You are on page 1of 84

TABLE OF CONTENTS

1. Certificate.
2. Acknowledgement.
3. Overview Of The Company.
4. Executive Summary.
5. Objective of the Study.
6. Research Methodology.
7. Product Range.
8. Distribution Network.
9. Overview Of The GCMMF
10.

Info Flash GCMMF.

11.

Management At Amul.

12.

Marketing of Amul Ice Cream.

13.

SWOT Analysis.

14.

Graphics.

15.

Findings.

16.

Recommendations.

17.

Bibliography.

18.

Conclusion.

19.

Questionnaire.

A
PROJECT REPORT
ON
STUDY OF DISTRIBUTION CHANNEL
& SALES ` OF
AMUL ICE CREAM
AT NOIDA

as required for the partial


fulfillment of the degree of

BACHELOR
ADMINISTRATION

OF

BUSINESS

(B.B.A.)

SESSION (JULY 2015 April


2016)
UNDER THE
Project
SUBMITTED BY :

Guide

Mr. Akhilesh Gupta


AKASH SAINI
No.1305014581

B.B.A 6 Sem.
Roll

Sikkim Manipal
University, Agra.
2015-2016

SIKKIM MANIPAL UNIVERSITY,


AGRA.

TO WHOM IT MAY CONCERN


This is to certify that Mr. Akash Saini has
completed the project report titled Analysis of
Distribution Network Effectiveness & Sales of Amul
Ice-cream at Noida under my guidance in partial
fulfillment

of

the

BACHELOR

OF

BUSINESS

ADMINISTRATION.
To, the Best of my Knowledge, the same has not
been submitted in any other University/ Institute
for the purpose of pursuing any other professional
Degree/ Diploma Course.

Project Guide : Mr. Akhilesh Gupta


Date:
Place:
4

Seal

of the Directors/Dean

DECLARATION

I here by declare that this project report submitted


to SIKKIM MANIPAL UNIVERSITY AGRA in Partial
fulfillment

of

the

Bachelor

of

Business

Administration on Analysis of Distribution Network


Effectiveness & sales of Amul Ice-cream at Noida
is the outcome of my own work.

AKASH
SAINI
5

B.B.A.6 Sem.

ACKNOWLEDGEMENT

The feeling of gratitude when expressed in words


is only half its acknowledgement. Expressions fail
to produce ours over whelming sense of gratitude,
devotion, and contestable regards to our project
coordinator MR. AKHILESH GUPTA for his valuable
guidance, inspiring suggestions and refreshing
encouragement which was a driving force for the
successful

completion

of

this

project

work.

Without his meticulous planning, incisive thinking


6

and cogent advice, this project would not have


assumed the form, it is in today.

AKASH SAINI
B.B.A. 6
Sem.

OVERVIEW
OF
AMUL
INDIA
The
Amul
India
Story: Ruth Herediya

"So persevere, if necessary. For success attends only


those who persevere, who see their goal steadily and aim
for it unswervingly... who persevere with dedication and
faith in the cause they are fighting for..."
The author, Ruth Heredia's connection with Amul dates
back to the inauguration of the Amul Dairy when, aged
four, she presented a bouquet to the guest of honour,
Pandit Jawaharlal Nehru. She and her family have sampled
the taste of Amul Condensed Milk and Amul Cheese
through their various progressive stages.
Ms Heredia is an occasional writer, and sometimes
lectures on her favourite subjects: music, literature and
history. She has a post graduate degree in English, has
been a librarian, loves animals (especially dogs), and
enjoys a good movie or a tennis match.
The Amul India Story is a stimulating excursion into a
dream that is now reality. Blessed with the vision of Sardar
Vallabhbhai Patel, a patriot, the book traces the birth of a
small movement in Gujarat, the Kaira District Cooperative
Milk Producer's Union and its evolution into a fantastic new
paradigm of development. A fast-paced narrative, laced
with several fascinating anecdotes, the book chronicles
the daring initiatives and dynamism displayed by a team
of committed individuals - a farmer, Tribhuvandas
anticipation...Patel, a professional manager, V.Kurien and
a technologist, H.M.Dalaya. This is a story of faith,
empowerment,

and

dream

realization,

with

all

the

elements that make a story more interesting - passion,


humour and the thrill of
8

Gujarat Co-operative Milk Marketing Federation Ltd.


(GCMMF) is an Indias largest food product marketing
organization. It is a state level apex body of
milk co-operatives in Gujrat.which aims to provide
remunerative returns to the farmers and also serve the
interests of consumers by providing quality products,
which are good value for money.
Members: 12 districts co-operative milk producer union.
No. of producer members: 2.5million.
No. of Village societies: 11,962.
Total milk handling capacity: 9.91 million liters per day.
Milk collection total (1999-00): 2.28 billion liters.
Milk collection daily (1999-00): 6.3 million liters.
Milk Drying Capacity: 511 metric Tons per day.
Cattlefeed manufacturing Capacity:2340 Mts per day.
Sales Turnover Rs. (million)

US $ (in million).

1994-95

11,140

355

1995-96

13,790

400

1996-97

15,540

450

1997-98

18,840

455

1998-99

22,192

493

1999-00

22,185

493

2000-01

22,588

500

2001-02

23,365

500

2002-03

27,457

575

2003-04

28,941

616

2004-05

29,225

672

2005-06

37,736

850
9

AMUL TOPICAL STORY

Amul Butter Girl


Edited from an article by Mini Varma published in The
Asian Age on March 3, 1996
The moppet who put Amul on India's breakfast
table
50 years after it was first launched, Amul's sale figures
have jumped from 1000 tonnes a year in 1966 to over
25,000 tonnes a year in 1997. No other brand comes even
close to it. 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 four-year-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."
10

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.
For 30 odd years the Utterly Butterly girl has managed to
keep her fan following intact. So much so that the ads are
now ready to enter the Guinness Book of World Records
for being the longest running campaign ever. The ultimate
compliment to the butter came when a British company
launched a butter and called it Utterly Butterly, last year.
It all began in 1966 when Sylvester daCunha, then the
managing

director

of

the

advertising

agency,

ASP,

clinched the account for Amul butter. The butter, which


had been launched in 1945, had a staid, boring image,
primarily because the earlier advertising agency which
was in charge of the account preferred to stick to routine,
corporate ads.

One of the first Amul hoardings


11

In India, food was something one couldn't afford to fool


around with. It had been taken too seriously, for too long.
Sylvester daCunha decided it was time for a change of
image.

