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CHAPTER 1 INTRODUCTION

1.1 ABOUT THE COMPANY


Thirty years ago the milk producers of Gujarat had come together and decided to create their own organization to enhance the marketing capacity of the dairy Co-operative milk marketing federation Limited (GCMMF Ltd.). Mr. V. Kurien was the founder of this co-operative society and this society had been formed in a small village of Gujarat named Anand. Gujarat Cooperative Milk Marketing Federation (GCMMF Ltd) is a Indias largest food product marketing organization. It is a state level apex body of milk cooperative in Gujarat, which aims to provide remunerative return to the farmers and also serve the interest of consumers by providing quality products,
Member 12 district cooperative milk producers union No. of Producer Member: No. of Village Societies : Total Milk handling capacity Milk collection (Total-2004-2005) Milk collection (Daily Average 2004-2005) 2.36 million 11.333 6.9 million liters per day 1.81 billion liters 4.97 million liters

Milk Drying Capacity: Cattel feed manufacturing Capacity:

511 metric Tones per day 2340 Mitts per day

which are good value for money.

1.1 CONTEXT OF THE TOPIC:


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. Retailing includes all the activity in selling goods or service directly to the customers or personal non-business use .A retailer or retail store is any business enterprises whose sales volume comes primarily from retailing. Retailers are the part of milk marketing channels and perform the work of moving goods from producers to the customers. It overcomes the time, place and possession gap that separates goods and service from those who needs or wants them. Retailers as member of marketing channel perform a number of key functions. Some functions (physical, title, promotion) constitute a forward flow of activity from the company to the customers; other functions (ordering and payment) constitute a backward flow from customers to the company. Still others (information, negotiation, finance and risk taking) in both directions. The project delves into the workings from the distribution aspect of an FMCG organization, in detail. AMUL, being an FMCG company, attaches a lot of significance to the distribution aspect of its business. The distribution channel of AMUL holds a lot of potential in affecting the demand or sales of AMUL products through delivery on time, delivery of variety of products, the retailer friendliness of the policies being set by the distributors and equitable distribution of products to all the retail outlets in a particular region, to name a few. So, In order to plan retail coverage we map out the positions of Amul outlets, Amul parlors, and competitors outlets. This project was carried out in Pune city. For analyzing and presenting information that is tied to geographical location, we divided the city in different wards. By analyzing geographical representation and sales data with spatial distribution Amul outlets, competitors outlets and the density of others in an area, we identify unexplored area and plan location outlets to increase its market penetration. Using such research we can ascertain the quality and depth of retail penetration in specific area. Addition to this we carried out sales promotion activity through discount coupons. Sales promotion consists of diverse collection of incentive tools, most short-term designed to stimulate and/or greater purchase of a particular product by consumers or the trade. Whereas advertise offers a reason to buy, sales promotion offers incentive to buy. Sales promotion includes tools for consumer promotion (for example samples, coupons, prizes, cash refund, warranties, demonstrations, contest); trade promotion (for example buying allowance, free goods, merchandise allowances, co-operative advertising, advertising and display allowances, dealer sales contests); sales force promotion (for example bonuses, contests, sales rallies).

Sales promotion efforts are directed at final consumers and designed to motivate, persuade and remind them of the goods and receives that are offered.

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