A PROJECT REPORT ON

ACCEPTANCE OF AMUL PRODUCTS AT RETAIL LEVEL

FOR AMUL INDIA

SUBMITTED BY YAJURVA ATMAPUJYA REG. NO. PGDM/55 SUBMITTED TO

INDUS BUSINESS SCHOOL

In the partial fulfillment of the requirements for the award of PGDM

INDUS BUSINESS SCHOOL

BATCH 2011-13

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 customers 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 products 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, companys executives, e-Newspapers, e-Magazines, journals, interviews and many other websites).

DECLARATION

I, Yajurva Atmapujya of PGDM ( Reg. No. 2011-13/PGDM/55) hereby Declare that the project work titled Acceptance of Amul products at retail level, Which has been submitted to the Indus Business School, is an original work of the undersigned and not has been reproduced from any other source.

Date: Place: Pune Atmapujya

Signature Name: Yajurva

Reg. No. PGDM/55

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 wagholi pune, for providing me the opportunity to the carry out the project in their organization. I express my to Mr. Sahil Arora ( Territory sales incharge ) 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 Mrs. Arathi Purohit (IIEBM) for guiding me to make this project meaningful.

Yajurva Atmapujya
Indus Business School (IIEBM) Pune.

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 parlours along with the Amul distributors. 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 dua 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.

Gujarat Co-operative Milk Marketing Federation (GCMMF), custodian of the Amul brand is Indias largest food products marketing organization. With its wide product Portfolio GCMMF today has a turnover in excess of Rs. 9774 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 2012 to 3rd July 2012

Time Period

Project progress(work)

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 15th June 26th June 27th June 29th June

Make Display in selective Shops Done Inshop Promotion activity Make Questionnaire and Data collection from Retailer,

30th June 2nd July 3rd July

Data Analysis and Interpretation 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 are the customers perception towards Amul? These 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.

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 litres 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 litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japans $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

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 todays 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.

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 crossbreeding. 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 biopreservative ingredients based on dairy fermentation, such as pediococcin, 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 costeffective, top- quality food processing machinery.

Food Packaging Instruments:

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 intredients 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:

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 Cooperative 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,

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 farmers cooperatives. 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.

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
The Gujarat Cooperative Milk Marketing Federation (GCMMF) which markets the popular Amul brand of milk and dairy products crosses the 2 billion dollar sales turnover mark. During the financial year 2010-11, GCMMF registered a top line growth of 22.1%, achieving turnover of Rs 9774 crores.

The results of the apex body of the dairy cooperatives in Gujarat were declared on 21st June 2011, in the 37th Annual General Meeting of GCMMF.

GCMMF: An Overview

Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778

US $ (in millions) 355 400 450 455 493 493 500 500 575 616 672 850 1050

2007-08 2008-09 2009-10 2010-11 2011-12

52554 67113 80053 97642 116680

1325 1504 1700 2172 2500

Graphical Presentation:

140000

120000

100000

80000 Rs (million) US $ (in million)

60000

40000

20000

1996-97

2007-08

1994-95

1995-96

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2008-09

2009-10

2010-11

2011-12

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 2020: - Dairy cooperatives of Gujarat turnover of Rs. 27000 crores by the year 2020.
- To satisfy the taste and nutritional 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 consumers rupee goes back to the milk producers.

Future Plan:

Expansion of distribution network, creative marketing, consumer education and product innovation, we will leverage effectively on rising income levels and growing affluence among Indian consumers. Tapping the rising demand for new value-added products. Milk shed area will increase to 231 lakh kg per day (23.1 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 We plan to double to processing capacity of our dairy plants to 20.7 million kg per day, by 2020 Milk drying capacity will also be enhanced by 200 MTs per day Plan to expand our cattle feed manufacturing capacity, more than four times to 12,000 MTs per day, by 2020. Total investments envisaged for creating all the required infrastructure would be Rs. 2,600 crores (Rs. 26 billion) till the year 2020

The Product Range

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 Caf, Amul Kool Koko,Amul Milk Drink Kool Milk Shaake, Amul Kool Chocolate Milk,Nutramul Energy Drink Health Drink Brown Beverage Stamina Instant Energy Drink Nutramul Malted Milk Food Amul Masti Dahi (fresh curd), Amul Masti Spiced Butter Milk,Amul Curd Products Lassee, Amul Flaavyo Yoghurt Pure Ghee Sweetened Condensed Amul Mithaimate Milk Amul Pure Ghee, Sagar Pure Ghee

