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PGDM, Report 2011

DEVELOPE THE STRATEGY TO


IMPROVE THE VISIBILITY AND

PENETRATION OF AMUL ICE-


CREAM IN KOLKATA

SUBMITTED TO

AMUL, KOLKATA

SUBMITTED BY:

ANIKET KUMAR, Intern (PGDM-2010)

CHANDRAGUPT INSTITUTE OF MANAGEMENT, PATNA


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PGDM, Report 2011

Executive Summery
This project report mainly focuses on “Improving Visibility and Penetration of Amul
Ice-cream in Kolkata market.” Ice-cream industry is a very profitable business, in spite
of that new players fear to enter in this industry. The main reason is that they have to
provide freeze to retailers and also there is the supply of Power constraints. So all the Ice-
cream industry Players have to depend on electricity. The consumption of Ice-cream in
India is 300ml per year only, which is far from other developed countries. Infrastructure
is the main problem for these players to enter in the market.

In the process of our project I was assigned to find out the problem and increase the
penetration of Amul Ice-cream through convincing new retailers to keep Amul. I was
given a specific area of northern Kolkata where I will be given to search new retailers as
well as see the visibility through taking size of banner, requirement of POP (Point of
Purchase), Hoarding, Pamphlet for Amul etc. I also found many problems in this process.
I.e. Amul is having very less supply of Ice-cream, many retailers is complaining about
Amul that I bought deep-freezer from Amul but I couldn‟t get free Ice-cream as promised
by the company. So based on the responses from market I develop questionnaire for
survey that what are the things affecting retailers to keep product of a particular company.

The report provides a comprehensive insight into the company and also about the
SWOT analysis of company. This report mainly studies in detail the various factors
affecting retailers to keep particular company‟s product.

Based on the collected data I have done t-test of the responses of retailers. My main
objective behind selecting this analytical tool is to compare the factors between Amul and
Kwality. Because of Kwality is leading in Kolkata due to good in distribution channel
and availability of product almost in every market of Kolkata. Owing to non-availability
of Amul Ice-cream in every market Amul is losing market share in Kolkata. Basically

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Analytical tool give the result of those factors which is affecting Amul business in
northern Kolkata most. The factors which are affecting Amul most are Supply of Ice-
cream, less Support given by company, lest frequency of feedback taken by Amul
employee, Slow response of claim, and less attractive schemes. Among these factors
supply is the main factor that is affecting penetration level of Amul. I get to know from
this survey that many retailers have left keeping Amul due to supply. Some of the Apo‟s
has shut down because of not having all the Amul product in his/her shops so how they
can do business.

Research Methodology:-

(a) Research Objective:- My main objective of the research of was to increase the
visibility and Penetration of Amul Ice-cream at retail level in northern Kolkata. In
this process company is ask to find out potential retailers so that the penetration of
Amul would increase in Kolkata market.
(b) Research Design:- This research is adopted as descriptive based.

(c) Data sources & Type:- The data sources used for this project are both primary as
well as secondary. Primary data collected through asking of questions to retailers.
Secondary data collected from office of the company.

(d)Research Tool:- The main process of data collection was through filling of
questionnaire. The questionnaire consists of finding problem from market as well
as the satisfaction level of retailers.

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PGDM, Report 2011

Sampling Methodology

The sample consists of the retailers in North Kolkata under a particular distributor who is
covering these parts of north Kolkata.

The size of the sample of this survey is 50 retailers of Amul consisting


Metro and other brand and 50 retailers of Kwality.

Finding:- Brand Image of Amul products is very excellent in the market. But as
demand is more which hamper supply of products. Main factor of the Amul lacking in
north Kolkata is supply of Product.

Recommendation:- Amul should first look at the supply of their product and second
the variety of the product, because most of people want new type of Ice-cream. So Amul
need to take care of the proper supply of all the variety of Ice-cream.

To improve the penetration level in the Market Amul should look after these
problems and try to eliminate in business prospective. Suppose Amul is losing 5-retail
outlet in a year and these five retailers was giving about 2-5 lakhs sales to Amul so the
attrition rate by Volume in term of money and sales will definitely decrease. So Amul
should do business in long term prospective not in short term.

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PGDM, Report 2011

DECLARATION

I hereby declare that this dissertation entitled “Develop the strategy to improve the

visibility and penetration of Amul Ice-cream at retail level in northern Kolkata market.”

submitted in partial fulfillment for the Award of Post Graduate Diploma in Management

to Chandragupt Institute of Management Patna, was a record of independent research

work carried out by me.

I also declare that this dissertation was a result of my own efforts and has not been

submitted earlier for the award of any degree/ diploma to any other University.

Aniket Kumar

Chandragupt Institute of Management Patna.

Name of the Organization Mentor- ……………………………… (Signature)

Name of the faculty Mentor- ……………………………….. (Signature)

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PGDM, Report 2011

AKNOWLEDGEMENT

First and foremost, I extend my heartfelt gratitude towards Chandragupt Institute of

Management, Patna and Amul, for giving me opportunity to work on this project.It had

been an enriching experience for me to undergo my summer internship under Amul,

which would have not been possible without help and support of all the people around. I

would like to express my sincere thanks to all the people who supported me during the

project. I extend my sincerest gratitude and thank to Mr. Manoranjan Panikar, Mr.

Sanjeev kumar, Mr. Shyamal Gosh and Prof. S.Dutta for mentoring and guiding me

throughout my internship. Without their constant guidance and support it would have

been impossible for me to complete the project in time. I also take this opportunity to

thank all the people who are working as PSM in Amul for guiding me about the location

and process to convince retailers.

Last but not the least I thank all my friends and members of my family for

encouragement and moral support they had provided.

However, I accept the sole responsibility for any possible error and would be extremely

grateful to the readers of this project report if they bring such mistakes to my notice.

Aniket Kumar

Intern,

Chandragupt Institute of Management, Patna.

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PGDM, Report 2011

Table of Content
1. INDUSTRY ANALYSIS........................................................................................................................................8
1.1 ICE-CREAM INDUSTRY: Overview..............................................................................................8
1.1.1 The Ice-cream Business.............................................................................................................11
1.1.2 Ice-cream Industry: Growth Rate.........................................................................................11
1.1.3 The Challenges................................................................................................................................13
1.1.4 Porter‟s Five-Force Analysis..................................................................................................14
2. GCMMF: An Overview( Amul)...................................................................................................................19
2.1 Ice-cream Market........................................................................................................................................20
2.2 Amul-The leader in Ice-cream............................................................................................................21
2.3 Amul Scooping Parlors............................................................................................................................22
2.4 Investment Required.................................................................................................................................23
2.5 Amul Kolkata Market...............................................................................................................................25
2.6 Mission of Amul..........................................................................................................................................26
2.7 SWOT Analysis...........................................................................................................................................27
3. WORK: AT COMPANY......................................................................................................................................34
4. OBJECTIVES OF STUDY................................................................................................................................37
4.1 Visibility...........................................................................................................................................................37
4.2 Penetration......................................................................................................................................................38
5. ANALYSYS AND FINDINGS........................................................................................................................43
5.1 Qualitative Analysis..................................................................................................................................44
5.2 Quantitative Analysis...............................................................................................................................47
6. CONCLUSION.........................................................................................................................................................68

6.1 Limitation of Study...................................................................................................................................69

7. SUGGESTION.........................................................................................................................................................70

8. QUESTIONNAIRE & BIBILIOGRAPHY

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1.0 ICE-CREAM INDUSTRY

The main objective of industrial analysis is to assess the prospects of various industrial

groupings. At any stage in the economy there are some industries which are growing

while others are declining, the performance of companies will depend among other things

upon the state of the industry as a whole and the economy. If the industry prosperous, the

companies within the company may also be prosperous although a few may be in bad

shape. The share price of the company is empirically found to depend up to 50% on the

performance of the industry and economy. Indian summers are synonymous with ice

creams. Come summers, and you will see a number of colorful pushcarts selling the

choicest of ice creams in numerous flavors from the traditional vanilla and chocolate to

unusual varieties like Amul‟s Pro-biotic ‟Pro-light‟ and sugar-free. If that doesn‟t baffle

you then the ice cream range definitely would, for example the ice cream range for the

children would be entirely different from that for the teenagers or for that matter adults.

Or, for those who like to have ice cream in peace, there are a number of ice cream parlors

that are opening.

1.1 The Ice-Cream Industry: Overview

The ice cream industry in India is in many ways, reflective of the overall population

distribution. The country‟s population is primarily rural with approximately 65% of the

population living in villages with a population of less than 5000; this means there are

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well over 150000 villages with a combined population in excess of 650 million. This has

contributed to a highly fragmented industry that by many estimates has over 70,000 Ice-

cream entities. Many of these are single family operations where the product is made

either in the home or in very small factories and sold on the streets. The 350 million

remaining people are concentrated in the cities where the industry is reasonably

concentrated in the hands of a few international domestic firms. It is estimated that only

30% -40%of the entire market is organized and the industry meets the classic definition

of a fragmented industry, that is, one where there is an absence of market leaders with

power to shape industry events.

