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This project is on
This project takes a look at the overall activities & PERFORMANCE of the company, how the company marketed its products and strategy it has taken to penetrate in the noida region. It also makes a theoretical study of Customer¶s Relationship Management (CRM) of the company and takes a look on how it apply in practical form. Retailer satisfaction survey has been made to know their views and problems. Finding gives a clear view of what the retailer want. This project contain area wise analysis of noida market to give clear picture how the company is performing and what shortcoming are there which are needed to sorted out. In this SWOT, analysis of the company has also been outlined and also few realistic suggestions are given so that company can improve its market shares, profitability and finally attain the retailer satisfaction.
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In order to accomplish any task there is always something or someone who pushes him and motivate him till the end of the task and we should never fail to show our gratitude to them as this the right way to give our ³GURU DAKSHINA´ . When all work is done, it is a pleasant job to thank all those who were at every instant supervising me and ensuring the completion of the decoded work. In the Same way for the completion of my project work I am sincerely thankful to all those who were with me to give right suggestion and showing me the correct path so that I can complete my project work effectively and I would never forget their contribution ever. I am extremely thankful to my external project guide Mr. P. Mudgal (sales in charge Amul ice cream) and internal project guide Mr. Deepanshu Paliwal for his or her outstanding efforts and for being with me right from the beginning of my project and guiding me at every step
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I a student of PGDM III TRIMESTER of I.P.E.M. GHAZIABAD, 2009-2011, Roll No. PGD09013 hereby declare that this project report entitled è
.´ is written and submitted by me under the
external guidance of Mr. P.MUDGAL, SALES INCHARGE ICREAM
DEPARTMENT of, GCMMF and under the internal guidance of MR. DEEPANSHU PALIWAL.
The findings and interpretations in the report are based on both primary and secondary data collection. This project is not copied from any source or other project submitted for similar purpose.
3ate:
______________________ (MALAY KUMAR BANERJEE)
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| The ice cream industry in India is in many ways, reflective of the overall population distribution. The country¶s population is primarily rural with approximately 65% of the population living in villages with a population of less than 5,000; this means there are well over 150,000 villages with a combined population in excess of 650 million. This has contributed to a highly fragmented industry that by many estimates has over 70,000 ice cream entities. Many of these are single-family operations where the product is made either in the home or in very small factories and sold on the streets. The 350 million remaining people are concentrated in the cities where the industry is reasonably concentrated in the hands of a few international and domestic firms. It is estimated that only 30% of the entire market is ³organized´ and the industry meets the classic definition of a fragmented industry, that is, one where there is an absence of market leaders with the power to shape industry events. Ben & Jerry's has prepared a detailed analysis of the industry following the pattern established by Michael Porter, the complete study is included as Appendix A with a brief description of the major forces as follows.
Õ ± The two favorable factors are the opportunity for product
*
differentiation within the super premium segment and the importance of corporate experience in all phases of the operation (production, distribution, and marketing). The most important down side factor is that consumer-switching cost is nil. *
Õ ± With Ice Cream, there are virtually no important end consumers.
However if one focuses on the consumer as retailer then the importance of the few powerful and growing grocery chains represents a significant hurdle. This is offset by the almost
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Complete lack of potential for backward integration and the relative insignificance of ice cream to this customer group. * ± The most important factor here is the importance of quality. The agribusiness in India is still very much in the developmental stage and there is little concern, at present, over the dairy producers moving into ice cream production. * ± The concept of comfort foods in India is still very much in the incubation stage; as such, the primary role of ice cream is that of a sweet desert with little or no emotional value. Accordingly, there is a wide variety of alternative products. The most notable alternatives are kulfi and faludeh. Kulfi is the traditional desert of India. It is essentially a cream based pudding where the content varies significantly on a regional basis. Faludeh, an Iranian sweet and is quite popular because of its rice noodle content and generally low price. * ± While there is no threat that the government will enter the industry the primary concerns are focused on the growing economic tensions between states and between states and the national government. The need to generate additional government revenues could prove to be the motive to reinstate industry restrictions or otherwise alter the basic economics of the industry. * ± By almost every indicator the rivalry is intense and will continue to grow. There are just a few large firms, the industry is expected to grow rapidly, and the strategic stakes are large not only for the MNC is attempting to enter the market but for domestic firms as well. c
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| As the industry, evaluation would indicate the competition is significant. The 70,000 some participants is a large number but the more serious challenge comes from the top six national firms; Amul, Kwality Walls, Mother Dairy, Vadilal, Dinshaw, and Arun. These top six firms dominate the market and essentially control the organized market. Detail statistics are not available to indicate market share but Ben & Jerry's estimates that these six firms control 40% to 50% of the urban market. Historically MNC¶s have not achieved much success in penetrating the Indian market. There are a number of possible explanations for this; the relative embryonic and disorganized nature of the market, excessive government regulation that included excessive tariffs and the restriction that imported ice cream could only be sold in hotels1[1], and a highly fragmented and ineffective media. Most of these market inefficiencies have been or are in the process of being corrected and Ben & Jerry's believes that conditions have ripened to the extent where MNC¶s can now effectively enter the market and compete with the domestic firm
INDUSTRIAL GROWTH The three factors of growth, population, per capital consumption, and price are all projected to increase over the
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next six years. Population is projected to grow at 1.8%, per capital consumption is projected to grow at 5%, and prices are projected to increase at just over 1% per year. (Overall the long-term projection for consumer prices is expected to rise at 3.5%, however, given the intense level of competition Ben & Jerry's does not think it likely that ice cream prices will rise that fast.) Overall the market will grow from $245 million to $360 million, a compound growth rate of 8%. Of the $115 million in growth, 60% will come from increased per capita consumption, 24% from increased population, and 16% from increase in price.
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| ("priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand., formed in 1946, is a dairy cooperative in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.8 million milk producers in Gujarat, India. AMUL is based in Anand, Gujarat and has been an example of a co-operative organization's success in the long term. It is one of the best examples of co-operative achievement in the developing economy. "Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder what combination of influences and incentives is needed to multiply such a model a thousand times over in developing regions everywhere." The 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 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 Unions making up GCMMF have 2.8 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 enter Japanese market in 1994 did not succeeded, but now it has fresh plans entering the Japanese markets. Other potential markets being considered include Sri Lanka.
Dr Verghese Kurien,
former chairman of the GCMMF, is recognized as a key person behind the success of Amul.
