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SUMMER INTERNSHIP PROJECT REPORT


UNDER TAKEN
@

ON

To Increase Visibility and Develop Strategies for Increasing Penetration of


Amul Ice Cream

Summary Executive

This report is about the marketing of the ice cream industry of Amul; an industry entering the
market with its unique and innovative marketing strategies. We discuss its goals that it has set
for its product Amul and eventually the type of culture of the organization. We also discuss
the types of marketing researches before introducing our product to the market and how they
have segmented its target market and positioned it in the minds of the consumers. Finally the
whole study of the research work, the company needs to improve the quality and
the availability at retail stores and awareness of Amul Ice-cream.
The study was conducted at Amul.India Ltd, Delhi branch

INDEX

INTRODUCTION OF COMPANY:

The brand name " AMUL," from the Sanskrit "Amoolya," (meaning Precious) was suggested
by a quality control expert in Anand formed in 1946, is a dairy cooperative in India. It is a
brand name managed by an apex cooperative organization, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 3 million milk
producers in Gujarat.
India. AMUL is based in Anand, Gujarat and has been an example of a co-operative
organization's success in the long term. It is one of the best examples of co-operative
achievement in the developing economy. "Anyone who has seen the dairy cooperatives in
the state of Gujarat, especially the highly successful one known as AMUL, will naturally
wonder what combination of influences and incentives is needed to multiply such a model a
thousand times over in developing regions everywhere."The 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.
AMUL is the largest food brand in India and world's Largest Pouched Milk Brand with an
annual turnover of US $1050million (200607). Currently Unions making up GCMMF have
2.8 million producer members with milk collection average of 10.16 million litres per day.
Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA,
Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries.

Dr. Verghese Kurien former chairman of the GCMMF is recognized as a key person behind
the success of AMUL.

As we can see the sales of Amul keep on increasing over the year

History of AMUL

AMUL the co-operative registered on 1 December 1946 as a response to the exploitation of


marginal milk producers by traders or agents of the only existing dairy, the polson dairy, in
the small city distances to deliver milk, which often went sour in summer, to Polson. The
prices of milk were arbitrarily determined. Moreover, the government had given monopoly
rights to Polson to collect milk from mikka and supply it to Bombay city.

Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai
Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to
form a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson
(who did the same but gave them low prices). He sent Morarji Desai to organise the farmers.
In 1946, the milk farmers of the area went on a strike which led to the setting up of the
cooperative to collect and process milk. Milk collection was decentralized, as most producers
were marginal farmers who could deliver, at most, 12 litres of milk per day. Cooperatives
were formed for each village, too.
The cooperative was further developed and managed by Dr.Verghese Kurien with H.M.
Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk (for the first time
in the world) and a little later, with Kurien's help, making it on a commercial scale, led to the
first modern dairy of the cooperative at Anand, which would compete against established
players in the market.
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to
Anand's neighbourhood in Gujarat. Within a short span, five unions in other districts
Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up.To combine forces and
expand the market while saving on advertising and avoid competing against each other, the
GCMMF, an apex marketing body of these district cooperatives, was set up in 1973. The
Kaira Union, which had the brand name Amul with it since 1955, transferred it to GCMMF.
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.

Product categories

-milk

Curd

-butter

-ghee

-ice cream

Organisation structure
It all started in December 1946 with a group of farmers keen to free themselves from
intermediaries, gain access to markets and thereby ensure maximum returns for their efforts.
Based in the village of Anand, the Kaira District Milk Cooperative Union (better known as
Amul) expanded exponentially.
It joined hand swath other milk cooperatives, and the Gujarat network now covers
2.12million farmers, 10,411 village level milk collection centres and fourteen district level
plants (unions) under the overall supervision of GCMMF. There are similar federations in
other states. Right from the beginning, there was recognition that this initiative would directly
benefit and transform small farmers and contribute to the development of society.
Markets, then and even today are primitive and poor in infrastructure. Amul and GCMMF
acknowledged that development and growth could not be left to market forces and that
proactive intervention was required. Two key requirements were identified. The first, that
sustained growth for the long term would depend on matching supply and demand. It would
need heavy investment in the simultaneous development of suppliers and consumers.

