Final Project

Deep Penetration of Amul Ice Cream
00380003911
CHAPTER 1 INTRODUCTION
1 GITARATTAN INTERNATIONAL BUSINESS SCHOOL
00380003911
GUJARAT COOPERATIVE MILK MARKETING FEDERATION GCMMF: AN

OVERVIEW
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.
Members:
12
district
cooperative
milk
producers' Union 2.28 million 11,132 6.7 million litres per day
No. of Producer Members: No. of Village Societies: Total Milk handling capacity:
Milk collection (Total - 2002-03): Milk collection (Daily Average 2002-03): Milk Drying Capacity: Cattlefeed manufacturing Capacity:
1.86 billion litres 5.08 million litres 510 metric Tons per day 1450 Mts per day
00380003911
Sales Turnover 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457
US $ (in million) 355 400 450 455 493 493 500 500 575
00380003911
1.2 PRODUCT PROFILE

LIST OF PRODUCTS MARKETED:
Breadspreads:
o o o Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter
Cheese Range:
o o o o o o o o Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Frozen and Tinned Utterly Delicious Pizza
Mithaee Range (Ethnic sweets):

o o o o o Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix
UHT Milk Range:

o o o o o o Amul Taaza 3% fat Milk Amul Gold 4.5% fat Milk Amul Slim-n-Trim 0% fat milk Amul Chocolate Milk Amul Fresh Cream Amul Snowcap Softy Mix
Deep Penetration of Amul Ice Cream o Amul Taaza Double Toned Milk
00380003911
Pure Ghee:
o o o Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee
Infant Milk Range:

o o o Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above) Amulspray Infant Milk Food
Milk Powders:
o o o o Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener
Sweetened Condensed Milk:

o Amul Mithaimate Sweetened Condensed Milk
Fresh Milk:
o o o o Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 3% fat Amul Smart Double Toned Milk 1.5% fat
00380003911
Curd Products:
o o o Amul Masti Dahi (fresh curd) Amul Butter Milk Amul Lassee
Amul Ice creams:

o o o o o o o o o o o o o o o o Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti) Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi) Utsav Range (Anjir, Roasted Almond) Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate) Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant) Sundae Range (Mango, Black Currant, Chocolate, Strawberry) Millennium Icecream (Cheese with Almonds, Dates with Honey) Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi) Cool Candies (Orange, Mango) Cassatta Tricone Cones (Butterscotch, Chocolate) Megabite Almond Cone Frostik - 3 layer chocolate Bar Fundoo Range - exclusively for kids SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple) Health : Isabcool
00380003911
Chocolate & Confectionery:

o o o Amul Milk Chocolate Amul Fruit & Nut Chocolate Amul Eclairs
Brown Beverage:
o Nutramul Malted Milk Food
Milk Drink:
o Amul Shakti Flavoured Milk
Ready to Serve Soups:

o o Masti Tomato Soup Masti Hot & Sour Soup
Deep Penetration of Amul Ice Cream 1.3AMUL: THE ORIGIN
00380003911
The mighty Ganges at it's origin is but a tiny stream in the Gangotri ranges of the Himalayas. Similar is the story of Amul which inspired 'Operation Flood' and heralded the 'White Revolution' in India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul collects, processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members. Further, as Ganga-ma carries the aspirations of generations for moksha, Amul too has become a symbol of the aspirations of millions of farmers.Creating a pattern of liberation and self-reliance for every farmer to follow.
The start of a revolution

