INTRODUCTION CHAPTER 1

ABOUT THE TOPIC

1.1 AMUL PREFERRED OUTLET

Amul Preferred Outlet are exclusive Amul outlets which stores and sells entire range
of Amul products. The outlets are spread over 100 to 300 Sq. Ft in markets, premier
educational institutes, hospitals, railway stations, bus stations, municipal corporation
gardens etc. where there are high footfalls.
The franchisee will have a prebuilt shop / space in a good location either owned or
rented. The franchisee is expected to bear the entire cost (viz. interiors and
equipment, excluding property cost) of setting up the store which is expected to be in
the range of Rs. 1.50 lacs to Rs. 6.00 lacs depending upon the format.
Our wholesale dealers will supply stocks at the parlour and the franchisee will avail
retail margin. Retail margins will vary from product to product. Franchisee need not
pay any royalty or share any revenue with Amul.
 Working capital requirement would be extra depending upon sales volume. Expected
monthly sales turnover will vary from place to place depending on location of the
parlour. It may be in the range of Rs. 5 lac to Rs 10 lac per month.

how to Start Anamul Preferred Outlets (APO)

The general guidelines for starting the business of APO are as follows

The criteria for selection of APOs would be

Visibility: How prominent is the location of your shop?

Shop Area: 100 - 300 sq. ft.

Good Business potential

Exclusive Amul outlet - no other products are to be sold.

Renovation Work of the Shop to give it a standard look - would be done to meet the design and
specifications at your cost. The cost of renovation of a typical shop would normally be between
Rs. 60,000 to Rs. 1 lac.

Branding: The cost of the signages fabrication and installation would be borne by GCMMF
Ltd.

Equipment: You would require the following equipment:

1or 2 deep freezers (Can be purchased through HamaraApna Deep Freezer Scheme )

1 Refrigerator through HamaraApna Refrigerator Scheme

1 pizza oven

1 Chest Milk Cooler for Pouch Milk

Security Deposit: You would be required to furnish an interest free refundable security deposit of
Rs. 25,000 to us locked for one year. The entire amount would be forfeited in case the parlour
closes down within the first year of operation.

Supplies: The delivery of products would be done through our wholesale dealers.

Agreement: An agreement bringing us together would be signed

S.N Type of the Prebuilt Investment by the Avg. Returns on MRP
. format Shop franchisee
Reqd.
(In
sqft)

1 Amul 100 - 150 Rs 2.00 lacs Pouch Milk 2.5%,

Preferred (approx). Milk Products - 10%,
Outlet/Amul Break up = Ice Cream - 20%
Railway Refundable Brand
Parlour/Amul Security - Rs 25,000 /
Kiosk Renovation - Rs
100,000 (approx.) /
Equipments - Rs
70,000 (approx.) plus
incidental cost.

2 Amul Ice- >300 Rs 6.00 lacs About 50% on recipe

Cream (approx.) based ice cream
Scooping Break up = scoops / sundaes /
Parlour Refundable Brand floats / shakes / baked
Security - Rs 50,000 pizzas / sandwiches /
Renovation - Rs cheese slice burger /
4,00,000 (approx.) garlic bread / hot
Equipments - Rs chocolate drink (Amul
1,50,000 (approx.) plus Pro).
incidental cost. For pre-packed ice
All Visicoolers and creams the margin
Deep Freezers should would be 20% approx.
be Amul Branded to These ice cream
avail equipment parlours will also sell
purchase support other Amul products
amount. where the margins will
be to the tune of 10%.
Anyone with a very small capital base and good business acumen can become our
franchisee. It requires very little investment and working capital.
We also provide additional retail margins, exclusive consumer offers, store
inauguration supports, equipment purchase supports, free brand signage etc.
All recurring expenses such as employee cost, electricity charges, shop rentals etc.
would be borne by the franchisee out of the gross retail margins earned.

APO/Scooping Parlors in Delhi

1 APO Sale = 6 Retail Outlet

Product Line No APOs

APO in Delhi 270

Scooping Parlours 16

Total 286

APO throughput = Rs. 4.4 lac per APO per month

APOs IN PROMINENT PLACES OF DELHI

SALES AND PROFIT

Avg Sale Profit

Business Line (in Rs.) (in Rs.)