Second, that effective management of the network and commercial viability would require
professional managers and technocrats. To implement their vision while retaining their focus
on farmers, a hierarchical network of cooperatives was developed, which today forms the
robust supply chain behind GCMMFs endeavours? The vast and complex supply chain
stretches from small suppliers to large fragmented markets. Management of this network is
made more complex by the fact that GCMMF is directly responsible only for a small part of
the chain, with a number of third party players (distributors, retailers and logistics support
providers) playing large roles.

Product Details

Product

Amul Ice Cream

Name
Description Utterly delicious ice cream made from fresh milk available in a wide range of
flavours and packs.

Packing

Cone

120 ml, 100ml, 80 ml & 50 ml

Cup

125 ml, 100 ml, 80 ml, 90 ml & 40 ml

Plastic

1 litre, 750 ml, 500 ml, 125 ml, 100 ml, 80 ml & 60 ml

Container
Stick

70 ml, 60 ml, 40 ml

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Take Home Bulk / catering packs (5 litre, 4 litre), take home packs (2.2 litre,
1.5 litre, 1.25 litre, 1 litre), combo packs (750 ml+750ml Free)
and family packs (500 ml, 250 ml)

AMUL COMPETITORS

Kwality Wall's

Kwality Wall's

Type

Subsidiary

Industry

Food

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Founded

1956

Headquarters

Mumbai, Maharashtra, India

Products

Frozen Dessert

Parent

Hindustan Unilever Limited

Website

Official Website

Kwality Wall's is a major producer and distributor of frozen dessert products in India,
Pakistan, Sri Lanka, Malaysia and Singapore. It is a company of Hindustan Unilever, the arm
of Unilever in India. It is an amalgamated brand name created out of two previously separate
independent companies that Unilever took over: Kwality of India and Wall's of Great Britain.
In some countries like India, most of Kwality Wall's products are not milk based ice cream
but rather vegetable fat based frozen desserts.[1]
Kwality, the original Indian company, was founded in 1956, and was the first in the region to
import machinery for the mass production and sale of ice cream on a commercial scale. In
1995, in view of the growth potential of the frozen confections market, Kwality entered into
an agreement with Lever, and has since been known by its current umbrella name. At the
same time, other brands acquired by Hindustan Lever, such as Gaylord-Milkfood, were
phased out in favour of promoting the Kwality Wall's brand. This arrangement allows for
local production and sale of Wall's products that are popular in its home market, such as the
Cornetto cone, and to create local variations on others, such as the Feast Jaljeera Blast.

MOTHER DAIRY

Mother Dairy Fruit & Vegetable Pvt. Ltd.

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Type

wholly owned subsidiary

Founded

1974

Headquarters Delhi, India


Key people

Mr.

S.

Nagarajan-

Managing

Director, Mr Anil Dev-Head Sales


industry = Dairy

Products

See Products

Revenue

4000 cr

Employees

3000

Website

motherdairy.com

Mother Dairy, set up in 1974, is a wholly owned subsidiary of the National Dairy
Development Board (NDDB) of India.

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Products
Mother Dairy double Toned Milk as marketed in Delhi, India
1. Liquid Milk
2. Ice Creams
3. Flavored Milk
4. Dahi
5. Lassi
6. Mishti Dahi
7. Ghee
8. White Butter
9. Table Butter
10. Cheese
11. UHT Milk
12. Dhara range of edible oils
13. Safal range of fresh Fruits and Vegetables
14. Frozen Vegetables and Fruit Juices at a national level through its sales and distribution
networks, for marketing food items.

The two yogurts/dahis marketed by Mother Dairy in Delhi, India

Mother Dairy milk (bulk vended) is fortified with vitamin A with 2000 IU per litre as s

accountability. This program started with the Mother Dairy, Delhi, in February 1980.
Thereafter the dairy continues this program on their own without having any financial
assistance from the government since it is felt that BVM is generally consumed by the
middle/lower middle/poor population. It is found that the dietary practices adopted by these

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classes are deficient in Vitamin A. Mother Dairy sources significant part of its requirement of
liquid milk from dairy cooperatives.

Vadilal

Type

Public

company

BSE: 519156
NSE: VADILALIND
Industry

Conglomerate

Founded

1907[1]

Headquarters Ahmadabad, India[2][3]


Key people

Ramchandrabhai

Gandhi,

(Chairman),
Rajesh Gandhi Managing Director,
Devanshu

Gandhi

Managing

Director
Products

Ice cream, Processed food,Foreign


Exchange, Chemicals, Real Estate

Revenue

4.5 billion (US$75 million)

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Employees

1000

Parent

Vadilal Group

Website

www.vadilalicecreams.com

Vadilal (Vadilal Industries Limited) (BSE: 519156 | NSE: VADILALIND) From a small
outlet in Ahmadabad over 80 years back, Vadilal Industries Ltd has today emerged as Indias
second largest ice cream player. The company is also one of the largest processed food
players in India with significant exports of frozen vegetables and ready to eat snacks, curries
and breads.