The year Sylvester daCunha took over the account, the


country saw the birth of a campaign whose charm has
endured fickle public opinion, gimmickry and all else.
The Amul girl who lends herself so completely to Amul
butter, created as a rival to the Polson butter girl. This one
was sexy, village belle, clothed in a tantalising choli all but
covering her upper regions. "Eustace Fernandez (the art
director) and I decided that we needed a girl who would
worm her way into a housewife's heart. And who better
than a little girl?" says Sylvester daCunha. And so it came
about that the famous Amul Moppet was born.
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

phenomenal,"

recalls

Sylvester daCunha. "We knew our campaign was going to


be successful."
12

The Rebecca Mark favorite


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.
That was the first of the many topical ads that were in the
offing. From then on Amul began playing the role of a
social observer. Over the years the campaign acquired
that all important Amul touch.
India looked forward to Amul's evocative humour. If the
Naxalite movement was the happening thing in Calcutta,
Amul would be up there on the hoardings saying, "Bread
without Amul Butter, cholbe na cholbe na (won't do, won't
do). If there was an Indian Airlines strike Amul would be
there again saying, Indian Airlines Won't Fly Without Amul.
13

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."
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
14

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
wrote to us saying how much she liked them."

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.
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.
15

EXECUTIVE SUMMARY

This Project Report Undertaken for Gujarat Cooperative Milk Marketing Federation Ltd. To find out Sales
& Distribution Network

of Amul Ice cream and margin

availability, quality, packaging and various problem of the


outlet holders. The survey for this purpose was conduct in
various areas covered by Amul (GCMMF) Ghaziabad.
The area given to me Urban and rural adjoining. This
was collect by various means general instruction and
questionnaire. Analyzing the collected data and reporting
the

finding

notification,

and

determining

retailer

perception and summarized in project


Most of the retailer thinks that price is high and
service in

consistence and delay in the supply is

complained also. But quality is undoubtedly good.

16

PROJECT OBJECTIVE
The basic objective of the project is to know about
the sales and Distribution Network in the market and to
know how their competitors are giving their services.
Analysis of Distribution Network Effectiveness &
Sales of Amul Ice Cream at Noida
The sub objectives are as follows: To compare Amul existing Distribution network vis a
vis competitors
To

identifies

the

area

of

expansion

of

Amul

Distribution Network for the two product categories


To asses effectiveness of existing brand input for all
three product categories i.e.
a) Advertising inputs
b) Availability of product
c) Pricing pattern
d) Schemes and margin
e) Quality of product
17

f) Service backup
g) Credit term
h) Other dealer feedback
To compile Amuls display share and self space
To study the potential of dealer and to know whether
their potential is fully utilized .

The market survey was focused upon Distribution Network


and importance of sales promotion. Todays

emphasis

giving

marketing

on

the

importance

environment to keep product

of

monitoring

and marketing practices

current but how can management learn about changing


customer wants, new competitors initiative, changing
distribution channel and so on. The answer is clear:
Management must develop and manage information.
Three

developments

make

the

need

for

marketing

information grater now than at any time in the past; the


rise of global marketing the new emphasis on the buyers
wants and the trends non price competitions.
To manage a business well is to manage its future and
to manage the future is to manage information.
Important insight can be gained by studying the
experiences of other and assessing the adequacy of ones
own service features and performance.
Human nature encourages people to reflect positively
in the organization with which they work. Naturally
people want to validate their efforts frequently. The need
18

for Amul to undertake this exercise was to compare its


performance

with

the

competitors

to

evaluate

its

standard. This could provide for company with a jump on


its competitors, as the company can carefully evaluate
its opportunities and choose its target markets to
maximize profit.

19

SCOPE OF THE PROJECT


EXTENTS:By doing audit of retail outlet one can access the
potential of dealers. This is a powerful business tool
because it can be applied to virtually every function of the
company whether it is regarding the potential are
feedback.
Moreover, frontline manager can use it in many new and
creative ways.
Some applications include:
1. Strategic planning and good setting.
2. Marketing

performance

comparisons

and

evaluation.
3. Idea enrichment.
4. Problem solving.
5. Implementation.
BENEFITS:1. Gives exposure to new ideas.
2. Proper use of Advertisements and Sales Promotion
activities.
3. Information about the competitors price pattern.
4. Helpful to know about other dealers feedback
5. Record of new product introduction.
6. Show the present market share of the company.
20

7. Assesses the potential of dealers and whether it is


fully utilized or not.
8. Feedback on dealers satisfaction with regard to the
product range, availability, quality and consumer
pricing.
9. Communication channel from root level to the top
management.

LIMITATIONS
1. Dealers were not ready to divulge direct information
regarding their sales and turnover. They keep it as a trade
secret.
2. Getting information was a difficult task and limited to an
extent.
3. Sampling error is not taking into account.
4. While asking respondents to the rate a brand on specific
attributes, possibilities of Carryover effect and backfire
effect cannot be ruled out.
5. Some of the dealers refused cooperates
6. Possibilities of some dealers biased or dishonest
answers cannot be ruled out.

21

SALES PROMOTION
Sales

promotion

is

the

media

and

non-media

marketing effort applied for a predetermined, limited


period at the level of consumer or intermediaries in order
to
1. Increase Consumer demand.
2. Improve Product availability.
Sales promotion does have their drawbacks. They are
short lived.
3. Marketers may also find it difficult to limit the sales
promotion to a target market.
22

4. Another challenge with sales promotion is making


comparisons among the competitors activities because
sales promotion takes many different forms from a
trade show exhibit to banner flying behind on aero
plane to down warning people in the shopping mall.
5. A frequent concern about sales promotion is that
because many involve a short term price break, they
erode brand loyalty by encouraging customer to make
selection based on price. This vies as supported by a
drop in customer brand loyalty over last decade, just
when price related were assuming major role.
6. On the other hand sales promotion tends to garner
quick

result

in

most

cases

much

faster

than

advertising. And just as uniqueness of sales promotion


may fin difficult to being down for evolution, it can also
lead to enormous success imprinting the products name
in the customer mind. Entrepreneurs who are creative
by nature can make valuable use of sales promotion of
tight budget.

TYPES OF SALES PROMOTION


They are usually consumer oriented and trade oriented.

CONSUMER ORIENTED PROMOTION:They are those types of sales promotion in which the
consumer is targeted.
Techniques for consumer sales promotion:
23

Coupons

-Stimulate demand through

temporary price cuts.


-encourage retailer support.
Deals

- Stimulate demand through a


temporary price cuts.

Premiums

-Attract new customers.

-build goodwill.
Contest and sweepstakes

-Build awareness and sales

of product.
Samples

-Encourages product trials by the


risk to consumers.
-Especially useful for new, low
cost and frequently purchased
products.

