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Submitted By:
NIKUNJ RISHI
(PGDBM 3rd SEM)
ACKNOWLEDGEMENTS
Success often comes to those who dare and act: it seldom
goes to Timid "
Jawaharlal Nehru.
Expression of mind by words is a difficult task; I find when it
comes to an appeal of fathomless gratitude and obligation. So first of
all, I owe my head heartily to all who have been inspirational ,
motivating and supportive throughout my project work undertaken
and endowed me with the most precious knowledge , the most
powerful of all. Yes! My report is the sensible team effort of all those
people mentioned, or not mentioned here. Still, it is too less to
express my deep thanks to them.
It is with fathomless gratitude that I express my benevolent
thanks to my reverend project guide Mr Sudhir Gupta , and Mr.
Shekhar Khandpal not only for giving excellent guidance , unabated
inspiration but also for his never ending willingness to deliver
generous research methodologies , timely attention and kind interest ,
since beginning of my course. I shall forever ellence, honesty and
respect for the moral and ethics. Their vision and perception of the
uncommon fostered my brain to strive me towards perfection. I
consider myself very fortunate to work with to work with such a
NIKUN
J RISHI
Declaration
I NIKUNJ RISHI, a student of New Delhi Institute of Management
hereby declare that all the information, facts and figures furnished in
this report are based on my own findings and experience collected,
during my project in AMUL Industries Ltd. This information has
been used for purely academic purpose.
I hereby declare the material provided in this report is original and
has not been submitted anywhere for any other diploma or degree.
The project report is the result of my own hard work and self belief.
NIKUNJ RISHI
TABLE OF CONTENTS
1.INTRODUCTION
INTRODUCTION
AMUL means "priceless" in Sanskrit. The brand name "Amul," from
the Sanskrit "Amoolya," was suggested by a quality control expert in
Anand. Variants, all meaning "priceless", are found in several Indian
languages. Amul products have been in use in millions of homes
since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream,
Nutramul, Amul Milk and Amulya have made Amul a leading food
brand in India. (Turnover: Rs. 37.74 billion in 2005-06). Today Amul is
a symbol of many things. Of high-quality products sold at reasonable
prices. Of the genesis of a vast co-operative network. Of the triumph
of indigenous technology. Of the marketing savvy of a farmers'
organisation. And of a proven model for dairy development.
Composition:
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 Kulfies.
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.
continuous training. Shri B.M. Vyas who had then just taken over as
the managing director of GCMMF took up this gamble and decided
to lead the organization from the front. He was ably assisted by Shri
James Joseph (now in U.S.). Six years down the line and organization
has been transformed.
Amul has recently entered into direct retailing through "Amul Utterly
Delicious" parlours created in major cities Ahmedabad, Bangalore,
Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has plans to
create a large chain of such outlets to be managed by franchisees
throughout the country. We have created Amul Parlours at some
prominent locations in the country, which are run by the company or
its wholesale dealers:
1. Delhi Metro Rail Corporation
2. The Somnath Temple
2.41 million
Rs (million)
US $ (in million)
1994-95
11140
355
1995-96
13790
400
1996-97
15540
450
1997-98
18840
455
1998-99
22192
493
1999-00
22185
493
2000-01
22588
500
2001-02
23365
500
2002-03
27457
575
2003-04
28941
616
2004-05
29225
672
Amuls Values
Customer orientation
Commitment to producers
Integrity
Cooperation
Excellence
Leadership
Quality
Innovation
Growth orientation new products
Belongingness
Pride in organization
Employee satisfaction
Amuls Mission
We at GCMMF endeavor to satisfy the taste and nutritional
requirements of the customers of the world, through excellence in
marketing by our committed team.
Journey 2005
GCMMF will be an outstanding marketing organization, with
specialization in marketing of food and dairy products, both fresh
and long life, with customer focus and information technology
integration.
The network would consist of over 100offices, 7500 (4000 urban,
3500 rural) stockists covering at least every headquarter town, serving
nearly 10 lakh outlets with a turnover of Rs. 10,000 crores, and
serving several cooperatives. GCMMF shall also create a market for
its products in neighboring countries.
Integration through IT
Attract and retain quality manpower
Integration of cooperatives with common branding
SWOT ANALYSIS
Strengths:
Its products range is spread over a wide spectrum, from milk and
curd to ice cream and chocolate.
Customers will at least think of using the product once and check
its quality, as it is the product of Amul.
Weaknesses:
Competition: With so many newcomers entering this industry,
competition is becoming tougher day by day. But then competition
Opportunities:
"Failure is never final, and success never ending.
