amul

SUMMER INTERNSHIP PROJECT

As partial fulfilment of requirement for the Master in Management Studies program

Report on identifying market condition, market potential and placement of Amul Fresh Products including Amul Pro and understanding consumer

behaviours.

Submitted to:-

Anjuman-I-Islam’s Allana Institute of Management Studies

Submitted by:-

Wasim Nizamuddin ShaikhDiv-A Roll No-52

Under the Guidance of

Mr. Rohit ShettyTerritory Sales Officer

Gujarat Co-operative Milk Marketing Federation Ltd. (AMUL)

&

Under the Mentorship of

Prof. Awesh Bhornya

For the Academic Year2012-2013

Summer Internship Report MMS

CERTIFICATE

This is to certify that Mr. Wasim Nizamuddin Shaikh, has completed her summer internship at GCMMF Ltd (AMUL), and has submitted this project report entitled Identifying market condition, promotion, placement of Amul Pro and Amul Fresh Products and a study of consumer behaviour, towards partial fulfilment of the requirements for the award of the Master in Management Studies.

This Report is the result of his own work and to the best of my knowledge no part of it has earlier comprised any other report, monograph, dissertation or book. This project was carried out under my overall supervision.

Date:

Place:

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Internal Faculty Guide


ACKNOWLEDGEMENT

The satiation and euphoria that accompany the successful completion of the project would be incomplete without the mention of the people who made it possible.

I would like to take the opportunity to thank and express my deep sense of gratitude to my corporate mentor Mr. Rohit Shetty and my faculty mentor Prof. Awesh Bhorny. I am greatly indebted to both of them for providing their valuable guidance at all stages of the study, their advice, constructive suggestions, positive and supportive attitude and continuous encouragement, without which it would have not been possible to complete the project.

I would also like to thank Mr. Sameer Bhiwapurkar (Senior Marketing Executive) and our institute’s Director Dr. Lukman Patel in spite of their busy schedule they has co-operated with me continuously and their indeed valuable contribution and guidance has been certainly indispensable for my project work.

I am thankful to Mr. Alam Parvez (Branch Manager) for giving me the opportunity to work with GCMMF Ltd. AMUL and learn.

I owe my wholehearted thanks and appreciation to the entire staff of the company for their cooperation and assistance during the course of my project. I hope that I can build upon the experience and knowledge that I have gained and make a valuable contribution towards this industry in coming future.


TABLE OF CONTENT

Sr No. Topic Pg No.

1 Executive summary

2Introduction:

Need of the study Objective of the study

3 Organisational Background

4

Literature Review: Current scenario Supply chain management Distribution channels Quality control

5 Products Features and Competitor Analysis

6

Research methodology Research design Sources of data Data collection method Sample size

7 Study of Distributor and Retailers

8 Study of Consumers behaviours

9 Experiences/Learning during project

10 Conclusion

11 Limitation

12 Recommendation

13 Reference

14 Annexure


EXECUTIVE SUMMARY

The project was started on 2nd of May for 8 weeks. The main aim of project was to find out the overall market condition, market potential for Amul Masti Dahi, Flaavyo, Pro Life Lassee, Amul Pro and Paneer and placement of Amul Fresh Products (Amul Masti Dahi, Flaavyo, Pro Life Lassee and including Amul Pro) and understanding the competitor analysis for Amul Masti Dahi, Amul pro, Flaavyo, Pro Life Lassee in Ulhasnagar located in Thane. The first part of my project involves the study of distributor allocated to me and Identification of their problem areas and helping them in order to increase sale. It also involves a study of retailers for better understand the grievances; identify the gaps, in order to increase sales of Amul Pro and of Amul Fresh Products. For this I used the method of personal interviews and questionnaires. For this I visited around 900 retail outlets in the area, understand the problems faced by them, had try to solve them and also had made the promotion and placement of Amul Pro and AFPs. I was also had to find out new retail for APO (Amul Preferred Outlet) and convince them to sell Amul products by showing them the opportunity of getting attached with a big FMCG brand like Amul and increase the customer base. I was successful in convincing retailer for placement of Amul Pro and of AFPs and a number of new retail sale points were developed and the sale was increased For Amul Pro and of Amul fresh product. The second part of my internship was free sampling of Amul pro and Flaavyo and the study of consumer attitude towards Amul fresh products including Amul Pro or more specifically the factors affecting the decision of purchase of these Products. For this a sample of 200 consumers was taken and a factor analysis was carried on to find the decision making factors.


