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I did my project in Gujarat Co-Operative Milk Marketing Federation Limited on Market survey and Distribution strategy in target market in Pune. During my summer project, I got an opportunity to apply my marketing skills and theoretical knowledge that I had learnt in my marketing studies with the information and suggestion provided by the company guidance, which was a great learning experience for me and that will definitely help me in developing qualities required for an manager. In todays competitive market every organization has to take initiative to keep its product demand in market and also to update its product according to customer demand. For the fulfillment of customers demand, retailer plays a major role. I did my research work on distribution strategy adopted in target market. My objective was to study awareness level of Retailers, availability of Amul products in retail outlets and Retailers problems in regards to Amul. Indian FMCG is one of the most emerging markets in the global scenario because India has second largest population of the world and their food pattern increasing day by day. Gujarat co-operative milk and marketing federation is well known fast moving consumer goods company in India. It operates all over India through a nationwide network of distributor and retailer outlets.

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Reasons for selecting the topic

There are many reasons for selective the topic distribution strategy in target market. They are as follows: I am doing Master in Marketing Management, therefore marketing is my core subject and I thought to have practical experience with my theoretical knowledge. During the initial discussions with Mr. HITENDRA SINHA (Sales Executives),he suggest me that there are problems arising in distribution in Pune Depot (Amul) due to lack of good market information. They assigned me the Research work and told me to get market information.

The project entitled Distribution Strategy in Target Market was a very nice and challenging experience for me in doing the project in a company like AMUL. Within these two months (4th may to 3 July) of my project period I went to many retail shop in Pune to gather information of retailers. I have visited MG road, Camp, Harapsar, Shivaji Nagar, & various others scattered parts of the city.

Objective: This project was done by me in AMUL company was out with broad objective like understanding the real market scenario, awareness level of retailers, problems of retailers and distribution strategy in target market.

Research Methodology:The various means and methods have been deployed for effective collection of the desired data-has been elucidated in this section. The following marketing search tools were made use of Depth interview method. 1- Questionnaire direct structured method.

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Both primary and secondary data were used to collect information regarding this project. These data were collected through direct retailers interactions as well as through secondary research work involving internet search.

Sampling size: The sample size is one hundred twenty (120).

Findings: I have found in my project that there are problems regarding AMULs distribution system in terms of availability and delivery of products at right time with others problems like replacement and complains handling. Amul have advantages like packaging, quality as well as brand name.

Suggestions: The distribution of products should not only be simpler but also much faster and there should be regularity of supply by distributors. AMUL should provide awareness about schemes and replacement facility given to retailers as distributors hide this fact.

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Name: KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LIMITED, ANAND Known as AMUL (Anand Milk Union Ltd) Form: Location: Registration: Co-operative sector registered under the Co-operative Society Act Amul dairy, Station road, Amul Dairy road, Anand- Gujarat India. 14th December 1946 Anand-388001 Major Plants $ Chilling Centres: Dairy Plant,Anand Mogar Complex,Mogar Kheda Satellite Dairy,Khtaraj Cattle feed factory,Kanjari
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Registered Office: - Kaira District Co-operative Milk Producers Union Limited

Camby satellite Dairy,Undei Chilling Centre, Balasinor Kapadwanj Chilling Centre,Kapadwanj Amul Satellite dairy,Pune

Kolkata Unit, Kolkata

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 organization, 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 cooperative 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.

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. Amul's product range includes Milk powders, Milk, Butter, Ghee, Cheese, Curd, Chocolate, Ice cream, Shrikhand, Paneer, Gulab Jamuns, Burundi, 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, Page 6 of 59

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.

Gujarat Cooperative Milk Marketing Federation 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. 13 district cooperative milk producers' Union 2.7 million 13,141 10.21 million liters per day 2.69 billion liters 7.4 million liters 626 Mts. per day 3090 Mts per day

Members: No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 2007-08): Milk collection (Daily Average 2007-08): Milk Drying Capacity: Cattle feed manufacturing Capacity:

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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 and it was chosen because it was a perfect acronym for 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. Over five decades ago, the life of an average farmer in Kheda District was very much likes that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand often milk went sour, especially in the summer season, as producers had to physically carry milk in individual containers. Private traders and middle men controlled the marketing and distribution system for the milk. These middlemen decided the prices and the off-take from the farmers by the season. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. In this situation, the private trader made a killing.

