A

Project Study Report

On
Training Undertaken at

Titled
MARKET SURVEY AND DISTRIBUTION STRATEGY
Submitted in partial fulfillment for the
Award of degree of
Bachelor of Business Administration
To the university of Rajasthan

Faculty Guided:

Submitted by:
Mohammad Irsad

Ms.Adity kaushik

BBA 3rd Year

APEX INSTITUTE OF MANAGE MENT & SCIENCE, JAIPUR

(Approved by AICTE, New Delhi & Affiliated to University of Rajasthan, Jaipur)

(2011-2012)

PREFACE
Summer Internship Programmed is a part of BBA Programmed, which is very helpful in getting
practical knowledge in this globalization world. Now-a-days only theoretical knowledge is not
enough to success in life but most important we must have practical knowledge. With the help
of this training, I came to know how to apply theoretical knowledge in practice.

Main purpose of this training is to have awareness about industrial environment and to know
about function of different functions of an organization like Human resource, Finance.
Production and Marketing.

I got an opportunity to undergo Summer Internship Programmed as a part of BBA

Programmed. I consider myself privileged that I got a chance to work with reputed company
and can upgrade my knowledge related to practical aspect of business world which is very
helpful in my career building.

ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Mr. Varun Kumar, for guiding me right from
the inception till the successful completion of the project. I sincerely acknowledge him/her/them
for extending their valuable guidance, support for literature, critical reviews of project and the
report and above all the moral support he/she/they had provided to me with all stages of this
project.
I would also like to thank the supporting faculty Mrs. Mahima Rai, for their help and
cooperation throughout our project.
Mohammad Irsad
BBA 3rd Year

EXECUTIVE SUMMARY
This report through light on the overall picture of Success Story and Brand Building Process of
Amul.
Over the course of Operation Flood, milk has been transformed from a commodity into a
brand, from insufficient production to self sufficient production, from rationing to plentiful
availability, from loose, unhygienic milk to milk that is pure and sure, from subjugation to a
symbol of farmers economic independence, to being the consumers greatest insurance policy
for good health.
For more than two decades since its launch in 1945, Amul had been a just a cooperative brand
selling dairy products like milk and butter that were commodities and low involvement in
nature. The Sylvester Da Cunha creation changed a lot of that. First, Amul Girl used the
Esperantist language of humour to tickle consumers into viewing butter as a more interesting
product and build top of the mind recall for her brand. Second, she helped highlight the Amul
butters differentiator its delightful taste. Third, through her relevant and topical witticisms,
she helped build the Amul brand over a period with consistency. Fourth, she endeared herself
to the customer, the housewife. Fifth, symbolically, through her innocence she conveyed
Amuls purity. Her mischievous intentions reminded one of someone mythological Bal Gopal,
Lord Krishnas childhood incarnation and Indias most legendary and skilful butter-thief.
Amul is Brand Name, and a very popular household name. But it is something more than that.
All brand names are not based on the success story of the product. Some brand names are
created to sell the product. But AMUL id the success story of the cooperative effort of hundreds
of individual milkmen/milkmaids whose efforts are energized and coordinated by the Anand
dairy.

TABLE OF CONTENTS
S. NO.

Descriptions

Page no.

1.

Introduction to the industry

06-15

2.

Introduction to the Organization

16-41

3.

Research Methodology

42-46

1. Title of the Study

2. Duration of the Project
3. Objective of the Study
4. Types of Research
5. Collection Method and Sample Size
6. Scope of Study
4.

7. Limitation of Study
Facts and Findings

47-48

5.

Data Analysis and Interpretation

49-59

6.

SWOT Analysis

60

7.

Conclusion

61

8.

Recommendation and Suggestion

62

9.

Appendix

10.

BIBLIOGRAPHY

63-64
65

INTRODUCTION TO THE INDUSTRY

I did my project in Jaipur Co-Operative Milk Marketing Federation Limited on Market
survey and Distribution strategy in target market in Pune. During my summer project,
I got an opportunity to apply my marketing skills and theoretical knowledge that I had learnt
in my marketing studies with the information and suggestion provided by the company
guidance, which was a great learning experience for me and that will definitely help me in
developing qualities required for a manager. In todays competitive market every
organization has to take initiative to keep its product demand in market and also to update
its product according to customer demand. For the fulfillment of customers demand,
retailer plays a major role. I did my research work on distribution strategy adopted in target
market. My objective was to study awareness level of Retailers, availability of Amul
products in retail outlets and Retailers problems in regards to Amul. Indian FMCG is one of
the most emerging markets in the global scenario because India has second largest
population of the world and their food pattern increasing day by day. Jaipur co-operative
milk and marketing federation is well known fast moving consumer goods company in India.
It operates all over India through a nationwide network of distributor and retailer outlets.

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.

Education: academic, vocational, consultancy

Research and development: food technology

Financial services: insurance, credit

Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural

construction, etc.

Agriculture: raising of crops and livestock, seafood

Food processing: preparation of fresh products for market, manufacture of prepared

food products

Marketing: promotion of generic products (e.g. milk board), new products, public
opinion, through advertising, packaging, public relations, etc

Wholesale and distribution: warehousing, transportation, logistics

Retail: 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 world
India has diverse agro-climatic conditions and has a large and diverse raw material
base suitable for food processing companies Investment requirement of around US$ 15
billion exists in the food processing sector
India is looking for investment in infrastructure, packaging and marketing
India has huge scientific and research talent pool
A largely untapped domestic market of 1000 million consumers
300 million upper and middle class consume processed food.
200 million more consumers expected to shift to processed food by 2010.
Well developed infrastructure and distribution network.
Rapid urbanization, increased literacy, changing life style, increased number of women
in workforce, rising per capita income- leading to rapid growth and new opportunities in
food and beverages sector.
50 per cent of household expenditure by Indians is on food items.
Strategic geographic location (proximity of India to markets in Europe and Far East,
South East and West Asia).

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 selfsustaining 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.
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 Limited
Parle Products Pvt. Ltd.
Agro Tech Foods
Amul
Perfetti India Ltd.
Cadbury India Ltd.
PepsiCo India Holdings
Nestle India Pvt. Ltd.
Britannia Industries Ltd.

The first dairy cooperative in Gujarat was the result of a farmers' meeting in Samarkha village
(Kaira district, Gujarat) on 4th January 1946, called by Morarji Desai on the advice of Sardar
Vallabhbhai Patel, to fight rapacious milk contractors. It was Sardar's vision to organize
farmers, to have them gain control over production, procurement and marketing by entrusting
the task of managing these to qualified professionals, thereby eliminating the middle men.