Milk 3,50,000 8,750

Dairy 1,20,000 12,000

Ice Cream 80,000 16,800

Others 40,000 5,000

Total 5,90,000 42,550

Cost Head Cost (in Rs.)

Electricity 4,000

Rent 4,000

Salary 12,000

Others 2,000

Total 22,000

Net Income: Rs. 20,550 per month

 APOs Sale complete range

Range Selling:

APOs sale complete range of Amul Products. Which leads to higher turnover of
WDs.
 APOs No Effect of Seasonality

Seasonality:
Sales of Amul Parlours is independent of seasonality factor.

(2case studies, for example)

When Beverages sales dipped 54% in the general trade, the dip in APO sales is only
35%.

When ice creams sales dipped 58% in General trade, the dip in APO sales is only
48%.

Sales Trend Beverage Range

 Sales Trend - Ice-cream

APOs in prominent places of Delhi

 APO- Cantonment
Basntar Line, Delhi Cantt

St. Stephen Hospital, Tis Hazari

 APO- Education
IP University, Delhi
Investment

Security Deposit: Rs. 25,000/-

Cost of construction: Rs 2.00 Lakh

Cost on Equipment: Rs. 75,000

Working Capital: Rs. 50,000

Total Investment: Rs. 3.5 Lakh

 COMPANY PROFILE CHAPTER 2

2.1 Gujarat Cooperative Milk Marketing Federation Ltd

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest

food product marketing organization with annual turnover (2016-17) US$ 4.1 billion.
Its daily milk procurement is approx. 18 million lit per day from 18,700 village
milk cooperative societies, 18 member unions covering 33 districts, and 3.6
million milk producer members.
It is the Apex organization of the Dairy Cooperatives of Gujarat, popularly known
as 'AMUL, 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. Its success has not only been emulated in India but serves as a model for
rest of the World. It is exclusive marketing organization
of 'Amul' and 'Sagar' branded products. It operates through 56 Sales Offices and
has a dealer network of 10000 dealers and 10 lakh retailers, one of the largest such
networks in India. Its product range comprises milk, milk powder, health beverages,
ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional
Indian sweets, etc.
GCMMF is India's largest exporter of Dairy Products. It has been accorded a
"Trading House status. Many of our products are available in USA, Gulf Countries,
Singapore, The Philippines, Japan, China and Australia. GCMMF has received the
APEDA Award from Government of India for Excellence in Dairy Product Exports for
the last 16 years. For the year 2009-10, GCMMF has been awarded "Golden
Trophy" for its outstanding export performance and contribution in dairy products
sector by APEDA. In 2013-14, GCMMF took giant strides in expanding its presence
in International markets. Amuls presence on Global Dairy Trade (GDT) platform in
which only the top six dairy players of the world sell their products, has earned
respect and recognition across the world. By selling milk powders on GDT, GCMMF
could not only realize better prices as per market demand but it also firmly
established Amul in the league of top dairy players in world trade.
For its consistent adherence to quality, customer focus and dependability, GCMMF
has received numerous awards and accolades over the years. It received the Rajiv
Gandhi National Quality Award in1999 in Best of All Category. In 2002 GCMMF
bagged India's Most Respected Company Award instituted by Business World. In
2003, it was awarded the IMC Ramakrishna Bajaj National Quality Award - 2003 -
certificate of merit- for adopting noteworthy quality management practices for
logistics and procurement. GCMMF is the first and only Indian organization to win
topmost International Dairy Federation Marketing Award for probiotic ice cream
launch in 2007. For the innovations, GCMMF has received AIMA-RK Swamy High
Performance brand award 2013 and CNN-IBN Innovating for better tomorrow award
in 2014. World Dairy Innovation Awards- 2014 for Best Marketing Campaign - "Eat
Milk with Every Meal". For the tree plantation activity GCMMF has received seven
consecutive Good Green Governance award from Srishti during 2007 to 2013.

The Amul brand is not only a product, but also a movement. It is in one way, the
representation of the economic freedom of farmers. It has given farmers the courage
to dream. To hope. To live.

