Marketing Research

Project on
AMUL Chocolate

Submitted by:
Nabanita Kalita (15)
Priyanka Mahanta (33)

Acknowledgement

As we know research work needs hard work, keen insight and long
patience with scholarly vision based on content operation hence it
becomes a humble duty to express our sincere gratitude to Mrs. Rinalini
Pathak Kakati, our Project In-charge for her ideas and help.

However, we accept the sole responsibility for any possible error of

omission and would be extremely grateful to readers of this project
report if they bring such errors to our notice.

Preface

For our research study we wanted to take up a product from the Indian industry. All other
companies are primarily companies whose object right from its inception has been profit
maximization. We are not saying that is not out there to make profits but the point we are trying
to highlight is that Amul started as a cooperative which took on the responsibility of rural
development through providing source of income to millions of farmers. It is one such company
which has strongly infused the message of corporate social responsibility right through it started
functioning. It had spurred the white revolution in the whole country. It has done so much pride
to India by making it one of the world’s leading producer of milk. Many companies reach zenith
but there are very few of them who adopt a social responsibility in their functioning. Amul is
indeed different from all the other companies because it started its operations at the grass root
level that is farmers. There cannot be a more noble cause than this for a company to adopt
.Taking this into consideration we decided that we will take Amul as our subject of study.

During the whole project we got a lot of experience and came to know about the management
practices in real that how it differs from that of theoretical knowledge and the practicality of real
life.

In today’s globalized world, where cut throat competition is prevailing in the market, theoretical
knowledge is not sufficient. Besides this one needs to have practical knowledge which would
help an individual in his/her career activities.

We have taken Amul and then we have made an analysis of its advertising and sales
promotion techniques, the communication mix employed by the company and how effective
these strategies have been in positioning Amul as not only Amul but as
Amul – The Taste of India .

The project has offered us enormous scope to enhance our practical understanding of
the purpose and significance of advertising and sales promotion as an effective tool of
Communication mix.

Executive summary:
This project was undertaken with the objective of studying the penetration of Amul chocolates in
the outlet levels. It also looked into the different factor of stocking decision to the product in the
retail outlets. In our study, both retailer’s and customer’s preference was studied by using
questionnaire.
A sample size of 30 respondents was taken for the study, whose responses were studied and
interpreted .The sampling design was used convenience sampling. The process of analysis was
done through excel work sheets, frequency table, percentage analysis etc.

It was found that due to low consumption of milk, there is not much awareness of milk product.
It was the major cause to the low sell of Amul products. Like that penetration level in the outlet
of milk product was low.

To consider the stocking decision of product in retail outlet, Trust of the company was the first
preference of the retailer’s then credit on the product.

Finally the whole study of the research work, the company needs the effective advertisement of
the product in the local channel and print media for awareness of Amul product.

TITLE OF THE STUDY

A study of the penetration of „AMUL Chocolates in the retail outlets and the factors that
influence the stocking decision of retailers of such products.

OBJECTIVE OF THE RESEARCH

To find out the penetration of AMUL chocolates in the retail outlets with reference to retailers of
such products. To find out the factors that influences the stocking decision of retailers.

PROBLEM STATEMENT

There has been a drop in the percentage of retail outlets where Amul had penetration for its
products, this study is intended to find out the percentage of outlets where penetration of Amul
products exists now and find out the factors that influence the buying decision of retailers of
beverage products.

SCOPE OF THE STUDY

The scope of the study is limited solely to the markets visited by the researcher for the purpose of
research; this may hence not be a total reflection of the penetration of AMUL products for all the
retail outlets.

RESEARCH DESIGN

A Research design specifies the methods and procedures for conducting a particular study. It is a
map (or) blue print to which the research is to be conducted. Descriptive research design has
been considered as a suitable methodology for present study and for data analysis.
SAMPLING DESIGN

The sampling design used was Convenience sampling, which is a non-probability sampling
method. The convenience factors were the availability and approachability of the respondents.

