PROJECT REPORT ON

“A Study on Penetration of Amul Milk in Retail

Outlets of Panvel City”

(This study was conducted from 1st May to 30th June 10)

Submitted At

Gujarat Co-operative Milk Marketing Federation Ltd.

Mumbai.

Submitted By

Pratik Yaul

Sterling Institute of Management Studies

Nerul ,Navi Mumbai

 ACKNOWLEDGEMENT

We would like to express our sincere gratitude towards Mr. Prakash Aute

Deputy manager Sales, Mumbai of GCMMF (AMUL MILK) cooperative Limited for

the guidance provided. This project would not have reached its end without the

supervision and direction which they gave. We thank them for spending their valuable

time and energy in guiding us throughout this project and for certifying us of our

successful completion of the project report.

We take this opportunity to express our deep gratitude to Mr Sambhaji

Jamdade Sales field representative who has always been there to guide us throughout

this project report. We thank the Department of Marketing Management for offering us

this opportunity.
 Index

Sr. No. Particulars Page No

1 INTRODUCTION 4

2 EXECUTIVE SUMMARY 6

3 INDUSTRY PROFILE 7

4 INTRODUCTION AND HISTORY OF 12

COMPANY

5 OBJECTIVE AND SCOPE 25

RESEARCH METHODOLOGY
6 26

7 DATA ANALYSIS AND INTERPRETATION 28

LIMITATIONS OF THE RESEARCH
8 38
FINDINGS OF THE RESEARCH
9 38
SUGGESTIONS AND RECOMMENDATIONS
10 39
QUESTIONNAIRE
11 40
BIBLIOGRAPHY
12 41

INTRODUCTION TO THE PROJECT

1.1 CONTEXT OF THE TOPIC

The dairy industries companies run mainly on the factors such as availability, service frequency,
affordability, taste and marketing. Availability is plays a vital role because purchasing power is depend
upon availability of that product, in case distributors and retailers service matter a lot.

A retailer or retail store is any business enterprises whose sales volume comes primarily from
retailing.
 Market penetration is one of the four growth strategies of the Product-Market Growth
Matrix defined by Ansoff. Market penetration occurs when a company enters/penetrates a market with
current products. The best way to achieve this is by gaining competitors' customers (part of their market
share). Other ways include attracting non-users of your product or convincing current clients to use more
of your product/service (by advertising etc).

It was found that due to low consumption of milk, there is no more awareness of milk product
here It was the major cause to the low selling of “Amul” milk product. Like that penetration level in the
outlet of milk product was low.

Finally the whole study of the research work, the company needs the effective advertisement of
the product in the local channel and print media for awareness of “Amul” milk in the Panvel city

Promotion Tool Used

The consumer promotion tools mean the promotion activities, which are beneficial for
consumers as well as company. Such as price discounts, samples, cash refund, premiums, prizes, cross
promotion and coupons etc. We distributed it among customers and validity kept seven days from
issued.

 The consumers are seduced to buy the product.

 It helped to increase sales volume.

 Consumer can get good quality of goods in cheaper price.

 It can attract the new consumers and customers buying other milk brands.

 Attract brand switchers, who are primarily looking for low price, good value or premiums.

 Turn switcher to loyal users,

 It induced to make some subsequent purchases.

 Give little permanent gain in market share.

1.2 Need of Study

Managers are always curious about the position of their company’s products in the market which
largely depend upon the company’s goodwill, and the position of their brand. In order to maximize the
sale and profit, company must deliver outstanding satisfaction to the retailers. So market survey of
retailers, chart out the position of the company as compared to the competitors. It helps the organization
to find out the brand being sold most by the retailers along with their stocking and also consumer buying
preferences.

1.3 Statement of the Problem

“A STUDY ON PENETRATION OF AMUL MILK IN RETAIL OUTLET OF Navi Mumbai

(Panvel) CITY”

It helps to determine penetration level which can be used to influence large number of retailers
so as to increase the sales of the Amul milk effectively”.

EXECUTIVE SUMMARY
Amul Milk, brand of the Gujarat Cooperative Milk Marketing Federation Limited (GCMMF).
Amul milk is the significant player in Mumbai in milk segment.

