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Synopsis for Research

“ A study on effectiveness of Training and Development”


With reference to Amul India Pvt.Ltd.

Dissertation submitted in partial fulfillment of the requirement for


The Award Degree of
MASTER OF BUSINESS ADMINISTRATION
Of
BANGALORE UNIVERSITY

Submitted
By
Student name
Reg. No.

Under the Guidance of


Ms. Rabina
Assistant professor

AVK INSTITUTE OF MANAGEMENT


INTRODUCTION
In today’s competitive world while entering in the market it is very necessary to have good
knowledge of the potential of a particular market. The information regarding the activities of
competitor’s existing in the market so that we can plan our each activity according to that. It is
also necessary to retain the existing customers apart from attracting the new customers.
The dairy industries companies run mainly on the factors such as availability, service
frequency, affordability, taste and marketing. Availability is plays a vital role because
purchasing power is depend upon availability of that product, in case distributors and retailers
service matter a lot. Retailing includes all the activity in selling goods or service directly to the
customers or personal nonbusiness use .A retailer or retail store is any business enterprises
whose sales volume comes primarily from retailing.
Retailers are the part of milk marketing channels and perform the work of moving goods from
producers to the customers. It overcomes the time, place and possession gap that separates goods
and service from those who needs or wants them. Retailers as member of marketing channel
perform a number of key functions. Some functions (physical, title, promotion) constitute a
forward flow of activity from the company to the customers; other functions (ordering and
payment) constitute a backward flow from customers to the company. Still others (information,
negotiation, finance and risk taking) in both directions.
The project delves into the workings from the distribution aspect of an FMCG organization, in
detail. AMUL, being an FMCG company, attaches a lot of significance to the distribution aspect of
its business. The distribution channel of AMUL holds a lot of potential in affecting the demand or
sales of AMUL products through delivery on time, delivery of variety of products, the retailer-
friendliness of the policies being set by the distributors and equitable distribution of products to all
the retail outlets in a particular region, to name a few.
So, In order to plan retail coverage we map out the positions of Amul outlets, Amul parlors, and
competitor’s outlets. This project was carried out in Pune city. For analyzing and presenting
information that is tied to geographical location, we divided the city in different wards. By
analyzing geographical representation and sales data with spatial distribution Amul outlets,
competitor’s outlets and the density of others in an area, we identify unexplored area and plan
location outlets to increase its market penetration. Using such research we can ascertain the quality
and depth of retail penetration in specific area.
India’s dairy sector is expected to triple its production in the next 10 years in veiw of expanding
potential for export to Europe and the West. Morever with WTO regulations expected to
come into force in coming years all the develope countries which are amoung big exporters
today would have to withdraw the support and subsidy to their domestic milk product sector.
Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents,
compared with the US’ 63 cent. Also to take advantage of this lowest cost of milk production
and increasing production in yhe country multinational companies are planning to expand their
activities here. Some of those milk
producers have already obtained quality standard certificates from the authorities. This will help
them in marketing their products in foreign countries in processed form.
The urban market for milk products is expected to grow at an accelerated pace of around 33%
per annum to around Rs.83, 500 crores by year 2010. This growth is going to come from the
greater emphasis on the processed food sector and also by increase in the conversation of milk
into milk products. By 2010, the value of Indian dairy produce is expected to be Rs 10, 00,000
million. Presently the market is valued at around Rs7, 00,000mn.
COMPANY PROFILE
In the year 1946 the first milk union was established. This union was started with 250 liters of
milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the
brand name AMUL in 1955.
The brand name Amul means “AMULYA”. This word derived form the Sanskrit word
“AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the
brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul
Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul
Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food
brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things
like of the 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 (Generally known as “ANAND PATTERN”).
Statement of the Problem:

“MARKET ANALYSIS & SALES DEVELOPMENT OF AMUL MILK IN PUNE CITY”


It helps to study all activities which can be used to influence large number of customers so as
to increase the sales of the Amul milk effectively”.

OBJECTIVE OF THE STUDY

A. Primary Objective

1. To find size of retail network of Amul Taaza and Amul Gold in specific areas of Pune city.

 To find the problems faced by retailers in selling and storing.


 To collect the information about the competitors.

B. Secondary Objective

1. To organize sales promotional activities to improve milk selling.

2. To generate and secure consumer awareness.

Scope of the study

It gives information about the size of the retail network.


