a final project report prashant

8/6/2019 A Final Project Report Prashant

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A Project Report

On

Study on the Penetration of Amul flavour milk in the retail outlets

of Pune

In partial fulfillment of the award of

APGP-BM (2008-2010)

Internal Mentor Submitted by

Adj.Prof. S. Venkat Prashant Maheshwari

SoMT, I2IT (PGM08080889)

International Institute of Information Technology

P-14, Rajiv Gandhi InfoTech Park, Hinjewadi, Pune-411057, India

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Certificate

This is to certify that Mr. Prashant Maheshwari of August 2008 batch has satisfactorily

completed the study entitled, Study on the Penetration of Amul flavour milk in the

retail outlets of Pune in partial fulfilment of the requirements for the award of

Advanced Post Graduate Program In Business Management of this Institute.

Name/s and Signature/s

of the Guide/s

Name and Signature of Internal Guide

The HOD

Name and Signature of External Guide

The Dean

Date:

Place: Pune. Seal of the Institute

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DECLARATION

I Mr. Prashant Maheshwari hereby declare that this report is the record of authentic

work carried out by me during the academic year 2008-2010 in GUJARAT CO-

OPERATIVE MILK MARKETING FEDERATION LIMITED AMUL INDIA. The

Company has been located in Anand, Gujarat.

Prashant Maheshwari

Sign:

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PREFACE

The APGP-BM programme is well structured and integrated course of business studies.

The main objective of practical training at APGP-BM level is to develop skill in student

by supplement to the theoretical study of business management in general. Industrial

training helps to gain real life knowledge about the industrial environment and business

practices. The APGP-BM programme provides student with a fundamental knowledge

of business and organizational functions and activities, as well as an exposure

to strategic thinking of management.

In every professional course, training is an important factor. Professors give us

theoretical knowledge of various subjects in the college but we are practically exposed ofsuch subjects when we get the training in the organization. It is only the training through

which I come to know that what an industry is and how it works. I can learn about

various departmental operations being performed in the industry, which would, in

return, help me in the future when I will enter the practical field.

Training is an integral part of APGP-BM and each and every student has to undergo the

training for 2 months in a company and then prepare a project report on the same

after the completion of training.

During this whole training I got a lot of experience and came to know about the

management practices in real that how it differs from those of theoretical knowledge and

the practically in the real life.

In todays globalize world, where cutthroat competition is prevailing in the market,

theoretical knowledge is not sufficient. Beside this one need to have practical

knowledge, which would help an individual in his/her carrier activities and it

is true that Experience is best teacher.

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ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for Gujarat Co-

operative Milk Marketing Federation Ltd. Wagholi, Pune. It has been an enriching

experience for me to undergo my summer training at AMUL, which would not have

possible without the goodwill and support of the people around.

As a student of INTERNATIONAL INSTITUTE OF INFORMATION TECHNOLOGY,

I would like to express my sincere thanks to all those who helped me during my

practical training program. Words are insufficient to express my gratitude towards Mrs.

Richie Agarwal Sr. Sales Executive of AMUL, who helped me at every step whenever

needed. I would also like to give my heartily thanks to Mr. Arindam ChatterjeeAsst.Manager (Sales).

As we know research work needs hard work, keen insight and long patience with scholarly

vision based on content operation hence it becomes a humble duty to express my sincere

gratitude to all my faculty members for the proper guidance and assistance

extended by them. I am also grateful to my parents, friends, to encourage & giving me

moral support. However, I accept the sole responsibility for any possible error of omission

and would be extremely grateful to the readers of this project report if they bring

such mistakes to my notice.

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EXECUTIVE SUMMARY

The data base of retailers across the city of Pune was compiled on the basis of listing

criteria such as geographic criteria, presence of outlets in the given surveyed areas,

stocking of snack food categories as well as categorization on the basis of SKUs stock

such as Bakery shops, Sweets shop, General store, Convenience store, Departmental store.

The database was compiled using a total of 250 listings across 11 suburbs of Pune on the

basis of the listing questionnaire a total of 172 retailers were included in the final study

because only 172 retailers kept flavour milk and remaining are not interested in flavour

milk business.

A questionnaire was administered to 172 retailers over period of one month. It was

difficult to elicit a response from about 20% of the retailers. A retailer has fear to lose its

business & not provide the correct information. As a convenience most of the timeretailers visited from 2:00pm to 4:00pm because at that time retailers are free and inflow

of customers are very less.

