Professional Documents
Culture Documents
DISSERTATION REPORT
ON
SUBMITTED BY:
SYED SALMAN ALI
MBA IV SEMESTER (2009-10)
UPTU ENROLMENT- 0839970028
1. ACKNOWLEDGEMENT
2. CERTIFICATE
3. DECLARATION
4. EXECUTIVE SUMMARY
7. PROFILE OF GCMMF
8. FINDINGS,DATA COLLECTION
AND ANALYSIS
9. CONCLUSIONS
10. SUGGESTION
12. BIBLIOGRAPHY
SUMMARY OF THE PROJECT
Objectives of research:
• Understanding the 4 P’s of marketing in relation to Amul Kool
(flavored milk).
RESEARCH DESIGN
A research design is the overall plan on programme of research. It
includes an outline of what the investigator will do from writing the
hypothesis and their operational implications to the final analysis of
data.
SAMPLE DESIGN
It is definite plan for obtaining a sample from a population dealing
with any type of flavoured milk. The type of sampling used is random
sampling used is random sampling design (RSI). The respondent in
the sample include flavoured milk consumers and retailers.
PREPARING THE RESEARCH DESIGN
The research problem having been formulated in clear terms, the
researcher will be required to prepare a research design, i.e. he will
have state the conceptual structure within which research would be
conducted. The preparation of such design facilities research to be as
efficient as possible yielding maximum information. In other words,
the function of research design is to provide for the collection of
evidence with minimal expenditure of effort, time and money. But how
all these can be achieved depends mainly on the research purpose.
Research purposes may be grouped into four categories, viz.,
i. Exploration
ii. Description
iii. Diagnosis, and
iv. Experimentation.
There are several research designs, such as, experimental and non-
experimental hypothesis testing. Experimental designs can be either
informal designs (such as before-and-after without control, after only
with control, before-and-after with control) or formal designs (such as
completely randomized block design, Latin square design, simple and
complex factorial designs), one of which the researcher must select
for his own project.
DETERMINING THE SAMPLE DESIGN
All the items under consideration in any field of inquiry constitute a
‘universe’ or ‘population’. A cockpit enumeration of all the items in
‘population’ is known as a census inquiry when all the items are
covered no element of chance is left and highest accuracy is
obtained. But in practice this both may be true. Even the slightest
element of bias in such an inquiry will get larger and larger as the no.
of observation increases. Moreover, there is no way of checking the
element of bias or its extent except through a re-survey or use of
sample checks. Besides, this type of inquiry is not possible in practice
in many circumstances. For instance, blood testing is done only on
sample basis. Hence, quite often we select only few items from the
universe for study purpose. The items so selected constitute what is
technically called a sample.
The researcher must decide the way of selecting a sample or what is
popularly known as the sample design. In other words, a sample
design is a definite plan determined before any data are actually for
obtaining a sample from a given population. Samples can either be
probability samples or non-probability samples. With probability
samples each element has a known probability of being included in
the sample but in non-probability sampling the researcher is not
allowed to determine this probability. Probability samples are those
based on simple random sampling, stratified, cluster/area sampling
whereas non-probability samples are those based on convenience
sampling, judgement sampling and quota sampling techniques. A
brief description of the sample designs is as follows:
SIMPLE RANDOM SAMPLING
After the data have been collected, the researcher turns to the task of
analyzing them. The analysis of data requires a number of closely
related operations such as establishment of categories, the
application of these categories to raw data through coding, tabulation
and then drawing statistical inferences. Coding operations usually
done at this stage through which these categories of data are
transformed into symbols that may be tabulated and counted. Editing
is the procedure that improves the quality of the data for coding. With
coding the stage is ready for tabulation. Tabulation is a part of the
technical procedure that improves the quality of the data is put in the
form tables.
SECONDARY DATA
It has been collected with the help of Internet and oral discussion. It is
used for a brief history of liquid milk industry.
SAMPLING DESIGN
It was a non-probability convenience sampling.
THE INDIAN MILK INDUSTRY
INTODUCTION
The basic strength of the Indian economy is agriculture on which
seventy percent of the population depend for their livelihood. And a
part of it is the Indian dairy industry.
At the heart of the Indian dairy revolution stands the Indian farmer
with two to five animals who produces some of the cheapest milk in
the world by feeding his animals’ mostly agricultural waste like straw.
If he expands his operations and herd and starts buying costly feed
he will lose his competitiveness. So how will milk production rise
without raising costs? By taking the cooperative dairy revolution to
where it is still weak, the east and north-east of the country. This will
help fight poverty there, raise their own purchasing power for milk and
keep feeding the dairy sector with a rising supply of liquid milk at the
globally competitive Indian costs for another ten years. If you wish to
run your business professionally and competitively you have to first
benchmark your costs and stabilised quality at a very high level.