10

Sardar Vallabhbhai Patel assigned Tribhuvandas Patel the task of "making the Kaira farmers
happy and organize them into a cooperative unit". The infant cooperative dairy, Kaira District
Cooperative Milk Producers' Union Limited (KDCMPUL), -- now famous as AMUL -- was
fighting a battle with the Polson Dairy which was privately owned. V. Kurien began working with
these farmers in 1949, after returning to India from Michigan State University, where he earned
a Master of Science of Mechanical Engineering (with distinction).
When Kurien came back to India; he was posted as a Dairy Engineer at the government
creamery, Anand, in May 1949. Young Kurien, fed up with being at the government creamery
which held no challenge, volunteered to help Shri Tribhuvandas Patel, the Chairman of
KDCMPUL, to set up a processing plant.
At that time, only two village milk cooperatives were involved, representing only a handful of
farmers. The Kaira Union began with a clear goal, to ensure that its producer members
received the highest possible share of the consumers' rupee. This goal itself defined their
direction. The focus was on production by the masses, not mass production. By the early
1960s, the modest experiment in Kaira had not only become a success, people began to
recognize it as such.

As
earlier above the decision was taken in January 1946: Milk producers cooperatives in villages,
federated into a district union, and should alone handle the sale of milk from Kaira to the
government-run Bombay Milk Scheme. This was the origin of the Anand pattern of

11

cooperatives. The colonial government refused to deal with the cooperative. The farmers
called a milk strike. After fifteen days the government capitulated. This was the beginning of
Kaira District Cooperative Milk Producers Union Ltd., Anand.

The Anand pattern of Dairy Co-Operative includes the Dairy Co-Operative societies at village
level and a processing unit called Union at district level, as shown in Fig.1. Inspired by this
pattern, similar milk unions were started in other districts too. To market the products of the
milk unions, GCMMF was formed in 1973. GCMMF is the sole marketer for all the range of
Amul products. Originally they were only milk powder and butter. Later it is expanded
drastically to cover products such as ice creams, pizza, ghee, cheese, shrikhand, paneer
and so on. The new structure of GCMMF is shown in Fig.2

12

Two leading figures of the Indian dairy industry Tribhuvandas Patel and Dr. V.Kurein made
Co-Operative movement to succeed. The only reason for the success of GCMMF as Dr. V.
Kurein stated: Determination, Dedication, and Discipline are forming the driving forces of the
Amul

Three Phases of development

The scheme sought to establish milk producers' cooperatives in the villages and make modern
technology available to them. The broad objectives are to increase milk production ("a flood of
milk"), augment rural incomes and transfer to milk producers the profits of milk marketing
which are hitherto enjoyed by well-to-do-middlemen.

13

Phase I of Operation Flood was financed by the sale within India of skimmed milk powder and
butter oil gifted by the EC countries via the World Food Program. As founder-chairman of the
National Dairy Development Board (NDDB) of India, Dr Kurien finalized the plans and
negotiated the details of EEC assistance. He looked after the administration of the scheme as
founder-chairman of the erstwhile Indian Dairy Corporation, the project authority for Operation
Flood. During its first phase, the project aimed at

linking India's 18 best milksheds with the milk markets of the four metropolitan cities of Delhi,
Mumbai, Calcutta and Madras.
Phase II of the project, implemented during 1981-85 raised this to some 136 milksheds linked
to over 290 urban markets. The seed capital raised from the sale of WFP/EEC gift products
and World Bank loan had created, by end 1985, a self-sustaining system of 43,000 village
cooperatives covering 4.25 million milk producers. Milk powder production went up from
22,000 tonnes in the pre project year to 1, 40,000 tonnes in 1989, thanks to dairies set up
under Operation Flood. The EEC gifts thus helped to promote self-reliance. Direct marketing of
milk by producers' cooperatives resulting in the transfer of profits from milk contracts
--increased by several million liters per day.
Phase III of Operation Flood (1985-1996) enabled dairy cooperatives to rapidly build up the
basic infrastructure required to procure and market more and more milk daily. Facilities were
created by the cooperatives to provide better veterinary first-aid health care services to their
producer members.

14

Salient Features of Operation Flood and Achievements 1970-96

INTRODUCTION TO THE ORGANIZATION

Name: -

KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS

UNION LIMITED, ANAND Known as AMUL (Anand
Milk Union Ltd)

15

Form: -

Co-operative sector registered under the Co-operative

Society Act

Location: -

Amul dairy, Station road, Amul Dairy road, AnandJaipur India.

14th December 1946

Registration:

Registered Office: - Kaira District Co-operative Milk Producers Union

Limited Anand-388001
Major Plants $ Chilling Centres:

Dairy Plant,Anand

Mogar Complex,Mogar

Kheda Satellite Dairy,Khtaraj

Cattle feed factory,Kanjari

Camby satellite Dairy,Undei

Chilling Centre, Balasinor

Kapadwanj Chilling Centre,Kapadwanj

Amul Satellite dairy,Pune

Kolkata Unit, Kolkata

Between 1946 and 1952, AMUL's policy was directed towards obtaining monopoly rights for
the sale of milk to the Bombay milk scheme. In 1952, it succeeded in achieving its purpose
after the Government of Bombay cancelled the contract with Polsons and handed over the
entire business of supplying milk from the Kaira district to AMUL. However, as the Bombay milk
scheme was committed to purchasing all the milk produced by the Aarey Milk Colony in
Bombay, it would not take AMUL's milk during the peak winter months. The disposal of this

16

surplus milk posed difficulties for AMUL, forcing it to cut down on purchases from its member
societies, which affected members' confidence. The answer was the production of milk
products: in 1955, a new dairy plant was set up at Anand to produce butter, ghee and milk
powder.
A second dairy was built in 1965, and a product manufacturing unit was established in 1971 to
cope with increasing milk procurement. In 1993, a fully automatic modern dairy was
constructed adjacent to the original AMUL dairy plant at Anand.
As district union multipled, Kaira cooperative recognized the benefits of a marketing federation
and thus the Gujarat Cooperative Milk Marketing Federation (GCMMF) was established in
1973. GCMMF commenced marketing on April 1, 1974 under the single brand name of Amul.
In 1978-79 it registered a turnover of Rs.100 Crore which grew to Rs.539.67 Crore in 1987-89.
In 2002-03 the turnover stood at Rs. 2745.70 Crore. At present 2.28 million producer member
with a total milk collection in 2002-03 being 1.86 Billion Liters. The success rate has been to
the extent that GCMMF has now become Indias largest food products marketing organization.

