A

PROJECT REPORT ON

(Understanding the current brand positioning for Amul, and

developing a future positioning statement for the same)

Submitted in partial fulfillment of the requirements

for the award of the Degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

Guide Name: Ms. Monika Sharma Student Name: Dharamveer Singh Rathore

Enroll No: 0512051708

BLS INSTITUTE OF TECHNOLOGY MANAGEMENT

Delhi- Rohtak Road, NH-10, Jakhoda, Bahadurgarh -124507

Batch (2008-2011)

1
 Declaration

I, Mr.Dharamveer Singh Rathore, Roll No. 0512051708 certify that the Project

Report (Paper Code BBA 305) entitled “Understanding the current brand

positioning for Amul, and developing a future positioning statement for the

same” is done by me and it is an authentic work carried out by me. To the best of my

knowledge and belief, the material embodied in this Report has not been submitted

earlier for the award of any Degree or Diploma by any University or Institution.

Signature of the Student

Date:

2
 Certificate

Certified that the Project Report (Paper Code BBA – 305.) entitled

“Understanding the current brand positioning for Amul, and developing a

future positioning statement for the same” done by Mr.Dharamveer Singh

Rathore, Roll No. 0512051708, has been completed under my guidance and

supervision.

Signature of the Guide

Date: Name of the Guide: Ms. Monika

Sharma

Designation:

Countersigned

(Mr. Ajay kumar)

Director

3
 ACKNOWLEGEMENT

This report has been made possible through direct and indirect support of various people

for whom I wish to express my appreciation and gratitude.

I would like to thank Prof. Ravindra Kumar (Director BLSITM) for being continuous

source of motivation and inspiration in this project.

I also owe my sincere and whole hearted thanks to Ms.Monika sharma (PROJECT

GUIDE) for constantly guiding me and tackling variety of hurdles with implicit patience

throughout my research project and whose deep involvement and interest in the project

infused in me great inspiration and confidence in taking up this study in right direction.

Without her overall guidance and support the project may not have seen to be completed.

In the end, I also want to thanks my friends for their support and help during the project.

Submitted by:

Dharamveer singh rathore

4
 CONTENTS

S No Topic Page No
1 Certificate (s)
2 Acknowledgements
3 List of Tables 7
4 List of Figures 8
5 List of Symbols 9
6 List of Abbreviations 9
7 Executive summary 10
8 Chapter-1: General Introduction (Industrial 13

Background)
9 Chapter-2: Marketing 27
10 2.1 Marketing Function at GCMMF 27
11 2.2 Annual Marketing Planning 28
12 Chapter 3: Information Technology 32
13 Chapter 4: Financial Analysis 37
14 Chapter 5: Research Methodology 39
15 Chapter 6: Amul Shakti 43
16 6.1 Consumer Survey 48
17 6.2 Retailer Survey 58
18 6.3 SWOT Analysis of Amul Shakti 64
19 6.4 SWOT Analysis of Amul Mast Dahi 65

Comparative to Mother Diary

20 Chapter 7: Findings 66
21 Chapter 8: Limitations 67
22 Chapter 9: Recommendations 68
23 Chapter 10: Conclusions 70
24 Chapter 11: Appendix 72
25 Chapter 12: Bibliography 75

5
 LIST OF TABLES

Table No Title Page No

1 Sales Turnover. 37
2 Comparison of Net Profits. 38
3 Preference of health drink for child. 48
4 Preference of health foods in season. 49
5 Awareness of health food in season. 50
6 Like to prefer food drink from amul. 51
8 Source of information about product. 52
9 Effect of adds on purchase. 53
10 Involvement of children in decisions. 54
11 Customers preference for any health product. 55
12 Awareness of the content of health drinks. 56

13 Awareness of any health drinks containing almond and 57

kesar.
14 Data of most selling health drinks. 58
15 Preference of consumers. 59
16 Do the consumers looking for any special offer. 60
17 Role of sales margin. 61
18 Sale of amul shakti in a month. 62

6
 LIST OF FIGURES

Figure No Title Page No

1 Preference of health drink for child. 48
2 Preference of health foods in season. 49
3 Awareness of health food in season. 50
4 Like to prefer food drink from amul. 51
5 Source of information about product. 52
6 Effect of adds on purchase. 53
7 Involvement of children in decisions. 54
8 Customers preference for any health product. 55
9 Awareness of the content of health drinks. 56

10 Awareness of any health drinks containing almond and 57

kesar.
11 Data of most selling health drinks. 59
12 Preference of consumers. 60
13 Do the consumers looking for any special offer. 61
14 Role of sales margin. 62
15 Sale of amul shakti in a month. 63

LIST OF SYMBOLS

S No Symbol Nomenclature and Meaning

1 $ Dollar
2 Rs Rupees
3 % Percentage

LIST OF ABBREVIATIONS

7
S No Abbreviated Name Full Name
1 NDDB National Dairy Development Board
2 GCMMF Gujarat Cooperation milk Marketing

Federation
3 GDP Gross Domestic Product

8
EXECUTIVE SUMMARY

Over the last 25 years or so, the Indian dairy industry has progressed from a situation of

scarcity to that of plenty. Dairy farmers today are better informed about technologies of

more efficient milk production and their economics. Even the landless and marginal

farmers now own highly productive cows and buffaloes in many areas. Application of

modern technology and advanced management systems in milk processing and

marketing have brought about a marked change in the market place.

Consumers now have a wide range of choice of products and packages. The Operation

Flood (OF) programme implemented by National Dairy Development Board (NDDB)

played a key role in bringing about this transformation.

The importance of OF programme lies in its focus on small rural producers. Lucrative

alternate employment opportunities are often not available in Indian villages making

dairying an attractive option for many villagers. Low capital intensity, short operating

cycle and steady returns make dairying a preferred activity among the marginal and

small farmers (those having less than two hectares of land) and even landless who

depend for fodder on common grazing and forest lands.

About 57 percent of rural households in India are marginal and small farmers in many

milksheds. Nearly 70 million households hold a total of 98 million cows and buffaloes.

A majority of milk producers have 1 or 2 milk animals and account for some 70 percent

of the milk production. On an average, about 22.5 percent of the income of the rural

households is contributed by milk.

9
The Anand Pattern Cooperative structure comprises village level dairy cooperative

societies (DCSs), which promote district level union, which in turn promote state level

marketing federation.

Starting in 1970, NDDB replicated the Anand Pattern cooperatives through the OF

programme all over India.

10
INDUSTRY PROFILE

The dairy sector in the India has shown remarkable development in the past decade and

India has now become one of the largest producers of milk and value-added milk

products in the world. The dairy sector has developed through co-operatives in many

parts of the State. During 1997-98, the State had 60 milk processing plants with an

aggregate processing capacity of 5.8 million litres per day. In addition to these processing

plants, 123 Government and 33 co-operatives milk chilling centers operate in the State.

