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The project was carried out in two areas viz., Khadki and Kothrud.
During the survey it was found that consumers are more loyal to local brands for flavoured
milk, to loose drinks in lassee and spiced buttermilk segment and to Cadburys in chocolate
segment.
It was found that retailers never push anybody’s product to the customers, they give what
customers want. (With the exception of those products which offered them attracted margin)
But retailers can change perception of consumers in case of some consumers have any
problems with the other products.
It was also found that most of the retailers are more interested in keeping those brands that will
give them higher returns (margin).
During the project it was found that some of the stocks reaching the retailers are usually
expired.
It was also found that some distributors also have complaints about delay of payment from
some retailers.
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About the company
Gujarat Cooperative Milk Marketing Federation
GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is an India’s largest food product
marketing organization. It is a state level apex body of milk cooperatives in Gujarat, which aims to
provide remunerative returns to the farmers and also serve the interest of consumers by providing
quality products, which are good value for money.
GCMMF is India’s largest exporter of Dairy Products. It had been accorded a “Trading House” status.
GCMMF is receiving the APEDA award from government of India for excellence in dairy product
exports for the last 11 years and also is a winner of the prestigious international CIO 100 award from
IDG's CIO Magazine, USA. The 2003 CIO 100 award recognizes the organisations around the world
that excel in positive business performance through resourceful IT management and best practices.
Formed in 1946, Amul began the dairy cooperative movement in India and formed an apex
cooperative organization, Gujarat Co-operative Milk Marketing Federation ltd. (GCMMF), which
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2.41 million milk producers in Gujarat, India jointly own today. Its products, including milk powders,
liquid milk, butter, ghee, cheese, chocolate, ice cream, pizza, mithaee, flavored milk and the Masti
brand of soup are widely used through out India and abroad and have made Amul the largest food
brand in India today with an annual turnover of some Rs 29 billion ($US 672 million) per annum.
Federation co-ordinated Rs.26.1 crore in product sales to the defense services. Amul butter
registered record sales, with rupee turnover growing by 17 percent. The sales value of Amulya has
registered impressive growth with an increase of 14 percent Sale of Amul milk in Gujarat has
increased by 24 percent in value terms. Amul cheese sales value has increased by a spectacular 16
percent over the previous year. Despite a declining in the milk powder market due to adequate
availability of liquid milk in most of the country, there was sensationally increased sales valve by 21
percent, a testimony to its quality.
Exports:
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For the eleventh consecutive year, Amul have received the government of India’s APEDA
award as the nation’s largest exporter of dairy products. During the year Amul butter, ghee, shrihkand
and gulabjamuns were launched in the USA. These products also made a debut in New Zealand,
Thailand, and Iraq during the year, and received a very encouraging consumer process.
Distribution network:
During the year member union continued their infrastructure investment. They
upgraded and strengthened the dairy co-operative structure by adding new village dairy co-operative.
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Principle by investing in education, training and information, enriching the members and the general
public’s understanding of the principle and techniques of co-operative
Thus co-operative commit to a large extent the milk and its milk products to meet with the highest
standard of hygiene, sanitation and quality. Thus they are related to quality.
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ABOUT THE PRODUCT
Amul kool flavoured milk is available in Seven flavours like- Mango, Kesar, Elaichi,
coffee, Strawberry, Rose, Chocolate. It is also available in bottles and tetra pack. It has
9.7% of fat.
Product Details:
• Product - Amul Kool Flavoured Milk.
• Pack - 200ml (both bottles and tetra pack).
• MRP - Rs. 10.00
Ingredients:
Toned Milk, Sugar, Contains synthetic food colours and added Nature-identified
flavouring substance.
Competitor Products:
• Nestle Fruit Milk (Tetra Pack).
• Dabur Coconut Milk (Tetra pack).
• Godrej Sofit Milk (Tetra pack).
• Local Brands (Swad, Status, Masti Cool etc).
Facts :
• It is a low fat product.
• It contains protein with almost 70% lower calorie than soft drinks.
• Its shelf life is 180 days at ambient temperature.
Amul Lassee
Amul lassee is available in two flavours- Plain, Rose. It is only in Tetra pack.
Products Details:
• Product -Amul lassee.
• Pack - 200ml in tetra pack.
