1.

Introduction
1.1 Company Profile

In India during 1946, the first milk union was established. This union was started with 250 lit. of milk per day. This union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. This union selected the brand name AMUL in 1955. Thus, AMUL (Anand Milk Union Limited) , is a dairy cooperative movement in India. The word Amul means priceless in Sanskrit. A quality control expert in Anand suggested the brand name Amul from the Sanskrit Amoolya, variant all meaning priceless. It is a brand name managed by an apex cooperative organisation, Gujarat Co- operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Re volution of India, which has made India the largest producer of milk and milk products in the world. 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). Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed professionalism of Dr Verghese Kurien, who was entrusted the task of running the dairy from 1950. The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should become the basis of a National Dairy Development policy. He understood that the success of Amul could be attributed to four important factors. The farmers owned the dairy, their elected representatives managed the village societies and the district union, they employed professionals to operate the dairy and manage its business. Most importantly, the co-operatives were sensitive to the needs of farmers and responsive to their demands. At his instance in 1965 the National Dairy Development Board was set up with the basic objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its Chairman and asked to replicate th is model hroughout the country. At his instance in 1965 the National Dairy Development Board was set up with the basic objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its Chairman and asked to replicate this model throughout the country.
1

The Amul Model

The Amul Model of dairy development is a three -tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level. Establishment of a direct linkage between milk producers and consumers by eliminating middlemen Milk Producers (farmers) control procurement, processing and marketing Professional management

The Amul model has helped India to emerge as the largest milk producer in the world. More than 13 million milk producers pour their milk in 1,28,799 dairy cooperative societies across the country. Their milk is processed in 176 District Co-operative Unions and marketed by 22 State Marketing Federations, ensuring a better life for millions.

GCMMF
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product marketing organization with annual turnover (2010 -11) US$ 2.2 billion. Its daily milk procurement is approx 12 million lit (peak period) per day from 15,712 village milk cooperative societies, 17 member unions covering 24 districts, and 3 million milk producer members.

Its success has not only been emulated in India but serves as a model for rest of the World. It is exclusive marketing organisation of 'Amul' and 'Sagar' branded products. It operates through 47 Sales Offices and has a dealer network of 5000 dealers and 10 lakh retailers, one of the largest such networks in India. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional India n sweets, etc. GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. Many of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China and Australia.
GCMMF - An Overview =

Year of Establishment

1973 17 District Cooperative Milk Producers' Unions (13 Members & 4 Nominal Members) 3.03 Million 15,712

Members

No. of Producer Members No. of Village Societies

Total Milk handling capacity per 13.67 Million litres per day day Milk Collection (Total - 2010-11) 3.45 billion litres Milk collection (Daily Average 2010-11) Milk Drying Capacity Cattle feed manufacturing Capacity Sales Turnover -(2010-11) 9.2 million litres (peak 12 million) 647 Mts. per day 3690 Mts. per day Rs. 9774 Crores (US $2.2 Billion)

1.2 Definition and Purpose of the Project

An insight into the purchasing patterns of Indian Households reveals that the bulk of the family income is spent on food products with a significant share of milk and milk products especially with the purchase of ice-creams. Amul ice cream was launched on the platform of Real Milk. Real Ice Cream given that it is a milk company and the wholesomeness of its products gives it a competitive advantage. Today the market share of Amul ic e cream is 38% share against the 12% market share of HLL, thus making it 4 times larger than its closest competitor. However in the past few months, the implementation of SAP in the automation of Ice Cream manufacturing had lead to problems of shortage in supply as well as distribution. Competitors like Kwality Walls, Dinshaws, Havmor, Pastonji, Creambell etc had cashed on this opportunity and had started eating in to the market share of Amul. They did so by distributing free deep freezers across various parts of India, availing the retailers to various schemes etc. Amul wanted to regain the confidence of the Retailers and instill a sense of security within them. It also wanted to win the back consumers it had lost to its competitors. By this, the market share of Amul which had been eaten out by the other competitors can slowly but surely be regained back. The project basically revolves around retaining Customer and Retailer Loyalty via Aggressive Sales Promotion Tactics and Surveys, and getting new Amul outlets. The project also involves the promotion of Deep Freezers manufactured by Amul. The tryst with Amul had been divided into dual phases. a) The first part constituted of purely a Sales profile for which the management students had to perform Field work for nearly a month and a half in order to increase the retail penetration of Amul. b) The second part constituted of Market Research Project .The project involved working out Marketing Strategies for Amul Ice creams to get a Lions Share in Retail segment for Mumbai Market.