With the increase in milk production. Maharashtra now regularly exports milk to

neighboring states. It has also initiated a free school feeding scheme, benefiting more

than three million school children from over 19,000 schools all over the State.

INDIAN DAIRY INDUSTRY

Dairy is a place where handling of milk and milk products is done and technology refers

to the application of scientific knowledge for practical purposes.

More than 2,445 million people economically active in agriculture in the world, probably

2/3 or even more ¾ of them are wholly or partly dependent on livestock farming. India is

endowed with rich flora & Fauna & continues to be vital avenue for employment and

income generation, especially in rural areas. India, which has 66% of economically active

population, engaged in agriculture, derives 31% of Gross Domestic Product GDP from

agriculture. The share of livestock product is estimated at 21% of total agricultural sector.

11
 CHAPTER – 1

INTRODUCTION

COMPANY PROFILE

THE AMUL STORY

In the 1940s, in the district of Kaira in the State of Gujarat, India, a unique experiment

was conducted that became one of the most celebrated success stories of India. At that

time, in Gujarat, milk was obtained from farmers by private milk contractors and by a

private company, Polson's Dairy in Anand, the headquarters of the district. The

company had a virtual stranglehold on the farmers, deciding the prices both of the

procured as well as the sold milk. The company arranged to collect, chill and supply

milk to the Bombay Milk Scheme, which supplied milk to the metropolis of Bombay,

and to cities in Gujarat. Polson's Dairy also extracted dairy products such as cheese and

butter. Polson's Dairy exploited its monopoly fully; the farmers were forced to accept

very low prices for their products, and the decisions of the company regarding the

quality and even the quantity of the milk supplied by the farmers were final.

In 1946, inspired by Sardar Vallabhbhai Patel, a local farmer, freedom fighter and

social worker, named Tribhuvandas Patel, organized the farmers into co-operatives,

which would procure milk from the farmers, process the milk and sell it in Bombay to

customers including the Bombay Milk Scheme. Purely by chance, in 1949, a

mechanical engineer named Verghese Kurien, who had just completed his studies in

engineering in the USA, came to India and was posted by the Government of India to a

job at the Dairy Research Institute at Anand. Settling down in Anand was hardly a part

12
of his career plans; however, a meeting with Tribhuvandas Patel changed his life and

changed India's dairy industry.

What Mr Patel requested of Dr Kurien was hardly to bring about such a revolution. All

he wanted was help in solving various problems with bringing into working order some

of the equipment just purchased by his co-operative, especially the chilling and

pasteurizing equipment. These items of equipment malfunctioned, leading to the

rejection of large quantities of milk by the Bombay Milk Scheme.

Dr Kurien's involvement with the Kaira District Co-operative Milk Producers' Union

Limited (KDCMPUL; the registered name of the co-operative) grew rapidly. Initially

he merely provided technical assistance in repairing, maintaining and ordering new

equipment but subsequently he became involved with the larger sociological issues

involved in organizing the farmers into co-operatives and running these co-operatives

effectively. He observed the exploitation of farmers by the private milk contractors and

Polson's Dairy, and noted how the co-operatives could transform the lives of the

members.

The most important feature of these co-operatives is that they are run purely as farmers'

co-operatives, with all the major decisions being taken by the farmers themselves. The

co-operatives are not 'run' by a separate bureaucracy with vested interests of its own;

the farmers are truly in charge of their own decisions. Any farmer can become a

member by committing to supply a certain quantity of milk for a certain number of days

in a year and shall continue to be a member only if he keeps up this commitment. Each

day, the farmers (or actually, in most cases, their wives and daughters) bring their milk

to the village collection canters where quantity of milk is checked in full view of all and

13
quality (milk fat content) is checked using a simple device, again in full view of all. The

farmers are paid in the evening for the milk they supplied in the morning, and in the

morning for the evening's milk. This prompt settlement in cash is a great attraction to

the farmers who are usually cash starved. Thanks to the above system, there are no

disputes regarding quantity or quality of the milk supplied by each farmer.

It was soon realized that it was not enough to merely act as the collection and selling

agents for the farmers. A variety of support services were also required to enable the

farmers continue selling milk of adequate quality and to avoid disasters such as the

death of their cattle (for a family owning just one or two cattle and depending on

its/their milk for their income, death of a cow could indeed be a disaster). The farmers

were progressively given new services such as veterinary care for their cattle, supply of

good quality cattle feed, education on better feeding of cattle and facilities for artificial

insemination of their cattle. All these were strictly on payment basis; none of the

services were free.

This experiment of organizing farmers into co-operatives was one of the most

successful interventions in India. A very loyal clientele was built up who experienced

prosperity on a scale they could not have dreamt of 10 years earlier. With good prices

paid for their milk, raising milk cattle could become a good supplementary source of

revenue to many households. The co-operatives were expanded to cover more and more

areas of Gujarat and in each area, a network of local village level co-operatives and

district level co-operatives were formed on a pattern similar to that at Anand (the so

called Anand Pattern). In 1955, KDCMPUL changed its name to Anand Milk Union

Limited, which lent itself to a catchy abbreviation, Amul, which meant priceless in

14
Sanskrit. The word was also easy to pronounce, easy to remember and carried a wholly

positive connotation. It became the flagship brand name for the entire dairy products

made by this union.

In 1954, Amul built a plant to convert surplus milk produced in the cold seasons into

milk powder and butter. In 1958, a plant to manufacture cheese and one to produce

baby food were added—for the first time in the world, these products were made from

buffalo milk. Subsequent years saw the addition of more plants to produce different

products. Starting from a daily procurement of 250 liters in 1946, Amul had become a

milk giant with a large procurement base and a product mix that had evolved by

challenging the conventional technology.

On his visit to Anand in 1965, the then Prime Minister of India, Lal Bahadur Shastri,

was impressed by what he saw—a system that procured, processed and delivered high

quality milk to distant markets cost efficiently. Shastri could also see the difference that

the income from milk had made to the standard of living of farmers in the area. What

impressed him the most was that Amul had done all this without government assistance,

in marked contrast to a number of government sponsored dairy Programme that were

doing poorly in terms of procuring and marketing good quality milk and boosting

farmers' incomes. Shastri asked Dr Kurien to replicate Anand's success all over India.

A pattern similar to the Anand Pattern was to be built in other states of India. This was

carried out under a Programme launched by the Government of India, entitled

'Operation Flood'. The National Dairy Development Board (NDDB), a body formed by

the Government of India with this specific objective, coordinated the operation.

15
Gujarat Cooperative Milk Marketing Federation GCMMF: An Overview: -

Gujarat Cooperative Milk Marketing Federation (GCMMF) is an India’s largest food

product marketing organization. It is a state level apex body of milk cooperatives in

Gujarat, which aims to provide remunerative returns to the farmers and also serve the

interest of consumers by providing quality products, which are good value for money.