The revolution started as an awareness among the farmers that grew and matured into a protest movement and the determination to liberate themselves. Over four decades ago, the life of a farmer in Kaira District was very much like that of his counterpart anywhere else in India. His income was derived almost entirely from seasonal crops. The income from milch buffaloes was undependable. Private traders and middlemen controlled the marketing and distribution system for the milk. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throwaway prices. In this situation, the one who gained was the private trader. Gradually, the realization dawned on the farmers that the exploitation by the trader could be checked only if marketed their milk themselves. In order to do that they needed to form some sort of an organization. This realization is what led to the establishment of the Kaira District Cooperative Milk Producers' Union Limited (popularly known as Amul) which was formally registered on December 14, 1946.
The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948. An assured market proved a great incentive to the milk producers of the district. By the end of
00380003911
1948, more than 400 farmers joined in more village societies, and the quantity of milk handled by one Union increased from 250 to 5,000 liters a day.
Obstacles: Springboards for success. Each failure, each obstacle, each stumbling block can be turned into a success story. In the early years, Amul had to face a number of problems. With every problem came opportunity. A chance to turn a negative into a positive. Milk by products and supplementary yield which suffered from the same lack of marketing and distribution facilities became encumbrances. Instead of being bogged down by their fate they were used as stepping stones for expansion. Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice.
Milk by products: An excuse to expand. The response to these provided stimulus for further growth. For example, as the movement spread in the district, it was found that the Bombay Milk Scheme could not absorb the extra milk collected by the Kaira Union in winter, when the production on an average was 2.5 times more than in summer. Thus, even by 1953, the farmer-members had no assured market for the extra milk produced in winter. They were again forced to sell a large surplus at low rates to the middlemen. The remedy was to set up a plant to process milk into products like butter and milk powder. A Rs 5 million plant to manufacture milk powder and butter was completed in 1955. In 1958, the factory was expanded to manufacture sweetened condensed milk. Two years later, a new wing was added for the manufacture of 2500 tons of roller-dried baby food and 600 tons of cheese per year, the former based on a formula developed with the assistance of Central Food Technological Research Institute (CFTRI), Mysore. It was the first time anywhere in the world that cheese or baby food was made from buffalo milk on a large, commercial scale. Another milestone was the completion of a project to manufacture balanced cattle feed. The plant was donated by OXFAM under the Freedom From Hunger Campaign of the FAO.
Cattle: From stumbling blocks to building blocks.
00380003911
Traditionally dairying was a subsidairy occupation of the farmers of Kaira. However, the contribution to the farmer's income was not as prominent as his attachment to dairying as a tradition handed down from one generation to the next. The milk yield from animals, which were maintained mainly on the by products of the farm, was decidedly low. That together with the lack of facilities to market even the little produced rendered the scientific practice of animal husbandry irrational as well as unaffordable The return on the investment as well as the prospects of being able to market the product looked very bleak. It was a vicious cycle reinforced by generations of beliefs.
The Kaira experiment: A new beginning in more ways than one. A system which involves participation of people on such a large magnitude does not confine itself to an isolated sector. The ripples of its turbulence affect other areas of the society as well. The cooperatives in the villages of Kaira are contributing to various desirable social changes such as: The yearly elections of the management committee and its chairman, by the members, are making the participants aware of their rights and educating them about the democratic process.
Perpetuating the voluntary mix of the various ethnic and social groups twice-a-day for common causes and mutual betterment has resulted in eroding many social inequilibria. The rich and the poor, the elite and the ordinary come together to cooperate for a common cause.
Live exposure to various modern technologies and their application in day-to-day life has not only made them aware of these developments but also made it easier for them to adopt these very processes for their own betterment. One might wonder whether the farmer who knows almost everything about impregnating a cow or buffalo, is also equally aware of the process in the humans and works towards planning it.
00380003911
AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. Today Amul is a symbol of many things.... Of high-quality products sold at reasonable prices.... Of the genesis of a vast co-operative network.... Of the triumph of indigenous technology.... Of the marketing savvy of a farmers' organization.... And of a proven model for dairy development. 50 years after it was first launched, Amul's sale figures have jumped from 1000 tones a year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it. It was all because a thumb-sized girl climbed on to the hoardings and put a spell on the masses.
BOMBAY: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old housewife is out in the balcony drying clothes. From her second floor flat she can see her neighbours on the road. There are other people too. The crowd seems to be growing larger by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what all the commotion is about. She expects the worst but can see no signs of an accident. It is her fouryear-old who draws her attention to the hoarding that has come up overnight. "It was the first Amul hoarding that was put up in Mumbai," recalls Sheela Mane. " People loved it. I remember it was our favourite topic of discussion for the next one week! Everywhere we went somehow or the other the campaign always seemed to crop up in our conversation."
Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you, from strategically placed hoardings at many traffic lights. She is the Amul moppet everyone loves to love (including prickly votaries of the Shiv Sena and BJP). How often have we stopped, looked, chuckled at the Amul hoarding that casts her sometime as the coy, shy Madhuri, a bold sensuous Urmila or simply as herself, dressed in her little polka dotted dress and a red and white bow, holding out her favourite packet of butter.
That October, lamp kiosks and the bus sites of the city were splashed with the moppet on a horse. The baseline simply said, Thoroughbread, Utterly Butterly Delicious Amul,. It was a matter of just a few hours before the daCunha office was ringing with calls. Not just adults, even children were calling up to say how much they had liked the ads. "The response was
00380003911
phenomenal," recalls Sylvester daCunha. "We knew our campaign was going to be successful The Rebecca Mark favourite For the first one year the ads made statements of some kind or the other but they had not yet acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid concept would give them extra mileage, more dum, so to say. It was a decision that would stand the daCunhas in good stead in the years to come. In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative team working on the Amul account came up with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the ad with a fervour that was almost as devout as the Iskon fever.
For the first one year the ads made statements of some kind or the other but they had not yet acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid concept would give them extra mileage, more dum, so to say. It was a decision that would stand the daCunhas in good stead in the years to come.
In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative team working on the Amul account came up with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the ad with a fervour that was almost as devout as the Iskon fever.
There are stories about the butter that people like to relate over cups of tea. "For over 10 years I have been collecting Amul ads. I especially like the ads on the backs of the butter packets, "says Mrs. Sumona Varma. What does she do with these ads? "I have made an album of them to amuse my grandchildren," she laughs. "They are almost part of our culture, aren't they? My grandchildren are already beginning to realise that these ads are not just a source of amusement. They make them aware of what is happening around them."
00380003911
Despite some of the negative reactions that the ads have got, DaCunhas have made it a policy not to play it safe. There are numerous ads that are risque in tone. "We had the option of being sweet and playing it safe, or making an impact. A fine balance had to be struck. We have a campaign that is strong enough to make a statement. I didn't want the hoardings to be pleasant or tame. They have to say something," says Rahul daCunha.
"We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The Indian Airlines one really angered the authorities. They said if they didn't take down the ads they would stop supplying Amul butter on the plane. So ultimately we discontinued the ad," he says laughing. Then there was the time when the Amul girl was shown wearing the Gandhi cap. The high command came down heavy on that one. The Gandhi cap was a symbol of independence, they couldn't have anyone not taking that seriously. So despite their reluctance the hoardings were wiped clean. "Then there was an ad during the Ganpati festival which said, Ganpati Bappa More Ghya (Ganpati Bappa take more). The Shiv Sena people said that if we didn't do something about removing the ad they would come and destroy our office. It is surprising how vigilant the political forces are in this country. Even when the Enron ads (Enr On Or Off) were running, Rebecca Mark
Amul's point of view on the MR coffee controversy There were other instances too. Heroine Addiction, Amul's little joke on Hussain had the artist ringing the daCunhas up to request them for a blow up of the ad. "He said that he had seen the hoarding while passing through a small district in UP. He said he had asked his assistant to take a photograph of himself with the ad because he had found it so funny," says Rahul daCunha in amused tones. Indians do have a sense of humour, afterall.
From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads continue to tease a laughter out of them.
00380003911
Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. That we laugh because the humour is what anybody would enjoy. They don't pander to your nationality or certain sentiments. It is pure and simple, everyday fun.
1.4 PROJECT DEFINITION
My project is directed to study the share of AMULs products in the market. Basically it is a survey approach and I have tried my level best to collect data and genuinely applied it to obtain my project goal, and proudly I present it before you. Indian business scenario is improving. Different commodities are contributing to increasing business volume. In this process companies are struggling hard to increase their commodity market share and further down their company market share. In food industry also there is intense competition and different food industries are making deliberations to improve their market share. AMUL is one of them, so I have selected AMUL to study its market share in India by studying small samples of market in the city of Ghaziabad where I put up. I have carried out surveys through questionnaires and interviews with the company retailers in the working of my project. AMUL has many competitors and in the cutthroat competitive scene of todays market it has to fight tough against them to maintain its no. 1 position especially in dairy products. I have also studied the consumer perception about AMUL products and also the competitors products.
00380003911
1.5 BACKGROUND
Current business scenario is passing through a marketing era. Consequently there is faster business development because of liberalization and improving economic environment. At present companies are struggling to improve their market dominance and visibility. In order to survive during present competitive environment companies are trying to grab a larger market share.
Growing liberalization and business favorable environmental changes have brought about enormous business opportunities for the companies. In various sectors and commodities, share the business is growing.
As a student of marketing management it is advisable to understand the various interactive marketing forces. One of the significant indicator understanding the influence of marketing forces on companies is the market share achieved by a company. Therefore the project undertaken has given me an opportunity to study the creation of market share of AMUL in India.
00380003911
1.6 AMUL PASTEURISED BUTTER
The largest selling brand of butter in India made from fresh cream. Marketed since last four decades. It is made in the most modern, state of the art plant and meets AGMARK standards. Considered as a basic and essential requirements by housewives, it is used to enhance the taste of various dishes like Dosas, Parathas, Omelettes, Pizzas, Pav Bhaji and on Bread.
It is available in different packs:100 gm 500 gm 110 x 9.1 gm 200 gm
1.7 AMUL LITE BREAD SPREAD
A delicious butter substitute, low in fat, low in cholesterol, it is the prefect way to a healthy breakfast. Most suitable for health conscious people as it has low fat content and cholesterol.
1.8 AMUL PROCESSED CHEESE
Made from rich creamy milk, 100% vegetarian ingredients, it makes delicious sandwiches, pav bhaji pizzas and can be used in your favorite recipes. Amul Processed Cheese is prepared using fully ripened Cheddar Cheese, which gives a unique taste, texture and mellowness.
It is available in: 8 x 25 gm Chiplet 200 gm Slice 200 gm Tin
00380003911
1.9 AMUL CHEESE SPREAD
Made from a special formulation, 100% vegetarian, it is delicious in sandwiches, chapattis and parathas. It is also used to enhance the taste of a whole range of products like filling of Burgers, Salads, Pakodas and host of other dishes. Available in 3 flavors plain, garlic and pepper.
It is available in: 200 gm Pepper 200 gm Plain 200 gm Garlic
1.10 AMUL PIZZA CHEESE The only genuine Mozzarella cheese made with state of the art technology, for the first time in India. Due to its stretch ability, its ideal as a pizza topping.
When baked along with pizzas, it melts uniformly and spreads evenly.
It is available in: 250 gm
1.11 AMUL CHEESE POWDER
Not only is it the only brand of cheese available in India, it is also the only form of cheese which doesnt require refrigeration. Being high in fat, protein and mineral content, it is very nutritious. Thanks to a slip on lid, the tin can be reused for storing other ingredients.
00380003911
Cheese powder is the most convenient form of using cheese. It can impart the desired cheesy flavour to any dish such as Soup, Salads, Baked dishes, Pastas, Dosas etc.
AMUL MALAI PANEER
The first branded and frozen paneer. Made from rich Amul milk to make it extra malaidar. It is available in: 100 gm 200 gm 1 kg
AMUL NUTRAMUL It has the highest protein content among brown beverage powders in India. Makes hot and cold milk beverages for children and adults. It confirms to BIS Quality standards.
AMUL MITHAEE Made from fresh khoa, maida and sugar to give it a softer, smoother and richer texture. The highest standards of hygiene are maintained at our state of the- art plant. Available in Easy Open tins, which are convenient and can be opened anytime, anyplace. It is available in: 500 gm 1 kg
00380003911
AMUL MITHAI MATE
Richer, whiter, free flowing condensed milk. Available in a new easy to open can. The product quality meets BIS standards.
It is available in: 200 gm 7.5 kg
SAGAR SKIMMED MILK POWDER
Its low calorie, high protein content is ideal for diet preparations. Also used for making curd and lassi. The product remains fresh since it is vaccum packed.
It is available in: 200 gm 500 gm 1 kg
00380003911
AMUL CHOCOLATE
In a range of variety of flavours, they make an ideal gift or treat for someone you love. It is the only chocolate, which comes in an attractive cardboard foil packaging. It is the first milk chocolate similar to real Swiss chocolates and melts at mouth temperature.
It is available in: Milk, fruit & Nut 20 gm Milk Slab 18 gm Badambar 35 gm
AMULSPRAY
It reconstitutes into the most wholesome, nutritive milk for infants. Marketed in India since 30 years and is Indias single largest selling infant food brand.
It is available in: 200 gm 500 gm 1 kg
00380003911
AMUL PURE GHEE
Made from fresh cream, it is rich and ideal for Indian food preparations like Parathas, Dosas, Idlis and for making sweets. Meets AGMARK special grade quality standard. Attractive multi colour packing catches the attention of all segments of consumers.
It is available in: 500 gm 1 ltr 1 kg 2 kg 5 kg
AMUL MILK POWDER High in fat content its ideal for reconstituting milk, in tea and coffee and for making curd, lassi and Indian desserts. It is vaccum packed so that it remains fresh for a long time.
SAGAR PURE GHEE
Traditionally grainy in texture, it enhances the flavour of Indian cooking. Its excellent aroma reminds of the home made Ghee. Meets AGMARK special grade quality standard. Hygienically manufactured and hermetically packed for longer shelf life.
It is available in: 500 gm 1,2 and 5 kg
00380003911
AMULYA DAIRY WHITENER Indias largest selling dairy whitener. It mixes instantly for making tea, coffee. Milk beverages, breakfast cereals and sweets. It is made from best quality milk using state of the art technology. Amulya comes in pouch, refill and tin packaging and sizes ranging from 50 gm to 25 kg.
It is available in: 50 gm 200 gm 500 gm 1 kg
00380003911
AMUL EMMENTAL CHEESE
Preferred by cheese lovers across the world, Emmental is the authentic Swiss cheese; popularly known as The Cheese With Holes. Enjoy it with crackers, crispies, croissants and wine. Its the exquisite cheese for exquisite occasions.
AMUL MITHAEE
Quick and easy to make, Amul Gulab Jamun Mix promises you great quality at best price, with gulab jamuns so delicious and so soft, theyll melt in your mouth.
00380003911
1.12HISTORY AND BACKGROUND OF AMUL