17

Reasons for Success

The start of a Revolution:

The revolution started as awareness among the farmers that grew and matured into a protest
movement and the determination to liberate them. Over four decades ago, the life of a
farmer in Kaira District was very much like that of his counterpart anywhere else in India.
His income was derived almost entirely from seasonal crops. The income from milch
buffaloes was undependable. The marketing and distribution system for the milk was
controlled by private traders and middlemen. As milk is perishable, farmers were
compelled to sell it for whatever they were offered. Often, they had to sell cream and
ghee at throwaway prices. In this situation, the one who gained was the private trader.
Gradually, the realization dawned on the farmers that the exploitation by the trader could
be checked only if marketed their milk themselves. In order to do that they needed to
form some sort of an organization. This realization is what led to the establishment of the
Kaira District Cooperative Milk Producers' Union Limited (popularly known as Amul)
which was formally registered on December 14, 1946.

Peoples power:
The system succeeded mainly because it provides an assured market at remunerative prices
for producers' milk besides acting as a channel to market the production enhancement
package. What's more, it does not disturb the agro-system of the farmers. It also enables
the consumer an access to high quality milk and milk products. Contrary to the traditional
system, when the profit of the business was cornered by the middlemen, the system
ensured that the profit goes to the participants for their socio-economic upliftment and
common good.

18

Looking back on the path traversed by Amul, the following features make it a pattern and
model for emulation elsewhere. Amul has been able to:

Produce an appropriate blend of the policy makers farmers board of management and
the professionals: each group appreciating its roles and limitations

Bring at the command of the rural milk producers the best of the technology and
harness its fruit for betterment

Provide a support system to the milk producers without disturbing their agro-economic
systems

Plough back the profits, by prudent use of men, material and machines, in the rural
sector for the

common good and betterment of the member producers and

Even though, growing with time and on scale, it has remained with the smallest
producer members. In that sense, Amul is an example par excellence, of an intervention
for rural change.

Total Quality management:

According to Mr. B M Vyas, Managing Director GCMMF: Were in between the two extremes
the customer and the farmer. Both expect the maximum intake. In one way, the customer
wants to have the best product available at the lower price. On the other, farmer expects the
maximum amount for his milk. To sustain in the business we have to make sure that we give
them what they want. As all these require a tight integration in the supply and value chain
activities, GCMMF is able to excel it by educating the farmer and providing him the necessary
guidance on one end and on the other end
Approaching the consumer with the best product and understanding the Indian consumer
better. The information technology and total quality management came together to help the
GCMMF to gain control on the procurement, processing and distribution functio

19

I.T. Initiative:
According to Mr. B M Vyas, Managing Director GCMMF, Information Technology is our thrust
area from our inception that is because we are marketing the perishable goods. There is every
chance that we may collapse in between if we dont understand the market realities and the
village farmers. There should be a 24x7 hrs information flow in between us and the remaining
nodes of our supply chain. The need for coordinating a highly distributed system was clearly
understood. Close coordination has been the main feature of the value chain.

The GCMMF Value Chain

20

Enterprise Wide Systems: EIAS and GIS

GCMMF has connected its Zonal Offices, Guwahati Regional Office as well as Member
Dairies, Milk Unions and its own Unit-Mother Dairy through VSAT for seamless exchange of
Online information. All Sales Offices, C&F points & Wholesale distributors of GCMMF have
been connected through TCP/IP Internet Mail Account for exchange of information.
In addition to the above, GCMMF is using Geographical Information System (GIS) at its Head
Office and key Marketing Offices. Using the All India Map in GIS. They are in position to plot
zone/depot boundary as well as pointer for zone, depot & distributor locations, which are
superimposed by product-wise sales data. The same is being used for sales & distribution
planning and review. Moreover, GIS is being used for business planning activity at milk centres
and it covers animal census data. This has helped them to know average milk production and
productivity of cows and buffaloes in Gujarat and track the animals and trend analysis etc. The
EIAS customized ERP packages of GCMMF is designed in such a way that is can be plugged
into various points of supply chain,

Managing Complex Supply Chains:

Here I am going to describe the breakthrough vision that led to the simultaneous development
of the market and supply side through a process of social development and education at
AMUL.
Here I tried my level best to provide some insights into management of very large supply
chains by adapting and integrating a variety of strategies and techniques. This includes
building networks, developing trust & values in the network, developing fair mechanisms for
sharing benefits across the supply chain, coordination for operational effectiveness, innovation
and new technology for gaining competitiveness.

21

AMULs Journey towards Excellence:

AMULs journey towards excellence is marked by some critical understanding of the business
environment in large emerging economies like India where markets have to be developed by
combining efficiency related initiatives with increasing the base of marginal suppliers and
consumers. The essence of AMULs efforts was as follows:
It combined market and social development in an emerging economy. It recognized the
interlinkages between various environments that governed the lives of marginal milk
farmers and the unmet needs of consumers. It also changed the supply chain paradigm
in order to reduce the cost to the consumer while increasing the return to the supplier.
It also realized that its goal could only be achieved in the long run and this required
developing values in people and processes that were robust, replicable and transparent.
It also realized that the cooperative would not be independent and viable in the face of
competition if it were not financially sound. This implied that AMUL had to develop
distinct capabilities that would deliver competitive advantage to its operations.

22

Characteristics of AMULs Approach to Excellence

Managerial

Elements

Implementation Mechanisms

Dimensions
Leadership

Charisma, long term vision, commitment, Constantly raising the bar,

trustworthy, selfless gain, strong

promoting a can-do attitude,

managerial style (bordering on

communication of the vision

stubbornness), technocrat, pan-Indian

to

vision/nationalism, persuasion

farmers, consumers and the

government

Strategy

Farmer Orientation, technology, cost

R&D focus, efficient supply

leadership, product variety in later years

chain, simultaneous
development of suppliers &
markets, financing projects

Organization

Network of cooperatives, National Dairy

from internal accruals

Democratic governance of

Development Board, nature of

cooperatives, unique

professional managers

composition and role of

board
members of cooperatives,
proactive role of the village

Marketing

Gujarat Cooperative Milk Marketing

societies division at AMUL

Product mix, pricing, dealer

Federation

network, managing supply

and
demand growth,
advertisement

Leadership:

