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

To study the distribution channel and Demand of Amul Beverages in
Hubli

Beverage Industry:

Structure of Beverage Industry:

Beverages

Water Flavored

Non-Alcoholic Alcoholic

Milk Hot Juices Soft Wine Beer Distilled
Beverages Drinks spirit

Water:

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, and
the word beverage has been recurrently defined as not referring to water.

Essential to the survival of all organisms, water has historically been an important and
life-sustaining drink to humans. Excluding fat, water composes approximately 70% of the
human body by mass. It is a crucial component of metabolic processes and serves as a
solvent for many bodily solutes. Health authorities have historically suggested at least
eight 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 States

Babasabpatilfrepptmba.com Page 1

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Environmental Protection Agency has determined that the average adult actually ingests
2.0 litres per day.

Distilled (pure) water is rarely found in nature. Spring water, a natural resource from
which much bottled water comes, is generally imbued with minerals. Tap water,
delivered by domestic water systems in developed nations, refers to water piped to homes
through a tap. All of these forms of water are commonly drink, often purified through
filtration.

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 juice


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Juice is a liquid naturally contained in fruit or vegetable tissue. Juice is prepared by
mechanically squeezing or macerating fresh fruits or vegetables without the application
of heat or solvents. For example, orange juice is the liquid extract of the fruit of the
orange tree. Juice may be prepared in the home from fresh fruits and vegetables using
variety of hand or electric juicers. Many commercial juices are filtered to remove fiber or
pulp, but high pulp fresh orange juice is marketed as an alternative. Juice may be
marketed in concentrate form, sometimes frozen, requiring the user to add water to
reconstitute the liquid back to its 'original state' (Generally, concentrates have a
noticeably different taste than their comparable "fresh-squeezed" versions). Other juices
are reconstituted before packaging for retail sale. Common methods for preservation and
processing of fruit juices include canning, pasteurization, freezing, evaporation and spray
drying.

Popular juices include but are not limited to apple, orange, grapefruit, pineapple, tomato,
mango, carrot, grape, cranberry and pomegranate. It has become increasingly popular to
combine 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 before
they are able to digest other types of food. The early lactation milk is known as
colostrum, and carries the mother's antibodies to the baby. It can reduce the risk of many
diseases in the baby. The exact components of raw milk varies by species, but it contains
significant amounts of saturated fat, protein and calcium as well as vitamin C.


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Soft drinks:

The name "soft drink" specifies a lack of alcohol by way of contrast to the term "hard
drink" and the term "drink", the latter of which is nominally neutral but often carries
connotations 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 fall
into this classification. Many carbonated soft drinks are optionally available in versions
sweetened with sugars or with non-caloric sweeteners.

Hot beverages

A cup of coffee
• Hot beverages, including infusions. Sometimes drunk chilled.
o Coffee-based beverages
 Cappuccino
 Coffee


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 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.)

Other

Some 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
• Yogurt

Soup

Soup is a food that is made by combining ingredients such as meat, vegetables or
legumes in stock or hot/boiling water, until the flavor is extracted, forming a broth.


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Traditionally, soups are classified into two broad groups: clear soups and thick soups.
The established French classifications of clear soups are bouillon and consommé. Thick
soups are classified depending upon the type of thickening agent used: purées are
vegetable soups thickened with starch; bisques are made from puréed shellfish thickened
with cream; cream soups are thickened with béchamel sauce; and veloutés are thickened
with eggs, butter and cream. Other ingredients commonly used to thicken soups and
broths include rice, flour, and grain.

Yoghurt

Cacık, a Turkish cold soup yoghurt variety.

Yoghurt or yogurt, less commonly yoghourt or yogourt (see spelling below), is a dairy
product 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 and
its characteristic tang. Soy yogurt, a dairy-yogurt alternative, is made from soy milk.

Beverages
With the domestic dairy sector slated to cross Rs 500,000 crore in revenues by 2011, milk
seems to have found flavor with FMCG majors. These companies are trying to develop
niche categories to milk in the money.

Coca-Cola and PepsiCo have already announced plans to enter the milk-based beverages
segment in the country. Reliance Retail, which has entered the diary segment with Dairy
Pure, its milk brand, may also expand into niche categories. Industry observers believe

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that Bharti Retail may also be working its way towards marking an entry into the dairy
space.

“Going by the changing preference of consumers for healthier options, this category is
likely to grow bigger in the coming years,” says Anand Shah, the retail and FMCG
analyst at Angel Broking. According Dairy India 2007 estimates, the current size of the
Indian dairy sector is Rs 250,000 crore and has been growing at a rate of 5 per cent a
year.

