A project report on distribution channel and demand of amul beverages in hubli

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A project report on distribution channel and demand of amul beverages in hubli

  1. 1. To study the distribution channel and Demand of Amul Beverages in HubliBeverage Industry: Structure of Beverage Industry: Beverages Water Flavored Non-Alcoholic Alcoholic Milk Hot Juices Soft Wine Beer Distilled Beverages Drinks spiritWater:Despite the fact that most beverages, including juice, soft drinks, and carbonated drinks,have some form of water in them; water itself is often not classified as a beverage, andthe word beverage has been recurrently defined as not referring to water.Essential to the survival of all organisms, water has historically been an important andlife-sustaining drink to humans. Excluding fat, water composes approximately 70% of thehuman body by mass. It is a crucial component of metabolic processes and serves as asolvent for many bodily solutes. Health authorities have historically suggested at leasteight glasses, eight fluid ounces each, of water per day (64 fluid ounces, or 1.89 litres),and the British Dietetic Association recommends 1.8 litres. The United StatesBabasabpatilfrepptmba.com Page 1
  2. 2. To study the distribution channel and Demand of Amul Beverages in HubliEnvironmental Protection Agency has determined that the average adult actually ingests2.0 litres per day.Distilled (pure) water is rarely found in nature. Spring water, a natural resource fromwhich much bottled water comes, is generally imbued with minerals. Tap water,delivered by domestic water systems in developed nations, refers to water piped to homesthrough a tap. All of these forms of water are commonly drink, often purified throughfiltration.Alcoholic beverages:An alcoholic beverage is a drink containing ethanol, commonly known as alcohol, although in chemistry the definition of an alcohol includes many other compounds. Alcoholic beverages, such as wine and beer, have been part of human culture and development for 8,000 years.Non-alcoholic Beverages: Juice-Orange juiceBabasabpatilfrepptmba.com Page 2
  3. 3. To study the distribution channel and Demand of Amul Beverages in HubliJuice is a liquid naturally contained in fruit or vegetable tissue. Juice is prepared bymechanically squeezing or macerating fresh fruits or vegetables without the applicationof heat or solvents. For example, orange juice is the liquid extract of the fruit of theorange tree. Juice may be prepared in the home from fresh fruits and vegetables usingvariety of hand or electric juicers. Many commercial juices are filtered to remove fiber orpulp, but high pulp fresh orange juice is marketed as an alternative. Juice may bemarketed in concentrate form, sometimes frozen, requiring the user to add water toreconstitute the liquid back to its original state (Generally, concentrates have anoticeably different taste than their comparable "fresh-squeezed" versions). Other juicesare reconstituted before packaging for retail sale. Common methods for preservation andprocessing of fruit juices include canning, pasteurization, freezing, evaporation and spraydrying.Popular juices include but are not limited to apple, orange, grapefruit, pineapple, tomato,mango, carrot, grape, cranberry and pomegranate. It has become increasingly popular tocombine a variety of fruits into single juice drinks.Milk:Milk is an opaque white liquid produced by the mammary glands of female mammals(including monotremes). It provides the primary source of nutrition for newborns beforethey are able to digest other types of food. The early lactation milk is known ascolostrum, and carries the mothers antibodies to the baby. It can reduce the risk of manydiseases in the baby. The exact components of raw milk varies by species, but it containssignificant amounts of saturated fat, protein and calcium as well as vitamin C.Babasabpatilfrepptmba.com Page 3
  4. 4. To study the distribution channel and Demand of Amul Beverages in HubliSoft drinks:The name "soft drink" specifies a lack of alcohol by way of contrast to the term "harddrink" and the term "drink", the latter of which is nominally neutral but often carriesconnotations of alcoholic content. Beverages like colas, sparkling water, iced tea,lemonade, squash, and fruit punch are among the most common types of soft drinks,while hot chocolate, hot tea, coffee, milk, tap water, alcohol, and milkshakes do not fallinto this classification. Many carbonated soft drinks are optionally available in versionssweetened with sugars or with non-caloric sweeteners.Hot beveragesA cup of coffee • Hot beverages, including infusions. Sometimes drunk chilled. o Coffee-based beverages  Cappuccino  CoffeeBabasabpatilfrepptmba.com Page 4
  5. 5. To study the distribution channel and Demand of Amul Beverages in Hubli  Espresso  Café au lait  Frappé  Flavored coffees (mocha etc.)  Latte o Hot chocolate o Hot cider  Mulled cider o Glühwein o Tea-based beverages  Flavored teas (chai etc.)  Green tea  Pearl milk tea  Tea o Herbal teas o Roasted grain beverages (Postum etc.)OtherSome substances may either be called food or drink, or accordingly be eaten with a spoon or drunk, depending on solid ingredients in it and on how thick it is, and on preference: • Soup • YogurtSoupSoup is a food that is made by combining ingredients such as meat, vegetables orlegumes in stock or hot/boiling water, until the flavor is extracted, forming a broth.Babasabpatilfrepptmba.com Page 5
  6. 6. To study the distribution channel and Demand of Amul Beverages in HubliTraditionally, soups are classified into two broad groups: clear soups and thick soups.The established French classifications of clear soups are bouillon and consommé. Thicksoups are classified depending upon the type of thickening agent used: purées arevegetable soups thickened with starch; bisques are made from puréed shellfish thickenedwith cream; cream soups are thickened with béchamel sauce; and veloutés are thickenedwith eggs, butter and cream. Other ingredients commonly used to thicken soups andbroths include rice, flour, and grain.YoghurtCacık, a Turkish cold soup yoghurt variety.Yoghurt or yogurt, less commonly yoghourt or yogourt (see spelling below), is a dairyproduct produced by bacterial fermentation of milk. Fermentation of the milk sugar(lactose) produces lactic acid, which acts on milk protein to give yoghurt its texture andits characteristic tang. Soy yogurt, a dairy-yogurt alternative, is made from soy milk.BeveragesWith the domestic dairy sector slated to cross Rs 500,000 crore in revenues by 2011, milkseems to have found flavor with FMCG majors. These companies are trying to developniche categories to milk in the money.Coca-Cola and PepsiCo have already announced plans to enter the milk-based beveragessegment in the country. Reliance Retail, which has entered the diary segment with DairyPure, its milk brand, may also expand into niche categories. Industry observers believeBabasabpatilfrepptmba.com Page 6
  7. 7. To study the distribution channel and Demand of Amul Beverages in Hublithat Bharti Retail may also be working its way towards marking an entry into the dairyspace.“Going by the changing preference of consumers for healthier options, this category islikely to grow bigger in the coming years,” says Anand Shah, the retail and FMCGanalyst at Angel Broking. According Dairy India 2007 estimates, the current size of theIndian dairy sector is Rs 250,000 crore and has been growing at a rate of 5 per cent ayear.At present, the Rs 500 crore ready-to-drink flavoured milk category makes up for thelargest chunk of the milk beverages market. The main players in the category includeIndian dairy majors Gujarat Cooperative Milk Marketing Federation (GCMMF) andMother Dairy, along with Hershey, Nestle India and Amrit Food.GCMMF has a wide range of flavoured milk options under the Amul brand, whichincludes Amul Cool, Kool Koko and Cool Cafe, while Mother Dairy has Chillz on theshelf in the category. Nestle also introduced Milkmaid Funshakes last year.“The liquid milk and allied products category continues to be our main focus since milkconsumption is very high in the country,” R Sodhi, chief general manager, GCMMF,said.While Amul, with its health drink Stamina, is the only player in the whey-based drinkcategory, lassi has caught the fancy of many, leading to innovations like probiotic lassi.“Lassi is a very important category in our overall dairy portfolio. We have been growingat a rate of 40 per cent in this category over the last few years,” Paul Thachil, CEO,Mother Dairy Fruits & Vegetable, said.When sales of carbonated soft drinks began to lose their fizz around the world, soft drinkcompanies enteredBabasabpatilfrepptmba.com Page 7