INTRODUCTION

Need of the study

The project was an attempt to increase the sales for Amul Pro and of Amul fresh products, knows the reasons behind low sales in the city for the mention products. In doing so firstly the grievances of the distributors and the retailers were required to be solved in order to encourage them for push sales. Secondly a study of consumer’s decision making factors is required in order to understand their priorities which can be worked upon. For this purpose a research is to undertaken to find out the market scenario. With the help of the responses given by the retailers, consumers and data analysis, the company will be able to understand its strengths, weakness, opportunities and threats. The survey report submitted by me will assist the company to take right decisions to increase the turnover and market share.

Objective of the study

The objectives of the study are the following:-

1. The main objective of this project was to promotion and placement of Amul Pro and of Amul fresh products

2. To study the distribution channel in the retail chain of Amul3. To identify the issues related to retailers and distributors 4. To find and set up new APO for the area 5. To study Amul positioning in the mind of the consumers vis-à-vis competitors in case

of mention products6. To find out the factors that affect consumer’s decision to purchase Amul products7. Suggesting viable recommendations to be implemented in the area


QRGANISATION BACKGROUND

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. The word Amul is derived from the Sanskrit word Amulya , meaning invaluable. The co-operative is also sometimes referred to as Anand Milk Union Limited.

Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3 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. In the process Amul became the largest food brand in India and has also ventured into markets overseas.

Dr Verghese Kurien (26 November 1921 – 9 September 2012), founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with the success of Amul.

Dr Verghese Kurien was a renowned Indian social entrepreneur and is best known as the “Father of the White Revolution”. He founded around 30 institutions of excellence (like AMUL, GCMMF, IRMA, NDDB) which are owned, managed by farmers and run by professionals. As the founding chairman of the Gujarat Co-operative Milk Marketing Federation (GCMMF), Kurien was responsible for the creation and success of the Amul brand of dairy products. A key achievement at Amul was the invention of milk powder processed from buffalo milk (abundant in India), as opposed to that made from cow-milk, in the then major milk producing nations. His achievements with the Amul dairy led Prime Minister Lal Bahadur Shastri to appoint him as the founder-chairman of National Dairy Development Board (NDDB) in 1965, to replicate Amul's "Anand model" nationwide.


http://en.wikipedia.org/wiki/National_Dairy_Development_Board

http://en.wikipedia.org/wiki/National_Dairy_Development_Board

http://en.wikipedia.org/wiki/List_of_Prime_Ministers_of_India

http://en.wikipedia.org/wiki/List_of_Prime_Ministers_of_India

MISSION STATEMENT

GCMMF endeavour to satisfy the taste and nutrition requirements of the customers, of the world through excellence in marketing by their committed team. Through co-operative networking, they are committed to offer quality products that provide best value for money.

VISION STATEMENT

“Amul’s vision is to provide more and more satisfaction to the farmers, their customers, employees and distributors.”


History

The Kaira District Co-operative Milk Producers' Union Ltd. was registered on 1 December

1946 as a response to the exploitation of marginal milk producers by traders or agents of the

only existing dairy, the Polson (brand) dairy, in the small town of Anand (in Kaira District

of Gujarat).Milk producers had to travel long distances to deliver milk, which often went sour

in summer, to Polson. The prices of buffalo and cow milk were arbitrarily determined.

Moreover, the government at that time had given monopoly rights to Polson to collect milk

from Anand and supply it to Bombay city. Angered by the unfair trade practices, the farmers

of Kaira approached Sardar Vallabhbhai Patel under the leadership of local farmer

leader Tribhuvandas K. Patel. He advised them to form a cooperative and supply milk

directly to the Bombay Milk Scheme instead of Polson (who did the same but gave them low

prices).He sent Morarji Desai to organise the farmers.

In 1946, the milk farmers of the area went on a strike which led to the setting up of the

cooperative to collect and process milk. Milk collection was decentralized, as most producers

were marginal farmers who could deliver almost 1–2 litres of milk per day. Cooperatives

were formed for each village too.The Cooperative was further developed and managed by Dr.

Verghese Kurien along with H.M. Dalaya. Dalaya's innovation of making skim milk powder

from buffalo milk for the first time anywhere in the world and a little later, along with

Kurien's help, making it on a commercial scale, led to the first modern dairy of the

cooperative at Anand, which would compete against established players in the market.

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to

Anand's neighbourhood in Gujarat, and within a short span, five unions in other districts –

Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up. In order to combine

forces and expand the market while saving on advertising and avoid competing against each

other, the GCMMF, an apex marketing body of these district cooperatives was set up in 1973.

The Kaira Union which had the brand name of Amul with it since 1955 transferred it to

GCMMF.