At present, the Rs 500 crore ready-to-drink flavoured milk category makes up for the
largest chunk of the milk beverages market. The main players in the category include
Indian dairy majors Gujarat Cooperative Milk Marketing Federation (GCMMF) and
Mother Dairy, along with Hershey, Nestle India and Amrit Food.

GCMMF has a wide range of flavoured milk options under the Amul brand, which
includes Amul Cool, Kool Koko and Cool Cafe, while Mother Dairy has Chillz on the
shelf in the category. Nestle also introduced Milkmaid Funshakes last year.

“The liquid milk and allied products category continues to be our main focus since milk
consumption 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 drink
category, 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 growing
at 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 drink
companies entered


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the milk-based drink domain. Pepsi launched chocolate milk under the SoBe brand and
Pepsi’s joint venture with Starbucks rolled out Frapuccino, a refrigerated milk coffee
beverage. Coca-Cola, on the other hand, partnered Nestle USA’s beverages division to
develop 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 would
need to invest significantly to achieve these ends. A stable set-up can only be achieved
over a period of 10 to 20 years,” Sodhi adds.

Beverage firms to flood market with health drinks

This summer, the beverages market will move a little more away from its carbonated
drinks. Stretching the health and wellness plank, beverage makers have lined up five-six
new 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 the
household names, as PepsiCo, Coca-Cola, Amul and GlaxoSmithkline are planning to
introduce these drinks.

"The penetration levels of aerated drinks in India are quite low compared with other
developing and developed markets. Carbonates are expected to register relatively
moderate volume and value growth as consumers are increasingly opting for healthier
beverages such as fruit juices and fruit-based drinks, and even bottled water," said
Harminder 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 the
rising competition this summer from categories falling under the health umbrella. At
present, these categories are juice and juice-based drinks, energy and sports drinks,
malted beverages, probiotic drinks and bottled water.


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PepsiCo India is eyeing a larger share of the Rs 1,200-crore juice and juice-based drinks
market. "These drinks are the fastest-growing category in the beverages market and over
50 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 more
flavours this year. It is also working towards increasing its share of the drinking water
market.

Coca-Cola too is widening its portfolio. "Our entire brand portfolio has been designed to
satisfy the various needs of the consumers -- be it hydration, energy, enjoyment or simply
having fun. As part of the same endeavor, we are exploring a wide variety of beverage
opportunities such as juice and juice-based drinks, energy and sports drinks, flavored
water," said Atul Singh, president & CEO, Coca-Cola India.

According to an industry analyst, the gross margin in the fruit beverages and the bottled
water categories are high, which is incentive enough for beverage makers to strengthen
their 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 - a
Vitamin C-based fruit drink into the market soon. However, there are regulatory
challenges 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, probiotic
drinks. The nascent category has already struck a chord with the Indian consumer to
become a Rs 200-crore market. Dairy companies such as Amul and Mother dairy too
have entered this segment with probiotic lassi.


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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 cooperative
movement in India. It is a brand name managed by an apex cooperative organisation,
Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is
jointly owned by some 2.6 million milk producers in Gujarat, India. It is based in Anand
town of Gujarat and has been a sterling example of a co-operative organization's success
in the long term. The Amul Pattern has established itself as a uniquely appropriate
model for rural development. Amul has spurred the White Revolution of India, which has
made India the largest producer of milk and milk products in the world. It is also the
world's biggest vegetarian cheese brand.
Amul's 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 India's first sports drink Stamina, which will be
competing with Coca Cola's Powerade and PepsiCo's Gatorade.
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an
annual turnover of US $1050 million (2006-07) .Currently Amul has 2.6 million producer
members with milk collection average of 10.16 million litres per day. Besides
India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,
Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to


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enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding
the Japanese markets. Other potential markets being considered include Sri Lanka.
“Dr Verghese Kurien, the chairman of the GCMMF, is recognised as the man
behind the success of Amul”.