  8. 8. To study the distribution channel and Demand of Amul Beverages in Hublithe milk-based drink domain. Pepsi launched chocolate milk under the SoBe brand andPepsi’s joint venture with Starbucks rolled out Frapuccino, a refrigerated milk coffeebeverage. Coca-Cola, on the other hand, partnered Nestle USA’s beverages division todevelop Choglit, a skim milk-based chocolate-flavoured drink.However, starting the milk beverage business may not be simple. “For a new dairy set-up, backward integration would be the biggest challenge. Setting up procurement,processing and production lines are time-consuming activities and a new company wouldneed to invest significantly to achieve these ends. A stable set-up can only be achievedover a period of 10 to 20 years,” Sodhi adds.Beverage firms to flood market with health drinksThis summer, the beverages market will move a little more away from its carbonateddrinks. Stretching the health and wellness plank, beverage makers have lined up five-sixnew health drinks in the coming months, more than in any other category.Health drinks such as Ribena, Lucozade and X-35 Body fuel may soon become thehousehold names, as PepsiCo, Coca-Cola, Amul and GlaxoSmithkline are planning tointroduce these drinks."The penetration levels of aerated drinks in India are quite low compared with otherdeveloping and developed markets. Carbonates are expected to register relativelymoderate volume and value growth as consumers are increasingly opting for healthierbeverages such as fruit juices and fruit-based drinks, and even bottled water," saidHarminder Sahni, managing director of Technopak Advisors, a retail consultancy.Thus, the Rs 7,200-crore carbonated drinks category are expected to face the heat of therising competition this summer from categories falling under the health umbrella. Atpresent, these categories are juice and juice-based drinks, energy and sports drinks,malted beverages, probiotic drinks and bottled water.Babasabpatilfrepptmba.com Page 8
  9. 9. To study the distribution channel and Demand of Amul Beverages in HubliPepsiCo India is eyeing a larger share of the Rs 1,200-crore juice and juice-based drinksmarket. "These drinks are the fastest-growing category in the beverages market and over50 per cent of the volume is to come from the category this year," said Sanjiv Chadha,chief executive officer, PepsiCo India.The company is also planning to expand its juice drink Tropicana Twister in three moreflavours this year. It is also working towards increasing its share of the drinking watermarket.Coca-Cola too is widening its portfolio. "Our entire brand portfolio has been designed tosatisfy the various needs of the consumers -- be it hydration, energy, enjoyment or simplyhaving fun. As part of the same endeavor, we are exploring a wide variety of beverageopportunities such as juice and juice-based drinks, energy and sports drinks, flavoredwater," said Atul Singh, president & CEO, Coca-Cola India.According to an industry analyst, the gross margin in the fruit beverages and the bottledwater categories are high, which is incentive enough for beverage makers to strengthentheir portfolios.GlaxoSmithKline Consumer Health Care is tempted to enter the category. Zubair Ahmed,managing director, said: "We plan to bring in Lucozade Sport for athletes and Ribena - aVitamin C-based fruit drink into the market soon. However, there are regulatorychallenges at present and the stability of products is to be tested."Home-grown FMCG company Dabur has launched a malted food drink, Chyawan Junior,and plans to expand its Real juices and Real Twist portfolio.Yakult Danone India is busy nurturing the newest kid on the beverage block, probioticdrinks. The nascent category has already struck a chord with the Indian consumer tobecome a Rs 200-crore market. Dairy companies such as Amul and Mother dairy toohave entered this segment with probiotic lassi.Babasabpatilfrepptmba.com Page 9
  10. 10. To study the distribution channel and Demand of Amul Beverages in Hubli Company overview: Type Cooperative Founded 1946 Headquarters Anand, India Chairman, Gujarat Co-operative Milk Key people Marketing Federation Ltd. (GCMMF) Industry Dairy Products See complete products listing. Template:Revenue$1 billion USD (in 2006- Revenue 07) Employees 2.41 million milk producers Slogan The Taste of India Website http://www.amul.com/Amul (Anand Milk-producers Union Limited), formed in 1946, is a dairy cooperativemovement in India. It is a brand name managed by an apex cooperative organisation,Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today isjointly owned by some 2.6 million milk producers in Gujarat, India. It is based in Anandtown of Gujarat and has been a sterling example of a co-operative organizations successin the long term. The Amul Pattern has established itself as a uniquely appropriatemodel for rural development. Amul has spurred the White Revolution of India, which hasmade India the largest producer of milk and milk products in the world. It is also theworlds biggest vegetarian cheese brand.Amuls product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate,ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others.In January 2006, Amul plans to launch Indias first sports drink Stamina, which will becompeting with Coca Colas Powerade and PepsiCos Gatorade.Amul is the largest food brand in India and worlds Largest Pouched Milk Brand with anannual turnover of US $1050 million (2006-07) .Currently Amul has 2.6 million producermembers with milk collection average of 10.16 million litres per day. BesidesIndia, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,Australia, China, Singapore, Hong Kong and a few South African countries. Its bid toBabasabpatilfrepptmba.com Page 10
  11. 11. To study the distribution channel and Demand of Amul Beverages in Hublienter Japanese market in 1994 had not succeeded, but now it has fresh plans of floodingthe Japanese markets. Other potential markets being considered include Sri Lanka.“Dr Verghese Kurien, the chairman of the GCMMF, is recognised as the manbehind the success of Amul”.HistoryAmul was formally registered on December 14, 1946. The brand name Amul, sourcedfrom the Sanskrit word Amoolya, means priceless. It was suggested by a quality controlexpert in Anand. Some cite the origin as an acronym to (Anand Milk Producers UnionLimited).The Amul revolution was started as awareness among the farmers. It grew and maturedinto a protest movement that was channeled towards economic prosperity.Situation of farmers:Over five decades ago, the life of an average farmer in Kheda District was very muchlike that of his/her counterpart anywhere else in India. His/her income was derivedalmost entirely from seasonal crops. The income from milk buffaloes was undependable.Milk producers had to travel long distances to deliver milk to the only dairy, the PolsonDairy in Anand – often milk went sour, especially in the summer season, as producershad to physically carry milk in individual containers. Private traders and middlemencontrolled the marketing and distribution system for the milk. These middlemen decidedthe prices and the off-take from the farmers by the season. As milk is perishable, farmerswere compelled to sell it for whatever they were offered. Often, they had to sell creamand ghee at throw-away prices. In this situation, the private trader made a killing.Moreover, the government at that time had given monopoly rights to Polson Dairy(around that time Polson was the most well known butter brand in the country) to collectmilk from Anand and supply to Bombay city in turn (about 400 kilometers away). Indiaranked nowhere amongst milk producing countries in the world in 1946. Gradually, therealization dawned on the farmers with inspiration from then nationalist leaders SardarVallabhbhai Patel (who later became the first Home Minister of free India) and MorarjiDesai (who later become the Prime Minister of India) and local farmer, freedom fighterand social worker Tribhovandas Patel, that the exploitation by the trader could beBabasabpatilfrepptmba.com Page 11
  12. 12. To study the distribution channel and Demand of Amul Beverages in Hublichecked only if they marketed their milk themselves. Amul was the result of therealization that they could pool up their milk and work as a cooperative.Setting up of Kaira District Co-operative Milk Producers Union:The Kaira District Co-operative Milk Producers Union Limited (KDCMPUL)began pasteurizing milk for the Bombay Milk Scheme in June 1948. By the end of1948, more than 400 farmers joined in more Village Society, and the quantity of milkhandled by one Union increased from 250 to 5,000 liters a day. Dr. Verghese Kurien,fed up being at the government creamery in Anand, which held no challenge, volunteeredto help Shri Tribhovandas Patel, the Chairman of KDCMPUL, in setting up a processingplant. This marked the birth of AMUL.The success of Amul was instrumental inlaunching the White Revolution that resulted in increased milk production in India. It isofficially termed as Operation Flood by Amul. The breakthrough technology of spray-drying and processing buffalo milk, developed by Mr. H.M. Dalaya, was one of the keyfactors that contributed to the Revolution.Setting Up of Gujarat Cooperative Milk Marketing Federation:In 1954, Kaira District Co-operative Milk Producers’ Union built a plant to convertsurplus milk produced in the cold seasons into milk powder and butter3. In 1958, a plantto manufacture cheese and one to produce baby food were added. Subsequent years sawthe addition of more plants to produce different products. In 1973, the milksocieties/district level unions decided to set up a marketing agency to market theirproducts. This agency was the Gujarat Cooperative Milk Marketing Federation(GCMMF). It was registered as a co-operative society on 9 July 1973.GCMMF Today:GCMMF is Indias largest food products marketing organisation. It is a state level apexbody of milk cooperatives in Gujarat, which aims to provide remunerative returns to thefarmers and also serve the interest of consumers by providing quality products, which aregood value for money. GCMMF markets and manages the Amul brand. From mid-1990sAmul has entered areas not related directly to its core business. Its entry into ice creamwas regarded as successful due to the large market share it was able to capture within aBabasabpatilfrepptmba.com Page 12
