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SUMMER TRAINING REPORT

ON
A STUDY ON AMUL PREFERRED OUTLETS
IN DWARKA (NEW DELHI) SOCIETIES

“Submitted in the Partial Fulfillment for the Requirement of


Post
Graduate Diploma in Management”
(PGDM)

Submitted to: Submitted by:


Ms. Barkha Narang Manoranjan Sahu
Roll no: 27
Batch: 2016-18

Jagannath International Management School


Kalkaji, New Delhi
CERTIFICATE OF DECLARATION

I hereby declare that the project done by me is true to my knowledge. This


research work is my original work. The information collected by me is authentic
and I have thorough knowledge of the project.

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

4 CHAPTER 2 - G.C.M.M.F. LTD. - AMUL


4
(Company Profile)

5 CHAPTER 3 - Research Methodology 21

6 CHAPTER 4 - Analysis & Findings 24

7 CHAPTER 5 - Conclusion &


35
Recommendations

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.

I am also grateful to my family and friends who have contributed significantly in


the project. Thanks for the patience.

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

GCMMF, popularly known as AMUL is an apex marketing organisation of


‘AMUL’ and ‘Sagar’ branded products. AMUL, few years back felt a need to
come out with an innovative change to make all it’s products get noticed,
bringing them all on the same platform as other successful AMUL products like
milk & butter are; under same roof. And this gave birth to an innovative concept
of Exlusive Outlests called AMUL Preferred Outlets (APOs) bringing in all the
AMUL products together enabling the company get benefits like better shelf
space, protection from private labels and most importantly a good source of
free promotion for the brand AMUL.

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.

Working capital requirement is extra depending upon sales volume. Expected


monthly sales turnover varies from place to place depending on location of the
outlet. It may be in the range of Rs. 5 lac to Rs. 10 lac per month.

1
S.No. Type of the Prebuilt Investment by the Avg. Returns on
format Shop franchisee MRP
Req. (In
sq.ft.)

1 Amul Preferred 100-150 Rs 2.00 lacs Pouch Milk –


Outlet/Amul (approx). 2.5%, Milk
Railway Products - 10%,
Parlour/Amul Break up = Ice Cream - 20%
Kiosk Refundable Brand
Security - Rs 25,000 /
Renovation –
Rs 100,000 (approx.) /
Equipments - Rs
70,000 (approx.) plus
incidental cost.

2 Amul Ice- >300 Rs 6.00 lacs About 50% on


Cream (approx.) recipe based ice
Scooping cream scoops /
Parlour Break up = sundaes / floats /
Refundable Brand shakes / baked
Security - Rs 50,000 pizzas /
Renovation – sandwiches /
cheese slice
Rs 4,00,000 (approx.) burger / garlic
Equipment – bread / hot
chocolate drink
Rs 1, 50,000 (approx.)
(Amul Pro).
plus incidental cost.
For pre-packed
All Visicoolers and
ice creams the
Deep Freezers should
margin would be
be Amul Branded to
20% approx.
avail equipment
purchase These ice cream
support amount. parlours will also
sell other Amul
products where
the margins will
be to the tune of
10%.

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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.

RS Sodhi, Managing Director of the Gujarat Cooperative Milk Marketing


Federation Ltd, maker of Amul brand products, says, “We prefer the franchisee
owned and franchisee managed model rather than any other model. We feel
that this actually brings about the enterprising skills of the individuals on the
table. The kind of product range Amul offers is unparallel and most of our
exclusive retail outlets thrive due to this huge variety on offer. Our franchising
model is pretty low-cost in nature and therefore we remain the largest
franchisors in the branded packaged food segment.”