Moreover, the government at that time had given monopoly rights to Polson Dairy, which was run by a person of Parsi descent, (around that time Polson was the most well known butter brand in the country) to collect milk from Anand and supply to Mumbai city in turn (about 400 kilometers away). Another problem farmers faced was that in winter the milk output of buffaloes doubled which caused prices to fall down even further. India ranked nowhere amongst milk producing countries in the world in 1946. Gradually, the realization dawned on the farmers with inspiration from then nationalist leaders SardarVallabhbhai Patel (who later became the first Home Minister of free India) and Morarji Desai (who later become the Prime Minister of India) and local farmer, freedom fighter and social worker Tribhovandas Patel, that the exploitation by the trader could be checked only if they marketed their milk themselves. Amul was the

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result of the realization that they could pool up Their milk and work as a cooperative.

Market share of Amul in India


Among the major players in this industry AMUL has a market share of around 40%,. Hindustan Unilever Ltd with an estimated market share of 30% represented mainly by Kwality Walls brand and lastly Vadilal is the player in the national market with 20% of the market share and 10% of the others brand like Mother Dairy, Arun Dairy and some local brands

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MISSION OF AMUL The main mission of Amul is to help farmers. Farmers were the foundation stone of Amul Company. The system works only for farmers and for consumers, not for profit. The main aim of Amul is to provide quality products to the consumer at minimum cost. The goal of Amul is to provide maximum profit in terms of money to the farmers.

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VISION OF AMUL Vision of Amul is to provide and vanish the problems of farmers (milk producers) of their livelihood. The Amuls apparition was to run the organization with the co-operation of four main parties like the farmers, the representatives, the marketers and the customer.


GCMMF is a winner of the prestigious international CIO 100 award from IDG's CIO Magazine, USA. The 2003 CIO 100 award recognizes the organizations around the world that excel in positive business performance through resourceful IT management and best practices. This CIO International IT excellence Award has recognized the Cooperative Movement & its Leadership under the "Amul" brand, initiated by Dr. V Kurien, Milkman of India, whos main Motto is to build Indian Society economically & literally strong through innovative cooperative resourceful network, so as to provide quality service & products to the end consumers and good returns to the farmer members.

This award has also given direction that IT need to be encouraged & adopted more & more at grass root level and bridge the digital divide through proper training, retraining so as to bring radical change & benefit to the Indian society.

It has also recognized the Managing Director, Mr. B M Vyas, who has taken IT initiative by setting the direction "GCMMF as IT Company in Food business". It has also inspired all the employees of GCMMF Enterprise to sustain the challenges as a "Change Agent" by excelling their IT skills in order to transform the people around them towards IT Integration (e-Vision) on both the ends of supply chain (Village level Farmer to end consumer). This award also motivated the each & every member dairy, Amul's wholesale distributors, retailers, transporters and suppliers who have supported whole-heartedly the IT initiatives of GCMMF. The Gujarat Co-operative Milk Marketing Federation (GCMMF) has been honoured at the CIO 100 Symposium & Award Ceremony on August 19, 2003, at Page 11 of 59


the Broad moor in Colorado Springs, Colorado, USA. Shri Subbarao Hegde, Head of IT had been to USA and received the said Award on behalf of GCMMF.

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 Shri B. M. Vyas Shri Deepak Dalal Shri Rahul Kumar Chairman Vice-Chairman Director Director Director Director Director Director Director Director Director Director Managing Director G.C.M.M.F District Registrar Managing Director

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Bread Spreads Amul Utterly Delicious

Butter Butterly

Amul Lite Low fat, low Cholesterol Bread Spread

Delicious Table Margarine The Delicious way to eat healthy

Beverage Range Amul Kool

Amul Kool Cafe

Kool Koko A delight to Chocolate Lovers. Delicious Chocolate taste

Nutramul Energy Drink A drink for Kids provides energy to suit the needs of growing Kids

Amul Kool Chocolate Milk

Amul Kool Flavoured Bottled Milk

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Amul Kool Flavoured Tetra Pack

Amul Masti Spiced Buttermilk Amul introduces the Best Thirst Quenching Drink

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

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

Sagar Tea Whitener


Amulya Dairy Whitener The Richest, Purest Dairy Whitener

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Fresh Milk Amul Fresh Milk This is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience. Amul Gold Milk

Amul Taaza Toned Milk


Amul Lite Slim and Trim Milk

Amul Fresh Cream

Amul Milk



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

Amul Emmental Cheese The Great Swiss Cheese from Amul, has a sweetdry flavour and hazelnut aroma

Amul Pizza Mozzarella Cheese Pizza cheese...makes great tasting pizzas!

Gouda Cheese

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

Amul Malai Paneer Ready to cook paneer to make your favourite recipes!

Utterly Delicious Pizza

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

Masti Dahi


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Amul Ice Creams Premium Ice Cream made in various varieties and flavours with dry fruits and nuts.