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The birth of Amul at Anand provided the impetus to the cooperative dairy movement in the country. The Kaira District Cooperative Milk Producers¶ Union Limited was registered on December 14, 1946 as a response to exploitation of marginal milk producers by traders or agents of existing dairies in the small town named Anand (in Kaira District of Gujarat). Milk Producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand. Often milk went sour, as producers had to physically carry the milk in individual containers, especially in the summer season. These agents arbitrarily decided the prices depending on the production and the season. Milk is a commodity that has to be collected twice a day from each cow/buffalo. In winter, the producer was either left with surplus / unsold milk or had to sell it at very low prices. 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 it to Bombay city in turn. India ranked nowhere amongst milk producing countries in the world in 1946. Angered by the unfair and manipulative trade practices, the farmers of Kaira District approached Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and Home Minister of free India) under the leadership of the local farmer leader Tribhuvandas Patel. Sardar Patel advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk Scheme
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Instead of selling it to Polson (who did the same but gave low prices to the producers). He sent Morarji Desai (who later became Prime Minister of India) to organize the farmers. In 1946, the farmers of the area went on a milk strike refusing to be further oppressed. Thus, the Kaira District Cooperative was established to collect and process milk in the District of Kaira in 1946. Milk collection was also decentralized, as most producers were marginal farmers who were in a position to deliver 1-2 liters of milk per day. Village level cooperatives were established to organize the marginal milk producers in each of these villages. The Cooperative was further developed & managed by Dr. V Kurien along with Shri H M Dalaya. The first modern dairy of the Kaira Union was established at Anand (which popularly came to be known as AMUL dairy after its brand name). Indigenous R&D and technology Development at the Cooperative had led to the successful production of skimmed milk powder from buffalo milk ± the first time on a commercial scale anywhere in the world. The foundations of a modern dairy industry in India were thus laid since India had one of the largest buffalo populations in the world. The success of the dairy co-operative movement spread rapidly in Gujarat. Within a short span five other district unions ± Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were organized. In order to combine forces, expand the market while saving on advertising, and avoid a situation where milk cooperatives would compete against each other it was decided to set up an apex marketing body of dairy cooperative unions in Gujarat. Thus, in 1973, the Gujarat Cooperative Milk Marketing Federation was established. The Kaira District Co-operative Milk Producers¶ Union Ltd., which had established the brand name AMUL in 1955, decided to hand over the brand name to GCMMF (AMUL). With the creation of GCMMF (AMUL), we managed to eliminate competition between Gujarat¶s cooperatives while competing with the private sector
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as a combined stronger force. GCMMF (AMUL) has ensured remunerative returns to the farmers while providing consumers with products under the brand name AMUL. This was possible due to the leadership of the founder Chairman of AMUL, Tribhuvandas Patel and the vision of the father of the White Revolution, Dr. Verghese Kurien who worked as a professional manager at AMUL. Numerous people contributed to this movement, which would otherwise not have been possible. Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award winner, is the architect of India¶s White Revolution, which helped India emerge as the largest milk producer in the world. Impressed with the development of dairy cooperatives in Kaira District & its success, Shri Lal Bahadur Shastri, the then Prime Minister of India during his visit to Anand in 1964, asked Dr. V Kurien to replicate the Anand type dairy cooperatives all over India. Thus, the National Dairy Developed Board was formed and Operation Flood Programme was launched for replication of the Amul Model all over India. Operation Flood, the world¶s largest dairy development programme, is based on the experience gained from the µAmul Model¶ dairy cooperatives. The facilities at all levels are entirely farmerowned. The cooperatives are able to build markets, supply inputs and create value-added processing. Thus, Amul Model cooperatives seem to be the most appropriate organizational force for promoting agricultural development using modern technologies, professional management, and thereby generating employment for the rural masses and eradicating poverty in these undeveloped areas. India has already demonstrated the superiority of this approach.
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The NDDB-GCMMF Tussle While GCMMF laid the foundation for the development of dairy industry in India, the Indian Government on its part made efforts to support the dairy industry in the country by encouraging the establishment of dairy cooperative societies. The government came up with the Delhi Milk Scheme in 1959 and several state governments introduced
Most of these schemes were not successful because of the middlemen and contractors, who exploited the perishable nature of milk. When the milk supply was insufficient, the Government purchased imported m dairy farmers.
As milk, supplies to urban areas could not be maintained in the summer months, state governments starte V Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. 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.
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CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.
13 district cooperative milk producers' Union
2.79 million
13,328
11.22 million liters per day
!""# "$
3.05 billion litres
!""# "$
8.4 million litres
626 Mts. per day
3500 Mts per day
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The Anand Pattern The Anand Pattern had a three-tier structure. At the bottom of the three-tier structure were VCSs. These were associated with milk unions at the district. The district unions collectively formed a state level federation. The VCS procured milk from the members; district unions transported and processed the milk products, while the role of the federation was that of marketing, strategic planning and investment. The milk from the farmers was managed by professionals, while the facilities to process the milk were owned by the farmers themselves. Village Cooperative Society The VCS was formed by primary producers under the guidance of a supervisor from the district union. On an average, each VCS had 200 members. The main task of the society was to collect milk from the members and make payments based on the quality and quantity of the produce. A farmer could become a member of the cooperative by committing himself/herself to supply a certain quantity of milk...
GCMMF's Organizaton Structure GCMMF was a lean organization. At the helm of affairs was the Managing Director (MD) operating from Anand. Four General Managers (GM) and four Assistant General Managers (AGM) assisted the MD. The four GMs were responsible for marketing of dairy products,
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Human resources development & marketing (new businesses), finance and quality assurance. The four AGMs looked after functions of marketing, systems, co-operative services and technical projects. GCMMF divided the country into five zones, each headed by a zonal manager, who was responsible for sales of all the AMUL products within that zone. The zonal managers reported to the MD and to the GM/AGM functionally. Under the zonal manager were branch managers. Each branch had three product managers who reported to the branch manager. Sales officers and field sales persons assisted the product managers in each branch
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"# M liberate our farmers from economic oppression and lead them to prosperity M !"!" dairy cooperatives of Gujarat turnover of Rs. 27000 corers by the year
2020 MISSION 2020
Six decades ago, Sardar Patel had envisioned that dairy cooperative movement could liberate our farmers from economic oppression and lead them to prosperity. Far-sighted and visionary leaders like Shri Tribhuvandas Patel and Shri Motibhai Chaudhary, who selflessly dedicated their entire lives to this noble cause, carried his dream forward. Through his professional acumen and meticulous planning, as well as leadership skills; Dr. Verghese Kurien successfully translated this dream into reality. In early 1950¶s, when our cooperative movement was still in its infancy, Dr. Kurien created the grand design for an apex marketing federation for dairy cooperatives of Gujarat. After 20 years of persistent efforts, this organization took concrete shape in 1973 and has today transformed into a US$ 1.4 billion dairy giant. Since the foundations of our organization are rooted in the process of systematic longterm planning, we have also attempted to emulate the same, in an effort to design our Future architecture. As we take confident strides towards a grand tomorrow, we need a vision, which will force us to challenge ourselves and stretch our imagination. In order to achieve quantum and exponential growth, this vision must be backed up by a concrete action plan, which is grounded in reality. In view of growth in business volumes and
