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Study on the Penetration of Amul kool milkbeverages product in the retail outlets of Cochin as well as the factors that Influence the Stocking Decision of these products”

SUMMER PROJECT

Submitted to

RAJAGIRI SCHOOL OF MANAGEMENT

In partial fulfillment of the requirement of the award of the

MASTERS DEGREE IN BUSINESS ADMINISTRATION

(2007-2009)

By

RAHUL RAJ Register No. 5355

ADMINISTRATION (2007-2009) By RAHUL RAJ Register No. 5355 RAJAGIRI SCHOOL OF MANAGEMENT RAJAIRI COLLEGE OF SOCIAL

RAJAGIRI SCHOOL OF MANAGEMENT

RAJAIRI COLLEGE OF SOCIAL SCIENCES

RAJAGIRI 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 summe r 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 the award of any degree or diploma.

Place: Kochi Date: 09/06/2008

RAHUL RAJ Rajagiri School of Management

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ACKNOWLEDGEMENT

My gratification and elation on the success of this project would be incomplete without mentioning the names of all the people who he lped me with it and without whose guidance and encouragement 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 India Ltd., Cochin for having given me the opportunity to do my project work in the organization.

I extend my sincere thanks to Mr. George Paul, Faculty Member, Raja giri School of Management, Cochin for having spared his valuable time with me and for all the guidance given in executing the project as per requirements.

Last but not least, I would like to record my deepest sense of gratitude to my friends for their support and constant encouragement.

3

TABLE OF CONTENTS

Sl.No

CONTENTS

Page No

1

Executive Summary

5

2

Industry Profile

6

3

Company Profile

9

4

Research Methodology

11

5

Data Analysis

15

6

Findings

30

7

Recommendation

32

8

Bibliography

34

9

Appendix

35

4

EXECUTIVE SUMMARY

This project was undertaken with the objective of penetration of kool milk product in the outlet levels. It also looked into the different factor of stocking decision to the product in the retail outlets . The study was conducted at Amul India Ltd, Cochin branch. The retailer‟s preference was studied through using questionnaire.

A sample size of 60 respondents was taken for the study, whose responses were studied and interpreted .The sampling design was used convenience sampling. The process of analysis was done through excel work sheets, frequency table, percentage analysis etc.

It was

found that due to low consumption of milk, there is no more awareness of 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 of the retailers then credit 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 : local, regional, national and international rules and regulations for food production and sale, including food quality and food safety, and industry lobbying activities

Education: academic, vocational, consultancy : academic, vocational, consultancy

Research and development: food technology : food technology

Financial services: insurance, credit insurance, credit

Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural construction, etc. : agrichemicals, seed, farm machinery and supplies, agricultural construction, etc.

Agriculture: raising of crops and livestock, seafood : raising of crops and livestock, seafood

Food processing: preparation of fresh products for market, manufacture of prepared food products : 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 advertising, packaging, : promotion of generic products (e.g. milk board), new products, public opinion, through advertising, packaging, public relations, etc

Wholesale and distribution: warehousing, transportation, logistics : warehousing, transportation, logistics

Retail: supermarket chains and independent food stores, direct-to-consumer, restaurant, food services : supermarket chains and independent food stores, direct-to-consumer, restaurant, food services

ADVANTAGE OF INDIA UNDER FOOD INDUSTRY:

India is one of the largest food producers in the worldfood services ADVANTAGE OF INDIA UNDER FOOD INDUSTRY : India has diverse agro-climatic conditions and has

India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companiesfood services ADVANTAGE OF INDIA UNDER FOOD INDUSTRY : India is one of the largest food

6

Investment requirement of around US$ 15 billion exists in the food processing sectorIndia is looking for investment in infrastruc ture, packaging and marketing India has huge scientific

India is looking for investment in infrastruc ture, packaging and marketingaround US$ 15 billion exists in the food processing sector India has huge scientific and research

India has huge scientific and research talent poolfor investment in infrastruc ture, packaging and marketing A largely untapped domestic market of 1000 million

A largely untapped domestic market of 1000 million consumersmarketing India has huge scientific and research talent pool million upper and middle class consume processed

million upper and middle class consume processed foodA largely untapped domestic market of 1000 million consumers million more consumers expected to shift to

million more consumers expected to shift to processed food by 2010million upper and middle class consume processed food Well developed infrastructure and distribution network Rapid

Well developed infrastructure and distribution networkmore consumers expected to shift to processed food by 2010 Rapid urbanization, increased literacy, changing life

Rapid urbanization, increased literacy, changing life style, increased number of women in workforce, rising per capita income- leading to rapid growth and new2010 Well developed infrastructure and distribution network 300 200 opportunities in food and beverages sector 50

300

200

opportunities in food and beverages sector

50 per cent of household expenditure by Indians is on food itemsand new 300 200 opportunities in food and beverages sector Strategic geographic location (proximity of India

Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia)cent of household expenditure by Indians is on food items Under the food industry, Dairy product

Under the food industry, Dairy product is very imp ortant part of fo od processing. Dairy processing is acting good role in India.

