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Amul report

  1. 1. A PROJECT RESEARCH REPORT ON Promotional Scheme of Amul Ice CreamSubmitted in partial fulfillment of the requiments forthe award of the degree of Master of Business AdministratipnSubmitted to:Faculty guide: Submitted By:Seshanvita Das Dharmendra kumarGIMT, Greater Noida ROLL: 0909470031 MBA 4sem
  2. 2. ACKNOWLEDGEMENTThis study even internal part of our MBA program and to do this project in ashort period was a heavy task. Intention, dedication, concentration and hardwork are very much essential to complete any task. But still it needs lot ofsupport, guidance assistance, co-operation of people to make it successful.I bear to imprint of my people who have given me their precious ideas andtimes to enable me to complete the research and the project report. I want tothank them for their continuous support at my research and writing efforts.First of all I would like to thank Dr.shruti Gaur, faculty member of LIMTGr. Noida, for giving me an opportunity to write my Dissertation reportunder his guidance and supervision and for all the help and support whichled me complete the project.At last but not least I also thanks to the entire customer interviewed for theirkind co-operation. With Regards Surendra Pal Singh DECLARATION 2
  3. 3. I, Dharmendra kumar vhereby declares that the project workentitled “Promotional scheme of Amul Ice cream” is myproject. I have not copied this project. I have worked hardfor this project. Dr. Shruti Gaur was my project guide. Herencouragement, indulgency, and affection made this projecta reality. I have proudly got her guidance in designing thearchitecture underlying the system.Signature of the Project Developer: Surendra Pal Singh.Name: Surendra Pal Singh.Course: Master of Business Administration. Date: 16/Dec/2010.Signature of the CenterDirector:________________________________________________Name of the Learning Institution: - GIMT,Institute of management& technology- II Greater noida 201306 3
  4. 4. Abstract:Amul is the largest co-operative movement in India with 2.2 millionmilk producers organized in 10,552 co-operative societies in2003-2004.The countrys largest food company, Amul, is the market leader inbutter, whole milk, cheese, ice cream, dairy whitener, condensedmilk, saturated fats and long life milk.Amul follows a unique business model, which aims at providingvalue for money products to its consumers, while protecting theinterests of the milk-producing farmers who are its suppliers as wellas its owners. Despite being a farmers co-operative, Amul has givenmultinationals a run for their money.In butter, cheese and saturated fats, Amul has remained theundisputed market leadersince its inception in 1955, by offering quality products atcompetitive prices. In other categories, Amul has nullified its latemover disadvantage through aggressive pricing, better quality,innovative promotion, and superior distribution 4
  5. 5. TABLE OF CONTENTSList of TableList of FigureCertificateAcknowledgementDeclarationAbstractCHAPTER PAGE NO.Introduction ----------------------------------------6Company Profile -------------------------------- 9Distribution network --------------------------------- 15Executive Summary ----------------------------------------41Industry Scenario ---------------------------------47Introduction of problem ----------------------------------48About the study ---------------------------------Rationale and Scope ---------------------------------50Objective of the project -----------------------------------52Review OF Literature ----------------------------------54Marketing Mix 4 P’s -----------------------------------58SWOT Analysis ------------------------------------60Research Methodology ------------------------------------66 5
  6. 6. Project Activity Sequence -------------------------------------71Data Analysis & Finding ----------------------------------------- 74One way ANOVA -----------------------------------89Finding -----------------------------------92Recommendations --------------------------------------------95Conclusions ----------------------------------------------100Bibliography ------------------------------------------------------ 102Annexure ----------------------------------------------103Questionnaire LIST OF TABLE & GRAPHSAnalysis of non existing outlet 82Mode of payment for deep freezer 83Relationship on the basis of retailer 84Analysis of Existing Amul outlet 85Mode of purchase 87Pack of ice cream sold most 88 6
  7. 7. INTRODUCTIONGujarat Cooperative Milk Marketing Federation (GCMMF), one of Indiasgreatest success stories with its Amul brand, is now aiming at a 17-per centgrowth in sales to Rs 3,200 crores this fiscal against sales of Rs 2,746 croresin the previous year ended 31 March 2003.The federation is expecting each of its products to contribute higher salesthis year as new products are being added to each product line.The big hope is not surprisingly the Amul brand of ice creams, which isexpected to contribute Rs 250 crores to the turnover, up from Rs 150 croreslast year. Last year there was a good growth in ice cream, cheese, butter andghee. The company is launching new products in almost every line that arein, with specific stress on ice creams.For its ice cream and milk business, GCMMF has begun investing inincreasing its milk capacity. It recently firmed up plans to invest Rs 100-120crore to expand this from 1.1 million liters a day to 1.8 million litres a day at 7
  8. 8. its Gandhinagar factory. The investment will take place over the next twoyears.The cooperative is also planning to expand its production facilities beyondGujarat to service other regions in India. GCMMF recently bought an ice-cream manufacturing unit in Nagpur and is installing a dairy unit alongside.Through this unit, the organisation has also extended its milk supply to over10 cities spread over Rajasthan, Madhya Pradesh and Maharashtra.Amul is now focusing on its supply system. Efforts are on to ensure greateravailability of Amul ice-cream at pushcarts and small outlets. The companyfeels that availability is the most important factor in ice cream sales. Thus,Amul ice-cream can be found in just around the corner shops, local STDbooths, local kirana shops, chemists and bakers, who stock the ice-cream indeep freezers.The idea is to ensure visibility and availability, which more often than notensures a sale as ice-cream consumed out of home is most often animpulsive purchase. Amul expects to clock sales of 34 million litres duringthe current year and the accent will be on offering value for moneyproducts. 8
