A PROJECT REPORT ON

EFFECTIVENESS OF AMUL CHOCOLATES ADVERTISEMENT on CONSUMER BEHAVIOUR TOWARDS ITS SALES

PREPARED AND PRESENTED by

R.SATHYAPRIYADHARSHINI

ACKNOWLEDGEMENT

Words are insufficient to express my gratitude toward ____________, I would like to give my heartily thanks to _________________, Manager of Administration, who permitted me to do this project. I am very thankful to _________________, who helped me at every step whenever needed and _______________who arranged all possible visits for me at AMUL.

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.

At last but not least my grateful thanks is also extended to ________ 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.

CONTENTS

Sr. No. 1.

Chapter Name

Introduction of Chocolate

2.

Introduction & History of Amul

3.

Research Methodology

4.

Research Design

5.

Limitations & Literature review

6.

Data Analysis & Findings

7.

Suggestions

8. 9.

Conclusion

Bibliography

INTRODUCTION AND HISTORY OF AMUL

INTRODUCTION AND HISTORY OF AMUL

In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 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 since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, 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 a farmers' 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
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private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word.

However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai 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 cooperation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk.

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 the 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 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.

PEOPLE POWER: AMUL'S SECRET OF SUCCESS

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:

y Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations, y Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. y Provide a support system to the milk producers without disturbing their agro-economic systems, y 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 and y 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

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people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA.

Plants

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

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite.

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Third plant is at Kanjari, which produces cattelfeed.

Fourth 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.

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BOARD MEMBERS

Shri Ramsinh Prabhatsinh Parmar Shri Rajendrasinh Dhirsinh Parmar Shri Dhirubhai Amarsinh Zala Smt. Mansinh Kohyabhai Chauhan Shri Maganbhai Gokalbhai Zala Shri Shivabhai Mahijibhai Parmar Shri Pravinsinh Fulsinh Solanki Shri Chandubhai Madhubhai Parmar Shri Bhaijibhai Amarsinh Zala Shri Bipinbhai Manishankar Joshi Smt. Sarayuben Bharatbhai Patel Shri Ranjitbhai Kantibhai Patel

Chairman Vice-Chairman Director Director Director Director Director Director Director Director Director Director Managing

Shri B. M. Vyas

Director G.C.M.M.F

Shri Deepak Dalal

District Registrar Managing Director

Shri Rahul Kumar

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ADVERTISEMENT FOR AMUL

15

RESEARCH METHODOLOGY

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RESEARCH OBJECTIVES

 To know the relationship of sales with the advertisement.  To know awareness of people towards Amul chocolates.

 To know in which segment chocolates are mostly like/preferred.

 To know which advertisement tool is mostly preferred by people.  To know the preference of Amul chocolates with comparison to Other competitive brands.

 To know the factors which affects consumer s buying behaviour to purchase chocolates.

3. LITERATURE REVIEW OF AMUL CHOCOLATES: y A study conducted on amul chocolates of the market for confectionery products in India.A report prepared for the National Confectioners Association January, 2005 y A report prepared for The National Confectioners Association Report prepared by mitalishah19 Date Submitted: 09/03/2011 y To Analyze Sales of Dairy Products Amongst Unorganized Retailers and Concept Testing of Aseptic milk in Pouch for Amul in Pune and PCMC region.

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Post Graduate Diploma in Management (Marketing) By SHASHANK SHEKHAR AGARWAL y Study conducted for amul at Indira School of Business Studies, Tathawade, Pune 411033 Report prepared by zebrarhino Data submitted: 10/7/2010 y DESSERTATION REPORT ON INDIAN CHOCOLATE INDUSTRY OF AMUL Submitted by Ankur arora (MBA) AMITY INTERNATIONAL BUSINESS SCHOOL (AMITY UNIVERSITY,NOIDA, Sec-44.)

y Sales and distribution management of AMUL SUBMITTED By: Nirmay Abichandani M-09-01 Dilip Pawara M-09-38 y MICRO ANALYSIS OF AMUL & GUJARAT COOPERATIVES OF MILK MARKETING FEDERATION Submitted by: Rashid Ali. Rukmini Devi Institute of Advanced Studies (Aff. To Guru Gobind Singh Indraprastha University)

y EFFECTIVENESS OF CHOCOLATE ADVERTISEMENT TOWARDS ITS SALES KAIRA DISTRICT CO-OPERATIVE MILK PRODUCESUNION LIMITEDANAND submitted by: chandraj 1st may to june 30th y Amul taste of india Submitted by: 666 preran88 Date of submitted:02/07/2011 Dept of Management GFGC, Mysore y AMUL CHOCOMINIS By: anmol.rao Nov 03, 2008