In June 2013, it was reported that the Kaira District Cooperative Milk Producers Union

Limited, better known as Amul Dairy, had signed a tripartite agreement to start a dairy plant

in Waterloo village in upstate New York. The plant will initially manufacture paneer and

ghee. Amul will utilize an existing dairy plant owned by New Jersey-based NRI Piyush Patel

for manufacturing. The plant is strategically located, as it close to supply centres from where

raw material is procured, and is also near New Jersey, which has a large Indian population.

Amul said that it will be able to produce and supply Amul products in the US as well as

Canada, and export it to Europe, under the arrangement.

Company info .

The GCMMF (AMUL) is the largest food products marketing organisation of India. It is the

apex organisation of the Dairy Cooperatives of Gujarat. Over the last five and a half decades,

Dairy Cooperatives in Gujarat have created an economic network that links more than

3.1 million village milk producers with millions of consumers in India.

The cooperatives collect on an average 9.4 million litres of milk per day from their producer

members, more than 70% of whom are small, marginal farmers and landless labourers and

include a sizeable population of tribal folk and people belonging to the scheduled castes.

The turnover of GCMMF (AMUL) during 2010–11 was 97.74 billion (US$1.7 billion). It

markets the products, produced by the district milk unions in 30 dairy plants. The farmers of

Gujarat own the largest state of the art dairy plant in Asia – Mother Dairy, Gandhinagar and

Gujarat which can handle 3.0 million litres of milk per day and process 160 MTs of milk

powder daily.

On 18 Aug 2012, Vipul Chaudhary of Mehsana district's milk cooperative was elected

chairman of GCMMF, following a court's intervention.


http://en.wikipedia.org/wiki/Indian_rupee

The Amul brand

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly

50 sales offices spread all over the country, more than 5000 wholesale dealers and more than

700000 retailers.

Amul became the world's largest vegetarian cheese and the largest pouched-milk brand.

AMUL is also the largest exporter of dairy products in the country. AMUL is available today

in over 40 countries of the world. AMUL is exporting a wide variety of products which

include whole and skimmed milk powder, cottage cheese (Paneer), UHT milk, clarified butter

(Ghee) and indigenous sweets.

The major markets are USA, West Indies, and countries in Africa, the Gulf Region,

and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China, and others

such as Mauritius, Australia, Hong Kong and a few South African countries. Its bid to enter

the Japanese market in 1994 did not succeed, but it plans to venture again.

In September 2007, Amul emerged as the leading Indian brand according to a survey by

Synovate to find out Asia's top 1000 Brands.

In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The

Brand Trust Report, published by Trust Research Advisory. rediff.com; "India's top 20

brands: Amul is No. 1"


Distribution Network:-


Amul Plant

LAD

Retailer

Consumer

Mumbai Fort Branch Management Hierarchy


Jayen MehtaZonal Manager

NaglaiAssistance Manager

Alam ParvezBranch Manager

Sameer BhiwapurkarSenior Executive

Rohit ShettyTerritory Sales Officer

Harihar AgencyDistributior1. Naresh 2. Sagar

& 3. vickySalesman

AMUL PRODUCT MIX & PRODUCT LINE

Bread spreads Amul Butter, Amul Lite, Delicious Table Margarine

Cheese RangeAmul Pasteurized Processed Cheddar Cheese, Amul Processed Cheese Spread, Amul Pizza (Mozarella) Cheese,Amul Emmental Cheese, Amul Gouda Cheese, Amul Malai Paneer (cottage cheese), Utterly Delicious Pizza

Fresh MilkAmul Gold Full Cream Milk 6% fat, Amul Shakti Standardised Milk 4.5% Fat, Amul Taaza Toned Milk 3% fat,Amul Slim & Trim, Amul Cow Milk

UHT Milk RangeAmul Gold 4.5% fat Milk, Amul Shakti 3% fat Milk, Amul Taaza 1.5% fat Milk, Amul Lite Slim-n-Trim Milk, Amul Fresh Cream

Milk PowdersAmul Full Cream Milk Powder, Amulya Dairy Whitener, Sagar Skimmed Milk Powder, Amulspray Infant Milk Food, Sagar Tea and Coffee Whitener

Milk DrinkAmul Kool Flavoured Milk, Amul Kool Cafe, Amul Kool Koko,Amul Kool Millk Shaake, Amul Kool Chocolate Milk, Nutramul Energy Drink

Health Drink Stamina Instant Energy Drink, Amul Pro

Brown Beverage Nutramul Malted Milk Food

Curd ProductsAmul Masti Dahi (fresh curd),Amul Masti Spiced Butter Milk ,Amul Lassee, Amul Flaavyo Yoghurt

Pure Ghee Amul Pure Ghee, Sagar Pure Ghee

Sweetened Condensed Milk

Amul Mithaimate

Mithaee Range (Ethnic Sweets)