POPULATION

All types of outlets that stock and sell Amul Chocolates in the markets. The outlets have been
classified into as follows
 Convenience stores : All kinds of shops including bakeries
 Eateries : all kinds of eating joints
 Groceries : all shops selling groceries

MEASUREMENT

The research objective requires the researcher to find out the penetration of Amul Chocolates
with reference to retailers of such products.
For this the following data relevant were collected
a. Amul product sold by the retailers
b. If sold, then which of the competitors complimentary products, has a higher penetration in that
outlet.
c. Strategies adopted by the company and its distributors that influence the stocking decision for
the product.

LIMITATIONS OF THE RESEARCH

The limitations of the research were as follows

1. Lack of proper experience on the part of the researcher in conducting such studies in the past.
2. Time frame required was not enough to survey more number of outlets.

ANALYSIS TECHNIQUES

Quantitative analysis is performed using the data collected at each outlet to estimate the
presence of Amul products.

Tools Utilized

 Percentage Analysis
 Graph Chart
Company Profile:
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India.
It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk
producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example
of a co-operative organization's success in the long term. The Amul Pattern has established
itself as a uniquely appropriate model for rural development. Amul has spurred the White
Revolution of India, which has made India the largest producer of milk and milk products in the
world. It is also the world's biggest vegetarian cheese brand .
GCMMF:
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.
Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice
cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January
2006, Amul plans to launch India's first sports drink Stamina, which will be competing with
Coca Cola's Powerade and PepsiCo's Gatorade .
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual
turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with
milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas
markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong
and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded,
but now it has fresh plans of flooding the Japanese markets .Other potential markets being
considered include Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the
success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was
elected chairman of GCMMF.

ACHIEVEMENT:
Amul :Asia‟s largest dairy co-operative was created way back in1946 to make the milk producer
self-reliant and conduct milk- business with pride. Amul has always been the trend setter in
bringing and adapting the most modern technology to door steps to rural farmers.

Amul created history in following areas:

a)First self motivated and autonomous farmers‟ organization comprising of more than 5000000
marginal milk producers of Kaira District.
b) Created Dairy co-operatives at village level functioning with milk collection centres owned by
them.
c) Computerized milk collection system with electronic scale and computerized accounting
system.
d)The first and only organization in world to get ISO 9000 standard for its farmers co-operatives.
e)First to produce milk from powder from surplus milk.
Amul is the live example of how co-operation amongst the poor marginal farmers can provide
means for the socio-economic development of the under privileged marginal farmers.

Amul in abroad:
Amul is going places. Literally. After having established its presence in China, Mauritius and
Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), India‟s largest milk
cooperative, is waiting to flood the Japanese market.
Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products
are already available on shelves across several countries, including the US, China, Australia,
West Asian countries and Africa.
GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk, ultra
heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.

RESEARCH DESIGN:
Research Problem:
 Increase the awareness level of AMUL chocolates.
 Seek the general perception of consumer towards Amul Chocolates.
 To find the performance of Amul Chocolate vis-à-vis other brands.
 To know the consumer psyche and their behaviour towards Amul Chocolate.


Research Objectives and related sub-objectives:

 To know the relationship of sales with advertisement.
 To know the awareness of people towards Amul Chocolates.
 To know in which segment chocolates are most preferred.
 To know which advertisement tool is mostly preferred by people.
 To know the preference of Amul Chocolates with comparison to other competitive
brands.
 To know the factors which affects consumer’s buying behaviour to purchase chocolates.

Information requirement:
 First, we had to know about all the competitors present in the chocolate segment
(Reputed and well established brands as well as local brands)
 Before going for the survey we had to know the comparative packs and prices of all the
competitors existing in the market.
 Since chocolate is a product that attracts children and youngsters hence we had to trace
the market segmenting it, which mainly deals with people of various age groups.
 As chocolate is a different, the main information needed is the various types of
chocolates available in the market, their calorific value and various other facts.

