Beruflich Dokumente
Kultur Dokumente
ON
By
PRASAD SURYAWANSHI
(AMUL)
A REPORT
ON
On
(Class of 2016)
I, undersigned honestly declare that, this project titled Study of Sales & Distribution for Amul
(GCMMF) is a genuine project prepared by me and submitted to the Director, Lotus Business School,
Punawale, Pune 411033 in a partial fulfillment of MBA.
The project work is original and conclusions drawn herein are based on the data collected by myself.
To the best of my knowledge, the matter presented in this project has not been submitted for Award of
any degree, diploma or membership either to this or any other Institute or University.
Place:
Table of contents
Acknowledgment
2. Review of literature
2.6 Competitors
5 Conclusions
6.Bibliography
7. Annexure
ACKNOWLEDGEMENT
For the guidance provided. This project would not have reached its end without
the supervision and direction which he gave. I thank him and the staff of Pride
of cows for spending their valuable time and energy in guiding me throughout
this project and for certifying me for my successful completion of the project
report.
And last but not the least I would like to thank Prof.Megha Jain; Faculty guide
for giving the assistance and the support needed. His guidance was of utmost
importance to the project.
Introduction about the Sector:
The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in
the country and over the years has been growing at a very steady pace. The sector consists of
consumer non-durable products which broadly consists, personal care, household care and
food & beverages. The Indian FMCG industry is largely classified as organized and
unorganized. This sector is also buoyed by intense competition. Besides competition, this
industry is also marked by a robust distribution network coupled with increasing influx of
MNCs across the entire value chain. This sector continues to remain highly fragmented.
Industry Classification:
The FMCG industry is volume driven and is characterized by low margins. The products are
branded and backed by marketing, heavy advertising, slick packaging and strong distribution
networks. The FMCG segment can be classified under the premium segment and popular
segment. The premium segment caters mostly to the higher/upper middle class which is not
as price sensitive apart from being brand conscious. The price sensitive popular or mass
segment consists of consumers belonging mainly to the semi-urban or rural areas who are not
particularly brand conscious. Products sold in the popular segment have considerably lower
prices than their premium counterparts.
Review of Literature:
Dairy Industry:
A dairy is a business enterprise established for the harvesting or processing (or both) of
animal milk mostly from cows or goats, but also from buffaloes, sheep, horses or camels
for human consumption. A dairy is typically located on a dedicated dairy farm or in a section
of a multi-purpose farm (mixed farm) that is concerned with the harvesting of milk.
Milk producing animals have been domesticated for thousands of years. Initially, they were
part of the subsistence farming that nomads engaged in. As the community moved about the
country, their animals accompanied them. Protecting and feeding the animals were a big part
of the symbiotic relationship between the animals and the herders.
In the more recent past, people in agricultural societies owned dairy animals that they milked
for domestic and local (village) consumption, a typical example of a cottage industry. The
animals might serve multiple purposes (for example, as a draught animal for pulling a plough
as a youngster, and at the end of its useful life as meat). In this case the animals were
normally milked by hand and the herd size was quite small, so that all of the animals could be
milked in less than an hourabout 10 per milker. These tasks were performed by a
dairymaid (dairywoman) or dairyman. The word dairy harkens back to Middle English
dairies, dairy, from deye (female servant or dairymaid) and further back to Old English doge
(kneader of bread).
Radder and Natalie heather smith conducted a study on milk marketing by selected dairy
companies in Port Elizabeth. The objectives of the study were to determine consumers milk
consumption patterns and factors which influence Consumers milk consumption and to
review the major competitors in the Port Elizabeth. The study found that most of the
respondents used milk for whitening of tea or coffee and they had the opinion that the milk
was very healthy and it was an enjoyable tasting beverage and they felt that quality,
availability and freshness were the most influencing factors. The study also found that the
increasing competitiveness in the milk industry, including the no-name brand milk was
forcing dairy companies to sell the milk at very low profit margins.