1.3 Scope and objectives of the project

The scope of a project is basically defined as what the project is supposed to accomplish. The project in Amul involved the following activities: 1) Understanding the market scenario and the distribution cycle with the help of Distributor salesman 2) Knowing the competitive brands along with Amul 3) Being aware of the delicate situation created due to technological implementation 4) Making the retailers aware of the crisis due to the technological implementation 5) Convincing the retailers to have faith on the brand of Amul and the strong distribution network of Amul. 6) Changes to be brought about in Amul via Retailer and Consumer surveys.

The multi fold objectives to be achieved by completion of this project were as follows a) During this stint as Sales trainee 1) To retain the Retailer and Customer loyalty. 2) To regain Supremacy in the Ice -cream range. 3) To create more and more Amul outlets 4) To promote extensively for the use of Amul Deep Freezers (HADF).

b) During the Market Research Project 1) To contact different channel members 2) To find strength of Amul Ice creams vs. other competitors 3) To work out model for increasing retail penetration.

1.4 Salient contributions of the project

The internship with Amul over a period of two months involved working as Management Sales Trainee and working in a Market Research Project. This two month period involved the following contributions from the point of view of the project: 1) Distribution Cycle of Amul ice cream was understood properly. 2) Difficulties of Retailers keeping stock of Amul ice cream were noted down. 3) Various problems of Retailers associated due to the technology implemented by Amul were found out 4) Through visits to various retailers, changes the retailers wished to be brought about were noted 5) Through Retailer and Consumer Surveys, marketing strategies were worked for Amul to capture Lions share in the retail segment of Mumbai.

1.5 Outline of the Project Report

Amul, an FMCG major, had recruited Management students and invested them in the foray of Amul Ice creams. During the stint with Amul as Management Sales Trainee and working on Market Research Project, the students underwent a useful and good training curriculum. They got an idea as to how a FMCG major works and what is the perception of Retailers regarding Amul as also the perception of Consumers alike.

2. Review of Literature

Ice cream market in India

Indian summers are synonymous with ice creams. Come summers, and a number of colorful pushcarts are seen selling the choicest of ice creams in numerous flavors from the traditional vanilla and chocolate to unusual varieties like Mother Diarys Shahi Nazrana. If that doesnt baffle us then the ice cream range definitely would, for example the ice cream range for the children would be entirely different from that for the teenagers or for that matter adults. Or, for those who like to have ice cream in peace, t here are a number of ice cream parlors that are opening shop. The ice cream market in India is estimated to be around INR 2,000 crores, of which over 40% belongs to the organized sector growing at about 15% per year. Amul leads the pack with about 36 -38% market share (5% of its total revenues), followed by Kwality Walls & Vadilal with about 12 -14% share each. These players not only have to fight the small local and cottage industry players, but also the fact that the Indian cuisine itself offers a large va riety of desserts which are still preferred by most Indians. Due to this reason, the per capita consumption of ice creams in India is about 300ml per annum, 1.4% of that in US, and 13% of the world average, which can be seen as a huge opportunity in this s ector in India attracting new regional and national entrants. However, an issue is the seasonal nature of this industry in India, especially true for the northern parts of the country. Bulk of the sales happen during the summer months of April-July, while the sales witness a significant dip during winter months of November-February. Additionally, the seasonality of events like marriages affects sales in a big way, although institutional sales provide some cushion. But what makes the situation worse is low supply of electricity, especially during the high demand summer months that affects the ice cream stocks. Once the ice cream melts, it is non-saleable, and drives retailers not to carry enough stocks not an optimal situation given the not so favorable sit uation of cold chain in India. Half the market is driven by impulse purchase, and rest by family consumption at home and in-parlour sales. There are niche players in the parlour business, with Naturals in the west; and then there are premium players like Baskin Robbins and Gelato. Brands are coming out with pro -biotic and low fat ice creams targeting the health conscious consumers, and also new manufacturing processes which reduce air content in ice creams giving more value for money to the consumers; but the acceptance for such products is still to be put to a proper test in the market.
8