Choice of Research design:

Despite the difficulty of establishing an entirely satisfactory classification system, it is helpful to
classify marketing research on the basis of the fundamental objectives of the research.
Consideration of different types, their applicability, their strengths and their weaknesses will help
us to select the type best suited to a specific problem.

The general types of research applied are:

Exploratory Research:
Exploratory research seeks to discover new relationship, emphasis on discovery of ideas.

Marketing research devote a significant portion of their work on exploratory studies when very
little is known about the problem being examined.

Conclusive Research:

Conclusive studies attempts to determine the frequency with which something occurs or the
relationship between two phenomenons. Usually conclusive studies assume certain underlying
characteristics of the market or have some precise statement of research questions and
hypothesis.

Data Collection Methods:

The questionnaire method has come to be the most widely used method of data collection. A
questionnaire consists of list of questions to be asked from the respondents and the space
provided to record the answer. Questionnaire can be used for personal interviews, focus group,
mail and telephonic interviews. The choice among these alternatives largely depends on the type
of information to be obtained and by the type of respondents from whom information is to be
obtained. The various types of questions included are as under:

Multiple choice questions:

Questions of this type offer the respondents an alternative to choose the right answer among
others. It is faster, time saving and less biased. It also simplifies the tabulating process.

Open ended questions:

In this type the respondents are free to answer in their own words and express the ideas they
think are relevant, such questions are good as opening questions. They introduce the subject and
obtain general reaction.

Dichotomous:

These are the questions which are Boolean in nature. These answers are straight forward and
respondents have to answer them in a straight way either yes or no.

Sampling Design:
Sampling design is a definite plan of obtaining some items from the whole population. The
sample design used in this project is two stage sampling i.e.

 Cluster sampling, and

 Convenience sampling.

Sampling Technique used:

Non-Probability sampling technique: It is a technique in which each element does not have an
equal chance of getting selected.

Sampling Unit available: People who buy chocolates in retail outlets, superstores etc.

Sample size: 60 respondents (Age ranging between 8 to 30)

Method: Direct interview through Questionnaire.

Data analysis method: Graphical method.

DATA ANALYSIS:
1. Outlet Types visited for the purpose of research.

Convenience store Eatery Grocery Total

Outlets 35 13 12 60

The above table shows that out of 60 outlets surveyed; there were 35 convenience stores, 13
eatery and 12 groceries.

40
35
30
25
20
15
10
5
0
convinience store Eatery Grocrey

Of all the retail outlets surveyed, 58% are convenience stores, 20% are groceries, 22% are
eateries.

2. Penetration Level of Amul products in retail outlets of Guwahati.

Type Amul Total

Yes No
Convenience stores 25 10 35
Eateries 3 10 13
Groceries 4 8 12
32 2 60
8

The table above shows that the product Amul has penetrated in 32 outlet in the comparison of 60
outlets.
 Sales

Ye
s

3. Availability of credit, discount and good distribution channel in Amul product.

AMUL outlets
Yes No
Credit 12 20
Discount 10 22
Good distribution channel 20 12

 The table defines credit, discount and good distribution channel of Amul.

 Amul available in32 outlet of 60 outlets surveyed.

 Among 32 outlets of Amul, only 12 outlets get credit while 20 outlets do not get.

 Regarding discount, only 10 outlets get discount while 22 outlets don’t get.

 For distribution channel, 20 outlets said that Amul distribution channel good as well as
moderately good where as 12 outlets said bad distribution channel.
Inferences obtained from consumer responses:

Q: Have you ever tasted Amul Chocolates?

Sales

Ye
s

Inference:

The chart indicates that 90% respondents have tasted Amul chocolates while 10% have not tried
Amul chocolates.

Q: Which chocolate do you like most?