Point of Purchase Displays

-Increase trials and sales by

drawing attention to the product


-Educate consumers about the
product.
-Especially

useful

for

convenience goods and pulse


purchase
Rebates

-Encourage sales through a price


cut.

24

TRADE ORIENTED PROMOTION

Sales promotion that are directed towards wholesalers and


retailers. In the market which is basically wholesalers and
retailers oriented such type sales promotion will be very
beneficial these are the follows.
ALLOWANCES:
1-A merchandise allowance to retailers for featuring
product predominantly.
2-A case allowance which is straight discount on case of
product ordered by retailers and wholesalers.
3-finance allowances which cover expenses related to
consumer promotion.
4-Slotting allowance is in exchange for adding a new
product to the retailer shelves. The nature, quality and
timings of allowances are often a matter to industry
practice.
5-Cooperative

Advertising

and

Sales

support

Marketers may also engage in cooperative advertising will


retailer & train distributors sales to sales the product more
effectively.

25

TRADE SHOW
Usually trade shows from a bridge between marketers
and customers. They bring customers and marketers in
the location over short period of time usually three to four
days.
According to trade shows bureau (t.s.b.) customer
attends these events for two reasons:
1-To update their knowledge in field.
2-To shop for the goods and services they need.

SALES
During the year, your federations sales increased by
18% from Rs. 1883.58 crore to Rs. 2219.23 crore,
including consignment sale of Rs 407.93 crore. Dairy
product turnover registered a robust growth of 20%. In
addition your federation coordinated Rs. 24.1 crore in
product sales to defenses service. This year amul butter
registered record sales with Rupee turnover growing by
15%. The sales value of amulya has registered impressive
growth with an increase of 12%. Sales of Amul milk in
Gujarat has increased by 21% in value terms. Amul cheese
sales value has increased by a spectacular 15% over the
26

previous year. Despite a decline in the milk powder market


due to adequate availability of liquid milk in most parts of
the country, we substantially increased sales by 18%, a
testimony to its quality.

ONLINE PROMOTION

Welcome to Amul's very own Ice Cream Shop on the


web!!
Stop a while and browse throught the many delicious
flavours we have here. Amul icecream Real Milk Real Ice
cream Made from fresh milk India's No.1 ice cream

NUT-O-MANIA - (Click to see!)


KAJU DRAKSH
KESAR PISTA ROYALE

ROASTED
ALMONDFRUIT

FRUIT BONANZA

BONANZA
NATURE'S TREAT - (Click to see!)
ALPHONSO MANGO FRESH LITCHI
SHAHI ANJIR
FRESH STRAWBERRY
27

BLACK CURRANT
SANTRA MANTRA

FRESH PINEAPPLE

UTSAV - (Click to see!)


ANJIR

ROASTED ALMOND

UTTERLY DELICIOUS - (Click to see!)


VANILLA
CHOCOLATE

STRAWBERRY
CHOCOCHIPS

CAKE MAGIC

ROYAL TREAT - (Click to see!)


BUTTERSCOTCH
MALAI KULFI

RAJBHOG

SUNDAES - (Click to see!)


MANGO
BLACKCURRANT

DOUBLE SUNDAE
SUNDAE MAGIC

ASSORTED TREATS - (Click to see!)


CHOCOBAR

FROSTIK

FROSTIK

TRICONE

DOLLIES

CHOCOCRUNCH

ICE CANDIES

MEGABITE

28

29

CYBER STORE

As a first step towards ECommerce in India, Amul is


delighted to offer you the cyber shopping experience with
a wide range of Amul dairy products in all major cities of
India.
You can order your favourite Amul Icecreams at the new
Amul Icecream Cyberstore.
The "Taste of India" is now a few clicks away from your
doorstep...
Note: Please "Select" the item you wish to order, then
enter the quantity (No. of Units required). The total price
for the item will be automatically calculated. Once you are
done, you can click on the "Calculate Total" button. Then,
enter the order information, and click on the "Place Order"
button. Detailed Terms and Conditions are given below (at
the end).
For Amul products in other countries, please check our
Exports Page. Amul products are available in US, Gulf
Countries and Singapore.
Applicable Prices

30

Sr No.

Select

Product

Amul Butter

Amul Butter

Delicious Table Margarine

Amul Lite Lowfat Breadspread

Amul Cheese

Amul Cheese Slices

Amul Cheese Slices

Amul Cheese Chiplets

Amul Cheese

10

Amul Cheese Spread

11

Amul Pizza Cheese

12

Amul Emmental Cheese

13

Amul Malai Paneer

14

Amul Malai Paneer

15

Amul Malai Paneer

16

Amul Pure Ghee

17

Amul Pure Ghee

18

Amul Pure Ghee

19

Amul Pure Ghee

20

Sagar Pure Ghee

21

Sagar Pure Ghee

22

Sagar Pure Ghee

23

Sagar Pure Ghee

24

Amul Shrikhand

25

Amul Shrikhand

26

Amul Shrikhand

27

Amul Shrikhand

28

Amul Shrikhand (Mango/Kesar/Badam Pista)

29

Amul Shrikhand

30

Amul Shrikhand
31

31

Amul Kool scoop Shrikhand

32

Amrakhand

33

Amrakhand

34

Amul Mithaee Gulabjamun

35

Amul Mithaee Gulabjamun

36

Nutramul

37

Amul Chocolates

38

Amul Chocolates

39

Amul Almondbar

40

Amul Chocolates - Bindaaz

41

Amul Chocolates - Fundoo

42

Amul Chocolates - Fundoo

43

Amul Chocozoo

44

Amul Chocozoo Tub

45

Amul Tazza Milk

46

Amul Shakti Toned Milk

47

Amul Gold Milk

48

Amul Lite Slim-n-Trim Milk

49

Mithaimate Sweetened Condensed Milk

50

Amulspray IMF

51

Amulspray IMF

52

Amulspray IMF

53

Amulspray IMF

54

Amulspray IMF

55

Amulspray IMF

56

Sagar Skimmed Milk Powder

57

Amulya Dairy Whitener

58

Amulya Dairy Whitener

59

Amulya Dairy Whitener

60

Amulya Dairy Whitener

61

Amul Shakti Health Food Drink (Kesa Almond)

62

Amul Shakti Health Food Drink (Kesa Almond)

63

Amul Kool Flavoured Milk


32

64

Amul Kool Flavoured Milk

65

Amul Kool Flavoured Milk

66

Amul Kool Caf

67

Amul Kool Caf

68

Amul Kool Caf

69

Amul Fresh Cream

70

Amul Fresh Cream

71

Amul Fresh Cream

72

Amul Fresh Cream

73

Amul Masti Spiced Butter milk

74

Amul Masti Spiced Butter milk

75

Amul Masti Spiced Butter milk

Total

RESEARCH METHODOLOGY
Research Design:Data Sources

Primary, Secondary

Research Approach -

Observation & Survey

Research Instrument

Sampling Unit

Whole universe

Contact Method

Questionnaire
Personnel

Data Collection Sources:The data collection has been completed by gathering


data from primary as well as secondary sources. The data
collected is very direct and secretive to the organization
(i.e. information about credit terms and annual turn over).
Lot of respondents do not divulge with such information,

33

so due to this facts secondary data will also have to be


considered and referred to:
A. Primary Data
Primary data collection was carried out by directly
interviewing to be owner or managerial level people in the
target outlets. The approaches or collection were.
a.