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Related complexities, it is pertinent that we have a clear vision for the next 10 years. This
will enable all relevant stakeholders to align themselves to a common growth
platform. In line with objective, we have prepared a comprehensive roadmap to guide dairy cooperatives of Gujarat to a glorious future, in the year 2020. This plan, appropriately titled ³Mission 2020´, envisages that the dairy cooperatives of Gujarat will have a group turnover of Rs. 27000 crores by the year 2020. This will be a three-fold increase over our current group turnover of approx. Rs. 9600 crores. With further expansion of cooperative network, increase in number and productivity of milch animals; Milk production in our milk shed area will increase to 231 lakh kg per day (23.1 million kg per day), at an annual growth rate of 4%. We will be strengthening our milk procurement infrastructure by installing Bulk Milk Chillers and Automatic Milk Collection Systems in all our village cooperative societies. This will enhance our milk procurement capacity in such a way, that we easily collect as much as 195 lakh kg per day (19.5 million kg per day) of milk in the peak flush season. Through expansion of distribution network, creative marketing, consumer education and product innovation, we will leverage effectively on rising income levels and growing affluence among Indian consumers. While expanding markets for our existing products, we will create fresh avenues for growth by tapping the rising demand for new valueadded products. Special emphasis will be given to strengthening our presence in the large market for liquid milk, in metropolitan cities. Satellite dairies with combined processing and liquid milk packaging capacity of 50 LKPD will be established in major metro markets. Our objective is to ensure that the maximum share of the consumer¶s rupee goes back to the milk producers. In view of the high demand and procurement projections, we plan to double to processing capacity of our dairy plants to 20.7 million kg per day, by 2020. This would include c
multi-fold capacity expansion for major product categories including milk powders, Icecream, paneer, cheese, ethnic sweets, curd, ghee and other dairy products. Milk drying capacity will also be enhanced by 200 MTs per day, to process additional milk in the peak season. For increasing milk production, it is vital to provide nutritious feed to milch animals. For this reason, we plan to expand our cattle feed manufacturing capacity, more than four times to 12000 MTs per day, by 2020. At current prices, total investments envisaged for creating all the required infrastructure would be Rs. 2600 crores (Rs. 26 billion) until the year 2020. I am glad to inform you that the plan 2020 has been shared with all the member unions. It has also been discussed in the respective boards and necessary resolutions for investments have been taken. This detailed plan will serve as our comprehensive roadmap for the next ten years and will ensure a glorious future for our dairy cooperatives. We are well poised to lead the Indian dairy cooperative sector to a position of eminence in our national economy. Our efforts will ultimately serve to bolster the rural economy, which can then create an effective shield to protect our nation from any future economic crises. We will succeed in our endeavor with positive and continued support and encouragement from all the government quarters, as has happened in the past. The very foundation of any cooperative organization is a transparent and fair democratic electoral process taking place at the scheduled intervals for the cooperative structures to survive and faith of its member remain intact, it is imperative that elections to various tiers of the cooperatives take place on schedule. Õ is to ensure that the maximum share of the consumer¶s rupee goes back to the milk producers.
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FUTURE Plans M Expansion of distribution network, creative marketing, consumer education and product
innovation, we will leverage effectively on rising income levels and growing affluence among Indian consumers. M Tapping the rising demand for new value-added products. M Milk shed area will increase to 231 lakh kg per day (23.1 million kg per day), at an annual
growth rate of 4% M Installing Bulk Milk Chillers and Automatic Milk Collection Systems in all our village
cooperative societies. M Collect as much as 195 lakh kg per day (19.5 million kg per day) of milk in the peak flush
season. M Satellite dairies with combined processing and liquid milk packaging capacity of 50 LKPD
will be established in major metro market M We plan to double to processing capacity of our dairy plants to 20.7 million kg per day, by
2020 M Milk drying capacity will also be enhanced by 200 MT¶s per day M Plan to expand our cattle feed manufacturing capacity, more than four times to 12,000 MT¶s
per day, by 2020. M Total investments envisaged for creating the entire required infrastructure would be Rs.
2,600 corers (Rs. 26 billion) till the year 2020.
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The Road Ahead Several sections of the media and the analysts opined that GCMMF had been unfair with Kurien. They said that Kurien's fears of NDDB taking the cooperatives away from the farmers appeared to be coming true. Kurien feared that Mother Dairy might take undue advantage of the cooperative retail chain to push its interests forward. He felt that sooner or later, the government would divest its stake in the joint ventures, and the dairy farmer would be the ultimate loser. According to Kurien, "There is an inherent contradiction that the government-owned NDDB, through its subsidiaries, is getting into fresh business activities at a time when the Centre is considering further divestment in all existing areas including those in the dairy sector such as the Delhi Milk Scheme." On the contrary, some analysts were of the view that Kurien opposed the joint venture between NDDB and state federations, as he feared that stronger regional brands would make the market highly competitive for AMUL...
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The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level, which in turn is further, federated into a Milk Federation at the State level. The above three-tier structure was set-up in order to delegate the various functions; milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. This helps in eliminating not only internal competition but also ensuring that economies of scale is achieved. As the above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programme, it is known as the µAmul Model¶ or µAnand Pattern¶ of Dairy Cooperatives. Responsible for Marketing of Milk & Milk Products Responsible for Procurement & Processing of Milk Responsible for Collection of Milk Responsible for Milk Production The milk producers of a village, having surplus milk after own consumption, come together and form a Village Dairy Cooperative Society (VDCS). The Village Dairy Cooperative is the primary society under the three-tier structure. It has membership of milk producers of the village and is governed by an elected Management Committee consisting of 9 to 12 elected representatives of the milk producers based on the principle of one member, one vote. The village society further appoints a Secretary (a paid employee and member secretary of the Management Committee) for management of the day-to-day functions. It also employs various people for assisting the Secretary in accomplishing his / her daily duties. The main functions of the VDCS are as follows: y
Collection of surplus milk from the milk producers of the village & payment based on quality & quantity
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y
Providing support services to the members like Veterinary First Aid, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting training on Animal Husbandry & Dairying, etc.
y
Selling liquid milk for local consumers of the village
y
Supplying milk to the District Milk Union Thus, the VDCS in an independent entity managed locally by the milk producers and assisted by the District Milk Union.
The Village Societies of a District (ranging from 75 to 1653 per Milk Union in Gujarat) having surplus milk after local sales come together and form a District Milk Union. The Milk Union is the second tier under the three-tier structure. It has membership of Village Dairy Societies of the District and is governed by a Board of Directors consisting of 9 to 18 elected representatives of the Village Societies. The Milk Union further appoints a professional Managing Director (paid employee and member secretary of the Board) for management of the day-to-day functions. It also employs various people for assisting the Managing Director in accomplishing his / her daily duties. The main functions of the Milk Union are as follows: y
Procurement of milk from the Village Dairy Societies of the District
y
Arranging transportation of raw milk from the VDCS to the Milk Union.
y
Providing input services to the producers like Veterinary Care, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc.
y
Conducting training on Cooperative Development, Animal Husbandry & Dairying for milk producers and conducting specialised skill development & Leadership Development training for VDCS staff & Management Committee members.
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y
Providing management support to the VDCS along with regular supervision of its activities.
y
Establish Chilling Centres & Dairy Plants for processing the milk received from the villages.
y
Selling liquid milk & milk products within the District
y
Process milk into various milk & milk products as per the requirement of State Marketing Federation.
y
Decide on the prices of milk to be paid to milk producers as well on the prices of support services provided to members.