It gives information about the services given by distributor to their retailer.
It gives information about the competitors’ products.
It will serve consumer in better manner.
It provides suggestions to the company to improve their products sales.
It gives information about the sales promotion activities to improve the milk sale

Research Methodology:
The Primary objective of study was to find size of retail network of Amul Taaza and Amul Gold in
specific areas of Pune city. In the study my intention was go through the retail network of Amul dairy
milk to know retailers view about supply chain of Amul dairy milk, to know the complaints of Amul
dairy milk and to find the suggestions from retailers for more penetration of
The research was conducted from 8th June, to 8th June 2017 . The research include meetings
with the retailers, consumers and dealers. It included preparation of the questionnaire to be
answered by above people for knowing the competitive position of Amul in the milk market. The
views of the above parties were recorded in the research as per the questionnaire set by us.

Research type was descriptive. The research was done through retailers. I have collected the primary
data through questionnaire which was filled by retailers, customers. Questions were both open and
close ended. The secondary data was collected from website www.amul.com.
Research Approach:

The objective was to know the competitive position of Amul in the milk market thus in order to
successfully conduct the research the unbiased opinion of the above parties was desirable. Thus
we conducted the research as the representative of Amul company and sometimes the
representatives of the other company like Chitale or Katraj in order to have an unbiased opinion
of the concerned persons and it worked to achieve our goal.

Research Instrument:

The research instrument was the structured questionnaire formulated for the respondents. The
Questionnaire was different for the retailers and dealers and for the consumers there was a different
set of questionnaire. There were also the area maps.

Types of Question:

The second important aspect in the designing a question is to decide which types of question are to
be used. Question can be classified in various ways.
Questionnaire contains following type information-
1. Open-ended question

2. Dichotomous question

3. Multiple-choice Question

Sampling Design
Sampling done is nonprobability sampling. The type of sampling method was Judgment sampling.
Phrasing of Question:

In questionnaire, I try to phrase the question in logical way. For example I arrange question in
sequence as personal information, awareness data, usage data, and finally related to reason and
satisfaction.
Sample Size:
The sample size was as follows
SR.NO. RESPONDENT TOTAL NUMBER
1 RETAILERS 169
2 CUSTOMER 95
3 DISTRIBUTOR 4

Sampling Technique:
A stratified sampling technique was used. A different Stratum for different type of respondent within
every stratum the respondents was selected as per convenience basis.
LITERATURE REVIEW

Amul is one of the most successful Indian business firm. It provides various milk
products in which its main brand product Amul Butter is also present. Amul begins
with just little group of milk producing villagers and now become largest milk
producing cooperative society in India. It had started with two village cooperatives
with 250 liters milk producing capacity and now it collects daily a 6.5 million
(average) of milk from a very large no of Indian villages. It has become a hope for
poor villagers who were exploiting by middlemen before the origin of Amul or Gujarat
milk marketing federation or Kaira union. By originated Amul got its first chairman
Shri Tribhuvandas Patel who through his integrity had favor of villagers and
understands the needs of cooperative society. Through their interpersonal faith and
cooperation Amul got this success history besides facing various difficulties.

Gujarat Milk Marketing Federation is a cooperative society. It done a very good


job in milk marketing, making way for poor villagers earnings. It not only provides
effective returns to the farmers but also take cares of customers interests. It serves for
customer on the basis of Indian ethics. They provide milk of better nutrients, better
quality products regularly and help in meeting the country’s need of daily milk
requirements. Some of the articles on Amul are as follows:-

According to Mr Khanna,(2012) an AMUL director ‘with special assignments’ – as his business


card says – the milk supply to his co-operative is increasing all the time. In the 2003/04 financial
year, the milk collection was up to 5.1 million litres per day, a rise of some 15.2%. By contrast,
the co-operative’s turnover rose by just 1.4% in the financial year 2004/05, bringing it to INR
29.22 billion or EUR 584 million. This growth is lower than expected and due, believes Khanna,
to the reduced milk supply in the latter months of 2004 and the poor increase in the price of basic
products in the early months of 2005.

From what Khanna is saying, it is evident that AMUL is a co-operative operation without equal.
The 2.4 million members/ dairy farmers in the state of Gujarat are grouped into 11,615 village co-
operatives equipped with both testing equipment and a milk cooling tank. Some of the
unpasteurised milk is sold to the villagers. The rest is transported by milk tankers twice a day to
the 12 district Milk Unions in the state. These Milk Unions process the milk by using the services
of 24 processing companies. The output of dairy products reflects the order submitted by the state’s
marketing body, the Gujarat Co-operative Milk Marketing Federation. These products are then
sold throughout India under the AMUL and Sagar brand names.