Amul Shrikhand A delicious treats, anytime.

Amul Mithaee Jamuns Pure Khoya Jamums...best piping hot.

Gulab Gulab served

Gulab Jamun Mix

Amul Chocolates The perfect gift for someone you love.

Amul Lassee

Amul Basundi

Health Drink Nutramul Malted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.

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The food industry is the complex, global collective of diverse businesses that together supply much of the food energy consumed by the world population. Only subsistence farmers, those who survive on what they grow, can be considered outside of the scope of the modern food industry. The food industry includes: Regulation: local, regional, national and international rules and regulations for food production and sale, including food quality and food safety, and industry lobbying activities Education: academic, vocational, consultancy Research and development: food technology Financial services: insurance, credit Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural construction, etc. Agriculture: raising of crops and livestock, seafood Food processing: preparation of fresh products for market, manufacture of prepared food products Marketing: promotion of generic products (e.g. milk board), new products, public opinion, through advertising, packaging, public relations, etc Wholesale and distribution: warehousing, transportation, logistics Retail: supermarket chains and independent food stores, direct-to-consumer, restaurant, food services


India is one of the largest food producers in the world India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies Investment requirement of around US$ 15 billion exists in the food processing sector India is looking for investment in infrastructure, packaging and marketing India has huge scientific and research talent pool Page 18 of 59


A largely untapped domestic market of 1000 million consumers 300 million upper and middle class consume processed food. 200 million more consumers expected to shift to processed food by 2010. Well developed infrastructure and distribution network. Rapid urbanization, increased literacy, changing life style, increased number of women in workforce, rising per capita income- leading to rapid growth and new opportunities in food and beverages sector. 50 per cent of household expenditure by Indians is on food items. Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia). Under the food industry, Dairy product is very important part of food processing. Dairy processing is acting good role in India.

Dairy Processing
India ranks first in the world in terms of milk production. Indian production stands at 91 million tones growing at a CAGR of 4 per cent. This is primarily due to the initiatives taken by the Operation flood programmes in organizing milk producers into cooperatives; building infrastructure for milk procurement, processing and marketing and providing financial, technical and management inputs by the Ministry of Agriculture and Ministry of Food Processing Industries to turn the dairy sector into viable self-sustaining organized sector. About 35% of milk produced in India is processed. The organized sector (large scale dairy plants) processes about 13 million tones annually, while the unorganized sector processes about 22 million tones per annum. In the organized sector, there are 676 dairy plants in the Cooperative, Private and Government sectors registered with the Government of India and the state Governments. The Ministry of food Processing Industries is promoting organized Dairy processing sector to accomplish upcoming demands of processed dairy products and helping to identify various areas of research for future product development and quality improvement to revamp the Indian dairy export by way of providing financial assistance to the dairy processing units. 32 Units have been sanctioned

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financial assistance (Rs.591 lakhs) under the plan scheme of the Ministry during the year 2006-07.

Major Indian and Overseas Players in the Food industry

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

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Amul have strong competitors in market like Britannia, Nestle, Pizza Hut, Nirulas, Hul and Cadbury in various sectors which are represented below in form of diagram:-





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Distribution Strategy
Marketing consists of the "4Ps:" product, place, promotion and price. Product refers to what is being sold, promotion to how it is touted in the market, and price to the strategy used to generate revenue. Place is the method of distribution that the company selects to move its product to the market. This consideration, distribution, can be critical to a company's success since choosing the wrong distribution system can mean that the company's product is not available to the consumers when they need it. Lost sales result, and companies can suffer serious consequences due to poor distribution. This research considers the overall issue of distribution and factors that companies need to take into account when developing a distribution strategy. Few manufacturers sell their goods directly to end users; one of the primary exceptions to this is farmers who sell to consumers. However, most manufacturers sell their goods to wholesalers, who sell to distributors, who sell to retail stores, who sell to consumers. Sometimes the distributor is eliminated, or the wholesaler and distributor are the same. In some instances, such as with retailers who are as large as Wal-Mart, the manufacturers do market directly to the retailer. This system, while it sounds cumbersome when described, can actually prove quite efficient. Manufacturers typically produce large quantities of goods. These are divided into smaller shipments (but still containing large numbers here is no excess inventory carrying costs. However, this is not an effective method for retailers because they cannot determine demand with the accuracy of a foreman on a production line. Recommendations Companies who are evaluating their distribution system need to take into account the end user and the best way to reach that user. Industrial users are not reached effectively through retailers, and consumers are not Page 22 of 59


reached through industrial supply houses. Some industries do not lend themselves well to wholesalers and distributors, and manufacturers serving only a local market may be able to more efficiently serve as wholesaler to their clients. Building a close relationship with customers and suppliers is important so that manufacturers and distributors have a clear idea of the factors behind increases (or decreases) in demand. This can help prevent surpluses and shortages and ensure that all of the participants in the distribution channel receive the maximum benefit from the system.