  9. 9. The new ice-creams which are launched by Amul this year includes a mega-bite almond cone (the largest volume cone in the country), an orange ice-cream (Santra Mantra), a Bouncer ice-cream with nuts and essentialproteins, vitamins and minerals for the growing children, a cheese ice-creamand a sundae in cone for kids in different variants.Amul ice cream is positioned as real ice-cream made from real milk cream,while HLLs Kwality Walls is made from vegetable oil and its items aredubbed as Frozen Deserts.Last year, Amul ice cream made its entry into New Delhi, Indias biggestice-cream market, where its anti-compete agreement with Mother Dairy hasexpired. Amul has been sourcing its entire ice-cream requirement for thenorthern market (including Delhi) from its own Gandhinagar plan 9
  10. 10. INDUSTRIESOVERVIEWGujarat Cooperative Milk Marketing FederationGCMMF: An Overview –Gujarat Cooperative Milk Marketing Federation (GCMMF) is a India’slargest food product marketing organization. It is a state level apex body ofmilk cooperatives in Gujarat, which aims to provide remunerative returns tothe farmers and also serve the interest of consumers by providing qualityproducts, which are good value for money.Members: 12-district cooperative milk producers’ UnionNo. of Producer Members 2.23 millionNo. of Village Societies: 10,852Total Milk handling capacity: 6.7 million litres per day 10
  11. 11. Milk collection (Total - 2001-02): 1.67 billion litresMilk collection (Daily Average 2001- 02): 4.59 million litresMilk Drying Capacity: 510 metric Tons per dayCattlefeed manufacturing Capacity: 1450 Mts per day 11
  12. 12. Sales Turnover Rs. (million) US$ (million)1994-95 11140 3551995-96 13790 4001996-97 15540 4501997-98 18840 4551998-99 22192 4931999-00 22185 4932000-01 22588 5002001-02 23365 5002002-03 27475 575AMUL means "priceless" in Sanskrit. A quality control expert in Anandsuggested the brand name “Amul,” from the Sanskrit “Amoolya,” Variants,all meaning "priceless", are found in several Indian languages. Amulproducts have been in use in millions of homes since 1946. Amul Butter,Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, AmulChocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk andAmulya have made Amul a leading food brand in India. (Turnover: Rs. 25 .) 12
  13. 13. billion in 2002). Today Amul is a symbol of many things. Of high-qualityproducts sold at reasonable prices. Of the genesis of a vast co-operativenetwork. Of the triumph of indigenous technology. Of the marketing savvyof a farmers organization. And of a proven model for dairy development. 13
  14. 14. 50 years after it was first launched, Amuls sale figures have jumped from1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No otherbrand comes even close to it. All because a thumb-sized girl climbed on tothe hoardings and put a spell on the masses.Dairy giant Gujarat Co-operative Milk Marketing Federation Ltd.(GCMMF) recorded 22 per cent growth in turnover during the first half ofthe current financial year with milk products sales amounting to Rs 1,000crore.GCMMF sold 10.5 crore litres of milk in pouches during April to September1998 under its well-known brand `Amul."GCMMFs financial performance during this period has been even moreattractive with a growth of 25 per cent. However, this wont be reflected inour balance sheet. The multinationals would have shown it as glitteringprofit, but we are working on our mandate of returning any surplus back tograss-root village co-operative milk society members by periodic pricedifferentials for their production. 14
  15. 15. With 12 processing units (unions), each located at the district-level,GCMMF today has a membership of 20 lakh farmers, who belong to 10,000village dairy co-operative societies.GCMMF, the largest producer of dairy products in Asia, has over 26products ranging from `Amul Butter, `Amul Spray, `Amul Lite, `AmulCheese to `Amul Mithaimate, `Amul Mithaee Gulabjamun and ‘AmulFrozen Pizza’.The co-operative is launching wide range of cheese including the exoticEmmental from the Swiss Alps, soft Mozzarella from Italy and slices ofprocessed Cheddar cheese.GCMMF has also come out with `Amul cheese powder used in soups,salads, dressings and hoard of other fast foods.The federation has been able to capture 50 per cent of the ice-cream marketin the state in a short span of one year.`Amul Ice creams are also now available in 12 states and two unionterritories and enjoy 35 per cent to 40 per cent market share.The `Amul Ice-cream strategy bordered on its punch line, `real milk, realice-cream`Amul Ice creams were smoother and creamier than its competitors as fatused was pure milk, which was more expensive and not vegetable fat. 15
  16. 16. GCMMF, which has 45 sales offices, plans to make these products"available all over the country".The federation has a distribution network comprising more than 2,700wholesale dealers and over five lakh retail outlets. DISTRIBUTION NETWORK Amul Baroda Dairy C&F Agencies Sub Distributor Retailers Retailers 16
  17. 17. Amul manufactures its ice cream in Baroda dairy plant. Its supplies rawmaterial like milk from different places of Gujarat to Baroda dairy. When icecream is fully prepared and packed than it’s transferred to different states viaair-conditioned trucks. The C&F agents store it in big deep freezer rooms.From C&F the ice cream is delivered to different distributors. And fromdistributes the ice cream is delivered to different retailers and sub retailers.And finally the consumers purchased from the retailers.Amul would provide the design and specifications for renovation of theoutlet. It will provide consultancy if required and will also inspect the workof the contractor.Amul will help in assessing the business potential of the shop and will helpin making the business plan.Amul will guide you in purchase of various equipment. It will also help youin choosing between the various sizes and types available based on itsexperience of the business. 17
