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SUMMER INTERNSHIP

REPORT

Study of market and implementation of


marketing activities for Ananda dairy

Done at

Ananda Dairy Pvt. Ltd.

by

Avinash Jha

MBA17H01

Under the guidance of

Mr. Rajesh Maurya

Zonal Officer
Summer Internship Report, Pune Institute of Business Management

ACKNOWLEDGMENT
Apart from the efforts of mine, the success of any project depends largely on
the encouragement and guidelines of others. I take this opportunity to
express my gratitude to all those people who have been instrumental in the
successful completion of the project. I would like to show my greatest
appreciation to my mentor Pro. Sonal Parmer and Mr. Rajesh Maurya. I
can’t say thank you enough for the tremendous support and help during
those crucial times. I felt motivated and encouraged to do my best every
time I meet them, without their guidance this project would have not been
materialized.
The guidance and support received from all the members’ who contributed
and who are contributing to this project, was vital for the success of the
project. I am grateful for their constant support and help.

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COMPANY CERTIFICATE

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Contents
Acknowledgment ............................................................................................................................ 1
Company Certificate ...................................................................................................................... 2
Project Synopsis ............................................................................................................................. 4
About the Sector ............................................................................................................................. 5
About the Company ....................................................................................................................... 8
Project Methodology ..................................................................................................................... 16
Action Plan ................................................................................................................................... 17
Observations ................................................................................................................................. 33
Learning Outcome ........................................................................................................................ 36
References ..................................................................................................................................... 38

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PROJECT SYNOPSIS

Study of market and


Project Title implementation of marketing
activities for Ananda dairy
Company Name Ananda dairy Pvt. Ltd.

Student Name Avinash jha

Student Roll No MBA17H01

External Project Guide Name Mr. Rajesh Maurya


External Project Guide
Designation Zonal Officer
Internal (PIBM) Project Guide
Prof. Sonal Parmer
Name
Duration of project From 15th May To 15th July

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ABOUT THE SECTOR


1.1 Market Size
 Fast moving consumer goods (FMCG) is the 4th largest sector in the Indian economy.
There are three main segments in the sector – food and beverages which accounts for 19
per cent of the sector, healthcare which accounts for 31 per cent and household and
personal care which accounts for the remaining 50 per cent.

 The FMCG sector has grown from US$ 31.6 billion in 2011 to US$ 49 billion in 2016.
The sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of
20.6 per cent to reach US$ 103.7 billion by 2020.

 Accounting for a revenue share of around 60 per cent, rural segment is the largest
contributor to the overall revenue generated by the FMCG sector in India and recorded a
market size of around US$ 29.4 billion in 2016 and is expected to grow to US$ 220
billion in 2025. Demand for quality goods and services have been going up in rural areas
of India, on the back of improved distribution channels of manufacturing and FMCG
companies. Semi-urban and urban segments accounted for a revenue share of 40 per cent
in the overall revenues recorded by FMCG sector in India.

 FMCG Companies are looking to invest in energy efficient plants to benefit the society
and loAnandar costs in the long term.

 Growing awareness, easier access, and changing lifestyles are the key growth drivers for
the consumer market. The Government of India's policies and regulatory frameworks
such as GST and demonetization are expected to drive demand, both in the rural and
urban areas, and economic growth in a structured manner in the long term and improve
performance of companies within the sector.

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FMCG

Household and Hare Care- 31% Food &


Personal Care- 50% Beverages- 19%

Health beverages, cereals, OTC products and Oral care, hair care, skin
bakery products, chocolates, ethical care, cosmetics /
ice cream, tea/coffee/soft deodorants, perfumes,
drinks, processed fruits and feminine hygiene and
vegetables, dairy products, paper products, Fabric
and branded flour wash, household cleaners

1.2 Growth and De-growth of the Sector

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The urban segment is the largest contributor to the sector, Urban/rural industry breakup (2015)
accounting for around 65 per cent of total revenue and had a market size of around USD 30.745
billion in 2015-16. Semi-urban and rural segments are growing at a rapid pace; they currently
account for 35 per cent of revenues. In the last few years, the FMCG market has grown at a faster
pace in rural India compared with urban India. FMCG products account for 50 per cent of total
rural spending.