History
Amul was formally registered on December 14, 1946. The brand name Amul, sourced
from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control
expert in Anand. Some cite the origin as an acronym to (Anand Milk Producers Union
Limited).
The Amul revolution was started as awareness among the farmers. It grew and matured
into 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 much
like that of his/her counterpart anywhere else in India. His/her income was derived
almost 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 Polson
Dairy in Anand – often milk went sour, especially in the summer season, as producers
had to physically carry milk in individual containers. Private traders and middlemen
controlled the marketing and distribution system for the milk. These middlemen decided
the prices and the off-take from the farmers by the season. As milk is perishable, farmers
were compelled to sell it for whatever they were offered. Often, they had to sell cream
and 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 collect
milk from Anand and supply to Bombay city in turn (about 400 kilometers away). India
ranked nowhere amongst milk producing countries in the world in 1946. Gradually, the
realization dawned on the farmers with inspiration from then nationalist leaders Sardar
Vallabhbhai Patel (who later became the first Home Minister of free India) and Morarji
Desai (who later become the Prime Minister of India) and local farmer, freedom fighter
and social worker Tribhovandas Patel, that the exploitation by the trader could be


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checked only if they marketed their milk themselves. Amul was the result of the
realization 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 of
1948, more than 400 farmers joined in more Village Society, and the quantity of milk
handled 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, volunteered
to help Shri Tribhovandas Patel, the Chairman of KDCMPUL, in setting up a processing
plant. This marked the birth of AMUL.The success of Amul was instrumental in
launching the White Revolution that resulted in increased milk production in India. It is
officially 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 key
factors 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 convert
surplus milk produced in the cold seasons into milk powder and butter3. In 1958, a plant
to manufacture cheese and one to produce baby food were added. Subsequent years saw
the addition of more plants to produce different products. In 1973, the milk
societies/district level unions decided to set up a marketing agency to market their
products. 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 India's largest food products marketing organisation. It is a state level apex
body of milk cooperatives in Gujarat, which aims to provide remunerative returns to the
farmers and also serve the interest of consumers by providing quality products, which are
good value for money. GCMMF markets and manages the Amul brand. From mid-1990's
Amul has entered areas not related directly to its core business. Its entry into ice cream
was regarded as successful due to the large market share it was able to capture within a


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short period of time - primarily due to the price differential and the brand name. It also
entered the Pizza business, where the base and the recipes were made available to
restaurant owners who could price it as low as 30 rupees per pizza when the other players
were charging upwards of 100 rupees.
In September 2007, Amul emerged as the leading Asian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.

Members: 13 district cooperative milk
producers' Union
No. of Producer Members: 2.6 million
No. of Village Societies: 12,792
Total Milk handling capacity: 10.16 million litters per day
Milk collection (Total - 2006-07): 2.38 billion litters
Milk collection (Daily Average 6.5 million litters
2006-07):
Milk Drying Capacity: 594 Mts. per day
Cattlefeed manufacturing 2640 Mts per day
Capacity:

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation
Marketing Award for 2007.

Collection of milk:
Every day Amul collects 447,000 liters of milk from 2.12 million farmers (many
illiterate), converts the milk into branded, packaged products, and delivers goods worth
Rs 6 crore (Rs 60 million) to over 500,000 retail outlets across the country.


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Its supply chain is easily one of the most complicated in the world. How do managers at
Amul 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 will
certainly see one particular photograph. It shows a long line of Gujarati women waiting
patiently for a union truck to come and collect the milk they have brought in shining
brass matkas.

The picture is always prominently displayed. The message is clear: never forget your
primary customer. If you don't, 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 from
intermediaries, gain access to markets and thereby ensure maximum returns for their
efforts.

Based in the village of Anand, the Kaira District Milk Cooperative Union (better known
as Amul) expanded exponentially. It joined hands with other milk cooperatives, and the
Gujarat network now covers 2.12 million farmers, 10,411 village level milk collection
centers and fourteen district level plants (unions) under the overall supervision of
GCMMF.

There are similar federations in other states. Right from the beginning, there was
recognition that this initiative would directly benefit and transform small farmers and
contribute to the development of society.

Markets, then and even today, are primitive and poor in infrastructure. Amul and
GCMMF acknowledged that development and growth could not be left to market forces
and that proactive intervention was required. Two key requirements were identified.


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• 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 network
of cooperatives was developed, which today forms the robust supply chain behind
GCMMF’s endeavors The vast and complex supply chain stretches from small suppliers
to large fragmented markets.

Management of this network is made more complex by the fact that GCMMF is directly
responsible 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 GCMMF's competitive position is
driven 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 progressive
addition of higher value products while maintaining the desired growth in existing
products.

Despite competition in the high value dairy product segments from firms such as
Hindustan Lever, Nestle and Britannia, GCMMF ensures that the product mix and the
sequence in which Amul introduces its products is consistent with the core philosophy of
providing milk at a basic, affordable price.

Umbrella brand:


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The network follows an umbrella branding strategy. Amul is the common brand for most
product categories produced by various unions: liquid milk, milk powders, butter, ghee,
cheese, cocoa products, sweets, ice-cream and condensed milk.