Dairy 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.

7

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 (primarily, small and marginal farmers and landless labourers ) 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 of seasonal and regional variations in the availability of 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 plan scheme of the Ministry during the year 2006-07.

Major Indian and Overseas Players in the Food industry

ITC LimitedMajor Indian and Overseas Players in the Food industry Parle Products Pvt. Ltd. Agro Tech Foods

Parle Products Pvt. Ltd.Indian and Overseas Players in the Food industry ITC Limited Agro Tech Foods Amul Perfetti India

Agro Tech Foodsin the Food industry ITC Limited Parle Products Pvt. Ltd. Amul Perfetti India Ltd. Cadbury India

AmulITC Limited Parle Products Pvt. Ltd. Agro Tech Foods Perfetti India Ltd. Cadbury India Ltd. PepsiCo

Perfetti India Ltd.ITC Limited Parle Products Pvt. Ltd. Agro Tech Foods Amul Cadbury India Ltd. PepsiCo India Holdings

Cadbury India Ltd.Products Pvt. Ltd. Agro Tech Foods Amul Perfetti India Ltd. PepsiCo India Holdings Nestle India Pvt.

PepsiCo India HoldingsAgro Tech Foods Amul Perfetti India Ltd. Cadbury India Ltd. Nestle India Pvt. Ltd. Britannia Industries

Nestle India Pvt. Ltd.India Ltd. Cadbury India Ltd. PepsiCo India Holdings Britannia Industries Ltd. Hindustan Uni Lever Limited MTR

Britannia Industries Ltd.India Ltd. PepsiCo India Holdings Nestle India Pvt. Ltd. Hindustan Uni Lever Limited MTR foods limited

Hindustan Uni Lever LimitedHoldings Nestle India Pvt. Ltd. Britannia Industries Ltd. MTR foods limited Godrej industries Limited Dabur India

MTR foods limitedNestle India Pvt. Ltd. Britannia Industries Ltd. Hindustan Uni Lever Limited Godrej industries Limited Dabur India

Godrej industries LimitedHoldings Nestle India Pvt. Ltd. Britannia Industries Ltd. Hindustan Uni Lever Limited MTR foods limited Dabur

Dabur India Ltd.Nestle India Pvt. Ltd. Britannia Industries Ltd. Hindustan Uni Lever Limited MTR foods limited Godrej industries

8

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 Co - operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand .

GCMMF:

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives i n 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 Cola's Powerade and PepsiCo's Gatorade .

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets .Other potential markets being considered include Sri Lanka.

Dr Verghese Kurien, 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 chairman 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 moder n technology to door steps to rural farmers.

Amul created history in following areas:

a)First self

5000000 marginal milk producers of Kaira District.

motivated

and autonomous farmers‟ organization comprising of more than

b) Created Dairy co-operatives at village level functioning with milk collection centres owned by them.

c) Computerized milk collection system with electronic scale and computerized accounting system.

d)The first and only organization in world to get ISO 9000 standard for its farmers co- operatives.

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 are already available on shelves across several countries, including the US, China, Australia, West Asian countries and Africa.

GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.

10

RESEARCH METHODOLOGY

11

TITLE OF THE STUDY

A study of the penetration of „AMUL kool mlikbeverages products in the retail outlets of Cochin & the factors that influence the stocking decision of retailers of such products.

OBJECTIVE OF THE RESEARCH

To find out the penetration of „AMUL KOOL MILK ‟ beverages products in the retail outlets of Cochin with reference of „AMUL KOOL MILK‟ beverages products in the retail outlets of Cochin with reference to retailers of such products.

To find out the factors that influences the stocking decision of retailers of kool milk beverages product in Cochin.of Cochin with reference to retailers of such products. PROBLEM STATEMENT There has been a drop

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 decision of retailers of beverage products.

SCOPE OF THE STUDY

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 penetrat ion of AMUL products for all the retail outlets in Cochin.

SOURCES OF DATA

Primary sources

The primary data was collected through questionnaires. They were filled using the scheduled method of data collection by the researcher.

Secondary sources

The secondary sources were used only for collecting information regarding the sample, they were however not used for analysis.