Survey:
Survey was carried out in the target outlets to
collect fast hand information while interviewing.

b. Observation:
While interviewing the respondent was observed
and all additional information was jotted down
which did not from part of the questionnaire.
B. Secondary Data
a) Internal: Internal sources include Company profile
and sales figures
b) External: 1. Government Publication
2. Journals, periodical and books
- Business Today-

Economics Times

Hindustan Times
- Times of India -Marketing Management by Philip
Kotler
3. Reports:

Annual reports of Amul Ice Cream.

DATA COLLECTION METHODS


Out of the various method of the data collection,
personal interview (face to face) is the best method as
there is a greater percentage of response from interviewer
34

side. The questionnaire was designed in such manner that


each and every relevant information, which was relevant
for the company and for my project, was present in it with
accuracy and completeness every step has been taken to
make the questionnaire in a simplest manner.
Following are the reasons for which personal interview was
selected.
1-Clear comprehensions of questions can be given to
respondent.
2-The

responses

can

be

simulated

through

greater

introspection, plumbing of memory.


3-Instructions can be on whets wanted and the manner of
responding.
4-After interviewing there were many questions, which can
be tested by examining the Ice Cream.
Field Work Planning;
The field works involves the following steps.
- Training and Education of the Investigator.
- Interviewing and collection of data.
- Supervision
Sampling:
Sampling refers to the procedure through which a few
units selected form the total population in accordance with
some specified procedure a

sample. The sample consists

of all those retailers who are selling ice cream it is amul or


other brands in the market.

35

In the process of sampling to things which are important


had considered.
1. Sample Type
2. Sample Size
1. Sample Type: It refers to the approach of the
sampling, which is followed to determine a sample of
individuals.
2. Sample Size: The sample included all thousand
dealers/ retailers that are selling ice cream whether
Amu8l Brand or other brands.
I was asked to survey the market share of Amul ice
cream in Noida and their comparative study

Limitation of Data:
1. Sample size is very small as compared to the
universe due to time and resources.
These might be some biases unwillingness of the
respondents, while given responses.

36

PRODUCTS RANGE
Today Amul is a symbol of many things of high
quality products sold at reasonable price of the genesis
of a vast co-operative network of the triumph of
indigenous technology of the marketing savvy of

farmers organization and of a proven model for daily


development AMUL means Priceless in Sanskrit. The
Brand name Amul from the Sanskrit Amoolya was
suggested by a quality control export in Anand.
Variants, all meaning Priceless are founded in several
Indian languages. Amul Butter, Amul Milk powder, Amul
Ghee, Amul Spray, Aul Cheese, Amul Chocolates, Amul
Shrikhand, Amul Ice cream, Neutramul, Amul milk and
Amulya have made Amul a leading food brand in India
(Turnover Rs. 19.7 billion in 1999-00) : 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 afarmer organization and of proven
model for daily development.

List of Products Marketed:


Breadspreads:
37

Amul Butter

Amul Lite Low Fat Breadspread

Amul Cooking Butter

Cheese Range:

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)

Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio,


Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Avsar Ladoos

UHT Milk Range:

Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Gold 4.5% fat Milk

Amul Lite Slim-n-Trim Milk 0% fat milk

Amul Shakti Toned Milk

Amul Fresh Cream

Amul Snowcap Softy Mix


38

Pure Ghee:

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 ( 6 months above)

Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardised Milk 4.5% fat

Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Skimmed Milk 0% fat

Amul Cow Milk

39

Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert)

Amul Masti Dahi (fresh curd)

Amul Masti Spiced Butter Milk

Amul Lassee

Amul Icecreams:

Royal Treat Range (Butterscotch, Rajbhog, Malai


Kulfi)

Nut-o-Mania

Range

(Kaju

Draksh,

Kesar

Pista

Royale, Fruit Bonanza, Roasted Almond)

Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi


Anjir, Fresh Strawberry, Black Currant, Santra Mantra,
Fresh Pineapple)

Sundae Range (Mango, Black Currant, Sundae


Magic, Double Sundae)

Assorted

Treat

(Chocobar, Dollies, Frostik, Ice

Candies, Tricone, Chococrunch, Megabite, Cassatta)

Utterly Delicious (Vanila, Strawberry, Chocolate,


Chocochips, Cake Magic)

Chocolate & Confectionery:

40

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

Amul

Kool

Flavoured

Milk

(Mango,

Strawberry,

Saffron, Cardamom, Rose, Chocolate)

Amul Kool Cafe

Health Beverage:

Amul Shakti White Milk Food

DISTRIBUTION CHANNELS:

Channels of distribution are the means by which


marketers get their products to the target market so
that they will convenient to buy. Channels of distribution
perform all the activities required to link producer with
users of products. Intermediaries are separate business
that specializes carrying out many of the distribution
function. This function may be of three types:
41

Transactional, logistical, and facilitating.


Distribution Channels may be organized in a few
basic ways. Channels for consumer goods include direct
channels (direct marketing) in which products move
directly from producer to end user & others. Other
channels include those in which goods move from
producer to retailer to consumer, and from producer to
wholesaler to retailer to consumer. (This is the most
common). Finally goods may pass from producer to
Agents

to

wholesalers

to

retailers

to

consumers.

Distribution channels for the service and industrial


goods. Marketers may decide

that variation on the

standard types of distribution are better suited to their


products and markets or even reverse channels to best
service their markets. Distribution channel may be
organized vertically or horizontally. A vertical market
system (VMS) is centrally managed and designed to
achieve efficiency with a maximum marketing impact.
Franchising another means by which the producers
sales directly to the consumers.

Managing the distribution channels is to a products


success. Marketer should select the channels based on
the

characteristics

of

the

target

market,

the

organizations marketing objectives, the nature of the


product itself, the intermediaries and the marketing
42

environment. The channel must be efficient and provide


the level of the coverage desired by the product change
in the market environment-Such as regulation and
economic

climate

are

also

key

factors.