Looking at some industry facts first, in 2007, the global market of ice creams was pegged

at $61.6 billion in terms of retail value or 15 billion liters in terms of volume. Of this, the

Asia-Pacific ice cream market was worth $13 billion in terms of retail value and 5,128

million liters in terms of volume. Coming to India, the Indian ice cream industry is

currently estimated to be worth Rs. 2,000 crores, growing at a rate of approximately 12%.

RS Sodhi, Chief General Manager of Gujarat Co-operative Milk Marketing (GCMMF),

the makers of „Amul,‟ explains, “The ice cream market in India can be divided into: the

branded market and the grey market. The branded market at present is 100 million liters

per annum valued at Rs. 800 crores. The grey market consists of small local players and

cottage industry players.” In 2008-09, in the branded ice cream market, Amul held the

number one spot, with a market share or 38%, followed by Kwality Walls at 14%, Vadilal

at 12% and Mother Diary at 8%.


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Despite a decent growth rate, the ice cream industry faces the challenge of low per capita

consumption. The ice cream industry in India is worth Rs. 2,000 crores. The industry can

be divided into the branded market and the unbranded market. The branded market at

present is 100 million liters per annum valued at Rs. 800 crores. The per capita

consumption of ice creams in India is just 300 ml per annum, compared to 22 liters in the

US, 18 liters in Australia, 14 liters in Sweden. India is a way too far behind even in terms

of the world average per capita ice cream consumption of 2.3 liters per annum. This is

when; India is a country with hot climate with a young population. Pankaj Chaturvedi,

Executive Director of Baskin Robins, explains “Indian cuisine has a huge range of

desserts in its mix. Ice cream always competes against these for attention.” Besides

desserts, ice cream also vies for attention with other like foods for example in summers

with cold drinks, coffee, juice, etc.

Another trend that is witnessing a change is the seasonal nature of the industry.

Having said that, the peak season for ice cream still remains the summer months of April-

June and dips in the months of November-February. According to the industry players,

this trend especially holds true for the North and the Western parts of India. According to

Pankaj Chaturvedi, “The variation in sales for Baskin Robins can range from 15–30%

from season to off season depending on geography and brand.

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Ice-Cream Industry

Others
18%
Arun Amul
4% 38%
Cream Bell
6%

Mother Dairy
Vadilal
8% Kwality
12% 14%

1.1.2The Ice-cream Business

The ice cream industry has traditionally grown at a healthy rate of 12% year-on-year.

“The growth in Ice cream industry has been primarily due to strengthening of distribution

network and cold chain infrastructure. Channels such as Mobile Vending Units have been

increasing year on year to reach out to a larger set of consumers. Besides, consumers also

have the choice of trying out varied product offerings from different brands to keep them

excited,” said Paul Thachil, CEO – (Dairy & Foods, Mother Dairy Fruit & Vegetable.)

1.1.3 Ice-cream Industry: Growth Rate (Kumar, 2009)

The three factors of growth, population, per capital consumption, and price are all the

three factors of growth, population, per capital consumption, and price are all projected to

increase over the next six years. Population is projected to grow at 1.34(from 2010

census) %, per capital consumption is projected to grow at 5%, and prices are projected

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prices is expected to rise at

3.5%, however, given the intense

level of competition Ben &

Jerry‟s does not think it likely

that Ice-Cream prices will rise

that fast. Overall the market will

grow from 224 crores to 360

crores yearly, compounded growth rate of 16%. Of the 136 crores in growth, 60% come

from increased per capita consumption, 24% from increased population, and 16% from

increase in price. The basic steps in the manufacturing of ice cream are generally first

blending the ingredients, pasteurization, homogenization, aging the mix, freezing, and

hardening. Now, 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.

Manish Vithalani of Space Dotz informs, “A ice cream mix (consisting of milk,

emulsifier, sugar and so on) costs about Rs. 60-65 a liter. And in one liter you can add up

to one litre of air. Therefore, per liter the mix would cost you approximately Rs 32. If you

take an 150 ml cup, you can make 13 cups of ice cream from one liter of mixture.

Calculating on that basis, the per cup costing comes to about Rs 5. Now add to that Rs 5
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worth of packaging cost, electricity, labor, 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 eats.

Besides selling their products through kiosks, parlors and push carts, a significant

part of the revenue comes from corporate sales. Says Pankaj Chaturvedi, “About 55% of

our business is contributed by exclusive ice cream parlors and kiosks while 30% is from

corporate or food service (as we categorize it) sales. The rest comes in What is the cost of

setting up a small scale ice cream manufacturing unit? Manish Vithalani says, “The cost

for setting up a small scale ice cream plant could come to approximately Rs. 10 lakh,

from retail and exports.” including the cost of a ice cream plant, labor (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

flavors made from fruits. Some players like Mumbai-based Space Dotz are also coming

up with newer technology. According to Dilip Jagad of Space Dotz, “Unlike the normal

Ice cream, our product comes in the form of balls. Besides, the product has no air content

and uses cryogenic technology, used in rocket science.” Another noteworthy innovation

was the pro-biotic and low fat ice cream bought into the market by Amul.

1.1.4 The Challenges:

There are several challenges that affect the industry adversely. As mentioned earlier, the

industry players not only face competition from their competitors, but also from other

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like foods. Though changing, consumers still consider ice cream as a dessert and a side

item. Sharing his experience, Sidharth Jaiswal of Monginis , a food bar chain, says,

(Chandra, 2010)“We had introduced ice creams on an experimental basis in our food

outlets in some part of country. We observed that consumers ordered ice creams as a side

item or only when they were accompanied by children. We eventually decided not to

move ahead with it.” Moreover, of the ice cream consumption in India, nearly 60% is

accounted to by three flavors of vanilla, strawberry and chocolate. And to be on the safer

side, major players tend play around these flavors 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. Manish Vithalani

says, “Besides the presence of other players, another hurdle is the the high rent charged

for floor space, especially in malls. This also becomes a problem when we try to expand.”

1.1.5 PORTER’S FIVE FORCE ANALYSIS

Porter identified five competitive forces that shape every single industry and market.

These forces help us to analyze everything from the intensity of competition to the

profitability and attractiveness of an industry. Figure 1 shows the relationship between

the different competitive forces. Michael Porter provided a framework that models an

industry as being influenced by five forces. The strategic business manager seeking to

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develop an edge over rival firms can use this model to better understand the industry

context in which the firm operates.

In order to supply and asses the strength of external competitive forces on the ice-

cream industry. I utilized a common analytical tool, Porter‟s five forces model. It is used

to get a general overview of the threats to the profitability of ice-cream business, though

the model does not help in analyzing firm‟s specific demands, it gives some specific

information of its business environment.

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Buyer power-

 Buyer power is determined by various factors such as switching costs, the relative

volume of purchase, the standardization of the product, elasticity of demands brand

identity, and quality of the products.

 Customers are able to substitute from one brand of ice-cream to another at any point

of time. There are many Ice-cream products and brands to choose from, so the buyer‟s

cost of switching to competing brands is relatively low.

 Bargaining power of customer is high because the competition is very high and there

are many players‟ i.e. local as well as branded players, take for example Kolkata has

as many as 32 brands of ice-creams.

Amul„s strategy must include strong product differentiation so that buyers are less able to

switch over without incurring large costs, Amul upholds a strong brand identity in the

ice-cream industry. It is perceived as having a higher quality. Thus it is having stronger

point of differentiation.

Supplier power-

 The suppliers to the ice-cream industry include dairy farmers, paper container

manufacture, and suppliers of various flavors. The principal inputs are commodities

available in the market.

 Factors affecting the bargaining power of supplier include the threat of forward

integration and the concentration of suppliers. There exists numerous potential

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suppliers of ingredients .The ingredients provided by each supplier are not unique or

greatly differentiated. Furthermore Ice-cream manufacturers are able to switch

between suppliers quickly and cheaply.

 Also many of the suppliers viably are tied to the well- being of large, established

companies. There for the bargaining power of the suppliers is rather low.

However Amul being milk co-operative has to empower the milk producers and farmers

so that they get a remunerative return. Therefore a certain power is vested in the hands of

the farmer‟s societies.

Threat of substitutes-

There are no perfect substitutes to ice-creams because of its very nature. However many

substitutes product are available within the desert and frozen food industry (cookies,

cakes chocolates, etc) which are basically food items which are consumed at leisure.

So the threats of substitutes are high, cold drinks are the major substitute of it and it is

mostly a desert item so sweets are also a substitute of this like in the parties.

Potential Entrants:

 The barriers to entry within the ice-cream industry are moderate due to brand

preferences and customer loyalty towards the larger and more established companies.

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 Other obstacle to new entrants includes the requirement of large source of capital,

specialized mixing facilities and manufacturing plants.

 In addition the accessibility of distribution channels can be difficult for an unknown

firm with a little or no brand recognition.