Members: 12 district cooperative milk

producers' Union
No. of Producer Members: 2.41 million
No. of Village Societies: 11,615
Total Milk handling capacity: 7.4 million litres per day
Milk collection (Total - 2004-05): 2.08 billion litres
Milk collection (Daily Average 5.71 million litres

2004-05):
Milk Drying Capacity: 511 metric Tons per day
Cattlefeed manufacturing 2340 Mts per day

Capacity:

GCMMF – Business Philosophy: -

 To serve the interests of milk producers.

 To provide quality products to consumers – Value for money.

Industry Standing: -

 India’s largest food products marketing organization with an annual turnover of

over 2700 crores.

16
 Market’s popular brands ‘AMUL’ and ‘SAGAR’.

 India’s largest exporter of dairy products.

 India’s largest “Cold Chain” Network.

 14 Dairy Plants.

 Milk handling capacity of 6 MLPD.

 No.1 market shareholder in India for Butter, Cheese, Ice-cream, Dairy Whitener,

Condensed Milk, UHT Milk, and Baby Food.

 Presently marketing pour liquid milk in five states namely, Gujarat,

Maharashtra, Chattisgarh, Rajasthan and Madhya Pradesh.

Export

Far the fifth consecutive year Amul has received the Government of India’s APEDA

award, as the Nation’s largest exporter of Dairy Products. During the year, Amul

Butter, ShriKhand, and Gulabjamuns were launched in the USA. Its Products also made

a debut in New Zealand, Singapore, Thailand and Iraq, during the year and received a

very encouraging consumer response.

Federation’s export turnover has also grown by 17% in terms of Volumes The

Consignment sales of the year is 464.53 Crores.

Amul long life Milk has been very well accepted in the UAE and Singapore Market. In

the international Market Company has grown. At the rate of 34%, Company by open

was house induction to butter serve customers in the region.

Milk Procurement: -

Procurement by member Unions = 52.35 Lakh Kg/Day

Peak Procurement in a Single Day = 67.52 Lakh Kg/Day

17
(All time Record of Milk Procurement)

Sales: -

Growth in Sales 17.5 Percent increased

Reached to 2745.74 Crore

Sales to Defense Services = 34%

Sale of Amul Ice Cream = 29%

Amul Milk in Pouches = 7%

UHT Milk = 56%

PRODUCT PROFILE

Breadspreads:

 Amul Butter

 Amul Lite Low Fat Breadspread

 Amul Cooking Butter

Cheese Range:

18
 Amul Pasteurized Processed Cheddar Cheese

 Amul Processed Cheese Spread

 Amul Pizza (Mozarella) Cheese

 Amul Shredded Pizza Cheese

 Amul Emmental Cheese

 Amul Gouda Cheese

 Amul Malai Paneer (cottage cheese) Frozen and Tinned

 Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

 Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

 Amul Amrakhand

 Amul Mithaee Gulabjamuns

 Amul Mithaee Gulabjamun Mix

UHT Milk Range:

 Amul Taaza 3% fat Milk

 Amul Gold 4.5% fat Milk

 Amul Slim-n-Trim 0% fat milk

 Amul Chocolate Milk

 Amul Fresh Cream

 Amul Snowcap Softy Mix

 Amul Taaza Double Toned Milk

Pure Ghee:

19
 Amul Pure Ghee

 Sagar Pure Ghee

 Amul Cow Ghee

Infant Milk Range:

 Amul Infant Milk Formula 1 (0-6 months)

 Amul Infant Milk Formula 2 (6 months above)

 Amulspray Infant Milk Food

Milk Powders:

 Amul Full Cream Milk Powder

 Amulya Dairy Whitener

 Sagar Skimmed Milk Powder

 Sagar Tea and Coffee Whitener

 Sweetened Condensed Milk:

 Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

 Amul Taaza Toned Milk 3% fat

 Amul Gold Full Cream Milk 6% fat

 Amul Shakti Standardised Milk 3% fat

 Amul Smart Double Toned Milk 1.5% fat

Curd Products:

 Amul Masti Dahi (fresh curd)

 Amul Butter Milk

20
 Amul Lassee

Amul Icecreams:

 Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti

Frutti)

 Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar

Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)

 Utsav Range (Anjir, Roasted Almond)

 Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)

 Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black

Currant)

 Sundae Range (Mango, Black Currant, Chocolate, Strawberry)

 Millennium Icecream (Cheese with Almonds, Dates with Honey)

 Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi,

Shahi Pista

Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)

 Cool Candies (Orange, Mango)

 Cassatta

 Tricone Cones (Butterscotch, Chocolate)

 Megabite Almond Cone

 Frostik - 3 layer chocolate Bar

 Fundoo Range - exclusively for kids

 SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)

21
Health:

 Isabcool

Chocolate & Confectionery:

 Amul Milk Chocolate

 Amul Fruit & Nut Chocolate

 Amul Eclairs

Brown Beverage:

 Nutramul Malted Milk Food

Milk Drink:

 Amul Shakti Flavoured Milk

Ready to Serve Soups:

 Masti Tomato Soup

 Masti Hot & Sour Soup

STRUCTURE OF THE ANAND PATTERN

22
 THE ANAND PATTERN
State marketing federation
All dairies in a state
District milk federation union
Every District in the state
Village co-operative society
All Villages in a district
SECRET OF AMUL’S SUCCESS
23
THE ANAND PATTERN TODAY
State marketing federation
All dairies in a state
GCMMF in Gujarat
22 state federation in India
District dairies
Every district in the state
12-district union in Gujarat
180 unions all over in India
Village co-operative society
All Villages in a district
10,000 villages in Gujarat
80,000 villages in India
Milk producers
All milk producers in a village
2 million in Gujarat
10.1 million in India
The secret of Amul was its success in combining the native wisdom of our farmers, and

the skills and knowledge of professional managers. By forging this partnership, Amul

placed the instruments of development into the hands of the people. This partnership

implied a relationship of mutual trust, faith and respect: the professional had to

recognize that he had the skills and knowledge, but the illiterate farmer had the wisdom

passed onto him through generations of tradition. On their part, the farmers had to

appreciate that, to survive in local and global market place surcharged with

competition, an economic organization like a cooperative must have committed

professionals of the highest quality and integrity. The basic structure of the Amul model

is the milk producers' cooperative society at the village level. Membership in these

cooperatives is open to all who need the cooperative's services and who are willing to

accept the responsibilities of being a member. Decisions are taken on the basis of one

member exercising one vote. No privilege accrues to capital, and the economic returns,

whether profit or loss, are divided among the members in proportion to patronage. All

the milk cooperatives in a district form a Cooperative Milk Producers‘Union that

processes the milk into various milk and milk products. The unions in a State are

federated in to a Cooperative Milk Marketing Federation, which markets milk products

of its member unions. Thus, the core feature of Amul model, which later came to be

known as Anand Pattern Dairy Cooperatives, is farmer control on all three stages of

procurement, processing and marketing of milk and milk products. Farmers came from

all parts of Gujarat to learn from Amul‘s success. They went back to their own districts

and started their own cooperatives on Anand Pattern such as Mehasana, Surat, Valsad,

Bharuch, Sabarkantha, Banaskantha, Baroda, Ahmedabad, Panchamhals, and Rajkot.

