“Study
on the Penetration of „Amul kool milk ‟ beverages product in the retail outlets of Cochin as well as the factors that Influence the Stocking Decision of these products”
SUMMER SUMME R PROJECT PROJECT
Submitted Submitted to RAJAGIRI SCHO SC HOOL OL OF MANAGEMENT
In partial fulfillment of the requirement of the award of the
MASTERS DEGREE IN BUSINESS B USINESS ADMINISTR ADMINISTRATIO ATION N (2007-2009)
By RAHUL RAHUL RAJ
Register No. 5355
RAJAGIRI SCHOOL OF MANAGEMENT RAJAIRI COLLEGE OF SOCIAL SCIENCES RAJA RAJAGIRI GIRI VALLEY PO KOCHI - 682039
DECLARATION
I hereby declare that the report titled “A Study of the Retail Penetration of Amul products
in Cochin” is a bonafide
record of the summer project done by me for Amul INDIA
LTD, Cochin during the period April-May 2008 as part of my MBA program at Rajagiri School of Management, Kochi. This study has been undertaken in partial fulfillment of the requirement for the award of Master of Business Administration by Mahatma Gandhi University, Kerala
I also declare that this report has not been submitted in full or part thereof, to any university or institutions for th t he award of o f any an y degree or dipl dip lo ma.
Place Place : Kochi Koc hi
RAHUL RAJ
Date: Date: 09/06/2008
Rajag Rajagiri iri Sch Sc hool oo l o f Management
2
ACKNOWLEDGEMENT My gratification and elation on the success of this project would be incomplete without mentioning the names of all the people who helped me with it and without whose guidance and and en e ncouragem co uragemen entt this wouldn‟t have been successful.
Above all I thank My Family for his grace and blessings at each and every stage of the project. I would like to express my deepest gratitude to the organization guide, Mr. Sudheer Sudhakaran, Deputy Manager (Sales), Amul Indi In dia a Ltd., Cochin for having given me
the opportunity to do my p roject roject work wo rk in the organization. or ganization. I extend my sincere thanks to Mr. George Paul, Faculty Member, Rajagiri School of Management, Cochin for having spared his valuable time with me and for all the guid guid ance given given in executing execut ing the project project as pe r requirements. requirements. Last but not least, I would like to record my deepest sense of gratitude to my friends for their their suppor s upportt and co nstant nstant encour e ncourage age ment.
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TABLE OF CONTENTS
Sl.No 1 2
CONTENTS CONTEN TS
Page Page No
Executive Summary
5
Industry Profi Pro file le
6
Company Profile
9
Research Methodology
11
Data Analysis
15
Findings
30
Recommendation
32
Bibliography
34
Appendix
35
3
4 5 6 7 8 9
4
EXECU EXECUT TIVE SUMMARY This This p roject roject was undertake undertaken n with the objective o f pe netration o f kool koo l milk product in the o utlet utlet level leve ls. It also looked into the different facto facto r o f stock stocking ing dec ision sio n to to the product in the retail reta il o utlets . The study was conducted co nducted at Amul Indi Ind ia Ltd, Cochin Coch in branch. bra nch. The retailer‟s preference was studied through using questionnaire.
A sam sa mple s ize o f 60 respondent respo ndentss was taken take n for the s tudy, w hose respon respo nses were we re studied studied and interpreted interpreted .The .T he sampling design was used used convenie nce sampli samp ling. ng. The process o f analysis analys is was done through through excel wo wo rk sheets, freque freque ncy table, table, percentage analysis etc.
It was fo und that d ue to lo w consumptio co nsumptio n o f milk, there is is no more a ware ness o f milk product here It was the major cause to the low sell of kool milk product. Like that penetration level in the outlet of milk product was low.
To the consider of stocking decision of product in retail outlet, Trust of the company was the first preference prefer ence of the retailers retailers then cre dit dit on the product.
Finally the whole study of the research work , the company needs the effective advertisement of the product in the local channel and print media for awareness of kool product.