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y amul chocolate are really amulya By: mdtabishnasim Aug 19, 2007 y Master in business administrative Of Doon Business SchoolDehradunProject report OnMARKET RESEARCH WITH REFERENCE TO Amul Chocolate Lt.Col.(Dr.) Anirudh tomarMBA 2nd Semester Director Doon Business School DOON BUSINESS SCHOOL y A study on penetration amul chocolates in retail outlets of pune city This study is conducted from 8th june 09 to 8th august 09 By: sumeet singh jasrotia PGDM,ASOMA,Asian school of management studies

y Business Strategies for Managing Complex Supply Chains in Large Emerging Economies: The Story of AMUL Pankaj Chandra Devanath Tirupati Indian Institute of Management Vastrapur, Ahmedabad 380015 India chandra@iimahd.ernet.in devanath@iimahd.ernet.in Revised April 2003 y Summer internship PROJECT Post Graduate Diploma in Business Management, Report on Identifying factors behind decreasing market share of amul chocolate and study of consumer behavior Submitted by :-Arpita Gupta PGDM,Summer Internship Report, PGDM 09-11 | 1 y Amul products in india, Submitted by: pinkykh. Date submitted: 4/18/2010

y Effectiveness of advertising in amul chocolates, qweryallprojectreports@gmail.com, Submitted by: BK Mehata. Date: 3/06/2005
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RESEARCH INSTRUMENT USED - DETAILS & WHY? The data collected for this project is Questionnaire

Questionnaire in the project consists of:

 Multiple choice questions  Dicthomus  Open ended question SAMPLING TECHNIQUE USED & SAMPLE SIZE

SAMPLING METHODS The whole city of Madurai was divided into some geographical areas and I have chosen annanagar, k.k nagar, periyar, gowripalayam, south masi street, west masi street, bypass road, villapuram . The total sample size was 197.

CLUSTER SAMPLING Here the whole area is divided into some geographical area and a definite number of consumers were to be surveyed.

CONVINIENCE SAMPLING This type of sampling is chosen purely on the basis of convenience and according to convenience.I visited Superstores, Theatres and Gymnasium.

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SAMPLING
1. Sampling Technique : Non probability sampling (A non probability sampling technique is that in which each element in the population does not have an equal chance of getting selected)

2. Sample Unit

: People who buy chocolates available in retail outlets, superstores, etc

3. Sample size

: 197 respondents (Age ranging between 15 yrs to 65 yrs)

4. Method

: Direct interview through questionnaire.

5. Data analysis method

: Graphical method.

6. Area of survey

: Madurai District.

FIELD WORK- METHOD USED FOR DATA COLLECTION

y Questionnaire was prepared keeping the objective of research in mind.

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y Questions were asked to respondents as regards to there willingness to purchase Chocolates.

y The help of questionnaires conducted direct interviews, in order to get accurate information.

y In order to get correct information I had to approach consumers ranging from 15 yrs to 65 yrs.

y I visited as many respondents as I can and asked them their real likings about any chocolate and also got an idea, How a chocolate should be?

y In order to collect accurate information I visited to Superstores, Theatres and Gymnasium, each and every question was filled personally by the respondents and checked properly.

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DATA ANALYSIS AND FINDINGS

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PRIMARY TABULATION & INTERPRETATION

[1] What kind of Chocolate do you eat? Branded Non branded 92 % 08%

INFERENCE
92% respondents in the region of Madurai consume Branded Chocolates, while 8% still consume non branded.

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[2]

Who uses chocolates in your family? Children Teenager Young Old 34 % 33 % 26 % 07 %

CHOCOLATE USERS

7% 0% 35% 26%
Teenager Young Old Children

32%

INFERENCE

Mostly children & teenagers likes chocolates in their families. So we should give stress on children & tenager segment to increase market share. Young people also using chocolates for consuming & for giving as a gift.

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[3]

What form of Chocolate do you like? Cookies Bar Wafer Other 14% 60% 20% 06%

Form of chocolate

6% 20%

14%

Cookies Bar Wafer Other

60%

INFERENCE

The above diagram suggest that the most preferred form is bar i.e. 60%, followed by wafer i.e. 20%, Cookies are all time favorites with 14% while other forms are preferred to the extent of 6%.

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[4]

Which Television channel you like to watch most?

STAR VIJAY ZEE TAMIL SUN TV CARTOON Others

97 15 30 30 25

T.V.CHANNEL PREFERENCE
Others Cartoon Sony Zee Star 0 20 40 15 97 60 80 100 120 25 30 30

INFERENCE
Mostly people like STAR VIJAY channel. This channel is very popular among all the age group people. SUN TV & CARTOON channels are also popular but not as STAR. In other channels sports and news channels are preferred. CARTOON channel is specially preferred by children. So it will be more beneficial top give advertisements on STAR VIJAY & CARTOON channels, it covers all the age groups.