  13. 13. To study the distribution channel and Demand of Amul Beverages in Hublishort period of time - primarily due to the price differential and the brand name. It alsoentered the Pizza business, where the base and the recipes were made available torestaurant owners who could price it as low as 30 rupees per pizza when the other playerswere charging upwards of 100 rupees.In September 2007, Amul emerged as the leading Asian brand according to a survey bySynovate to find out Asias top 1000 Brands.Members: 13 district cooperative milk producers UnionNo. of Producer Members: 2.6 millionNo. of Village Societies: 12,792Total Milk handling capacity: 10.16 million litters per dayMilk collection (Total - 2006-07): 2.38 billion littersMilk collection (Daily Average 6.5 million litters2006-07):Milk Drying Capacity: 594 Mts. per dayCattlefeed manufacturing 2640 Mts per dayCapacity:Amuls sugar-free Pro-Biotic Ice-cream won The International Dairy FederationMarketing Award for 2007.Collection of milk:Every day Amul collects 447,000 liters of milk from 2.12 million farmers (manyilliterate), converts the milk into branded, packaged products, and delivers goods worthRs 6 crore (Rs 60 million) to over 500,000 retail outlets across the country.Babasabpatilfrepptmba.com Page 13
  14. 14. To study the distribution channel and Demand of Amul Beverages in HubliIts supply chain is easily one of the most complicated in the world. How do managers atAmul prevent the milk from souring?Walk in to any Amul or Gujarat Cooperative Milk Marketing Federation (GCMMF)office, and you may or may not see a photograph of Mahatma Gandhi, but you willcertainly see one particular photograph. It shows a long line of Gujarati women waitingpatiently for a union truck to come and collect the milk they have brought in shiningbrass matkas.The picture is always prominently displayed. The message is clear: never forget yourprimary customer. If you dont, success is certain. The proof A unique, Rs 2,200 crore(Rs 22 billion) enterprise.Organization structure:It all started in December 1946 with a group of farmers keen to free themselves fromintermediaries, gain access to markets and thereby ensure maximum returns for theirefforts.Based in the village of Anand, the Kaira District Milk Cooperative Union (better knownas Amul) expanded exponentially. It joined hands with other milk cooperatives, and theGujarat network now covers 2.12 million farmers, 10,411 village level milk collectioncenters and fourteen district level plants (unions) under the overall supervision ofGCMMF.There are similar federations in other states. Right from the beginning, there wasrecognition that this initiative would directly benefit and transform small farmers andcontribute to the development of society.Markets, then and even today, are primitive and poor in infrastructure. Amul andGCMMF acknowledged that development and growth could not be left to market forcesand that proactive intervention was required. Two key requirements were identified.Babasabpatilfrepptmba.com Page 14
  15. 15. To study the distribution channel and Demand of Amul Beverages in Hubli • The first, that sustained growth for the long term would depend on matching supply and demand. It would need heavy investment in the simultaneous development of suppliers and consumers. • Second, that effective management of the network and commercial viability would require professional managers and technocrats.To implement their vision while retaining their focus on farmers, a hierarchical networkof cooperatives was developed, which today forms the robust supply chain behindGCMMF’s endeavors The vast and complex supply chain stretches from small suppliersto large fragmented markets.Management of this network is made more complex by the fact that GCMMF is directlyresponsible only for a small part of the chain, with a number of third party players(distributors, retailers and logistics support providers) playing large roles.Managing this supply chain efficiently is critical as GCMMFs competitive position isdriven by low consumer prices supported by a low cost system.Introducing higher value products:Beginning with liquid milk, GCMMF enhanced the product mix through the progressiveaddition of higher value products while maintaining the desired growth in existingproducts.Despite competition in the high value dairy product segments from firms such asHindustan Lever, Nestle and Britannia, GCMMF ensures that the product mix and thesequence in which Amul introduces its products is consistent with the core philosophy ofproviding milk at a basic, affordable price.Umbrella brand:Babasabpatilfrepptmba.com Page 15
  16. 16. To study the distribution channel and Demand of Amul Beverages in HubliThe network follows an umbrella branding strategy. Amul is the common brand for mostproduct categories produced by various unions: liquid milk, milk powders, butter, ghee,cheese, cocoa products, sweets, ice-cream and condensed milk.Amuls sub-brands include variants such as Amulspray, Amulspree, Amulya andNutramul. The edible oil products are grouped around Dhara and Lokdhara, mineralwater is sold under the Jal Dhara brand while fruit drinks bear the Safal name.By insisting on an umbrella brand, GCMMF not only skillfully avoided inter-unionconflicts but also created an opportunity for the union members to cooperate indeveloping products.Managing the supply chain:Even though the cooperative was formed to bring together farmers, it was recognised thatprofessional managers and technocrats would be required to manage the networkeffectively and make it commercially viable.Coordination:Given the large number of organizations and entities in the supply chain anddecentralized responsibility for various activities, effective coordination is critical forefficiency and cost control. GCMMF and the unions play a major role in this process andjointly achieve the desired degree of control.Buy-in from the unions is assured as GCMMF’s board approves the plans. The board isdrawn from the heads of all the unions, and the boards of the unions comprise of farmerselected through village societies, thereby creating a situation of interlocking control.The federation handles the distribution of end products and coordination with retailersand the dealers. The unions coordinate the supply side activities.Babasabpatilfrepptmba.com Page 16
  17. 17. To study the distribution channel and Demand of Amul Beverages in HubliThese include monitoring milk collection contractors, the supply of animal feed and othersupplies, provision of veterinary services, and educational activities.Managing third party service providers:From the beginning, it was recognized that the unions core activity lay in milkprocessing and the production of dairy products. Accordingly, marketing efforts(including brand development) were assumed by GCMMF. All other activities wereentrusted to third parties. These include logistics of milk collection, distribution of dairyproducts, sale of products through dealers and retail stores, provision of animal feed, andveterinary services.It is worth noting that a number of these third parties are not in the organized sector, andmany are not professionally managed with little regard for quality and service.This is a particularly critical issue in the logistics and transport of a perishablecommodity where there are already weaknesses in the basic infrastructure.Establishing best practices:A key source of competitive advantage has been the enterprises ability to continuouslyimplement best practices across all elements of the network: the federation, the unions,the village societies and the distribution channel.In developing these practices, the federation and the unions have adapted successfulmodels from around the world. It could be the implementation of small group activities orquality circles at the federation. Or a TQM program at the unions. Or housekeeping andgood accounting practices at the village society level.More important, the network has been able to regularly roll out improvement programsacross to a large number of members and the implementation rate is consistently high.Babasabpatilfrepptmba.com Page 17