The questionnaire was designed with the purpose of eliciting response across various

population parameters such as food stocked, presence of flavour milk, duration in the

business, awareness of flavour milk brands, current sale of flavour milk in relation to otherbrands, market freshness, distributors service, salesman visit, frequency of the salesman

visit, stocking mechanism, ordered stock supplied on time, storage condition, distributor

offer any schemes, satisfaction with distributors services, cues provided by distributors on

point of sale and point of purchasing and factors that influence the stocking decision.

The sampling method used was area sampling & convenience sampling.

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TABLE OF CONTENTS

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TOPICS PAGE NO.

List of tables 1

List of figures/charts 2

1. Industry Profile 3

2. Company Profile 5

3. Research Methodology 9

4. Data Representation & Interpretation 12

5. Findings 25

6. Recommendation 26

7. Conclusion 27

8. Bibliography 28

9. Annexure 29


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LIST OF TABLES

Page No.

Tab. 4.1 Retail outlet surveyed 12

Tab. 4.2 Retail outlet which kept flavour milk 13

Tab. 4.3 Outlets kept flavoured milk (years) 14

Tab. 4.4 Penetration of flavour milk companies in retail outlets 15

Tab. 4.5 Avg. Monthly sales (units) 16

Tab. 4.6 Salesman visit the counter 17

Tab. 4.7 Frequency of salesman visit 18

Tab. 4.8 Stock supplied on time 19

Tab. 4.9 All ordered stock supplied 20

Tab. 4.10 Distributor of any scheme 21

Tab. 4.11 Types of packs available 22

Tab. 4.12 Effectiveness of Amul distribution channel 23

Tab. 4.13 Factors affecting stocking decisions 24

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LIST OF FIGURES/ CHARTS

Page No.

Fig. 4.1 Retail outlet surveyed 12

Fig. 4.2 Retail outlet which kept flavour milk 13

Fig. 4.3 Outlets kept flavoured milk (years) 14

Fig. 4.4 Penetration of flavour milk companies in retail outlets 15

Fig. 4.5 Avg. Monthly sales (units) 16

Fig. 4.6 Salesman visit the counter 17

Fig. 4.7 Frequency of salesman visit 18

Fig. 4.8 Stock supplied on time 19

Fig. 4.9 All ordered stock supplied 20

Fig. 4.10 Distributor of any scheme 21

Fig. 4.11 Types of packs available 22

Fig. 4.12 Effectiveness of Amul distribution channel 23

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1. INDUSTRY PROFILE

1.1 FOOD INDUSTRY

In the World, India is the second largest producer of food after China. The country has

achieved the potential of being the biggest with the food and agricultural sector. Indian

Food Industry is considered to be occupying about two thirds of the total Indian retail

market. Food and food processing technologies are developing gradually. In addition to

that modern skills and equipment have taken place in industries such as Canning, Dairy

and Food Processing, Specialty Processing, Packaging, Frozen Food, Refrigeration and

Thermo Processing.

Among the sub-sectors of Indian Food Industry, fruits and vegetables industry have

achieved the second largest producer of vegetables in the world next to China and

accounts for about 15 percent of the world`s production of vegetables. Vegetables are

typically grown in India in field conditions. The current production level in the Indian

subcontinent is over 71 million MT and the total area under vegetable cultivation is around

6.2 million hectares. Vegetables such as potato, tomato, onion, cabbage and cauliflower

report for around 60 percent of the total vegetable production in the country.

Meat and poultry is one of the fastest growing segments of the agricultural sector in India

at present. In this industry, the production of eggs and broilers has been rising at a rate of 8

to 10 percent per annum. India is the fifth largest egg producer and the eighteenth largest

producer of broilers in the world. Fisheries also have gained popularity as a major Indian

Food Industry. India is the third largest producer of fish in the world. Milk and milk

products have also gained popularity. India is the largest producer of milk in the world. In

India both the production and consumption of milk and its derivatives are traditionally

high in the country. Amul is regarded to be the largest food product business in the

country.