That’s the tough part. Then you hire a brand consultant, evolve a
brand strategy and get marketing experts to run the promotions and
do the selling. The key elements are an expanding supply of cheap
milk and attention to quality.
Address:
Gujarat Cooperative Milk Marketing Federation Ltd., Amul Dairy Road
Anand, Gujarat, India 388 001, Tel: +91-2692-241621 & 23
Web : www.amul.com
COMPETITORS OF AMUL :
MADHUSUDAN
MOTHER DAIRY
AMRIT FOOD
GOPALJEE(G.K.DAIRY)
UMANG(J.K.DAIRY)
PARAM
RAMLAL
MADHUBAN
AMUL KOOL
SUGAR
TOND MILK
(15%)
SOLID NOT FAT
FAT
FAT
VITAMINS C
CARBOHYDERATE
CALCIUM
PROTEINS
IRON
LACTOSE
AMUL IN DELHI:
Delhi National Capital Region (NCR), among the biggest milk markets
in the country, is dominated by Mother Dairy currently. Amul and
NDDB's non-compete agreement has prevented the former from
launching its liquid milk in the Delhi market till 2003.
With the non-compete agreement having run out this year, Amul fresh
milk was launched in Delhi last month in two variants — full cream
and toned — priced at par with that of Mother Dairy at Rs 18 and Rs
14 per litre, respectively. Amul is bringing its milk into Delhi through
one of its district co-operative unions, the Gujarat-based Mehsana
Union. The milk will be packed at Kwality Dairy in Ballabgarh, leased
out to Amul for this purpose. Amul will use the same distribution
network as butter and cheese to retail Amul Milk in Delhi. According
to Mr R.S. Sodhi, Amul’s marketing head; Amul will not use skimmed
milk powder in its milk.
In just a fortnight, Amul milk has taken the Indian capital by storm,
rapidly eating into the market share of long time players like Mother
Diary and Paras. Who cares if it was rivalry or business strategy that
made the Gujarat Cooperative Milk Marketing Federation (GCMMF)
enter the capital with Amul milk to take on state-owned Mother Dairy
in its home turf? From the response, Delhiites seem to be lapping up
Amul’s pouches of full cream and toned milk in unimagined
quantities.
“In two months our target is to raise supplies to 200,000 litres per
day,” he added. The official admitted that the idea of entering the
Delhi market had originated in August when the state and central
governments approached the GCMMF to help tide over an acute milk
shortage. “Having helped to bridge the demand supply gap, we
decided to come in with fresh milk supply, which does not contain any
milk powder and is creamier and of richer quality compared to most
other milk supplied in the city because it has more fat and solid non-
fats like protein and minerals,” said Khanna. At over five million litres
a day, Delhi is one of the biggest markets for milk in the country. Of
the supplies from the organised sector, Mother Dairy has been the
undisputed leader with 1.8 million litres daily sales through package
and vending machines. The other big names are Paras, Param,
Gopaljee and Umang. Now Amul milk has arrived to eat into the
share of other players in the market on the strength of its quality and
brand equity.
PROFILE OF
GCMM
GCMMF: An Overview
AMUL KOOL :
‘Nature’s finest flavoured milk is here’
GCMMF launched Amul Kool in Delhi and NCR in 2004 to cater the
demand of consumers and to fill in the gap between demand and
supply. It reaches consumers within hours of it being packed at the
right temperature to ensure that it retains all its natural goodness.
Quality Standards
Cheese Range:
Milk Powders:
Fresh Milk:
INDUSTRY STANDING
• Customer Orientation.
• Commitment to Producers.
• Belongingness.
• Co-operation.
• Pride in Organisation.
• Employee Satisfaction.
• Integrity.
• Excellence.
• Leadership.
• Quality..
MISSION STATEMENT
GCMMF shall also create markets for its products in the neighbouring
countries.
Facts on 30th Annual General Body Meeting
MILK PROCUREMENT
Total milk procurement by Member Unions averaged 51.13 lakh
kilograms per day, a marginal decline from 52.35 lakh kilograms
per day, achieved in 2002-2003. However, the good monsoons
experienced during last year and the better procurement prices on
offer are expected to encourage higher milk production and
procurement in the current year.
SALES
DISTRIBUTION
From the year 1994, our unions have been engaged in the
practice of third party validation of its practices. Since then, we
have been awarded the ISO 9002:2000, the HACCP, the ISO
14001 and similar marks of our excellence in milk procurement
and processing. The importance of standardization of our village
society election processes lies in their instrumentality in throwing
up genuine and visionary leaders. It determines the future of the
cooperative movement.
