Amul Internship Report
Amul Internship Report
Amul Internship Report
PUNE (MAHARASHTRA)
PGDM Marketing
College Certificate
This is to certify that Mr. Gaurav Nigam is bonafide student of this institute and
has successfully completed his project entitled Study of Sales Promotion and
Consumer Buying Behavior at Outlook Publishing (India) Private Limited for
partial fulfillment of PGDM (Sales and Marketing) from Balaji Institute of Modern
Management, Pune.
Director
Internal Guide
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ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for Gujarat Cooperative
Milk Marketing Federation Ltd., AMUL (PUNE).
as
well as for providing information necessary for this project & also
for her support in completing the project.
I would also like to acknowledge my sincere gratitude to our Prof.
Col. A. Balasubramanian, Executive Director, BIMM and Mr.
Dr. Hirak Das Gupta, Director BIMM, for giving
me an
helped me to accomplish my
GAURAV NIGAM
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MM1416367
Balaji Institute of Modern Management
Pune
DECLARATION
OUTLETS
IN
PUNE
at
Gujarat
Co-operative
Date:
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Signature
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INDEX
Sr. No.
Contents
1.
EXECUTIVE SUMMARY
Page No.
8
2.
INTRODUCTION
11
3.
AMUL MODEL
14
4.
INDUSTRY PROFILE
17
5.
GCMMF OVERVIEW
21
6.
AWARDS
23
7.
SALES TURNOVER
25
8.
PRODUCT RANGE
27
9.
PRODUCT DEALT
28
10
RESEARCH PROBLEM
33
.
11.
RESEARCH
35
12
METHODOLOGY
RESEARCH PROCESS
38
.
13
CURRENT POSITION OF
41
.
14
AMUL
OBJECTIVE & SCOPE
42
.
15
RESEARCH DESIGN
44
.
16
RESEARCH TOOL
47
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48
ANALYSIS
.
18
PRACTICAL
56
IMPLEMENTATION OF
19.
THEORTICAL KNOWLEDGE
PROMOTIONAL ACTIVITY
58
20
LIMITATIONS
60
.
21
FINDINGS
61
.
22
SUGGESTIONS
63
.
24
CONCLUSION
64
.
25
BIBLOGRAPHY
65
.
26.
66
ANNEXURE
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EXECUTIVE SUMMARY
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Executive Summary:
The Dairy business in India is very different from other business. In this there are many
companies who provide continuous service to customers. Gujarat Cooperative Milk Marketing
Federation (GCMMF) is one such cooperative organization. GCMMF market its all the products
with the brand name AMUL. AMUL is used as an umbrella brand for all the dairy products like
milk, ghee, butter, cheese, etc. The company is known for its marketing strategy which provides
employment to more than 3.03 million village milk producers. To provide milk to each and every
part of the country company must have very good distribution channel. GCMMFs distribution
channel is very unique and with the help of its strategies it is trying to capture maximum market.
For making its distribution channel very effective company has 50 sales offices all over the
country and these sales offices controls near about 5000 distributors and 7,00,000 retailers.
But company faces many problems when it comes to Marketing of AMUL MILK
(GOLD, TAAZA). In some markets the AMUL brand is well known and is accepted very early
while in some areas the brand faces very tough competition from local as well as national brands.
Same is the situation in Pune city. In Pune, AMUL started its Marketing and Distribution in
December 2002 with a sales figure of 6000 litres per day. But in Pune market brands like Chitle,
Katraj, Gokul, Maouli etc were enjoying high coverage and share. Thus it was very difficult for
AMUL to make very good position in the market.
The company has many distributors in the Pune city who distribute the Milk, Dairy
Products and Ice Cream. In Banner, Wakad, Sambhaji Nagar and, Bhosari area brands like
Chitle, Katraj, Gokul, Maouli etc. are market leaders. In this area company faces the problems of
irregular distribution , Market awareness and thus low demand of Amul Milk. When I surveyed
this area I came to know that not only this irregular distribution is responsible for fewer sales but
along with these there are many reasons which also contribute to this. The other reasons are low
margin provided by company as compared to other brands, irregular distribution form distributor,
and customer dissatisfaction due to bad service from distributor.