Conflicts

between channels members may be arise over such


issues as location of profit and decision making.
Channel member should remember that they depend
on one another for success. Cooperation often depends
on the establishment of a channel captain (Producers,
Wholesalers,

and

Retailers)

who

will

manage

distribution. Channel strategys particularly complex for

global markets, who must contained with such issues


as

the

possible

need

for

different

types

of

intermediaries, longer transportation distances, culture


differences influencing the behavior of intermediaries
and inferior infrastructure.

We live in the global economy, where the pace of


change is unbelievable and the demand of customer are
more difficult to meet.
Todays customers are not satisfied with quality
products

only.

They

demand

quality

service

and

increasing values. Distribution is the management of


the inventory to achieve customer satisfaction. It is not
surprising, therefore, to find distribution in the limelight.
Today many companies are discovering that distribution
43

is not a necessary evil but rather the major frontier for


both

customer

reduction,

service

unfortunately,

enhancement
in

many

and

companies

cost
the

distribution profession is not prepared to meet the


demanding needs of the customer, the pace of change
or the true integration of distribution function. Todays
distribution manager often has a strong practical
background in only one area of distribution, typically he
or she does not have a formal education in distribution
and does not have the breathe of experience to handle
the breathe of the profession of distribution.
The challenge confronting many companies therefore
in this they desire to enhance customer satisfaction by
improving distribution, but lacks the knowledge work
force to make this happen. The purpose of this book is
to

deal

with

challenge,

to

deal

with

increased

sophistication of distribution, to present the state art of


distribution and define the profession of distribution. It
is the indicator goal that improvement in distribution
performance that will result from applying the material
in this handbook will further devote and promote the
awareness of the promotion of distribution.
The organization of the handbook mirrors of the
editors goal and there definition of distribution. The
goal is to elevate the level of experience in distribution
management there definition of distribution.

TODAYS DISTRIBUTION CHALLENGE


44

The challenge of enhancing customer satisfaction by


improving the distribution requires the fully integrated
approach to distribution. In many companies todays,
the function is done in the segregated manner. The
order entry manager, workhouse manager, traffic

manager, data processing, claims manager etc. all


operate independently. All of distribution must work as
one, with each person involves with distribution having
much

greater

awareness

of

how

the

totality

of

distribution function.
Given todays operation of requirements this is not an
easy task. The operation of requirements having the
greatest impact on integrated distribution ability to
enhance

customer

satisfaction

is

business

requirements, customer requirements and distribution


requirements. The business requirements reflect the
changing

climate

within

which

distribution

must

function. Business issues such as the global market


place, the level of the government involvement the
environment

and

the

issue

of

energy

must

be

understood as the context within which distribution


function. At the same time the customer requirements
of increased pace, variety and adaptability, while
reducing costs must be understood as a basis for
customer satisfaction. Of course the issues impact the
internal pressures of the distribution requirements to
centralize, utilize third parties, improve information
45

systems, increase productivity and more fully utilize


people. An overview of these distribution channels is
presented in figure.

46

DISTRIBUTION

NETWORK

OF

AMUL

Your federations distribution has been strengthened


with addition of 1007 more whole sale dealers, during
the year. GCMMFS total no. of wholesale dealers now
stands at 3700 extending our to reach to more than five
lack retailers. These statistics, impressive as they are,
do not tell the most important part of the story: The
staunch support, brand loyalty and commitment of our
wholesale dealers and retailers, that makes it possible,
four our products to reach consumers in the remotest
part of our country.

Factory (Ghandhi Nagar, Gujrat)

Zone

47

Branch Office

Distributor

Dealer

Sub Dealer

Amul Icecream does not have any C& F agent


network. It has own branches in India. India is divided
into four zones viz. North, East, south and west. The
best zone is divided into five stock point catering of
their respective branches. The dispatch would be made
to either the five stock points depending on the location
of end point stock point in turn served their respective
city and allotted areas.

48

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

No.

of

Producer 2.41 million

Members:
No.

of

Village 11,615

Societies:
Total Milk handling 7.4 million litres per day
capacity:
Milk collection (Total 2.08 billion litres
- 2004-05):
Milk collection (Daily 5.71 million litres
Average 2004-05):
Milk

Drying 511 metric Tons per day

Capacity:
Cattlefeed

2340 Mts per day

manufacturing
Capacity:
49

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

Rs (million) US $ (in million)


11140
13790
15540
18840
22192
22185
22588
23365
27457
28941
29225

355
400
450
455
493
493
500
500
575
616
672

EXPORT SCENERIO

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 9 years.
The major export products are:

Consumer Packs

Amul Pure Ghee

Amul Butter

Amul Shrikhand

Amul Mithaee Gulabjamun


50

Nutramul Brown Beverage

Amulspray Infant Milk Food

Amul Cheese

Amul Malai Paneer

Amul UHT Milk (Long Life)

Amul Fresh Cream

Bulk Packs

Amul Skimmed Milk Powder

Amul Full Cream Milk Powder

Many of our products are now available in the USA, Gulf


Countries and Singapore.

51

INFO FLASH:
GCMMF Sales up 20%
The Amul moppets got a taste of India. A fun new place
where there are milks a plenty and no butter storage in
summer. When private dairying is the part of the game
and computers the whole process of brand of big
transactional as well as punks from the small scale sector
and satellite TV, which compresses the whole process of
brand building and makes for a regular flood of new foods
brands. And so along with the rest of the gang safal,
sugam, dhara Amuls gone in to maximum over drive
,Seems there is just no stopping them now , as they
launch product after disparate product. No more being
reactive. Says V.M. Vyas, Managing Director of GCMMF.
Were going to be proactive now. The last financial year
saw GCMMF launch ten new products including paneer,
gulab jamun and mozzarella under the umbressa and
ketchup jam and a mango drink under the safal brand. It is
determined to keep up the pace this year, with the launch
of Dahi, emmental cheese and most recently a soya base
dal.
The Amul range of dairy products till dominant
GCMMF

increasingly

diverse

portfolio,

but

chairman

vreghese kurein is determined to leverage its skills for


marketing all kinds of farm produce. Honey and isabgol
were taken up for consideration in the past but letter
dropped because they were not expected to yield the
requisite

volumes.