Distribution Strategies Importance

For product-focused companies, establishing the most appropriate distribution strategies is a major key to success, defined as maximizing sales and profits. Unfortunately, many of these companies often fail to establish or maintain the most effective distribution strategies. Problems that we have identified include:

Unwillingness to establish different distribution channels for different products Fear of utilizing multiple channels, especially including direct or semi-direct sales, due to concerns about erosion of distributor loyalty or inter-channel cannibalization Failure to periodically re-visit and update distribution strategies Lack of creativity and resistance to change typically, however, they are due to failings such as simple inertia, lack of understanding of the ultimate customers and their preferences, or a failure to acknowledge the importance of a distribution strategy

To be fair, there can be sound reasons for these perceived weaknesses. More

Distribution system
Distribution system has two divisions, namely Physical Distribution Channels of distribution The channel members such as mercantile agents, wholesalers and retailers are middlemen in distribution and they perform all marketing functions .Such middlemen facilitate the process of exchange and create time, place and position

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utilities through matching and sorting process. Sorting enables meeting the supply with consumer demand.

Physical distribution Physical distribution looks after physical handling of goods and assures maximum customers service .It aims at offering delivery of right goods at right time at right place to the customers physical distribution activities cover at right placed to the customers Physical distribution cover Order processing Handling of goods Packaging Warehousing Transportation Inventory control Customer service

All middlemen in distribution perform these functions and they assure placing the product within an arms length of customers desire and demand.

Channels of distribution
A channel of distribution is an organized network or a system of agencies network or a system of agencies and institutions, which in combination perfume all the activities required to link producer with users and users with producers to accomplish the marketing task. According to Phillip kotler-Marketing channels is an independent organization involved in the process of making a product or service available for use or consumption. Thus, a channel of distribution is a pathway directing is a pathway directing the flow of goods and services from producers to consumers composed of intermediaries through their functions and attainment of mutual objectives. These intermediaries are as follows:-

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In this channel Manufacture sells directly to ultimate consumer. The major ways are door to door, home parties, mail order, telemarketing, television selling and manufacturer owned stores.

Manufacturer Retailer Consumer

This channel has one intermediary namely retailer. The most common channel for consumer durables such as textiles, shoes, readymade garments and so on. Manufacturer-Wholesaler-Consumer

This channel bypasses the last name retailer, when there are large and institutional buyers. Example-industrial buyers, Government, consumer co-operatives, Hospitals, educational institutions, business houses. Manufacturer-Agent-Wholesaler-Retailer-Consumer

This is a longest channel of distribution, where the producer uses the services of agent middlemen such as sales agent for the initial dispersion of goods. The agent in turn may distribute to wholesalers, who in turn sells to retailers and thus reaches consumers. Functions of the distribution channels in brief: Buying and assembling of goods. Providing warehouse facility. Providing transportation of goods from products to their warehouse. Financing Page 25 of 59


Risk bearing, Grading, packing, and packaging Dispatching and selling the goods. Advertising Providing market information Informing about consumer preferences.

Factors affecting distribution strategy

Market factors:
An important market factor is "buyer behavior"; how do buyers want to purchase the product? Do they prefer to buy from retailers, locally, via mail order or perhaps over the Internet? Another important factor is buyer needs for product information, installation and servicing. Which channels are best served to provide the customer with the information they need before buying? Does the product need specific technical assistance either to install or service a product? Intermediaries are often best placed to provide servicing rather than the original producer - for example in the case of motor cars. The willingness of channel intermediaries to market product is also a factor. Retailers in particular invest heavily in properties, shop fitting etc. They may decide not to support a particular product if it requires too much investment (e.g. training, display equipment, warehousing). Another important factor is intermediary cost. Intermediaries typically charge a "mark-up" or "commission" for participating in the channel. This might be deemed unacceptably high for the ultimate producer business.

Producer factors
A key question is whether the producer has the resources to perform the functions of the channel? For example a producer may not have the resources to recruit, train Page 26 of 59


and equip a sales team. If so, the only option may be to use agents and/or other distributors. Producers may also feel that they do not possess the customer-based skills to distribute their products. Many channel intermediaries focus heavily on the customer interface as a way of creating competitive advantage and cementing the relationship with their supplying producers. Another factor is the extent to which producers want to maintain control over how, to whom and at what price a product is sold. If a manufacturer sells via a retailer, they effective lose control over the final consumer price, since the retailer sets the price and any relevant discounts or promotional offers. Similarly, there is no guarantee for a producer that their product/(s) are actually been stocked by the retailer. Direct distribution gives a producer much more control over these issues.