  18. 18. Amul will provide the design and/or supplier of the uniform for the parlourboys.Amul will provide advice and consultancy for inauguration and operation ofyour shop, as well as for attracting customers and increasing sales.Amul will provide signages and glowsign to the outlet at its own cost. Thedesign will be standard and such as to identify your outlet as a "a directoutlet of the company", which stores and sells the entire range of Amulproducts.Amul shall give target based additional margin on its products for the firstyear of operation upto a maximum of 1% on dairy products and 2% on ice-cream.Amul shall help in the inauguration by providing free ice-cream worth Rs.1000. The other expenses of the inauguration shall be borne by you.Amul shall give 1000 pamphlets specially printed for your shop fornewspaper insertion in the neighborhood to generate awareness about youroutlet.Amul shall design and implement in-shop promotions based on requirement.Amul shall keep you in its list of preference for all promotions schemes,launch of new products, etc.List of Products Marketed: 18
  19. 19. Breadspreads: • Amul Butter • Amul Lite Low Fat Breadspread • Amul Cooking ButterCheese 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 PizzaMithaee Range (Ethnic sweets): • Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) 19
  20. 20. • Amul Amrakhand • Amul Mithaee Gulabjamuns • Amul Mithaee Gulabjamun Mix • Amul Mithaee Kulfi Mix • Avsar LadoosUHT Milk Range: • Amul Shakti 3% fat Milk • Amul Taaza 1.5% fat Milk • Amul Gold 4.5% fat Milk • Amul Lite Slim-n-Trim Milk 0% fat milk • Amul Shakti Toned Milk • Amul Fresh Cream • Amul Snowcap Softy Mix 20
  21. 21. Pure Ghee: • Amul Pure Ghee • Sagar Pure Ghee • Amul Cow GheeInfant Milk Range: • Amul Infant Milk Formula 1 (0-6 months) • Amul Infant Milk Formula 2 ( 6 months above) • Amulspray Infant Milk FoodMilk Powders: • Amul Full Cream Milk Powder • Amulya Dairy Whitener 21
  22. 22. • Sagar Skimmed Milk Powder • Sagar Tea and Coffee WhitenerSweetened Condensed Milk: • Amul Mithaimate Sweetened Condensed MilkFresh 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 MilkCurd Products: • Yogi Sweetened Flavoured Dahi (Dessert) • Amul Masti Dahi (fresh curd) • Amul Masti Spiced Butter Milk • Amul Lassee 22
  23. 23. Amul Icecreams:Royal Treat Range • Butterscotch, Rajbhog, Malai KulfiNut-o-Mania Range • Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted AlmondNatures Treat • Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh PineappleSundae Range • Mango, Black Currant, Sundae Magic, Double SundaeAssorted Treat • Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta 23
  24. 24. Utterly Delicious • Vanila, Strawberry, Chocolate, Chocochips, Cake MagicChocolate & Confectionery: • Amul Milk Chocolate • Amul Fruit & Nut ChocolateBrown Beverage: • Nutramul Malted Milk FoodMilk Drink: • Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate) • Amul Kool CafeHealth Beverage:Amul Shakti White Milk Food 24
  25. 25. Amul - Evolution of Marketing Strategy Product DevelopmentAmuls product development was driven both by the spirit of thecooperative system and profitability. Being a cattle farmerscooperative, Amul was committed to buying all the milk offered by thefarmer. The perishable nature of milk made it imperative for Amul toprocess the surplus milk and enter new product categories asproduction increased...ButterLaunched in 1955, butter was one of the first milk products offered byAmul. It was also the first time Amul successfully challenged thehegemony of an established brand. Amuls earliest competitor, Polsonhad been the monopoly milk supplier to the Bombay Milk Scheme. 25
  26. 26. Amul displaced Polson to emerge as the undisputed leader in the buttermarket...CheeseGCMMF launched processed cheese in 1959 followed by cheese powder inthe early 1970s. In the 1980s the popularity of cheese increased...Ghee, Skimmed milk powder and Baby foodAmul launched ghee (clarified butter) and skimmed milk powder in 1955.Amul Ghee was an instant success...Milk and UHT MilkAmul was the market leader in the Gujarat whole milk market with a 90%market share in 2002. Apart from supplying milk to parts of Maharashtraand Rajasthan, GCMMF also sold milk to the NDDB owned Mother Dairy 26
  27. 27. in Delhi...The idea is to ensure visibility and availability, which more often than notensures a sale as ice-cream consumed out of home is most often an 27
  28. 28. impulsive purchase. Amul expects to clock sales of 34 million litres duringthe current year and the accent will be on offering value for moneyproducts.The new ice-creams which are launched by Amul this year includes a mega-bite almond cone (the largest volume cone in the country), an orange ice-cream (Santra Mantra), a Bouncer ice-cream with nuts and essentialproteins, vitamins and minerals for the growing children, a cheese ice-creamand a sundae in cone for kids in different variants...Amul ice cream is positioned as real ice-cream made from real milk cream,while HLLs Kwality Walls is made from vegetable oil and its items aredubbed as Frozen Deserts 28
  29. 29. 29
  30. 30. PricingAmuls philosophy had all along been to deliver value for money to itscustomers. Despite being priced economically, Amul maintained its productquality... DistributionGCMMFs formidable distribution network comprised 300 stock keeping units,46 sales offices, 3,000 distributors, 100,000 retailers with refrigerators, an18,000-strong cold chain, and 500,000 non-refrigerated retail outlets... 30
  31. 31. Advertising and Sales PromotionOver the years, Amuls advertising philosophy had been "to be simple,fresh and innovative". The clean, emotion-based ads refrained fromusing hi-tech special effects, and aimed at maintaining the perfectbalance between the traditional and the modern... Looking AheadThe liberalization of the dairy industry in 1991 had seen a number ofmultinational players like Britannia, Le Bon, Dabon and Hi-Life enter thesector. 31