Mithaee Range (Ethnic Amul Shrikhand, Amul Mithaee Gulab jamuns, Amul Basundi,Avsar Sweets) Ice-cream Chocolate & Confectionery Ladoos Sundae Range, probiotic,,sugarfree and probiotic Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul Chocozoo, 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

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 Cheese range MAJOR COMPETITORS Britannia cheese, Mother Dairy Cheese, Gowardhan, Kraft Mithaee Range (Ethenic sweets) Milk Range Amul Ice-creams Haldirams Mother Dairy, Nestle, Aarey, Gokul Quality Walls, Mother Dairy, Pastonjee, Vadilal

Chocolates & confectionery Table: Major competitors of Amul

Cadbury, Nestle, Parle

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 Boards (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 Amuls products are now available in the USA, Gulf Countries and Singapore.

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 10,000 Amul parlours by 2012. Amul Parlours 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 parlours operating across the various parts of the country

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

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 signages 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 parlour 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.

Amul Scooping Parlours:-

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 litres in the US, 18 litres in Australia, 14 litres in Sweden and 800 ml even in neighbouring Pakistan. This presents a huge opportunity for organized players in the ice cream industry.

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 its 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 flavours to all age groups across the society. Over the years, Amul has added diverse flavours to its range of ice Creams so that one can have variety of choices.

Amul offers a selection of almost 220 products with flavours 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.

Amul Scooping Parlours:

Seize the opportunity to partner with Indias 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 Parlours 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. Its fun time for the entire family. Currently Amul has Scooping Parlours across the country including Mumbai, Chennai, Delhi, Bangaluru, Thane, Pune, Kolkata, Nagpur, Ahmedabad and Coimbatore. Apart from these, there are more Amul Scooping Parlours coming up in different parts of the country. These Parlours have been well received by customers and are doing upbeat business.

Some of the recipes on offer at these Parlours 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 Parlours 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.

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.

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. .

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

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.

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 buyers 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,

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.

A.

Secondary data:

The sources from which secondary data was collected: Press releases of the company. Newsletters and In-house journals. Brochures and detailed descriptive leaflets. Magazines Websites such as www.amul.com and www.google.com. These were the sources

from which secondary data has been gathered. Most of the information presented in this report was extracted from the above data sources.

B.

Primary data:

Collection of primary data was conducted by visiting the people personally for the population for the preparation of the report.

i)

Research approach:

It means the way by which the information was collected. Visiting the various places of Pune, getting the questionnaire filled by different individuals.

Beside this, frequent visit to the retailers was of great help to conduct the analysis and research work.

Contact methods:

Instrument or Data collected Forms: It is the method by which data is gathered. It could be done through various instruments like questionnaires, observations, getting information from the shopkeepers was sufficient enough to conduct the study.

ii)

Collection of information:

The primary information was collected by face-to-face and direct interviews with the retailers and the customers. They provide the relevant information regarding the profile of the company as compared to the other company in the Indian market.

The secondary sources of information were various web sites of the companies, newspapers & magazines.

iii)

Analyzing the information:

The data collected was carefully analyzed. The research and analysis of the information has been done on the basis of various sales and marketing strategies adopted by the company during its tenure. iv) Reporting and conclusions and recommendations:

This is the most vital part of the work undertaken. After collection and analysis of data, it was recorded in the form as prescribed. The major part of the report is the findings.

6.5 Research Method Exploratory & Conclusive Research

Exploratory research provides insights into and comprehension of an issue or situation. It should draw definite conclusions only with extreme caution.

Conclusive research draws conclusions: the results of the study can be generalized to the whole population.

Exploratory research information is conducted to explore a problem to get some basic idea about the solution at the preliminary stages of research. It may serve as the input to conclusive research.

Exploratory research information is collected by focus group interviews, reviewing literature or books, discussing with experts, etc. This is unstructured and qualitative in nature. If a secondary source of data is unable to serve the purpose, a convenience sample of small size can be can be collected.

Conclusive research is conducted to draw some conclusion about the problem. It is essentially, structured and quantitative research, and the output of this research is the input to management information systems (MIS).

