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PROJECTREPORT
ON
MARKETING STRATEGY OF AMUL CHOCLATE
SUBMITTED IN PARTIAL FULFILLMENT FOR THE
AWARD OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION
2009-2012
SUBMITTED BY: SUBMITTED TO:
SABAL CHAWLA MRS. VIJETA BANWARI
Enrollment no.05221201709 Assistant Professor
BBA (GEN.) 2nd
Shift MSI
IIIrd SEMESTER
MAHARAJA SURAJMAL INSTITUTE
Affiliated to Guru Gobind Singh Indraprastha University (GGSIPU), Delhi C-4, Janakpuri
New Delhi-110059
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CERTIFICATE
This is to certify that the project work titled MARKETTING STRATEGY OF AMUL
CHOCLACTE is a bonafide project carried out by SABAL CHAWLA, BBA (GENERAL)
student, Maharaja Surajmal Institute (GGSIPU) in Delhi for the fulfilment of requirements of the
BBA program and the project work has not formed the basis for the award previously for any
degree, diploma or any other similarities
Date:
Signature:
(Project guide): MRS. VIJETA BANWARI
Assistant Professor
MSI
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ACKNOWLEDGEMENT
I want to thank, MRS. VIJETA BANWARI for their guidance and support in completion of this
project. It is because of them I have been able to complete my project in the best possible way.
The project report has largely benefited from the comments provided by my teachers, friendsand family.
I consider my time in Completion of this project to be crucial, motivating and learning period.
I could not have wished for better Collaborators and Mentors. Their detailed comments,
vigilance and insight have been of great value to the Project and for me in person.
Thank you
It is truly our Project.
Thank you!
SABAL CHAWLA
BBA (GEN) II Shift 3rd
SEMESTER
Enrollment no. - 05221201709
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Table of CONTENTS
S.NO. TITLE PAGE NO.
1. CHAPTER 1:-
INTRODUCTION
OBJECTIVES OF THE STUDY
RESEARCH METHADOLOGY
LIMITATIONS OF THE STUDY
6
7
11
12
18
2. CHAPTER 2:-
PROFILE OF THE ORGANISATION
19
20
3. CHAPTER 3:-
ANALYSIS AND INTERPRETATION
32
33
4. CHAPTER 4:-
CONCLUSION
RECOMMENDATIONS
56
57
58
5. BIBLIOGRAPHY 60
6. ANNEXURE 61
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PREFACE
The AMUL model is based on strong economic logic for the existence of each tier, meaning each
higher tier must generate sufficient value to the satisfaction of its immediate lower tier.
Interlocking system of control and ownership ensures that this logic is never lost of sight the
owners of AMUL - namely, the farmers have ensured that the organization never loses its
independence and autonomy, and that no internal or external stakeholder can take me system for
a ride. In order to protect and promote the farmers' interests, AMUL has been always engaged in
lobbying activities. Its initiatives in countering the evil effects of WTO, in the passing of Parallel
Cooperatives Act in several states, in bringing out the Co-operative Company's Act at the center
are only some of the recent examples. By setting standards in the market place in terms of
product quality and its price, AMUL has become the natural market leader in its areas of
functioning and won the hearts or all Indians. By its organizational design and strategies, AMUL
has rediscovered the model of a new-generation producer cooperative in India, which is different
from its traditional form in assigning the right kind of incentives to the shareholders. In terms of
forward linkages, however, AMUL approximates a Japanese Keiretsu, wherein the different
stakeholders join hands with each other to maximize the value of the enterprise.
By its pricing and quality strategies, AMUL is always striking a balance between the interests of
the consumer with those of its producers. Because of Its larger appeal, AMUL has truly
symbo.l1zed the real 'Taste of India. Its innovative advertisements have further reinforced its
competitive power and appeal. Professional management. Of AMUL, which is always
accountable to the members, has ensured excellent economic and financial management of it
federation, the GCMMF.
Probably the most important component of AMULs success is its visionary and dedicated
leadership, which has spent its private resources not only to solve free rider's problem at every
stage of collective action but also to protect the organization from predatory attacks from the
external environment.
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CHAPTER 1
INTRODUCTION
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INTRODUCTION
OVERVIEW OF CHOCOLATE INDUSTRY
The vital statistics of the confectionery segment seem more promising than the
conventional FMCG categories such as toilet soaps or detergents. While toilet soaps and
detergents already reach over 90 per cent of the households, both chocolate and sugar
confectioneries have abysmally low penetration levels.
ORG-MARG estimates suggest that chocolates penetrated just five per cent of the Indian
households in 2000. On the other hand, sugar-boiled confectionery reaches 15 per cent of the
households, leaving ample room for growth. Even considering the urban market alone, the
category reaches just 22 per cent of the urban consumers.
This category, therefore, has considerable potential to grow before it reaches saturation
point -- as have traditional FMCG products such as soaps and detergents. Chocolates and sugar-
boiled confectionery boast of even lower penetration levels than biscuits, which reach 56 per
cent of the households.
The Indian confectionery market is segmented into sugar-boiled confectionery,
chocolates, mints and chewing gums. Sugar-boiled confectionery, consisting of hard-boiled
candy, toffees and other sugar-based candies, is the largest of the segments and valued at around
Rs 2,000 crore. Nutrine Confectionery and Parry Confectionery dominate the organised segment,
apart from the Indian arms of MNCs such as Perfetti India and Warner Lambert.