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AMUL DISTRIBUTION PROCESS

MARKET SHARE OF AMUL IN ICE CREAM INDUSTRY

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As amul is having a higher market share compare to other company

OBJECTIVES OF THE STUDY

To get better understanding of the brand image.


To do the comparison of AMUL ICE CREAM With other

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To make ones action plan with companys objective.


To know the differ problem being faced by differ retailers
To know the consumers attitude and demand towards the brand.
To know the consumers reaction towards brand in terms of price, offers & schemes.

RESEARCH METHODOLOGY

Data is the information collected from various sources.


It is concerned with gather accurate and proper knowledge about the problem that is in hand.
Formally there are two types of gathering information namely primary data and secondary
data.
Data collection mode:
There are two methods to collect the relevant data, they are
1. Primary DataThe primary data was collected through questionnaires. They were filled using the scheduled
method of data collection by the researcher.

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2. Secondary DataThe secondary sources were used by only for collecting information regarding the sample;
they were however not used for analysis.

In this research I collected data through questionnaire. For this I made a questionnaire and got
it filled by 50 people including men and women.

OBJECTIVE OF THE RESEARCH

-To know the factors upon which the market is segmented.


-To know awareness of people towards amul ice cream
-to know which advertisement tool is mostly preferred by people
-To know the preference of amul ice cream with comparison to other competitive brands
-to know the factors which affects consumers buying behaviour to purchase ice cream

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SAMPLING

1. Sample unit- People who buy ice cream available in retail outlet super-store
2. Sample size- 50 respondents (age ranging between 15 to 65 yrs)
3. Method- Direct interview through questionnaire.
4. Data analysis method Graphical method
5. Timing of survey may 2014

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FIELD WORK METHOD USED FOR DATA COLLECTION

- Questionnaire was prepared keeping the objective of research in mind


- Questions were asked to respondents as regards to their willingness to purchase milk.
- The help of questionnaire conducted direct interviews, in order to get accurate information.
- In order to get correct information I had to approach consumers ranging from 15 to 65 years.
- I have taken a sample of 50 people including man, women or even young and old also.
- In order to collect accurate information I visited to reliance fresh in uttam nagar area, each
and every question was filled by the respondents and checked properly.

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Literature Review

1. Ice cream industry expected to grow by 25 per cent this fiscal

COIMBATORE: The Rs 2,500 crore ice cream industry in India is expected to grow by 25
per cent this fiscal despite a lesser profit margin, a leading city based ice cream manufacturer
said here today.
P Vanjimuthu, Director, Vita Food and Beverages, which produces Boomerang ice cream, told
reporters here that cost of production has gone up drastically due to increased power charges.
SOURCE- THE ECONOMICS TIMES
URL- http://articles.economictimes.indiatimes.com/2013-12-24/news/45540125_1_icecreamcapita-consumption-profit-margin.

2.- There's Always Room for More

When New York ice cream giant Haagen-Dazs entered China, it did not compete with other
ice cream companies. Instead, it aligned itself with luxury brands. Kolkata-based Pabrai's
Fresh & Naturelle Ice Creams is doing something similar. Instead of competing with rivals
such as Amul and Kwality Walls, it positions itself as a relatively upscale brand. It supplies to
five-star hotels such as the Marriott, Taj and ITC chains, and The Imperial in Delhi. It also
supplies to high-end caterers in the national capital.
Fresh & Naturelle's founder, Kunal Pabrai, is preparing to open a second ice cream plant that
can produce 20,000 litres of ice cream a day, and it will increase his company's capacity
20fold in the next decade. His father Anuvrat Pabrai, who is Advisor and Chief Mentor at the
company, says: "We want this capacity before 2015 as there's so much demand. Our current
plant produces 2,000 litres of ice cream a day, and can be upgraded to 4,000 litres." Fresh &
Naturelle ice cream is currently available in ten cities, and Pabrai plans to expand business to
four more. He even plans to sell his ice cream in Australia, Dubai, Indonesia, Singapore and
the UK - ambitious plans for a company founded in 2008.

