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Submitted In partial fulfillment Of the requirement for degree of

Master in business administrative


(2010-2012)

Of Doon Business School Dehradun Project report On MARKET RESEARCH WITH REFERENCE TO Amul Chocolate

Submitted by:Project guided by:Sunil Kumar Dubey

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Lt.Col.(Dr.) Anirudh tomar MBA 2nd semester Director Doon Business School

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DECLEARATION

I sunil kumar dubey, student of MBA 2nd sem. ROLL NO.10360500086,hereby declear that I done work my research report on the topic titled PROJECT ON MARKET RESEARCH WITH REFERENCE TO AMUL CHOCOLATE

SUNIL KUMAR DUBEY MBA 2ND SEM. (20102012) ROLL NO.13060500086

DOON BUSINESS SCHOOL

ACKNOWLEDGEMENT

My genial thanks to the facilities extended by the DOON BUSINESS SCHOOL which Encourage me to shape our Endeavour. I solicit the active assistance of our project incharge Lt.Col.(Dr.) Anirudh tomar ( Director Doon Business School ),who gave me management searchlight at every stage, make possible this challenging Task and has been kind enough to extend his able, pious and virtual supervision throughout the study. It was only his guidance, ability supervision and extraordinary consultancy pain taken in each and every step in completing the present project. I would also like to acknowledge greatly the helping hand of our faculty members only Lt.Col.(Dr.) Anirudh tomar ( Director Doon Business School ).

SUNIL KUMAR DUBEY MBA 2ND SEM.

DOON BUSINESS SCHOOL

(2010-2012) ROLL NO.13060500086

CERTIFICATE OF ORGINALITY
This is to certify that Sunil kumar Dubey bonafide student of Master in Business Administration Semester 2nd of this institute has completed the semester project titled Market Research on amul Chocolate The matter embodied in this project is a genuine work done by the student and has not been submitted whether to this university or to any university/institute for the fulfillment of requirement of any course of study.

Signature of the student Signature of the guide .. .. Name and address designation

Name and

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..

1 . History and introduction 07 2. Board of Directors.09 3. Reason for Success.10 4 . Amul Philosophy...11 5. Product Profile...12 6. Product Line...14 7. The New Amul Chocolate.15 - Composition 8. Market Segmentation17 9. Market Targeting..20 10. Marketing Mix...22 11. Pricing and Promotion Strategy.24 12. Advertising and Banners.29 13. Product, Positioning and Distribution Strategy31 14. Market Research.35 15. Research Methodology...37 16. Limitation39 17. Recommendation40

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18. Achievement of Amul movement..42 19. Journey of Amul.46 20. SWOT analysis47 21. Research Objective.49 22. Amul Brand Building.52 23. Company Financials...53 24. My Finding..55 25. Conclusion...56 26. Bibliography...58 27. Questionnaires.59

Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand. Some cite the origin as an acronym to (Anand Milk Union Limited).

The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity. It is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India one of the largest milk producers in the world. It is also the world's biggest vegetarian cheese brand.

Amul's product range includes milk powders, milk, butter, ghee, cheese, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006, Amul plans to launch

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India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade .

Amul is the largest food brand in India with an annual turnover of US $868 million (2005-06). Currently Amul has 2.41 million producer members with milk collection average of 5.08 million litres/day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets [5]. Other potential markets being considered include Sri Lanka.

The brand name Amul means AMULYA. This word derived from the Sanskrit word AMULYA which means priceless. A quality control expert in Anand 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 cooperative 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 ANANDPATTERN).