Exploratory research is also conducted to simplify the findings of the conclusive or descriptive research, if the findings are very hard to interpret for the marketing managers.

6.6 Sampling:
Sampling is the process of selecting units (e.g., people, organizations) from a population of interest so that by studying the sample we may fairly generalize our results back to the population from which they were chosen. Researchers rarely survey the entire population because the cost of a census is too high. The three main advantages of sampling are that the cost is lower, data collection is faster, and since the data set is smaller it is possible to ensure homogeneity and to improve the accuracy and quality of the data. The methodology used to sample from a larger population will depend on the type of analysis being performed, but will include simple random sampling, systematic sampling and observational sampling.

6.7 Random Sampling:

A random sample is a subset of individuals that are randomly selected from a population. Because researchers usually cannot obtain data from every single person in a group, a smaller portion is randomly selected to represent the entire group as a whole. The goal is to obtain a sample that is representative of the larger population.

For example, imagine that a market research company is interested in learning more about what type of dish soap people use. Instead of polling every single person, they will select a random sample of individuals and question them about the type of soap they use. By using a randomized sample, they get a clearer idea of what likely exists in the population at large.

6.7.1 Types of random sample:

Simple random sample is selected so that all samples of the same size have an equal chance of being selected from the entire population. A self-weighting sample, also known as an EPSEM (Equal Probability of Selection Method) sample, is one in which every individual, or object, in the population of interest has an equal opportunity of being selected for the sample. Simple random samples are selfweighting.

Stratified sampling involves selecting independent samples from a number of subpopulations, group or strata within the population. Great gains in efficiency are sometimes possible from judicious stratification.

Cluster sampling involves selecting the sample units in groups. For example, a sample of telephone calls may be collected at by first taking a collection of telephone lines and collecting all the calls on the sampled lines. The analysis of cluster samples must take into account the intra-cluster correlation which reflects the fact that units in the same cluster are likely to be more similar than two units picked at random.

6.8 Research Design:

This research design is exploratory as researcher need to find out the scope of Amul Products from retailers in Pune. The method of data collection is qualitative and descriptive in nature i.e. survey and observation based research. The study is done in steps stated below. 1. Understanding the Amul Products. 2. Understanding the Amul distribution system. 3. Collection of data: Primary Data - Through questionnaire from various Parlours, Restaurant, Retailers in Pune region.

Secondary Data - Through internet, magazines and newspaper etc. 1. To analyze the data 2. Finally the conclusion and giving recommendation on the basis of research.

6.9 Sample Design:

The sample was drawn by using Random Sampling Techniques, as researcher needs to fill questionnaire from Retailer. Apart from that, Random Sampling Techniques are more economical than any other sampling technique.

Target population includes, Retailer, Restaurant, Parlours, etc.

6.10 Sample Size:

A sample size of 100 was taken out of 180 because they are Amul product buyers. The samples were randomly selected from the population for the research work.

Limitations of the study:

Some outlets did not co-operate with us as they though; it is just wastage of time

Since all the products are not widely used by all the customers it is difficult to draw realistic conclusions based on the survey

There was no way to assess the reliability of the outlets and parlours. Whatever they said had to be assumed to be truth

Interpretation of data may vary from individual depending on the individual understanding the product features of the company

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 Yes No Total sample size

No. of respondents 90 10 100

Stockiest of amul products

100 80 60 40 20 0 Yes No Stockiest of amul products

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 Mauli & Katraj Milk products.

Q.2. If no, why? a) Absence of packaging date c) No Replacement for leakage b) Low margin d) Low distribution

Table 2: Reason Absence of packaging date Low margin No replacement for leakage Low distribution Total sample size No. of retailers 15 50 30 5 100

Reason Behind Not take Amul products

60 50 40 30 20 10 0 Absence of Packaging date Low margin No replacement Low distribution for leakage

Reason Behind Not take Amul products

Interpretation: From the above mentioned graph we can conclude that the remaining 10% retailers are not keeping the Amul milk products because their major competitors in this Pune region i.e.Mauli & Katraj is giving more margin to their retailers. And another reason for not purchasing its products is not providing replacement facility.

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

a) Amul Table 3: Product Brand Amul Katraj Nestle Gokul Total sample size

b) Katraj

c) Nestle

d) Gokul

Retailers Stock 45 30 15 10 100

Retailers Stock
50 45 40 35 30 25 20 15 10 5 0 Amul Katraj Nestle Gokul Retailers Stock

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.