  32. 32. Analysts wondered whether a co-operative with limited financial meanscould stand up to the might of these MNCs, and if its low pricing strategywould continue to stay relevant. MNCs like Pizza Hut, Dominos, HindustanLever Limited and Cadbury had also become competitors. Amul had provedits detractors wrong and firmed up ambitious growth plans.. AMUL PRODUCTS. AMUL means "priceless" in Sanskrit. The brand name "Amul," from theSanskrit "Amoolya," was suggested by a quality control expert in Anand.Variants, all meaning "priceless", are found in several Indian languages.Amul products have been in use in millions of homes since 1946. AmulButter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, AmulChocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk andAmulya have made Amul a leading food brand in India. (Turnover: Rs.52.55 billion in 2007-08). 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 themarketing savvy of a farmers organisation. And of a proven model for dairydevelopment. 32
  33. 33. Bread Spreads Amul Butter Amul Lite Utterly Butterly Low fat, low Delicious Cholesterol Bread Spread Delicious Table Margarine The Delicious way to eat healthyMilk Drinks Amul Kool Amul Kool Millk Shaake 33
  34. 34. Amul Kool Kool KokoCafe A delight to Chocolate Lovers. Delicious Chocolate tasteNutramul Amul KoolEnergy Drink Chocolate MilkA drink forKids -providesenergy tosuit theneeds ofgrowing KidsAmul Kool Amul KoolFlavoured FlavouredBottled Milk Tetra PackAmul Masti Amul KoolSpiced ThandaiButtermilkAmulintroducesthe BestThirstQuenchingDrink 34
  35. 35. Powder Milk Amul Spray Infant Amul Instant Full Milk Food Cream Milk Still, Mothers Powder Milk is Best for A dairy in your your baby home Sagar Skimmed Sagar Tea Coffee Milk Powder Whitener Which is especially useful for diet preparations or for use by people on low calorie and high protein diet. 35
  36. 36. Amulya DairyWhitenerThe Richest,Purest DairyWhitener 36
  37. 37. Fresh Milk Amul Fresh Milk Amul Gold Milk This is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience. Amul Taaza Amul Lite Slim Double Toned and Trim Milk Milk Amul Fresh Amul Shakti Cream Toned Milk Amul Calci+ 37
  38. 38. Cheese Amul Pasteurised Amul Cheese Spreads Processed Cheese Tasty Cheese 100% Vegetarian Spreads in 3 great Cheese made from flavours.. microbial rennet Amul Emmental Amul Pizza Cheese Mozzarella Cheese The Great Swiss Pizza Cheese from cheese...makes Amul, has a great tasting sweet-dry flavour pizzas! and hazelnut aroma Gouda Cheese 38
  39. 39. .For Cooking Amul / Sagar Pure Cooking Butter Ghee Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience. Amul Malai Paneer Utterly Delicious Ready to cook Pizza paneer to make your favourite recipes! Mithai Mate Masti Dahi Sweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste. 39
  40. 40. Desserts Amul Ice Creams Amul Shrikhand Premium Ice A delicious treat, Cream made in anytime. various varieties and flavours with dry fruits and nuts. Amul Mithaee Gulab Amul Chocolates Jamuns The perfect gift for Pure Khoya Gulab someone you love. served piping hot. Amul Lassee Amul BasundiHealth Drink Nutramul Amul Shakti Malted Milk Health Food Drink Food made from malt Available in extract has the Kesar-Almond highest protein and Chocolate content among flavours. all the brown beverage powders sold in 40
  41. 41. India.. 41
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  44. 44. INDUSTRY SCENARIOTotal ice cream market in our country is of Rs.2000 crores in which brandedice cream market share is of Rs. 650 crores. Amul captures around 27% oftotal market share of organized sector. In 2003, Amul ice cream sales wetRs.160 crore, almost three times the Rs.55 crore sales in 1998.The ice cream consumption in Delhi is 20% of the total consumption in ourcountry. Out of which Amul captures around 30% of the Delhi market. 44
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  46. 46. INTRODUCTION TO THE PROBLEMRetailers are the one of the most important member of the distributionchannel. They are the people who provides product to the final consumers.As they have the direct touch with the consumers, so they can play a vitalrole for influencing the buyers decisions. The company should try toprovide services to the retailers in such a way that they can satisfy withthem. 46
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  48. 48. RATIONALE:The market share of Amul ice cream is increased by three times in just twoyears. The total consumption of Amul Ice- Cream in terms of rupees is Rs.30,00,000 per month in one of the agencies of Amul in Delhi. The Amul IceCream captures around 30% of the total market share in Delhi. There is animmense opportunity for the company to extend their market share. Theproject will create the opportunity for the company to capture the marketshare.SCOPE:The scope of study is to understand the problem faced by the company whileincreasing the retail outlets. With the help of this project GCMMF canincrease their outlets by analyzing the feedback given by the interviewer(including existing and non existing outlets). GCMMF can also analyze thepricing strategy followed by the rivals. By this study company will get theinformation about current competitive position of the Amul ice cream in themarket. 48
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  50. 50. PRIMARY OBJECTIVES: To increase the number of outlets of Amul icecream.SECONDARY OBJECTIVE:  To analyze the retailers perception about Amul ice cream.  To find out the competitive edge of the company over the competitors.  To analyze the market size of ice cream.  To study the consumer preference about different ice cream companies.  To study distribution channel. 50