1.3 Government Initiatives


 The government is working towards bringing retail, FMCG and e-commerce within a
single policy framework, which will address all the concerns of industry and consumers,
NITI Aayog CEO Amitabh Kant has said. Kant heads a high level committee that will
review e-commerce rules including those FDI norms for the sector.

 Speaking at FICCI's annual retail, FMCG and ecommerce convention Kant said, "To
provide a level playing field to stakeholders, there is a move in the government to
harmonies these varied policies." Kant said that while domestic entrepreneurs are being
encouraged in the country, foreign players will boost healthy competition in the sector

1.4 Road Ahead


 According to a CII-BCG white paper on the FMCG sector, growth in disposable income,
increased urbanisation, and the increase in the number of nuclear households are driving
the growth of the Indian branded FMCG sector, which is pegged at about $65 billion and
has been growing at a robust pace.
 Abheek Singhi, Senior Partner and Director, the Boston Consulting Group, said nearly
two-thirds of households in the country are nuclear households and at the same family
income size, nuclear families spend more on FMCG than joint families.

 “The FMCG sector has been delivering far superior returns over the past few years
compared to most other sectors. Anandaprojections indicate that the sector will continue
to grow by 13-14 per cent in the next 5-10 years and is likely to become a $220-240
billion industry by 2025,”

 “The FMCG sector has been delivering far superior returns over the past few years
compared to most other sectors. Anandaprojections indicate that the sector will continue
to grow by 13-14 per cent in the next 5-10 years and is likely to become a $220-240
billion industry by 2025,” Singhi added.

 The CII-BCG white paper will be unveiled on Monday at the CII National FMCG
summit, which will see top CEOs deliberating on the theme ‘Re-imagining FMCG in
India’.

 Shiv Shiva Kumar, Chairman, CII National Committee on FMCG 2015-16, & Chairman
and CEO, PepsiCo India, said the FMCG sector is already a key driving force behind
‘Make in India’ and a bedrock of talent.

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2 ABOUT THE COMPANY

2.1 History

It all began from Ananda Siyana factory in Bulandshahr in 1989 when the company was set up by
Ananda visionary Chairman Radhey Shyam Dixit, during the Phase-III of Operation Flood, which
is also known as the White Revolution of India. The success of Operation Flood is also known to
make India the largest milk producing country in the world.

Ananda started its beginning from Siyana Factory on 15th Nov 1989 and Birth Date of "Ananda
Group" and incorporation of Ananda Agro Retail Business came on 8th July 2003.

Incorporation Date of Ananda Dairy Foods P. Ltd came on 27th July 2004 and in FY 2007-2008
Ananda achieved a turnover of 100 Cr.

After the Birth of "Dairy India" Brand and Takeover of Dairy India P. Ltd happened in the year
2008.

Achieved 200 Cr Turnover in FY 2009-10 and 300 Cr in 2011-12. Ananda launched Ananda
Express Paneer Salesforce in Delhi/NCR on 1st June 2012. The Birth of "G+" Brand, happened
especially for Retail Business on 10th Sept 2012.

Ananda launched product "T20", especially for Tea segment in Sept 2012 and in 2014 launch of
Ananda Express in Lucknow City. In FY 2013-14 Ananda achieved the turnover of 700 Cr.

Ananda have reached a new milestone in 2017 by manufacturing and supplying over 50 products
and Ananda all-monitored milk-processing centres have increased their capacity to handle 16 lakh
litres of milk per day. With over 10 lakh liters per day milk collected from more than 2.5 lakh
farmers in the excess of 5000 village societies, Ananda cater to the dairy needs of Ananda
increasing clients’ base. Ananda have 32 chilling centers that ensure that milk is kept safe for a
long time before transporting it to the nearest processing Centre.

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Over the years Ananda have launched an ever-growing range of initiatives to source sustainable
supplies of fresh, pure and nutritious products ‘directly from farm’ - a sentiment close to Ananda
Group's heart.

2.2 Research & Development

Ananda started its Innovative R&D Centre in 2010 with most technically sound dairy scientist at
Ananda Siyana Plant. Ananda team is master in new product development as per the new
requirement of Indian consumer.
Ananda R&D Team is continually engaged into development of good quality products and also in
innovative packaging. As Ananda are committed to provide natural, nutritious dairy & food
products with international quality, therefore Ananda only use good quality of raw material in
order to building a healthy nation. The Centre is fully equipped with state of the art modern
laboratory and sophisticated lab scale processing equipment. Product Packaging innovations are
also taken up at Ananda R&D Centre with various packaging materials and those are tested for
various parameters which include Tensile and Seal Strength, Bursting Strength, Automated Leak
Detection, Compression Strength etc.

Product Development Process


Ananda are developing Ananda quality product only after market survey of end consumer
preferences with the aim of providing healthy choices at reasonable price. This has also enabled
improvising the existing product packaging and taste to constantly delight Ananda consumers.
New Product Development process includes new Concept Development, Lab trials, Shelf life
Studies, Consumer Research. Packaging Material Development is also carried out at Ananda
R&D Centre. Ananda select quality ingredients from reputed manufacturers across the country
meeting all Quality and Food Safety requirements.

2.3 Mission and Vision


MISSION STATEMENT - 2020
“Ananda shall develop, processing, marketing and retail network including 1500 Ananda COCO
Stores so that Ananda can procure 16 Lakh Liter milk per day from a million milk producers
directly, and market fresh milk and quality value — added products so as to achieve a turnover of
INR 3230 Cr.“

VISION STATEMENT
“To be a leader in dairy and food industry by always delighting consumers and meaningfully
serving all stakeholders, through continuous investment in quality manpower, product innovation
& sustainable process optimization ”

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Type Co-operative

Founded Radhey Shyam Dixit in 1989

Industry Dairy/FMCG

Headquarter Bulandshahr, Uttar Pradesh, India

Key people Radhey Shyam Dixit

Revenue 1800 cr.

Parent Gopaljee

Website www.ananda.in

2.4 Ananda products


Milk

Paneer

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Ghee

Rabri

Dahi

Lassi

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Yogurt

Flavoured
Milk

Honey
Drinks

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Whey
Drinks

Butter

Cookies-
Rusk-

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Ananda
Tea

Sweets

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Chips

Ananda
Chaach

More
Products

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3 PROJECT METHODOLOGY
3.1 Pre-Sales and Post Sales
For the pre sales process the methodology was to do the research about the trends of dairy
product usage and dairy penetration in India. Secondary data was collected from the internet
using google trends. With google trends we come to know about the search behavior regarding
dairy products buying behavior.

For post sales process methodology was to do research about consumer perception towards
Ananda Dairy products. For this primary data was collected from customers who visited the
DMRC outlets.

3.2 Distribution system


For distribution system we use to visit DMRC outlets in morning and understanding the delivery
system of products. Different products are delivered at different time according to their demand
expiry and availability

3.3 Sales promotion


At present in this competitive business world the milk industry has more brands in the battle field
facing stiff competition in every segment’s targeted. Even brand Ananda is also facing stiff
competition to retain brand in the market. There are many players in the market in this industry
and their own promotional strategies where is to inducing the different consumer segment. Hence
due to this it is crucial to analyze the promotional strategies of Ananda and its competitors to
penetrate the targeted market. In this juncture it has to identify its competitors in this market by
bringing brand awareness in the minds of consumers and also it has to come up with the updated
advertising and sales promotional strategies. Through this study, the main problem that it studies
during this project work is to find out the effectiveness of the reach of different sales promotion
techniques to the consumers and the awareness of brand among the consumers of south west
Delhi.

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4 ACTION PLAN
4.1 Pre-Sales and Post Sales

4.1.1 Pre sales


Indian dairy industry can be classified into commodity dairy products like:

1) Raw milk;

2) Skimmed milk powders (SMP); and

3) Dairy whiteners (DW)

Which are low margin products. Further, milk products like curd, buttermilk, ghee, butter, ice
cream and paneer can be classified as traditional VADPs which have a huge unorganized
market and driven by increasing nuclearisation of families. With improving macroeconomic
trends like rising consumerism, India is witnessing increasing consumption of emerging VADP
like UHT milk, cheese, flavored milk, yogurt, lassi, whey, etc. These are hugely
underpenetrated categories

Currently, due to conventional culture, commodity dairy products like liquid milk and SMP
contribute ~66% of total dairy industry, followed by traditional dairy products (ghee, paneer,
curd, buttermilk, butter and ice‐cream) forming ~32%, and emerging VADP (cheese, whey,
UHT, flavored milk, yogurt) accounting for mere ~2% of market. Ergo, there is humungous
growth opportunity in traditional milk products like ghee, curd and paneer due to large industry
size and unorganised presence, which we expect will lead to strong 20% CAGR in organised
players in these segments over 2016‐2020.

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Evolution of key categories ‐ Consumption of VADP on the rise

Humungous opportunity for organised segment led by high market growth, low penetration of
VADP

4.1.2 Competitive edge of players


Strong procurement infrastructure, key to success: Companies with infrastructure for direct
milk procurement from farmers enjoy huge competitive edge as it assures steady milk supply and
consistency in milk quality at relatively lower prices..

Channel mix ‐ Strong branding and higher B2C sales: Heritage and Hatsun have a strong
procurement & distribution network which has led to creation of a strong B2C franchise (>90%
of sales) for them. Rising consumption of VADP is seeing players expand their B2C mix.
However, there are certain VADP like cheese which is consumed ~50% out of home. Also,
categories like butter, paneer and SMP are institutional in nature. Parag is strong in VADP due to
its prowess in brand building in VADP and B2C sales account for ~67% of its mix.

Strong branding to scale the value curve: As competition intensifies and companies move up
the value curve to VADP, it has become extremely critical to spruce up brand building activities.
Examples being national brands like Gowardhan ghee ‐ fetches better realisations and commands
brand premium. Parag offers an entire range of cheese products and variants leveraging strength
of its core Go cheese brand, while also devising a premiumisation strategy.

4.1.3 Post sales

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Research Objectives -

 To determine and measure the satisfaction level of Ananda products among the customers.

 To Study and measure the availability of stock on Ananda Coco stores as well as DMRC
stores.

Sample Size & Sample Unit:

The sample size consists of 150 respondents 30 store staff respondents from Delhi/NCR region
for knowing the satisfaction level of customers as well as direct sellers. The sample of 160
respondents was taken to know the satisfaction level towards direct selling products.

Sample Selection Procedure:

Multistage sample selection technique is used. At first stage, I have used random sampling
technique to the places from where I have to select randomly calls to the given database because
it was not possible to take the interviews of every direct seller at a time because of broad area of
Delhi/NCR, at second stage, we used convenience sampling technique to take responses from the
respondent because respondents are not easily available at the time of meeting.QUESTIONNAIRE
OF THE RESEARCH

1. NAME OF THE RESPONDENT - ____________________________

2. AGE-

3. GENDER-

A LESS THAN 18 YEARS

18 TO 30 YEARS
B

30 TO 50 YEARS
C

MORE THAN 50
D
YEARS

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3. OCCUPATION

Professional Housewife

Student Businessman

Others

4. From where do you purchase Milk?

1 Dairy

2 Kirana store

3 Home Delivery

4 Mall

5 Any other place

5. Which milk do you Purchase?

Cow Buffalo

6. Which milk brand you are purchasing?

Amul Ananda

Mother Dairy Others

7. How do you appraise attributes given below to milk? (Tick appropriate)

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FACTOR/SCALE ALWAYS MOSTLY NEUTRAL RARELY NEVER

I see nutrient content


while buying milk

I see fat content while


buying milk

I consider taste
important while
buying milk

I consider quality of
milk while buying

I consider complete
label info (e.g. Expiry
date)

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8. Are you satisfied with the price of all the Ananda products?

Most satisfied

Satisfied

Not satisfied nor


dissatisfied

Unsatisfied

9. If there is competitor available in the same metro station, would your customer
first preference be the Ananda 's product?

Yes No

Depends on other factors

10. Which one is the Ananda product that satisfied the most?

Chaas Rabri

Curd Sweets

Lassi Others

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We take the 150 respondents as the sample size for this store. The following
questions we asked from them.