Amul's sub-brands include variants such as Amulspray, Amulspree, Amulya and
Nutramul. The edible oil products are grouped around Dhara and Lokdhara, mineral
water 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-union
conflicts but also created an opportunity for the union members to cooperate in
developing products.

Managing the supply chain:

Even though the cooperative was formed to bring together farmers, it was recognised that
professional managers and technocrats would be required to manage the network
effectively and make it commercially viable.

Coordination:

Given the large number of organizations and entities in the supply chain and
decentralized responsibility for various activities, effective coordination is critical for
efficiency and cost control. GCMMF and the unions play a major role in this process and
jointly achieve the desired degree of control.

Buy-in from the unions is assured as GCMMF’s board approves the plans. The board is
drawn from the heads of all the unions, and the boards of the unions comprise of farmers
elected through village societies, thereby creating a situation of interlocking control.

The federation handles the distribution of end products and coordination with retailers
and the dealers. The unions coordinate the supply side activities.


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These include monitoring milk collection contractors, the supply of animal feed and other
supplies, 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 milk
processing and the production of dairy products. Accordingly, marketing efforts
(including brand development) were assumed by GCMMF. All other activities were
entrusted to third parties. These include logistics of milk collection, distribution of dairy
products, sale of products through dealers and retail stores, provision of animal feed, and
veterinary services.

It is worth noting that a number of these third parties are not in the organized sector, and
many are not professionally managed with little regard for quality and service.

This is a particularly critical issue in the logistics and transport of a perishable
commodity where there are already weaknesses in the basic infrastructure.

Establishing best practices:

A key source of competitive advantage has been the enterprise's ability to continuously
implement 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 successful
models from around the world. It could be the implementation of small group activities or
quality circles at the federation. Or a TQM program at the unions. Or housekeeping and
good accounting practices at the village society level.

More important, the network has been able to regularly roll out improvement programs
across to a large number of members and the implementation rate is consistently high.


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For example, every Friday, without fail, between 10.00 a.m. and 11.00 a.m., all
employees of GCMMF meet at the closest office, be it a department or a branch or a
depot to discuss their various quality concerns.

Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a
process check at the end to record how the meeting was conducted. Similar processes are
in place at the village societies, the unions and even at the wholesaler and C&F agent
levels as well.

Examples of benefits from recent initiatives include reduction in transportation time from
the depots to the wholesale dealers, improvement in ROI of wholesale dealers,
implementation of Zero Stock Out through improved availability of products at depots
and 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 and
sour 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 Union's records show a reduction from 2.0% to 0.5% in the amount of sour
milk/curd received at the union.

The most impressive aspect of this large-scale roll out is that improvement processes are
turning the village societies into individual improvement centers.

Technology and e-initiatives:

GCMMF's technology strategy is characterized by four distinct components: new
products, process technology, and complementary assets to enhance milk production and
e-commerce.

Few dairies of the world have the wide variety of products produced by the GCMMF
network. Village societies are encouraged through subsidies to install chilling units.
Automation in processing and packaging areas is common, as is HACCP certification.


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Amul actively pursues developments in embryo transfer and cattle breeding in order to
improve cattle quality and increases in milk yields.

GCMMF was one of the first FMCG (fast-moving consumer goods) firms in India to
employ Internet technologies to implement B2C commerce.

Today customers can order a variety of products through the Internet and be assured of
timely delivery with cash payment upon receipt.

Another e-initiative underway is to provide farmers access to information relating to
markets, technology and best practices in the dairy industry through net enabled kiosks in
the villages.

GCMMF has also implemented a Geographical Information System (GIS) at both ends of
the 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 services
while providing a better planning tool to marketing personnel.

Mascot:

The Amul baby
Since 1967 Amul products' mascot has been the very recognisable "Amul baby" (a
chubby butter girl usually dressed in polka dotted dress) showing up on hoardings and
product wrappers with the equally recognisable tagline Utterly Butterly Delicious
Amul.The mascot was first used for Amul butter. But in recent years in a second wave of
ad campaign for Amul products, she has also been used for other product like ghee and
milk.
Currently Amul is in the process of getting the Amul Girl registered as the oldest ad
campaign in the Guinness Book Of World Records. Although there seems to be no
competition for this mascot, Amul Corporation is still doing further research to confirm
their claim.


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In Popular Culture:

The establishment of Amul is also known as The White Revolution. The White
Revolution of India inspired the notable Indian film-maker Shyam Benegal to base a
movie 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 production
and distribution. Aside from the great measurable success that this project was, it also
demonstrated the power of "collective might". A small set of poor farmers of Kheda
district in Gujarat had the vision and foresight to act in a way that was good for the
society and not for the self alone

4P’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 in
millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul
Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 42.78
billion in 2006-07). Today Amul is a symbol of many things. Of high-quality products
sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of
indigenous technology. Of the marketing savvy of a farmers' organisation. And of a
proven model for dairy development.


