amul

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ACKNOWLEDGEMENT This research in it self is an acknowledge to the inspiration, drive, technical assistance contributed to it by many individuals. This research work would have never been completed without the guidance and assistance that I received from time to time during the whole research process. First of all I would like to express my heartfelt gratitude to the Gujarat Cooperative Milk Marketing Federation (GCMMF) New Delhi for providing me with the opportunity to undertake my summer project in Faridabad (Haryana). I am truly very grateful to Mr. Nitin Jain, Gujarat Cooperative Milk Marketing Federation (GCMMF) New Delhi office. I sincerely thank him for the constant cooperation, guidance and inspiration that he has given from time to time without which this project would not have been a success.

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Page 1: Amul

ACKNOWLEDGEMENT

This research in it self is an acknowledge to the inspiration, drive, technical

assistance contributed to it by many individuals. This research work would

have never been completed without the guidance and assistance that I received

from time to time during the whole research process.

First of all I would like to express my heartfelt gratitude to the Gujarat

Cooperative Milk Marketing Federation (GCMMF) New Delhi for

providing me with the opportunity to undertake my summer project in

Faridabad (Haryana).

I am truly very grateful to Mr. Nitin Jain, Gujarat Cooperative Milk

Marketing Federation (GCMMF) New Delhi office. I sincerely thank him

for the constant cooperation, guidance and inspiration that he has given

from time to time without which this project would not have been a

success.

 I am also very pleased to thank Mr. Badri Prasad and Mr. Sudhir Gupta

for all the good work done by them for me during the tenure of the project.

I would also like to convey my gratitude to Ms. Sujata Kapoor (Internal

Guide) for their constant guidance and encouragement without which it would

have been difficult to complete this project successfully and in time.

Nilesh Kumar Sharma

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Table of content

Page No.1. Company Profile 3

The brand name – Amul List of products marketed Performance of Amul in last decade The butter

2. Objective 223. Research methodology 244. Data Analysis & Data Interpretation 30

Monthly sale of butter Market share of butter brands Margin offered by butter brands

5. SWOT analysis 406. Distributor services the retailers 457. Problem faced in Amul butter 488. Product promotion offered by butter brands 539. Limitations of the study 5710. Conclusion 5911. Recommendations 6012. Annexure: 6313. Bibliography 71

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COMPANY PROFILE

AMUL AND THE COOPERATIVE MOVEMENT:

Amul embarked upon its illustrious journey as a beacon for the Indian cooperative movement in 1946. Since then, it has been undergoing a multidimensional evolution whose overarching objective has been the same throughout: serving the farmer and catering to consumer requirements.

A structural landmark in this evolution process was the formation of the GCMMF in 1974. Throughout these last 31 years, the company has demonstrated-again and again-that Amul both represents and reconciles diverse expectations and aspirations.

Gujarat Cooperative Milk Marketing Federation (GCMMF):

Gujarat Cooperative Milk Marketing Federation (GCMMF) is an India’s largest food product marketing organization. It is a state level apex body of milk cooperatives in Gujarat, which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products, which are good value for money.

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GCMMF consists of:

Members: 12 district cooperative milk producers' Union

No. of Producer Members: 2.41 million

No. of Village Societies: 11,615

Total Milk handling capacity: 7.4 million litres per day

Milk collection (Total - 2004-05):

2.08 billion litres

Milk collection (Daily Average 2004-05):

5.71 million litres

Milk Drying Capacity: 511 metric tons per day

Cattle feed manufacturing Capacity:

2340 Metric tons per day

AMUL BUTTER GIRL

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The moppet who put Amul on India's breakfast table:

Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India.

50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it. All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses.

For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So much so that the ads are now ready to enter the Guinness Book of World Records for being the longest running campaign ever. The ultimate compliment to the butter came when a British company launched a butter and called it Utterly Butterly, last year.

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The Brand Name - “AMUL”

AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages.

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Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 29 billion in 2004).

Today “Amul” is a symbol of many things: -

Of high-quality products sold at reasonable prices.

Of the genesis of a vast co-operative network.

Of the triumph of indigenous technology.

Of the marketing savvy of a farmers organization.