GCMMF - An Overview

Year of Establishment 1973

Members 18 District Cooperative Milk Producers' Unions

No. of Producer Members 3.6 Million

No. of Village Societies 18,700

Total Milk handling capacity per day 30 Million liters per day

Milk Collection (Total - 2016-17) 6.57 billion liters

Milk collection (Daily Average 2016-17) 18.0 million liters

Cattle feed manufacturing Capacity 7800 Mts. per day

Sales Turnover -(2016-17) Rs. 27085 Crores (US $ 4.1 Billion)

OurMemberUnions

1. Kaira District Cooperative Milk Producers' Union Ltd., Anand

2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar
4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur
5. Surat District Cooperative Milk Producers' Union Ltd., Surat
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara
7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
10.Ahmedabad District Cooperative Milk Producers' Union Ltd. Ahmedabad
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers Union Ltd., Gandhinagar
13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar
14. Amreli District Cooperative Milk Producers Union Ltd., Amreli
15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar
16. Kutch District Cooperative Milk Producers' Union Ltd., Anjar
17. Junagadh District Cooperative Milk Producers' Union Limited, Junagadh
18. Porbandar District Cooperative Milk Producers Union Ltd, Porbandar
ABOUT AMUL

The Birth of Amul

It all began when milk became a symbol of protest

Founded in 1946 to stop the exploitation by middlemen
Inspired by the freedom movement

The seeds of this unusual saga were sown more than 65 years back in Anand, a
small town in the state of Gujarat in western India. The exploitative trade practices
followed by the local trade cartel triggered off the cooperative movement. Angered
by unfair and manipulative practices followed by the trade, the farmers of the district
approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. He
advised them to get rid of middlemen and form their own co-operative, which would
have procurement, processing and marketing under their control.

In 1946, the farmers of this area went on a milk strike refusing to be cowed down by
the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like
Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in 1946.

This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began
with just two village dairy co-operative societies and 247 liters of milk and is today
better known as Amul Dairy. Amul grew from strength to strength thanks to the
inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed
professionalism of Dr. Verghese Kurien, who was entrusted the task of running the
dairy from 1950.

The then Prime Minister of India, Lal Bahadur Shastri decided that the same
approach should become the basis of a National Dairy Development policy. He
understood that the success of Amul could be attributed to four important factors.
The farmers owned the dairy, their elected representatives managed the village
societies and the district union, they employed professionals to operate the dairy and
manage its business. Most importantly, the co-operatives were sensitive to the
needs of farmers and responsive to their demands.
At his instance in 1965 the National Dairy Development Board was set up with the
basic objective of replicating the Amul model. Dr. Kurien was chosen to head the
institution as its Chairman and asked to replicate this model throughout the country.
2.3 SALES TURNOVER

Sales Turnover Rs (million) US$ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504

2009-10 80053 1700

2010-11 97742 2172

2011-12 116680 2500

2012-13 137350 2540

2013-14 181434 3024

2014-15 207330 3410

2015-16 229720 3500

2016-17 270850 4100

BRAND ELEMENT :
1. Brand Name: Amul is the acronym of Anand Milk Union Limited.
2. The Logo:

3. The Tagline / Slogan: The taste of India

4. The Jingle: Utterly, butterly, delicious..Amul.

5. The Character / Mascot: The Amul moppet has been the mascot of Amul
since 1967, sporting a young girl in red polka dot frock with 'utterly butterly
delicious jingle.

6. The URL: www.amul.com

2.7 ACHIEVEMENTS

BML Munjal Award 2017

Champions of Excellence Award for brand Amul

Amul received ET Iconic Brand Award

CFBP Jamnalal Bajaj Award

Forbes India Leadership Awards 2015

Development Leadership Award 2015

GCMMF received Bronze Trophy at the Indian Marketing Awards 2014

GCMMF Finalist in World Beverage Innovation Awards - 2014

GCMMF received APEDA Awards for 16 years continuously

Amul wins World Dairy Innovation Awards - 2014

Amul receives Srishti Good Green Governance award for the year 2013
 GCMMF Receives Prestigious CNN-IBN Innovating for a Better Tomorrow
Award

Amul wins AIMA High Performance Brand Award-2013 for brand Amul

Shri R S Sodhi, MD-GCMMF, receives prestigious QIMPRO GOLD

STANDARD Quality Award 2013

GCMMF wins the SAP Award for Customer Excellence (SAPACE) 2013
under the category of "Best Run Award in Finance"