  18. 18. To study the distribution channel and Demand of Amul Beverages in HubliFor example, every Friday, without fail, between 10.00 a.m. and 11.00 a.m., allemployees of GCMMF meet at the closest office, be it a department or a branch or adepot to discuss their various quality concerns.Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with aprocess check at the end to record how the meeting was conducted. Similar processes arein place at the village societies, the unions and even at the wholesaler and C&F agentlevels as well.Examples of benefits from recent initiatives include reduction in transportation time fromthe depots to the wholesale dealers, improvement in ROI of wholesale dealers,implementation of Zero Stock Out through improved availability of products at depotsand also the implementation of Just-in-Time in finance to reduce the float.Kaizens at the unions have helped improve the quality of milk in terms of acidity andsour milk. (Undertaken by multi-disciplined teams, Kaizens are highly focussed projects,reliant on a structured approach based on data gathering and analysis.) For example,Sabar Unions records show a reduction from 2.0% to 0.5% in the amount of sourmilk/curd received at the union.The most impressive aspect of this large-scale roll out is that improvement processes areturning the village societies into individual improvement centers.Technology and e-initiatives:GCMMFs technology strategy is characterized by four distinct components: newproducts, process technology, and complementary assets to enhance milk production ande-commerce.Few dairies of the world have the wide variety of products produced by the GCMMFnetwork. Village societies are encouraged through subsidies to install chilling units.Automation in processing and packaging areas is common, as is HACCP certification.Babasabpatilfrepptmba.com Page 18
  19. 19. To study the distribution channel and Demand of Amul Beverages in HubliAmul actively pursues developments in embryo transfer and cattle breeding in order toimprove cattle quality and increases in milk yields.GCMMF was one of the first FMCG (fast-moving consumer goods) firms in India toemploy Internet technologies to implement B2C commerce.Today customers can order a variety of products through the Internet and be assured oftimely delivery with cash payment upon receipt.Another e-initiative underway is to provide farmers access to information relating tomarkets, technology and best practices in the dairy industry through net enabled kiosks inthe villages.GCMMF has also implemented a Geographical Information System (GIS) at both ends ofthe supply chain, i.e. milk collection as well as the marketing process.Farmers now have better access to information on the output as well as support serviceswhile providing a better planning tool to marketing personnel.Mascot:The Amul babySince 1967 Amul products mascot has been the very recognisable "Amul baby" (achubby butter girl usually dressed in polka dotted dress) showing up on hoardings andproduct wrappers with the equally recognisable tagline Utterly Butterly DeliciousAmul.The mascot was first used for Amul butter. But in recent years in a second wave ofad campaign for Amul products, she has also been used for other product like ghee andmilk.Currently Amul is in the process of getting the Amul Girl registered as the oldest adcampaign in the Guinness Book Of World Records. Although there seems to be nocompetition for this mascot, Amul Corporation is still doing further research to confirmtheir claim.Babasabpatilfrepptmba.com Page 19
  20. 20. To study the distribution channel and Demand of Amul Beverages in HubliIn Popular Culture:The establishment of Amul is also known as The White Revolution. The WhiteRevolution of India inspired the notable Indian film-maker Shyam Benegal to base amovie on. The motion picture Manthan was made during the late 1960s and early 1970s,and starred: Smita Patil, Girish Karnad, Naseeruddin Shah, and Amrish Puri.The White Revolution ushered an era of plenty from a measly amount of milk productionand distribution. Aside from the great measurable success that this project was, it alsodemonstrated the power of "collective might". A small set of poor farmers of Khedadistrict in Gujarat had the vision and foresight to act in a way that was good for thesociety and not for the self alone4P’s of GCMMF LTD:Product:AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit"Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning"priceless", are found in several Indian languages. Amul products have been in use inmillions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, AmulMilk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 42.78billion in 2006-07). Today Amul is a symbol of many things. Of high-quality productssold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph ofindigenous technology. Of the marketing savvy of a farmers organisation. And of aproven model for dairy development.Babasabpatilfrepptmba.com Page 20
  21. 21. To study the distribution channel and Demand of Amul Beverages in HubliBread Spreads • 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 Emmental Cheese • Amul Gouda Cheese Milk Drinks: • Amul Kool • Amul Kool Cafe • Kool Koko A delight to Chocolate Lovers. Delicious Chocolate taste • Nutramul Energy DrinkA drink for Kids - provides energy to suit the needs of growing Kids • Amul Kool Chocolate Milk • Amul Kool Flavoured Bottled Milk • Amul Kool Flavoured Tetra PackBabasabpatilfrepptmba.com Page 21
  22. 22. To study the distribution channel and Demand of Amul Beverages in Hubli • Amul Masti Spiced Buttermilk Amul introduces the Best Thirst Quenching DrinkPowder Milk: • Amul Spray Infant Milk Food Still, Mothers Milk is Best for your baby • Amul Instant Full Cream Milk Powder A dairy in your home • Sagar Skimmed Milk Powder Which is especially useful for diet preparations or for use by people on low calorie and high protein diet. • Sagar Tea Coffee Whitener • Amulya Dairy Whitener The Richest, Purest Dairy WhitenerFresh Milk: • Amul Fresh 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 Gold Milk • Amul Taaza Double Toned Milk • Amul Lite Slim and Trim Milk • Amul Fresh Cream • Amul Shakti Toned MilkBabasabpatilfrepptmba.com Page 22
  23. 23. To study the distribution channel and Demand of Amul Beverages in HubliFor Cooking: • Amul / Sagar Pure Ghee Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience. • Cooking Butter • Amul Malai Paneer Ready to cook paneer to make your favourite recipes! • Utterly Delicious Pizza • Mithai Mate Sweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste • Masti DahiDesserts: • Amul Ice Creams Premium Ice Cream made in various varieties and flavours with dry fruits and nuts. • Amul Shrikhand A delicious treat, anytime • Amul Mithaee Gulab Jamuns Pure Khoya Gulab Jamums...best served piping hot. • Amul Chocolates The perfect gift for someone you love.Babasabpatilfrepptmba.com Page 23
  24. 24. To study the distribution channel and Demand of Amul Beverages in Hubli • Amul Lassee • Amul BasundiHealth Drink: • Nutramul (Malted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.) • Amul Shakti Health Food Drink (Available in Kesar-Almond and Chocolate flavours).Place (The distribution network):Babasabpatilfrepptmba.com Page 24
  25. 25. To study the distribution channel and Demand of Amul Beverages in HubliAmul products are available in over 500,000 retail outlets across India through itsnetwork of over 3,500 distributors. There are 47 depots with dry and cold warehouses tobuffer inventory of the entire range of products.GCMMF transacts on an advance demand draft basis from its wholesale dealers insteadof the cheque system adopted by other major FMCG companies. This practice isconsistent with GCMMFs philosophy of maintaining cash transactions throughout thesupply chain and it also minimizes dumping.Wholesale dealers carry inventory that is just adequate to take care of the transit timefrom the branch warehouse to their premises. This just-in-time inventory strategyimproves dealers return on investment (ROI). All GCMMF branches engage in routescheduling and have dedicated vehicle operations.Distribution Structure for dairy product: Member Union/ (Manufacturer) Company Depot Distributor Retailer CustomerBabasabpatilfrepptmba.com Page 25
  26. 26. To study the distribution channel and Demand of Amul Beverages in HubliDistribution structure for Ice-Cream: Member union (Manufacturer) Company Hub Company Depot Distributor Retailer CustomerAll India they have 45 sales Depot, 6 Zonal offices in chanai, Bombay, Kolkotta,Gowhati, Delhi, Ahemdabad. Also 3500 distributors and more than 2,50,000 retailoutlets.In Karnataka they have 2 sales Depot one in Dharwad(north) and one inBangalore(south), these comes under chanai zonal office, and 115 distributors.In North-Karnataka sales depot is in near Dharwad. They cover places from chitradurg toBidar total 25 district. They have 62 distributors in north-Karnataka, in Hubli andDharwad they have 2 distributors.In Hubli – Narmada trading companyBabasabpatilfrepptmba.com Page 26
  27. 27. To study the distribution channel and Demand of Amul Beverages in Hubli Ballari galli HubliIn Dharwad- Shri veerbhadreshwar Marketing Back side of vijaya theater Dharwad Price:At the time Amul was formed, consumers had limited purchasing power, and modestconsumption levels of milk and other dairy products. Thus Amul adopted a low-cost pricestrategy to make its products affordable and attractive to consumers by guaranteeing themvalue for money.Promotional Activity:AdvertisingAn Amul butter ad on Pakistans Kargil War fiasco. The image shows the "Amul baby"in between George Fernandes and Vajpayee.Its advertising has also started using tongue-in-cheek sketches starring the Amul babycommenting jovially on the latest news or current events. The pun in her words has beenpopular. The Amul ads are one of the longest running ads based on a theme, now vyingfor the Guinness records for being the longest running ad campaign ever. SylvesterdaCunha, was the managing director of the advertising agency, ASP, that created thecampaign in 1967 whose charm has endured fickle public opinion, gimmickry and allelse.Babasabpatilfrepptmba.com Page 27