Amul Shrikhand, Amul Mithaee Gulabjamuns, Amul Basundi,Avsar Ladoos

Ice-cream Sundae Range, probiotic, ,sugarfree and probiotic

Chocolate & Confectionery

Amul Milk Chocolate, Amul Fruit & Nut Chocolate, Amul Chocozoo, Amul Bindass, Amul Fundoo


SALES TUNOVER (from 1994-95 to 2012-2013)

Sales Turnover Rs (in millions) US $ (in millions)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504

2009-10 80053 1700

2010-11 97742 2172

2011-12 116680 2500

2012-13 137350 2540


AWARDS

GCMMF wins the SAP Award for Customer Excellence (SAPACE) 2013 under the category of "Best Run Award in Finance"

ET-Corporate Citizen Award of the Year 2010-11 to GCMMF

Amul receives Green Globe Foundation Award

Dr. V.Kurien honoured with Life Time Achievement Award

GCMMF receives Srishti's G-Cube Award – 2010

Amul Bags International Dairy Federation Award

Amul Bags Srishti G-cube Award For Good Green Governance – 2009

Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit

Ramkrishna Bajaj National Quality Award – 2003

Qimpro Gold Standard Award - 2003

Amul the Taste of India (GCMMF) Receives International CIO 100 Award For Resourcefulness

Rajiv Gandhi National Quality Award - 1999


LITERATURE REVIEW

Current Scenario

The distributor allocated to us was operating in Ulhasnagar city. So as per my survey we can say that Amul dairy products have a present market share of around 70% in Ulhasnagar and total sells turnover of around Rs. 45 lakh over a month, with more than 1100 retail outlet. It has huge advantage over its competitor as it has a brand name. The total sales turnover of present scenario should be between 60 to 65 lakh. Before the entrance of the competitor like Gowardhan, Mother Dairy, Warana etc, the total market share of Amul was 90% in this area. However since last three years the sale has shown declining trends.

Supply Chain Management

The products are supplied from production units to distributor on weekly basis and from distributor it is distributed in 18 beats handle by three salesmen. So there are no problems related to SCM.


Regional

collection

centers

Productio

n units

Distributior

Retail outle

ts

Distribution network

Amul products are deliver to distributor on weekly basis and after these salesmen takes the order from retailers and after one day the products are placed in retailers outlet.

Quality Control

Stringent quality control methodologies are employed in G.C.M.M. Ltd (AMUL)

The milk is tested for adulterations and quality at the time of collection from the farmers.

The Milk that comes from the collection points to the Mother Dairy plant is ensured to have a temperature of not more than 4°C and is subjected to 15 product and quality checks.

The Products is checked repeatedly after each processing phase and the temperature is judiciously maintained less than 4°C always.

The temperature of the delivery trucks is always maintained less than 4°C. Since all the employed processing procedures are automated, no contamination by

human hands takes place. There are norms set by company to be followed by distributors which help the Amul

products from spoiling and damages.


Amul Plant

LAD

Retailer

Consumer

PRODUCTS FEATURES & COMPETITOR ANALYSIS

Amul Pro

Amul PRO is a malt based milk additive, which not only enhances milk’s nutritive value but also makes milk a very tasty drink for people of all ages, especially kids, who need milk and nutrition for healthy growth. It comes from the House of Amul, the brand which is known all over for providing quality products at value for money price.

SHELF LIFE 12 months

Survey Report

o As in the area allocated to us, Amul pro was not placed in many outlets, so I

convinced many retailers have disclose the qualities of Amul pro in front. o Have made the placement in around 210 stores

o As per market survey most of the retailers were not aware of Amul Pro. As

there was no promotional strategy adopted o Consumers are also not aware of Amul pro

o As there were few stores where amul pro was placed one year before but there

sales were slow and many were on the merger of replacement


Competitors

Product

As can been seen in below table as Whey Protein is included only in Amul Pro, here is the place where Amul Pro can have better chance of capturing market.

Product ComponentBournvita 27 essential nutrients and DHAAmul Pro 27 essential nutrients, DHA and Whey ProteinHorlicks 27 essential nutrients and DHA

o 27 Essential Nutrients (proteins, vitamins and minerals): Complete Wellness

o DHA (Docosahexaenoic Acid): Brain Development

o Whey Protein: Muscle building & Immunity


Price

As the method of price is consider Amul Pro stand first with comparatively low price as compare to the competitor. As can be seen in the table, price is the factor which can help Amul Pro to capture market. As man problem with Amul Pro is low promotion and advertisement adopted by company. As if company increase the Amul Pro rate by Rs.5 and this amount can be used for advertisement and other promotional activity it can help in to capture more market by Amul Pro. As Amul is known by its name, it will surely affect its growth.