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Bread Spreads

• Amul Butter
• Amul Lite Low Fat Breadspread
• Amul Cooking Butter

Cheese 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 Pack


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• Amul Masti Spiced Buttermilk
Amul introduces the Best Thirst Quenching Drink

Powder Milk:
• Amul Spray Infant Milk Food
Still, Mother's 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 Whitener

Fresh 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 Milk


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For 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 Dahi

Desserts:
• 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.


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• Amul Lassee
• Amul Basundi

Health 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):


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Amul products are available in over 500,000 retail outlets across India through its
network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to
buffer inventory of the entire range of products.

GCMMF transacts on an advance demand draft basis from its wholesale dealers instead
of the cheque system adopted by other major FMCG companies. This practice is
consistent with GCMMF's philosophy of maintaining cash transactions throughout the
supply chain and it also minimizes dumping.

Wholesale dealers carry inventory that is just adequate to take care of the transit time
from the branch warehouse to their premises. This just-in-time inventory strategy
improves dealers' return on investment (ROI). All GCMMF branches engage in route
scheduling and have dedicated vehicle operations.

Distribution Structure for dairy product:

Member Union/
(Manufacturer)

Company Depot

Distributor

Retailer

Customer


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Distribution structure for Ice-Cream:

Member union
(Manufacturer)

Company Hub

Company Depot

Distributor

Retailer

Customer

All 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 retail
outlets.
In Karnataka they have 2 sales Depot one in Dharwad(north) and one in
Bangalore(south), these comes under chanai zonal office, and 115 distributors.
In North-Karnataka sales depot is in near Dharwad. They cover places from chitradurg to
Bidar total 25 district. They have 62 distributors in north-Karnataka, in Hubli and
Dharwad they have 2 distributors.
In Hubli – Narmada trading company


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Ballari galli Hubli
In Dharwad- Shri veerbhadreshwar Marketing
Back side of vijaya theater Dharwad
Price:

At the time Amul was formed, consumers had limited purchasing power, and modest
consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price
strategy to make its products affordable and attractive to consumers by guaranteeing them
value for money.

Promotional Activity:
Advertising

An Amul butter ad on Pakistan's 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 baby
commenting jovially on the latest news or current events. The pun in her words has been
popular. The Amul ads are one of the longest running ads based on a theme, now vying
for the Guinness records for being the longest running ad campaign ever. Sylvester
daCunha, was the managing director of the advertising agency, ASP, that created the
campaign in 1967 whose charm has endured fickle public opinion, gimmickry and all
else.


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Competitors of Amul:
Amul has been able to withstand the onslaught of private and foreign players in the dairy
industry and has also been able to export products in limited quantities. The success of
Amul resulted in similar organizations being setup by state governments throughout
India, most of which had reasonable success. Examples are Milma in Kerala, Vijaya in
Andhra Pradesh, Aavin in Tamil Nadu ,K.M.F ( Nandini ) in Karnataka, Sudha in
Bihar 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 from
multinational companies and big domestic players in the milk and dairy business. Gujarat
Cooperative Milk Marketing Federation Ltd, which markets Amul products, is expecting
a 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 Amul's expanding
business outside Gujarat, its promotional campaigns, its growth targets at home and abroad

Sales Turnover Rs (million) US $ (in million)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850


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2006-07 42778 1050

Entertainment:

Books

• The Amul India Story : Ruth Herediya
• Management Kurien Style : MV Kamath
• The Unfinished Dream : V Kurien

Feature 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
Resourcefulness

Rajiv Gandhi National Quality Award - 1999


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Amul Beverages:

Flavored milk Amul Kool, a low calorie thirst quenching drink, Masti Butter Milk; ready
to drink coffee - Kool Café and India's first sports drink Stamina. With these launches,
the billion dollar Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), Asia's
largest integrated dairy products manufacturing and marketing organization, is now a
leading player in the Indian dairy beverages market with over 90% market share in
branded packaged dairy drinks segment. The milk based drink market has been showing a
hefty double digit growth.

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its
product offeringt in the milk products segment. Other Amul brands are Amul Kool, a low
calorie thirst quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and
India's first sports drink Stamina.

The Indian soft drink market is worth about Rs 7,000 crores per annum. The soft drink
market 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 drink
market. However the growth rate has been stagnant and in fact declining over the past
few years. The non-carbonated drinks category includes special categories like fruit
drinks, juices and milk drinks, etc. With the changing lifestyles and increasing health
concern, the growth in non-carbonated drink category has been much higher than the
carbonated category.

