A Project Report On Launch of AMUL PRO, Positioning and promotion Master of Business Administration (Marketing)

Submitted in partial fulfilment of the requirements for award of Master of Business Administration Submitted by Omkar Narain singh 2011-2013 Of India Europe International Business School, Navi Mumbai-400709

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ACKNOWLEDGEMENTS

At the outset, I would like to thank GCMMF AMUL India Ltd. for giving me an opportunity to do this project in their organisation to get my first ever experience in corporate arena. I am grateful to Mr. Vishal Anand , Mr. Vikas Mandal for all their support guidance, helpful hints and valuable suggestions during the course of this project. I would also like to thank all the staff members of GCMMF AMUL for their constant support and all the people who directly and indirectly helped me during the course of the project. Last but by no means the least I would like to convey my special thanks to IEIBS College for giving me the opportunity to work on this project.

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TABLE OF CONTENTS
1. EXECUTIVE SUMMARY 2. AN OVERVIEW 3. HISTORY OF AMUL 4. SUPPLY CHAIN OF AMUL 5. REASON FOR SUCCESS 6. INDIAN MALTED FOOD DRINK MARKET 7. PRODUCT- AMUL PRO 8. MARKET STRUCTURE 9. ANALYSIS & INTERPRETATION ( WET SAMPLING) 10.COMPETITIVE ANALYSIS 11.CHALLANGES 12.OPPORTUNITIES 13.FINDINGS 14.RECOMENDATION 15.CONCLUSION 16.LEARNINGS 17.BIBLIOGRAPHY

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EXECUTIVE SUMMARY
The project has three different phases. The objectives of undertaking this project were: Promoting the brand through distributing display to retail shops especially where the sales of other brands like Bournvita etc have got more sales. Audit report of the product i.e., how much was the purchased by the retailer and how much got sold Wet sampling of the product in different areas Awareness campaign in malls where we had to interact with the people and make them aware about the product and its uses.

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AN OVERVIEW
The Amul model has proved to be robust and stood the test of time, for all the Organised attempts at belittling and sabotage even from within. However, its chief protagonist has been the small or marginal farmer, engaged in dairying as a subsidiary income activity. The basic underlying framework, thus, remains one of livestock rearing and milk production being an adjunct to mainstream crop agriculture. Considering the sheer size to which it has grown today, there is a need to rescue dairying from a narrow subsidiary/residual approach and view it as an independent business in itself. The pure dairy farmer is perhaps an idea deserving of support whose time has come. Type: Co-operative Founded in: 1946 Headquarters: Anand, Gujarat India Industry: Dairy Parent Company: GCMMF Products: milk and related products Revenue: Rs 2.5 billion (2012) Employee: 2 million milk producers Slogan: The Taste of India Amuls journey towards excellence is marked by some critical understanding of the business environment in large emerging economies like India where markets have to bed e v e l o pe d by co m bi ni ng ef f i ci en c y r el a te d i ni ti a t i v es w i t h i n c r ea s i n g t he ba s e o f marginal suppliers and consumers. The essence of AMULs efforts was as follows:

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 It combined market and social development in an emerging economy. It recognized the inter-linkages between various environments that governed the lives of marginal milk farmers and the unmet needs of consumers. It also changed the supply chain paradigm in order to reduce the cost to the consumer while increasing the return to the supplier. It realized that in order to achieve their objectives, it had to benefit a large number of people both suppliers and consumers. While large scale had the danger of failure d ue t o po o r co ntr o l a n d r e q ui r e d m o r e r es o ur ces , i t a l s o h a d t h e a dv a n ta g e o f creating a momentum that would be necessary to bring more people into the fold and thereby help more suppliers and consumers. It also realized that its goal could only be achieved in the long run and this requiredd e v e l o p i n g v a l u e s i n p e o p l e a n d p r o c e s s e s t h a t w e r e r o b u s t , r e p l i c a b l e a n d transparent. It also realized that the cooperative would not be independent and viable in the face of competition if it were not financially sound. This implied that AMUL had to develop distinct capabilities that would deliver competitive advantage to its operations. Thus this is a brief overview of Amul The taste of India Amul (Anand Milk Union Limited), formed in 1946, 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 2.6 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 the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand.