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Shri B. M. Vyas -------Shri Deepak Dalal Shri Rahul Kumar shri Ramsinh Prabhatsinh Parmar Shri Rajendrasinh Dhirsinh Parmar Shri Dhirubhai Amarsinh Zala -

ManagingDirectorGCMMF District Registrar Managing Director Chairman Vice Chairman Director Director Director

Smt. Mansinh Kohyabhai Chauhan Shri Maganbhai Gokalbhai Zala -

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Shri Shivabhai Mahijibhai Parmar Shri Pravinsinh Fulsinh Solanki Shri Chandubhai Madhubhai Parmar Shri Bhaijibhai Amarsinh Zala Shri Bipinbhai Manishankar JoshiSmt. Sarayuben Bharatbhai Patel Shri Ranjitbhai Kantibhai Patel-

Director Director Director Director Director Director Director

Robust Supply Chain


The vast and complex supply chain Hierarchical network of cooperatives Stretches from small suppliers to large fragmented markets

Diverse Product Mix


Amul Butter, Milk Powder, Ghee, Amulspray, Cheese, Chocolates, Shrikhand, Ice cream, Nutramul, Milk and Amulya

Strong Distribution Network


Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. 47 depots with dry and cold warehouses to buffer inventory of the entire range of products.

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Technology and e-initiatives


New products Process technology Complementary assets to enhance milk production E-commerce.

Progressive addition of higher value productswhile maintaining the desired growth in existing products.

Amul introduced products with consistent value addition but never left the core philosophy of providing milk at a basic, affordable price

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Research for availability and acceptability of Amul Chocolate and their different variants including New Launched CHOCOLATES: MAJOR TYPES & BRANDS Types Brand

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Molded chocolates Dairy Milk, Truffle, Amul Milk Chocolate, Nestle Premium, NestleMilky Bar, Nestle ClassicCount lines 5 Star, Perk, Kit Kat, Picnic, MunchPanned products Gems (Cadbury), Nutties, Marbles (Nestle) AMUL CHOCOLATE GIFT FOR SOMEONE YOU LOVE AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids,and Chocolate mas

The various brands of Amul's bread spreads are Amul Lite, Amul Butter, and Delicious Table Margarine.

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The Brand Amul's milk drinks are sold under various names such as Amul Kool, Amul Kool Cafe, Kool Koko, Amul Kool Chocolate Milk, and Amul Masti Spiced Buttermilk.

Amul's powder milk are sold under many names like Amulya Dairy Whitener, Sugar Tea Coffee Whitener, Sugar Skimmed Milk Powder, and Amul Instant Full Cream Milk Powder.

The brand's cheeses are also sold under various names such as Gouda Cheese, Amul Cheese Spreads, and Amul Emmental Cheese.

Amul Brand's desserts are sold under many names like Amul Basundi, Amul Lassee, Gulab Jamun Mix, Amul Shrikhand, and Amul Ice Creams.

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AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, Chocolate mass

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Composition:

Total fat Cholesterol Sodium Carbohydrate Dietary fiber Vitamin A Vitamin C Calcium Iron

32% 2% 2% 7% 9% 2% 2% 8% 4%

Composition:-

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Milk Fat Sugar Total Fat (Milk Fat + Cocoa Fat) Cocoa Solids Milk Solids

2% 55% 32.33%

7.5% 20%

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Market segmentation is the process in marketing of grouping a market


(i.e. customers) into smaller subgroups. These markets are often termed niche markets or specialty markets. These segments are fairly homogeneous in their attitudes about certain variables.

Because of this intra-group similarity, they are likely to respond somewhat similarly to a given marketing strategy. That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way, and promoted in a certain way.

The purpose of segmentation is to identify and target prime customer groups (eg the 20% that account for 80% of your sales) so that you get the maximum return from a limited marketing budget (the most bang for your buck).

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Market Segmentation Of Amul CHOCOLATE


Homogeneity within the segment Heterogeneity between segments Segments are measurable and identifiable Segments are accessible and actionable Segment is large enough to be profitable.....

These criteria can be summarized by the word SADAM:


S Substantial: the segment has to be large and profitable enough A Accessible: it must be possible to reach it efficiently D Differential: it must respond differently to a different marketing mix A Actionable: you must have a product for this segment M Measurable: size and purchasing power can be measured.