5
INDUSTRY PROFILE FOOD INDUSTRY The food industry is the complex, global collective of diverse businesses that together supply much of the food energy consumed by the world population. Only subsistence farmers, those who survive on what they grow, can be considered outside of the scope of the modern food industry. The food industry includes: Regulation: local, regional, national and international rules and regulations for
food production and sale, including food quality and food safety, and industry lobbying obb ying activiti ac tivities es Education: academic, vocational, consultancy
te chnology Research and deve lopme lopme nt: food te insuran nce, credi cred it Financial services: insura Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural
construct constructiio n, etc. a nd livestock, seafood Agriculture : raising of crops and Food processing: preparation of fresh products for market, manufacture of
prepared food products Marketing : promotion of generic products (e.g. milk board), new products, public
opinion, through adv ad verti ert ising, packa ging, publi pub licc relations relatio ns,, etc Wholes Wholes ale and dist distributi ributio o n: warehousing, transportation, logistics Retail: supermarket chains and independent food stores, direct-to-consumer,
restaurant, food services ADVANTAGE ADVANTAGE OF INDIA UNDER FOOD INDUSTRY:
India is one of the largest food producers in the world India has diverse agro-climatic conditions and has a large and diverse raw material base suitable suitable for food food p rocessing com co mpanies pa nies
6
Investme nt requirement requ irement of around aro und US$ 15 billion billio n exists in the food food processing sector India is looking for investment in infrastructure, packaging and marketing Ind Ind ia has has huge huge scien scientifi tificc and research talent pool poo l A largely untapped domestic market of 1000 million consumers 300 million upper and middle class consume processed food 200 million million more consumers expected expected to shift to to processed food by 2010 Well developed infrastructure and distri distr ibuti bu tion on network Rapid urbanization, increased literacy, changing life style, increased number of women in workforce, rising per capita income- leading to rapid growth and new opportunities in food and beverages sector 50 per cent of househ house ho ld expenditure e xpenditure by Indian India ns is on o n food food items items Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia) Under the food food industry, industr y, Dairy product prod uct is very important impor tant part par t o f food processing. proce ssing. Da Da iry processing is acting good role in India.
Dairy Da iry Processing Processing India ranks first in the world in terms of milk production. Indian production stands at 91 million tones growing at a CAGR of 4 per cent. This is primarily due to the initiatives taken by the Operation flood programmes in organizing milk producers into cooperatives; building infrastructure for milk procurement, processing and marketing and providing financial, technical and management inputs by the Ministry of Agriculture and Ministry of Food Processing Industries to turn the dairy sector into viable self-sustaining organized sector. About 35% of milk produced in India is processed. The organized sector (large scale dairy plants) processes about 13 million tones annually, while the unorganized sector processes about 22 million tones per annum. In the organized sector, there are 676 dairy plants in the Cooperative, Private and Government sectors registered with the Government of India and the state Governments.
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India has a unique pattern of production, processing and marketing/consumption of milk, which is not comparable with any large milk producing country. Approximately 70 million rural households house holds (primarily, small a nd marg marginal inal farmers farmers and la ndless ndles s labo labourers urers ) in the country are engaged in milk production. Over 11 million farmer are organized into about 0.1 million village Dairy Cooperative Societies (DCS)(about 110 farmers per DCS). The cumulative milk handled by DCS across the country is about 18 million kg of milk per day. These cooperatives form part of a national milk grid which links the milk producers through out India with consumers in more than 700 towns and cities bridging the gaps on account accoun t o f seaso se asonal nal a nd regi reg io nal variat variations ions in the a vailability vailabil ity o f milk. The Ministry of food Processing Industries is promoting organized Dairy processing sector to accomplish upcoming demands of processed dairy products and helping to identify various areas of research for future product development and quality improvement to revamp the Indian dairy export by way of providing financial assistance to the dairy processing units. 32 Units have been sanctioned financial assistance (Rs.591 lakhs) under the p la n sche me of the Ministry d uring the year year
2006-07.
Major Indian Indian and Overse Overse as Players Players in the Food indust industrry
ITC Limited Parle Products Pvt. Ltd. Agro Tech Foods Amul Perfetti India Ltd. Cadbury India Ltd. PepsiCo India Holdings Nestle India Pvt. Ltd. Britan Britannia nia Industries Ltd. Hindustan Uni Lever Limited MTR foods limited Godrej industries Limited Dabur India Ltd.
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COMPANY PROFILE Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in
India. It is a brand name managed by an apex cooperative organisation, Gujarat Cooperative 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 . GCMMF:
Gujarat Gujarat Cooperative Cooperat ive Milk Milk Marketing Marke ting Federation Fede ration (GCMMF) is India's largest food 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. 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 Co la'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 has e ntered ntered o verseas marke markets ts suc suc h as Mauritius, Mauritius, UAE, USA, Banglades Banglades h, Australia, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets .Other .Other poten pote ntial markets being co nsidered nsidered include include Sri Lanka. Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected elected chairman c hairman of GCMMF.
