1997-98, the State had 60 milk processing plants with an

aggregate processing capacity of 5.8 million liters per day. In addition to these processing

plants, 123 Government and 33 co-operatives milk chilling centers operate in the State.

Also India today is the lowest cost producer of per liter

of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars.

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

these milk producers have already obtained quality standard certificates from the

4
authorities. This will help them in marketing their products in foreign countries in

processed form.

Research and Development in Dairy Industry:

The research and development need to the dairy industry to develop and survives for long

time with better status. The various institute and milk dairy companies R&D results provide

base for today’s industry growth and development. The research and development of

products of dairy, like yogurt and cheese market research and company reports provides

insights into product and market trends, analysis opportunities, sales and marketing strategies

will help local milk unions to develop and spread worldwide through obtaining this

knowledge. Specific on market share, segmentation, size and growth in the US and global

markets are also helps industry to expand its market worldwide even small union also.

Development of food Processing Industry:

The food processing industry sector in India is one of the largest in terms of production,

consumption, export and growth prospects. The government of accorded it is a high priority,

with a number of fiscal relieves and incentives, to encourage commercialization and value

addition to agriculture produce, for minimizing harvest wastage, generating employment and

export growth.

Food processing industry is providing backbone support to the milk industry.

The development food products by using milk can give good market opportunities to

produces milk.

5
There are different sectors within the dairy industry that promise great

business investment opportunities:

Biotechnology:

The Indian cattle yield less milk as compared to their foreign counterparts. The Indian cattle

breeders are on the lookout for ways to improve their milk yield through cross- breeding.

Thus, there is a huge potential available for foreign investors to invest in dairy cattle breeding

of high-quality buffaloes with hybrid cows.

There is also great scope for investment in different dairy cultures, including dairy biologics,

enzymes, probiotics, and other coloring materials for food processing.

Producing bio preservative ingredients based on dairy fermentation, such as eriococcid,

acidophilic, Bulgarian, and Nissan contained in dairy powder, also promises great investment

opportunity.

Dairy/Food Processing Equipment:

Great potential lies for foreign investment for manufacturing and marketing of cost- effective,

top- quality food processing machinery.

Food Packaging Instruments:

6
There is a tremendous investment opportunity for foreign investors in the manufacturing of

both machinery and packaging materials that aid the development of brand loyalty and gives

a clear edge in the marketing of dairy products.

Retailing:

Retailing of dairy products also promises great investment opportunities for standardization

and upgrading dairy products in the main metropolitan cities.

Manufacture of ingredients:

Several ingredients are involved in the making of different dairy products like ghee,

condensed milk, and cheese, Manufacturing of ingredients for these products offers a great

potential for foreign investment.

Finished Products:

There is a great scope for investment in the manufacturing of finished dairy products such as

cheese souse and cheese powders.

2.2 PROBLEMS:

7
India and China are two emerging economy in Asia. The Dairy and Food Processing industry

in India still have underdeveloped market and fragmented supply base. On the other hand,

the size of both, Markets and the suppliers are large. Also, the purchasing power of the

consumer and demand for health-based quality products is increasing at a fast rate resulting

in imbalance in demand- supply equilibrium.

HISTORY

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in

India. It is a brand name managed by an apex cooperative organization, Gujarat Co- operative

Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6

million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been

a sterling example of a cooperative organization's success in the long term. The Amul Pattern

has established itself as a uniquely appropriate model for rural development. Amul has

spurred the White Revolution of India, which has made India the largest producer of milk

and milk products in the world. It is also the world's biggest vegetarian cheese brand.

GCMMF

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products

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. Amul's product range

includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream, cream,

shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006,

8
Amul plans to launch India's first sports drink Stamina, which will be competing with Coca

Cola's Powerade and PepsiCo's Gatorade.

Achievement:

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.

Amul created history in following areas:

A) First self motivated and autonomous farmers‟ organization comprising of more than

5000000 marginal milk producers of Karla District.

b) Created Dairy co-operatives at village level functioning with milk collection centers

owned by them.

c) Computerized milk collection system with electronic scale and computerized accounting

system.

d) The first and only organization in world to get ISO 9000 standard for its farmer’s co-

operatives.

e) 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.