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The Process-Data Model Of Marketing Segmentation


o Above given is a generic process-data model is given for the whole

process of segmenting and positioning as a basis of deciding on the most effective marketing strategy and marketing mix.

o This model consists of the three main activities: segmenting, targeting and positioning. It shows the chronological dependency of the different activities.

o On the right side of the model the concepts resulting from the activities are showed. The arrows show that one concept results from one or more previous concepts; the concept can not be made when the previous activities have not taken place.

o Below the three main activities are shortly described as well as their role as a basis for the next step or their dependency on the previous step.

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After the most attractive segments are selected, a company should not directly start targeting all these segments. The attractiveness of the segments is also depending on other important factors. In the main activity of defining a target market, four sub activities are given which are the bases for deciding on which segments will actually be targeted.

AGE GROUP TARGETED

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The four sub activities performed by Amul while targeting are:-

Defining the abilities of the product and resources needed to enter a market Analyzing competitors on their resources and skills Considering the companys abilities compared to the competitors Deciding on the actual target markets.

o The first three sub activities are described at the topic competitor analysis. The last sub activity of deciding on the actual target market is an analysis of the information made available when comparing the companies abilities to the competitors. o This analysis leads to a list of segments which are most attractive to target and have a good chance of leading to a profitable market share. o Obviously, targeting can only be done when segments are predefined; there have to be segments to analyze the competitors which are in this market. When the process of targeting is ended, the markets to target are selected, but the way to use marketing in these markets is not yet defined. To decide on the actual marketing strategy, knowledge of the differential advantages of each segment is needed. When positioning a product, the segments are first analyzed, this process is described next.

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The major marketing management decisions can be classified in one of the following four categories: PRODUCT PRICE PLACE PROMOTION

These variables are known as the marketing mix or the 4 P's of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market. The marketing mix is portrayed in the following diagram:

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The Marketing Mix

PRODUCT

POSITION

TARGET MARKET

PRICE

PROMOTION

o The firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner.
o Now, lets see the marketing mix for new launch of

AMULS CHOCO CRUNH i.e., their products, price, place and promotion.

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Competition Based Pricing


Setting the price based upon prices of the similar competitor products. Amuls new launch Choco Crunch Pricing is based on three types:1) Product is lasting distinctiveness from competitor's product. here we can assume a) The product has low price elasticity. b) The product has low cross elasticity. c) The demand of the product will rise. 2) Products have parishable distinctiveness from competitor's product, assuming the product features are medium distinctiveness. 3) Products have little distinctiveness from competitor's product. Assuming that: a) the product has high price elasticity. b) The product has some cross elasticity. c) No expectation that demand of the product will rise. Price is the factor that beats out all other choclates in the competition. Such as Cadbury. If you have been you must have seen that Amul and Cadbury frenchise are right next to each other. But if given the choice people would prefer Amul products and not Cadbury as the prices of Amul product is quite cheap as compared to their competitors like Cadbury and

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this has worked as an advantage for Amul since most of the customers prefer amul product over cadburys product, due to this price factor. The prices for an average milk product ranges between Rs. 20 and Rs. 35.

Comparing Prices Of AMUL and CADBURY:


Product Dry fruit Choco Crunch (pack of 20pcs)
By comparing the prices of the products of Amul and cadbury, we can see that the prices offered by Cadbury are on the higher side as compared to Amul. Thus we can see that cadburys target customers are professionals, working couples and families in the sec- a and sec-b categories that detest the loud ambience of Amul and who are willing to pay higher prices. Whereas Amuls typical customers are between the age of 0750 years, which shows that these include childrens, youngsters and also aged peoples or are from the upper middle class or middle class families, who can afford these prices and looking at these target customers the company has designed its outlet to look young and trendy with vibrant colors such as brownie, black current (purple) and Butter scotch predominating the outlets.

AMUL
(Rs.)

CADBURY
(Rs.)

80

100

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A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisations promotional strategy can consist of:

Advertising:

Is any non personal paid communication using any form of mass media?

form

of

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Public relations: Involves developing positive relationships


with the organisation media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention.

