A STUDY ON

DISTRIBUTION CHANNEL EFFECTIVENESS

OF ICE CREAM MARKET (Amul & Kwality Walls)
IN HYDERABAD

By
L. RAMANA PRAKASH
B.Tech. (DT), M.Sc. (FST),

A PROJECT SUBMITTED TO THE

ACHARYA N. G. RANGA AGRICULTURAL UNIVERSITY
IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF

MASTER OF AGRI BUSINESS MANAGEMENT

SCHOOL OF AGRI BUSINESS MANAGEMENT

COLLEGE OF AGRICULTURE
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY
RAJENDRANAGAR, HYDERABAD-500 030
AUGUST, 2006
 CERTIFICATE

This is to certify that Mr. L.RAMANA PRAKASH, student of Master of

Agri Business Management, School of Agri Business Management, College of

Agriculture, Acharya N.G. Ranga Agricultural University, Hyderabad has done a project

work entitled “A STUDY ON DISTRIBUTION CHANNEL EFFECTIVENESS OF

ICE CREAM MARKET” (Amul and Kwality Walls) IN HYDERABAD with Gujarat

Co-operative Milk Marketing Federation Limited, Hyderabad during the period

5 -5-2006 To 5-7-2006.

The content and the execution of the project are good and also the insights gained

are useful. We wish Mr. L.Ramana Prakash a bright and successful future.

Place : Hyderabad N. Maheswar Reddy

Date : 5 - 7 - 2006 Sr. Executive (Sales)

(External Guide)
 CERTIFICATE

This is to certify that the project entitled “A STUDY ON DISTRIBUTION

CHANNEL EFFECTIVENESS OF ICE CREAM MARKET (Amul and Kwality

Walls) IN HYDERABAD” submitted in partial fulfillment of the requirements for the

degree of Master of Agri Business Management to the School of Agri Business

Management of the Acharya N.G. Ranga Agricultural University is record of the

bonafied project work carried out by Mr. L.RAMANA PRAKASH under our guidance

and supervision.

No part of the project report has been submitted for any other degree or diploma.

The project report is approved by the guides.

Internal Guides

Chairman: Dr. Seema -------------------------------------

Associate Professor
School of Agri Business Management
ANGRAU, Hyderabad

Member: P. Radhika --------------------------------------

Assistant Professor
School of Agri Business Management
ANGRAU, Hyderabad
 DECLARATION

I, Mr. L. Ramana Prakash hereby declare that the project report entitled

“A STUDY ON DISTRIBUTION CHANNEL EFFECTIVENESS OF ICE CREAM

MARKET (Amul and Kwality Walls) IN HYDERABAD” submitted to the School of

Agri Business Management of Acharya N.G. Ranga Agricultural University in partial

fulfillment of the requirements for the degree of Master of Agri Business Management

is the result of original work done by me.

Date : Student’s Name & Signature

( L.RAMANA PRAKASH )
 ACKNOWLEDGEMENTS

This project is an outcome of not just my efforts but many people have been

involved in this work directly or indirectly through their guidance, help and

encouragement that, I wish to thank.

I owe my deep sense of gratitude to Gujarat Co-operative Milk Marketing

Federation Limited (GCMMFL) and it’s Assistant Manager (Sales) Hyderabad,

Mr. S.V. Chary for providing me an opportunity to carry out the project study.

I fervently extent my profound regards to Dr. V.T.Raju, Professor and Head,

Dr Seema, Associate Professor, and P. Radhika, Assistant Professor, School of Agri-

Business Management, ANGRAU for their invaluable suggestions, crisp criticism and

scholarly guidance.

I owe my special thanks to Mr. Maheswara Reddy, Sr. Executive (Sales),

GCMMF, and Mr. Sri Hari, Junior Executive (Sales) of Amul Sagar, GCMMF for their

encouragement and their valuable guidance and support.

I express my sincere thanks to Distributors and Retailers who helped me in data

collection. My sincere appreciation goes to all my friends. I owe my sincere thanks to all

those individuals who has helped me directly or indirectly to make it possible and my

gratitude remains unforgettable.

L. Ramana Prakash
 CONTENTS

CHAPTER TITLE PAGE NO

LIST OF TABLES

LIST OF GRAPHS

EXECUTIVE SUMMARY

I INTRODUCTION

II METHODOLOGY

III RESULTS AND DISCUSSION

IV SUMMARY AND CONCLUSIONS

V SUGGESTIONS

VI APPENDIX

QUESTIONNAIRE TO THE RETAILER

QUESTIONNAIRE TO THE DISTRIBUTOR
 LIST OF TABLES

TABLE No TITLE PAGE No

1.1 Major national players in ice cream market in India

1.2 Local players in ice cream market in India

3.1 Ownership of freezers in the Amul ice cream retail outlets

3.2 Ownership of freezers in the Kwality Walls ice cream

retail outlets
3.3 Retailers experience in Amul ice cream business

3.4 Retailers experience in Kwality Walls ice cream business

3.5 Turnover of the Amul retail outlets (in Rs)

3.6 Turnover of the Kwality Walls retail outlets (in Rs)

3.7 Freezer storage capacity of Amul retail outlets (in liters)

3.8 Freezer storage capacity of Kwality Walls retail outlets (in

liters)
3.9 Sales of cup ice cream of Amul and Kwality Walls (in %)

3.10 Sales of Bricks / Flavours ice cream of Amul and Kwality

Walls (in%)
3.11 Sales of Bars / Stick ice cream of Amul and Kwality Walls
(in %)
3.12 Sales of Cone ice cream of Amul and Kwality Walls (in %)

3.13 Retailers understanding about customer preference of

Amul and Kwality Walls ice creams (in %)
3.14 Retailers’ satisfaction with the quality of service rendered
by the distributors (in %)
 3.15 Type of complaints with regard to ice creams of Amul and
Kwality Walls (in %)
3.16 Support from the company to the retailers of Amul and
Kwality Walls (in %)

LIST OF GRAPHS

GRAPH No TITLE PAGE No

1 Ownership of freezers in the Amul ice cream retail outlets

2 Ownership of freezers in the Kwality Walls ice cream retail

outlets
3 Retailers experience in Amul ice cream business

4 Retailers experience in Kwality Walls ice cream business

5 Turnover of the Amul retail outlets (in Rs)

6 Turnover of the Kwality Walls retail outlets (in Rs)

7 Freezer storage capacity of Amul retail outlets (in liters)

8 Freezer storage capacity of Kwality Walls retail outlets (in

liters)
9 Segment wise sales of cup ice cream of Amul

10 Segment wise sales of cup ice cream of Kwality Walls

11 Segment wise sales of Brick/Flavour ice cream of Amul

12 Segment wise sales of Brick /Flavour ice cream of Kwality

Walls
EXECUTIVE SUMMARY
Author : L.Ramana Prakash
I.D. No. : MABM – 2004 - 03
Title of the project : “A study on distribution channel effectiveness
of ice cream market (Amul and Kwality Walls)
in Hyderabad”
Degree : Post Graduation
Faculty : Agriculture
Discipline : Master of Agri Business Management
Major Advisor : Dr. Seema
University : Acharya N.G. Ranga Agricultural University
Year of submission : 2006

------------------------------------------------------------------------------------------------------------

EXECUTIVE SUMMARY

Ice cream, a most palatable and nourishing food, which was once considered to be

a sophisticated item, is becoming more and more popular among all sections of the

people in recent times. As the mercury rises nobody is happier than the ice-cream

manufacturers who are already filling their iceboxes with dollops of new, mouthwatering

flavours.

Amul is the largest food brand in India, which has a turnover of Rs 3800 crores

per annum. They are manufacturing and marketing perishable dairy products by using

most modern plants and effective distribution channels.

 The primary objective of the study was to ascertain the major factors that are

influencing the effective distribution of Amul ice creams manufactured by Gujarat Co-

operative Milk Marketing Federation Limited (GCMMFL) by comparing with the

Kwality Walls, the leading player in the Hyderabad market.

The respondents are distributors and retailers. Retailers include ice-cream parlors,

dairies, supermarkets, bakeries, general stores, pan shops, canteens, STD booths etc.