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[5]

In between what time you like to watch television? Timings _____________ 5 to 8 pm 8 to 11 pm Late Night Morning Afternoon 33 % 37 % 10 % 15 % 05 %
TIMING PREFERENCE

5%
5 to 8pm

15% 10% 38%

32%

8 to 11pm Late night Morning After noon

INFERENCE
From the survey it was found that 37% of the respondents likes to watch T.V. after 8 pm to 11 pm. Because Mostly people belong to service class & females in the families got their work by this time. At 5 to 8 pm 33% respondents in which especially children watch cartoon channel & etc. so it is good to advertise on preferred channels on these timings.

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[6]

By which media you prefer to watch advertisements?

Television Hoardings Newspapers Magazines Others (Mention)

67 % 17 % 08 % 05 % 03 %

MEDIA PREFERENCE TO WATCH ADVERTISEMENT

5%3% 8% 0% 17% 67%

Television Hoardings Newspapers Megazines Others

INFERENCE
Mostly people like to watch an advertisement through Television because most of them belongs to service class. Children are getting attracted through advertisement on television and hoardings. Company tries to give attractive advertisement through T.V. and hoardings because advertisement through hoardings is less costly.
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[7] What factors effects you in a chocolate advertisement? Brand ambassador Jingles Comedy Music Emotions Others (Mention) 60 30 45 40 20 05

EFFECTIVE FACTORS
70 60 50 40 30 20 10 0 Jingles Brand ambassador Comedy Music Emotions Others

INFERENCE
Good Brand Ambassador generally effects people s perception towards a product and create an image in their mind. Mostly people likes to see celebrities like Amitabh Bacchan, Sachin Tendulkar, M.S.Dhoni, Saniya Mirza, suriya, asin as a Brand Ambassador in chocolate advertisements.At the same time people like comedy, slow music & specially children like jingles in advertisements.

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[8]

Have you ever tasted Amul Chocolate? Yes No 90 % 10 %

Ever Tasted

10%

Yes No

90%

INFERENCE
The chart shows that 90% respondents have tasted Amul Chocolate, while still 10% have not tried Amul Chocolates. Amul must use proper techniques in order to cater the needs of every common man.

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[9] Can you recall AMUL Chocolate advertisement?

Yes No

32 % 68 %

Advertising Effectiveness

32%
Yes No

68%

INFERENCE
Here it was observed that only 32% respondents in the city of madurai were able to recall Amul Chocolate advertisement. This shows how much Amul lags behind in promotional activities and advertisement. Therefore Amul must use strong promotional activities and advertisement in order to retain their potential consumers.

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[10] Which Chocolate do you like most?

Nestle Cadbury Amul Any other

28% 58% 13% 01%

Market share

13%

1%

28%

Nestle Cadbury Amul Any other

58%

INFERENCE

We can clearly gauge from the pie chart that Cadbury being on the top slot with 58% market share dominates the chocolate market, followed by Nestle with 28% share, whereas Amul have only 13% market share and thus lags behind.

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[11] What is the frequency of purchasing Chocolate? Daily Weekly Fortnightly Occasionally 17 % 22 % 13 % 48 %

Frequency of purchase

17 % 48% 22% 13%

Daily Weekly Fortnightly Occasionally

INFERENCE
The frequency of chocolate differ a lot where 17% respondents buy it daily, 22% weekly, 13% fortnightly, and there is a Hugh chunk of people who buy chocolate occasionally.

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[12] How do you scale your Chocolate?

ATTRIBUTE

POOR

AVERAGE

GOOD

EXCELLENT

PRICE

48%

22%

23%

07%

SWEETNESS

20%

14%

20%

46%

PACKAGING

33%

18%

12%

37%

SOFTNESS

12%

16%

23%

49%

SCHEMES

37%

13%

17%

33%

AVAILABILITY

12%

15%

23%

50%

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LIMITATIONS

 Limited time available for interviewing the respondents. As a result of this it was not possible to gather full information about the respondents.

 When I interviewed children and teenagers, sometimes they use to give answers under the influence of their parents or elders.

 As summer training is going under summer season so sometimes people are less interested in filling up questionnaire.

 Non-cooperative approach and rude behavior of the respondents.  If the respondents answer does not falls between amongst the options given then it will turn up to be a biased answer.

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MY FINDINGS
 During the survey it was found that still there are 10% people who have not tasted Amul Chocolate.

 Lack of Awareness in consumers. Many people are not know

about Amul chocolates specially children and teenagers.

 As I found that the main product of Amul is Milk and company

firstly wants to capture maximum market share in milk market which is approx. 66%, after it Amul is concentrating upon butter & cheese which has market share of approx. 88%, so it is not concentrating upon chocolates.