Of a proven model for dairy development.

MILK PROCUREMENT

Total milk procurement by Member Unions during the year 2004-05 averaged 2.08 billion litres (7.4 million litres per day). Milk collection (Daily Average 2004-05): 5.71 million litres, representing a massive growth over 51.13 lakh kilograms (5.1 million kg) per day achieved during 2003-04.

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DISTRIBUTION

Alignment of four Distribution Highways of fresh, chilled, frozen and ambient products is a major factor for the company. The company is planning to increase our Distributor Network in smaller towns. The fast changing market scenario resulting from rise in household incomes leading to metamorphosis of rural and smaller markets, significant increase of middle class families and migration from rural areas to smaller developing towns has resulted in the emergence of growing markets in smaller towns all across the country.

An addition of almost 900 distributors in small towns was undertaken on a Time Based Military (TMT) technique. This initiative has already started yielding results in the form increasing availability of products in smaller towns and thereby generating additional business.

SALES

During the year, Federation's sales registered a growth of 1.4 percent to reach Rs. 2,922.53 crores (Rs.29.22 billion) including consignment sales of Rs.1.53 crores (Rs.0.02 billion). Despite intense competition, sales value of Amul Butter grew by 4.5 percent.

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LIST OF PRODUCTS MARKETED

Bread Spreads:

Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter

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Cheese Range:

Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix Avsar Ladoos

UHT Milk Range:

Amul Shakti 3% fat Milk Amul Taaza 1.5% fat Milk Amul Gold 4.5% fat Milk

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Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy Mix

Pure Ghee:

Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months above) Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener

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Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat Amul Cow Milk

Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert) Amul Masti Dahi (fresh curd) Amul Masti Spiced Butter Milk Amul Lassee

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Amul Ice creams:

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond)

Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)

Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta)

Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)

Chocolate & Confectionery:

Amul Milk Chocolate Amul Fruit & Nut Chocolate

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Performance of Amul in last decade: -

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

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According to Mr. V. Kurien, Chairman:

“I have always been a firm believer of the dictum that 'Brand is power'. A co-operative without a "brand" can never aspire to survive let alone thrive-while marketing commodities in today's competitive environment. Only by nurturing its marketing skills and building solid brands can cooperatives make their own growing space in the market.

And we must never forget that quality and value are the foundation for successful brands. It should be a matter of both pride and satisfaction to all of us that the Amul pattern has helped various state federations in India to acquire and nurture this soft asset”.

(As said on: 31st Annual General Body Meeting on, 23rd June 05.)

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THE BUTTER

AMUL BUTTER is made from: -

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Butter Common Salt

Permitted natural color- Annatto

COMPOSITION:

Milk Fat 80% Moisture 16% Salt 2.5% Curd 0.8%

CALORIFIC VALUE:

720 kcal. /100g

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SPECIAL FEATURES:

Made from fresh cream by modern continuous butter making machines. Marketed in India since 4 decades.

PRODUCT SPECIFICATION:

Meets AGMARK standard and BIS specifications No.IS: 13690:1992

PACKAGING AND LABELLING

Primary Packaging:

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Table Butter is packed in 100 gm and 500 gm packs in vegetable parchment paper and then each pack is put into Kraft paper, with an Amul logo. Secondary Packaging:

Mono-cartoned Butter packs are put into 5 ply Kraft corrugated boxes containing 15 Kg. of net product in each box.

Labeling:

The outer cover of the butter pack consists of:-

Amul butter logo. Moppet snap. A green colored symbol (depicting a vegetarian product). Bar code. Ingredients. Manufacturing date. Expiry date (best before date). Batch number. Company address. Maximum Retail Price (M.R.P.).

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OBJECTIVE

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(1) To ascertain monthly sale of butter ,market share of butter brands & margin offered by butter brands.

(2) To do to SWOT analysis

(3) To identify the problem faced in amul butter

(4) To find out how product promotion etc.,can be used as counter measure towards competition

(5) To identify areas of improvement

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Everyone has to go through marketing research process, what I have also

adopted. For better processing let us know what market research is:

“Market research is the systematic design, collection, analysis and reporting

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of data and finding relevant to a specific marketing situation facing the

company.”