The project basic objectives are to estimate demand of Amul Milk and promoting Amul milk in
Panvel at the same time. In today’s competitive world while entering in the market it is very necessary
to have good knowledge of the potential of a particular market. The information regarding the activities
of competitor’s existing in the market so that we can plan our each activity according to that. Also it is
necessary to retain the existing customers apart from attracting the new customers.
 The Project is concern with to determine the penetration level of Amul dairy milk in Panvel city.
The project included as part of MMS Programme and the project is done during the month of May and
June.

The project was aimed to find out various strategies that can be implemented to increase the
Retail penetration of Amul milk in Panvel Region of Navi Mumbai .These strategies were suggested
after a research on the milk industry in Panvel. There was questionnaire prepared for retailers. The
sample size was decided on 160 retailers by dividing group members to study the various areas in
Panvel.

We encountered a little problem in collecting data as the retailers were reluctant in providing any
kind of information on their relationship with the distributor/company. Also to ensure that the
information was accurate, the retailer had to be cross questioned on many occasions.

Basic analysis was done through pie charts and bar diagram to reveal the real picture in the
market in terms of percentage so that strategies could be thought upon the concrete data that had been
collected. These strategies were to be sought to be of benefit to the company, the distributors, the
retailers and the consumers. On successful implementation of the strategies it was expected that the
retail penetration of Amul milk would increase in Panvel.

INDUSTRY PROFILE

Dairy is a place where handling of milk and milk products is done and technology refers to the
application of scientific knowledge for practical purposes. Dairy technology has been defined as that
branch of dairy science, which deals with the processing of milk and the manufacture of milk products
on an industrial scale.

The dairy sector in the India has shown remarkable development in the past decade and India has
now become one of the largest producers of milk and value-added milk products in the world.
 The dairy sector has developed through co-operatives in many parts of the State. During 1997-
98, the State had 60 milk processing plants with an aggreg ate processing capacity of 5.8 million litres
per day. In addition to these processing plants, 123 Government and 33 co-operatives milk chilling
centers operate in the State. Also India today is the lowest cost producer of per litre of milk in the world,
at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this
lowest cost of milk production and increasing production in the country multinational companies are
planning to expand their activities here. Some of these milk producers have already obtained quality
standard certificates from the authorities. This will help them in marketing their products in foreign
countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33%
per annum to around Rs.43, 500 crores by year 2005. This growth is going to come from the greater
emphasis on the processed foods sector and also by increase in the conversion of milk into milk
products. By 2005, the value of Indian dairy produce is expected to be Rs 10, 00, 000 million. Presently
the market is valued at around Rs.7, 00, 000 mn

Milk Production from 1950 to 2020

1950 – 17 million tones

1996 – 70.8 million tones

1997 – 74.3 million tones

(Projected) 2020 – 240 million tonnes

Expected to reach- 220 to 250 mt – 2020

India contributes to world milk production rise from 12-15 % & it will increase up to 30-35% (year
2020) W orld's M ajor M ilk P roducers (Million MTs)

Country 2002-03 2003-04 (Approx.)

Sr. No Country 2002-03 2003-04

 1 India 81 84.5

2 Brazil 75 77

3 Russia 34 33

4 Germany 27 27

5 France 24 24

6 Pakistan 21 22

7 USA 71 71

8 UK 14 14

9 Ukraine 15 14

10 Poland 12 12

11 New Zealand 11 12

12 Netherland 11 11

13 Italy 10 10

14 Australia 9 10

R esearch and D evelopment in D airy I ndustry :

The research and development need to the dairy industry to develop and survives for long time
with better status. The various institute and milk dairy companies R&D results provide base for today’s
industry growth and development. The research and development of products of dairy, like yogurt and
cheese market research and company reports provides insights into product and market trends, analysis
opportunities, sales and marketing strategies will help local milk unions to develop and spread world
wide through obtaining this knowledge. Specific on market share, segmentation, size and growth in the
US and global markets are also helps industry to expand its market worldwide even small union also.
D evelopment of F ood P rocessing I ndustry :

The food processing industry sector in India is one of the largest in terms of production,
consumption, export and growth prospects. The government of accorded it is a high priority, with a
number of fiscal relieves and incentives, to encourage commercialization and value addition to
agriculture produce, for minimizing harvest wastage, generating employment and export growth. Food
processing industry is providing backbone support to the milk industry.

