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ACKNOWLEDGEMENT
It is my great privilege to acknowledge and remain indebted to the people who by their rich and
varied contribution have helped me in understanding the various aspects included in my project.
The successful completion of the project would be incomplete without the mention of the people
who made it possible.
I would like to thank and express my deep sense of gratitude to my Faculty Guide Prof. Dr.
Sunita Srivastava. I am greatly indebted to her for providing me with her precious
guidance,valuable suggestions, without which it would have not been possible to complete the
project.
I would also like to thank my Project Guide Mr. Sameer Nagle who in spite of his busy schedule
has co-operated with me continuously and indeed, his valuable contribution and guidance have
been certainly indispensable for my project work.
I would also like to thank all respondents, and the dealers, who spared their valuable time and
enriched me with valuable information.
Last but not the least;I heartily thanks to my colleagues and friends who helped a lot during
project work.
Abhijeet Kamdi
CERTIFICATE
This is to certify that the project presented by Mr.AbhijeetKamdi to the Chetanas Ramprasad
KhandelwalInstitute Of Management And Research in part completion of the Master of
Management Studies under the title Institutional review for Amuls fresh dairy products in
Western line and South Mumbai.has been done under the guidance of Prof. Dr.
SunitaSrivastava.
The project is in the nature of original work that has not so far been submitted for any Degree of
any other University/Institute. References of work and related sources of information have been
given at the end of each chapter.
EXECUTIVE SUMMARY:
The objective of the project aimed at promoting Amuls Fresh Dairy Products(Fresh Paneer,
Dahi, and Flavoured Yoghurt) in Institutes.Hence, it has become imperative to find out average
4
daily consumption of these products and who are the existing competitors of Amul in this
product line. In order to execute the same, initial activities included visiting the 3 star, 5 star
Hotels.And I (in association with colleague) conducted Market Research in Institution Segment.
Aim was to study B2B marketing and analyze ways to improve Amuls sale in this segment.
This Research includes interviewing Purchase Managers and Chef of hotels.
The Interview Questions were designed to extract information about the following
This helped in arriving at important conclusions that the consumption of Fresh Dairy Productsin
Institutions such as Hotels is very large and local dairies and few well-known brands have
captured good Market Share. And we promoted Amuls Fresh Dairy Productsand tried to
convince them by highlighting the offers and advantages of Amuls product over other
competitors products.
Opportunity to capitalize on low consumption levels, growing institutional sales challenges,
competition with unorganized sector on price and quality all these covers under this project.
CONTENTS
Index
Page No.
1. Introduction...09
2. Literature review26
3. Research Methodology......................................................32
4. Results &Interpretations.......34
5. Conclusions....46
6. Limitations of the project..................................47
7. Recommendations.................................48
Appendix.........50
Bibliography.. .52
List of Tables
Sr. No.
1
Table No.
Table No. 1.1
6
Page No.
10
2
3
4
5
6
7
8
9
10
11
35
36
37
38
39
40
41
42
43
44
List of Figures
Sr. No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Figure No.
Figure 1.1
Figure 1.2
Figure 2.1
Figure 3.1
Figure 4.1
Figure 4.2
Figure 4.3
Figure 4.4
Figure 4.5
Figure 4.6
Figure 4.7
Figure 4.8
Figure 4.9
Figure 4.10
Abbreviations:
1)
2)
3)
4)
5)
6)
Page No.
11
15
30
32
35
36
37
38
39
40
41
42
43
44
1. Introduction
1.1 Company Profile:
Gujarat Co-operative Milk Marketing Federation
Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) is India's largest food products
marketing organization with annual sales turnover of Rs 13,735 crore in the year 2012-2013.
It manufactures and markets a wide range of dairy products in India and abroad under the brand
names of Amul and Sagar. GCMMF has 19 affiliated dairy plants with a total milk handling
capacity of 6.7 million litres per day. The total milk drying capacity is 510 MT per day. GCMMF
is also the largest exporter of dairy products from India.
It manufactures and markets a wide range of dairy products in India and abroad under the brand
names of Amul and Sagar. The product categories are Infant Milk Food, Skimmed Milk Powder,
Full Cream Milk Powder, Dairy Whitener, Table Butter, Cheddar Cheese, Mozzarella Cheese,
Emmental Cheese, Cheese Spreads, Gouda cheese, Ghee, Sweetened Condensed Milk,
Chocolates, Malted Milk Food, Blended Breadspreads, Fresh milk, UHT (Long life) Milk, Icecream and ethnic Indian sweets.