Sales promotion: Commonly used to obtain an increase in


sales short term. Could involve using money off coupons or special offers.

Promotion Budget COST SHEET


**

SCHEDULE A

PARTICULARS Mascot (Mooh) Television Advertisements Radio Jingles Banners and Hoardings Print Advertisements (Newspapers) Print Advertisements(Magazines) World Cup Promotional Activity Payment to brand ambassador

Rate 100/day

Total Cost 10,000 90,000 6,045.45 58,000 60,000

45,500

-Nil 3,50,000

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Above A Pull Strategy (Left) Push Strategy (Right).

Communication by the manufacturer is not only directed towards consumers to create demand.

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A push strategy is where the manufacturer concentrates some of their marketing effort on promoting their product to retailers to convince them to stock the product. A combination of promotional mix strategies are used at this stage aimed at the retailer including personal selling, and direct mail. The product is pushed onto the retailer, hence the name. A pull strategy is based around the manufacturer promoting their product amongst the target market to create demand. Consumers pull the product through the distribution channel forcing the wholesaler and retailer to stock it, hence the name pull strategy. Organisations tend to use both push and pull strategies to create demand from retailers and consumers.

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ADVERTISING:-

An Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in between George Fernandes and Vajpayee. Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. The pun in her words has been popular. The Amul ads are one of the longest running ads based on a theme, now vying for the Guinness records for being the longest running ad campaign ever. Sylvester daCunha, was the managing director of the advertising agency, ASP, that created the campaign in 1967 whose charm has endured fickle public opinion, gimmickry and all else.

BANNERS:-

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A strong emphasis on target costing, design-to-cost, value engineering, and design for manufacturability. Minimum product variety. Significant manufacturing and accounting involvement in development. Suppliers are well-integrated into Cost the development process. Factory uses high volume equipment specifically oriented to the product; automated material handling. A disciplined and rigorous product development process. Strong focus on understanding customer needs and providing products Quality / that meet those needs. Use of techniques like FMEA, FTA, Reliability / FRACAS, DOE, Taguchi Methods, poke-yoke, and reliability Heavy emphasis on testing and qualification. Dependability prediction.are oriented to self-checking and adjustment and use Processes of computer- aided inspection and test equipment. Use of modular design approaches. Sufficient resources to undertake development processes underway. Continuous surveillance of the marketplace and understanding of customer Time-to- needs. Well-defined development processes based on tightly integrated design automation tools. Well-planned and managed Market programs with clear definition and acceptance of responsibilities. Process equipment to handle a wide range of work envelopes; FMS; quick set-up and changeover. A technology plan and roadmap based on the business and product strategy and plan. Effective technology management. Process to review new technologies developed outside for n ew Innovativeness applicabilitytointernally. Effective process to deploy design technology development programs. State-of-the-art / Technology and analysis tools to support requirements of new technology. Policies to invest in training and development of personnel to master new technology. Culture open to new ideas and taking risks. Investment in new process technology.
A starting point is to define and understand the company's marketplace, customer needs and competition. Based on this assessment, the company's primary competitive dimensions can be selected and a strategy defined to develop and enhance these competitive dimensions. Once this is done, product and process design based on IPD can be oriented to implement this strategy.

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When the list of target markets is made, a company might want to start on deciding on a good marketing of a product. But an important step before developing the marketing mix is deciding on how to create an identity or image of the product in the mind of the customer. Every segment is different from the others, so different customers with different ideas of what they expect from the product.

The Process Of Positioning The Product Of A Company:


1. Identifies the differential advantages in each segment 2. Decides on a different positioning concept for each of these segments. This process is described at the topic positioning; here different concepts of positioning are given. The process-data model shows the concepts resulting from the different activities before and within positioning. The model shows how the predefined concepts are the basis for the positioning statement. The analyses done of the market, competitors and abilities of the company are necessary to create a good positioning statement. When the positioning statement is created, one can start on creating the marketing mix.