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Cadbury India and Nestle India also made a foray into this segment five years ago and
have a small presence. Chocolates make up a 22,500-tonne market, which is valued at Rs 400
crore and dominated mainly by listed players Cadbury India and Nestle India. But slipping
volumes however, despite its unmistakable potential, the major players in the confectionery
industry have not fared too well in recent times in terms of sales growth. Take the chocolate
segment. Cadbury India, which derives nearly 76 per cent of its revenues from chocolates and
sugar confectionery, has seen its top line growth wind down from 19 per cent in 1999 to 12
percent in 2000 and further to 7 per cent in the first six months of 2001. Nestle India has
managed to report healthier sales and profit growth, but this is more on account of the
contribution from milk, coffee and culinary products rather than sugar or chocolate
confectionery.
The only listed player in sugar-boiled confectionery has not done too well either. Parrys
Confectionery, a leading player in sugar-boiled confectionery, has reported shrinking sales
volumes in 1998-99 and 1999-2000, after robust financial performance in earlier years.
Screeching to a halt these topline numbers only reflect the ground realities. Industry
sources estimate that the 22,500-tonne chocolate market, which grew at a robust 12 per cent per
annum until 2000, grew by just three per cent in that year.
Several factors appear to behind this slowdown. As with all other FMCG products, the
demand for confectionery products appears to have been hit by the economic slowdown and the
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consequent shrinkage in consumer spending. Confectionery products are impulse foods and thus
appear to have borne the brunt of a cutback in consumer spending over the past couple of years,
while staple foods have continued to exhibit healthy growth rates.
This is evident from ORG-MARG figures, which suggest that the annual per capita
consumption of chocolates actually fell from 312 grams in 1999 to 307 grams in 2000, while that
for sugar boiled confectionery fell from 621 grams to 579 grams (source: ORG-MARG
Milestone Papers: The Growth Inertia). Branded staples such as atta and salt registered a healthy
increase in per capita consumption over this period.
No price hikes
Despite fairly aggressive promotional efforts by marketers, the overall penetration level
for chocolates registered no increase between 1999 and 2000.
Consumption of chocolates could have been impacted by the selling price increases that
marketers affected between 1999 and 2000. In 1999 and 2000, selling prices of key chocolate
brands were pegged up by 5-15 per cent, partly reflecting a spike in cocoa prices in that period.
This probably contributed to the sales growth for the year.
However, with cocoa prices falling sharply in the second half of 2000, marketers were
forced to maintain selling prices of most products, holding back value growth in sales. Cadbury
India, the market leader in the chocolate segment (market share 71.9 per cent) saw the growth in
its chocolate portfolio slow to 6 per cent in the April 2000 to April 2001 period, from nine per
cent the previous year. This was mainly due to the healthy double-digit growth rates in its
flagship brand -- Cadbury's Dairy Milk. Brands such as 5 Star and Perk stagnated in 2000-01.
Nestle India's chocolate portfolio (comprising of KitKat, Munch and Charge
commanding a total market share of 24.7 per cent) slowed even more dramatically, registering
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less than one per cent growth between April 2000 and April 2001. Though Nestls recent
launch, Munch, has been a success, the low-priced brand has moderated the value growth in
Nestls portfolio. Wooing adults now The avenue for growth appears to lie in taking advantage
of the low penetration level for chocolates by roping in new consumers. The chocolate majors
attempted to do this by repositioning chocolate, earlier targeted at children, as a snack food for
adults. Cadbury's chocolate-coated wafer Perk and Nestls Charge and Munch were essentially
sold on this platform.
Though products such as Perk did succeed initially (Cadbury India claims to have added
eight million new consumers in 2000), growth in this segment appears to be petering out. Both
Perk and Kit Kat (the chocolate-coated wafer which is central to Nestle's chocolate portfolio),
have shown signs of stagnation in 2001, actually reporting negative growth rates for a few of themonths.
Banking on smaller editions Of late, the chocolate majors have been rejigging their
products to launch chocolates in the Rs 10 and Rs 5 price points. Mimicking the trend in other
FMCG products, the chocolate majors have been relaunching their conventional chocolate
brands in smaller unit packs, hoping that this will prompt more frequent purchases and pep up
volume growth.
It is early days yet to judge if this has indeed pepped up volume growth in the segment.
However, the chocolate majors do not have much to lose. Unlike the low unit pack versions of
products such as shampoos, the low unit packs of chocolates do not cost less on a per gram basis
than their normal versions.
In most cases, the gram age offered under the low priced packs, has been brought down
in the same proportion as the price, leaving realisations for the chocolate majors untouched.
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OBJECTIVES OF THE STUDY
The primary objective would be:-
To conduct a comparative analysis of Amul Chocolate vis--vis its competitors.
The other objectives would be:-
To compare Amul Chocolate with its competitors in terms of sales figure.
To make an analysis of the shortcomings of Amul Chocolate compared to its competitors.
Finally to conclude the findings and suggest the necessary corrective measures and
recommendations for improving the market position of Amul Chocolate.
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RESEARCH METHODOLOGY
Significance
Any Research has its own importance in any business organization . The
research shows the real fact about product as well as organization. Research is a systematic and
scientific investigation of any idea either precise or abstract from a continuous basis for
learning , it could be either exploratory or descriptive.
According to above definition research is a systematic and scientific
investigation through which any organization try to find out its strength and weakness as
well as opportunity and threat. As we know in the present era the business activities have
become more complex and complicated due to modern technology , globalization andliberalization and in other hand today customer are highly conscious about products and
brand .
In recent time customers are not blind follower of a product. They are giving high
priority to all feature like price, quality, innovative features etc. But after all this features
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brand becomes the inevitable parts of any product because it gives the complete identification of
product so it is also the one most important part.
