Professional Documents
Culture Documents
ON
A STUDY ON AMUL PREFERRED OUTLETS
IN DWARKA (NEW DELHI) SOCIETIES
I further declare that this project report has not been submitted to any other
university or institute for the award of any Degree or Diploma.
Manoranjan Sahu
TABLE OF CONTENTS
PAGE
S. NO. TOPIC
NO.
1 Acknowledgement
2 Executive Summary
3 CHAPTER 1 - Introduction 1
10 Bibliography 37
ACKNOWLEDGEMENT
The contributions made by various people have been very crucial and insightful
for the successful completion of my project. With a deep sense of obligation, I
take this opportunity to express my gratitude towards my external mentor
Mr. Ashutosh Garg (Retail Officer in Charge – AMUL (GCMMF LTD.)) for
providing me the minute details that was very crucial for understanding my topic
in detail. His unselfish sharing of information and suggestions for improvement
has been a constant source of motivation to complete my project.
With a deep sense of obligation and gratitude, I also thank my internal mentor
and my faculty guide Ms. Barkha Narang, faculty JIMS, Kalkaji for her
unending inspiration. I am extremely grateful to her for her brilliant guidance
and all out support that has provided the solid foundation, which helped the
report to evolve to its present form.
Last but not the least, a tribute to all the respondents under study for their
sincere participation and whole hearted co-operation despite their busy
schedule.
Manoranjan Sahu
27/PGDMA/KJ/2016
EXECUTIVE SUMMARY
A need has been felt to study how to increase the presence of APOs in Dwarka
(Sout-west Delhi) Societies, what plus point other brand’s outlet have over
AMUL Outlets and majorly to find out potential societies to setup new APOs.
The project also focuses on analysis of competitors’ (Mother Dairy) booths and
gen stores available in socities of Dwarka.
This report demonstrates information about the positive leads (socities) which
is collected by visitng there, interviewing concerned persons and by analysing
the location/surrouding of the societies. Also the report tries to identify areas of
improvement and provide suggestions and recommendations for the same.
With the help of this report a target based follow up plan could be developed
which could be followed by sales team.
CHAPTER 1 – INTRODUCTION
An insight into the purchasing patterns of Indian households reveals that the
bulk of the family income is spent on food products with a significant share of
milk and milk products.
Amul Preferred Outlets are exclusive Amul Outlets which stores and sells
entire range of Amul products. Amul boasts of marketing more than 40 products
with a range exceeding 400 SKus in Pouch Milk, Dairy Products and Ice-cream
categories. The outlets are spread over 100 to 300 Sq. Ft. in markets, premier
educational institutes, hospitals, railway stations, bus stations, Municipal
Corporation gardens etc. where there are high footfalls.
The franchisee will have a prebuilt shop / space in a good location either owned
or rented. The franchisee is expected to bear the entire cost (viz. interiors and
equipment, excluding property cost) of setting up the store which is expected
to be in the range of Rs. 1.50 lacs to Rs. 6.00 lacs depending upon the format.
Amul wholesale dealers supply stocks at the outlet and the franchisee avails
retail margin. Retail margins varies from product to product. Franchisee does
not pay any royalty or share any revenue with Amul.
1
S.No. Type of the Prebuilt Investment by the Avg. Returns on
format Shop franchisee MRP
Req. (In
sq.ft.)
2
Indian dairy cooperative, Amul is looking at fast expansion of its outlets and
parlours. Known countrywide with its popular slogan ‘The Taste of India’, it has
planned to open 10,000 Amul Preferred Outlets and one thousand Amul
Icecream Parlours in the near future. At present, Amul has 7200 outlets and
800 parlours. The expansion will be based on franchise mode.
3
CHAPTER 2 – COMPANY PROFILE
4
Category. In 2002 GCMMF bagged India's Most Respected Company
Award instituted by Business World. In 2003, it was awarded the IMC
Ramakrishna Bajaj National Quality Award and certificate of merit for
adopting noteworthy quality management practices for logistics and
procurement. GCMMF is the first and only Indian organization to win
topmost International Dairy Federation Marketing Award for probiotic ice
cream launch in 2007. For the innovations, GCMMF has received AIMA-RK
Swamy High Performance brand award 2013 and CNN-IBN Innovating for
better tomorrow award in 2014. World Dairy Innovation Awards - 2014 for
Best Marketing Campaign - "Eat Milk with Every Meal". For the tree
plantation activity GCMMF has received seven consecutive Good Green
Governance award from Srishti during 2007 to 2013.