The first AMUL cooperative was the result of a farmers' meeting in Samarkha (Kaira district, Gujarat) on 4th January 1946, called by Morarji Desai under the advice of Sardar Vallabhbhai Patel. Dairy farmers in Kaira district in Gujarat organized into a union of cooperatives to counter "exploitive low" price offered for their milk by middleman/private milk processors. It had inspiration from the leaders of India. Eminent leaders like Sardar Vallabh Bhai Patel, Shri Morarji Desai, Shri Tribhuvandas Patel and Shri Lal Bahadur Shastri provided vision and inspiration.
The union, which registered itself as the Kaira District Cooperative Milk Producers' Union Limited (KDCMPUKL), began with 2 village milk cooperative societies and first day milk collection of 247 liters. In 1955, KDCMPUL adopted the brand name "AMUL" for its products. "AMUL" which was derived from Sanskrit word "Amulya" meaning "Priceless" also stood for "Anand Milk Union Limited", in 1954, with milk procurement at 5,000 liters per day, first time in the world AMUL built a plant to convert Buffalo milk into milk powder. From then onwards it has developed various milk products like Butter, Cheese, Chocolates, Malted milk food, Baby Food etc.
00380003911
The decision was taken that day in January 1946: Milk producers' cooperatives in villages, federated into a district union, and should alone handle the sale of milk from Kaira to the government-run Bombay Milk Scheme. This was the origin of the Anand pattern of cooperatives. The colonial government refused to deal with the cooperative. The farmers called a milk strike. After fifteen days the government capitulated. This was the beginning of Kaira District Cooperative Milk Producers' Union Ltd., Anand, registered on 14 December 1946.
Gujarats milk unions banded together in 1973 to form the Gujarat Cooperative Milk Marketing Federation Limited (GCMMF). GCMMF was established as a state level apex marketing organization to market its dairy cooperatives' products under a single brand name "AMUL". GCMMF became the sole marketer of the original range of AMUL products including milk powder and butter.
00380003911
CHAPTER 2 THEORETICAL FRAMEWORK
00380003911
2.1 DISTRIBUTION CHANNEL MANAGEMENT

Activities involved in making products available to customers when and where they want to purchase them. Distribution channels are sets of interdependent organizations involved in for use or consumption According to Stern and El-Ansary, Intermediaries smooth the flow of goods and services. . . . This procedure is necessary in order to bridge the discrepancy between the assortment of goods and services generated by the producer and the assortment demanded by the consumer. The discrepancy results from the fact that manufacturers typically produce a large quantity of a limited variety of goods, whereas consumers usually desire only a limited quantity of a wide variety of goods. the process of making a product or service available
A Distribution channel is an institution through which goods and services are marketed. Channels give place and time utilities to consumers. In order to provide these and other services, channels charge a margin. The longer the channel the more margins are added. Factors affecting channel choice Market factors- competitors, geography, Economy. Product factors- life cycle, size & weight, product value, consumer perceptions, product complexity. Manufacturer factors- company objective & Resources, Desire for control, Breadth of product life. Organization objectives mass appeal and rapid marketing.
00380003911
Buying habit of customers- Understanding consumer needs and criteria for buying Channel Availability - Channels may not be available
Market factors
Product Factors
Manufacturer Factors
Organisational Objectives
Buying Habit of customer
Channel Availability
Fig1.6 Factors Distribution Channel Types Intensive distribution means the producer's products are stocked in the majority of outlets. This strategy is common for basic supplies, snack foods, magazines and soft drink beverages. Selective distribution means that the producer relies on a few intermediaries to carry their product. This strategy is commonly observed for more specialised goods that are carried through specialist dealers, for example, brands of craft tools, or large appliances. Exclusive distribution means that the producer selects only very few intermediaries. Exclusive distribution is often characterised by exclusive dealing where the reseller carries only that producer's products to the exclusion of all others. This strategy is typical of luxury goods retailers such as Gucci.
00380003911
The company have the strong distribution channel system through which the distribution of goods and services takes place. The Distribution channel in Havells is considered to be an important task since the entire placement of goods and services to be reach to con.
2.2 SALES PROMOTIONS

