Market Penetration of Amul Milk

June 13, 2018 | Author: sumeet singh jasrotia | Category: Retail, Milk, Cheese, Dairy, Marketing
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The Taste of IndiaPROJECT REPORT ON “A Study on Penetration of Amul Milk in Retail Outlets of Pune City” This study was conducted from 8th June 09 to 8th August 09 At Gujarat Co-operative Milk Marketing Federation Ltd. BY: SUMEET SINGH JASROTIA PGDM OF A report submitted in partial fulfillment of the requirements of PGDM (2008-10) Company Guide: Mr. PRANIL JADHAV BHASIN SENIOR EXECUTIVES (SALES) OF GCMMF LTD PUNE Faculty Guide: Prof. K.K ASIAN SCHOOL OF MANAGEMENT 1 The Taste of India INDEX S.NO . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 CONTENTS ACKNOWLEDGEMENT DECLARATION CERTIFICATE BY GUIDE INTRODUCTION TO THE PROJECT EXECUTIVE SUMMARY INDUSTRY PROFILE CHAPTER 1- INTRODUCTION AND HISTORY OF THE COMPANY CHAPTER-2 OBJECTIVE AND SCOPE CHAPTER-3 RESEARCH METHODOLOGY CHAPTER-4 DATA ANALYSIS AND INTERPRETATION CHAPTER-5 LIMITATIONS CHAPTER-6 FINDINGS CHAPTER-7 SUGGESTIONS AND RECOMMENDATIONS ANNEXURE PRODUCT PROFILE PAGE NO. 3 4 5 6 8 9 13 25 26 28 39 40 41 42 45 ASIAN SCHOOL OF MANAGEMENT 2 The Taste of India ACKNOWLEDGEMENT With immense pleasure, I would like to present this project report for Kaira District Co-operative Milk Producers’ Union Ltd., Anand. It has been an enriching experience for me to undergo my summer training at AMUL, which would not have possible without the goodwill and support of the people around. As a student of ASIAN SCHOOL OF MANAGEMENT, PUNE I would like to express my sincere thanks too all those who helped me during my practical training programme. Words are insufficient to express my gratitude toward Mr. Pranil Yadav, the pune head of AMUL. At last but not least my grateful thanks is also extended to Mrs. Madhavi Khare (Director’ ASIAN SCHOOL OF MANAGEMENT’ Pune) and my thanks to all my faculty members for the proper guidance and assistance extended by them. I am also grateful to my parents, friends, to encourage & giving me moral support. However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice. Date: Place: Duration: 31st January 2010 Pune 08th June to 08th August, 2009 ASIAN SCHOOL OF MANAGEMENT 3 The Taste of India DECLARATION I hereby declare that the project report entitled “A study on the penetration of Amul Milk in retail outlets of Pune city” is the produce of my sincere effort. This Summer Internship Project is being submitted by me alone, at Asian School of ManagementPune, for the partial fulfillment of the course PGDM, and the report has not been submitted to any other educational institutions for any other purpose. Date: Signature: ASIAN SCHOOL OF MANAGEMENT 4 The Taste of India CERTIFICATE BY THE GUIDE This is to certify that the project work entitled “To study on the Penetration of Amul Milk in the retail outlets of Pune City”, at GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD. for Pune Branch is a piece of work done by Sumeet Singh Jasrotia, student of Asian School Of Management, under my guidance and supervision for the partial fulfillment of the course PGDM, Asian School Of Management, Pune. To the best of my work knowledge and belief the thesis embodies the work of the candidate himself and has been duly completed. Simultaneously, the thesis fulfills the requirement of the rules and regulation related to the summer internship of the institute and I am assured that the project is up-to the standard both in respect to the contents and language for being referred to the examiner. Signature of the Faculty Guide: Name of the faculty guide: Prof.K.K Bhasin Designation: Department of Marketing ASIAN SCHOOL OF MANAGEMENT 5 The Taste of India INTRODUCTION TO THE PROJECT 1.1 CONTEXT OF THE TOPIC The dairy industries companies run mainly on the factors such as availability, service frequency, affordability, taste and marketing. Availability is plays a vital role because purchasing power is depend upon availability of that product, in case distributors and retailers service matter a lot. A retailer or retail store is any business enterprises whose sales volume comes primarily from retailing. Market penetration is one of the four growth strategies of the Product-Market Growth Matrix defined by Ansoff. Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service (by advertising etc). It was found that due to low consumption of milk, there is no more awareness of milk product here It was the major cause to the low selling of “Amul” milk product. Like that penetration level in the outlet of milk product was low. Finally the whole study of the research work, the company needs the effective advertisement of the product in the local channel and print media for awareness of “Amul” milk in the Pune city. Promotion Tool Used The consumer promotion tools mean the promotion activities, which are beneficial for consumers as well as company. Such as price discounts, samples, cash refund, premiums, prizes, cross promotion and coupons etc. We decided to use discount ASIAN SCHOOL OF MANAGEMENT 6 The Taste of India coupons. We distributed it among customers and validity kept seven days from issued. • • • • • The consumers are seduced to buy the product. It helped to increase sales volume. Consumer can get good quality of good in cheaper price. It can attract the new consumers and customers buying other milk brands. Attract brand switchers, who are primarily looking for low price, good value or premiums. • • • Turn switcher to loyal users, It induced to make some subsequent purchases. Give little permanent gain in market share. 