My research work is highly focused on this issue, which is important for me as
well as the organization. During research work I learnt retailers opinion about product and
services .
I learnt which factors affect the retailer to sale an individual product, this research gives me
insight to understand the retailers problem as well their area of interest , in this I got the
great experience about the market
For company point of view I tried to find the serious drawback, which is
highly, affected the sale of chocolates. I tried to find market share of Amul chocolate
which is itself important .I tried to find the sale figure of Amul chocolate in term of
rupees, due to some hurdle I dont claim my research work is 100% accurate because so
many factors was uncontrolled during the project .I tried to finish my research with 100%
accuracy which is best available in market .
So it is my strong believe that my research work is significant in all manner.
This research is helpful for organization, retailers as well as consumer.
Managerial usefulness of the study
The research is a systematic investigation of any idea. The research is widely used in the
business world for analyzing & evaluation business policy as well as the analyzing & evaluates
competitors activity and policy. The research is itself valuable. The research gives fact and
figure, which is useful in planning.
As it is obvious any business activity is based on to the 4 Ps of marketing viz.
price, product, promotion, place all these Ps have its own importance and all are inter-related
with each other but most importantly all the factor are independent in the nature. In any
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organization all factors are carefully formulated to gain a success in the market. It is very
important for business analyst to evaluate the modern trend and market position. In the other
hand it is vital for business operation to know the need and desire of customer. All the necessary
information is received from market by research work.
The study reveals many facts that have come up during my project and these facts can either be
used as opportunities in exploring and expanding the business as well as can be used as
safeguards against threats by the competitions. To prepare an effective marketing strategy a
company must study it s competitors as well as its actual and potential retailer. A company
should maintain good relation with their distributors and retailers keeping in view competitive
orientation in todays global market. Company should neither put much emphasis on competitors
positioning nor should it solely concentrate on its own products and policy. Rather it should findmidway between these two extremes and adopt flexible policy. Companies should manage a
good balance of declares retailer , consumer & competitors monitoring .
The information will prove beneficial in taking proactive action for combating competition .the
standing of the company and its competitors in the mind off the retailer in a vital factor in
deciding the success of business the study also aims at finding out the market share in term of
their sale, product penetration demand etc which is adjusted by retailer. This information is good
guide to management as it brings out the strength of the competition their product penetration,
product demand their promotion policy, which gives a overview where the company needs to
improve. This study basically aimed at providing the management desired vital information
about the market situation.
There say due to immerse competition in Indias fast moving consumer goods
market my work on GCMMF Ltd. And consumer behavaior can be useful in following ways :-
It can be useful for adopting the proper marketing mix in respect of type of chocolate,
distribution pattern, and market share.
It can be useful to understand the consumer perception which is very vital for product
mix as well as promotion mix.
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SCOPE OF THE STUDY
The present study is the study on GUJARAT COOPERATIVE MILK MARKETING
FEDERATION LIMITED, one of the India largest food production marketing organization,
which is a state level apex body of milk cooperative in Gujarat. From the study one can easily
infer the present market position of Amul chocolate with its leading competitors.
The study is designed and focused primarily on identifying the present market position of the
Amul chocolate. It also includes identification of its core competitors and enhancing efforts
towards brand repositioning in present and in future.
METHODOLOGY
Marketing research is the process collecting and analyzing marketing information and ultimately
arrived at certain conclusion Management in any organization need information about potential
marketing plans and to change in the market place. Marketing research includes all the activities
that enable an organization to obtain the information. This research is very important in strategy
formation and feed back of any organizational plan.
There are many type of research some are conceptual, empirical, descriptive, explorative etc.
each research type is being used for various purpose. In this research I have used descriptive
research, I try to describe what are the factors, which affect the business plan of AMULS
Chocolate.
Research design is the plan, structure and strategy of investigation conceived so as to obtained to
research problem and control variances. It is the specification of methods and procedures for
acquiring the information needed. It is overall operational pattern or framework of the project
that stipulated what information is to be collected and from which source and by what procedure.
RESEARCH DESIGN
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Different types of research design have emerged on account of the different perspectives
from which a research study can be viewed. There are three fundamental categories that we used
frequently are given below.
1. EXPOLETARY RESEACH: - In the case of exploratory research, the focus is on the
discovery of ideas. An exploratory study is generally based on the secondary data that are
readily available. It does not have formal and rigid as the researcher may have to change
his focus or direction, depending on new idea and relationships among variables. An
exploratory research is in nature of a preliminary investigation.
2. DISCRIPTIVE RESEARCH: - The objective of such a study is to answer the who,
what, when, where and how. Of the subject under investigation, descriptive studies are
well structured and tend to be rigid and its approach can not be changed every now andthen. It is therefore, necessary that the researcher
give sufficient thought to farming research question and deciding the types of data to be
collected and procedure to be used for this purpose.
3. CAUSAL RESEARCH: - A causal research investigates is cause and effect relationship
between two or more variables. The causal research design is based on reason along
well-tested line. We use inductive logic for confirming hypothesis with the help of future
evidence.
TYPE OF RESEARCH CARRIED OUT: -
In my project work I used exploratory research, as it aim to answering question about
sale, brand availability, service quality, distribution pattern etc.
DATA COLLECTION:-
To achieve the objectives, the primary as well as secondary source of data are used. Primary
source includes the retailers and companys officials through questionnaires.
Secondary source of data includes the past records of company.
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The data were collected through the following methodical techniques in the
present project work.