  28. 28. To study the distribution channel and Demand of Amul Beverages in HubliCompetitors of Amul:Amul has been able to withstand the onslaught of private and foreign players in the dairyindustry and has also been able to export products in limited quantities. The success ofAmul resulted in similar organizations being setup by state governments throughoutIndia, most of which had reasonable success. Examples are Milma in Kerala, Vijaya inAndhra Pradesh, Aavin in Tamil Nadu ,K.M.F ( Nandini ) in Karnataka, Sudha inBihar and others.Other co-operative rivals of Amul include National Dairy Development Board (NDDB)(with its Mother Dairy and Sugam brands). With Amul entering the sports drink market,its rivals now include Coca Cola and PepsiCo.Sales Turn over:Amul has recorded a 30% growth in turnover this year, despite stiff competition frommultinational companies and big domestic players in the milk and dairy business. GujaratCooperative Milk Marketing Federation Ltd, which markets Amul products, is expectinga turnover of Rs 3,600 crore during 2005-06 fromRs 2,900 crore last year. B M Vyas,Managing Director, talks to P N V Nair, Editor - Food & Beverage News, about Amuls expandingbusiness outside Gujarat, its promotional campaigns, its growth targets at home and abroadSales Turnover Rs (million) US $ (in 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 27457 5752003-04 28941 6162004-05 29225 6722005-06 37736 850Babasabpatilfrepptmba.com Page 28
  29. 29. To study the distribution channel and Demand of Amul Beverages in Hubli2006-07 42778 1050Entertainment:Books • The Amul India Story : Ruth Herediya • Management Kurien Style : MV Kamath • The Unfinished Dream : V KurienFeature Films • Sardar: The Iron Man of India : A film by Ketan Mehta • Manthan: A Film by Shyam Benegal • To view the movie click here.Awards: • Ramkrishna Bajaj National Qality Award-2003 • Amul - The Taste Of India (Gcmmf)Receives International Cio 100 Award For ResourcefulnessRajiv Gandhi National Quality Award - 1999Babasabpatilfrepptmba.com Page 29
  30. 30. To study the distribution channel and Demand of Amul Beverages in HubliAmul Beverages:Flavored milk Amul Kool, a low calorie thirst quenching drink, Masti Butter Milk; readyto drink coffee - Kool Café and Indias first sports drink Stamina. With these launches,the billion dollar Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), Asiaslargest integrated dairy products manufacturing and marketing organization, is now aleading player in the Indian dairy beverages market with over 90% market share inbranded packaged dairy drinks segment. The milk based drink market has been showing ahefty double digit growth.In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending itsproduct offeringt in the milk products segment. Other Amul brands are Amul Kool, a lowcalorie thirst quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee andIndias first sports drink Stamina.The Indian soft drink market is worth about Rs 7,000 crores per annum. The soft drinkmarket can be broadly divided into two major segments - carbonated soft drink and non-carbonated soft drinks. The carbonated soft drinks account for 85% of the total soft drinkmarket. However the growth rate has been stagnant and in fact declining over the pastfew years. The non-carbonated drinks category includes special categories like fruitdrinks, juices and milk drinks, etc. With the changing lifestyles and increasing healthconcern, the growth in non-carbonated drink category has been much higher than thecarbonated category.Ready-to-drink coffee from AmulAnand , Nov. 6Amul has now entered the branded ready-to-serve coffee market with the launch of AmulKool Café all over the country.Made from pure milk and developed to suit Indian taste, Amul Kool Café will beavailable in drink pack options of bottle, cartons and can. Priced at Rs 15 for a 200 mlBabasabpatilfrepptmba.com Page 30
  31. 31. To study the distribution channel and Demand of Amul Beverages in Hublidisposable bottle/carton and Rs 20 for a 250 ml can, it provides value for money toconsumers, the company said in a release here.Amul Kool CaféFlavours : CoffeePack Size : 200ml Glass Bottle, 200ml Tetra Pack, 250ml CanIngredients : Toned Milk, Sugar & Coffee. Contains permitted Emulsifier and Stabiliser.Nutrition Facts:Servingsize:200mlServing per pack : 1Amount per serving: Energy 220 CaloriesEnergy from fat 99 Calories * %Daily valueTotal Fat 9.0 g 14.5Protein 7.0g 14.0Total Carbohydrates 8.024gCalcium 240 mg 24.0Vitamin A 252 IU 5.0Babasabpatilfrepptmba.com Page 31
  32. 32. To study the distribution channel and Demand of Amul Beverages in HubliNot a significant source of Dietary Fibre, Vitamin C and Iron. . % Daily Values are basedon a 2,000 calorie diet.Amul Kool Café is targeted at Generation X, which is in search of a healthy beverage,which is also tasty, trendy and nutritious. Amul also plans to launch Coffee Mocha,Coffee Sugar-Free and decaffeinated flavours.With this launch, the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF),Asias largest integrated dairy products manufacturing and marketing organisation andthe countrys largest food company, further consolidates its position in the beveragemarket.The non-carbonated drink market has been showing a hefty double-digit growth since thelast couple of years. GCMMF is now a leading player in the Indian dairy beverage marketwith over 90 per cent market share in branded, packaged dairy drinks segment.In keeping with its goal of emerging as the single largest entity in the dairy beveragemarket, Amul introduced low-calorie thirst quenching drinks and tasty Amul MastiButtermilk in addition to Amul Kool range of flavoured milk and also the countrys firstSports and Energy drink, Stamina.Amul launches chocolate milk Saturday, September 01, 2007:Amul is all set to further consolidate its position in the beverages market with theintroduction of chocolate milk under brand name of Amul Kool Koko. Made from puremilk with addition of cocoa solids, Amul Kool Koko, is targeted at teenagers and youth.This refreshing beverage is priced at Rs 15 for a 200ml disposable bottle, Rs 15 for a200ml tetrapak, Rs 20 for a 250ml can and Rs 50 for 1lt tetra pack, providing value formoney to the consumers.Pack Size : 200ml Glass Bottle, 200ml Tetra Pack, 250ml CanIngredients : Double Toned Milk, Sugar, Cocoa Solids & Water. Contains PermittedStabiliser and artifical flavouring substances.Babasabpatilfrepptmba.com Page 32
  33. 33. To study the distribution channel and Demand of Amul Beverages in HubliNutrition Facts :ServingSize:250mlServing per pack : 1Amount per serving : Energy 266 kcalEnergy from fat 55 kcal * %Daily valueTotal Fat 6.3 g 9.40Saturated Fat 4.4g 22.6Cholesterol, 7.8mg 2.5Sodium 125.0 mg 6.0Total Carbohydrates 13.842.5gProtein 9.4g 18.8Calcium 400 mg 81.0Not a significant source of Dietary Fibre, Vitamin C and Iron. . % Daily Values are basedon a 2,000 calorie diet.Amul has introduced a slew of milk-based drinks over the past few months. This has beendone to achieve its goal of emerging as the single largest entity in the beverages market.Launched recently, Amul Kool Koko Chocolate Milk is the latest addition to the basketin 2007.Babasabpatilfrepptmba.com Page 33
  34. 34. To study the distribution channel and Demand of Amul Beverages in HubliAmul KoolThe nutritious and tasty flavoured milk in different flavour such as Kesar, Elaichi, Rose,Mango etcFlavours : Kesar, Elaichi, Rose, Mango, StrawberryPack Size : 200ml Glass Bottle, 200ml Tetra Pack, 250ml Can, 1 Litre Tetra PackIngredients : Toned Milk and Sugar, Contains permitted synthetic Food Colours andadded nature-identical flavouring substances.Nutramul Energy Milk:Pack Size : 200ml Glass BottleIngredients:Toned Milk, Malt Extract, Cocoa Solids & Sugar.Contains Permitted Natural Colour and added nature identical flavour.Babasabpatilfrepptmba.com Page 34
  35. 35. To study the distribution channel and Demand of Amul Beverages in HubliNutrition Facts:ServingSize:200mlServing per pack : 1Amount per serving :Energy 89 kcal / 100mlEnergy from fat 28 kcal / 100ml * %Daily valueTotal Fat 6.2 g 9.30Saturated Fat 3.8g 19.5Cholesterol, 0.0166g 5.2Total Carbohydrates 7.924gProtein 6.4g 12.8Calcium 260 mg 52.8Vitamin A 75.8 mcg 5.0Not a significant source of Dietary Fibre, Vitamin C and Iron. . % Daily Values are basedon a 2,000 calorie diet.Amul Masti Spiced Buttermilk:Babasabpatilfrepptmba.com Page 35