1.2 Need of Study Managers are always curious about the position of their company’s products in the market which largely depend upon the company’s goodwill, and the position of their brand. In order to maximize the sale and profit, company must deliver outstanding satisfaction to the retailers. So market survey of retailers, chart out the position of the company as compared to the competitors. It helps the organization to find out the brand being sold most by the retailers along with their stocking and also consumer buying preferences. 1.3 Statement of The Problem ASIAN SCHOOL OF MANAGEMENT 7 The Taste of India “A STUDY ON PENETRATION OF AMUL MILK IN RETAIL OUTLET OF PUNE CITY” It helps to determine penetration level which can be used to influence large number of retailers so as to increase the sales of the Amul milk effectively”. EXECUTIVE SUMMARY I Sumeet Singh Jasrotia felt privileged to be a part of ASIAN SCHOOL OF MANAGEMENT, PUNE. I did my summer internship training in Gujarat Cooperative Milk Marketing Federation Ltd a FMCG sector company under the brand name “AMUL”. My project title is the “A Study on penetration of Amul Milk in the retail outlet of Pune city”. The project basic objectives are to estimate demand of Amul Milk and promoting Amul milk in Pune at the same time. In today’s competitive world while entering in the market it is very necessary to have good knowledge of the potential of a particular market. The information regarding the activities of competitor’s existing in the market so that we can plan our each activity according to that. Also it is necessary to retain the existing customers apart from attracting the new customers. The Project is concern with to determine the penetration level of Amul dairy milk in Pune city. The project included as part of MBA Programme and the project is done from June to August. ASIAN SCHOOL OF MANAGEMENT 8 The Taste of India INDUSTRY PROFILE Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge for practical purposes. Dairy technology has been defined as that branch of dairy science, which deals with the processing of milk and the manufacture of milk products on an industrial scale. The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. The dairy sector has developed through co-operatives in many parts of the State. During 1997-98, the State had 60 milk processing plants with an aggregate processing capacity of 5.8 million litres per day. In addition to these processing plants, 123 Government and 33 co-operatives milk chilling centers operate in the State. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form. ASIAN SCHOOL OF MANAGEMENT 9 The Taste of India The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43, 500 crores by year 2005. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10, 00, 000 million. Presently the market is valued at around Rs.7, 00, 000 mn Milk Production from 1950 to 2020 1950 – 1996 – 1997 – (Projected) 2020 – Expected to reach17 million tonnes 70.8 million tonnes 74.3 million tonnes 240 million tonnes 220 to 250 mt – 2020 India contributes to world milk production rise from 12-15 % & it will increase up to 30-35% (year 2020) World's Major Milk Producers Country India Brazil Russia Germany France Pakistan USA UK Ukraine Poland New Zealand Netherlands 2002-03 81 75 34 27 24 21 71 14 15 12 11 11 (Million MTs) 2003-04 (Approx.) 84.5 77 33 27 24 22 71 14 14 12 12 11 ASIAN SCHOOL OF MANAGEMENT 10 The Taste of India Italy Australia 10 9 10 10 Research and Development in Dairy Industry: The research and development need to the dairy industry to develop and survives for long time with better status. The various institute and milk dairy companies R&D results provide base for today’s industry growth and development. The research and development of products of dairy, like yogurt and cheese market research and company reports provides insights into product and market trends, analysis opportunities, sales and marketing strategies will help local milk unions to develop and spread world wide through obtaining this knowledge. Specific on market share, segmentation, size and growth in the US and global markets are also helps industry to expand its market worldwide even small union also. Development of Food Processing Industry: The food processing industry sector in India is one of the largest in terms of production, consumption, export and growth prospects. The government of accorded it is a high priority, with a number of fiscal relieves and incentives, to encourage commercialization and value addition to agriculture produce, for minimizing harvest wastage, generating employment and export growth. Food