The Milk Unions of a State are federated into a State Cooperative Milk Federation. The Federation is the apex tier under the three-tier structure. It has membership of all the cooperative Milk Unions of the State and is governed by a Board of Directors consisting of one elected representative of each Milk Union. The State Federation further appoints a Managing Director (paid employee and member secretary of the Board) for management of the day-to-day functions. It also employs various people for assisting the Managing Director in accomplishing his daily duties. The main functions of the Federation are as follows: y
Marketing of milk & milk products processed / manufactured by Milk Unions.
y
Establish distribution network for marketing of milk & milk products.
y
Creating & maintaining a brand for marketing of milk & milk products (brand building).
y
Providing support services to the Milk Unions & members like Technical Inputs, management support & advisory services.
y
Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.
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y
Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk Unions.
y
Arranging for common purchase of raw materials used in manufacture / packaging of milk products.
y
Decide on the prices of milk & milk products to be paid to Milk Unions.
y
Decide on the products to be manufactured at various Milk Unions (product-mix) and capacity required for the same.
y
Conduct long-term Milk Production, Procurement & Processing as well as Marketing Planning.
y
Arranging Finance for the Milk Unions and providing them technical know-how.
y
Designing & Providing training on Cooperative Development, Technical & Marketing functions.
y
Conflict Resolution & keeping the entire structure intact.
WE move to the year 2008. The dairy industry in India and particularly in the State of Gujarat looks very different. India for one has emerged as the largest milk producing country in the World. Gujarat has emerged as the most successful State in terms of milk and milk product production through its cooperative dairy movement. The Kaira District Cooperative Milk Producers¶ Union Limited, Anand has become the focal point of dairy development in the entire region and AMUL has emerged as one of the most recognized brands in India, ahead of many international brands. Today, we have around 176 cooperative dairy Unions formed by 1,25,000 dairy cooperative societies having a total membership of around 13 million farmers on the same pattern, who are processing and marketing milk and milk products profitably, be it Amul in Gujarat or Verka in Punjab, Vijaya in Andhra Pradesh or a Nandini in Karnataka. This entire process has created c
more than 190 dairy processing plants spread all over India with large investments by these farmers¶ institutions. These cooperatives today collect approximately 23 million kgs. Of milk per day and pay an aggregate amount of more than Rs.125 billion to the milk producers in a year.
| ' 6 The effects of Operation Flood Programme are more appraised by the World Bank in its recent evaluation report. It has been proved that an investment of Rs. 20 billion over 20 years under Operation Flood Programme in 70s & 80s has contributed in increase of India¶s milk production by 40 Million Metric Tonne (MMT) i.e. from about 20 MMT in pre- Operation Flood period to more than 60 MMT at the end of Operation flood Programme. Thus, an incremental return of Rs. 400 billion annually have been generated by an investment of Rs. 20 billion over a period of 20 years. This has been the most beneficial project funded by the World Bank anywhere in the World. One can continue to see the effect of these efforts as India¶s milk production continues to increase and now stands at 90 MMT. Despite this fourfold increase in milk production, there has not been drop in the prices of milk during the period and has continued to grow. Due to this movement, the country¶s milk production tripled between the years 1971 to 1996. Similarly, the per capita milk consumption doubled from 111 gms per day in 1973 to 222 gms per day in 2000. Thus, these cooperatives have not just been instrumental in economic development of the rural society of India but it also has provided vital ingredient for improving health & nutritional requirement of the Indian society. Very few industries of India have such parallels of development encompassing such a large population. These dairy cooperatives have been responsible in uplifting the social & economic status of the women folk in particular as women are basically involved in dairying while the men are busy
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With their agriculture. This has also provided a definite source of income to the women leading to their economic emancipation. The three-tier µAmul Model¶ has been instrumental in bringing about the White Revolution in the country. As per the assessment report of the World Bank on the Impact of Dairy Development in India, the µAnand Pattern¶ has demonstrated the following benefits: y
The role of dairying in poverty reduction
y
The fact that rural development involves more than agricultural production
y
The value of national µownership¶ in development
y
The beneficial effects of higher incomes in relieving the worst aspects of poverty
y
The capacity of dairying to create jobs
y
The capacity of dairying to benefit the poor at low cost
y
The importance of commercial approach to development
y
The capacity of single-commodity projects to have multi-dimensional impacts
y
The importance of getting government out of commercial enterprises
y
The importance of market failure in agriculture
y
The power & problems of participatory organisations
y
The importance of policy
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# # 1. The phenomenal growth of milk production in India ± from 20 million MT to 100 million MT in a span of just 40 years - has been made possible only because of the dairy cooperative movement. This has propelled India to emerge as the largest milk producing country in the World today. 2. The dairy cooperative movement has also encouraged Indian dairy farmers to keep more animals, which has resulted in the 500 million cattle & buffalo population in the country the largest in the World. 3. The dairy cooperative movement has garnered a large base of milk producers, with their membership today boasting of more than 13 million member families. 4. The dairy cooperative movement has spread across the length and breadth of the country, covering more than 125,000 villages of 180 Districts in 22 States. 5. The dairy cooperatives have been able to maintain democratic structure at least at the grass-root level with the management committee of the village level unit elected from among the members in majority of the villages. 6. The dairy cooperatives have also been instrumental in bridging the social divide of caste, creed, race, religion & language at the villages, by offering open and voluntary membership. 7. The dairy cooperatives have been successfully propagating the concepts of scientific animal husbandry & efficiency of operations, which has resulted in low cost of production & processing of milk. 8. The movement has been successful because of a well-developed procurement system & supportive federal structures at District & State levels.
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9. Dairy Cooperatives have always been proactive in building large processing capacities, which has further propelled growth of milk production. 10. The dairy cooperatives are among those few institutions in India, which still cherish a strong Cooperative identity, values and purpose. They still boast of idealism & good will of members and employees. 11. The dairy cooperatives have removed the poor farmers of India from the shackles of agents & middlemen and provided an assured market for their produce. As these are the institutions run by farmers themselves, it has also resulted in fair returns to the members for their produce 12. Dairy cooperatives have been able to create a market perception of honesty & transparency with their clean management
# y
2.8 million milk producer member families
y
13,759 village societies
y
13 District Unions
y
8.5 million liters of milk procured per day
y
Rs. 150 million disbursed in cash daily
y
GCMMF is the largest cooperative business of small producers with an annual turnover of Rs. 53 billion
y
The Govt. of India has honored Amul with the ³Best of all categories Rajiv Gandhi National Quality Award´.
y
Largest milk handling capacity in Asia
c
y
Largest Cold Chain Network
y
48 Sales offices, 3000 Wholesale Distributors, 5 lakh retail outlets
y
Export to 37 countries worth Rs. 150 crores
y
Winner of APEDA award for nine consecutive years
% % GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50 sales offices spread all over the country, more than 3,000 wholesale dealers and more than 5,00,000 retailers. AMUL is also the largest exporter of dairy products in the country. AMUL is available today in over 40 countries of the world. AMUL is exporting a wide variety of products, which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee), and Indigenous Sweets. The major markets are USA, West Indies, and countries in Africa, the Gulf Region, and [SAARC] SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China. In September 2007, Amul emerged as the leading Indian brand according to a survey by Synovate to find out Asia's top 1000 Brands
c
#
An Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in between George Fernandes and Atal Behari 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. Amul outdoor advertising uses billboards, with a humorous take on current events and is updated frequently. 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 with Smokey Bear. Sylvester da Cunha was the managing director of the advertising agency, ASP, that created, in 1967, the campaign.