The Amul brand is not only a product, but also a movement. It is in one way,
the representation of the economic freedom of farmers. It has given farmers the
courage to dream. To hope. To live.
GCMMF - An Overview
5
Member Unions
1. Kaira District Cooperative Milk Producers' Union Ltd., Anand
2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar
4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur
5. Surat District Cooperative Milk Producers' Union Ltd., Surat
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara
7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch.
10. Ahmedabad District Cooperative Milk Producers' Union Ltd. Ahmedabad
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers ‘Union Ltd., Gandhinagar
13. Surendranagar District Cooperative Milk Producers' Union Ltd.,
Surendranagar
14. Amreli District Cooperative Milk Producers Union Ltd., Amreli
15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar
16. Kutch District Cooperative Milk Producers' Union Ltd., Anjar
17. Junagadh District Cooperative Milk Producers' Union Limited, Junagadh
18. Porbandar District Cooperative Milk Producers’ Union Ltd, Porbandar
6
ABOUT AMUL
One of the first Indian brands to have won over the hearts of the common
people of the country is Amul, an Indian dairy cooperative. The journey of the
brand from its humble beginnings in Anand, Gujarat to becoming one of the
world’s largest dairy company is nothing short of remarkable and involves the
common man of India.
1. Beginnings
The idea of a dairy cooperative emerged in 1946 in a small town, Anand, in
Gujarat as a protest against the exploitative trade practices followed by the
local cartel by the local farmers. Under the guidance of leaders such as
Sardar Patel, Morarji Desai and Tribhuvandas Patel, the farmers of the area
formed the Kaira District Co-operative Milk Producers Union Ltd with just two
village dairy co-operative societies and 247 litres of milk. It acquired the
name of Amul and is managed by a cooperative society, the Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF). Dr Verghese Kurien,
founder chairman of the GCMMF for more than 30 years and called the
‘Milkman of India’ is credited with the success of Amul.
2. White Revolution
Amul spurred India’s White Revolution. India was a milk-deficient country but
after the launch of Operation Flood in 1970, a project under the National
Dairy Development Board (itself formed to replicate the model of Amul
7
throughout the country), India raised its milk production from 17 million tons
in 1950-51 to 88 million tons in 2002-03.
3. Model
Amul developed a highly successful three-tiered model which eliminated
middlemen and linked the producers with the consumers directly. The model
comprises the dairy cooperative societies at the village level federated under
a milk union at the district level and a federation of member unions at the
state level. The milk is
collected at village dairy
society, is procured and
processed at the District Milk
Union and the products
marketing at the state milk
federation, finally consumed
by the consumer. This system
runs professionally,
connecting the producer and
the consumer directly and
giving the producers control
over their products. According
to the Amul, more than 15
million milk producers pour
their milk in 144500 dairy
cooperative societies across
the country. Their milk is
processed in 184 District Co-
operative Unions and
marketed by 22 State
Marketing Federations.
8
4. Brand Amul
“Amul” is the acronym of Anand Milk Union Limited. Amul is valued at more
than $3.2 billion but more than these figures, of more importance is the
transformation it has brought up to the lives of the Indian people, especially
the farmers living in rural areas. With over 3 million farmers as its members,
Amul is present in over 50 countries, supplying a diverse range of dairy
products such as milk, butter, curd, ice-cream, cheese, fresh cream,
chocolates to name a few.
5. Advertising
The logo and slogan of Amul were designed keeping in mind the taste and
diverse nature of the country. It reinforces Amul’s commitment to bring
quality food products to the common people of India. The mascot of Amul,
the hugely popular ‘Amul girl’, a young Indian girl dressed in a polka dotted
frock with blue hair and a half pony tied up along with Amul’s advertising
9
campaign relating to day-to-day issues have become part of the lives of
every Indian.
With innovations like ‘Any Time Milk (Amul), which dispenses 300-ml pouch
of milk for Rs 10, Amul is constantly trying to reinvent itself. It is one of the
few Indian brands to have captured the consciousness of the Indian people
and created immense goodwill for itself in the country and the world.
Amul products have been in use in millions of homes since 1946. Amul Butter,
Amul Milk Powder, Amul Ghee, Amul, 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. Amul represents a proven model for dairy development.