1. Through questionnaires
2. Through interview
3. Through observation
DATA SOURCES
PRIMARY DATA
SECONDARY DATA
PRIMARY DATA:-
Primary data is that kind of data which is collected by the investigator himself for the
purpose of the specific study. The data such collected is original in character. The advantage of
third method of collection is the authenticity. A set of question s was put together in the form of
questionnaire with. Question. The method of sampling was the random method as it is unbiased.
SECONDARY DATA:-
When an investigator uses the data that has been already collected by others is called
secondary data. The secondary data could be collected from Journals, Reports and Various
Publications. The advantages of secondary data can be economical, both in the term of money
and time spent. The researcher of the reporter also did the same and collected secondary from
various Internet sites like Google.com.altavista.com and many more. The researchers of the
reporter also visited various libraries for collection of the introduction part.
QUESTIONNAIRES DESIGN: -
Questionnaires consist of question printed or type in definite order on a form or
set of form. It was questionnaire format firms tested on small sample then was modified and
developed according to the environmental situation and other affecting factors. Each
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questionnaire is framed with systematic and modern technique to make useful in achieving the
objectives up to a maximum possible limit.
There are two types of questionnaires, the first one is standard questionnaire and
the second is un-standard questionnaire. The authority or expert sets the standard questionnaire.
In the other hand un-structured questionnaire is set according to objective of the study by
researcher.
In this research work I used un-structured questionnaire with my best ability and
under the guidance of my institutes faculties and the project guide of the organization.
After floor acing the questionnaire, the respondents (retailers and customers) were
personally contacted. Each respondent was requested to answers the question with appropriate
answer genuinely. All the questions were made very clear to them. The questionnaires were duly
filled with the responses of all the respondents in the current project work.
INTERVIEW METHOD: -
There is a fact to face interaction with most of the samples they were directly
questioned and according personal and professional problem were collected from them for
question are asked to the responded to flourish the questionnaire effectively and efficiently. In
this project work I have made interview with almost respondent to know some extra data or fact,
which was used in this project work. After using this method I tried to find the competitors
policy and there strength after this method I was able to conclude all facts with competitors
point of view.
OBSERVATION METHOD: -
During the project work, I contact the retailers and consumers particularly and
find their opinion about the Amul Chocolate.
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In the observation method the research himself collects necessary informations by observing the
phenomena under this method. Observation may be conducted on in the natural field or in the
form of experiment.
After observation the data carefully noted in the questionnaire format. I used uncontrolled
observation in this observation takes place in the natural setting. Retailer and customer are free to
express their felling about the product and the company. The observation method give me an
idea about the satisfaction level of customer and retailer in the other hand there precious
knowledge about the market situation make me understand the business difficulties which help
me a lot to carry out my project in a significant and effective manner.
SAMPLE DESIGN
SAMPLE DESIGN: - The sampling designs are mainly of two types non-probability
sample designs and probability sample design.
RANDOM SAMPLING: - a random sample gives every unit of population a known
and non-probability of being selected. Since random sampling implies equal
probability to every unit in the population; it is necessary that the selection of the
sample must be free from human judgment.
SYSTEMATIC SAMPLING: - In this method first a sampling fraction is calculated
as N/n where N is total no. of units in the population and n is the size of sample..
STRATIFIED RANDOM SAMPLING: - A stratified random sampling is divided
into mutually exclusive and mutually exhaustive strata or sub group and then a simple
random sample is selected with in each of the strata or sub group.
CLUSTER SAMPLING: - cluster sampling implies that instead of selecting
individual units from the population entire groups or clusters are selected random.
QUOTA SAMPLING: - quota sampling involves the fixation of certain quotas, which
are to be fulfilled by the interviewers, since quota sampling is not based on random
selection it is not possible to calculate estimates of standard errors for the sample
result.
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JUDGEMENTAL SAMPLING:- the main characteristics of judgmental sampling is
that units or elements of the population are purposely selected it is because of this that
judgment samples are also called purposive samples. Since the process of judgmental
sampling is not based on random sampling it is also called non-probability sampling.
DATA COLLECTION
Data collection from retailers of different areas viz. south Delhi, North Delhi, East Delhi,
West Delhi and Central Delhi
Sample size of retailers covered 250
Sample size of customer 100
Other information related to project has been taken from company website
LIMITATIONS OF THE STUDY
Although all efforts were taken to make the result of survey as accurate as possible the
survey had the following constraints:
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Retailers are not willing to give answers of the questions due to their busy schedules.
Retailers hide the facts especially in the sales figure.
A few retailers were not cooperating during the project survey. It was quite difficult to
collect necessary data.
Due to the time constraint and other imperative workload during the training period it
could not be made possible to explore more areas of concern pertaining to project study.
The employees of Amul India limited were very hesitant and reluctant to give all
information which was vital for my project work because some information were
confidential in nature.
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CHAPTER 2
PROFILE OF THE ORGANISATION
PROFILE OF THE COMPANY
ABOUT THE COMPANY
Thirty years ago the milk producers of Gujarat had come together and decided to create
their own organization to enhance the marketing capacity of the dairy Co-operative milk
marketing federation Limited (GCMMF Ltd.). Mr. V. Kurien was the founder of this co-
operative society and this society had been formed in a small village of Gujarat named Anand.
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Gujarat Cooperative Milk Marketing Federation (GCMMF Ltd) is a Indias largest food
product marketing organization. It is a state level apex body of milk cooperative in Gujarat,
which aims to provide remunerative return to the farmers and also serve the interest of
consumers by providing quality products, which are good value for money.