Indian consumers are increasingly showing a preference for packaged dairy products, due to food
safety concerns. This explains in part why the revenues of AMUL’s consumer range of packaged
dairy products grew by 11.8% in the last financial year. The sales revenue of pasteurised drinking
milk in plastic pouches under the AMUL brand rose in 2004/05 by no less than 36%. This rise was
attributable chiefly to the successful introduction of AMUL milk more than a year ago in the Indian
city of Kolkata (formerly Calcutta), home to millions of people. Thanks to this success, the
pasteurised milk pouches are the biggest contributor to AMUL’s total turnover. In the 2004/05
financial year, this range brought in a turnover of INR 6.26 billion or EUR 125 million.

The turnover of UHT milk grew 23% in the last financial year compared to preceding year. The
turnover of ice cream rose by 10%, consolidating AMUL’s position as market leader. And despite
cut-throat competition, the sales of AMUL brand butter rose by 4.5%. The sales of cheese and
cheese spreads rose by 21%. Cheese includes cheese for pizzas. And, says Kurien, other packaged
products such as flavoured milk, fresh cream, paneer or cottage cheese also have the potential to
become major products bearing the AMUL brand within a couple of years.

As the country’s largest co-operative dairy, AMUL has developed a two-pronged strategy to
address this issue and develop national presence. Firstly, last year AMUL expanded its distribution
network to include some of India’s smaller cities. In so doing, the co-operative has responded
quickly to rapidly changing market conditions.

Situated all over India, these smaller cities are now promising markets with great purchasing power
as the incomes of India’s middle class are rapidly rising and the better-off rural families are
migrating to these developing cities. In the last financial year AMUL has introduced some 900
food wholesalers in these smaller cities to its product range. ‘This initiative has already
started yielding results. AMUL products are increasingly available in smaller cities throughout
India. This initiative, which we’ll be continuing for the time being, is generating additional
turnover,’ says Kurien. Director Khanna describes the second prong of AMUL’s expansion plan.
‘We expect that the milk production in our procurement area, the state of Gujarat, will increase by
5% or more per year in the coming period. That’s the first source of growth. As not only the dairy
market but also the market for farm milk has been liberalised, we are now collecting milk in six
other places in India milk.

What is new that we would like to talk to other co-operative dairy companies. Most of them are
also organised by state following the Anand model. Our standpoint is clear. They know about milk
processing and we know about marketing. They can continue to produce dairy products that we
will sell under our strong AMUL and SAGAR brands. In this way, our partners will be able to
piggy-back on the success of AMUL’s ever expanding distribution network.’ He foresees a future
in which the players in India’s co-operative dairy world increasingly cooperate to offer the Indian
consumer a wide range of dairy products. It is completely obvious to him that AMUL will be a
driving force in shaping this new) future. ‘AMUL is India’s oldest dairy brand.
According to R.S. Sodhi(2008 chief general manager, GCMMF. “Our strength comes from
consistency, trust and relevance of our products.” Sodhi claimed that Amul’s advertising and
marketing spend has never exceeded 1% of its revenues. Most other food companies spend 6-7%
of revenues on advertising and marketing, he added. “They (GCMMF) are not big spenders
compared to Britannia or Nestle. Despite a limited budget, Amul’s creatives—in the form of
billboards or the Taste of India campaign—have always managed to evoke a larger-than-life brand
feel, consistency and spirit of Indian culture in a contemporary way,” said Shashi Sinha, executive
director, FCB Ulka, GCMMF’s advertising agency.

Bharat M. Vyas (2005) has been the managing director of Gujarat Cooperative Milk Marketing
Federation Ltd (GCMMF), the owner of brand Amul, for more than 12 years. In an interview with
Mint, BM, as Vyas is referred to by many, discusses the business strategy of India’s biggest
cooperative firm, which finds itself under increasing pressure from nimbler private sector rivals

Data Analysis:

The data analysis has done area wise. It gives idea about the competitors of Amul dairy milk.
It gives information regarding their market share.

REFERENCES
Books:
i. Marketing Management (12th Edition) – Philip Kotlar
ii. Research Methodology – C. R. Kothari

Websites:
i. www.google.co.in
ii. www.wikipedia.com
iii. www.amul.com.
iv. www.marketresearch.com
v. www.dairy.com