• MRP - Rs 10.00
Ingredients:
Toned Milk Dahi, Flavoured Yoghurt, Sugar and Water.
Competitor Products:
• Nestle lassee.
• Local brand Shahi lassee.
• Loose lassee.
Facts:
• Amul Lassee is refreshing delicious cool drink
• Tastes great when chilled.
• Enjoy the natural goodness.
• Its shelf life is 120 days at ambient temperature.
Products Details :
• Product - Amul Masti Spiced Butter Milk.
• Pack - 200ml in tetra pack.
• MRP - Rs. 5.00
Ingredients :
Milk Solids, Common Salt, Spices and Condiments, Contains Permitted Stabilizer most
importantly.
Competitor Products:
• Loose butter milk.
Facts:
• It is low fat product with lower sodium salt content.
• It contains protein with almost 50% lower calorie than soft drinks.
• The Spice and Condiments added to the product enhance its taste.
• Presently available in India only.
Product Details:
• Product – Amul Chocozoo Chocolate.
• Pack – 250 grms (24 Pieces).
500 grms (46 Pieces).
• MRP – Rs. 72.00 (250 grms).
Rs. 138.00 (500grms).
Rs. 3.00 per pieace.
Ingredients:
Sugar, Refined Hydrogenated Vegetable Fat, Milk Solids, Cocoa Solids and Permitted
Emsulifiers.
Competitor Products:
• Cadbury (Éclairs, Dairy Milk, Fruit & Nut etc.)
• Nestle (Eclairs, Kitkat, Munch etc.)
• Parle
• Candico
• Others
Facts:
• The chocolate is in different animal Shapes.
• It is made of high quality.
• Its shelf life is 12 months at ambient temperature.
• It is specially made for children.
Project “ Marketing strategy for Amul Flavoured Milk, Lassee, Spiced Butter Milk,
Chocozoo Chocolate in Pune” is the study of the interpretation of the perception of the
target market. It also consists of understanding of dairy industry, setting up distribution
network, sales planning implementation and monitoring for Amul Milk products. This
project aimed at obtaining a better market share for the Amul Milk Products, which is
AMUL Flavoured Milk, Lassee, Spiced Butter Milk and Chocozoo Chocolate by
GCMMF Ltd. Which stand for Gujarat Co-operative Milk Marketing Federation Ltd.
With the lot of brands hitting the market the customers will have more choice and there
will be a stiff competition among the milk manufacturers. These milk product’s
manufacturers are adopting various marketing strategies to remain in the market, to
protect and to grab the market share.
To generate market stimulation these manufacturers have started campaigning the brands
targeting the current and potential buyers through massive communication, Advertising
on Television and print media, local cable Network is also playing a big role in the
advertising for local brands
The project is undertaken with the aim to plan and analyze the performance of the Amul
milk products segment in Pune market. The project also provides the essential
information regarding the customers, retailers etc., area of their dissatisfaction and the
area to focus, so as to achieve the good market share. The project will also enable the
company in improving the promotional activities to capture the good and huge market
share.
OBJECTIVE
Primary objective
Study of market perception of Amul flavour Milk, Lassee, Spiced Butter Milk,
Chocozoo vis-à-vis its competition in Pune.
Secondary objective
SCOPE
The study gives an insight on what kind of consumers use Flavour milk,
Lassee, Spiced butter milk, Chocozoo. It involves studying the reasons for likes /dislikes
towards these Products. This involves studying the purchase and consumption behavior
of respondents’ consumers in specific to these Products. The study also gives insight on
the retailing aspect for these Products with relation to the factors motivating the retailers
to sell these Products in Particular to specific Brand.
METHODOLOGY
Step 1. SECONDARY DATA was collected using World Wide Web resources.
This involved searching all the information about the competitior products in terms of
image created, product range, attributes and pricing.
Step 2. CONSUMER PRIMARY DATA This data was collected through a survey
using a questionnaire where the basic purpose was to understand buying habits and
perception of consumers and customers towards these products.
Step 3. RETAILING PRIMARY DATA This data was collected through a survey
using a questionnaire method for the retailers like the Locality Store, General Stores- Big
and Small, Supermarkets, Chemists in Pune.
Step 5. Analysis of the data as per the questionnaire pattern, on all the given parameters.