9
ACHIEVEMENT:
Amul :Asia‟s largest dairy co-operative was created way back in1946 to make the milk
producer self-reliant and conduct milk- business with pride. Amul has always been the trend setter in bringing and adapting the most modern technology to door steps to rural farmers.
Amul Amul created histo history ry in following areas: a)First a)First self mot ivated ivated a nd a utonomous tonomo us farmers‟ organization comprising compr ising o f more than
5000000 50000 00 marginal milk milk p roducers rod ucers o f Kai Ka ira District. District. b) Created Dairy co-operatives at village level functioning with milk collection centres owned by them. c) Computer Computer ized ized milk co llect llectiio n syste syste m with electronic scale and comput comp uter eriz ized ed acco unting unting system. d)The first and only organization in world to get ISO 9000 standard for its farmers cooperatives. e)First to produce milk from powder from surplus milk. Amul is the live example of how co-operation amongst the poor marginal farmers can provide means for the socio-economic development of the under privileged marginal farmers.
Amul in abroad: Amul is going places. Literally. After having established its presence in China, Mauritius and Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), India‟s
largest milk cooperative, is waiting to flood the Japanese market. Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products products are a re already available on o n she she lves across across several se veral countries, including the US, China, Australia, Australia, West Asian Asia n countries countries a nd Africa. Africa. GCMMF recorded recorded a turnover of Rs 2,922 crore last fiscal. fiscal. Its products include pouch milk, milk, ultra ultra heat treated (UH T) milk, milk, ice-cream, ice- cream, bu b utter, cheese and a nd buttermilk. buttermilk.
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RESEARCH METHODOLOGY
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TITLE TITLE OF THE ST S TUDY A study of the penetration of „AMUL kool mlik ‟ bev be ve rages prod products ucts in the retail outlets of Cochin Coc hin & the factors that influe influence nce the stocking dec ision sio n of retailers retailers of o f such prod ucts.
OBJECTIVE OBJECTIVE OF THE RESEARCH To find out the penetration of „AMUL KOOL MILK ‟ beverages products in the retail retail outle o utlets ts of o f Cochin Coc hin with refere referen nce to retailers of such products. To find out the factors that influences the stocking dec isio isio n of retailers of kool milk milk bevera beverage gess product in Cochin. Coc hin.
PROBLEM STATEMENT There has been a drop in the percentage of retail outlets in Cochin where Amul had penetration for its products, this study is intended to find out the percentage of outlets where penetration of Amul products exists now and find out the factors that influence the buying d ecision of retailers of beverage prod uc ts.
SCOPE OF THE ST S TUDY The scope of the study is limited solely to the markets visited by the researcher for the purpose of research; this may hence not be a total reflection of the penetration of AMUL products for all the retail outlets in Cochin.
SOURCES OF DATA Primary sourc so urces es The primary data was collected through questionnaires. They were filled using the sched scheduled uled method of o f data co llect llectiion by b y the rese rese archer. archer.
Secondary sources The secondary sources were used only for collecting information regarding the sample, they were however not used for analysis.
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RESEARCH DESIGN A Research Research design de sign specif spec ifies ies the methods and procedures p rocedures for conducting a particular partic ular study. It is a map (or) blue print to which the research is to be conducted. Descriptive research design has been considered as a suitable methodology for present study and for data analysis.
SAMPLING DESIGN The sampling sa mpling design used was Convenience s ampling, which is a non-probabil non-probab ility ity sampling met meth hod. The co nvenience nvenience factors were t he a vailability vailability an a nd approac habil ab ility ity of o f the respondents.
POPULATION All types of outl ou tlets ets tha t hatt stock and sell kool milk milk be verages verages products in the the markets. The outlets have been classified into as follows
Convenience Convenience stores : All k ind ind s of shops includ includ ing bakeries
Eateries : all kinds of eating joints
Groceries : all shops selling groceries
PLACES OF STUDY The study was conducted in the retail outlets in and around COCHIN in the following areas i.
Aluva
ii. ii.
Chembumukku
iii.
Ernakulam
iv. iv.
Kakkanad
v.
Kaloor
vi. vi.
Kachheripadi
vii.
Mattancherry
viii.
Menaka
ix. ix.
