Vous êtes sur la page 1sur 70

Submitted by: Deepak arora

2010
12-Sep-10
A PROJECT REPORT ON
‘ADOPTION OF A NEW
PROMOTION MARKETING
& FIELD WORK
STRATEGY FOR CREATING
ENTITLED AS BRAND VALUE
OF AMUL PRODUCTS’
‘ADOPTION OF A NEW MARKETING STRATEGY FOR
CREATING BRAND VALUE OF AMUL PRODUCTS’

By
Deepak Arora
PGDM IIND
A Report
Submitted In Partial Fulfillment Of The
Requirement Of PGDM Program Of
CDGI-CDSM

Page C D S M
Distribution List: AMUL INDIA LTD.
INDORE

Page C D S M
PREFACE

The PGDM program is well structured and integrated course


business studies. The main objective of practical training at
Page C D S M
PGDM is to develop skills in student by supplement to the
theoretical study of business management in general.
Industrial training helps to gain real life knowledge about the
industrial environment and business practices. The PGDM
program provides student with a fundamental knowledge of
business and organizational functions and activities, as well as an
exposure to strategic thinking of management.

In every professional course, training is an important factor.


Professors give us theoretical knowledge of various subjects in
the college but we are practically exposed of such subjects when
we get the training in the organization. It is only the training
through which I come to know that what an industry is and how it
works. I can learn about various departmental operations being
performed in the industry, which would, in return, help me in the
future when I will enter the practical field.

Training is an integral part of PGDM and each and every student


has to undergo the training for 1 and a half month in a company
and then prepare a project report on the same after the
completion of training.

During this whole training I got a lot of experience and came to


know about the management practices in real that how it differs
from those of theoretical knowledge and the practically in the
real life.

In todays globalize world, where cutthroat competition is


prevailing in the market, theoretical knowledge is not sufficient.
Beside this one need to have practical knowledge, which would
help an individual in his/her carrier activities and it is true that
“Experience is best teacher”.

Page C D S M
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
CHAMELI DEVI SCHOOL OF MANAGEMENT, INDORE. I would like to
express my sincere thanks too all those who helped me during
my practical training program.

Words are insufficient to express my gratitude toward Mr. T.K


ROY, the depot Head of AMUL (Indore). I am very thankful to M r.
Radheshyam, who helped me at every step whenever needed.

At last but not least my grateful thanks are also extended to M r.


Naresh singh (Director’ CIMR INDORE) and my thanks to all my
faculty members for the proper guidance and assistance
Extended by them.

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.

Page C D S M
DECLARATION

I hereby declare that the project report entitled “ADOPTION OF


A NEW MARKETING STRATEGY FOR CREATING BRAND
VALUE OF AMUL PRODUCTS” is the produce of my sincere
effort. This Summer Internship Project is being submitted by me
alone, at CHAMELI DEVI SCHOOL OF MANAGEMENT, INDORE 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:

Page C D S M
CERTIFICATE BY THE GUIDE

This is to certify that the project work entitled “ADOPTION


OF A NEW MARKETING STRATEGY FOR CREATING BRAND
VALUE OF AMUL PRODUCTS”, at GUJARAT CO-OPERATIVE
MILK MARKETING FEDERATION LTD. For INDORE Branch is a
piece of work done by Deepak Arora , CHAMELIDEVI SCHOOL OF
MANAGEMENT,INDORE under my guidance and supervision for
the partial fulfillment of the course PGDM,

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.

Page C D S M
Signature of the Faculty Guide:

Name of the faculty guide:


Prof. Amit Kumar

EXECUTIVE SUMMARY

This project was undertaken with the objective of promotion of


brand AMUL in schools & nearby area canteens . The study was
conducted at AMUL India Ltd, Indore branch. The retailer's
preference was studied through using questionnaire.

A sample size of 400 schools was taken for the


study, whose responses were studied and interpreted .The
sampling design was used descriptive sampling. The process of
analysis was done through excel work sheets, frequency table,
percentage analysis etc.

It was found that canteen holders are having the


problem in storage of AMUL products because company does not
provide refrigerator to them that’s why they do not keep AMUL
products in their canteens.
.