Product factors:
Large complex products are often supplied direct to customers (e.g. complex medical equipment sold to hospitals). By contrast perishable products (such as frozen food, meat, bread) require relatively short distribution channels - ideally suited to using intermediaries such as retailers.

Distribution Intensity
There are three broad options - intensive, selective and exclusive distribution: Intensive distribution aims to provide saturation coverage of the market by using all available outlets. For many products, total sales are directly linked to the number of outlets used (e.g. cigarettes, beer). Intensive distribution is usually required where customers have a range of acceptable brands to choose from. In other words, if one brand is not available, a customer will simply choose another. Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products. An advantage of this approach is that the producer can choose the most appropriate or best-performing outlets and focus effort (e.g. training) on them. Selective distribution works best when consumers are Page 27 of 59


prepared to "shop around" - in other words - they have a preference for a particular brand or price and will search out the outlets that supply. Exclusive distribution is an extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area.

Amul catering need of every sections of society

CUSTOMER BASED MARKET SEGMENTATION Kids:Amul cool chocolate milk Nutramul energy drink Amul kool milk shake Amul calci

Women: Youth: -

Utterly Delicious Pizza Amul Emmental cheese Amul cheese spreadsv Caloric Conscious:Amul lite Sagar skimmed milk paste Amul lite slim trim milk Page 28 of 59


Health Conscious:Nutramal Amul Shakti Health food drink


MILK: Ice cream manufactures Restaurant/Food chains Coffee shop chains Temples

Butter/cheese/ghee: Bakery Confectionaries Pizza Retailers


Robust Supply chain Vast and complex hierarchical network. Co-operation stretches from small suppliers to large fragmented markets Low cost strategy Affordable and attractive to consumer Guaranteeing them value for money Diverse Product Mix Amul Butter Milk Powder Ghee Amulspray Cheese Chocolates Shrikhand Ice-cream Nutramul Amulaya

Strong distribution network Available in 500,000 retail available across India Available 3500 distributors Page 29 of 59


Available dry and cold warehouses to buffer inventory

Technology and e-initiatives New Product Process technology.


Being in the field work, I came into contact with distributors & retailers and enriched my knowledge regarding marketing field. A. I have increased my knowledge regarding the Retailers problem and strategy follow by distributors to sell their products to Retailers. B. The Retailers expectations & opinion from the Company is known during the field work. C. To help Company to design better distribution channel. D. Binding customers loyalty by providing best quality to the retailers.

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According to needs of the Company I have decided my objectives:Primary objectives 1. To know the awareness level of the Amul products among Retailers. 2. To know about the availability of the Amul products in local Retail Outlet 3. To know the Retailers problems in regards to AMUL products as well as distribution process. Secondary objectives 1. To understand Retailer buying Behaviors. 2. To know the competitors availability in the market

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Marketing research plays an important role in the process of marketing. It helps the firm to acquire a better understanding of the consumers, the competition and the marketing environment.

Marketing research is a systematic gathering, recording and analysis marketing problem to facilitate decision making. - Coundiff & Still. Marketing research is a systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services. Phillip Kotler.


Defining the Marketing Problem to be tackled and identifying the market research pr (1) (2) (3) (4) (5) (6) (7) (8) Define the problem and its objectives. Identify the problem. Determine the information needed. Determine the sources of information. Decide research methods. Tabulate, Analyze and interpret the data. Prepare research report. Follow-up the study.

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


Identify the problem: - Identifying the problem involves getting acquainted with the company, its business, its products and market environment, advertising by means of library consultation and extensive interviewing of companys officials.


Determining the specific Information needed :- In general the producer, the manufacturer, the wholesaler and the retailer try to find out four things namely :(a) What to sell (b) When to sell (c) Where to sell (d) How to sell (4) Determine the sources of information:(a) specially for the Primary Data: - Primary datas are those which are gathered project at hand, directly e.g. through questionnaires &

interviews. Primary data sources include company salesman, middleman, consumers, buyers, trade associations executives & other businessman & even competitors. (b) Secondary Data: - These are generally published sources, which have been collected originally for some other purpose. Source are internal company records, government publication, reports & publication, reports & journals, trade, professional and business associations publications & reports.