Industry Rivalry:

 The principal competitors in the ice-cream industry are large , diversified companies

with significant greater resources such as Amul . Kwality Waals Mother diary, Vadilal

and Cream and Bell , besides a low threat of local manufacturer.

 Rivalry can be characterized as intense, given that numerous competitors exists, the

cost of switching to the rival brand is low, and the sales increasing tactics employed

by other rival threatens to boost rivals unit volume of production.

 Also there has been a surge in the number of Ice-cream parlors such as Baskin robins,

Gelato. The growing popularity of such premium parlors providing specialty Ice-

creams will also tend to affect the business of existing companies.

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2.0 GCMMF: An Overview (Amul) (Amul:GCMMF, 2010)

Gujarat Co-operative Milk Marketing Federation (GCMMF),

custodian of the Amul brand is India's largest food products marketing

organization.

With its wide product portfolio GCMMF today has a turnover in excess of Rs. 6700 Cr.

With a singular focus on marketing and distribution, GCMMF today reaches consumers

in all parts of the country. A state level apex body of milk co-operatives in Gujarat, it has

been an endeavor of GCMMF to provide remunerative returns to the farmers and they are

facilitated by specially trained consultants, 736 Village Dairy Cooperative Societies

(VDCS) have conducted their Vision Mission Strategy Workshops, prepared their

Mission Statements and Business Plans for next five years. Till date, 6508 VDCS have

prepared their mission statement and Business plan under the initiative. During the year,

5173 VDCS have also reviewed their business plan under annual revisit of VMS and

have prepared action plan for next year to propel the momentum gained through VMS.

During the year three member unions namely Rajkot, Bharuch and Gandhinagar have

initiated VMS program in their VDCS. The core groups have trained 145 consultants of

these Unions for expanding the reach of the initiative.

It also serves the interest of consumers by providing quality products which are good

value for money. The range of the Amul Products is following:

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PGDM, Report 2011
o Amul Milk : o Amul Sweetened Condense
o Amul Butter: Milk:
o Amul Malai Paneer o Amul Masti Butter Milk:

o Amul Kool Flavoured Milk: o Amul Milk Powders:


o Amul Cheese : o Amul UHT Cream:
o Amul Masti Dahi : o Amul Mithai:

o Amul Ghee:

2.1 India a booming ice cream market up for grab (Amul Ice-cream, 2010)

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.

Today ice creams are equally popular among

children and grown-ups. Eating ice creams have become an occasion for celebration. In

India alone, the organized ice cream industry has a turnover of around Rs. 2000 Cr. and the

market is witnessing a booming growth rate of 12-15% annually (Source: Euro monitor

2008). Per capita consumption of ice creams in India is around 250 ml compared

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to 23 liters in the US, 18 liters in Australia, 14 liters in Sweden and 800 ml even in

neighboring Pakistan. This presents a huge opportunity for organized players in the ice

cream industry.

2.2 Amul - The leader in Ice Creams

Since its launch in 1996, Amul Ice Creams have consistently combated

competition like Kwality Walls, Mother Dairy and other brands. The customers have

shown huge faith in the quality of Amul Ice Creams and today it‟s the No. 1 ice cream

brand of the country.

Nearly 4 times as large as its nearest competitor, it is now the only national brand. Amul

has been able to write such a success story because of the quality of its products,

economic pricing and the belief consumers have in the brand. Amul‟s market share has

increased substantially to 38% through distribution network in more than 800 towns and

approaching toward new emerging market. We at Amul are capable of delivering ice

cream from Kashmir to Kanyakumari and from Gujarat to North East. No other ice cream

brand has been able to cater the nation‟s ice cream demand in such a wide geographical

area. It makes Amul Ice Cream, “India‟s only National Brand”! While growing at a

phenomenal pace, Amul has always taken care to offer delectable flavors to all age

groups across the society. Over the years, Amul has added diverse flavors to its range of

ice creams so that one can have variety of choices.

Amul offers a selection of almost 68 products with flavors

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ranging from exotic Honey Banana to Kesar Pista and many more. Apart from the

delicious individual novelties Amul also has ice creams for the health conscious. In

January 2007, Amul introduced Sugar Free & Pro-Life Pro-biotic Wellness Ice Cream

which was a first in India.

2.3 Amul Scooping Parlors

Today people like to spend quality time with their family outside the home. With

increasing income they love to spoil themselves with a variety of choices.

Keeping up with the latest trend Amul has started Ice Cream Scooping Parlors across the

country. One can enjoy world class ice creams, Sundaes, shakes and other ice cream

concoctions in a cozy and nice ambience at these parlors. It‟s fun time for the entire

family. Currently Amul has Scooping Parlors across the country including Mumbai,

Chennai, Delhi, Bangalore, Thane, Pune, Kolkata, Nagpur, Ahmadabad and Coimbatore.

Apart from these, there are more Amul Scooping Parlors coming up in different parts of

the country. These Parlors have been well received by customers and are doing upbeat

business.

The recipes on offer at these Scooping Parlors are designed by Amul. The

maximum retail price of the products is pre-determined by Amul. The disposables and

consumables are also standardized by Amul and supplied by parties approved by Amul.

Amul, now offers an excellent business opportunity to entrepreneurs who can become

franchisees of the Amul Scooping Parlors and be a part of the growing ice cream industry

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with India‟s most popular brand. You can earn extremely attractive returns even with a

relatively moderate investment.

2.4 Investment Required

An owned or a leased air-conditioned shop of 300 sq.ft. at a prominent location

 Refundable Brand Deposit Rs. 50,000/- #


 Renovation & interiors Rs. 75,000/-
 Equipment Rs. 200,000/-
 Working Capital Rs. 25,000/-

Total Rs. 350,000/- *

* Approximate Figures
Rs.50,000/-. Offer valid for limited period.

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Equipments Required

Total investment and required equipment which will make a standard and

visible Amul Parlour is given in the table.

Equipments Cost in Rs.

Scooping Cabinet with SS bowls 30,000


Waffle Cone Machine 13,000
Mixer/Grinder 3,000
Cone Holder/Toppings Tray for placing Sauces, Nuts etc. 1,000
Visi-Coolers 28,000
Deep-Freezers - 2 Nos. 50,000
POS Machine 25,000
Total Cost 150,000

ROI - Indicative Statement

Total in Rs.

Sales (Value per month) 150,000


Gross Margins Earned 75,000
Less: Electricity 5,000
Less: Rentals 20,000
Less: Manpower 10,000
Net Profit per month 40,000

So the net profit per month comes from investment would be 40,000 and the Break even

will come in within 2 years.

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Operation

The franchisees shall be supplied with pre-packed Amul Ice-Creams/Amul products in

different varieties and volumes as per their requirement through authorized wholesale

distributors. The franchisees shall purchase necessary toppings, sauces and consumables

from approved vendors/brands. The products is to be sold from these Parlors would be as

per the recipes and prices approved by Amul.

2.5 Amul: Kolkata Market

The face of Amul in Kolkata market is totally different than its India‟s position. The

market share of Amul in Kolkata market is nearly 20% and Kwality is about 40% just

opposite of National market. But this is happening. What are the reasons behind the

backwardness of Amul in this market?

Actually there is a big gap in supply and demand of Ice-cream. Retailers are

ready to keep Amul but they want good supply of Ice-cream. Scooping parlor that are

having pure Amul products, they are also having problem in supply of some of the variety

of Amul. It means availability of product in the market is very less. People know the

brand of Amul but they are getting at exact time and place. When I was doing customer

survey, I found that most of the people like Kwality because it is easily available. They

don‟t bother about the price. When I asked about the price they said,”
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PGDM, Report 2011

Price doesn‟t matter, only availability matters. Suppose I want to eat a Ice-cream, my

first choice would be brand and if not then I go for any brand that the important thing in

selling of Ice-cream. People don‟t bother about the company or brand they only know I

want an ice-cream. So Amul must need to increase the availability of Ice-cream in

Kolkata market so that penetration and visibility will increase and they will go for Amul

because we are giving them low price that is the strongest point Amul has.

2.6 Mission- (Amul:GCMMF, 2010)

Last year in speech of Chairman Amul India Mr. P. G. Bhatol described the mission-

2020. In his mission-2020 policy, he clearly defined the process to achieve a projected

group sales turnover of 27000 crores (Rs.270 billion) with the investment of 2600 crores.

In his speech he said,” I am glad to inform you that all of our dairies have started

activities to achieve the planned targets. It may be noted that Kaira Union has

commissioned a state-of-the-art Paneer Plant and also a whey drying plant. Our

Sabarkantha Union too is in process of commissioning a similar Paneer Plant. Our

Mehsana Union has expanded capacity to 9.61 lakh litres per day at its dairy at Manesar

near Delhi. Banaskantha Union too has embarked on installing new powder plant and

cattle-feed plant which shall be commissioned soon. New cattle-feed plants are being put

up by Mehsana and Valsad Unions as well.