Q. 1 how customer are satisfied with Ananda Products in terms of quality.

Satisfaction of customer towards various products


120%
100%
80%
60%
40%
20%
0%
Chaas Rabri Milk Paneer Milk Lassi Ghee Paneer
(Flavored) jalebi

SATISFIED NOT SATISFIED NEITHER SATISFIED NOR DISS.

The reason for the 20% respondents who are not satisfied and neither satisfied nor dissatisfied
with the Ananda milk is the brand value of the Amul and the Psychology effect that Amul as a
brand is better than others.

The reason the respondents is neither satisfied nor satisfied with the Rabri, paneer jalebi and other
sweet products is the Quantity of the product. Respondents want the more in quantity rather than
the existing Qty.

Q.2 The next Question is Why customer won’t purchase the other products from the
Ananda store other than purchased product?

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The most of the respondents don’t want to purchase other products because there is no
requirement on that time.

Not using product as health issues like diabetic customer not purchasing sweet product.

Age factor also one of the reason , if we segment on the basis of age student/ teenager
purchase only limited item , age about greater than 20 purchases more.

Q3 The next question is How would you like to rate the Behavior of the store person.

store incharge behaviour


100%

80% 90%

60%

40%

20%
10%
0%
Excellent Very Good Average Poor

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The store persons were the well-groomed & proper maintain the dignity of Ananda store. But at
the time of change in shift, there were some conflicts between them in respect to handover of
stock.

4.1.4 Distribution system

Across the India Ananda want their consumers to think 'Gopaljee Ananda' First when they think
of dairy products. Our Vision: Ananda aim to positively contribute in building a healthy and
happy nation by providing customers with international quality natural and nutritious dairy &
food product at affordable price, through innovative product process, while taking care of human
culture and environment. Our Mission: Achieving growth and continual improvement through
breakthrough innovation, teamwork, trust & excellence without compromising on values of
Quality, Honesty & Integrity. RSD Group will also strive to achieve highest sale in the market of
operation and establish own retail network to directly touch lives of consumers with range of new
products, apart from the regular dairy product. In the next few years the group shall strive to
achieve: Turnover 3230 Cr. Sales 8 Lac Liter/ day Farmer Network 250,000 Farmers.

Delivery of products

Initially we have to study delivery system of products, how parties are delivering the stock, how
store incharge take stock from delivery incharge.

Process

There are different warehouses in Delhi/NCR region so every warehouses have 30 to 32 shops
under them. There are different delivery time for different products for example ambient product
deliver in morning and non-ambient products are deliver in afternoon. Other items like patties
snacks and sweets has different delivery system these products are not deliver daily only
delivered on demand basis when necessary.

At morning 5 to 10 ambient products are delivered. Ambient products are delivered in non-
chilling truck so products has to be delivered in morning time and once a day.

Trucks which deliver the products are contacts basis as Ananda doesn’t have their own
transportation system for ambient products.

Non ambient products are deliver every alternate day or on demand basis. These products are not
stored in warehouses and directly distributed to shops directly and these trucks are also on
contract basis.

Demands are done through POS machine Every SI is require to demand through POS machine
before 10 A.M in morning and all responsibility lies with SI to complete the process.

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POS software for demanding and billing products

In above figure shows that how orders are placed by store incharege. These order are received in
corporate office and according to requirement information are conveyed to distribution center.
After that distribution center prepare invoice for store incharge and transporter, next day products
are handed over to transporter and both copy of invoice. After that transporter reach at each shop
and deliver the products and give invoice to shopkeeper and take SI signature on invoice which
transported have.

In above process one more responsibility that SI entitled is that they have to give money which
earn day before to transporter and transported has to deposit in to distribution center and then
distribution center to account department which is in head office .

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Distribution Chain of Ananda

FARMERS

Village Cooperative Village Cooperative


societies (with chilling societies (without chilling
units) units)

Milk Processing units & Chilling Plants


Warehouses

Distributor Warehouses

Retailers DMRC Stores COCO Stores

CONSUMERS

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4.1.5 Sales promotion


Ananda, a leading dairy and dairy product manufacturer, unveiled 200 new company outlets in
Delhi and the National Capital Region (NCR). With the commitment to provide its customers
with quality dairy products at an affordable price and closer proximity, the company has made an
investment of over 10 crore to make this record-breaking single-day store launch event
successful. On the occasion of World Milk Day, the company reiterated its vision to give its
valuable consumers direct access to a wide variety of nutritious and pure milk and milk products.