Plantation Industry is among the prominent Indian Food Industry. There are about 9500

spices from medicinal and aromatic plants that are produced in the country. India is the

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largest producer, consumer and exporter of spices and the major spices being produced

include black pepper, cardamom, ginger, garlic, turmeric and chilli. In the Indian food

industry, the consumer product groups like confectionery, chocolates and cocoa products,

Soya-based products, mineral water, high protein foods are also on a high rise. They form

the most promising sub-sectors of Indian food industry. Beverages are also included in the

industries. Besides these, grain processing and Grain-milling has a position. In spite being

one of the major food producers in the world, India is credited for less than 1.5 per cent of

international food trade. Furthermore, the Indian food industry sales turnover is Rs

140,000 crore (1 crore = 10 million) annually as at the start of year 2000. The Indian food

industry has the highest number of plants approved by the US Food and Drug

Administration (FDA) outside the USA.

Under the food industry, Dairy product is very important part of food processing. Dairy

processing is acting good role in India.

1.2 DAIRY PROCESSING

India ranks first in the world in terms of milk production. Indian production stands at

91million 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 tonnes annually,

while the unorganized sector processes about 22 million tonnes per annum. In the

organized sector, there are 676 dairy plants in the Cooperative, Private and Governmentsectors registered with the Government of India and the state Governments.

India has a unique pattern of production, processing and marketing/consumption of milk,

which is not comparable with any large milk producing country. Approximately 70 million

rural households (primarily, small and marginal farmers and landless labourers ) in

the country are engaged in milk production. Over 11 million farmer are organized into

about 0.1 million village Dairy Cooperative Societies (DCS) (about 110 farmers per DCS).

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The cumulative milk handled by DCS across the country is about 18 million kg of milk

per day.

These cooperatives form part of a national milk grid which links the milk

producers throughout India with consumers in more than 700 towns and cities bridging

the gaps on account of seasonal and regional variations in the availability of milk.

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2. COMPANY PROFILE

2.1 ABOUT AMUL

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in

India. It is a brand name managed by an apex cooperative organisation, Gujarat

Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly

owned by some 2.79 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.

Today Amul is a symbol of many things like of the high-quality products sold

at reasonable prices, of the genesis of a vast cooperative network, of the triumph

of indigenous technology, of the marketing savvy of a farmers' organization.

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an

annual turnover of US $1504 million (2008- 09). Currently Amul has 2.79 million

producer members with milk collection average of 3.05 billion litres per day. Besides

India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,

Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to

enter Japanese market in 1994 had not succeeded, but now it has fresh plans of

flooding the Japanese markets. Other potential markets being considered include Sri

Lanka.

2.2 ABOUT GCMMF

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GCMMF is India's largest food products marketing organisation. It is a state level apex

body of milk cooperatives in Gujarat, which aims to provide remunerative returns to the

farmers and also serve the interest of consumers by providing quality products, which are

good value for money.

GCMMF markets and manages the Amul brand. From mid-1990's Amul has entered areas

not related directly to its core business. Its entry into ice cream was regarded as successful

due to the large market share it was able to capture within a short period of time -

primarily due to the price differential and the brand name. It also entered the Pizzabusiness, where the base and the recipes were made available to restaurant owners who

could price it as low as 30 rupees per pizza when the other players were charging upwards

of 100 rupees.

Members: 13 district cooperative milk producers' Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million litres per day

Milk collection (Total - 2008-09): 3.05 billion litres

Milk collection (Daily Average 2008-09): 8.4 million litres

Milk Drying Capacity: 626 Metric tonnes per day

Cattle feed manufacturing Capacity: 3500 Metric tonnes per day

Dr. Verghese Kurien, former chair man of the GCMMF, is recognised as the man behind

the success of Amul. On 10 Aug 2006 Mr. Parthi Bhatol, chairman of the Banaskantha

Union, was selected chairman of GCMMF.

2.3 PRODUCTS

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Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate,

ice cream, cream, shrikhand, paneer, gulab jamuns, flavoured milk, basundi, Nutramul

brand and others. In January 2006, Amul plans to launch India's first sports drink Stamina,

which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade.

In August 2007, Amul introduced Flavour Koko, a chocolate milk brand extending its

product offering in the milk products segment. Other Amul brands are Amul Flavour, a

low calorie thirst quenching drink, Masti Butter Milk, Flavour Cafe, ready to drink coffee

and India's first sports drink Stamina.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing

Award for 2007.

2.4 MAJOR ACHIEVEMENTS

GCMMF bags APEDA AWARD for 11th year in a row.

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

Ramakrishna Bajaj National Quality Award-2003.