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During my survey I also found out that there are many areas in desired area where the
presence of Amul Milk is very less. The company is required to take some rigorous actions to
increase its sale in these areas and also the way in which distribution is managed must be
checked. It is not the company officials but distributors who come in contact with the customer
are responsible for making brand image of AMUL. Hence the Marketing Campaign and
distribution system should be checked regularly and company should appoint some officials to
visit these distributors so that any flaws in the system can be removed out. When I surveyed
different areas , I found that in some areas AMUL is present as the leader while there are some
areas where AMUL presence is very less. It was more surprising that the awareness of AMUL in
these areas is very high and demand is also very large. But because of the behaviour and services
from distributor and low margin to retailers, Replacement Problem, the Retailers has stopped
stocking of Amul Milk.
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INTRODUCTION
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Introduction:
The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest
food products marketing organisation of India. It is the apex organization of the Dairy
Cooperatives of Gujarat. This State has been a pioneer in organizing dairy cooperatives and its
success has not only been emulated in India but serves as a model for rest of the World. Over the
last five and a half decades, Dairy Cooperatives in Gujarat have created an economic network
that links more than 3.03 million village milk producers with millions of consumers in India and
abroad through a cooperative system that includes 13,141 Village Dairy Cooperative Societies
(VDCS) at the village level, affiliated to 13 District Cooperative Milk Producers Unions at the
District level and GCMMF at the State level. These cooperatives collect on an average
7.5 million litres of milk per day from their producer members, more than 70% of whom are
small, marginal farmers and landless labourers and include a sizeable population of tribal folk
and people belonging to the scheduled castes.
The main task for the firm is to provide milk to whole India and of
course this is very tough job. Because the name AMUL is basically related with the milk and
people require milk daily morning. So it is the sole responsibility of AMUL to reach its customer
daily on time. For collecting milk from farmers and villagers and to make it available to the
customer the company follows a model called Three Tier AMUL model.
To make its product available in the market company has 50 sales
offices all over the country, approx 3000 dealers called as Area Delivery Agents (ADAs) & near
about 1,50,000 retail outlets. The long term goal of AMUL is to capture the large portion of
market. Out of the 50 sales offices in India one of the offices is in Pune city. The Pune city is a
growing market for milk. This can be understood from the fact that there are total approx 200
brands of milk in Pune & PCMC area. AMUL started its distribution in Pune on December 1,
2002 with only 6000 litres per day and by the end of July 2011; the company is able to sale
80000 litres per day. But still if we compare the overall market the market is very big and
AMUL is able of capture only certain percent of it. AMUL faces a major competition from many
local brands like Chitle, Katraj, Gokul etc. and these three brands mainly cover the 40-50% of
the market.
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AMUL MODEL
AMUL model:
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The Amul Model of dairy development is a three-tiered structure with the dairy cooperative
societies at the village level federated under a milk union at the district level and a federation of
member unions at the state level. The model connects producer to consumer like the figure given
below:
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The Amul model has helped India to emerge as the largest milk producer in the world. More than
15 million milk producers pour their milk in 1,44,500 dairy cooperative societies across the
country. Their milk is processed in 184 District Co-operative Unions and marketed by 22 State
Marketing Federations, ensuring a better life for millions.
AMUL three tier model
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INDUSTRY PROFILE
India is world's largest milk producer. By 2011, Dairy India projects the value of the
industry to more than double to Rs 520,780 crore, which includes Rs 159,600 crore from liquid
milk, Rs 42,680 crore from ghee, Rs 50,500 crore from khoa/chhana/paneer, Rs 9,100 crore from
milk powder, Rs 2,250 crore from table butter, Rs 6,150 crore from cheese/edible casein and Rs
25,050 crore from other products. Interestingly, out of the anticipated milk output of 120 mt, the
share of liquid milk will rise to 81 per cent or 97.5 mt and only the rest 19 per cent (22.5 mt)
would get converted into products. But the organized industry's share of total milk handling will
go up to 30 per cent (36 mt), while the small players will see their share dip to 22 per cent (26
mt). At the same time, higher rural incomes will marginally boost the share of milk retained in
rural areas to 48 per cent or 58 mt. The other significant feature is that within the 30 per cent
overall share of organized dairies, the major 20 per cent (24 mt) will be accounted for by the
private sector. The cooperatives and government dairies will handle 10 per cent or 12 mt of milk,
which will be lower than that of the organized private sector. Total market size of DTM/UHT
milk in India is currently 800 cr rupees which is growing in double digit number.