23

While Kaira Union (or AMUL) had the support of national leaders who were at the forefront of
the Indian independence movement, its local leaders were trained in Gandhian simplicity17
and had their feet rooted firmly amongst people whom they had mobilized the poor farmers
of Anand. The foremost amongst them was Tribhuvandas Patel18 who had led the movement
for the formation of cooperatives of small and marginal farmers in order to compete against
investor owned enterprises on one hand, and keep bureaucracy away on the other hand.
Tribhuvandas was the first Chairman of the cooperative. His skills lay in organizing the village
producers, in making them believe in the power of cooperation and their rights towards
improvement of human condition. He is remembered as fair and honest person whose highest
sense of accountability to the members of the union laid the foundation of trust between
network members19. Another important aspect of his remarkable management style was his
gentleness and ability to repose trust in people he gave complete autonomy to managers of
the union and earned complete commitment from them20. Verghese Kurien21 was one such
manager who would, first, shape the destiny of the Union and then the milk movement
throughout the country.
Kurien emerged as the father of the dairy movement in India. He managed to keep the
government and bureaucrats away from the cooperative22 and gave shape to the modern
structure of the cooperative, worked tirelessly to establish the values of modern economics,
technology and concern for farmers within the cooperative. He interfaced with global financing
agencies to build new projects at AMUL. He worked with the Unions to bring the best of
technology to the plants. He worked with marginal village farmers to create systems that would
increase milk yields. He understood that without meeting the needs of customers he would not
be able to satisfy his obligations to the farmers. In short, Kurien shaped the destiny of the milk
movement in India through NDDB (as its Chairman) and particularly at GCMMF and
cooperatives in Gujarat. Several young people left better paying jobs to help create a dream of
making India the milk capital of the world. Kurien had learnt the persuasive charm of
Tribhuvandas through plain speaking and had soon created a cadre of highly capable
manager.

24

urien had transformed AMUL from a dream into a major industrial entity a network of
plants, cooperative societies, research centers, an institute for training future managers in

rural management, secondary services like veterinary/artificial insemination expertise/feed

factory etc. Kuriens biggest strength lay in his ability to convince people that the cause of rural
farmers was important thus establishing an important shared value. Subsequently, he could
convince the government to replicate the AMUL model in almost all states of the country.

Strategy:
AMULs business strategy is driven by its twin objectives of (i) long-term, sustainable growth to
its member farmers, and (ii) value proposition to a large customer base by providing milk and
other dairy products a low price. Its strategy, which evolved over time, comprises of elements
described below.
Simultaneous Development of Suppliers and Customers:
From the very early stages of the formation of AMUL, the cooperative realized that sustained
growth for the long-term was contingent on matching supply and demand. Further, given the
primitive state of the market and the suppliers of milk, their development in a synchronous
manner was critical for the continued.
growth of the industry. The organization also recognized that in view of the poor infrastructure
in India, such development could not be left to market forces and proactive interventions were
required. Accordingly, AMUL and GCMMF adopted a number of strategies to assure such
growth. For example, at the time AMUL was formed, the vast majority of consumers had limited
purchasing power and was value conscious with very low levels of consumption of milk and
other dairy products. Thus, AMUL adopted a low price strategy to make their products
affordable and guarantee value to the consumer. The success of this strategy is well
recognized and remains the main plank of AMUL's strategy even today this philosophy.
Beginning with liquid milk, the product mix was enhanced slowly by progressive addition of
higher value products while maintaining desired growth in existing products.

25

 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 organization, Jaipur Cooperative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by
some 2.6 million milk producers in Jaipur, India. It is based in Anand town of Jaipur 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:
Jaipur Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organization. It is a state level apex body of milk cooperatives in Jaipur 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, Shrikhand, Paneer, Gulab Jamuns, Burundi, 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.

26

Jaipur Cooperative Milk Marketing Federation GCMMF:

An Overview
Jaipur Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organization. It is a state level apex body of milk cooperatives in Jaipur 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:

13

district

cooperative

producers' Union
No. of Producer Members:
2.7 million
No. of Village Societies:
13,141
Total Milk handling capacity:
10.21 million liters per day
Milk collection (Total - 2007-08):
2.69 billion liters
Milk collection (Daily Average 2007-08): 7.4 million liters
Milk Drying Capacity:
626 Mts. per day
Cattle feed manufacturing Capacity:
3090 Mts per day

HISTORY

27

milk

 Amul was formally registered on December 14, 1946. The brand name Amul, sourced
from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control
expert in Anand and it was chosen because it was a perfect acronym for Anand Milk
Union Limited?
The Amul revolution was started as awareness among the farmers. It grew and matured
into a protest movement that was channeled towards economic prosperity
Over five decades ago, the life of an average farmer in Kheda District was very much
likes that of his/her counterpart anywhere else in India. His/her income was derived
almost entirely from seasonal crops. The income from milk buffaloes was
undependable. Milk producers had to travel long distances to deliver milk to the only
dairy, the Polson Dairy in Anand often milk went sour, especially in the summer
season, as producers had to physically carry milk in individual containers.
Private traders and middle men controlled the marketing and distribution system for the
milk. These middlemen decided the prices and the off-take from the farmers by the
season. As milk is perishable, farmers were compelled to sell it for whatever they were
offered. Often, they had to sell cream and ghee at throw-away prices. In this situation,
the private trader made a killing.
Moreover, the government at that time had given monopoly rights to Polson Dairy, which
was run by a person of Parsi descent, (around that time Polson was the most well
known butter brand in the country) to collect milk from Anand and supply to Mumbai city
in turn (about 400 kilometers away).

28

 Another problem farmers faced was that in winter the milk output of buffaloes doubled

which caused prices to fall down even further. India ranked nowhere amongst milk
producing countries in the world in 1946.

29

MISSION & VISION OF AMUL

MISSION OF AMUL
The main mission of Amul is to help farmers. Farmers were the foundation stone of Amul
Company. The system works only for farmers and for consumers, not for profit. The main aim
of Amul is to provide quality products to the consumer at minimum cost. The goal of Amul is to
provide maximum profit in terms of money to the farmers.

VISION OF AMUL
Vision of Amul is to provide and vanish the problems of farmers (milk producers) of their
livelihood. The Amuls apparition was to run the organization with the co-operation of four main
parties like the farmers, the representatives, the marketers and the customer.