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GCMMF: Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006, Amul plans to launch 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 and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per 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 .Other potential markets being considered include Sri Lanka. Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected chairman of GCMMF.

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ACHIEVEMENT: Amul:Asias largest dairy co-operative was created way back in1946 to make the milk producer self-reliant and conduct milk- business with pride. Amul has always been the trend setter in bringing and adapting the most modern technology to door steps to rural farmers. Amul created history in following areas: a)First self-motivated and autonomous farmers organization comprising of more than 5000000 marginal milk producers of Kaira District. b) Created Dairy co-operatives at village level functioning with milk collection centres owned by them. c) Computerized milk collection system with electronic scale and computerized accounting system. d)The first and only organization in world to get ISO 9000 standard for its farmers co-operatives. e)First to produce milk from powder from surplus milk. Amul is the live example of how co-operation amongst the poor marginal farmers can provide means for the socio-economic development of the under privileged marginal farmers.

Amul in abroad: Amul is going places. Literally, after having established its presence in China, Mauritius and Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), Indias largest milk cooperative, is waiting to flood the Japanese market. Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products are already available on shelves across several countries, including the US, China, Australia, West Asian countries and Africa. GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.

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HISTORY OF AMUL
In the year 1946 the first milk union was established. This union was started with 250 litres 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 from the Sanskrit word AMULYA which means PRICELESS. A quality control expert in Anand had suggested thebrand name AMUL. Amul products have been in use in millions of homes since 1946. AmulButter, Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates, AmulShrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading foodbrand in India. Today Amul is a symbol of many things like of the high-quality products sold atreasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenoustechnology, of the marketing savvy of a farmers' organization. And have a proven model for dairydevelopment (Generally known as ANAND PATTERN). In the early 40s, 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. 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 cooperative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to ShriMorarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkhavillage near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk.

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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 fulfil 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 Kurienshowed 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 December1946. 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 litresof milk was collected every day. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhslitresof milk every day. Since milk was a perishable commodity it becomes difficult to preserve milk for a 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 centresin 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. 50millions 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.

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G.C.M.M.F . INTRODUCTION GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD., ANAND Facts and Figures:-GCMMF: An Overview Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. Members: 13 district cooperative milk producers Union No. of Producer Members: 2.6 million No. of Village Societies: 12,792 Total Milk handling capacity: 10.16 million litres per day 16 Milk collection (Total - 2006-07): 2.38 billion litres Milk collection (Daily Average 2006-07):6.5 million litres Milk Drying Capacity: 594 Mts. per day Cattle feed manufacturing Capacity: 2640 MTs per day

Sales turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 427781 52554 67113 80053 97742 116680

USD(million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1700 2142 2500
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List of Products Marketed: Breadspreads: Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter Cheese Range: Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozzarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Utterly Delicious Pizza Mithaee Range (Ethnic sweets): Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix Avsar Ladoos UHT Milk Range: Amul Shakti 3% fat Milk Amul Taaza 1.5% fat Milk Amul Gold 4.5% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy Mix Pure Ghee: Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee
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Infant Milk Range: Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months above) Amulspray Infant Milk Food

Milk Powders: Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener Sweetened Condensed Milk: Amul Mithaimate Sweetened Condensed Milk Fresh Milk: Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat Amul Cow Milk Curd Products: Yogi Sweetened Flavoured Dahi (Dessert) Amul Masti Dahi (fresh curd) Amul Masti Spiced Butter Milk Amul Lassee Amul Ice-creams : Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi) Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond) Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple) Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae) Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, and Cassatta)
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Utterly Delicious (Vanila, Strawberry, Chocolate, Choco chips, Cake Magic) Chocolate & Confectionery: Amul Milk Chocolate Amul Fruit & Nut Chocolate Brown Beverage: Nutramul Malted Milk Food Milk Drink: Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate) Amul Kool Caf Amul Kool Koko Amul Kool Shake (Mango, Badam, and Banana) Health Beverage: Amul Shakti White Milk Food