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B2C and B2B


The process described above can be used for both business-tocustomer as well as business-to-business marketing. Although most variables used in segmenting the market are based on customer characteristics, business characteristics can be described using the variables which are not depending on the type of buyer. There are however methods for creating a positioning statement for both B2C and B2B segments. One of these methods is MIPS: a method for managing industrial positioning strategies by Muhlbacher, Dreher and GabrielRitter (1994).

In order to ensure a continuous & efficient distribution, an approximate figure has to be arrived at for getting the initial orders & to ensure adequate supply so that any delays or resultant losses are avoided. For this purpose, the company adopted the consumer response hierarchy model so that, it is ensured that all the company enters the market with a bang avoiding any problems of late or inadequate supplies. This is highly essential to support the huge promotional budget, since if the supplies arent at the right time, all other effort can be in vain.

As Per The Consumer Response Hierarchy Model; The Calculations Are Like Below:
Trial

Repurchase

5% of Trial 10% of Preference Preference 20% of Liking 40% of Knowledge 60% of Awareness 80% of Targeted Population

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Studying The Demographic Conditions Of INDIA

It is expected that 80% of this targeted population will get aware about the products with the help of the sales promotion, advertising and other marketing tactics. Out of the People being aware of the products & the company, 60% will have somewhat exact knowledge of the product. It is expected that out of the people having the knowledge of the product, with the product features and the requirement of milk in the country, 40% will develop a liking for the products.

20% of the target audience who have developed a liking, will opt for the companys product as against the products they are using for daily consumption.

10% of the people who might prefer the product, will actually try it for the first time.

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5% of the people who have tried it for the first time, might be convinced to purchase the product again Thus, adding up the people trying the product and the re-purchaser of the products, it comes up to 624960 people.

Market research is discovering what people want, need,

or believe. It can also involve discovering how they act. Once that research is complete it can be used to determine how to market your specific product. Whenever possible, try to reduce risks at the earliest possible stage. For example you could carry out market research early on and not wait until you are almost ready to enter the market. If early market research reveals that your business idea has real potential, you can use this information in planning the build-up of your business.

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For starting up a business there are a few things should be found out through market research in order to know if your business is feasible. These are things like: Marketing research is a systematic gathering, recording and analysis marketing problem to facilitate decision making. - Coundiff & Still. Marketing research is a systematic problem analysis, modelbuilding and fact finding for the purpose of important decisionmaking and control in the marketing of goods and services. - Phillip Kotler

Market Information
Market information is making known the prices of the different commodities in the market, the supply and the demand. Information about the markets can be obtained in several different varieties and formats. The most basic form of market information is the best quotation and last sale data, including the number of shares, with respect to a particular security at a given time.

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Examples Of Market Information Questions Are:

Who are the customers? Where are they located and how can they be contacted? What quantity and quality do they want? What is the best time to sell? What is the long-term or historical price data over a number of years? What is the expected production in the country? Is there more demand for one product or another? Etc.

OBJECTIVE OF RESEARCH

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Assessment of present Amul chocolate market Size of Market Availability, Awareness, Acceptability of AmulChocolates.Share of Amul Share of Amul Chocolates.Customers Expectations Required Changes, Defects(Shortcomings) of Amul Chocolates.Competitors Size, Share, New product launching. RESEARCH DESIGN SAMPLE DESIGN: Of the total sample design Customer and Retailers survey was formulated on basis of Selective sampling and the Distributors survey was based on total Census sampling A total 150 Customer Surveyed.

A total 50 Retailers Surveyed.

A total 5 Distributors were Surveyed

SOURCES OF DATA

Data were collected from two sources

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Primary sources Which include Questionnaire, Direct interviewand data collected on personal observation. These are the data,which are collected on self-basis. Secondary Data Which Include Journals, Magazine, News Paper and Net. These are the data, which are collected o from thesecondary sources, which are made available by other organizationor company through their annual reports or journals or newsmagazine.