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  52. 52. Retailing includes all the activities involved in selling goods or servicesdirectly to final consumers for personal, non-business use. A retailer or retailstore is any business enterprise whose sales volume comes primarily fromretailing.Any organization selling to final consumers – whether it is a manufacturer,wholesaler, or retailer- is doing retailing. It does not matter how the goods orservices are sold or where they are sold. Consumers today can shop forgoods and services in a wide variety of retail organizations. There are storeretailers, non-store retailers, and retailer’s organization. Perhaps the best-known type of retailers is the department store. Retail-store types passthrough stages of growth and decline that can be described as the retail lifecycle. A type emerges, enjoys a period of acceleration growth, reachesmaturity, and then declines. Older retail forms took many years to reachmaturity; newer reach maturity, whereas warehouse retail outlets reachedmaturity in 10 years. The most important retail-store types are: • Specialty store: Narrow product line with a deep assortment. • Department store: Several product lines with each line operated as a separate department managed by specialist buyers. 52
  53. 53. • Supermarket: Relatively large, low-margin, high volume, self service operation designed to serve total needs for food, and household products.The wheel-of-retailing hypothesis explains one reason that new store typesemerge. Conventional retail stores typically increase their services and raisetheir prices to cover the costs. These higher costs provide an opportunity fornew store forms to offer lower prices and less service. New store types meetwidely different consumers preferences for service levels and specificservices.Retailers can position themselves as offering one of the four levels ofservices:1. Self-services: Self-services is the cornerstone of all discounts operation. Many customers are willing to carry out their own locate-compare-select process to save money.2. Self-selection: Customers find their own goods, although they can ask for assistance. 53
  54. 54. 3. Limited services: These retailers carry more shopping goods, and customers need more information and assistance. The stores also offer services such as credit and merchandise-return privileges.4. Full services: Salespeople are ready to assist in every phase of the locate-compare-select process. Customers who like to be waited on prefer this type of store. The high staffing cost, along with the higher proportion of specialty goods and slower-moving items and the many services, resulted in high-cost retailing.5. Corporate retailing: Although many retail stores are independently owned, an increasing number are part of some form of corporate retailing. Corporate retail organizations achieve economies of scale, greater purchasing power, wider brand recognition, and better-trained employees. The major types of corporate retailing—corporate chain stores, voluntary chains, retailer cooperatives, franchises, and merchandising conglomerates. 54
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  56. 56. FOUR P’S OF THE PRODUCTPRODUCT: Amul ice cream has wide range of variety that consists of morethan hundred flavors available in the market including 20 new flavors, whichis introduced in this summer. As ice cream is an impulsive purchase item so,its sale depends mostly on availability and variety.PRICE: The price of Amul ice cream is very less compared to itscompetitors. In novelty item the price of the flavors varies from Rs.2 toRs22. The pricing strategy of Amul is, to target each income group of thesociety. The cheaper price of ice cream is meant for targeting the peoplewith low income. Along with the low income group Amul is also targetingmedium as well as the premium segment by providing different flavors atdifferent prices.PLACE: The distribution of the ice cream in Delhi is done throughexclusive Amul outlets situated in various locations. In Delhi, Amul haseleven distributors who supplies ice cream to more than 3000 outlets. Theseeleven distributors are responsible for their respective areas. 56
  57. 57. PROMOTION: Amul is a well-established brand name of GCMMF. Forpromotion of the ice cream the company gives advertisement in newspaperand magazines. It gives glow sign board to every retailers and also makeswall paintings on there request. Amul uses their punch line ---“Real milkreal ice cream” for the promotion. SWOT ANALYSIS 57
  58. 58. STRENGTH:a) Biggest sourcing base for milk and milk products in India.b) India’s best-known local Brand across all categories.c) 35% market share in the national Ice Cream market.d) Presence of a well-established distribution and delivery network for dairy products.e) Penetration pricing strategy – Amul is the price warrior in the Ice cream market and currently has a very wide range to offer for all price points.f) Kwality Walls, Amul’s main rival, has been able to extend it’s cold chain in only about 150 out of 300 class I towns. Whereas Amul has presence in almost all towns because of its already existing butter lines.g) Customer is most comfortable buying Ice Cream in the Value for Money segment and Amul is well present in this segment. 58
  59. 59. h) Amul has built up a formidable image as a brand in which generations of consumers have placed their trust. This can be used to its advantage while introduction of ice creams.WEAKNESS: a) Relationship between retailer and company is not effective. b) After sales service is not upto retailers expectation level c) Availability of all type of verity ice is not regular. d) Advertising is low profile, as the results of our survey show. Kwality Walls on the other hand is into heavy advertising and consequently, is popular. e) As per our survey, retailers list a credible Replacement policy as a factor very high on their wish list. They would be willing to make further investments only for that brand which offers replacement facilities. Amul has no replacement policy. 59
  60. 60. f) Retailers now demand freezers without having to pay any deposit. This is especially true of those retailers who already stock one or the other ice cream brandsOPPORTUNITY:a) Delhi market is not restricted to monopoly outlets. There are a significant number of retailers who are currently stocking more than two brands. This is in Amul’s favor, as earlier it had to overcome this problem in the Mumbai market.b) There is ample scope in the low priced segment as also in other categories where consumers presently are dissatisfied with the quantity being provided vis a vis the price being charged. 60