ET-Corporate Citizen Award of the Year 2010-11 to GCMMF

Amul receives Green Globe Foundation Award

Dr. V.Kurien honoured with Life Time Achievement Award

GCMMF receives Srishti's G-Cube Award - 2010

Amul Bags International Dairy Federation Award

Amul Bags Srishti G-cube Award For Good Green Governance - 2009

Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit

Ramkrishna Bajaj National Quality Award - 2003

Qimpro Gold Standard Award - 2003

2.6 AMUL RELIEF TRUST

A devastating earthquake (Richter scale 7.9) hit Gujarat on 26th January 2001.
The epicentre of the quake was located in Kutch district. It caused death of
thousands of people, tens of thousands were injured, hundreds of thousands were
rendered homeless and damage of billions of Rupees was done.

GCMMF formed a specific organization named "Amul Relief Trust" (ART) under
the Chairmanship of Dr. V. Kurien in 2001 with a donation of Rs. 50 Million for
reconstruction of the school buildings damaged in the 2001 earthquake in the Kutch
area.

The Trust reconstructed 6 schools damaged by the above earthquake at a cost of

Rs. 41.1 million in Kutch area. Four of these schools started re-functioning from the
last two academic sessions and the other two schools from the current session.
2.7 TREE PLANTATION

GREEN GUJARAT TREE PLANTATION CAMPAIGN BY MILK PRODUCERS OF

DAIRYCOOPERATIVES

Amul Coops plant more than 619.7 lakhs trees

Milk Producer members of Gujarat Dairy Cooperatives- better known as AMUL have
been celebrating the nation's Independence Day in a novel manner by planting lakhs
of saplings across Gujarat and have taken up an ambitious plan to save the
environment by planting trees, making India green and thereby reducing the effects
of global warming. The milk producers of Gujarat Dairy Cooperatives are conducting
mass tree plantation drive every year on Independence Day for last nine years. In
last ten years (2007 to 2016) the milk producers have planted around 619.7 lakhs
trees). The most striking feature of these entire programmes was that it has been
initiated by milk producer members of the dairy cooperatives. The unique fact about
the programme was that the milk producer members took up the oath to protect tree
saplings till it survives and grows into tree.

Over the years, due to intensive agriculture and dairying various natural resources
are getting consumed at faster pace in Gujarat state of India. The state level apex
body of dairy farmers in Gujarat gave a serious thought in this direction and
discovered a novel idea for giving back to nature. The idea was "one member one
tree" plantation on our 60th Independence Day - 15th August 2007.To put this idea in
to the practice a design team constituting of representatives of member unions were
formed. The team accepted the idea by heart and immediately decided to spread it
among farmer members of village dairy cooperative societies. Then the idea was
communicated to farmer members and they all welcomed it and enthusiastically
agreed to implement the idea.

For smooth implementation of the idea, the design team chalked out the road map
for various activities. Execution teams were formed at district union level to give final
shape and put the plan in action. Village level coordinators were identified and they
were trained to streamline activity of tree plantation. Various awareness materials
were prepared. Through various communication media farmer members were made
aware of benefits of tree plantation and tree plantation activity schedule.

The entire plantation activity was coordinated at all the three tiers of Anand pattern -
at village, district and state level dairy cooperatives. On 15th August, 2007, after the
flag hoisting ceremony, each member took an oath to plant saplings and ensure that
they grew in to trees. Then individually they planted sapling on their own at their
identified locations like their farm, near their home, on Farm bunds, etc. They have
taken necessary care to ensure that this sapling survives and they also reported
regarding the survival to village level coordinator and district milk unions after five
months. In this way, 18.9 lakh trees were planted on 15th August 2007. This was just
the beginning. Henceforth, the Village Dairy Cooperative Societies of Gujarat as a
mark of respect for our nation decided to conduct such event on every Independence
Day and accepted 15th August (Independence Day) as a "Green Revolution Day
by Afforestation to Protect Mother Earth from Pollution, Climate change and
Global Warming.
2.8 PRODUCT