Sales

Nestle
Cadbury
Amul
Any other

Inference:

We can clearly see from the chart that the Cadbury is in the top slot with 58% of the total market
dominates the chocolate market, followed by Nestle with 28% share whereas Amul has only
13% market share and thus lags behind.
Q: Who uses chocolate in the family?

% Usage

Chidren
Teenager
Young
Old

Inference:

Mostly children and teenagers like chocolates in the families as compared to young and old
people.

Q: What form of chocolates do you like?

Others

Wafer

Bar

Cookies

0 10 20 30 40 50 60 70

Inference:

It is seen that the most preferred form of chocolate is bar i.e. 60% followed by wafer i.e. 20%,
cookies are all time favorites with 14% while other forms are preferred to the extent of 6%.
Q: What is the frequency of purchasing Amul Chocolates?

Frequency

Daily
Weekly
Fortnightly
Occasionally

Inference:

The frequency of Chocolates differ a lot where 17% respondents buy it daily,22% weekly, 13%
fortnightly and there is a huge section of people who buy chocolates occasionally.

Q: How do you rate Amul chocolates on the basis of the various attributes?

Attribute Poor Average Good Excellent

Price 48% 22% 23% 7%

Sweetness 20% 14% 20% 46%

Packaging 33% 18% 12% 47%

Softness 12% 16% 23% 49%

Schemes 37% 13% 17% 33%

Availability 12% 15% 23% 50%

Findings:
1. During the survey it was found that still there are 10% of the people who have not tasted
Amul Chocolates.

2. Lack of awareness among consumers. Many people do not know about Amul Chocolates
specially teenagers and children.

3. As we have found that the main product of Amul is Milk and the company firstly wants
to capture maximum market share in milk market which is approximately 66%, after it
Amul is concentrating upon butter and cheese which has a market share of approximately
88%, so it is not concentrating upon chocolates.

4. When responses were taken it was found that many of the people cannot recall Amul
chocolate advertisements. It shows lack of proper advertising strategies.

5. Amul has not taken any measures like celebrity endorsements etc for its advertising
campaigns.

6. There is lack of sales promotional activities for different age groups like tattoos, quiz
contests, extra weight, toys, etc.

7. Cadbury is the major competitor and strategically a better performer than Amul.

8. The Amul Brand name has a good image in consumer’s mind and they consider it as a
pure and good product.
Recommendations:
1. Amul has a relatively good distribution network, but still company is not able to fulfill
the demand of outlet in the peak season when demand is very high. Here company should
consider on the supply of product in the peak season.

2. Supply should be regular to all the outlets including those that lie in the pocket roads and
not just in the outlets which lie on the easily accessible routes.

3. Since the penetration of Amul products in eateries is the worst among all the channels,
the company ought to adopt strategy like supplying free menu cards, which has the
company logo printed on them, this will not only increase the penetration of the product
in the outlets, but also improve the market sales.

4. The company should also ask its distributors to supply its products on a bill to bill based
credit system with at least all the reliable retailers, so that the product penetration in the
outlets increases in terms of percentage of units stocked at a time in the outlet, this would
also look appealing to the customer who would instead like to pick up the product at first
glance.

5. Credit is the 2nd biggest factor that influences the penetration of the product into the
retail outlet. So company should give the credit to all outlets.

6. Given the fact that margin offered to the retailer is not similar in the case of the
competitor‟s product. For this fact, the company should give good margin to the retailers
than the competitors.

7. Due to the lack of awareness of milk product in cochin, the company should be
advertised of the product by print and electronic media specially in local channel and
newspapers.

8. Discount is also a important factor of stocking decision for retailers. So, company should
give discount to all retailers for influencing the stocking.

9. Company should also give the replacement offer to those outlet which is running with
small business.

10. Only fresh product should be supply in the outlet.

11. Amul should take proper steps to improve service because although being in the top slot
in butter and cheese supplies it does not get the sales in chocolates.