  61. 61. c) Amul has the opportunity to capture the more evolved young adults and children who are open to new products provided they meet their expectations.d) Kwality Walls is right now in an investment mode and is concentrating on expanding the market as also its reach. Amul should direct its resources towards cashing in on Walls market development.e) Distributors are dissatisfied with the margin & customer support services currently being provided in the market. This can be used to Amul’s advantage. Mother Dairy is extremely apathetic to retailers and there is a gap to be exploited.THREAT:a) New companies are entering the ICE industry.b) Local manufacturers are growing at alarming ratec) Good advertisement campaign from competitors. 61
  62. 62. d) The consumers have very well received Kwality Walls product differentiation strategy and Mother Dairy is also pushing up its advertising pitch. 62
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  64. 64. RESEARCH DESIGN:The research design prepared with great care keeping in mind the researchobjective. The project was divided into two parts—parts ‘A’, part ‘B’.RESEARCH APPROACH:In the part ‘A’ the research was conducted by visiting to the various nonexisting outlets of Amul and asking them about Amul ice cream and whetherthey would like to keep Amul ice cream. I also told them about the Amul’spromotional scheme and various superseding factors.In the part ‘B’ the research was conducted by visiting to the various existingAmul’s outlets and knew about the replacement of old and unsold stock andservices of Amul.RESEARCH INSTRUMENTS:The primary data collected for this study was done through detailed marketsurvey by means of unstructured interaction. The secondary data is collectedthrough Internets, Material provided by company, e.t.c.SAMPLE PROCEDURE:The procedure adopted for sampling was on the basis of judgmentalsampling. 64
  65. 65. HYPOTHESIS:Ho1 --- There is no significance difference between the price of Amul Ice-cream and it’s competitors.Ho2 --- There is no significance difference between the product quality ofAmul Ice –cream and it’s competitors.Ho3 --- There is no significance difference between the company’s schemeof Amul ice – cream and it’s competitors.Ho4 --- There is no significance difference between the services provided byAmul and it’s competitors.Ho5 --- There is no significance difference between the availability of AmulIce – cream and it’s competitors.Ho6 --- There is no significance relation between the taste of Amul icecream and its competitors.Ho7 --- There is no significance difference between the packaging of Amulice cream and its competitors. 65
  66. 66. Ho8 --- There is no significance between the flavor of Amul ice cream andits competitors.Ho9 --- There is no significance difference between the brand image ofAmul ice cream and its competitors.LIMITATIONS: The study limit to Central Delhi Due to unavailability of proper conveyance facility, it was really hard to cover the market under a scorching sun. In many residential blocks shops located in corners of by lanes were difficult to locate. The time duration of two months was short for the completion of all activities. Being a perishable product no sample could be shown as demanded by many prospecting clients.1 66
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  69. 69. PROJECT ACTIVITY SEQUENCING StartDeveloping open and Collecting some structured secondary questionnaire data/informatio n from various sourcesConduct survey in south Delhi by Study the informationCompile and analyze the collected information Do report writing Final Report 69
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  72. 72. This table shows the interested to take retailership for ice-cream Dealers Number YES NO 100 67 33 Percentage People Like Keep ICE-Cream 33% 67% Interested Not InterestedFrom the above graph it is found that 67% retailers are interested in keepingice cream. Only 33% retailers are not interested. 72
  73. 73. If yes, which brand would you like to go for:Retailers Amul Kwality Mother dairy Cream bell 100 40 17 20 23 23% 40% 20% 17% Amul kwality M.D cream bellThe graph shows that out of hundred percent retailers 40% retailers werefavored Amul ice cream. After Amul the most favored ice cream is creambell. Cream bell is second most important because its new in market withhigher rate of margin and less price. 73
  74. 74. Preference given by the retailers to the following companies on the given quality: Amul Kwality Mother dairy Cream bell Price 123 83 110 119 Margin 115 84 80 127 Quality 135 128 138 90 Variety 123 100 97 95 Pack 127 139 111 106Availability 111 121 115 108 Taste 121 145 140 104C. Scheme 119 91 86 137 Services 92 138 127 137 74
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  76. 76. Comparison of preference given by the retailers to the different Ice – cream-making companies:160140120100 80 60 40 20 0 Price Margin Quality Variety Pack. Avail. Taste CS Services Amul Kwality M.Dairy C.Bell From the above graph it is conclude that Amul is leading in the price and variety preference but giving equivalent competition to other companies in quality, packaging and availability. Amul is way behind in terms of services. 76
  77. 77. (ANALYSIS OF NON-EXISTING OUTLETS)Percentage of people likes to keep deep freezer provided by thecompany: Retailers Yes No 100 87 13 13% 87% Yes NoHere graph shows that the most of the retailers wants to keep deep freezerprovide by the company. 77
  78. 78. Mode of payment for deep freezer: Retailers C.D.P Installment Security 100 17 40 43 17% 43% 40% C.D.P Installment SecurityThe above graph shows that most of the retailers want to keep deep freezeron either installment basis or security basis. Only 17% retailers areinterested for cash down payment. 78
  79. 79. Relationship on the basis of: Retailers Trial basis Long term Short term 100 23 77 0 0% 23% 77% Trial basis Long term Short termThe above graph shows that the most of the retailers wants to keeprelationship with Amul for long-term basis. 79