The development food products by using milk can give good market opportunities to produces
milk.

P roducts and I ndustry S tatus:

Among the products manufactured by organized sector are Ghee, Butter,Cheese, Ice-Creames,
Milk powders, Melted milk food, Infant food, condensed milk etc.. Some milk products like Casein and
Lactose are also being manufactured lately. Therefore, there is good scope for manufacturing these
products locally. Liberalization of the economy has led to a flood of new entrants, including MNCs due
to good prospects and abundant supply.

I nvestment P otential in M ilk P roducts :

At the present rate of growth, India is expected to overtake the US in milk production by the year
2010, when demand is expected to be over 125.69 ml.tn. Being largely imported, manufacture of casein
and lactose has good scope in the country.

Exports of milk products have been decentralized and export in 2005-2010 is estimated at
71.875 cr.

P roduction of M ilk in I ndia:

The facts and figures here shown are calculated on the basis of percentage increases pear year.

Year Production in million MT

Sr. no Year In Million MT

 1 1993-94 61.2

2 1994-95 63.5

3 1995-96 65.0

4 1996-97 68.0

5 1997-98 71.0

6 1998-99 74.5

7 1999-00 78.0

8 2000-01 81.51

9 2001-02 85.17

10 2002-03 89.0

11 2003-04 93.0

12 2004-05 97.65

13 2005-06 102.45

14 2006-07 107.58

15 2007-08 104.8

16 2008-09 110

Major Indian and Overseas Players in the Food industry are:

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

Chapter 1

INTRODUCTION AND HISTORY OF COMPANY

INTRODUCTION

AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India.
Headquartered in the small town of Anand, Gujarat, it is a brand name managed by an apex cooperative
organization, Gujarat Cooperative Milk Marketing Federation (GCMMF). Specializing in dairy
products, AMUL now takes pride in having built the largest food product business in the country. Being
a part of the Gujarat Cooperative Milk Marketing Federation (GCMMF), AMUL is a sterling example of
cooperative achievement in the developing world. AMUL survives and grows on the basis of
cooperative culture, cooperative networking, market acumen and respect for both producer and the
consumer. Presently, it is the most popular food brand of India.

HISTORY

Thus their cooperative unions were forced at the village and district level to collect and sell milk
on a cooperative basis, without the intervention of Government. Mr.Verghese Kurien showed main
interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in
forming the Co-operative unions at the village level. The Kaira district milk producers union was thus
established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the
milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand
name AMUL.

The Union looks after policy formulation, processing and marketing of milk, provision of
technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care,
better feeds and the like - all through the village societies. Basically the union and cooperation of people
brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE
TASTE OF INDIA.

GCMMF Overview:

GCMMF is the India’s largest food products marketing organization. It is a state level apex body
of milk co-operatives in Gujarat, which aims to provide remunerative returns to the farmers and also
serves the interest of consumers by providing quality products, which are good value for money.

VISION
The vision of AMUL is as follows:

 To serve the interests of the milk producers

 To provide quality products that offer the best value to consumers for money
spent.

SALES TURNOVER

Sales turnover of GCMMF

Sr.No Year Rs.(in million) US $ (In million)

1 1995-96 13790 400

2 1996-97 15540 450

3 1997-98 18840 455

4 1998-99 22192 493

5 1999-00 22185 493

6 2000-01 22588 500

7 2001-02 23365 500

8 2002-03 27457 575

9 2003-04 28941 616

10 2004-05 29225 672

11 2005-06 37740 839

2007-08 52554 1325
12
2008-09 67113 1504
13

Graphical representation of sales turnover of GCMMF.

AREAS OF OPERATIONS

Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA,Bangladesh,
Australia, China, Singapore, Hong Kong and a few South African nations. Other potential markets being
considered include Sri Lanka.

SOME FACTS:

Annual Revenues : $1.33 billion USD

Members : 13 district cooperative milk producers` union

No of Employees: 2.7 million

No of village societies: 13,141

Total Milk handling capacity: 10.21 million liters per day

Annual Milk Collection: 2.69 billion liters

Daily Milk Collection: 7.4 million liters

Milk Drying Capacity: 626 Mts. Per day

Cattle feed Manufacturing Capacity: 3090 Mts. Per day

ACHIEVEMENTS

AMUL has achieved the following landmarks.