30

ACHIVEMENTS
INTERNATIONAL CIO 100 AWARDS FOR RESOURCEFULNESS
GCMMF is a winner of the prestigious international CIO 100 award from IDG's CIO
Magazine, USA. The 2003 CIO 100 award recognizes the organizations around the
world that excel in positive business performance through resourceful IT management
and best practices.
This CIO International IT excellence Award has recognized the Cooperative Movement
& its Leadership under the "Amul" brand, initiated by Dr. V Kurien, Milkman of India,
whos main Motto is to build Indian Society economically & literally strong through
innovative cooperative resourceful network, so as to provide quality service & products
to the end consumers and good returns to the farmer members.
This award has also given direction that IT need to be encouraged & adopted more &
more at grass root level and bridge the digital divide through proper training, re-training
so as to bring radical change & benefit to the Indian society
It has also recognized the Managing Director, Mr. B M Vyas, who has taken IT initiative
by setting the direction "GCMMF as IT Company in Food business". It has also
inspired all the employees of GCMMF Enterprise to sustain the challenges as a
"Change Agent" by excelling their IT skills in order to transform the people around them
towards IT Integration (e-Vision) on both the ends of supply chain (Village level Farmer
to end consumer). This award also motivated the each & every member dairy, Amul's
wholesale distributors, retailers, transporters and suppliers who have supported wholeheartedly the IT initiatives of GCMMF.

The Jaipur Co-operative Milk Marketing Federation (GCMMF) has been honored at the
CIO 100 Symposium & Award Ceremony on August 19, 2003, at the Broad moor in

31

Colorado Springs, Colorado, USA. Shri Subbarao Hegde, Head of IT had been to USA
and received the said Award on behalf of GCMMF.

AMUL COMPETITORS
Amul have strong competitors in market like Britannia, Nestle, Pizza Hut, Nirulas, Hul and
Cadbury in various sectors which are represented below in form of diagram:-

THEOROTICAL BACKGROUND

32

 Marketing consists of the "4Ps:" product, place, promotion and price. Product refers to
what is being sold, promotion to how it is touted in the market, and price to the strategy
used to generate revenue. Place is the method of distribution that the company selects
to move its product to the market. This consideration, distribution, can be critical to a
company's success since choosing the wrong distribution system can mean that the
company's product is not available to the consumers when they need it. Lost sales
result, and companies can suffer serious consequences due to poor distribution. This
research considers the overall issue of distribution and factors that companies need to
take into account when developing a distribution strategy.
Few manufacturers sell their goods directly to end users; one of the primary exceptions
to this is farmers who sell to consumers. However, most manufacturers sell their goods
to wholesalers, who sell to distributors, who sell to retail stores, who sell to consumers.
Sometimes the distributor is eliminated, or the wholesaler and distributor are the same.
In some instances, such as with retailers who are as large as Wal-Mart, the
manufacturers do market directly to the retailer.
This system, while it sounds cumbersome when described, can actually prove quite
efficient. Manufacturers typically produce large quantities of goods. These are divided
into smaller shipments (but still containing large numbers here is no excess inventory
carrying costs. However, this is not an effective method for retailers because they
cannot determine demand with the accuracy of a foreman on a production line.
Recommendations Companies who are evaluating their distribution system need to take
into account the end user and the best way to reach that user. Industrial users are not
reached effectively through retailers, and consumers are not reached through industrial
supply houses. Some industries do not lend themselves well to wholesalers and
distributors, and manufacturers serving only a local market may be able to more
efficiently serve as wholesaler to their clients. Building a close relationship with
customers and suppliers is important so that manufacturers and distributors have a
clear idea of the factors behind increases (or decreases) in demand. This can help

33

prevent surpluses and shortages and ensure that all of the participants in the
distribution channel receive the maximum benefit from the system.

Distribution Strategies Importance

For product-focused companies, establishing the most appropriate distribution
strategies is a major key to success, defined as maximizing sales and profits.
Unfortunately, many of these companies often fail to establish or maintain the most
effective distribution strategies. Problems that we have identified include:

Unwillingness to establish different distribution channels for different products

Fear of utilizing multiple channels, especially including direct or semi-direct sales, due to
concerns about erosion of distributor loyalty or inter-channel cannibalization

Failure to periodically re-visit and update distribution strategies

Lack of creativity and resistance to change

To be fair, there can be sound reasons for these perceived weaknesses. More typically,
however, they are due to failings such as simple inertia, lack of understanding of the
ultimate customers and their preferences, or a failure to acknowledge the importance of
a distribution strategy

Distribution system
Distribution system has two divisions, namely
Physical Distribution
Channels of distribution
The channel members such as mercantile agents, wholesalers and retailers are
middlemen in distribution and they perform all marketing functions .Such middlemen
facilitate the process of exchange and create time, place and position utilities through
matching and sorting process. Sorting enables meeting the supply with consumer
demand.

34

Physical distribution

Physical distribution looks after physical handling of goods and assures maximum
customers service .It aims at offering delivery of right goods at right time at right place to
the customers physical distribution activities cover at right placed to the customers
Physical distribution cover-

Order processing

Handling of goods

Packaging

Warehousing

Transportation

Inventory control

Customer service

All middlemen in distribution perform these functions and they assure placing the product
within an arms length of customers desire and demand.

Channels of distribution
A channel of distribution is an organized network or a system of agencies network or a system
of agencies and institutions, which in combination perfume all the activities required to link
producer with users and users with producers to accomplish the marketing task.
According to Phillip kotler-Marketing channels is an independent organization involved in the
process of making a product or service available for use or consumption.

35

Thus, a channel of distribution is a pathway directing is a pathway directing the flow of goods
and services from producers to consumers composed of inter mediaries through their functions
and attainment of mutual objectives.

These intermediaries are as follows:

Manufacturer-Consumer

In this channel Manufacture sells directly to ultimate consumer. The major ways are
door to door, home parties, mail order, telemarketing, television selling and
manufacturer owned stores.

Manufacturer Retailer Consumer

This channel has one intermediary namely retailer. The most common channel for
consumer durables such as textiles, shoes, readymade garments and so on.

Manufacturer-Wholesaler-Consumer

This channel bypasses the last name retailer, when there are large and institutional
buyers. Example-industrial buyers, Government, consumer co-operatives, Hospitals,
educational institutions, business houses.

Manufacturer-Agent-Wholesaler-Retailer-Consumer

36

 This is a longest channel of distribution, where the producer uses the services of agent
middlemen such as sales agent for the initial dispersion of goods. The agent in turn may
distribute to wholesalers, who in turn sells to retailers and thus reaches consumers.

Functions of the distribution channels in brief:

Buying and assembling of goods.

Providing warehouse facility.

Providing transportation of goods from products to their warehouse.