FINDINGS,DATA COLLECTION AND
ANALYSIS
8%
26% 1
LOOSE
2
3
66%
BRANDED
NO, 35%
1
2
YES, 65%
ANALYSIS
• We found that people are aware of Amul’s flavoured milk and
Amul has good reputation among the consumers. GCMMF Ltd.,
is considered to be one of the best companies in the dairy
products category in FMCG sector.
• When GCMMF Ltd declared that it is going to launch flavoured
milk in Delhi the consumers accepted it in leaps and bound.
People perceive Amul as the triumph of indigenous technology.
• People perceive Amul’s dairy product as Nature’s perfect food
for the health of their family.
P.O.P, T.V.ADD.
9% 25%
Friends,
23%
NEWSPA BANNER
Radio,
PER, S 23%
5%
15%
ELAICHI : 93
ROSE : 42
OTHER : 15
OTHER
9%
29% 1
2
3
62%
ROSE
ELACHI
your choice?
A. Amul : 170 , B. Gagan : 185
c.Nestle : 105, D. Other :40
other40, 8%
Amul 170,
Nestle, 105, 34% 1
21% 2
3
4
Gagan 185,
37%
Only rank cannot help to winning the market. While in winning the
market a Company needs to have good quality as well as availability
and the right price supported by proper advertisement support and
since Amul is fulfilling these requirements it is the best in dairy
products since 1946. That’s why after launch of flavoured milk in the
short period of time Amul is rising progressively to become the
market leader in the area covered those who tried Amul Kool once
they became the permanent customer of Amul Kool. 34% or 170
consumer says that Amul Kool is number 1 and there is good
amount who says that Amul Kool is number2 brand {140}. But till the
survey Gagan has the highest percentage 37% and Nestle is at third
place.
8. What do you look while buying flavoured milk? (I, II, III, IV,
V)
What factors do you consider before purchasing your
brand?
Availability : 160
Quality : 130
Taste : 95
Price : 60
Purity : 55
PURITY
11% AVAILIBILITY 1
12% 32%
PRICE 2
3
4
TASTE19%
5
26%
QUALITY
Others, 10%
1
Retailers,
10% Family, 40% 2
3
Advertisement
4
, 20%
Brand Name, 5
20%
When we ask to the consumer about their buying decision those who
said that their decision of purchase for a particular brand of milk is
influenced by members in the family were 40% and 20% said that
they are influenced by brand name.
Similarly 20% of our respondents said they were motivated by
advertisement and the claims made by companies.
Retailers influenced 10% and others factors 10%.
Regarding family we found that usually mothers and wives usually
decide which brand to purchase according to their affinity for a
particular taste.
Dairy
Shop,
18% Confection 1
ery, 34%
2
Booths, 3
20%
Home 4
Delivery,
28%
Cant say,
24%
1
2
Yes, 76%
there was surprising answer. Amul kool has covered the area in
the short span of 10-12 months.
78%people say that they find the Amul Kool available from
where purchases the milk which means Amul distribution is
good.
But much work is yet to be done to penetrate even deeper into
the market and making new customers.
The quantity of Amul kool consumed generally depended on the size
of a family and the frequency of intake and the various types of
usage. Students who lived in hostels and private flats used Amul Kool
regularly for energy .
Both
18%
1
Afternoon
45% 2
3
Evening
37%
that of CADBURY.
Add more vitamins to Amul Kool and make adds to propagate
this message.
Should keep regular check on taste because it is a key factor in
21yrs&
more, 7% 1 - 5 yrs,
11% 1
16-20yrs,
2
17%
6 - 10 yrs, 3
30% 4
11-15 yrs,
5
35%
35
% of the retailers are doing business from 11 to 15 years.
YES
42% 1
NO 2
58%
3.If selling Amul, since how long you are selling Amul Kool?
Almost all the retailers who kept Amul Kool were keeping it
since its launch . They were satisfied with the growing demand
of Amul Kool and said it showed a fair retention power among
consumers. Quite a good no. of consumers tried Amul Kool and
became loyal to Amul Kool.
Yes: 24 1
2
No : 76 No
76%
Excellent
Poor 6%
15% 1
V.Good
2
21%
3
Fair
27% 4
Good
5
31%
A. highest
C.Not
margin 1
specific
41% 2
48%
3
B.Old
stock 11%
41% of the retailers said that they push the brand which has the
highest margin. Retailers are chiefly considered with margin
and goods and commodities which can be sold.
11% of the retailers said that if any customer doesn’t give any
specific choice of brand then they give the brand which is of the
old stock.
48% of the retailers said that this is not specific and they give
any brand.
10. If not selling Amul Kool, then will you like to keep them?
Yes : 92
No : 108
Yes
46% yes
No no
54%
Thus we see that 46% of the shopkeeper who were keeping not
keeping Amul Kool said they are interested in keeping Amul
Kool.