 AMUL is the largest food brand in India.

 AMUL is the world`s largest pouched milk brand.

 AMUL is the world`s largest vegetarian cheese brand

 CRISIL has assigned its highest ratings of “AAA” to the various bank facilities of GCMMF

GCMMF’S 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. Last year, they are divided the retail market into 14 specific
segments to achieve further distribution efficiency. This year our focus was on inducting distributors
having expertise in servicing such specific market segments. This initiative is yielding results by way of
ensuring wider availability of our product range.

The role of distributors in our business process has never been more diverse or more important,
as it is today. As a matter of fact, we consider our Distributor to be the real
 “Marketing Manager” of our organization. To enhance business performance of our Distributors,
a workshop on Marketing and Sales Management was designed in collaboration with a premier business
school. The objective of the entire initiative was to upgrade the knowledge of our Distributors in terms
of contemporary Business Management Practices, so that they can perform well not only as our business
partner but also as Marketing Managers. During the year, 659 Distributors have undergone this
programme in 39 locations. Cold Storage is an extremely essential component in the Federation’s
distribution process.

Unfortunately, availability of efficient cold storage facilities is grossly inadequate in our country.
To cope up with the increasing need of suitable cold stores closer to our markets, we have continued our
endeavour of creating the Federation’s own cold stores this year in various locations across the country.
We now own 24 state of the art cold rooms of different sizes.
 Milk is the “nature’s perfect food” for all ages. It has almost all the vital nutrients need for the
growth and well being of human body. Milk is the richest natural source of calcium and essential amino
acids, which is good for bone formation. It is particularly beneficial for people recovering from sickness,
for sportsmen, for old people, for pregnant women and for growing girls and boys. The doctor
recommends a minimum daily intake of 250 ml or more for every person.

Normal cow milk has 4% Fat and buffalo has 7% Fat. There is another important constituent of
milk is Solids Non Fat (SNF). This (or SNF as it is commonly called) comprises of proteins, minerals,
carbohydrates and vitamins. For mil to be nutritionally balanced, it has to contain both Fat and Solids
Not Fat in proportion.

The PFA act lays down standards of Fat and SNF for various types of milk, as follows:
 Amul Milk is available in Navi Mumbai (Panvel) and surrounding areas in Toned, Full cream
and cow milk varieties. Amul Milk strictly confirms to PFA standards. In fact we keep ourstandards. In
facts

We keep our standards higher so as to abundantly comply with the legal requirements and to
provide wholesome nutritive food to our consumers.

This means when you are buying Amul Milk you are sure to get the “nature’s perfect food” for
your family. You are sure to get your full 500 ml. in every pack. You are sure of getting milk, which has
longer life because of superior bacteriological quality and state of art processing technology.

The loose milk available from local vendors often does not confirm to PFA standards. It often
has less Fat and less Solid Non Fat then required. Remember that if your milk contains 0.5% less Fat or
SNF, you are paying up to one rupee per pouch extra. Besides, it is not uncommon to find artificial
preservatives, which are not permitted by law being added to loss milk.

If you are buying cheap loose milk or even pouch milk, think again! By compromising on the
quality of milk, you may be depriving your children of essential life-building proteins and nutrients that
only pure and high quality Amul Milk will give.
AMUL PRODUCT RANGE
 Competitors Profile
Gokul

Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. well known with its popular brand
‘Gokul‘ is an Operation Flood cooperative dairy project established on 16 th March 1963. Since then
achieved many land marks in Milk Procurement, Extension, Animal Health, Breeding, Milk Processing,
Product making and Marketing. At present Gokul has modern 7 Lakh Liters/day capacity dairy plant
with 4 owned and 1 hired chilling centers having  4.25 Lakh Liters/day milk handling capacity.

Mahanand Milk

Mahanand Milk, the World-Wide Taste of Happiness.Mahanand Dairy is the Largest Cow Milk
packing and distributing dairy in Asia. Mahanand Dairy is always related to any breakthrough or advent
in the Milk Production and Dairy Technology in India. Mahananda has launched Mahanand Parijatak
Scheme.
At present Mahanand Dairy is distributing 8.5 Lac Liters milk per day through 722 milk
distributors (Ex Dairy Distributors -174 and shop Distributors, Commission Agents etc. - 548).