Tea

and

coffee

are

still

under
52

consideration but and conceptual stage. One product that


made it to the market in sugam shakti developed by
National Dairy Development Board (NDDB) with the noble
objective of providing higher nutrition at lower costs. It is
amix of soya and wheat flour that is meant to substitute
the traditional dal. But foods habits do not change easy
and the federation moving cautiously on the new product,
test marketing it extensively in a few selected cities like
Indore.
The possibilities in agricultural marketing are limit
less but in GCMMF moving too far a field of its core
competencies here.Vyas refuses to be hemmed in by any
sort of marketing myopia. We market taste and nutrition;
he declared why not we should sell dal or tea.
Gujrats Cooperative milk products unions, for the
movement donts seem to mind to mind their federations
farays in to un related fields growth in milk procurement
has over aged ten percent over the past five years and
GCMMF kept pace with a value added growth of 18%. But
the milk just keeps coming in order to cope Gujrats Milk
unions are now investing Rs.260 crore in creating. Added
capacity for milk powder which is stored for use in down
stream products
The days of shortages are over and for GCMMF
whose raison deter is marketing all the milk produced by
its unions. It is bound to pose a challenge in the coming
years. Todays amul liquid milk sold in Gujrat and
Maharashtra contributes roughly Rs 400 crore to GCMMF
annual turn over of Rs. 1800 crore, while mature

53

products like amul butter, ghee and milk powder


together contribute Rs. 900 crore non dairy products like
dhara oil contribute another Rs. 400 crore Amul Ice cream
which is another product with the potential to generate
volumes is yet to reach a three figure turnover and when it
does, it is likely to be through production tie-ups with dairy
cooperative in other part of the country. As for the high
profile cheese category. Vyas says, The market is not as
big as people think. It is worth around Rs. 50 crore of
which we control 60%.
In its proactive model, GCMMF is now taking Amul in
to Product hither to considered the reserve of small scale
industry where branding has been minimal. Paneer and
gulab jamun initially test marketed in Gujrat under the
Sugam brand name and have now been launched
nationally under the Amul GCMMF is watching it closely for
future potential.
Says Vyas, Brand building is a faster process
todays, thanks to dispersed media option. I can move
from local to National launch very quickly. Of course, the
logistics of the dairy industry usually mean that products
like dahi and ice cream need to be made and distributed
locally. Explains group products manager Kishore Jhala,
Distribution is the crux of this business and bad
management here can be disastrous. Brtannia recently
had to call back huge quantity of spoilt cheese spread
because retailer thought the glass bottles din need
refrigeration. We had a similar problem with amul life.
With

barrel

cold

chains

for

products

requiring

deferent degrees of refrigeration in placed distribution is


one of the Amuls big strength todays. As is it varied
54

basked of old & new products, always ready to cross


subsidiaries to each other in the price wars it is famed for
and after twenty five years in the business, it is ready to
plan up on being a home growth brand, once eschewed
as to risky in a market that favored brands. Our Taste of
India campaign is not some sort swadeshi We India, Buy
Indian. Message stresses Vyas, But since none of our
competitors can convincingly make such a claims, we
though we would make it our USP.

Bridge the Digital Divide - Innovation at the


Grass Roots
One of the members of GCMMF, the Banas dairy, has
started a unique initiative called the Internet Sewa Project
in their district called Banaskantha. This is a village-level
55

effort

at

bridging

the

Digital

Divide

by

providing

information kiosks at the Village Cooperative level. Each


village has one information kiosk, which is the single point
of contact for Internet and other e-governance activities
for the co-op. Official forms, educational applications and
local market prices are provided at the information kiosk
so that people do not have to travel all the way to the
district

headquarters

for

this

information.

Go

to

http://www.banas.chiraag.com to see an actual site. To


address poor connectivity at some sites, the Banas dairy
uses a wireless connection to the Internet. The wireless
equipment is cheap since there is only a one-time setup
charge and no recurring charges. To improve the farmer
members' living standards and to facilitate affordable
Internet access services, the district union has also
become a local Internet Service Provider (ISP) using these
Village

Information

Kiosks.

Today

the

services

are

subsidised but the goal is for the kiosks to become selfsupporting.

56

MANAGEMENT AT AMUL

Management Kurien Style: MV Kamath

Four

decades

president

of

ago,

India,

the
Dr

then

Rajendra

Prasad, laid the foundation stone of


a modern dairy, the dairy of the
Kaira

District

Cooperative

Milk

Producer's Union. The inspiration for


the

dairy,

which

came

into

existence after a struggle against


great odds, was provided by Sardar Vallabhbhai Patel and
Morarji Desai. Tribhuvandas Patel, with his dedication and
integrity, was the power behind the farmer's organisation.
Varghese Kurien, then hardly 33, gave the professional
management

skills

and

necessary

thrust

to

the

cooperative. Over the years the cooperative prospered.


Later, Prime Minister Lal Bahadur Shastri was to give
further impetus to the dairy cooperatives by inviting Dr
Kurien to replicate what came to be known as the Anand
Pattern, after the township of Anand, in Gujarat.
The fascinating saga of the success of first AMUL and then
Operation Flood, which was to make India a major milk
57

producing country, has been told by M.V. Kamath in all its


complexity. It is an exciting piece of work and a story that
has never been told before, rich in anecdotes and
revelations of how India's White Revolution became
possible.
M.V. KAMATH, 73, a senior columnist and commentator on
a whole range of national and international issues is an
author of over 35 books on diverse subjects such as
journalism, travel, history and culture, biography, politics
and philosophy. Starting his career in journalism, after a
brief stint as a chemist, Kamath has successively worked
as a reporter in the Free Press Journal, editor of Free Press
Bulletin and Bharat Jyoti, Contributing Editor United Asia
and Sunday Editor of The Times of India.
A former president of the Bombay Union of Journalists,
Kamath

is

founder-member

of

the

Foreign

Correspondents Association, Washington DC and has


covered every important international gathering between
1953 and 1978. He retired in 1981 as editor of The
Illustrated Weekly of India and currently writes for over a
dozen newspapers and journals. He is actively connected
with a number of social

and public institutions in Bombay and Karnataka and was


recently nominated as member of the Executive Board of
the Manipal Academy of Higher Education.
The fascinating saga of the success of first AMUL and then
Operation Flood, which was to make India a major milk
58

producing country, has been told by M.V. Kamath in all its


complexity. It is an exciting piece of work and a story that
has never been told before, rich in anecdotes and
revelations of how India's White Revolution became
possible.

The Unfinished Dream: V Kurien


"I consider Verghese Kurien to be
one of the world's great agricultural
leaders

of

this

century.

