Professional Documents
Culture Documents
1. PROJECT SYNOPSIS:
CHANNEL SALES
AMUL
MBA18E21
Confidential Report:
During one-month internship we have learn lots of things related to sales like- all about AMUL, basic
of product, communication with outlets, basic of sales. First week we learn about-How to sale in the
market and what is needed to sale in the market and after that we know some terms which is used in
Market like visiting every retailer sectorial wise, introduce about our new product, tell them about
product whichever they ask for and need to know about what they want to know about, etc.
All about internship company has given us a new product that is ice-cream cake namely as
Neapolitan ice-cream cake and they have given us a salesman individually and we visited every outlet,
and give them every detail and information about new product(Neapolitan) what they need to know
then took orders manually before this. I was not knowing about in what process this orders gets
generates. This orders took by an application which is of Amul company, in which once orders
imported from every outlet then it has to export to the distributor then distributor makes a bill which
includes what are the orders of outlets individually and once the order placed in every outlet then its
known as order generated we were doing the same thing with salesman and also got to know about
company’s policies about fridge, product, product replacement, claims, etc.
Amul was presented the Fifth IAA Leadership Award for this recognition at Mumbai on
Saturday last. The prestigious awards instituted by the IAA’s India Chapter recognize
excellence towards contribution in marketing, advertising and media sectors as well as
celebrate outstanding achievements of individuals and teams.
Amul is India's largest food brand with annual brand turnover of Rs 38,000 crore. It is a
cooperative milk federation of 36 lakh milk producers of Gujarat. The turnover of
GCMMF has registered a quantum growth of 238 per cent in the last seven years, which
implies an impressive cumulative average growth rate (CAGR) of 19 per cent during this
period, according to a GCMMF statement here on Tuesday.
Also, Amul has successfully quadrupled the income of its dairy farmers in the last seven
years, demonstrating the efficacy of its model in exceeding the country’s goal of doubling
farmer’s income in six years. Amul is not only synonymous with the best cooperative
model and farmer’s faith in cooperative structure but also with marketing and advertising
strategies it has adopted to make it the most preferred brands of dairy products.
GCMMF is currently procuring 180 lakhs litres of milk per day through 18,600 village
dairy cooperative societies.
MARKET SIZE
Gujarat Co-operative Milk Marketing Federation Ltd, which markets the Amul brand
of milk and dairy products, reported an 8% increase in turnover at Rs 29,220 crore
for the financial year ended March 31, 2018.
Its branded consumer products registered growth of 14% over the previous year,
with products such as cheese, butter, milk beverages, paneer, cream, buttermilk and
dahi having expanded 20-40%.
The group turnover of Amul brand has crossed Rs 41,000 crores which is 10%
higher then last year.
Based on the estimated growth in demand for Amul products and the future
marketing efforts, the company anticipate a 20% a compound annual growth rate in
the business in the next five years, chairman Ramsinh P Parmar said. “Amul plans to
enhance its milk processing capacity from the current level of 320 lakh litres per day
to 380–400 lakh litres per day in the next two years,” he added.
The 18 member unions of Amul federation, with a network of more than 36 lakhs
across 18,700 villages of Gujarat, procured on an average 211 lakhs litres of milk per
day in fiscal 2017-18, which was 20% higher than the year before.
Government initiatives
During the pre-independence era, public and private agencies dominated the dairy industry,
although government policy did not favour any one organizational form. Early efforts to
organize dairying along cooperatives line were made immediately after the enactment of the
cooperative societies Act, 1912. The present day anand pattern dairy cooperative trace its
origin to the establishment of a dairy cooperative in anand in 1946 under the directions and
guidance of Sardar Vallabhbhai patel. The dairy farmers of the then kheda district of Gujarat
organized themselves to form a dairy cooperative in order to directly undertake sale and
processing of milk collected from member dairy farmers of the district.
The government of India took some steps to improve the quality of milch animals and their
productivity through the key village scheme, launched as a part of the first five-year plan
(1951-56) and the intensive cattle development plan, launched under the third five-year plan
(1961-66). However, in the absence of a stable and remunerative market for milk, production
remained more or less stagnant. During the two decades between 1951 and 1970, milk
production grew by barely 1 per cent annually, while per capita milk availability declined by
an equivalent amount.
Road ahead
Gujarat Co-operative Milk Marketing Federation Ltd, which markets the Amul brand
of milk and dairy products, reported an 8% increase in turnover at Rs 29,220 crore
for the financial year ended March 31, 2018.
Its branded consumer products registered growth of 14% over the previous year,
with products such as cheese, butter, milk beverages, paneer, cream, buttermilk and
dahi having expanded 20-40%.