Page C D S M
To consider the stocking decision of product in
retail outlet, Trust of the company was the first preference
of the retailer’s then credit on the product. Retailers want to keep
AMUL products but they want some facilities from the company
side.

Finally the whole study of the research work, company needs the
effective advertisement of the product in the local channel and
print media for awareness of AMUL products...

Contents
PREFACE...........................................................................4
ACKNOWLEDGEMENT.......................................................5
DECLARATION..................................................................6
CERTIFICATE BY THE GUIDE.............................................7
EXECUTIVE SUMMARY......................................................9
INDUSTRY PROFILE.........................................................12
CHAPTER 1...................................................................18
Page C D S M
INTRODUCTION AND HISTORY OF THE COMPANY. 18
AMUL PRODUCTS OUTLINE.............................................22
GCMMF Overview:......................................................23
COMPETITORS PROFILE..................................................30
ORGANIZATION STRUCTURE..........................................31
CHAPTER 2.....................................................................37
OBJECTIVE & SCOPE OF THE PROJECT............................37
SCOPE OF THE PROJECT.................................................38
CHAPTER 3...................................................................39
___RESEARCH METHODOLOGY___..................................39
a) Preparation of questionnaire...................................42
b) Presetting of questionnaire......................................42
The report must give/contain the following information:-
.......................................................................................42
Setting the Promotion Mix..............................................45
Product Life Cycle........................................................46
WORKINGS.....................................................................47
SAMPLING:-..................................................................48
DATA COLLECTION TECHNIQUES..............................48
DATA ANALYSIS & INTERPRETATION..............................50
LIMITATIONS OF THE PROJECT.......................................55
FINDINGS OF THE RESEARCH.........................................56
SUGGESTION & RECCOMANDATIONS.............................57
Page C D S M
ANNEXURE...............................................................................................59
CONCLUSION............................................................................................62
BIBLIOGRAPHY......................................................................................................64

Page C D S M
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 liters 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 liter 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

Page C D S M
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.

The urban market for milk products is expected to grow at an


accelerated pace of around 33% per annum to around Rs.43, 500
crore 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 tone
Expected to reach- 220 to 250 mn – 2020

Page C D S M
India’s 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)

COUNTRY 2002-03 2003-04 (APPROX.)

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

Page C D S M
New Zealand 11 12

Netherlands 11 11

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:

Page C D S M
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:

Among the products manufactured by organized sector are Ghee,


Butter, Cheese, Ice-Creams, 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.

Page C D S M
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 per 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

Page C D S M
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 :-

• Hindustan Uniliever • 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
Page C D S M
INTRODUCTION AND HISTORY
OF THE COMPANY
In the year1946 the first milk union was established. This union
was started with 250 liters of milk per day. In the year1955 AMUL
was established. In the year 1946 the union was known as KAIRA
DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union
selected the brand name AMUL in 1955.

The brand name AMUL means “AMULYA”. This word derived form
the Sanskrit word “AMULYA” which means “PRICELESS”.

A quality control expert in Anand had suggested the brand name


“AMUL”. AMUL products have been in use in millions of homes
since1946. AMUL Butter, AMUL Milk Powder, AMUL Ghee, AMUL
spray, AMUL Cheese, AMUL Chocolates, AMUL Shrikhand, AMUL
Ice cream,NutrAMUL, AMUL Milk and AMULya have made AMUL a
leading food brand in India. (The total sale is Rs. 6 billion in
2005). Today AMUL is a symbol of many things like of the high-
quality products sold at reasonable prices, of the genesis of a
vast co-operative network, of the triumph of indigenous
technology, of the marketing savvy of affirmers' organization.
And have a proven model for dairy development (Generally
known as “ANAND PATTERN”)

In the early 40’s, the main sources of earning for the farmers of
Kaira district were farming and selling of milk. That time there
was high demand for milk in Bombay. The main supplier of the
milk was Polson dairy limited, which was a privately owned
company and held monopoly over the supply of milk at
Bombay from the Kaira district. This system leads to exploitation
of poor and illiterates farmers by the private traders. The traders
used to beside the prices of milk and the farmers were forced to
accept it without uttering a single word.