What exactly is defined as ice cream under the guidelines? The Prevention of Food Adulteration (PFA) Rules, 1955 define ice cream as a frozen product that contains not less than 10% milk fat, 3.5% protein, 36.0% total solids, and 0.5% permitted stabilizer and emulsifier. The basic steps in the manufacturing of ice cream are generally first blending the ingredients, pasteurization, and homogenization, aging the mix, fre ezing, and hardening. Now, during the hardening process, the ice cream mixture is incorporated with air. This is done to make the product light and creamy. This is necessary as without air, ice cream would be like frozen ice. Now the ice cream can contain a considerable quantity of air, even up to half of its volume. This perhaps makes ice cream a business with high profit margin. There are several challenges that affect the industry adversely. As mentioned earlier, the industry players not only face co mpetition from their competitors, but also from other like foods. Though changing, consumers still consider ice cream as a dessert and a side item. Moreover, of the ice cream consumption in India, nearly 60% is accounted to by three flavors of vanilla, str awberry and chocolate. And to be on the safer side, major players tend play around these flavors only. For big players, regional competition from smaller players is another major issue. Another major problem faced by the industry players, especially while expansion, is poor infrastructure such lack of cold storage and in case of rural penetration, even erratic power supply becomes an issue. As the industry, evaluation would indicate the competition is significant. The 70,000 participants is a large number but the more serious challenge comes from the top six national firms; Amul, Kwality Walls, Havmor, Dinshaw, Vadilal and Mother Dairy. These top six firms dominate the market and essentially control the organized market. Detail statistics are not available to indicate market share and these six firms control 40% to 50% of the urban market. Historically MNCs have not achieved much success in penetrating the Indian market. There are a number of possible explanations for this; the relative embryonic and disorg anized nature of the market, excessive government regulation that included excessive tariffs and the restriction that imported ice cream could only be sold in hotels, and a highly fragmented and ineffective media.

Amul Ice cream in India

For any new player to enter this market, three things are critical:

1) Decentralized manufacturing facilities 2) Efficient cold chain 3) Growing market

Amul Ice Cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs. Amul ice cream was launched on the platform of Real Milk. Real Ice Cream given that it is a milk company and the wholesomeness of its products gives it a competitive advantage. In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999. It has combated competition like Walls, Mother Dairy and achieved the No 1 position in the country. This position was achieved in 2001 and it has continued to remain at the top.

Today the market share of Amul ice cream is 38% share against the 12% mar ket share of HLL, thus making it 4 times larger than its closest competitor. Not only has it grown at a phenomenal rate but has added a vast variety of flavours to its ever growing range. Currently it offers a selection of 220 products. Amul has always brought newness in its products and the same applies for ice creams.

In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice Cream, which was a first in India. This range of SUGAR FREE, LOW FAT Diabetic Delight & ProLife Probiotic Welln ess Ice Cream is created for the health conscious.

10

Amuls entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time due to price differential, quality of products and of course th e brand name.

11

Kwali K f l i it i t i t

Wall i I

ia i t t i fi t i t I i t i i t f t i t t t t l t l t l i l i t t

lit I i

t i f t i i i l l . A t i i I i , i K lit j i it i t t l i . I i t K A I Y A S t lt f ll ti t ll t l i I i i K lit . t ll t ,t ll ti K lit t i f t i t t.

,K i

lit i i fi

; it t il

lt . K lit i l f t i i , f t i t t l .

it i t t it t I i t i i i f i t i I i t t t fl , t l lit t iti f

tj

Havm

i I

ia

i l B . it iti . I lif i i, i i i I i .B , it t . B t i , i t f t titi , it f S t j i t i t I i , it i t ll l t .S t f, ti t I , fi ll , ttl . , it t f B l ti , t A f if l. t t tt t f t i . I f t, t tt A il St ti , i tt f ll . ll t i fl li l i f i t t t , t l f , t f i I . P i t it t , t i i t i i i i K t

12

t t

ll it l ti i i t I t t l i li t l i f i l l

foundation for one of Western India's most enduring market legends. And good quality, like good character, wins over the situation sooner or later. Today, Havmor Ice Cream is a delicious facet of Western India's daily life and part of its market lore. It reaches hundreds of thousands of consumers through 50 main outlets and 12000 plus dealers. That's a very very long way from a hand -cart. Havmor food Pvt. Ltd. is the industry where different flavours of ice -cream are prepared. Havmors industry is the firm chiefly leading with processing of ice creams, but also makes other products. Havmor industry processes the different types of flavours of ice-cream for the people by observing the taste of people. Havmor industries produce more of those flavours, which are in more demand in market. Havmor industries ltd is one of the most famous ice-cream producing companies in India. As today ice-cream market has been more competitive due to many new entries in this field but Havmor is still holding its position and command in the ice-cream market.
Vadilal in India

Vadilal Industries Limited, Bareilly was established in 1996 for ice cream manufacturing with an installed capacity of 15000 liters per day. To cater to the increasing demand of ice cream in India the company expanded the capacity to 60,000 liters per day in 2005. It is planned to enhance the capacity by 1,00,000 liters ice cream per day in near future.