Sales promotion is an important component of a small business's overall marketing strategy, along with advertising, public relations, and personal selling. The American Marketing Association (AMA) defines sales promotion as "media and nonmedia marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality." But this definition does not capture all the elements of modern sales promotion. One should add that effective sales promotion increases the basic value of a product for a limited time and directly stimulates consumer purchasing, selling effectiveness, or the effort of the sales force. It can be used to inform, persuade, and remind target customers about the business and its marketing mix. Some common types of sales promotion include samples, coupons, sweepstakes, contests, in-store displays, trade shows, priceoff deals, premiums, and rebates.
2.3 CONSUMER PROMOTIONS

Consumer sales promotions are steered toward the ultimate product userstypically individual shoppers in the local marketbut the same techniques can be used to promote products sold by one business to another, such as computer systems, cleaning supplies, and machinery. In contrast, trade sales promotions target resellers wholesalers and retailerswho carry the marketer's product. Following are some of the key techniques used in consumer-oriented sales promotions.
00380003911
PRICE DEALS A consumer price deal saves the buyer money when a product is purchased. The main types of price deals include discounts, bonus pack deals, refunds or rebates, and coupons. Price deals are usually intended to encourage trial use of a new product or line extension, to recruit new buyers for a mature product, or to convince existing customers to increase their purchases, accelerate their use, or purchase multiple units. Price deals work most effectively when price is the consumer's foremost criterion or when brand loyalty is low. Buyers may learn about price discounts either at the point of sale or through advertising. At the point of sale, price reductions may be posted on the package, on signs near the product, or in storefront windows. Many types of advertisements can be used to notify consumers of upcoming discounts, including fliers and newspaper and television ads. Price discounts are especially common in the food industry, where local supermarkets run weekly specials. Price discounts may be initiated by the manufacturer, the retailer, or the distributor. For instance, a manufacturer may "preprice" a product and then convince the retailer to participate in this short-term discount through extra incentives. For price reduction strategies to be effective, they must have the support of all distributors in the channel. Existing customers perceive discounts as rewards and often respond by buying in larger quantities. Price discounts alone, however, usually do not induce first time buyers. Another type of price deal is the bonus pack or banded pack. When a bonus pack is offered, an extra amount of the product is free when a standard size of the product is bought at the regular price. This technique is routinely used in the marketing of cleaning products, food, and health and beauty aids to introduce a new or larger size. A bonus pack rewards present users but may have little appeal to users of competitive brands. A banded pack offer is when two or more units of a product are sold at a reduction of the regular single-unit price. Sometimes the products are physically banded together, such as in toothbrush and toothpaste offers. A refund or rebate promotion is an offer by a marketer to return a certain amount of money when the product is purchased alone or in combination with other products. Refunds aim to increase the quantity or frequency of purchase, to encourage
00380003911
customers to "load up" on the product. This strategy dampens competition by temporarily taking consumers out of the market, stimulates the purchase of postponable goods such as major appliances, and creates on-shelf excitement by encouraging special displays. Refunds and rebates are generally viewed as a reward for purchase, and they appear to build brand loyalty rather than diminish it. Coupons are legal certificates offered by manufacturers and retailers. They grant specified savings on selected products when presented for redemption at the point of purchase. Manufacturers sustain the cost of advertising and distributing their coupons, redeeming their face values, and paying retailers a handling fee. Retailers who offer double or triple the amount of the coupon shoulder the extra cost. Retailers who offer their own coupons incur the total cost, including paying the face value. In this way, retail coupons are equivalent to a cents-off deal. Manufacturers disseminate coupons in many ways. They may be delivered directly by mail, dropped door to door, or distributed through a central location such as a shopping mall. Coupons may also be distributed through the mediamagazines, newspapers, Sunday supplements, or free-standing inserts (FSI) in newspapers. Coupons can be inserted into, attached to, or printed on a package, or they may be distributed by a retailer who uses them to generate store traffic or to tie in with a manufacturer's promotional tactic. Retailer-sponsored coupons are typically distributed through print advertising or at the point of sale. Sometimes, though, specialty retailers or newly opened retailers will distribute coupons door to door or through direct mail. CONTESTS/SWEEPSTAKES The main difference between contests and
sweepstakes is that contests require entrants to perform a task or demonstrate a skill that is judged in order to be deemed a winner, while sweepstakes involve a random drawing or chance contest that may or may not have an entry requirement. At one time, contests were more commonly used as sales promotions, mostly due to legal restrictions on gambling that many marketers feared might apply to sweepstakes. But the use of sweepstakes as a promotional tactic has grown dramatically in recent decades, partly because of legal changes and partly because of their lower cost.
00380003911
Administering a contest once cost about $350 per thousand entries, compared to just $2.75 to $3.75 per thousand entries in a sweepstake. Furthermore, participation in contests is very low compared to sweepstakes, since they require some sort of skill or ability. SPECIAL EVENTS According to the consulting firm International Events Group (IEG), businesses spend over $2 billion annually to link their products with everything from jazz festivals to golf tournaments to stock car races. In fact, large companies like RJR Nabisco and Anheuser-Busch have special divisions that handle nothing but special events. Special events marketing offers a number of advantages. First, events tend to attract a homogeneous audience that is very appreciative of the sponsors. Therefore, if a product fits well with the event and its audience, the impact of the sales promotion will be high. Second, event sponsorship often builds support among employeeswho may receive acknowledgment for their participationand within the trade. Finally, compared to producing a series of ads, event management is relatively simple. Many elements of event sponsorship are prepackaged and reusable, such as booths, displays, and ads. Special events marketing is available to small businesses, as well, through sponsorship of events on the community level. PREMIUMS A premium is tangible compensation that is given as incentive for performing a particular actusually buying a product. The premium may be given for free, or may be offered to consumers for a significantly reduced price. Some examples of premiums include receiving a prize in a cereal box or a free garden tool for visiting the grand opening of a hardware store. Incentives that are given for free at the time of purchase are called direct premiums. These offers provide instant gratification, plus there is no confusion about returning coupons or box tops, or saving bar codes or proofs of purchase. Other types of direct premiums include traffic builders, door openers, and referral premiums. The garden tool is an example of a traffic-builder premiuman incentive to lure a prospective buyer to a store. A door-opener premium is directed to customers at home or to business people in their offices. For example, a homeowner may receive a free clock radio for allowing an insurance agent to enter their home and listening to
00380003911
his sales pitch. Similarly, an electronics manufacturer might offer free software to an office manager who agrees to an on-site demonstration. The final category of direct premiums, referral premiums, reward the purchaser for referring the seller to other possible customers. Mail premiums, unlike direct premiums, require the customer to perform some act in order to obtain a premium through return mail. An example might be a limited edition toy car offered by a marketer in exchange for one or more proofs-of-purchase and a payment covering the cost of the item plus handling. The premium is still valuable to the consumer because they cannot readily buy the item for the same amount. CONTINUITY PROGRAMS Continuity programs retain brand users over a long time period by offering ongoing motivation or incentives. Continuity programs demand that consumers keep buying the product in order to get the premium in the future. Trading stamps, popularized in the 1950s and 1960s, are prime examples. Consumers usually received one stamp for every dime spent at a participating store. The stamp company provided redemption centers where the stamps were traded for merchandise. A catalog listing the quantity of stamps required for each item was available at the participating stores. Today, airlines' frequent-flyer clubs, hotels' frequent-traveler plans, retailers' frequent-shopper programs, and bonus-paying credit cards are common continuity programs. When competing brands have reached parity in terms of price and service, continuity programs sometimes prove a deciding factor among those competitors. By rewarding long-standing customers for their loyalty, continuity programs also reduce the threat of new competitors entering a market. SAMPLING A sign of a successful marketer is getting the product into the hands of the consumer. Sometimes, particularly when a product is new or is not a market leader, an effective strategy is giving a sample product to the consumer, either free or for a small fee. But in order for sampling to change people's future purchase decisions, the product must have benefits or features that will be obvious during the trial.
00380003911
There are several means of disseminating samples to consumers. The most popular has been through the mail, but increases in postage costs and packaging requirements have made this method less attractive. An alternative is door-to-door distribution, particularly when the items are bulky and when reputable distribution organizations exist. This method permits selective sampling of neighborhoods, dwellings, or even people. Another method is distributing samples in conjunction with advertising. An ad may include a coupon that the consumer can mail in for the product, or it may include an address or phone number for ordering. Direct sampling can be achieved through prime media using scratch-and-sniff cards and slim foil pouches, or through retailers using special displays or a person hired to hand out samples to passing customers. Though this last technique may build goodwill for the retailer, some retailers resent the inconvenience and require high payments for their cooperation. A final form of sample distribution deals with specialty types of sampling. For instance, some companies specialize in packing samples together for delivery to homogeneous consumer groups, such as newlyweds, new parents, students, or tourists. Such packages may be delivered at hospitals, hotels, or dormitories and include a number of different types of products.
2.4 TRADE PROMOTIONS