Ready-to-drink coffee from Amul

Anand , Nov. 6
Amul has now entered the branded ready-to-serve coffee market with the launch of Amul
Kool Café all over the country.
Made from pure milk and developed to suit Indian taste, Amul Kool Café will be
available in drink pack options of bottle, cartons and can. Priced at Rs 15 for a 200 ml


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disposable bottle/carton and Rs 20 for a 250 ml can, it provides value for money to
consumers, the company said in a release here.
Amul Kool Café

Flavours : Coffee

Pack Size : 200ml Glass Bottle, 200ml Tetra Pack, 250ml Can

Ingredients : Toned Milk, Sugar & Coffee. Contains permitted Emulsifier and Stabiliser.

Nutrition Facts:

Servingsize:200ml
Serving per pack : 1

Amount per serving: Energy 220 Calories
Energy from fat 99 Calories

* %Daily value
Total Fat 9.0 g 14.5
Protein 7.0g 14.0
Total Carbohydrates
8.0
24g
Calcium 240 mg 24.0
Vitamin A 252 IU 5.0


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Not a significant source of Dietary Fibre, Vitamin C and Iron. . % Daily Values are based
on 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),
Asia's largest integrated dairy products manufacturing and marketing organisation and
the country's largest food company, further consolidates its position in the beverage
market.
The non-carbonated drink market has been showing a hefty double-digit growth since the
last couple of years. GCMMF is now a leading player in the Indian dairy beverage market
with 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 beverage
market, Amul introduced low-calorie thirst quenching drinks and tasty Amul Masti
Buttermilk in addition to Amul Kool range of flavoured milk and also the country's first
Sports 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 the
introduction of chocolate milk under brand name of Amul Kool Koko. Made from pure
milk 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 a
200ml tetrapak, Rs 20 for a 250ml can and Rs 50 for 1lt tetra pack, providing value for
money to the consumers.

Pack Size : 200ml Glass Bottle, 200ml Tetra Pack, 250ml Can

Ingredients : Double Toned Milk, Sugar, Cocoa Solids & Water. Contains Permitted
Stabiliser and artifical flavouring substances.


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Nutrition Facts :

ServingSize:250ml

Amount per serving : Energy 266 kcal
Energy from fat 55 kcal

* %Daily value
Saturated Fat 4.4g 22.6
Cholesterol, 7.8mg 2.5
Sodium 125.0 mg 6.0
Total Carbohydrates
13.8
42.5g
Protein 9.4g 18.8
Calcium 400 mg 81.0


Amul has introduced a slew of milk-based drinks over the past few months. This has been
done 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 basket
in 2007.


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Amul Kool

The nutritious and tasty flavoured milk in different flavour such as Kesar, Elaichi, Rose,
Mango etc

Flavours : Kesar, Elaichi, Rose, Mango, Strawberry

Pack Size : 200ml Glass Bottle, 200ml Tetra Pack, 250ml Can, 1 Litre Tetra Pack

Ingredients : Toned Milk and Sugar, Contains permitted synthetic Food Colours and
added nature-identical flavouring substances.

Nutramul Energy Milk:

Pack Size : 200ml Glass Bottle

Ingredients:

Toned Milk, Malt Extract, Cocoa Solids & Sugar.
Contains Permitted Natural Colour and added nature identical flavour.


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Nutrition Facts:

ServingSize:200ml

Amount per serving :

Energy 89 kcal / 100ml
Energy from fat 28 kcal / 100ml

* %Daily value
Saturated Fat 3.8g 19.5
Cholesterol, 0.0166g 5.2
Total Carbohydrates
7.9
24g
Protein 6.4g 12.8
Calcium 260 mg 52.8
Vitamin A 75.8 mcg 5.0


Amul Masti Spiced Buttermilk:


Hubli
Product Details:

• Product - Amul Masti Spiced Buttermilk
• Pack - 200ml Tetra Brik
• MRP - Rs. 5.00

Ingredients -

Milk Solids, Common Salt, Spices and Condiments, Contains permitted stabilizer

Most 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 outsider

Distribution Network


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Distribution channels are probably the most visible aspect of any company’s marketing
efforts. A recent estimate puts the number of retail out lets in India at 5 million. The retail
industry provides livelihood to more than 15 million people in the country. If one
included in this the number of distributors, wholesalers, agents including the army of life
insurance agents, transporters, warehouse keepers, and all other entities involved in the
distribution of products and services to the end consumers.

