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The Taste of India

PROJECT 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: Faculty Guide:


Mr. PRANIL JADHAV Prof. K.K
BHASIN
SENIOR EXECUTIVES (SALES)
OF GCMMF LTD PUNE

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INDEX

S.NO CONTENTS PAGE


. NO.
1 ACKNOWLEDGEMENT 3
2 DECLARATION 4
3 CERTIFICATE BY GUIDE 5
4 INTRODUCTION TO THE PROJECT 6
5 EXECUTIVE SUMMARY 8
6 INDUSTRY PROFILE 9
7 CHAPTER 1- INTRODUCTION AND 13
HISTORY OF THE COMPANY
8 CHAPTER-2 OBJECTIVE AND SCOPE 25
9 CHAPTER-3 RESEARCH METHODOLOGY 26
10 CHAPTER-4 DATA ANALYSIS AND 28
INTERPRETATION
11 CHAPTER-5 LIMITATIONS 39
12 CHAPTER-6 FINDINGS 40
13 CHAPTER-7 SUGGESTIONS AND 41
RECOMMENDATIONS
14 ANNEXURE 42
15 PRODUCT PROFILE 45

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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: 31st January 2010


Place: Pune
Duration: 08th June to 08th August, 2009

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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 Management-
Pune, 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:

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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

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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

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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

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“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.

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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.

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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 – 17 million tonnes

1996 – 70.8 million tonnes

1997 – 74.3 million tonnes

(Projected) 2020 – 240 million tonnes

Expected to reach- 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 (Million MTs)

2002-03 2003-04 (Approx.)


Country
India 81 84.5
Brazil 75 77
Russia 34 33
Germany 27 27
France 24 24
Pakistan 21 22
USA 71 71
UK 14 14
Ukraine 15 14
Poland 12 12
New Zealand 11 12
Netherlands 11 11

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Italy 10 10
Australia 9 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:

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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 ml.tn.
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 Production in million MT


1993-94 61.2
1994-95 63.5
1995-96 65.0
1996-97 68.0
1997-98 71.0
1998-99 74.5
1999-00 78.0
2000-01 81.51
2001-02 85.17
2002-03 89.0
2003-04 93.0
2004-05 97.65
2005-06 102.45
2006-07 107.58

Major Indian and Overseas Players in the Food industry are:

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• Hindustan Uni Lever • Perfetti India Ltd.


Limited
• MTR foods limited • Cadbury India Ltd.
• Godrej industries Limited • PepsiCo India Holdings
• Amul • Nestle India Pvt. Ltd.
• Dabur India Ltd. • Britannia Industries Ltd.
• ITC Limited • Parle Products Pvt. Ltd.
• Agro Tech Foods •

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

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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 Rs. (in millions) US $ (in millions)


1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493

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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 37740 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

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African nations. Other potential markets being considered include Sri
Lanka.

SOME FACTS:
Annual Revenues : $1.33 billion USD
Members : 13 district cooperative milk producers` union
No of Employees : 2.7 million
No of village societies : 13,141
Total Milk handling capacity : 10.21 million liters per day
Annual Milk Collection : 2.69 billion liters
Daily Milk Collection : 7.4 million liters
Milk Drying Capacity : 626 Mts. Per day
Cattlefeed Manufacturing Capacity : 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

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PLANTS

First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee,
milk powder, flavored milk and buttermilk.

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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.

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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

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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.

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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.

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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.

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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.

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Internal Organization Structure:

The following is internal organization chart of Amul:

Organization Structure Chart

Chairman

Managing Director

General Manager

Asst. General Manager

Finance Production Marketing Sales & Purchase


Personnel
Dept. Dept. Dept. Dept.
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.

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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.

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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.

 It gives information about the size of the retail network.


 It gives information about the services given by distributor to their
retailer.
 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.

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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.

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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.

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Chapter 4
DATA ANALYSIS AND INTERPRETATION

1) Number of retailers stocking Amul milk.

Answer No. of Percentage


respondents
Yes 55 20%
No 214 80%

Yes
20%

Yes
No

No
80%

INTERPRETATION:

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• 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 No. of


packets respondents
250ml 0
500 ml 32
1 Ltr 23
5 Ltr 0

Amul Milk PacketsAvailable

5 Ltr 0

1 Ltr 23

500 ml 32

250ml 0

0 5 10 15 20 25 30 35

No. of respondents

INTERPRETATION:

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• 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.)

No. of
Answer
respondents
Absence of packaging date 6

Low margin 154

No replacement for leakage 30


No distribution 24

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No distribution 24

No replacement for
30
leakage

Low margin 154

Absence of packaging
6
date

0 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 RESPONDENTS
Amul 55
Chitale 107
Katraj 57
Gokul 6
Others 44

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Others 44

Gokul 6

Katraj 57

Chitale 107

Amul 55

0 20 40 60 80 100 120

RESPODENTS

.
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 No. of Percentage


respondents
95 %
Distributors 52

Other suppliers 3 5%

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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 No. of Percentage


respondents
Yes 34 62 %

No 21 38 %

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No
38%

Yes
Yes No
62%

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.)