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SUPPLY CHAIN OF AMUL

AMUL is a dairy cooperative in the western India that has been primarily responsible, through its innovative practices, for India to become the worlds largest milk producer. The distinctive features of this paradigm involves managing a large decentralized network of suppliers and producers, simultaneous development of markets and suppliers, lean and efficient supply chain, and breakthrough leadership. Every day Amul collects 447,000 litres of milk from 2.12 million farmers , converts the milk into b r a nd ed , pa c ka g e d p r o d uc ts , a n d d el i v er s g o o ds w o r t h R s 6 c r o r e (R s 6 0 mi l l i o n ) t o o v er 500,000 retail outlets across the country. To implement their vision while retaining their focus on farmers, a hierarchical network of c o o p er a ti v es w a s d ev e l o pe d, th i s to da y f o r ms th e r o b us t s u p p l y c ha i n be hi nd G C M M F s endeavors. The vast and complex supply chain stretches from small suppliers to large fragmented markets. M a n a g e me nt o f th i s ne tw o r k i s ma d e mo r e co mp l ex by t h e f a c t t h a t G CM M F i s di r e ct l y responsible only for a small part of the chain, with a number of third party players (distributors, r et a i l er s a n d l o g i s ti cs s u ppo r t pr o v i d er s ) pl a y i ng l a r g e r o l es . M a n a g i n g t hi s s up p l y c ha i n ef f i ci en t l y i s cr i ti c a l a s G CM M F ' s co m p e ti ti v e po s i t i o n i s dr i v e n b y l o w co n s u m er pr i ce s supported by a low cost system of providing milk at a basic, affordable price. The distribution Network: Amul products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the c h e q u e s y s t e m a do pte d by o t her m a j o r F M CG c o mp a ni es . T hi s pr a ct i ce i s co ns i s t e nt w i th GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This justin-time inventory strategy improves dealers' return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operations
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THE BUSINESS MODEL From the very beginning, in the early 1950s, AMUL adopted the network as the basic model for long-term growth. The network explicitly includes secondary services to the farmer-suppliers. Several of the entities in the network are organized as cooperatives linked in a hierarchical fashion. Customers: In comparison with developed economies, the market for dairy products in India is still in an evolutionary stage with tremendous potential for high value products such as ice cream, cheese etc. The distribution network, on the other hand, is quite reasonable with access to rural areas of the country. Traditional methods practiced in western economies are not adequate to realize the market potential and alternative approaches are necessary to tap this market. Suppliers: A majority of the suppliers are small or marginal farmers who are often illiterate, poor, and with liquidity problems as they lack direct access to financial institutions. Again,traditional market mechanisms are not adequate to assure sustenance and growth of thesesuppliers. Third Party Logistics Services: In addition to the weaknesses in the basic infrastructure,logistics and transportation services are typically not professionally managed, with little regardfor quality and service. In addition to outbound logistics, GCMMF takes responsibility for coordinating with the distributors to assure adequate and timely supply of products. It also workswith the Unions in determining product mix, product allocations and in developing production plans. The Unions, on the other hand, coordinate collection logistics and support services to the member farmers. DISTRIBUTION NETWORK Overall economic growth, higher disposable incomes, changing attitude of consumers towards spending, various alternative consumption forms, and emergence of Organized Retail throws up challenges and also opportunities to the Distribution function of Federation. To keep pace with the changing market scenario, in the previous years, we have increased our distribution network in small towns. During this year Amul have divided markets into 14 segments to ensure improved availability of our products. Improved distribution focus on newly launched products was on top of Amul`s agenda. Amul product lines

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were divided into Main Line and New Line. Separate distributors were appointed during the year exclusively for New Line. For specific product categories also exclusive distributors have been appointed. Separate manpower has been earmarked for each line. To impart concepts of modern marketing amongst our distributors an initiative of Marketing and Sales Management Program of our distributors have been taken. In collaboration with a premier business school, a 2 days workshop has been designed. All distributors of Federation will undergo this Training Program. Amul Yatra Program has been continuing to bring our channel partners to Amul to give them an exposure to our cooperative institutions. This year our emphasis was upon our newly appointed distributors and channel partners from various business segments like Organized Retail, Caterers etc.

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GCMMFs Supply Chain

AMUL has the largest cold chain network in India (i.e. 18000 refrigerators) as Compared to any other company. The chemical components of milk are water, SNF and solids. Milk is very perishable product so it has to be consumed within 24 hours. In order to avoid wastage AMUL converts the milk in to SNF and milk solids by evaporating the water, which comprises up to 60-70% of milk contents. This is possible only if the distribution channel right from the producer to the Consumer is well organized. It will be surprising to know that AMUL makes even the Sarpanch to eat pizza i.e. it supplies pizzas even to rural market. The role of distributors in our business process has never been more diverse or

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More important, as it is today. As a matter of fact, we consider our Distributor to Be the real Marketing Manager of our organization. To enhance business Performance of our Distributors, a workshop on Marketing and Sales Management Was designed in collaboration with a premier business school. The objective of the Entire initiative was to upgrade the knowledge of our Distributors in terms of Contemporary Business Management Practices, so that they can perform well not Only as our business partner but also as Marketing Managers. During the year, 659 Distributors have undergone this programme in 39 locations. Cold Storage is an Extremely essential component in the Federations 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 Federations own cold stores this year in various locations across the country. We now own 24 states of- the art cold rooms of different sizes.

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REASON FOR SUCCESS

Low cost strategy Diverse product Mix Strong Distribution Network Technology and e-initiative Robust supply chain The brand value of Amul-quality, value of money, service and availability. The system succeeded mainly because it provides an assured market at remunerative price for producers milk besides acting as a channel to the production enhancement package. They ensured that the profit goes to the participants for their socioeconomic up liftment and common good Command of the rural milk producers the best of the technology and harness its fruit for betterment. 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.

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Every day Amul collects 8.4 million litres of milk from 2.79 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods thus achieving record annual sales turnover of $ 1504 million in 2008-09 making Amul as the largest food products marketing organization in India with more than 60 products. Introducing higher value products beginning with liquid milk, GCMMF enhanced the product mix through the progressive addition of higher value products while maintaining the desired growth in existing products. Despite competition in the high value dairy product segments from firms such as Hindustan Lever, Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which Amul introduces its products is consistent with the core philosophy of providing milk at a basic, affordable price. Establishing best practices A key source of competitive advantage has been the enterprise's ability to continuously implement best practices across all elements of the network: the federation, the unions, the village societies and the distribution channel. In developing these practices, the federation and the unions have adapted successful models from around the world. It could be the implementation of small group activities or quality circles at the federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level. More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high.

Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a process check at the end to record how the meeting was conducted. Similar processes are in place at the village societies, the unions
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and even at the wholesaler and C&F agent levels as well. Examples of benefits from recent initiatives include reduction in transportation time from the depots to the wholesale dealers, improvement in ROI of wholesale dealers, implementation of Zero Stock Out through improved availability of products at depots and also the implementation of Just-in-Time in finance to reduce the float.

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INDIAN MALTED FOOD DRINK MARKET

The Indian malt based health beverages market was estimated at Rs 2200 Crore for the year 2009 with an average annual growth rate of 20-25 percent. The Indian malted health beverages segment has seen fierce competition amongst its market participants in the recent past. Manufacturers have revamped their portfolios and emerged with newer and better functional variants for cognition and weight management. The following figure illustrates the competitive structure in the Indian malted health beverage market. The market is segmented in two distinct tiers of competition with leading multinationals such as: GlaxoSmithKline Consumer Health Care Ltd (GSKCH) and Cadbury (now a fully owned subsidy of Kraft Foods Inc.) occupying the top rung. Tier 2 comprises medium-sized players such as Nestle, Heinz, Wockhardt (now a part of Abbott Nutrition) etc. Apart from these multinationals, a few domestic FMCG players are present as well, AMUL and Hindustan Unilever Ltd (HUL) being the significant ones.

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PRODUCT- AMUL PRO

AMUL PRO is a malt based milk additive, which not only enhances milks nutritive value but also makes a very tasty drink for people of all ages, especially for kids. It has been launched in two packings jar pack and refill pack. The jar pack is priced at Rs 150 whereas the refill pack is of Rs 140. The price both the packs of AMUL PRO is 20-25% less from its competitors.

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Key product attributes of AMUL PRO:

Whey protein: Muscle building and immunity

DHA Brain development

27 essential nutrients: Complete wellness

This product can be consumed with both hot as well as cold milk

This product is 100% vegetarian product

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MARKET STRUCTURE

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The HFD category comprises of two sub-categories Brown Powder and White Powder While the white drink finds a bigger market in South and East, the brown one makes its presence felt in North and West. White drinks account for almost two-thirds of the market. Currently, brown drinks (cocoa-based) continue to grow at the expense of white drinks like Horlicks and Complan. The share of

brown drinks has increased from about 32% to 35% over the last five years. Cadburys Bournvita is the leader in the brown drink segment with a market share of around 18%. India has a thriving Rs 2200-crore health food drinks market, with many global players, like the market leader, GlaxoSmithKline (Horlicks, Boost, Viva and Maltova), Cadbury (Bournvita), Nestle (Milo), Heinz (Complan). Glaxo rules the Indian HFD market with a share of around 72%

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ANALYSIS & INTERPRETATION (WET SAMPLING)

The task of wet sampling was given group wise. All the members were divided into different groups and they had to do the wet sampling in different areas. In this task we had to prepare AMUL PRO and give free samples in front of schools. We decided to do the wet sampling at IDUBS HINDI, ENGLISH BHANDUP (WEST). The response of children and their parents especially their mothers were pretty impressive. They loved the drink and the brand name of AMUL made it more attractive. The price of the product was the main point of attraction for the housewives. We distributed almost 200 glasses of AMUL PRO free sample and almost 160 loved the taste and were ready to buy the product but most of them were looking for a small pack since in monsoon season the product gets wasted.

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COMPETIVE ANALYSIS
The following figure illustrates key companies active in the cognitive malted health beverage market and their respective brands and year of launch.

GSKCH is by far the largest player in this category with four of its major brands - Horlicks, Boost, Viva and Maltova occupying nearly 72 percent of the total market. Horlicks is the single largest brand with a market share of 53 percent making it a clear leader. GSKCH is followed by Cadbury, which holds a market share of 12 percent, with its brand Bournvita. Heinz India, AMUL, Nestle India, Wockhardt (now a part of Abbott Nutrition) are some of the other significant players. HUL and Dabur India are new entrants with their products Amaze and Chywan Junior launched in select cities and metropolitans. The following chart depicts market share split of participants in Indian malted health beverage market.

Product nutrient profile, health claims, marketing strategies and prices are some of the key competitive factors in this market. GSKCH has been an aggressive player in media and print ad campaigns leading to widespread awareness about product health benefits and ingredient usage in the same.
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Horlicks was previously promoted as a generic health drink for all ages leading to a slump in sales for GSKCH. The company later abandoned the one-size-fitsall positioning and launched a whole new product portfolio targeted at specific consumer brackets. Media and print ads were developed keeping in mind target consumers and these efforts benefited as sales of Horlicks gradually started improving making it the single largest selling health beverage brand. Other players such as Heinz and Cadbury are also heavily advertising their products nutrient labels, health claims and clinical trials that were undertaken to prove these claims. With players such as HUL, Dabur entering this space, competition is likely to intensify. The market might also see a substantial fall in retail prices as participants compete on price points.