Financing

Risk bearing, Grading, packing, and packaging

Dispatching and selling the goods.

Advertising

Providing market information

Informing about consumer preferences.

Factors affecting distribution strategy

Market factors:
An important market factor is "buyer behavior"; how do buyers want to purchase the
product? Do they prefer to buy from retailers, locally, via mail order or perhaps over the
Internet? Another important factor is buyer needs for product information, installation
and servicing. Which channels are best served to provide the customer with the
information they need before buying? Does the product need specific technical
assistance either to install or service a product? Intermediaries are often best placed to

37

provide servicing rather than the original producer - for example in the case of motor
cars.
The willingness of channel intermediaries to market product is also a factor. Retailers in
particular invest heavily in properties, shop fitting etc. They may decide not to support a
particular product if it requires too much investment (e.g. training, display equipment,
warehousing).
Another important factor is intermediary cost. Intermediaries typically charge a "markup" or "commission" for participating in the channel. This might be deemed
unacceptably high for the ultimate producer business.

Producer factors
A key question is whether the producer has the resources to perform the functions of
the channel? For example a producer may not have the resources to recruit, train and
equip a sales team. If so, the only option may be to use agents and/or other distributors.
Producers may also feel that they do not possess the customer-based skills to distribute
their products. Many channel intermediaries focus heavily on the customer interface as
a way of creating competitive advantage and cementing the relationship with their
supplying producers.
Another factor is the extent to which producers want to maintain control over how, to
whom and at what price a product is sold. If a manufacturer sells via a retailer, they
effective lose control over the final consumer price, since the retailer sets the price and
any relevant discounts or promotional offers. Similarly, there is no guarantee for a
producer that their product/(s) are actually been stocked by the retailer. Direct
distribution gives a producer much more control over these issues.

Product factors:
Large complex products are often supplied direct to customers (e.g. complex medical
equipment sold to hospitals). By contrast perishable products (such as frozen food,

38

meat, bread) require relatively short distribution channels - ideally suited to using
intermediaries such as retailers.

Distribution Intensity
There are three broad options - intensive, selective and exclusive distribution:
Intensive distribution aims to provide saturation coverage of the market by using all
available outlets. For many products, total sales are directly linked to the number of
outlets used (e.g. cigarettes, beer). Intensive distribution is usually required where
customers have a range of acceptable brands to choose from. In other words, if one
brand is not available, a customer will simply choose another.
Selective distribution involves a producer using a limited number of outlets in a
geographical area to sell products. An advantage of this approach is that the producer
can choose the most appropriate or best-performing outlets and focus effort (e.g.
training) on them. Selective distribution works best when consumers are prepared to
"shop around" - in other words - they have a preference for a particular brand or price
and will search out the outlets that supply.
Exclusive distribution is an extreme form of selective distribution in which only one wholesaler,
retailer or distributor is used in a specific geographical area.

39

Amul catering need of every sections of society

CUSTOMER BASED MARKET SEGMENTATION

Kids:-

Amul cool chocolate milk

Nutramul energy drink
Amul kool milk shake

Women: -

Youth: -

Amul calci

Utterly Delicious Pizza

Amul Emmental cheese
Amul cheese spreadsv

Caloric Conscious:-

Amul lite
Sagar skimmed milk paste
Amul lite slim trim milk

40

 Health Conscious:-

Nutramal
Amul Shakti
Health food drink

INDUSTRY BASED MARKET SEGMENTATION

MILK:

Ice cream manufactures

Restaurant/Food chains

Coffee shop chains

Temples

Butter/cheese/ghee:

Bakery Confectionaries

Pizza Retailers

REASONS FOR SUCCESS

Robust Supply chain

Vast and complex hierarchical network.

Co-operation stretches from small suppliers

to large fragmented markets

41

 Low cost strategy

Affordable and attractive to consumer

Guaranteeing them value for money

Diverse Product Mix

Amul Butter

Milk Powder

Ghee

Amulspray

Cheese

Chocolates

RESEARCH METODOLOGY
Marketing research plays an important role in the process of marketing. It helps the firm to
acquire a better understanding of the consumers, the competition and the marketing
environment.

3.1 TITLE OF THE STUDY

MARKET SURVEY AND DISTRIBUTION STRATEGY

3.2 DURATION OF PROJECT

Duration is about 45 days which is from 15th May to 30th June 2011

3.3 OBJECTIVE

42

 This project was done by me in AMUL company was out with broad objective like
understanding the real market scenario, awareness level of retailers, problems of
retailers and distribution strategy in target market.
According to needs of the Company I have decided my objectives:-

Primary objectives
1. To know the awareness level of the Amul products among Retailers.
2. To know about the availability of the Amul products in local Retail Outlet
3. To know the Retailers problems in regards to AMUL products as well as distribution
process.

Secondary objectives
1. To understand Retailer buying Behaviors.
2. To know the competitors availability in the market

3.4 TYPES OF RESEARCH

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

43

The secondary sources were used only for collecting information regarding the sample, they
were however not used for analysis.
Experimental Method :This method involves carryingout a small scale trial solution to a problem, while at the same
time,attempting to control all factors relevant to the problem. The main assumption
here is that the test conditions are essentially the same.
The Panel Research :In this technique the same groupo f r e s p o n d e n t s i s c o n t a c t e d f o r m o r e t h e n o n e
o c c a s i o n ; a n d t h e information obtained to find out if there has been any in their
tastedemand or they want any special quality, color, size, packing in the product not
used for analysis.

3.5 DATA COLLECTION AND SAMPLE SIZE

Market research requires two types of data, i.e., primary data and secondary data. I used both
types of data for collecting information. Mostly primary data I used well-structured
questionnaires to collect information from the Retailers..
In my project primary data involves:

Interviewing the Amul Retailers

Observation at retail outlets.

Interviewing was done on basis of questionnaire for retailers; observation method was
followed for distributors and consumers. Lots of care was taken at the time of preparing
questionnaire so that it gives a better and authentic result.
Secondary Data: - The secondary data are those which have already been collected by
someone else and which have already been passed through statistical process.

44

In my project secondary data involves:

Organization , journals , and booklets

Retailers price list

Analysis of Collecting Data:This involves converting raw data into useful information. It involves tabulation of data, using
Microsoft Excel on them for developing Graphs and chart to retrieve useful information from
the data collected.