Fresh Milk constituents:
Over 50% of the milk produced in India is buffalo milk, and 45% is cow milk. The
buffalo milk contribution to total milk produce is expected to be 54% in 2000. Buffalo milk has
3.6% protein, 7.4% fat, 5.5% milk sugar, 0.8% ash and 82.7% water whereas cow milk has 3.5%
protein, 3.7% fat, 4.9% milk sugar, 0.7% ash and 87% water. While presently (for the year 2000)
the price of Buffalo milk is ruling at $261-313 per MT that of cow is ruling at $170-267 per MT.
Fresh pasteurized milk is available in packaged form. However, a large part of milk consumed in
India is not pasteurized, and is sold in loose form by vendors. Sterilized milk is scarcely
available in India.
Some History:
The birth of AMUL began when milk became a symbol of protest. It was founded in
1946 to stop the exploitation of middleman and it was inspired from the freedom movement.The
seeds of this unusual saga were sown more than 65 years back in Anand, a small town in the
state of Gujarat in western India. The exploitative trade practices followed by the local trade
cartel triggered off the cooperative movement. Angered by unfair and manipulative practices
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followed by the trade, the farmers of the district approached the great Indian patriot Sardar
Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own
co-operative, which would have procurement, processing and marketing under their control.
In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the
cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and
Tribhuvandas Patel, they formed their own cooperative in 1946. This co-operative, the Kaira
District Co-operative Milk Producers Union Ltd. began with just two village dairy cooperative societies and 247 liter of milk and is today better known as Amul Dairy. Amul grew
from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the founder
Chairman and the committed professionalism of Dr Verghese Kurien, who was entrusted the
task of running the dairy from 1950. The then Prime Minister of India, Lal Bahadur Shastri
decided that the same approach should become the basis of a National Dairy Development
policy. He understood that the success of Amul could be attributed to four important factors.
The farmers owned the dairy, their elected representatives managed the village societies and the
district union, they employed professionals to operate the dairy and manage its business. Most
importantly, the co-operatives were sensitive to the needs of farmers and responsive to their
demands.
At his instance in 1965 the National Dairy Development Board was set up with the
basic objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as
its Chairman and asked to replicate this model throughout the country. AMUL has followed a
three tier model and the AMUL model has helped India to emerge as the largest milk producer in
the world. More than 13 million milk producers pour their milk in 1,28,799 dairy cooperative
societies across the country. Their milk is processed in 176 District Co-operative Unions and
marketed by 22 State Marketing Federations, ensuring a better life for millions.
About GCMMF:
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Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food
product marketing organisation with annual turnover (2013-14) US$ 3.0 billion. Its daily milk
procurement is approx 13.18 million lit per day from 17,025 village milk cooperative
societies, 17 member unions covering 31 districts, and 3.23 million milk producer members.
It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known
as 'AMUL',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. Its success has not
only been emulated in India but serves as a model for rest of the World. It is exclusive marketing
organisation of 'Amul' and 'Sagar' branded products. It operates through 53 Sales Offices and
has a dealer network of 10000 dealers and 10 lakh retailers, one of the largest such networks in
India. Its product range comprises milk, milk powder, health Milk, ghee, butter, cheese, Pizza
cheese,Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc.
GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading
House"status. Many of our products are available in USA, Gulf Countries,Singapore, The
Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from
Government of India for Excellence in Dairy Product Exports for the last 13 years. For the year
2009-10, GCMMF has been awarded "Golden Trophy" for its outstanding export performance
and contribution in dairy products sector by APEDA. In 2013-14, GCMMF took giant strides in
expanding its presence in International markets. Amuls presence on Global Dairy Trade (GDT)
platform in which only the top six dairy players of the world sell their products, has earned
respect and recognition across the world. By selling milk powders on GDT, GCMMF could not
only realize better prices as per market demand but it also firmly established Amul in the league
of top dairy players in world trade.