processing industry is providing backbone support to the milk industry. The development food products by using milk can give good market opportunities to produces milk. Products and Industry Status: ASIAN SCHOOL OF MANAGEMENT 11 The Taste of India Among the products manufactured by organized sector are Ghee, Butter, Cheese, Ice-Creames, Milk powders, Melted milk food, Infant food, condensed milk etc.. some milk products like Casein and Lactose are also being manufactured lately. Therefore, there is good scope for manufacturing these products locally. Liberalization of the economy has led to a flood of new entrants, including MNCs due to good prospects and abundant supply. Investment Potential in Milk Products: At the present rate of growth, India is expected to overtake the US in milk production by the year 2010, when demand is expected to be over 125.69 Being largely imported, manufacture of casein and lactose has good scope in the country. Exports of milk products have been decentralized and export in 2005-2010 is estimated at 71.875 cr. Production of Milk in India: The facts and figures here shown are calculated on the basis of percentage increases pear year. Year 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Production in million MT 61.2 63.5 65.0 68.0 71.0 74.5 78.0 81.51 85.17 89.0 93.0 97.65 102.45 107.58 Major Indian and Overseas Players in the Food industry are: ASIAN SCHOOL OF MANAGEMENT 12 The Taste of India • • • • • • • Hindustan Uni Lever Limited MTR foods limited Godrej industries Limited Amul Dabur India Ltd. ITC Limited Agro Tech Foods • • • • • • • Perfetti India Ltd. Cadbury India Ltd. PepsiCo India Holdings Nestle India Pvt. Ltd. Britannia Industries Ltd. Parle Products Pvt. Ltd. Chapter 1 INTRODUCTION AND HISTORY OF COMPANY INTRODUCTION AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. Headquartered in the small town of Anand, Gujarat, it is a brand name managed by an apex cooperative organization, Gujarat Cooperative Milk Marketing Federation (GCMMF). Specializing in dairy products, AMUL now takes pride in having built the largest food product business in the country. Being a part of the Gujarat Cooperative Milk Marketing Federation (GCMMF), AMUL is a sterling example of cooperative achievement in the developing world. AMUL survives and grows on the basis of cooperative culture, cooperative networking, market acumen and respect for both producer and the consumer. Presently, it is the most popular food brand of India. HISTORY Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by ASIAN SCHOOL OF MANAGEMENT 13 The Taste of India Shri Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL. The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. Basically the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA. GCMMF Overview: GCMMF is the India’s largest food products marketing organization. It is a state level apex body of milk co-operatives in Gujarat, which aims to provide remunerative returns to the farmers and also serves the interest of consumers by providing quality products, which are good value for money. VISION The vision of AMUL is as follows:  To serve the interests of the milk producers  To provide quality products that offer the best value to consumers for money spent. SALES TURNOVER Sales turnover of GCMMF Year 1995-96 1996-97 1997-98 1998-99 Rs. (in millions) 13790 15540 18840 22192 US $ (in millions) 400 450 455 493 ASIAN SCHOOL OF MANAGEMENT 14 The Taste of India 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 22185 22588 23365 27457 28941 29225 37740 493 500 500 575 616 672 839 Graphical representation of sales turnover of GCMMF. AREAS OF OPERATIONS Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South ASIAN SCHOOL OF MANAGEMENT 15 The Taste of India African nations. Other potential markets being considered include Sri Lanka. SOME FACTS: Annual Revenues Members No of Employees No of village societies Total Milk handling capacity Annual Milk Collection Daily Milk Collection Milk Drying Capacity Cattlefeed Manufacturing Capacity : $1.33 billion USD : 13 district cooperative milk producers` union : 2.7 million : 13,141 : 10.21 million liters per day : 2.69 billion liters : 7.4 million liters : 626 Mts. Per day : 3090 Mts. Per day ACHIEVEMENTS  AMUL has achieved the following landmarks.  AMUL is the largest food brand in India.  AMUL is the world`s largest pouched milk brand.  