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

When I interviewed children and teenagers, sometimes theyuse togive answers under the influence of their parents or elders.

Sometimes the problem which I face is language problem forwhich I have to make them understand.

Non-cooperative approach and rude behavior of therespondents.

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Must enter into marketing alliances with various portals to offer products (on those portals that were developed for festive occasions and celebrations such as Valentines Day and Friendship Day . Rejuvenate and strengthen the existing brands Extend its reach to semi-urban and rural markets. Sell its products through ' non-traditional ' outlets like music stores (such as MusicWorld), malls , renowned bookstores and popular apparel outlets (such as Pantaloons and Wills Sport boutiques). To put chocolate carts (similar to traditional bicycle ice-cream carts ) in malls and near college campuses to increase its reach. Increase frequency of advertisement . 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.

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The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level. The above three-tier structure was set-up in order to delegate the various functions, milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. This helps in eliminating not only internal competition but also ensuring that economies of scale is achieved. As the above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programme, it is known as the Amul Model or Anand Pattern of Dairy Cooperatives. Responsible for Marketing of Milk & Milk Products Responsible for Procurement & Processing of Milk Responsible for Collection of Milk Responsible for Milk Production

The phenomenal growth of milk production in India from 20 million MT to 100 million MT in a span of just 40 years has been made possible only because of the dairy cooperative movement. This has propelled India to emerge as the largest milk producing country in the World today. The dairy cooperative movement has also encouraged Indian dairy farmers to keep more animals, which has resulted in the 500 million cattle & buffalo population in the country the largest in the World. The dairy cooperative movement has garnered a large base of milk producers, with their membership today boasting of more than 13 million member families. The dairy cooperative movement has spread across the length and breadth of the country, covering more than 125,000 villages of 180 Districts in 22 States. The dairy cooperatives have been able to maintain democratic structure at least at the grass-root level with the management committee of the village level unit elected from among the members in majority of the villages. The dairy cooperatives have also been instrumental in bridging the social divide of caste, creed, race, religion & language at the villages, by offering open and voluntary membership.

The dairy cooperatives have been successfully propagating the concepts of scientific animal husbandry & efficiency of operations, which has resulted in low cost of production & processing of milk. The movement has been successful because of a well-developed procurement system & supportive federal structures at District & State levels. Dairy Cooperatives have always been proactive in building large processing capacities, which has further propelled growth of milk production. The dairy cooperatives are among those few institutions in India, which still cherish a strong Cooperative identity, values and purpose. They still boast of idealism & good will of members and employees. The dairy cooperatives have removed the poor farmers of India from the shackles of agents & middlemen and provided an assured market for their produce. As these are the institutions run by farmers themselves, it has also resulted in fair returns to the members for their produce

2.8 million milk producer member families 13,759 village societies 13 District Unions 8.5 million liters of milk procured per day Rs. 150 million disbursed in cash daily GCMMF is the largest cooperative business of small producers with an annual turnover of Rs. 53 billion The Govt. of India has honoured Amul with the Best of all categories Rajiv Gandhi National Quality Award. Largest milk handling capacity in Asia Largest Cold Chain Network 48 Sales offices, 3000 Wholesale Distributors, 5 lakh retail outlets Export to 37 countries worth Rs. 150 crores Winner of APEDA award for nine consecutive years

Amul has recently entered into direct retailing through &quota; Amul Utterly Delicious" parlours created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country.

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.