Amul - The Taste of India (GCMMF) Receives International CIO 100 Award For

resourcefulness.

Rajiv Gandhi National Quality Award 1999.

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3. RESEARCH METHODOLOGY

3.1 TITLE OF THE STUDY

A study of the penetration of Amul flavour milk in the retail outlets of Pune.

3.2 OBJECTIVE OF THE RESEARCH

To find out the penetration of Amul flavour milk in the retail outlets of Pune

with reference to retailers who keeps such products.

To find out the factors that influences the stocking decision of retailers of flavour

milk beverages product in Pune.

To find out the effectiveness of distributors in their corresponding areas of Pune.

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3.3 PROBLEM STATEMENT

There has been a drop in the percentage of retail outlets in Pune where Amul

already had penetration for its beverages products, this study is intended to find out

the percentage of outlets where penetration of Amul flavoured milk beverages products

exists & doesnt exist and also to find out the factors that influence the stocking decision

of retailers of flavour milk beverages products.

3.4 SCOPE OF THE STUDY

The scope of the study is limited solely to the markets visited by the researcher for

the purpose of research, this may hence not be a total reflection of the penetration of

Amul products for all the retail outlets in Pune.

3.5 SOURCES OF DATA

3.5.1 Primary sources

The primary data was collected through questionnaires. They were filled using the

scheduled method of data collection by the researcher.

Questionnaire in the project consists of:

Multiple choice questions

Dichotomous

Rating scale

3.5.2 Secondary sources

The secondary sources were used only for collecting general information regarding

the outlets, they were however not used for analysis.

3.6RESEARCH DESIGN

A Research design specifies the methods and procedures for conducting a particular study.

It is a map (or) blue print to which the research is to be conducted. Descriptive

research design has been considered as a suitable methodology for present study and for

data analysis.

3.7 SAMPLING DESIGN

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The sampling design used was area and convenience sampling, which is a probability and

non-probability sampling method. The convenience factors were the availability and

approachability of the respondents. The area sampling involves in study of the

geographical subdivisions.

3.8 POPULATION

All types of outlets that stock and sell food products in the markets. The outlets have been

classified as follows

Bakery shops

Sweets shop

General store

Convenience store

Departmental store

3.9 PLACES OF STUDY

The study was conducted in the retail outlets in and around Pune in the following areas

J.M Road

F.C Road

Aundh

Aundh gaon

Baner

Shivaji Nagar

Khadki

S.B Road

Pashan

Pashan gaon

Pashan-Sus Road

3.10 MEASUREMENT

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The research objective requires the researcher to find out the penetration of Amul

flavour milk beverages products with reference to retailers who keep such products. For

this the following relevant data were collected

Amul product sold by the retailers

If sold, then which of the competitors complimentary products, has a higher

penetration in that outlet.

Strategies adopted by the company and distributors that influence the stocking

decision of retailers.

3.11 LIMITATIONS OF THE RESEARCH

Limited time available for interviewing the respondents . As a result of this

Sometimes I face language problem for which I tried to make them understand.

Non-cooperative approach and rude behaviour of the respondents.

Sometimes it is difficult to collect the information due to rainy season.

Sometimes retailers hesitate to give full information in fear of losing their business.

3.12 ANALYSIS TECHNIQUES

Quantitative analysis is performed using the data collected at each outlet to estimate the

presence of Amul products.

Tools Utilized

Percentage Analysis

Graph Chart

4. DATA REPRESENTATION & INTERPRETATION

4.1 Type of Outlet visited?

TypeOf outlet

BakeryShop

Sweetshop

Generalstore

Conveniencestore

Departmentalstore

Total

No. ofOutlet

46 50 86 30 38 250

Table 4.1

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The above table shows that out of 250 outlets surveyed; there were 46 bakery shops, 50

sweet shop, 86 general stores, 30 convenience stores, and 38 departmental stores.

18.40%

20%

34.40%

12%

15.20%

Bakery shop

Sweet shop

General store

Convenience store

Departmental

store

Retail outlet surveyed

Retail outlet surveyed

Figure 4.1

Of all the retail outlets surveyed, 18.4% bakery shops, 20% sweet shop, 34.4% general

stores, 12% convenience stores, and 15.2% departmental stores. This shows majority of

outlets in Pune are general stores where company can improve their penetration followed

by sweet shop and bakery shops.