This

collection of his speeches, so aptly


entitled An Unfinished Dream, can
help to light the way for those who
must carry on the battle to ensure
greater food security, prosperity,
and peace to the world. I am
honoured to commend this book to
those future hunger fighters..."
Norman

Borlaug

1970 Nobel Peace Prize Laureate


Dr. Verghese Kurien is the Chairman of India's National
Dairy Development Board, the National Cooperative Dairy
59

Federation of India and the Gujarat Cooperative Milk


Marketing Federation. His professional life has been
dedicated to empowering the Indian farmer through
cooperatives. The architect of India's White Revolution,
"Operation Flood", his work has been recognised by the
award of a Padma Bhushan, the Ramon Magsaysay Prize
for Community Leadership, the Carnegie-Wateler World
Peace Prize, and the World Food Prize.
"We must build on the resources represented by our
young professionals and by our nation's farmers. Without
their

involvement,

we

cannot

succeed.

With

their

involvement, we cannot fail...


Those of us who are of our country's urban elite often fail
to recognise the tremendous resource that our nation's
farmers represent. It is that resource, linked

with the professional manager, that can return India to its


position as a surplus producer...
True

development

involves

building

the

institutional

capacity to respond to new and diverse challenges; to


adapt, to innovate and to create newer institutional
forms ..."
Verghese Kurien
This book is the story of the pursuit of a dream. A dream in
which regardless of origin, place of birth, occupation, or of
language, each Indian has an equal opportunity to share in

60

the nation's blessings, and to contribute to the nation's


progress.
Spanning nearly 40 years from 1955 to 1994, An
Unfinished Dream contains speeches of Dr Verghese
Kurien, Chairman of National Dairy Development Board.
The speeches are rich in their arguments, incisive in their
views and contain anecdotes that illuminate, inspire and
sometimes amuse. They rise above the din of ideology
and partisan rhetoric to provide clear and refreshing
insights on varied subjects - Development, Technology,
Operation Flood, Marketing, and Empowerment of India's
Rural Producers.
An Unfinished Dream has three sections:
A Dream, Defending the Dream, and A Dream Renewed.
Each section, while joined by a theme, draws on the past
and looks towards the future.

61

MARKETING AMUL ICE CREAM : GUJRAT


TALKS A PACE WITH STATE CO-OPS:
The Gujarat cooperative milk marketing federation if
in

advance

federation

stage
in

of

other

negotiation

states

for

with

cooperative

manufacturing

and

marketing its Amul brand of Amul ice cream all across the
country.
The Rs. 1380 crore co-operative dairy giant is
seeking to workout arrangements with other state cooperative, where by the letters would manufacture

ice

cream under license in their under its Amul brand name.


The GCMMF Director Mr. B. M. Vyas, said, We are in
task with almost all state federation for establishing a
nation wide decentralized ice cream manufacturing base.
Our idea is to launch Amul ice cram in most states during
the coming summer season itself.
According

to

Mr.

Vyas,

setting

up

ice

cream

manufacturing facilities in the co-operative existing dairies


would involves making an additional investment hardly
10% in value terms, which is a fraction of the cost of a
green field venture. This is because critical dairy plant
already

posses

the

necessary

equipment

such

as

pasteurizers, high speed centrifuges, cold storage tanks


and refrigerator.
The only fresh investment required are in freezers
and down stream cold came facilities (Transportation Vans,
cold storage facilities at the retail level etc.) but the most
crucial link in the entire manufacturing process is a liquid
availability of the raw material namely liquid milk, and
here co-operative dairy network holds a tremendous
62

advantage, with the

180 districts union affiliated to the

different state federation procuring on an average 110


lacks of milk per day. Ice cream is mare expansion of the
co-operative

existing

products

range,

which

include

butter, milk powder, baby food and cheese, it is something


that day would have been producing earlier, but for its
being till recently reserve for the small scale sectors.
The assistance manager (marketing) of GCMMF Mr.
R.S. Sodhi observed, the GCMMFs presence in the
countries Rs. 325 crore

branded ice cream market is

currently restricted only the western region, where Amul


has captured over 30% 0f sales with in a year of its being
introduce in Gujarat during March 1996. While Amul is now
selling 12000 liters per day out of the total estimated ice
cream sales of 24000 LPD in Gujarat, it is said to have
already grabbed nearly a quarter

of the 36000 LPD

Mumbai market ever since it was launch there in January


this year.
We are targeting 40000 LPD sales for the western
region by the end of this season. Mr. Sodhi said, he
denied that there would be Stock out problem arising
from the fact that there might be precious little
liquid milk left for manufacturing ice cream, after the
requirement for fluid.
Milk, butter, baby food and cheese sales were mat,
To produce a little of ice cream, one needs only half a liter
of milk. Our requirement would, therefore be around
20000 LPD, which is barely 0.5% of our total dairy liquid
milk

procurement.

We

added

the

average

milk

procurement by the GCMMF union is expected to touch 38


63

lacks LPD this fiscal, a 26% increase over the 1995-96


average of 29.80 lacks LPD of the 38 lacks LPD, about
17lacks LPD is being marketed as
fluid milk, with the rest going for manufacture of baby
food, butter, dairy whitener, ghee and now ice cream. The
problems in expanding the Amul presence in the ice cream
segment beyond its so called western, Pocket borough
do not lie in raw material availability as much in logistics.
Marketing the products within the western region is not a
problem, since the procurements as well as production
aspect can be handling within Gujarat. But if the ice cream
produce at Anand is to be hauled at sub zero temperature
all the way to Delhi, the transport cost would amount to an
exorbitant Rs. 10 per liter compare to the average exfactory price of 55.60 for a liter of Amul ice cream.

SWOT ANALYSIS
STRENGTHS:
1. Self- sufficiency in case of major inputs i.e. milk.
2. Corporate image
3. Diversified product line and all products are highly
demanded.
64

4. Dedicated work force.


5. Totally integrated operation.
6. Good for sightedness and long term vision.
7. High degree experience in case of milk procurement
and processing as company is in the field from
nearly free decades.
8. Low capital cost.
9. Large network of distribution.
10.

Prices are comparatively.

WEAKNESS:
1. Supply is not regular.
2. Distribution network of Amul ice cream is not
proper.
3. Co-ordination is not proper between retailer and
company.

OPPORTUNITIES:
1. With the liberalization new avenues of exploiting
open market economies are being open up.
2. Being the oldest co-operative it should encase the
goodwill.
3. Must take the advantage of the priority give to the
dairy industries by the Govt. in terms of loans,
subsidiaries to explored new opportunities that are
in the market.

THREATS:
65

1. With the globalization and liberalization various


global brands are started to peek in.
2. Competition

from

other

co-operative

and

local

industries present in the market.