A product is anything that can be offered to a market for attention, acquisition,

use, or consumption that might satisfy a want or need
A product is anything that satisfies a need or wants and can be offered in the
exchange. A product can be goods, service or idea. Without product, there is no
marketing. This includes product variety, quality, product design, and brand name,
sizes, warranties. AMUL produces and sell the product i.e. milk; it has to plan its
product very carefully so that the consumer gets only good quality products.
LIST OF AMUL PRODUCTS
Amul Milk

Bread Spreads
 Cheese

UHT Milk

Beverage Range

Amul PRO
 Ice Cream

Paneer

Dahi

Ghee
 Milk Powders

Mithai Range

Mithai Mate

Chocolates
 Lactose Free Milk

Fresh Cream

Amul Sour Cream

2.11 PRODUCT STRATEGIES

Product

Create awareness about its different brands thereby enabling the customer to
differentiate between its various brands.

Copy-write the packaging design to preserve the distinguishing identity barring

competitors from imitating the same.

Introduction of larger volume pouches in line with economy packs to provide

large scale buyers price benefits.

Different shaped pouches for its products for easy identification, e.g. Square
shaped pouch for AmulTazaa, rectangular shaped for Amul Gold, etc.

Place

Place refers to marketing activities that make products available to consumers at the
right time in a convenient location. It is the process of moving products from the
producer to the consumer, which may involve several steps and the participation of
multiple. AMUL has developed federation and AMUL parlors located in several parts
of country. The GCMMF handles the works relating to managing of stocks and
distributors in country. Thus, GCMMF look after the disbursement of product to the
various marketing channels.

Price

It is the value, usually in monetary terms that sellers ask for in exchange for the
products they are offering. Pricing and product image are closely related. Customers
will pay a higher price for well known, well regarded products, partly because of
the image created through advertising and other promotions. This includes list price,
discount, allowance, and credit terms. The prices of products of AMUL are also decided by the
GCMMF. The GCMMF conducts the market survey to check the validity and
feasibility of prices in the market and accordingly decides the prices of AMUL
products. However, the price is inclusive of several elements like, Cost of milk
Labor cost.
Processing cost.
Packaging cost
Advertising cost
Transportation cost
Sales promotion costs.
Taxes etc.
The GCMMF considers all these cost aspects and set them up in pricing structure to
decide the selling price of milk and milk products.

Promotion

Place refers to marketing activities used to communicate positive, information about

an organization, its products and activities to directly or indirectly expedite
exchanges in target market. It includes a variety of techniques including
advertisement, sale promotion, public relation and personal selling that are used to
communicate with customers and potential customers. AMUL promotes its products
through newspaper, T.V.; hoarding etc. television is the best media for advertising.
The GCMMF however uses hoarding for advertising in local areas. Hoarding
designed on the creative basis attract the customer more.
2.12 AMUL PRODUCT MIX

Amul Product Portfolio

Amul mainly produces dairy product which falls under nondurable goods category
but also produces durable goods
Examples Durable Goods: -
Milk Powders, Ready to Serve Soups Non-Durable Goods: - Fresh Milk, Cheese
Range & Ice creams
Product-Width
The width of a product mix refers to the total number of items in the mix.
Example:
The total number of items are 8. ( bread spreads , cheese , desert, cooking, health
drink, milk drinks, powder milk & fresh milk.

Product-length
The length of a product mix refers to the total number of items in the mix.
Example:
The total Length of Amuls Product mix is 42.
The Total width of Amuls Product mix is 8 (No of lines) Hence the average product
length is (Total Length / Number of lines) = 44/8 is less than 6

Product Depth
The depth of a product mix refers to how many variants are offered of each product
in the line.

Line stretching
Every companys product line covers a certain part of the total possible range. Line
stretching occurs when a company lengthens its product line beyond its current
range. The company can stretch its line down market, up-market or both ways.
Example:
Amul is now aggressively adopting the down market stretch by introducing
(CHHOTA AMUL, Priced at Rs. 5 to take advantage of the Bottom of the Pyramid
i.e. to individual of low income group.)

Amul has been introducing products with consistent value addition but never left the
core philosophy of Providing milk at a basic, affordable price.
2.13 MARKET POSITION OF AMUL

Amul has some good competitors who have entered the market in the last decade
and growing strong steadily. Most of these ice creams entered regionally but then
held on to the regional market share. Thus, even though individually these brands
might not be a worthy adversary, combined and with their total net aggregate, all of
them together are giving a very tough competition to Amul.