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CHALLENGES
The malted health beverage market has fared well as far as beverages for kids are concerned. However, other niche segments, such as malted beverages meant for women health or for cholesterol management, are not witnessing much growth. The market is still plagued by low levels of consumer awareness in some specific sectors.

Rural reach for such products is also low due to premium pricing. Consumers in such markets have a conservative mindset and prefer traditional foods that are home-made over processed packaged foods for their daily nutrients and calorie requirements thus limiting the growth for such health beverages.

Lack of product differentiation in terms of ingredient usage also limits market growth. Most of the malted health beverage products available off-the-shelf have similar nutrient profiles and the same ingredients are being experimented with. However, companies are increasingly spending on R&D and product development and are likely to innovate new products with broader ingredient coverage.

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Opportunities
Malted beverages have always been positioned as regular heath drinks targeted at children and the elderly population; however, in the recent past companies have focused on products for other consumer brackets as well. In the process, a number of products were launched for women and kids for cognition and general well being. This category of health product offers immense opportunity since malted beverages are a part of every child's staple diet. There is a rise in consumption amongst children for improvement in concentration and memory power. Clinical studies suggest such malt based products can be used for not just general well being but can also be a part of post treatment nutrition in specific memory and brain disorder cases such as Alzheimer's disease, Schizophrenia, etc. According to Indian Council of Medical Research (ICMR), incidences of such brain disorders are on the rise in India due to extreme stress and a disrupted lifestyle in urban Indians. This presents good scope and opportunity for growth of these cognitive health drinks in the long term.

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FINDINGS
The distribution channel needs to be improved since many orders got cancelled because of unavailability of the product Cut throat completion because of the presence of big players like Cadbury, GSK, Nestle There is a huge scope for market penetration Price can be a big tool to compete in such market segment People are not much brand loyal in this segment of market since the younger generation tastes keep on changing and they always want something new Retailers are too cautious to keep the product because of failure of some previous product of AMUL in this market segment Replacement policies for other products of AMUL is hampering the AMUL PRO promotion Retailers are still not convinced that the product will be sold out The brand image of AMUL is a big advantage with the product

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Recommendation
The advertisement should be done more effectively since still people are not much aware about the product The distribution channel needs to be improved Distributor needs to be educated about the new products of the company The advertisements should be designed in such a way that target audience could connect with the product very easily Small packs of AMUL PRO should be launched The product needs a brand ambassador since it is new in market and since India is a cricket crazy nation therefore a cricket may be the favourite choice

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CONCLUSION
The malted health beverages market is currently worth INR 2200 Crore with strong double digit growth rates. This segment is poised for wide expansion in terms of both product and infrastructure. The FMCG giants have now started to develop functional foods, which are not of conventional origin: for instance, beverages that are sugar-free, low cholesterol, foods such as granola bars, etc. The functional and health trend in processed foods is fast catching up in India. The domestic malted health beverage and overall functional foods market is expected to witness exponential growth in the next 4-5 years with increasing products available off-the shelf, new entrants in the form of FMCG multinationals and domestic business groups venturing into the market and also an increasing consumer base. There is a distinct change in the regulatory space as well with organizations such as Foods Safety and Standards Act (FSSAI) framing set rules for governing production, labelling, packaging and marketing of such new age products. Increasing consumer awareness coupled with market development efforts from manufacturers and government agencies is likely to pave way for better growth in this space.

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Learnings
The project helped me to know deep about food malt beverage industry and how the strategies are applied at grass route level. It was a big learning curve in my carrier since I had never interacted directly with retailers to sell our product. I learned how to apply the theoretical concepts in practical scenario like branding, product positioning, sales and sampling. I learned how the distribution channel of a company works. What are difficulties faced by the company in the launch of new product and what measures they take to overcome from it. Since it was my first ever experience in corporate arena, everyone in the company supported me and appreciated my efforts.

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BIBLIOGRAPHY
www.amul.com www.google.com www.wikipedia.com

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