(4) Decide Research methods for collecting data: - If it is found that the secondary data cannot be of much use, collection primary data become necessary. Three widely used methods of gathering primary data are A) Survey B) Observation C) Experimentation Page 33 of 59


d) Panel Research A) Survey Method: - In this method, information gathered directly from individual respondents, either through personal interviews or through mail questionnaires or telephone interviews. B) Observation Method: - The research data are gathered through observing and recording their actions in a marketing situation. This technique is highly accurate. It is rather an expensive technique.

C) Experimental Method: - This method involves carrying out a small scale trial
solution to a problem, while at the same time, attempting to control all factors relevant to the problem. The main assumption here is that the test conditions are essentially the same as those that will be encountered later when conclusions derived from the experiment are applied to a broader marketing area. D) The Panel Research: - In this technique the same group of respondents is contacted for more than one occasion; and the information obtained to find out if there has been any in their taste demand or they want any special quality, color, size, packing in the product. (5) Follow-up the study: - The researchers, in the last stage, should follow up this study to find if his recommendation are being implemented. The marketing research process which I adopted is influenced by theory of marketing consist the following stages: Defining the problem and the research objective: The objective of my research is to determine the distribution strategies in target market.My target markets are M.G road, Camp, Shivaji Market and Bhawani Peth. Developing the research plan: When the problem is identified, the next step is to prepare a plan for getting the information needed for the research. The present study will adopt the well structure questionnaire and interview for collecting the necessary data from the Retailers. Page 34 of 59


Collecting and Sources of data:-

Market research requires two types of data, i.e., primary data and secondary data. I used both types of data for collecting information. Mostly primary data I used well-structured questionnaires to collect information from the Retailers.. In my project primary data involves: Interviewing the Amul Retailers Observation at retail outlets.

Interviewing was done on basis of questionnaire for retailers; observation method was followed for distributors and consumers. Lots of care was taken at the time of preparing questionnaire so that it gives a better and authentic result. Secondary Data: - The secondary data are those which have already been collected by someone else and which have already been passed through statistical process. In my project secondary data involves: Organization , journals , and booklets Retailers price list

Analysis of Collecting Data:This involves converting raw data into useful information. It involves tabulation of data, using Microsoft Excel on them for developing Graphs and chart to retrieve useful information from the data collected. Report Research Findings:-

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This is the part which gives a quick view of my marketing survey effort. The report with the research finding is a formal written document. The research finding and personal experience will be used to propose suggestion & recommendations to improve the distribution strategy. In this research report I include everything whatever I found at the time of survey.


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Research design is the plan structure and strategy of investigation conceived so as to obtain answers to research question and control variance. Research design is the blueprint for the collection, measurement, and analysis of data. Research design category into three: Research design in case of exploratory research studies. Research design in case of descriptive and diagnostic research studies. Research design in case of hypothesis-testing research studies.


METHOD USED FOR DATA COLLECTION Observation and Interview of retailers TOOLS FOR DATA COLLECTION Primary Data: Secondary Data: SAMPLE DATA Universe Interview Schedule Company journals & sites


Retailers of 4 areas of pune Retailers, their competitor, selling outlets, presently not selling Amul brand but wanted to sell.

Population : Sample Size : Sample method: -

Number of retailers are 120 Convenient sampling method

Statistical technique: - Percentage method

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(1) Which of the following brand do you provide?

OBSERVATION TABLE Parameter Respondents Percentage (%) Amul 112 93 Cadbury 98 82 Nestle 87 73 HUL 115 96


INTERPRETATION 93% Retailers have Amul products, 82% have Cadbury products, 73% have Nestle products, and 96% have Hul products. HUL products are available in the retailers shop more compare to Amul and other Brands. So research shows that Amul finds second place in retailer shop. TITLE Page 39 of 59


2. How do you contact with the Amul distributor? OBSERVATION TABLE Sample size-120 Medium Respondents Percentage (%) Telephone 88 73 Email 5 4 Personal Visit 27 23


INTERPRETATION 73% Retailers communicate with Telephone, 23% communicate with Personal visit and 4% communicate with Email to their distributor respectively. Retailers finds convenient with Telephone compare with others means of communication. So, research shows that Telephone is the most popular means of communication

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(3) Does Amul distributor supply exact quantity as per order? OBSERVVATION TABLE Sample size-120 Supply of product Respondent Respondent (%) Yes 68 56.7 No 52 43.3


INTERPRETATION Out of 120 Retailers, 68(56.7%) retailers say that distributor supply as per order but 52(42.3%) retailers complain short supply of demanded product. So, we can say that supply given by distributor is not equal to demand of retailers. TITLE (4) What is your opinion regarding speed of receiving Amul products after placing order by Retailers? OBSERVATION TABLE Page 41 of 59