GCMMF is the largest exporter of dairy products from India. It exports our products in consumer
packs and bulk to USA, Singapore, UAE, Australia, Bahrain, Qatar, Oman, Kuwait, Bangladesh,
Madagascar, Yemen, Sri Lanka etc. on a regular basis. It has won 9 awards consecutively from
APEDA, Govt of India.
Vision: Amuls vision is to provide more and more satisfaction to the farmers, their customers,
employees and distributors.
Mission: The motivated and dedicated workforce at Amul is committed to produce wholesome
and safe food of excellent quality to remain market leader through development of quality
management system, state of art technology, innovation and eco-friendly operations to delight
customers and milk producer.
GCMMF An Overview
Year of Establishment
1973
Members
3.18 Million
9
16,914
Total Milk handling capacity per day 16.8 Million litres per day
Milk Collection (Total - 2012-13)
Source: www.amul.com
Table No. 1.1
10
11
HISTORY OF AMUL
The birth of Amul at Anand provided the driving force to the cooperative dairy movement in the
country. The Kaira District Cooperative Milk Producers Union Limited was registered on
December 14, 1946 as a response to exploitation of marginal milk producers by traders or agents
of existing dairies in the small town named Anand (in Kaira District of Gujarat). Milk Producers
had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand. Often
milk went sour, as producers had to physically carry the milk in individual containers, especially
in the summer season. These agents arbitrarily decided the prices depending on the production
and the season. Milk is a commodity that has to be collected twice a day from each cow/buffalo.
In winter, the producer was either left with surplus / unsold milk or had to sell it at very low
prices. Moreover, the government at that time had given monopoly rights to Polson Dairy
(around that time Polson was the most well-known butter brand in the country) to collect milk
from Anand and supply it to Bombay city in turn. India ranked nowhere amongst milk producing
countries in the world in 1946.
Angered by the unfair and manipulative trade practices, the farmers of Kaira District approached
Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and Home Minister
of free India) under the leadership of the local farmer leader Tribhuvandas Patel. Sardar Patel
advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk Scheme.
Instead of selling it to Polson (who did the same, but gave low prices to the producers), He sent
Morarji Desai (who later became Prime Minister of India) to organize the farmers. In 1946, the
farmers of the area went on a milk strike refusing to be further oppressed. Thus, the Kaira
District Cooperative was established to collect and process milk in the District of Kaira in 1946.
12
Milk collection was also decentralized, as most producers were marginal farmers who were in a
position to deliver 1-2 liters of milk per day. Village level cooperatives were established to
organize the marginal milk producers in each of these villages.
The Cooperative was further developed & managed by Dr. V.N. Kurien along with Shri. H.M.
Dalaya. The first modern dairy of the Kaira Union was established at Anand (which popularly
came to be known as AMUL dairy after its brand name). Indigenous R&D and technology
development at the Cooperative had led to the successful production of skimmed milk powder
from buffalo milk the first time on a commercial scale anywhere in the world. The foundations
of a modern dairy industry in India were thus laid since India had one of the largest buffalo
populations in the world.
The success of the dairy co-operative movement spread rapidly in Gujarat. Within a short span
five other district unions Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were
organized. In order to combine forces, expand the market while saving on advertising, and avoid
a situation where milk cooperatives would compete against each other it was decided to set up an
apex marketing body of dairy cooperative unions in Gujarat. Thus, in 1973, the Gujarat Cooperative Milk Marketing Federation was established. The Kaira District Co-operative Milk
Producers Union Ltd., which had established the brand name AMUL in 1955, decided to hand
over the brand name to GCMMF (AMUL).
Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award winner, is the architect of
Indias White Revolution, which helped India emerge as the largest milk producer in the world.
Impressed with the development of dairy cooperatives in Kaira District & its success, Shri Lal
Bahadur Shastri, the then Prime Minister of India during his visit to Anand in 1964, asked Dr. V
Kurien to replicate the Anand type dairy cooperatives all over India. Thus, the National Dairy
Developed Board was formed and Operation Flood Programme was launched for replication of
the Amul Model all over India.
Operation Flood, the worlds largest dairy development programme, is based on the experience
gained from the, Amul Model dairy cooperatives. The facilities at all levels are entirely farmerowned. The cooperatives are able to build markets, supply inputs and create value-added
processing. Thus, Amul Model cooperatives seem to be the most appropriate organizational force
for promoting agricultural development using modern technologies, professional management,
13
and thereby generating employment for the rural masses anderadicating poverty in these
undeveloped areas. India has already demonstrated the superiority of this approach.
Traditionally dairying was a subsidairy occupation of the farmers of Kaira. However, the
contribution to the farmer's income was not as prominent as his attachment to dairying as a
tradition handed down from one generation to the next. The milk yield from animals, which were
maintained mainly on the by-products of the farm, was decidedly low. That together with the
lack of facilities to market even the little produced rendered the scientific practice of animal
husbandry irrational as well as unaffordable. The return on the investment as well as the
prospects of being able to market the product looked very bleak. It was a vicious cycle reinforced
by generations of beliefs.
Member Unions:
1. Kaira District Cooperative Milk Producers' Union Ltd., Anand
2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar
4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur
5. Surat District Cooperative Milk Producers' Union Ltd., Surat
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara
7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
10. Ahmedabad District Cooperative Milk Producers' Union Ltd., Ahmedabad
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers' Union Ltd., Gandhinagar
13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar
14. Amreli District Cooperative Milk Producers Union Ltd., Amreli
15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar
16. Kutch District Cooperative Milk Producers' Union Ltd., Anjar
14
Source: http://www.amul.com/m/organisation
Figure 1.2
THREE-TIER AMUL MODEL:
The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy
Co-operative Society at the village level affiliated to a Milk Union at the District levelwhich in
turn is further federated into a Milk Federation at the State level. The abovethree-tier structure
was set-up in order to delegate the various functions; milk collection isdone at the Village Dairy
Society, Milk Procurement & Processing at the District MilkUnion and Milk & Milk Products
Marketing at the State Milk Federation. This helps ineliminating not only internal competition
but also ensuring that an economy of scale is achieved. As the above structure was first evolved
at Amul in Gujarat and the, replicated all over the country under the Operation Flood
Programme, it is known as theAmul Model or Anand Pattern of Dairy Cooperatives.
15
16
management of theday-to-day functions. It also employs various people for assisting the
Secretary inaccomplishing his / her daily duties. The main functions of the VDCS are as follows:
Collection of surplus milk from the milk producers of the village & paymentbased
onquality & quantity.
Providing support services
to
the
members
like
Veterinary
First
Aid,
ArtificialInsemination services, cattle-feed sales, mineral mixture sales, fodder & fodder
seedsales, conducting training on Animal Husbandry & Dairying, etc.
Selling liquid milk for local consumers of the village.
Supplying milk to the District Milk Union.
Thus, the VDCS in an independent entity managed locally by the milk producers andassisted by
the District Milk Union.
2. District Cooperative Milk Producers Union(Milk Union):
The Village Societies of a District (ranging from 75 to 1653 per Milk Union in
Gujarat)having surplus milk after local sales come together and form a District Milk Union.
TheMilk Union is the second tier under the three-tier structure. It has membership of
VillageDairy Societies of the District and is governed by a Board of Directors consisting of 9
to18 electedrepresentatives of the Village Societies. The Milk Union further appoints
aprofessionalManaging Director (paid employee and member secretary of the Board)
formanagement of the day-to-day functions. It also employs various people for assisting
theManaging Director in accomplishing his/ her daily duties.
The main functions of theMilk Union are as follows:
Procurement of milk from the Village Dairy Societies of the District.
Arranging transportation of raw milk from the VDCS to the Milk Union.
Providing input services to the producers like Veterinary Care, Artificial Insemination
services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc.
Conducting training on Cooperative Development, Animal Husbandry & Dairying for
milk producers and conducting specialised skill development & Leadership Development
training for VDCS staff & Management Committee members.
Providing management support to the VDCS along with regular supervision of its
activities.
Establish Chilling Centres & Dairy Plants for processing the milk received from the
villages.
17
18
20
21
Source: http://www.amul.com/m/about-us
22
Research Objective:
1) To study the response of institutions based on product strategies of Amul.
2) To study the response of institutions based on pricing strategies of Amul.
3) To study the response of institutions based on promotional strategies of Amul.
4) To study the response of institutions based on place strategy of Amul.
5) To study strategies used by the competitors of Amul.
Research Methodology:The research design specifiesthe method & procedure to conduct a particular research. In
above project the research methodology used is Exploratory Research. It helps to explore
facts and data.
Result & Interpretations:The results & interpretations of the study highlighted in the project reflect various factors
which are considered by Purchase Managers while purchasing dairy products.
Conclusion:The conclusion drawn is extracted from interaction done with Purchase Managers and Chefs.
Limitations of the Project:Limitations of the project are based upon the survey & sampling performed.
Recommendations:Specific recommendations were submitted to the Territory sales manager during the project
& most of them were approved.
2. Literature Review
2.1 Theoretical framework, background theory:
RETAILERS:
Retailers are part of an integrated system called the supply chain. A retailer purchases goods or
products in large quantities from manufacturers directly or through a wholesale, and then sells
smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like
stores or markets, door-to-door or by delivery. In the 2000s, an increasing amount of retailing is
25
done using online websites, electronic payment, and then delivered via a courier or via other
services.
Retailing includes subordinated services, such as delivery. The term "retailer" is also applied
where a service provider services the needs of a large number of individuals, such as for the
public. Shops may be on residential streets, streets with few or no houses or in a shopping mall.
Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full
roof to protect customers from precipitation. Online retailing, a type of electronic commerce
used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop
retailing.
AMUL PRO
Amul PRO is a malt based milk additive, which not only enhances milks nutritive value but also
makes milk a very tasty drink for people of all ages, especially kids, who need milk and nutrition
for healthy growth. It comes from the House of Amul, the brand which is known all over for
providing quality products at value for money price.
Key product attributes of Amul PRO are as follows:
Whey Protein: Muscle building & Immunity
Whey Protein is the purest and most essential form of protein. It is easy to digest and helps
muscle building and nurturing growth. Why Protein is often referred to as Fast Protein, provides
quick nourishment to muscles, helping your child strengthening the immunity and stay healthy.
DHA: Brain Development
Docosahexaenoic Acid (DHA) is an essential fatty acid required for optimal development and
function of the brain, eyes and central nervous system of a child. It plays an important role in
enhancing your childs immunity by protecting it from allergies like Asthma.
27 Essential Nutrients: Complete Wellness
Amul PRO contains 27 essential nutrients (proteins, vitamins and minerals) that help in boosting
immune system enhance metabolism and nervous system functions and helps children be
mentally sharp and physically agile.
achieve favourable terms of trade for Indian agriculture both in the domestic and the
international markets. The sector however has to go a long way. Even important is the crucial
contribution that an efficient food processing industry could make in the nation's food security
for instance the post-harvest losses of selected Fruits and Vegetables are about 25% to 30% in
our country. Even marginal reductions in these losses are bound to give us better returns and
thereby improve the income level of the farmers. During the last one decade, India moved from a
position of scarcity to surplus in Food. Given the trade in production of food commodities, the
Food Processing Industry in India is on an assured track of growth and profitability. It is
expected to attract phenomenal investment in capital, human, technological and financial areas.
The total food production of India is estimated to double in the next ten years. Hence there is an
opportunity for large investments in food and food processing technologies, skills and
equipment. The major interventions in this context are, for example, Canning, Dairy and Food
Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing.
Health food and health food supplements are other rapidly rising segments of this industry. The
Food Processing Industry sector in India has been accorded high priority by the Government of
India, with a number of fiscal relief and incentives, to encourage commercialisation and value
addition. As per a study conducted by McKinsey and Confederation of Indian Industry (CII), the
turnover of the total food market is approximately Rs.250,000 crore (US $ 69.4 billion) out of
which value-added food products comprise Rs.80,000 crore (US $ 22.2 billion). Since the
liberalisation in August, till February 2000, projects of over Rs. 53,800 crore (US.13.4 billion)
have been proposed in various segments of the food and agro-processing industry. Besides this,
the Government has also approved proposals for joint ventures, foreign collaboration, industrial
licenses and 100% export oriented units envisaging an investment of Rs.19,100 crore (US $ 4.80
billion) during the same period. Out of this, foreign investment is over Rs. 9100 crore (US $ 18.2
billion).
Dairy Industry of India:
The Marketing White Book says that processed milk products such as ghee, cheese, butter, icecreams and other traditional milk based products like dahi, paneer are increasingly getting
organised with players investing heavily in technology and infrastructure to meet the surging
needs and demand in both domestic and export markets. India boasts of its credit of being the
27
largest milk producer on the earth besides offering a galaxy of opportunities to entrepreneurs
across the world in the dairy industry. India has been alluring a large number of investors to
invest in the milk production and dairy products manufacturingarena. While the dairy industry in
India is growing at a rapid phase, the liberal economy offers a very great number of opportunities
for foreign investors and MNCs to take advantage of the huge potential in this industry segment.
The dairy industry in India moves ahead with the chief aim of enhancing milk production
upgrading the processing of milk with the help of recent technologies. Apart from native
methods found implemented in the dairy industry sector, some of the important areas in the
Indian dairy industry can be upgraded by introducing differentiated technologies and devices
imported from overseas. Some of the crucial areas in which foreign technologies will be useful in
the Indian scenario include raw milk handling, milk processing, packaging and manufacturing
value-added products.
Size of Indian Dairy industry:
Being the worlds largest producer and consumer of dairy products, India represents one of most
lucrative dairy markets. The Experts forecast that the sales of dairy products in India will nearly
double its size from INR 2.6 Trillion (US$ 60 Billion) to around INR 5.1 Trillion (US$ 115
Billion) by 2016.
Indian Dairy Market Report & Forecasts 2011-2016 provides an analytical and statistical insight
into the Indian Dairy market. The study which has been undertaken using both desk research and
two waves of qualitative primary research has analyzed three aspects of the Indian Dairy Market.
The first section quantifies the Indian dairy market into twelve major classes and investigates the
current and future opportunities in each of these classes. The second section involves an in-depth
understanding of dairy consumption patterns among Indian consumers and the potential of value
added dairy products. The third section investigates the usage of natural colouration in dairy
products and evaluates their current and future potential.
Indias modern dairy sector has expanded rapidly. India is recognized as a biggest and fastest
growing market in the world for milk and milk products. India's dairy market is multi-layered.
Both public and private sector have contributed to the dairy industry growth in India.
Government dairy distributes 90% of its milk in sachets or in containers while remaining 10% is
marketed as butter, ghee etc. On contrary, private sector only markets 20% of milk and remaining
80% of milk is made into preparations suitable for exports.
28
Figure 2.1
29
In 2011, The Brand Trust Reportsaid that Amul is the Most Trusted brand in the Food and
Beverages sector.
Asian Case Research Journal says that the Amul Model narrowed the gap between the
producer and the consumer, connecting the dairy farmer to the consumer through its organic
network. The success of this model ignited interest across India, where this model was replicated,
in essence leading to the White Revolution. The case provides sufficient insights and learning to
develop a framework to comprehend the basic essence of a prosperous social enterprise factors
that make it successful.
Business to Business:
Business-to-business (B2B) describes commerce transactions between businesses, such as
between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting
terms are business-to-consumer (B2C) and business-to-government (B2G). B2B branding is a
term used in marketing.
The overall volume of B2B (Business-to-Business) transactions is much higher than the volume
of B2C transactions. The primary reason for this is that in a typical supply chain there will be
many B2B transactions involving sub components or raw materials, and only one B2C
transaction, specifically sale of the finished product to the end customer. For example, an
automobile manufacturer makes several B2B transactions such as buying tires, glass for
windscreens, and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to
the consumer, is a single (B2C) transaction.
B2B is also used in the context of communication and collaboration. Many businesses are now
using social media to connect with their consumers (B2C); however, they are now using similar
tools within the business so employees can connect with one another. When communication is
taking place amongst employees, this can be referred to as B2B communication.
Some characteristics of organizational buying / selling behavior in detail:
For consumer brands the buyer is an individual. In B2B there are usually committees of
people in an organization and each of the members may have different attitudes towards
any brand. In addition, each party involved may have different reasons for buying or not
buying a particular brand.
30
Since there are more people involved in the decision making process and technical details
may have to be discussed in length, the decision-making process for B2B products is
usually much longer than in B2C.
Companies seek long term relationships as any experiment with a different brand will
have impacts on the entire business. Brand loyalty is therefore much higher than in
consumer goods markets.
While consumer goods usually cost little in comparison to B2B goods, the selling process
involves high costs. Not only is it required to meet the buyer numerous times, but the
buyer may ask for prototypes, samples and mock ups. Such detailed assessment serves
the purpose of eliminating the risk of buying the wrong product or service.
2.3 Comparison of current project work with the work reported in the
literature by others researchers:
Since the company has recently decided to venture in Institutional sales, no research has been
undertaken in this area by the company. Also no relevant literature regarding the same could be
found from any other individual source.
3. Research Methodology:
3.1.1. Research Design:
Research Design
Exploratory Research
Conclusive Research
Figure 3.1
Survey
Experiment
Personal Interview
Primary Data:Primary data is collected by having direct interaction with respondents i.e.
Purchase Manager and Chef in the Hotels. Also primary data was collected with the help of
observations.
Secondary Data:Secondary Data is collected from Amuls official website, journals,
various reference books, various newspapers, and other internet websites.
3.1.3. Data Collection Methods:
Method used for Data collection is Survey. A survey is a research technique used to gather
information from a sample of respondents by taking Interviews. Normally surveys are carried out
to obtain primary data.
3.1.4 Data Collection Instrument:
Tools used for Data collection are Interviews and Observations.
Personal Interviewingis very flexible and can be used to collect large amounts of
information.Personal interview can be used in any type of questionnaire and can be conducted
fairly quickly.Interviewers can also show actual products, advertisements, packages and observe
and record their reactions and behaviour.
In Hotels, Purchase Managers and Chefs were interviewed and information was collected. Along
with this various observations were recorded during this process.
32
7. Making him aware of the various Amuls Fresh Dairy Products available.
8. Emphasizing the benefits of Amuls products over competitors.
9. Highlighting the various offers and schemes for bulk purchase.
10. Trying to get as many orders as possible.
Analysis of Interviews
1. How much is the consumption of Fresh Paneer?
No. of Hotels
7
10
6
3
4
Quantity (kg/day)
3 to 5
10 to 20
30 to 40
50 to 60
80 to 100
34
Figure 4.1
Graph shows that maximum consumption of Paneer is in range 10-20 kg.
Consumption of Paneer is directly proportional to the number of customer that dines in
the Hotel.
General observation is that Hotels which have maximum accommodation consumes
highest quantity of paneer.
Blocks (kg)
15
14
1
2
3
Table No. 4.2
35
Figure 4.2
This shows that most of the Hotels use packaging in proportion to their daily
consumption.
This means that the Hotels having higher consumption of Paneer use 2 kg packaging and
Hotels with less consumption use 1 kg packaging with few exceptions.
Hotels generally prefer smaller packaging of 1 or 2 kg so that it can be consumed within
small time frame.
36
Figure 4.3
From the above graph it is obvious that lesser the price higher purchase and consumption.
Conversely we can also say that higher is the quantity ordered more bulk discounts are
claimed and lesser is the price at which the paneer is purchased.
This was proven by the fact that Hotels which had highest consumption of paneer and
ordered in bulk, purchased at lower price.
No. of Hotels
7
5
3
8
3
4
37
Figure 4.4
Quantity (kg/day)
In-house
10 to 20
30 to 50
60 to 80
90 to 100
Table No. 4.5
38
Figure 4.5
Graph shows that maximum consumption of Dahi is in range 10-20 kg.
Consumption of Dahi is directly proportional to the number of customer that dines in the
Hotel.
General observation is that Hotels which have maximum accommodation consumes
highest quantity of Dahi.
7. Which packaging do you prefer?
No. of Hotels
10
13
Packaging
1 kg pouch
2 kg tub
39
Figure 4.6
No. of Hotels
8
6
5
4
40
Figure 4.7
Branded product i.e. Mother Dairy gets tough competition from Local suppliers.
Hotels generally prefer to purchase Dahi from the dairy in its vicinity.
This is gives them advantage that the nearby dairy can easily cater to the shortfalls in
their requirements.
Response
YES
NO
41
Figure 4.8
Graph shows that less than 50% Hotels use Flavoured Yoghurt.
Thus it can be said that awareness level of Flavoured Yoghurt is still considerably low.
Also it was observed that the Hotels that generally cater to the higher income group
include Flavoured Yoghurt in their menu list.
An inference that can be drawn from this is that Flavoured Yoghurt is yet to find the
liking with the common masses.
No. of Hotels
6
3
2
3
42
Figure 4.9
DANONE is preferred over other brands because of its brand reputation and International
presence.
DANONE has penetrated the market better and faster than its competitors.
DANONE gives better services and competitive offers.
100 ml cups
30 to 40 cups/day
50 to 60 cups/day
70 to 80 cups/day
Table No. 4.10
43
Figure 4.10
Flavoured Yoghurt is yet to find the liking with the common masses.
Since Flavoured Yoghurt is newly introduced, it is not so popular item.
There is more room for improvement in sales.
44
8) Institution have standards when it comes to fresh dairy products to which the Supplying
organization must adhere to if it wants to supply products to the institution.
9) Due to this there is inhibition in the minds of Purchase Managers to switch to new
products offered by Amul fearing the repetition of the same.
10) In spite of this when offered for Sampling of Amuls products many Purchase Managers
readily agreed.
11) Institutions at the higher end of the spectrum demand higher quality and are willing to
pay a higher price.
Conclusions:
From the research it was found that the awareness about Amul Flavoured yoghurt is
relatively low.
Freshness is one of the major reasons why Institutions did not prefer packaged paneer.
Amul has good brand perception in the eyes of Institutes; hence there is scope to improve
the sales of Amul products.
Advertising can play a significant role in generating awareness which is relatively low in
terms of flavoured yoghurt.
Personally reaching to Institutions and promoting the products can go a long way in
increasing the market share of Amuls Fresh Dairy Products.
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Limitations
The Area for research was from South Mumbai to Western Mumbai (Andheri).
Purchase Manager of Some Hotels did not give appointment specifying the reason that
they are out of town for 15 days and so on.
Few Hotels have their main branch in some other cities. So, they did not have authority to
make purchase decision.
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Recommendations
Explore corporate selling in star hotels:
Amul has not yet explored its full potential in Hotel industry. Decision makers in hotels
are Chefs and purchasing team. Providing samples of the products to taste will help to get
acceptance from them.
Approach:
Amul is very strong brand in dairy products. Therefore, Amul need not go for very
aggressive marketing and selling strategy. They only need to approach the Institutions
and through its sale persons and interns Amul should find out which competitors product
are being sold and with what offers. Amul can then provide Institutions with similar or
better offer and more often than not Amul will get orders because of its strong reputation
and trustworthiness as a brand.
Considerable discounts:
In order to get big orders, Amul should offer considerable discounts for bulk purchase.
This is required because Hotels believes in economies of scale i.e. more they purchase
they want it at comparatively less price. Amul can compensate for the lesser price earned
per unit by selling large volumes of its products.
Refine Delivery Schedules:
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Amul should refine the delivery schedules so as to be able to cater to the Institutes. This
is because some Institutes are not happy with the delivery of existing Amuls
product.Some Hotels complained that on ordering Amul butter, the order is not delivered
in time and they have to face lot of inconvenience once or twice a year.
Advertise to increase awareness:
Amul should advertise for the Flavoured Yoghurt, then awareness will increase among
the people and they will demand for it in Hotels. Amul can reach out to maximum
number of customer by focusing more on ads displayed on LCD/ LED screen in
Institutions. In this way customer will get aware of Flavoured Yoghurt and demand for
the same.
Amul can appoint Distributors specific for institutions in all areas in the city.
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Appendix (A)
1. How much is the consumption of Fresh Paneer?
2. Which packaging do you prefer?
3. At what price do you purchase Paneer?
4. How frequently do you purchase Fresh Paneer?
5. Who is supplier of fresh paneer?
6. How much is the consumption of Dahi?
7. Which packaging do you prefer?
8. Who is supplier of Dahi?
9. Do you use Flavoured Yoghurt?
10. Which brand do you serve in Hotel?
11. How much is the consumption of Flavoured Yoghurt?
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Appendix (B)
List of Hotels:
1) Taj Mahal Palace
2) Taj Vivanta
3) Grand Hyatt
4) Regency hotel
5) J. W. Marriot
6) Trident
7) Hotel Sea Princess
8) Shree Krishna
9) Taj Lands end
10) Hotel Midland
11) Juhu Residency Boutique
12) Summer Harvest
13) Hotel Bawa Continental
14) Hotel Sea Side
15) The Orchid
16) ITC Maratha
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Bibliography:
http://www.amul.com/
The Marketing White book 2011-12, page no. 137-139.
C. R. Kothari,1985, Research Methodology- Methods and
cream-brands-hone-in-on-indias-growing-affluent-class/
http://nmcc.nic.in/pdf/FPI_Report.pdf
http://www.intercooperation.org.in/
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