An effective marketing research involves five steps:

RESEARCH METHODOLOGY

Research Design: Descriptive research.

Target Population: Retailers of Faridabad.

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Defining the problem and research objective.

Developing the research plan.

Collecting the information.

Analyzing the information.

Present the finding.

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Sampling Technique: Census study of Faridabad market.

The sample size was divided into three categories namely: -

Category A – Who sells butter more than 30 (Kgs) a month.

Category B – Who sells butter between 15 (Kgs) to 30 (Kgs) a month.

Category C – Who sells butter less than 15 (Kgs) a month.

Sample Size: 100 retailers.

Time of Survey: The survey was conducted on weekdays between

11.00 am to 5 pm.

Survey Method: Questionnaires through personal interviews.

Data collection technique:

Primary data: Through survey questionnaires.

Secondary data: From website, magazine, periodicals.

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Questionnaire design:

Type of questions: Both Close ended and open ended.

TARGETED RETAILERS

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Category A Category B Category C

Selling more than 30Kgs Selling 15-30Kgs Selling less than 15Kgs

Category Selling butter per month (Kgs.)

Number of Shopscovered

A More than 30 kgs. 25

B Between 15 to 30 kgs. 35

C Less than 15 kgs. 40

RESEARCH PROCESS

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Individual Retailers One to One Retailers retailer opinion interaction feedback

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STARTING FOCUS MEANS ENDSPOINT

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MONTHLY SALE OF BUTTER

As per the survey done on 100 shops, following is the result depicting the monthly sale of butter in the market. The butter brand includes; Amul, Mothers Dairy, Britannia, Vita and Others (Nutralite, Delicious and Nestle).

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Following charts shows the sale of butter in a month at 100 different retail outlets in the market:

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OBSERVATION

1. Selling 2961 Kgs of butter a month as per the survey done on 100 shops, Amul butter is leading and standing high as a giant player in the market at number 1 position.

2. Mother Dairy is at number 2, selling 102 Kgs of butter a month. It is leading in milk but standing at 2nd position in butter.

3. Vita is at number 3, selling butter at low price as well as offering high profit margin to the retailers. Retailers are selling Vita butter because of good profit margin, selling 88 Kgs in a month.

4. Britannia butter is selling at a slow pace, due to unavailability at all locations it is growing at specific locations but not at every parts of the city. Britannia as a new comer in the butter market is just taking advantage of competition in the market, selling 48 Kgs of butter a month.

5. Others are showing a mixed response. The three butter brands; Nutralite, Delicious and Nestle are selling 150 Kgs of butter a month. Due to highest profit margins retailers are giving emphasis on the ‘Others category’.

(The above analysis is done on the basis of the survey done on 100 different retail shops. Thus, the sale of butter per month is based on the number of shops taken for survey.)

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MARKET SHARE OF BUTTER BRANDS

The butter market is showing a mixed response from every side, Amul is still standing as a leader in the market gaining maximum market share. The competitors in the market, showing almost same percentage, take up rest of the share.

The following chart depicts the market share of different butter brands in the market:

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OBSERVATION

1. Amul, thus making its position on the top a major butter brand in the market, takes up 82% of the market share.

2. Mother Dairy has captured 5% of the total market share in butter. It is getting a big advantage of Mother Dairy milk retail outlets/booths, which is easily available to consumers as well as a good stock, is maintained resulting into no problem in stock of butter. Thus ensuring availability of butter in Mother Dairy retail outlets/booths.

3. Others (Nutralite, Delicious and Nestle) have captured about 6% of the market share. Retailers are selling these brands due to huge profit margin on them.

4. Vita has taken 4%of the market share and has emerged as a growing butter brand in last couple of months. As it is a local brand, it is doing well and captured a good market share in comparison to other big brands like Mother Dairy and Britannia.

5. Britannia butter is not available at all places but it has shown a mixed response in different locations, it has captured 3% of the total market share.

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MARGIN OFFERED BY BUTTER BRANDS

Profit margin offered by butter brands differ from brand to brand. The local butter brands are offering more profit margins whereas; the big butter brands are stiff at their profit margins. Retailers are giving priority to the local brands because of good margins.