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Mumbai-based Natural Ice Cream , too, is growing. What started in 1984 with a single
store in a Mumbai suburb has 115 franchise outlets now, mostly in Maharashtra and
Karnataka. It sells only through franchisee parlours, not other retail outlets. By the summer,
the Rs 75-crore company plans to open stores in Chandigarh, Delhi, Jaipur, and Ludhiana.
And it plans to expand to Dubai and Singapore in two years.
In value terms, the organised segment of India's Rs 3,000-crore ice cream market has been
growing at 19.5 per cent a year for the last five years, says R.S. Sodhi, Managing Director of
the Gujarat Cooperative Milk Marketing Federation Ltd, maker of Amul brand products.
"Many established food and lifestyle trends, such as limited edition, indulgent, natural and
premium ingredients have led to the establishing of ice cream ranges under claims of
'premium'."
"Demand is very high in India," says 29-year-old Srinivas Kamath, Director, Kamaths
Ourtimes Ice Creams Pvt Ltd, which makes Natural Ice Cream. "There's demand from
Kolkata, Bhubaneswar and Guwahati. Once we enter North India, next will be East India."
SOURCE- BUSINESS TODAY
LINK -

http://businesstoday.intoday.in/story/global-and-indian-ice-cream-

companiesstrategy-for-demand/1/203176.html

3.- Amul readies premium ice cream to take on HUL's Magn


Dairy major Amul will launch a premium ice cream next month in a bid to take on rival
Hindustan Unilever (HUL), India's largest fast-moving consumer goods (FMCG) company
and a key player in the Rs 3,000-crore organised ice-cream market.

Amul's premium ice cream called Creme Rich will see a pan-India launch and will be priced
competitively, says R S Sodhi, managing director of Gujarat Co-operative Milk Marketing
Federation. The Federation is the owner of Amul, one of India's best-loved FMCG brands.
According to persons in the know, Amul is expected to price Creme Rich at Rs 40-45 a unit.

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A Magnum stick, on the other hand, comes for Rs 85 in markets such as Mumbai, Pune,
Bangalore and Hyderabad (besides Chennai), where it is currently available.

Amul will launch three or four fruit and nut flavours of Creme Rich, Sodhi said in a
telephonic conversation. The Creme Rich launch will soon be followed with the rollout of a
new range of premium yoghurt, he added.
The move to launch two new premium products back-to-back is significant since it marks the
first attempt by Amul to trade up its portfolio. While the brand has 40-45 per cent of the
organised ice-cream market, it has achieved this largely on the back of mass-market products
typically priced at a discount to rivals. Amul has always defended this pricing strategy saying
its co-operative model allows it to source raw materials, especially milk, economically,
allowing it to pass the saving to consumers. The strategy has been no different in other dairy
categories as well where Amul operates.
The premium ice-cream market, in particular, has been expanding on the back of growing
disposable incomes and consumers, desire to try out better products. Pegged at Rs 500 crore
within the overall ice-cream market, the premium segment has in the past few years seen the
entry of international brands such as Hagen Dazs and London Dairy.

SOURCE- BUSINESS STANDARD


LINK- http://www.business-standard.com/article/companies/amul-readies-premiumicecream-to-take-on-hul-s-magnum-114042800014_1.html

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Data Interpretation And Analysis

Gender

Gender

Male
42%
Female
58%

We got our questionnaire filled from reliance fresh. And mostly women visits reliance fresh,
so no. Of female respondent was more than male respondent.

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AGE

Age
30
25
20
15
10
5
0
15 -25

25-35

35-45

45 & above

Age

As we can see in the chart, the people between 35-45 years often visit to reliance fresh.
And they also consume more ice cream either for themselves or for their children.
So amul should try to target those people whose age is between 35-45 years.

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INCOME

income
20
15
10
5
0
below 1000

10000-20000

20000-30000 30000and above


income

Persons whose income is between 20000-30000 are preferred to visit reliance fresh.
And income level also affects the demand of ice cream in reliance fresh.
Because those who have more income, they spend money to have ice cream.

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Brand choice

CONSUMPTION
AMUL

KWALITY WALLS MOTHER DAIRY OTHERS


3%
22%
43%

32%

As we can see from this pie chart the consumption of amul ice cream is more than other
brand.
People prefer to have amul ice cream.
Only problem amul is facing of poor supply of ice cream to its retailers.
It needs to be solved as soon as possible.