•Tracks consumer needs & their changing lifestyles, & accordingly develops
products to suit their needs
Product •Product quality plays a paramount role & so does packaging
•Amul boasts of the largest cold chain network (18000 refrigetors) in India, as
compared to any other company
Place •It sells pizzas in rural markets too
•Amul spends very less on its advertising budget, but spends it very effectively
Promoti •it has the power of an umbrella brand Amul, which is highly respected brand
name & enjoys public trust
on
10
PRODUCT MIX
Product mix of Amul includes Milk, Bread Spreads, Cheese, Beverages,
Paneer, Dahi, Ghee, Mithai, Ice-Cream,
The product line and product depth of Amul products is shown below.
Amul Milk
11
UHT Milk
Milk Powders
Fresh Cream
12
Bread Spreads
Cheese
Beverage Range
13
Paneer
Dahi
Ghee
Mithai Range
Mithai Mate
14
Ice Cream
Chocolates
15
Product-Width
The width of a product mix refers to the total number of items in the mix.
Example:
The total number of items are 8. (Fresh Milk & Powder Milk, Bread spreads,
cheese, Beverages, Paneer, Dahi and Mithai)
Product-length
The length of a product mix refers to the total number of items in the mix.
Product Depth
The depth of a product mix refers to how many variants are offered of each
product in the line.
Line stretching
Every company’s product line covers a certain part of the total possible range.
Line stretching occurs when a company lengthens its product line beyond its
current range. The company can stretch its line down market, up-market or both
ways.
Example:
Amul is now aggressively adopting the down market stretch by introducing
(CHHOTA AMUL, Priced at Rs. 5 to take advantage of the Bottom of the
Pyramid i.e. to individual of low income group.)
Amul has been introducing products with consistent value addition but never
left the core philosophy of “Providing milk at a basic, affordable price”.
16
MILESTONES OF GCMMF
2.8 million Milk producer member families
13,759 village societies
13 District Unions
8.5 million liters of milk procured per day
Rs. 150 million disbursed in cash daily
GCMMF is the largest cooperative business of small producers with an
annual turnover of Rs. 53 billion
The Govt. of India has honored Amul with the “Best of all categories
Rajiv Gandhi National Quality Award”.
Largest milk handling capacity in Asia
Largest Cold Chain Network
48 Sales offices, 3000 Wholesale Distributors, 5 lakh retail outlets
Export to 37 countries worth Rs. 150 crores
Winner of APEDA (The Agricultural and Processed Food products
Export Development Authority) award for nine consecutive years
17
INDUSTRY ANALSIS
SWOT ANALSIS
Weakness Threats
18
BUSINESS MODEL
Raw Milk
Pasteurization
Condensed
Packaged Milk
1. Ghee Dried Skimmed
Ice creams
2. Butter Milk Powder
Beverages
3. Cream
Amul has some good competitors who have entered the market in the last
decade and growing strong steadily. Most of these ice creams entered
regionally but then held on to the regional market share. Thus, even though
individually these brands might not be a worthy adversary, combined and with
their total net aggregate, all of them together are giving a very tough competition
to Amul.
Some of these competitors are Kwality walls, Vadilal, Havmore, Dinshaws, Arun
Ice cream, Baskin Robbins, London dairy and others. Many of these ice cream
products have their own niche or geographic targets. Arun ice cream is strong
in the south whereas havmor and Vadilal are strong in the west.
Besides these organized players, there are many unorganised local players
who also give competition to Amul by having their own outlets and their own
variants of ice cream. However, the competition in Butter and Cheese and other
dairy products is far lesser.
19
Amul’s turnover grows 18% to Rs 27,085 cr in 2016-17
The turnover of Gujarat Co-operative Milk Marketing Federation (GCMMF),
which markets Amul brand of milk and dairy products, has increased by about
3.5 times in the last seven years.
Pouch milk, the highest turnover product, has shown volume growth in
double digits while products like butter, ghee, ice cream, UHT milk, flavoured
milk, paneer and fresh cream have also registered a double-digit growth.
GCMMF has been achieving a compound annual growth rate (CAGR) of more
than 20% for the last seven years because of higher milk procurement,
continuous expansion in terms of adding new markets, launching of new
products and adding new milk processing capacities across India.
Amul plans to step up its milk processing capacity to 380 lakh litres per day,
from the current 300 lakh litres, in the next three years, said Jethabhai Patel,
Chairman, GCMMF.