“Distribution channels are sets of interdependent organizations involved in the
process of making a product or service available for use or consumption”.

Distribution function is currently undergoing tremendous changes in terms of both its
span and productivity.

Intermediaries are required to smoothen the flow of goods and services by engaging
themselves in sorting function. The sorting function performed by the intermediaries
includes

• 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 activities


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• Developing policy guidelines for the smooth functioning of the channel on a day
to day basis

In the wake of increasingly complicated supply chains, distribution network design plays
a 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 your
competitors.

Comparing the channel design:

The design would basically vary in terms of the components that constitute the logistical
network as well as the type of members who constitute the commercial network.

A firm channel consisting of distributors, wholesalers, and retailers. Once a few feasible
and viable designs have been generated, they have to be compared in terms of the
following criteria to select the most suitable.

Effectiveness:
The effectiveness of a channel is measured by analyzing whether the objectives set for
the channels can be achieved. For instance, if one of the objectives includes zero waiting
time, the effectiveness criterion would look at whether this service objective can be
achieved without fail by the channel system.

Efficiency:
The efficiency criterion is concerned with the input expended for achieving the level of
output. If two channel designs deliver the same level of outputs but one channel design
requires fewer inputs in terms of logistical and other types of inputs, then the second
channel design is deemed to be more efficient.


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Equity:
The principle of equity is very important. The constituents of a channel should be
remunerated to the extent of their participation in the channel. Also, the remuneration
pattern should reflect the criticality of each of the activities.

Scalability:
The fourth major consideration for comparing the channel design is the extent to which it
is scalable. If there is an unusual surge in demand, can the channel system handle it? This
criterion becomes very important in case of products where it is not very easy to forecast
demand 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 will
the channel system be able to fulfill the resultant rapidly changing demand This assumes
greater significance when the firm is involved in marketing high-technology products
where rapid innovation is always a possibility.

Distribution Network Design Solutions:

An optimal distribution network is intelligently designed to minimize costs by providing
the customer the right goods, in the right quantity, at the right place, and at right time. A
tall order, right In most organizations, controlling distribution costs involves striking a
balance between warehousing and transportation. While more distribution centers drives
down the cost of transportation, the opposite holds true as well. Tompkins distribution
network 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?

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• What should the service levels be?
• Which transportation methods should be used?

Tompkins Associates pioneered the use of computers for modeling and analyzing
distribution networks. Nobody does it with the depth of understanding or attention to
detail that we do. We choose from an array of the best modeling tools to best suit each
client's operation.

Understanding Distribution Network Design:

Because the volatile forces at play in the market today can cause a company's momentum
to vanish into thin air, we design into your distribution network the flexibility to adjust to
changing 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 economy

Not only will we create the most demand-flexible, cost-effective distribution network, as
a full-service consulting and integration firm, we can build it for you and step you and
your employees through the transition to the new network. Tompkins can provide your
firm everything from site selection and real estate services to construction and integration
services.


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Distribution Network Analyses:

Some of the analyses performed during a distribution network design project:

• Demand Analysis
• Transportation Analysis
• Economic Analysis
• Sensitivity Analysis
• Alternatives Analysis
• Model Validation


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Need for the study:

My project is a small effort to understand the distribution channel and to know the
demand of Amul Beverages in Hubli and Dharwad city. This will help the company to
concentrate on their loop holes. The study will make to know the feelings and opinions of
the 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 market

To 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.


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About the project
This project was undertaken in GCMMF LTD Dharwad, “To study the distribution

channel and Demand of Amul Beverages in Hubli, Dharwad city”.

Management Problem:

Improper distribution channel of Amul Beverages With respect to Hubli, Dharwad city

Research Problem:

“To know the distribution channel and Demand of Amul Beverages in
Hubli, 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.


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Methodology:

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 direction
for any further research needed. The primary purpose of exploratory research is to shed
light on the nature of the situation and identify any specific objectives or data needs to be
addressed through additional research .exploratory research is most useful when a
decision maker wishes to better understand a situation and /or identify decision
alternatives.

Descriptive Research:

Descriptive Research aim is to describe something. Specifically, its intended to generate
data describing the composition and characteristics of relevant groups of units such as a
customers, sales people, organizations, and market areas data collected through
descriptive research can provide valuable information about the study units along
relevant characteristics and also about association among those characteristic the
fallowing examples illustrate the use of descriptive research in a marketing context.

Type of data
Both primary data and secondary data was collected


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Data Collection Method
Primary Data:
Primary Data was collected specifically for a research. The primary data was collected
through questionnaire method where in the questionnaire was designed to be structured &
non-structured. A systematic collection of information was done directly from
respondents.