Place

Amul Pro almost available in all states

Promotion

Here is the place where Amul Pro is lacking behind, due to which retailers and costumers are not aware of Amul Pro. To stand in front of the competitors who spend lots on advertisement and promotional activities. Amul Pro also needs to come with same strategy.

As can be seen Amul pro have more qualities as compare to competitor. So if proper promotional strategies are adopted Amul Pro will definitely have capacity to capture huge market.


Product Rate for 500gms jar Available inBournvita Rs. 187 75gms, 500gms, 1kg.Amul Pro Rs. 150 50gms, 200gms, 500gms.Horlicks Rs. 220 75gms, 500gms, 1kg.Complan Nearby Rs. 190 75gms, 500gms, 1kg.

Amul Masti Dahi and Amul Prolife Lassee

Dahi or Curd plays a key role in the Indian diet and in preparation of delicious dishes like Dahi Wada, Dahi BatataPuri, Dahi Rice, Dahi Idli, Dahi Raita, Kadhi and Muglai Food. Dahi and Lassee is well known for its nutritive values. Making fresh Dahi and Lassee is cumbersome, time consuming chore and can cause great embarrassment to the house wife when it is not prepared properly. Dahi and Lassee prepared by local shop owners or at home varies in terms of quality & culture used. Amul Dahi and Amul Lassee are prepared in controlled conditions i.e. maintaining proper temperatures to grow beneficial bacteria and to avoid growth of harmful bacteria. It is difficult to maintain controlled conditions at Home or at local shop level.

Many times the quality of Dahi available from the local market is far from satisfactory and often found to be contaminated as the culture used do not contain 100% beneficial bacteria. AMUL Masti Dahi is a pasteurized product i.e. free from unwanted bacteria.

SHELF LIFE 15 Days for Lassee and 7 days for Dahi

Overall Report


o As Amul Masti Dahi and Amul Prolife lassee was already in the market since

many years. So mostly, all retailers and consumers are aware of it. The flow of Amul dahi and lassee was good till last year, but due to entrance of new competitor and strategy adopted by them affected the sales of Amul lassee and dahi.

o I was successful in placing Amul Masti Dahi and Amul Prolife Lassee in

many store where it was not placed earlier.o Retailer were keeping the dahi/lassee of competitor in large quantity compare

to Amul dahi lassee the reason behind these was, competitor were offering more margin to retailer, giving them various schemes and were also providing replacement over lassee and dahi.

o There was demand for amul dahi and amul lassee was good, but due to local

area competitor it sales was affected. As seen after every twenty shops there were outlet of Dahi and lassee which make dahi and lassee in there on shop. So consumers usually prefer loose dahi and lassee, reason behind these was freshness (can seen in the consumer study).

Competitors


Product

The quality and component of Amul Masti Dahi and Amul Lassee was much better than the competitors’, also free from unwanted bacteria.

Price

Products Price 200gms Rs. (Dahi)

Margin to retailers on 200gms Rs.

Gowardhan 18 -

Amul 18 2

Warana 18 3

Mother Dairy 20 4

Other local players 20 Self Made)

As can be seen the price of Dahi of competitors are similar, but margin provided by competitors to retailers are much higher as compare to the Amul Masti Dahi. Also retailers prefer to keep and promote those products that offer greater margin. Same is the case with Amul lassee.

In spite of lower margin, due to demand of Amul Dahi and Amul Lassee in the market retailers are force to keep Amul Dahi and Lassee.

Place

Amul Masti Dahi and Amul Lassee are available in almost all the states where there are demand for lassee and dahi.

Promotion

Amul are doing more promotional activities than the competitors for dahi and lassee. Companies supply flyers, hoardings etc. to the retailers. Also there are no much need for promotion of Amul Masti Dahi and Amul Lassee, as many consumers are aware of it and words of mouth plays major role in case of Amul Dahi and Lassee


Many times the quality of Dahi available from the local market is far from satisfactory and often found to be contaminated as the culture used do not contain 100% beneficial bacteria. Amul Masti Dahi is a pasteurized product i.e. free from unwanted bacteria. If these message are conveyed to the consumers by way of promotional activities. More consumers can be diverted from local area competitor towards Amul Dahi and Lassee

The areas where companies are lacking behind are low margin provided to the retailers. If this problem is solved the market share for Amul Dahi and Lassee will show upward trend.