A trade sales promotion is targeted at resellerswholesalers and retailerswho distribute manufacturers' products to the ultimate consumers. The objectives of sales promotions aimed at the trade are different from those directed at consumers. In general, trade sales promotions hope to accomplish four goals: 1) Develop in-store merchandising support, as strong support at the retail store level is the key to closing the loop between the customer and the sale. 2) Control inventory by increasing or depleting inventory levels, thus helping to eliminate seasonal peaks and valleys. 3) Expand or improve distribution by opening up new sales areas (trade promotions are also sometimes used to distribute a new size of the product). 4) Generate excitement about the product among those responsible for selling it. Some of the most common forms of trade promotionsprofiled belowinclude point-of-purchase displays,
00380003911
trade shows, sales meetings, sales contests, push money, deal loaders, and promotional allowances. POINT-OF-PURCHASE (POP) DISPLAYS Manufacturers provide point-ofpurchase (POP) display units free to retailers in order to promote a particular brand or group of products. The forms of POP displays include special racks, display cartons, banners, signs, price cards, and mechanical product dispensers. Probably the most effective way to ensure that a reseller will use a POP display is to design it so that it will generate sales for the retailer. High product visibility is the basic goal of POP displays. In industries such as the grocery field where a shopper spends about threetenths of a second viewing a product, anything increasing product visibility is valuable. POP displays also provide or remind consumers about important decision information, such as the product's name, appearance, and sizes. The theme of the POP display should coordinate with the theme used in ads and by salespeople. TRADE SHOWS Thousands of manufacturers display their wares and take orders at trade shows. In fact, companies spend over $9 billion yearly on these shows. Trade shows provide a major opportunity to write orders for products. They also provide a chance to demonstrate products, disseminate information, answer questions, and be compared directly to competitors. Related to trade shows, but on a smaller scale, are sales meetings sponsored by manufacturers or wholesalers. Whereas trade shows are open to all potential customers, sales meetings are targeted toward the company's sales force and/or independent sales agents. These meetings are usually conducted regionally and directed by sales managers. The meetings may be used to motivate sales agents, to explain the product or the promotional campaign, or simply to answer questions. For resellers and salespeople, sales contests can also be an effective motivation. Typically, a prize is awarded to the organization or person who exceeds a quota by the largest percentage. PUSH MONEY Similarly, push money (PM)also known as spiffsis an extra payment given to sales-people for meeting a specified sales goal. For example, a manufacturer of refrigerators might pay a $30 bonus for each unit of model A, and a $20 bonus for each unit of model B, sold between March 1 and September 1. At the
00380003911
end of that period, the salesperson would send evidence of these sales to the manufacturer and receive a check in return. Although some people see push money as akin to bribery, many manufacturers offer it. DEAL LOADERS A deal loader is a premium given by a manufacturer to a retailer for ordering a certain quantity of product. Two types of deal loaders are most typical. The first is a buying loader, which is a gift given for making a specified order size. The second is a display loader, which means the display is given to the retailer after the campaign. For instance, General Electric may have a display containing appliances as part of a special program. When the program is over, the retailer receives all the appliances on the display if a specified order size was achieved. TRADE DEALS Trade deals are special price concessions superseding, for a limited time, the normal purchasing discounts given to the trade. Trade deals include a group of tactics having a common themeto encourage sellers to specially promote a product. The marketer might receive special displays, larger-than-usual orders, superior in-store locations, or greater advertising effort. In exchange, the retailer might receive special allowances, discounts, goods, or money. In many industries, trade deals are the primary expectation for retail support, and the marketing funds spent in this area are considerable. There are two main types of trade deals: buying allowances and advertising/display allowances. BUYING ALLOWANCES A buying allowance is a bonus paid by a manufacturer to a reseller when a certain amount of product is purchased during a specific time period. For example, a reseller who purchases at least 15 cases of product might receive a buying allowance of $6.00 off per case, while a purchase of at least 20 cases would result in $7.00 off per case, and so forth. The payment may take the form of a check or a reduction in the face value of an invoice. In order to take advantage of a buying allowance, some retailers engage in "forward buying." In essence, they order more merchandise than is needed during the deal period, then store the extra merchandise to sell later at regular prices. This assumes that the savings gained through the buying allowance is greater than the cost of warehousing and transporting the extra
00380003911
merchandise. Some marketers try to discourage forward buying, since it reduces profit margins and tends to create cyclical peaks and troughs in demand for the product. The slotting allowance is a controversial form of buying allowance. Slotting allowances are fees retailers charge manufacturers for each space or slot on the shelf or in the warehouse that new products will occupy. The controversy stems from the fact that in many instances this allowance amounts to little more than paying a bribe to the retailer to convince them to carry your company's products. But many marketers are willing to pay extra to bring their products to the attention of consumers who are pressed for time in the store. Slotting allowances sometimes buy marketers prime spaces on retail shelves, at eye level or near the end of aisles. The final type of buying allowance is a free goods allowance. In this case, the manufacturer offers a certain amount of product to wholesalers or retailers at no cost if they purchase a stated amount of the same or a different product. The allowance takes the form of free merchandise rather than money. ADVERTISING ALLOWANCES An advertising allowance is a dividend paid by a marketer to a reseller for advertising their product. The money can only be used to purchase advertisingfor example, to print flyers or run ads in a local newspaper. But some resellers take advantage of the system, so many manufacturers require verification. A display allowance is the final form of trade promotional allowance. Some manufacturers pay retailers extra to highlight their display from the many available every week. The payment can take the form of cash or goods. Retailers must furnish written certification of compliance with the terms of the contract before they are paid. Retailers are most likely to select displays that yield high volume and are easy to assemble.
00380003911
CHAPTER -3 RESEARCH METHODOLOGY
00380003911
3.1 OBJECTIVES OF THE STUDY