AMUL is the world`s largest vegetarian cheese brand  CRISIL has assigned its highest ratings of “AAA” to the various bank facilities of GCMMF ASIAN SCHOOL OF MANAGEMENT 16 The Taste of India PLANTS First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk. ASIAN SCHOOL OF MANAGEMENT 17 The Taste of India Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite. Third plant is at Khatraj, which engaged in producing cheese. ASIAN SCHOOL OF MANAGEMENT 18 The Taste of India Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India. LOGISTICS ASIAN SCHOOL OF MANAGEMENT 19 The Taste of India GCMMF’S SUPPLY CHAIN AMUL has the largest cold chain network in India (i.e. 18000 refrigerators) as compared to any other company. The chemical components of milk are water, SNF and solids. Milk is very perishable product so it has to be consumed within 24 hours. In order to avoid wastage AMUL converts the milk in to SNF and milk solids by evaporating the water, which comprises up to 60-70% of milk contents. This is possible only if the distribution channel right from the producer to the consumer is well organized. It will be surprising to know that AMUL makes even the ‘Sarpanch’ to eat pizza i.e. it supplies pizzas even to rural market. ASIAN SCHOOL OF MANAGEMENT 20 The Taste of India Last year, they are divided the retail market into 14 specific segments to achieve further distribution efficiency. This year our focus was on inducting distributors having expertise in servicing such specific market segments. This initiative is yielding results by way of ensuring wider availability of our product range. The role of distributors in our business process has never been more diverse or more important, as it is today. As a matter of fact, we consider our Distributor to be the real “Marketing Manager” of our organization. To enhance business performance of our Distributors, a workshop on Marketing and Sales Management was designed in collaboration with a premier business school. The objective of the entire initiative was to upgrade the knowledge of our Distributors in terms of contemporary Business Management Practices, so that they can perform well not only as our business partner but also as Marketing Managers. During the year, 659 Distributors have undergone this programme in 39 locations. Cold Storage is an extremely essential component in the Federation’s distribution process. Unfortunately, availability of efficient cold storage facilities is grossly inadequate in our country. To cope up with the increasing need of suitable cold stores closer to our markets, we have continued our endeavour of creating the Federation’s own cold stores this year in various locations across the country. We now own 24 state of the art cold rooms of different sizes. ASIAN SCHOOL OF MANAGEMENT 21 The Taste of India COMPETITORS PROFILE CHITALE DAIRY Chitale Dairy bears the quality tag of the Chitale Group.The company manufactures and markets highly functional products. These cutting edge products are manufactured using state-of-the-art technology and find applications in day-to-day transactions. Chitale dairy annual turn over of over Rs. 500 crores. KATRAJ DAIRY Katraj was incorporated in 1960 with an intension of providing an organized facility of milk collection for the village level farmers situated in Pune district. Katraj Dairy started with milk collection of about 0.30 lakh (30.000) litres in the first year of operation and today, has steadily grown to over 3.25 lakh (0.32million) litres per day and has a financial turnover of over Rs.150 crores (Rs.1500 million / US$ 33 million) against Amul’s annual turnover of over Rs. 52554 million / US$ 1325 million. GOKUL The Kolhapur District Co-operative Milk producers Union Ltd., Kolhapur was established on 16th March 1963 under the Co-operative Act. It made a moderate beginning by collecting 700 liters of Milk per day from 22 societies. Most success stories have a humble begining & so have been with Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. On 16th March 1963 a spark stormed a fire to help the White Revolution revolt heavily, when on this day came into being the “Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd” with the introduction of its popular brand of Gokul Milk & its wide range of Dairy products in to the market. Gokul milk has 6, 05,000 litres average sales per day. ASIAN SCHOOL OF MANAGEMENT 22 The Taste of India ORGANIZATION STRUCTURE Organization Structure is divided into two parts: • • External Organization Structure Internal Organization Structure • External Organization Structure External Organization Structure is the organization structure that affects the organization from the out side. State Level Marketing Federation District Milk Product Union Ltd. Village Milk Product Union Ltd. Villagers As we know, GCMMF is unit of Gujarat Milk Marketing Federation, which is a co-operative organization. The villagers of more than 10000 villages of Gujarat are the bases of this structure. They all make village milk producers union, district level milk producers union and then a state level marketing federation is established. The structure is line relationship, which provides easy way to operation. It also provides better communication between two stages. ASIAN SCHOOL OF MANAGEMENT 23 The Taste of India Internal Organization Structure: The following is internal organization chart of Amul: Organization Structure Chart Chairman Managing Director General Manager Asst. General Manager Finance Personnel Dept. Dept. Production Dept. Marketing Dept. Sales & Purchase Dept. A systematic & well-defined organizational structure plays a vital role & provides accurate information to the top-level management. An organization structure defines a clear-cut line of authorities & responsibilities among the employees of GCMMF. The Organization structure of Amul is well-arranged