Page C D S M
However, when the exploitation became intolerable, the
farmers were frustrated. They collectively appealed to Sardar
Vallabh bhai Patel, who was a leading activist in the freedom
movement. Sardar Patel advised the farmers to sell the milk on
their own by establishing a co-operative union, Instead of
supplying milk to private traders. Sardar Patel sent the farmers
to Shri Morarji Desai in order to gain his co-operation and help.
Shri Desai held a meeting at Samar kha village near Anand,
on 4th January 1946. He advised the farmers to form a society for
collection of the milk.

Page C D S M
These village societies would collect the milk themselves
and would decide the prices at which they can sell the
milk. The district union was also form to collect the milk from
such village co-operative societies and to sell them. It was also
resolved that the Government should be asked to buy milk from
the union.

However, the govt. did not seem to help farmers by any means. It
gave the negative response by turning down the demand for the
milk. To respond to this action of govt., the farmers of Kaira
district went on a milk strike. For 15 whole days not a single drop
of milk was sold to the traders. As a result the Bombay milk
scheme was severely affected. The milk commissioner of Bombay
then visited Anand to assess the situation. Having seemed the
condition, he decided to fulfill the farmers demand.
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 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.

At initial stage only 250 liters of milk was collected everyday.


But with the growing awareness of the benefits of the
cooperativeness, the collection of milk increased. Today AMUL
collect 11 lakhs liters of milk everyday. Since milk was a
perishable commodity it becomes difficult to preserve milk flora
longer period .Besides when the milk was to be collected from
the far places, there was a fear of spoiling of milk. To overcome
this problem the union thought out to develop the chilling unit at
various junctions, which would collect the milk and could chill it,
so as to preserve it for a longer period. Thus, today AMUL has
Page C D S M
more than 150 chilling centers in various villages. Milk is
collected from almost 1073 societies.
With the financial help from UNICEF, assistance from the govt. of
New Zealand under the Colombo plan, of Rs. 50 millions for
factory to manufacture milk powder and butter was planned. Dr.
Rajendra Prasad, the president of India laid the foundation on
November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime
minister of India declared it open at AMUL dairy on November 20,
1955.

The system succeeded mainly because it provides an assured


market at remunerative prices for producers' milk besides acting
as a channel to market the production enhancement package.
What's more, it does not disturb the agro-system of the farmers.
It also enables the consumer an access to high quality milk and
milk products. Contrary to the traditional system, when the profit
of the business was cornered by the middlemen, the system
ensured that the profit goes to the participants for their socio-
economic upliftment and common good.

Looking back on the path traversed by AMUL, the following


features make it a pattern and model for emulation elsewhere.

AMUL has been able to :-

• Produce an appropriate blend of the policy maker’s farmer’s


board of management and the professionals: each group
appreciating its rotes and limitations,

• Bring at the command of the rural milk producers the best of


the technology and harness its fruit for betterment.

Page C D S M
• Provide a support system to the milk producers
without disturbing their agro-economic systems,

• Plough back the profits, by prudent use of men, material and


machines, in the rural sector for the common good and
betterment of the member producers.

• Even though, growing with time and on scale, it has remained


with the smallest producer members. In that sense. AMUL is an
example par excellence, of an intervention for rural change.

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.

AMUL PRODUCTS OUTLINE

Page C D S M
Page C D S M
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.

Page C D S M
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
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
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504

Page C D S M
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
African nations. Other potential markets being considered include Sri Lanka.

SOME FACTS:

Annual Revenues : $1.33 billion USD

Members : 13 district
cooperative milk producers

No of Employees : 2.7 million

No of village societies : 13,141

Total Milk handling capacity : 10.21 million liters


per day

Page C D S M
Annual Milk Collection : 2.69 billion
liters

Daily Milk Collection : 7.4 million liters

Milk Drying Capacity : 626 Mts. Per day

Cattle feed 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.

Page C D S M
LOGISTICS

GCMMF’S SUPPLY CHAIN

Page C D S M
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.

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

Page C D S M
Marketing Managers. During the year, 659 Distributors
have undergone this programmed 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.

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

Page C D S M
(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 beginning & so have been with Kolhapur District
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 District 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.

ORGANIZATION STRUCTURE

Organization Structure is divided into two parts:

• External Organization Structure


• Internal Organization Structure

External Organization Structure

Page C D S M
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.