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Preference over other brand

features
20
18
16
14
12
10

features

8
6
4
2
0
price

quality

flavour

other

As we can see, many people prefer amul ice cream because of its good quality.

Some also prefer because of its low price amul ice cream are being sold at lower rate
Compare to kwality walls.

Also amul has more flavour than compare to other company ice cream so demand of amul ice
cream is high compare to other company ice cream
People also want differ flavour.

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Favourite ice cream in amul

preference
brisk/tubs
10%

other
8%
cups
40%

sticks
16%

cones
26%

So people prefer to have cups and cones more than other flavour in amul.
So amul should try to increase the production of that flavours,
And also make available these flavours to retailers whenever they say.

Is amul ice cream easily available?

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avaibility

No
30%

Yes
70%

In the 50 respondent which we have taken for research.70% said that amul ice cream is easily
available.
So for rest of them amul should try to make ice cream available easily otherwise consumer
may shift to other company ice cream.

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How often you visit amul outlets

visit frequency
18
16
14
12
10

visit frequency

8
6
4
2
0
Everyday

weekend

once in a
month

alternate day

So many people visits to amul ice cream outlets on weekend.


So amul should try that on weekend the stock of any retailers should not get end, so for this
they should supply the ice cream on time.
The sale of ice cream is very high on weekend.

SWOT Analysis of AMUL ICE CREAM;

Strength

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Low price: - The prices of Amul ice creams are comparatively low as compared to
other companies (as the price of quality walls ice cream is high)
Good brand image: - It manufactures only milk and milk products, which is purely
vegetarian thus providing quality confidence in the minds of the customers.

Indian brand:-The Company is having Indian origin thus creating feeling of oneness
in the mind of the customer.

Weakness
o Improper supply.
o Late replacement.
o Sometime retailers get the delivery of those items which they havent ordered.

o Problem in the timing of supply-many retailers has problem with this.


o Distribution channel is not properly hooked up.

Opportunity
They can target the some rural area where there is potential market for the amul ice cream.
Also because the kwality walls is slightly costlier than amul so people prefer to have amul
ice-cream in rural area.
But for this they need to make improvement in supply of the ice-creams

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Threat
They have threat only to those companies which distribution of ice creams is good
Because some retailers say that they will start having stock of other company ice creams if the
supply of amul ice creams will not improve

Findings:

Many retailers said that they would start having other (as-mother dairy) ice cream
because there supply is very good.
Amul is the market leader.
There is some problem in the supply of the amul ice cream No proper and different
supply chain.
Also retailers have to wait long to get the replacement of melt ice cream.
Amul provide replacement but take too long time.
Some retailers have problem that they get some product which they havent ordered.

SUGGESTIONS
Amul has a good market share in ice cream industry.
But now company is having a tough competition by mother dairy and kwality walls.

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The product needs advertisement to create the brand value.


So for this whenever they launched new flavour they should advertised it more to make
people aware about the new flavour.
Also the retailers have a problem of poor supply.
Availability of the product in the shop is the most important factor.
There is always a complaint from the distributors regarding supply shortage from the
company which can be checked by centralizing the distribution channel .in such case if the
distributors does not have proper stock to supply the product in the required retail shop then
the problem can be solved by taking it from the other distributor of the Amul company which
is nearby to their place.
There is no doubt that Amul ice cream is a brand name, but it should create brand identity
Company should provide expiry replacement facility to the retailers, which will keep the
stock.
They should quickly replace the melt ice cream from the retailers.

Supply should be regular to all the outlets including those that lie in the pocket roads
and not just in the outlets which lie on the easily accessible routes.
Amul has a relatively good distribution network, but still company is not able to fulfil
the demand of outlet in the peak season when demand is very high. Here company
should consider on the supply of product in the peak season.
- Also distributor should deliver only those products to retailers which they have ordered
for.

CONCLUSION

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This project was of great importance to me, I have learnt a lot in this project, as we know that
Amul is a 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
but ice cream industry is also a profitable industry and the company cannot ignore it. With the
help of research, company can find out its week points in ice cream and can increase its
market share through rectify mistakes. Finally
I hear by conclude saying that I was really privileged to work in the company like Amul and
had got such a real time exposure of FMCG Company.

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Bibliography

Marketing book of Philip kotler

Through Google

Wikipedia

Face to face interaction

Through data which I collected from market