9
Amul in abroad:

Amul is going places. Literally. After having established its presence in China, Mauritius and

Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), India s largest ‟

milk cooperative, is waiting to flood the Japanese market. Then, GCMMF is also looking

at Sri Lanka as one of its next export destinations. Amul products are already available on

shelves across several countries, including the US, China, Australia, West Asian countries

and Africa

CURRENT PLAYERS IN THE INDUSTRY:

Amul (GCMMF, Gujarat) is the largest brand in the industry. Other regional brands (dairy

co-operatives): Aarey, Gokul, Warana (Maharashtra), Saras (Rajasthan),Verka(Punjab),

Vijaya (Andhra Pradesh), Avian (Tamil Nadu), Nandini (Karnataka), Mother Dairy (New

Delhi).

Mother Dairy (Delhi) and Bangalore Dairy (Nandini brand) have tie ups with GCMMF,

Anand.

Private sector dairies: JK Dairy, Heritage Foods, Indiana Dairy and Dairy Specialties.

Global Players: HLL, Britannia, Heinz, Kraft Foods, SmithKline Beecham, Nestle etc

AMUL TODAY

Amul expects revenue to grow by 20% to Rs 40,000 crore in 2019-20. Gujarat Co-operative

Milk Marketing Federation (GCMMF) posted 13 percent increase in its turnover at Rs

33,150 crore during 2018-19 from Rs 29,225 crore in the previous fiscal.

10
 HEAD OFFICE:

Gujarat Cooperative Milk Marketing Federation Ltd.

Amul Dairy Road,

P B No.10, Anand – 388001,

Gujarat, India.

VISION:

- Liberate our farmers from economic oppression and lead them to prosperity

MISSION 2030:

Our Mission is to manufacture world class products of outstanding qualities, providing

related services and solutions to our client while utilizing latest technologies, highest

business standard, work ethics Corporate Governance so we can make every customer

Smile. l requirements of the consumers and increasing numbers of these consumers today

are to be found only at the large format stores. Hence, in order to reach these consumers,

we need to form equitable alliances with organized retail chains wherever possible.

Objective:

Is to ensure that the maximum share of the consumer’s rupee goes back to the milk

producers.

11
Future Plan:

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk and

milk products under the Amul brand, Tuesday said it aims to achieve a business

turnover of Rs 50,000 crore by 2020-21.

GCMMF's Amul is Asia’s largest milk brand and a market leader in India of most dairy

products like butter, ghee, yoghurt, butter milk, lassi and flavoured milk. But R.S.

Sodhi, managing director of GCMMF, does not want Amul to rest on its laurels, and

he has been charting out the milk giant's diversification plans.

Amul has also been strengthening its chocolates business. Though it entered the

segment in the 1970s, it started pushing products aggressively only recently, especially

12
black chocolates. A new plant on the outskirts of Anand, inaugurated last September,

can produce 1,000 tonnes of chocolate a month. Currently, chocolate business

contributes just around 3 per cent of GCMMF’s turnover, but Sodhi sees it growing in

the future. He claims Amul has already become the number one player in dark

chocolates.

Dabur’s Real, Coca-Cola’s Minute Maid and Pepsico’s Tropicana brands have a strong presence
in the market. Startups like Hector Beverages’ Paper Boat also have made a splash. “We saw this
juice-based category growing like anything,” said Sodhi. “The change we did was, we added milk
solids [to juice]. Amul Tru is a differential product with juice plus milk solids.” Tapping the rising
demand for new value-added products.

Milk shed area will increase to 431 lakh kg per day (43.1 million kg per day), at an annual

growth rate of 4%

Installing Bulk Milk Chillers and Automatic Milk Collection Systems in all our village

cooperative societies.

Collect as much as 195 lakh kg per day (19.5 million kg per day) of milk in the peak flush

season.

Satellite dairies with combined processing and liquid milk packaging capacity of 50 LKPD

will be established in major metro market

The Product Range

13
Breadspreads Amul Butter, Amul Lite, Delicious Table Margarine

Amul Pasteurized Processed Cheddar Cheese, Amul Processed Cheese

Spread, Amul Pizza (Mozarella) Cheese,Amul Emmental Cheese,

Cheese Range
Amul Gouda Cheese, Amul Malai Paneer (cottage cheese), Utterly

Delicious Pizza

Amul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk

Fresh Milk 4.5% Fat, Amul Taaza Toned Milk 3% fat, Amul Slim & Trim, Amul

Cow Milk

Amul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza
UHT Milk Range
1.5% fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream

Amul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar

Milk Powders Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea and

Coffee Whitener

Amul Kool Flavored Milk, Amul Kool Café, Amul Kool Koko,Amul
Milk Drink
Kool Milk Shaake, Amul Kool Chocolate Milk,Nutramul Energy Drink

Health Drink Stamina Instant Energy Drink

Brown Beverage Nutramul Malted Milk Food

Amul Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk,Amul
Curd Products
Lassee, Amul Flaavyo Yoghurt

Pure Ghee Amul Pure Ghee, Sagar Pure Ghee

Sweetened Condensed
Amul Mithaimate
Milk

14
Mithaee Range (Ethnic Amul Shrikhand, Amul Mithaee Gulab jamuns, Amul Basundi,Avsar

Sweets) Ladoos

Ice-cream Sundae Range, probiotic,,sugarfree and probiotic

Chocolate & Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul Chocozoo,

Confectionery Amul Bindass, Amul Fundoo

Butter Margarine Amul lite Cheese

Cheese Spread Paneer Pizza Cheese Pizza

Tetra milk Pouch milk Chocolates Milk shake

Flavored Milk Buttermilk Lassi Amulya

15
 Amul spray SMP Nutramul Ghee

Mithai Mate Basundi Gulabjamun Fresh cream

Ice cream Shrikhand Dahi Yogurt

Table: List of products marketed by GCMMF under brand name Amul

COMPETITION:

PRODUCTS MAJOR COMPETITORS

Cheese range Britannia cheese, Mother Dairy Cheese,

Gowardhan, Kraft

Mithaee Range (Ethenic sweets) Haldirams

Milk Range Mother Dairy, Nestle, Aarey, Gokul

Amul Ice-creams Quality Walls, Mother Dairy, Pastonjee,

Vadilal

16
Chocolates & confectionery Cadbury, Nestle, Parle

Table: Major competitors of Amul

SERVICES:

GCMMF is sole marketer of all products under brand AMUL and SAGAAR.

It is also the sole selling agent for the National Dairy Development Board’s (NDDB) edible

oil – „DHARA‟.

GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading

House" status. GCMMF has received the APEDA Award from Government of India for

Excellence in Dairy Product Exports for the last 13 years.

CLIENTS:

Major clients are the five stars hotels (TAJ, Oberoi etc.) and big restaurants throughout the

country.

Many of Amul‟s products are now available in the USA, Gulf Countries and Singapore.

17
Chapter-3 Review of Literature:

Amul Preferred Outlets:-

Amul has justified its undisputed leadership in foods business by creating 6000 Amul

preferred outlets in a record time which exclusively sell wide range of Amul products. This

has been possible due to strong brand equity and immense consumer support. Amul are

now having ambitious plans of creating 40,000 Amul parlors by 2030.

Amul Parlors are successfully operating in more than 1400 towns at high streets, residential

areas, Railway Stations, Bus Stations, Educational Institutions and a whole lot of Centers of

Excellence.

Here is a list of the few of the Amul parlors operating across the various parts of the

country

18
1. Indian Institute of Management, Ahmedabad

2. New Delhi Railway Station PF6/7 & PF10/11

3. National Institute of Design

4. Infosys Technologies in Bangalore, Mysore & Pune

5. Wipro, Bangalore

6. Indian Institute of Management, Kolkata

7. Ahmedabad Airport

8. Koyambedu Bus Station, Tamilnadu

9. Savitha Dental College, Chennai

10. IIT, Guwahati

• "Amul Preferred Outlets are an excellent business opportunity for budding entrepreneurs.

To have a better idea please go through the following:

1. The criteria for selection of APOs would be –

a. Visibility - How prominent is the location of your shop?

b. Shop area: 100 - 300 sq. ft.

c. Good Business potential

d. Exclusive Amul outlet - no other products are to be sold

19
2. Renovation Work of the Shop to give it a standard look - would be done to meet

the design and specifications at your cost. The cost of renovation of a typical shop would

normally be between Rs. 60,000 to Rs. 1 lakh.

3. Branding- The cost of the signage’s fabrication and installation would be borne by

GCMMF Ltd.

4. Equipment- You would require the following equipment:

a. 1or 2 deep freezers (Can be purchased through Hamara Apna Deep Freezer Scheme )

b. 1 Refrigerator through Hamara Apna Refrigerator Scheme

c. 1 pizza oven

d. 1 Chest Milk Cooler for Pouch Milk

5. Security Deposit- You would be required to furnish an interest free refundable security

deposit of Rs. 25,000 to us locked for one year. The entire amount would be forfeited in case

the parlor closes down within the first year of operation.