1970s Market Leader


A classic 1970 - 80 Advertisement AMUL AD ON INDRAJAL(1970 80)

1990s
Shifted focus in 1990s towards other milk products. Competition from multinationals Market share down to 2-3% 1990s AMUL ADVERTISEMENT Introduced newer varities of chocolates, like Bindas, Nuts About You and others, targeting teenagers

2003....
Increase in sales due to cadbury worm controversy.(20 % increase in sales) To boost sales, Amul launched three new chocolates in under the brands Fundoo, Bindaas and Almond Bar . While the first two have been priced at Rs 10 for a 30 gm stick , Almond Bar carries a price tag of Rs 10 for a 35 gm chocolate. As a result, AMUL's festival season pack"Rejoice" came with six chocolates, up from three during the festive season before

2004-Repositioning

Launch of Chocozoo - chocolates in shapes of motorcycles, aeroplanes, animals and comic charaters. Targeted Kids . Introduced economic variants of chocolates priced at Re 1, Rs 3 and Rs 5. A tub of Chocozoo chocolates were priced at Rs 138 for 46 units of chocolates, but retailers can sell the chocolates loose, at Rs 3 each . This, was done to attract kids. Trendy Look Removed the cute little butter girl and cheese boy from its wrappers. New wrappers , designed by a US firm, trendy and colourful . A new tag line: Amul Chocolate For Someone You Love. Not merely gifts, but make a more emotional pitch with emphasis on Amul Chocolates for love on all occasions.

Strengths
1. The company is having Indian origin thus creating feeling of oneness in the mind of the customers. 2. It manufactures only milk and milk products, which is purely vegetarian thus providing quality confidence in the minds of the customers. 3. It is aiming at rural segment, which covers a large area of loyal customers, which other companies had failed to do. 4. People are quite confident for the quality products provided by Amul. 5. Amul has its base in India with its butter and so can easily promote chocolates without fearing of loses. 6. The prices of chocolates of Nestles are comparatively cheap as compared to other companies.

Weaknesses
1. There are various big players in the chocolate market, which acts as major competitors restricting their growth. 2. Lack of capital invested as compared to other companies. 3. Improper distribution channel in India.

Opportunities
1. There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting. 2. The chocolate market is at growth stage with very less competition so by introducing new brand and intensive advertising there can be a very good scope in future.

Threats
1. The major threat is from other companies who hold the majority share of consumers in Indian market i.e. Cadburys and Nestle. 2. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands. 3. New companies entering in Indian market like Fantasie fine poses lot problems for Amul. Advertisement

Amul chocholates Market share decreased to 5% much less than market leader(79%) The awareness level of AMUL CHOCOLATE is very low. To find the performance of AMUL CHOCOLATE vis--vis other Brands. To know the consumer psyche and their behaviour towards AMUL CHOCOLATE.

To gauge the awareness of people towards Amul chocolates.

To find out in which segment chocolates are mostly liked/preferred. To understand which advertisement medium must AMUL use. To know the perception of Amul chocolates in comparison to other competitive brands. To formulate an IMC strategy for Amul Chocolate.

The main objective of the project is to know the market potentials andawareness about new variants of Amul chocolate in Varanasi City.Other objectives of my project are To find the market share of Amul in chocolate segment To know Customers perception towards Amul chocolate. To make comparative study of different variants of chocolates. To know strategies of competitors and implement on those strategies. To find out the potential market mainly for new variants (like Fundoo, Bindaaz).

RESEARCH OBJECTIVES & related sub 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 consumers buying behaviour to purchase chocolates

Information about all the competitors present in the chocolate segment (Reputed & well established brands as well as Local brands e.g. Cadburies, Nestle etc.)

Information about the comparative packs and prices of all the competitors existing in the market.

To trace the market and segment, which mainly deals with people of various age groups.

Various types of chocolates available in the market

not.

Information if the television advertisement timing is effective or

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50 sales offices spread all over the country, more than 3,000 wholesale dealers and more than 5,00,000 retailers. AMUL is also the largest exporter of dairy products in the country. AMUL is available today in over 40 countries of the world. AMUL is exporting a wide variety of products which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee) and Indigenous Sweets. The major markets are USA, West Indies, and countries in Africa, the Gulf Region, and [SAARC] SAARCneighbours, Singapore, The Philippines, Thailand, Japan and China.

In September 2007, Amul emerged as the leading Indian brand according to a survey by Synovate to find out Asia's top 1000 Brands.