Secondary Data:
The secondary data such as actual amount spent, cost of production number of purchase
indent etc collected from annual reports, document and accounts maintained by company.
Information required for analysis and interpretation of data are gathered from articles in
the professional journals internet, by referring some standard books.
The first step in the data collection approach is to look for secondary data. Usually
secondary data is developed for some purpose other than for helping to solve the problem
at hand.
In this survey the secondary data was collected through company guide and company
website .

The collected data was processed by using SPSS.

Survey method:

The related data or information will obtain by personal administration through
questionnaire i.e. personal survey

Sampling method:

The method use for survey is non-probability, convenience sampling method

Number of field workers:

Survey will conduct by a single person (female)


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Geographical Area:

The survey will conduct in the geographical area of Hubli and Dharwad city.


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Population:

i)Extent: Hubli and Dharwad city
ii)Time : 4 months

Sampling Design:

Sampling Unit: Retailer
Sampling Method: non-probability, convenience sampling
Sampling Size: 100
Research instrument: Questionnaire
Sampling Area: Hubli and Dharwad city


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Tools and Techniques of Data Collection

The above mentioned sampling units were interviewed personally i, e face to face
interviews were done.

Questionnaire was used for data collection from customers, in order to know “the
distribution channel and Demand of Amul Beverages in Hubli & Dharwad ”.


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Data Analysis:

Type of outlet

Type 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 100 100.0 100.0

Place
Valid
Frequency Percent Cumulative Percent
Percent
Dharwad 50 50.0 50.0 50.0
Hubli 50 50.0 50.0 100.0
Total 100 100.0 100.0


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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

place

Interpretation:
As per the above table in 100 retailers 50 in Dharwad & 50 in Hubli, whom I met during
survey 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 -8


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Deal with Amul beverages

Deal 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 beverages

Interpretation:

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 beverages


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Varity 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 kool

Interpretation:
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 outlet


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Placing the order

placing 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 order

Interpretation:


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As 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 monthly

Order getting

order getting
Frequency Percent Valid Percent Cumulative Percent
not
47 47.0 47.0 47.0
applicant
next 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 100 100.0 100.0


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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 getting

Interpretation:

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 order


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Monthly sales of Amul beverages (no of pack per month)

Type of out let Monthly sales(no of pack per
month)
Bakery 85
Super Bazaar 9
Institution 30
Cool drink shop 10
Any other 4

Interpretation:
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 packs


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Discounts/schemes

Discounts/scheme
Valid
Percent
Not
47 47.0 47.0 47.0
applicant
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/scheme

Interpretation:
• 53 % of the retailers are not getting any discounts/shemes
• Only 3% of the retailer getting discounts/schemes

Influence factor


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Influence factor
Valid
Percent
not
47 47.0 47.0 47.0
applicant
brand 4 4.0 4.0 51.0
quality 28 28.0 28.0 79.0
demand 20 20.0 20.0 99.0
Availabili
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 factor

Interpretation:
• 28 % of the retailers are selling because of quality


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• 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

Criteria for selling Amul beverages in your shop

Quality margin Volume Supply Brand Credit Demand Complaint


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sold facility handling
383 195 192 211 357 152 355 57
1 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 WTCOMPLT


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Interpretation:
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 handling

Reason for not selling Amul beverages in your shop

Reason for not selling Amul beverages
Valid
Percent
Not
53 53.0 53.0 53.0
applicant
Non
12 12.0 12.0 65.0
availability
low margin 5 5.0 5.0 70.0
no demand 7 7.0 7.0 77.0
No
discounts/sc 3 3.0 3.0 80.0
heme


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 beverages

Interpretation:
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 margin


Hubli
Findings:

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 month


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 margin

Recommendations:


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.


Hubli
Limitations:

• 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.


Hubli
Conclusion:

After going through detailed study, I come to the conclusion that compared to the
distribution network of other brand of beverages to the Amul, it has to improve their
network properly and make product available to the customer and also handle the
customer problem if any. Company has to maintain a good relationship with the retailers
by giving better margin, schemes/discounts.


Hubli
Questionnaire
Dear 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 required


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 …………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………


Hubli
Name: ……………………………………………………………………………………
Address:
……………………………………………………………………………………………
……………………………………………………………………………………………
…………………………………………………………………………………………
Phno: …………………………
THANK YOU

Bibliography:


Hubli

Name of the Book Author
1. Marketing Research Parasuraman Grewal Krishnan
2. Marketing Management Philip Kotler
3. Sales and distribution Management Panda& Sahadev

Web Sites:

www.amul.com


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

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