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Activities Aware Not aware

Price off 37 18
Free samples 13 42
Credit facility 16 39
Advertisement 49 6
P-O-P Displays 41 14
Coupons 50 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.

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8) Consumer’s expectation from Amul milk.

(Out of 269 retailers only 55 were buying Amul milk.)

ATTRIBUTE RESPONDENTS
Good quality 7
Clear packaging date 23
Availability 25

Availability 25

Clear packaging date 23

Good quality 7

0 5 10 15 20 25 30

RESPODENTS

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.

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9) Ratings from retailers for attributes of Amul milk.


(Out of 269 retailers only 55 were questioned as they buying Amul milk.)
Attribute
Brand
Rating Quality Availability Packaging Margin
image

Very good 37 48 34 5 0
Good 13 7 15 2 0
Average 5 0 0 48 0
Bad 0 0 6 0 0
Very bad 0 0 0 0 55
Total 55 55 55 55 55
60
0 0 0 0
5 7 6
50 0
13 15
40

30 48
55
48
20 37 34
10
2
5
0 0
Quality Brand image Availability Packaging Margin

Very good Good Average Bad Very bad

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.

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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 Sales(Ltr)


Initially Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7
Sai 0 10 5 5 5 5 5 5
Vaishali 0 15 15 15 15 15 15 15
New hanuman 5 20 15 15 15 15 15 15
Hanuman 15 30 25 25 25 25 25 25
Durga 5 10 10 8 8 8 8 8

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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.

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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.

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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.

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Chapter 7
SUGGESTIONS AND RECOMMENDATIONS

The Milk products market has reached Maturity stage in India large no. of Co-
operatives 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.

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• 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

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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

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b) Credit facility e) Coupons

c) Advertisement 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.

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Very good Good Average Bad


Very bad

a) Quality

b) Brand image

c) Availability

d) Packaging

e) Margin

AREA COVERED:

Katraj Bhavani Peth


Balaji nagar Bharati vidhya peeth
Manik Bagh, Sinhgad Road Sahakar nagar
Datta Wadi, Sinhgad Road Padamavati
Higne kurd, Sinhgad Road ---

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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 SNF
1. Toned milk (Amul Taaza) 3.0% Min 8.5% Min
2. Full Cream Milk (Amul Gold) 6.0% Min 9.0% Min
3. Cow Milk (Amul Cow Milk) 3.5% Min 9.0% Min

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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.

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AMUL PRODUCTS

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Milk Drinks
Amul Kool Millk Amul Kool
Shaake

Bread Spreads
Amul Butter Amul Lite
Utterly Butterly Low fat, low Cholesterol
Delicious Bread Spread

Amul Kool Cafe Kool Koko


A delight to Chocolate
Lovers. Delicious
Delicious Table Chocolate taste
Margarine
The Delicious way to eat
healthy

Nutramul Energy Amul Kool


Drink Chocolate Milk
A drink for Kids - provides
energy to suit the needs of
growing Kids

Amul Kool Amul Kool


Flavoured Bottled Flavoured Tetra
Milk Pack

Amul Masti Spiced Amul Kool Thandai


Buttermilk
Amul introduces the Best
Thirst Quenching Drink

Powder Milk
Amul Spray Infant Amul Instant Full
Milk Food Cream Milk
Still, Mother's Milk is Best Powder
for your baby A dairy in your home

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Sagar Skimmed Sagar Tea Coffee
Milk Powder Whitener
Which is especially useful
for diet preparations or
for use by people on low
calorie and high protein
diet.

Amulya Dairy
Whitener
The Richest, Purest Dairy
Whitener

Fresh Milk
Amul Fresh Milk Amul Gold 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 Taaza Double Amul Lite Slim


Toned Milk and Trim Milk

Amul Fresh Cream Amul Shakti


Toned Milk

Cheese
Amul Pasteurised Amul Cheese Spreads
Processed Cheese Tasty Cheese Spreads in 3
100% Vegetarian Cheese great flavours..
made from microbial rennet

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Amul Emmental Amul Pizza Mozzarella


Cheese Cheese
The Great Swiss Cheese from Pizza cheese...makes great
Amul, has a sweet-dry flavour tasting pizzas!
and hazelnut aroma

Gouda Cheese

For Cooking
Amul / Sagar Pure Cooking Butter
Ghee
Made from fresh cream. Has
typical rich aroma and
granular texture. An ethnic
product made by dairies with
decades of experience.

Amul Malai Paneer Utterly Delicious Pizza


Ready to cook paneer to make
your favourite recipes!

Mithai Mate Masti Dahi


Sweetened Condensed Milk -
Free flowing and smooth
texture. White to creamy color
with a pleasant taste.

Desserts

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Amul Ice Creams Amul Shrikhand
Premium Ice Cream made in A delicious treat, anytime.
various varieties and flavours
with dry fruits and nuts.

Amul Mithaee Gulab Amul Chocolates


Jamuns The perfect gift for someone
Pure Khoya Gulab you love.
Jamums...best served piping
hot.

Amul Lassee Amul Basundi

Health Drink
Nutramul Amul Shakti
Malted Milk Food made Health Food Drink
from malt extract has the Available in Kesar-Almond
highest protein content and Chocolate flavours.
among all the brown
beverage powders sold in
India.

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