Member 12 district cooperative milk producers
union
No. of Producer Member: 2.36 million
No. of Village Societies : 11.333
Total Milk handling capacity 6.9 million liters per day
Milk collection (Total-2009-2010) 1.81 billion liters
Milk collection (Daily Average 2009-
2010)
4.97 million liters
Milk Drying Capacity: 511 metric Tones per day
Cattel feed manufacturing Capacity: 2340 Mitts per day
AMULS HISTORY
Amul birth is indelibly linked to the freedom movement in India. It was Sardar Vallabhbhai Patel
who said that if the farmers of India are to get economic freedom then they must get out of the
clutches of the middlemen. The first Amul cooperative was the result of a farmers meeting in
Samarkha (Kaira district, Gujarat) on 4 January 1946, called by Morarji Desai under the advice
from Sardar Vallabhai Patel, to fight rapacious milk contractors. It was Sardars vision to
organize farmers, to have them gain control over production, procurement and marketing by
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entrusting the task of managing these to qualified professionals, thereby eliminating the
middlemen, the bane in farmers prosperity.
The decision was taken that day in January 1946. Milk producers cooperatives in villages,
federated into a district union, and should alone handle the sale of milk from Kaira the
government run Bombay Milk Scheme. This was the origin of the Anand pattern of cooperatives.
The colonial government refused to deal with the cooperative. The farmers called a milk strike.
After fifteen days the government capitulated. This was the beginning if Kaira District
Cooperative Milk Producers Union Ltd., Anand registered on 14 December 1946. Mr. V.Kurien
was the founder of this cooperative society. This society had been formed in a small village of
Gujarat named Anand.
Originally the Anand pattern included dairy cooperative societies at the level. Inspired by the
Kaira Union, similar milk unions came up in the other districts too. In 1973, in order to market
their product more effectively and economically, they formed the GCMMF Ltd. GCMMF
become the sole marketer of the original range of Amul products including milk powder and
butter. That range has since grown to include ice cream, ghee, cheese, chocolates, shrikhand,
paneer, and so on. These products have made Amul a leading food brand in India.
The brand name AMUL, has taken from the Sanskrit Amoolya, meaning priceless, wassuggested by a quality control expert in Anand. The first products with the Amul brand name
were launched in 1955. Since then, they have been in use in millions of home in all parts of India
and beyond. Today Amul is a symbol of many things: of high quality products sold at reasonable
price, availability, and service. Amul is the brand name of two million farmers, members of
10,000 village dairy cooperative societies throughout Gujarat. This is the heart of Amul; it vis
what is so special about the Amul saga. Amul in 1946 was really an effort to carve out a truly
Indian company that would have the involvement of millions of Indians and place direct control
in the hands of the farmers. It was a mandate for producing, owning and marketing and above all,
building your own truly Indian Brand. Amulss birth was thus a harbinger of the economic
independence of our farmer brethren. Today, 173 milk producers cooperative unions and 22
federations play a major role in meeting the demand for packed milk and milk products. Quality
packed milk is now available is more than 1,000 cities throughout the length and breadth of
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India. Amul, therefore, is a brand with a difference. That difference manifests itself in a larger
than life purpose. The purpose freedom to farmers by giving total control over procurement,
production and marketing.
RANGE OF THE PRODUCT
Bread spreads:
Amul Butter Amul Lite Low Fat Bread spread Amul Cooking Butter
Cheese Range:
Amul Pasteurized Processed Cheddar Cheese
Amul processed Cheese Spread
Amul Pizza (Mozzarella) Cheese
Amul Shredded Pizza cheese
Amul Emmental Cheese
Amul Gouda cheese
Amul malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned
Utterly Delicious Pizza
Curd Products:
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Yogi Sweetened Flavored Dahi (Dessert)
Amul masti Dahi (Fresh cured)
Amul Butter Milk
Amul lassee
Milk Drink: Amul cool flavored Milk
Amul Cool Kesar
Amul Cool Elachi
Amul Cool Coffee
Amul Cool Rose
Amul Cool Strawberry
Amul Cool Mango
Health Beverage:
Amul Shakti White Food
Mithaee Range (Ethnic Sweets):
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamon)
Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamuns Mix
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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
Amul Lite Slim & Trim Milk 0% fat Milk
Amul Shakti Toned Milk
Amul Fresh Cream
Amul Snowcap Softy Mix
Chocolate & Confectionery:
Amul Milk Chocolate
Almond Bar
Chocozoo
Milk Powder:
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
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Fresh Milk:
Amul Taaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardized Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
PRODUCT SPECIFICATION
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Composition:
Milk Fat 2%
Sugar 55%
Total Fat 32.33%
(Milk Fat + Cocoa Fat)
Cocoa Solids 7.5%
Milk Solids 20%
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MARKET PRESENCE
YEAR Sales Turnover Rs. (Million)
1996-97 13790
1997-98 15540
1998-99 18840
1999-00 22192
2000-01 22185
2001-02 22585
2002-03 23365
2003-04 27457
2004-05 28941
2005-06 29880
2006-07 30150
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ORGANIZATIONAL STRUCTURE
BOARD OF DIRECTOR
MANAGING DIRECTOR
CHIEF GENERAL MANAGER
GENERAL MANAGER
ASSISTANT GENERAL MANAGER
EXECUTIVE
DEPUTY EXECUTIVE
ASSISTANT EXECUTIVE
SENIOR EXECUTIVE
JUNIOR EXECUTIVE
FIELD SALES REPRESENTATION
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DISTRIBUTION CHANNEL
MEMBER UNION (PLANT)
DEPOT GODOWN
DISTRIBUTOR
RETAILERS
CONSUMER
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P R O B L E M O F T H E O R G A N I S A T I O N
It is not a hidden fact that the amul has its own image or brand, which shows the value of
money for its product. The AMULS have a great product lineand depth. AMULS products are
Amul Butter, Amul Cheese Amul confectionery, Amul Flavored Milk and Pasteurized milk,
Dahi, Lashi, Ice-cream,etc.