Value addition: There is a phenomenal scope for innovations in
product development, packaging and presentation. Given below
are potential areas of value addition: Steps should be taken to
introduce value added products. This will lead to a greater
presence and flexibility in the market place along with
opportunities in the field of brand building.
THREATS:
There is a very tough competition with other brands.
People who are using other brands for so many years, so it is
difficult for them to suddenly change the brand and taste that
has already been developed.
OBJECTIVE OF RESEARCH
Expansion of the distribution channel of Amul between the
distributor and retailers by selling of deep freezers with the aim to
promote Amul icecream and to give better facilities and services to
the consumers of Faridabad.
RESEARCH DESIGN
DATA SOURCE
Data is generally of two types:
1. Primary data
2. Secondary data
Primary Data are those data specially collected for problem in
hand. In this study data were collected from primary sources in
personal interview of retailers and interaction with consumers by
survey method.
These methods of data collection are quite popular. These are
the major methods of data collection in the research study.
Secondary Data are those data, which are collected for some
purpose other than helping and solving the problem in hand.
Sources of secondary data are:
Old reports
Company records
Magazines
Company web site (http://www.amul.com)
SAMPLING PROCEDURE:
How should the respondents be chosen? To get the most
feasible and accurate result, simple random probability sampling
method was adopted for direct interview of retailers and cluster
sampling was used to communicate the consumers from different
apartments of different sectors for the survey.
In simple random probability sampling, probability of being
chosen as a sample unit for each unit in the population is equal. Each
sample unit from the population is chosen randomly. Probability of
being chosen as a sample unit depends upon the population size and
no. of sample units to be chosen.
While in cluster (area) sampling the population is divided into
mutually exclusive groups (such as city blocks, sectors etc.), and the
SAMPLE SIZE:
Distributors
Retailers
25
Consumers
100
FIELD WORK:
The field work for research was conducted, which involved face
to face interview with distributor and retailers. During the survey,
feedbacks have been taken regarding the Amul icecream from the
consumers.
RESEARCH APPROACH
Primary data can be collected in various ways: through observation,
focused group, surveys, behavioral data, and experiments. During
this research data have been collected using survey method. Survey
method is best suited for descriptive research. Companies undertake
surveys to learn about peoples knowledge, beliefs, preferences, and
RESEARCH INSTRUMENT:
Questionnaire is most common research instrument in collecting
primary data during marketing research. A questionnaire consists of
a set of questions presented to respondents. Because of its flexibility,
the questionnaire is by far the most common instrument used to
collect primary data.
DISTRIBUTION PROCESS
PRODUCT FLOW
Factory
Distributor
Retailers
Consumers
DISTRIBUTION PROCESS
There is a distributor for every icecream , his job is to ensure the
distribution of the product to each and every area and outlet in the
sub city.
This distributor works as a representative of the company for
the retailers. Further this distributor ensures the supply of milk to the
customers with the help of retailers. Sometime distributor delivers
the product directly to the customer.
So there are two main players in the distribution process:
1. Distributor
2. Retailers
TRADE SCHEMES
The company gives schemes to the distributor when the
quantity is large. The sole purpose of scheme is to encourage the
purchase. These schemes may be in the form of discount or in the
form of gifts. Other types of schemes are launched for the retailers to
encourage the purchase of icecream. These schemes may be issued by
the company or by the distributor also. Retailers normally prefer the
reduction in the net rate of the icecream as a scheme. Other is to
introduce free icecream on the purchase of other. The biggest
problem in such type of schemes is that customer demands for the
reduction in the net rate rather than anything else. So the retailer
always prefer the reduction in the net price rather than the scheme or
they prefer the scheme in which icecream is free on other. So that the
net effect of the scheme is the reduction in price
DF COMPARISON
PARTICULARS
Type Of Freezer
AMUL
Imported
M-DAIRY
From Indian Make
CAPACITY
ELEC.
DENMARK
300 LTS, 400 LTS
RS300-400/-PM
300 LTS
RS1200/-PM
CONSUMPTION
TEMP.HOLDING
WHEELS
WEIGHT
12-14HRS.