Vadilals aim is to become an Indian MNC in ice creams and frozen foods, and to provide products and services at an affordable price without compromising on quality. Vadilal Industries has been doing well because of its strong brand identity, good product quality, timely supply and extensive reach. A major success factor has been its ability to cater to different market segments through multiple product ranges. Vadilal has the largest range of ice creams in the country with 150 plus flavours. Through the franchisee route, Vadilal has set up over 140 Happinezz retail outlets for selling ice creams. Vadilals market share is 20% as of now and thus Vadilal Industries Ltd. has today emerged as Indias second largest ice cream player.

13

3. Research Methodology
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the methodology. when we t alk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others. Marketing research plays a very important role in marketing. It helps the firm to acquire a better understanding of the consumers, the competition and the marketing environment. Definition Marketing research is a systematic gathering, recording and analysis of marketing problem to facilitate decision making. -Coundiff & Still Marketing Research is a systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services. -Phillip Kotler
3.1 Research design

The starting point for the research design is, in fact, the research questions and hypotheses that have been so carefully developed. In essence, the research design answers the question: How are we going to get answers to these research questions and test these hypotheses? The research design is a plan of action indicating the specific steps that are necessary to provide answers to those questions, test the hypotheses, and thereby achieve the research purpose that helps choose among the decision alternatives to solve the management problem or capitalize on the market opportunity. For the success of this project, the Research Design that was adopted was Exploratory Research Design. Exploratory research is conducted when the researcher does not know how and why certain phenomenon occurs. The purpose of exploratory re search is to know the unknown. Exploratory research determines fruitful alternatives that the executive would not have perceived. This also narrows down the scope of the investigation. Exploratory
14

research is undertaken to get the answer to the following q uestion. "What alternative courses of action might solve the problem and thereby reach the final objective?".Here the question posed was that what were the major reasons for the turmoil in the minds of retailers and consumers, regarding Amul ice creams. Also if there were any problems with Amul, what could be the possible solutions for the same. We had to get to know the unexplored variables that influenced the buying behavior of customers and the purchasing power of retailers.

3.2 Data Collection Sources

Data will be collected from primary and secondary sources, but the emphasis will be given on primary data. 1. PRIMARY DATA: Primary data, which is the major source of information for the project, has been collected by way of preparation of well -structured questionnaire and personal interviews. 2. SECONDARY DATA: To make the study better, secondary data has also been collected by way of editorials, journals or extracts from magazines and newspapers, websites of internet.
3.3 Data Collection Methods

a) First Phase of Field Work. Since I resided along the Central Line, I was posted to Ghatkopar(W.), Andheri(E.) area wherein we had to operate with the Sales person, both at the Distributor level as well at the Company level. Basically the Distributor in Ghatkopar(W.) had been restricted to mainly five areas. We had to operate only in these five areas. During the initial one or two weeks, we understood the market via the help of distributor sales person. We took a survey as to how badly the market had been affected by the shortage of supply and distribution via interviews with the retailers. The visits ensured that the confidence in the retailers was instilled and reminded them of the strong distribution network of Amul .Since t his project was a B2C project, we were also required to fill a Daily Status Report (DSR) indicating the number of outlets visited as we distributed POPS across these outlets. The sample size on an average involves visit to fifteen to twenty outlets per day . Over the coming weeks, we had to individually enter into the foray of the markets and try to capture new Amul outlets. Along with this we also
15

promoted extensively for the use of Amul Deep freezers. I visited around 129 retailers which kept Amul Ice creams and around 70 retailers which did not keep Amul Ice creams. I started data collection from 2 nd May till 6th June. At the end of the field work I was able to convince 14 retailers to start Amul Ice creams. During the field work we got acquainted with the customers dissatisfaction with current product, received Retailer/Shopkeepers feedback, Identification of various problems related with the scheme, etc. Sr.No 1 2 3 4 5 Area Asalfa Marol-Maroshi Military Road Chandivali Bohra colony
Total

Converted to Amul 3 5 1 1 4
14

b) Second Phase for Market Research Project As part of the Market Research project, we were given a project to work out various Marketing Strategies so that Amul could grasp Lions share in the Retail segment for Mumbai Market. Basically the Mumbai Market is divided geographica lly into three areas 1) Central Mumbai 2) Western Mumbai 3) South Mumbai