  80. 80. (ANALYSIS OF EXISTING AMUL’S OUTLETS)Do you keep Amul ice cream? Retailers Yes No 100 90 10 10% 90% Yes NoAbout 90% of the existing Amul outlets are still keeping Amul ice cream.Due to the lack of proper sales services 10% of the existing outlets are nowswitch over to other companies. 80
  81. 81. From where you bought your deep freezer: Retailers Amul Others 100 80 20 20% 80% Amul OthersMost of the existing outlets purchased deep freezer from Amul. The graphshows that 80% of the Amul outlets purchased their deep freezer from Amul. 81
  82. 82. Mode of purchase: Retailers Cash down Installment Security 100 74 3 23 23% 3% 74% Cash down Instalm. securityThe graph shows that the 74% of existing retailers purchased their deepfreezer form Amul by paying cash. Only 23% of the retailers who have theirshops on prime location got deep freezer on security basis. 82
  83. 83. Which pack of ice cream is sold most?Retailer Cups Cone Fundoo Candies/Bar Family/ Party s pack 100 25 30 15 20 10 30 30 25 25 20 20 15 15 10 10 5 0 Cups Cone Fundoo Candies Party packThe graph shows that the most saleable flavor is cone. Party pack and Cupsare also sold in bulks. The flavors that are not sold much are Fundoo andCandies. 83
  84. 84. At what period of time customers comes in bulk: Retailers Morning Afternoon Evening Night 100 0 30 50 20 50 50 45 40 30 35 30 20 25 20 15 10 5 0 0 Morning Afternoon Evening NightIn the evening from 6 p.m to 9 p.m the sale of ice cream reached to itsoptimum level. The ice cream is not sale much in the morning period. 84
  85. 85. According to the retailer the flavour has maximum sale:RETAIL VANIL CHOCOL BUTTE PINAPPLE/M KAJU/PIS ANJEER/LITER LA ATE R ANGO TA CHI SCOTC H 100 25 15 30 15 10 5 30 30 25 25 20 15 15 15 10 10 5 5 0 VANILLA BUTTER SCITCH KAJU/PISTA 3-D Column 1 The graph shows that the most demanded flavor is vanilla. After that Butter Scotch gets the position. Anjeer and Litchi are rarely sold in the market. 85
  86. 86. Preference given to attributes:RETAILERS PRICE MARGIN QUALITY VARIETY PACK. AVALB. TAST100 7 23 18 6 17 6 13 10 7 13 23 6 17 18 6 PRICE MARGIN QUALITY VARIETY PACK AVAIL. TASTE C.SThe above graph suggests that the quality of Amul ice cream is admiredmore. The price and packaging also count. The problem area is theavailability of ice cream. The retailer says that all the flavors are notavailable on demand. 86
  87. 87. ONE-WAY ANOVA TEST:As in our research the number of independent variables are more than two sohere we are using one-way ANOVA. The number of independent variable isfive here. The independent variables are Amul, Kwality,,Mother Dairy,Cream Bell and Vadilall. The dependent variables are price, margin, quality,availability, company scheme, flavour, packaging and brand image.The following data is calculated on the basis of one-way ANOVA with theof SPSS software. The software gives the result very quickly. We have toput the independent variable in variance one column and dependent variablein variance two column. And after giving the right command we can get theanswer.Here is one of the value for product quality attribute is calculated. Thedegree of freedom four is obtained by subtracting one from independentvariable that is five. D.o.f 145 obtained by subtracting five from hundredfifty dependent variables. Sum of d.o.f Mean square F Significance squares Between 316.627 4 79.157 36.557 0.00 the group Within the 313.967 145 2.167 group Total 630.593 149 87
  88. 88. COMPARISON OF TABLE VALUE WITH CALCULATED VALUE.Criteria Calculated value Table value Acct./Reject.Prod. Quality 36.557 3.32 RejectedPrice 39.355 3.32 RejectedServices 33.522 3.32 RejectedSchemes 29.314 3.32 RejectedAdvertisement 30.777 Rejected 3.32Flavor 12.538 Rejected 3.32Packaging 13.334 3.32 RejectedBrand Image 37.340 3.32 RejectedSince the table value is less than the calculated value, so here all thehypotheses are rejected. It means that, there is a significance differencebetween the preferences given by the retailers to the different attributes ofAmul ice cream and its competitors. 88
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  90. 90. FINDINGSAfter analyzing all the data given by shopkeepers we found certain keyfindings that is very important for our project.1.Most of the retailers are interested for keeping Amul Ice Cream.2. Retailers are not satisfied with the services provided by the company. 3.Most of the retailers like to keep deep freezer on installment basis andsecurity basis.4.Cone and Party packs are sold most.5.The sale of ice cream is higher in evening.6.The full varieties of flavor are not available on regular basis.7. Prices of Amul ice cream are almost as par customers need.8. Margin in Amul ice cream is very high.9. People were highly satisfied with product quality of Amul.10. Although Amul has opened numerous outlets it is seen that distributorsare finding it 90
  91. 91. difficult to deliver supplies in the stipulated time leading to retailer inconvenience.11. It was found that many deep freezers had developed technical snags andservice personal was late in rectifying them. This created a negative rapport inmind of the retailers.12. Retailers are unsatisfied with the replacement of unsold Amul ice cream.13. Distributors could not provide all type of varieties because of less stock.14. Other companies are providing deep freezers at law security whichattract the retailers and create threat for HADF scheme. 91
  92. 92. RECOMMENDATION:1) Relationship with retailers and company should be kept under a close watch2) Salesmen should be given the responsibility to handle the retailer’s grievances3) Orders by the retailers should be executed in a proper manner to avoid irregular availability.4) Low security and easy installment should be given on deep freezer.5) Promotion activities should take into consideration in two different ways a) Company should associate themselves with social events, b) Company should use electronic as well as print media for their advertisement.6) Company should give special offers to retailers frequently.7) Company should expand their business throughout the small towns.8) Company should open exclusive Amul parlors and outlets in big shopping mouls for promotion in higher segment. 92