# 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, Omfed
c
in Orissa, saras in Rajasthan, Parag in Uttar Pradesh, Verka in Punjab, Aanchal in uttaranchal, Vita in Haryana and others. Other co-operative rivals of Amul include National Dairy Development Board (NDDB) (with its and brands). With Amul entering the sports drink market, its rivals now include Coca Cola and PepsiCo
The establishment of Amul is also known as White Revolution. The White Revolution of India inspired the notable Indian filmmaker Shyam Benegal to base his film Manthan (1976) on it. The film starred Smita Patil, Girish Karnad, Naseeruddin Shah and Amrish Puri. The film itself was financed by over five lakh rural farmers in Gujarat who contributed Rs 2 each to the film budget. Upon its release, these same farmers went in truckloads to watch 'their' film, making it a commercial success.[10][11], the film was chosen for the 1977 National Film Award for Best Feature Film in Hindi. The Amul success story is taken up as a case study in marketing in many premier management institutes across the world. 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.
()*+, 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 .The mascot was first used for c
Amul butter. However, 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.
% is made from Milk and Milk products, Sugar, Stabilizers & Emulsifiers.
Composition y
Milk Fat 13.5% to 14.5%
y
Total Solids 40% to 41%
y
Sugar 15% Approx.
y
Acidity 0.17% to 0.19%
y
Protein 3.9% to 4.1%
Food Energy Value
c
Calories per 100 ml -196.7 kcal Flavours:
Vanila, Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-Dew-Melon, Tutti Frutti, Litchi, Kesar Pista, Kaju Draksh, Butterscotch, Chocochips, Rajbhog and Cashew Break. Packaging:
50 ml cup, 100 ml cup, 500 ml pack,1 litre pack, 4 litre pack, Chocobar, Ice candies, Cones and Kulfiesa Special Features:
Various varities of Ice Cream can be made from the basic mix by addition of required amount of permissible colours and flavours. Dry fruits and nuts would be used for making premium varities of Ice Cream. Product Specificationÿ
Product meets BIS specification.
c
|
Õ y
Amul Butter
y
Amul Lite Low Fat Breadspread
y
Amul Cooking Butter
y
Amul Pasteurized Processed Cheddar Cheese
y
Amul Processed Cheese Spread
y
Amul Pizza (Mozarella) Cheese
y
Amul Shredded Pizza Cheese
y
Amul Emmental Cheese
y
Amul Gouda Cheese
y
Amul Malai Paneer (cottage cheese)
y
Utterly Delicious Pizza
y
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
y
Amul Amrakhand
y
Amul Mithaee Gulabjamuns
y
Amul Mithaee Gulabjamun Mix
y
Amul Mithaee Kulfi Mix
y
Avsar Ladoos
c
% y
Amul Shakti 3% fat Milk
y
Amul Taaza 1.5% fat Milk
y
Amul Gold 4.5% fat Milk
y
Amul Lite Slim-n-Trim Milk 0% fat milk
y
Amul Shakti Toned Milk
y
Amul Fresh Cream
y
Amul Snowcap Softy Mix
y
Amul Pure Ghee
y
Sagar Pure Ghee
y
Amul Cow Ghee
y
Amul Infant Milk Formula 1 (0-6 months)
y
Amul Infant Milk Formula 2 ( 6 months above)
y
Amulspray Infant Milk Food
y
Amul Full Cream Milk Powder
c
y
Amulya Dairy Whitener
y
Sagar Skimmed Milk Powder
y
Sagar Tea and Coffee Whitener
y
Amul Mithaimate Sweetened Condensed Milk
y
Amul Taaza Toned Milk 3% fat
y
Amul Gold Full Cream Milk 6% fat
y
Amul Shakti Standardised Milk 4.5% fat
y
Amul Slim & Trim Double Toned Milk 1.5% fat
y
Amul Saathi Skimmed Milk 0% fat
y
Amul Cow Milk
y
§ogi Sweetened Flavoured Dahi (Dessert)
y
Amul Masti Dahi (fresh curd)
y
Amul Masti Spiced Butter Milk
y
Amul Lassee
y
(Butterscotch, Rajbhog, Malai Kulfi)
c
y
(Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond)
y
(Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
y y
(Mango, Black Currant, Sundae Magic, Double Sundae) (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta)
y
(Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)
& y
Amul Milk Chocolate
y
Amul Fruit & Nut Chocolate
ÕÕ y
Nutramul Malted Milk Food
y
Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)
y
Amul Kool Cafe
y
Amul Kool Koko
y
Amul Kool Millk Shaake (Mango, Strawberry, Badam, Banana)
c
% Õ y
Amul Shakti White Milk Food
c
%& # Before doing any type of research there is always an objective and motive. We all know Globalization has affected today¶s every market. There are so many domestic and multinational companies are growing up rapidly and every company are battling to each other for capturing the large share of Market. In the Market there have cut throat competition. Survival is being the core concept of the companies. A company must know the strategy of the competitors because it directly affects the company. Therefore, there is need for a company to judge his rival¶s market potential market share and selling strategies.
The main objectives of the project are as following:
>
To know awareness of people towards Amul Ice cream.
>
To know in which segment ice cream are mostly like/preferred.
>
To know which advertisement tool is mostly preferred by people.
>
To know the preference of Amul ice cream with comparison to other competitive Brands.
>
To know the factors, which affects consumer,¶s buying behaviour to purchase ice cream.
>
Create awareness about the different variety of Amul ice cream.
>
To collect the detailed data by filling up the questionnaire from the different outlets of
c
Amul ice cream or
parlors
> To collect the detailed data with respect to AMUL Outlets
> Understanding the 4 P¶s (Product, Price, Place, Promotion) of marketing in relation to Amul ice
>
cream.
To study the various strategy of Amul company used to increase the penetration of ice cream in various markets.
>
To know the awareness level & perception of retailers regarding Amul ice cream.
>
To study the penetration of Amul ice cream in various markets.
>
Markets in which Amul have large sale and the area where it does not able to establish its market.
>
Factors influencing the retailer buying behavior.
>
Expectations of retailers from Amul ice cream.
>
Response of the retailer regarding Amul ice cream.
>
Emerging trend in the ice cream market.
>
What do retailers look before keeping Amul ice cream in their shop?
>
Ascertain growth opportunities as well as threats.
c
Before making an implementation of any plan for achieving some pre-determined goal, strategy formulation is very much important. So Amul has conducted a research work in order to keep every information of every market segment and they use this information optimally to fulfill their goal.
