SALES AND DISTRIBUTION MANAGEMENT OF

AMUL

By Group 4

AMUL
Type Industry Cooperative Dairy

Founded Slogan Key people Employee -

1946
The Taste of India Dr. Verghese kurien Marketing arm: 735

KEY FACTS
AMUL means priceless in Sanskrit Amoolya Brand name managed by an apex cooperation organization GCMMF

Worlds biggest vegetarian cheese brand

Worlds largest pouched milk brand Largest food brand in India Spurred the white revolution in India

GCMMF: An Overview
largest food products marketing organization of India average collection is 7.5 million litres of milk per day Members
13 district cooperative milk producers Union

No. of Producer Members

2.79 million

No. of Village Societies

13,328

Total Milk handling capacity

11.22 million liters per day

PRODUCTS
Dairy
UHT Milk Range: Amul Taaza 3% fat Milk Amul Gold 4.5% fat Milk Amul Slim-n-Trim 0% fat milk Amul Chocolate Milk Amul Fresh Cream Amul Snowcap Softy Mix Milk Powders: Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Milk Powders: Sagar Tea and Coffee Whitener Infant Milk Range: Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above)

Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener

Amulspray Infant Milk Food

PRODUCTS
Frozen
Amul Ice-creams: Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)

Nut-o-mania range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)
Utsav Range (Anjir, Roasted Almond) Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate) Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant) Sundae Range (Mango, Black Currant, Chocolate, Strawberry) Millennium Icecream (Cheese with Almonds, Dates with Honey) Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi) Cool Candies (Orange, Mango) Cassatta Tricone Cones (Butterscotch, Chocolate) Megabite Almond Cone Frostik - 3 layer chocolate Bar Fundoo Range - exclusively for kids SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)

PRODUCTS
Frozen
Cheese Range: Amul Processed Cheese Spread

Amul Mozarella Cheese

Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Utterly Delicious Pizza

Paneer Range: Amul Malai Paneer Amul Fresh Paneer Breadspreads: Amul Butter Amul Lite Low Fat Breadspread

PRODUCTS
Chocolate & Confectionery: Amul Milk Chocolate Amul Fruit & Nut Chocolate Amul Eclairs Brown Beverage: Nutramul Malted Milk Food Pure Ghee: Amul Pure Ghee Sagar Pure Ghee

Fresh line

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix

Objective of project
To study and analyze the sales strategy of Amul. To study and analyze the distribution strategy of Amul . To analyze the effect of distribution strategy on sales of Amul product.

Methodology
Structured interview
With company officials and distributors

Questionnaire
Open ended Questions including reasons

Type of research
Exploratory Research Descriptive Research

Sample Size
13 distributers of Patna

Method of survey
Personal interview

SALES TEAM

RANK

RESPONSIBILITY

RANK
MD

GM

AGM

Deputy Manager

Assistant Manager

Senior Executive

Junior executive

Territory Sales In charge

Salesman

RESPONSIBILITY
MD
Chief General Manager Zonal Manager Branch Manager

Officer In Charge Territory Sales

Overall Structure

RECRUITMENT OF SALES FORCE IN AMUL

The first stage of process, continued with selection and placement Starts with the intent of the Sale department head Personal department checks the financial implication and additional expenses, if any

A positive process and most important function

TYPES OF RECRUITMENT SOURCES INTERNAL SOURCE Present Permanent Employees Employee Referrals Former Employees EXTERNAL SOURCE
Advertisement. Campus Interview Employment Exchange. Unsolicited Application

NEED OF RECCRUITMENT New expansion New planning Retirement

SELECTION PROCESS AT AMUL

Application Initial interview of the candidate. Employment tests. Interviews. Checking references.

Physical or medical examination.

