Beruflich Dokumente
Kultur Dokumente
By
Bhavin Agrawal (02)
Nitin Madhavi (28)
Saurabh Parmar (38)
Som-Lalit Institute of Management Studies
Ahmedabad
Preface
Business environments are becoming more and more complex with the passage of time. To
understand and deal with such riddle phenomena, one needs a lot of energy and knowledge. So
business education has become an evolving science, which helps to solve the business problems.
Academic education provides a general knowledge about business decisions and policies.
This internship, as an integral part of MBA programme, provides the opportunity to peep into
real business. It enables us to evaluate and understand the practical application of all the terms
and techniques that we have studied during our course work.
I was assigned to complete my internship comprising practical work of 2 months, at Gujarat Cooperative Milk Marketing Federation Ltd., Anand. In this internship report I have tried my level
best to explain each and every significant aspect of the market situation of the product that was
offered to me for market research and about Amuls international reach. Gujarat Co-operative
Milk Marketing Federation Ltd. is Indias largest dairy food product marketing organisation and
Amul is the largest production organisation. GCMMF is getting APEDA awards since last 11
years. Amul is providing high quality goods at reasonable prices. GCMMF Ltd. is a co-operate
body. GCMMF provides a facility of sales and marketing to the thirteen plants of Amul. All the
export activity includes documentation and it is accomplished by the GCMMF Ltd.GCMMF
provides good knowledge of each arena including practical knowledge.
Acknowledgement
A summer project is a golden opportunity for learning and self-development. I feel great pleasure
in submitting this report as a part of practical study in the professional course of management. I
am very thankful to GCMMF Ltd., Anand, who gave me such an opportunity to work out for
project on market research and international marketing.
I wish to express my indebted gratitude and special thanks to Mr Bharat Patel (Branch
Manager) and Mr. Keyur Trivedi (Sales Officer) who, in spite of being extraordinarily busy
with their duties, took time out to hear, guide and keep me on the correct path and allowing me to
carry out my industrial project work at their esteemed organization.
The research paper required intensive primary information from reliable sources. GCMMF
employees are my main source of information, without whose valuable insights the report would
have been incomplete. I would therefore like to thank them for giving me their valuable time and
information
I express my deepest thanks to Prof. Neha patel for her guidance and support. She helped all the
time when I needed and she gave right direction towards completion of project.
Executive Summary
In todays competitive world, while entering in the market it is very necessary to have good
knowledge of the potential of a particular market. We should have the information regarding the
activities of competitors existing in the market so that we can plan our each activity
according to that. It is also necessary to retain the existing customers apart from
attracting new customers. The Project is concerned with the market research of
understanding the distribution system of Amul IceCreams and also understanding
the relationship between Retailer and Distributor which plays and inevitable part in
the distribution channel.
Table of contents
Preface
Acknowledgement
Executive Summary
Introduction
Birth of Amul
Introduction of GCMMF
GCMMF overview
11
Research objective
17
18
21
21
Product specification
26
Distribution Network
29
30
Project at GCMMF
36
Dist. Channel of Amul ice cream
Margin break up in retail outlets
Objectives
37
38
38
44
45
47
Questionnaire
48
Analysis of survey
56
Conclusion
58
59
It all began when milk became a symbol of protest. It was Found in 1946 to stop the exploitation
by middlemen and was Inspired by the freedom movement
The seeds of this unusual saga were sown more than 65 years back in Anand, a small town in the
state of Gujarat in western India. The exploitative trade practices followed by the local trade
cartel triggered off the cooperative movement. Angered by unfair and manipulative practices
followed by the trade, the farmers of the district approached the great Indian patriot Sardar
Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own cooperative, which would have procurement, processing and marketing under their control.
In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel.
Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and
Tribhuvandas Patel, they formed their own cooperative in 1946.
This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just
two village dairy co-operative societies and 247 litres of milk and is today better known as Amul
Dairy. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas
Patel, the founder Chairman and the committed professionalism of Dr Verghese Kurien, who was
entrusted the task of running the dairy from 1950.
The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should
become the basis of a National Dairy Development policy. He understood that the success of
Amul could be attributed to four important factors. The farmers owned the dairy, their elected
representatives managed the village societies and the district union, they employed professionals
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to operate the dairy and manage its business. Most importantly, the co-operatives were sensitive
to the needs of farmers and responsive to their demands.