12

RESEARCH DESIGN

A Research design specifies the methods and procedures for conducting a particular

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 design used was Convenience sampling, which is a non-probability sampling method. The convenience factors were the availability and approachability of the respondents.

POPULATION

All types of outlets that stock and sell kool milk beverages products

outlets have been classified into as follows

in the markets. The

Convenience stores : All kinds of shops including 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.

Chembumukku

iii.

Ernakulam

iv.

Kakkanad

v.

Kaloor

vi.

Kachheripadi

vii.

Mattancherry

viii.

Menaka

ix.

M.G.Road

x.

Palarivattom

xi.

Tripuntra

xii.

Thevra jn.

13

MEASUREMENT

The research objective requires the researcher to find out the penetration of Amul kool milk beverages products with reference to retailers of such products. For this the following data relevant were collected

a. Amul product sold by the retailers

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 OF THE RESEARCH

The limitations of the research were as follows

1. Lack of proper experience on the part of the researcher in conducting such studies in the past.

2. Time frame required was not enough to survey more number of outlets.

ANALYSIS TECHNIQUES

Quantitative analysis is performed using t he data collected at each outlet to estimate the presence of Amul products.

Tools Utilized

Percentage Analysis

Graph Chart

14

DATA ANALYSIS & INTERPRETATION

15

3. Outlet Types visited for the purpose of research.

 

Convenience Store

Eatery

Grocery

Total

Outlets

35

13

12

60

The above table shows that out of 60 outlets surveyed; there were 35 convenience stores,13 eatery and 12 grocery.

RETAIL OUTLETS SURVEYED

 
  Series1  

Series1

 

GROCERY

   

20%

EATERY

 

22%

CONVENIENCE STORE

 

58%

Of all the retail outlets surveyed, 58% are convenience stores, 20% are groceries, 22% are eateries.

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4. How long have you been into the kool milk business?

 

Less than 1 year

1-3 years

More

than

3

Total

years

Outlets

30

17

11

60

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.

DURATION SINCE IN BUSINESS

52%

DURATION SINCE IN BUSINESS 52% Series1 29% 19% LESS THAN 1 YEAR 1 - 3 YEARS

Series1

29% 19%
29% 19%
29% 19%
29% 19%
29% 19%
29% 19%
29% 19%
29% 19%
29% 19%

29%

29% 19%
29% 19%
29% 19%
29% 19%
29% 19%
29% 19%

19%

29% 19%
29% 19%
29% 19%
29% 19%

LESS THAN 1 YEAR

1 - 3 YEARS

MORE THAN 3 YEARS

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.Penetration Level of Amul products in retail outlets of Cochin.

 

AMUL

 

TYPE

YES

NO

TOTAL

Convenience Store/ Modern Trade

25

10

35

Eatery

3

10

13

Grocery

4

8

12

Total

32

28

60

The table above shows that the product Amul has penetrated in 32 outlet in the

comparision of 60 outlets .

PENETRATION OF AMUL PRODUCT IN THE RETAIL OUTLET

47% 53%
47%
53%

YESPENETRATION OF AMUL PRODUCT IN THE RETAIL OUTLET 47% 53% NO

NOPENETRATION OF AMUL PRODUCT IN THE RETAIL OUTLET 47% 53% YES

The graph defines that Amul penetrated in 53% outlet while no penetration in 47% outlets.

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 shows that the product Milma has penetrated in 23outlets to the retail

outlets surveyed.

PENETRATION OF MILMA PRODUCT IN THE

RETAIL OUTLET

Series1 62% 38% YES NO
Series1
62%
38%
YES
NO

The above graph represents the penetration of Milma products which has 38% of outlets surveyed.

19

 

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 above shows that the products of other local brands available in 22 outlet of 60

outlets surveyed.

PENETRATION OF OTHER LOCAL BRAND IN RETAIL OUTLETS

PENETRATION OF OTHER LOCAL BRAND IN RETAIL OUTLETS Series1 63% 37% YES NO

Series1

63% 37%
63%
37%

YES

NO

The graph represents the penetration of kool milk beverages products of other brands is

37% in Cochin outlets.

20

5b.Which company kool product do you sell most?

 

AMUL

MILMA

OTHERS

TOTAL

OUTLETS

30

18

12

60

The table shows that the sell of Amul is higher in 30 outlet while Milma in 18 and Others

in 12 outlets of 60 outlets.

MOST SELL OF COMPANY PRODUCT

OTHERS 20% MILMA 30% AMUL 50%
OTHERS
20%
MILMA
30%
AMUL
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%.

21

6.Outlets share of the various kool milk beverages product in cochin.