Arey

During Second World War to prevent of malnutrition pregnant ladies and children due to food
shortage, Municipal Corporation of Mumbai started milk distribution system. Each female used to get
half liter of milk. This scheme was operational till 1946. After that civil supply department was
operating this scheme.

As there were no facilities for boiling the milk, raw milk was supplied to British soldiers,
officers, and employees. They were not used to drink raw milk which created health problem for them.
The cattle sheds of Mumbai were in unhygienic conditions and rearing/nursing of cattle was done in
unscientific ways. Due to this health problems surfaced in the nearby locality. To rehabilitate cattle shed
of Mumbai in a more scientific way and to encourage clean milk production, in the year 1949, Arey
Milk Colony was established.
Warana

The dairy plant has a capacity to handle more than 300,000 liters of milk of which 100,000 liters
can be converted into milk products. A clean and efficient management of dairy brought the proud
products of Warana like Warana pasteurized Milk, Milk Powder, Ghee, and Butter

The turnover for the year 1997-98 was Rs. 138 cores. By selling 2035 tones of Shrikhand in the
year 1998, Warana reached a new record of maximum selling of Shrikhand in India. For its qualitative
and quantitative excellent performance dairy has acquired an ISO 9002 Certification in record time of
three months.

Mother dairy

Mother Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization.
Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board for Testing and
Calibration Laboratory (NABL)-Department of Science and Technology, Government of India.

The company’s derives significant competitive advantage from its unique distribution network of
bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams launched in the year 1995
have shown continuous growth over the years and today boasts of approximately 62% market share in
Delhi and NCR. Mother Dairy also manufactures and markets a wide range of dairy products that chain
of 400+ own Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the
country. Fresh produce from the producers is handled at the Company’s modern distribution facility in
Delhi with an annual capacity of 200,000 MT.
Chapter 2

OBJECTIVE AND SCOPE

1. OBJECTIVES OF THE REPORT

The main objective of the Study can be listed as follows

A.PRIMARY OBJECTIVE

1. To find size of retail network of Amul Taaza and Amul Gold in specific areas of Navi
Mumbai (Panvel) city or penetration level of Amul Milk in Navi Mumbai (Panvel) city.

2. To find the problems faced by retailers in selling and storing.

3. To collect the information about the competitors

B.SECONDARY OBJECTIVE

1. To organize sale promotional activities to improve milk sales.

2. To generate and secure consumer awareness.

2. SCOPE OF PROJECT

The study carried out in Navi Mumbai (Panvel) city so, its scope is mainly limited to Navi Mumbai
(Panvel) city.

 It gives information about the size of the retail network.

 It gives information about the services given by distributor to their retailer.
 It gives information about the competitors’ products
 It will serve consumer in better manner.
 It provides suggestions to the company to improve their products sales.
 It gives information about the sales promotion activities to improve the milk sale.
Chapter 3

RESEARCH METHODOLOGY

RESEARCH DESIGN FOLLOWED

Descriptive Research is the research method used because descriptive studies embrace a large
proportion of market research. The purpose is to provide an accurate snapshot of some aspect of the
market environment. Descriptive research is more rigid than exploratory research and seeks to describe
users of a product, determine the proportion of the population that uses a product, or predict future
demand for a product. As opposed to exploratory research, descriptive research should define questions,
people surveyed, and the method of analysis prior to beginning data collection. In other words, who,
what, where, when, why, and how aspects of the research should be defined.

SAMPLING:-

SAMPLING TECHNIQUE USED

In this project the technique of sampling used was Judgment sampling. Judgment sampling
involves the choice of subjects who are most advantageously placed or in the best position to provide the
information required.

SAMPLE UNIT

In this project case sample were the retailers in Navi Mumbai (Panvel) region & the aim was
to know the penetration level of Amul milk and the competitors present in the market.

SAMPLE SIZE: 160 Retailers.

DATA COLLECTION TECHNIQUES

 SOURCES OF DATA
 PRIMARY DATA

To collect primary data from Retailer’s Questionnaires were used. Questionnaire was prepared
very carefully so that it may prove to be effective in collecting the right information.
SECONDARY DATA

Secondary data collected from different website. This secondary data formed the conceptual
background for the project. This secondary data was compared with the primary data collected in area.