APO/SCOOPING PARLOURS IN DELHI


Product Line No. of APOs
Amul Preferred Outlet 270
Scooping Parlours 16
Total 286

APOs IN PROMINENT PLACES OF DELHI

Category No. of APOs


Residential APOs 40
Hospital APOs 16
Railway APOs 15
Educational Institute APOs 10
Office APOs 10
Cantonment APOs 10
Jail APOs 3
Bus Stands/Airport APOs 2

3
CHAPTER 2 – COMPANY PROFILE

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's


largest food product marketing organization with annual turnover (2016-
17) US$ 4.1 billion. Its daily milk procurement is approx. 18 million lit per
day from 18,700 village milk cooperative societies, 18 member unions
covering 33 districts, and 3.6 million milk producer members.
It is the Apex organization of the Dairy Cooperatives of Gujarat, popularly
known as 'AMUL’, 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. Its success has not only been emulated in India but
serves as a model for rest of the World. It is exclusive marketing organization
of 'Amul' and 'Sagar' branded products. It operates through 56 Sales Offices
and has a dealer network of 10000 dealers and 10 lakh retailers, one of the
largest such networks in India. Its product range comprises milk, milk powder,
health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer,
chocolates, and traditional Indian sweets, etc.
GCMMF is India's largest exporter of Dairy Products. It has been accorded a
"Trading House“ status. Many of our products are available in USA, Gulf
Countries, Singapore, The Philippines, Japan, China and Australia. GCMMF
has received the APEDA Award from Government of India for Excellence in
Dairy Product Exports for the last 16 years. For the year 2009-10, GCMMF has
been awarded "Golden Trophy" for its outstanding export performance and
contribution in dairy products sector by APEDA. In 2013-14, GCMMF took giant
strides in expanding its presence in International markets. Amul’s presence on
Global Dairy Trade (GDT) platform in which only the top six dairy players of the
world sell their products, has earned respect and recognition across the world.
By selling milk powders on GDT, GCMMF could not only realize better prices
as per market demand but it also firmly established Amul in the league of top
dairy players in world trade.

For its consistent adherence to quality, customer focus and dependability,


GCMMF has received numerous awards and accolades over the years. It
received the Rajiv Gandhi National Quality Award in 1999 in Best of All

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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

Year of Establishment 1973


Members 18 District Cooperative Milk
Producers' Unions
No. of Producer Members 3.6 Million
No. of Village Societies 18,700
Total Milk handling capacity per day 30 Million liters per day
Milk Collection (Total - 2016-17) 6.57 billion liters
Milk collection (Daily Average 2016-17) 18.0 million liters
Cattle feed manufacturing Capacity 7800 Mts. per day
Sales Turnover -(2016-17) Rs. 27085 Crores (US $ 4.1
Billion)

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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

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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

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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.

PRODUCTS AND BRANDS

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.

AMUL’S PRODUCT STRATEGY

•Tracks consumer needs & their changing lifestyles, & accordingly develops
products to suit their needs
Product •Product quality plays a paramount role & so does packaging

•The main USP of Amul Brand is its low princing


•The competitive advantage is its "backward integration" stragtegy, which
Price hepls substantially in cost reduction

•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

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 UHT Milk

 Milk Powders

 Lactose Free Milk

 Fresh Cream

 Amul Sour Cream

12
 Bread Spreads

 Cheese

 Beverage Range

13
 Paneer

 Dahi

 Ghee

 Mithai Range

 Mithai Mate

14
 Ice Cream

 Chocolates

 Amul PRO (Whey Protein Malt Beverage)

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”.

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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

COUNTRIES WHERE AMUL EXPORTS

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INDUSTRY ANALSIS

 PORTER’S FIVE FORCES MODEL

• Requires high capital • Presence of multiple


investment and difficult to competitors as well as
achieve economies of local Dudhwaalas
scale • Home delivery and
• Access to very complex freshness of local dairy
and well established Threat of Bargaining products from local
channel new Dudhwaalas make this
• Customer Loyalty
Power of more complex
Entrants Buyers
(Low) Rivalry (High)
among
Competitors
(High)
Bargaining
Threat of Power of
• Although many Substitutes Supplier • Mainly the suppliers
substitutes in drinking (Medium) (Low) are rural milk
arena when compared producers and thus
with milk are available, their bargaining power
the dairy industry is very low
enjoys high profitability
in case of other dairy
products