54% of the retailers said they are interested because of poor
demand and of non-availability of refrigerators and of the risk
involved in Amul Kool business because unsold stock is not
returnable.
11. What all you look while keeping Amul Kool on your shop
please rank? (I,II,III,IV,V)
A. Margin : 68
B. Service : 40
C. Behaviour of sales man : 08
D. Brand Name : 06
E. Trade scheme : 06
F. Consumer Demand : 72
Margin
36% 34% Service
Sales Man
Brand Name
3% Trade Scheme
20% Consumer Dem and
3%
4%
Thus one can see that the main thing which the shopkeepers
are concerned is margin. 34% of the retailers said that for them
margin is the main concern and they look margin before
keeping any brand in their shop.
20% said that for them service of the distributor, his punctuality
in coming to the shop in morning and evening on time is the
topmost concern.
36% said that for them consumer demand for a particular
product or brand is the main concern and they keep anything
for which there is consumer demand.
Salesman behaviour, brand name, trade scheme stood at 4%,
3%, 3% respectively.
Peter Drucker has observed that company’s first task is “to create
customers”. Earlier GAGAN was the pioneer of the market. At
present condition, we cannot say GAGAN is the unchallengeable
market leader, and fully successful to create customers. Other
unorganized sector have made their potentially widely. They are able
to position successfully in the current by attracting potential.
GCMMF Ltd. and its Amul Kool are not doing as well in the
Ghaziabad market compared to Delhi market though they have a
good marketing strategy followed by strong marketing peoples. In this
period of 8 weeks I scanned the flavoured market of Ghaziabad.
I found that the brand awareness of Amul Kool is not to the point or
as expected to be in Ghaziabad.
Amul must also come up with booths like that of Mother Dairy to
reduce costs and deliver quality and fresh Amul kool to
customers.
Strength
Amul has well built image of excellence and innovation
supported of triumph of Indian dairy technology.
It has well logistic and channel network.
Well trained and educated marketing staff.
Quality of milk is good and it doesn’t use powder in making
milk.
It ensures that only cow and buffalo milk is used by collecting
milk from milk cooperatives of Gujrat.
Demand is absolutely optimistic.
Abundant availability of raw material.
Weakness
Retailers say they are not satisfied by trade schemes.
Equal importance is not given by distributors to all retailers and
confectionary stores. They neglect some retailers.
All is not well with distribution in Ghaziabad.
With so many companies in this industry, competition is
becoming tougher day by day. But then competition has to be
faced as a ground reality. The market is large enough for many
to carve out their niche.
Amul is not able to replace its expired items but the competitors
are doing so.
Opportunities
“Failure is never final, and success never ending.” Dr. Kurien bears
out this statement perfectly. He entered the industry when there ere
only threats. He met failure head-on, and now he clearly is an
example of ‘never ending success’! If dairy entrepreneurs are looking
for opportunities in India, the following areas must be tapped:
Value Addition: There is a phenomenal scope for innovations in
product development, packaging and presentation. Steps can
be taken to introduce Amul Kool with addition of essential extra
elements for health conscious people.
By increasing the margin to the retailer Amul Kool can reach to
the more retailers as well as consumers.
By solving the replacement problem it can maximize the
attention of retailers about selling the product.
Threats
Entry of MNC’s is a serious threat to Amul Kool and other
Indian companies.
Modifying the distribution channels is a challenge for Amul
Kool.
To acess in the tribal area and grow the demand in this area is
also a threat for the Amul.
I have found that the market share of amul kool is not as well as
other competitors.due to some ignorance it is not doing well as
it should be in the current market secnerio.
It should adopt some trend which I have feeled in the market which
can increase the sale of amul as well as amul kool,are as follows:-
at first,it should modify it distribution channels which are not doing as
it should be.
1. Advertisement & sales promotion should be conducted by the
company so that the consumers can be more attentive to the
product.If it is possible than sales can be increased.
7. The company should cover the retailers who are far from the
main road or market place,now a it is not covered by the
salesman or the staffs.It can grow up the market share,
because the competitors cover it very well.
Since the results have been drawn on the basis of the information
provided by the respondents, chances of error might have crept in.
BIBLIOGRAPHY
MAGAZINES:
• Business Today
• Business World
NEWSPAPER:
• Economic Times
• Business Standard
• The Financial Express
BOOKS:
• Research Methodology by C.R. Kothari
• Consumer Behaviour by Gupta and Pal
• Marketing Management by Philip Kotler,
WEBSITES:
• www.amul.com
• www.parasdairy.com
• www.motherdairy.com
• www.rediff.com/money
• www.ask.com
• www.google.com
• www.domain-b.com
DECLARATION
Date:
----------------------------
(Syed Salman Ali)