At his instance in 1965, the National Dairy Development Board was set up with the basic
objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its
Chairman and asked to replicate this model throughout the country.
Introduction of GCMMF
Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product
marketing organisation with annual turnover (2013-14) US$ 3.0 billion. Its daily milk
procurement is approx 13.18 million ltrs. per day from 17,025 village milk cooperative societies,
17 member unions covering 31 districts, and 3.23 million milk producer members.
It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL',
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. Its success has not
only been emulated in India but serves as a model for rest of the World. It is the exclusive
marketing organisation of 'Amul' and 'Sagar' branded products. It operates through 53 Sales
Offices and has a dealer network of 10000 dealers and 10 lakh retailers, one of the largest such
networks in India. Its product range comprises milk, milk powder, health beverages, ghee, butter,
cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc.
GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House"
status. Many of their products are available in USA, Gulf Countries, Singapore, The Philippines,
Japan, China and Australia. GCMMF has received the APEDA Award from Government of India
for Excellence in Dairy Product Exports for the last 13 years. For the year 2009-10, GCMMF has
been awarded "Golden Trophy" for its outstanding export performance and contribution in dairy
products sector by APEDA. In 2013-14, GCMMF took giant strides in expanding its presence in
International markets. Amuls presence on Global Dairy Trade (GDT) platform in which only the
top six dairy players of the world sell their products, has earned respect and recognition across
the world. By selling milk powders on GDT, GCMMF could not only realize better prices as per
market demand but it also firmly established Amul in the league of top dairy players in world
trade.
For its consistent adherence to quality, customer focus and dependability, GCMMF has received
numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality
Award in1999 in Best of All Category. In 2002 GCMMF bagged India's Most Respected
Company Award instituted by Business World. In 2003, GCMMF was awarded the The IMC
Ramkrishna Bajaj National Quality Award - 2003 for adopting noteworthy quality management
practices for logistics and procurement. GCMMF is the first and only Indian organisation to win
topmost International Dairy Federation Marketing Award for probiotic ice cream launch in 2007.
For the innovations, GCMMF has received AIMA-RK Swamy High Performance brand award
2013 and CNN-IBN Innovating for better tomorrow award in 2014. For the tree plantation
activity GCMMF has received seven consecutive Good Green Governance award from Srishti
during 2007 to 2013.
The Amul brand is not only a product, but also a movement. It is in one way, the representation
of the economic freedom of farmers. It has given farmers the courage to dream, to hope, to live.
Beginning with liquid milk, GCMMF enhanced the products mix through the progressive
addition of higher value products while maintaining the desired growth in existing products.
Despite, competition in the high value dairy product segment from firms like Hindustan Lever,
Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which Amul
introduces its products is consistent with the core philosophy of providing milk at a basic,
affordable price.
Amuls product range include milk, butter, ghee, cheese, curd, chocolate, ice cream, cream,
srikhand, paneer, gulab jamun, basundi, Nutramul brand and others. In January 2006, Amul plans
to launch Indias first sports drink Stamina, which will be competing with Coca Colas
PowderAde and PespsiCos Gatorade.
In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product
offerings in the milk product segment. Other Amul brands are Amul Kool, ready to drink coffee
and Indias first sports drink Stamina.
Amuls sugar-free Pro-Biotic Ice cream won THE INTERNATIONAL DAIRY FEDERATION
MARKETING AWARD for 2007.
Mascot:
Since 1967 Amuls product mascot has been the very recognizable Amul Baby (a chubby
butter girl dressed in polka dotted dress) showing up on hoardings and product wrapper with the
equally recognizable tagline Utterly Butterly Delicious Amul. The mascot was first used for
Amul butter. But in recent years in the second wave of ad campaign for Amul products, she ahs
been also used for other products like ghee and milk.
Currently Amul is in the process of getting the Amul Girl registered as the oldest ad capaign in
the Gunniess Book of World Records. Although there seems to be no competition for this
mascot, Amul Corporation is still doing further research to confirm their claim.