The following chart shows the market share of different butter brands in the market:

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OBSERVATION

1. Amul and Mother Dairy are the lowest margin offering butter brands, offering the same amount of profit margin to retailers.

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2. On an average an “Amul Butter” selling retailer gets Re. 1.10 as a profit margin on 100 gms pack. Whereas, on the sale of 500 gms pack a retailer gets a profit margin of Rs. 5.

3. Other butter brands are offering higher profit margins so; the retailers never hesitate in promoting the competitors brand to offer in front of customers.

4. Due to internal competition among retailers and butter brands it has been noticed that some retailers are selling the Amul butter below its maximum retail price (M.R.P.) creating price variations in the area.

5. The other brands category (Nutralite, Delicious and Nestle) is selling cheaper price butter and thus offering a good amount of profit to the retailers, so as to capture more and more market share of butter.

6. Vita is the second butter brand offering the highest profit margin to the retailers, thus aiming once again to capture the market share.

7. Britannia is offering a profit margin just more than Mother Dairy and Amul butter, serving itself as a mediocre butter brand in the market.

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STRENGTH

1. Brand name and Goodwill.

2. India’s major giant player in butter and other dairy products.

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3. Wide product range.

4. Qualified marketing & sales force.

5. 82% brand penetration in butter.

6. Maximum milk handling capacity (7.4 million litres) per day.

7. High-quality products sold at reasonable prices.

8. Still the market leader in butter.

WEAKNESS

1. Lack of availability of stock at various locations.

2. Lack of promotions (advertisements/offers/schemes).

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3. Weak distributors service channel to retailers (in some areas).

4. Low profit margins to retailers.

OPPORTUNITIES

1. 18% market is still to compete with.

2. Retailers look for convenience and margin.

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3. Promotions will pay good results, market is lacking with the same.

4. A great opportunity to cash the brand name once again by giving good

quality product.

5. Weak areas can be targeted to cover up the entire market as per the demand.

THREAT

1. Some customers are in the hands of retailers because the retailer enjoys

good profit margin from other competitor’s brand.

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2. Psychological state of mind of retailers and consumers.

3. Old manufacturing date on packs is a major threat in ‘Amul butter’.

4. Competitors are cutting up the market share of ‘Amul butter’.

5. Competitor brands are offering huge profit margin to retailers, whereas few

of them are selling the butter packs at lower retail prices.

6. If delivery service is not improved it will result in reduction of sales of

‘Amul butter’.

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DISTRIBUTOR SERVICES THE RETAILERS

The service offered by the distributor varies from place to place. Some areas are such that they get good delivery service but some of them are lacking by the distributors services. More than half percentage of market is getting once in a week service, whereas a big portion of market goes on its own to purchase the butter because of no distributor’s service available to retailers.

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The following chart shows the distributor services the retailers of Amul butter in the market:

OBSERVATION

1. About 54% of retailers are getting once in a week service by the distributor or the sales boy comes to them once in a week. Retailers are demanding for service, that it should be increased and should be made more than once in a week.

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2. 4% is the percentage of retailers who get service daily because of huge sale of butter. 4% of retailers are the major players in the sale of ‘Amul butter’, so they are getting good service.

3. 16% of retailers are getting twice a week service. As it is a small percentage, they are getting service as per the demand and sale of butter.

4. 4% are getting thrice a week service which states that they are selling the butter but not too much as compared to the major players selling butter getting daily service.

5. A big percent goes on its own to buy the butter from different locations. 19% of retailers are untouched by the services of distributors. This is the area where it needs big improvement.

6. A very small percentage is getting service once in 15 days. This is due to low sales or the demand of ‘Amul butter’ is low in these areas.

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PROBLEM FACED IN AMUL BUTTER

A good signal for Amul butter is that, more than half percentage of market response says that it has no problem with Amul butter. Retailers are found satisfied to certain extent but the rest portion needs improvement to stand and to beat the cut throat competition. Amul butter is facing a major problem of old manufacturing date on its packs, if this problem is not taken into consideration right now it will serve as a throat’s bone. There are areas where there is a demand of Amul butter but no supply available to the retailers.