Step 6. To recommend suggestion for improving sales of Amul Kool, Lassee, Spiced
Butter Milk and Chocozoo Chocolate
Limitation:
The collected information and the conclusion drawn are based on the observation made
during the project.
Time constraint is another factor, since the duration of the project was only two months.
1. 34% of the consumers admitted to Quality being the reason for buying the
existing brand of Milk products. Brand Name seemed to be second by consumers
who seemed Brand conscious and market aware.
13%
23% Brand name
5%
Quality
Price
22%
Recommendation
37% Pervious Usage
17% 23%
Convenience
Hygenic
Longer self life
60%
3. The respondents mostly liked the quality and the convenience aspect of these
products.
100
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5. When asked about willingness to pay extra for guaranteed hygienic and pure Milk
Products, 82% of the consumers are ready to pay extra.
18%
yes
no
82%
Brands used
38% 35%
Amul
Local Brands
6% Nestle
14% Godrej
7% Dabur coconut milk
Local Brands
4%
12%
37%
Status
Swad
17%
Masti cool
Govind
chetran
30%
Consumer view about Amul Spiced Butter milk
8. Amul has introduced Masti Spiced Butter milk, which is free of color
preservatives, acids and sucrose sugar. None of the other company has such type
of product. This product captured 76% market of Butter Milk.
Brand used
24%
amul
loose butter milk
76%
9. Major percentage of respondents used Local lassee. After that people prefer
Nestle than Amul.
B r a n d s u s e d in la s s e e
11%
22%
A m ul
67%
N es t le
L o c a l B ra n d s
34%
46%
Sahi lassee
Govind
7% 13% Grinar
loose lassee
12. The respondents mostly liked the Taste and Quality aspect of this product.
F a c to rs lik e d a b o u t c h o c o z o o
100 Ta s te
80
Q ua lity
60
A va ila b ility
40
P ric e
20
0
Retail Findings
Brand Stored
Amul+Nestle+ Local
16% Brands
Amul+Nestle
6% 34%
7% Amul + Local Brands
Amul
27% 10%
Local Brands
Brand stored
Amul
Loose
butter milk
40%
60%
29%
44% Amul
Nestle
Godrej
20% Local Brands
7%
C ons um er as k s y ou to
9% 5% re c o m m e n d a n o t h e r b ra n d
C o n s u m e r a s k s fo r b ra n d w it h
5 2 % s c h e m e o n it
34%
C o n s u m e r le a ve s t h e s t o re t o
fin d t h e b ra n d e ls e w h e re
8. When asked whether the retailers themselves recommend any particular brands,
89% said that they did recommend Brands, especially in case of non – availability
or scheme on a particular brand.
yes
no
89%
50
40
30 S eries 1
20
10
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Brand stored
5%
21%
48%
Amul+Cadbury+
Nestle+Parle
Cadbury+Nestle+
26% Parle
Amul+Cadbury
Amul
37%
C o m p e titio n o ffe r a re
15%
m o re a t tra c tive
it n e e d s re frig e ra tio n
1%
5% 11%
22% Amul
Cadbury
Nestle
Parle
Candico
61%
ANALYSIS
With the help of the above research work and fact collection it was analyzed that though
the Amul Milk Products like Amul flavoured Milk, Lassee, Spiced Butter Milk,
Chocozoo Chocolate have a high potential and a large market to be captured but still
they are lacking in the acceptability among the consumers due to few loop holes in their
marketing strategies.
PRODUCT:-
Its quality is good but still many consumers are unaware about its fat contents; most of
the consumers do not have knowledge about Amul Lassee and Chocozoo Chocolate. So
there is a need of consumer awareness through effective advertising and promotional
campaign, which is very useful to enhance its sales.
PRICE:-
The margin of the retailers should be increased for these products. If the company goes
for a price reduction of these products, they can target the lower class segment, as it’s a
price sensitive market. The corporate belt can boost their sales in terms of increasing
customer base and in turn can provide them large volume sales.
PLACE: -
The product should reach the shelf of the retailer on time so that other brands
should not capture the market & super markets. ‘A’ class retail outlets should be given
more emphasis. At present distribution channel is not efficient. Efficient & effective
distribution channel has to be formed, which will cut costs & will be helpful in
distributing these products at each and every nuke & corner of the city at stipulated
delivery time. Efficient & effective distribution channel means, there should be sufficient
number of distributors to be appointed for a particular zone or area, so that the reach &
availability problem can be reduced. It adds value to the service parameters also, as in
today’s market scenario service & quality pays i.e. every one is looking for best service
with a value for money.
PROMOTION: -
As Amul is marketing driven co-operative federation, they already have
come up with hoardings, banners and advertisements. But still some effective
promotional drive is needed, which can produce better results in terms of sales.
Perception Analysis
Retailers observations
Non-stockiest of these products
“Lassee is so thin”
“No replacement”
“No schemes”
“Brand Name”
Other observations
• Awareness level among retailers for Amul Flavoured Milk, Lassee, Spiced
Butter Milk, Chocozoo Chocolate is average.
• There is no packaging available for lower segments, as they are more price
conscious.
• In organized sector only Amul, Nestle, Godrej and Cadbury are major players.
• There are other many brands are available in pune market -some of them, (for
Flavoured milk there are Nestle, Godrej, Dabur and different Local Brands), (For
Lassee there are Nestle and different Local brands), (For Chocozoo there are
Cadbury, Nestle and Parle).
• According to findings Local Brands is the market leader for Flavoured Milk and
Lassee, and Cadbury for Chocolate.
• In case of non-availability of particular brand most retailers suggested another
brand to the consumer. In this case the brand with the scheme, which benefited
him, was the one usually suggested.
• A few retailers had problems with the Amul distribution. They had complaints
regarding the expiry date of the stock.
• It was observed that at most places, which sold Amul products the POP was not
present.
• The stocking of these products by the retailers is less due to:
o Less demand by consumers.
o No replacement policy.
o Flaw in distribution channel.
o No promotional schemes being offered to retailers.
o Display material not provided to each retailer.
o No proper implementation of given schemes.
o The margin is low and there is various added cost to retailers.
o There isn’t any advertisement for these products.
Consumer observations
Non- users of these products
“Chocozoo is costly”
“Old stock”
Other observations
It was concluded that the Amul milk products i.e. Amul Flavoured Milk, Lassee,
Spiced Butter Milk and Chocozoo Chocolate, though are known to its customers &
consumers , but still their acceptance is favorably low as compared to other local
brands present in the market. Therefore, measures in terms of reach & availability and
efficient sales promotion are to be undertaken to enhance sales and acceptability
among the end user. There is very low awareness regarding Amul Lassee and
Chocozoo Chocolate among the consumers. So, there should be proper advertisement
and sales promotion activities by the company to capture good market share for these
products and to enhance their awareness level, which is very low among the
consumers and also retailers.
RECOMMENDATIONS
For Consumer Market
• POP should be available in retail stores so that consumers know about the
availability of the product.
• Few cooking websites could be asked to promote these products.
• Amul should have better presence especially in the places where different local
Brands seem to be leading in sales.
• In areas where Amul is the leader should never be out of stock.
• Amul should have better visibility in order to increase the awareness and make
use of the local media like dailies, radio and T.V. (specially during the daily
program at night since most of the buying influence i.e. the housewives observe
ads during this time).
• Amul should have a quality check done to see if the taste can be improved.
• More use of promotional activities should happen.
• Amul should organize food events and competitions in which Milk products
should be required to be used.
• Sampling should also be done in a big way especially for those areas where
different local brands and Cadbury has a strong hold.
• Use of hoardings will help to create awareness.
• Amul products should have proper visibility at the outlets.
• Company should provide gifts, with their products to attract the customers.
• Positioning should be done emphasizing on the convenience attribute.
• “Amul Milk Products are hygienic” type of statements need to be communicated
through its advertisements
For Retailer Market
• Amul should have a system by which it can take care of its delivery problems
so that it can take care of problems arising from stocks close to the expiry
dates.
• Timely visits should be given to the retail shops. Representatives should take
feedback regarding the supplies and quality issues.
• Company should supply their product as per manufacturing date.
• Amul should offer more incentives to the retailers mostly for the display
because many respondents look around for alternative themselves. Hence
Amul has to be more visible.
• More sales –More incentive concept should be apply.
• The salesman should be able to solve issues related to sales, supplies and
stocks amicably.
• Need of more communication between retailer and salesman.
• Should provide replacement of the spoiled products to the retailers.
• Should improve its distribution channel & chain by increasing the no. of
distributors.
• Should come up with a PUSH strategy, as some promotional schemes are
being offered to retailers.
• There should be proper check & control over the implied schemes given to the
retailers.
• Should provide display materials to each & every retailers. It will help in
creating brand awareness among retailers.
• Company should provide volume discounts and more profit margins to attract
retailers as well as distributors, which will make them to increase their sales.
• Evening stall in front of high volume sale retail outlets, gym etc.
• The Amul representatives must go and meet the retailers’ counterparts
regularly and keep them updated on the uses of milk products.
• Amul should make sure that it is always available to the retailers. Also it must
make sure that there is always timely service offered to the retailers.
• Company can increase the numbers of Amul Milk Parlour, in which it can
serve its milk products of different flavours & taste. This will increase its milk
consumption and people will find a suitable shopping mart for dairy products.
• Should try to build good Personal Relationship with the Retailers, as they
are the only person who is responsible for changing the perception and create
awareness & demand among the consumers.
Consumer Questionnaire
Respondent Name
Address
Tel No.
13. Is there anything you did not like about Amul milk products?
__________________________________________________________________
16. If you go to the store to buy ________ milk product and it is not available what
would you do?
Look for the same pack in another Brand.
Leave and go to another store for the same Brand
17. Would you be wiling to pay a little extra for guaranteed hygienic and pure
products?
Yes No
21. Do you think the products should be available in any other pack sizes?
Yes No
_________________________________________________________________
_
Notes:
Retailer Questionnaire
Name of Store
Type of Store
Address
Tel No
1. What are the Brands of Milk products that are stocked in the store?
Brand
Amul
Nestle
Godrej
Dabur
Local brands
Parle
Cadbury
Candico
Margins Obtained
Display Schemes
Long term association with brand
Good relationship with salesman
Consumer Schemes offered
Consumer Demand High Take-off
4. What are the margins offered to you for each of the brands that you stock?
Brand Margin
Amul
Nestle
Godrej
Dabur
Local brands
Parle
Cadbury
Candico
5. Do you stock Amul’s Milk products?
Yes No
6. If not, why?
8. Of the brands given below, which brands do consumers ask for by name?
Amul Nestle Godrej Dabur Parle
Others
9. Have consumers come to your store and asked for Amul’s milk products?
Yes No
10. Has it happened that a consumer has come into your store and asked for a brand
and it has not been available?
Yes No
Attributes Brand
Amul Nestle Cadbury
Brand name
Visibility
Marketing activities
Quality
Pricing
Notes:
ANNEXTURES
CONSUMER STATISTICS
Brand name 58
Quality 94
Price 54
Recommendation 12
Pervious Usage 32
Convenience 70
Hygienic 180
Longer self life 50
Quality 90
Price 60
Convenience 75
Taste 60
Known fat% 15
Brand Name 70
Taste 50
Price 40
Fat content 30
Availability 30
Shelf Life 20
Packet Sizes 10
5.Willingness to use Amul Milk No. Of Respondents
Products
Yes 187
No 41
Amul 88
Local Brands 35
Nestle 18
Godrej 14
Dabur coconut milk 95
Status 91
Swad 76
Masti cool 43
Govind 29
chetran 11
Amul 189
Loose butter milk 61
Amul 28
Nestle 55
Local Brands 167
Sahi lassee 68
Govind 27
Grinar 14
loose lassee 93
STATISTICS FOR AMUL CHOCOZOO CHOCOLATE
Amul 18
Cadbury 166
Nestle 42
Parle 14
candico 8
Quality 65
Price 24
Availability 36
Taste 96
RETAILERS STATISTICS
Amul 97
Loose butter milk 66
Margins obtained 35
Good relationship with salesman 8
Long term association with brand 22
Consumer demand- high take off 20
Display Schemes 5
Consumer schemes offered 10
Amul 54
Nestle 37
Godrej 13
Local Brands 85
Yes 75
No 9
Old stock 44
Price 22
Brand Name 1
Non-Availability 28
Taste 5
RETAILERS STATISTICS FOR AMUL CHOCOZOO
CHOCOLATE
Amul+Cadbury+Nestle+Parle 48
Cadbury+Nestle+Parle 26
Amul+Cadbury 21
Amul 5
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