The students were divided into a group of five and in total there were three groups each group for one of the areas and the groups were made according to the place of residence. Since I reside along the Central Line, our group decided to cover Central Mumbai which extends from Mulund to Sion. We decided that in order to ensure success in this project, it was really necessary to get feedback from both retailers and consumers alike. It was really important for us to know what were the reasons as to why in spite of Amul
16

being the market leader in ice creams, retailers despised keeping Amul ice creams as also what were the amicable problems faced by the existent retailers. Equally important were the suggestions from the consumers the ones who had consumed Amul ice cream and the ones who had not. Their feedback was also really important. Hence it was decided to conduct a Retailer as well as Consumer Survey.
3.4 Data Collection Instrument

A questionnaire consist a list of question to be asked from the respondents and space provided to record their answer or responses. Questionnaire can be used for personal interviews, focus groups and telephonic interviews . The choice amongst these alternatives is largely determined by the type of information to be obtained and by the type of respondents from whom it is to be obtained. The common factor in all the varieties of the questionnaire method is this reliance on verbal responses to question, written or oral. The Market Research Project involved Retailer as well as Customer survey for acquiring information on Amul Ice Creams.
Retailer Survey

For retailer survey, a questionnaire was developed within a period of seven days and after careful scrutiny we started conducting the survey. We decided that each one of us will individually cover 50 retailers apiece. The retailer survey took place over a period of four days during which we covered major areas like Mulund, Vikhroli, Ghatkopar etc.

Consumer Survey

For Consumer survey too, a questionnaire was developed .We conducted this Survey online, as we thought consumers will be better able to answer open ended questions quite comfortable at home. We conducted this survey over a period of two weeks in which both Retailer and Consumer Information was tabulated properly
3.5 Sampling

1. Sampling Technique: Non probability sampling (A non probability sampling technique is that in which each element in the Popula tion does not have an equal chance of getting selected).
17

2. Sample Unit: People who buy ice creams available in retail outlets, superstores, etc, and retailers who sell any brands of ice -cream. 3. Sample size: 350 - 400 consumers and 400-450 retailers 4. Method: Direct interview through questionnaire.

3.6 Data Analysis

Data Analysis is important for any project because the raw data is of no use and does not convey the awareness among the youths. The data collected through questionnaires was arranged in a tabular form and presented graphically for the purpose of effective study and in depth analysis and interpretation. Use of percentage, charts, graph line etc. was made for the study in the behavioral aspects of both Retailers and Consumers.

18

4. Results and Interpretation

Results and Analysis of Retailers Questionnaire

1. How many brands of ice-creams do you keep in your store?

One 44.5 55.5

More than one

Only One Icecream Brand

5% 18% 39% Amul Kwality walls Pastonji Gelato

38%

Many of the retailers kept more than one brand of ice -cream. But the ones who kept only one Brand had Amul the maximum followed by Kwality walls.

19

fi

19

11

23

14

t f t ll,

t il t li

t A

l i .

ft

ll t

140

120
100 80

60
40 20

A ul

oth D i

lit lls

V dil l

A it i l , t. P l

l i i l f f t i f t t

t A A

,t l, it li t

t il A lI ft t

20

oth D i lit lls V dil l th s l , i ,

33

A ul th s t B t t t tt t lli t .

4.

lli

lI

30.0 25.0
20.0 15.0 10.0 5.0 0.0

f f i t i i

t il i t A l I A l i i t it i il t li K lit ll it f . / . i t j f ll A l i i l ft l i . A l ft l t t . If t f t f t t il , t i t t t il i ft t f i t t . i t l ti . tt , f i t il i f A t li l t f

f t

t i i i t i t t i

i t i

it

ft fit. I li

tti

21

5.
40.0

tf

il

fi

35.0 30.0 25.0 20.0

15.0 10.0 5.0 0.0

Av il bilit

gin

Consu p f n t t t f . f i

t A . il . i ilit , t t

, i I l fi

il

i i

f l

23

24

Cups

Con s Sti ks 23 29

fi t

t f

il

22

   

 

th s

 
t il

     

  



th s

iff i

t f i

ks

ti

7. A

ti fi

it t

28 Y s No 72

t ft l . If t i

t il , l

ti fi t f t

it t , t

6%

3% 0% 2% 2%

8% 1%
51 27%

Many f t tail l tA lt t ainly ause it is ade eal il and is ealt y as ared t frozen dessert. Secondly it is cheap f and thirdly they ant to stay loyal to the rand of ice-cream they eep in their store.

23

& 1& & !3 %&) ! # &!0 0#& &2 '0 &1 0 !) ( &% ' &%$ #

"

i ti fi

i li

A l, t . t l

it ft

A ul

lit

lls

ot

stonji

H v o C

b ll

Dins

l to

il l

Resul s and Anal sis emographi s:

ustomers

uestionnaire

Gender
34%
Male

66%

Female

Age group
15% 6% 12% Belo 15 15 - 20
23% 21 - 30 31 - 40

Above 40
44%

24

1.

hat are the occasions you prefer to eat Ice -Creams?