24
After years of struggle, the cooperatives began to produce dramatic results. Gujarat

Cooperative Milk Marketing Federation (GCMMF) was established in 1973 to jointly

market the products produced by the dairy cooperative unions in Gujarat. Today

GCMMF sells AMUL brand products not only in India but also overseas. In 2002-03,

the GCMMF‘s turnover was over Rs.2700 crores making it the largest in the food

industry. What started as a fledgling cooperative has now become a multi crore dairy

industry.

REAL CONSUMERS

Real consumer of the Amul products i.e. cheese, butter, milk and all other milk

products are used directly by the consumers which include, the common people,

restaurants , food processing companies, bakeries etc..

CHAPTER -2

25
 (MARKETING)

2.1 MARKETING FUNCTION AT GCMMF

The marketing function at GCMMF aims to understand the taste and nutritional

recruitments of the customer of the world and strive to satisfy these requirements with

fruit products of the best quality and at the most reasonable prices

The marketing functions comprises three primary functions managing the brand equity

the process consist of value for money consistency in quality and communication

organization and brand values consumer feed back mechanism expanding market size

and market shares facilitating business growth through relevant diversification

STRUCTURE OF MARKETING DEPARTMENT

GM(Dairy line)

AGM(Marketing)

GROUP PRODUCT MANAGER

MANAGER (product movement)

EXECUTIVES AND ASSISTANTS

INCLUDING SYSTEM SUPPORT
PERSON

2.2 ANNUAL MARKETING PLAN

26
 The annual marketing plan lays down are marketing efforts for the next year. This

crucial planning is undertaken in November/December each year.

The contents of the marketing plan called ‘the annual marketing plan dossier’ design

by product management group.

The table of contents has the following:

1. Market status of Amul brands v/s competitors brands.

a) Actual sales say for the year 2004-05, estimated sales for the year 2005-06 and

projected sales for 2006-07

b) Market share for each category for the same period.

c) Barriers to sales growth and suggestions to overcome it.

d) Strategic moves of competitors and suggested counter measures.

2. Pack wise sales status of our brands

a) Actual pack wise sales for the year 2004-05 estimated sales for the year 2005-06 and

projected sales for 2006-07.

b) Pack wise % deviation of estimated current sales over actual past year sales.

c) Reasons for deviation in sales.

d) Projected pack wise sales for 2006-07 and its ratio.

3. Information for new product development

a) Manufacturer for the given new product, his production capacity and annual

turnover.

b) Organized/unorganized market for the new product.

27
c) Annual turnover of the brand, its price to the distribution channel and mrp.

d) Projected sales for the first year, if the product is launched.

4. Depots suggestions, feedback and planning efforts.

a) Feedback on advertising, etc.

5. What the consumer has to say.

THE second part of the annual marketing planning exercise includes market

planning for the next five years rather than the customary one. This includes the

following:

 retailer planning

 planning for individual product

 product wise-annual promotional planning

 Consumer demographics to be included in the market planning.

28
Wholesale Distributors meeting – Ahmedabad

The Wholesale Distributors (WDs) of our Ahmedabad depot participating in the WD

Hoshin Kanri (VMS) meeting held on 10th April, 2005. The purpose of this meeting

was to discuss the Orginisation's plan for the current financial year and the strategies to

improve the quality and productivity of the Distributors operations.

29
Wholesale Distributors Hoshin Kanri meeting - Delhi.

The Wholesale Distributors (WDs) of our Delhi depot participating in the WD Hoshin

Kanri (VMS) meeting held on 10th April, 2005. The purpose of this meeting was to

discuss the Orginisation's plan for the current financial year and the strategies to

improve the quality and productivity of the Distributors operations.

30
 CHAPTER-3

INFORMATION TECHNOLOGY

The 'E-Commerce' Road Ahead

People, today, talk of e-commerce as a tool of the future. The Internet, they say, will

change everything - the freedom of choice, the way markets function, the nature of

work, the meaning of leisure, the empowerment of Consumers. The Information

Implosion rapidly expands the choices available to the consumers. Past objectives will

be shaped by future solutions. The quickest, as also the best interaction, will take place

in Cyberspace. All these activities are geared towards matching and satisfying the

perceived as well as latent needs of consumers, through the effective use of information

technology. In this Information-Communication-Entertainment Age, the barriers

between the business organization and consumers, between manufacturers and end-

users are all breaking down. This is what we started some fifty years ago: eliminating

the 'middlemen' thereby bringing the 'producer' closer to the 'consumer'. Your

Federation has been one of the first organizations in India to embrace the e-revolution.

And, with satisfying success, as well. Amul is India's first food brand to have a

dedicated website -- www.amul.com. Today, we operate India's first national

cyberstore, functioning in some 120 cities, and an Amul Cyberstore Gifting Service

capable of serving consumers in more than 220 of our cities, on specific occasions. This

has been made possible by our creating an IT network, which links our production,

centers with sales offices and dealers by VSAT and e-mail connectivity. Our website

has brought us closer to our customers, improving interactivity, brand salience and the

31
shopping basket experience. In fact, we at Amul are consciously targeting

'Generation@' like never before.

Notable firsts among AMUL web-achievements are:

March, 1996: Among the first Indian corporates on the net

September, 1998: Launch of Amul Cricket Rankings

March, 1999: Launch of Amul Cyberstore in the US

June, 1999: Launch of Amul Cyberstore - India

September, 1999: Launch of Amulmail.com

October, 1999: Launch of Amul Gift Hamper Service - India

Today, the company has what the net saviors refer to as the 'first mover advantage' in

the net business. Net Brands will matter. Net Brands will persevere. Net Brands will be

a key and growing niche. Net Brands will have an interactive personality. Net Brands

will deliver results. And, Net Brands will be savvy. Like their Marketers. How you do,

what you do will be the acid test of fulfillment of Consumer expectations. Of critical

importance will be the exercise of Logistics - that delivers not just the Brand but the

Brand Promise, as well. Channel Synergy will replace channel Conflict, as the web

channel gets linked to conventional channels. When E-tailing becomes supplementary

to Re-tailing, by closing in on one transaction - Selling. By offering the Consumer the

benefit of becoming an 'E-Consumer' and consequently, an 'M-Consumer'. The day is

not far when every farmer, in each village society, will walk in with his Smart Card.