  36. 36. To study the distribution channel and Demand of Amul Beverages in HubliProduct Details: • Product - Amul Masti Spiced Buttermilk • Pack - 200ml Tetra Brik • MRP - Rs. 5.00Ingredients -Milk Solids, Common Salt, Spices and Condiments, Contains permitted stabilizerMost importantly, • Unlike carbonated soft drinks, Amul Masti Spiced Buttermilk is 100% Natural and Sucrose Free without any color or preservative added. • It is a low fat product with lower sodium salt content. • It contains protein with almost 50% lower calorie than soft drinks. • The spices and condiments added to the product enhance its taste and flavour. • Available in convenient and attractive, take-away tamper proof 200 ml Tetra Pak Brik with 120 days shelf life at ambient temperatures. • Presently available in India only.8 Important Marketing Rules fallowed By Amul: 1. Never Underestimate the customer 2. Shatter the demand curve 3. Create a ladder of genuine benefits (technical,functional,emotional) 4. Escale innovate, elevate quality, deliver a flowless experience 5. Extend the price rang and positioning of the brand 6. Customize your value chain to deliver an the benefit ladder 7. Use influence marketing, seed your success through brand aposites 8. Continually attack the category like an outsiderDistribution NetworkBabasabpatilfrepptmba.com Page 36
  37. 37. To study the distribution channel and Demand of Amul Beverages in HubliDistribution channels are probably the most visible aspect of any company’s marketingefforts. A recent estimate puts the number of retail out lets in India at 5 million. The retailindustry provides livelihood to more than 15 million people in the country. If oneincluded in this the number of distributors, wholesalers, agents including the army of lifeinsurance agents, transporters, warehouse keepers, and all other entities involved in thedistribution of products and services to the end consumers.“Distribution channels are sets of interdependent organizations involved in theprocess of making a product or service available for use or consumption”.Distribution function is currently undergoing tremendous changes in terms of both itsspan and productivity.Intermediaries are required to smoothen the flow of goods and services by engagingthemselves in sorting function. The sorting function performed by the intermediariesincludes • Breaking down a heterogeneous supply into separate stocks that are relatively homogeneous called ‘sorting out’. • Bringing similar stocks from a number of sources together into a larger homogeneous supply called ‘accumulation’. • Building up of an assortment of products for resale in association with eath other called ‘assorting’.Distribution channel strategy:The major domains across which distribution strategy is framed includes • Setting distribution objectives in terms of the customer requirements • Organizing the activities so that the responsibility of performing the activities is shared among the entities that are meant to perform these activitiesBabasabpatilfrepptmba.com Page 37
  38. 38. To study the distribution channel and Demand of Amul Beverages in Hubli • Developing policy guidelines for the smooth functioning of the channel on a day to day basisIn the wake of increasingly complicated supply chains, distribution network design playsa key role in controlling the cost of doing business. And in a world of shrinking margins,controlling the cost of doing business can be the factor that puts you ahead of yourcompetitors.Comparing the channel design:The design would basically vary in terms of the components that constitute the logisticalnetwork as well as the type of members who constitute the commercial network.A firm channel consisting of distributors, wholesalers, and retailers. Once a few feasibleand viable designs have been generated, they have to be compared in terms of thefollowing criteria to select the most suitable.Effectiveness:The effectiveness of a channel is measured by analyzing whether the objectives set forthe channels can be achieved. For instance, if one of the objectives includes zero waitingtime, the effectiveness criterion would look at whether this service objective can beachieved without fail by the channel system.Efficiency:The efficiency criterion is concerned with the input expended for achieving the level ofoutput. If two channel designs deliver the same level of outputs but one channel designrequires fewer inputs in terms of logistical and other types of inputs, then the secondchannel design is deemed to be more efficient.Babasabpatilfrepptmba.com Page 38
  39. 39. To study the distribution channel and Demand of Amul Beverages in HubliEquity:The principle of equity is very important. The constituents of a channel should beremunerated to the extent of their participation in the channel. Also, the remunerationpattern should reflect the criticality of each of the activities.Scalability:The fourth major consideration for comparing the channel design is the extent to which itis scalable. If there is an unusual surge in demand, can the channel system handle it? Thiscriterion becomes very important in case of products where it is not very easy to forecastdemand accurately if the channel can increase its operation with the least effort.Flexibility:If the demand pattern changes or new products are introduced at frequent intervals willthe channel system be able to fulfill the resultant rapidly changing demand This assumesgreater significance when the firm is involved in marketing high-technology productswhere rapid innovation is always a possibility.Distribution Network Design Solutions:An optimal distribution network is intelligently designed to minimize costs by providingthe customer the right goods, in the right quantity, at the right place, and at right time. Atall order, right In most organizations, controlling distribution costs involves striking abalance between warehousing and transportation. While more distribution centers drivesdown the cost of transportation, the opposite holds true as well. Tompkins distributionnetwork design services attempt to answer questions like: • How many DCs should you have? • Where should they be located? • What should be the configuration and strategy of each DC? • Which group of customers should each DC service? • How will customers order from and how will each DC be replenished? • How should shipments be scheduled?Babasabpatilfrepptmba.com Page 39
  40. 40. To study the distribution channel and Demand of Amul Beverages in Hubli • What should the service levels be? • Which transportation methods should be used?Tompkins Associates pioneered the use of computers for modeling and analyzingdistribution networks. Nobody does it with the depth of understanding or attention todetail that we do. We choose from an array of the best modeling tools to best suit eachclients operation.Understanding Distribution Network Design:Because the volatile forces at play in the market today can cause a companys momentumto vanish into thin air, we design into your distribution network the flexibility to adjust tochanging market conditions, including: • Geographic shifts in production and consumption • Market segmentation, new markets and new customer service requirements • Cost increases in energy, plant and equipment maintenance, and labor • Government regulation or deregulation • Product proliferation and product life cycle • Competitor adjustments • Events in the economyNot only will we create the most demand-flexible, cost-effective distribution network, asa full-service consulting and integration firm, we can build it for you and step you andyour employees through the transition to the new network. Tompkins can provide yourfirm everything from site selection and real estate services to construction and integrationservices.Babasabpatilfrepptmba.com Page 40
  41. 41. To study the distribution channel and Demand of Amul Beverages in HubliDistribution Network Analyses:Some of the analyses performed during a distribution network design project: • Demand Analysis • Transportation Analysis • Economic Analysis • Sensitivity Analysis • Alternatives Analysis • Model ValidationBabasabpatilfrepptmba.com Page 41
  42. 42. To study the distribution channel and Demand of Amul Beverages in HubliNeed for the study:My project is a small effort to understand the distribution channel and to know thedemand of Amul Beverages in Hubli and Dharwad city. This will help the company toconcentrate on their loop holes. The study will make to know the feelings and opinions ofthe retailer’s about the Amul Beverages.Utility of the project:To the company: o The project helps the company to identify its areas of improvements o It helps the company to rework its marketing strategies o It helps to know their effectiveness of distribution network o It helps to know their competitors in the marketTo self: o This project enabled me to understand the beverage market, the present scenario, and the different competitors with Amul beverages. o It also helped me to implement the theoretical aspects of study in to practical use.Babasabpatilfrepptmba.com Page 42
  43. 43. To study the distribution channel and Demand of Amul Beverages in HubliAbout the projectThis project was undertaken in GCMMF LTD Dharwad, “To study the distributionchannel and Demand of Amul Beverages in Hubli, Dharwad city”.Management Problem:Improper distribution channel of Amul Beverages With respect to Hubli, Dharwad cityResearch Problem:“To know the distribution channel and Demand of Amul Beverages inHubli, Dharwad city”.Objectives: • To asses the Effectiveness of distribution channel of Amul Beverages in Hubli & Dharwad city • To study the demand for the Amul Beverages against other beverages in Hubli & Dharwad City • To analyze the view point of the retailer over the sale of Amul Beverages in Hubli and Dharwad city.Babasabpatilfrepptmba.com Page 43