Amul Flaavyo Yoghurt


Amul Flaavyo is a flavoured dahi

Product Feature

o Tasty, Healthy and refreshing treat for all age people.

o Contains live probiotic bacteria which helps digestion and improve immunity.

o Made with special culture to give a smooth, mild acidic taste.

o It is made from natural ingredients.

o Fortified with essential vitamins.

o Available in five flavours namely Mango, Pineapple, Strawberry, Vanilla and

Misti Doi.

Product Application

o As a healthy dessert

o For on the go consumption.

o Available in Gujarat and Maharashtra

SHELF LIFE 15 days

Survey Report


o Retailers were not aware. As it is new in the market, after describing its

qualities to the retailers, I was successful in placing it in more than 30 retail outlets.

o There should be more promotional strategy for the awareness of Flaavyo

among the consumers and also for retailers. Retailers were also not aware of Amul Flaavyo.

o As seen retailers keep only those products, who’s advertisement are there and

for which various promotional strategy are adopted by the company.

Competitors

o As per my research there were no competitor products when it comes to Amul

Flaavyo. So company has greater chance of higher sales for Flaavyo if proper steps are taken.


Amul Paneer

Only market potential in case of Amul Paneer was required to conducted in the area allotted

Survey Report

o As seen the total market potential that Amul Paneer can capture in these area

was in between 20% to 25%o The reason behind these low market potential was, as after every twenty shops

there were outlet of Dahi, lassee and paneer, which make paneer in there on shop by which is self made and as per consumer they prefer fresh paneer. Amul Paneer has a expire day of fifteen days


SWOT

Strengths

1. High brand equity and top of the mind brand

2. Economic of Scale3. Strong Management4. Strong network India’s largest food

brand, trusted for its quality5. Number of popular milk products

like ice cream, ghee, butter, paneer, dahi, milk, etc. Products available at affordable price

6. Market leader in butter segment7. Responsible for white revolution in

India8. A popular mascot in the Amul girl

Weaknesses

1. Low market share for chocolates, Amul Pro and AFPs in the allotted area.

2. Strong competition from international & domestic players in the ice cream segment means limited market share

3. Low margin provided to retailers as compare to competitors products

4. No replacement5. Advertisement only for few products

Opportunities

1. Introduce new products in the chocolate segment

2. To tap the untapped market, increase its reach in rural markets

3. Advertisement and Promotion strategy for new products

4. Rise in purchasing power of Indian people

Threats

1. 1.Strong competition from international players

2. 2.Economic slowdown and inflation


PROMOTION STRATEGIES ADOPTED

As Amul Masti Dahi and Amul Prolife lassee was known by consumers and there sales were also good so my concentrate was mostly on Amul Pro and Flaavyo

Promotional strategies adopted were as follow:

Had convinced retailers to keep Amul Pro in such a place so that customers will have direct eye contact with Amul Pro

Had done promotion outside various retail outlet, highlighting the Quality of Products among various customers

Had done direct selling of Amul Pro and of Flaavyo to consumers outside retail stores Distributed the pamphlet of Amul pro and Amul Fresh products Have done the sampling of Amul pro outside the schools and sampling of Flaavyo in

hotels Distributed discount coupon for Amul lassee and Flaavyo to the customers

RESEARCH METHODOLOGY


Purpose

The basic purpose of this research is to find out the factors affecting the decision of the consumer to purchase of Amul Pro and AFPs. . Problems faced by retailers

Problem

To find out problem is the first stage of the research process. It represents translating the management problem into research problem. It is rightly said, “A problem well defined is half – solved.”

Consumers have faith in the brand image of Amul, still its losing share to competitors and other local brands when it comes to Amul Dahi, Lassee etc.

Objectives

The objective of the study was to find the actual reason why there are low sales for Amul Pro and AFPs

Sources of data

Primary data

Data collection method

Questionnaire and Personal Interviews

SAMPLE

Sampling Frame:

A Sampling frame consists of a list of item from which the sample is to be drawn.

The sample frame for this research constitutes the customers visiting retail outlets

Sample Size:

The sample size of the research was 200 consumers and more than 700 retailers.


STUDY OF DISTRIBUTOR AND RETAILERS

This project was carried out Ulhasnagar city of Thane for analyzing present market condition of amul products, understanding problem faced by distributor and retailer. The main focus of project was to promote and place Amul Pro and Amul Fresh Products. First of all the problem of distributor and retailer have to be understood.

As per distributor point of view:

Commission is less as compared to other competitive brand Sales of Amul Pro and Amul Fresh Products can increase if company do

advertisement and other promotional activities Average daily sales turnover nearby Rs. 1.5 lakh Amul Butter, Amul Sagar Ghee, Amul Cheese, Amul Kool have highest sells in

Ulhasnagar There are chances of increasing no of retailers’ if company will provide more margins

to them There are no problem of leakages and packing There are regular supplies from production units

Retailers study:

So as seen the distributor is not facing much of the problem. As then to look after retailer problem, why there are low sales of Amul Pro and Amul Fresh Products, I use method of personal interview and visited various retail outlets. The problems faced by the retailer are mention below, due to which many retailer were not ready to keep Amul Pro and Amul Fresh Products.