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PGDM, Report 2011

2.7 SWOT ANALYSIS

SWOT analysis is a scan of internal and external factors to the firm can be classified as

Strengths, Weakness (Internal) and Opportunities Threats (External). The SWOT analysis

provides information that is helpful in matching the competitive environment in which it

is operating. As such, it is instrumental in strategy formulation and selection.

INTERNAL
Strengths Weaknesses
 Brand Image  Distribution channel
 Pure Ice-Cream  Sales Force
 Varieties in Product  Response Lateness
 Customer Base  Less Attractive Schemes
 Market Position
 Low-Pricing

Opportunities Threats
 New Emerging Market  Intense competition
 Potential Retailers  New Technology
 Growing demand for Ice-Cream  Lose of Key Staff
 Strategic Initiative  Government Regulation

EXTERNAL

Strengths-

 Brand Image- Amul is a well known brand in the market which shows the powerful
strength of the company in the market. Amul has been operating its business in milk
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PGDM, Report 2011

and milk products are known for good quality of the product. It provides varieties of

product in the market not only in Ice-Cream segment but in all types of milk products.

After launching Ice-cream in 1997 in Indian market, Amul is leading player since then

and now.

 Purity of Product- Customer preference of buying Amul ice-cream is due to the purity
of the product. The reason for Amul to be no.1 is purity of the Amul Ice-cream.

No other than Amul writes “Real Milk Real Ice-cream”, because company‟s strength

is Purity. Many brands currently use frozen dessert/ Vegetable oil in making of Ice-

cream but Amul uses Pure Milk based Ice-cream. As per the rule of Government, Ice-

cream maker should have to check the quality of micro-Bacterial level. Amul standard

is as following…

Legal requirement AMUL standard


Particulars (As per BIS)
Coliform / gm <90 / gm Nil coliform count
SPC / gm 250000 / gm We try to keep
10000/gm or less

 Range of product- According the finding of survey, 70% Customer preference in


buying of Ice-cream depends on variety of product. They always prefer to buy new type

or new flavor of Ice-cream. In this finding Amul provides a number of verities and flavor.

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PGDM, Report 2011

 Customer Base- Amul always represents its products at customer level since
inception. It‟s the image of Amul which made a roadmap in Ice-cream segment a leading

player within 13 years. Availability of Amul pushes customer to go for Amul first than

other brand.

 Market Position- Before starting of Ice-cream business Amul was no-1 brand in dairy
industry in Indian market. Market position helped him acquiring market shares in Ice-

cream segment and today Amul Ice-cream is no-1 in Indian market. So if today, Amul

launches new product or variety, marketing or extensive advertisement doesn‟t require.

 Low-Pricing- Amul is operating its business in all over India and some of the product
is exported in nearby country. Owing to mass production and new technology Amul is

having low operating cost; benefit in pricing of its product low compare to competitors.

Weaknesses-

 Distribution Channel- There is always a hurdle to fulfill the gap between supply and
demand of Amul Ice-cream. After visiting some part of north Kolkata, I found that there

is a problem of proper supply of Ice-cream in these areas. They are pretty interested of

keeping Amul Ice-cream because of Strength Company have. But they want assurance of

regular supply. The demand of Amul Ice-cream is huge and if Amul

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PGDM, Report 2011

improve its distribution channel then definitely company‟s market share will improve

in North Kolkata.

 Response Lateness- Amul is the centralized authority and all the important decision is
taken and implemented from its main branch Ahmadabad. Every claim response goes

under old centralized process which takes a lot of time which is creating bad impression

in the market. I met some of Pure Amul outlet who was selling only Amul Ice-cream, but

due to some of claim and late response from company force them to leave keeping Amul.

So company should give more focus on problem finding and quick response of all the

problems.

 Less Attractive schemes- Every business man thinks to invest in new business to
generate more profit or increase its business. Many competitor of Amul is giving great

schemes and profit margin to the retailers which impress retailers to keep their products

in spite of keeping Amul. Like, Kwality wall‟s has introduced new schemes, if you take

amount worth of 40 thousand in one time you will get a new color television free, and 1

lakhs then you will get a ……………………… So this time of schemes increase the sale

very rapidly.

Opportunities-

 New Emerging Market- Kolkata is a big market and the expansion rate of Kolkata is
about 7-8% yearly (India, 2010). So Amul has great opportunity to go in these emerging

markets. And there are so many other places where Amul have zero
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PGDM, Report 2011

penetration. Like one of the Area is Nagar Bazaar and near of that. So Amul have not

penetrated in whole Kolkata. It is the opportunity of Amul to go in new emerging

market where demand exists but due to unavailability of Ice-cream customer doesn‟t

buy.

 Potential Retailer- After visiting most of the part of North Kolkata we found that there
are number of retailer outlets that are ready to take Amul Ice-cream but they are not

provided. We total found about 100 outlets that are ready to keep Amul Ice-cream. So

Amul needs to do market survey and force their sales team to work for that. This will

increase the penetration and reach of Amul Ice-cream at every street.

 Growing Demand for Ice-cream- From the previous data of consumption of Ice-
cream in India shows that the Ice-cream demand is growing at the rate of 12% annually. It

means Amul has the opportunity to increase its sale at the rate of 12% or more annually.

 Strategic Initiative- Amul initiated a number of strategic measures in the recent


period. These measures include the expansion of its manufacturing capacity and Self

Leadership Development program. India is a country with more than 6.7 million FMCG

outlets (AC Neilsen, 2009). Thus, to cater the ice cream demand of the nation, Amul is

focused on retail outlets through strategic planning. Distributor along with their stake-

holders undergo a vision mission strategy workshop at their level which would eventually

integrate each of them in the process of organization‟s strategic

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PGDM, Report 2011

planning and enable them to manage their own business efficiently by meeting the

challenges of competitive environment. In the process, Distributor prepares his

mission statement and business plan for the next few years.

Threats-

 Intense Competition- Amul faces strong competition in Ice-cream business in


Kolkata. The competitors of the company include multinationals such as Kwality wall‟s

(HUL) and other local brands who are offering more to the distributor as well as retailer.

Kwality wall‟s is giving freeze to every retailer free of cost and many more to the

distributor which attract retailers to go for Kwality. Other competitor including Mother

dairy, and Metro is giving 25% margin to retailers and 15% margin to the distributor.

Kwality wall‟s has greater financial or marketing resources than Amul, and may be able

to devote greater resources to sourcing, promoting and selling products.

 New Technology- Many new and Innovative company are coming with new
technology which may cut the operating cost or they are using vegetable oil to make Ice-

cream which give them high profit margin and low operating cost. The new way of

making Ice-cream can compete Amul profit margin as well and operating cost.

 Lose of key staff- Many company have such threats that if it loses the major and
productive key staff then the sales and profitability will decrease. Currently in
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PGDM, Report 2011

Kolkata, my mentor and sales manger Mr. Shyamal Gosh is a key staff for Amul in

Kolkata market. He knows the whole scenario of Kolkata market even, he knows what

are shops which is key player for Amul and who are the good distributor who can

grow. His thinking is always in long-term. If such kind of staff, Amul loses then

definitely Amul‟s sales growth would be in trouble.

 Government Regulation- The Prevention of Food Adulteration (PFA) Rules, 1955

(Department of Industrial Policy and Promotion, 1955)define ice cream as “a frozen

product that contains not less than 10% milk fat, 3.5% protein, 36.0% total solids, and

0.5% permitted stabilizer and emulsifier.” Players who deviate from these norms

tactfully call their product "frozen dessert.” However, it is illegal to sell “ice cream”

which has content below these specified standards.

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PGDM, Report 2011

3.0 Work: At company

My job at the company is “To improve the visibility and penetration of Amul Ice-cream

at retail level at the assigned specific area.” I have been given some of the northern

Kolkata i.e. G.L.T. Road, M.N.K. Road, Dunlop, Banhoogly, B.T. Road, Baranagar

Bazaar, Deshbandhu Road, and Bagha Jatin Road. I was told to visit this area and find out

the problem of retailers, why our penetration in these areas is less. I was also told to

increase the no. of retailers to improve penetration in these markets.

In the process of making retailers, I have been given the details of plan and schemes

currently company is offering i.e. HADF (Hamara Apna Deep- Freezer), HAPC ( Hamara

Apna Push-Cart) and 17.5% margin on price to the retailers. Basically HADF plan is for

those retailers who are interested to buy new freeze. Company offer different brand of

deep-freezer at 20-25% discounted price from market. Company has tie-up with 5-6

deep-freezer making company such as Blue Star, Carrier, Haier etc. Company also gives

free Ice-cream as according to the size of the Freezer. For example, on the size of 300

liters freezer, Company gives 3000 worth of Ice-cream on price free on three or four

installment and on the size of 400 liters 4000 worth of Ice-cream.