50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

Majority of Consumer eat ice-cream on a regular asis. Some eat occasionally throughout the year during parties, family functions etc.

hich Brands do you prefer?

Brands
12% 9% 33%

Amul

8% 7%
8%

23%

Majority of consumers preferred to have Amul ice-cream as their first choice followed y Kwality alls.

25

8 7 65
adilal

alit walls

Dinshaw Mother Dairy

Others No specific

3.

Rank
22.0 21.5 21.0 20.5 20.0 19.5 19.0 18.5 18.0 17.5

the

attributes

you

consider

while

buying

an

ice

cream

Convenience

Taste was of utmost priority for consumer while buying an ice-cream. Flavours and price closely followed. 4. Rate the following brand of ice creams on a scale of 1 -5 on the basis of Taste, Price, Brand, Packaging, Flavours, Quality.

TTRI UTE
20.0

18.0
16.0

14.0 12.0
10.0

Consumers prefer taste of Mother Dairy and Kwality Walls better as compared to Amul. Though Price wise Amul is much better and cheap as compared to other two. Packaging of Amul needs to be improved. Also Amul needs to improve on introducing new flavours.

26

E DI H G F D E D C @

MUL

W LIT W LL IR

M T ER

Taste

rice

vaila ility

lavours

5. o you consume Amul ice-cream?

21% Yes

No
79%

Most of the consumer had consumed Amul Ice-cream . ate AMUL Ice-creams on the following attri utes uality

nce in their ifetime.

45.0
40.0 35.0

30.0
25.0

20.0
15.0 10.0

5.0 0.0 xcellent Very Good Good Average

27

50.0

40.0 30.0 20.0 10.0

0.0

Excellent

Very Good

Good

Average

aste Price

80.0 70.0 60.0 50.0 40.0 30.0

20.0 10.0 0.0

Higher Average Lower

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7. Do you think AMUL lives up to its tagline The Taste Of India ?

70.0
60.0

50.0
40.0

30.0
20.0

10.0
0.0

A ree

Most of the Consumers agree to the Tagline of Amul being "The Taste of India".

Q R

isa ree

Neutral

29

8. Reasons for not consuming AMUL as your preferred brands for Ice -Cream?
30
25

20 15
10 5

Of the 21% who did not consume Amul Ice-cream, for them Amul did not taste quite good as compared to competitors.

9. Can you recall any Amul Ice-cream advertisement?

65%

Many of Consumers were not aware of the Amul Ice-cream Advertisements. So Amul needs to do some aggressive Advertising so that people become aware of any new products being launched by Amul.

35%

es

No

30

TV U

BA TA T E

EXPEN I VE

NOT AVAILABLE

OT E

T S

10. Are you aware of Amul parlour?

20%

80%

Awareness of Amul Parlours was quite good amongst the Consumers. 11. Do you like Amul Parlour?

23%

77%

The concept of Amul Parlour was liked by majority of consumers. Few who did not like cited the reasons as nothing new was introduced in the parlour, the names of different recipe were different as diff erent stalls, hygiene level was low etc.

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es

No

es

No

5. Conclusion

Amul means different things to different people To a milk producer - A life enriching experience To a consumer - Assurance of having wholesome milk To a mother - A reliable source of nourishment for her child To the country - rural development and self Reliance As we know that Amul is very big organization and market leader in dairy products. It has maximum market share in Milk, Butter and Cheese, which are its main/core products. As we know, Amul is a co-operative organization but ice cream industry is a profitable industry we cannot ignore it. With the help of research, company can find out its week points in ice cream product and can increase its market share through rectify mistakes. People ha ve believed in Amuls product and they will accept its ice cream if effective actions were taken.
From Retailers data analysis -

1. Most of the retailers kept Amul ice creams and it was selling the most where there were other brands kept along with Amul. 2. Retailers did not keep Amul Ice-cream as Amul did not provide freezer on discount or deposit basis while other like Kwality Walls were giving the freezer on a deposit. 3. Few of them had problem with the service provided by Amul which also included after-sales service. 4. Amul gave very less profit margin on its product. 5. Cones were selling the most as compared to cups and sticks. 6. Most of the Retailers were satisfied with the service provided by Amul, be it after-sales service, replacement of damaged goods, on -time delivery etc. 7. Many of the retailers would suggest Amul to customer mainly because it is made from real milk and is healthy as compared to frozen dessert. Secondly it is cheap and thirdly they want to stay loyal to the brand of ice cream they keep in their store.