Some of these competitors are Kwality walls, Vadilal, Havmore, Dinshaws, Arun Ice
cream, Baskin Robbins, London dairy and others. Many of these ice cream products
have their own niche or geographic targets. Arun ice cream is strong in the south
whereas havmor and Vadilal are strong in the west.

Besides these organized players, there are many unorganised local players who also
give competition to Amul by having their own outlets and their own variants of ice
cream. However, the competition in Butter and Cheese and other dairy products is
far lesser.
2.14 COMPETITIVE ADVANTAGE OF AMUL

There are two major competitive advantages of Amul over other brands. First and
foremost is the supply chain. Because of the large numbers of dairy suppliers, Amul
has a tremendous strength and reliability in its supply chain. Hence it is able to
produce such high volumes. The second competitive advantage is the wide product
portfolio due to which it can run Amul Shoppes and also have its products present in
retail. The product portfolio is such that products like Butter and Ice cream are cash
cows for the company.

2.15 FUTURE PLANS OF AMUL

Amul plans setting up processing unit in Northeast.

Amul: Rs 3,000 cr to be invested over four years on expansion.

Gujarat Co-operative Milk Marketing Federation (GCMMF) is planning to set

up of new plants and add capacity to existing facilities.

The cooperative is also planning to enter states like Bihar, Jharkhand, Odisha,
Kerala and North-East to expand business, its managing director R S Sodhi
said.

Amul entering into frozen snacks market.

AMUL FROZEN SNACKS

Indian Frozen food market is estimated around 2000 Cr per annum

Indian frozen food are mainly categorized in

1.Frozen fruits and vegetables

2.Frozen Snacks

3.Frozen meats

4.Frozen full meal options

Frozen veg. and snacks are the largest category consisting more than 65%
market share and growing by 35% in last 4 years.
Major selling comes from organized retail chains like Reliance , D mart , Metro
, Wal-Mart.
Hyper city, Food Bazaar etc
Export sale has also very significant contribution in total sale (around 25 to 30
%)
 Despite promising growth in this category penetration is still at a nascent
stage.

Amul Happy Treat Range

Cheese Onion Paratha

Masala Paneer nuggets
Masti Dahi tikki
Cheese Onion samosa pockets
Cheese poppons
Amul SWOT Analysis

1. Amul has a high brand equity and top of the mind

brand recall

2. Strong network of over 3 million milk producers are

associated with Amul

3. It is the worlds largest manufacturer of pouched milk

4. Indias largest food brand:Amul is trusted for its quality

5. Number of popular milk products are offered like ice

cream, ghee, butter, paneer, dahi, milk, etc.

6. Products available at affordable prices

7. In India, It is a market leader in butter segment

8. Amul is responsible for white revolution in India

9. Successful advertising and marketing campaigns has

enhanced the brand presence.

10. Strong network of retail outlets, stalls and parlours

Strengths 11.A popular mascot in the Amul girl

1.Low market share in chocolates segment for Amul

2.Strong competition from international & domestic

players in the ice cream segment means limited market
Weaknesses share

1. Amul can introduce new products in the chocolate

segment

2.To tap the untapped market, It can increase its reach in

rural markets

Opportunities 3.Rise in purchasing power of Indian people

 4. Amul can tieup with hotels, resorts, restaurants etc

1.Strong competition from international players can

reduce the market share of Amul
Threats 2.Economic slowdown and inflation can affect business

Competition

1.Britannia Industries
2.Nestle Ltd
3.Mother Dairy
Competitors 4.Local dairies

2.17 MAJOR COMPETITORS

Britannia Industries Limited (A WADIA Enterprise) is an Indian food-products

corporation based in Bangalore, India. It sells its Britannia and Tiger brands of biscuit
throughout India. Britannia has an estimated market share of 38%.

The Company's principal activity is the manufacture and sale of biscuits, bread, rusk,
cakes and dairy products.

Product Range

Bakery products, including biscuits, bread, cakes and rusk, and dairy products,
including milk, butter, cheese, ghee and dahi
Nestl is a Swiss transnational food and drink company headquartered
in Vevey, Vaud, Switzerland. It has been the largest food company in the world,
measured by revenues and other metrics, for 2014, 2015, and 2016.It ranked No. 72
on the Fortune Global 500 in 2014 and No. 33 on the 2016 edition of the Forbes
Global 2000 list of largest public companies.

