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A PROJECT REPORT ON MARKETING STRATEGY OF AMUL (MMM-A + PGDM )

SUBMITTED BY:
SIDDARTH RAVINRAN JAYDEV KUMAR DHARMENDRA PRASAD

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND RESEARCH 2010-2012

ACNOWLEDGEMENT
We extend my sincere thanks to Mr. SwapnilPatilfor providing us the opportunity to work on this project. Weexpress our deep sense of indebtness to him because he has been the moving force behind the successful accomplishment of the project we thank him for taking time out of his busy schedule and guiding me in the project. We would also like to thank our project guideSwapnilPatiland faculty membersfor their valuable guidance and encouragement at all the stages of the project.

3 PREFACE The success of any business entity solely depends on how effectively does it utilizes its optimum resources and how soon does it make arrangements for the removal of the customers grievances. Moreover, the company should always be ready to make necessary changes according to the requirement in order to attract more customers so as to maintain a substantial growth in the market. The topic given to me was: MARKETING STRATEGIES AMUL We have tried to put our best efforts to complete this task on the basis of skill that we have achieved during our studies in the institute. We have tried to put my maximum effort to get the accurate statistical data. If there is any error or any mistake in collecting the data, please ignore it.

INDEX

 Objectives of the project  Introduction of the Topic  Company profile of Amul  Amul and co-operation  GCMMF  PEST Analysis amul  4Ps of markering  Comparison between chocolate companies  Conclusion  Bibliography

OBJECTIVES OF THE PROJECT

The main objective of the study on this project is to demonstrate the marketing strategies of Amul India Ltd. And to arrive at my findings, I have done PESTanalyses.

And also 4 Ps of Marketing: Product Price Physical Distribution Promotion

INTRODUCTION TO THE TOPIC

. The topic To study about Strategy and Market Share of Amul chocolates highlights on the market share of Amul Chocolates Pune city in comparison to existing player in the Milk chocolate Market. The market share can be found with the help of retailers. As the competitors are concerned there are only two of them i.e. Cadbury and Nestle The study is also concerned to find out the various reasons due to which the retailers do not prefer to sell Amul Chocolates.Moreover the study also helps in knowing the best medium for creating the awareness about the Amul Chocolates. To know the Market share and problems faced by retailers is very important for every organization for their promotion, expansion and development.

COMPANY PROFILE

1. Formed in 1946, Amul has initiated the Dairy Cooperative movement in India and formed an Apex Cooperative Organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), jointly owned by some 2.1 million milk producers in Gujarat, India. Its products, including milk powders, liquid milk, butter, ghee, cheese, chocolate, ice cream and pizza are widely used throughout India and abroad and have made Amul the largest food brand in India today with an annual turnover of some Rs.29 Billion ($US 616 million) per annum.

2. The primary goal of Dr. V. Kurien, Chairman, GCMMF, has been to build a strong Indian society economically through an innovative cooperative network, to provide quality service and products to end- consumers and good returns to the farmer members. Dr. Kurien states, We have traversed a path that few have dared to. We are continuing on a path that still fewer have the courage to follow. We must pursue a path that even fewer can dream to pursue. Yet, we must. We hold on trust the aims and aspirations o millions of our countrymen.

3. Information Technology has played a significant role in developing the Amul brand. The logistics behind co-ordinating the collection of some 6 million litres of milk per day from 10,755 separate Village Cooperative Societies throughout Gujarat and then storing, processing and producing milk products at the respective 12 District Dairy Unions, are awesome. The installation of 3000 Automatic Milk Collection System Units (AMCUS) at Village Societies to capture member information, milk fat content, volume collected and amount payable to each member has proved invaluable in ensuring fairness and transparency throughout the whole Amul organization.

4. In 1996 Amul was one of the first major organizations in India to have a website and this has been used both to develop an intranet of Amul distributors as well as a cyber-store for consumers, one of the first examples of e-commerce activity in India.

AMUL AND CO-OPERATION

The CEO, Mr. B M Vyas, said that. Amul is not a food company; it is an IT company in the food business. In saying this he was recognizing that the most efficient way of building links between milk producers and consumers so as to provide the best returns for the both is through IT innovation.

Thus is why Amul has embraced the ideas behind coop with such enthusiasm. Not only will the TLD enable consumers in India to recognize an established brand they can trust online, it will enable Amul to begin trading competitively throughout the world, reaching markets, which have hitherto been inaccessible.