10
GCMMF - An Overview
Year of Establishment
Members
1973
17,025
4.79 billion litres
Turnover - (2013-14)
11
Product Range
12
Mission
GCMMF endeavour to satisfy the taste & nutritional requirements of the customers of the world,
through excellence in marketing by their committed team. Through co-operative networking,
they are committed to offering quality products that provide best value for money.
Vision
GCMMF will be an outstanding marketing organization, with specialization in marketing of food
and dairy products both fresh and long life with customer focus and IT integrated. The
network would consist of over 100 offices, 7500 stockists covering at least every Taluka . Head
quarter servicing nearly 10 lakh outlets with a turnover of Rs.10,000 Cr. and serving several cooperatives. GCMMF shall also create markets for its products in neighbouring countries.
13
Awards
Amul won AIMA High Performance Brand Award-2013 for brand Amul.
GCMMF won the SAP Award for Customer Excellence (SAPACE) 2013 under the
category of "Best Run Award in Finance"
14
Arranging transportation of milk and milk products from the milk unions to the market.
15
Creating and maintaining a brand for marketing of milk and milk products (brand
building).
Providing support services to the milk unions and members like technical inputs,
management support and advisory services.
Pooling surplus milk from the milk unions and supplying it to deficit milk unions.
Establish feeder-balancing dairy plants for processing the surplus milk of the milk unions.
Arranging for common purchase of raw materials used in manufacture/ packing of milk
products.
Decide on the prices of milk and milk products to be paid to milk unions.
Decide on the products to be manufactured at various milk unions (product mix) and
capacity required for the same.
Arranging finance for the milk unions and providing them technical know-how.
Research Objective :
1. To increase the sales of Amul Ice cream
2. To find out the competitive edge of the company over the competitiors
3. Study the distribution channel
4. To analyze the retailers perception about Amul through retailers survey
5. To understand the relationship between the Distributors and retailers
16
17
Introduction to Industry
India is considered to be the largest milk producer across the globe and accounts for one fifth of the
total global milk production. It constitutes of different sub segments of which ice cream has seen
strong growth in the market. The Indian ice-cream sector is a competitive market with strong
competition from the unorganized sector. At a time when input prices are rising and branded players
are forced to increase prices of their products, unorganized or local players indulge in low quality
ingredients and offer products at cheaper prices. However, the sector is still on a growth path
as constant innovation presents products catering to the varied needs of customers.
The basic steps in the manufacturing of ice cream are generally, blending the ingredients,
pasteurization, homogenization, aging the mix, freezing, and hardening. During the
hardening process, the ice cream mixture is incorporated with air. This is done to make
the product light and creamy. This is necessary as without air, ice cream would be
like frozen ice. Now the ice cream can contain a considerable quantity of air, even up to
half of its volume. This perhaps makes ice cream a business with high profit margin.
An ice cream mix (consisting of milk, emulsifier, and sugar and so on) costs about Rs.
60-65 a litre. And in one litre you can add up to one litre of air. Therefore, per litre the
mix would cost you approximately Rs 32. If you take a 150 ml cup, you can make 13
cups of ice cream from one litre of mixture. Calculating on that basis, the cost per cup
comes to about Rs 5. Now add to that Rs 5 worth of packaging cost, electricity, labour,
transportation, advertisement cost etc. It comes to approximately Rs. 10 per cup.
Depending on the variety, the profit margin therefore can go up to even 100%. While for bigger
players, the distribution and advertising costs eats into the profit margins, for smaller players, it
is the volumes that matter.
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The cost for setting up a small scale ice cream plant could come to approximately Rs. 10 Lakh,
including the cost of an ice cream plant, labour (3-4), storage freezers, and so on. This price is not
including the land cost. Of late, a number of players who have entered the segment are playing on
innovative aspects, for example, natural flavours made from fruits. Some players like Mumbaibased Space Dotz are also coming up with newer technology. A noteworthy innovation was the
pro-biotic and low fat ice cream bought into the market by Amul.
Indian Ice Cream market can be segmented in three different ways, namely on the
basis of flavours; on the basis of stock keeping units / packaging and on the basis
of consumer segments.
Types
On the basis of flavours the market today has a number of flavours like vanilla, strawberry,
chocolate, mango, butterscotch and a number of fruit flavours, dry fruit flavours traditional
flavours like Kesar Pista, Kaju Draksh etc. The market is totally dominated by Vanilla, Butter
Scotch and Chocolate, which together account for more than 70% of the market followed by
butterscotch and other fruit flavours.