 When I interviewed people then many of the people can not recall
Amul chocolate advertisement. It shows Lack of Advertisement or advertisement is not timely given or advertisement is not given on right time.

 In its advertisement is not using any brand ambassador which attracts all age group people like Cadbury.

 There is lake of Sales Promotional Activities i.e. free tattoo, extra weight, toys, quiz contest etc.

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 Cadbury is main competitor and strategically better performer then Amul.

 I find the main thing is that Amul brand name has very good image in consumer s mind and they consider it as Pure & Good Product.

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SUGGESTIONS & CONCLUSIONS

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SUGGESTIONS
 In order to maintain and increase the sales in the city of madurai, the following recommendations regarding Amul Chocolates; particularly regarding advertisement, distribution, promotional policies, etc, are hereby suggested:

 First and foremost Amul should take proper action in order to improve service, because although being on a top slot in Butter and milk supplies it does not get the sales in chocolate, which it should get.

 Company should use brand ambassador which attracts

each age

segment i.e. Saniya Mirza, Shaktimaan, Amitabh Bacchan, Superman, Krrish, Jadoo, suriya, asin.

 Amul

should

give

local

advertisements

apart

from

the

advertisements given at the national level. Local advertisement must mention the exclusive Amul shops of the city.

 Try and change the perception of the people through word of mouth about Amul in advertisements, because they are the best source to reach Children and families.

 Though Amul chocolate advertisements are rarely shown on television yet many people could recall it as per the data of research. It shows that there is only need to give advertisement

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only to rememorize customers. Because Amul is very strong brand name.

 Company should launch chocolate in new attractive packing to change image of Amul chocolate in consumers mind.

 Company should introduce sales promotion schemes like free weight, pranky, tattoo, contest, free gifts etc.

 Advertisement can be done with the help of animations that attracts children and teenagers because chocolates are consumed largely in this segment.

 Company should launch chocolates in new flavors like

Mix Fruit Pineapple Elaichi Coffee Strawberry Banana Mango

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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. As we know Amul is a cooperative organisaion but chocolate industry is a profitable industry we can t ignore it. With the help of research, company can find out its week points in chocolate product and can increase its market share through rectify mistakes. People have believed in Amul s product and they will accept its chocolates also if effective actions were taken. The survey resulted into following conclusions :

 Amul must come up with new promotional activities such that people become aware about Amul Chocolates like Chocozoo, Bindaaz, and Fundoo.  Quality is the dominating aspect which influences consumer to purchase Amul product, but prompt availability of other chocolate brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales.  In comparison to Amul Chocolate, the other players such as Cadbury, Nestle, and Perfetti provide a better availability and give competition to the hilt.  People are mostly satisfied with the overall quality of Amul Chocolate, but for the existence in the local market Amul must use aggressive selling techniques.

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ANNEXURES

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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 )

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APPENDIX

QUESTIONNAIRE
I am a student of MBA from VELAMMAL conducting COLLEGE a survey OF on ENGINNERING AND TECHNOLOGY

Effectiveness of AMUL CHOCOLATES advertising towards its sales.

[1]

What kind of Chocolate do you eat? Branded ______ Non-branded ______

[2]

Who uses chocolates in your family? Children Young Teenager Old

[3]

What form of Chocolate do you like? Cookies _____ Wafer _____ Bar_____ Other _____

[4]

Which Television channel you like to watch most? STAR VIJAY _______ SUN Others _______ _______ ZEE TAMIL________ CARTOON ________

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[5]

In between what time you like to watch television? Timings _____________

[6]

By which media you prefer to watch advertisements? Television Newspapers Others (Mention) Hoardings Magazines

[7]

Which advertisement you like the most? _______________

[8]

What factors effects you in a chocolate advertisement? Brand ambassador _______ Comedy Others (Mention) _______ _______ Jingles ________ Music ________

[9]

Have you ever tasted Amul Chocolate? Yes_____ No ______

[10] Can you recall AMUL Chocolate advertisement? Yes ____ No ____

[11] What is the frequency of purchasing Chocolate? Daily ______ Weekly _______

Fortnightly ______

Occasionally_______

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[12] How do you scale your Chocolate?

ATTRIBUTE

POOR

AVERAGE

GOOD

EXCELLENT

PRICE

SWEETNESS

PACKAGING

SOFTNESS

SCHEMES

AVAILABILITY

[13] Which Chocolate do you like most? AMUL CADBURY NESTLE PERFETTI OTHERS ____________ ____________ ____________ ____________ ____________

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[14] What would you like to see in a chocolate advertisement? ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________

NAME:

___________

AGE:

___________

10-15

15-25

25-35

35-45

45 and above

THANK YOU _________________ ______________ ____________

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