structure. At a glance a person can completely come to know about the organization structure. Amul is leaded by the director under him five branches viz. Factory, Marketing, Accounts, Purchase, Human Resources Department. Factory department has a separate general manager under him there are six braches viz. Production, Stores, Distribution, Cold Storage, Quality, and Deep-freezing. This department takes care of the factory work. ASIAN SCHOOL OF MANAGEMENT 24 The Taste of India Marketing department has regional senior marketing manager and under him there is a regional manager. This department takes care of the marketing aspects of Amul. Accounts department takes care regarding accounts i.e. day-to-day work. Under the accountant there is one clerk. Purchase department takes care regarding the purchase of raw materials and many other things. ASIAN SCHOOL OF MANAGEMENT 25 The Taste of India Chapter 2 OBJECTIVE AND SCOPE 1. OBJECTIVES OF THE REPORT The main objective of the Study can be listed as follows A. PRIMARY OBJECTIVE 1. To find size of retail network of Amul Taaza and Amul Gold in specific areas of Pune city or penetration level of Amul Milk in Pune city. 2. To find the problems faced by retailers in selling and storing. 3. To collect the information about the competitors B.SECONDARY OBJECTIVE 1. To organize sale promotional activities to improve milk sales. 2. To generate and secure consumer awareness. 2. SCOPE OF PROJECT The study carried out in Pune city so its scope is mainly limited to Pune city.   retailer.     It gives information about the size of the retail network. It gives information about the services given by distributor to their It gives information about the competitors’ products. It will serve consumer in better manner. It provides suggestions to the company to improve their products sales. It gives information about the sales promotion activities to improve the milk sale. ASIAN SCHOOL OF MANAGEMENT 26 The Taste of India Chapter 3 RESEARCH METHODOLOGY RESEARCH DESIGN FOLLOWED Descriptive Research is the research method used because descriptive studies embrace a large proportion of market research. The purpose is to provide an accurate snapshot of some aspect of the market environment. Descriptive research is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product. As opposed to exploratory research, descriptive research should define questions, people surveyed, and the method of analysis prior to beginning data collection. In other words, who, what, where, when, why, and how aspects of the research should be defined. SAMPLING:SAMPLING TECHNIQUE USED In this project the technique of sampling used was Judgment sampling. Judgment sampling involves the choice of subjects who are most advantageously placed or in the best position to provide the information required. SAMPLE UNIT In this project case sample were the retailers in Pune region & the aim was to know the penetration level of Amul milk and the competitors present in the market. SAMPLE SIZE: 269 Retailers. ASIAN SCHOOL OF MANAGEMENT 27 The Taste of India DATA COLLECTION TECHNIQUES SOURCES OF DATA PRIMARY DATA To collect primary data from Retailer’s Questionnaires were used. Questionnaire was prepared very carefully so that it may prove to be effective in collecting the right information. SECONDARY DATA Secondary data collected from different website. This secondary data formed the conceptual background for the project. This secondary data was compared with the primary data collected in area. RESEARCH INSTRUMENT The research instrument used in the project was Questionnaire to collect primary information, it provided flexibility by using more close ended and few open ended questions. METHOD OF DATA COLLECTION Information was collected by personally contacting retailers through interviews. ANALYSIS AND STATISTICAL TECHNIQUE USED Types of data analysis techniques used in the project: Tabular analysis. Graphical analysis. Percentage analysis. ASIAN SCHOOL OF MANAGEMENT 28 The Taste of India Chapter 4 DATA ANALYSIS AND INTERPRETATION 1) Number of retailers stocking Amul milk. Answer Yes No No. of respondents 55 214 Yes 20% Percentage 20% 80% Yes No No 80% INTERPRETATION: ASIAN SCHOOL OF MANAGEMENT 29 The Taste of India • The above graph indicates that only 1/5th of the retailers are selling Amul milk or there is only 20% penetration level of Amul Milk in retail outlets of Pune city. • It shows that Amul milk brand is not popular among the retailers. 2) Sizes of Amul milk packets retailers preferred to store. (Out of 269 retailers only 55 were buying Amul milk.).) Amul milk packets 250ml 500 ml 1 Ltr 5 Ltr No. of respondents 0 32 23 0 Amul Milk Pa k Ava ble c ets ila 5 Ltr 0 1 Ltr 23 500 m l 32 250m l 0 0 5 10 15 20 25 30 35 No. of respondents INTERPRETATION: ASIAN SCHOOL OF MANAGEMENT 30 The Taste of India • • • The above graph shows that most of the retailers preferred to stored 500 ml and 1 Ltr pouch of Amul milk as per the customer demand. In case of 5 Ltr. Pouch there was no customers demand. 250 ml pouches were not available to retailers. 