Report Research Findings:This is the part which gives a quick view of my marketing survey effort. The report with the
research finding is a formal written document. The research finding and personal experience
will be used to propose suggestion & recommendations to improve the distribution strategy. In
this research report I include everything whatever I found at the time of survey.
RESEARCH DESIGN
Research design is the plan structure and strategy of investigation conceived so as to
obtain answers to research question and control variance.
Research design is the blueprint for the collection, measurement, and analysis of data.

3.6 SCOPE OF THE PROJECT

Being in the field work, I came into contact with distributors & retailers and enriched my
knowledge regarding marketing field.
A. I have increased my knowledge regarding the Retailers problem and strategy follow by
distributors to sell their products to Retailers.

45

B. The Retailers expectations & opinion from the Company is known during the field work.
C. To help Company to design better distribution channel.
D. Binding customers loyalty by providing best quality to the retailers.

Scope of Food Retailing: The Amul Preferred Outlets, global economy, Amul Preferred
Outlets (APOs), food retailers, supermarket sales, low operation costs, low margins, proximity
to customers, long opening hours, organized retailing.

Retailing, one of the largest sectors in global economy, is going through a transition phase in
India. Of all categories of retailing, the one which is expected to witness a major boom, is food
retailing. The unorganized sector has been playing a major role in food retailing but there
seems to be a gradual shift towards organized retailing. The past few years have seen a
number of MNCs like McDonalds, Domino's, and many others opening up chain restaurants.
This study is an attempt to explore the key factors influencing customer preferences as applied
to the concept of Amul Preferred Outlets (APOs). The factors identified in this study will also
help other food retailers in designing their services in accordance with the preferences of
customers.
According to a study on food and grocery retail market by KSA Technopak, food retail sales
consists of about 63% of total retail sales. The report says that the food and grocery sector
now accounts for 14% of total organized retail, after clothing and textiles (36%) and watches
and jewelers (17%).
Food and grocery retailing offer the biggest opportunity for growth within the Indian retail
industry. There are a large variety of retailers operating in the food retailing sector in India. This
is not surprising considering the massive size of the food market. However, traditional retailers,
operating in the unorganized form, dominate this sector.This is because of low operation costs,
low margins, proximity to customers, long opening hours, and additional services to customers
(such as home delivery). In comparison, supermarkets as part of organized sector occupy a
very little place in the food retail sales. Nevertheless, supermarket sales have expanded at a

46

much higher rate. This is because a large number of high salaried Indians prefer to shop at
supermarkets due to convenience, hygiene and the attractive ambience.

3.7 LIMITATIONS

Some retailers do not gives time as they are busy with customers.

Some retailers manipulated the facts and figures while interview.

Consumers taste and preference changes very frequently.

As the research work needs to be undertaken in the morning time, it was found difficult to
meet many retailers.

Large sample size would have given much better conclusion.

FACTS AND FINDINGS

Amul finds second place in Retailers outlets after HUL products as 93% Retailers have Amul
products and 96 % have HUL products. Cadbury finds third place and Nestle fourth place with
82% and 73% Retailers have these products respectively.

Telephone is the most popular means of communication as 73% Retailers communicate

with telephone to their distributors. Again 23% communicate with Personal visit and 4%
communicate with Email to their distributors.

57% Retailers said that distributor supply as per order but 43% Retailers complaints about
short supply of demanded product.

Replacement facility given by Amul is not up to the mark as only 8.3% are happy with
replacement facility given by Amul compare to other brands like Cadbury, Nestle and HUL.

47

As per survey 81% retailers have cooling equipment while 19% retailers said that they
have no cooling equipment.
.

Survey shows that75.8% retailers complaint that products sometimes damaged during the
distribution process, 12.5% complaints that many times products damaged, 4.2%
complaints that products always damaged and 7.5% retailers said that products never
damaged during distribution process.

Sales margin is one of the factors that makes Amul unpopular in retail shop as survey
shows that 38.8% retailers said that HUL gives the better sales margin, 26.7% retailers said
that Cadbury gives better sales margin while 19.2% said Nestle and 18.3% said Amul in
terms of sales margin.

Amul have got Packaging advantage as survey shows that14.2% retailers believe that
Amul have got Excellent Packaging, 42.5% believe that Amul have good packaging,
7.5% retailers believe that Amul have poor packaging and 35.8% Retailers are satisfy
with Amul packaging.

Survey shows that 32.5% retailers say that Amul provides better sales promotion
schemes compare to other Company.26.7% favour for Cadbury, 24.2% for Nestle and
16.6% for HUL in providing sales promotion schemes.

Distribution to Retailers: - Amul having 3-4 vans with each distributor to distribute the
product according to the demand.

Payment period:-Payment collection is done by distributors between 12pm to 4pm in

cash as well as in demand draft and cheques.

48

Payment method:-During the survey, it is observed that only 11% were only getting
credit facility, while 89% wants product for 2-3 days credit. But company provide credit
only if they maintain good relationship.
.

DATA ANALYSIS AND INTREPRETATION

Q.1) Which of the following brand do you provide?
Parameter

Amul

Cadbury

Nestle

HUL

Respondents

112

98

87

115

Percentage (%)

93

82

73

96

49

INTERPRETATION

93% Retailers have Amul products, 82% have Cadbury products, 73% have Nestle
products, and 96% have Hul products.

HUL products are available in the retailers shop more compare to Amul and other Brands.

So research shows that Amul finds second place in retailer shop.

Q.2) How do you contact with the Amul distributor?
Sample size-120
Medium
Respondents
Percentage (%)

Telephone
88
73

Email
5
4

50

Personal Visit
27
23

INTERPRETATION

73% Retailers communicate with Telephone, 23% communicate with Personal visit and 4%
communicate with Email to their distributor respectively.

Retailers finds convenient with Telephone compare with others means of communication.
So, research shows that Telephone is the most popular means of

communication

Q.3) Does Amul distributor supply exact quantity as per order?

Sample size-120
Supply of product
Respondent
Respondent (%)

Yes
68
56.7

No
52
43.3

51

INTERPRETATION
Out of 120 Retailers,

68(56.7%) retailers say that distributor supply as per order but 52(42.3%) retailers complain
short supply of demanded product.

So, we can say that supply given by distributor is not equal to demand of retailers.

Q.4) What is your opinion regarding speed of receiving Amul products after placing order by
Retailers?
Sample size 120
Frequency of Fast

Very Fast

Medium

product
Respondent

18

32

60

10

Respondent

15

27

50

(%)

52

Slow

INTERPRETATION
Out of 120 Respondents,

18(15%) Retailers feels that frequency of receiving products are fast, 32(27%) feels that
frequency are very fast, 60(50%) retailers feels that frequency are medium, and 10(8%)
feels that frequency are slow.