Page C D S M
Internal Organization Structure:
The following is internal organization chart of AMUL:

Organization Structure Chart

Page C D S M
Chairman

Managing Director

General Manager

Asst. General Manager

Finance Production Marketing S&p


Personnel Dépit. Dépit. Dépit.
Dep Dept.

A systematic & well-defined organizational structure plays a vital


role & provides accurate information to the top-level

Page C D S M
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.
• 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.

Page C D S M
F
IRST PLANT is
at ANAND,
which engaged
in the manufacturing of
milk, butter, ghee, milk
powder, flavored milk
and buttermilk.

S
ECOND PLANT:- Is
at MOGAR, which
engaged in
manufacturing
chocolate, nutrAMUL,
AMUL Ganthia and
AMUL lite.

Page C D S M
F
OURTH PLANT
is at KHATRAJ,
which engaged
in producing cheese.

THIRD PLANT is at
Kanjari, which
produces cattelfeed.

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.

Page C D S M
CHAPTER 2
OBJECTIVE & SCOPE OF THE PROJECT

1. Primary Objectives :-

• To create awareness of AMUL BRAND & its Products.


• To encourage the education as well as BRAND AMUL.
• To reach to the hearts of the customers by doing social
activities (that is a new marketing strategy).
• To get the information from canteen holders who are
having or not having AMUL products.
• To find out the reasons why most of the schools do not
provide canteen facility to the students.

1. Secondary objectives :-

• To increase the sale.


• To generate and secure consumer awareness.
• To collect the information from school canteen holders.
• To organize promotional activities to improve sales.

Page C D S M
SCOPE OF THE PROJECT

• 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 create brand
awareness.

Page C D S M
CHAPTER 3

___RESEARCH METHODOLOGY___

What is research?
MARKETING RESEARCH

Marketing research plays an important role in the


process of marketing. Starting with market component of the total
marketing talks. It helps the firm to acquire a better understanding
of the consumers, the competition and the marketing environment.

DEFINITION

“Marketing research is a systematic gathering, recording and


analysis marketing problem to facilitate decision making.”

Coundiff & Still.

“Marketing research is a systematic problem analysis, model


building and fact finding for the purpose of important decision
making and control in the marketing of goods and services.
Page C D S M
-
Phillip
Kotler.

MAIN STEPS INVOLVED IN MARKETING RESEARCH


Defining the Marketing Problem to be tackled and identifying the
market research problem involved in the task.

(1) Define the problem and its objectives.


(2) Identify the problem.
(3) Determine the information needed.
(4) Determine the sources of information.
(5) Decide research methods.
(6) Tabulate, Analyze and interpret the data.
(7) Prepare research report.
(8) Follow-up the study.

(1) Define the problem and its objectives :- This includes


an effective job in planning and designing a research
project that will provide the needed information. It also
includes the establishment of a general framework of
major marketing elements such as the industry elements,
competitive elements, marketing elements and company
elements.

(2) Identify the problem :- Identifying the problem


involves getting acquainted with the company, its

Page C D S M
business, its products and market environment,
advertising by means of library consultation and
extensive interviewing of company’s officials.

(3) Determining the specific Information needed :- In


general the producer, the manufacturer, the wholesaler
and the retailer try to find out four things namely :-
(1) What to sell
(2) When to sell
(3) Where to sell
(4) How to sell

(4) Determine the sources of information :-

(a)Primary Data: - Primary data are those which are gathered


specially for the project at hand, directly – e.g. through
questionnaires & interviews. Primary data sources include
company salesman, middleman, consumers, buyers, trade
association’s executives & other businessman & even
competitors.

(b)Secondary Data: - These are generally published sources,


which have been collected originally for some other purpose.
Source are internal company records, government publication,
reports & publication, reports & journals, trade, professional and
business associations publications & reports.

(5) Decide Research methods for collecting data :- If it is


found that the secondary data cannot be of much use,
collection of Primary data become necessary. Three widely
used methods of gathering primary data are

A) Survey

Page C D S M
B) Observation

C) Experimentation

A) Survey Method :- In this method, information gathered


directly from individual respondents, either through personal
interviews or through mail questionnaires or telephone
interviews.