If we give a overall look on the all market position of AMULS product almost all
product have a grate market share in other hand all product are market leader with their greater
sales volume and high turn over, for example AMUL Butter, AMUL Flavored milk, AMUL
Mozerella cheese.
But in case of AMUL Chocolate the position of AMUL is not satisfactory. It is generally
consider AMUL is in the 3rd
position after CADBURY and NESTLE. Both the company has
separate distribution channel for chocolate, they are giving high priority to confectionery
products. They are providing easy replacement, high penetration, and regular visit to retailers
shop. Most importantly they are providing cool storage equipment to their retailers and they
positioning their product through heavy advertisement campaign.
Recently the AMUL Chocolate is re-lunched in market but the position remains same,which is very critical for the company. After re-lunched, the sale volume and customer
awareness about the all chocolate products remain unsatisfactory, which create harsh situation
for all organization. Companies highly willing to excel in the chocolate field there are some
problem, which is adversely influence the organization.
There are some problems, which is as follows: -
Competitors position in market
Vast distribution channel which deals almost all product
Replacement
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Retailer satisfaction level
Awareness about the product
COMPETITORS INFORMATION
Cadbury
Cadbury dominates the Indian chocolate market with a 65% market share. Besides, it has
a 10% market share in the organized sugar confectionery market and a 25% market share
in milk/ malted foods segment.
Nestle
Nestle at about 23% market share
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CHAPTER 3
ANALYSIS AND INTERPRETATION OF DATA
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S.W.O.T ANALYSIS
STRENGTH:-
Amul has a brand image.
It has a high quality.
It has a great purity.
It has a pool of dedicated and hardworking workforce.
Experienced market player.
WEAKNESS: -
Company dose not provide credit to retailers Company.
Company has no proper promotion strategy.
Complex replacement procedure.
Fewer margins to retailers.
There is Lack of availability.
Distribution is not up to the mark in every area.
Lack of salesmen and distributor in some areas in Delhi.
There is a problem with storage of Amul Chocolate
OPPORTUNITY: -
Providing the replacement offer to retailers can increase Sale.
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Increase in retailer margin can enhance the sale of Amul Chocolate.
Focused approach towards small market can also increase the sale of Amul Chocolate.
New schemes can be provided to the retailers to attract them to push the sale of Amul
Chocolate.
Regular supply can be easily compete the competitors and increase its own sale.
THREATS: -
More competitors are entering in the market.
Competitors are providing more margins to retailers.
Competitors also giving replacement facility to retailers.
Competitors providing regular supply and strong distribution channel.
Competitors also reaching to small market.
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DATA ANALYSIS OF CUSTOMER QUESTIONNIERS
Fig.1
Interpretation:-
The red colour segment in the pie chart indicates the most popular bar, which is consumed by the
consumer with 66 %. The yellow color segment shows that toffee is the second most popular
chocolate, which is consumed with 17 % with the consumers. The blue colour segment indicates
candy, which is liked by people with 08 %. The last green segment indicates that only 09 %
people like all the chocolates.
8%
66%
17%
9%
MOST POPULAR KIND OF CHOCOLATE
Canndy
Bar
Toffey
All
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Fig. 2
Interpretation:-
The customers while purchasing the chocolates have different prefences, as shown in the pie
chart the blue segment shows that 66 % of the customers purchases chocolates with their
preferred flavors. The red segment shows that only 04 % of the customers prefer gifts as
chocolates. The yellow segment shows that 30 % of the customers prefers both the flavours and
gift while purchasing chocolates.
66%4%
30%
CUSTOMER PERCEPTION WHILE PURCHASING
Flavour
Gift
Both
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Fig. 3
Interpretation:-
There are various time periods where the demand changes for the chocolates. The yellow
segment of the chart with 88 % shows that the customers prefer chocolates at any time. The red
segment shows that 08 % of the customers like chocolates during parties or birthdays. The blue
segment indicates that only 04 % of the customers like chocolates after their meals.
4%
8%
88%
TIME FOR CHOCOLATE
After meal
Party/Birthday
Any Time
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Fig. 4
Interpretation:-
This analysis shows the demand of the chocolate with the preferred flavors. According to the
survey 22 % of the customers prefer milky flavour, 26 % of the customers prefer coffee flavour,
22% of the customers like the fruit n nut flavour,2% of the customers like the milky And coffee
flavor, 12 % of the customers kike milky and fruit n nut flavour,8% prefer coffee and fruit n nutflavour,2% of the customers like all the flavors, and only 6% of the customers prefer other
flavors.
22%
26%22%
2%
12%
8%
2%
6%
FLAVOUR PREFERANCE
Milky
Coffee
Fruit-n-Nut
Milky+Coffe
Milky+Fruit-n-Nut
Coffee+Fruit-n-Nut
All
Other
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Fig. 5
Interpretation:-
The customers have different first preference of chocolate. The red shows that 66% of the
customers prefer Cadbury as their first preference, the blue shows that 15% of the customers
prefer amul as the first preference, the yellow shows that 13% like nestle as their first preference,
and only 6% customers prefer other as their first preference.