  44. 44. To study the distribution channel and Demand of Amul Beverages in HubliMethodology:Type of research:This project report is done based on both exploratory and descriptive research.Exploratory Research:Exploratory research seeks to develop initial hunches or insights and to provide directionfor any further research needed. The primary purpose of exploratory research is to shedlight on the nature of the situation and identify any specific objectives or data needs to beaddressed through additional research .exploratory research is most useful when adecision maker wishes to better understand a situation and /or identify decisionalternatives.Descriptive Research:Descriptive Research aim is to describe something. Specifically, its intended to generatedata describing the composition and characteristics of relevant groups of units such as acustomers, sales people, organizations, and market areas data collected throughdescriptive research can provide valuable information about the study units alongrelevant characteristics and also about association among those characteristic thefallowing examples illustrate the use of descriptive research in a marketing context.Type of dataBoth primary data and secondary data was collectedBabasabpatilfrepptmba.com Page 44
  45. 45. To study the distribution channel and Demand of Amul Beverages in HubliData Collection MethodPrimary Data:Primary Data was collected specifically for a research. The primary data was collectedthrough questionnaire method where in the questionnaire was designed to be structured &non-structured. A systematic collection of information was done directly fromrespondents.Secondary Data:The secondary data such as actual amount spent, cost of production number of purchaseindent etc collected from annual reports, document and accounts maintained by company.Information required for analysis and interpretation of data are gathered from articles inthe professional journals internet, by referring some standard books.The first step in the data collection approach is to look for secondary data. Usuallysecondary data is developed for some purpose other than for helping to solve the problemat hand.In this survey the secondary data was collected through company guide and companywebsite .The collected data was processed by using SPSS.Survey method:The related data or information will obtain by personal administration throughquestionnaire i.e. personal surveySampling method:The method use for survey is non-probability, convenience sampling methodNumber of field workers:Survey will conduct by a single person (female)Babasabpatilfrepptmba.com Page 45
  46. 46. To study the distribution channel and Demand of Amul Beverages in HubliGeographical Area:The survey will conduct in the geographical area of Hubli and Dharwad city.Babasabpatilfrepptmba.com Page 46
  47. 47. To study the distribution channel and Demand of Amul Beverages in HubliPopulation: i)Extent: Hubli and Dharwad city ii)Time : 4 monthsSampling Design:Sampling Unit: RetailerSampling Method: non-probability, convenience samplingSampling Size: 100Research instrument: QuestionnaireSampling Area: Hubli and Dharwad cityBabasabpatilfrepptmba.com Page 47
  48. 48. To study the distribution channel and Demand of Amul Beverages in HubliTools and Techniques of Data CollectionThe above mentioned sampling units were interviewed personally i, e face to faceinterviews were done.Questionnaire was used for data collection from customers, in order to know “thedistribution channel and Demand of Amul Beverages in Hubli & Dharwad ”.Babasabpatilfrepptmba.com Page 48
  49. 49. To study the distribution channel and Demand of Amul Beverages in HubliData Analysis:Type of outletType of out let Valid Cumulative Frequency Percent Percent Percent bakery 50 50.0 50.0 50.0 super bazaar 2 2.0 2.0 52.0 institution 22 22.0 22.0 74.0 cool drink shop 10 10.0 10.0 84.0 any other 16 16.0 16.0 100.0 Total 100 100.0 100.0Place Valid Frequency Percent Cumulative Percent PercentDharwad 50 50.0 50.0 50.0 Hubli 50 50.0 50.0 100.0 Total 100 100.0 100.0Babasabpatilfrepptmba.com Page 49
  50. 50. To study the distribution channel and Demand of Amul Beverages in Hubli 40 30 31 type of out let 20 19 bakery 17 super bazzar 10 institution 8 8 6 cool drink shop Count 5 4 0 2 any other dharw ad hubli placeInterpretation:As per the above table in 100 retailers 50 in Dharwad & 50 in Hubli, whom I met duringsurvey out of them • In Dharwad bakery-31 institution-5 Cool drink shop-6 any other-8 • In Hubli bakery-19 institution-17 Super bazzar-2 cool drink shop-4 Any other -8Babasabpatilfrepptmba.com Page 50
  51. 51. To study the distribution channel and Demand of Amul Beverages in HubliDeal with Amul beveragesDeal with amul beverages Frequen Valid Cumulative Percent cy Percent Percent Yes 53 53.0 53.0 53.0 No 47 47.0 47.0 100.0 Total 100 100.0 100.0 54 53 53 52 51 50 49 48 47 Count 47 46 yes no deal with amul beveragesInterpretation:As per above table in 100 respondents • 53% of the retailers are dealing with Amul beverages • 47% of the retailer are not dealing with Amul beveragesBabasabpatilfrepptmba.com Page 51
  52. 52. To study the distribution channel and Demand of Amul Beverages in HubliVarity of Amul beverages 60 50 52 40 30 20 10 9 8 Sum 0 amul kool cafe D6 F6 amul butter milk kool koko E6 G6 Amul koolInterpretation:As per graph • Amul kool is fast moving product in amul beverages • 2nd is the amul kool café • 3rd is the amul spiced butter milk • 4th is the amul kool koko • Nutramul energy drink, amul kool chocolate milk, amul kool flavoured tetra pack are not selling in outletBabasabpatilfrepptmba.com Page 52
  53. 53. To study the distribution channel and Demand of Amul Beverages in HubliPlacing the orderplacing order Valid Cumulative Frequency Percent Percent Percent Not 47 47.0 47.0 47.0 applicant once in 22 22.0 22.0 69.0 week fortnightly 7 7.0 7.0 76.0 Monthly 1 1.0 1.0 77.0 when ever 23 23.0 23.0 100.0 required Total 100 100.0 100.0 50 47 40 30 23 20 22 10 Count 7 0 not applicant fortnightly w hen ever required once in w eek monthly placing orderInterpretation:Babasabpatilfrepptmba.com Page 53
  54. 54. To study the distribution channel and Demand of Amul Beverages in HubliAs per the above graph in 53 respondents • 23% of the retailer placing the orde whenever they required • 22% of the retailer placing the order once in week • 7% of the retailer placing the order fortnightly • 1% of the retailer placing the order monthlyOrder gettingorder getting Frequency Percent Valid Percent Cumulative Percent not 47 47.0 47.0 47.0applicantnext day 12 12.0 12.0 59.0 of order after 2 25 25.0 25.0 84.0 days more than 2 16 16.0 16.0 100.0 days Total 100 100.0 100.0Babasabpatilfrepptmba.com Page 54
  55. 55. To study the distribution channel and Demand of Amul Beverages in Hubli 50 47 40 30 25 20 16 10 12 Count 0 not applicant next day of order after 2 days more than 2 days order gettingInterpretation:As per above graph in 53 respondents • 25% of the retailer getting the order after 2days • 16% of the retailer getting the order more than 2 days • 12 % of the retailer getting the order next day of the orderBabasabpatilfrepptmba.com Page 55
  56. 56. To study the distribution channel and Demand of Amul Beverages in HubliMonthly sales of Amul beverages (no of pack per month)Type of out let Monthly sales(no of pack per month)Bakery 85Super Bazaar 9Institution 30Cool drink shop 10Any other 4Interpretation:As per above graph shows that • Bakery is selling highest monthly 85 packs • 2nd is the institution 30 packs • 3rd is the cool drink shop 10 packs • 4th is the super bazaar 9 packs • Last is the janaral stores, juice centre,sweet mart 4 packsBabasabpatilfrepptmba.com Page 56
  57. 57. To study the distribution channel and Demand of Amul Beverages in HubliDiscounts/schemesDiscounts/scheme Valid Frequency Percent Cumulative Percent Percent Not 47 47.0 47.0 47.0applicant Yes 3 3.0 3.0 50.0 No 50 50.0 50.0 100.0 Total 100 100.0 100.0 60 50 50 47 40 30 20 10 Count 0 3 not applicant yes no discounts/schemeInterpretation:As per above graph in 53 respondents • 53 % of the retailers are not getting any discounts/shemes • Only 3% of the retailer getting discounts/schemesInfluence factorBabasabpatilfrepptmba.com Page 57
  58. 58. To study the distribution channel and Demand of Amul Beverages in HubliInfluence factor Valid Frequency Percent Cumulative Percent Percent not 47 47.0 47.0 47.0applicant brand 4 4.0 4.0 51.0 quality 28 28.0 28.0 79.0 demand 20 20.0 20.0 99.0Availabili 1 1.0 1.0 100.0 ty Total 100 100.0 100.0 50 47 40 30 28 20 20 10 Count 4 0 not applicant brand quality demand availability influence factorInterpretation:As per above graph in 53 respondents • 28 % of the retailers are selling because of qualityBabasabpatilfrepptmba.com Page 58