Nestl's products include baby food, medical food, bottled water, breakfast cereals,
coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and
snacks. Twenty-nine of

Nestl'sbrandshaveannualsalesofover CHF1 billion(about US$1.1 billion), including

Nespresso, Nescaf, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. Nestl
has 447 factories, operates in 194 countries, and employs around 339,000 people. It
is one of the main shareholders of L'Oreal, the world's largest cosmetics company.
Mother Dairy Fruit & Vegetable Pvt Ltd is an Indian company that manufactures,
markets and sells milk, milk products and other edible products. Its milk products
include cultured products, ice cream, paneer and ghee under the Mother Dairy
brand. The company also sells edible oils, fresh fruits and vegetables, frozen
vegetables, and processed food like fruit juices, jams, pickles etc. Mother Dairy was
founded in 1974, as a wholly owned subsidiary of the National Dairy Development
Board (NDDB).

Kwality Ltd. (Kwality) was incorporated in 1992 as Kwality Dairy (India) Ltd.
The company was set up as a backward integration unit of Kwality Ice Creams
India Ltd and was acquired by Dhingra Family in 2002. Kwality is one of the
fastest growing private sector dairy companies with a new range of innovative
products and enjoys a large presence in Northern India.
Processing facilities
Kwality has various milk processing plants with a capacity to handle around 3
million litres of milk per day. Currently, Kwality has six manufacturing units
located at Palwal (Haryana), Bulandsahar (UP), Saharanpur (UP), Jarar (UP),
Sitapur (UP), and Ajmer (Rajasthan). Further, Kwality has an extensive
network of milk chilling centres situated across Rajasthan, UP, Punjab, and
Haryana for direct collection of milk from milk producers.
RESEARCH METHODOLOGY CHAPTER 3

Research methodology is the way to systematically solve the problem. In it we study

the various steps that are generally adopted by a researcher in studying his research
problem along with the logic behind them. Thus, When we talk about research
methodology we not only talk of the research methods but also consider the logic
behind the methods we used in the context of our research study and explain why
we are using a particular method or technique and why we are not using others so
that research results are capable of being evaluated either by the researcher himself
or by others.

3.1 OBJECTIVE OF THE STUDY

Identify new avenues for APOs in Delhi keeping in mind center of

excellence(CoE) PLACES.
Devise strategies to start new APOs in CoEs.
Propose advantage of having Amul Milk booth in CoE to concerned authority.
Identify the GAP to increase sales of Amul products in existing operational
APOs.
To collect information of Milk booth/retail shop operational in CoEs.
SWOT analysis for APO vis--vis its competitor Mother Dairy.

3.2 RESEARCH DESIGN

The study was conducted in NORTH area of Delhi, i.e Pitampura, rohini sec -
8,9,13,14,15,18

3.3 PRIMARY DATA

The primary data consists of information obtained from Different societies and their
residents.
3.4 SECONDARY DATA

The secondary data is obtained from the information already published in newspaper
articles, blogs and books. The websites like amul.com, scribd. Com, wikipedia.com
etc were also useful.

3.5 METHOD OF DATA COLLECTION

The source of the data collected for the research is both primary data and secondary
data

Primary Data:

By Observation Method:

This data was collected by visiting the societies in north Delhi.

The data was collected on the following parameters:

Potential area
Less availability of Amul products nearby.
Consumer demand.

By Personal Interviews:

The data was collected by visiting each and every society where there is potential to
set up Amul APO for consumer needs.in order to setup APO within the societies we
took permission from the RWA association of each society and from there we started
legal procedures to setup the APO.

3.6 LIMITATION

The research was carried out for 2 months which proved to the insufficient to
tap the accuracy of the study.
Time factor has been a very big limitation in the research like this.
As we were attending as summer trainees, few socities were not even ready
to talk. Few socities asked for visiting cards or any other identity card that
identifies myself as an actual person from Amul, who is worth spending time
talking about business as they are used to with other persons from Amul.
 Sometimes the problem which I face is non-cooperative behaviour
of socities.
ANALYSIS AND FINDINGS CHAPTER 4

Areas covered
Pitampura
Pitampura village
Rohini sec 7
Rohini sec 9
Rohini sec 10
Rohini sec 13
Rohini sec 14
Rohini sec 15
Rohini sec 18
CONCLUSION & RECOMMENDATIONS CHAPTER 5

5.1 CONCLUSION

I have studied and analysed the potential market for Amul APOs on different
aspects of the markets, outlets, distribution and consumers.