 SWOT ANALSIS

• Largest food brand in India • Potential to expand to smaller


• High Quality, Low Price towns and other geographies
• World's Largest Pouched Milk • Expand product portfolio to
Brand enter new product categories
• Highly Diverse Product Mix • Online selling of the products
• Robust Distribution Network
Opportuniti
Strength es

Weakness Threats

• Risks of higly complex supply • Strong Competitors - Mother


chain system Dairy, Nestle, Britannia ad
• Short shelf life of its products Local Players
• Low market share in • Stiff competition from MNC's
chocolates segment • Growing price of milk & milk
products

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 BUSINESS MODEL

Raw Milk

Pasteurization

Condensed
Packaged Milk
1. Ghee Dried Skimmed
Ice creams
2. Butter Milk Powder
Beverages
3. Cream

AMUL’S MARKET PROFILE

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.

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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.

FUTURE PLANS OF AMUL


 Amul plans setting up processing unit in Northeast.
 Amul: Rs 3,000 Cr. to be invested over four years on expansion.
 Gujarat Co-operative Milk Marketing Federation (GCMMF) is planning to
set up of new plants and add capacity to existing facilities.
 The cooperative is also planning to enter states like Bihar, Jharkhand,
Odisha, Kerala and North-East to expand business, its managing
director R S Sodhi said.
 Amul entering into Frozen Snacks and Whey proteins market.

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CHAPTER 3 – RESEARCH METHODOLOGY

Research methodology is the way to systematically solve the problem. In it we


study the various steps that are generally adopted by a researcher in studying
his research problem along with the logic behind them. Thus, When we talk
about research methodology we not only talk of the research methods but also
consider the logic behind the methods we used in the context of our research
study and explain why we are using a particular method or technique and why
we are not using others so that research results are capable of being evaluated
either by the researcher himself or by others.

OBJECTIVE OF THE STUDY


 Identify new avenues for APOs in Dwarka (South-West Delhi) keeping
in mind center of excellence (CoE) places.
 Devise strategies to start new APOs in CoEs.
 To pitch societies in Dwarka for AMUL APO and getting leads for the
project.
 Propose advantage of having Amul Milk booth in CoE to concerned
authority.
 To collect information of Milk booth/retail shops operational in CoEs.

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.

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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

 Permission not granted by DDA or Concerned Association.


 Monthly rental problems and Security concerns.
 Concerned person was not available.

SCOPE OF THE STUDY


 This study is confined to the Societies of Dwarka of South-West Delhi.
 Was pitching only for AMUL APO.

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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

Following Questions were asked to the Administrative or Management


Officials of Societies in Dwarka during the 60 days period of summer
internship in regard of Opening of New AMUL APO.

1. Name of the Society?


2. Address of the Society?
3. Name of Administrative or Management Official and their post?
4. Contact number of Administrative or Management Official?
5. Number of flats in societies?
6. Availability of space in Society or not?
7. Any other Franchisee currently operating or not in Society?
8. Sources from where the society gets milk, dairy or other value added
dairy products?
9. If in past any other Brand’s Franchisee was operating in Society then
what were the reasons it was closed?
10. Potential of Society pitched for AMUL APO?
11. Amount of rent society expects for allowing AMUL APO to be set up
in their premises?

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CHAPTER 4 – ANALYSIS AND FINDINGS

Total Societies Visited: 182


Total Sectors Visited: 14 (2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 18, 22, and 23)
Total Leads found: 13

Booths in Dwarka Socities


40

35 38

30

25
24
20
19
15

10

0
Amul Mother dairy General Store

Number of Booths

Figure No. (i)

The Above Graph shows:


No. of Amul Booths: 19
No. of Mother Dairy Booths: 38
No. of General Stores: 24
No. of Societies without any Booths: 101

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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

Note* These numbers are out of 182 Societies visited

Sector-Wise Booths Graph


18

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

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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.

What kind of returns can anyone expect from the business?