This movement of co-operatives from Co-ops to e-Co-ops will make co-operatives that

much more stronger by bringing members together and closer to customers like never

32
before. Impressive as this may sound, we must never forget the basics that have built

AMUL: First, we work for farmers. Two, we believe in Co-operation and the added

benefits that come from being part of a team. Three, we can and must always be the

best in whatever we do. Four, we must back relentless innovation with the willingness

to put in good solid hard work. Five, we must recruit, support and retain people who

will contribute their best in whatever they do, no matter how small or how great the task

might be. And finally, we must always face adversity with courage, knowing that every

challenge is really an opportunity.

IT IN THE VILLAGES

 Automated milk collection system put up in the village societies in which, the

quality of milk poured, the fast percentage of milk are automatically stored into a

database and payment is made on the basis of a computer generated receipt of the milk.

 AMCUS brought about the much needed trust and transparency in the system.

 Same day payment and book keeping now easier.

 Information travels from the village societies to the milk union in a floppy along

with the milk cans/vehicle

 Future plans include direct connectivity between villages and the unions.

(internet sewa project).

 Geographically information system is used to track animal husbandry in the

villages.

 Availability of animal census data in gist mapped format.

33
INTEGRATED ERP SYSTEM

(Enterprise-wide integrated application system) integrates the operation of the head

office, zonal office, and the sales depot offices .It is based on ORACLE-D2K it has a

flat file technology to transfer data which provides low cost alternative to the

requirement of continous connectivity for the data transfer.

It has the major following modules:

• market planning

• advertising and promotion

• production, planning and control

• asset management

• distribution network planning

• stock control

• sales and sales accounting

• export management

• commercial

• management accounting

• financial accounting

• budgetary control

• quality control management

• purchase

• human resourse management

• administration

34
B2B BUSINESS MODEL

This is used to integrate the operation of both the distributors and suppliers with the

customized ERP system. The organization consists of separate entities, which even

those sitting on diverse platform will come together to provide the best value to the

customers. The first step towards this is creation of this site called AMULB2B.COM.

which the distributors can use to place the order for goods. Distributors can login and

place an order on the web itself for all the products.

35
 CHAPTER-4

FINANCIAL ANALYSIS

Sales Rs
2004-05 US $
672 29225
616
Turnove 2003-04
(millio (in 28941
2002-03 575 27457
r n)
2001-02 millio
500 23365
2000-01 500
n) 22588
US $ (in million)
year

1994-95 1999-00
11140 493
355 22185
Rs (million)
1995-96 1998-99
13790 493
400 22192
1996-97 1997-98
15540 455
450 18840
1997-98 1996-97
18840 450
455 15540
1998-99 1995-96
22192 400
493 13790
1999-00 1994-95
22185 355
493 11140
2000-01 22588 500sales turnover Table-1 Sales
2001-02 23365 500
Turnover
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
COMPARISION OF NET PROFITS (IN LAC.)

Year amoun

t
2002- 680.17

03

2004- 730.97

05

36
Table-2 Comparison of Net Profits

"
730.97
" "
" 1
net profit

" A 680.17
" P
" _
u r ¦  r 9
year

Ò « º

CHAPTER-5

RESEARCH METHODOLOGY

Research Design

37
Research design is the conceptual structure within which the research would take place

the presentation of such a design facilitates research to be efficient as possible yielding

maximum information.

Types of research

We have used a descriptive type of research. It includes survey and fact-findings

inquire of different kinds. The major purpose of such research is description of the state

of affairs, as it exists at present.

Data Source:

There are two types of data. They are:

 Primary data

 Secondary data

Primary data are those, which are collected by direct interface with people and thus

happen to be original in character. Primary data will not only be relevant for research

project but it is also reliable, accurate and dependable.

Secondary data are those which have already been collected by someone else and

which have already been passed through statistical process.

For our research, data has been procured from both primary and secondary sources of

which retailers and consumers constituted the primary source whereas newspaper

magazines and websites constitute the secondary source.

38
Research process

There are two basic types of approaches to research. They are:

 Quantitative

 Qualitative

Quantitative approach involves the generation of data in quantitative form, which can

be subjected to rigorous quantitative analysis in a formal and rigid fashion. This

approach can be further sub classified into inferential, experimental and simulation

approaches to research.

Qualitative approach to research is concerned with subjective assessment of attitudes,

opinions and behaviour.research in such a situation is a function of researcher’s insights

and impressions.

Research instruments

The various research instruments at the hands of the researcher are as follows:

 Observation: under this the information is sought by way of investigator’s

own direct observation without asking the respondent

 Interview: it involves presentation oral-verbal stimuli and reply in terms oral-

verbal responses. This method can be used through personal interviews.

 Questionnaires: it consists of a number of questions printed or typed in a

definite order on a form or a set of forms. The respondents have to answer the questions

themselves.

39
For our survey we used questionnaires and personal interviews.

Types of questionnaires

Questionnaires can be of two types:

1. Structured: it is one in which all questions are specified and comments are

in the respondents own words

2. Unstructured: it is one in which the answers to the questions can be

framed in respondent’s own words.

Sampling procedure

There are two main sampling procedures, they are:

1. Probability sampling

It is a sampling procedure which does not afford any basis for estimating the probability

that each item in the population has being included in the sample.

2. Non-probability sampling

It is one in which every item of the universe has an equal chance of inclusion in the

sample. It is further divided into random sampling and non-random sampling.

The sampling procedure followed was random sampling which ids a method which

gives each possible sample combination, an equal probability of being picked up and

each item in the entire population to have an equal chance of being included in the

sample.

40
Study objective

The main objective of the report was to find the consumer perception of AMUL

SHAKTI & MASTI DAHI in Dehradum market and retailer satisfaction. The other

minor objectives were as follows:

 To know the consumer awareness about amul mast dahi and amul shakti

 To know the market share

 To know the retailer satisfaction

CHAPTER-6

41
ABOUT THE PRODUCT (AMUL SHAKTI)

THE INDIAN MILK FOOD SEGMENT

MILK DERIVATIVES MALT DERIVATIVE

(WHITES) (OR BROWN)
 AMUL  HORLICKS
SHAKTI  BOURNVITA
 COMPLAN
 DELITE
Amul enters white health-food-drink market with Shakti  MILO
 BOOST
THE Gujarat Cooperative Milk Marketing Federation (GCMMF) forays into the white

health-food-drink market with Amul Shakti, a white beverage. The Rs 1,400-crore

health-food-drink market is dominated by Smithkline Beecham Consumer Healthcare's

42
brand Horlicks and Viva; Heinz's Complan, Nestle's Milo and Cadbury's Bournvita.

The health food drink segment comprises white and brown categories.

"We believe that the market for health food drinks is a whopping 60,000 tonnes, and

traditionally, the market for white beverages is much larger than for cocoa-based

drinks. Since GCMMF focuses on milk-based products, it is natural for the company to

enter markets like health food drinks," the General Manager-Marketing, Mr R.S. Sodhi,

told Business Line.