15%
67%
13% 5%
FIRST PREFERANCE OF CHOCOLATE
AmulCadburyNestleOther
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Fig. 6
Interpretation:-
This survey shows that 38% of the customers prefer Cadbury as their second preference, 28%
customers prefer nestle as their second preference,20% of the customers prefer amul as their
second preference, and 14% of the customers prefer others as a second preference.
14%
38%28%
20%
SECOND PREFERANCE OFCHOCOLATE
Amul
Cadbury
Nestle
Other
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Fig. 7
Interpretation:-
This analysis shows the purchasing power of the customers in a week. This shows that.70%
customers spend Rs. 50 on chocolate, 20% customers spend Rs 50-100 on chocolate,10%of the
customers spend above Rs. 50 on chocolate.
70%
20%
10%
WEEKLY PURCHASE(IN RS/-)
Below Rs/- 50
Rs/- 50 -100
Above Rs/- 100
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Fig. 8
Interpretation
This analysis shows that 58% of the customers are all well aware about the amul milk
chocolates. 23% customers are well aware about the almond bar.10% customers are well aware
about the chocozoo, 5% customers are well aware about the fundoo, 4% customers are aware
about the bindaz.
58%23%
4%
5%10%
AWARENESS OF AMUL CHOCOLATE INCUSTOMER
Amul Milk Chocolate
Almond Bar
Bindaaz
Fundoo
Chocozoo
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DATA ANALYSIS OF RETAILERS
Fig. 9
Interpretation:
This is a survey which is conducted for the retailers .it shows that 92-98% customers sells
Cadbury chocolate,70-85% customers sells nestle chocolate,52-72% customers seels amul
chocolate
96
85
64
94
82
65
95
7068
98
71
52
92
80
72
0
20
40
60
80
100
120
Percentage
ofRetailer
Company Name
Penetration of Chocolate
North Delhi
south Delhi
East delhi
West Delhi
Central Delhi
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Fig. 10
Interpretation:-
This survey is conducted for the penetration of amul chocolates. it shows that 89-99% customers
are well aware about the milk chocolate,10-40% customers are well aware about the almond
bar,7_50% of the customers are well aware about the chocozoo,15-60% customers are well
aware about the fun doo.
99
4035
38
20
97
38 4042
53
92
23
12
3538
89
10 7
13 15
98
30
50
40
60
0
20
40
60
80
100
120
MilkChocolate
Almond bar Bindaaz Chocozoo Fundoo
Percentage
Items
Penetration of Amul Chocolate
North Delhi
south Delhi
East delhi
Wes Delhi
Central Delhi
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Fig. 11
Interpretation:-
This survey is done on the various parts of Delhi this is about the east Delhi. It shows that
procurement of amul chocolate through distributor in east delhi is 29%, procurement of amul
chocolate through wholesaler in east Delhi is 23%, procurement of amul chocolate through
distributor and wholesaler in east Delhi is 48%.
29%
23%
48%
Procurment of Amul Chocolate(East Delhi )
Distributor
WholeSaler
Both
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Fig.12
Interpretation:-
This survey is done in the north side of the Delhi .it shows that the retailer procure 70%
amul chocolate from distributor in north Delhi, retailer procure 13% amul chocolate from
wholesalers in north Delhi, retailer procure 17% amul chocolate from distributor and
wholesaler in north Delhi.
.
70%
13%17%
Procurment of Amul Chocolate (North Delhi)
Distributor
WholeSaler
Both
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Fig. 13
Interpretation:-
.This survey is conducted in south Delhi. it shows that retailers procure 72% amul chocolate
from distributor in south Delhi, retailer procure 9% amul chocolate from who; sealer in south
Delhi, retailer procure 19% amul chocolate from distributor and wholesaler in south Delhi.
72%
9%
19%
Procurment of Amul Chocolate(South Delhi)
Distributor
WholeSaler
Both
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Fig. 15
Interpretation:-
.This survey shows that retailers procure 27% amul chocolate from distributor in central Delhi,
retailer procure 26% amul chocolate from wholesalers in central Delhi, retailer procure 47%
amul chocolate from distributor and wholesaler in central Delhi.
27%
26%
47%
Procurment of Amul Chocolate(Central Delhi)
Distributor
WholeSaler
Both
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Fig. 16
Interpretation:-
This survey is conducted for the demand of the amul chocolates. It shows that demand of
Cadbury chocolate in entire Delhi is about 62%,demand of nestle chocolate in entire de3lhi is
about 27%,demand of amul chocolate in entire Delhi is about 11%
62%27%
11%
Demand of Chocolate(Entire Delhi)
Cadbury
Nestle
Amul
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Fig. 17
Interpretation:-
This survey shows the weekly sales of chocolates in north Delhi. weekly sales of Cadbury in
north Delhi is about 71% weekly sales of nestle in north Delhi is about 17%,weekly sales of
amul is about 12%.
71%
17%12%
Weekly Sale of Chocolate(North Delhi)
Cadbury
Nestle
Amul
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Fig. 18
Interpretation:-
This shows weekly sales of chocolates in south Delhi. It shows that weekly sales of Cadbury in
south Delhi is about 52%,weekly sales of nestle in south Delhi is about 28%,weekly sales of
amul in south Delhi is about 20%.