RESEARCH INSTRUMENT

The research instrument used in the project was Questionnaire to collect primary information, it
provided flexibility by using more close ended and few open ended questions.

METHOD OF DATA COLLECTION

Information was collected by personally contacting retailers through interviews.

ANALYSIS AND STATISTICAL TECHNIQUE USED

Types of data analysis techniques used in the project:

 Tabular analysis.

 Graphical analysis.

 Percentage analysis.
Chapter 4

DATA ANALYSIS AND INTERPRETATION

1) Number of retailers visited.

Opinion No. of Percentage

respondents
Responded 118 74%
Not Responded 42 26%

Response from retailers

Responded Not Responded
26%

74%

INTERPRETATION:

 The above graph indicates that 74 % of the retailers responded in retail outlets of Navi Mumbai
(Panvel) city.
 It shows that majority of retailers are ready to respond for such surveys.
2) Market Structure of Panvel.

Distribution of Retailers in
Panvel
Old Panvel
25%

New Panvel
75%

INTERPRETATION:

1) The above pie chart shows the distribution of retailers in panvel.

2) Retailers are mainly distributed in two parts, old panvel & new panvel.
3) From this pie chart we can decide our target market.

3) Market potential of each Market.

Consu
Ar mptio
ea n
Ol 3820
d
Pa
nv
el
Ne 7395
w
Pa
 nv
el
(Consumption is in liters.)

Total Milk Market Potential

Panvel
Old Panvel
34%

New Panvel
66%

INTERPRETATION:

1) The above graph shows Total milk market potential of Panvel.

2) It shows new panvel is having comparatively large market than old panvel, but as compare
to distribution of retailers the market potential at old panvel is relatively higher.

4) Milk Distribution Pattern at Panvel.

Milk Distribution Pattern at

Panvel
Both Loose
16% 23%

Pouch
61%
INTERPRETATION:

1) The Above pie chart shows formats in which consumers like to purchase milk .
2) The graph show that majority of people like to purchase milk in pouch format and loose milk
is also having significant share in milk distribution.

5) Total Retail Outlets of Amul & its Competitors

Organization % Market Share No of Retailer

Warna 33% 47
Gokul 22% 31
Arey 14% 19
Loose 11% 16
Mahanand 7% 10
Mother dairy 3% 4
Amul 4% 5
Other 6% 8

Total Market Share of Amul & its Compititors

35%

30%

25%

20%

15%

10%

5%

0%
Warna Gokul Arey Loose Mahanand Mother dairy Amul Other

INTERPRETATION:

1) Above graph shows that currently Warna is having maximum retailer outlets in panvel.
2) Gokul, Arey and Loose milk plays significant role in Panvel’s milk market.

3) Amul mainly has to compete with Warna, Gokul, Arey.

4) Amul can also trap Loose milk market.

6) Milk Market Potential at Panvel.

Old Panvel
Brand Milk Quantity(Lit.)
Loose 2210
Warana 520
Amul 0
Mahanand 25
Other 130
Mo.dairy 0
Gokul 835
Arey 100

New Panvel
Brand Old Panvel
Loose 1970
Warana 2710
Gokul 695
Arey 1050
Mahanand 275
Mo dairy 110
Amul 160
Other 425
 Market Share of Each Brand
OldareyPanvel
3%
Gokul
22%

Mo.dairy
0%
Other
Mahanand
Amul
3% Loose
1%0% 57%
Warana
14%

Market Share of Each Brand

New Panvel
other
amul
modairy
mahanand 2% 6%
1% loose
4%
27%
arey
14%

gokul
9%

warana
37%
 Comparision of Two Markets

3000

2500

2000

1500
Old P
1000
New P
500

INTERPRETATION:

1) Amul’s share is relatively small in both the market.

2) In Old market Amul is not at all present.

 3) There is good scope for amul to increase their sell as they are having good brand value in
market.

4) Loose milk is more popular in old market as compare to new market.

7) Reasons for Amul milk not stored by retailers.