  93. 93. 9) There have been a lot of complaints about replacement policy of Amul. Amul should try to improve its replacement policy and make it somewhat liberal.10) Innovative schemes like Priviledge cards giving discount on successive purchases may be introduced to make a customer brand loyal to Amul. 93
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  95. 95. CONCLUSIONThere is an ample scope for ice cream making companies do progress in thislus green environment. The market size is increasing day by day and thedemand for new flavors are arising. The companies like HLL, Cream Bell,Vadilall, and Mother Dairy are trying to capture more market share withtheir new ideas and plan. As per Amul is concern the company shouldbecome liberal on his policies. Amul market share in central Delhi is highbut for maintaining the growth rate it should give the retailers more facilitiesfor opening of new outlets and running successfully. The company alsoneeds a proper distribution network for availability of products at demand. 95
  96. 96. REFERENCES 1 BOOKS. • Marketing management by Philip Kotler Published by Pearson Education Pvt. Ltd, Indian Branch,12th edition , • Hunger J.D &Wheelen T.L ,Essentional of strategic Management ,Prentice-Hall,3rd edition,2004,pp-81-94 • Wheelen T.L & Hunger J.D-Concept in strategic Management & Business policy,Pearson education,9th edition , 2007,pp-135-145 2 INTERNET. • • • • 3 MAGAZINES. • India today, April 19, 2009, Page no-36 • INSIGHT-The Consumer Magazine, May-June 2009, Page no – 6-12 96
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  98. 98. Questionnaire (For New Outlet)CONSUMER DETAILS: Name: Address: Contact Number: 1. Have you ever through of expansion of your business in terms of ice - cream? Yes No If no why_______________________________________________________ 2. If yes, which brand would you like to go for? i) Amul ii) Kwality iii) Mother Dairy iv) Cream Bell 3. Rank according to your preference. High Moderate Low Amul Kwality Mother Dairy Cream Bell 4. What is your preference about following companies on the given qualities ?(1-5) Amul Kwality Mother Dairy Cream Bell i) Price 98
  99. 99. ii) Margin iii) Quality iv) Variety v) Packaging vi) Availability 5. Would you like to have deep freezer provided by the company Yes No 6. If No, why_____________________________________________________ __ 7. If yes, then which mode of payment are you looking for. i) Cash down payment ii) Installment iii) Security 8. Would you like to have retailership on? i) Trial basis ii) Long term iii) Short termDate: Signature:______________ 99
  100. 100. (FOR EXISTING OUTLETS)Name: ______________________________________Address: ____________________________________Contact No. __________________________________Dear Customer,This survey is made for the purpose of my Summer Project and doesn’t haveany commercial impact. 1. Do you keep Amul ice cream? a. Yes b. No If no than why ________________________________________________ 2. How long you are keeping Amul ice cream? a. Less than six months b. 6 to 12 months c. 12 to 18 months d. more than 18 months 100
  101. 101. 3. What is the sales turnover from day one? a. 1st 6th months__________________ b. between 6 to 1 year______________ c. 1 to 2 year_____________________ d. 2 to 3 years_____________________4. Form where you brought your deep freeze? a. from Amul _________ b. other source ( Please specify)_______________________5. On which basis you procured your Deep Freezer? a. Cash down payment:___________________________ b. Installment:__________________________________ c. Security:____________________________________ d. Other:______________________________________6. How many brands you keep?__________________________________________________________________________________________________________________________7. How many customers are looking for Amul Ice cream (percentage)? 101
  102. 102. 1 - 10 10 - 20 20 – 30 30 – 40 40 and above 8. According to which brand of Ice Cream has maximum sales.Brand Rank ReasonAmulKwality wall’sVadilalMother dairyCream bell 9. According to you which flavour of Ice-cream has maximum sales? Flavour (Rank them at a scale of 1 - 5) a. Vanilla b. Strawberry c. Chocolate d. Butter Scotch e. Mango/Pineapple/Orange f. Kaju/Pista/Kessar g. Anjeer/Litchi Do you feel color of the Ice Cream affect its demand? Yes No 102
  103. 103. If ‘Yes’ then which color _________________________10.Which flavors are mostly preferred under Family/Party Pack? ___________________________________________________11.Which pack of Ice Cream is most sold? (rank at a scale of 1 - 5) a. Cups b. Cone c. Fundoo d. Candies/Bar e. Family/Party Pack12.Please grade different companies on the following attributes in context of ice Cream Scale on the following basis: (5 as Very good and 1 as Very Poor) Very Good Good Normal Poor Very PoorAttributes Brand Names 103
  104. 104. Kwality Mother Cream Amul Walls Vadilal Dairy BellProductQualityPriceServiceSchemesAdvertisingBrandImageFlavorsPackingTotal13.At which period of time customers comes in bulk? Morning Afternoon Evening Night14.Any suggestion or observation to bring more sales of Amul Ice Cream____________________________________________________________Date: Signature:_______________ 104
  105. 105. Commercial Terms & Condition• The above price (indicated in col. 2 & 3) are inclusive of Excise Duty and Sales Tax.• The prices are on FOR basis.• Transportation charges from Dadra to all courier location are included in the above price.• For other locations delivery will be free upto 20kms. From the nearest branch of courier.• For outside 20kms, delivery charges will be extra @ Rs. 7/- per km. Up and down on per unit basis.• All entry tax and octrol if any will be extra as applicable.• The above prices are inclusive of stabilizer prices.• Charges for Five-year warranty are included in the above prices. • 100% payment in advance from the retailers in the form of DD drawn in favour of Voltas Limited – Hyderabad Unit and payable at Hyderabad for Dadra Billing and at New Delhi for local billing. 105