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The following chart shows the problems faced in Amul butter by the retailers in the market:

OBSERVATION

Old manufacturing date:

Amul butter has been facing a major problem of old manufacturing date on its packs. The packs of 100 gms and 500 gms which are available in the market shows, the manufacturing date of February and March month during the month of June and August.

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Retailers complain about the response of customer for old manufacturing date. Customers are demanding for fresh butter but due to old manufacturing date in Amul butter, some of them are switching over to other brands that are supplying fresh packs for sale in the market.

Other competitor’s brands are supplying fresh packs with current month manufacturing date. Amul butter is facing such problem, which is resulting into the change of customer’s preference for butter at the point of purchase. This shifting of preferences on other brands is resulting into ignorance of Amul butter due to its manufacturing date.

None:

More than 50% of response from retailers is “No problem with Amul butter”. But, rest of the portion should not be ignored, as it is also critical.

Unavailability and delivery problem:

There is a demand of ‘Amul butter’ but due to unavailability of butter, the retailers are facing such problem.

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There are some areas where there is a demand but there is no supply available. Retailers go on their own because there is absence of delivery service and supply available.

Retailers are complaining about the unavailability of stock demanded by them. There is a limited supply of butter in respect to the current market demand.

In interior areas there is an absence of proper delivery channel and where it is available it is fulfilling the demand to a very less extent.

Replacement:

Few retailers are facing replacement problem, form (the dealers) where they purchase. They have a complaint that the dealer shows very rude behavior with them and never listen to their queries.

Salt Content:

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There is a problem of salt contents in Amul butter. Few retailers are saying that; customers are complaining about the salt contents in Amul butter that it sometimes varies in taste form pack to pack.

Low Margin:

Retailers are complaining about the profit margin offered to them on ‘Amul butter’. They are demanding for more profit margins because the other competitor brands are offering double and even more than double profit margins.

Retailers are giving more emphasis on other butter brands because of profit margins. They are trying to sell butter of other butter brands to customers to earn more profit.

Offers/Schemes:

There is a complaint of offers and schemes; few butter brands are offering some schemes on purchase of butte packs. The retailers are demanding as well as complaining about the offers, in respect to other butter brands.

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PRODUCT PROMOTION OFFERED BY BUTTER BRANDS

Only few butter brands are offering product promotions, this butter market is lacking in advertisement, schemes, offers and displays etc. Amul is offering on milk but not strictly on butter, similarly Mother Dairy and Vita are also focusing on milk, as it is the major source of earning profits. Britannia and others category is lacking in promotions here this time.

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The following chart shows the product promotion offered by butter brands in the market:

OBSERVATION

1. Amul with 55% offers various promotions and displays such as wall paintings, banners, boards and posters. It includes all displays of milk, butter, ice creams and other dairy products. But promotions and display of butter is very limited in the market.

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2. 25% is the total percentage, which Mother Dairy has in the market in respect to display and promotion. A large portion is of wall painting done at various retail outlets and at mother dairy booths. Rest is of boards and posters, which focuses on milk more than other products.

3. Vita is also offering 20% of promotions and displays on wall painting and boards but lacking in posters, illuminated signboards and danglers.

4. Britannia and Others (Nutralite, Delicious and Nestle) are doing nothing in respect to promotion and displays. Only small schemes regarding purchase of butter packs can be noticed in several areas. There is an absence of banners, wall paintings, glow signboards and posters of the same.

5. Others and Britannia are only offering high profit margins, but not offering any displays in the market to attract the customers attention. Retailers are enjoying the maximum profit margin by selling the butter of such brands.

STRATEGIC GROUP MAPPING OF DIFFERENT BRANDS

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MOTHER DAIRY

AMUL

NUTRALITE

NESTLE

VITA

BRITANNIA

High Perceived Quality

Low Price

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LIMITATIONS OF THE STUDY

It was quenching time in the shops that use to deal in and some retailers

could not give proper attention towards our queries.

Some retailers did not co-operate with us as they thought; it is just

wastage of time.

There was no way to assess the reliability of the retailers. What ever

they said had to be assumed to be truth.

Category wise search for retailers was a terrific job in the market.