Sample size 120 Frequency product Respondent of Fast 18 Very Fast 32 27 Medium 60 50 Slow 10 8

Respondent (%) 15


INTERPRETATION Out of 120 Respondents, 18(15%) Retailers feels that frequency of receiving products are fast, 32(27%) feels that frequency are very fast, 60(50%) retailers feels that frequency are medium, and 10(8%) feels that frequency are slow. So, we can that frequency of receiving products after placing order by retailers are medium. TITLE 5. What is your opinion regarding Packaging of Amul products? OBSERVATION TABLE Sample size-120

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Packaging Respondent Respondent (%)

Excellent 17 14.2

Good 51 42.5

Satisfied 43 35.8 9 7.5



INTERPRETATION 14.2% Retailers believe that amul have got Excellent Packaging, 42.4% believe that Amul have good packaging, 7.5% Retailers believe that Amul have poor packaging and 35.8% Retailers are satisfy with Amul packaging So, we can say that Amul have got packaging advantage 6.TITLE Page 43 of 59


Do you have cooling equipment? OBSERVATION TABLE Sample size-120 Cooling equipment Respondent Respondent (%) 97 81 Yes No 23 19


INTERPRETATION Out of 120 retailers, 97(81%) retailers say that they have cooling equipment while 23(19%) retailers say that they have no cooling equipment.

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TITLE 7. How often the Amul product does get damaged? OBSERVATION TABLE Sample size-120 Frequency damaged goods Respondent Respondent (%) of Never 9 7.5 Sometimes 91 75.8 Many times 15 12.5 Always 5 4.2


INTERPRETATION Out of 120 respondents, 91 retailers(71.8%) complaint that products sometimes damaged during the distribution process, 15(12.5%) complaints that many times products damaged, 5(4.2%) complaints that products always damaged and 9(7.5%) Retailers believe that products never damaged during distribution process. So, we can say that damaging of products takes place during distribution process which should be minimized. Page 45 of 59


TITLE (8) Which Company solve problem fast in terms of Replacement? OBSERVATION TABLE Sample size-120 REPLACEMENT Amul RESPONDENT RESPONDENT (%) GRAPHICAL REPRESENTATION 10 8.3 Cadbury 53 44.2 Nestle 34 28.3 HUL 23 19.2

INTERPRETATION Out of 120 Retailers, 53(44.2%) retailers are happy with the replacement facility given by Cadbury, 34 (28.3%) retailers are happy with the replacement facility of Nestle, 10(8.3%) are happy with replacement facility of Amul and 23(19.2%) are happy with replacement facility of HUL. So, we can say that Amul gives the least Replacement facility. TITLE Page 46 of 59


9. Are you getting facility of credit purchase for Amul products? OBSERVATION TABLE Sample size-120 Credit Purchase Respondent Respondent (%) Yes 13 10.8 No 107 89.2


INTERPRETATION 11% Respondents saying that Company is providing credit facility while 89 % are not agree with this view.

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11 Which Company gives you better sales promotion schemes? OBSERVATION TABLE Sales promotion Amul schemes Respondent 39 Cadbury 32 Nestle 29 Sample size-120 HUL 20

Respondent (%)






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INTERPRETATION From the above pie chart we can say 32.5% retailers better sales promotion schemes compare to other Company.26.7% favour for Cadbury, 24.2% for Nestle and 16.6% for HUL in providing sales promotion schemes respectively

TITLE (13) Which Company gives you better margin on sale? OBSERVATION TABLE Sample size-120 Sales margin Respondent Respondent (%) Nestle 23 19.2 Cadbury 32 26.7 Amul 22 18.3 Hul 43 35.8


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INTERPRETATION 38.8% Retailers believe that Hul gives the better sales margin , 26.7% Retailers believe that Cadbury gives better sales margin while 19.2% believe in Nestle and 18.3% believe in Amul in terms of sales margin. So, we can say that sales margin is one of the factors that makes Amul unpopular in retail outlets.


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Amul finds second place in Retailers outlets after HUL products as 93% Retailers have Amul products and 96 % have HUL products. Cadbury finds third place and Nestle fourth place with 82% and 73% Retailers have these products respectively. Telephone is the most popular means of communication as 73% Retailers communicate with telephone to their distributors. Again 23% communicate with Personal visit and 4% communicate with Email to their distributors. 57% Retailers said that distributor supply as per order but 43% Retailers complaints about short supply of demanded product. Replacement facility given by Amul is not up to the mark as only 8.3% are happy with replacement facility given by Amul compare to other brands like Cadbury, Nestle and HUL. . Survey shows that75.8% retailers complaint that products sometimes damaged during the distribution process, 12.5% complaints that many times products damaged, 4.2% complaints that products always damaged and 7.5% retailers said that products never damaged during distribution process. Sales margin is one of the factors that makes Amul unpopular in retail shop as As per survey 81% retailers have cooling equipment while 19% retailers said that

they have no cooling equipment.

survey shows that 38.8% retailers said that HUL gives the better sales margin, 26.7% retailers said that Cadbury gives better sales margin while 19.2% said Nestle and 18.3% said Amul in terms of sales margin.