Then as assigned the area I went to the distributor who is capturing these areas that is

Aarhna Distributor. I took the information about the distribution channel, his business,

area currently he is covering, and hurdles he is facing. After visiting I came to know that

he did not get supply of Ice-cream from last 5 days. Basically his problem was no support
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PGDM, Report 2011

from company and supply of Ice-cream. After knowing this I put all the issues in front of

my company mentor then he told me reason of problem. He told me that supply was

affected due to implementation of SAP in the organization and within 6-7 days it will be

completed. Owing to SAP implementation I found that most of the retailers were not

getting proper supply of Ice-cream. So I decided that I will first do Competitor analysis

then I will do work for Amul.

In the process of competitor analysis I searched who are the main competitors, affecting

directly Amul sales. I came to know that Kwality (No.1 Player in Kolkata market) and

Metro are the nearest rival of Amul. In the process of that I met with the distributor of

Kwality wall‟s and Metro. I get to know that there is only one distributor of Kwality

covering the entire northern region of Kolkata. Metro is having 3 distributors covering

the entire northern Kolkata. I also get to know that Kwality is having a Push-cart

distributor who is having 20 Push-carts covering the tourist and visiting places in

Kolkata. I tried to compare the different strategy of Competitor with Amul and some of

the strategy is awesome that is applicable for the size and location of the retail shop. In

the process of that I collected data regarding, what factors affecting retailers to take the

retailer ship of a company. Final analysis is done further in the Analysis part.

After doing the analysis of competitor, I went in the market and started searching the

potential retailers. In that process, I found that many retailers who were keeping Amul are

not satisfied due to Supply problem. I also get to know that Amul, a brand is known for

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PGDM, Report 2011

all but when customer ask for Amul and if it is not available then they have to switch for

other brand. I asked about the perception of Amul from consumer. One of consumer, she

is a housewife, said that I always prefer to buy Amul butter but many time I found that

butter was not available. So I did not have option and I go for other brand. A senior

citizen told that I would also like to have Ice-cream, I am a dubieties patient, I came to

know that Amul have some sugar-free Ice-cream. I have eaten only one time after that I

couldn‟t get that. So after revising these perceptions, I analyze myself that the demand of

Amul Ice-cream not only Ice-cream but also other products is much more than the supply

of products. My 40-45 days visit in the market gave me an awesome knowledge about the

market how a company operates its business, how a business is done. I have found about

28-30 retailers for Amul. These retailers are ready to keep Amul. When I asked about the

perception of Amul then most of them told, I just know that Amul is brand and have

variety. If I give Amul Ice-cream to anyone then they will not say, give me other brand

because of brand and the price of product is also low.

At every week, I gave the address and phone number and requirement of interested

retailers to distributor and ask him to insure me about the supply of Ice-cream within 3-

days. After one week I asked to those retailers whom address I have given to distributor

that supply is done or not. So in this process I gave about 28-30 new retailers list after the

completion of my work. After the work of market I came to know from distributor that

last month sale has increased by 35-40%% from previous month.

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PGDM, Report 2011

4.0 Objective of Study:-

4.1 Visibility:- As the given topic “To develop the strategy for improving the visibility
and penetration of Amul Ice-cream in Kolkata market at retail level.” Working on the part of

visibility of Amul Ice-cream in northern region of Kolkata, first I develop a way how to go

for improvising the visibility of Amul. My first step in this process is to collect the detail of

tourist places and main market where public will get to know about Amul Ice-cream. I also

try to collect the information where the Amul is yet to be visible. I have made a report on

improving visibility based on the requirement of retail outlet. I.e. hoarding, Banner, Amul

Poster, Amul Price-list, Amul Pamphlet, flex-board, Shine-Board etc. The report of all the

requirement of these materials I have given to office. I have also suggested giving all the

required material to the new formed retailers. To improve more visibility I have collected the

rough idea of visiting places and I personally visited these areas. I found that there is nothing

showing the brand of Amul Ice-cream out there. The list of these places are following:-

 Rabindra Sadan  Botanical garden


 Shaheed Minar  Birla Mandir

 Raj Bhawan  Thanthania Kalibari

 Victoria Memorial  Belur Math

 Vidyasagar Setu  Dakshineshwar Temple

 Writer's Building  Pareshnath Jain Temple

 Marble Palace  Nakhoda Mosque

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PGDM, Report 2011

To be more visible in the market these visiting places should shown either an outlet or a

push-cart or Posters, banners and hoarding which will show Amul existence.

4.2 Penetration:- Market penetration occurs when a company enters/penetrates a market


with current products. The best way to achieve this is by gaining competitors' customers

(part of their market share). Other ways include attracting non-users of your product or

convincing current clients to use more of your product/service (by advertising etc). In the

process of improving penetration of Amul Ice-cream I searched potential retailers who are

interested of keeping Amul Ice-cream. The list the new made retailers are given in upcoming

sheet. I just used the brand of Amul, and they are convinced. The new penetration level of

Amul Ice-cream is different after making of new retailers. I used the map of that area and

just put all the retail outlet of Ice-cream in that area. Now the map is showing pretty different

and good because the penetration level increased by 20-30% out of total in these area. Now

Amul outlet will be in almost every Retailers

road and street of these areas. Now the New, 26 Amul, 35

penetration level is different and Amul


has total 61 outlets in these areas. So Multivendo

r, 34 Kwality,

definitely penetration level has 67

increased.

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PGDM, Report 2011

Area Covered:- Dunlop, Banhoogly (Map, 2011)

Multivendor ( )

Kwality Wall’s ( )

New Convinced Amul Outlets ( )

Amul + Other Brand ( )

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PGDM, Report 2011

Stretch
(Google, Total Ice-cream
No. Name of Beat 2011) Retailers Amul Kwality M.V
1 G.L.T.Road 2.2 K.M 31 7 18 6
2 Baga jatin Road 0.35 K.M 3 2 2 1
3 Deshbandhu Road 1.89 K.M 22 6 8 9
4 M.N.K.Road 1.53 K.M 12 6 6 3
5 B.K.Moitro Road 0.49 K.M 4 2 2 1
6 B.T.Road 1.37 K.M 11 4 5 2
7 Dunlop 0.89 K.M 11 4 8 1
8 Banhoogly 1.12 K.M 9 4 3 2
Total 103 35 52 25

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PGDM, Report 2011

List of New-Retailers

NAME OF
BRAND
NAME OF CURRENTLY
NO. RETAILER AREA ADDRESS SELLING PHONE NO.
77-Raimohan Banerjee
1 Café Delina Banhoogly raod Banhoogly Metro, Rollick 8013160778
111/3 Near P.C.M
2 R.Snacks Banhoogly College, Bangoogly Metro, Rollick 36458531
Annada Maoiee
3 sweets B.T. Road 209-B.T.Road K-36 Kwality 25770120
G.L.T. 25770081/9830243
4 M.B Caterer Road G.L.T. Road Kol-36 Metro, Kamal's 471
Mukerjee G.L.T.
5 Confectionary Road 101/4-G.L.T. Road ,Kol-36 Kwality 9830199341
Subh lakshmi G.L.T.
6 Variety Stores Road 265/3-G.L.T. Road ,Kol-36 Metro, Rollick 9748636122
G.L.T. Metro, Rollick,
7 Subrha Stores Road 105/1- G.L.T. Road K-35 Amul 9433428802
M.N.K
8 Tara Maa Stores Road 295-M.N.K. Road K-36 Metro 9874888907
M.N.K 133/12-Torgiwar More
9 Sridugra Bhandar Road M.N.K. Road K-36 Metro, Rollicks 9748965536
M.N.K 137-Torgiwar More
10 Shefali Stores Road M.N.K. Road K-36 Metro, Kamal's 25785521
Annupurna Roll M.N.K

11 Center Road 177/2- M.N.K. Road K-36 Metro, Big Cup 9239397455
Suraj Shekhar B.K.Motira
12 Sadhukhan Road 107-B.K.Moitra road K-36 Metro, Kamal's 9836969720
Dunlop B.T.Road Block-A Dunlop
13 Nag sweets More More K-108 Metro, Rollick 9836220799
Dunlop 26-Robindra Nagar near
14 Subrojyoti More Gurudwara K-108 Metro, Rollick 9051681178
Maa Kali Mistanna Dunlop 185/6-Robindra Nagar K-
15 Bhandar More 108 Kwality, Metro 9903612045

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PGDM, Report 2011
141-B.T. Road near khalsa

Dunlop Model High school dunlop


16 Gurunanak Stores More more K-108 Kwality 9231503947
G.L.T.
17 Sakorika Stores Road 134-G.L.T. Road, K-36 Kwality 25773766
10/1-A Deshbandhu Road

18 Tripti Mahal D.B. Road K-35 Kwality 9143023031


66- Deshbandhu Road,
19 Pal Stores D.B. Road (East) K-35 Kwality, Metro 9831699081
66- Deshbandhu Road,
20 Kashko Varities D.B. Road (East) K-35 Kwality, Metro 9831699081
137- Deshbandhu Road,
21 Annapurna Store D.B. Road (East) K-35 Metor 9339563446
22 Dilip Stores B.T. Road 262-B.T.Road K-36 Metro, Kamal's 9830163701

23 Bhabatara Sweets B.T. Road 262-B.T.Road K-36 Metro, Rollick 9775627734

Ganeshwari Pan Bagha 136/2-Bagha jatin Road


24 Bhandar Jatin Road Baranagar, K-36 Metro, Amul 25775321
119/4-P.G. Road near
Brananagar Ramkrishan
25 Globe Tailors P.G. Road Math K-36 Kwality, Metro 8981625986
B.K.Muti
26 Udisha Enterprises Road 1/5-B.K.Muti Road K-86 Metro, Kwality

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PGDM, Report 2011

Analysis of Result (Marketing Research, 1994)

The Analysis is done on the basis of collected data through questionnaire filled by about

150 retailers. Questions are made on the basis of different parameters which is affected

retailers to put that company products. Many retailers are multi-vendors who are keeping

more than one brands of Ice-cream. I asked them to fill the question and give the rating of

the question based on brand, currently they are keeping. I have surveyed 50 retailers of

each of Kwality, Amul and Metro.