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From Consumers data analysis -

1. Majority of Consumer eat Ice-cream on a regular basis. Some eat occasionally throughout the year during parties, family functions etc. Amul has scope to increase its client share. 2. Consumers preferred to have Amul ice-cream as their first choice followed by Kwality Walls. Kwality walls poses a threat to the market of Amul Icecream 3. Taste was of utmost priority for consumer while buying an ice -cream. Flavours and price closely followed. 4. Consumers agree to the Tagline of Amul being "The Taste of India". 5. Of the 21% who did not consume Amul Ice-cream, for them Amul did not taste quite good as compared to competitors. There is scope for Amul in the untapped market. 6. Awareness of Amul Parlours was quite good amongst the Con sumers. 7. The concept of Amul Parlour was liked by majority of consumers. Few who did not like cited the reasons as nothing new was introduced in the parlour, the names of recipe were different at different stalls; hygiene level was low, etc. 8. People fond of fruit flavor of ice-cream. The future market of this type is seems to be higher, Amul should advertise these type of products. 9. Amul ice-cream advertising is not very much effective one. 65% customers have never seen Amul ice-cream advertising. In this field, the company needs improvement. 10. Amul must come up with new promotional activities such that people become aware about newly launched ice-cream flavors and also about Amul Parlours. 11. Quality is the dominating aspect which influences consumer to purchase Amul product, but Prompt availability of ice-cream and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales. 12. In comparison to Amul ice cream, the other players such as Kwality Walls, Mother Dairy, and Vadilal provide a better availability and packaging and give tough competition to Amul.

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13. People are mostly satisfied with the overall quality of Amul ice cream, but for the existence in the local market Amul must use aggressive selling technique

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6. Limitations

The limitations of the project are as follows: 1. Some of the respondents could not give their proper response due to lack of time. They at times tend to get biased and project a rosy picture which may affect the reliability and relevance of th e study 2. It might also be so that some respondents were not motivated enough to respond properly although full attempt was made to keep it as unbiased as possible. 3. There was no provision of visiting cards for the summer trainees which hinder communication at times 4. The duration of the project was short, so the scope of more in -depth evaluation was not possible. 5. As summer training is going under summer season so sometimes people are less interested in filling up questionnaire. 6. Non-cooperative approach and rude behavior of the respondents. 7. If the respondents answer does not falls between amongst the options given then it will turn-up to be a biased answer. Some time outlets and parlours owner did not give proper knowledge and time about my queries. 8. There might have been tendencies among the respondents to amplify or filter their responses under the testing conditions.

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7. Recommendations

The recommendations for the company for further growth and profit are as follows: 1. Amul has to mainly concentrate to improve their product variety and especially during seasons, the concept of seasonal fruit flavors should be incepted and made available easily. Introduction of more flavors & a bit increase in the quantity as well (with reference to price) should be look ed upon. 2. People complain that there are only few flavors of Amul ice -creams whenever they go to purchase it. Also the schemes offered on Amul ice creams are not as attractive as compared to other brands so Amul should offer new schemes which are beneficial for both consumer and the company. Amul should pitch in to make aggressive marketing against Kwality walls by introducing new flavor variants in market that are not present. 3. Amul should try to differentiate the retailer's in respective areas as per peoples preference. E.g. Amul brand is present but with the retailer which is not famous at all or least preferred in the area. On the other hand Kwality Walls have booked the best retailer in the area. So Amul should focus on Selective Targeting. 4. Many retailers complain that once the Amul Deep Freezer has been installed, not even a single person from the company comes forward to address the grievances of the retailers, in case any problem happens with the freezer. Hence Amul should conduct regular visits to the retailers and try to resolve their grievances. 5. Salesman should frequently visit the Retailers, in order that there is proper receipt of complaints and quick solution is also provided. Retailers expect that Amul should also try to see what Retailers proble ms actually are during the storage of Amul ice creams. 6. Hoarding should be providing within one week after delivery of deep freezer. Price list and other posters should be delivered to the retailer with the first supply of the ice cream. The price list is very necessary without this it is very difficult to sell the ice cream. If painting is committed by the sales person then it should be done within the two or three weeks. 7. Amul should provide proper training to all its employees and concentrate on improving the after sales service
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7.1 Marketing Strategies

Following are some of the marketing strategies which can be adopted by Amul to gain grasp a lions share in retail segment: 1) Amul can make its hold in the market more strongly if it provides deep freezer on installment basis or give the freezer on credit basis. 2) The Company needs to improve their packaging material quality. Packaging is one of the main areas of disagreement with the ice cream distributors because the packaging of the ice cream creates problem with caring and forwarding. Consumers have suggested that plastic containers can be easily handled. 3) Incentive based trading with retailers should be initialized upon. 4) Amul needs to strengthen its supply chain management so that there is no problem in the distribution network of Amul. 5) Sales promotional activities like game shows, contests, in shop promotions in malls should be increased and publicized properly. Amul also needs to have tie ups with various branded stores like Reliance fresh, More, Food marts etc. 6) Amul should focus on having tie ups with malls, different catering institutions, hotels, single screen theatres etc 7) Brand upliftment of Amul ice creams is the need of the day. For this Company should use Brand ambassador which attracts each age segmen t as also Amul should publicize itself through better TV Ads and advertising through electronic media like Internet, Mobile, FM channels etc 8) Amul must introduce tricycles at strategic traffic points and at public places. This will not only increase sales but also increase Amuls Visibility. 9) Amul should make some immediate changes in its policies regarding the damage and replacement of the ice creams.

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Appendix (A) Questionnaire for Retailers:

1. How many brands of ice-creams do you keep in your store? a. One (which) b. More than One If (a), please proceed to question number 5 If (b), please proceed to question number 2

2. What brands of ice cream do you store in your shop? a. Amul b. Mother Dairy c. Kwality walls d. Vadilal e. Others_________

3. Which of these brands sell the most? a. Amul b. Mother Dairy c. Kwality walls d. Vadilal e. Others__________

4.

If you do not have a particular brand available then what do you tell your Consumers? a. Suggest another brand b. Send him to next store
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5. What are the reasons for not selling Amul Ice- creams? (Please tick from the below options) a. Quality b. Service c. Price d. Freezer e. Lack of Availability f. Delivery

6. What factors do you consider while stocking a brand of ice -cream, and rank them on a scale of 1 to 4, Where, 1 =Most important, 2=Import ant, 3=Average, 4=Slightly Important. Availability Margin Consumer Preference Other (Specify _____ _____ _____ _____

7. Which category of ice-cream is preferred by consumer? a. Family Packs b. Cups c. Cones d. Sticks e. Others

8. If the consumer asks you to suggest a brand of ice cream what would you Recommend and why?

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9. Are you satisfied with the service provided by the Amul? a. Yes b. No c. If No, Why?

10. What changes do you think should be done in Amul ice cream to make it much better?

Name of the ____________________________________________________ Location (Area):_______________________________________________________ Contact details (if _________________________________________________

store:

any):

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(B) Questionnaire for Consumers:

1) What are the occasions you prefer to eat Ice -Creams?

o Regularly, all year round o Regularly, only in summers o Occasionally, all year round o Occasionally, only in summers

2) Which Brands do you prefer?

o Amul o Kwality Walls o Vadilal o Dinshaws o Mother Dairy o Others o No specific Brand

3) Rank the attributes you consider while buying an ice cream on a scale of 1-5 Where, 1=Most Important, 2=Very Important, 3=Average, 4Slightl y Important, 5=Least Important.
o Convenience o Taste o Price o Availability o Flavors

___ ___ ___ ___ ___

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4) Rate the following brand of ice creams on a scale of 1 -5 on the basis of following parameters, 1 being the lowest and 5 being the highest Amul Taste Price Brand Packaging and Quantity Flavors Quality Kwality Walls Mother Dairy

5) Do you consume Amul ice-cream?

o Yes o No

If Yes, a) Rate AMUL Ice-creams on the following attributes:

o Quality

Excellent
o Taste

Very Good

Good Average

Excellent

Very Good

Good Average

o Price

Higher

Average

Lower

b) Do you think AMUL lives upto its tagline The Taste Of India
o Disagree o Neutral o Agree

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c) Any Other Suggestions for AMUL Ice-creams: If No, a) Reasons for not consuming AMUL as your preferred brands for Ice-Cream
o Does not taste good o Expensive o Not Available o Others (Please Specify)

6) Can you recall any Amul Ice-cream advertisement

o Yes o No

7) Are you aware of Amul parlour? a. Yes b. No

8) Do you like Amul Parlour? a. Yes b. No If No, Why?

Name: ________________________________________________________________

Gender: _____________________

Age:

below 15

15-20

21-30

31-40

Above 40

Contact Details (if any): _______________________________________ _____

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Bibliography

Websites: www.amul.com www.icecream.org http://www.newagepublishers.com www.indiatimes.com www.amuldairy.com www.amulicecream.com

Books: Philip Kotler, Marketing Management

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