In some retail outlet there were irregular supplies of Amul Products by Distributor.

Due to low advertisement and promotional activities for Amul Pro and Flaavyo retailers were not giving order for it.

Many products of Amul like Dahi, lassee do not require much advertisement because consumer are aware of these products, but product like Amul pro and Flaavyo there are low demand by consumer as they are not aware of these product.

Retailers give orders only for the products which have demand in the market.


Sometime it happens that in between fresh products, expire products also lies in the middle.

Margin problem as behind many products retailer get only 8% to 10% for e.g. the price of the Amul butter was Rs 31, retailer price Rs. 29, retailer get less margin behind the products.

Also many retailer face the problem over replacement as there was no replacement provided by distributor to retailer, As Amul Fresh product has very less shelf life if it is not sell within the expire date the retailer have to suffer loss.

Also price strategy of some products were affecting the retailers For e.g. price of butter was Rs. 31, if consumer do not comes with change retailer have to give it for Rs.30 . These were the overall problem facing by retailer in the area allocated.

Many retailers do not keep Amul Fresh products as do not have refrigerato0.r

Due to problem faced over other Amul product retailers do not give order for Amul Pro and Amul Fresh Products.

After reporting these problems to distributor and to company they were solved to some extent

As seen there were not much problem related to Amul Dahi and Amul Lassee. The main problem that slows the sales of Amul pro and of Flaavyo was awareness, as consumers were not aware of the products, so it became difficult for the retailer to sell it .

STUDY OF CONSUMER’S BEHAVIOUR


For the study of consumer behaviour a research was conducted. The sample size for the research was 200 consumers. A list of question in a questionnaire was prepared (refer annexure)

Here are the responses:

Amul75%

Mother Dairy14%

Warana2%

Govardhan4%

Others5%

Brand come to your mind when it comes to dairy products:

Brand46%

Price14%

Packing10%

Quality30%

Purchasing decision depends on:


Advert-isment57%

Availabil-ity5%

WOM24%

Retailers prefeence

14%

Which factors helpto make purchasing de-cision?

Amul Pro Flaavyo Amul Masti Dhai Amul Prolife Lassee

20 30

180155

Number of consumer aware of:


Loose50%

Packed40%

Home made10%

Which lassee/dhai you usually preferred?

Price19%

Quality31%

Freshness51%

Why do you prefer loose lassee/dhai?

InterpretationIt has been noticed that many consumers of the area prefer loose dahi. Many consumer do not see price, they look at freshness and quality when it’s come to dahi and lassee. As people are not aware of hygienic condition needed to prepare dahi and lassee, if this message is communicated to the people there is the chance to increase the sales of Amul Dahi and Lassee in these area. Amul Dahi and lassee is also free from unwanted bacteria.


Bournvita38%

Amul Pro2%

Horlices21%

Boost19%

Complan19%

Health drink preferred by you

Brand48%

Quality36%

Price8%

Any other reason7%

Why you prefer above mention drink?


Advertisment65%

Retailers2%

Childrens24%

Word of Mouth10%

Purchasing decision for health depend upon

Interpretation:

As can been seen by the AMUL brand is famous among the customers and when it comes to dairy product consumer mainly prefer Amul products. The main reason where company is lacking behind is the awareness strategy for certain products. As seen in case of Amul Pro costumers are not aware of it. Only 20% of total sample size knows about Amul pro. As there are strong competition when it comes to health drinks, so if a strong promotional activity are adopted it can boost the sales of Amul pro. As can been seen 48% prefer brand products.


EXPERIENCES/LEARNING FROM THE PROJECTS

First thing I got to know that not only the needs of consumer but also the needs and requirements of retailers must be understand and look after.

As for placement of the products, strong convincing power is needed Advertisements and other promotional activities are the major factors behind sales

turnover over particular products. Competitor strategy should be kept in mind and more benefit should be provided to

the retailers from competitor products.