To study the distribution network of Amul Ice cream. To compare the distribution network of Amul with Mother Dairy and Kwality Walls. To find out the improvements that can be undertaken to improve the distribution network of the company To Judge if Store acts as a factor affecting the sales of the companys product at the counters. To find out the promotional techniques adopted by the company. To ascertain the impact of sales promotional activity on purchase decision To find out the market share of the Amul Ice cream
3.2 SCOPE OF THE STUDY

Studying the behavioural pattern of the consumers and sales promotion techniques of Amul Ice cream. Research survey on the consumers was carried out randomly in various places within Delhi NCR. Consumers who were focused for the survey were a homogeneous mixture of men and women of different age groups. The survey participants considered under this study comprised of working men and women, businessmen, housewives, students, college goers (youth). 3.4 LIMITATIONS OF THE STUDY Since the study was within a period of 8 weeks, time factor was a major constraint. A survey should not involve a large sample size otherwise the findings of the surveys cannot be generalized. But a large sample size may increase the time and cost of collecting the primary data with the help of questionnaire.
00380003911
Some people were not willing to respond and few of them who responded were in hurry hence the active participation was lacking. Due to which i faced difficulties in collecting informations regarding the questionnaire.
Another problem which I faced was that people were hesitating to give information about their views freely.
3.3 RESEARCH DESIGN

The research survey was mainly focused on dealers and retailers . The survey was conducted by distributing questionnaire to dealers and retailers and the feedback was collected from them. The data and information collected were analysed to draw the inference.
3.3.1 SOURCES OF DATA

Primary Data Primary data was collected through questionnaire survey of Dealers and Retailers. Secondary Data -Secondary data was collected from companys catalogue, websites, and magazines.
3.3.2 SAMPLE DESIGN

RESEARCH DESIGN: RESEARCH APPROACH: SAMPLE SIZE: Descriptive Research Study Method. Survey Approach 25 Customers 25 Dealers TOTAL SAMPLE SIZE: SAMPLE: EXTENT: 50 Dealers, Retailer and Customers Delhi & NCR
00380003911
SAMPLING TECHNIQUE: RESEARCH INSTRUMENT: QUETIONNAIRE DESIGN:
Convenience Sampling Questionnaire and Interview Schedule The questionnaire is based on five point Likert
Scale.
DATA SOURCE:
Primary Data and Secondary Data
00380003911
CHAPTER -4 DATA ANALYSIS AND INTERPRETATION
00380003911
Data Interpretation
Customer Analysis
An analysis of the data collected from the primary survey reveal various aspects of the consumer like buying behavior, preferences etc. the results are as followings. (All figures in percentages except where mentioned)
1.
Would you like to eat ice-cream?
Column1
No Yes
Fig 1 shows how many people like to eat ice cream INTERPRETATION As the above pie chart shows the majority of the people like to eat the ice cream as 75% of the people say Yes and just 25% of the people say No.
00380003911
2.
Which other brands are you aware of? Amul 34%, Cream-Bell 16% Others 4% Mother Dairy 32% Kwality 14%
Kwality; 14%
Others; 4%
Amul ; 34% Cream-Bell; 16%

Amul Mother Dairy Cream-Bell
Mother Dairy; 32%
Kwality Others
Fig 4.2 Brand
INTERPRETATION As the above pie chart shows the majority of the people like to have AMUL ice cream i.e. 34% and after that 32% will like to have mother dairy and 16% will go for cream bell , 14% will opt kwality and 4% for others.
00380003911
3.
What sort of promotional activity do you get from using the brand? Discount 58%, Gift item 9%, Cash return 6% Others 5%
Others 7%
Discount Cash return Gift item
Gift item 11%
Others
Discount 74%
Cash return 8%
Fig 4.3 Promotional activity
INTERPRETATION
As the above pie chart shows the majority of the people the majority of the people would like to have Discount i.e. 58% and 11% will go with gift items , 8 will choose cash return and just 7% will opt others
00380003911
4.
From where you come to know about the brand? Print media 32%, Friends 21%, Tv. Ads 22% Hoarding 18% Others 7%
TV.Ads 22% Others 7%
Friends 21%
TV.Ads Print media Hoarding Friends Others
Hoarding 18%
Print media 32%
Fig 4.4 Brand Awareness
INTERPRETATION As the above pie chart shows the majority of the people say that they come to know about the brand through print media and TV Ads i.e 32 % and 22% respectively, 21% say that they come to know through Friends, 18% says that through Hoarding and just 7% goes with others.
00380003911
5.
Why you prefer buying the product? Taste 32%, Quality 48%, Price 15% Availability 5%
Availability 5% Taste 48% Quality 15%
Taste Price Quality

Price 32%
Availability
Fig 4.5 Buying the product
INTERPRETATION As the above pie chart shows the majority of the people buy the product on the basis of the taste i.e. 48% , and 32% will buy the product because of the price and just 15% and 5% buy the product because of the Quality and Availability
00380003911
6.
Which brand you normally like or prefer to eat in ice-cream? Amul 34%, Cream-Bell 16%, Others 4% Mother Dairy 32% Kwality 14%
Kwality 14%
Others 4%
Amul 34%
Amul Mother Dairy Cream_Bell Kwality Others
Cream_Bell 16%
Mother Dairy 32%
Fig 4.6 Brand preference to eat the ice cream INTERPRETATION As the above pie chart shows the majority of the people goes with the Amul i.e 34% , and 32% goes with mother dairy and 16%, 14% and 4% goes with Cream Bell , kwality and others respectively
00380003911
7.
Do you use family pack or brick for party or generally for home?
Yes 75%,
No 25%
Yes 75%
No 25%
Yes No
Fig 4.7 Variety of Ice cream INTERPRETATION As the above pie chart shows the majority of the people use brick for party or generally for home i.e. 75% people say YES and just 25% people say NO.
00380003911
8.
Do you think that any new brand can penetrate in the market? Yes 58%, Cant say 4% No 38%
No 38%
Yes No Can't say

Yes 58% Can't say 4%
Fig 4.8 New Brand can penetrate the market INTERPRETATION As the above pie chart shows the majority of the people say YES new product can penetrate in the market easily i.e 58% and just 38% and 4% goes with No and Cant say respectively.
00380003911
9.
Do you think that advertisement affect the sale of the product? Yes -98% No-2%
No 2%
Yes
Yes 98%
No
Fig 4.9 Advertisement affect INTERPRETATION As the above pie chart shows the majority of the people i.e. 98% of the people say Yes Advertisement affect the sale of the product and just 2% people say No its Doest.
00380003911
10. Which is the most selling brand?