12. The company should use brand ambassadors to attract all age groups.

13. Amul should give local advertisements apart from the advertisements given at the
national level. Local advertisements must mention the exclusive Amul shops of the city.
Conclusion:
Amul is a well known brand and a market leader in dairy products. It has maximum market share
in milk, butter and cheese which are its core products. Amul is a cooperative organisation but
chocolate making is a profitable industry. So Amul must concentrate on profit making through
the chocolate industry. With the help of research the company can find out its weak points in
chocolate product and can increase its market share by rectifying its mistakes.

The Survey resulted into the following conclusions:

 Amul must come up with new promotional activities so that people become aware of
Amul chocolates.

 Quality is the dominating factor which influences consumers to buy Amul products but
prompt availability of other chocolate brands and aggressive promotional activities
attracts customers towards them and also increases their sales.

 People are mostly satisfied with the overall quality of Amul chocolates, but for the
existence in the local market it must use aggressive selling techniques.

BIBLIOGRAPHY

 Naresh K Malhotra., Marketing Research – An Applied Orientation, 4th Edition, Pearson

Education Pvt. Ltd, New Delhi, 2003.

 Abraham Koshy, Mileshwar Jha -- Marketing Management, Pearson Prentice Hall, New
Delhi, 2007.

 C.R.Kothari- Research Methodology, New Age International (P) Limited, New Delhi
2007.

WEBLIOGRAPHY

 www.wikipedia.org
 www.amul.com
 www.google.com
 Questionnaire

1. What kind of chocolates do you eat?

Branded: ……………………….. Non-Branded………………………

2. Who uses chocolates in your family?

Children…………………………. Teenage………………………….....
Young…………………………….. Old……………………………………..

3. What form of chocolates do you like?

Cookies…………………………… Bar……………………………………
Wafer……………………………… Other………………………………..

4. Which television channel you like to watch most?

Star…………………………………. Zee……………………………………
SONY………………………………. Cartoon……………………………..

5. In between what time you like to watch television?

Timings……………………………

6. By which media you prefer to watch advertisements?

Television…………………………… Hoardings…………………………
Newspapers……………………….. Magazine………………………….
Others (mention)………………...

7. Which advertisements you like the most?

……………………………………………………………………………

8. What factors affects you in chocolates advertisements?

Brand ambassador………………… Jingles…………………………………..
Comedy…………………………………. Music……………………………………..
Others……………………………………
9. Have you ever tasted AMUL chocolates?
Yes………………… No ……………..

10. Can you recall AMUL chocolates advertisements?

Yes ………………… No………………

11. What is the frequency of purchasing chocolates?

Daily………………………………… Weekly…………………………………
Fortnightly………………………. Occasionally……………………………….
12. Please rate the various attributes of AMUL chocolates on a scale of 1 to 6 (1 being the
least important and 6 being the most important)

ATTRIBUTES
Price: …………………………
Sweetness: ………………………….
Packaging: ………………………….
Softness: ………………………….
Schemes: ………………………….
Availability: …………………………..

13. Which chocolates do you like the most? (mark from 1-5,5 being most preferred and 1
being the least preferred)
AMUL………………………………. Cadbury…………………………………..
Nestle……………………………… Perfetti……………………………………
Others………………………………

14. If AMUL chocolates are not available in the shop, will you look for it in the next shop?
Yes…………… No……………

15. What would you like to be changed in AMUL chocolates?(please specify)

……………………………………………………………………………………………
…………………………………………………………………………………………

16. Please fill up something about yourself.

 Name: ……………………………………………..
 Sex: M/F
 Age: 10-15 15-25 25-35 35-45 45 and above

 Household income level:

 Below 12,000: ……………………….
 12,000-15,000: ……………………….
 15,000-25,000: ……………………….
 25,000 and above: ………………….
 Occupation: ……………………………..

THANKS FOR YOUR CO-OPERATION