The group turnover of Amul brand has crossed Rs 41,000 crores which is 10%
higher then last year.
3.ABOUT THE COMPANY AND DEPARTMENTS
Anand Milk Union Limited or Amul is an Indian dairy company, based at Anand in
the state of Gujarat.
Formed in 1948, it is a cooperative brand managed by a cooperative body, the
Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly
owned by 3.6 million milk producers in Gujarat.
Amul spurred India's White Revolution, which made the country the world's largest
producer of milk and milk products.
The white revolution was spearheaded by Tribhuvandas Patel under the guidance
of Sardar Patel. As a result, Kaira District Milk Union Limited was born in 1946.
Tribhuvandas became the founding chairman of the organization and led it until his
death. He hired Dr. Verghese Kurien three years after the white revolution. He
convinced Dr. Kurien to stay and help with the mission.
Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is
credited with the success of Amul's marketing. Amul has become the largest food
brand in India and has ventured into markets overseas.
Vision
“Amul’s vision is to provide more and more satisfaction to the farmers, employees and
distributors”.
Mission
We at GCMMF (Gujarat co-operative milk marketing federation) endeavor to satisfy the
taste and nutritional requirements of the customers of the world, through excellence in
marketing by our committed team. Through co-operative networking, we are committed to
Highlights of 2017-2018
Average milk procurement was 30 lakh kg per day aggregating 109.39 crore kg for the
year.
Annual turnover increased by 10% to a historic Rs. 6256crore.
950 high pedigree calves were reared under the “calf rearing project” at sarsa farm.
7.87 lakh animals were provided veterinary care through 14 veterinary centers.
Production of 5.33 lakh MT cattle feed products and supplements, a growth of 14%
over last year.
Semen station, ode was awarded ‘A’ grade certificate by the government of India’s
CMU committee. 30 lakh semen dozen were sold in other states, a growth of66% over
last year.
13,209 cross bred cows were inducted in kaira milkshed through the model dairy farm
and mini dairy schemes.
With ISRO’s guidance, the first “remote sensing central” in india for estimating fodder
crops was established at amul dairy, Anand.
A new ice-cream extrusion line was installed at virar plan with a capacity to
manufacture 10,000 units per hour.
Introduced amul mobile parlor to cater to the demands of consumers in and around
anand town.
Established a modern chocolate plant having a production capacity of 1000 MT per
month.
1.45 lakh people visited amul dairy and the museum, including 398 foreigners from 44
countries.
History
Over seven decades ago the life of a farmer in Kaira was very much like that of
farmers anywhere else in India. His income was derived almost entirely from
seasonal crops. Many poor farmers faced starvation during off-seasons. Their
income from milch buffaloes was undependable. The milk marketing system was
controlled by contractors and middlemen. As milk is perishable, farmers were
compelled to sell their milk for whatever they were offered. Often they had to sell
cream and ghee at a throwaway price.
They were in general illiterate. But they could see that the system under which contractors c
their produce at a low price and arrange to sell it at huge profits was just not fair. This beca
noticeable when the Government of Bombay started the Bombay Milk Scheme in 1945. Milk
transported 427 kilometers, from Anand to Bombay. This could be done only if milk was paste
Anand.
After preliminary trials, the Government of Bombay entered into an agreement with
Polsons Limited to supply milk from Anand to Bombay on a regular basis. The
arrangement was highly satisfactory to all concerned – except the farmers. The
Government found it profitable; Polsons kept a good margin. Milk contractors took
the biggest cut. No one had taken the trouble to fix the price of milk to be paid to
the producers. Thus under the Bombay Milk Scheme the farmers of Kaira District
were no better off ever before. They were still at the mercy of milk contractors. They
had to sell their milk at a price the contractors fixed. The discontent of the farmers
grew. They went in deputation to Sardar Patel, who had advocated farmers’ co-
operatives as early as 1942
Sardar Patel reiterated his advice that they should market their milk through a co-
operative society of their own. This co-operative should have its own pasteurization
plant. His advice was that the farmers should demand permission to set up such a
co-operative. If their demand was rejected, they should refuse to sell their milk to
middlemen.
Sardar Patel pointed out that in undertaking such a strike there should be some
losses to the farmers as they would not be able to sell their milk for some time. If
they were prepared to put up with the loss, he was prepared to lead them. The
farmers’ deputation readily accepted his proposal
GCMMF
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organization. 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 distribution system structure
4.PRODUCTION PROCESS:
Collection of Raw Milk:
Raw milk is collected from different co-operatives of Gujarat. About
12,22,000 liters of raw milk is collected per day. Before this milk is sent
to the laboratory for testing the FAT & SNF proportion, the milks
separated from the raw milk. The milk is taken from the chilling centers to
Collection of Raw Milk Raw milk is collected from difference co-operatives
of Gujarat. About 12,22,000 liters of raw milk is collected per day. Before
this milk is sent to the laboratory for testing the FAT & SNF proportion.