Amul 26%, Mother Dairy 27%, Others 4% Cream-Bell 22% Kwality -21%
Amul, 26%
Mather Dairy, 27%

Amul Mather Dairy Cream-Bell Kwality
Others, 4% Kwality, 21%
Others
Cream-Bell, 22%
Fig 4.10 Most selling brand
INTERPRETATION As the above pie chart shows the majority of the people says that Mother Diary and AMUL are the maximum selling brand i.e 27% and 26% respectively, and 22% , 21% , 4% is for Cream Bell, kwality and others respectively.
00380003911
DISTRIBUTOR ANALYSIS QUESTIONNAIRE
00380003911
1.
Which brand you normally stock? 1).Amul -34%, 2).Mother Dairy -32%, 4).Kwality -14%, 5).Others -4% 3).Cream-Bell -16% ,
Kwality 14% Cream-Bell 16%
Others 4%
Amul 34%
Amul Mother Dairy Cream_Bell Kwality
Mother Dairy 32%

Fig.1 Stock of the brand INTERPRETATION
Others
As the above pie chart shows the majority of the distributor stock Amul and Mother Dairy i.e. 34 % and 32% , for Cream Bell 16%, kwality 14% and only 4% goes with others.
00380003911
2.
Which is the most selling brand? 1) Amul - 42%, 3) Cream-Bell - 14%, 5) Others - 4 % 2) Mother Dairy - 34%, 4). Kwality - 12%,
Kwality 12% Cream-Bell 14%
Others 4% Amul 39%

Amul Mother Dairy Cream_Bell Kwality
Mother Dairy 31%

Fig 4.12 Most selling brand INTERPRETATION
Others
As the above pie chart shows the majority of the distributor say that Amul and Mother Dairy are the most selling brands i.e. 42% and 34% respectively and for Cream Bell 14% , Kwality 12% and For Others 4%.
00380003911
3.
Do you think that new brand can penetrate in the market?
1)Yes-58% 2) No-38% 3) Cant say-4%
Can't say 4%
No 38%
Yes 58%
Yes No Can't say
Fig 4.13 Brand INTERPRETATION As the above pie chart shows the majority of the distributor i.e 58% say Yes new brand can easily penetrate and just 38% say No and just 4% say Cant say.
00380003911
4.
Why would you like to prefer particular brand? 1)Credit, 3) Sales man visit, 2) Sales Promotion, 4) Customer choice
Credit 41%
Sales Promotion 33%

Credit Sales Promotion Salesman Visit Customer Choice
Customer Choice 12%

Fig4.14 Particular brand INTERPRETATION
Salesman Visit 14%
As the above pie chart shows the majority of the distributor choose Credit is the reason why they would like to choose the particular brand.33% ,14%,12% Goes with Sales Promotion ,Salesman Visit and Customer Choice respectively.
00380003911
5.
How many days company provides credit facility?
1)7day, 3) COD, 5) No credit
2) 15day, 4) DOD,
DOD 20%
No Credit 40%
7day 15 Day COD DOD
COD 15%
No Credit
15 Day 10%
7day 15%
Fig 4.15 Credit facility INTERPRETATION As the above pie chart shows the majority distributor says that company provide them the facility for the credit 15days and 7days.
00380003911
6 .Does company provide any sales promotional activity?

1) Yes-75%, 2) No-25%
Yes 75%
No 25%
Yes No
Fig 4.16 Promotional activity
INTERPRETATION As the above pie chart shows the majority of the distributor says Yes many company provide sales promotional activity.
00380003911
7. In how many days does company representative visit to you?

7day- 15% 15day- 10% 18day- 15% 20day-20% 30day-40%
7day 15% 30 Day 40% 15 Day 10%

7day 15 Day 18 Day 20 Day
20 Day 20%
Fig 4.17 Represenatative INTERPRETATION
18 Day 15%
30 Day
As the above pie chart shows the majority of the distributor say that in 30 days the company representative visit to them and 20% ,15% ,15%, 10% for 20days, 18days,7days and 15days respectively.
00380003911
8.
Does Company provide any help for the dump stocks? 1) Yes 2). No
No 25% Yes 75%

Yes No
Fig 4.18 dumb stock
From the above figure it can be seen that 75% of the dealers said that company provide help for the dumb stock whereas the 25% of the dealers said that company doest not provide any help for the dumb stock
00380003911
CHAPTER -5 FINDINGS & DISCUSSION
Deep Penetration of Amul Ice Cream Sahibabad, Muradnagar and Modinagar market.
00380003911
So far as problem is concerned the main problem with ice-cream is the selection of not suitable distributor. In some cases distributor does not have that much capital so that he can allow credit of given 1 day to the retailers. Another problem according to distributor is that, the distributors margin is very less as compared to other distributors. As a result of which they are not satisfied. And they pay very little interest to Amul ice-cream. It was found that there are also some problems related to supply chain management which makes the person, who are interested on selling ice-cream. First of all the varieties of icecream mentioned in the product list it has already been mentioned that certain flavors in the product list are not available in the market. This problem is further aggravated by the inefficient physical distribution of ice-cream. Several retailers & consumers complain that some times they get loose ice-cream. The season is the physical distribution of ice-cream in the market is done by auto. So during carrying from distribution point to the retailer it gets look. Distributor contains that with such very small margin they cant afford to use refrigerated van. The company should make arrangement for such vans specially when the area is large & sales volume is high. It has been found that display affects the sale to a great extent. It makes the people aware of its presence. Amuls distributor & retailer complain that company has completely failed in providing them adequate display materials. They have not been provided with Glow-sign boards, Danglers, P.O.P.s, Banners etc. this problem should be addressed as soon as possible as it may adversely affect the sales and cause dissatisfaction among retailers. It is significant to mention here that Candia provides such materials ten times as much as Amul. It has already been mentioned that to sell ice-cream one needs a deep freezer. It is an initial investment for the business. So, definitely the lower investment is the more investors. But it has been found that Amul charges very high price for a deep freezer. It charges approximately 10 to 15 thousand more than the Mother Dairy & Cream Bell for the some deep freezer. It inhibits the retailers, from subscribing to Amuls freezer. The company argues that they sell the freezer while others provide on security, so they charge high. Though actually providing on security is always preferable to the retailers. They maintain that in case their business doesnt earn them profit their money will be wasted it they have purchased the freezer. While it they get it on security they will get a certain amount back by returning the freezer to the
00380003911
company. Moreover, they automatically become the owner of freezer after five or six years. So why should they take risk by investing so such? Also from companys point of view security system is better. Because, in this case the distributor have holds on the retailers. They can compel them to refrain from selling other bands. But if they have purchased they cant be compelled in fact, at almost every sale counter it was found that other brands are being sold in Amuls provided freezers. So company must make a provision for providing freezers on security. Rather the company should even more flexible on this matter. They must have a facility of paying for that at least twenty retailers were willing to subscribe to Amuls freezer but didnt have enough money to invest at one go. The market share of Amul will increase dramatically if it adopts either of the suggested measures. Moreover the company should inject brand loyalty into the retailers by providing them the replacement facility in certain genuine cases. It should encourage the distributor to extend credit facility to the retailers for a period of at lest one week. It helps in developing a congenial image of the company. It ultimately results in enhanced market share. Moreover the company should explore the sales in the residential societies. It should make different strategies to enable its sales force to make a breakthrough in those areas. The companys sales will increase tremendously if it succeeds in developing the residential societies into a market for its ice-cream. Hotels and Restaurants are other potential market for the ice-cream. It is relevant to mention have that Hotels & Restaurants look for the lower landing costs more than the margin. In retailing some practical problems were found related to distribution of the Amul ice-cream in Sahibabad. First of all distributor did not have a list of all the existing outlets of ice-cream in Sahibabad. It should be at the distributors point for the proper and punctual supply of ice-cream. In the supply of ice-cream, retailers name with address and telephone number plays an important role. Say, in any case if distributor is not able to visit the shop then he can contact on telephone. Distributor doesnt visit the outlet with companys executive in a planned way, so that, the feedback of all the retailers can be taken properly and the problems can be solved. Visit of distributor with companys executive makes a positive impact on retailers which results into a stronger retailer between company and retailers.
00380003911
Supply plays an important role in a dynamic market like Sahibabad, so for as perishable product is concerned, supply channel management plays an immense role. During the research it was found that most of retailers giving order every day before 12 Oclock were expecting delivery latest by 3 Oclock. According to them, sale of ice-cream occurs mostly in the evening and each & every customer is looking for a fresh product . So, the distributor should take care of that, which was really not happening. As a result of which the sale of Amul ice-cream is less in Sahibabad in comparison to other WD area. Sometimes company is also not able to fulfill the demand of market (distributors) which is a fault on the part of company. So, the production capacity should be increased to fulfill the demand. Availability of advertising material also plays an important role in the mindset of retailer as well as in market of customer. Through the P.O.Ps, banner etc. consumer comer to know about the product and their availability. Amul was facing the problem related to the scarcity of advertising materials. In Sahibabad market Amuls main competitor is Mother Dairy has advantage that their manufacturing unit is situated in Delhi itself as a result of which they dont have any problem related to supply channel management.
00380003911
CHAPTER -6 CONCLUSION
00380003911
6.1 Conclusion
After analysis and the interpretation of data we easily conclude from this that the satisfaction level is very high among the distributors especially the dealers but some retailers are unhappy due to their less profit margins and the price variation of the home appliances as compared to other brands. The study shows some need for improvements to save the interest of the retailers which includes good support of after sales services to them and the profit margins should be well decided for them by coordinating and negotiating with the distributors. The price of the products should be such that all income group levels may find suitable product for them and this will going to help the retailers also and they keep stock of Amul ice cream more as compared to other brands. The problem related to monopoly of the dealers in a region should be reduced by having more number of dealers and protecting the interest of the Retailers thereby giving them an opportunity to make benefit out of the stock that they are keeping. Banners should be provided to the retailers on time as some reported that the company is not providing banners and other required material that indirectly harming the companys goodwill. Schemes should be provided to the retailers as they are the valuable part of the distribution channel and can help the company to attain the better position in market. The company should work on the distributors segregation and they must be spread across as the retailers will get their products easily and the profit margins will be more for the retailers as the monopoly of the dealers lead to the exploitation of the retailers.
The prices of wire is high due to which it is not being preferred by most of the customers.
00380003911
CHAPTER -7 RECOMMENDATIONS
00380003911
7.1 RECOMMENDATIONS
1) More local/ regional advertisements should be there to make people aware of Amul and its products 2) There should be more advertisement on different websites. 3) Campaigning should be done at all level. 4) Business Development Officers should contact Customers in different core sector industries on regular basis. 5) Attractive discount schemes should be provided. 6) Product catalogues and price lists should be made available to the customers on regular basis. 7) Sales person of the company as well as distributor should be motivated to have ownership feelings which will improve sales. 9) Company should consider to reduce its price further. 10) The commitments which are made by company or distributor must be fulfilled 11) If company backs out any scheme, then it should give sometime to the retailer. 12) To provide with updated information and knowledge to the retailers about the product. 14) Company should improve its grievance handling system.
00380003911
CHAPTER 8 BIBLIOGRAPHY
00380003911
Books 1. Phillip Kotler, Marketing Management 2. Malhotra Naresh K. Marketing Research Websites 1. www.amul.com/icecream 2. www.foodsci.uoguelph.ca/dairyedu/icstructure.com News Papers 1. Hindustan Times 2. The Economics Times
00380003911
CHAPTER 9 ANNEXURE
00380003911
Dear Respondent, Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for the Amul Ice-cream that we have chosen to study. Any information provided by you will purely and strictly be used for Academic purpose only.
Name of the consumer: _____________________________________ Address: __________________________________________________ Age: ________ Location: __________________________
1.
Would you like to eat ice-cream? Yes No
2.
Which other brands are you aware of? Amul Cream-Bell Mother Dairy Kwality
3.