The Challenges
There are several challenges that affect the industry adversely. The industry players not only face
competition from their competitors, but also from other like foods. Though changing, consumers still
consider ice cream as a dessert and a side item.
Moreover, of the ice cream consumption in India, nearly 60% is accounted to by three flavours of
vanilla, strawberry and chocolate. And to be on the safer side, major players tend play around these
flavours only. For big players, regional competition from smaller players is another major issue.
Another major problem faced by the industry players, especially while expansion, is poor
infrastructure such lack of cold storage and in case of rural penetration, even erratic
power supply becomes an issue. This is especially true for big players.
Besides the presence of other players, another hurdle is the high rent charged for floor
space, especially in malls. This also becomes a problem when they try to expand.
The Indian Ice cream sector, as mentioned earlier, is divided into branded segment and grey market
segment (which are basically local manufacturers).
Considering the branded segment, the market is dominated by companies like Amul , Kwality
Walls (HUL), Vadilal, Mother Dairy, Cream Bell and other branded local manufacturers.
21
22
23
Amul Ice cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted of
impulse products like sticks, cones, cups as well as take home packs and
institutional/catering packs. Amul ice cream was launched on the platform of Real Milk. Real
Ice cream given that it is a milk company and the wholesomeness of its products gives it a
competitive advantage.
In 1997, Amul Ice creams entered Mumbai followed by Chennai in 1998 and Kolkata
and Delhi in 2002. Nationally it was rolled out across the country in 1999.
It has combated competition like Walls, Mother Dairy and achieved the No 1 position in
the country. This position was achieved in 2001 and it has continued to remain at the top.
Today the market share of Amul ice cream is 40% share against the 14% market share of HUL,
thus making it 3 times larger than its closest competitor.
Not only has it grown at a phenomenal rate but has added a vast variety of flavours to its ever
growing range. Currently it offers a selection of 220 products. Amul has always brought newness
in its products and the same applies for ice creams.
In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice Cream,
which was a first in India. This range of SUGAR FREE, LOW FAT Diabetic Delight & ProLife
Probiotic Wellness Ice Cream is created for the health conscious.
Amuls entry into ice creams is regarded as successful due to the large market share it was able
to capture within a short period of time - due to price differential, quality of products and of
course the brand name.
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Cone
Cup
Plastic
Container
Stick
70 ml, 60 ml, 40 ml
Take Home
Product Features
Made from Fresh Milk (Real Milk, Real Ice cream): No added vegetable oil, hence no
Frozen Dessert.
No Differentiation in Quality Standards of Consumer & Catering/ Institutional
Packs: Stringent Standards than Specified by PFA & BIS for more fat and less overrun (less air)
to give creamier feeling.
Best Ingredients: Fresh milk, superior fruits & nuts.
Manufacturing Facility: Made in ISO & HACCP certified state of the art plants with
stringent hygienic standards to ensure food safety.
Prolife & SUGAR FREE Probiotic: The first company in India to introduce probiotics
in ice cream (IDF Award for Best Nutrimarketing Category, Oct '07) & SUGAR FREE Probiotic
products.
Product Application
Individual consumption (impulse), Take home, Catering at parties, marriages etc. celebration and
Recipe preparation for sundaes, shakes, etc.
Available in (Segments/Markets)
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More than 800 cities across India at Amul Preferred Outlets, Amul Scooping Parlours, retail
shops, vending push carts, hotels, restaurants, canteens, caterers etc.
Product Specifications
Composition
Fat :13%
Protein :4%
Added Sugar :15%
Also, added stabilizers, emulsifiers, colors, flavours. (Nuts, fruits, fruit pulp, topping
etc. depending on flavor of ice cream).
Nutritional Information*
Energy, kcal
115.0
64.0
Total Fat, g
7.1
Saturated fat,g
4.9
Cholesterol, mg
18.9
Total Carbohydrate, g
10.7
Nutritional Information
Added Sugar, g
8.0
Protein, g
2.0
Calcium, mg
26
95.0
Shelf Life
Ice Candies, Plain flavor (No added nut, fruit, fruit pulp, topping etc.) - 12 Months
Nuts/ Fruits Flavour - 6 Months
Ice Cream Cake - 4 Months
(Please see individual pack for shelf life)
Storage condition
-18C or below
27
AMUL Ice cream is among the Asiaa top 10 Ice cream brands.