% % º º
º º In this strategy study of time period is done i.e. in which planning is made by the company of their action, which they intended to take in the whole of the calendar year. Whatever they will do is pre determined by the company and for that, they prepare a strategy.
º In this place is decided by the company where they will implement their plans. In noida there are number of sectors, which have different market condition and each market have different demand for the Amul so in order to increase the demand and sales of the Amul Company the company have to implement their strategies at the right time to make it effective. Suppose in the off-season time company could introduce certain offers to
c
attract the customers or could advertise in such a way that it appeals to customers and demand of the ice cream not fluctuate much.
In this, how the company could attain the above plan is decided in this strategy. In this the company evaluates techniques in order to achieve the above plans.
c
ANALYSIS OF THE NOIDA MARKET (SECTORWISE)
"
DESCRIPTION OF THE MARKET Market of sector 11 & 12 is widespread .There are many shops and the population in this sector are in huge thus the prospects of the business is not any problem for the company. Here the buying power of the consumer is good they can afford to purchase any variety of ice cream of any range. Here there are various residential colonies in this sector who can become the consumer of the Amul Company and they can be tapped to increase the sale of the company. In this market one more advantage is that penetration of other brand is also not much thus competition is not so high, so the Amul can be easily be penetrated in this market.
Retailers PERCEPTION regarding amul Retailer¶s perception regarding Amul is good, positive & friendly. They take Amul ice cream in positive way but one more thing is that, they also not have any bad or negative image regarding other brand also. They think that whatever ice cream they may keep would be sold because according to them consumers there prefer only ice cream they don¶t have anything to do with its brand. Also by conversing with one of the retailer it was
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PANETRATION OF AMUL ICE CREAM Penetration of Amul ice cream is not so high even we can say that Amul have lot to do in this market. There is one scooping parlor in sector 11. Other player, which operates in this market, is cream bell, Mother dairy but there penetration is also not so high.
PROBLEM IN THIS AREA ' 1) First problem in this sector is of electricity supply they fear if the ice cream melts due to long power cut of more than 8 hrs then who will compensate them there losses. 2) They also not eager to invest 15000 or 20000 for the freezer, which they are getting only a mere security of 5000 by other company like cream bell 3) Also there also many customers who want to keep the Amul ice cream but they set back due no provision for installments in the purchase of the freezer. 4) Some customers used to keep Amul in the past but they have suffer the loss due to melting of ice cream so they not prefer to do business in this field 5) Sometimes the supply of the stock is also not regular.
c
SUGGESTIONS
After having the closer survey in the market and the understanding and the knowledge, which I have gained, I can suggest that ±
1) If there is any provision of installments to purchase freezer then many customer can be attracted to keep Amul ice cream because many customer are not able to invest huge amount of 15,000 ± 20,000 at a time. 2) Market in this sector is not exploited much by any other competitors so, it¶s the favorable opportunity for the company to initiate and take the lead and capture the market by giving some relaxations to the customer. 3) As there are various colonies in this sector, thus pushcarts can also be introduced in this sector to increase the penetration.
c
$"
DISCRIPTION OF THE MARKET
The market of sector 29 & 30 is also very lucrative, as it has lots of shop thus place is not a problem and regarding the prospects it also have lots of buyers, as this place have various residential areas. The placement of the market is also in very good location where every residing people can access the market. Every people have the capacity to buy the quality ice cream of various price ranges. There are three markets in this sector which serves the customer.
Retailers PERCEPTION regarding amul
Retailer perception regarding Amul is very good. They have a positive point of view regarding Amul. They have a knowledge and familiarity regarding Amul taste and quality. Customer there also have liking for Amul ice cream. In this sector, there is no market of Amul ice cream but people of this area have a good knowledge regarding this brand. In this area, there is no such market of Amul ice cream and other players also not able to cater this area, due to some governmental hindrance but retailer wants to deal with Amul ice cream. As they know that, it will prove profitable to them.
c
PANETRATION OF AMUL ICE CREAM
Penetration of Amul ice cream is not so deep or we can say there is no such penetration of this brand. Beside this no other players also not able to do business in this area. There a some juice shops which use ice cream to serve their customers as a toppings in there juice. For this, they use that ice cream which is cheap for them such as cream bell. There are various reasons why the Penetration of Amul ice cream is no high.
PROBLEM IN THIS area
' 1. The first problem in this area is of space. There is very limited space in the shop so there is hardly any apace to keep the deep freezer. The shops have already occupied with the freezer of the cold drinks. 2. Second problem, which have come to see, is that, the government regulation, which does not, allows any shopkeeper to keep anything outside the shop. So due to this they are not eager to keep the deep freezer as there is also not any space in the shop also. 3. Another problem that is other player is catering by introducing their pushcarts in this area.
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SUGGESTIONS
The suggestion that I would like to give regarding this area is as follows:-
1. As the space is the problem for the shopkeepers in this area, thus we can motivate to keep the deep freezer by making them aware about space management. By doing this there negativity regarding the shortage of the space can be wiped away. 2. Penetration can also be increased in this area by motivating them by showing the margin they will get by dealing with Amul Company.
DISCRIPTION OF THE MARKET
The market in this sector is very lucrative as there is neither problem of space nor any MCD rules, which act as hindrance for the company. There are also three markets in this sector and this area has residential colonies. In this market other players like cream bell, mother dairy serves the people of this area. Here the sales of mother dairy is very good it has captured the market very c
well, but repo of Amul ice cream is also very good, as many of the retailer showing their willingness to keep Amul ice cream. Out of three market one market sells mother dairy and other sells cream bell but third market does not sells any ice cream so its chance for the company to cater this market. The standard of the people in this area is also very good, so the company will get good customer base for their product.
Retailers PERCEPTION regarding amul
Retailer in this area regards Amul as a good and reliable brand in ice cream. But they have Disapproval on one point that is that they don¶t want to buy the freezer by investing a 15000 to 20000 at a time. They are searching for any security or installment options so that they can take the freezer. They also have the same opinion as the retailer of sector 11 & 12 that customer does not see the brand, they only want to have ice cream whatever the brand may be, retailer also say that whatever brand they may keep will have sales, so they prefer brand like cream bell, mother dairy which provide deep freezer at security basis with amount of Rs5000.
PANETRATION OF AMUL ICE CREAM Penetration of amul ice cream is not there in this sector as there are three market in this sector
c
But non of the market sells the Amul ice cream. The other player which operate in this area is mother dairy and cream bell which serves two market but third market does not sells any ice cream, so it¶s a opportunity for the company to establish its market in this market.
PROBLEM IN THIS area
' ( this sector one of the salesman of Amul has once visited ever green sweets six months back and convinced to provide him the deep freezer at the security of Rs 7000 but after that there was not further any contact maintained with the retailer thus there a problem of communication gap. ! Another problem that came to see is that of power cut, here power cut is of up to 5 to 6 hrs and sometimes power does not remain for a day also that¶s why they are not very inclined to enter in this business as they think it would be risky for them. ) Strong base of competitors in that area. * One or two retailers have earlier done ice cream business and suffered loss that is why they are little bit anxious regarding this business.
c
SUGGESTIONS
1. Salesperson should maintain communication with the retailers and should make regular visits.
2. Here also the demand of the retailer is to provide the deep freezer in security or in installment basis, as compare to other player we company have to take a stand in this respect due to demand of the retailer.