The CIO, Mr. SubbaraoHegde said, Information Technology is the most effective tool we have in communicating with our members and the millions of consumers who purchase Amul products throughout India every day. Coop not only reflects the cooperative values which shape our own organization democratically dynamic, it will also give us a vital business advantage as we seek to develop the Amul brand throughout the world.

AMUL means priceless in Sanskrit. The brand name Amul, from the Sanskrit Amoolya, was suggested by a quality control expert in Anand. Variants, all meaning priceless, are found in several Indian languages. Amul products have been in use in millions of home since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, AmulShrikhand, Amul Ice cream, Nutramaul, Amul Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 29 billion in 2004). Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices.

GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION(GCMMF)

An Overview: Gujarat Cooperative Milk Marketing Federation (GCMMF) is Indias largest food products marketing organization. It is state level apex body of milk cooperative 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. Members: 12 district cooperative milk producersUnion No. of Producers Members 2.36 million No. of Village Societies 11,333 Total Milk handling capacity6.9 million liters per day Milk collection (Total 2002-03) 1.86 billion liters Milk collection (Daily Average (2003-04) 4.97 million liters Milk Drying Capacity 511 metric Tons per day Cattlefeed manufacturing 2340 Mats per day Capacity: Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 37736 42778 52448 67113

Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2005-06 2006-07 2007-08 2008-09

US $ (in millions) 355 400 450 455 493 493 500 500 575 616 850 1050 1325 1504

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PEST ANALYSIS OF AMUL

P-)Since the budget range is decontrolled, no political effects are envisaged.

E-1) Increasing per capita income resulting in higher disposable income 2) Growing middle class/urban population increase in demand. 3) Low cost of production better penetration.

S-1) Per capita consumption expected to increase fashion.

2)Increasing gifts culture increase in demand.

3) Lower cholesterol than Mithais (sweet meat) substitute demand

T-)Will have to reinforce technology to international levels once India is a free economy

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4 PS OF MARKETING
PRODUCT:Satisfaction suffices. But delight dazzles the average company will compete for customer by conforming to her expectation consistently. But the winner will surpass them by constantly exceeding her expectation, delivering to her door step additional benefits which she would never have imagined possible. Cadburys offer such product. The wide variety products offered by the company include: List of Products Marketed: -

Breadspreads:  Amul Butter  Amul Lite Low Fat Breadspread  Amul Cooking Butter Cheese Range:  Amul Pasteurized Processed Cheddar Cheese  Amul Processed Cheese Spread  Amul Pizza (Mozarella) Cheese  Amul Shredded Pizza Cheese  AmulEmmental Cheese  Amul Gouda Cheese  AmulMalaiPaneer (cottage cheese) Frozen and Tinned  Utterly Delicious Pizza Mithaee Range (Ethnic Sweets):  AmulShrikhand (Mango, Saffron, Almond Pistachio, Cardamom)  AmulAmrakhand  AmulMithaeeGulabjamuns  AmulMithaeGulabjamun Mix  AmulMithaeeKulfi Mix UHT Milk Range:  AmulTaaza 3% fat Milk  Amul Gold 4.5% fat Milk  Amul Slim-n-Trim 0% fat Milk

12     Amul Chocolate Milk Amul Fresh Cream Amul Snowcap Softy Mix AmulTaaza Double Toned Milk

Pure Ghee:  Amul Pure Ghee  Sagar Pure Ghee  Amul Cow Ghee Infant Milk Range:  Amul Infant Milk Formula 1 (0-6 months)  Amul Infant Milk Formula 2 (6 months)  Amulspray Infant Milk Food Milk Powders:  Amul Full Cream Milk Powder  Amulya Dairy Whitener  Sagar Skimmed Milk Powder  Sagar Tea and Coffee Whitener Sweetened Condensed Milk:  AmulMithaimate Sweetened Condensed Milk Fresh Milk:  AmulTaaza Toned Milk 3% fat  Amul Gold Full Cream Milk 6% fat  Amul Shakti Standardised Milk 3% fat  Amul Smart Double Toned Milk 1.5% fat Curd Products:  AmulMastiDahi (fresh curd)  Amul Butter Milk ,AmulLassee AmulIcecreams:  Royal Treat Range (Rajbhog, Cappuccino, Chocohips, Butterscotch, TuttiFrutti)  Nut-o-Mania Range (KajuDrakshi, KesarPista, Roasted Almond, KerarCarival, BadshahiBadamKulfi, ShistaPistaKulfi)  Utsav Range (Anjir, Roasted Almond)  Simply Delicious Range ( Vanilla, Strawberry, Pineapple, Rose, Chocolate)  Natures Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)  Sundae Range (Mango, Black Currant, Chocolate, Strawberry)  Millennium Icecream(Cheese with Almonds, Dates with Honey)  Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly,ShahiBadamKulfi, ShahiPistaKulfi, MawaMalaiKulfi, Green PistaKulfi)