M.G.Road
x.
Palarivattom
xi. xi.
Tripuntra
xii.
Thevra jn.
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MEASUREMENT The research objective requires the researcher to find out the penetration of Amul kool milk milk beverag bevera ges products p roducts with reference reference to retailers retailers of su s uc h products. For this the following data relevant were collected a. Amul p roduct rod uct sol so ld b y the retailers reta ilers b. If sold, then which of the competitors complimentary products, has a higher penetration in that outlet. c. Strategies adopted by the company and its distributors that influence the stocking decision for the product.
LIMITATIONS LIMITATIONS OF THE RESEARCH The limitations of the research were as follows 1.
Lack of proper ex e xperi pe riee nce on the part of th t he researcher in con co nd ucting such studies in the past.
2.
Time frame required was not enough to survey more number of outlets.
ANALYSIS ANALYSIS TECHNIQUES T ECHNIQUES Quantitative analysis is performed using the data collected at each outlet to estimate the
presence of Amul products. prod ucts.
Tools Utilized
Percentage Analysis
Graph Chart
14
DATA ANALYSIS & INTERPRETATION
15
3. Outlet Types visited for the purpose of research.
Outlets Outlets
Conven Convenience ience Store Store
Eatery Eatery
Grocery
Total Total
35
13
12
60
The above table shows that o ut of 60 outlets surveyed; the t here re were 35 co nvenience nvenience stores,13 sto res,13 eatery and 12 grocery.
RETAIL OUTLETS SURVEYED Series1
GROCERY
EATERY
CONVENIENCE STORE
20%
22% 22 %
58%
Of all the the retail outlets surveyed, 58% are a re convenience stores, 20% are grocer groceriies, 22 % are eateries.
16
4. How long have you been into the kool milk business?
Less than than 1 yea r
1-3 year yea rs
More years
than than
3 Total
The table show s that out of 60 outlets,30 are those outlet which are selling the product less than 1 year, 17 are 1-3 years and 11 are more than 3 years.
Outlets Outlets
30
17
11
60
DURATION DURATION SINCE SIN CE IN BUSINESS Series1 52%
29% 19%
L ESS THA N 1 YEA R
1 - 3 YEA RS
MO RE THA N 3 YEA RS
Overall retail outlet surveyed, 52% are those outlet which have this product less than 1 years, 29% have 1-3 years and 19% have more than 3 years.
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5a.Penetratio 5a.Penetratio n Level of Amul prod ucts ucts in retail re tail outlets of Cochin Coc hin..
AMUL TYPE
TOTAL
YES 25
NO 10
Eatery
3
10
13
Grocery
4
8
12
Total
32
28
60
Convenience Store/ Store/ M odern Trade
35
The table above shows sho ws that the the product prod uct Amul has penetrated pe netrated in 32 o utlet in the comparisio comparisio n of 60 out lets .
PENETRATION PENETRATION OF AMUL PRODUCT IN THE RETAIL OUTLET
47%
YES
53%
NO
The grap graph h defines that Amul penetrated pe netrated in 53% outlet whil w hilee no pen pe netration in 47% outl o utlets. ets.
18
MILMA TYPE YES
NO
TOTAL
Convenience Store/Modern Trade
17
18
35
Eatery
2
11
13
Grocery
4
8
12
TOTAL
23
37
60
The table above sho sho ws that that the the prod produ uct Milma has penetrated in 23outl 23o utlets ets to to the retail outlets surveyed.
PENETRATION PENETRATION OF O F MILMA PRODUCT PRODUCT IN THE RETAIL OUTLET Series1 62%
38% 38 %
YES
NO
The above graph represents the penetra penetra tio tio n o f Milma Milma p roducts which has 38% of outlets surveyed.
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OTHERS TYPE YES
NO
TOTAL
Convenience Store/Modern Trade
6
29
35
Eatery
8
5
13
Grocery
8
4
12
TOTAL
22
38
60
The table table abo ve sho sho ws that the products o f othe ot herr local loca l b rands available in 22 outlet o utlet of 60 outlets surveyed.
PENETRATION PENETRATION OF OTHER LOCAL BRAND BR AND IN RETAIL OUTLETS
Series1
63% 37%
YES
NO
The graph graph represe nts the penetration of o f kool koo l milk milk bev be verage era gess products of oth ot her bran bra nds is 37% in Cochin Coch in outlets.