20
CHAPTER 3 – RESEARCH METHODOLOGY
RESEARCH DESIGN
The study was conducted in South-West area of Delhi, i.e., Dwarka
PRIMARY DATA
The primary data consists of information obtained from different societies and
their residents.
SECONDARY DATA
The secondary data is obtained from the information already published in
newspaper articles, blogs and books. The websites like amul, scribd, Wikipedia
etc. were also useful.
21
METHOD OF DATA COLLECTION
The source of the data collected for the research is both primary data and
secondary data
Primary Data:
By Observation Method:
This data was collected by visiting the societies in Dwarka.
The data was collected on the following parameters:
Potential area
Less availability of Amul products nearby.
Consumer demand.
By Personal Interviews:
The data was collected by visiting each and every society where there is
potential to set up Amul APO for consumer needs. In order to setup APO within
the societies we took permission from the Association of each.
PROBLEMS FACED
22
LIMITATIONS
The research was carried out for 2 months which proved to the
insufficient to tap the accuracy of the study.
Entire Dwarka has approx. 400 Societies, able to cover 182 societies
due to time constraint and lack of transportation.
Time factor has been a very big limitation in the research like this.
Mother Dairy Booth has been already setup in approx. 21% societies of
Dwarka.
Approx. 13% societies already have General stores.
Most of the societies were not interested in setting up any kind of booth.
Legal problems (permission from DDA)
INTERVIEW SCHEDULE
23
CHAPTER 4 – ANALYSIS AND FINDINGS
35 38
30
25
24
20
19
15
10
0
Amul Mother dairy General Store
Number of Booths
24
Sector-Wise Booths in Dwarka Table
No. of Booth
Sector Visited Gen. No
Amul MotherDairy
Societies Store Booth
2 4 1 1 0 2
3 5 1 3 0 1
4 17 4 3 1 9
5 10 0 2 1 7
6 37 4 5 7 21
7 9 2 4 1 2
9 10 1 2 0 7
10 27 2 5 6 14
11 11 1 1 2 7
12 16 0 2 2 12
13 10 0 5 0 5
18 9 0 2 2 5
22 11 2 2 2 5
23 6 1 1 0 4
Total 182 19 38 24 101
16
14
7
12
10 6
8
1
5 1
6
3
0 2
5
4 0 4
0 2 2 2 2
3 1 5
2 0 4 4 2 0
1 1 1
2 2 2 2 2 2
1 1 1 1 1
0 0 0 0 0
2 3 4 5 6 7 9 10 11 12 13 18 22 23
Sectors
Amul MotherDairy Gen. Store
25
From the above table and graph we could find out that
Out of 14 Sectors Amul Booths are available in 10 sectors.
Mother Dairy Booths are available in every sector.
Highest number of Amul booths are present in Sector 4 & 6 (4 each).
Highest number of Mother Dairy Booths are present in Sector 6, 10 and
13 (5 each).
Highest number of General Stores are present in Sector 6 & 10 (7 & 6
Stores).
Maximum opportunities to open APOs are available in Sector 2, 3, 5, 6, 9,
10, 12, 13 & 18.
Sector 4, 6, 10 & 12 (9, 21, 14 & 12) have highest number of societies
which don’t have any kind of booths. They are highly dependent on Local
dairy milkman or near Mother Dairy Booth, Amul Booth or General Store
supplies.
26
LEADS/POTENTIAL SOCIETIES OF DWARKA
1. New Cosmopolitan
Address: Plot-33, Sector-10, Dwarka, New Delhi-75
No. of Flats: 100
Contact: President - 9650597945
Gen. Sec. - 9911243837
Remark: Visited the society twice but both of the time none of the official
member was available for the meeting. Had a word with President as
well as with the Gen. Sec., Gen. sec is willing to setup Amul booth in
their society but president is not ready for it.
This society has high potential as there is only one Mother Dairy booth
near society but market is far from the society.
Status: Need to follow up again as it could be turn into a success.
27
2. Meerabai Apartment
Address: Plot-10, Sector-5, Dwarka, New Delhi-75
No. of Flats: 105
Contact: President – 7042279062
Remark: Visited the society thrice and had a meeting with President and
other official members of the society. They are ready to give the space
for the Amul Booth but not happy with the rent amount. They are asking
for Rs.15,000 rent.