In a short span of 6 years, Amul Ice Cream has become No.1 Ice Cream brand in the
country. Amul ice cream is now the only national brand and other Ice Cream brands are
regional.
Our position in the market: Amul No.1 brand in India: Amul has achieved a market
share of 38% (4.5 times larger than nearest competitor).
The punch line for Amul Ice Cream is Real Milk Real Ice Cream as we offer the best quality
product made of real milk and milk fats and not vegetable oil (frozen dessert). Recipe used for
Amul Ice Cream is on the line of Super Premium Ice Cream i.e. 35% creamier and tastier than
any other ice cream available in India.
Best Ingredients: All ingredients used in our ice creams are of the best quality eg.
Ingredient
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AMUL
Mango
Alphonso
Mango
Draksh
(Raisins)
Afghani
Draksh
Milk
Fresh Milk
Particulars
Legal
requirement
(As per BIS)
AMUL
standard
Coliform /
gm
<90 / gm
Nil coliform
count
SPC / gm
250000 / gm
We try to keep
10000/gm or
less
Competitors
lacs / gm to
anything
State of the Art Manufacturing Facilities: Amul Ice Cream is manufactured in state of
the art plants certified by ISO & HACCP.
Probiotic Range: We are the first company in the India to introduce probiotics in ice
cream, for which IDF (International Dairy Federation) has awarded GCMMF the Best
Innovation in Nutri Marketing Category.
SUGAR FREE Range: We have introduced SUGAR FREE Ice Cream in Bulk Pack to
cater this segment. We are the first who made this ice-cream especially for diabetic
Patient Who feel Guilt while others are eating Ice-cream in Marriages.
Other Milk Products: We have also Milk and Milk products which you can used for
making sweets and other recipes.
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o Amul Milk : UHT Milk / Fresh Milk in 6 litre pack (In selected Markets)
o Amul Butter: Available in Blister Pack / Institution Pack.
o Amul Malai Paneer: Frozen as well as Fresh Paneer.
o Amul Kool Flavoured Milk: 200ml Bottle and 1 litre Tetra Pack.
o Amul Cheese : Pizza Cheese and Process Cheese
o Amul Masti Dahi : in 5 Kg Pack
o Amul Ghee: 15 litre tin
o Amul Sweetened Condense Milk.
o Amul Masti Butter Milk
o Amul Milk Powders (Skimmed / Amulya)
o Amul UHT Cream
o Amul Mithai (Shrikhand / Gulabjamun/ Laddoo)
DISTRIBUTION NETWORK:
Amul have efficient distribution network. It follows downstream channel of distribution.
middlemen
Milk Producers (farmers) control procurement, processing and marketing
Professional management
In Mumbai, Amul has its warehouse in Andheri. From warehouse stock goes to different
distributors. And then distributor supplies stocks to retailers, caterers, hotels etc., and then
finally stock reaches to the end consumer.
30
31
Swirl's is a concept of ice cream parlours from Kwality Walls that provides
fresh, fun and a unique 'made-for-me' consumer experience. It is for those
on the move, who want to enjoy them and wish to indulge. They are younghearted temptation succumbers who are willing to pay a little extra for that
special experience, that special moment.
The first store was incepted in 1994 in Netherlands, and since has been successfully launched
across the globe. There are over 2000 Heart brand stores across the globe. In India, Swirl's has
been operational since 2004 with the opening of its 1st outlet in NCR region, and thus began its
journey of delighting consumers in India. Swirl's parlours with its great consumer experience,
strategic locations and viable business model had made it an unique and profitable venture for its
franchisees.
FRANCHISE SPECIFICS:
USP:
Lots of varieties like Cornetto, Feast
A treat for every occasion
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Positioning:
Product range
they have a huge range of products including sugarless, blockbuster, candies, novelties, sundaes,
topo cones, cools ups, roll cuts, ice cream cakes, family packs, ice-cream shakes, ice-cream floats
etc. they have more than 65+ flavours.