On the basis of first 3-visit in the market, I found the following parameters that

affecting and attracting the retailers. Based on these parameters, data has been collected.

(Malhotra, 2010)

1. Brand Image
2. Profit Margin
3. Supply of Product
4. Demand of Product
5. Price of Product
6. Range of Product
7. Frequency of feedback of the services
8. Company Support
9. Material of Visibility
10. Service of the company
11. Claim Response

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PGDM, Report 2011

12. Offers & Schemes

Initially these parameters and some more are tested. After testing the

parameters, our group found that the above mentioned parameters are directly

affecting and attracting the retailers. The data has been collected on the basis

of the above mentioned parameters on 5-point scale.

After getting the data I used t-test: Paired two samples for means. This

basically relates and compares the two variables statistically. t-test is a tool to

relate between the two variables under 95% confidence limit of normal

distribution curve. I used excel to test the data and the analysis are following.

Qualitative Analysis:-

Before going to Quantitative part, there are some qualitative data that needs to analyze

or compare with competitor I.e. time of delivery of product, flavor in demand, size and

type in demand, frequency of visit etc. Based on the prepared questions, I collected these

data from Amul, Kwality and Metro retailers and got the following facts.

1. Type of Ice-cream is in demand:-

Based on the collected data I found that most of the people like to eat sticks,

cones, and cups. Only 9% Ice-cream family pack is sold on whole basis. It means

to say that out of Rs. 100 customer spend 9 only to buy for family pack.

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PGDM, Report 2011

Type of Ice-cream
Family Pack
9%

Cups
24%

Cones
32%
Sticks
35%

2. Flavor in demand: -

Most of the people prefer to eat vanilla, Chocolate, or 2-in-1. It may be either

due to least cost or new taste they don‟t want to try. The demand of vanilla is high

followed by 2-in-1 and chocolate.

Other Flavor in demand


2%
Butter-
scotch
10%

Vanilla
34%
Chocolate
26%

2-in-1
28%

3. Time of Delivery: - I try to find out the time, Distributor mostly deliver the product

during 01-02 P.M. But there should be a time for delivery that retailer should entertain

him very well. It may be happen that if distributor delivers the product either during

leisure time or when the frequency of customer is less.

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PGDM, Report 2011

Time of Delivery
10-11 A.M
14%
Any time 11-12A.M

6-7 P.M 18% 8%


7%
5-6 P.M 12-01 P.M
4% 17%
01-02 P.M
32%

From the above fact I also get to know that distributor delivers product at any time is

about 18%. It means retailers don‟t know at what time deliver will be done. This is one

of the hurdles of distribution channel that can affect business of distributor as well as

retailer. It may be one of the reasons of blaming distributor or company that “Supply to

aata hi nahi hai.”

4. Frequency of Visit:-

Frequency of Visit
3
2.5
2.45
2
2.12
Amul
1.5 1.75
Kwality
1
Metro
0.5
0
Amul Kwality Metro

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PGDM, Report 2011

It is one of main reasons for the problem of supply. Suppose the distributor visits only 1

or 2 days in a week and the demand of product in that market is good then retailer force

to keep other brand to fulfill the demand. I try to analyze and compare the no. of visit by

the distributor in a particular area. I found that Amul on an average visit is only 1.75 days

in a week it means distributor visit in a particular area is only 1-2 days in a week. If I

compare it with Kwality the average visit of Kwality distributor is 2-3 days in a week in a

particular area. It might be due to no. of vehicles, and his big distribution channel. But

Distributor needs to increase the no. of visit.

Quantitative Analysis: (Malhotra, 2010)

Brand Image:

Brand Image
5
4.5
4 4.46
4.18
3.5
3 Amul
2.5 3.06
2 Kwality
1.5 Metro
1
0.5
0
Amul Kwality Metro

It can clearly be seen that there is slight difference between Amul and Kwality wall‟s

about the perception of „Brand Image‟ among retailers. Other company, metro has some

good perception among few retailers in some of the specific are. To confirm this data I
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PGDM, Report 2011

have applied statistical tool to analyze data statistically. For applying statistical tool I took

into consideration Amul and Kwality as they both are leader and successor in Ice-cream

Industry.

Excel Output:

Objective:- To know whether there is any difference in the opinion of retailers about the

Brand between Amul and Kwality.

Hypothesis:

 Ho: There is no significance difference between the responses of retailers about the

brand of product.

 H1: There is significance difference between the responses of retailers about the brand

of product.

t-Test: Paired Two Sample for Means Amul Kwality


Output:-
Mean 4.449 4.16
Variance 0.253 0.43
Observations 49.000 49
Pearson Correlation 0.278
Hypothesized Mean Difference 0.280
df 48.000
t Stat 0.057
t Critical one-tail 1.677
Interpretation:
p-value 0.022

The P-value from the table is less than p<0.05, means accept the null hypothesis at 95%

confidence limit. I.e. there is no significance difference among the retailers about the

perception of Brand of Amul and Kwality.

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PGDM, Report 2011

Profit Margin:

Profit Margin
5
4
4.42

3 3.56 3.38 Amul


2 Kwality
1 Metro

0
Amul Kwality Metro

It can clearly be seen that there is slight difference between Amul and Kwality wall‟s

about the perception of „Profit Margin‟ among retailers. Other company, Metro has some

good perception among retailers in profit margin. Because it is giving 25% margin than

Amul (17.5%) and Kwality (16.5%).

Excel Output:

Objective: - To know whether there is any difference in the opinion of retailers about the

Profit Margin given by Amul and Kwality.

Hypothesis:

 Ho: There is no significance difference between the responses of retailers about the

Profit margin given by the company.

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PGDM, Report 2011

 H1: There is significance difference between the responses of retailers about the Profit

margin given by the company.

Output:-
t-Test: Paired Two Sample for Means Amul Kwality
Mean 3.571 3.367
Variance 0.250 0.362
Observations 49 49
Pearson Correlation -0.089
Hypothesized Mean Difference 0.180
df 48
t Stat 0.207
t Critical one-tail 1.677
Interpretation: p-value 0.041

The P-value from the table is less than 0.05 (p<0.05), means accept the null hypothesis at

95% confidence limit. I.e. there is no significance difference among the retailers about

the Profit margin given by Amul and Kwality.

Supply Chain:-

Supply
5

4 4.5
3 3.76
Amul
2 Kwality
Metro
1 1.52
0
Amul Kwality Metro

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PGDM, Report 2011

It can clearly be seen that there is a big difference between Amul and Kwality wall‟s

about the perception of „Supply of Products‟ among retailers. Other company, Metro has

some good perception among retailers about the supply of Metro Ice-cream. From the

above diagram I can say that the supply of Kwality is very good in Kolkata market that‟s

why Kwality is leading this market. Amul is suffering from lack of supply of their all the

products in the market.

Excel Output:

Objective: - To know whether there is any difference in the opinion of retailers about the

Supply of products by Amul and Kwality.

Hypothesis:

 Ho: There is no significance difference between the responses of retailers about the

Supply of Products by the company.

 H1: There is significance difference between the responses of retailers about the

Supply of Products by the company.

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PGDM, Report 2011

Output:
t-Test: Paired Two Sample for Means Amul Kwality
Mean 1.51 4.51
Variance 0.26 0.26
Observations 49 49
Pearson Correlation 0.10
Hypothesized Mean Difference 2.98
df 48
t Stat -61.83
t Critical one-tail 1.68
p-value 0.49995
Interpretation:

 The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at

95% confidence limit. I.e. there is significance difference between the responses of

retailers about the Supply of Products by the Kwality and Amul.

Price of Product:-

It can clearly be seen from the response of retailers that there is slightly difference

between Amul and Kwality wall‟s in terms of „Price of Product‟. Other company, Metro

has also some good perception among retailers who is in catering or taking order for

party supply because of the less rate and good margin.

From the above diagram I can say that the price of Amul is very less in comparison of

Kwality. But Metro is offering lesser price some of party packs in Kolkata market.

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PGDM, Report 2011

Price of the product


5
4.5
4 4.44 4.54
3.5
3 Amul
2.5 3.06
2 Kwality
1.5 Metro
1
0.5
0
Amul Kwality Metro

Excel Output:

Objective: - To know whether there is any difference in the opinion of retailers about the

Price of Product offering by Amul and Kwality.

Hypothesis:

 Ho: There is no significance difference between the responses of retailers about the

Price of Product offering by the company.

 H1: There is significance difference between the responses of retailers about the Price

of Product offering by the company.

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PGDM, Report 2011

Output:
t-Test: Paired Two Sample for Means Amul Kwality
Mean 4.429 3.082
Variance 0.250 0.660
Observations 49 49
Pearson Correlation -0.037
Hypothesized Mean Difference 1.380
df 48
t Stat -0.239
t Critical one-tail 1.677
p-value 0.085
Interpretation:

The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at

95% confidence limit. I.e. there is a significance difference among the retailers about the

Price of Product offering by Amul and Kwality.

Demand of Product:-

It can clearly be seen from the response of retailers that there is slightly difference

between Amul and Kwality wall‟s in terms of „Demand of Product‟. Other company,

Metro has some good perception among retailers about the supply of Metro Ice-cream.

Demand
5
4.5
4 4.24 4.4
3.5
3 Amul
2.5 3.02
2 Kwality
1.5 Metro
1
0.5
0
Amul Kwality Metro

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PGDM, Report 2011

From the above diagram I can say that the demand of product of Kwality is slightly more

than Amul.

Excel Output:

Objective: - To know whether there is any difference in the opinion of retailers about the

Demand of products by Amul and Kwality.

Hypothesis:

 Ho: There is no significance difference between the responses of retailers about the

Demand of Products by the company.

 H1: There is significance difference between the responses of retailers about the

Demand of Products by the company.

Output:
t-Test: Paired Two Sample for Means Amul Kwality
Mean 4.245 4.408
Variance 0.522 0.247
Observations 49 49
Pearson Correlation -0.110
Hypothesized Mean Difference 0.160
df 48
Interpretation: t Stat -1.458
t Critical one-tail 1.677
p-value 0.032
The P-value from the table is than 0.05(p<0.05), means accepting the null hypothesis at

95% confidence limit. I.e. there is no difference about the perception of demand of

product of Amul than Kwality among the retailers.

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PGDM, Report 2011

Range of Products:-

It can clearly be seen from the response of retailers that there is slightly difference

between Amul and Kwality wall‟s in terms of „Range of Product‟.

Range of Product
5
4 4.62
4.2
3 Amul

2 Kwality
2.02 Metro
1
0
Amul Kwality Metro

Amul is having more because it offers 68 varieties of products in different segments.

Other company, Metro has only 4-5 varieties in the Kolkata market.

Excel Output:

Objective: - To know whether there is any difference in the opinion of retailers about the

Range of Product by Amul and Kwality.

Hypothesis:

 Ho: There is no significance difference between the responses of retailers about the

Range of Product by the company.

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PGDM, Report 2011

 H1: There is significance difference between the responses of retailers about the

Range of Product by the company.

Output:
t-Test: Paired Two Sample for Means Amul Kwality
Mean 4.63 4.18
Variance 0.24 0.78
Observations 49 49
Pearson Correlation 0.16
Hypothesized Mean Difference 0.42
df 48.00
Interpretation: t Stat 0.22
t Critical one-tail 1.68
p-value 0.085
The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at

95% confidence limit. I.e. there is significance difference among the retailers about the

Range of Product offering by Amul and Kwality.

Frequency of Feedback of the services:-

It can clearly be seen from the response of retailers that there is big difference between

Amul and Kwality wall‟s in terms of „Frequency of feedback of the service‟. Other

company; Metro has some good perception among retailers about the supply of Metro

Ice-cream. From the diagram I can say that the supply of Kwality is very good in Kolkata

market that‟s why Kwality is leading this market.

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PGDM, Report 2011

Frequency of feedback of the service


5
4.5
4 4.5

3.5
3 Amul
2.5 3.08
Kwality
2
1.5 1.9 Metro

1
0.5
0
Amul Kwality Metro

Excel Output:

Objective: - To know whether there is any difference in the opinion of retailers about the

Frequency of feedback of the service by Amul and Kwality.

Hypothesis:

 Ho: There is no significance difference between the responses of retailers about the

Frequency of feedback of the service by the company.

 H1: There is significance difference between the responses of retailers about the

Frequency of feedback of the service by the company.

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PGDM, Report 2011

Output:
t-Test: Paired Two Sample for Means Amul Kwality
Mean 1.898 4.510
Variance 0.469 0.255
Observations 49 49
Pearson Correlation 0.033
Hypothesized Mean Difference 2.6
df 48
t Stat -43.588
Interpretation: t Critical one-tail 1.68
p-value 0.499954

The P-value from the table is than 0.05(p>0.05), means rejecting the null

hypothesis at 95% confidence limit. I.e. there is a big difference among the retailers about

the Frequency of feedback of the service provided by Amul and Kwality.

Material of Visibility

Material of visibility
5
4.5
4 4.4
3.5
3 Amul
2.5
Kwality
2 2.24
Metro
1.5
1 1.58
0.5
0
Amul Kwality Metro

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PGDM, Report 2011

It can clearly be seen from the response of retailers that there is big difference between

Amul and Kwality wall‟s in terms of „Material of visibility‟ provided by these company.

Other company, Metro also doesn‟t provide or invest in visibility of Ice-cream.

From the above diagram I can say that the Visibility of Kwality is very good in Kolkata

market that‟s why Kwality is leading this market.

Excel Output:

Objective: - To know whether there is any difference in the opinion of retailers about the

Material of visibility provided by Amul and Kwality.

Hypothesis:

 Ho: There is no significance difference between the responses of retailers about the

Material of visibility provided by the company.

 H1: There is significance difference between the responses of retailers about the

Material of visibility provided by the company.

Output: t-Test: Paired Two Sample for Means Amul Kwality


Mean 2.245 4.41
Variance 0.689 0.25
Observations 49 49
Pearson Correlation 0.106
Hypothesized Mean Difference 2.16
df 48
t Stat -32.867
t Critical one-tail 1.677
p-value 0.3988

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PGDM, Report 2011

Interpretation:

The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at

95% confidence limit. I.e. there is a big difference among the retailers about the Material

of visibility provided by Amul and Kwality.

Service of the company:-

It can clearly be seen from the response of retailers that there is big difference between

Amul and Kwality wall‟s in terms of „Service provided by the company‟.

Service of the company


5
4.5
4 4.46
3.5
3 Amul
2.5
Kwality
2 2.3
Metro
1.5
1 1.5
0.5
0
Amul Kwality Metro

From the diagram I can say that the service given by Kwality to retailers is very good in

Kolkata market that‟s why retailers are very much satisfied from Kwality wall‟s.

Excel Output:

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PGDM, Report 2011

Objective: - To know whether there is any difference in the opinion of retailers about the

Service provided by Amul and Kwality.

Hypothesis:

 Ho: There is no significance difference between the responses of retailers about the

Service provided by the company.

 H1: There is significance difference between the responses of retailers about the

Service provided by the company.

Output: t-Test: Paired Two Sample for Means Amul Kwality


Mean 2.286 4.45
Variance 0.792 0.25
Observations 49 49
Pearson Correlation -0.0599
Hypothesized Mean Difference 2.16
df 48
t Stat -28.88
Interpretation: t Critical one-tail 1.677
p-value 0.3245
The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at

95% confidence limit. I.e. there is a big difference among the retailers about the Service

provided by Amul and Kwality.

Support of the Company:- It can clearly be seen from the response of retailers that
there is big difference between Amul and Kwality wall‟s in terms of „Support given by

company‟. Other company, Metro has some good perception among retailers about the

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PGDM, Report 2011

Support given by Metro to retailers. From the above diagram I can say that the Support

given by Kwality is very good, even they are distribution deep-freezer free of cost.

Support of the company


4.5
4
3.5 4
3
2.5 2.9 Amul
2 Kwality
2.02
1.5
1 Metro

0.5
0
Amul Kwality Metro

Excel Output:

Objective: - To know whether there is any difference in the opinion of retailers about the

Support given by Amul and Kwality.

Hypothesis:

 Ho: There is no significance difference between the responses of retailers about the

Support given by the company.

 H1: There is significance difference between the responses of retailers about the

Support given by the company.

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PGDM, Report 2011

Output:
t-Test: Paired Two Sample for Means Amul Kwality
Mean 2.020 4
Variance 0.687 0.583
Observations 49 49
Pearson Correlation 0.099
Hypothesized Mean Difference 1.980
df 48
t Stat -25.898
t Critical one-tail 1.677
p-value 0.294
Interpretation:

The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at

95% confidence limit. I.e. there is a big difference among the retailers about the Support

given by Amul and Kwality.