Jha and Debroy made a study on globalizing Indian dairy sector. The study found that the
impressive growth of India's dairy sector during the last 3 decades has been possible through
supportive trade policies. In light of the World Trade Organization (WTO) Agreement on
Agriculture, pressures on India to liberalize imports have been increasing. Nations such as the
USA and countries of the European Union continue to support their own dairy industry to the
extent that it distorts the world dairy market. In India, dairy products are largely protected;
skim milk powder (SMP) is, however, an exception. The Indian government decision to allow
free import of SMP at zero duty can adversely affect the entire dairy sector. Trade restrictions
on other dairy products would eventually be lifted following WTO agreements. The existing
rate of import duty (around 38%) will be sufficient to protect domestically manufactured
dairy products. Therefore, removal of import restrictions on these products will have minimal
effect. Indian milk products are not competitive in the world market despite the fact that milk
price in India is one of the lowest in the world. This indicates inefficiency in processing of
milk in India.
Reference:- Jha B and Debroy B., Towards globalising Indian dairy sector, Journal Asian economics,
Rev. 2000, Vol. 42, No. 2, Pp306-319.
Introduction Amul
Company Profile:-
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food
product marketing organization with annual turnover (2013-14) US$ 3.0 billion. Its daily
milk procurement is approx. 13.18 million lit 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 organization 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
exclusive marketing organization 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 our 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.
Many of our 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.
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 Besides India, Amul has entered overseas markets such
as Mauritius, UAE, USA, Oman, Bangladesh, Australia, China, Singapore, Hong Kong and a
few South African countries. Its bid to enter Japanese market in 1994 did not succeed, but it
plans to venture again.
Awards
Amul receives Srishti Good Green Governance award for the year 2013
Amul wins AIMA High Performance Brand Award-2013 for brand Amul
GCMMF wins the SAP Award for Customer Excellence (SAPACE) 2013 under the
Amul Bags Srishti G-cube Award For Good Green Governance - 2009
Amul - The Taste Of India (GCMMF) Receives International CIO 100 Award For
Resourcefulness
Products Like Nutramul Energy Drink, Amul Kool chocolate milk, Amul Kool
flavored Bottled
Milk are targeted for the Kids aged 4-16 specially school going.
Products such as Amul Kool Milk shake, Amul Kool, Amul Kool Caf, Kool
Koko, Nutramul and Enrgy Drink, are mainly targeted for the College going
young people.
Strength:
Brand Name
Weakness:
Opportunities:
Threat:
Mother dairy
Nestle
Chitale
Gokul
Shivamrut
Gowardhan
Competitor:-
Indian competitor Chitale , Gokul , katraj , Gowardhan
Defending again Mahananda Vijay, Milma and other Co operative Milk Brand
Amul model:
Research Title: Study of Sales & Distribution of Amul Milk
RESEARCH PROBLEM
Seek the problems in Sales & Distribution of Amul milk.
Which is the main factor which affects milk selling? (Quality, price, availability)
Information requirement
First, I had selected area in PCMC, PUNE
Before going for the survey I had taken Distributor & Retailers list with me.
I had taken comparative packs and Prices of all the competitors existing in the
market.
Since Milk is a product that used daily hence I had to trace the market and segment it,
which mainly deals with Retailers of various areas.
The main information needed is the various types of brands available in the market,
their calorific value and various other facts.
As Amul milk advertisements are mainly done through hoardings but on television the
advertisement is being telecasted timely and on the proper time or not.
RESEARCH DESIGN
A Research design specifies the methods and procedures for conducting a particular
study. It is a map (or) blue print to which the research is to be conducted. Descriptive
research design has been considered as a suitable methodology for present study and
for data analysis.
SAMPLING DESIGN
The sampling design was used Stratify Random Sampling, which is a non-probability
sampling method. The convenience factors were the availability and approachability
of the respondents.
SOURCES OF DATA
Primary sources:
Secondary sources:
I visited as many respondents as I can and asked them their real likings about any
Milk Product and also got an idea.
In order to collect accurate information I visited to Many Retailers each and every
question was filled personally by the respondents and checked properly.
People were not willing to answer, when they were contacted between 1.00 pm to
4.00 pm, the time when most of the people take rest during the scorching heat.
I have divided Research project into four phases for data interpretation.
Market
Customer
Retailer
Distributer
MARKET
In phase one I basically visited the market. This phase includes the activities like.
Number of stores
1. Market Analysis
A market analysis studies the attractiveness and the dynamics of a special market within a
special industry. It is a part of industry analysis and thus in turn of global environmental
analysis. Through all of these analyses the strength, weakness, opportunities and threats
(SWAT) of a company can be identified. With the help of market analysis, adequate business
opportunities of a company will be defined. The market analysis is also known as a
documented investigation of a market that is used to inform a firms planning activities,
particularly around decisions of inventory, purchase, work force expansion, facility
expansion, purchase of capital equipment, promotional activities, and many other aspects of a
company.
In market analysis step I visited the whole market to know the actual size of market. The
target markets were very big. Attacking whole market at the same time was not possible, so I
divided the whole market into different parts. So that I can focus on a small part at one time. I
also listed all the retail shop in that area.
I have been allotted the areas to penetrate AMULS product which is AMUL Milk
Khadki Bazar was basically a dry market for AMUL milk. AMUL was preforming well in the
other markets of Pune. Competition was increasing in every market as new and small players
were entering into the market, and there was also stiff competition from big existing for the
new product AMUL milk and here we had done survey with retailers to find that which brand
of milk retailers are selling and is it selling Amul milk to Know our product can stable.
DATA INTERPRETATION
Analysis of Milk:
22 9 7 8 4 21 16 9 4 43 7 37 13
1. Daily Purchase of Milk:
Consumption
more than 1.5lit
10%
500ml
1.5lit 28%
18%
1it
44%
From above diagram 18% consumers consume 1.5lit milk every day. 44% consumers
consume 1lit milk. 28% consumers consumes 500ml. 10% consumers consume more than
1.5lit.
Prefered brand
other
8%
gokul
16% Amul
44%
Katraj
14%
Chitle
18%
Above chart shows the percentage of Brand preferred by consumer. Here 44% consumer
consumes Amul, 18% consumer prefer Chitale, 14% consumer prefer katraj. 16% consumer
consumes Gokul. & 8% consumers consumes other brands.
Mode of Purchase
Home delivery
Retail Purchase 48%
52%
In this diagram mode of delivery preferred is shown here. Here 25% prefer retail purchase &
48% prefer Home delivery.
Avaliablity Quality
18% 42%
Price
32%
This pie chart shows purchase factor of purchasing milk. Here 42% consumers value quality,
32% consumer value price, 18% consumer value availability and 8% doesnt purchase
because of other factors.
Tried Amul
Amul No
26%
Amul yes
74%
This pie chart shows how many people tried Amul milk. Here 74% consumer have tried
amul and rest 26% does not tried amul.
7. Specific reason for not using? a) Availability........ b) Not Aware........
Availability
100%
This chart shows the factor because of which Amul is not consumed by some consumer and it
is only availability
Retailer Survey
We also did retailer survey in that area. We visited every retail shop and asked them which
companys milk you sale the most in milk, which companys curd sale is highest, is there any
awareness between the customers about the AMUL product. How many competitors are there
in the market?
This survey is done in Dapodi and Bopodi I had visited 100 retailers shop. The analysis of
this survey out of 100 retailers 19 retailers do not sale amul milk due to low margin. And
many shops are provision store in Dapodi & Bopodi and some are milk booth.
Total sales in liters of milk in Dapodi & Bopodi daily sales.
Amul-1588
Chitale-162
Gokul-201
Katraj-197
Others-766
Now our target is to increase more sales on those retail shops who are taking amul milk. And
those who are not taking we will clear there problems.
Chart Title
other
26%
Amul
Katraj 54%
7%
Gokul
7%
chitale
6%
This pie chart shows total sale of milk at retail stores in Dapodi and Bopodi area. Here
retailers sale Amul milk 54% and 6% chitale, 7% Gokul, 7% Katraj, 26% other brands.
DISTRIBUTER
In this phase we tackle a lot of distributer problem. Distributers role was very important but
he was facing a lot of problem product is new in the market. I am working in Babu Provision
distributor market the distributer was distributing 1800 lit AMUL milk.
There were also other problems related to distributer like distribution pattern. Market area
was very big. We have basically divided the whole area into 4 parts. What he was doing is
that instead of distributing in one area at one time he was first entering into one area and
without completing that area he used to move to another area and again returning to that area
in the end. So due to this his cost was increasing.
Timely delivery of milk was also a big problem. Retail shops basically open in the morning
around 6 o clock. And distributor have to distribute in the morning. So the shops owner
expect the Milk to rich their store as the store opens. But the distributer was not able to
deliver Milk on time to every retail shop. Due to this some store stopped selling AMUL milk.
There were also payment issues between distributer and retailer. As distributer distributes the
milk he wants his money at the same time but shop owner says that my shop has just opened
and he cannot make payment right now. This makes the relationship hostile between the
retailer and distributer.
Skipping of shops was also a big problem of distributer. He is in the market and at the time of
distributing milk he was unknowingly skipping shops. Due to this his sale was decreasing.
Solution of Distributer Problem:
Due to all these problems distributer was about to leave the company. He had invested a lot
and in return he was earning nothing. It was our responsibility to convince him to continue.
So we provided some solutions to him.
To solve the problem of long path that he was following we prepared a route map and
indicated every shop on it. This helped him a lot as he had a map with all the shops indicated
on it. Now he had the fair idea about where he has to go next.
To solve the payment issue and timely delivery of milk problem, we visited every
retail shop again and talked to the retailer. We convinced the retailer to make payment to the
distributer the same day in the evening. At this point both distributer and retailer agreed as
distributer was getting his payment same day and retailer had to make payment in the
evening. Till that time retailer also got the money by selling milk.
Retailer wanted the milk in the morning as milk sale is more in the morning and less
in evening but distributer was not able to deliver on time because of too many shops. So what
we did is that we visited those shops where milk was reaching late. We talked to them and
convinced them to take milk in the evening so that in the morning if distributer reaches late to
their shop they would have enough milk to sale to the customers.
We also visited every retail shop with the distributer in the morning when he
distributed the Milk to ensure that the does not skip any shop.
LEARNING
Conducting survey
Promotional activities
Team Work
In some areas customers has emotional attachments with the local brands, in such case
convincing customers was very difficult and it requires good communication skill and
great present of mind, so it taught me this things too.
FINDINGS
From the market survey we got the information that customers have emotional
attachments with the local brands
There is demand of AMUL milk in some area but due to non-availability of product,
customers are purchasing other milk
AMULs is the customer centric company. It gives low margin to the dealers and
distributors so that customers can get the product at low price
Price of AMUL curd, milk, and buttermilk is low as compared to the other local
brands
Suggestion
1. I suggest GCMMF to maximum concentrate on retailers for designing the marketing
strategy, because retailers role in the market is dominant, even in the various decisions.
2. Since Amul is having loyal customers and therefore should concentrate more on this
factor through various potential programmers such as campaign, premium packs, offers etc.,
this helps to increase the loyalty towards the Amul products.
3. Amul Should set distributors area as per his market potential. GCMMF should
motivate distributors to increase sale according to their potential.
CONCLUSION:
From the survey conducted it is observed that Amul milk has a good market share.
The factors considered by the Retailers before purchasing milk are freshness, taste,
thickness and availability.
Finally I conclude that, majority of the Distributors & Retailers are satisfied with the
Amul milk and Milk products because of its good quality, reputation, easy
availabilities. Some Distributors & Retailers are not satisfied with the Amul Milk
because of high price, lack of dealer services, spoilage and low shelf life etc.
therefore, if slight modification in the marketing programmed such as dealers and
outlets, promotion programmers, product lines etc., definitely company can be as a
monopoly and strong market leader.
Amul has also to take care of its competitors into consideration and more importantly
its customers before making any move.
Annexure:
NAME OF SHOP-
CONTACT NO-
DETAILED ADDRESS-
IF YES
NON EXCLUSIVE-------
Bibliography:
www.amul.com
https://www.google.co.in/search?newwindow=1&hl=en&biw=1366&bih=632&q
=amul+pro&oq=amul+pro&gs_l=serp.12...0.0.0.187717.0.0.0.0.0.0.0.0..0.0...0
.0.0..1c..16.serp.Wyp2DHt5Fuw
http://www.icmrindia.org/casestudies/catalogue/Marketing1/MKTA011.htm
http://www.thehindubusinessline.com/news/amul-marketing-campaign-wins-
award-at-global-dairy-congress/article6129639.ece
http://www.indairyasso.org/