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Amul have got Packaging advantage as survey shows that14.2% retailers believe that Amul have got Excellent Packaging, 42.5% believe that Amul have good packaging, 7.5% retailers believe that Amul have poor packaging and 35.8% Retailers are satisfy with Amul packaging.

Survey shows that 32.5% retailers say that Amul provides better sales promotion schemes compare to other Company.26.7% favour for Cadbury, 24.2% for Nestle and 16.6% for HUL in providing sales promotion schemes.

Distribution to Retailers: - Amul having 3-4 vans with each distributor to distribute the product according to the demand.

Payment period:-Payment collection is done by distributors between 12pm to 4pm in cash as well as in demand draft and cheques.

Payment method:-During the survey, it is observed that only 11% were only getting credit facility, while 89% wants product for 2-3 days credit. But company provide credit only if they maintain good relationship. . . .

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Some retailers do not gives time as they are busy with customers. Some retailers manipulated the facts and figures while interview. Consumers taste and preference changes very frequently. As the research work needs to be undertaken in the morning time, it was found difficult to meet many retailers. Large sample size would have given much better conclusion. Lack of Company support and inadequate data due to Company privacy and secrecy makes my research incomplete.

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Proper delivery should be done and Retailers should get products as per order. For this distributor can develop good distribution network. During distribution process care should be taken in handling of products so that damaged should be minimized. Company person should visit to the retailers regularly so that complaints of retailers about distributor can be taken into notice. . Replacement facility should be provided up to certain extent . Margin of sales should be increased as it motivates retailers to push the sales of product.

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Amul is confident of growing its business through innovation coupled with an aggressive marketing and rural distribution drive. Despite several shortcomings Amul contains brand name and have good promotion program. The major problem as far as Pune concerned is high competition and loyalty towards competitors. There is need for proper concentration on marketing strategy especially on promotion programme, delivery of the product, and facilities like replacement and credit to retailers. Amul should implement and amend marketing strategy as soon as possible because Nestle, HUL and Cadbury also introducing new flavor and offering consumer and retailer. The Amul should focus on accelerated growth of the impulse segment, through more focused brands and deliver affordable products through appropriate innovation. This will provide the platform for a stronger performance in the years ahead.

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BOOKS: Kotler Philip: Marketing Management, eleventh edition, Pearson Education Pvt Ltd. Indian Branch, Delhi. C.R. Kothari: Research Methodology (Methods & Techniques), Second Edition, New Age International Publishers, New Delhi. V.S. Ramaswamy: Marketing Management, third edition, MacMillan India Ltd. New Delhi

MAGAZINE: Business Today India Today

WEBSITE: www.amul.com/companyprofile.htm/annualreport.htm on www.wikipedia.com on 27/8/09

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Name of Retail outlet --------------------Address------------------------------Contact No-----------------------Email id-----------------------1. Which of the following brand do you provide? (a) Amul (c) Nestle 2 (b) Cadbury (d) Hul

How do you contact with the Amul distributor? (a)Telephone (c)Email (b) Personal visit of Employee

3. Does Amul distributor supply exact quantity as per order? (a) Yes 4. (b) No

What is the speed of receiving the products after placing Amul order by you? (a) Very fast ( c) Medium (b) Fast (d) Slow

5. What is your opinion regarding Amul packaging? (a) Excellent (c) Satisfied (b) Good (d) Poor

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6 Do you have cooling equipment? (a)Yes 7. (b) No

How often the Amul product does get damaged? (a) Always (c) Never (b) Sometimes (d) many times

8. Which Company solve problem fast in terms of Replacement? (a) Amul (c) Nestle (b) Cadbury (d) Hul

9 Are you getting facility of credit purchase for Amul products? (a) Yes (b) No

10. Which Company gives you better sales promotion schemes? (a) Amul (c) Nestle (b) Cadbury (d) Hul

11. Which Company giving better margin on sales? (a) Amul (c) Nestle (b) Cadbury (d) Hul

12. Would you like to give any suggestions?

i. ----------------------------ii. -----------------------------iii. ---------------------------------



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