Claim Response:-

It can clearly be seen from the response of retailers that there is a significance difference

between Amul and Kwality wall‟s in terms of „Claim response time‟. From the above

diagram I can say that the Claim response time of Kwality is very less.

Claim Response
4
3.5
3 3.48
2.5 Amul
2 2.6
2.22 Kwality
1.5
1 Metro
0.5
0
Amul Kwality Metro

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PGDM, Report 2011

Amul also gives return if any claim is reported, but the time of response is very late. As

Amul is a centralized organization so the process and lengthy procedure eats time of

response.

Excel Output:

Objective: - To know whether there is any difference in the opinion of retailers about the

Claim response time by Amul and Kwality.

Hypothesis:

 Ho: There is no significance difference between the responses of retailers about the

Claim response time by the company.

 H1: There is significance difference between the responses of retailers about the

Claim response time by the company.

Output: t-Test: Paired Two Sample for Means Amul Kwality


Mean 2.612 3.469
Variance 0.326 0.254
Observations 49 49
Pearson Correlation 0.139
Hypothesized Mean Difference 0.88
df 48
t Stat -17.20
t Critical one-tail 1.68
Interpretation:
p-value 0.254

The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at

95% confidence limit. I.e. there is a significance difference between the responses of

retailers about the Claim response time by Amul and Kwality.


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PGDM, Report 2011

Offers & Schemes:-

Offer & Schemes


4
3.5
3.66
3
2.5 Amul
2 2.46
1.5 1.96 Kwality
1 Metro

0.5
0
Amul Kwality Metro

It can clearly be seen from the response of retailers that there is a significance difference

between Amul and Kwality wall‟s in terms of „Offers & Schemes‟ offered by these

companies. Other company, Metro has some good perception among retailers about the

Offers & Schemes offered by Metro. From the above diagram I can say that Kwality is

offering many schemes in Kolkata market that motivate retailers to sell more & more

products. It is clearly shown from the response of retailers that schemes of Amul are

either old or not attractive.

Excel Output:

Objective: - To know whether there is any difference in the opinion of retailers about the

Schemes offered by Amul and Kwality.

Hypothesis:

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PGDM, Report 2011

 Ho: There is no significance difference between the responses of retailers about the

Schemes offered by the company.

 H1: There is significance difference between the responses of retailers about the

Schemes offered by the company.

Output:

t-Test: Paired Two Sample for Means Amul Kwality


Mean 1.96 3.67
Variance 0.75 0.39
Observations 49 49
Pearson Correlation 0.0904
Hypothesized Mean Difference 1.7
df 48
t Stat 23.4171
t Critical one-tail 1.68
Interpretation: p-value 0.2342

The P-value from the table is than 0.05(p>0.05), means rejecting the null hypothesis at

95% confidence limit. I.e. there is a significance difference between the responses of

retailers about the Schemes offered by Amul and Kwality.

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PGDM, Report 2011

Conclusions:-

This project was about the problem finding in northern region of Kolkata market on Ice-

cream segment of Amul. Today‟s market scenario says that Amul is lacking in northern

Kolkata in terms of Visibility and Penetration. My work is to find out the cause of the

problem, Amul is suffering and losing market. Based on the given project and market

visit I found that most of the retailers are not having Amul Ice-cream. So I prepare some

question based on initial finding from market and did retailer‟s survey and also try to

increase the no. of retail outlet of Amul. After analyzing all the collected information I

found based on the outcome of the responses from universe survey (consisting Amul,

Kwality, Metro). I conclude that Amul is having some good perception in the view of

retailers in terms of Brand, Profit Margin, Price of Product and varieties of product.

But Amul is having low market share and visibility in the market. It is because of

Supply chain problem, frequency of feedback of the services taken by company

employee, material of visibility given to retailers is very less in number, Service of the

company given to the retailers, claim response lateness, and less no. of offers and

schemes. These are the factors that helped the Kwality to be no.1 brand in Kolkata or else

Amul will be leading.

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PGDM, Report 2011

Limitation of Study:-

Since the study is done in only one region of Kolkata in a specific market. This result

can‟t be generalized on all basis of Kolkata market. It might be possible that the scenario

would be different in Eastern or Western part of Kolkata. There might be other possibility

i.e. hiding of data by shopkeepers, sharing of personal grievances about the company, due

to these reasons which can hinder the result we get from the survey. Still a lot of work

requires making this project effective. Owing to being peak season many retailers were

busy and did not give time to conduct survey. Some of the data like sales figure, amount

of delivery and profit margin don‟t want to share.

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PGDM, Report 2011

Recommendations:-

 Company should focus on those parts of Ice-cream segment which demand is more,

like vanilla, chocolate and 2-in -1 demand is more so come should focus of

distributing these items more.

 As the fact coming form market survey that the distributor is coming at anytime or

mostly afternoon when the shop is about to be closed. So distributor to ask for time in

a specific area and ensure them that the time of delivery would be during these

timing. Because this might be one of the factors which is affecting the supply of Ice -

cream.

 Average visit in a specific area by the retailer is about 1.75 only. It means only 1-2

days of visit in a week, comparing to Kwality the average visit is 2.45 means 2-3 visit

in a week. So company should instruct their distributors that the visit in an area

should be more than 2 in a week. So that the supply problem will not hamper.

 To meet the demand, company should focus more on supply of products. As per the

reflection from survey, said that there is a less supply of Amul products and some of

the new products i.e. Pro-biotic and Sugar-free is not available in the market from 3-4

months. So company should supply at least one time in a month of these rare

products, so that customer will carry on buying Amul.

 Based on the output of result from the survey, company is lacking in term of

feedback of the services. So company should employee more people so that the

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PGDM, Report 2011

supply and demand problem or any other service related problem remove quickly

from market.

 Company should focus on visibility of products. Company should invest a little bit on

visibility of Amul Ice-cream in a retail shop by showing them hoarding, banner,

pricelist and Amul availability.

 To be a brand and be no.1 in Kolkata market, company should always shows strength

in the market. This is possible only when there is no any bad impression about the

company in the market. So company should focus on quick response for claim and

any other problem.

 As every retailer wants more and more within a short span of time. So company

should attract them by giving them gifts after completion of sales target. Company

should always attract the retailers so that they will keep Amul Ice-cream by offering

some Schemes.

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PGDM, Report 2011

Bibliography
AC Neilsen. (2009). FMCG report in India. India: AC Neilsen.

Amul Ice-cream. (2010). Retrieved May 2011, from www.amulicecream.com

Amul:GCMMF. (2010). Retrieved May 2011, from www.amuli.com

Amul:GCMMF (Composer). (2010). Mission 2020. [C.-A. Gujrat, Performer, &

Amul:GCMMF, Conductor] Gujrat.

Chandra, P. (2010). Indian Ice-cream Industry Report. The Wall Street Journal , 27.

Department of Industrial Policy and Promotion. (1955). Retrieved May 2011, from

www.dipp.nic.in

Google. (2011, June). Retrieved June 2011, from www.google.co.in

India, T. t. (2010). Kolkata: Rate of Increase of Population. Kolkata: The times of India.

Kumar, P. (2009). Ice-cream Industry Analysis. New Delhi: SVITS.

Malhotra, N. K. (2010). Marketing Research. India: Pearson.

Map, G. (2011, May). Google Map. Retrieved May 2011, from http://maps.google.co.in

Marketing Research. (1994). Journal on Marketing Research , 237-243.

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PGDM, Report 2011

ANNEXTURE

Questionnaire for Retailer:-


Qualitative Data-

1. How many years you have been retailers of ice-cream ?


(a) <= 1 yrs b) <= 2 yrs c) <= 3 yrs d) <= 4 yrs e) <= 5 yrs f) >
5 yrs
2. What type of ice-cream has more sales ?
(a)Cups b) Sticks c) Cones d) Family pack e) Gallon f) Others, specify
……
3. Which flavor of ice-cream is most demanded?
(a) Vanilla b) Chocolate c) Butter scotch d ) Trutty Fruity e) 2 in 1
f) Keep changing g) Others , please specify ………………………………………
4. What is the time of delivery, mostly distributor visit to your shop?
(a) 10-11A.M (b) 11-12 A.M (c) 12-01 P.M (d) 01-02 P.M (e) 5-6 P.M (f) 6-7 P.M
5. What is the frequency of visit of distributor in a week?
(a) 0-1 (b) 1-2 (c) 2-3 (d) 3-4 (e) 4-5

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PGDM, Report 2011

Quantitative Data-

6. Please give the ratings to the following attributes with the product.

(a) 5 – for excellent b) 4 – for good c) 3- for ok d) 4 – for poor e) 5 – for very poor

Attributes Amul Kwality Metro Others(………)


wall’s
Brand Image
Profit Margin
Supply
Demand of Product
Price of the product
Range of Product
Frequency of feedback of the
service
Company support
Material of visibility
Support of the company
Claim Response
Offer & Schemes

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