4.2 Do you keep flavour milk?

Type of outletFlavour milk

TotalYes No

Bakery shop 30 16 46

Sweet shop 27 23 50

General store 66 20 86Convenience store 17 13 30

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Departmental store 32 6 38

Total 172 78 250

Table 4.2

The table above shows that out of 250 retail outlets, 172 outlets kept flavour milk.

68.80%

31.20%

Retail outlets which kept flavour milk

Yes

No

Figure 4.2

Above graph shows that majority of the outlets keep flavour milk in Pune this shows

company has lots of scope to penetrate market and improve business. In remaining 31.2%

outlets Company can use different strategy for penetration.

4.3 How long have you kept flavoured milk?

Period Less than 1yr 1yr-3yr More than 3yr Total

Outlet 53 87 32 172

Table 4.3

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The Outlets table shows that out of 172 outlets, 53 are those which are selling the product

less than 1yr, 87 are selling from 1yr-3yr and 32 are selling from more than 3yr.

Less than 1yr 1yr-3yr More than 3yr

30.80%

50.58%

18.62%

Outlets Kept flavoured milk(years)

Outlets kept flavoured milk (

years)

Figure 4.3

Overall retail outlet surveyed, 30.80% are those outlet which have this product less

than 1years, 50.58% have 1-3 years and 18.62% have more than 3 years. Most of the

retailers are in flavour milk business 1yr to 3yr this shows that demand of the flavour milk

increases from the past 2yrs.

4.4 Which companies flavour milk do you stock?

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No. of outlet kept flavour milk / Company Amul OthersBoth

(Amul &Others)

Bakery shop (30) 17 8 5

Sweet shop (27) 12 7 8General store (66) 29 23 14

Convenience store (17) 7 6 4

Departmental store (32) 19 4 9

Total (172) 84 48 40

Table 4.4

The total outlet kept flavour milk are 172, out of 172, 84 stock Amul flavour milk, 48

stock other brands (Urja, Madhur, Status, e.t.c) flavour milk and 40 stock both Amul &

other brands.

Figure 4.4

The graph defines that Amul penetrated in 48.8% outlet but 23.2% outlet where both

Amul& others local brands are presented, while no penetration in 28% outlets. This shows

Amul has the maximum penetration level as compare to other local brands but company

can improve its penetration level by acquiring the remaining 28%.

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4.5 What is avg. Monthly sale of flavour milk?

No. ofbottles&

tetrapacks(units)

400 Total

No. ofoutlets

22 45 56 26 23 172

Table 4.5

Out of total no. of outlets, 22 outlets sells less than 100 units , 45 outlets sells 100-200

units,56 outlets sells 201-300 units,26 outlets sells301-400 unit and 23 outlets sells more

than 400 units . (1box=24 units)

400

12.70%

26.16%

32.55%

15.11%

13.37%

Avg. Monthly Sales ( in units)

Avg. Monthly sales (units)

Figure 4.5

The graph defines that 12.7% of outlets sales less than 24 units weekly, 26.16% outlets

sales 24-48 units weekly, 32.55% outlets sales 49-73 units weekly, 15.11% outlets sales 74-

98 units & 13.37% outlets sales more than 98 units weekly. More number of outlets sells

good units of flavour milk.

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4.6 Distributor salesman visits the counter?

Distributor salesman visit the counter Yes No Total

No. of outlets 124 48 172

Table 4.6

Out of 172 outlets, distributor salesman visits the 124 retail outlets but not visited 48

outlets which are also in flavour milk business.

Figure 4.6

The graph shows that 72% of outlets are been visited by the distributor salesman and

where 28% are not visited. We can conclude that salesman visits majority of outlets but

still there is some scope to visit remaining 28% outlets which can improve business for

company.

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4.7 What is the frequency of salesman visits?

Frequency of

salesman visits Weekly Fortnightly Monthly TotalNo. of outlets 47 34 43 124

Table 4.7

There are124 outlets where distributor salesman visits the counter but only 47 outlets they

visited weekly, 34 outlets visited fortnightly and 43 outlets visited monthly.

Figure 4.7

The graph shows that 38% of outlets are been visited by the distributors salesman weekly,

but about 34.60% of the outlets monthly visited by the distributor salesman affect thestocking decision of retailer and market penetration.

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4.8 Stocks supplied on time?