20
5b.Which company kool produ prod uct do yo u sell sell most? AMUL OUTLETS OUTLETS
30
MILMA 18
OTHERS OTHERS
TOTAL
12
60
The tab table le shows that the sell o f Amul is higher in 30 outlet while w hile Milma in 18 and Others in 12 outlets of 60 outlets.
MOST SELL OF COMPANY PRODUCT
OTHERS
MILMA
AMUL
20%
30%
50%
Here chart represents the higher sell of product of the company where Amul is higher in 50% outlets where as Milma in 30% outlet and others in 20%.
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6.Outlets 6.Outlets share s hare of the various kool koo l milk beverages beverages prod uct in cochin.
AMUL OUTLETS
MILMA
32
23
OTHERS OTHERS 22
The table defines that in 60 outlets, 32 are those outlets where Amul available, Milma in 23 and Others in 22 outlets.
OUTLETS OUTL ETS SHARE SHA RE OF VARIOUS VARIOUS KOOL MILK BEVERAGES BEVE RAGES PRODUCT
OTHERS 29%
AMUL 41%
MILMA 30%
From the graph it is clear that Amul has outlets share of 41%, followed by Milma with outlets outlets shar s haree of o f 30% and t he other local brands bra nds have outl o utlets ets sha s hare re of 29%.
22
7a,8a,9a. Availability Availability o f credit, cred it, discount discount and a nd good distribution channel in Amul p roduct.
AMUL OUTLETS
YES
NO
CREDIT
12
20
DISCOUN DISCOUN T
10
22
GOOD GOOD DISTRIBUTION CHANNEL
20
12
The table defines credit, discount and good distribution channel of Amul.
Amul available in32 outlet of 60 outlets surveyed. Among 32 outlets of Amul, only 12 outlets get credit while 20 outlet do not get.
Regarding discount, only 10 outlets get discount while 22 outlets don’t get.
For distribution channel, 20 outlets said that Amul distribution channel good as well as moderately good where as 12 outlets said bad distribution channel.
23
69% 63%
70
63%
60 50
37%
40
37% 31% YES
30
NO
20 10 0 C R ED I T
DISCOUNT
GO O D DISTRIBUTION CHANNEL
In the above chart, it defines that 37% outlets are getting Amul credit, 31% discount and 63% outl out le ts a gree that Amul has has a good good distributi distrib utio o n c hannel.
7b,8b,9b. Influencing factor for stocking decision on the basis of Credit, Discount and Distribution Distribution c hann han nel.
INFLUENCE YES
NO
CREDIT
37
23
DISCOUN DISCOUN T
29
31
DISTRIBUTION DISTRIBUTION CHANNEL
35
25
This table shows the influencing factor of stocking decision on the availability of credit, discount and distri d istrib b utio utio n channel of the compa ny. 24
Out of 60 outlets surveyed, 37 outlets said that credit influence his stocking decision while 23 outlets said no influence his Stocking decision. Regard Regard ing discount, 29 outlets agree that discount influence influence his his stock ing dec ision sio n while 31 outlets not influenced by discount. When consider on the distribution channel, 35 outlets agree that it influence the stocking decision where as 25 outlets said that no influenced by distribution channel.
NO
YES
42% DISTRIBUTION C HANNEL HANNEL
58% 52%
DISCOUNT
48% 38%
CREDIT
62% 0
20
40
60
80
According to this chart, 62 % outlets accept that credit influence his stocking decision while 48% told discount and 58% said that good distribution channel influence his stocking decision.
25
10a.Replace 10a.Replace me nt offer offer to the expired packed product by b y the co mpany? pan y?
REPLACEMENT OFFER
CHANNEL
AMUL
MILMA
OTHERS OTHERS
TOTAL
25
17
18
60
Table Table represents that 25 outlets said , Amul has better bet ter replacement offer while 17 said Milma and 18 said others.
REPLACEMENT OF EXPIRED PRODUCT PRODUCT
30%
42%
28%
AMUL MILMA OTHERS
42% of the retailers believed that Amul has the better replacement of packed expired product product where w here as 28% beli be lieved eved Milma a nd 30% Others. Ot hers.
26
10b.Replace 10b.Replace ment o ffer ffer to the expired product influe influen nce the stocking decisi decis ion?
YES REPLACEMENT OFFER
36
INFLUENCE NO
TOTAL
24
60
Out of 60 outlets surveyed ,36 outlets influenced by replacement offer while 24 outlets did did n‟t influence b y replace replacement ment offer.