3. Company should do some sort of campaign in order to wipe out the negativities relating to the ice cream business.
4. Those who are making profits with the ice cream business should be introduced with the loss making retailers in order to boost confidence in them.
" DISCRIPTION OF THE MARKET
Market of this sector is very dense and wide there are lots of shops of various variety like clothing, furniture, home appliances, consumer durables, confectionary shops there were also many restaurants, and in sector 18 there is a big shopping mall called ³Great India place´. Buyers in this area are very huge this place is always crowded as many people come here for shopping. Here player like nirulla, baskin robins, mother dairy, operate in this market. Market of this area is very sophisticated. In sector 18 there is also a Amul ice cream parlor which does not have much sales.
c
Retailers PERCEPTION regarding amul Retailer in this area has preference over nirulla, mother dairy because of their quality. Regarding Amul they have positive outlook they take it as a quality brand. But Amul in that area does not able to penetrate the market to that extent which it can do. Retailer their wants some sort of discount or other incentives from the company to install the Amul deep freezer as they think there are many other good ice cream brand which they can opt, so they wants some special treatment from the company.
PANETRATION OF AMUL ICE CREAM There is not such penetration of Amul ice cream. There other players like mother dairy, nirulla, baskins robins, kwality walls acting in the market. Amul has a scooping parlor in sector 18. There are many other brands in this market, thus competition in this market is very high.
PROBLEM IN THIS AREA The problems in this area are: 1. Many competitors are there who are doing good business. 2. Electricity breakdown in sector 27,which makes the retailer anxious towards this business. 3. As there is stiff, competition in this area that is why some retailers are demanding some special offer from the company otherwise they are not willing c
4. Here price of the ice cream is not the problem but the price of the deep freezer is some way creating a problem for the retailers in dealing with the company
SUGGESTIONS
1. Company should do some aggressive marketing by their salespersons in this area in order to make an impression upon the retailers and to convert them towards Amul brand. 2. As in that area competition is very stiff thus to penetrate in the area Amul have to represent in some different manner, in order to satisfy the demand of the area.
c
Consumer level of acceptance toward Amul ice cream
#$ a$ a
! D
"
3
MO3ERATE
2
LOW
HIGH
From the above chart we can say that the consumer¶s level of acceptance towards AMUL ice cream is very high, their percentage more than 45%.
c
Does the packing of the ice cream influence customer to purchase it ?
+',"- *"-
%&
es [ [
c
Purchasing frequency
. + DAIL§ WEEKL§
- 17 22
FORTNIGHTL§ OCCASIONALL§
13 48
a
'
22 a3
The frequency of ice cream differ a lot where 17% respondents buy it daily, 22% weekly, 13% fortnightly, and there is a Hugh chunk of people who buy ice cream occasionally.
c
Which ice cream flavor do you like?
- 60
Õ %
30
/Õ+
06
%
04
¬ ¬¬ STRAWBERRY [
OTHERS
BUTTERSCOTCH 3 ·ANILLA [
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FMCG Sector
The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organized and unorganized segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. The big firms are growing bigger and minor companies are catching up as well. According to the study conducted by AC Nielsen, MNCs, and the balance by Indian companies own 62 of the top 100 brands. Fifteen companies own these 62 brands, and Hindustan Lever owns 27 of these. Pepsi is at number three followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). The soft drink and cigarette companies have always shied these figures away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands
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(
Hindustan Unilever Ltd.
!
ITC (Indian Tobacco Company)
)
Nestlé India
*
GCMMF (AMUL)
0
Dabur India
,
Asian Paints (India)
1
Cadbury India
#
Britannia Industries
$
Procter & Gamble Hygiene and Health Care
("
Marico Industries
c
The finding of the Research was: From the research I found that in noida there are about 14 APO µS, and many shops who deals with Amul ice cream prcts.
There are 14 APO¶S (AMUL Preferred Outlets) in noida which are the exclusive AMUL outlets, they sell only AMUL products. *
The prices of AMUL ice cream is as par with other ice cream brands
*
The outlets order processing from distributor or company is done by phone or companies
*
Salesperson who use to visit distributors office and APO¶S.The APO¶S & A class outlets have their separate D/F for AMUL ice cream/product.
*
The logistic involved for making products available to the final customers are tempos or trucks depend upon the order by distributor.
*
The company has launched their ice cream quarterly.
*
The consumer level of acceptance towards AMUL ice cream/product is very high.
*
The APO¶S & A class outlets did not face any difficulty / problem about supply of materials provided by the company.
*
As I found that the main product of Amul is Milk and company firstly wants to capture
c
* Maximum market share in milk market which is approx. 66%, after it Amul is
concentrating upon butter & cheese which has market share of approx. 88%, so it is not concentrating
upon ice cream.
There is lake of Sales Promotional Activities i.e., extra weight, quiz contest etc. When I interviewed people, I found that many people are not able to recall Amul ice cream advertisement. It shows lack of sales promotion activities. * Mother Dairy is main competitor and strategically better performer then Amul.I find the main thing is that ³Amul´ brand name has very good image in consumer¶s mind
and they
consider it as Pure & Good Product. * People who have tasted Amul Icecream are not ready to purchase the same again because of improper availability * The 4 p¶s of Amul ice cream is optimally utilized, first P (PRODUCT) which is not a problem. Ice cream have good demand in the market, second P (PRICE) is also have a strong position with respect to other brand in the market, as the price of the Amul ice cream is not so high as compare to other brand, third P (PLACE), placement of Amul ice cream is good but in some place it to be placed further, forth P (PROMOTION) Amul ice cream is well promoted in this region as everybody knows about Amul ice cream. * Sale of Amul and Mother Diary is more stronger in the market. * Area where Amul need to work is sector 11, 12, 34, 70, 71, 61, * Amul can make its hold in the market more strongly if it provides deep freeze in installment basis or give the freezer on credit basis.
c
> Some retailer of Amul are shifting towards those brand
which pr ie freezer
secrit basis like cream bell, mther air, kwalit walls.
> Every company stretching their muscles to sustain in the market by providing various schemes to the retailer like providing freezer at a security of nominal amount of 5000 only and giving the maintenance free for the period of 5 years.
> Other company also using the pushcarts to penetrate in the market and to increase their sales in every markets but in that comparison Amul do not have that amount of penetration in the market through pushcarts.
> Awareness of Amul ice cream is very high in every mind of retailer and consumer. There perception relating to this product is very positive, the first thing which comes to the mind of the retailer regarding Amul is ³quality product´.
> Buying behavior of the retailer is depending upon the price which they paying for installing the deep freezer.
> Now a days the trend which is emerging in the ice cream industry is that the various type of varieties and in way of packaging the ice cream is been presented to the customer.