Price range:
Rs.25 Rs.55 for a scoop of ice-cream.
33
Thursday temptation an offer where you get an ice-cream free on purchase of one ice-
FACILITIES:
There are HAV FUNN PARLOURS which serve ice-creams and snacks like chana puri,
samosa, fries etc
34
Products:
FESTIVE SCHEMES:
35
36
Project at GCMMF:
The project undertaken has an objective of increasing the number of Amul ice cream retail
outles, which in turn helps Amul to increase its market share. My job of icreasing the Amul ice
cream parlours was in the the villages of Anand District (The Milk Capital of India),Gujarat.
Amul Ice creams have not yet penetrated on its market capitalization of Amul Butter or other
dairy products. As Amul always focuses on its Quality of the product and hence they follow rigid
promotional methods. The project also helped to understand the distribution channel of Amul Ice
cream ie. storage facilities, how retailers problems were solved, replacement policy of Amul Ice
cream, problem faced in distribution etc.
Some facts had come up during my project and these facts can either be used as opportunities for
exploring and expanding the business as well as can be used as safeguards against threats by the
competitors. To prepare an effective marketing strategy, a company must study its competitors as
well as its actual and potential retailers. A company should have good relation with the
distributor and retailers. The company should adopt flexible policy. Company should manage a
good balance of dealers, retailers, consumers and competitor monitoring.
Along with this my task was to study the retailer perception regarding Amul Ice cream. This is
done through unstructured questionnaire, personal interview, and observation. Consumer
Perception towards Amul Ice cream was studied through proper survey. A structured
questionnaire was prepared and survey was conducted on appropriate sample.
My area of operations was two village of the Anand district namely Petlad which cover small
areas like Sonav Road, Mariyampura, Station Road and Ganj Bazar while the second village was
Borsad which covers the small areas like Vasad Road, Singhlav Road and Mahatma Gandhi
Ganj.
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Manufacturing
Unit
Distributor
Retailor
Consumer
VRS
Vendors
Consumers
38
Company
Customer
39
Objectives
Methodology
Observational Market Study:
The observational market study included personal visits to the local retailers and the ice cream
parlours which were accompanied by Amuls sale representative for the initial few days. For the
introduction of Amul Epic ice-cream, retailers were told about the benefits of the product.
Retailers were questioned regarding the consumer response to all the general category ice creams
and especially about Amul Epic ice-cream.
Franchisees were asked regarding the various strategies and schemes which they have been carrying
out in their respective scooping parlours in order to attract customers so as to increase the sales.
The interaction with these franchisees as well as the retailers served as a great resource to know
about the present issues of the market. Apart from that the market conditions were observed
through personal point of view.
For carrying out this primary market research, two questionnaires were designed, both of
which covered all the aspects needed to complete the exhaustive market study.
41
One questionnaire was especially designed from Consumers point of view, whereas the other
one covered Franchisees perspective.
In this project a research is conducted on the ICE-CREAM PARLOURS on the basis of to know
the parlours being preferred and the taste according to the price. The team visited local markets,
and ice cream parlours etc. to collect the data from consumers on personal level.
In order to interact with the retailers, the team personally visited local retail shop and ice cream
parlours owners in borsad, petlad and tarapor in Anand.
The sampling method used for this project is random sampling method where each member of the
population had an equal chance of being chosen. Though the sampling was done using random
samples, three market in Mumbai (Central, Western and Harbour) were chosen from where the
responses were collected. This division of region constituted three different strata in terms of region.
As per this division of regions, an almost equal number of responses were collected from each region.
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44
45
Lack of stock: The ice creams which had huge demand in market were mostly out of stock
and because of that retailers were unsatisfied as the peak season was on.
Pilferage in delivery: Sometimes, the cartons delivered to retailers contained fewer units
as compared to the standard quantity. Some packets were without any ice-creams
inside.
handled personally (and seriously too) by the distributor and hence repeat orders were
difficult to get.
Strong competitors: Direct competitors like Kwality-Walls, Vadilal, Mother Dairy, and
havmour are focusing on the areas where Amul is lacking to an extent.
For instance:
Heavy advertisement: Almost every alternate retail outlet has posters displaying
Kwality-walls and Mother Dairy products.