52%
28%
20%
Weekly Sale of Chocolate(South Delhi)
Cadbury
Nestle
Amul
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Fig. 19
Interpretation:-
This shows the weekly survey in central Delhi. It shows that weekly sale of Cadbury in central
Delhi is about 52%, weekly sales of nestle in central Delhi is about 28%,weekly sales of amul in
south Delhi is about 20%.
62%25%
14%
Weekly Sale of Chocolate(Central Delhi )
Cadbury
Nestle
Amul
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Fig. 20
Interpretation:-
This shows the weekly sales of chocolates in west Delhi. This shows that weekly sales of
Cadbury in west Delhi is about 66%, weekly sales of nestle in west Delhi is about 24%, weekly
sales of amul in west Delhi is about 10%
58%35%
7%
Scheme from Company to their Retailer
Cadbury
Nestle
Amul
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CHAPTER 4
CONCLUSION AND RECOMMENDATIONS
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RECOMMENDATIONS
On the basis of research and analysis of the study conducted in DELHI market, which was
divided into five areas viz. south, north, east, west and central Delhi for the AMUL Chocolate. I
would like to suggest the following key point to the company.
The company should try to build some feedback mechanism from the retailer to check the
wholesalers intervention in the AMULS distribution area because the wholesaler try to
hamper the goodwill as well as the other benefit of the company and their most important
part of distribution channel.
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The company should maintain separate distribution channel for the chocolate because it is
seem mostly during study that one single distribution deals all product, as it is not a
hidden fact that the product line and product depth is very wide. In the other hand other
product most importantly AMUL butter is hot item for distributor as well as for retailers.
Therefore they dont pay properattention on to it.
The company should provide new schemes on the regular basis to the retailers as well as
to the consumers to increase its market share.
During my project this fact become clear that the customer are not well aware about the
all product item of amul chocolate so through the strong advertisement company should
try to increase the awareness of the AMUL chocolate.
The retailers main problem is storage of AMUL Chocolate as I saw Cadbury as well as
Nestle both company provide refrigerator and display box for proper storage as well as
the promotion of their product so AMUL should do something on this line.
Replacement is big problem for retailers especially in chocolate segment because all
chocolate products need special kind of care but there some unavoidable factor damage
the chocolate so company should provide revive the policy about the replacement, easyreplacement facility to the retailers so that they could be attracted toward selling the
AMUL Chocolate.
The company should start promotion campaign at the micro-level by increasing the visit
of companys representatives to the retailers.
The company should work collaboratively with the distributors in effective manner
towards focusing on the area where there is a potential market for AMUL Chocolate and
target that area.
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CONCLUSION
FROM THE ANALYSIS, THE FOLLOWING CONCLUSION CAN BE ARRIVED AT:
Amul Chocolate enjoys the trust of the retailers as well as the consumer because of its quality
and huge brand image. Currently the stock of Amul Chocolate supplied by the company is
not of fresh date. As a result of this situation is making an adverse impact on the market of
Amul Chocolate
There a big storage problem with Amul Chocolate it has need to keep in certain temperature.
Some distributors do not give proper information to the retailers about the product and offers
given by the company for the promotion of the Amul Chocolate. Which leads bad image of
the company?
There is some problem with the packaging of the product. As a result the Chocolate puffed
before its expiry period.
The supply of Amul Chocolate is not proper in some specific areas .Which gives wrong
massage about company.
The competitors of some of the competitors of are providing easy replacement facility to the
retailers which are attracting them towards those companies.
Some of the competitors of some of the competitors are providing wider margins to the
retailers. Wider margin is making the retailers to push the sales of the competitors. There are
some of the areas in Delhi are not yet
Tapped properly by the company. On the other hand the competitors are making a regular.
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BIBLIOGRAPHY
BOOKS:-
KOTLER PHILIP MARKETIG MANAGEMENT NEW DELHI PRENTICEHALL
OF INDIA.
KOTHARI C.R. RESEARCH METODOLOGY
SEARCH ENGINE:-
www.google.com
www.yahoo.com
WEB SITE:-
www.amul.com
MAGAZINES :-
BUSINESS WORLD
BUSINESS TODAY
PREOIDICAL:-
ECONOMIC TIMES
TIMES OF INDIA(DELHI EDITION)
http://www.google.com/http://www.google.com/http://www.yahoo.com/http://www.yahoo.com/http://www.amul.com/http://www.amul.com/http://www.amul.com/http://www.yahoo.com/http://www.google.com/ -
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ANNEXURES
CUSTOMER QUESTIONNAIRE
Name Occupation..
Age Monthly income.
Place.
1. Do you eat chocolate?
Yes No
2. Which type of chocolate do you like most?
Candy Toffee Bar
3. Whats in your mind while purchasing chocolate?
Flavor Gift both
4. At which time do you like to eat chocolate?
After meal Birthday party any time
5. Which type of flavor/taste does you like the most?
Milky coffee Fruit-n-Nut Other
6. Which chocolate do you like the most? Name
a) .. b) ..
7. How much do you spend in chocolate in a week?
Below 50 50-100 Above 100
8. Do you aware about?
Yes No
Amul milk chocolate
Almond Bar
Bindaaz
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Fundo
Choc zoo
9. Have you tasted Amul chocolate?
Yes No
Milk chocolate .
Almond Bar .
Bindaaz . .
Fundo . .
Choc zoo . .
10. If yes give point (1-10)for each?
Milk chocolate ..
Almand Bar .
Bindaaz .
Fundo ..
Choc zoo .
11. How you come to know about Amul chocolate?
By electronic media By print media By retailer By Display Any other
.
12. Give point (1-10) for following chocolate?
Taste Price packaging
Cadbury
Nestle
A l