It depends on the location and the products that a Franchisee sell. The
margins are good and Franchisee can recover investments in only 8-9
months.
A typical illustration of the expected earnings from the business is as under:
All fig. in Rupees
Dairy Ice
Milk Others Total
Products Cream
Sales (In
Rupees per 2,50,000 1,20,000 80,000 40,000 4,90,000
month)
Gross
Margins 6,250 12,000 16,000 5,000 39,250
Earned
Less:
Electricity 4,000
charges
Less:
4,000
Rentals
Less: Salary
& Misc 10,000
Expenses
Net Margins
Earned per 21,250
month

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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.

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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.

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3. Gulistan CGHS Ltd.
Address: Plot-1B, Sector-13, Dwarka, New Delhi-78
No. of Flats: 100
Contact: Miss Kiran (Management Member) – 9599010026

Remark: The Society is near Radison Blu Hotel


(Situation as on 8th July) Management members are still in talk to setup
Amul APO, one of the member is in our favor to set APO in the society.
Will get approval soon.
This society has high potential as it’s in the middle of the other
societies and only one Mother Dairy Booth is available which is also far
from the society. Also society people need necessity items (Milk, bread,
eggs, etc.) at their doorstep.
Status: Need to follow up again.

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)

Remark: This society is small but a new society (Durga Pooja


Apartment) has been build up adjacent to it, which has 71 flats. Had a
word with the president of the society, he is willing to setup an APO and
also shown me the space for it but still they are in process to finalize the
deal.
This society has high potential as there is no market near the society.
If we setup an APO here adjacent/near societies will also prefer this
booth only which will definitely increases the sales.
Status: Need to follow up again.

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.

7. Maharani CGHS Ltd.


Address: Plot-15B, Sector-22, Dwarka, New Delhi-78
No. of Flats: 85

Remark: Visited the society


once and had a word with the
manager but they have store
space in basement.
This society has high
potential as there is no market
near the society and a local
dairy person comes to deliver
milk in the morning.
Status: Need to revisit.

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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

Remark: Had a word


with the Gen. Sec.
regarding the APO,
tried to convince him
but he was not that
much interested.
Status: Need to
revisit to convince
them.

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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

Remark: Manager is already in process to setup a store but asking for


rent around Rs.10,000 as someone else is offering Rs.9,000 rent.
Status: Need to revisit to get the confirmation whether he has finalized
the deal with other person or not.

11. Ashoka Apartments


Address: Plot-8, Sector-12, Dwarka, New Delhi-78
No. of Flats: 90
Contact: Mr. Sundarlal Sharma (Manager) – 9716250551

Remark: Had a meeting with the


manager regarding the APO, he
has forwarded the proposal to the
higher authorities but couldn’t get
approval from them.
Status: Need to revisit to convince
them.

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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 manager, he is already in process to


setup Amul Booth in the society.

13. Manzil Apartments


Address: Plot-7, Sector-9, Dwarka, New Delhi-75
No. of Flats: 105
Contact: Mr. Atul Mishra (Care Taker) – 9818144542

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.

Major reasons for not setting up an APO

1. No space for APO


2. Not interested because of near Market/Mall
3. Buys milk from near Mother Dairy Booth / General Store / Amul Booth
4. Asking for High Rent
5. Societies don’t permission from DDA/RWA to set up any commercial store
in the society
According to me the growth of any product whether it could be food based
product or anything depends upon how we do proper branding of that product
and also the promotion which plays a very vital role in attracting customers.

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

 Increase number of team members to reach every society.


 Could increase Visibility (Hoardings, Banners, etc.) of Amul in Dwarka.
 Come up with Campaigns to attract more societies in Dwarka to setup
APO.
 Branding and promotion activities like distributing free samples in the
schools can be a good option to make the target consumer, the kids in
the growing age, aware about the product.
 Amul should increase their hoarding ads about Amul Products as this is
the best way in which Amul connects with the common people.
 Implementing and Designing APO according to festive themes during
festive seasons.
 Provide products at special prices at APO.
 Regular inspection of APO to ensure hygiene and cleanliness.
 Checking of the Franchisee assigned for APO and staff appointed by the
franchisee.
 Taking regular feedbacks from society members for improvements in
future.

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

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