GCMMF is eyeing 10 per cent volume share of the market within 90 days of launch and

becoming the market leader in this category within three years. The plans appear

ambitious since the white health food drink market, estimated to be at Rs 900 crore, is

already saturated and kids (the main target consumers) prefer brown beverages that

contain cocoa. Also, the health food drink industry, as a whole, appears to be facing a

slowdown, with Nestle already making it clear that it was "reviewing" the performance

of Milo.

GCMMF, which is already a milk market leader, has identified as a thrust area

developing nourishment of the entire family through variants of milk foods on a

continuous basis while maximising the returns on milk. What appears to have given

GCMMF confidence in capturing a large slice of the market within the first three

months is that besides launching the product at competitive prices, the company has

taken care to retain industry averages when deciding retailer and wholesaler margins at

9.5 per cent and 5 per cent respectively on the landing price.

43
While the white drink finds a bigger market in South and East, the brown one makes its

presence felt in North and West. Horlicks, by far the market leader in the white health

food drink category, had to be relaunched last year with the new positioning as a drink

for youth against the earlier thrust on convalescents, and other brands in the white

drinks category also appear to be facing a tough market.

The Smithkline Beecham Consumer Healthcare spokesperson could not be reached for

comments.

Amul Shakti is being positioned as a milk food that has "real milk for real nourishment"

and GCMMF says it will provide the brand mass media support to create consumer

awareness.

Amul Shakti, unlike other wheat and barley based drinks, is a unique combination of

Milk and natural goodness of Kesar (Saffron) & Almond. Amul Shakti, a complete food

in a drink, is ideally balanced for the nourishment and health of the entire family.

Amul Shakti, contains more of Milk Protein and Milk Calcium which are easily

digested and assimilated in the body.

Milk enriched with Kesar (Saffron) and Almond is consumed everywhere in India, as

the therapeutic and nutritional values of Kesar (Saffron) and Almond are known to

everyone. Kesar (Saffron) acts on vitiating factors in the body like kapha, pitta and vata

in different ways and also acts as an anti-oxidant

Milk enriched with Kesar (Saffron) and Almond is consumed everywhere in India, as

the therapeutic and nutritional values of Kesar (Saffron) and Almond are known to

44
everyone. Kesar (Saffron) acts on vitiating factors in the body like kapha, pitta and

vata in different ways and also acts as an anti-oxidant.

According to Ayurveda and Unani schools of medicine, Kesar (Saffron) is used for

curing respiratory problems, to treat acne and skin diseases, for treatment of enlarged

liver and infection of urinary bladder and kidneys, for strengthening the heart and as a

refrigerant for the brain, for treating diabetic patients and as an anti-depressant and

relaxant.

Almonds, seeds rich in protein and essential amino acids, are looked upon as

nourishment, and not merely as a treat. During the summers, a cool almond drink is

considered as sustaining as a meal. Mothers with school-going children make it a point

to serve this drink to them, as it is known to nourish the brain.Almonds are considered

to be anti-oxidants and good for skin care. It's useful in alleviating lungs and chest

congestion. Daily intake of Almonds can reduce coronary heart disease, protect against

colon cancer, reduce cholesterol levels, control diabetes and help in reducing weight.

Amul Shakti also contains essential Amino Acids, Vitamins, Minerals and

Micronutrients that are needed for building up internal immunity and maintaining good

health. This unique formulation of Amul Shakti also helps in maintaining intelligence

and mental power.

Amul Shakti twice a day would meet the extra nourishment ideally required by

studying Children, Sportspersons, Busy Executives, Travelers, the Aged,

Convalescents, the expecting and lactating mothers.

The product is available in three flavors:

45
• Kesar-Almond

• Malt

• Chocolate

And in the following packs:

• Glass Jars - 500 gm & 200 gm

• Refill Boxes - 500 gm & 200 gm

• Pouches - 50 gm & 25 gm

And in the following prices:

• 500g Jar - Rs.110/-

• 500g Refill - Rs.100/-

• 200g Jar - Rs.50/-

• 200g Refill - Rs.45/-

• 50g Pouch - Rs.10/-

6.1 CONSUMER SURVEY

1. Question: do you prefer health food drink for your child?

Preference

46
 Respondent Percent Valid Percent
Yes 400 100.0 100.0

Table-3 Preference of health drink for child.

100

80
60
40

20
0
Percent

Fig-1 Preference of health drink for child.

Interpretation: The data has only been collected from those people who prefer health

food drink for their children. Hence the graph shows sent percent.

2. Question: In what season do you prefer health food drink?

Season

Frequency Percent Valid Percent

47
Summer 16 4.0 4.0

Winter 263 65.5 65.5

Spring 7 1.8 1.8

Autumn 6 1.7 1.7

All 108 27.0 27.0

Table-4 Preference of health food in seasons.

70 65.8
60
sumer
50
winter
percentage

40
27 spring
30
autumn
20
all
10 4 1.8 1.5
0
seasons

Fig-2 Preference of health food in seasons.

Interpretation: We can say that most of the consumers prefer health food drink in the

month of winter.

3 Question: How many health food drinks are you aware of?

Awareness

Frequency Percent Valid Percent

Valid Amul 81 20.2 20.2
Others 319 79.8 79.8

48
 Total 400 100.0 100.0

Table-5 Awareness of health food drinks.

amul
20%

amul
others

others
80%

Fig-3 Awareness of health food drinks.

Interpretation: The above graph shows that only 20% of consumers know about Amul

shakti whereas large 80% go for other brands like Horlicks, Bournvita, Complan, Milo,

Boost etc.

4. Question: Would you like to prefer health food drink from Amul?

Amul drink

Frequency Percent Valid Percent

Valid yes 290 72.5 72.5
no 110 27.5 27.5
Total 400 100.0 100.0

Table-6 Like to prefer food drink from amul.

49
 80 72.5

60
yes
percentage

40 27.5 no
20

0
1
preference

Fig-4 Like to prefer food drink from amul.

Interpretation: The graph shows that 72.5% of consumers would prefer a health food

drink from amul whereas 27.5% would not prefer. This shows that people would just

prefer due to the brand name amul.

5. Question: From where did you get the information about the product?

Information

Frequency Percent Valid Percent

Valid Television 362 90.5 90.5
newspaper 18 4.5 4.5
Retailers 8 2.0 2.0
Others 12 3.0 3.0
Total 400 100.0 100.0

Table-7 Source of information about product.

50
 100 90.5
80
60
percentage
40
20 4.5 2 3
0
television new spaper retailors others
inform ation about product

Fig-5 Source of information about product.

Interpretation: The graph shows that 90.5% consumers get the information about the

product from television, 4.5% from newspaper, 2% from retailers and 3% from others.