What sort of promotional Activity do you get from using the brand ? Dicount Cash Return Gift Others From where you come to know about the brand ? Print Media Hoarding Friends Tv Ads
4.
Deep Penetration of Amul Ice Cream Others
00380003911
5.
Why do you prefer in buying the product? Test Availability Price Quality
6.
Which brand you normally like or prefer to eat in ice cream? Amul Cream Bell Others Mother diary Kwality
7.
Do you use family pack or brick for party or generally for home ? 1] YES 2] NO
8.
Do you think that any new brand can penetrate in the market? Yes No
9.
Do you think that advertisement affect the sale of the product? Yes No
10. Which is the most selling Brand?

Amul cream bell Mother Diary Kwality Others
Deep Penetration of Amul Ice Cream Distributor Questionnaire
00380003911
Name of the Shop owner: __________________________________ Address: _______________________________________________ Location:
_________________ Contact No:- __________________
1.
Amul
Which brand normally stock? Mother Dairy Kwality Others
Cream-Bell
2.
Which is the most selling brand? Amul Cream-Bell Mother Dairy Kwality Others
3.
Do you think that new brand can penetrate in the market? Yes No cant say
4.
Why would you like to prefer particular brand? 1) Credit 2) Sales Promotion 3) Sales man visit 4) Customer choice
5.
How many days company provides credit facility? 2) 15day 3) COD 4) DOD
1) 7day
5) No credit
6.
Does company provide any sales promotional activity? 1) Yes 2) No
7.
In how many days does company representative visit to you? 1) 7day 2) 15day 3) 18day 4) 20day 5)30day
8.
Does company provide any help for the dump stocks? 1) Yes 2) No
00380003911
9.
On what parameters do you choose this pack size? Break 100 ml 750 ml Galleon 120 ml 1 liter 40 ml 150 ml 50 ml 17 5ml 60 ml 200 ml 75ml 500 ml

Final Project

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final Project

Uploaded by

Copyright:

Available Formats

Deep Penetration of Amul Ice Cream

1 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

GUJARAT COOPERATIVE MILK MARKETING FEDERATION GCMMF: AN

2 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

3 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

1.2 PRODUCT PROFILE

Mithaee Range (Ethnic sweets):

UHT Milk Range:

4 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Infant Milk Range:

Sweetened Condensed Milk:

5 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

Amul Ice creams:

6 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

Chocolate & Confectionery:

Ready to Serve Soups:

7 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream 1.3AMUL: THE ORIGIN

The start of a revolution

8 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

Cattle: From stumbling blocks to building blocks.

9 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

10 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

11 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

12 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

13 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

1.4 PROJECT DEFINITION

14 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

15 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

1.6 AMUL PASTEURISED BUTTER

It is available in different packs:100 gm 500 gm 110 x 9.1 gm 200 gm

1.7 AMUL LITE BREAD SPREAD

1.8 AMUL PROCESSED CHEESE

It is available in: 8 x 25 gm Chiplet 200 gm Slice 200 gm Tin

16 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

1.9 AMUL CHEESE SPREAD

It is available in: 200 gm Pepper 200 gm Plain 200 gm Garlic

It is available in: 250 gm

1.11 AMUL CHEESE POWDER

17 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

AMUL MALAI PANEER

It is available in: 500 gm

18 GITARATTAN INTERNATIONAL BUSINESS SCHOOL

Deep Penetration of Amul Ice Cream

AMUL MITHAI MATE

It is available in: 200 gm 7.5 kg

SAGAR SKIMMED MILK POWDER

It is available in: 200 gm 500 gm 1 kg

19 GITARATTAN INTERNATIONAL BUSINESS SCHOOL