Stocks supplied ontime

Yes No Total

No of outlets 46 78 124

Table 4.8

There are 124 outlets where the distributor supplied the stock, out of that only 46 outlets

get the stock on time, 78 outlets dont get it on time.

Figure 4.8

The graph shows that 63% of outlets dont get there stock on time and only 37% of the

outlets get there stock. Company and distributors has to work on this area where thecompany has a fear to lose market share because if the supply is not in time then it affect

stocking decision of the retailer.

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4.9 All ordered stock are supplied?

All Ordered Stocks

suppliedYes No Total


Table 4.9

There are 124 outlets where the distributor supplied the stock, out of that only 56 outlets

get the all ordered stock, 68 outlets dont get the all ordered stock it.

Figure 4.9

Most of the time distributor not able to supply all ordered stock . This shows poor

performance in distribution channel and because of this most of the retailers keep other

brand to fulfill their demand.

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4.10 Does distributor offer any scheme?

Does distributoroffer any scheme

Yes No Total


Table 4.10

Above table shows that scheme offered in more than half outlets which are good sign for

company but still there are some retailers scheme is not offered by the distributor which

can create negative image of company and force them to switch to other local brands.

58.80%

41.20%

Distributor offer any scheme

Yes

No

Figure 4.10

Only 58.8% of the retailers are getting the schemes from the distributor and rest of theretailers are not aware about the schemes. As the schemes changes periodically, thismotivates the retailers for stocking the product.

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4.11 What kind of flavoured milk packs available with you?

Type of packsavailable

Glass Bottle Tetra pack Both Total

No. of outlets 58 10 56 124

Table 4.11

There are 124 outlets where the distributor supplied the stock, in 58 outlets glass bottle

packing are available, 10 outlets tetra packs are available and in 56 outlets both packing

are available.

Figure 4.11

Above Pie chart shows that most of the retailers like to keep bottles due to high margin

and almost same number of retailers keeps both tetra pack and bottles. This means that

tetra packs are not preferred by the retailers due to low margins and high market price.

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4.12 How effective do you feel Amul distribution channel?

Effectivenessof Amul

distributionchannel

Good Average Poor Excellent Total

No. ofrespondents

18 78 74 2 172

Table 4.12

About 78 outlets owners feel that amul distribution channel is average but 74 outlets also

feel that it is poor.

Figure 4.12

Above graph shows that almost same number of retailers thinks that distribution channel is

poor and average which is bad sign for company and can be a factor for losing business

and decrease sales.

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4.13 Which factors given below influence youre stocking decision?

FactorsRanks

Rank 1 Rank 2 Rank3 Rank4 Rank5 Rank6 Rank7

ConsumerPreference

105 25 30 9 3 0 0

Packing 7 12 6 12 17 33 85

Offers 8 10 17 20 86 20 11

Promotionalactivities 10 17 3 89 18 15 20

Margins 30 7 80 21 17 16 1

Replacement 4 9 3 10 11 88 47

Distributionchannel

8 92 33 11 20 0 8

Table 4.13

By the help of Kendalls coefficient test there is an agreement among the respondents.

Consumer preference is the major factor & distribution channel, margins are other main

factors which are responsible for the stocking decision of the retailer.

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5. FINDINGS OF THE STUDY

As per the analysis the following outcome may be considered.

1. According to outlets surveyed, most of the outlet kept flavour milk but there are some

of the outlets which are not interested.

2. Amul is available in maximum outlets in the comparison of other local brands. But

from the past 1yr sales has been decreased due to increase in local brands.

3. At present there are more than 8 local brands (Urja, Madhur, Status, Dr.thakar)

available in the surveyed areas.

4. There are some outlets which kept local brands and some of outlets kept both Amul &

other brands but proportion of Amul are less than the local brands.

5. On the concern of distribution channel, most of the surveyed retailers agree that Amul

has average distribution channel.

6. Amul divide its distribution channel for different product categories. It has 4 different

distributions channels :-

Line-A( Butter, Ghee, Cheese, Chocolate, Cream, etc)

Line-B( Flavour milk, Butter milk , Lassi)

For Fresh Packaged Milk

For Ice cream

7. Line B distributor of Amul in surveyed areas are not working well.

8. Amul brand is so strong that retailer has to keep its products instead of no replacement

& low margins as compare to local brands.