 

AMUL

MILMA

OTHERS

OUTLETS

32

23

22

The table defines that in 60 outlets, 32 are those outlets where Amul available, Milma in 23 and Others in 22 outlets.

OUTLETS SHARE OF VARIOUS KOOL MILK

BEVERAGES PRODUCT OTHERS 29% AMUL 41% MILMA 30%
BEVERAGES 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 share of 30% and the other local brands have outlets share of 29%.

22

7a,8a,9a. Availability of credit, discount and good distribution channel in Amul product.

 

AMUL OUTLETS

YES

NO

CREDIT

12

20

DISCOUNT

10

22

GOOD DISTRIBUTION CHANNEL

20

12

The table defines credit, discount and go od distribution channel of Amul.10 22 GOOD DISTRIBUTION CHANNEL 20 12 Amul available in32 outlet of 60 outlets surveyed. Among

Amul available in32 outlet of 60 outlets surveyed.credit, discount and go od distribution channel of Amul. Among 32 outlets of Amul, only 12

Among 32 outlets of Amul, only 12 outlets get credit while 20 outlet do not get.of Amul. Amul available in32 outlet of 60 outlets surveyed. Regarding discount, only 10 outlets get

Regarding discount, only 10 outlets get discount while 22 outlets don’t get. 10 outlets get discount while 22 outlets don’t get.

For distribution channel, 20 outlets said that Amul distribution channel good as well asonly 10 outlets get discount while 22 outlets don’t get. moderately good where as 12 outlets

moderately good where as 12 outlets said bad distribution channel.

23

69% 63% 63% 70 60 50 37% 37% 40 31% YES 30 NO 20 10
69%
63%
63%
70
60
50
37%
37%
40
31%
YES
30
NO
20
10
0
CREDIT
DISCOUNT
GOOD
DISTRIBUTION
CHANNEL

In the above chart, it defines that 37% outlets are getting Amul credit, 31% discount and 63% outlets agree that Amul has a good distribution channel.

7b,8b,9b. Influencing factor for stocking decision on the basis of Credit, Discount and Distribution channel.

 

INFLUENCE

YES

NO

CREDIT

37

23

DISCOUNT

29

31

DISTRIBUTION CHANNEL

35

25

This table shows the influencing factor of stocking decision on the availability of credit, discount and distribution channel of the company.

24

Out of 60 outlets surveyed, 37 outlets said that credit influence his stocking decision while 23 outlets said no influence his Stocking decision.

Regarding discount, 29 outlets agree that discount influence his stocking decision 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 CHANNEL 58% 52% DISCOUNT 48% 38% CREDIT 62% 0 20 40
NO
YES
42%
DISTRIBUTION CHANNEL
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.Replacement offer to the expired packed product by the company?

 

REPLACEMENT OFFER

 

AMUL

MILMA

OTHERS

TOTAL

CHANNEL

25

17

18

60

Table represents that 25 outlets said , Amul has better replacement offer while 17 said Milma and 18 said others.

REPLACEMENT OF EXPIRED PRODUCT

30% 42% 28%
30%
42%
28%

AMULREPLACEMENT OF EXPIRED PRODUCT 30% 42% 28% MILMA OTHERS

MILMAREPLACEMENT OF EXPIRED PRODUCT 30% 42% 28% AMUL OTHERS

OTHERSREPLACEMENT OF EXPIRED PRODUCT 30% 42% 28% AMUL MILMA

42% of the retailers believed that Amul has the better replacement of packed expired

product where as 28% believed Milma and 30% Others.

26

10b.Replacement offer to the expired product influence the stocking decision?

INFLUENCE

YES

NO

TOTAL

REPLACEMENT

OFFER

36

24

60

Out of 60 outlets surveyed ,36 outlets influenced by replacement offer while 24 outlets didn‟t influence by replacement offer.

INFLUENCE OF REPLACEMENT OFFER AS A

STOCKING DECISION

NO 40% YES 60%
NO
40%
YES
60%

On the outlet surveyed ,60% of the retailers said that the replacement offer influence his stocking decision while 40% said that replacement offer does not influence his stocking decision.

27

Q11. Ranking of some of the other factors that influence a retailers stocking decision.

 

PROMOTION

PACKAGING

OFFERS

CONSUMER

PREFERENCE

OUTLET

       

PREFERENCE

20

8

10

22

FINAL RANK

2

4

3

1

RANKING FACTOR INFLUENCING DECISION

RANKING FACTOR INFLUENCING DECISION Series1 1 2 3 4 PROMOTION PACKAGING OFFERS CONSUMER PREFERENCE

Series1

1

2 3 4 PROMOTION PACKAGING OFFERS CONSUMER PREFERENCE
2
3
4
PROMOTION
PACKAGING
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 promote its products, offers and finally packaging of the product.