For its consistent adherence to quality, customer focus and dependability, GCMMF has received
numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality
Award in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected
Company Award instituted by Business World. In 2003, it was awarded the The IMC
Ramkrishna Bajaj National Quality Award - 2003 for adopting noteworthy quality management
practices for logistics and procurement. GCMMF is the first and only Indian organisation to win
topmost International Dairy Federation Marketing Award for probiotic ice cream launch in 2007.
For the innovations, GCMMF has received AIMA-RK Swamy High Performance brand award
2013 and CNN-IBN Innovating for better tomorrow award in 2014. For the tree plantation
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activity GCMMF has received seven consecutive Good Green Governance award from Srishti
during 2007 to 2013.
The Amul brand is not only a product, but also a movement. It is in one way, the representation
of the economic freedom of farmers. It has given farmers the courage to dream. To hope. To live.
GCMMF - AN OVERVIEW
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OUR OFFICES
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AWARDS
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24
SALES TURNOVER
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PRODUCT PROFILE
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27
PRODUCT RANGE
Bread spreads
Cheese Range
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 1.5%
Milk Powders
Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea and
Coffee Whitener
Amul Kool Flavoured Milk, Amul Kool Caf, Amul Kool Koko,Amul
Milk Drink
Health Drink
Brown Milk
Curd Products
Pure Ghee
Sweetened Condensed
Milk
Amul Mithaimate
Mithaee Range (Ethnic Amul Shrikhand, Amul Mithaee Gulabjamuns, Amul Basundi,Avsar
Sweets)
Ladoos
Ice-cream
Chocolate
Confectionery
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& Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul Chocozoo,
Amul Bindass, Amul Fundoo
28
Amul Gold
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Amul Taaza
30
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RESEARCH PROBLEM
This is one of the important things to understand what the problem for our research is. Without
knowing the problem we cannot find any solution. In the last few years AMUL is able to capture
market from 8,000 litres per day to 80,000 litres per day. But still this is a very small portion of
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the complete market. Though AMUL is able to capture this market but Dairy business is based
on the proper distribution. It was found out from the companys journal that the people have
some complain regarding service of AMUL. AMUL has always followed low price strategy to
penetrate into market but sometimes they do face a problem of distribution. The distribution
problem may be from company or by distributors. The company has asked me to find out what is
the Market penetration for AMUL Milk at retail outlets in Wakad related to AMUL milk so that it
helps increase the sale of AMUL Milk (Amul Gold, Amul Taaza).
Research Background:
Topic selection is the one of the important aspects of project. It decides the course of
action to be followed. The topic selected should be such that it helps in understanding the market
concepts clearly; the research topic was given to me by the company itself.
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Need of Study:
At the time of study the company was undergoing the problem related to market share
and proper service to customers. Thus there was a need for the company to analyze its market so
that a rough idea can be obtained, which may later be transformed into various marketing
strategies. Hence there was a need to study the above said topic.
The topic given to me by the firm was To conduct a market research on AMUL Milk (Amul
kool, Amul Lassi, Amul Masti) consumption pattern of consumers in WAKAD AREA which
covers market penetration of AMUL Milk . There was need to study this topic as the company
wants to understand how there Milk are being consumed in the households and increase its
market share and achieve maximum efficiency in distribution channel. The company wanted to
do the survey of market so as to increase the sales of the Milk and also get to know the
advertisement in the specific areas of Pune and determine share of Amul Milk.
RESEARCH METHODOLOGY
It is very important to follow a proper and sequential procedure to do a research. The project
allotted to me has a lot of survey work so it was very essential to find out and decide in which
manner research should be done. If the market research is not done systematically then the
objectives said above cannot be achieved. For obtaining proper information the research
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conducted should be controlled, rigorous, systematic, valid and verifiable, empirical and critical.
Above characteristics of any research made that very helpful to researcher.
Types of research:
Research can be classified on the basis of three perspectives:
a) Application of research study
b) Objectives in undertaking the research
c) Inquiry mode employed
Based on Application:
Based on the application of research the research can be classified as:
a) Pure research
b) Applied research
Pure research:
Pure research involves developing and testing theories and hypotheses that are intellectually
challenging to the researcher but may or may not have practical application at the present time or
in the future. The knowledge produced through pure research is sought in order to add to the
existing body of research methods.
Applied research:
Applied research is done to solve specific, practical questions; for policy formulation,
administration and understanding of a phenomenon. It can be exploratory, but is usually
descriptive. It is almost always done on the basis of basic research.
In this project we have a problem to find out the milk consumption pattern of people that
can benefit sale of Amul milk and related products. So here the research done by me is
applied research which will help us to find out solution for the problems mentioned.
Based on Objectives:
From the viewpoint of objectives, a research can be classified as
a) Descriptive
b) Correlational
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c) Explanatory
d) Exploratory
Descriptive research:
Descriptive research attempts to describe systematically a situation, problem, phenomenon,
service or programme, or provides information about , say, living condition of a community, or
describes attitudes towards an issue.
Correlational research:
Correlational research attempts to discover or establish the existence of a relationship/
interdependence between two or more aspects of a situation.
Explanatory research:
Explanatory research attempts to clarify why and how there is a relationship between two or
more aspects of a situation or phenomenon.
Exploratory research:
Exploratory research is undertaken to explore an area where little is known or to investigate the
possibilities of undertaking a particular research study.
Generally any research process is a combination of all these objectives and so is the
research done by me.
Inquiry Mode:
From the process adopted to find answer to research questions the two approaches are:
a) Structured approach
b) Unstructured approach
Structured approach:
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The structured approach to inquiry is usually classified as quantitative research. Here everything
that forms the research process- objectives, design, sample, and the questions that we plan to ask
of respondents is predetermined.
Unstructured approach:
The unstructured approach to inquiry is usually classified as qualitative research. This approach
allows flexibility in all aspects of the research process.
In my research the inquiry mode used by me structured approach. The questionnaire and
other data collection sheets are enclosed in the appendix.
RESEARCH PROCESS
Any good and proper research must be done in following steps in order to obtain best results:
1)
2)
3)
4)
5)
6)
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LITERATURE REVIEW
Once we have formulated the research problem the next step is to go through the literature
available. This preliminary task is very important and essential in order to acquaint our self.
Literature review is integral part of entire research process and makes valuable contribution to
every operational step.
Though reviewing literature is time consuming and frustrating, but is also rewarding. It helps us
to:
a)
b)
c)
d)
For existing literature I have referred journals provided by the company and have read various
articles on the net. The primary study about the company helped me to understand how company
functions and what are the procedures does company follow.
As my project is about the Market penetration of Amul Milk, with the help of this literature I was
able to understand how AMULs supply chain works and what are the steps followed by
company in order to attain maximum market share and achieving customer satisfaction.
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Organization structure:
It all started in December 1946 with a group of farmers keen to free themselves from
intermediaries, gain access to markets and thereby ensure maximum returns for their efforts.
Based in the village of Anand, the Kaira District Milk Cooperative Union (better known
as Amul) expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat
network now covers 3.23 million farmers, 17,025 village level milk collection centers and
fourteen district level plants (unions) under the overall supervision of GCMMF. There are similar
federations in other states. Right from the beginning, there was recognition that this initiative
would directly benefit and transform small farmers and contribute to the development of society.
Markets, then and even today are primitive and poor in infrastructure. Amul and
GCMMF acknowledged that development and growth could not be left to market forces and that
proactive intervention was required. So they identified two key requirements:
1) The first, that sustained growth for the long term would depend on matching supply
and demand. It would need heavy investment in the simultaneous development of
suppliers and consumers.
2) Second, that effective management of the network and commercial viability would
require professional managers and technocrats.
To implement their vision while retaining their focus on farmers, a hierarchical network of
cooperatives was developed, which today forms the robust supply chain behind GCMMFs
endeavors? The vast and complex supply chain stretches from small suppliers to large
fragmented markets. The AMUL supply chain is given below.
40
supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just
adequate to take care of the transit time from the branch warehouse to their premises. This justin-time inventory strategy improves dealers' return on investment (ROI). All GCMMF branches
engage in route scheduling and have dedicated vehicle operations.
The picture shown below is the cooperative structure of the AMUL:
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Amul has been ranked amongst the top 21 largest dairy businesses in the World as per the
findings published by International Farm Comparison Network (IFCN) at the 10th IFCN
Dairy Conference 2010 at Stockholm during 14th to 17th June 2010.
2) No. 1 Indian Brand by The Campaign Magazine:
The Campaign magazine has ranked Amul as the No. 1 Indian brand in its list of Top
1000 Brands of Asia for the third consecutive year. Amul is also ranked as No.1 dairy
brand, ahead of leading food and dairy brands of the Asia region like Dutch Lady, Dumex
and Magnolia.
3) Amul is No 1 dairy brand in Asia-Pacific!
(Date: 7th July, 2011, Deccan Herald)
The brand Amul has not only maintained its unique position as the No 1 Indian brand for
the second consecutive year, but has also become the numerouno dairy brand in the AsiaPacific region ahead of many international names like Kraft, Walls, Everyday etc.
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4) To find out major competitors of Amul Milk in Wakad Area & understand their
distribution system
5) To analyze the problems faced by distributors & retailers regarding Amul Milk.
6) To understand customer profile of Wakad Area.
7) To attract new retailers for selling Amul products.
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RESEARCH DESIGN
Marketing research is a systematic and objective search and analysis of information relevant to
the identification and solution of any problem in the field of marketing. As we have explained
the marketing research process begins with the recognition of a marketing related problems
followed the information of objective of the study and methodology to be used. Research design
is the conceptual structure within which research would be conducted. The function of research
design is to provide for the collection of relevant information with minimal expenditure of effort,
time and money. The preparation of research design, appropriate for a particular research
problem, involves the consideration of the following:
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by
someone else.
For my research study, there was need to collect both primary as well as secondary data.
Generally data is considered to be numeric but for my study the data was both numerical as well
factual.
1) Primary data collection:
The data which we collect for the first time is referred as primary data. The primary data
was collected from the consumers. Since the project area was Wakad so for collecting primary I
had surveyed the retail shops of the mentioned area and asked the retailers to fill the
questionnaire. Primary data was collected by the following procedure:
a)
For the study we selected one area Wakad Area and did survey over there by
b)
c)
questionnaire method
For our survey we covered each and every retail shop and milk selling outlet
From each outlet we collected data about sale of AMUL milk as well as sale of
d)
other brands.
We also visited houses nearby that area and asked them to fill up the
e)
questionnaire.
Problems and queries regarding distributor and/or delivery agent is consider
while surveying.
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Reference work
AMUL' S website
For my study:
a) Who will be surveyed: Retailers taking Amul Milk in WAKAD AREA.
b) How many people will be surveyed: A large sample was preferred(maximum)
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RESEARCH TOOL
For my study the research tools used were:
a) Questionnaire
Sample size: The sample size for my study was 50.
Procedure followed:
A well-structured questionnaire was used for the survey. According to the need, the pattern of
questionnaire was changed to make it more compatible with the objective of the study. The
questionnaire was formed in such a way that it will be applicable for the retailers & consumers.
Through this survey, major brands demanded in the region and their trends were assessed.
This survey also helped in understanding the expectations of the retailers & consumers from the
company.
Data Requirements:
In order to meet the research objectives the following data were collected.
1. Details of the Retailers.
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2. Different dairy products of different companies kept by the retailers in the shop.
3. Demand of AMUL Milk.
4. Stock of the Amul Milk maintained in the retail shops.
5. Timings of delivery to the retailers.
6. Reatailers complaining about the services if any.
7. Approximately daily sale of AMUL Milk and other brands.
a) BANNER
b) SAMBHAJI NAGAR
c) BHOSARI
d) WAKAD
e) THERGAON
In each and every area I came across different trends about the consumption habits of milk.
There were many factors which affects the sale and market position of milk. Since I have to
study about the consumption pattern most important was to keep track of the delivery of MILK
to retailers from distributors and keep track of the areas so that if there is requirement of AMUL
milk in some area and there is scope of a new distributor proper action can be taken.
Below is the detailed study of each area.
Sampling Plan:
Sample size:
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Respondent
Retailers
Total Number
50
Distributors
Answer
Yes
No
No.of Respondents
45
5
Yes
Percentage
90%
10%
No
10%
90%
Interpretation:
The above graph indicates that almost all the retailers stock Amul milk Milk.
It shows that Amul Is a popular brand name .
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20-30
30-40
21%
40 above
17%
62%
Quantity in liters
20-30
30-40
40 above
Percentage sample
17 %
62 %
21 %
Interpretation:
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Retailers prefer Average stock of Milk. Neither too less, nor too low.
Percentage sample
No Replacement
Low Margin
Low Distribution
2%
6%
2%
No Replacement
Low Margin
20%
Low Distribution
20%
60%
Interpretation: Low Margin in the area is the leading factor in Storage by retailers.
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Interpretation : Graph shows that most of the retailers were satisfied with the service provided
by the Amul distributors.
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Interpretation: The graph shows that retailers were aware about the sales promotion activity
that Amul carried out, but some respondents were unaware about various activities.
Most of the retailers were aware about advertisement and coupons scheme during festivals.
Credit facility and free samples were not provided to single retailers
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Interpretation:As retailers are Not aware of The APO ,they dont want to open.
9) Readers expectation from Amul Milk.
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10)
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STRENGTHS
WEAKNESSES
Bad roads and inadequate transportation facility make milk procurement problematic.
OPPORTUNITIES
There is a lot of potential for growth and development as huge population stay in rural
market where other companies are not targeting.
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THREATS
Emphasis on milk fat and not on SNF content maintaining relatively lower prices of
milk.
Demand for dairy products is income elastic. Continued rise in middle class population will
see shift in the consumption pattern in favour of value added products besides the
Large portion of the population does not care about quality issues in milk.
PROMOTIONAL ACTIVITY
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Coupons:
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Problems Observed:
The major problem told to me by retailers is that they have problem with the margin. When we
found out the reason, I came to know that because of margin many retailers dont want to take
Amul Milk.
Amul Milk according to the Retailers has a very less margin as compared to the other brands.
LIMITATIONS:
The project done by me also has some limitations:
a) The data collected from the retailers may or may not be correct because the
authenticity of the data depends on the respondents. It may happen that the
respondent has given us some wrong details and hence the wrong will be the
interpretation.
b) Since a segment of market outlet was visited there was a mixed response from the
retailer some were quite co-operative, some of them were indifferent some of them
also provided biased information regarding to their sales position which may create
certain problem while calculating the exact sales figure.
c) The area surveyed is very small so the chances are that the interpretation may be
wrong.
d) Data may vary when some other person performs the same research and hence wrong
interpretation.
e) I have surveyed only Wakad area of Pune and a very small part of Banner,Sambhaji
Nagar,Bhosari.
FINDINGS
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From the detailed study of the market in Wakad area I came to following findings. The
study shows that AMUL has a good presence in the market but still facing some
competition as compared to other brands. In Wakad area most of the market is covered by
Amul but still there is a presenceof local brands like Chitle, Katraj, Gokul, Maouli etc..
Out of all the areas I found out that Wakad is the only area where Amul has a good grip in
the market. There also it faces a tough competition from Chitle, Gokul, etc. Major
findings in the Wakad area are as follows:
1) During my project study I found out that Retailers are very much unsatisfied with margin
structure of company. They said that Amul provides very less margin as compared to
other companies. They said that earning from Amul is very less and hence even though
demand is there for Amul Milk but they try to sale other brands as they get more margin
on those brands because of this retailers are very unhappy from the company and because
of this they try to reduce sale of Amul Milk.
2) It was found that the company is not able to fulfil demands of advertising material which
retailers demand. Many retailers have complained that they want hoardings and boards of
the company for display but even after demanding constantly they have not received any
advertising material.
3) The price of Amul milk is more or less comparable to other brands. Many retailers have
said that Amul is surviving in this area just because they have price more or less same to
other brands.
4) Distributors also complained that company does not provide good schemes for them.
They were unhappy with credit note scheme because they want regular and timely
benefits of various schemes.
5) Other major finding was that retailers want replacement of leak from pouch of milk.
They said that since the company does not provide replacement for the leakages they
have to bear the price of that pouch. If we compare Amul with other brands than we can
see that other brands provide replacement for leakage.
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6) Many retailers complained that they are not happy with the distribution of Amul Milk.
Some of them said that the quantity they receive is less than what they order. Even
distributors also complained that they also face this problem.
Of all the areas surveyed by me I found that there is one area which has very great
potential and demand. The area is Wakad. In this area there is demand of Amul Milk but
there is a problem of Margin in Amul Milk and we are lacking in our policies of not
revising it.
SUGGESTIONS
Trade promotion should be formulated for increasing the awareness of Milk in the market.
In order to motivate the channel members it is also very essential for the company to increase the
margins only by a small amount because other brands provide a very high margin for milk.
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In order to remain sensitive to market demand, it is essential for the company to place additional
salesmen on the field since the brand as such commands a high demand in the market but fails to
match it with the supply.
The appointment of distributor should be done by the company so that there are no conflicts
among distributors.
The company should have regular meetings with the distributors and retailers so that they can be
motivated to increase the sale of Amul milk.
Company should form some policy for the leakage problem. Because of the no replacement
policy many retailers avoid stocking of large quantity.
Amul should go in for exclusive outlets in at least all the shopping malls coming up these days
and any location where footfalls are large in number. The advantages of this channel will be:
i. Full range display
ii. Easier to promote new products
iii. Easy to push impulse purchase products
iv. Brand building will be facilitated
CONCLUSION
The summer project given to me is titled as Market Penetration of Amul Milk in Reatil Outlets
in, Pune. This summer project has been a highly beneficial learning experience for me. As
project was in FMCG (fast moving consumer goods) sector with Indias one of the reputed brand
AMUL, I came to understand the dynamic and challenging nature of this sector.
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The distribution channel of Amul is very vast and complex. As a part of the
company and being an intern I was able to understand this complex process. I learnt how the
milk is procured from the company and how this is processed and marketed.
If we compare the brand image of Amul with others in WAKAD area we can see that the
image of the AMUL is stronger than of other brands. In WAKAD area Amul is the market
leader. As the quality of AMUL Milk is far better than competitors like Gokul, Chitale, Katraj,
Mauli etc. The reason for this is the strong brand name as compared to other brands. Even
retailers are much satisfied with the services provided by the company. Even the distribution
channel has some problem. The distribution network of Gokul and Chitale is strong enough
which is trying to give hard competition to the brand image of Amul.
When we look at the total number of retailers selling AMUL Milk in the market then we can see
that 90% of the retailers sell AMUL Milk.
In the market so many new brands are coming day by day, so there is very vast competition
for selling of Milk. The local brand of Milk are giveing more margins to the retailers and
hence they are trying capture the market fastly.
BIBLIOGRAPHY
References:
Websites1)
2)
3)
4)
www.amul.com
www.google.com
www.indiandairy.com
http://www.amul.com/products/milk-range.php
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5) http://www.amul.com/m/organisation
6) http://www.business-standard.com/article/companies/amul-to-add-six-million-litres-perday-capacity-114051501190_1.html
7) http://www.amul.com/m/crisil-rating-for-gcmmf
8) http://www.marketresearch.com
ANNEXURE
QUESTIONNAIRE
(Retailer Survey)
68
Address:________________________________________________________________
No
2) If yes what is the total stock of Amul Milk you have presently in your store?
a) In liters
3) If No ,Why?
a) No replacement
b) Low Margin
c) Low distribution
4) Which is the most preferable Brand of Milk that you store ?
a) Amul
b) Mauli
c) Gokul
d) Chitle
e) Katraj
d) others (chitale,Gokul,Katraj)
5) From where do you get Amul Milk ?
a) Distributor
b) Other suppliers
6) Are you satisfied with Amul Distributor?
a) Yes
b) No
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7) Do you know Which Sales promotional activities does the company undertake for Amul
Milk?
a) Price off
b) Credit facility
c) Advertisement
d) Free samples
e) Coupons
f) P-O-P Displays
b) No
b) No
b) No
Good
Average
a) Quality
b) Brand Image
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Bad
Very Bad
c) Availability
d) Packaging
e) Price
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