The sales turnover of the Brand Amul :Sales Turnover Figures Year 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Rs (million) 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 US $ (in million) 493 500 500 575 616 672 850 1050 1325 1504

1. CHOCHOLATE MARKET IN INDIA o Chocolate market is estimated to be around 1500 crores (ACNielson) growing at 18-20% per annum o Cadbury is the market leader with 79% market share o The per capita consumption of chocolate in India is 300 gram compared with 1.9 kilograms in developed markets such as the United Kingdom o Over 70 per cent of the consumption takes place in the urban markets . o The chocolate wafer market (Ulta Perk etc) is around 35 % of the total chocolate market and has been growing at around 13% annually. o As per Euromonitor study, Indian candy market is currently valued at around USD 664 million , with about 70%, or USD 461 million, in sugar confectionery and the remaining 30%, or USD 203 million , in chocolate confectionery . o Entire Celebrations range marketshare is 6.5%

2. COMPETITION SCENARIO o The chocolate market in India has only three big players, Cadbury(79%), Nestle(14%) and Amul (5%) o New brands such as Sweet World, Candico and Chocolatiers are present in several malls . o The largest target segment for Cadbury is youth . o Delhi-based Chocolatiers , started with a small shop in south Delhis Chittaranjan Park and has now ventured into malls and multiplexes in NCR, Mumbai and Bangalore , with focus on high-end or designer chocolates , a niche market of their own. Candico India is aiming for 400 locations across malls and multiplexes in the country by 2010

Amul Product Portfolio

During the survey it was found that still there are10% people who have not tasted Amul Chocolate. Lake 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 inmilk market which is approx. 66%, after it Amul isconcentrating upon butter & cheese which has market share ofapprox. 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 Lake of Advertisementor advertisement is not timely givenoradvertisement is not given on right time. In its advertisement is not using any brand ambassador which attracts all age group people like Cad bury. There is lake of Sales Promotional Activities i.e. free tattoo ,extra weight, toys, quiz contest etc. Cadbury is main competitor and strategically better performer then Amul. I find the main thing is thatAmul brand name has very good image in consumers mind and they consider it as Pure & Good Product. People who have tasted Amul Chocolate are not ready to purchase the same again

Competition will never end so let's not avoid it but face it confidently, "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.

To know the customers expectations towards Amul, I had conducted a market Research of the existing customers, 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.

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 mostlysatisfied with the overall quality of Amul Chocolate, but for the existence in the local market Amul must use aggressive selling techniques.

www.rediff.com www.indiainfoline.com www.amul.com www.amuldairy.com www.google.com www.India-stats.com www.Agencyfaqs.com www.indiantelevision.com www.dairy.com www.thehindubusinessline.com Marketing management by Kotler ,keller - Coundiff & Still Research methodology-c r kothari o o o o o o o o o o

NAME: - CONTACT NO . 1-Do you like chocholates ? Yes 97 % No 3 % 2- Who in your family uses chocholates? 3- What kind of chocolates do you prefer? o o Branded Non Branded 4- What type of chocolates do you prefer? o o o o Wafers Bars Small chocolates Other 5- Which type of television channel do you prefer watching the most? o o o o News Cartoon Zee/Star (Entertainment) Other

6- Which time slot do you prefer for watching television? o o o o o Morning Afternoon 5-8 pm 8-11 pm Late Night

7- Media where the last time you saw a chocolate advertisement was o o o o o o Television Hoardings Radio Newspaper Magazine Other

8- According to you which of the following makes a television advertisement more memorable? o o o o o o Jingles Brand Ambassador Emotion Humour Product display Others

9- Have you heard of Amul Chocolates? o o Yes No

10- Can you recall any of the Amul chocolates Advertisement/ Hoarding? o o Yes No

11- Which chocolates do you like the most? o o o o Amul Nestle Cabury Others

12- When do you usually purchase a chocolate? o o o o Festivals Gifting Snacks Just like that