HOW TO INCREASE MARKET SHARE OF AMUL ICE CREAM PRESENTED BY

LOKESHA JC M-3, Roll No.-24 Professor guide:

Geeta Shetti

Company profile- AMUL

• Established in 1946• AMUL was started out of white revolution by

Dr verghese• India’s 4th largest FMCG company• Total net worth is 12000 crores in 2011-12

Overview to GCMMFMembers

No. of producers members

13 district cooperative milk producers union

3.03 million

No. of village societies: 15,712

Total milk handling capacity: 13.67 million liters per day

Milk collection(2010-2011): 3.45 billion liters

Milk collection(daily average 2010-2011): 9.02 million liters

Milk drying capacity: 647 mtr. per day

Cattle feed manufacturing capacity:

Sales turn over(2010-2011):

3690mtr.per day

9774crores(US$ 2.2 billion)

Objectives

• Understanding of ice cream industry & AMUL’S position in the market

• To increase the sale of AMUL ice cream• Understanding the distribution line of AMUL ice cream

in mumbai• Conduct an exhaustive market research on introduction

the new flavor• To find satisfaction level of retailers with AMUL service• Study the problems at company, distributor and sales

person level

Important statistics about AMUL

• World’s largest pouched milk brand with annual turnover of US $1050 million

• Turnover of 2010-11 is 67.11billion• Owns more than 3000wholesale dealers and

500,000 retailers• Owns 30dairy plants, renowned AMUL brand

name

Literature Review Origin of the AMUL ICE CREAM

• Since its launch in 1996,AMUL ice creams have consistently combated competition like Kwality walls, Mother dairy and other brands

• The customers have shown huge faith in the AMUL ice creams & today it’s the No.1 ice cream brand of the country

• Nearly 4times large as its competitor, now it is nation’s No.1 brand

• AMUL able to write the such a successful story because of the quality of its products, economic pricing & service and the believes consumer have in the brand

• It was then launched in mumbai in 1997

Factors affecting to success of AMUL ice cream

• Price differential• Quality of products • Taste• Brand name• And many other aspects

Segments in AMUL ICE CREAM

segments

Daily consumable party packs

Market share of ice cream brands in india

SWOT analysis of AMUL ice cream

Strengths:• Biggest sourcing base for milk & milk products in india• 39% market share in the national ice cream market• Penetration pricing strategy- Amul is price warrior in the

ice cream market and currently has a very wide range to offer for all the price points

• Reputation of high quality• E-commerce, new products and process technology

Weakness

• Advertise is low profile, as the results of the survey show. Majority of the respondents have hardly seen any Ad of Amul ice cream. However kwality walls on the other hands into heavy advertising and consequently, is popular

• Shortage of stock during season• As per the survey, retailer list a credible replacement policy

as a factor very high on their wish list. They would be willing to make future investment only for that brand which offers replacement facilities, Amul has no replacement policy

• Less attractive packaging• Distribution problems

opportunities

• Internet promotions are a good means of awareness which should be tapped

• Amul can use the umbrella strategy for its new SKU’s

• It is high growth segment as the population is very increasing with never – ending demands

• Distribution coverage

Threats

• Amul is currently facing stiff competition from Havmor and may face more threat from the local manufacturers in the low priced segment ice creams.

• The customers have very well received the kwality walls product differentiation strategy and mother dairy is also pushing up its advertising strategy.

• Also the low per capita income low per capita consumption of the people is a threat to Amul

• Free entry to the markets• Even vadilal is coming up with new strategy and

promotions of various variants of ice cream

Major competitors

• Kwality walls• Mother dairy• Havmor• Vadilal• Pastonji

Research methodology

Research design:• Exploratory research: to gather preliminary

data to shed light on the real nature of the problem and suggest possible solutions/new ideas.

• As per my objective of the research, the research questions would try to find out the current situation in the market regarding the satisfaction level of the retailers and consumers in the market.

Data collection method

• Primary data- the respondents were personally interviewed with the help of a structured questionnaire

• Secondary data-collected the secondary data from the Amul sales officers, PSM’s, distributors and through short interviews and informal chats.

Tools used for research

• Questionnaire• Short interviews

Sampling plan

• Sampling unit: retailers selling ice creams and customers.

• Sample size: 100 retailers

Area of research

Geographical region Southern mumbai Western mumbai Central mumbai

Areas CST, Colaba Andheri, bandra,Goregoan

Ghatkpor, & vikroli

Analysis of retailer’s survey

• 1. Do you sell Amul ice creams?• Yes• No

Yes68%

No32%

Analysis

Contd.• 2. If yes, which categories of ice creams are preferred by consumers?• Family packs• Cups • Cones• Sticks• Others

Family Packs Cups Cones Sticks Others0

5

10

15

20

25

30

35

Analysis

Contd.

• Which is the most preferred brand of ice cream, customers like to buy?• Amul• Mother dairy• Kwality walls• Vadilal• Pastonji• Others_________

44%

11%

27%

9%

6%3%

Most Preffered Brand

AmulMother DiaryKwality WallaVadilalPastonjiOthers

Contd.

• Which company gives you the best retail margins?• Amul• Mother dairy• Kwality walls• Vadilal• Pastonji• Others_____

Amul Mother diary Kwality walls Vadilal Pastonji Others

24%

31%

15%

12%13%

5%

Retail margins

Results & interpretation

• Issue regarding deep freezer• Advertising issues• Observation of the ice cream stock• Distribution related problems• Distributor related problems• Retailer & company related problems

Conclusion• The most effective medium through which people have

which come to know about the new flavors is by “word of mouth” publicity by friends and relatives

• As far as advertisement inside shops are concern retailer had a 50-50response

• Majority of the retailers would appreciate the new flavor to be introduce in small pack as well

• Almost all retailers are concerned about the damage replacements and margins

• Sales man’s visit is as less as a once a month in most places

Limitations of the study• The sample size of the survey was very large and tedious

to interview• The time taken to interview each consumer and retailer

was a lot as every consumer as to be first explained everything and had to be deal with patience

• The consumer’s opinion at the times was very biased due to existence of Amul in the market since many years

• The time frame was given us was not enough to cover a larger sample size.

Recommendations• There has to be enough promotional campaigns pre-launch so

that consumers are aware about the products and flavors• The Few flavors has a negative feedback, should be pull back

from market as they create negative impression on consumer perception and towards Amul

• Company can give gift hampers of their product or free dinner as an alternative instead of cash as an incentive to motivate their salesman

• The company should get proper feedback from retailers time to time. In case they are facing any problems any problem it can be solved timely. Without delays.

• Company can advertise in POP’s in local language

Thank you