So, we can that frequency of receiving products after placing order by retailers are medium.
Q.5) What is your opinion regarding Packaging of Amul products?
Sample size-120
Packaging
Respondent
Respondent (%)

Excellent
17
14.2

Good

Satisfied

Poor

51

43

42.5

35.8

7.5

53

INTERPRETATION
14.2% Retailers believe that amul have got Excellent Packaging, 42.4% believe that Amul
have good packaging, 7.5% Retailers believe that Amul have poor packaging and 35.8%
Retailers are satisfy with Amul packaging
So, we can say that Amul have got packaging advantage

Q.6) Do you have cooling equipment?

Sample size-120
Cooling equipment

Yes

No

Respondent

97

23

Respondent (%)

81

19

54

INTERPRETATION
Out of 120 retailers, 97(81%) retailers say that they have cooling equipment while 23(19%)
retailers say that they have no cooling equipment.

Q.7) How often the Amul product does get damaged?

Sample size-120
Frequency

of Never

Sometimes

Many times

Always

damaged goods
Respondent

91

15

Respondent (%)

7.5

75.8

12.5

4.2

55

INTERPRETATION
Out of 120 respondents,
91 retailers(71.8%) complaint that products sometimes damaged during the distribution
process, 15(12.5%) complaints that many times products damaged, 5(4.2%) complaints
that products always damaged and 9(7.5%) Retailers believe that products never damaged
during distribution process.
So, we can say that damaging of products takes place during distribution process which should
be minimized.
Q.8) Which Company solve problem fast in terms of Replacement?

Sample size-120
REPLACEMENT Amul

Cadbury

Nestle

HUL

RESPONDENT

10

53

34

23

RESPONDENT

8.3

44.2

28.3

19.2

(%)

56

INTERPRETATION
Out of 120 Retailers,

53(44.2%) retailers are happy with the replacement facility given by Cadbury, 34 (28.3%)
retailers are happy with the replacement facility of Nestle, 10(8.3%) are happy with
replacement facility of Amul and 23(19.2%) are happy with replacement facility of HUL.

So, we can say that Amul gives the least Replacement facility.

Q.9) Are you getting facility of credit purchase for Amul products?
Sample size-120
Credit Purchase

Yes

No

Respondent

13

107

Respondent (%)

10.8

89.2

57

INTERPRETATION
11% Respondents saying that Company is providing credit facility while 89 % are not agree
with this view.

Q.10) Which Company gives you better sales promotion schemes?

Sample size-120
Sales

promotion Amul

Cadbury

Nestle

HUL

schemes
Respondent

39

32

29

20

Respondent (%)

32.5

26.7

24.2

16.6

58

INTERPRETATION
From the above pie chart we can say 32.5% retailers better sales promotion schemes compare
to other Company.26.7% favour for Cadbury, 24.2% for Nestle and 16.6% for HUL in providing
sales promotion schemes respectively

Q.11) Which Company gives you better margin on sale?

Sample size-120
Sales margin

Nestle

Cadbury

Amul

Hul

Respondent

23

32

22

43

Respondent (%)

19.2

26.7

18.3

35.8

59

INTERPRETATION
38.8% Retailers believe that Hul gives the better sales margin , 26.7% Retailers believe that
Cadbury gives better sales margin while 19.2% believe in Nestle and 18.3% believe in Amul in
terms of sales margin.
So, we can say that sales margin is one of the factors that makes Amul unpopular in retail
outlets.

SWOT ANALYSIS

60

CONCLUSION

61

 Amul is confident of growing its business through innovation coupled with an aggressive
marketing and rural distribution drive. Despite several shortcomings Amul contains
brand name and have good promotion program.
The major problem as far as Pune concerned is high competition and loyalty towards
competitors.
There is need for proper concentration on marketing strategy especially on promotion
Programme, delivery of the product, and facilities like replacement and credit to
retailers.

Amul should implement and amend marketing strategy as soon as possible because
Nestle, HUL and Cadbury also introducing new flavor and offering consumer and
retailer.
The Amul should focus on accelerated growth of the impulse segment, through more
focused brands and deliver affordable products through appropriate innovation. This will
provide the platform for a stronger performance in the years ahead.

62

RECOMMENDATION AND SUGGESTION

Proper delivery should be done and Retailers should get products as per order. For this
distributor can develop good distribution network.

During distribution process care should be taken in handling of products so that damaged
should be minimized.

Company person should visit to the retailers regularly so that complaints of retailers about
distributor can be taken into notice.
.

Replacement facility should be provided up to certain extent

.

Margin of sales should be increased as it motivates retailers to push the sales of product.

APPENDIX
63

1. Which of the following brand do you provide?

(a) Amul

(b) Cadbury

(c) Nestle

(d) Hul

2. How do you contact with the Amul distributor?

(a)Telephone

(b) Personal visit of Employee

(c)Email
3. Does Amul distributor supply exact quantity as per order?
(a) Yes

(b) No

4. What is the speed of receiving the products after placing Amul order by you?
(a) Very fast

(b) Fast

(c)

(d) Slow

Medium

5. What is your opinion regarding Amul packaging?

(a) Excellent

(b) Good

(c) Satisfied

(d) Poor

6. Do you have cooling equipment?

(a)Yes

(b) No

64

7. How often the Amul product does get damaged?

(a) Always

(b) Sometimes

(c) Never

(d) many times

8. Which Company solve problem fast in terms of Replacement?

(a) Amul
(c) Nestle

(b) Cadbury
(d) Hul

9. Are you getting facility of credit purchase for Amul products?

(a) Yes

(b) No

10. Which Company gives you better sales promotion schemes?

(a) Amul

(b) Cadbury

(c) Nestle

(d) Hul

11. Which Company giving better margin on sales?

(a) Amul
(c) Nestle

(b) Cadbury
(d) Hul

65

BIBLIOGRAPHY
BOOKS: Kotler Philip Marketing Management , Kevin Lane Keller.
Kothari C.R- Research Methodology.
CP Gupta: Research Methodology (Methods & Techniques), Second Edition, New Age
International Publishers, New Delhi.
Ramesh duby: Marketing Management, third edition, MacMillan India Ltd. New Delhi

WEBSITE: www.amul.com/companyprofile.htm/annualreport.htm on
www.amul/milk/621/hyt/hgon
http://bora.nhh.no/bjstream/amull=60668
www.wikipedia.com on amul

66