The 2 months of summer internship with Amul actually helped me to learn various
thing that would really be helpful in my life for future growth.

This project shows me the way to work in the market. How to communicate with
different type of people. How to convince one for better job. Learnt how to sell your
plan/idea, how things work in Fast moving Consumer goods. having perishable
nature of these product one need an excellent distribution network and carefully
select market because these products if transferred to far area then cost attached to
the product will make it un competitive.

According to me the growth of any product whether it could be food based product or
anything depends upon how we do proper branding of that product and also the
promotion which plays a very vital role in attracting customers.

The main goal should be to attract customer and to retain them so that the loyalty
maintains in future as well.

Besides this Quality is the dominating aspect which influences consumer to

purchase Amul product, but prompt availability of other brands and aggressive
promotional activities by others influences the consumer towards them and also
leads to increase sales.

Ultimately, I must say that I am privileged to work in the company like GCMMF brand
Amul and get such a real-time exposure of FMCG company.
5.2 PROBLEMS FACED

Lack of space (space is used for parking etc).

Liquid milk supplied by mother dairy an Amul milk is available in pouches and
not in liquid form.
Existence of Mother Dairy booths in society.
Local milk sellers/doodhwallas supplying milk in society.
Local markets/Mother Dairy outside or very close to society.
Concerned person not available.
Rental problems (Amul pays less rent).
Societies asking for very high amount of security deposits.
Departmental stores existing in some society.
No proper follow up and negotiation done by Amul in past with societies.
Legal problems (permission from MCD/DDA).
No support from society (Mostly interested in getting rent and products at
reasonable prices).
Improper supply of Amul products in existing APO in society.
Location Problems.
Societies not permitting any outsider franchisee to operate within the society.

5.3 RECOMMENDATIONS

Instead of standing APO there should be a MOVING VAN of AMUL

Initiating Home Delivery service for flats in societies.
Focusing on quality control of Amul products.
Should focus more on packaging.
If possible increasing the amount of rent where the potential is very high.
Allowing payments through e wallets, pay tm etc.
Setting up or deployment of Amul vending machines.
Amul Guaranteeing safety and tidiness of APO in societies.
 Designing campaign like Healthy INDIA Amul INDIA for encouraging APO in
societies.
Initial free sample offer of new products.
Implementing and Designing APO according to festive themes during festive
seasons.
During Festive seasons focusing more on Amul Ghee and other products for
making sweets etc.
Providing products at special prices at APO.
Regular inspection of APO to ensure hygiene and cleanliness.
Check of the Franchisee assigned for APO and staff appointed by the
franchisee.
Helping the franchisee in getting required certificated and clearances etc.
Taking regular feedbacks from society members for improvements in future.

REFERENCES

https://www.ibef.org/industry/indian-consumer-market/infographic accessed
on 2nd May 2017
http://economictimes.indiatimes.com/news/industry/cons-
products/fmcg/indias-fmcg-sector-to-reach-104-bn-by-2020-
study/articleshow/54697324.cms accessed on 2nd May 2017
http://www.amul.com/m/amul-topical-story accessed on 2nd May 2017
http://www.amul.com/m/about-us accessed on 2nd May 2017
http://www.amul.com/m/organisation accessed on 2nd May 2017
http://www.amul.com/m/brands accessed on 2nd May 2017
http://www.amul.com/m/news-and-media accessed on 2nd May 2017
http://www.amul.com/m/amul-relief-trust accessed on 2nd May 2017
http://www.amul.com/m/tree-plantation accessed on 2nd May 2017
http://www.amul.com/files/pdf/GCMMF_Press-Release-for-Annual-General-
Meeting-on-15th-June-2017.pdf accessed on 20th June 2017
http://www.amul.com/products/gallery.php accessed on 20th June 2017
 Documents regarding AMUL and Amul preferred outlet were provided by the
mentor in the form of ppt, excel sheet and word documents and they were: