1

INTRODUCTION TO THE TOPIC

The topic To study about Strategy and Market Share of Amul chocolates highlights on the
market share of Amul Chocolates Pune city in comparison to existing player in the Milk
chocolate Market.
The market share can be found with the help of retailers. As the competitors are concerned there
are only two of them i.e. Cadbury and Nestle
The study is also concerned to find out the various reasons due to which the retailers do not
prefer to sell Amul Chocolates.Moreover the study also helps in knowing the best medium for
creating the awareness about the Amul Chocolates.
To know the Market share and problems faced by retailers is very important for every
organization for their promotion, expansion and development.

OBJECTIVES OF THE PROJECT

The main objective of the study on this project is to study the company profile of Amul India Ltd
and demonstrate its marketing strategies of and to arrive at my findings, I have done
PESTanalyses.
And also 4 Ps of Marketing: Product
Price
Place
Promotion

COMPANY PROFILE

1.Formed in 1946, Amul has initiated the Dairy Cooperative movement in India and formed an

Apex Cooperative Organization, Gujarat Co-operative Milk Marketing Federation Ltd.

(GCMMF), jointly owned by some 2.1 million milk producers in Gujarat, India. Its products,
including milk powders, liquid milk, butter, ghee, cheese, chocolate, ice cream and pizza
are widely used throughout India and abroad and have made Amul the largest food brand in
India today with an annual turnover of some Rs.29 Billion ($US 616 million) per annum.
2. The primary goal of Dr. V. Kurien, Chairman, GCMMF, has been to build a strong Indian society
economically through an innovative cooperative network, to provide quality service and
products to end- consumers and good returns to the farmer members. Dr. Kurien states, We
have traversed a path that few have dared to. We are continuing on a path that still fewer have
the courage to follow. We must pursue a path that even fewer can dream to pursue. Yet, we
must. We hold on trust the aims and aspirations o millions of our countrymen.
3. Information Technology has played a significant role in developing the Amul brand. The logistics
behind co-ordinating the collection of some 6 million litres of milk per day from 10,755
separate Village Cooperative Societies throughout Gujarat and then storing, processing and
producing milk products at the respective 12 District Dairy Unions, are awesome. The
installation of 3000 Automatic Milk Collection System Units (AMCUS) at Village Societies to
capture member information, milk fat content, volume collected and amount payable to each
member has proved invaluable in ensuring fairness and transparency throughout the whole
Amul organization.
4. In 1996 Amul was one of the first major organizations in India to have a website and this has
been used both to develop an intranet of Amul distributors as well as a cyber-store for
consumers, one of the first examples of e-commerce activity in India.

AMUL AND CO-OPERATION

The CEO, Mr. B M Vyas, said that. Amul is not a food company; it is an IT company in the
food business. In saying this he was recognizing that the most efficient way of building links
between milk producers and consumers so as to provide the best returns for the both is through
IT innovation.
Thus is why Amul has embraced the ideas behind coop with such enthusiasm. Not only will the
TLD enable consumers in India to recognize an established brand they can trust online, it will
enable Amul to begin trading competitively throughout the world, reaching markets, which have
hitherto been inaccessible.
The CIO, Mr. SubbaraoHegde said, Information Technology is the most effective tool we have
in communicating with our members and the millions of consumers who purchase Amul
products throughout India every day. Coop not only reflects the cooperative values which shape
our own organization democratically dynamic, it will also give us a vital business advantage as
we seek to develop the Amul brand throughout the world.
AMUL means priceless in Sanskrit. The brand name Amul, from the Sanskrit Amoolya,
was suggested by a quality control expert in Anand. Variants, all meaning priceless, are found
in several Indian languages. Amul products have been in use in millions of home since 1946.
Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,
AmulShrikhand, Amul Ice cream, Nutramaul, Amul Milk and Amulya have made Amul a leading
food brand in India. (Turnover: Rs. 29 billion in 2004). Today Amul is a symbol of many things.
Of high-quality products sold at reasonable prices.

GUJARAT CO-OPERATIVE MILK MARKETING

FEDERATION(GCMMF)
An Overview: Gujarat Cooperative Milk Marketing Federation (GCMMF) is Indias largest food
products marketing organization. It is state level apex body of milk cooperative 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 producersUnion
No. of Producers Members 2.36 million
No. of Village Societies
11,333
Total Milk handling capacity6.9 million liters per day
Milk collection (Total 2002-03) 1.86 billion liters
Milk collection (Daily Average (2003-04) 4.97 million liters
Milk Drying Capacity
511 metric Tons per day
Cattlefeed manufacturing
2340 Mats per day
Capacity:
Sales Turnover
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2005-06
2006-07
2007-08
2008-09

Rs
(million)
11140
13790
15540
18840
22192
22185
22588
23365
27457
28941
37736
42778
52448
67113

US $ (in millions)
355
400
450
455
493
493
500
500
575
616
850
1050
1325
1504

PEST ANALYSIS OF AMUL

P-) Since the budget range is decontrolled, no political effects are envisaged.
E-1) Increasing per capita income resulting in higher disposable income
2) Growing middle class/urban population increase in demand.
3) Low cost of production better penetration.
S-1) Per capita consumption expected to increase fashion.
2)Increasing gifts culture increase in demand.
3) Lower cholesterol than Mithais (sweet meat) substitute demand
T-)Will have to reinforce technology to international levels once India is a free economy

4 PS OF MARKETING
PRODUCT:Satisfaction suffices. But delight dazzles the average company will compete for customer by
conforming to her expectation consistently. But the winner will surpass them by constantly
exceeding her expectation, delivering to her door step additional benefits which she would never
have imagined possible. Cadburys offer such product. The wide variety products offered by the
company include:
List of Products Marketed: -

Breadspreads:
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
Cheese Range:
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
AmulEmmental Cheese
Amul Gouda Cheese
AmulMalaiPaneer (cottage cheese) Frozen and Tinned
Utterly Delicious Pizza
Mithaee Range (Ethnic Sweets):
AmulShrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
AmulAmrakhand
AmulMithaeeGulabjamuns
AmulMithaeGulabjamun Mix
AmulMithaeeKulfi Mix
UHT Milk Range:
AmulTaaza 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
AmulTaaza Double Toned Milk

Pure Ghee:
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)
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:
AmulMithaimate Sweetened Condensed Milk
Fresh Milk:
AmulTaaza 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:
AmulMastiDahi (fresh curd)
Amul Butter Milk ,AmulLassee
AmulIcecreams:
Royal Treat Range (Rajbhog, Cappuccino, Chocohips, Butterscotch, TuttiFrutti)
Nut-o-Mania Range (KajuDrakshi, KesarPista, Roasted Almond, KerarCarival,
BadshahiBadamKulfi, ShistaPistaKulfi)
Utsav Range (Anjir, Roasted Almond)
Simply Delicious Range ( Vanilla, Strawberry, Pineapple, Rose, Chocolate)
Natures Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black
Currant)

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Sundae Range (Mango, Black Currant, Chocolate, Strawberry)
Millennium Icecream(Cheese with Almonds, Dates with Honey)
Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly,ShahiBadamKulfi,
ShahiPistaKulfi, MawaMalaiKulfi, Green PistaKulfi)
Cool Candies (Orange, Mango)
Cassatta
Tricone(Butterscotch, Chocolate)
Megabite Almond Cone
Frostik 3 layer chocolate Bar
Fundoo Range exclusively for kids
SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)
Health: Isabcool
Chocolate & Confectionery:
Amul Milk Chocolate
AmulAlmondbar
AmulFundoo
AmulChocozoo
AmulBindaaz
Amul Fruit & Nut Chocolate
Brown Beverage:
Nutramul Malted Milk Food
Milk Drink:
Amul Shakti Flavoured Milk
Ready to Serve Soups:
Masti Hot & Sour Soup

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PRICING:Second P of marketing is not another name for blindly lowering prices and relying on this
strategy alone to increase sales dramatically. The strategy used by Cadburys is for matching the
value that customer pays to buy the product with the expectation they have about what the
production is worth to them.

AMUL has launched various products which cater to all customer segments. So every
customer segment has different price expectation from the product. Therefore
maximizing the returns involves identifying right price level for each segment, and then
progressively moving through them.

In milk chocolate Amul has the following brands:

Name of chocolate

Weight

Price
(Rs.)

Amul Milk Chocolate 35g

10

AmulFundoo

30g

10

AmulFundoo

15g

Amul Fruit Nut

35g

15

AmulBindaaz

30g

10

AmulAlmondbar

35g

10

AmulChocozoo

500g(Tub) 138

All the chocolates are made up of:

Milk Fat
Sugar

(2%)
-

(55%)

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Cocoa Solids - (7.5%)
Solid Milk

- (20%)

Physical Distribution Place

In a product and price parity situation, the brand that sells more is the one that reaches the
highest number of customers. India 1 billion people, 155 million household has over 4 million
retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq.

Promotion
If an advertisement is to communicate effectively, the receiver must at least half want it to, and
be prepared too take step toward the sender. Effective advertising is rarely hectoring or loudly
explicit. It often both attracts and generates arm feelings. More often than not, a successful
campaign has a stronger element of the unexpected a quality that good advertising shares with
much worthwhile literature.
To penetrate into the inner recesses of her memory, communication must first ensure exposure,
grab her attention evoke her comprehension, grab her acceptance and then extract retention
competing with thousands of other units of communication trying to do the same.

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COMPARISION BETWEEN CHOCOLATE COMPANIES

1) Name of Chocolate Companies and their penetration in marketThe table below deals in finding the numbers of retailers that sellsdifferent company chocolates
and their penetration in markets.
Table 1.1
Chocolate companies and their penetration
Name of company
Amul
Cadbury
Nestly
Other

No of shops
20
149
148
18

Graph 1.1
Chocolate companies and their penetration

The graph 1.1 shows the number of retailers selling different company chocolates. There are
only 20 retailers i.e. 13.33% who deal in Amul chocolates. The percentage is very less compared
to Cadbury and Nestle.

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2) Market share
The table below deals in finding the Market Share of Amul Chocolates and other companies
chocolate.
Name of company
Total Sale
Market share
Table 2.1
(%)
Market
Share
(Per month)

Graph 2.1
Market Share

Amul

Rs.

3130

Cadbury

Rs. 239750

64.5%

Nestle

Rs. 125940

33.9%

Others

Rs.

00.67%

Total

Rs. 371320

2500

00.84%

100%

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The graph 2.1 shows the market share of different company chocolates in terms of rupees. From
the graph we can say that the market share of Amul chocolates is only 1%, which is very less,
compared to other companies. Cadbury has the maximum share of 64.5%.
3) a)Brands of Amul chocolates sold on Amul chocolate Outlet.
The table below helps in finding the different brands of Amul Chocolates that is available on
Amul Chocolate Outlet. A shop that sells even one Amul Chocolate is an Amul Chocolate
Outlet
Name of chocolate
No. Of Amul chocolate 3.1
Table
Outlet
Bran
d of Amul Chocolates
&
their
selling
A Amul Milk chocolate
8
percentage
B AmulFundoo
4
C Amul Fruit n Nut
D AmulBindaaz

11
4

AmulAlmondbar

16

AmulChocozoo

G Amul Rejoice

H All Chocolates

Brand of Amul Chocolates & their selling percentage

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Graph-3.1
The Graph 3.1 above shows that Amul Almond Bar is sold at most of the Amul Chocolate outlet
followed by Amul fruit n Nut &Amul Milk Chocolate. There is not a single outlet that sells
Rejoice.
3) b) Ordering Pattern
The table below deals in finding the ordering pattern for Amul Chocolates.
Table 3.2
Ordering Pattern
Option

No. of Retailers

Daily

Weekly

Monthly

20

Graph 3.2
Ordering Pattern

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The graph 3.2 shows the ordering pattern followed by Amul Chocolate outlets. It is seen that
almost all of them order once in a month since their demand is very less.

4) Financial Support for promotion.

The table below deals in knowing whether the company provides any financial support for
promotion to Amul chocolate outlets.
Table 4.1
Financial Support For Promotion

Option

No. of Retailers

Yes

No

20

Graph 4.1
Financial Support for Promotion

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The graph 4.1 shows the financial support for promotion. From the graph we can say that
according to the retailers the company does not provide any financial support for promotion.