> The growth opportunity of Amul ice cream is very good but it have to very careful by their competitors who are constantly applying various strategies to sustain in the market betting its opponent.
> The of Amul ice cream is that its quality, good taste, its reasonable price, size of the ice cream is also very good.
c
As we know that Amul is very big organization and market leader in dairy products. It has maximum market share in Milk, Butter and Cheese, which are its main/core products. As we know, Amul is a co-operative organization but ice cream industry is a profitable industry we can¶t ignore it. With the help of research, company can find out its week points in ice cream product and can increase its market share through rectify mistakes. People have believed in Amul¶s product and they will accept its ice cream if effective actions were taken.
Amul must come up with new promotional activities such that people become aware about Amul Prolife Sugar free ice cream Quality is the dominating aspect which influences consumer to purchase Amul product, but Prompt availability of icecream and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales. In comparison to Amul ice cream, the other players such as Kwality Walls, Mother Dairy, and Vadilal provide a better availability and give competition to the Hilt. People are mostly satisfied with the overall quality of Amul ice cream, but c
for the existence in the local market Amul must use aggressive selling techniques.
( % )* + )*&& )) +,-.) ((- &(% , &+/ 0 /% , ,) + +- %+,*& +0+ , 0 + %+,*&0- 1* )+ (,) + & ) %0& 2+% 2( &(++& ,0& / ) , /+% , 1- +2%,) +%/+ , 3
c
Regarding advertisement, distribution, promotional policies, etc, are hereby suggested: In order to maintain and increase the sales in the city of NOIDA, the following recommendations regarding Amul ice cream; particularly First and foremost Amul should take proper action in order to improve service, because although being on a top slot in Butter and milk supplies it does not get the sales in ice cream, which it should get. Company should use brand ambassador which attracts each age segment i.e. Saniya Mirza, Shaktimaan, Amitabh Bacchan, Superman, Krrish, Jadoo etc. Amul should give local advertisements apart from the advertisements given at the national level. Local advertisement must mention the exclusive Amul shops of the city. Company should launch ice cream in new attractive packing to change image of Amul ice cream in consumers mind. Company should introduce sales promotion schemes like free weight, cutting knife, contest, free gifts etc. Company should launch icecream in new flavors like ± |
c
V m Õ
* The Company needs to improve their packaging material quality. Packaging is one of the main areas of disagreement with the ice cream because the packaging of the ice cream creates
problem with caring and forwarding
* Company should have to open more APO¶S & A class outlets because total number of outlets in noida is very less.
Õ
; Conduct some program which will encourage and build up the enthusiasm in the company employee. ; It should provide regular and update market information. ; All the variety of product should be available to distributor.
c
LIMITATION
As there were certain constraints under which the project have been done
>
Limited time available for interviewing the respondents. As a result of this it was not
>
possible to gather full information about the respondents.
When I interviewed children and teenagers, sometimes they use to give answers under the influence of their parents or elders.
>
As summer training is going under summer season so sometimes people are less interested in filling up questionnaire.
>
Non-cooperative approach and rude behavior of the respondents.
>
If the respondents answer does not falls between amongst the options given then it will turn-up to be a biased answer. Some time outlets and parlours owner did not give proper knowledge and time about my queries.
>
There might have been tendencies among the respondents to amplify or filter their responses under the testing conditions.
>
Since the study, involved sampling method, µDrop in¶ or µGo through¶ error might have crept in.
>
Market was too volatile during the period of research .
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UUESTIONNAIRE I am a student of PGPM from INSTITUTE OF PROFESSIONAL EXCELLECE AND MANAGEMENT, GHAZIABAD conducting a survey on i
´ ice cream.
(2 What kind of Ice cream do you eat? Branded______ Non-branded______ !2
Who uses Amul ice cream in your family? Children Teenager §oung Old
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)2 What Ice cream flavour do you like? Vanilla_____ Butterscotch_________ Strawberry_____ Other_____
*2 By which media you prefer to watch advertisements. Television Hoardings Newspapers Magazines Others (Mention) 02
What factors effects you in a advertisement? Brand ambassador_______ Jingles________ Comedy _______ Music________
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Others (Mention)_______ ,2
Have you ever tasted Amul Prolife ice cream ? §es_____ No______
12 Can you recall Amul ice cream advertisement? §es____ No____ [8] What is the frequency of purchasing ice cream? Daily ______ Weekly _______ Fortnightly______ Occasionally_______
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[9]
How do you scale Amul ice cream?
Õ PRIC E
SWEETNES PACKAGIN
SOFTNES
SCHEM
AVAILABILIT
S
S
E
§
G
POOR AVERAGE GOOD EXCELLENT
[10] Which company ice cream do you like most? AMUL ____________ KWALIT§ WALLS____________ VADILAL ____________ MOTHER DAIR§ ____________ OTHERS ____________
[11] Why do you prefer Amul ice cream? ______________________________________________
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______________________________________________ ______________________________________________
[12]
Have you got any complain about Amul ice cream regarding :Ta s t e Packaging Rates ±
NAME:___________ AGE: ___________ 10-15 15-25 25-35 35-45 45 and above
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U
F K
P
DG
[1] Do you sell Amul ice cream? §es _________ No _________ Mother Dairy ______ Kwality walls ______ Vadilal ______ Nirulla ______ Baskin robbins _______ Rollics ________ a)
Quality Factor
b)
Service Factor
c)
Brand Factor
d)
Price factor
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e) Freezer factor
f)
Lack of availability of stocks
g)
Delivery problem
h)
Due to low demand of Amul ice cream Then which brand has high demand ___________
i)
Got any kind of bad behavior from company
! a)
Below 6 months _______
b)
6-12 months
c)
More than one year _____
_______
[2] What changes do you think should be done in Amul ice cream to make it much better? __________________________________________________________________ __________________________________________________________________ __________________________________________________________________
[3] What thing do you like about amul? ___________________________________________________________________ ___________________________________________________________________ c
[4] Would you like to deal with Amul ice cream in future also? §es _____ No _____ And why? ____________________________________________________________________
NAME SHOP NAME ADDRESS WITH PHONE NUMBER DATE _______________________
SIGNATURE
_______________________
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BIBLIOGRAPHY
3 . 1) Philip Kotler, Marketing management, (9nd edition), pp- 36,78, 130,540 2) M.S. Agarwal, Marketing Strategy, (2nd edition),pp- 68, 71, 80 3) Duncan, Principle Of Advertising And IMC, (2ndedition), pp-16, 60 4) Satish K Batra , Consumer Behavior, (1nd edition), pp- 29, 131 5) Thomos L Wheelen, Strategic Mgmt And Business Policy, (9th edition), pp- 151, 154, 127 Rajan saxsena ,Marketing Strategy,(3rd edition), pp- 13
6)
7) Arun Kumar, Marketing in Action,(4th edition), pp- 23, 45 8) S. Raju, Consumer Behavior, (2nd edition), pp- 38, 95 9) Various sites
! " "# ! $ $!!"" " ! $! % º& !$ $!
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