INFLUENCE OF REPLACEMENT OFFER AS A STOCKING DECISION
NO 40% YES 60%
rep lacemen aceme nt offer influence his On the outlet surveyed ,60% of the retailers said that the repl stocking decision decis ion while 40% said that repl rep lace ment o ffer ffer does not influence his stock stocking ing decision.
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Q11. Ranking of some of o f the other other factors that t hat influence a re re tailers stock stocking ing decision.
PROMOTION PROMOTION
PACKAGING PACKAGING
OFFERS
CONSUMER CONSUMER PREFERENCE
OUTLET PREFER PREFER ENCE
20
8
10
22
FINAL FINAL RANK
2
4
3
1
RANKING RAN KING FACTOR INFLUENCING INFLUENCING DECISION Series1 1 2 3 4
P RO MOTIO N
PA CK A GING
OFFERS
CONSUMER PREFERENCE
From the above table, it is observed that, consumer preference are the most important factor that affects the stocking decision of the retailer, followed by promotions done by the company to pro pro mote mote its it s products, offers and finally packaging of the product.
28
Q12. Over O verall all ranking of the influencing factors to the t he buying decision of retailers.
CREDIT
DISTRIBUTION CHANNEL
DISCOUNT COMPANY TRUST
OUTLET PREFER PREFER ENCE
18
13
10
19
FINAL FINAL RANK
2
3
4
1
RAN KING OF BUYING B UYING DECISION BY RETAILORS RETAILORS Series1
COMPANY TRUST
DISCOUNT
DISTRIBUTION CHANNEL
CREDIT
1
4
3
2
From the above table it is observed that, company trust is the highest rated factor to the influencing the stocking decision of the product to the retailer, followed by the credit ,quality o f the distribution network and a nd finally the discount.
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FINDINGS FINDINGS OF THE S TUDY As per the analysis the following outcome may be considered.
1.Due to low consumption of milk in Cochin ,there is no more awareness of the „ milk product‟ here. ware ness o f milk product prod uct is is the major major cause ca use to the lo w consumptio co nsumptio n o f „kool „koo l 2. Lack o f a wareness milk milk bevera ges‟ product. prod uct.
3.Accord 3.Accord ing to to outlets surve surve yed, ed , the milk milk beverage b everage products are consumed co nsumed mostly ost ly from from 1 years. 4.Amul 4.A mul is a vailable in ma ma ximum o utlets in the comparison compar ison o f the com co mpetitor pe titor products. prod ucts. 5. On the the basis of sell of milk milk bever be verage age prod uct, uct, Amul acts the leading role among amo ng competitor competitor prod uct. uct. 6 There There is only few o utle utle ts where credit and discount disco unt available by b y the the Amul compa compa ny. ny. 7. On the concern concer n o f d istri istr ib ution channel channe l , most o f the re re tailers agree that Amul has good distrib distribu ution tio n channel. 8. Amul gives gives the better replaceme replacement nt o ffer to to the expi e xpired red produ prod uct than the other compa company ny products. 9.Replacement offer to the expired product is one of the most important factor for influencing influencing the t he stocking decisi dec isio o n of the product. 10. Ranking of some some othe ot herr factors that influence the retailers stock stocking ing decision: decision : Following is the order in which the retailers ranked the other factors that influence their stocking decision.
i.
compa ny to to the retailers of th t he product p roduct Consumer preference given by the company was raked raked 1 st
ii. ii.
Promotio Promotional nal str st rategies ategie s of o f the the compa compa ny for promoting it‟s products was
rank rank ed 2nd 2 nd iii.
Offers for the product was ranked 3rd
iv. iv.
Packaging of the pr p ro duct was ranked only 4th
30
11. Overall ranking of the factors that influence the retailers stocking decision.
Following is the sequential order in which the retailers ranked the factors that influence influence their stocking stock ing decisio decisio n. i.
Trust of the company company is the most important point for its products.
ii. ii.
Credit offered by the distributor
iii.
Distribution in supplying the products regularly
iv. iv.
b y the the company co mpany for its produ prod uc ts. Discounts provided by
31
RECOMMENDATIONS 1. Amul has a relatively good distribution network, but still company is not able to fulfill the demand of outlet in the peak season when demand is very high. Here company should should consider co nsider on the supply o f p roduct in the peak season.