3) Reasons for Amul milk not stored by retailers. (Out of 269 retailers 214 were not buying Amul milk.) Answer Absence of packaging date Low margin No replacement for leakage No distribution No. of respondents 6 154 30 24 ASIAN SCHOOL OF MANAGEMENT 31 The Taste of India No distribution 24 No replacem for ent leakage 30 Low m argin 154 Absence of packaging date 0 6 20 40 60 80 100 120 140 160 180 No. of respondents INTERPRETATION: • • • From above graph it is clear that half of the retailers were not satisfied with Amul replacement and margin policy. Some retailers responded about absence of packaging date. Very less retailers complained about distribution network. 4) Preference of retailer’s to milk brand. BRANDS Amul Chitale Katraj Gokul Others RESPONDENTS 55 107 57 6 44 ASIAN SCHOOL OF MANAGEMENT 32 The Taste of India Others Gokul Katraj Chitale Amul 0 20 40 55 60 RESPODENTS 80 100 120 6 57 107 44 . INTERPRETATION: • • The above graph shows that the Chitale is most preferable brand in all. Some retailers also prefers Katraj and others brands. 5) Sources from where retailers get Amul milk (Out of 269 retailers only 55 were buying Amul milk.) Answer Distributors Other suppliers No. of respondents 52 3 Percentage 95 % 5% ASIAN SCHOOL OF MANAGEMENT 33 The Taste of India INTERPRETATION: • Almost all retailers said that they purchased milk from Amul distributors. 6) Retailer’s satisfaction with Amul distributor. (Out of 269 retailers only 55 were buying Amul milk.).) Answer Yes No No. of respondents 34 21 Percentage 62 % 38 % ASIAN SCHOOL OF MANAGEMENT 34 The Taste of India No 38% Yes Yes 62% No INTERPRETATION: • Graph shows that most of the retailers were satisfied with the service provided by the Amul distributors. 7) Awareness among retailers about different Sales Promotional activities for Amul Milk. (Out of 269 retailers only 55 were buying Amul milk.) ASIAN SCHOOL OF MANAGEMENT 35 The Taste of India Activities Price off Free samples Credit facility Advertisement P-O-P Displays Coupons Aware 37 13 16 49 41 50 Not aware 18 42 39 6 14 5 INTERPRETATION: • The graph shows that retailers were aware about the sales promotion activity that Amul carried out, but some respondents were unaware about various activities. • • Most of the retailers were aware about advertisement and coupons scheme during festivals. Credit facility and free samples were not provided to single retailers. ASIAN SCHOOL OF MANAGEMENT 36 The Taste of India 8) Consumer’s expectation from Amul milk. (Out of 269 retailers only 55 were buying Amul milk.) ATTRIBUTE Good quality Clear packaging date Availability RESPONDENTS 7 23 25 Availability 25 Clear packaging date 23 Good quality 7 0 5 10 RESPODENTS 15 20 25 30 INTERPRETATION: • • • The question asked to the retailers where the Amul milk is being sale, and tried to collect feedback of customers about Amul milk. More customers were having complaints about the clear date of packaging and availability. Some customers were not happy with quality of milk. ASIAN SCHOOL OF MANAGEMENT 37 The Taste of India 9) Ratings from retailers for attributes of Amul milk. (Out of 269 retailers only 55 were questioned as they buying Amul milk.) Attribute Rating Very good Good Average Bad Very bad Total 60 50 40 30 20 10 0 Quality Brand im age Very good Good Availability Average Bad 48 37 34 2 5 Packaging Very bad 0 5 13 Quality 37 13 5 0 0 55 0 7 Brand image 48 7 0 0 0 55 0 6 0 15 Availability 34 15 0 6 0 55 0 Packaging 5 2 48 0 0 55 Margin 0 0 0 0 55 55 48 55 0 Margin INTERPRETATION: From the above graph it can be concluded that • QUALITY: Most of the retailers were satisfied with Amul milk quality. • • • • BRAND IMAGE: The graph shows that Amul is having good brand image. AVAILABILITY: Most of the retailers were satisfied with the Amul milk distribution. PACKAGING DATE: Most of the retailers were not satisfied about not printing of packaging date and they were facing a problem regarding same. MARGIN: All retailers were not satisfied with the margin policy given by Amul. ASIAN SCHOOL OF MANAGEMENT 38 The Taste of India DATA ANALYSIS FOR SALES PROMOTION ACTIVITY We carried sales promotion activity at two places of Pune city 1. Sahakar nagar 2. Sinhgad road Store name Sai Vaishali New hanuman Hanuman Durga Initially 0 0 5 15 5 Day 1 10 15 20 30 10 Day 2 5 15 15 25 10 Sales(Ltr) Day 3 Day 4 5 5 15 15 15 15 25 25 8 8 Day 5 5 15 15 25 8 Day 6 5 15 15 25 8 Day 7 5 15 15 25 8 ASIAN SCHOOL OF MANAGEMENT 39 The Taste of India INTERPRETATION: The researcher got same (trend) data and same response from the consumers for both areas. So I come out with following observation and results • Most of the retail outlets were not interested in Amul milk selling, but after launching coupons scheme, not only sales shoot up by considerable amount initially but also remain constant for next days. • In case of Sai and Vaishali retail outlet they were not interested in Amul milk selling but now they are selling 20 Ltr of milk daily. And they said if response will remain same they will increase milk order. ASIAN SCHOOL OF MANAGEMENT 40 The Taste of India Chapter 5 LIMITATIONS OF THE RESEARCH • • • • The survey is limited only for nine