AVAILABLE
LIGHT
5-8HRS
NOT AVAILABLE
HEAVY
DEALER MARGIN
amul
Landing cost
On MRP
21.3%
17.5%
k-walls
m-diary
20%
16.6%
17.5%
15%
NO. OF
BRAND
RESPONDENTS
amul
30
30
vadilal
Qwality walls
Mother diary
20
34
20
34
creambell
USAGE
NO. OF
Once
Twice
More than twice
RESPONDENTS
34
48
18
34
48
18
NO. OF
BRAND
Vanilla
strawberry
chocolate
Ice candies
Kesar pista
Butter scotch
cassatta
RESPONDENTS
26
6
13
23
4
19
9
26
6
13
23
4
19
9
No. of respondents
35
11
54
%
35
11
54
SOURCE OF PREFERENCE
SOURCE
NO. OF
ADVERTISEMENT
FRIENDS
taste
RESPONDENTS
35
7
30
%
35
7
30
price
qwality
packing
schemes
14
10
1
3
14
10
1
3
SIZE
NO.OF
SMALL
regular
LARGE
RESPONDENTS
49
31
20
49
31
20
(For
No. of respondents=70
PROPORTION OF PEOPLE NEVER TASTED AMUL ICECREAM
Have
respondents No. of respondents
ever tasted amul
icecream
yes
21
no
49
30
70
Probability of
No. of respondents
respondents to use
amul
yes
no
56
14
80
20
MOTHER DIARY
AMUL
VADILAL
KWALITY WALLS
NO.OF
RESPONDENTS
10
9
1
5
%
40
36
4
20
If packing
sales
yes
no
%
28
72
Sales at
At M.R.P
LESS THAN M.R.P
MORE THAN M.R.P
No. of respondents
23
2
0
%
92
8
-
SCOPE OF IMPROVEMENT
Improvement area
Credit period
Collection of payment
replacement
Scope of improvement
12%
24%
64%
No. of respondents
11
3
9
2
%
44
12
36
8
PRICE RANGE
Price range
Rs. 50-100
Rs. 25-50
Rs. 10-25
Upto Rs. 10
No. of respondents
3
5
10
8
%
12
20
40
32
Conclusions
All the ice cream companies give their own freezers and
retailers are not allowed to stock other companies product in it.
Only around 3% of the sample covered had their own deep
freezers and most of them are hotel owners whose sales are not
that high. So for entering the market, supply of deep freezers is
extremely important. The freezers now being provided by
kwality walls are of two types, the first serves a dual purpose of
storage and also a display counter as they come with a
transparent glass top. According to the retailers, these freezers
have added up to their sales as now the customers can actually
see the various icecreams kept inside. Further these icecreams
operate on only 200 watts of electricity, can run on an inverter
too and the ice-cream doesnt melt up to 5-7 hours.
LIMITATIONS
Marketing research suffers from several limitations. A large
number of problems which are caused by financial constraints, lack of
personal contact etc. marketing research only helps managers in
decision making process. It provides data and informations to the
managers but it can not be a substitute for marketing.
Limitations of Survey:
In this industry, it is very difficult to find the exact figures as the
consumption is very low.
There is not a particular trend followed in this industry to
promote sales. Actions are taken according to the situations and
the situation changes very fast in this industry.
Sales price vary from retailer to retailer, as the cost price is
different for different retailers due to schemes given.
The number of shops are very large in number and it is very
difficult to cover all of them.
More no. of respondents would have provided more accurate
results.
b.Twice
c.More than twice
___________________________
___________________________
___________________________
b) Amul
c) Vadilal
d) kwality
e) Others
a) Price
b) Quality
c) Packing
d) Scheme
Q5) Is there any improvement possible with distributor on
the following parameter? (Please tick )
Yes
No
a) Credit period
____
____
b) Collection of payment
____
____
c) Replacement
____
____
d) Any other
____
____
Amul Lite
Low fat, low
Cholesterol Bread
Spread
Delicious Table
Margarine
The Delicious way to
eat healthy
Powder Milk
Amul Spray Infant
Milk Food
Still, Mother's Milk is
Best for your baby
Sagar Skimmed
Milk Powder
Which is especially
useful for diet
preparations or for
use by people on low
calorie and high
protein diet.
Amulya Dairy
Whitener
The Richest, Purest
Dairy Whitener
Fresh Milk
Amul Fresh Milk
This is the most
hygienic milk
available in the
market. Pasteurised
in state-of-the-art
processing plants
and pouch-packed
for convenience.
Amul Kool
Chocolate Milk
Amul Kool
Flavoured Bottled
Milk
Amul Kool
Flavoured Tetra Pack
Cheese
Amul Pasteurised
Processed Cheese
100% Vegetarian
Cheese made from
microbial rennet
Amul Cheese
Spreads
Tasty Cheese Spreads
in 3 great flavours..
Cooking Butter
For Cooking
Utterly Delicious
Pizza
Amul Shrikhand
A delicious treat,
anytime.
Amul Mithaee
Gulab Jamuns
Pure Khoya Gulab
Jamums...best served
piping hot.
Amul Chocolates
The perfect gift for
someone you love.
Amul Lassee
Desserts
Amul Basundi