Q.4 If yes, what product does you preferred to store? a.) Amul butter e) Flavored milk b) Planner f) Cheese c) Butter milk g) Amul pro d) Dahi h) other

Table 4: Amul Products Amul Butter Panner Butter Milk Dahi Flavored Milk Cheese Amul pro Other Total Sample size Retailers Preferred 70 40 25 30 30 40 5 10 100

Retailers preferred
80 70 60 50 40 30 20 10 0 Retailers preferred

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.

Q.5 what is the source from where do you get Amul Products? a) Distributor Table 5: Sources Distributers Other Suppliers Total sample size 95 5 100 Respondent b) Other supplier

Sources
100 90 80 70 60 50 40 30 20 10 0 Distributers Other Suppliers Sources

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.

Q.6 Do you know which sales promotinal 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 Price off Free sample Credit Facility Advertisement Coupons P_O_P Display Total sample size Respondent 5 5 10 40 10 30 100

Promotional Activity
45 40 35 30 25 20 15 10 5 0 Promotional Activity

Interpretation: As per this graph Advertising are main focus while making advertising they are more focusing on current affairs. And second focus is providing P-O-P display provided selected retailers.

Q.7. Are you satisfied with Amul distributer? a) Yes b) No

Table 7: Satisfaction Yes No Total sample size No. of respondent 95 5 100

No. of respondent
100 90 80 70 60 50 40 30 20 10 0 Yes No No. of respondent

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.

Q.8. Are you interested in distribution of Amul dairy products? a) Yes b) No

Table: 8

Interested in Distribution Yes No Total sample size

No. of respondent 90 10 100

No. of Respondent
100 90 80 70 60 50 40 30 20 10 0 Yes No

No. of Respondent

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 Asias no. 1 Milk dairy.

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

a) Margin

b) Pakaging

c) Availability

Table 9: Retailers Expectation Margin Pakaging Availability Total sample size No. of Respondent 83 10 7 100

Retailer expectation
90 80 70 60 50 40 30 20 10 0 margin Pakaging Availability Retailer expectation

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

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

A. B. C. D. E.

Brand Image Availability Packaging Margin

Good 30 30 20 30 10

Very Good 40 50 20 20 5

Average 10 8 40 30 20

Bad 5 2 10 10 45

Very Bad 0 0 10 10 20

50 45 40 35 30 25 20 15 10 5 0 Good Very Good Average Bad Very Bad Quality Brand Image Availability Packaging Margin

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.

SWOT Analysis of Amul STRENGTH

1. Brand name and Goodwill. 2. Indias 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 competitors 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.

5. Competitor brand are offering huge profit margin to retailers, whereas few of them are selling at lower retail prices.

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 parlour and retailers says that often damaged materials came to them 3. The schemes/ discounts are often given by distributors to parlours and retail stores. 4. The availability and product quality of Amul products is good 5. The satisfaction level of customers of Amul parlours 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 parlours 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 parlours and outlets as within the prescribed 1 km radius other retailers also provide Amul products.

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.

5. Special attention

The priority should be given to Amul parlours and outlets as compared to other retailers who also keep products of Amul. Many a times it happens that outlets are not having the product but other retailers are having the product.

Chapter-10 Conclusion:

On complete analysis of the Questionnaire, it is concluded that Amul parlours 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. Its 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 parlours and outlets but also knowing Amul in leap and bound like knowing its pattern of distribution, depth of the Amul products, margin associated with Amul products, business structure of Amul.

ANNEXURE
Questionnaire (for retailers)

Name of the shop Retailer name Address Mo. No.

BACKGROUND We are doing a brief survey to find out the level of retailer perception regarding Amul products; Parlours & 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 2. If no, why?

b) No

a) Absence of packaging date c) No Replacement for leakage

b) Low margin 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

4. If yes, what product do you preferred to store? a.) Amul butter e) Flavored milk b) Paneer f) Cheese c) Butter milk g) Amul pro d) Dahi 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 promotinal 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) Pakaging c) Availability

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

Good A. B. Quality Brand

Very Good

Average

Bad

Very Bad

C. D. E.

Image Availability Packaging Margin

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