13         Cool Candies (Orange, Mango) Cassatta Tricone(Butterscotch, Chocolate) Megabite Almond Cone Frostik 3 layer chocolate Bar Fundoo Range exclusively for kids SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple) Health: Isabcool

Chocolate & Confectionery:  Amul Milk Chocolate  AmulAlmondbar  AmulFundoo  AmulChocozoo  AmulBindaaz  Amul Fruit & Nut Chocolate Brown Beverage:  Nutramul Malted Milk Food Milk Drink:  Amul Shakti Flavoured Milk Ready to Serve Soups:  Masti Hot & Sour Soup

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PRICING:Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. The strategy used by Cadburys is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them.  AMUL has launched various products which cater to all customer segments. So every

customer segment has different price expectation from the product. Therefore maximizing the returns involves identifying right price level for each segment, and then progressively moving through them. In milk chocolate Amul has the following brands: Name of chocolate Weight Price (Rs.) Amul Milk Chocolate 35g AmulFundoo AmulFundoo Amul Fruit Nut AmulBindaaz AmulAlmondbar AmulChocozoo All the chocolates are made up of: Milk Fat Sugar Solid Milk (2%) (55%) - (20%) 30g 15g 35g 30g 35g 10 10 5 15 10 10

500g(Tub) 138

Cocoa Solids - (7.5%)

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Physical Distribution Place

In a product and price parity situation, the brand that sells more is the one that reaches the highest number of customers. India 1 billion people, 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq.

Promotion
If an advertisement is to communicate effectively, the receiver must at least half want it to, and be prepared too take step toward the sender. Effective advertising is rarely hectoring or loudly explicit. It often both attracts and generates arm feelings. More often than not, a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature. To penetrate into the inner recesses of her memory, communication must first ensure exposure, grab her attention evoke her comprehension, grab her acceptance and then extract retention competing with thousands of other units of communication trying to do the same.

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COMPARISION BETWEEN CHOCOLATE COMPANIES

1) Name of Chocolate Companies and their penetration in marketThe table below deals in finding the numbers of retailers that sellsdifferent company chocolates and their penetration in markets. Table 1.1 Chocolate companies and their penetration Name of company Amul Cadbury Nestly Other No of shops 20 149 148 18

Graph 1.1 Chocolate companies and their penetration

160 140 120 100 80 60 40 20 20 0 Amul Cadbury Nestle Others 18 149 148

The graph 1.1 shows the number of retailers selling different company chocolates. There are only 20 retailers i.e. 13.33% who deal in Amul chocolates. The percentage is very less compared to Cadbury and Nestle.

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2) Market share The table below deals in finding the Market Share of Amul Chocolates and other companies chocolate. Table 2.1 Market Name of company Total Sale (Per month) Amul Cadbury Nestle Others Total
Graph 2.1 Market Share

Share Market (%) share

Rs.

3130

00.84% 64.5% 33.9% 00.67% 100%

Rs. 239750 Rs. 125940 Rs. 2500

Rs. 371320

1% 34% 64% Others 1% Nestle Amul Cadbury

The graph 2.1 shows the market share of different company chocolates in terms of rupees. From the graph we can say that the market share of Amul chocolates is only 1%, which is very less, compared to other companies. Cadbury has the maximum share of 64.5%.

18 3) a)Brands of Amul chocolates sold on Amul chocolate Outlet. The table below helps in finding the different brands of Amul Chocolates that is available on Amul Chocolate Outlet. A shop that sells even one Amul Chocolate is an Amul Chocolate Outlet Table 3.1 Brand of Amul Chocolates & their selling percentage Name of chocolate No. Of Amul chocolate Outlet 8 4 11 4 16 6 0 0

A Amul Milk chocolate B AmulFundoo C Amul Fruit n Nut D AmulBindaaz E F AmulAlmondbar AmulChocozoo

G Amul Rejoice H All Chocolates

Brand of Amul Chocolates & their selling percentage

20 16 15 11 10 5 0 0 A B C D E F G H 0 8 6 4 4

Graph-3.1

19 The Graph 3.1 above shows that Amul Almond Bar is sold at most of the Amul Chocolate outlet followed by Amul fruit n Nut &Amul Milk Chocolate. There is not a single outlet that sells Rejoice. 3) b) Ordering Pattern The table below deals in finding the ordering pattern for Amul Chocolates. Table 3.2 Ordering Pattern Option No. of Retailers

Daily Weekly Monthly Graph 3.2

0 0 20

Ordering Pattern
25 20 20 15 10 5 0 0 Daily Weekly Monthly 0

The graph 3.2 shows the ordering pattern followed by Amul Chocolate outlets. It is seen that almost all of them order once in a month since their demand is very less.