CONCLUSION

This project was about the understanding of the overall market condition of Amul in the area allocated. It also include understanding the market potential for Amul Masti Dahi, Amul pro, Flaavyo, Pro Life Lassee and Paneer and have also to make placement of these products in various retails outlet. I was successfully in completing all the above requirement of the project. As have solved the various problems faced by retailer and placed Amul Pro and AFPs in many retail outlets so there was increase in sales of Amul Pro, Amul Masti Dahi, Flaavyo and Pro Life Lassee. I have placed Amul pro in more than 300 retailer outlet But as Amul pro was new product for this area and there was no awareness among consumer of Amul Pro, so Amul pro outflow movement was slow from many retail outlet. Consumer decision regarding the purchase of Amul Pro and Flaavyo are Advertisement, Awareness, Taste and Packing. Awareness was created among costumers by way of distribution of pamphlet and by way of sampling. As the final outcome of the project is that the parameters which can increase sales for these products is that retailer should be provided with more margin than the competitor products. As seen retailers keep products which offer greater margin to them. The main problem of retailer was margin and replacement over the products. Also more awareness strategy should be adopted by company. Company should spend more on advertisement for products which are in the market but of which consumers are not aware. As if these problems are solved the sales of Amul Pro, Flaavyo and other related products can increased.


LIMITATION

The limitation of the project is as follows:

Some of the respondents could not give their proper response due to lack of time. which may affect the reliability and relevance of the study

It might be some retailer might have not disclosed the problem faced by them due fear of distributor.

Due to low margin, no replacement and lack of promotional activities some retailers have not given any response.

It might also be so that some respondents were not motivated enough to respond properly although full attempt was made to keep it as unbiased as possible.

There was no provision of visiting cards for the summer trainees which hinder communication at times

It was happen that orders were taken from retailers by me for Amul Pro and AFPs, but there was no placement of order due to non availability of stock with distributor.

The duration of the project was short, so the scope of more in-depth evaluation was not possible


FINDINGS & RECOMMENDATIONS

The recommendations for the company for further growth and profit are as follows:

Amul is known by its brand. Amul products are liked by consumers, but there are products like Amul Pro and Flaavyo of which consumers and also retailers are not aware, so promotion with the help of boards, hoardings etc. and also it can advertise in radio for Amul Pro and AFPs. This can help Amul products (Amul pro, Flaavyo, Amul Paneer etc.) to capture market

Amul should come up with schemes for Amul Pro and for AFPs for customers and retailers as it would be a real boost to the sales and also it will help the company to get back its lost customers for e.g. In case of Amul Pro a small gift like toys, puzzle games should be provided as free gift so that children’s can be attracted towards Amul Pro.

During the survey it was found that some retailers were uninterested because they were concerned about the storage problem if company provide schemes over refrigerators it can help to capture more market.

It was also seen that due to low margin and problem over replacement some retailers have shifted to competitors products

If dry ice boxes can be supplied free of cost, sale would be increased. Also it would be economical and convenient. Later, if the retailer drops out, the box can be collected back.

Company should provide replacement for various products it is the place where company is lacking as compared to competitors.

As Amul is known by its brand, so if products price are raise by a rupee or two more margin can be provided to retailer, resulting in increase sales for all products and also


it will help the company to get back its lost retailers, it can also help to overcome replacement problem

The online billing method for retailers should be adopted by company so that retailer will not be overcharged (there were case of overcharging of bill by distributor)

There should be company visit to retail outlets once in six months so that, retailers problems can be looked over and solved

The organisation should schedule these kinds of surveys on a more regular basis

The company should try to adopt a relatively short period incentive system on target basis for salesman in order to make it more friendly and achievable more sales.

REFERANCE


Books

Marketing Management- By Philips Kotler

Research Methodology- C.R. Kothari

Website www.amul.com

ANNEXURE


Questionnaire

CONSUMER

Name:-Contact no. :-Gender:-Address:- 1. The brand comes to mind when it comes to purchase Dairy products?

a) Amulb) Mother Dairyc) Waranad) Govardhane) Others

2. What do you see while purchasing?a) Brandb) Pricec) Packingd) Quality

3. Which factors help you to make your purchasing decision?a) Advertisementb) Availabilityc) Word of mouthd) Retailers’ preference

4. Are you aware of:a) Amul Prob) Flaavyoc) Amul Masti Dahid) Amul Prolife lassee


5. Which lassee/dahi you usually preferred?a) Loose b) Packedc) Home made

(If ans. is b state which brand you prefer)(If ans. is b directly go to Q no. 7)

6. Why do you prefer loose/homemade lassee/dahi?a) Price b) Qualityc) Freshness

7. Which health drink you usually prefer for your family?a) Bournvitab) Amul proc) Horlicksd) Booste) Complan

8. Why you prefer above mention drink?a) Brandb) Qualityc) Price d) Other reason

9. From where you get to know above mention health drinka) Advertisementb) Retailerc) Children’sd) Word of mouthe) Other


amul

Documents

project report

project work

summer internship project

placement of amul pro

study of distributor

study objective

study of consumers behaviours

study of consumer behaviour