6. Supplies- The delivery of products would be done through our wholesale dealers.

7. Agreement- An agreement bringing us together would be signed.

20
Amul Scooping Parlors:-

India a booming ice cream market up for grabs

Today ice creams are equally popular among children and grown-ups.

Eating ice creams have become an occasion for celebration. In India

alone, the organized ice cream industry has a turnover of around

Rs. 1000 Cr. and the market is witnessing a booming growth rate

of 12-15% annually.

Per capita consumption of ice creams in India is around 250 ml compared to 23 liters in the

US, 18 liters in Australia, 14 liters in Sweden and 800 ml even in neighboring Pakistan. This

presents a huge opportunity for organized players in the ice cream industry.

21
 Amul - the leader in Ice Creams

Since its launch in 1996, Amul Ice Creams have consistently combated

Competition like Kwality Walls, Mother Dairy and other brands. The

customers have shown huge faith in the quality of Amul Ice Creams

and today it’s the No. 1 ice cream brand of the country.

Nearly 4 times as large as its nearest competitor, it is now the only national brand. Amul

has been able to write such a success story because of the quality of its products, economic

pricing and the belief consumers have in the brand.

Amul Ice Creams - Melting point for taste buds

While growing at a phenomenal pace, Amul has always taken

Care to offer delectable flavors to all age groups across the society.

Over the years, Amul has added diverse flavors to its range of

ice Creams so that one can have variety of choices.

Amul offers a selection of almost 220 products with flavors ranging

from exotic Honey Banana to Kesar Pista and many more. Apart from

the delicious individual novelties Amul also have ice creams for the health conscious. In

January 2007, Amul introduced Sugar Free & ProLife Probiotic Wellness Ice Cream which

was a first in India.

22
 Amul Scooping Parlors:

Seize the opportunity to partner with India’s leading Ice Cream Brand

Today people like to spend quality time with their family outside

the home. With increasing income they love to spoil themselves with a

variety of choices.

Keeping up with the latest trend Amul has started Ice Cream Scooping Parlors across the

country. One can enjoy world class ice creams, Sundaes, shakes and other ice cream

concoctions in a cozy and nice ambience at these parlors. It’s fun time for the entire family.

Currently Amul has Scooping Parlors across the country including Mumbai, Chennai, Delhi,

Bengaluru, Thane, Pune, Kolkata, Nagpur, Ahmedabad and Coimbatore. Apart from these,

there are more Amul Scooping Parlors coming up in different parts of the country.

These Parlors have been well received by customers and are doing upbeat business.

Some of the recipes on offer at these Parlors are:

• Simply Delicious Ice Cream Scoops

• Double and Triple Sundaes

• Double Swirl/Magic Swirl

• Thick Shakes

• Amul Cool Drinks

The recipes on offer at these Scooping Parlors are designed by Amul. The maximum retail

price of the products is pre-determined by Amul. The disposables and consumables are also

standardized by Amul and supplied by parties approved by Amul.

23
Chapter-4 Objectives of the study:

Primary Objectives:-

1. An audit on standard operation procedures at Amul Retail Store.

2. To improve existing retail network of Amul product.

3. To understand the problem faced by Retailer holder pertaining to selling & storage of

Amul products.

4. To evaluate customer response toward Amul Retail Stores.

Secondary Objectives:-

1. To create consumer awareness about Amul.

2. Effectiveness of “Visy Cooler” (Cold Storage Machine provided by AMUL at a

charge):

3. How many Retailers effectively use Visy Cooler?

4. Impact of Visy Coolers on sales.

24
Chapter-5 Scope of the study:

1. The study includes Dairy Retail store observation and audit.

2. Understanding the distribution channel of Amul products.

3. The study will help in enhancing distribution channel of Amul Products.

4. The study not only gives idea about what problems are faced by distributors in

distributing Amul products but will also help in identifying solution for problems faced

by distributors.

5. The study helps in increasing no. of retailer in Amul products.

6. The study will help in restructuring margin policy for retail distributors.

7. The study will help in supplying required products & services to retail distributors in

timely manner.

8. This study also will also help in improving the market share of Amul in Dairy market.

25
Chapter-6 Research Methodology:

“Market research is the systematic design, collection, analysis and reporting of data and
finding relevant to a specific marketing situation facing the company.”
An effective marketing research involved five steps:

Defining the Problem and Research

Objective

Developing the Research Plan

Collecting the Information

Present the Finding

Analyzing the Information

26
6.1 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.

In other words, Marketing Research is any organized efforts to gather information

about markets or customers. It is a very important component of business strategy.

Marketing Research is for discovering what people want, need, or believe. It can also

involve discovering how they act. Once that research is completed, it can be used to

determine how to market your product.

Questionnaires and focus group discussion surveys are some of the instruments for market

research.

27
6.2 Marketing Research Methods:

Methodologically, marketing research uses the following types of research designs:

(I) Based on questioning:

Qualitative Marketing Research- generally used for exploratory purposes- small number of

respondents – not generalizable to the whole population – statistical significance and

confidence not calculated – examples including focus groups, in-depth interviews, and

projective techniques.

(II) Based on observations:

Ethnographic studies: It is by nature qualitative, the researcher observes social phenomena

in their natural setting – observations can occur cross-sectionally (observations made at one

time) or longitudinally (observations occur over several time-periods) – examples include

product-use analysis and computer cookie traces.

6.3 PROMOTION:

Promotion is one of the four elements of marketing mix (product, price, promotion, and

place). It is the communication link between sellers and buyers for the purpose of

influencing, informing, or persuading a potential buyer’s purchasing decision.

The specification of five elements creates a promotional mix or promotional plan. These

elements are personal selling, advertising, sales promotion, direct marketing and publicity.

A promotional mix specifies how much attention to pay to each of the five sub-categories

and how much money to budget for each. A promotional plan can have a wide range of

objectives, including: sales increase, new product acceptance, creation of brand equity,

28
positioning, competitive retaliations, or creation of a corporate image. Fundamentally,

however there are three basic objectives of promotion. These are:

❖ To present information to consumers as well as others.

❖ To increase demand.

❖ To differentiate product.

29
Chapter-7: Data Analysis and Interpretation:

7.1 Analysis of the data (from the questionnaire) obtained from the Amul Retail
Shops.

Q.1. Do you stock Amul dairy products?

a.) Yes b.) No

Table 1. Stock Amul Dairy products

Stockiest No. of respondents

Yes 90

No 10

Total sample size 100

Stockiest of Amul
100 products
80

60

40 Stockiest of Amul
products

Yes No

Interpretation of Graph 1:

As per the graph we can interpret that only 10% retailers are not maintaining the stock of
“Amul” milk, so majority market segment has been covered by this company and for the
remaining market share we can interpret that it has been covered by “Warna” Milk
products.

30
Q.2. If no, why?

a) Absence of packaging date b) Low margin

c) No Replacement for leakage d) Low distribution

Table 2:

Reason No. of retailers

Absence of packaging date 15
Low margin 50
No replacement for leakage 30
Low distribution 5
Total sample size 100

Reason Behind Not take Amul products

60

50

40

30
Reason Behind Not take Amul
products
20

Absence of Low margin No replacement Low distribution

Packaging date for leakage

Interpretation:

From the above mentioned graph we can conclude that the remaining 10% retailers are not
keeping the “Amul” milk products.
And another reason for not purchasing its products is not providing replacement facility.

31
Q.3 which is the most preferable brand of packaged dairy products that you stock?

a) Amul b) Warna c) Nestle d) Gokul

Table 3:

Product Brand Retailers Stock

Amul 45
Warna 30
Nestle 15
Gokul 10
Total sample size 100

Retailers Stock
50

45

40

35

30

25
Retailers Stock

Amul Warna Nestle Gokul

Interpretation:

From the above mentioned graph we can interpreted that major sample customers are

Preferring the “Amul” milk products due to the best packaged in comparison to their

Competitors and that is the main reason of major market segments.

32
Q.4 If yes, what product does you preferred to store?

a.) Amul butter b) Panner c) Butter milk d) Dahi

e) Flavored milk f) Cheese g) Amul pro h) other

Table 4:

Amul Products Retailers Preferred

Amul Butter 70
Paneer 40
Butter Milk 25
Dahi 30
Flavored Milk 30
Cheese 40
Amul pro 5
Other 10
Total Sample size 100

33
 Retailers preferred
80
70

60

50

40

30
Retailers preferred

10

Interpretation:

From the above mentioned graph we can interpret that customers mainly preferred the
“Amul Butter” and “Amul Cheese and Paneer” and it is only due to increasing demand for
the fast food in Indian market. However, customers also prefer “Amul Milk” because it
produces much different flavored milk in comparison to their main competitors.

34
Q.5 what is the source from where do you get Amul Products?

a) Distributor b) Other supplier

Table 5:

Sources Respondent
Distributers 95
Other Suppliers 5
Total sample size 100

Sources

Sources

Distributers Other Suppliers

Interpretation:

As per the graph we can conclude that majority of its products are selling to their final
customers by their distributors and remaining customers are directly purchasing from the
market i.e. from the supermarket and malls.

35
Q.6 Do you know which sales promotional activities does the company undertake
for Amul products?

a.) Price off b) Free samples c) Credit Facility

d) Advertisement e) Coupons f) P-O-P Displays

Table 6:

Promotional Activity Respondent

Price off 5
Free sample 5
Credit Facility 10
Advertisement 40
Coupons 10
P_O_P Display 30
Total sample size 100

Promotional Activity

Promotional Activity

36
Q.7. Are you satisfied with Amul distributer?

a) Yes b) No

Table 7:

Satisfaction No. of respondent

Yes 95
No 5
Total sample size 100

No. of respondent

No. of respondent

Yes No

Interpretation:

As per this graph 95 retailers are satisfied of distributers because they are following they
are wise supply chain management which are actually starting from midnight in two ships.

37
 Q.8. Are you interested in distribution of Amul dairy products?

a) Yes b) No

Table: 8

Interested in Distribution No. of respondent

Yes 90
No 10
Total sample size 100

No. of Respondent

No. of Respondent

Yes No

Interpretation of graph 8:

As per this graph 90 retailers are interested of distribution because the customer are Amul
products are more in Indian Market due to its quality & price of its products however it is
also Asia’s no. 1 Milk dairy.

38
Q.9. what is your expectation from Amul dairy products?

a) Margin b) Packaging c) Availability

Table 9:

Retailer’s Expectation No. of Respondent

Margin 83
Pakaging 10
Availability 7
Total sample size 100

Retailer expectation

Retailer expectation

margin Packaging Availability

Interpretation:

As per this graph Retailers are expecting more margins on its products because their
competitors are providing more margins.

39
Q.10 Give you rating to following attributes of Amul dairy products?

Good Very Good Average Bad Very Bad

A. 30 40 10 5 0
B. Brand 30 50 8 2 0
Image
C. Availability 20 20 40 10 10
D. Packaging 30 20 30 10 10
E. Margin 10 5 20 45 20

Quality
Brand Image
Availability
Packaging
Margin

Good Very Good Average Bad Very Bad

Interpretation:

As per this graph Amul has provide good quality and Amul brand image is very good in
dairy market its provide average availability comparison other competitor, its packaging are
good but Amul has no provide a good margin to their retailers comparison other
competitors.

40
 “SWOT” Analysis of Amul

STRENGTH

1. Brand name and Goodwill.

2. India’s major giant player in dairy products.
3. Wide product range.
4. Qualified marketing & sales force.
5. Maximum milk handling capacity (11.22 million litres) per day.
6. High-quality products sold at reasonable prices.

WEAKNESS

1. Lack of availability of stock at various locations.

2. Lack of promotions (advertisements/offers/schemes).
3. Weak distributors service channel to retailers (in some areas).
4. Low profit margin to retailers.

OPPORTUNITIES

1. Areas can be targeted to cover Retailers look for convenience and margin.
2. Promotions will pay good results, market is lacking with the same.
3. A great opportunity to cash the brand name once again by giving good quality products.
4. Weak up the entire market as per the demand.

THREAT

1. Some customers are in the hand of retailers because the retailer enjoys good profit margin
from other competitor’s brand.
2. Psychological state of mind of retailers and consumers.
3. Old manufacturing date on packs is a major threat.
4. Competitors are cutting up the market share of Amul Product.

41
 Chapter-8 Observations and Findings:

Observation:

The key observations are as follows:

1. The replenishment of orders is about 64% which is average.

2. About 40% of the Amul parlor and retailers says that often damaged materials came to
them
3. The schemes/ discounts are often given by distributors to parlors and retail stores.
4. The availability and product quality of Amul products is good
5. The satisfaction level of customers of Amul parlors and retail stores is good.
6. The replacement of defective material is poor and also the process is very complicated.
7. The damage material often came about 79% which is due to improper handling by
distributors.

Findings:

1. Most of the Amul parlors are not interested in running them for longer period due to very
low margins.
2. The sales of Amul product is average round the year.
3. The full varieties of Amul products are almost as par customers need.
4. Retailers want more margins from Amul.
5. People were highly satisfied with product quality of Amul.
6. Distributors could not provide all type of varieties because of less stock.
7. Due to negligence of the company the customers of Amul are shifting towards other
company
8. More preference should be given to parlors and outlets as within the prescribed 1 km radius
other retailers also provide Amul products.

42
 Chapter-9 Suggestions/Recommendations:

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
tougher by Gowardhan, which is recently dominating in this industry, so only a detained
study and fully fledged effort can help in good sales to capture the market. Four things are
necessary to improve the sales in the sub city:

1. Service
2. Advertisement
3. Replacement policy
4. Proper distribution
5. Special attention

1. Service
It is the critical factor in the success of any brand. There is no doubt that Amul services are
good but it needs little more improvement to completely capture the market.
2. Advertisement:
This is the most important factor that affects both the sales as well as the consumers‟
attention. Amul has to take aggressive advertising centered specially for its parlours and
outlets.
3. Replacement policy
Amul is already blamed for poor replacement policy; it has to give certain kind of
replacement policy to make its product more acceptable to the parlours and outlets.
4. Distribution
The replenishment is average and often damaged material came on account of improper
handling by distributors due to this parlours find it difficult to retain the customer. The
number of distributor operating in an area also very low in number which also adds to
improper distribution.

43
Chapter-10 Conclusion:

On complete analysis of the Questionnaire, it is concluded that Amul parlors has good
reputation in the market and it has 100% satisfied customer but lack proper distribution and
marketing. Very few distributors are in a particular area which not only is resulting in
improper distribution but also resulting in monopoly of these distributors. The position of
both the parlours and outlets can be uplifted in the market by sound marketing and proper
distribution channel which results in delivery on time.

Amul has a good reputation and name because of existence in the market for so many years
especially through the name of “Amul Butter”.

Within short span of time Amul has launched so many products which are still lacking
promotion and availability. Amul has customer driving power but is not able to retain
customer due to unavailability of the newer products.

It‟s been great experience working with Amul and doing promotional activity for new
products of “Amul Pro”. The market survey has helped a lot in understanding forward
integration of Amul to link directly with the customer. It has helped me in not only
knowing the business potential of Amul as a brand through its sales in parlors and outlets
but also knowing Amul in leap and bound like knowing it’s pattern of distribution, depth of
the Amul products, margin associated with Amul products, business structure of Amul.

44
ANNEXURE

Questionnaire (for retailers)

Name of the shop

Retailer name Mo. No.

Address

BACKGROUND

We are doing a brief survey to find out the level of retailer perception regarding
Amul products; Parlors & Retail stores. We would be grateful if you could spare a few
minutes to participate in it. Thank you for your cooperation.

1. Do you stock Amul dairy products?

a.) Yes b) No

2. If no, why?

a) Absence of packaging date b) Low margin

c) No Replacement for leakage d) Low distribution

3. Which is the most preferable brand of packaged dairy products that you stock?

a) Amul b) Katraj c) Nestle d) Gokul

45
4. If yes, what product do you preferred to store?

a.) Amul butter b) Paneer c) Butter milk d) Dahi

e) Flavored milk f) Cheese g) Amul pro h) other

5. What is the source from where do you get Amul Products?

a.) Distributors b.) Other suppliers

6. Do you know which sales promotional activities does the company undertake for
Amul Products?

a.) Price off b) Free samples c) Credit Facility

d) Advertisement e) Coupons f) P-O-P Displays

7. Are you satisfied with Amul distribute?

a) Yes b) No

8. Are you interested in distribution of Amul dairy products?

a) Yes b) No

9. What is consumers expectation from Amul dairy products?

a) Good quality b) Packaging c) Availability

10. Give you rating to following attributes of Amul dairy products?

46
 Image
C. Availability
D. Packaging
E. Margin

47
 BIBLIOGRAPHY:

A) Books:
1. Kotler Philip, “ Marketing Management”
2. Kothari C.R., “ Marketing Research”

B) Websites:
1. http://www.amul.com
2. www.google.com

48