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CONCLUSION1. The company should execute butter after manufacturing should reach to

the Retailers within one month.

2. The company should make policy for replacement of products.

3. The company should make new distribution that does fair dealing,

optimum Allocation of terrorIties to the distributors.

4. New avenues of advertising should be launched like glow sign boards

etc.

5. Company offer free gifts or incentives to the retailers to increase their

motivational level.

6. New appointments should be done for increasing visits at market

places.

7. Prices should be kept in comparison to competitor’s products so that the

company can earn more profit by selling large volumes.

8. In today’s scenario the credit plays an important role in business sales.

So it should do its dealing in credit also.

9. The company should go for organize retailing.

10.The company should call a meeting of retailers time to time.

11.The company should participate in social activities if possible.

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RECOMMENDATIONS

19% of the retailers go on their own to purchase the butter, due to the absence of distributor’s service and unavailability of butter. This percentage can be taken into consideration for improving the service quality as well as ensuring maximum availability of Amul butter at every possible location.

Amul is a giant player among all but it does not mean that it will always sustain to be the same. New competitors are coming in the market, thus cutting the market share of Amul butter. About 18% share of butter is captured by other butter brands; this 18% can be given priority for improvement and formulation of strategies to gain more market share of ‘Amul butter’.

Right time to go for advertisement and promotion schemes. No such major strategy is being followed by the competitor’s brand right now. The company can draw the attention of customers and can take advantage out of it.

Only milk and ice cream products are there for displays and advertisements in the market. There is an absence of ‘Amul butter’ displays, danglers, posters, illuminated boards etc. to focus on the ‘Amul butter’.

There is a great demand from retailer’s side that the company should offer greater profit margins. As the profit margin in ‘Amul butter’ is less as compared to the competitor’s brand, retailers are switching and

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giving their preference to the competitor’s brand that is offering maximum margins to them.

The old manufacturing date on packs is creating the shifting of preference in consumer’s choice. The consumer wants fresh butter and due to the old manufacturing date, the consumer opts for other butter brands.

The 100 gms butter packs are high in demand, so the company should target on these packs and should introduce some schemes on such packs like;

(a) ‘Open the wrapper offer’, in which the consumer opens the wrapper of butter packs and finds at the back the name of the prize, which after showing it to retailer could be cashed.

(b) 10% or 15% free butter on the packs as in the case of ‘Amul ice cream’ the company is offering 25% extra on the ice cream packs.

(c) ‘Make the name offer’, in which the consumer has to collect different wrappers and has to make a complete name AMUL by joining the four alphabets printed in the butter packs outer cover.

(If a little attention is given on such schemes and offers by the company, it can draw more sales and profits in the market because there are no such promotions followed by any or all of the competitor’s brand.)

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ANNEXURE

1. Name of the Area/Markets Covered:

S.No. Market/Area S.No. Market/Area1 Gudwara Road, Jawahar

Colony11 5D, 5C, 5H, 5K, 5L, 5G

N.I.T., Faridabad2 K.C. Road 12 Old Station Road

3 Air Force Station Road, Dhabua Colony

13 S.S.I. plot, Market no. 5

4 Sector – 10 14 Sector - 11

5 Sector – 7(A) 15 Market No. 5, N.I.T.

6 Subzi Mandi, Old Faridabad

16 Main Market, Old

Faridabad

7 Sector – 16 17 4 - 5 Chowk

8 Anaj Mandi, Main Market, Old Faridabad

18 28-29 Chowk, Main

Market

9 Sector – 16(A), Daulatabad

19 Parvesh Marg, Railway

Road

10 Link Road, Old Faridabad

20 Aggrasen Bazar, Old

Faridabad

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2. List of Retailers in the Faridabad Market:

Sr.No.