SEPARATION PROCESS:
Separation Process Separator machine separates two kinds of products,
skimmed milk and cream, through channels. There are 100disks fixed in
separator machine, which revolve at 5000rpm (revolution per minute). It
is taken to the tanks, which has the capacity of 20000 liters. Whenever
the milk is needed from the tank, it is tested in the laboratory and the
deficit proportion FAT is added by mixing cream. This process continues
for 24 hours.
QUALITY CHECK:
Pasteurized milk is sent to the quality Assurance laboratory of the dairy
plant. Within 14 seconds the FAT & SNF proportion is received regarding
30 lack liters of milk. The total investment put into the lab by the dairy
plant is Rs. 6 crores. The laboratory only checks and analyses the powder,
milk and ghee. There is a separate ice-cream analyzing laboratory.5).
Packaging Process After the milk is sent
for the packaging to the milk packing station in the dairy plant. In the
milk packaging stations there are huge pipelines and behind them there is
prolific machine from which the material to pack milk comes out. From
each of these 12 machines 100 pouches are packed in one single minute.
STORAGE:
Then the milk is sent to the cold storage of the dairy where the milk is
stored until it is dispatched. Here the milk is stored is temperature
ranging from 5-degree c to 10-degree c, it is maintained with the help of
exhaust fans having silicon chips. About 40000 liters of milk is
dispatched from the cold storage of the dairy plant every day. The
damaged pouches are kept aside and the milk is once again put to the
storage tank.
5.Internship summery
During one-month internship we have learn lots of things related to sales like- all about
AMUL, basic of product, communication with outlets, basic of sales. First week we learn
about-How to sale in the market and what is needed to sale in the market and after that we
know some terms which is used in Market like visiting every retailer sectorial wise, introduce
about our new product, tell them about product whichever they ask for and need to know
about what they want to know about, etc.
All about internship company has given us a new product that is ice-cream cake namely
as Neapolitan ice-cream cake and they have given us a salesman individually and we visited
every outlet, and give them every detail and information about new product(Neapolitan)
what they need to know then took orders manually before this. I was not knowing about in
what process this orders gets generates. This orders took by an application which is of Amul
company, in which once orders imported from every outlets then it has to export to the
distributor then distributor makes a bill which includes what the order of outlets individually
and once the order placed in every outlets then its known as order generated we were doing
the same thing with salesman and also got to know about company’s policies about fridge,
product, product replacement, claims, etc.
In the first week my area is the waked and sanghvi in which my work is to pitch a retailer to
buy the new product of ice-cream cake (neapolitan), in the waked area on first day I took 14
orders of Neapolitan ice-cream cake out of 9 outlets named as prem sagar super shopee (1),
jeevan medico (1), Prakash super shopee (1), M/s. wellness healthcare and beauty center
(2), uttam sweets (1), Kohinoor mithai mall (2), green chemist (1), metro chemist(1),
santkrupa enterprises(2), vithai dudh dairy(2).
On second day I went to sanghvi area and their I took 9 orders of Neapolitan ice-cream cake
which are named as Krishna mini market (2), Krishna sweet (1), rajendra bakery (2), new
vijayshree (2), divya dry fruits (1), dajaiba vadapaw center (1).
And again went to waked area on third day in this first week I promoted product in this two
area in this first week I took around 32 orders of Neapolitan ice-cream cake
and on second week I got another area with another salesman in this area that is named as
pimple saudaghar, pimpri and kalewadi in which we have to take not only ice-cream cake’s
order but also we have to take another ice-cream that is known as impulse product which
includes cup, con and stick.
In which cup includes:
Vanilla Royale 30ml, 65ml, 100ml
Keser Pista Royale 100ml
Strawberry 65ml, 100ml
Afghan Dry Fruit 100ml
American Nuts 100ml
Rajbhog 100ml
Zafrani Badam Pista 100ml
Kaju Draksh/Kis Mis Kaju 100ml
Butterscotch Bliss 100ml
These are the impulse product which we sale in the market area of pimple saudaghar,
pimpri and kalewadi in this three area I took around 29 orders of Neapolitan ice-cream cake
so in the 12 days I took almost 50+ orders of Neapolitan ice-cream cake because of running
celebrating times like Christmas and last date of year that is 31st after this sale decrease by
75%. That means order were around 10 to 15 after 31st dec 2018 till 18 jan 2019.