9. Factors that influence the retailers stocking decision:

Consumer preference

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Distribution in supplying the products regularly

Promotional strategies

Margins

Replacement

Packaging of the product

10. There is sufficient demand in the market for Amul flavour milk but due to improper

distribution company not able to fulfil demand which results decrease in sales.

6. RECOMMENDATIONS

1. Amul has a relatively good distribution network, but still company is not able to

fullfill the daily demand of outlets . Here company should give emphasis on the regular

supply of product in outlets.

2.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.

3.Since the penetration of Amul products in all the channels is average , so the

company ought to adopt strategy like supplying free menu cards, which has the

company logo printed on them, this will not only increase the penetration of the

product in the outlets , but also improve the market sales.

4. The company give instruction to its distributors to supply all products range to the

retailers, so that the product penetration in the outlets increases in terms of percentage of

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units stocked at a time in the outlet, this would also look appealing to the customer who

would instead like to pick up the product at first glance.

5. The Company has to evaluate the performance of distributors regularly to make the

distributors channel effective.

6.Given the fact that margin offered to the retailer is not similar in the case of the

competitors product. For this fact, the company should give some other benefits to the

retailers to encourage them.

7. Company should give proper instructions to distributors about packaging, expiry date

before selling them to retailers.

8. Company should also give the replacement offer to that outlet which is running with

small business.

9. Company has to focus on 4Ps of marketing mix (Product, Place, Price, and Promotion)

in which promotion & place are two major factors where the company is lagging behind.

7. CONCLUSION

As Amul is very big organization and market leader in dairy products. It has maximum

market share in Milk, Butter and Cheese, which are its main/core products. As Amul is a

co-operative organisation but beverage industry is a profitable industry we cant ignore it.

With the help of research, company can find out its week areas and rectify mistakes to

increase its market share.

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The survey resulted into following conclusions:

As the Amul has highest market share in the flavour milk categories in comparison

to other local brands but according the previous year data Amul has around 60% of

market share solely occupied but this year it decreases to around 48%.

For all the companies distribution channel is the backbone. Amul has its good

distribution channel but from time to time company has to evaluate its distributors

to make the distribution channel effective.

Amul is lagging behind in proper use of 4Ps of marketing mix (Product, Place,

Price, and Promotion).

As Amul is the oldest brands of our country, consumer always 1st asks for the

Amul products if its not available then it shift to other brands this shows thecustomer loyalty towards the brand.

Amul is the co-operative society so its for the people (farmers), to the people

(consumers), by the people (management).

8. BIBLIOGRAPHY

1. www.amul.com

2. www.amuldairy.com

3. www.google.com

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4. www.marketresearch.com

5. www.dairy.com

6. Research Methodology (C. R. Kothari).

ANNEXURE

QUESTIONNAIRE

I am a student of APGP-BM from INTERNATIONAL INSTITUTE OF INFORMATION

TECHNOLOGY, PUNEconducting a survey on the Penetration of Amul flavour milk

in the retail outlets of Pune.

Name of Outlet....... Location of Outlet.....

1. Type of Outlet visited?

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(a) Bakery shop (b) Sweets shop (c) General store (d) Convenience store(e) Departmental store

2. Do you keep flavour milk? Y/N

3. How long have you been into flavour milk business?

(a) < 1year (b) 1-3 years (c) >3 year

4. Which company flavour milk do you stock?1. Amul 2.Others (Please mention).............. 3. Both (Amul & Others)

5. How many units of Amul flavour milk do you sell i.e. other brands weekly?(a) 98

6. Distributor salesman visits the counter? Y/N

7. What is the frequency of salesman visits?

(a) Weekly (b) Fortnightly (c) Monthly

8. Stocks supplied on time? Y/N

9. All ordered stock are supplied? Y/N

10. Does distributor offer any scheme? Y/NIf yes, what scheme? .........................................................................................

11. What kind of flavoured Milk packs available with you?(a) Glass Bottle (b) Tetra pack (c) Both

12. How effective do you feel Amul distribution channel?(a) Good (b) Average (c) Poor (d) Excellent

13.Which factors given below influence youre stocking decision? Rank the following

factors from (1 7), where 1 is the most important and 7 is the least important.1. Consumer Preference -------2. Packing -------3. Offers -------4. Promotional effectiveness -------5.

Margins -------6. Replacement -------7. Distribution channel -------

a final project report prashant

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