Name of Shop Category

1 Miglani Bakers and fast food A2 Samrat Packers A3 Dev Confectionery A4 Dhingra Bakery A5 Miglani Bakers A6 Aggrawal Consumer House A7 Sharma Conf. A8 Vita Dairy A9 Saini Milk A10 Baba Mohan Ram Consumer

StoreA

11 Shree Jee Store A12 Babe Di Hatti A13 Paradise Conf. A14 Karishma Corner A15 Shahi Kabab A16 New Ahuja Conf. A17 Bajaj Kirana Store A18 New Philko Bakery A19 Param Dairy A20 Nijhawan Agency A21 Emm Conf. A22 King Bakery A23 Deepak Dairy A24 Baba Juice & Conf. A25 Sharma Conf. A

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26 Jain Prov. Store B27 Sethi Prov. Store B28 Chanchal Prov. Str. B29 Sharma Prov. Store B30 Jain Conf. B31 Vinod Bakery B32 Gopal Jee Conf. B33 Bishan Conf. B34 Jagdamba Bakers B35 Yadav Store B36 Sunder Lal Gen. Str. B37 Makkar Conf. B38 Mangla Food Point B39 Om Conf. B40 Chopra Conf. B41 Karan Dept. Store B42 A-One Dairy B43 Deewan Prov. Store B44 R.S. Kirana Store B45 Paras Namkeen Bhandar B46 Bharat Conf. B47 Vinod Bakery B48 Happy Dairy B49 Parvesh Gen. Store B50 Sweets & Conf. B51 Jai Durgay Conf. B52 Mohan Conf. B53 Milan Conf. B54 Moji Gen. Store B55 Agarwal Kirana Str. B56 Krishna Conf. B57 Bubli Conf. B

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58 Bhatia Conf. B59 Singh Bakers B60 Pastry Point B61 Singh Conf. C62 Chawla Gen. Store C63 Tilak Tea Stall C64 Karan Conf. C65 Pooran Gen. Store C66 Mohit Traders C67 Khandelwal Gen. St. C68 J.K. Prov. Store C69 Arora Tea Stall C70 Rajeev Kirana Store C71 Maheshwari Dept. Store C72 Bhateja’s Conf. C73 T.K. Conf. C74 Dinesh Prov. Store C75 Sanjay Conf. C76 Kapoor Dept. Store C77 Espee Dept. Store C78 Suresh Chandra Str. C79 Bholay Ki Dukaan C80 Sanjeev Dept. Store C81 Seema Conf. C82 Mangla Conf. C83 Kaushik Kirana Str. C84 Monu Juice Corner C85 Vickey Gen. Store C

86 Chhabra Prov. Store C

87 Juneja Gen. Store C88 Lalit Conf. C

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89 City Bakers C90 Arora Conf. C91 Singh Conf. Store C

92 Sachin Gen. Store C

93 Manoj Conf. C94 Honey Conf. C95 Chawla Conf. C96 Shiv Prov. Store C97 Babe Di Hatti C98 Sant Conf. C99 Sonu Juice Corner C

100 Shiv Kirana Store C

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Questionnaire

Name of Shop: ______________ Phone: ____________________Address: ______________ Shop Category: ( ) A ( ) B ( ) C

1. Brand(s) available in the shop: Amul Mother Dairy Britannia Vita Others (if any) _______________

2. Sale of butter per month: (Kgs.) Amul ______ Mother Dairy ______ Britannia ______ Vita ______ Others (if any) _______________ ______

3. Offers and schemes available: (Type of Offer) Amul _____________ Mother Dairy _____________ Britannia _____________ Vita _____________ Others (if any) _____________ _____________

4. Display on the shop (Banners/Boards/Paintings etc.) (Type) Amul _____________ Mother Dairy _____________ Britannia _____________ Vita _____________ Others (if any) _____________ _____________

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5. Profit margin offered by the company: Percentage (%) Amul _____________ Mother Dairy _____________ Britannia _____________ Vita _____________ Others (if any) _____________ _____________

6. How many times the distributor services the retailer: Daily Once a week Twice a week Thrice a week Once in 15 days

7. Problem/type of complaint in Amul, if any:

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BIBLIOGRAPHY

Books:

Kotler Philip, “Marketing Management”

Kothari C.R., “Marketing Research”

Ramaswamy, “Marketing Management”

Websites:

http://www.amul.com

http://projectstoday.com/sitemap/dairy_products_database.asp

http://www.indianexpress.com/full_story.php?content_id=16478

http://www.magindia.com/manarch/news/man1659.html

`

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