This clearly shows that the consumer is very much affected by television which is the

most powerful medium of reaching the consumers.

6. Question: Does Ads. Affects the purchase decision?

Advertisement

Frequency Percent Valid Percent

Valid Yes 371 92.7 92.7
No 29 7.3 7.3
Total 400 100.0 100.0

Table-8 Effect of adds on purchase.

51
 no
7%

yes
no

yes
93%

Fig-6 Effect of adds on purchase.

Interpretation: The graph shows that 93% of the consumer does get affected by the

advertisements. This shows that advertisements are the best way of creating awareness

among the consumers.

7. Question: Is the decision affected by the children?

Children

Frequency Percent Valid Percent

Valid yes 331 82.7 82.7
no 69 17.3 17.3
Total 400 100.0 100.0

Table-9 Involvement of children in decisions.

52
 82.7

17.3
yes
no

1
child affect

Fig-7 Involvement of children in decisions.

Interpretation: The graph shows that 82.7% consumers say that the decision of buying

health food drink is affected by children whereas 17.3% say it is not.

8. Question: What do you look for any health?

Priority

Frequency Percent Valid Percent

Valid Taste 101 25.3 25.3
Nutrition 24 6.0 6.0
Price 93 23.3 23.3
Package 11 2.8 2.8
Brand 171 42.6 42.6
Total 400 100.0 100.0

Table-10 Customers preference for any health product.

53
 taste
25% taste
brand
nutrition
43%
price
nutrition
6% package
package price brand
3% 23%

Fig-8 Customers preference for any health product.

Interpretation: The graph shows that 25% consumers look for taste,6% look for

nutritional value,23% look for price,3% for packaging and 43% go for brand name.

This interprets that brand plays a vital role in selection of any health food drink.

9. Question: Are you aware of the contents of your health drink?

Contents

Frequency Percent Valid Percent

Valid yes 226 56.5 56.5
no 174 43.5 43.5
Total 400 100.0 100.0

Table-11 Awareness of the contents of health drinks.

no
yes
44%
yes no
56%

54
Fig-9 Awareness of the contents of health drinks.

Interpretation: The graph shows that 56% of consumers are aware of the contents of

their health food drink whereas 44% are not aware; hence this shows that consumers are

smart enough and know about the product which they are using whereas the other half

are ignorant.

10. Question: Are you aware of any health drink containing Almond & Kesar?

Alternative

Frequency Percent Valid Percent

Valid yes 128 32.0 32.0
no 272 68.0 68.0
Total 400 100.0 100.0

Table-12 Awareness of any health drinks containing almond and kesar.

no 68
health drink
almond and
containing
awareness of

kesar

yes 32

0 20 40 60 80
percentage

Fig-10 Awareness of any health drinks containing almond and kesar.

55
Interpretation: The graph shows that 68% of people are not aware of any health drink

containing almond and kesar whereas 32% know; hence there is still need to make

consumers aware of Amul.

6.2 AMUL SHAKTI: RETAILER SURVEY

1. Question: Which of the health drink are sold most?

Max sales

Frequency Percent Valid Percent

Valid amul shakti 3 3.0 3.0
Horlicks 38 38.0 38.0
Bournvita 30 30.0 30.0
Milo 9 9.0 9.0
Complain 12 12.0 12.0
DELITE 2 2.0 2.0
Boost 6 6.0 6.0
Total 100 100.0 100.0

Table-13 Data of most selling health drinks.

56
 38
40
30 amul shakti
30
percentage
horlicks
20 bournvita
12
9 milo
10 6
3 2 complan
0 DELITE
1 boost
maximum sales

Fig-11 Graphical presentation of most selling health drinks.

interpretation: The graph shows that horlicks has the highest selling of 38%,followed

by bournvita with 30%,complan with 12%,milo with 9%,boost with 6%,amul shakti

with 3% and delite with 2%.these figure clearly shows the poor sales of amul shakti .

2. Question : What do the consumer look for?

Preference

Frequency Percent Valid Percent

Valid Taste 16 16.0 16.0
Nutrition 1 1.0 1.0
Price 6 6.0 6.0
brand name 77 77.0 77.0
Total 100 100.0 100.0

Table-14 Preference of consumer.

57
 100
77
percentage 80
60
40
16
20 1 6
0
taste nutrition price brand name
consumer preference

Fig-12 Preference of consumer.

interpretation: The graph shows that according to the retailers 77% of consumers go

for brand name, 16% fat taste,6% for price and 1% for nutrition hence showing that

consumers are brand conscious(those brands which they have been using from times)

3. Question: Do the consumer look for any special offer?

Offers

Frequency Percent Valid Percent

Valid yes 83 83.0 83.0
no 17 17.0 17.0
Total 100 100.0 100.0

Table-15 Do the consumer looking for any special offer.

no
17%

yes
no

yes
83%

58
Fig-13 Do the consumer looking for any special offer.

Interpretation: The graph shows that 83% consumers look for special offers before

buying whereas only 17% do not go for any such offers.

4. Question: Does the sales margin plays the vital role?

Margin

Frequency Percent Valid Percent

Valid yes 67 67.0 67.0
no 33 33.0 33.0
Total 100 100.0 100.0

Table-16 Role of sales margin.

no
33%
yes
no
yes
67%

Fig-14 Role of sales margin.

Interpretation: The graph shows that 67% retailers say that sales margin does play a

vital role whereas 33% does not agree with this.

59
5. Question: What quantity of Amul Shakti do you sell in a month?

Quantity

Frequency Percent Valid Percent

Valid none 96 96.0 96.0
1kg 3 3.0 3.0
2kg 1 1.0 1.0
Total 100 100.0 100.0

Table-17 Sale of amul shakti in a month.

96
100
80
60
percentage
40
20 3 1
0
none 1kg 2kg
quantity sold

Fig-15 Sale of amul shakti in a month.

Interpretation: The graph shows that Amul shakti has got very less demand as

compared to others .

60
6.3 SWOT ANALYSIS OF AMUL SHAKTI (Health Drink)

Strength

1. The biggest strength of the product is brand name of the company attached with the

product.

2. The product is rich in its content and variety.

3. It is the first milk-based health drink.

4. Amul-shakti is available in different packs, even in of 25g.

Weakness

1. Not properly distributed throughout the area.

2. The taste is not so good.

3. Proper advertisement of the product has not been done.

4. Awareness of the product is very less.

Opportunity

1. The company should highlight its USP of being milk-based health drink. As all other

health drink available in the market are malt-based.

2. Not only children and women, men&old age people should be targeted as a

voluminous market.

3. Should utilize its wide network and distribution channel.

Threats

1. Cut throat competition from other players like Horlicks, Complan, Milo, Boost and

Bournvita.

2. Heavy advertisement and margin scale from other players.

61
6.4 SWOT ANALYSIS OF AMUL MASTI DAHI (Comparative) Mother Diary

Strengths

 Acquired by National Dairy Development Board (NDDB).