AVAILABILITY VS BRAND NAME:


KWALITY85%
AMUL-80%
VADILAL-60%
DAIRY FUNN-55%

66

RESPONSE

FROM

DISTRIBUTOR

VS

BRAND NAME

KWALITY-85%
AMUL-75%
VADILAL-55%
DAIRY FUNN-60%

67

REPLACEMENT TERM VS BRAND NAME

KWALITY-66%
AMUL-61%
VADILAL-70%
68

DAIRY FUNN-55%

BRANDS VS LIKING

KWAL
ITY-84%
69

AMUL-75%
VADILAL-65%
DAIRY FUNN-50%

70

MARGINE VS BRAND NAME


KWALITY75%
AMUL-55%
VADILAL65%
DAIRYFUNN-60%

71

NUMBER OF PEOPLE WHO LIKE THE


ADVERTISING OF DIFFERENT BRANDS
KWALITY-40%
AMUL-40%
VADILAL-15%
DAIRY
FUNN-10%

72

DIFFERENT PROBLEM ON OUTLET

R
EFRIGERATION-5%
COST HIGH-10%
LACK

OF

PRODUCT-35%
N
O PROBLEM-50%

73

QUALITY OF BRAND STORE VS BRAND


NAME

KWALITY
85%
AMUL 85%
VADILAL 65%
74

DAIRY FUNN
60%

FINDINGS

Finding of the project are based on the information


obtained from the questionnaire and secondary sources.
75

Outcome regardind has been arrived upon the basis of


adjustments made in the analysis. This chapter is divided
in to various parts highlighted the outcome questions
asked in the questionnaire.
1.

Amul ice-cream distribution pattern is good as


compared to other

2.

companies.

amul publicity material is available only on


amuls outlets, even in some cases they do not habit in
requisite amounts

3.

Amul publicity needs to be improved. Publicity


through print media is quite good, but hoardings, glow
signs, wall painting, etc are need to boost sales.

4.

Amul credit period is better than some of its


competitors which is beneficial for dealers.

5.

Schemes and margins play an important role in


deciding that on which particular brand product, the
seller would

emphasize

to

influence the buyers

decision.
Although amul ice-cream schemes and margins are
ruled as average but the benefits are reaped mainly by
wholesalers and distributors leaving the retailers at the
lower end of distribution chain unsatisfied.

76

RECOMMENDATIONS
The survey work releaved that the outlet holder are
never satisfied you give the more they want.
1. Margins play a very important role in pushing the
product to the end customer as the retailer takes the
interest in those product in which he gets a better
margin. So the company while setting their prices of the
icecream should set such margins for the retailers which
can motivate him to push their product to the end
consumers.
2. to stop the supply of the duplicate brand, the
company should initiate a system of recollecting their
containers from the market just like bottles of the cold
drinks. To make this effective , the company should fix
some amount which one gets when you return the
container to retailer and in turn , retailer commission
should also be fixed when he returns them to the
company.
3. Circulars from the company are not issued in proper
time regarding the different schemes floated in the
market. For e.g. my distributor had not received any
circular regarding Fro stick scheme, one peace extra
with every pack.
4. As far as the goodwill of the distributor concerned,
the response of the retailer satisfaction. But it could be
77

further improved. I suggest the enthusiastic force of


sales man that they are lacking.
5. One of the basic problem faced by the retailers that is
the rate printed on the rate list are different from the
printed

on

the

product.

These

create

felling

unsatisfaction and customer feel betrayed.


6. As market is basically retailer oriented, I suggest
company

should

start

annual

or

bi-annual

target

schemes for retailers. The retailer margin should be


improved so as to motivate him.
7. Packaging Chock bar was earlier done in cartoon
package that is preferred to the present packaging. The
new packaging has resulting in damages. So I suggest
cartoon packaging for chock bar and for stale.
8. The retailer should made aware and should be guided
by the company for the stock management.
9. The publicity in the local level should be increased by
means of shutter painting, wall painting, glow signs,
hoardings especially in Dadri and Surajpur.
10.

The glow signs should not be provided free of

cost by the company, but they should be installed by the


company itself as and when directed by the dealers.

78

11.

The company must insure that the product

literature is reaching the retailers in sufficient amount


and made available to the customer.
12.

Company can increase its sales by collecting

the references from the consumers, i.e., by having the


feedback and then send the product by direct approach.
13.

New dealers should be appointed in the areas

like Surajpur to strengthen the distribution network of the


company.
14.

The advertisement in the local newspapers

should include the name and address of the dealers shop


respective cities.

BIBLIOGRAPHY

1. Internet

2. Marketing Management

www. Amul.com
Philip Kotler

79

3. Distribution Management

James

Tompkins
4. The Hindustan Times (News Paper)

CONCLUSION
1. Amul is successfully moving towards a great
height. Amul is very popular brand among
consumers in and around Noida; my survey
project confirmed the popularity of Amul icecream
.

80

2. According to my survey, Amul enjoys most


popularity between the age group of 6-30.
3. Of all the population, Amul was not popular
among students than other profession. Of all
profession 28.75% students preferred Amul.
4. Amul is no more a Ice cream for not but it has
become a necessity for the Indians, like either
in

winter

or

summer.

The

schemes

and

discounts are availed on this pack time to time


by campaigns, lucky draws, home delivery, etc.
5. Though being a leader, it is sufficient for Amul
ice cream to mark up its profit and sales in the
market.

QUESTIONNAIRE
1. Name of the City(Town) : _________________________________
81

2.

Name of the Retailer : ____________________________________

3.

Address : _____________________________________________

4.

Total distance (in Kms) from City : __________________________

5.

Total population of the Town : _____________________________

6.

What all are the other brands available in your outlet ?

1) Kwality

2) Vadilal

3) Mother Dairy

4) Amul

7. Is Amul Ice cream available in your outlet ?


1) Yes

2) No

8. Are you interested in Amul Ice cream ?


1) Yes

2) No

9. What is the total sale of Amul in your outlet (per annum) ?


Approximate_____________
10. What is the total sale of other brands in your outlet (per annum)
?
1) Below 2000
2) 2000 5000
3) 5000 8000
4) any other _______________
11. Do you have proper stock of Amul Icecream ?
1) Yes

2) No

12. Are you satisfied with the supply of the Amul Ice cream ?
1) Yes

2) No
82

13. Are you satisfied with the sales of Amul Ice cream ?
1) Yes

2) No

14. If not then why ?


# Quality is not good
# Poor Packaging
# Refrigeration Problem
# Cost is high
# Amul distribution is not good
15. Which brands of the ice cream has high demand in your outlet ?
1) Amul

2) Kwality

3) Vadilal

4) Mothers dairy

16. What is the reason of the high demand of any brand (Amul) ?
# Price is low
# Attractive packaging
# Quality is good
# High margin
# T.V. Advertisements
17.

How important are the following to you , please rank them

accordingly( 1 to 5 ) ?
# Margin
# Availability
# Replacement
# Response from distributors
# Good Quality

83

84

You might also like