28

Q12. Overall ranking of the influencing factors to the buying decision of retailers.

 

CREDIT

DISTRIBUTION

DISCOUNT

COMPANY

CHANNEL

TRUST

OUTLET

       

PREFERENCE

18

13

10

19

FINAL RANK

2

3

4

1

RANKING OF BUYING DECISION BY RETAILORS

Series1 COMPANY TRUST 1 DISCOUNT 4 DISTRIBUTION CHANNEL 3 CREDIT 2
Series1
COMPANY TRUST
1
DISCOUNT
4
DISTRIBUTION CHANNEL
3
CREDIT
2

From the above tab le 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 of the distribution network and finally the discount.

29

FINDINGS OF THE STUDY

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 producthere.

2. Lack of awareness of milk product is the major cause to the low consumption of „kool

milk beverages‟ product. 3.According to outlets surveyed, the milk beverage products are consumed mostly from 1 years.

4.Amul is available in maximum outlets in the comparison of the competitor products.

5. On the basis of sell of milk beverage product, Amul acts the leading role among

competitor product.

6 There is only few outlets where credit and discount available by the Amul company. 7. On the concern of distribution channel , most of the retailers agree that Amul has good distribution channel.

8. Amul gives the better replacement offer to the expired product than the other company

products. 9.Replacement offer to the expired product is one of the most important factor for influencing the stocking decision of the product. 10. Ranking of some other factors that influence the retailers stocking decision:

Following is the order in which the retailers ranked t he other factors that influence their stocking decision.

i. Consumer preference given by the company to the retailers of the product was raked 1st

ii. Promotional strategies of the company for promoting it‟s products was ranked 2nd

iii. Offers for the product was ranked 3rd

iv. Packaging of the product 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 ra nked the factors that influence their stocking decision.

i. Trust of the company is the most important point for its products.

ii. Credit offered by the distributor

iii. Distribution in supplying the products regularly

iv. Discounts provided by the company for its products.

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 consider on the supply of product in the peak season.

2. Supply should be regula r 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 outlet. So company should give the credit to all 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 should also give the replacement offer to those outlet 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 Malhotra., Marketing Research An Applied Orientation, 4 th Edition, Pearson Education Pvt. Ltd, New Delhi, 2003.

Abraham Koshy, Mileshwar Jha -- Marketing Management, Pearson Prentice Hall, New Delhi, 2007.

C.R.Kothari- Research Methodology, New Age International (P) Limited, New Delhi 2007.

WEBLIOGRAPHY

www.wikipedia.org

www.google.com

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ANNEXURE

QUESTIONNAIRE FOR THE RETAILER

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 decision of retailers.

1.Name of the Outlet

1.Name of the Outlet

2.Location of the Outlet

2.Location of the Outlet

3.Type of Outlet

a) Convenience Store

b) Eatery

c) Grocery

4. How long have you been into the KOOL MILK business?

a) Less than 1 year

b) 1 to 3 years

c) Greater than 3 year

5a. Which company product do you stock?

1) AMUL

2)MILMA

3)BOTH

4)OTHERS

5b.Which

1)AMUL

2)MILMA

3)OTHERS

company kool product do you sell most?

     

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6. How many units do you sell of the following brands daily? a) AMUL b)
6. How many units
do you sell of the
following brands
daily?
a) AMUL
b) MILMA
c) Others
d)Not Applicable
7a. Do you receive credit
from the AMUL
company/distributor?
a) Yes
b)
No
7b. Does it influence your
stocking decision?
a) Yes
b)
No
8a. Is discount available
for purchase of AMUL
products?
a) Yes
b) No
c)
Not Applicable
8b. Does discount
influence your stocking
decision?
a) Yes
b)
No
9a. How effective do you
feel AMUL’S distribution
channel?
a) Good
b) Moderate
c) Bad
d)
Not Applicable

9b. Does the effectiveness of the distribution channel influence your stocking decision?

a) Yes

b)

No

10a. Which company offers you a better replacement alternative against expired packed product?

a) AMUL

b) MILMA

c) Others

d) None in particular

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10b. Does it influence 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

Offers

Promotional effectiveness of the company

Consumers preference

12. Rank the following criteria from ( 1 4 ), where 1 is the most important and 4 is

the least important, which influences your stocking decision?

Credit

Distribution channel efficiency

Discount

Trust of the company

13.Suggestion for Amul:

Thank you for your kind cooperation, valuable inputs and time.

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