 Market Position: - Presence in every small and big locality and Area.

 Strengthening Point booth of MD all over Delhi. In most suitable location.

 Existence in Delhi Market from the beginning of Polly Pack Market.

 Trust of people on the name.

 Presence of its Officers on making a phone call on the Helpline No.

Weaknesses

 It is not pure but a mixture of powder. Taste is not natural.

 Current Share is declining..

Opportunity: -

 Diversification Launch it in other dairy products: - ice cream, Butter, and Cheese

 Effort of Joint Venture with other state Milk Federation. Including Milma (Kerala)

Vijaya (Andhra Pradesh) has already signed agreement.

Threat: -

 Establish its Dairy Brands in the Western India. (High competition)

62
 CHAPTER-7

FINDINGS

1. No or very less awareness of the product.

2. The company does not entertain replacement of old or expired packs.

3. Proper display or retail advertisement are not encouraged.

4. Taste is not so good.

5. No scheme is being attached with the product neither small packs or sample packs

are available.

63
 CHAPTER-8

SCOPE AND LIMITATION OF STUDY

Scope of the study

 The study provides the knowledge of GCMMF Ltd.

 The study helps to learn the work culture in and around the organization

 The study helps a lot to know about the retailer interest

 The study provides the first hand information regarding the retailer satisfaction

Limitation of the study

 Compare the market potential of dehradun the sample size of 100 retailers in

case of AMUL SHAKTI & 200 in case of AMUL MASTI DAHI is relatively small.

This doesn’t represent the true universe

 A population census could not be done which perhaps would have given zero

“deviation error” from the actual

 Some of the retailers were hesitant in filling up the questionnaire

 Few were not serious and hostile enough to fill up the questionnaire thus their

response may not represent the true picture

 Some discrepancies are liable to occur due to random sampling adopted for the

study.

64
 CHAPTER-9

RECOMMENDATIONS

 Advertisements:

This is the most important factor that affects both the retailers as well as the consumers;

amul has to take aggressive advertising centered specially at Delhi market. The retailers

have clearly stated that they would first see the demand of the product coupled with

advertising support these only they would be interested in stocking amul dahi

 Replacement policy

Amul is already blamed for poor replacement policy, it has to give certain kind of

replacement policy to make its product more acceptable to the retailers.

 Quality, taste and demand

Big retailers and consumers said that they would keep the product or consume the

product only when the product is fresh, of current stock, the taste is good and there is no

sign of sourness.

 Proper distribution

Nestle and mother dairy has very sound distribution system. They give their retailers a

lot of monetary benefits through schemes, delivery on time. The retailers also take care

of the product.

65
 Schemes

The company should never ignore this part since this is the most important thing which

attracts the retailers and they are inclined towards keeping it and amul is not

concentrating on this part, for e.g. they can provide the retailer schemes like giving

extra packs with the carat or giving 3 to 4% extra on the usual.

 Special attention

This is being said by most of the retailers that amul does not have any separate delivery

vans for distribution as in case of Nestle, Mother dairy,Paras or Gopaljee. It comes with

the milk van and there is no specific day for its delivery i.e the retailer does not have

any idea when it would come.

66
 CHAPTER-10

CONCLUSION

On complete analysis of the Questionnaire and the Feedback form, it is concluded that

“Amul Shakti & Masti Dahi” has good potential in the market but lack proper

distribution and marketing. Masti dahi being so good in quality, due to improper

distribution and ill handling get perished and sells less especially in dehradun.The

position of both the product can be uplifted in the market implementing the above

recommendations because a good quality can beat anything.

Amul has a good Reputation and name because of Existence in the market for so many

years especially through the name of “Amul Butter”.

“Amul Milk” has an excellent taste. And its future path seems to be bright.

This is done through observation of the Different Area Distributors of Other Brands and

by knowing the per shop share of different brands like – How much Health food drink

and curds is taken by one shop of different brands, i.e. Amul, Mother Dairy, Paras,

Horlicks, Milo etc?

This is done through survey. It helps in understanding the market sales of the product

which we are assigned to.

Data of Different Brands, their MRP, their Schemes & offerings and their margins have

been collected.

 This all helps in understanding the market current position.

67
 Competitor marketing strategies

The nearest competitors of Amul Masti Dahi in the Market are Paras, Gopaljee on one

side and NDDB’s Mother Dairy on the other side whereas in case of Amul Shakti

Horlicks, Bournvita, Milo are the nearest competitors.

Paras and Gopaljee are milk brands, which are lower in quality, but they are giving

higher margin to the retailers and lot of schemes to retailers.

A paras is successful in the smaller area lower income segment area. The person behind

it is that lower income consumer who is not brand conscious but price sensitive. Most

of the retailers are aware of this fact and for higher margins they get ready to sell these

local brands whereas a good society vendor could not afford to be cheap brand

 Mother Dairy share is all most same as of Amul

 A paras is also in a good grip because of extra margins and schemes.

Both are strong in small or lower income segment class

Those Areas where retailer is most conscious about margins.

NDDB is in joining the name of Mother dairy, which is in Delhi from since 1965.

NDDB’s greater strength area is its name and quality.

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 CHAPTER-11

APPENDIX

AMUL SHAKTI

Questionnaire : Consumer Perception.

Note : Plese tick mark (√) in the square where necessary.

1) Name:

2) Do you prefer health drinks for your child?

Yes No

3) In what season do you prefer health food drink?

Summer winter spring

Autumn all

4) How many health drinks are you aware of?

Amul shakti others

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 5) From where did you get the information about the product?

Advertisement Peers Retailers Friends

6) Do advertisements affect the purchase decision of any health drink?

Yes No

7) Is the decision affected by the children?

Yes No

8) What do you look for in any health drink?

Taste Nutrition Price Packaging

Wheat based Milk based

9) Are you aware of the contents of your health drink?

Yes No

10) Are you aware of any health drink containing Almond & Kesar?

Yes No

Retailers survey

1) Name & address of the shop:

2) Which of the health drinks are sold most?

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Amul shakti Horlicks Bornvita Milo

Complan Delite Boost

(Note: Rank from 1-7 according to sales)

3) What do the consumer look for in any health drink?

Taste Nutrition Price Packaging

4) Does the consumer look for any special offers?

Yes No

5) Does the sales margin of any health drink play a vital role of your part.

Yes No

6) What quantity of Amul Shakti do you sell in a month?

1kg 2kg none

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BIBLIOGRAPHY

Websites

 www.amul.com

 www.nddb.org

 www.indiainfoline.com

 www.businessline.com

 www.amulb2b.com

 www.motherdairy.com

 www.easiaweek.com

 www.quimpro.com

 www.businessworldindia.com

Magazines

 4 P’s

 Brand Equity (Economic Times, Jan , 2005 )

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