20 4) Financial Support for promotion. The table below deals in knowing whether the company provides any financial support for promotion to Amul chocolate outlets. Table 4.1 Financial Support For Promotion

Option Yes No

No. of Retailers 0 20

Graph 4.1 Financial Support for Promotion

20 20 15 10 5 0 Yes No 0

The graph 4.1 shows the financial support for promotion. From the graph we can say that according to the retailers the company does not provide any financial support for promotion.

21 5) Reasons for not selling Amul Chocolates. The table below deals in finding the reasons for retailers due to which they do not sell Amul Chocolates. Table 5.1 Reasons For Not Selling Of Amul Chocolates Reasons A B C D E F Distribution & Service problem Low demand Low Margin Replacement Problem No Refrigerator Not Interested No. of Retailers 108 73 98 45 21 15

Graph 5.1 Reasons For Not Selling Amul Chocolates

120 100 73 80 60 40 20 0 A B C D E F 45 21 15 108 98

The graph 5.1 shows the various reasons due to which the retailers do not sell Amul chocolates. From the graph we can say that Distribution & Service problems and Low Margin are the major reasons followed by Low demand and Replacement problem because of which the retailers do not want to sell Amul chocolates.

22 6) Reasons for Preference in selling other company chocolates. The table below deals with finding the reasons due to which the retailers prefer to sell other company chocolates and not Amul chocolates. Table 6.1 Reasons For Selling Other Company Chocolate Reasons A B C D E Good Distribution and Service More Demand Higher Margin Better Replacement More Benefit Graph 6.1 Reasons For Selling Other Company Chocolate
120 100 73 80 60 40 20 0 A B C D E 23 30 97 105

No. of Retailers 97 105 73 23 30

The graph 6.1 shows the reasons for which the retailers prefer to sell other company chocolates. The major reasons are the More demand of other company chocolates, Good service as well as Higher Margin.

23 7) The most attractive scheme. The table below deals with finding the most attractive scheme according to the retailers.

Table 7.1 The most Attractive Scheme Different Schemes Incentive Scheme Free Pack on Large Purchase Increase Profit Margin Lucky Draw No. of Retailers 34 40 79 25

Graph 7.1 The Most Attractive Scheme

100 79 80 60 40 20 0 Incentive Scheme Free Pack on Increase Profit Large Purchase Margin Lucky Draw 34 40 25

The graph 7.1 shows show the Different Schemes for attracting the retailers for selling Amul Chocolates. Mostly the retailers are attracted towards increased Profit Margin followed by Free Pack on large purchase.

24 8) Mediums for Creating Awareness. The table below deals in finding the most appropriate medium for creating awareness. Table 8.1 Effective Medium

Option More TV / News Advertisement Banners Gift/Coupons Graph 8.1 The Effective Medium paper

No. Of Shops 150 62 48

160 140 120 100 80 60 40 20 0

150

62 48

More TV / News paper Advertisement

Banners

Gift/Coupons

The graph 8.1 shows the different effective mediums for creating awareness about the Amul chocolates. According to all of the retailers, the most effective medium is TV and Newspaper advertisement.

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CONCLUSION
As we know thatAmul 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 chocolate industry is a profitable industry we cant ignore it. With the help of research, company can find out its week points in chocolate product and can increase its market share through rectify mistakes. People have believed inAmuls product and they will accept its chocolates also if effective actions were taken.The survey resulted into following conclusions :  Amul must come up with new promotional activities suchthat people become aware about Amul Chocolates like Chocozoo, Bindaaz, and Fundoo. 

Quality is the dominating aspect which influences consumerto purchase Amul product, but prompt availability of other chocolate brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales.

In comparison to Amul Chocolate, the other players such asCadbury, Nestle, areprovide a better availability and give competition to the hilt.

People are mostlysatisfied with the overall quality of AmulChocolate, but for the existence in the local market Amulmust use aggressive selling techniques.

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BIBLIOGRAPHY
1. www.amul.com 3. www.google.com 4. www.marketresearch.com 5. www.dairy.com 6. Research Methodology. (HarperW.Boyd, C. R. Kothari
swapnilpatil2k@gmail.com