2. Supply should be regular to all the outlets including those that lie in the pocket roads and not just in the outlets which lie on the easily accessible routes.
3. Since the penetration of Amul products in eateries is the worst among all the channels, the company ought to adopt strategy like supplying free menu cards, which has the company logo printed on them, this will not only increase the penetration of the product in the outlets, but also improve the market sales.
4. The company should also ask its distributors to supply its products on a bill to bill based credit system with at least all the reliable retailers, so that the product penetration in the outlets increases in terms of percentage of units stocked at a time in the outlet, this would also look appealing to the customer who would instead like to pick up the product at first glance.
5. Credit is the 2nd biggest factor that influences the penetration of the product into the retail outl ou tlet. et. So company s ho uld uld give the credit cred it to to all a ll outlets.
6. Given the fact that margin offered to the retailer is not similar in the case of the competitor‟s product. For this fact, the company should give good margin to the
retailers than the competitors.
7. Due to the lack of awareness of milk product in cochin, the company should be advertised of the product by print and electronic media specially in local channel and newspapers.
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8. Discount is also a important factor of stocking decision for retailers. So, company should give discount to all retailers for influencing the stocking.
9. Company Company sh s ho uld uld al a lso give give the replacement offer offer to those those o utlet utlet which is running with small business.
10. Only fresh product should be supply in the outlet. The main cause of the supply of fresh product is that customer always wants fresh product. They don‟t want to take 3 or 4 days old product.
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BIBLIOGRAPHY
Naresh K Malhot Ma lhotra., ra., Marketing Market ing Researc Research h – An Applied Orientation, 4th Edition, Pearson Edu Education cation Pvt. Ltd, Ltd, New Delhi, 2003.
Abraham Abraham Koshy K oshy,, Mileshwar Jha -- Marketing Management , Pearson Prentice Hall, New Delhi, 2007.
C.R.Kothar C.R.Kotharii- Research Researc h Methodology, New Age Inte Inte rnational (P) Limited, Limited, Ne w Delhi 2007.
WEBLIOGRAPHY
www.wikipedia.org
www.amul.com
www.google.com
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ANNEXURE QUESTIONNAIRE FOR THE RETAILER Respected Respected Sir/Madam, This is a questionnaire intended to study the penetration of ‘AMUL’ KOOL MILK BEVERAGES PRODUCT in the retail outlets of COCHIN and the different factors that play an important role in the stocking st ocking decision of retailers.
1.Name of the Outlet
2.Location of the Outlet
3.Type of Outlet
a) Conv enience Store
4. How long have you been into the KOOL MILK MILK business?
a) Less than 1 year
5a. Which company product do you stock?
5b.Which company kool product do you sell most?
1) AMUL
1)AMUL
b) Eatery
c) Grocery
c) Greater than 3 year
b) 1 to 3 years
2)MILMA 2)MILMA
2)MILMA 2)MILMA
3)BOTH
4)OTHERS
3)OTHE 3)OTHE RS
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6. How many units do you sell of the following brands daily?
a) AMUL
b) MILMA
c) Others
d)Not Applicable Applicable
7a. Do you receive credit from the AMUL company/distributor?
a) Yes
b) No
7b. Does it i nfluence your stocking decision?
a) Yes
b) No
8a. Is discount available for purchase of AMUL products?
a) Yes
8b. Does discount influence your stocking decision?
a) Yes
9a. How effective do you feel AMUL’S distribution distribution channel?
a) Good
9b. Does the effectiveness of the distribution channel influence your stocking decision?
a) Yes
10a. Which company offers you a better replacement alternative against expired packed product?
a) AMUL
b) No
c) Not Applicable Applicable
b) No
b) Moderate
c) Bad
d) Not Applicable Applicable
b) No
b) MILMA
c) Others
d) None in particular
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10b. Does it i nfluence your stocking decision
a) Yes
b) No
11. Which other factors given below influence your stocking decision? Rank on a scale of (1 – 4), the options given below, where 1 is the most important & 4 is the least important.
Packaging Pack aging ________
Offers _______
Promotional effecti effect iveness of the company________
Consumers preference ________
12. Rank the following criteria criteria from ( 1 – 4 ), where 1 is the most important and 4 is the least important, which influences your stocking decision?
Credit _______
Discount Discount _______
Distribution Distribution channel channe l efficiency______
Trust of the company_______
13.Suggestion for Amul:
Thank you for your kind cooperation, valuable inputs and time.
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