With its focused approach towards rapid expansion, Ananda is all set to chalk out its strategy to
eye a bigger piece of the North Indian market. The company envisions meeting its target of
launching over 500 company outlets whilst achieving a projected turnover of Rs 1,500 crore by
the end of financial year (FY) 2018.

“With the inauguration of 200 company outlets, Ananda breaking their previous record of
launching 105 Ananda outlets in a single day. On achieving this milestone, we are delighted to
make available our diverse product range, at a closer access to our consumers.

To celebrate the successful launch, the company organised the Ananda Utsav, at which a variety
of discounts were offered on their wide range of nutritious products. The consumers availed a
500ml pack of milk free on every purchase of Supreem Milk or Ananda Toned Milk and a 85g
pack of curd free with every purchase of 200g of curd.

Following these exciting offers, the company will additionally offer a free bottle of flavoured
Ananda Milk with Ananda Ghee, extra 200ml on every one litre of toned milk and a pack of 85g
of curd with every 400g of Ananda curd between June 5 and 24, 2018.

With this massive single-day launch, Ananda is aiming to give its consumers a holistic
experience, by opening up the company’s entire fresh and wide dairy produce range, including
confectionery and bakery items for them to purchase.

For availing the offer customer has to register on their portal after that customer are provided by a
message which contain coupon code. At time of purchase customer will show the coupons to the
SI and avail the offer. Once customer avail that offer he got another coupon code via and whole
process will go till offer valid.

In this extensive Ananda we are require to do certain task for company which contains some do’s
and don’ts during Ananda utsav.

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OBSERVATIONS

We can see that the chaas & Rabri almost covered the 73% of the total percentage of the products.
When we asked the respondents that what is the reason to give the high rate to chaas & rabri then
they said that the condiment used in the chaas & the quality of the rabri in term of Originality make
their first choice among others.

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When we asked respondents, if there is any competitor such as Mother dairy or Amul available nearby
then what would be your first preference for purchasing the products. The 50% of the respondents
preferred the Ananda as their first choice which means that these 50% customers are the brand loyal
customers of the Ananda.

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I asked the respondents about the product packaging & safety. The 36% of the customers is
satisfied with the existing packaging. They are strongly satisfied with the packaging of Ghee
& flavored milk.

IIn one hand, customer is regularly consuming the Ananda low price products such as lassi,
chaas & also comparing it with other brands which means that in a short span of time Ananda
is giving the tough competition to the other brands such as Amul.

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LEARNING OUTCOME
It is very important aspect to learn something by everyday activities. Ananda provided me the
platform there I get knowledgeable information which help me to prepare this report. With the
passage of everyday I added many information such as learnings in my dictionary. Some of the
learnings are as follows: -

 How the offer influences the customer to purchase more products as well as quantity, we
learned it from the Kohalt Enclave DMRC store where the Ananda opened their new
store & provide some exclusive offers to the customers in which the Ghee was available
at Rs 350 instead of Rs 450. It also shows that how Ananda is penetrating market

 Visual Merchandising- The learning objective is that how the visual merchandising
enhances the sales of the products & also how the low selling product became the
moderate selling
products

 Promotion- Another learning objective is that how the effective promotion can enhance
the sale of the products. The advertisement & enrollment of the customer played an
important role in the new COCO stores.

 Distribution: - learning objective came to know the distribution pattern on the stores
which starts from the manufacturing unit & then distribute into the area wise. Hence
distribution of Ananda is different from other brands like Amul, mother dairy and its
more effective as there is never non availability of products in store

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 Consumer buying behavior– The learning objective is came to know the buying
behavior of customer that what factors affect the buying behavior of the customer. These
factors such as Quality, Price, Staff behavior, packaging etc. which ultimately affect the
purchase. It can affect the sale in the both aspect which may be increase or decrease.

Study of market and implementation of marketing activities for Ananda dairy,


Ananda dairy Pvt. Ltd. 37
Summer Internship Report, Pune Institute of Business Management

REFERENCES
www.ananda.in

https://www.ibef.org

https://www.edelweiss.in/research

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