This society has high potential as a dairy guy comes in the morning
who supplies only milk but other necessary items are not easily
available, there is a Mother Dairy booth in plot no. 13 which is not near
the society. Adjacent societies could also get benefit of the Amul Booth.
Status: Need to give them a better deal to close the deal.
28
3. Gulistan CGHS Ltd.
Address: Plot-1B, Sector-13, Dwarka, New Delhi-78
No. of Flats: 100
Contact: Miss Kiran (Management Member) – 9599010026
29
4. White Rose CGHS Ltd.
Address: Plot-7, Sector-13, Dwarka, New Delhi-78
No. of Flats: 61
Contact: Col. Tripathy (President) – 9868604348 (jr_tripathy@yahoo.in)
5. Hind Apartment
Address: Plot-12, Sector-5, Dwarka, New Delhi-75
No. of Flats: 117
Remark: This society is willing to setup an APO but DDA authority is not
giving them permission to commercialize the space.
Status: Need to take permission from DDA Authority and revisit the
society.
30
6. The Kunj Vihar CGHS Ltd.
Address: Plot-19, Sector-12, Dwarka, New Delhi-78
No. of Flats: 213
Remark: Visited more than two
times but none of the official member
was available at that time.
This society has high potential as
there is no market near the society.
Also they have vacant store for the
APO
Status: Need to follow up again.
31
8. Happy Home Apartments
Address: Plot-12A, Sector-7, Dwarka, New Delhi-75
No. of Flats: 216
Contact: Mr. Harnam (Management Member) – 9873442739
Remark: Visited the society once and had a word with the manager to
setup the APO, he has forwarded the proposal to the higher authority but
couldn’t get any response from them.
This society has high potential as they have higher number of flats.
There is a market near the society also.
Status: Need to revisit to convince the higher authority.
9. Sargodha Apartments
Address: Plot-13, Sector-7, Dwarka, New Delhi-75
No. of Flats: 300
Contact: Mr. Rajendar Sargodha (Secretary) – 9891918325
32
10. Shri Hari Apartments (CGHS Ltd.)
Address: Plot-6, Sector-12, Dwarka, New Delhi-78
No. of Flats: 100
Contact: Mr. Dinesh Mishra (Manager) – 9971683341
33
12. Ganpati Apartments
Address: Plot-6, Sector-9, Dwarka, New Delhi-75
No. of Flats: 105
Contact: Mr. Vivek (Manager) – 7503676373
Remark: Had a word with the care taker regarding the APO, he has
considered our proposal but not confirmed.
Status: Need to revisit to convince him.
34
CHAPTER 5 – CONCLUSION AND
RECOMMENDATIONS
CONCLUSION
This report summarizes study on Amul Preferred Outlet in Dwarka (South-West
Delhi). It is concluded that Amul as a brand has a good reputation in the market
but its rival Mother Dairy has already created a chain of booths in almost every
sector of Dwarka. Because of Mother Dairy booths and availability of General
Stores concerned authority of the societies were not ready to give space for the
APO as 4 to 5 societies around the Mother Dairy Booth or General Store,
residents prefer to buy Milk & other necessity items from that booth only.
The main goal should be to attract customer and to retain them so that the
loyalty maintains in future as well. Besides this, Quality is the dominating aspect
which influences consumer to purchase Amul product, but prompt availability
of other brands and aggressive promotional activities by others influences the
consumer towards them and also leads to increase sales.
It’s been great experience working with Amul. It has helped me in not only
knowing the business potential of Amul as a brand through its sales in parlours
and outlets but also knowing Amul in leap and bound like knowing its pattern of
distribution, depth of the Amul products, margin associated with Amul products,
business structure of Amul.
35
RECOMMENDATIONS
36
BIBLIOGRAPHY
http://www.amul.com/m/about-us
http://www.amul.com/files/pdf/GCMMF_Press-Release-for-Annual-
General-Meeting-on-15th-June-2017.pdf
https://www.scribd.com
http://amulmania.blogspot.com/2015/10/amulaya-amul.html
https://www.google.co.in/
https://en.wikipedia.org/wiki/Amul
http://economictimes.indiatimes.com/news/industry/cons-products/fmcg/indias-
fmcg-sector-to-reach-104-bn-by-2020-study/articleshow/54697324.cms
https://www.ibef.org/industry/indian-consumer-market/infographic
37