Answer No. of respondents

Not Regular Supply 24

No One has Asked 8

Not Allowed 18

Replacement 3

Retailers Margin 24

Not Demanded by Customers 5

Other Reasons 6
 30 Not Regular Supply

25 No One has Asked

20 Not Allowed

15 Replacement

10 Retailers Margin

5 Not Demanded by
Customers
0 Other Reasons
Reasons

INTERPRETATION:

1) From above graph it is clear that half of the retailers were not satisfied with Amul’s margin
policy and Distribution network.

2) Very less retailers complained about distribution network.

3) Some of them were not having permission to sell other brands of milk .

4) Some of them complained regarding sale’s man visit also.

8) Response of Retailers When Asked for Order.

Response of Retailers on Order

No Reply Not Intrested Order Will Think Later
11% 34%
19%

36%
INTERPRETATION:

1) Most of them were not interested because of their relation with past distributor and
retailer’s margin.

2) Some of them has given order

3) Few of them tell that they will think in future regarding prder.

9) Effect of Promotional activity on the sale of Amul milk at Tanaya agency.

Date Quantity Sold

6/19/2010 80
6/20/2010 350
6/21/2010 120
6/22/2010 110
6/23/2010 120
6/24/2010 120
6/25/2010 120

Quantity Sold
400
350
300
250
200
150
100 Quantity Sold
50
0
INTERPRETATION:

1) Initially the sell was 80 lit.

2) After the first activity the sell increases to 350 lit (The activity was ½ lit. Milk is free on 1
lit.) .

3) Then it reaches to 120 lit. & then it get constant on 120 lit.

4) From the above representation we can say that the promotional activity has given positive
result as there in increase in sale (From 80 lit. to 120lit.)

Promotional Material Used:

Chapter 5

LIMITATIONS OF THE RESEARCH

 The survey is limited only for panvel city.

 Time period of the project was 8 weeks, which may not be enough to understand the whole
market.
 Respondent hesitate to give true response to question.

Chapter 6

FINDINGS OF THE RESEARCH

Panvel territory is mainly distributed into two main parts Old Panvel and New Panvel .

Old Panvel is having relatively less no of retailers as compared to New Panvel, but from the
research it was found that in this market loose milk is more popular and this market is not covered by
milk distributing companies.

Retailers are not interested because of low profit margin almost all retailers are not interested in
Amul milk selling.

On question, why retailers are not interested in selling of Amul milk, it is found they were not
happy with margin, availability and replacement of damaged or unsold pouches.

Retailers were selling different brands. Because they were able to receive more margin from non
popularized brand that they could not from well known brands.

All retailers get Amul milk from company selected distributors.

Measurable amount of retailers were not happy with the distributors, because of frequent change
in distributors and late delivery of milk.

All retailers were familiar with sales promotion activities undertaken by Amul. But some of the
retailers were complaining about cheating during scheme as they didn’t get discounted amount back.

Some retailers were interested in the amul’s exclusive stall.

Chapter 7

SUGGESTIONS AND RECOMMENDATIONS

The Milk products market has reached Maturity stage in India large no. of Cooperatives having a
variety of product range has entered the market, thus there is one way for Amul to sustain their milk
business in the market by delivering outstanding satisfaction to their retailers, so that they can take
interest in selling of Amul milk products.

This can be done as follow

Amul has a relatively good distribution network, but still company is not able to fulfill the
demand of outlet in the peak season when demand is very high. Here company should consider on the
supply of product in the peak season.

Supply should be regular to all the outlets including those that lie in the pocket roads and
not just in the outlets which lie on the easily accessible routes.

250 ml milk pouch should make available to more extent to retailers for selling, because
lower income family has intention to buy small pouch milk.

Provide reasonable Margin to retailers as compared to competitors, this motivates them to

promote company’s milk and milk products.

Improve delivery schedule to provide products on time for the retailers about who claimed
that Amul milk and other products are not available to them on time.

Incentives & schemes should be given to the retailers and some scrutiny should be follow to
check the scheme get being communicated properly by distributors or sales person.

Company should provide advertising facility like outside wall painting; provide company’s
stand boards, Posters which help to sell Amul milk.

Provide consistent service to retailers as this will help gain company goodwill in the market.

Do not change distributor frequently, because he is the only person who act as a connecting
link between company and retailers.
Questionnaire
 Bibliography

 www.amul.co.in

 www.google.com

 www.wikipedia.org

 Marketing Management by Philip Kotler