6.Project description
Methodology
The American marketing association defines marketing research as follows:
Marketing Research specifies the information requires addressing these issues, designing the
method for collecting information, managing and implementing the data collecting process,
analyzing the result and communicating the findings and their implementations. In other
words Marketing Research
Research design
marketing research uses the following types of research designs:
(I)Based on questioning:
Qualitative Marketing Research- generally used for exploratory purposes- small number
of respondents
not generalizable to the whole population
statistical significance and confidence not calculated
examples including focus groups, in-depth interviews, and projective techniques.
(II)Based on observations:
Target population
Amul has adopted several marketing strategies to market its products in the
consumer market. Its above-the-line marketing is less compared to its below-the-
line policy for advertising its products because it does not want to spend excessively
on marketing.
It is an established brand with very heavy footfall. The brand advertises via radio,
television, newspapers, magazines, hoardings, billboards through its longest and
unique brand ambassador and advertising character The Amul Girl. Amul Ice
Cream does not believe in other celebrity endorsements as its poster girl is the best
advertisement tool according to the brand as well as media reports
Sample frame
The sample was drawn by using Random Sampling Techniques, as researcher needs to fill
questionnaire from Retailer. Apart from that, Random Sampling Techniques are more
economical than any other sampling technique.
Target population includes, Retailer, Restaurant, Parlours, etc.
Sample size
A sample size of 100 was taken out of 180 because they are Amul product buyers. The
samples were randomly selected from the population for the research work.
Data collection
The primary information was collected by face-to-face and direct interviews with there tailers
and the customers. They provide the relevant information regarding the profile of the
company as compared to the other company in the Indian market. The secondary sources of
information were various web sites of the companies, newspapers & magazines.
Data analysis
The data collected was carefully analyzed. The research and analysis of the information has
been done on the basis of various sales and marketing strategies adopted by the company
during its tenure.
7.Observation
The key observations are as follows:
1.The replenishment of orders is about 64% which is average.
2.About 40% of the Amul parlour and retailers says that often damaged materials came to
them
3.The schemes/ discounts are often given by distributors to parlours and retail stores.
4.The availability and product quality of Amul products is good
5.The satisfaction level of customers of Amul parlours and retail stores is good.
6.The replacement of defective material is poor and also the process is very complicated.
7.The damage material often came about 79% which is due to improper handling by
distributors.
8.Findings:
1.Most of the Amul parlours are not interested in running them for longer period due to very
low margins.
2.The sales of Amul product is average round the year.
3.The full varieties of Amul products are almost as par customers need.
4.Retailers want more margins from Amul.
5.People were highly satisfied with product quality of Amul.
6.Distributors could not provide all type of varieties because of less stock.
7.Due to negligence of the company the customers of Amul are shifting towards other
company
8.More preference should be given to parlours and outlets as within the prescribed 1 km
radius other retailers also provide Amul products.
This industry is most competitive industry; there are large numbers of competitors in this
field. In such condition a small loop may create a big problem. The condition is made tougher
by Gowardhan, which is recently dominating in this industry, so only a detained study and
fully fledged effort can help in good sales to capture the market. Four things are necessary to
improve the sales in the sub city:
1.Service
2.Advertisement
3.Replacement policy
4.Proper distribution
5.Special attention
Service
It is the critical factor in the success of any brand. There is no doubt that Amul services are
good but it needs little more improvement to completely capture the market.
Advertisement:
This is the most important factor that affects both the sales as well as the consumers‟
attention. Amul has to take aggressive advertising centered specially for its parlours and
outlets.
Replacement policy
Amul is already blamed for poor replacement policy; it has to give certain kind
of replacement policy to make its product more acceptable to the parlours and outlets.
Distribution
The replenishment is average and often damaged material came on account of improper
handling by distributors due to this parlours find it difficult to retain the customer. The
number of distributor operating in an area also very low in number which also adds to
improper distribution.
Special attention
The priority should be given to Amul parlours and outlets as compared to other retailers who
also keep products of Amul. Many a times it happens that outlets are not having the product
but other retailers are having the product.
9.Conclusion:
On complete analysis of the Questionnaire, it is concluded that Amul parlours has good
reputation in the market and it has 100% satisfied customer but lack proper distribution and
marketing. Very few distributors are in a particular area which not only is resulting in
improper distribution but also resulting in monopoly of these distributors. The position
of both the parlours and outlets can be uplifted in the market by sound marketing and proper
distribution channel which results in delivery on time. Amul has a good reputation and name
because of existence in the market for so many years
especially through the name of “Amul Butter”.
Within short span of time Amul has launched so many products which are still lacking
promotion and availability. Amul has customer driving power but is not able to retain
customer due to unavailability of the newer products.
It‟s been great experience working with Amul and doing
promotional activity for new
products of “Amul
Thank you