Prompt delivery: Product delivery of Kwality-walls and vadilal is made
available within few hours after the order is taken.
collaterals like refrigerators etc. thereby enabling retailers to buy their products.
Local Substitutes: In low-standard-of-living areas cheaper substitutes like Flavoured Soda
(Rs. 5) were preferred by consumers.
Lack of awareness in variety of products: Retailers themselves do not know which flavours
and varieties of ice creams were provided by Amul. (Few instances were observed).
Commitments not honoured: It was observed that the distributor promises the retailers,
however does not honour commitments. As a reason the retailers lose trust in the
distributor.
Damaged/expired products not replaced: The damaged and expired products were not
replaced by the distributor, despite several requests from the retailers.
Premium Pricing: According to many retailers, the pricing for EPIC (Rs. 40) is
high and because of that consumers prefer other cheaper options.
Lack of Awareness:
The special publicity devices used for its promotion came very late in the market.
Delivery Issues: The orders taken by the salesman were not delivered by the
distributor on time and because of which it was very difficult to get repeat orders
as the retailers were furious about it.
47
Using these instruments and keeping my first phase objective in mind I ran a preliminary
run of my questionnaire with around 100 people from different age groups in general.
1. Gender (Male/Female)
Gender
32%
Male
68%
49
Female
2. Age Group
25
20
15
10
5
0
Under 15
15-24
25-35
36-50
above 50
3. Occupation
Student, writer, Manager, Sales Software Engineer, Engineer, Software , Engineer it, Engineer,
Business, IT Engineer, , MBA Student, engineer.
Inference:
Most of the respondents are above the age of 50 hence our conclusion till now would be really
narrow.
50
12%
ICE-CREAMS
INDIAN SWEETS
88%
20
18
19
16
14
12
10
12
11
6
4
2
0
Rs. 0-50
51
Rs. 50-100
Rs. 100-200
52
Rarely
10
Once a week
12
2 to 5 times a week
7
Everyday
18
Mostly in Summers
0
10
12
14
16
18
20
Inference:
Well clearly the above graph brings out the obvious thing which is that people generally like to
have ice creams in the summer. But along with that irrespective of the season the consumption
happens atleast once a week which is very prominent.
53
7. When you buy your ice creams which character do you care mostly?
27
30
25
20
11
15
10
5
0
Price
54
Brand
Flavor
Nutrition
Style
Amul
42
Havmour
16
Vadilal
26
Kwality Wals
Baskin Robins
Others
Respondents
55
O
th
er
s
Ro
bi
ns
Ba
sk
in
W
al
s
Kw
al
ity
Va
di
la
l
ou
r
Respondents
H
av
m
Am
ul
45
40
35
30
25
20
15
10
5
0
Yes
72
No
28
Response
28
Yes
No
72
56
20
Television
12
15
Retailer
04
Hoardings
21
25
20
15
10
0
Newspaper
57
Hoardings
0
Other
5
11
4
8
Home
3
26
58
2
5
1
5
10
15
20
25
30
Analysis of Survey:
Through this survey, it is clear that:
1. People love Amul ice cream very much.
2. It is one of the most preferred brands of ice cream.
3. Lack of effective marketing.
4. Lack of new schemes (although this has improved somewhat during the course of
research).
5. Supply is not being able to meet the demand.
59
60
50
No
00
yes
no
61
16
21
08
00
05
5
16
amul
Vadilal
Havmour
21
kwality walls
others
62
63
21
13
13
21
yes
no
64
65
13
26
Cone
Candy
Tubs
21
Family Packs
Sundae's
66
Factor
12
quality
14
quantity
27
23
price
Taste
21
67
16
00
Amul
yes
no
16
68
09
07
7
9
yes
no
69
04
12
yes
12
70
no
Yes
13
71
No
4
12
Yes
12
72
No
Sales
yes
no
73
Sales
7
11
yes
no
Some Amul Outlets are not happy because of poor delivery service, whenever
they demand of icecream they are not getting on time which results in
dissatisfaction of service.
74
14. Are you happy with the various schemes given by Amul?
o Yes
o No
11
75
Yes
No
76
Limitations:
This report had to work under several constraints and limitations. Some of the key limitations
are:
1. Time period of the project was 8 weeks, which may not be enough to understand the whole
market.