B) Observation Method :- The research data are gathered


through observing and recording their actions in a marketing
situation. This technique is highly accurate. It is rather an
expensive technique.

C) Experimental Method :- This method involves carrying


out a small scale trial solution to a problem, while at the same
time, attempting to control all factors relevant to the problem.
The main assumption here is that the test conditions are
essentially the same as those that will be encountered later when
conclusions derived from the experiment are applied to a broader
marketing area.

D) The Panel Research :- In this technique the same group of


respondents is contacted for more then one occasion; and the
information obtained to find out if there has been any in their
taste demand or they want any special quality, color, size,
packing in the product.

a) Preparation of questionnaire
b) Presetting of questionnaire
c) Planning of the sample

(6) Tabulate, Analysis and Interpret the Data :-

Page C D S M
The report must give/contain the following information:-
a) The title of research

b) The name of the organization for which it has


been conducted

c) The objectives of research.


d) The methodology used.
e) Organization and the planning of the report
f) A table of contents along with charts and diagrams
used in the reports.
g) The main report containing the findings
h) Conclusion arrived at end recommendations suggested
i) Appendices (containing questionnaire / forms used
sample design, instructions.)

(7) Follow-up the study: - The researchers, in the last stage,


should follow up this study to find if his recommendation are
being implemented and if not, why?

Page C D S M
WHAT IS PROMOTION:-

Promotion is one out of four basic instruments of marketing that


has the purpose to inform about other instruments of marketing
mix and to contribute to sales increase on the long term. The
promotion is always serving to specific goal. These goals can be
public informing, demand increasing, product differentiation, and
product value increasing or sales stabilizing. Usually the
promotion is targeting more than one goal.

Page C D S M
• Advertising is communication with current and potential
customers and consumers, done through paid mass media.
The channels of communication can be TV, radio, Internet,
billboards, etc.

• Public Relationship (PR) is communication toward public,


but is turned more to reputation and image of the company,
than to its products. The PR activity can be a press
conference, TV interview with company
representative, press article about donation of the company
to charity or about latest environmental project.

• Personal Sales is a way of promotion activity where sales


representative is directly contacting the customer. This
person-to-person contact has the goal of direct promotion of
the product and conclusion of sales.

• Sales Promotion represents a set of different promotional


activities that has the goal of animating customers for
purchasing. This can be value offer (discount), quantity offer

Page C D S M
(2+1), prize drawings, merchandising, direct contact
by animators in retail outlet, etc.
The approach to promotion can be different. The push strategy is
transferring the supply pressure downstream through sales
channels.

Setting the Promotion Mix

When deciding how to properly utilize the marketing


communications mix to meet your marketing objectives, it is
important to consider the relative strengths and weaknesses of
each component of the mix. Further, you must always define
your total budget first (generally defined in the Marketing and/or
Business Plan) and then decide upon the best way to leverage
the different elements of the mix to maximize the return on your
investment. You will balance the various parts of the mix to not
only create an integrated approach to your marketing
communications but you must also devote enough resources for
each component to be successful.
Reaches large, geographically dispersed
audiences, often with high frequency; Low
cost per exposure, though overall costs are
high; Consumers perceive advertised goods
as more legitimate; Dramatizes company/brand; Builds brand
image; may stimulate short-term sales; Impersonal, one-way
communication; Expensive

Most effective tool for building buyers’


preferences, convictions, and actions;
Personal interaction allows for feedback and
adjustments; Relationship-oriented; Buyers
are more attentive; Sales force represents a long-term
commitment; Most expensive of the promotional tools

Page C D S M
May be targeted at the trade or ultimate
consumer; Makes use of a variety of formats:
premiums, coupons, contests, etc.; Attracts
attention, offers strong purchase incentives,
dramatizes offers, boosts sagging sales; Stimulates quick
response; Short-lived; Not effective at building long-term brand
preferences.

Highly credible; Very believable; Many forms:


news stories, news features, events and
sponsorships, etc.; Reaches many prospects
missed via other forms of promotion;
Dramatizes company or product; Often the most under used
element in the promotional mix; Relatively inexpensive
(certainly not 'free' as many people think--there are costs
involved)

Many forms: Telephone marketing, direct


mail, online marketing, etc. Four distinctive
characteristics: Nonpublic, Immediate,
Customized, Interactive; Well-suited to
highly-targeted marketing efforts.
When deciding upon your unique marketing communications
mix, you should also consider the Product Life Cycle. Here are
some general guideline as to how and when to emphasize
different parts of the mix according to the stages of a typical
product life cycle.