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5) Reasons for not selling Amul Chocolates.
The table below deals in finding the reasons for retailers due to which they do not sell Amul
Chocolates.
Table 5.1
Reasons For Not Selling Of Amul Chocolates
Reasons

No. of Retailers

Distribution & Service problem

108

Low demand

73

Low Margin

98

Replacement Problem

45

No Refrigerator

21

Not Interested

15

Graph 5.1
Reasons For Not Selling Amul Chocolates

The graph 5.1 shows the various reasons due to which the retailers do not sell Amul
chocolates. From the graph we can say that Distribution & Service problems and Low
Margin are the major reasons followed by Low demand and Replacement problem because of
which the retailers do not want to sell Amul chocolates.

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6) Reasons for Preference in selling other company chocolates.
The table below deals with finding the reasons due to which the retailers prefer to sell other
company chocolates and not Amul chocolates.
Table 6.1
Reasons For Selling Other Company Chocolate
Reasons

No.
of
Retailers

Good Distribution and Service

97

More Demand

105

Higher Margin

73

Better Replacement

23

More Benefit

30

Graph 6.1
Reasons For Selling Other Company Chocolate

The graph 6.1 shows the reasons for which the retailers prefer to sell other company
chocolates. The major reasons are the More demand of other company chocolates, Good
service as well as Higher Margin.

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7) The most attractive scheme.
The table below deals with finding the most attractive scheme according to the retailers.

Table 7.1
The most Attractive Scheme
Different Schemes

No. of Retailers

Incentive Scheme

34

Free Pack on Large Purchase

40

Increase Profit Margin

79

Lucky Draw

25

Graph 7.1
The Most Attractive Scheme

The graph 7.1 shows show the Different Schemes for attracting the retailers for selling
Amul Chocolates. Mostly the retailers are attracted towards increased Profit Margin
followed by Free Pack on large purchase.

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8) Mediums for Creating Awareness.
The table below deals in finding the most appropriate medium for creating awareness.
Table 8.1
Effective Medium

Option
More TV / News
Advertisement

No. Of Shops
paper

150

Banners

62

Gift/Coupons

48

Graph 8.1
The Effective Medium

The graph 8.1 shows the different effective mediums for creating awareness about the Amul
chocolates. According to all of the retailers, the most effective medium is TV and
Newspaper advertisement.

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SWOT ANALYSIS

STRENGTHS

Largest food brand in India

High Quality, Low Price
World's Largest Pouched Milk Brand
Annual turnover of US $1504 million
Highly Diverse Product Mix
Robust Distribution Network
Technical manpower
Demand margins

Risks of highly complex supply chain system

Strong dependency on weak infrastructure
Alliance with third parties who do not belong to the organized sector
Problem in distribution
Perishability

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OPPORTUNITIES

Penetrate international markets

Diversify product portfolio to enter new product categories and expand existing
categories like processed foods, chocolates etc
Flexibility in market

THREATS

Competitors - Hindustan Lever, Nestle and Britannia

Still competition from MNCs in butter
Growing price of milk and milk products
Ban on export of milk

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CONCLUSION
As we know thatAmul is very big organization and market leader in dairy products. It has
maximum market share in Milk, Butter and Cheese, which are its main/core products. As we know
Amul is a co-operative organization but chocolate industry is a profitable industry we cant ignore
it. With the help of research, company can find out its week points in chocolate product and can
increase its market share through rectify mistakes. People have believed inAmuls product and
they will accept its chocolates also if effective actions were taken.The survey resulted into
following conclusions :

Amul must come up with new promotional activities suchthat people become aware
about Amul Chocolates like Chocozoo, Bindaaz, and Fundoo.

Quality is the dominating aspect which influences consumerto purchase Amul product,
but prompt availability of other chocolate brands and aggressive promotional activities by
others influences the consumer towards them and also leads to increase sales.

In comparison to Amul Chocolate, the other players such asCadbury, Nestle, areprovide a
better availability and give competition to the hilt.

People are mostlysatisfied with the overall quality of AmulChocolate, but for the
existence in the local market Amulmust use aggressive selling techniques.

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BIBLIOGRAPHY

1. www.amul.com
3. www.google.com
4. www.marketresearch.com
5. www.dairy.com
6. Research Methodology. (HarperW.Boyd, C. R. Kothari