2. The sample size taken was small, therefore it can be said that the chosen sample is not the
representative of the whole population and this hindered quantitative research.
3. The psychology and temperament of a respondent play a significant role. Some respondents
are more sensitive as against others who are more tolerant. A change in the composition of the
respondents can affect the answers adversely or favorably.
4. Respondents may not have been true in answering various questions and may be biased to
certain other questions.
5. Out of the whole research and analysis, only major brands could be highlighted, leaving aside
the other non-popular brands.
6. The questionnaire mostly contained multiple choice questions, therefore many respondents
did not give a proper thought answering the questions, and some even ticked things, which were
not applicable. Therefore, all this increased the biasness.
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CONCLUSION
Amul means different things to different people.
To a milk producer A life enriching experience
To a consumer Assurance of having wholesome milk
To a mother A reliable source of nourishment for her child
To the country Rural development and self-reliance
As we know that Amul is very big organization and market leader in dairyproducts. It has
maximum market share in Milk, Butter and Cheese which areits main/core products. But in case
of Amul Ice cream it is not a popular productas compared to other Amul Products. All the
retailers feel that Amul productsare very good in taste and once a customer tries it they become a
loyalist to thebrand but, then again, supply shortages have lead to customers shifting to other
brands and retailers too start keeping less of Amul Ice Cream.Also, strong marketing tactics
adopted by other brands have resulted in Amul Ice cream being left behind.
It was a great experience working in Amul. The people, the work culture, working environment
was very comfortable and easy to get accustomed with. These two weeks in Amul were not only
enriching but a great learning curve,where I learned how a big company like Amul works, what
routine they follow, what are their hierarchy structure, how they successfully manage such a
huge supply chain.
Amul also taught me how a market leader becomes a market leader, what they have done to
reach that position and to also maintain it for years and years.I was made a part of most of the
meetings that were conducted at the distributors point where all the issues were discussed which
was very helpfulfor me in understanding how are grievances and problems handled.
As I conclude this project I would like to tell that Amul has great potential and with the help of
this research, I hope company can find out its drawbacks and can increase its market share by
rectifying its mistakes. People have believed in Amuls product always and they will accept it
also if effective actions are taken.
78
Amul Ice Cream is among the top ice cream brands, but like every company Amul also has its
few weaknesses, which have already been discussed in the project. Few of the recommendations
to rectify or improve on them are discussed below.
1. Amul has a relatively good distribution network but demand is not meeting the supply. Lack of
consistent supply is leading to customers being pushed away to other brands. Maximum number
of vendors does not get the products that they ask for, for months. Company should focus on this
issue and try and improve the supply chain management.
2. In this competitive market not providing free fridge to retailers when your biggest competitor
is providing it with ease leads to huge loss in market share. All the retailers are in the habit of
getting free fridges from Vadilal, this strategy by Vadilal is not only pushing out Amul from the
shops but also not letting it enter to areas where Amul havent been able to reach yet.
3. Lack of push carts, which are very popular among general public. A general tendency have
been noticed among customers is that they might not enter a ice cream outlet and purchase ice
creams to eat but they definitely tend to buy ice creams when they suddenly see a push cart.
Company should consider increasing its push carts in the market, considerably.
5. Amuls packaging, apart from its latest crme rich products, is very mediocre.
As all say Jo dikhta hai wo hi bikta hai and appealing packaging, one with
a rich or eye catch look will boost Amul Ice Cream sale.
79
BIBLIOGRAPHY AND
WEBLIOGRAPHY
Books:
1. Marketing Management Philip Kotlar
2. Research Methodology C. R. Kothari
Websites:
www.google.co.in
www.wikipedia.com
www.amul.com.
80
ANNEXURE
81
o Others
9. Have you Heard or Tasted Amul EPIC Ice-cream?
o Yes
o No
10. From where you heared about Epic Icecream?
o Newspaper
o Television
o Friends & relatives
o Retailer
o Hoarding
11.Where do you generally prefer to consume ice creams?
o Others
o Outside(road side vendors)
o Home
o Ice cream parlor
o Restaurant
83
Amul
Vadilal
Havmour
Kwality walls
Others
84
86