wards. Time period of the project was 8 weeks, which may not be enough to understand the whole market. Sample size (269) of project was too small as compare to total area covered. Respondent hesitate to give true response to question. ASIAN SCHOOL OF MANAGEMENT 41 The Taste of India Chapter 6 FINDINGS OF THE RESEARCH • Retailers are not interested because they don’t have storage facility but if company provides them such facility they will be sale Amul milk. • Because of low profit margin almost all retailers are not interested in Amul milk selling. • • The 250 ml and 5 Ltr milk pouch are no available to the retailers for selling. On question, why retailers are not interested in selling of Amul milk, it is found they were not happy with margin, availability and replacement of leak pouches. • Retailers were selling different brands. Because they were able to receive more margin from non popularized brand that they could not from well known brands. • • • All retailers get Amul milk from company selected distributors. Measurable amount of retailers were not happy with the distributors, because of frequent change in distributors and late delivery of milk. All retailers were familiar with sales promotion activities undertaken by Amul. But more of the activities were not communicated by distributors. So it shows that distributors are taking the advantage of such activities. • • • Some questions were asked with view to convert retailers into distributors, but due to low margin they denied that. I found that customers were complaining about the packaging especially packaging date because Amul do not print packaging date on pouch. When question came to retailers ratings towards Amul milk rating most of the most respondents complaining about profit margin and packaging date. ASIAN SCHOOL OF MANAGEMENT 42 The Taste of India Chapter 7 SUGGESTIONS AND RECOMMENDATIONS The Milk products market has reached Maturity stage in India large no. of Cooperatives having a variety of product range has entered the market, thus there is one way for Amul to sustain their milk business in the market by delivering outstanding satisfaction to their retailers, so that they can take interest in selling of Amul milk products. This can be done as follow • • Company should start printing packaging date on milk pouch. Amul has a relatively good distribution network, but still company is not able to fulfill the demand of outlet in the peak season when demand is very high. Here company should consider on the supply of product in the peak season. • • • • • Supply should be regular to all the outlets including those that lie in the pocket roads and not just in the outlets which lie on the easily accessible routes. 250 ml milk pouch should make available to retailers for selling, because lower income family has intention to buy small pouch milk. Provide reasonable Margin to retailers as compared to competitors, this motivates them to promote company’s milk and milk products. Improve delivery schedule to provide products on time for the retailers about who claimed that Amul milk is not available to them on time. Incentives & schemes should be given to the retailers and some scrutiny should be follow to check the scheme get being communicated properly by distributors or sales person. • • Company should provide advertising facility like outside wall painting; provide company’s stand boards, Posters which help to sell Amul milk. Provide consistent service to retailers as this will help gain company goodwill in the market. ASIAN SCHOOL OF MANAGEMENT 43 The Taste of India • • Do not change distributor frequently, because he is the only person who act as a connecting link between company and retailers. Do not place more than one distributor in same market area. ANNEXURE QUESTIONNAIRE (Retailer Survey) Name of the shop: __________________________________________________ Retailer Name: ____________________________________________________ Address: __________________________________________________________ 1) Do you stock Amul milk? a) Yes b) No 2) If yes, what is the size of Amul milk packets do you preferred to store? a) 250 ml b) 500 ml c) 1 Ltr d) 5 Ltr. 3) If No, Why? a. Absence of packaging date b. Low margin ASIAN SCHOOL OF MANAGEMENT 44 The Taste of India c. No replacement for leakage d. Low distribution 4) Which is the most preferable brand of packaged milk that you stock? • • • • • Amul Chitale Katraj Gokul Others 5) From where do you get Amul milk? a) Distributors b) Other suppliers 6) Are you satisfied with Amul distributor? a) Yes b) No 7) Do you know which Sales promotional activities does the company undertake for Amul milk? a) Price off d) Free samples ASIAN SCHOOL OF MANAGEMENT 45 The Taste of India b) Credit facility c) Advertisement e) Coupons f) P-O-P Displays 8) Are you interested in distribution of Amul milk? a) Yes b) No 9) What is consumer’s expectation from Amul milk? a) Good quality b) Packaging c) Availability 10) Give your ratings to following attributes of Amul milk. ASIAN SCHOOL OF MANAGEMENT 46 The Taste of India Very good Very bad Good Average Bad a) Quality b) Brand image c) Availability