Abstract

The dairy industries companies run mainly on the factors such as availability, service
frequency, affordability, taste and marketing. Availability is plays a vital role because
purchasing power is depend upon availability of that product, in case distributors and retailers
service matter a lot. Retailing includes all the activity in selling goods or service directly to
the customers or personal non business use .

A retailer or retail store is any business enterprises whose sales volume comes primarily from
retailing. Retailers are the part of milk marketing channels and perform the work of moving
goods from producers to the customers. It overcomes the time, place and possession gap that
separates goods and service from those who needs or wants them.

Retailers as member of marketing channel perform a number of key functions. Some

functions (physical, title, promotion) constitute a forward flow of activity from the company
to the customers; other functions (ordering and payment) constitute a backward flow from
customers to the company. Still others (information, negotiation, finance and risk taking) in
both directions. The project delves into the workings from the distribution aspect of an
FMCG organization, in detail. AMUL, being an FMCG company, attaches a lot of
significance to the distribution aspect of its business.

The distribution channel of AMUL holds a lot of potential in affecting the demand or sales of
AMUL products through delivery on time, delivery of variety of products, the retailer
friendliness of the policies being set by the distributors and equitable distribution of products
to all the retail outlets in a particular region, to name a few. So, In order to plan retail
coverage we map out the positions of Amul outlets, Amul parlors, and competitor’s outlets.

This project was carried out in Pune city. For analyzing and presenting information that is
tied to geographical location, we divided the city in different wards. By analyzing
geographical representation and sales data with spatial distribution Amul outlets,
competitor’s outlets and the density of others in an area, we identify unexplored area and plan
location outlets to increase its market penetration. Using such research we can ascertain the
quality and depth of retail penetration in specific area.
Objective of the Study

The Primary objective of study was to find size of retail network of Amul Taaza and Amul
Gold in specific areas of Pune city. In the study my intention was go through the retail
network of Amul dairy milk to know retailers view about supply chain of Amul dairy milk, to
know the complaints of Amul dairy milk and to find the suggestions from retailers for more
penetration of Amul dairy milk in Pune region.

The secondary objective was to find customer response towards Amul milk. My aim was to
go through the customers to know the interest of purchasing & using Amul milk. Basically
the study was for the demand of Amul milk among the customers. And also to know the
complaints on Amul milk.

Research type was descriptive. The research was done through retailers. I have collected the
primary data through questionnaire which was filled by retailers, customers. Questions were
both open and close ended. The secondary data was collected from website www.amul.com.
Sampling done is nonprobability sampling. The type of sampling method was Judgment
sampling

In Pune region there are around more players in of liquid milk exist. Those are like Chitale,
Katraj, Krishnai, Mahanand, Amul, Warna, and many other local brands. As per the findings
CHITALE is the Market leader and having more market share. Awareness of Amul dairy
milk among the retailers as well as consumers is average but acceptance is low. The sale is
totally depends on the retailers.

The study carried out in Pune city so its scope is mainly limited to Pune city.

It gives information about the size of the retail network.

It gives information about the services given by distributor to their retailer.
It gives information about the competitors’ products.
It will serve consumer in better manner.
It provides suggestions to the company to improve their products sales.
It gives information about the sales promotion activities to improve the milk sale
Amul Secret Of Success

The system succeeded mainly because it provides an assured market at remunerative prices
for producers' milk besides acting as a channel to market the production enhancement
package. What's more, it does not disturb the agro-system of the farmers. It also enables the
consumer an access to high quality milk and milk products. Contrary to the traditional
system, when the profit of the business was cornered by the middlemen, the system ensured
that the profit goes to the participants for their socio-economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a pattern and
model for emulation elsewhere.

Amul has been able to:

Produce an appropriate blend of the policy makers farmers board of management and the
professionals: each group appreciating its rotes and limitations.

Bring at the command of the rural milk producers the best of the technology and harness its
fruit for betterment.

Provide a support system to the milk producers without disturbing their agro-economic
systems.

Plough back the profits, by prudent use of men, material and machines, in the rural sector for
the common good and betterment of the member producers.

Even though, growing with time and on scale, it has remained with the smallest producer
members. In that sense, Amul is an example par excellence, of an intervention for rural
change.

The Union looks after policy formulation, processing and marketing of milk, provision of
technical inputs to enhance milk yield of animals, the artificial insemination service,
veterinary care, better feeds and the like - all through the village societies. Basically the union
and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION
LIMITED), a name which suggest THE TASTE OF INDIA. Amul (Anand milk union ltd.) is
based on four hands, which are coordinated with each other. The actual meaning of this
symbol is co-ordination of four hands of different people by whom this union is at the top
position in Asia.

First hand is of farmers, without whom the organization would not have existed.
Second hand is of processors, who process the row material (milk) into finished goods.
Third hand is of marketer, without whom the product would have not reached the customers.
Fourth hand is of customers, without whom the products would have not carried on.
Observation Findings

• Retailers are not interested because they don’t have storage facility but if company provides
them such facility they will be sale Amul milk.

• Because of low profit margin almost all retailers are not interested in Amul milk selling.

• The 250 ml and 5 Ltr milk pouch are no available to the retailers for selling.

• On question, why retailers are not interested in selling of Amul milk, it is found they were
not happy with margin, availability and replacement of leak pouches.

• Retailers were selling different brands. Because they were able to receive more margin from
non popularized brand that they could not from well known brands.

• All retailers get Amul milk from company selected distributors.

• Measurable amount of retailers were not happy with the distributors, because of frequent
change in distributors and late delivery of milk.

• All retailers were familiar with sales promotion activities undertaken by Amul. But more of
the activities were not communicated by distributors. So it shows that distributors are taking
the advantage of such activities.

• Some questions were asked with view to convert retailers into distributors, but due to low
margin they denied that.

• Retailers were not interested to start APO because to start APO one required large amount
investment i.e. near about 2 Lakhs and with this it is mandatory to sale only Amul products,
so most of the retailers did not show interest in APO.

• I found that customers were complaining about the packaging especially packaging date
because Amul do not print packaging date on pouch.

• When question came to retailers ratings towards Amul milk rating most of the most
respondents complaining about profit margin and packaging date.

• During campaign it is found that the mindset of consumers towards Chitale milk is very
high and hence it has become a milk maket player. As from the sales chart it is clear that the
sales of Chitale pouch milk is 50% more then Amul pouch milk.

• Retailers also demand for the replacements for the damage due to the spoilage of milk that
they have to bear when the Amul milk gets spoiled after the purchase.
Reference :

www.amul.com.
www.marketresearch.com
www.dairy.com.
wwww.wikipedia.org