Product Life Cycle

Page C D S M
Pre-Introduction: Light advertising, pre-introduction publicity
Introduction: Heavy use of advertising, public relations for
awareness, sales promotion for trial
Growth: Advertising, public relations, branding and brand
marketing, personal selling for distribution
Maturity: Advertising decreases, sales promotion, personal
selling, reminder & persuasion
Decline: Advertising and public relations decrease, limited sales
promotion, personal selling for distribution
Next let's briefly walk through each of the various parts of the
marketing communications mix.

WORKINGS

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

Page C D S M
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 schools and canteens & the aim
was to promote AMUL product.

SAMPLE SIZE: 400 schools.

Page C D S M
DATA COLLECTION TECHNIQUES

1)SOURCES OF DATA
a) PRIMARY DATA
b)SECONDARY DATA

PRIMARY DATA

To collect primary data Questionnaires & forms 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

Page C D S M
The research instrument used in the project was
Questionnaire & forms 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 &

school principles through interviews.

ANALYSIS AND STATISTICAL TECHNIQUE USED

Types of data analysis techniques used in the project:

– Tabular analysis.
– Graphical analysis.
– Percentage analysis.

DATA ANALYSIS & INTERPRETATION


We have categorized schools in three segments
which are as following:
• Government schools
• Private schools

According to my survey I have following findings


ANALYSIS
1. How many different school categories in Indore?

Page C D S M
Interpretation:
• According to my survey in my project coverage there are
two categories of schools Eg. government & private schools.

• In that categories there are 35% of the total schools are


government & rest 65% are private schools.

2). How many schools having canteen?

Interpretation:
• Out of the total number of schools surveyed 78% are
not having canteen and 22% are having the canteen
within the school campus.

Page C D S M
1. In those canteens how many use AMUL
product?

Interpretation:
• out of those 22 % of schools, which are having canteen, only
20% of the canteens are having AMUL products , rest are
not maintaining the range of AMUL products.

Page C D S M
1. Availability of AMUL product near by
schools?

Interpretation:
This graph is giving the information about the availability of
AMUL products at the near by shops , This shows:

1) AMUL products are available at the 67% of the shops rest


are not keeping AMUL products in their shop.

Page C D S M
1. AMUL vs. other brands products usage in schools
and near by area?

Interpretation:
This graph is giving the information about the usages of AMUL
products at the near by shops , This shows:

1) AMUL products are used in only 37% of the schools and by


the people near by schools. So that it can be interpreted
that other brands are having a strong market share in
comparison with AMUL.

LIMITATIONS OF THE PROJECT

Page C D S M
In every project work there is some kind of limitations
which affect the accuracy of work. Same in this project
work some of the limitations are faced which are as following:

• Timing for the promotion was very limited i.e. from 10 am to


12 am (only 2 hours).
• Data of schools was not available.
• Students of previous XII class were not available in the
school and even schools don’t have there contact numbers
(current contact numbers) so some of them could not
approached.
• In canteen survey the sample become very less because
most of the schools don’t have canteen within the school
campus.

Page C D S M
FINDINGS OF THE RESEARCH

• According to my survey only 20% to 30% of the total


schools are having canteen facility.

• None of the government schools is having canteen in


their
premises.

• In that 20-30% schools only 30 to 35% canteens are


having AMUL products.

• Retailers are not interested because they don’t have


storage facility but if company provides them such
facility (refrigerator, etc…) they will be selling AMUL
products.

• 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.

Page C D S M
• In the part of education promotional activity
80-90% of the total schools supported AMUL for its
program.

SUGGESTION & RECCOMANDATIONS

• According to the research retailers or canteen


holders are having the problem in storing of AMUL
products.

• As I found that AMUL is having very less awareness


of its chocolates so according to me more
advertisement & promotional activities should be
adopted.

• As we know that in this project our target was to


promotion of our brand in schools, so what I found is
that there are very less numbers of schools is their
in Indore who are having canteen.