d) Packaging e) Margin AREA COVERED: Katraj Balaji nagar Manik Bagh, Sinhgad Road Datta Wadi, Sinhgad Road Higne kurd, Sinhgad Road Bhavani Peth Bharati vidhya peeth Sahakar nagar Padamavati --- ASIAN SCHOOL OF MANAGEMENT 47 The Taste of India PRODUCT PROFILE Milk is the “nature’s perfect food” for all ages. It has almost all the vital nutrients need for the growth and well being of human body. Milk is the richest natural source of calcium and essential amino acids, which is good for bone formation. It is particularly beneficial for people recovering from sickness, for sportsmen, for old people, for pregnant women and for growing girls and boys. The doctor recommends a minimum daily intake of 250 ml or more for every person. Normal cow milk has 4% Fat and buffalo has 7% Fat. There is another important constituent of milk is Solids Non Fat (SNF). This (or SNF as it is commonly called) comprises of proteins, minerals, carbohydrates and vitamins. For mil to be nutritionally balanced, it has to contain both Fat and Solids Not Fat in proportion. The PFA act lays down standards of Fat and SNF for various types of milk, as follows: FAT 1. Toned milk (Amul Taaza) 2. Full Cream Milk (Amul Gold) 3. Cow Milk (Amul Cow Milk) 3.0% Min 6.0% Min 3.5% Min SNF 8.5% Min 9.0% Min 9.0% Min ASIAN SCHOOL OF MANAGEMENT 48 The Taste of India Amul Milk is available in Pune and surrounding areas in Toned, Full cream and cow milk varieties. Amul Milk strictly confirms to PFA standards. In fact we keep our standards. In facts We keep our standards higher so as to abundantly comply with the legal requirements and to provide wholesome nutritive food to our consumers. This means when you are buying Amul Milk you are sure to get the “nature’s perfect food” for your family. You are sure to get your full 500 ml. in every pack. You are sure of getting milk, which has longer life because of superior bacteriological quality and state of art processing technology The loose milk available from local vendors often does not confirm to PFA standards. It often has less Fat and less Solid Non Fat then required. Remember that if your milk contains 0.5% less Fat or SNF, you are paying up to one rupee per pouch extra. Besides, it is not uncommon to find artificial preservatives, which are not permitted by law being added to loss milk. If you are buying cheap loose milk or even pouch milk, think again! By compromising on the quality of milk, you may be depriving your children of essential life-building proteins and nutrients that only pure and high quality Amul Milk will give. ASIAN SCHOOL OF MANAGEMENT 49 The Taste of India AMUL PRODUCTS ASIAN SCHOOL OF MANAGEMENT 50 The Taste of India Milk Drinks Amul Kool Millk Shaake Bread Spreads Amul Butter Utterly Butterly Delicious Amul Kool Amul Lite Low fat, low Cholesterol Bread Spread Amul Kool Cafe Delicious Table Margarine Kool Koko A delight to Chocolate Lovers. Delicious Chocolate taste The Delicious way to eat healthy Nutramul Energy Drink A drink for Kids - provides energy to suit the needs of growing Kids Amul Kool Chocolate Milk Amul Kool Flavoured Bottled Milk Amul Kool Flavoured Tetra Pack Amul Masti Spiced Buttermilk Amul introduces the Best Thirst Quenching Drink Amul Kool Thandai Powder Milk Amul Spray Infant Milk Food Still, Mother's Milk is Best for your baby Amul Instant Full Cream Milk Powder A dairy in your home ASIAN SCHOOL OF MANAGEMENT 51 The Taste of India Sagar Skimmed Milk Powder Which is especially useful for diet preparations or for use by people on low calorie and high protein diet. Sagar Tea Coffee Whitener Amulya Dairy Whitener The Richest, Purest Dairy Whitener Fresh Milk Amul Fresh Milk This is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience. Amul Gold Milk Amul Taaza Double Toned Milk Amul Lite Slim and Trim Milk Amul Fresh Cream Amul Shakti Toned Milk Cheese Amul Pasteurised Processed Cheese Amul Cheese Spreads Tasty Cheese Spreads in 3 great flavours.. 100% Vegetarian Cheese made from microbial rennet ASIAN SCHOOL OF MANAGEMENT 52 The Taste of India Amul Emmental Cheese The Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma Amul Pizza Mozzarella Cheese Pizza cheese...makes great tasting pizzas! Gouda Cheese For Cooking Amul / Sagar Pure Ghee Cooking Butter Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience. Amul Malai Paneer Ready to cook paneer to make your favourite recipes! Utterly Delicious Pizza Mithai Mate Sweetened Condensed Milk Free flowing and smooth texture. White to creamy color with a pleasant taste. Masti Dahi Desserts ASIAN SCHOOL OF MANAGEMENT 53 The Taste of India Amul Ice Creams Premium Ice Cream made in various varieties and flavours with dry fruits and nuts. Amul Shrikhand A delicious treat, anytime. Amul Mithaee Gulab Jamuns Amul Chocolates The perfect gift for someone you love. Pure Khoya Gulab served piping hot. Amul Lassee Amul Basundi Health Drink Nutramul Malted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India. Amul Shakti Health Food Drink Available in Kesar-Almond and Chocolate flavours. ASIAN SCHOOL OF MANAGEMENT 54


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