The study was undertaken with the following objectives:

1) To find out effectiveness of the distribution channel

2) To study the market for Amul ice cream, GCMMF Ltd

3) To study the retailer reasons for promoting Amul brand and their level of

satisfaction

4) To find out the factors influencing the effective distribution of Amul ice creams

5) To suggest suitable plan of action to improve its competitive position.

The main purpose of the study is to find out the distribution channel effectiveness of

Amul ice creams and the influence of the company’s offers and schemes for improving

their sales. The study also included the extent of distributors and retailers satisfaction

regarding the service and the profit margins.

IMPORTANT FINDINGS

 Most of the retailers of Amul were quite satisfied with its services as they have

good relationship with distributors.

 Good demand and Quality are the major reasons for distributors and retailers for

promoting and opting for the brand Amul.

  Amul stands first announcing special consumer offers and is the major prime

motivation for the retailers preferring the brand.

 The retailers have problem of product range, replacement policy and availability

of stock (especially in peak season) with regard to Amul ice cream.

 The distribution channel is less effective in Amul ice creams during the peak

season.

 Consumers prefer Amul brand because of special offers and quality of the product

as expressed by retailers

SUGGESTIONS

 There is a scope for Amul to improve on its product range in different categories.

 The company can improve its replacement policy.

 If the availability of stock especially during the peak season can be improved, it

would boost up the company’s sales.

 The company can improve the margins for distributors and retailers, which would

act as an incentive to improve and develop the market.

 All these offering are no doubt welcome in the sweltering heat during summer.

But "With everyone on a health binge, it would be challenging for players to

increase consumption."
INTRODUCTION
 CHAPTER-I
INTRODUCTION

1.1 INTRODUCTION

Ice cream, a most palatable and nourishing food, which was once considered to be a

sophisticated item, is becoming more and more popular among all sections of the people

in recent times. The popularity and higher consumption of ice cream could be attributed

to its refreshing, cool and delightfully sweet characteristics. The per capita consumption

of ice creams in India is a paltry 250 ml per annum while the average global consumption

is 2 liters.

As the mercury rises nobody is happier than the ice-cream manufacturers who are

already filling their iceboxes with dollops of new, mouthwatering flavours. Amul is the

market leader in this frozen category with a 27 per cent share. It is followed by Kwality-

Wall's at 8 per cent, Vadilal and Mother Dairy, Delhi at 7 per cent each with Dinshaw

and Arun each having a 4 per cent share of the market. The rest of the cone is filled up by

regional brands.

The ice-cream mix was completely different two years ago with both Amul and

Kwality Wall's running almost neck-to-neck. But, Amul's low-priced offerings were

something that HLL couldn't take on for long. And a couple of years ago, HLL

abandoned the masses to chase value shares in the Rs 2,000 crore (Rs 20 billion) ice-

cream market.
 Both Amul and Hindustan Lever's (HLL) Kwality Walls claim to be the largest

selling ice-cream brands in India. While HLL quotes a market research study by AC

Nielson, which puts Kwality Walls at the No 1 spot, an independent study by

Ahmedabad-based Consumer Education and Research Society (CERS) ranks Amul as No

1, followed by Kwality Walls on various parameters of taste, melting quality, weight, fat

and sugar content.

1.2 MARKETING CHANNELS

1.2.1 INTRODUCTION

In the modern world, production and distribution have become very complex.

Goods are produced in a far away place, whereas consumers are scattered throughout

country and abroad. Under the circumstances, the producer will not be able to sell goods

directly to the ultimate consumers. The reasons are many : the producer lacks the

financial resources, he has to maintain a large sales force, the products may not justify the

establishment of separate sales outlets, problems of management and control arise,

instead of spending a lot of time and energy on distribution, one can concentrate on

production.

The task of distribution involves transfer of ownership and physical possession of

products and services from the manufacturer to the consumers. Transfer of ownership is

an exchange process and it comprises the channels of distribution. Transfer of possession

involves problems of warehousing and transportation, called physical distribution.

1.2.2 THE CONCEPT OF MARKETING CHANNEL

A channel of distribution may be defined as “an organized network of agencies

and institutions, which, in combination performs all of the activities required to link

producers with users and users with producers in order to accomplish the marketing

tasks”. The channel enables the seller to find out the users of its merchandise and help the

buyer to obtain the products he wants.

Generally a channel includes three parties – the manufacturer, the middleman

(wholesaler/retailer/agent) and the consumer. A channel of distribution represents the

path for the movement of title, possession and payment for goods and services.

1.2.3 DISTRIBUTION CHANNELS

The distribution of goods is the most important activity in the process of

marketing. We can define the distribution channel as the set of marketing institutions

participating in the marketing activities in the movement or the flow of goods or services

from the primary producer to the ultimate consumer.

Distribution channels are grouped into two major groups: (i) Direct and (ii)

Indirect. In a direct channel or route, there are no middlemen and marketing functions are

performed by the producer or manufacturer and goods directly pass on from him to the

consumer. In an indirect channel or route, there is more than one middleman in

distribution, linking producer and consumer. They perform the marketing functions.
 1.2.4 CHANNELS OF DISTRIBUTION IN MARKETING OF ICE CREAM

The most common routes for bringing the products to the market i.e. from the

producer to the consumer are shown in the figures show below:

DIRECT CHANNEL

PRODUCER CONSUMER

INDIRECT CHANNEL

PRODUCER WHOLESALER CONSUMER

PRODUCER WHOLESALER RETAILER CONSUMER

PRODUCER CONSUMER
AGENT WHOLESALER RETAILER

PRODUCER CONSUMER
RETAILER

DIAGRAM OF DISTRIBUTION CHANNEL

1.2.5 IMPORTANCE OF MARKETING CHANNELS

Channels of distribution have a vital role to play, especially in the distribution of

consumer goods. The most innovative product offered at an attractive price would be of

no use unless there is an efficient distribution system. The consumer will not search for

the product; it has to be made available at a convenient place from where he can obtain it

easily. The distribution channel provides three types of utilities –time, place and

ownership.

Time utility means the products should be made available when consumers want

them. Place utility is provided by making the product available at a location where a

consumer wants it. Ownership utility is created when the physical possession and title to

the product are transferred to the consumer.

Market channels play a far more important role than the mere transporting of

goods from producer to consumers. The economic function of the various institutions that

make up a channel are cost reduction, financing, co-operation in setting prices,

communication link between the buyer and the user, promotional assistance, and

reduction in the number of transactions.

1.2.6 FUNCTIONS OF MARKETING CHANNELS:

The channels of distribution perform the following functions:

 Channels provide the route to the link the producers and users. Goods produced in

far away places are made available to the users.

 Goods are stored by the middlemen in the channel and released to the market

depending on demand. They facilitate storage of goods.

  Introduction of new products / merchandising is made easier. They bring to the

notice of their customers new products and help the manufacturer in demand

creation. They also act as good salesmen in promoting new products.

 Channel members “break the bulk” i.e; products are offered in small quantities to

the buyers.

 Channels provide the financing function. They advance money to the

manufacturers and render credit facilities to the retailers.

 Physical possession and transfer of title to goods are made easier.

 They provide market information to the buyers

 They bring products nearer to the consumer

1.2.7 CHANNEL CHOICE

The problem of selecting the most suitable channel of distribution for a product is

a complex one. A number of factors have to be considered such as the nature of a

product, market trends, competition outlook, pricing policies, typical consumer goods and

the needs of the manufacture himself.

1.2.7.1 PRODUCT CONSIDERATIONS

a) If a commodity is perishable or fragile, a producer prefers a few controlled levels

of distribution. For perishable goods, a speedy movement needs a shorter route of

distribution.

b) For durables and standardized goods, a longer and diversified channel may be

necessary
 c) For a custom made product, direct distribution to a consumer or an industrial user

may be desirable

d) For a technical product requiring specialized selling and serving talent, we have

the shortest channel

e) Products of a high unit value are sold directly by traveling salesmen and not by

middlemen

1.2.7.2 MARKET CONSIDERATIONS

a) For the consumer goods market, retailers are essential, but from the industrial

market we may eliminate the retailer

b) If the market size is larger, we have many channels; in a small market, direct

selling may be profitable

c) For highly concentrated markets, direct selling is adequate enough; but for widely

scattered and diffused markets we must have many channels

d) The size and average frequency of consumer’s orders influence the decision about

the use of a particular channel of distribution

For the sale of food products, we need both the wholesaler and retailer. A market

implies people who have money and who are willing to purchase want satisfying goods.

The age, income group, sex, vocation, and religion of the customers will have to be

studied to secure adequate information about market segments or target markets. The

buying habits of customers and dealers will also influence our choice of a channel.
1.2.7.3 MIDDLEMEN CONSIDERATION

a) Services provided by middlemen

b) Availability of desired middlemen

c) Attitude of middlemen towards producer’s policies

1.2.7.4 COMPANY CONSIDERATIONS

a) Desire for channel control

b) Ability of management

c) Services provided by seller

d) Financial resources

1.2.8 CHANNEL DECISION

A unit must choose whether to attempt extensive, selective or exclusive

distribution or a combination of all the three. The decision is taken after a careful analysis

of the product, consumer preference, dealers, company objectives and policies,

competition and other relevant factors. The company must solve the conflict within the

channels and bring its product profitability to the market.

Once a unit has determined its basic channel design and levels of distribution, it

has to select middlemen, appoint them, motivate their efforts, and evaluate their utility

periodically.

Each channel of distribution performs the typical marketing functions, which are

exclusively assigned to it. Retailing, wholesaling and physical distribution (transport,

storage and inventory control) are treated as separate entities in distribution for purposes
of easier understanding. From the viewpoint of marketing management, the whole

process is a continuous one and constitutes the distribution system in which the

ownership and possession of goods flow to consumers. To locate customers, meet their

demand and offer them service and satisfaction- these are the basic tasks of the

manufacturers, wholesalers and retailers who combine for an integrated channel of

distribution. Joint co-operative and united efforts alone will ensure the successful

distribution of a product.

1.3 MARKET COVERAGE

Once a unit decides on the general channels to be used, it has to determine the

number of middlemen it needs in each channel, i.e., the intensity of distribution. There

are three alternatives:

a) INTENSIVE DISTRIBUTION:

The strategy of intensive distribution, seeks to obtain maximum exposure of

product at retailer level or wholesaler level. Ultimate consumers will not go out of their

way to purchase a product or will readily accept substitutes, when brand is not available.

The appropriate strategy is to saturate every suitable retail outlet with the brand.

b) SELECTIVE DISTRIBUTION

At the retail level, a strategy of selective distribution restricts the sale of the

product to a limited number of outlets. Each store selected must meet the company’s

performance standard while appealing to select target market. As distribution becomes

more selective, the manufacturer may expect a greater effort on the part of retailer.

Retailers are expected to be more willing to accept the manufacturers’ suggestions and
control on marketing strategy. If the product has a long and useful life and if consumer

brand preference can be established, Selective distribution will be very profitable.

c) EXCLUSIVE DISTRIBUTION

When a product requires aggressive personal selling, a complete inventory of the

product line, repair service, or other special effort on intermediary may be granted to an

exclusive area under exclusive distribution. The manufacturer can have greater control

over prices and markets and he can get the maximum co-operation from middlemen.

1.4 COMPANY PROFILE (AMUL)

1.4.1 HISTORY

Dr Verghese Kurein and milk producers of Gujarat under the advise of nationalist

leaders, Sardar Vallabhai Patel and Morarji Desai, formed Amul in the year 1946. Amul

is based in Anand town of Gujarat. Amul initiated the Dairy Co-operative Movement in

India and formed an apex co-operative organization called the Gujarat Co-operative Milk

Marketing Federation Ltd (GCMMF). This co-operative revolution has made India the

largest producer of milk in the world today.

GCMMF is the marketing entity for products of all unions in the state of Gujarat.

GCMMF has 42 regional distribution centers in India, serves over 500,000 retail outlets

and exports to more than 15 countries. All these organizations are independent legal

entities yet loosely tied together with a common destiny. In recent survey GCMMF was

ranked amongst the top ten FMCG firms in the country while Amul was rated the second

most recognized brand in India amongst all Indian and MNC offerings.
 Interestingly, the Gujarat movement spread all over India and a similar structure

was replicated two national organizations; the National Dairy Development Board

(NDDB) and the National Co-operative Dairy Federation of India (NCDFI) were

established to coordinate the dairy activities through co-operatives in all the states of the

country.

1.4.2 COMPANY MISSION

Amul may justifiably take pride in having built the largest food product business

in the country. In the competitive environment, Amul has survived and grown on the

basis of its greatest strength: co-operative culture, co-operative networking, market

acumen and respect for both producer and the consumer.

AMUL means "priceless" in Sanskrit. Amul products have been in use in millions

of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, Amul

Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and

Amulya have made Amul a leading food brand in India. Today Amul is a symbol of

many things:

 Of high-quality products sold at reasonable prices.

 Of the genesis of a vast co-operative network.

 Of the triumph of indigenous technology.

 Of the marketing savvy of a farmers' organization.

 And have a proven model for dairy development.

Gujarat Co-operative Milk Marketing Federation (GCMMF) is India’s largest dairy

food product marketing organization. The federation supplies liquid milk to Mother
Dairy, Delhi; which is an important step in establishing a national grid. It has adopted

standards and specifications that conforms to the most stringent standards the world over.

Co-operatives in Gujarat, which aims to provide remunerative returns to the farmers and

also serve the interest of consumers by providing milk products which are good value for
Th
money. For the 7 consecutive year federation has received the award for being the

Nation’s largest exporter of the dairy products.

The brand loyalty and commitment of the wholesale dealers and retailers have made

it possible for the products to reach consumers in the remotest parts of our country.

The Amul ice cream business is currently growing at the rate of more than 20 percent. It

has now adopted a scheme called ‘Hamara Apna Deep Freezer’ for strengthening the

retail network.

1.5 DISTRIBUTION

Providing place, time, form and possession utilities to consumers is the essence of

distribution management. The Ice-Cream distribution channel typically consists of a

distributor / stockiest and the retailer. Since its perishable period is high it requires

relatively short distribution channels – ideally suited to using intermediaries such as

retailers.

Most players have regional operations with production facilities located near the

market as adequate cold chain facilities for transportation over long distances is not

available. Distribution of national brands is done through owned or leased cold storage

facilities located in the major consumption centers from where the suppliers are sent to

distributors or directly to retailers.

 The retail network for Ice-cream consists of exclusive Ice-cream parlors, which

may be company owned or franchise outlets and retail outlets like provision stores,

supermarkets, bakery, etc; Today most of the companies in the industry are opening these

Ice- cream parlors to cater to retail segment. Moreover with retail margins being in the

range of 18-20 % coupled with urbanization the companies are emphasizing on this from

of retailing.

1.6 MAJOR PLAYERS

The Indian Ice-cream market is dominated by a large number of small local

manufacturers and regional players. There are nearly 150 manufacturers in the organized

segment, which accounts for 30-35% of sales i.e. about 2000 units.

In the organized segment, the significant brands are Kwality Walls, Vadilal,

Amul, Mother Dairy and Baskin Robbins.

Table no-1.1 : Major National players in ice cream market in India

S.No MAJOR NATIONAL PLAYERS BRANDS

1 Hindustan Lever Limited Kwality Walls, Dairy
Classic, Max, Cornetto,
Magnum
2 Vadilal International Vadilal, Dairy Fresh

3 GCMMF / Other milk Co-operatives Amul, Mother dairy

4 Maharashtra Dairy Products Baskin Robbins
1.7 OTHER PLAYERS

Besides the main national brands there are other premium brands, which have

carved a niche for themselves in their respective markets. These players mostly

concentrated on large metro cities. These players sell through their exclusive parlors. The

major national players sell through franchise parlors, as well as through retail stores,

groceries, restaurants, hotels, roadside stall on high ways, etc.

Table no-1.2 : Local players in ice cream market in India

S.No REGION BRANDS

1 NORTH Nirula

2 SOUTH Arun, joy, Nandini

3 EAST Tulika, Rollicks (Induss Ice-cream)

4 WEST Nature world, Pastonji, Naturals,DInshaw

1.8 STATEMENT OF THE PROBLEM

To understand distribution channel effectiveness of Amul ice cream for the two

distributors Sri Krishna Enterprise and Sudarshan Enterprise and retail outlets covered by

them in the twin cities of Hyderabad and Secunderabad. The study is based on the two

sources of data viz., primary and secondary sources. The present study depends mostly on

the primary data, which is collected with the help of questionnaire.

1.9 SCOPE OF THE STUDY

The study is going to bring out the ways and means to improve the effectiveness

of distribution channel in marketing of ice cream, as it is one of the important

components in improving the market. The study also probes the preferences of the

consumers and their awareness.

1.10 OBJECTIVE OF THE PROJECT

 To find out effectiveness of the distribution channel

 To study the market for Amul ice cream GCMMF Ltd

 To study the retailers reasons for promoting Amul brand and their level of

satisfaction

 To find out the factors influencing the effective distribution of Amul ice creams

 To suggest suitable plan of action to improve its competitive position

METHODOLOGY
 CHAPTER - II

METHODOLOGY

The present study wants to unearth the information about effectiveness of the

distribution channel and potential market for Amul ice cream, the retailer reasons for

promoting Amul brand and their level of satisfaction and factors affecting the effective

distribution of Amul ice cream.

Therefore, research design adopted for the present study is exploratory in nature.

The data collection includes both primary and secondary.

2.1 DESIGN OF THE STUDY

Hyderabad and Secunderabad cities were selected for the study. Both distributors

and retailers were contacted to get the information.

2.2 SOURCE OF DATA

The study made use of both primary and secondary sources. The primary sources

consist of questionnaires administered to the distributors and retailers. The secondary

sources of information about the ice cream market and the company information is

collected from the office records and Internet.

2.3 DATA COLLECTION – SURVEY METHOD

Survey method was adopted with structured questionnaire. Two separate

structured questionnaires were designed to elicit responses from retailers (Annexure-1)

and distributors (Annexure-2). The two questionnaires were pre tested and necessary

changes were brought up accordingly.

The areas covered are – Rajendranagar, Mehidipatnam, Tolichowki, Banjarahills,

Masabtank, Yosufguda, Ameerpet, Malkajgiri, Alwal, Tarnaka, SR nagar,Tirumalagiri,

Sainik puri, Karkhana, Bowenpally, ECIL, Nacharam etc.

2.4 SAMPLING

For this study the main sample units were the distributors and retailers who deal

directly in Amul products. The sample size was 200 retail outlets, of which 150 were

Amul outlets and 50 were Kwality Walls outlets.

2.5 DATA PROCESSING AND ANALYSIS

The data collected through questionnaire were analyzed using the latest statistical

tools like SPSS (Statistical Package for Social Sciences).

2.6 LIMITATIONS OF THE STUDY

 The study was limited to the areas that were covered by the two distributors in

Hyderabad and Secunderabad. So the results cannot be represented to all the

distributors of the company

 Study was restricted only to 150 retailer outlets of Hyderabad and Secunderabad

 Study was restricted to understand the channel effectiveness of only those

intermediaries that represent the sample collected

RESULTS AND DISCUSSION
 CHAPTER-III

RESULTS AND DISCUSSION

3.1 Ownership of freezers in the ice cream outlets

Freezer is one of the important equipment in stocking and retailing of ice creams.

These freezers are sometimes supplied by the company to certain outlets, whereas some

of the retailers maintain their own freezers. The following table provides the information

about the ownership pattern of freezers for Amul ice creams.

Table No-3.1: Ownership of freezers in the Amul ice cream

retail outlets

S.No Ownership of freezer Number Percent

1 Retailer owned freezer 140 93.3

2 Company owned freezer 10 6.70

Total 150 100

From the above table we can interpret that 93 .3 % of retailers who were selling

Amul ice cream have their own freezer and only 6.7 % have company owned freezers.

The reason being that Amul supplies freezers only to the exclusive Amul outlets and

those outlets, which outperformed the given targets.

 The ownership pattern of freezers with regard to Kwality Walls ice cream is given

under in table 3.2.

Table No-3.2: Ownership of freezers in the Kwality Walls ice

cream retail outlets

S.No Ownership of freezer Number Percent

1 Retailer owned freezer 41 82

2 Company owned freezer 9 18

Total 50 100

From the table we can conclude that 82 % of retailers who were selling Kwality

Walls ice cream have their own freezers and 18 % of them posses the company freezers.

The percentage of company owned freezers in Kwality Walls retailer outlets are in higher

than that of Amul retailer outlets, the reason being that Kwality Walls to fight tough

competition in the market is trying to motivate the retailers by offering them the free

company freezers.
 GRAPH No-1: Ownership of freezers in the Amul ice cream retail outlets

Company owned
freezers
7%

Retailer owned
freezers
93%

GRAPH No-2: Ow nership of freezers in the Kwality Walls ice cream retail outlets

Company owned
freezers
18%

Retailer owned
freezers
82%
3.2 Retailers experience in ice cream business

In the globalization era most of the companies are facing tough competition

among themselves. So they have established more number of retail outlets in recent years

to increase accessibility and availability of the products to the consumers. The following

table provides the information about the number of years associated with the ice cream

business with regard to Amul retailers.

Table No-3.3: Retailers experience in Amul ice cream business

S.No Years Number Percentage

1 0-5 Years 83 55.3

2 6-10 Years 42 28

3 11-15 Years 21 14

4 16-20 Years 4 2.7

Total 150 100

From the above table we can interpret that 55 % of Amul retailers fall in 0-5 years

category in the ice cream business. The reason being that the demand of ice cream has

been increasing rapidly in recent years due to increased purchasing power of the

consumers and changed food habits of the people. In addition GCMMF (Amul) has

changed their distribution strategy from selective distribution to intensive distribution of

ice creams.
 The number of years associated with the ice cream business with regard to

retailers of Kwality Walls is given under in table 3.4

Table No-3.4: Retailers experience in Kwality Walls ice cream business

S.No Years Number Percentage

1 0-5 Years 24 48

2 6-10 Years 12 24

3 11-15 Years 11 22

4 16-20 Years 3 6

Total 50 100

From the table it can interpret that 48 % of Kwality Walls retailers fall in 0-5

years category in the ice cream business. The growth of Kwality Walls retail outlets was

less when compared to Amul retail outlets in last 5 years. The reason being that Amul

brand was giving more offers and incentives to the retailers as well as dealers to improve

the sales of ice cream as compared to Kwality Walls. But both Amul and Kwality Walls

retail outlets were growing rapidly with the industry growth in general.
 GRAPH No-3: Retailers experience in Amul ice cream business

60
55.3

50

40
PERCENTAGE

30 28

20
14

10
2.7
0
0-5 Years 6-10 Years 11-15 Years 16-20 Years
YEARS IN BUSINESS

GRAPH No-4: Retailers experience in Kwality Walls ice cream business

60

48
50
PERCENTAGE

40

30
24
22
20

10 6

0
0-5 Years 6-10 Years 11-15 Years 16-20 Years
YEARS IN BUSINESS
3.3 Turnover of ice cream retail outlets

According to Ronald Gist’s margin- turnover framework, one of the key

parameter of retailing is turnover. Most of the retail marketing strategies are mainly based

on the turnover of the retail outlets. The following table provides the information about

the turnover of Amul ice cream retail outlets.

Table No-3.5: Turnover of the Amul retail outlets (in Rs)

S.No Turnover Number Percentage

1 2 - 2.5 lakhs 17 11.3

2 2.5 - 3 lakhs 57 38

3 3 - 3.5 lakhs 39 26

4 3.5 - 4 lakhs 18 12

5 4 - 4.5 lakhs 9 6

6 4.5 - 5 lakhs 3 2

7 5 lakhs and above 7 4.7

Total 150 100

From the table it can conclude that 38 % of Amul retailers were selling Amul ice

creams with a turnover of Rs 2.5 – 3 lakhs and 26 % of Amul retail outlets had a turnover

of Rs 3 – 3.5 lakhs. It indicates more number of medium size retail outlets was

established by the company to cover all segments of the people.

 The retailers’ turnover with regard to Kwality Walls ice cream is given under in table

3.6.

TABLE No-3.6: Turnover of the Kwality Walls retail outlets (in Rs)

S.No Turnover Number Percentage

1 2 - 2.5 lakhs 5 10

2 2.5 - 3 lakhs 12 24

3 3 - 3.5 lakhs 13 26

4 3.5 - 4 lakhs 9 18

5 4 - 4.5 lakhs 8 16

6 4.5 - 5 lakhs 3 6

Total 50 100

From the table we can infer that the turnover of the Kwality Walls retail outlets was

ranging between Rs 2.5 – 3.5 lakhs, similar to that of Amul retail outlets. at the same time

it is also noted that the high turnover retail outlets were more in number for Kwality

Walls compared to Amul, the reason being that the unit price of Kwality Walls ice cream

was more compared to Amul ice creams and also most of the Kwality Walls retail outlets

were located in high commercial places.

 GRAPH No-5: Turnover of the Amul retail outlets (in Rs)

40 38

35

30
26
PERCENTAGE

25

20

15 12
11.3
10
6
4.7
5 2

0
2 - 2.5 lakhs 2.5 - 3 lakhs 3 - 3.5 lakhs 3.5 - 4 lakhs 4 - 4.5 lakhs 4.5 - 5 lakhs 5 lakhs and
above
TURNOVER

GRAPH No-6: Turnover of the Kwality Walls retail outlets (in Rs)

30
26
25 24
PERCENTAGE

20 18
16
15
10
10
6
5

0
2 - 2.5 lakhs 2.5 - 3 lakhs 3 - 3.5 lakhs 3.5 - 4 lakhs 4 - 4.5 lakhs 4.5 - 5 lakhs
TURNOVER
3.4 Storage capacity of ice cream retail outlets

Nowadays customer retention is very crucial in marketing amongst the

competitors. So many companies feel that availability is the most important factor in ice

cream sales. Freezers avoid temperature fluctuations during storage and distribution of

ice cream. The following table provides the information about the freezer storage

capacity of Amul retail outlets.

Table No-3.7: Freezer storage capacity of Amul retail outlets (in liters)

Storage capacity of

S.No freezer Number Percentage

1 100 - 250 31 20.7

2 251 -400 114 76

3 > 400 5 3.3

Total 150 100

From the table we can conclude that 76 % of Amul retailers have freezer with the

storage capacity of 251 – 400 liters. It indicates most of the Amul retail outlets are

uniform in nature of the business. And 251 – 400 liters capacity freezers are more

suitable as it can store enough quantity of ice cream and the frequency of distribution can

be regulated thereby saving on the cost.

 GRAPH NO-7: Freezer storage capacity of Amul retail outlets (in liters)

80 76

70

60
PERCENTAGE

50

40

30
20.7
20

10
3.3
0
100 - 250 251 -400 > 400
STORAGE CAPACITY IN LITERS

GRAPH No-8: Freezer storage capacity of Kwality Walls retail outlets (in liters)

53
52
52

51
PERCENTAGE

50

49
48
48

47

46
100 - 250 251 -400
STORAGE CAPACITY IN LITERS
 The storage capacity of freezer with regard to Kwality Walls outlets is given

under in table 3.8

Table No-3.8: Freezer storage capacity of Kwality Walls retail outlets (in liters)

S.No Storage capacity of freezer Number Percentage

1 100 - 250 24 48
2 251 -400 26 52
Total 50 100

From the table we can interpret that most of the retailers who were selling

Kwality Walls ice creams have the freezer capacity ranging between 100 – 250 liters

(48 %) and 251 – 400 liters (52 %).

3.5 Segment wise sales of Amul and Kwality Walls ice creams

A group of products, within a product class that are closely related because they

perform a similar function, are sold to the same customer groups, are marketed through

the same outlets or channels or fall within given price ranges. The following table

provides the information about the sales of cup ice cream of Amul and Kwality Walls in

different ice cream outlets.

Table No-3.9: Sales of cup ice cream of Amul and Kwality Walls (in %)

Sales of cup ice cream

AMUL 10% 15% 20% 25% 30% 35% Total

Super Markets 3.4 5.3 8 2 1.3 0 20

Bakery 3.3 13.2 20 6.6 4 1.3 48.4

Kirana/General stores 0 4.0 4.7 3.3 0.7 0 12.7

STD Booths 0 0 0.7 4 2.7 0 7.4

Ice cream parlor 0 2.0 0.7 0 0 0 2.7

Milk booths 0 0.7 1.3 0 0 0 2

Pan shop 0 0 1.3 0 0 0 1.3

Sweet shop 0 1.3 0.7 0 0 0.7 2.7

Medical hall 0 0 0.7 0 0 0.7 1.4

Canteen 0 0 0.7 0 0 0.7 1.4

Total 6.7 26.5 38.8 15.9 8.7 3.4 100

Sales of cup ice cream

Kwality Walls 10% 15% 20% 25% 30% Total

Super Market 2 2 30 10 10 54

Kirana/General stores 0 0 14 4 2 20

Bakery 0 2 24 0 0 26

Total 2 4 68 14 12 100
Out of 100 % of the retailers who are selling Amul ice cream

 6.7 % of the retailers sell 10 % of cup ice cream

 26.5 % of the retailers sell 15 % of cup ice cream
 38.8 % of the retailers sell 20 % of cup ice cream
 15.9 % of retailers sell 25 % of cup ice cream
 8.7 % of retailers want to sell 30 % of cup ice cream
 3.4 % of retailers sell 35 % of cup ice cream
Out of 100 % of the retailers who stock Kwality Walls

 2 % of the retailers sell 10 % of cup ice cream

 4 % of the retailers sell 15 % of cup ice cream
 68 % of the retailers sell 20 % of cup ice cream
 14 % of the retailers sell 25 % of cup ice cream
 12 % of the retailers sell 30 % of cup ice cream

From the table we can conclude that 38 % of retailers of Amul sell 20 % of cup

ice cream whereas 68 % of retailers of Kwality Walls sale 20 % of cup ice cream. It

indicates sale of Kwality Walls in the cup ice cream segment was higher when compared

to Amul. And almost 48 % of Amul ice creams were selling through bakeries. The reason

being that bakeries have seating arrangements to sit and eat comfortably and generally

most of the middle class people, who are the main target customers for Amul, visit

bakeries.

Almost 54 % of Kwality Walls cup ice creams were sold through super markets.

The reason being that the price of Kwality Walls cup ice creams were at the premium

range and only rich and above middle class people, who are the target customers for

Kwality Walls, visit super markets.

 The sale of Bricks / Flavours ice creams with regard to Amul and Kwality Walls

brand ice creams are given under in table 3.10.

Table No-3.10: Sale of Bricks / Flavours ice cream of Amul and Kwality Walls (in%)

Sales of Bricks/Flavours Ice cream

AMUL 10% 15% 20% 25% 30% 35% Total

Super Markets 0.7 0.7 0 3.3 8.7 6.7 20

Bakery 2 8 0.7 5.3 16 16.3 48.3

Kirana/General stores 0.7 0.7 0 4 3.3 4 12.7

STD Booths 4 3.3 0 0 0 0 7.3

Ice cream parlor 0.7 0.0 0 0 0.7 1.3 2.7

Milk booths 0 0 0 0 1.3 0.7 2

Pan shop 0 0.7 0 0 0.7 0 1.4

Sweet shop 0.7 0.7 0 0 0.7 0.7 2.8

Medical hall 0.7 0 0 0 0.7 0 1.4

Canteen 0.7 0 0 0 0.7 0 1.4

Total 10.2 14.1 0.7 12.6 32.8 29.7 100

Sales of cup ice cream

Kwality Walls 10% 15% 20% 25% 30% 35% Total

Super Market 4 12 18 8 8 4 54

Kirana/General stores 2 4 6 2 6 0 20

Bakery 0 4 10 2 8 2 26

Total 6 20 34 12 22 6 100
Out of 100 % of the retailers who are stocking Amul ice cream

 10.2 % of the retailers sell 10 % Brick / Flavour ice cream

 14.1 % of the retailers sell 15 % Brick / Flavour ice cream
 0.7 % of the retailers sell 20 % Brick / Flavour ice cream
 12.6 % of the retailers sell 25 % Brick / Flavour ice cream
 32.8 % of the retailers sell 30 % Brick / Flavour ice cream
 29.7 % of the retailers sell 35 % Brick / Flavour ice cream

Out of 100 % of the retailers who stock Kwality Walls

 6 %of the retailers sell 10 % Brick / Flavour ice cream

 20 %of the retailers sell 15 % Brick / Flavour ice cream
 34 %of the retailers sell 20 % Brick / Flavour ice cream
 12 %of the retailers sell 25 % Brick / Flavour ice cream
 22 %of the retailers sell 30 % Brick / Flavour ice cream
 6 %of the retailers sell 35 % Brick / Flavour ice cream

From the table we can conclude that the sale of Amul brand in the Bricks /

Flavours ice cream segment was higher when compared to Kwality Walls. About 32 % of

Amul retailers were selling 30 % of Brick / Flavour ice cream, Whereas 22 % of Kwality

Walls’ retailers were selling 30 % of Brick / Flavour ice cream. The reason being that

Amul was giving more offers and more advertisements in this Bricks / Flavour ice cream

segment. And also Amul had high product range in this segment.
 Bars / stick ice creams are most favorite ice creams for children. The sale of Bars

/ Sticks ice creams with regard to Amul and Kwality Walls ice creams are given under in

table 3.11.

Table No-3.11: Sale of Bars / Stick ice cream of Amul and Kwality Walls (in %)

Sale of Bars/Sticks Ice cream

AMUL 5% 10% 15% 20% 25% 30% 35% 40% Total

Super Markets 0.7 2.7 8.7 4.7 1.3 0 1.3 0.7 20.1

Bakery 0 4.7 18 18 6.2 0 0.7 0.7 48.8

Kirana/General stores 0 0.0 4 6 2.7 0 0 0 12.7

STD Booths 0 0 0 0.7 4 2.7 0 0 7.4

Ice cream parlor 0 1.3 0.7 0 0 0 0 0.7 2.7

Milk booths 0 0 0 1.3 0.7 0 0 0 2

Pan shop 0 0 0 1.3 0 0 0 0 1.3

Sweet shop 0 1.3 0 0.7 0.7 0 0 0 2.7

Medical hall 0 0.7 0 0.7 0 0 0 0 1.4

Canteen 0 0 0.7 0.7 0 0 0 0 1.4

Total 0.7 10.7 32.1 34.1 15.6 2.7 2 2 100

Sale of Bars/Sticks Ice cream

Kwality Walls 15% 20% 25% 30% 35% Total

Super Market 6 12 16 12 8 54

Kirana/General stores 2 6 4 2 6 20

Bakery 4 14 4 0 4 26

Total 12 32 24 14 18 100
Out of 100 % of the retailers who are stocking Amul ice cream

 0.7 % of the retailers sell 5 % Bars/ Stick ice cream

 10.7 % of the retailers sell 10 % Bars/ Stick ice cream
 32 % of the retailers sell 15 % Bars/ Stick ice cream
 34 % of the retailers sell 20 % Bars/ Stick ice cream
 15.6 % of the retailers sell 25 % Bars/ Stick ice cream
 2.7 % of the retailers sell 30 % Bars/ Stick ice cream
 2 % of the retailers sell 35 % Bars/ Stick ice cream
 2 % of the retailers sell 40 % Bars/ Stick ice cream

Out of 100 % of the retailers who stock Kwality Walls

 12 %of the retailers sell 15 % Bars/ Stick ice cream

 32 %of the retailers sell 20 % Bars/ Stick ice cream
 24 %of the retailers sell 25 % Bars/ Stick ice cream
 14 %of the retailers sell 30 % Bars/ Stick ice cream
 18 %of the retailers sell 35 % Bars/ Stick ice cream

From the table we can infer that the sale of Kwality Walls in the Bars / Stick ice

cream segment was higher when compared to Amul. Since 24 % and 14 % retailers of

Kwality Walls were selling 25 % and 30 % of Bars / Stick ice cream respectively,

whereas 16 % and 2.7 % retailers of Amul were selling 25 % and 30 % of Bars / Stick ice

cream respectively. The reason being that Amul product ranges in this particular Bar /

Stick segment was less.

 Cone ice creams are most preferred ice creams by the children as well as

teenagers. The sale of Cone ice cream with regard to Amul and Kwality Walls are given

under in table 3.12

Table No – 3.12: Sale of Cone ice cream of Amul and Kwality Walls (in %)

Sales of Cone Ice cream

AMUL 5% 8% 10% 15% 20% 25% 30% Total

Super Markets 0.7 0 4 4.7 8.7 1.6 0.7 20.4

Bakery 0.7 0 8.7 14.7 16 6.7 2 48.8

Kirana/General stores 0 0 1.3 8 2 1.3 0 12.6

STD Booths 0 0 0 1.3 1.3 2 2 6.6

Ice cream parlor 0 0.7 0.7 1.3 0.7 0 0 3.4

Milk booths 0 0 0 1.3 0.7 0 0 2

Pan shop 0 0 0 0.7 0.7 0 0 1.4

Sweet shop 0 0 0 1.3 0.7 0 0 2

Medical hall 0 0 0 0.7 0.7 0 0 1.4

Canteen 0 0 0.7 0 0.7 0 0 1.4

Total 1.4 0.7 15.4 34 32.2 11.6 4.7 100

Sales of Cone Ice cream

Kwality Walls 5% 10% 15% 20% 25% 30% Total

Super Market 2 4 16 24 6 2 54

Kirana/General stores 0 0 8 10 2 0 20

Bakery 0 2 6 10 6 2 26

Total 2 6 30 44 14 4 100
Out of 100 % of the retailers who are selling Amul ice cream

 1.4 % of the retailers sell 5 % of Cone ice cream

 0.7 % of the retailers sell 8 % of Cone ice cream
 15.4 % of the retailers sell 10 % of Cone ice cream
 34 % of the retailers sell 15 % of Cone ice cream
 32.2 % of the retailers sell 20 % of Cone ice cream
 11.6 % of the retailers sell 25 % of Cone ice cream
 4.7 % of the retailers sell 30 % of Cone ice cream

Out of 100 % of the retailers who stock Kwality Walls

 2 % of the retailers sell 5 % of Cone ice cream

 6 % of the retailers sell 10 % of Cone ice cream
 30 % of the retailers sell 15 % of Cone ice cream
 44 % of the retailers sell 20 % of Cone ice cream
 14 % of the retailers sell 25 % of Cone ice cream
 4 % of the retailers sell 30 % of Cone ice cream

From the above table it can be concluded that the sale of Kwality Walls in the

Cone ice cream segment was higher when compared to Amul. Since 44 % and 14 %

retailers of Kwality Walls were selling 20 % and 25 % of Cone ice cream respectively.

Whereas 32 % and 12 % retailers of Amul were selling 20 % and 25 % of Cone ice

cream respectively. The reason being that Amul has entered recently in this Cone ice

cream segment, whereas Kwality Walls had already established and is the market leaders,

especially in this segment.

 GRAPH No-9: Segment wise sales of cup icecreams of Amul

Super Markets
1% 3% 1%1%
3% 2% 20% Bakery
7% Kirana/General stores
STD Booths
Ice cream parlor
Milk booths
13%
Pan shop
Sweet shop
49% Medical hall
Canteen

GRAPH No-10: Segment wise sales of cup icecreams of Kwality Walls

26%

Super Market
Kirana/General stores
54% Bakery

20%
 GRAPH No-11: Segment wise sales of Bricks / Flavours ice cream of Amul

Super Markets
Bakery
3% 1%1%
3%2%1% 20%
7% Kirana/General stores
STD Booths
Ice cream parlor

13% Milk booths

Pan shop
Sweet shop
49%
Medical hall
Canteen

GRAPH No-12: Segment wise sales of Bricks/Flavours ice cream of Kwality Walls

26%

Super Market
Kirana/General stores
Bakery
54%

20%
3.6 Retailers understanding about customer preference of Amul and
Kwality Walls ice cream.
The main features, which pursue the customer to prefer a particular brand of ice

creams, are quality, price, taste, flavour and offers given by the company. The following

table provides the information about the reasons for customer preference of Amul and

Kwality Walls ice creams.

Table No-3.13: Retailers understanding about customer preference of Amul and

Kwality Walls ice creams (in %)

Brand

Amul Kwality Walls

S.No Reasons Yes No Yes No

1 Quality 90 10 20 80

2 Price 56.7 43.3 6 94

3 Taste 68 32 38 62

4 Flavour 37.3 62.7 100 -

5 Offer 100 - - 100

About 90 % of the retailers felt that Amul was preferred by the consumers for its

better quality. Whereas only 20 % of the retailers of Kwality Walls felt that Kwality

Walls was preferred for its quality. Hence it can be said that Amul brand was preferred

for its quality, whereas customers of Kwality Walls preferred the brand not just relying

on the quality parameter.

 The price of the ice cream is also one of the main reasons for customer

preference. About 56.7 % of the Amul retailers felt that Amul brand was preferred by the

customers for its reasonable price. Whereas 94 % of the retailers of Kwality Walls felt

that the customers did not consider price as the only reason for preferring Kwality Walls.

Hence, it can be concluded that price parameter played relatively a better role in Amul

brand compared to Kwality Walls in deciding the consumer preference.

With regard to the table about 68 % of the retailers of Amul felt that Amul ice

creams were preferred by the customers for its better taste. Whereas only 38 % of the

retailers of Kwality Walls felt that Kwality Walls was preferred by the customers for its

taste. Hence, it can be said that Amul was preferred more for its taste by the customers

over Kwality Walls.

Flavour is the main component of ice cream to bring differentiation in ice cream

products. The study shows that 100 % of Kwality Walls’ retailers felt that flavour was the

main reason for preferring Kwality Walls by the customers. Whereas only 37.3 % of

Amul retailers felt that Amul was preferred by the customers for its better flavour. Hence,

the major difference found between both the brands was the availability of different

flavours of ice creams.

For boosting up the sales and fight the competitors in the market the commonly

used promotion tool is sales promotion, which gives special offers to the customer. The

study has shown that 100 % of the Amul retailers felt that Amul was preferred by the

customers for their offers. Whereas in contrast 100 % of Kwality Walls retailers felt that

offers hardly has any impact on the customer preference of Kwality Walls brand.
3.7 Retailers’ satisfaction with the quality of service rendered by the
distributors.
Distributors has to provide quality services such as timely supply of the products,

ensure all product range, good replacement policy of ice creams, regular salesmen visit to

the retail outlets and after sales service to all retail outlets in order to obtain effective

sales of the ice creams. The following table gives the information about the retailers’

satisfaction with the quality of service rendered by the distributors.

Table No-3.14: Retailers’ satisfaction with the quality of service rendered by the

distributors (in %)

Brand

Amul Kwality Walls

S.No Services Satisfied Dissatisfied Satisfied Dissatisfied

1 Timely supplies 96.7 3.3 70 30

2 Product range 58.6 41.4 74 26

3 Replacement policy 42.3 57.7 98 2

4 Salesman visit 86 14 100 -

5 After sales service 75.5 24.5 100 -

From the table it can be concluded that 96.7 % of Amul retailers were satisfied

with the timely supplies of the products by the distributor. Whereas only 70 % of the

Kwality Walls’ retailers said that they were satisfied with the timely supplies of the

product. The reason being that Amul has sufficient number of distributors to reach all

retailers at right time. Hence, it can be concluded that the Amul distribution network

ensures timely supply of ice cream to the retailers compared to Kwality Walls.
 Further about 58.6 % of Amul retailers were satisfied with the product range

supplied by the distributor. The reason being that many distributors keep the products,

which are in great demand by consumers. Whereas about 74 % Kwality Walls’ retailers

were satisfied with the product range supplied by the distributor. Hence it can be inferred

that Kwality Walls’ retailers were more satisfied with the product range offered by the

distributor when compared to Amul distributor.

Good replacement policy encourages the retailers to keep more products in their

retail outlets as it reduces the risk element. About 57.7 % of Amul respondents were not

satisfied with the distributor’s replacement policy, whereas 98 % of retailers of Kwality

Walls were satisfied. Hence, it can be concluded that Kwality Walls’ retailers were more

satisfied with the replacement policy when compared to Amul retailers. So Amul can

improve their replacement policy in order to encourage the retailers.

In distribution channel, salesman plays a key role between distributors and

retailers. Among the total number of Amul respondents, about 86 % of Amul retailers

were satisfied with the salesmen visit. Whereas 100 % of Kwality Walls respondents

were satisfied with the salesmen visit. Hence, it is clear that there is scope for Amul

brand to improve the contacts with retailers by making more salesmen visits.

The table also shows that nearly 52 % of Amul retailers were satisfied with the

after sales service, Whereas 100 % of Kwality Walls respondents were satisfied with after

sales service. So Amul distributors can improve their after sales service to the retailers.
3.8 Type of complaints with regard to ice creams of Amul and
Kwality Walls
The common complaints with regard to ice creams are with regard to packaging,

quality, availability and service as expressed by the retailers. The following table shows

the type of complaints with regard to Amul and Kwality Walls of ice cream.

Table No-3.15: Type of complaints with regard to ice creams of Amul and Kwality Walls

(in %)

Brand

S.No. Complaints Amul Kwality Walls

Yes No Yes No

1 Packaging 80 20 16 84

2 Quality - 100 - 100

3 Availability 49.3 50.7 8 92

4 Service 19.4 80.6 - 100

From the above table we can conclude that 80 % of the Amul retailers had more

problems with packaging compared to Kwality Walls (only 16 %). So packaging was a

major factor, which was causing a problem for the effective operation for the Amul

retailers. The packaging of Kwality Walls ice cream is more attractive and convenient

than the Amul ice creams.

Out of the total sample collected, 100 % of the Amul retailers as well as Kwality

Walls retailers had no quality complaints. So it can be concluded that the ice cream

quality in both Amul and Kwality Walls was well maintained during distribution of ice

cream.
 Almost 50 % of the retailers of Amul had problem of shortage in availability of

ice creams with the distributors; Whereas 92 % of Kwality Walls retailers did not have

any complaints with regard to availability of ice cream products.

Out of the total Amul retailers 19.4 % of the retailers had service complaints,

whereas retailers of Kwality Walls did not have any service complaints. So Amul can

improve services to their retailers.

3.9 Support from the company to the retailers of Amul and Kwality
Walls
Among ice cream retailers many of them are small investors. So they cannot

invest much money to attract the customers and thereby increase their sales. So

companies have to support their retailers in order to improve the sales of their products.

The following table provides the information about the support from the company to the

retailers of Amul and Kwality Walls.

Table No-3.16: Support from the company to the retailers of Amul and Kwality Walls

(in %)

Brand

S.No. Support Amul Kwality Walls

Yes No Yes No

1 New product offerings 19.3 80.7 80 20

2 Trade promotion 2 98 - 100

3 Consumer offers 100 - 56 44

4 POP (Point of Purchase) 30 70 94 6

5 Overall satisfaction 96 4 92 8
 From the table it can be seen that 80.7 % of Amul retailers were not satisfied with

the new product offers provided by the Amul, whereas 80 % of the retailers of Kwality

Walls were satisfied with the new product offered by the Kwality Walls. It indicates that

the new products in ice creams were launched by the Kwality Walls more frequently

compared with the Amul brand.

Almost there was no trade promotion support to the retailers by both the

companies. The reason being that the companies focus to promote their brand of ice

creams over trade promotion of retailers.

All the Amul retailers (100%) said that the Amul provides best consumer offers to

the customers as a support to them. Whereas only 56 % of Kwality Walls retailers said

that Kwality Walls provides best consumer offers to the customers. Hence, Amul has a

better consumer offers to support its retailers than the Kwality Walls.

Among the total number of Amul respondents 70 % of the retailers were

dissatisfied with POP (Point of Purchase) displays in their retail outlets, whereas 94 % of

the retailers of Kwality Walls satisfied with POP displays in their retail outlets. Hence,

Amul can be improved on its POP displays in their retail outlets as a support to the

retailers.

Above study indicates that 96 % of Amul retailers were satisfied with the

company support and also retailers of Kwality Walls expressed in similar way with

regard to overall satisfaction.

SUMMARY AND CONCLUSIONS
 CHAPTER - IV

SUMMARY AND CONCLUSIONS

Gujarat Cooperative Milk Marketing Federation (GCMMF), one of India’s

greatest success stories with its Amul brand, is now aiming at a 17 percent growth in

sales to Rs 3800 crores this fiscal against sales of Rs 3200 crores in the previous year.

Today Amul is a symbol of many things of high quality products sold at

reasonable prices. The genesis of a vast Co-operative network of the triumph of

indigenous technology, of the marketing savvy of a farmers’ organization, is of a proven

model for dairy development.

The brand loyalty and commitment of the wholesale dealers and retailers have

made it possible for the products to reach consumers in the remotest parts of our country.

The survey conducted provides with a clear picture of the ice cream segments

across brands. For the companies to succeed, they have to concentrate on the quality, the

reasonability of the price, the offers provided to the customers and the availability of the

flavours. In the competitive scenario the companies should focus in the production of the

product categories to gain competitive advantage over others.

The transportation cost and efforts of the distribution channel can be reduced by

increasing freezer storage capacities to the optimum levels based on demand of the ice

cream in their retail outlets.

 Customers prefer ice creams based on quality, price, taste, flavour and offers give

by the company. Amul ice creams were provided with good quality, taste and best offers

at reasonable price. But flavours in Amul ice creams were less compared to Kwality

Walls ice creams. So Amul can be improved ice creams with different varieties of

flavours.

Amul retailers were satisfied with the quality of services such as timely supplies

of ice creams, product range offered, salesman visit and after sales service rendered by

the distributor. But Amul retailers were dissatisfied with the replacement policy. So Amul

can be improved their replacement policy of ice creams in order to encourage their

retailers.

Amul retailers expressed dissatisfaction over availability of the products. It can be

overcome through effective implementation of distribution strategies. Amul ice creams

did not have any quality complaints but at the same time it should ensure better

packaging and improved service.

Amul brand could satisfy the consumer by giving good offers compared to their

competitors but at the same time Amul can improve support to the retailers through new

product offerings, trade promotion for retailers and POP displays in retail outlets.

The companies should try to understand the customer preferences of their

unearthed desires and place them into different product categories. Customer has to be

provided with better services in order to show loyalty towards the brand. Similarly,

distributors and retailers have to be maintained by providing them better service and

offers for promoting their sales in turn increasing the companies’ sales and turnover.
CONCLUSIONS:

 Distributors face a major problem of timely delivery of the products , especially

during the peak seasons

 Distributors also have problem of sales returns and delays in the replacement

policy for Amul brand

 Most of the distributors of Amul are quite satisfied with its services and they have

good relationship with retailers

 The retailers of Amul have problem with the product range, replacement policy

and availability of stock with distributor.

 Good demand and good quality are the major reasons for distributors and retailers

for promoting and opting for the brand Amul

 Good quality, good taste and best consumer offers are the major reasons for

customer preference of the brand Amul

 The distribution channel is not that much effective in Amul ice creams as

compared to Kwality Walls.

 Amul stand best in the consumer offers and is the prime motivation for the

retailers preferring the brand

 Amul range of ice creams does not satisfy the consumers with regard to flavours

when compared to the leading player, Kwality Walls.

 The distributors and retailers feel that the Amul consumer offers should continue.
SUGGESTIONS
 CHAPTER - V

SUGGESTIONS

 The Amul carrying and forwarding agencies(C&FA) if located in the city would

be convenient to the distributors

 The company can improve on its product range, replacement policy of damage

stock and availability of stock

 The availability of all product categories can be increased with the distributors

 Company can improve its margins for distributors and retailers

 The company can improve its support to the retailers with POP displays, gift

items and new product offerings to retailers

 It has been observed that most number of respondents is not aware of the

available flavours in the Amul brand. So advertisement should focus and highlight

the range of flavours

 Ice cream parlors and bakeries are the best outlets from where the customers buy

ice creams, there is a need to concentrate more number of varieties and use more

promotional activities

 The competitors are providing summer special outlets in the twin cities, so to face

the competition Amul can also provide the outlets in summer

 All these offering are no doubt welcome in the sweltering heat during summer.

But "With everyone on a health binge, it would be challenging for players to

increase consumption."
APPENDIX
 CHAPTER-VI

APPENDEX

Annexure-1

QUESTIONNAIRE TO THE RETAILER

Name of the Retailer:

Distributor:

Address:

Year of Establishment:

Approximate Business Turnover:

Turnover of Ice cream:

Since how many years are you in the business of selling Ice cream:------------

1) Please indicate the brands sold in your outlet

a) Amul b) Kwality Walls c) Scoops d) Vadilal e) Dinshaw

f) Others specify

2) Please indicate the ownership of the Ice cream freezer in your outlet

a) My own ice cream freezer b) Company owned freezer

c) My own refrigerator d) Company owned refrigerator

3) Please indicate the storage capacity of the freezer in your outlet

a) <100 lts b) 100-250 lts c) 251-400 lts d) >400 lts

4) Please indicate the brand wise sales (in%) in descending order

Brand Share in the outlet

a) ---------------------- ----------------------

b) ---------------------- ----------------------

5) If customer ask you which brand do you promote and why?

Brand Reasons

a) ----------------------- ---------------------------------

b) ----------------------- ---------------------------------

6) Please indicate segment wise sales

Brand Cups Bricks/Flavours Bars/Sticks Cones

7) Please rank brands sold in your outlet by customer preference and cite reasons

Brand Reason for preference (quality, price, taste, flavour etc.,)

a) -------------- -------------------------------------------------

b) -------------- -------------------------------------------------
8) Please rate the quality of services rendered by your distributor on the following

parameters

Brand 1:--------------------- (the leading brand in your outlet)

Attribute Satisfied Dissatisfied

Timely supplies

Product range

Replacement policy

Salesman visit

After sales service of

freezer

Brand 2: ---------------------------- (the next leading brand in your outlet)

Attribute Satisfied Dissatisfied

Timely supplies

Product range

Replacement policy

Salesman visit

After sales service of

freezer
9) Please indicate the type of complaints you frequently come across

Brand Packaging Quality Availability Service

10) Please rank the brands in terms of the margins and other facilities rendered

Brand Rank

1) --------------------- -----------------------

2) --------------------- -----------------------

11) Please list down the support you get from the company in terms of

Support Amul Kwality Walls

New product offerings

Trade promotions

Consumer offers

POP displays
12) Please indicate your overall satisfaction with the distribution of the companies

mentioned below

Brand Satisfied Dissatisfied

Amul

Kwality Walls

13) Please suggest a few measures aimed at improving the share of AMUL ice creams in

general and in your retail outlet in particular:------------------------------------------------------

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 Annexure-2

QUESTIONNAIRE TO THE DISTRIBUTOR

Name of the distributor :

Year of establishment :

Address :

Turnover (Rs Per annum) :

No. of salespersons :

No. of Vehicles holding :

Nature of firm : Proprietorship / Partnership / Other (please specify)

1) Profit or Net margin you get from the product Amul ice cream (in %)

 0%-2%

 3%-6%

 7%-9%

 10 % - 12 %

 13 % & above

2) What is the credit period that you avail?

 1 – 2 Months

 3 – 4 Months

 5 – 6 Months

 7 and above
3) Why did you choose the brand for distribution?

 Good demand

 Attractive margins

 Incentive schemes

 Good quality

 Others (Please specify-----------------------------------------------)

4) What are the margins you are getting?

 0%-4%

 5%–8%

 9 % - 12 %

 13 % and above

5) What is the number of outlets do you service?

 50 or below

 51 – 100

 101 –150

 151 – 250

 251 or above
 6) Comment the satisfaction level on Amul’s distribution network and services

Attribute Satisfied Dissatisfied

Timely supplies

Product range

Replacement

policy

Salesman visit /

cooperation

After sales service

of freezer

Overall support

7) What are the most frequently faced problems in the Amul Ice creams?

(You can tick more than one)

 Packaging

 Quality

 Availability of stock

 Others (Please specify------------------------------)

8) Do you have any problems with your area retailers? (Yes / No),

if Yes, please specify

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9) Do you have any problems with /Amul’s distribution network? (Yes / No)

if Yes, What are the problems?

 Delivery

 After sales service

 Payments / Payment modes

 Sales returns

 Others (Please specify-------------------------------)

10) Are you facing any problem from the sales person? (Yes / No)

if Yes, please specify

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11) Please suggest a few measures aimed at improving the share of AMUL ice creams in

general:--------------------------------------------------------------------------------------------------

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