• Maul should open their outlets nearby areas of


schools & canteens because high demand is there of
beverages in this segment.

Page C D S M
• Maul has a very wide range of products but
only some of the products like flavored milk, AMUL
cool milk, cheese, butter etc... Have got the good
consumers awareness rest of the products is not
known to the customers.

• As Maul is distributing gifts like AMUL VIDHYA


BHUSHAN (for 12th class topers) & AMUL VIDHYA
SHREE (for 10th class topers), according to me some
more exciting gifts should be given to toppers.

• Some programs should be organized by AMUL in


such schools.
Eg.
Birthdays, so that more and more students can
remember AMUL
Brand for a longer time.

• Some state level competition can be organized for


giving this promotion campaign more exposure and
it should be among the toppers the toppers of the
list.

• Company should arrange some kind of training


programs in the schools so that online registration
can be encouraged, it will save a lot of time and
efforts.
Page C D S M
ANNEXURE
QUESTIONNAIRE FOR THE RETAILER

Respected Sir/Madam,

1. Name of the school?

2. How many students in school?


Page C D S M
3. Do u have canteen in your school?

YES NO

4. If yes, do you use AMUL products?

YES NO

5. If yes, do you use AMUL milk?

YES NO

6. Do you use AMUL chocolate?

YES NO

7. Do you use AMUL cool?

YES NO

8. Do you use AMUL pizza?

YES NO

9. Do you use lassi?

YES NO

10.Do you use butter milk?


Page C D S M
YES NO

11.Do you use AMUL ice cream?

YES NO

12.If no , If company provides discount for you will you


purchase AMUL products?

YES NO

13.Rank the following criteria from ( 1 –4 ), where 1 is the most


important and 4 is the least important, which influences
your stocking decision?

Credit _______ Distribution channel


efficiency ______

Discount _______ Trust of the company


_______

14.Remarks :-

Page C D S M
CONCLUSION

As we know that Amul is very big organization and market leader


in dairy products. It has maximum market share in Milk, Butter
and Cheese, which are its main/core products. So, there is a need
to understand the real maket conditions. Competition will never
end so let's not avoid it but face it confidently,
Page C D S M
"For a chief executive, unless he knows where he is
going no one can take him there".

What's the use of Marketing & Advertising if it does not reach


the right people and yield desired results? Therefore it is
necessary for every individual who has something to sell but no
one to buy, to detect the problem areas and try to solve them.
But for this, knowing the right problem is extremely essential
otherwise hitting the target in dark means nothing.

Therefore, it is rightly said that a "well defined problem is half


done". Once you know your drawbacks only then you can correct
it. Therefore, to know your drawbacks you need to conduct a
survey and get information right from the ultimate users of
your product. They should be asked to bring out your
drawbacks. This will help you to not only know your pitfalls but
also what your customers want and their likes and dislikes and
while doing so build a good rapport with your customers.
While conducting such surveys you can also advertise your
products among those customers who are not much aware of it.

"There are three ways of doing a thing—- the wrong way, the
right way and our way"

whichever may be your way the ultimate aim is to achieve the


results and implement them to maximize customer
satisfaction we all know competition is intense then why not
take it positively so that it helps us to improve our product
quality, makes customers loyal to us, helps us know our
shortcomings and rectify them. The best way to overcome your
competitors is to give your customers what they expect or
probably more than that.

Page C D S M
To know the customers expectations towards Amul, I had
conducted a market Research, which helped me to know the
satisfaction, awareness and liking among customers for the
products of AMUL and analyse the situation and provide them
suggestion to improve the situation.
These suggestions if implemented would definitely yield results
and

"Ultimately the results matter, how and who does it


is immaterial".

Page C D S M
BIBLIOGRAPHY

1. www.amul.com
2. www.amuldairy.com
3. www.google.com
4. www.marketresearch.com
5. www.dairy.com
6. Research Methodology. ( Harper W.Boyd, C. R. Kothari )
7. www.quickmba.com
8. www.nddb.org
9. www.indianexpres.com
10. www.thehindubusinessline.com
11. www.business-standard.com
12. www.icmrindia.org
13. www.blogger.com
14. www.wikipedia.com
15.Works of students who did summer training at GCMMF

Page C D S M
Page C D S M