  59. 59. To study the distribution channel and Demand of Amul Beverages in Hubli • 20 % of the retailers are selling because of demand for the product • 4% of the retailer are selling because of brand image • Only 1% of the retailer selling because of availabilityCriteria for selling Amul beverages in your shopQuality margin Volume Supply Brand Credit Demand ComplaintBabasabpatilfrepptmba.com Page 59
  60. 60. To study the distribution channel and Demand of Amul Beverages in Hubli sold facility handling383 195 192 211 357 152 355 571 5 6 4 2 7 3 8 8.0 7.3 6.7 6.8 6.0 4.0 3.9 3.7 3.7 2.9 2.0 1.0 Mean 0.0 WTQUALIT WTVOL WTBRAND WTDEMAND WTMARGIN WTSUPP WTCREDIT WTCOMPLTBabasabpatilfrepptmba.com Page 60
  61. 61. To study the distribution channel and Demand of Amul Beverages in HubliInterpretation:As per above graph • Retailers are consider 1st quality • Retailers are consider 2nd as demand • Retailers are consider 3rd as brand • Retailer are consider 4th as supply • 5th is the margin • 6th is the volume sold • 7th is the credit facility • 8th is the complaint handlingReason for not selling Amul beverages in your shopReason for not selling Amul beverages Valid Frequency Percent Cumulative Percent Percent Not 53 53.0 53.0 53.0 applicant Non 12 12.0 12.0 65.0availabilitylow margin 5 5.0 5.0 70.0no demand 7 7.0 7.0 77.0 Nodiscounts/sc 3 3.0 3.0 80.0 hemeBabasabpatilfrepptmba.com Page 61
  62. 62. To study the distribution channel and Demand of Amul Beverages in Hubli 60 50 53 40 30 20 20 10 12 Count 7 5 0 3 not applicant low margin no discounts/scheme non availability no demand any other reason for not selling amul beveragesInterpretation:As per above graph in 47 %of the respondents 1. 20% retailers are not selling amul beverages because of distributor did not approach them 2. 12%of the retailers are not selling because of non availability of the product 3. 7%of the retailers are not selling because of no demand foe the product 4. 5% of the retailers are not selling because of no discounts/ schemes 5. 3% of the retailers are not selling because of low marginBabasabpatilfrepptmba.com Page 62
  63. 63. To study the distribution channel and Demand of Amul Beverages in HubliFindings: 1. In 100 respondents 50 are from Dhawad and 50 are from Hubli, in that a. In Dharwad Bakery-31 Institution-5 Cool drink shop-6 Any other-8 b. In Hubli Bakery-19 Institution-17 Super bazzar-2 Cool drink shop-4 Any other -8 2. 53% of the retailers are dealing with Amul beverages and 47% of the retailers are not dealing with Amul beverages. 3. Amul kool is fast moving product in amul beverages, 2nd is the amul kool café, 3rd is the amul spiced butter milk, 4 th is the amul kool koko, and others like Nutramul energy drink, amul kool chocolate milk,amul kool flavoured bottled milk, amul kool flavoured tetra pack are not selling here 4. In 53% of the respondents 23% of the retailers placing the order whenever they required, 22% of the retailers placing the order once in week , 7% of the retailer placing the order fortnightly ,and 1% of the retailer placing the order monthly 5. In 53% of the respondents 25% of the retailer getting the order after 2days, 16% of the retailer getting the order more than 2 days, 12% of the retailer getting the order next day of the order it shows the there is delay in supply 6. Bakery’s are selling highest, monthly 85 pack, institution 30 packs, cool drink shop 10 packs, super bazaar 9 packs, and janaral stores, juice centre,sweet mart 4 packs per monthBabasabpatilfrepptmba.com Page 63
  64. 64. To study the distribution channel and Demand of Amul Beverages in Hubli 7. Out of 100respondents, 53% of the retail respondents dealing with amul beverages, in that 50% of the retailers are not getting any discounts/schemes, only 3% of the retailers told that they were getting discounts/schemes 8. 53 % of the retail respondents dealing with amul beverages, in that 28 % of the retailers are selling amul beverages because of quality , 20% of the retailers are selling because of demand for the product , 4 % of the retailer are selling because of brand image, only 1 % of the retailer selling because of availability 9. According to view point of the retailers they consider the volume sold is in 6 th position 10. In 47% of the respondents , 20% retailers are not selling amul beverages because of distributor did not approach them, 12% of the retailers are not selling because of non availability of the product, 7% of the retailers are not selling because of no demand for the product , 5 % of the retailers are not selling because of no discounts/ schemes , 3 % of the retailers are not selling because of low marginRecommendations:Babasabpatilfrepptmba.com Page 64
  65. 65. To study the distribution channel and Demand of Amul Beverages in Hubli 1. 47%of the retailers not dealing with Amul Beverages in that 12 %of the retailers complain delay in supply; it delays in delivery of the product on time because of distributor. This should be avoided. So company has to tell the distributor to increase the man power/vehicle or else appoint other distributor. 2. 8% of the retailers are not dealing with the Amul Beverages because of schemes/discounts, so company has to give schemes/discounts. 3. Company has to handle the retailer’s problem like replacement of the damaged product because it becomes inevitable when competitors are doing the same without any hassles. So it will help the company to build the strong relationship with the retailers. 4. 20% of the retailers are not dealing with the Amul Beverages because of distributors did not approach them. But there is demand for the product so any company officials should see to it that the distributor approach the retailer. and also company has to conduct market survey for retail outlet.Babasabpatilfrepptmba.com Page 65
  66. 66. To study the distribution channel and Demand of Amul Beverages in HubliLimitations: • Time duration is very less to study the organization • Survey is limited to only Hubli & Dharwad cities • The response of the respondents are some times biased • The sample size taken for the study was very small compared to the huge population of the cities and hence was not fully representing the city.Babasabpatilfrepptmba.com Page 66
  67. 67. To study the distribution channel and Demand of Amul Beverages in HubliConclusion:After going through detailed study, I come to the conclusion that compared to thedistribution network of other brand of beverages to the Amul, it has to improve theirnetwork properly and make product available to the customer and also handle thecustomer problem if any. Company has to maintain a good relationship with the retailersby giving better margin, schemes/discounts.Babasabpatilfrepptmba.com Page 67
  68. 68. To study the distribution channel and Demand of Amul Beverages in Hubli QuestionnaireDear Retailer 1) Type of outlet • Bakery • Super Bazaar • Institution • Cool drink shop 2) Do you deal with the Beverages? a) Yes b) No 3) Which type of Beverages do you sell in your Shop? a) Corbonate b) non-corbonate c) Fruit juice d) All 4) What are the other major brands of Beverages you sell in your shop? 1 ……………………. 2………………….. 3 …………………… 4………………….. 5…………………… 6 ………………….. 5) Are you dealing with Amul Beverages?(if no go to Qno 13) a) Yes b) No 6) Which are the Amul Beverages you sell in your shop? a) Amul Kool b) Amul Kool Cafe c) Kool Koko d) Nutramul Energy Drink e) Amul Kool Chocolate Milk f) Amul Kool Flavoured Bottled Milk g) Amul Kool Flavoured Tetra Pack h) Amul Masti Spiced Buttermilk 7) How frequently you place the order? a) Once in week b) Fortnightly c) Monthly d) Whenever requiredBabasabpatilfrepptmba.com Page 68
  69. 69. To study the distribution channel and Demand of Amul Beverages in Hubli 8) When do you get order stock? a) Next day of order b) After 2 days c) More than 2 days d) Not at all 9) What is your monthly sales of Amul Beverages(no of pack per month)?………… 10) Does the company give discounts/schemes? a) Yes b) No 11) What factors influence you to sell the Amul Beverages? a) Brand Image b) Margin c) Low price d) Retail schemes e) Service f) Quality g) Demand h) Availability 12) Rank your criteria for selling the Amul beverages in your shop Rank in the form of numbers, 1 to 8 (where 1 is highest and 8 is low) Parameter Amul Quality ………… Retail margin ………… Volume sold ………… Supply on time ………… Popular brand ………… Credit facility ………… Complaint handling ……….. Demand ……….. 13) Please mention the reason why you are not selling Amul Beverages in your Shop a) Non availability b) Low Margin c) Late delivery d) No demand for the product e) No discount/scheme f) If any other reason ……………… 14) Any suggestion ………………………………………………………………… ……………………………………………………………………………………… ………………………………………………………………………………………Babasabpatilfrepptmba.com Page 69
  70. 70. To study the distribution channel and Demand of Amul Beverages in HubliName: ……………………………………………………………………………………Address:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………Phno: ………………………… THANK YOUBibliography:Babasabpatilfrepptmba.com Page 70
  71. 71. To study the distribution channel and Demand of Amul Beverages in HubliName of the Book Author1. Marketing Research Parasuraman Grewal Krishnan2. Marketing Management Philip Kotler3. Sales and distribution Management Panda& SahadevWeb Sites:www.amul.comBabasabpatilfrepptmba.com Page 71

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