Final interview and induction

Approval from M.D: When there is any vacancy in any department, first step is to take approval from M.D to give advertisement in newspaper. After getting approval the process goes further. Advertisement: After getting approval from M.D., advertisement is given in local newspaper for the related post in the sales department. Collection of Application: All the direct applications are collected. Securitization of applications: After collection, applications are scrutinized Interview: Interview is being carried out by a panel of 3 to 4 members consisting of head of Sales Department, M.D. and Manager of Administration Medical checkup: Selected person sent for medical check. It held on interview day in AMUL when candidate found medically fit then selection is done Selection: At the end they give the appointment letter to the person and he/she is informed about his/her joining in the organization

PROCESS OF SELECTION

INDUCTION

INTERNAL Continues for 5-6 days Makes familiar with Sales Department of Organization

EXTERNAL Continues for 6-7 days Makes the employees visit the plant, the chilling centre

Training and Development

Identification of need of Training Module Preparation

Selection of employee for the training

Training

Feedback

Methods for the training

On the job training The immediate superior who knows exactly what the sales trainee should learn and do, gives him/her training at his/her workplace. Coaching: the new recruit is trained on the job by his/her immediate superior. Job rotation: The employee is made to move from job to job at certain intervals.

Off the job training:some managerial exports from within the organization head conduct the training for the off the job method . Lecture method The conference method Seminar

Out house training:In this method the new recruits are sent to the different training centers outside the organization for the training purpose. Generally this method is used for the training for top management people.

Need of Training: When new technology introduce in union. Increase quantity and quality of product. To meet organization need at all time. For better economic use of materials. To prepare the present employees for higher assignments so that they may promote from within. Effect of Training: Increased effectiveness of work. Increased dedication feeling for the work. Higher productivity

Motivational Strategy
Financial motivators Non-financial Motivators Adhoc House rent allowance Promotion
Travel Allowance ( Based on Seniority, Vacancies, Opinion of Divisional head, past Medical record, behaviour, Skill and Bonus knowledge, Experience, Loyalty toward organisation. ) Production Bonus Seminars Other allowance(Performance Conference Allowance , advance , LTC )

Compensation Policy
It includes fixed salary, bonus and shared profit. Method of remuneration payment:Time wage Piece wage

Compensation structure:There are 3 sound primary compensation structures. Internal Equity. External Competitiveness. Performance based payment.

Compensation Policy in Amul

Cash Payment Includes:
Fixed Salary Bonus Shared Profits

Method of remuneration Payment: Time wages Pieces Wages Compensation Structure

Internal equity External Competitiveness Performance based payments

Distribution Channel Structure at Amul

The Channel Network

PProcurement Channel (Upstream Flow)
Milk is taken to VCS by farmers on bicycle. Transportation of milk from the co-operatives through truck equipped with tanker.

Distribution Channel (Downstream Flow) Policy regarding unsold/ spoilt goods Product crosses the shelf life, retailers bears the cost. Products spoiled during transit or customer complaint, Amul bears the cost. Unsold goods are not returned to customers. No reverse logistic.

Amul Supply-Demand Linkages

Channel Member Management

1. Selection of channel member
Authentication Proof of solvency Safety of the inventory Details of storage Human resource Details of other product Market coverage Details of advertisement initiatives

2. Motivation of Channel Member

Distributors Decent margin Trade Marketing Work Shops Amul Yatra Retailers

Trade Schemes Glow Boards Infrastructure investment Salesmen

Evaluation of channel member

Beat Plan Cumulative Performance Target vs. Achievement Others Bank Guaranty Storage Space Refrigeration Facility Sales Potential of market

Major Observations:Conflicts among Channel Members 1. Ownership of Asset 2. Stocking Issue 3. Replacement of products 4. Credit Policy 5. Packaging 6. Replenishment of stocks 7. Margins
Amul quality circles Pilot salesmen Scheme Agreement defining rights

Suggestions
Amul should go in for exclusive outlets in at least all the shopping malls Pushcarts should be increased in number. The company should start a home delivery where a particular household will order full range of products required by it over a period of time. Place additional salesmen on the field.( To match the demand and supply statics) Increase margins of hard selling items.

Thank You