Professional Documents
Culture Documents
PROJECT REPORT ON
“A Study on Penetration of Amul Milk in Retail
Outlets of Pune City”
This study was conducted from 8th June 09 to 8th August 09
At
Gujarat Co-operative Milk Marketing Federation
Ltd.
BY:
SUMEET SINGH JASROTIA
PGDM
OF
INDEX
ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for Kaira District
Co-operative Milk Producers’ Union Ltd., Anand. It has been an enriching
experience for me to undergo my summer training at AMUL, which would not have
possible without the goodwill and support of the people around. As a student of
ASIAN SCHOOL OF MANAGEMENT, PUNE I would like to express my sincere
thanks too all those who helped me during my practical training programme.
Words are insufficient to express my gratitude toward Mr. Pranil Yadav, the pune
head of AMUL.
At last but not least my grateful thanks is also extended to Mrs. Madhavi Khare
(Director’ ASIAN SCHOOL OF MANAGEMENT’ Pune) and my thanks to all my
faculty members for the proper guidance and assistance extended by them. I am also
grateful to my parents, friends, to encourage & giving me moral support.
However, I accept the sole responsibility for any possible error of omission and
would be extremely grateful to the readers of this project report if they bring such
mistakes to my notice.
DECLARATION
Date: Signature:
Designation:
Department of Marketing
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.
A retailer or retail store is any business enterprises whose sales volume comes
primarily from retailing.
It was found that due to low consumption of milk, there is no more awareness of
milk product here It was the major cause to the low selling of “Amul” milk product.
Like that penetration level in the outlet of milk product was low.
Finally the whole study of the research work, the company needs the effective
advertisement of the product in the local channel and print media for awareness of
“Amul” milk in the Pune city.
It helps to determine penetration level which can be used to influence large number of
retailers so as to increase the sales of the Amul milk effectively”.
EXECUTIVE SUMMARY
INDUSTRY PROFILE
Dairy is a place where handling of milk and milk products is done and technology
refers to the application of scientific knowledge for practical purposes. Dairy
technology has been defined as that branch of dairy science, which deals with the
processing of milk and the manufacture of milk products on an industrial scale.
The dairy sector in the India has shown remarkable development in the past decade
and India has now become one of the largest producers of milk and value-added milk
products in the world.
The dairy sector has developed through co-operatives in many parts of the State.
During 1997-98, the State had 60 milk processing plants with an aggregate processing
capacity of 5.8 million litres per day. In addition to these processing plants, 123
Government and 33 co-operatives milk chilling centers operate in the State.
Also India today is the lowest cost producer of per litre of milk in the world, at 27
cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take
advantage of this lowest cost of milk production and increasing production in the
country multinational companies are planning to expand their activities here. Some of
these 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.
India contributes to world milk production rise from 12-15 % & it will increase up to
30-35% (year 2020)
unions to develop and spread world wide through obtaining this knowledge. Specific
on market share, segmentation, size and growth in the US and global markets are also
helps industry to expand its market worldwide even small union also.
Development of Food Processing Industry:
The food processing industry sector in India is one of the largest in terms of
production, consumption, export and growth prospects. The government of accorded
it is a high priority, with a number of fiscal relieves and incentives, to encourage
commercialization and value addition to agriculture produce, for minimizing harvest
wastage, generating employment and export growth.
Food processing industry is providing backbone support to the milk industry.
The development food products by using milk can give good market opportunities to
produces milk.
Products and Industry Status:
The facts and figures here shown are calculated on the basis of percentage increases
pear year.
Chapter 1
INTRODUCTION AND HISTORY OF COMPANY
INTRODUCTION
AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative
movement in India. Headquartered in the small town of Anand, Gujarat, it is a brand
name managed by an apex cooperative organization, Gujarat Cooperative Milk
Marketing Federation (GCMMF). Specializing in dairy products, AMUL now takes
pride in having built the largest food product business in the country. Being a part of
the Gujarat Cooperative Milk Marketing Federation (GCMMF), AMUL is a sterling
example of cooperative achievement in the developing world. AMUL survives and
grows on the basis of cooperative culture, cooperative networking, market acumen
and respect for both producer and the consumer. Presently, it is the most popular food
brand of India.
HISTORY
Thus their cooperative unions were forced at the village and district level to collect
and sell milk on a cooperative basis, without the intervention of Government. Mr.
Verghese Kurien showed main interest in establishing union who was supported by
The Union looks after policy formulation, processing and marketing of milk,
provision of technical inputs to enhance milk yield of animals, the artificial
insemination service, veterinary care, better feeds and the like - all through the village
societies. Basically the union and cooperation of people brought Amul into fame i.e.
AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE
OF INDIA.
GCMMF Overview:
GCMMF is the India’s largest food products marketing organization. It is a state level
apex body of milk co-operatives in Gujarat, which aims to provide remunerative
returns to the farmers and also serves the interest of consumers by providing quality
products, which are good value for money.
VISION
The vision of AMUL is as follows:
To serve the interests of the milk producers
SALES TURNOVER
Sales turnover of GCMMF
AREAS OF OPERATIONS
Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA,
Bangladesh, Australia, China, Singapore, Hong Kong and a few South
SOME FACTS:
Annual Revenues : $1.33 billion USD
Members : 13 district cooperative milk producers` union
No of Employees : 2.7 million
No of village societies : 13,141
Total Milk handling capacity : 10.21 million liters per day
Annual Milk Collection : 2.69 billion liters
Daily Milk Collection : 7.4 million liters
Milk Drying Capacity : 626 Mts. Per day
Cattlefeed Manufacturing Capacity : 3090 Mts. Per day
ACHIEVEMENTS
AMUL has achieved the following landmarks.
CRISIL has assigned its highest ratings of “AAA” to the various bank
facilities of GCMMF
PLANTS
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee,
milk powder, flavored milk and buttermilk.
Today, twelve dairies are producing different products under the brand name Amul.
Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of
proud for Gujarat and whole India.
LOGISTICS
AMUL has the largest cold chain network in India (i.e. 18000 refrigerators) as
compared to any other company. The chemical components of milk are water, SNF
and solids. Milk is very perishable product so it has to be consumed within 24 hours.
In order to avoid wastage AMUL converts the milk in to SNF and milk solids by
evaporating the water, which comprises up to 60-70% of milk contents. This is
possible only if the distribution channel right from the producer to the consumer is
well organized. It will be surprising to know that AMUL makes even the ‘Sarpanch’
to eat pizza i.e. it supplies pizzas even to rural market.
specific market segments. This initiative is yielding results by way of ensuring wider
availability of our product range.
The role of distributors in our business process has never been more diverse or more
important, as it is today. As a matter of fact, we consider our Distributor to be the real
“Marketing Manager” of our organization. To enhance business performance of our
Distributors, a workshop on Marketing and Sales Management was designed in
collaboration with a premier business school. The objective of the entire initiative
was to upgrade the knowledge of our Distributors in terms of contemporary Business
Management Practices, so that they can perform well not only as our business partner
but also as Marketing Managers. During the year, 659 Distributors have undergone
this programme in 39 locations. Cold Storage is an extremely essential component in
the Federation’s distribution process.
COMPETITORS PROFILE
CHITALE DAIRY
Chitale Dairy bears the quality tag of the Chitale Group.The company manufactures
and markets highly functional products. These cutting edge products are
manufactured using state-of-the-art technology and find applications in day-to-day
transactions. Chitale dairy annual turn over of over Rs. 500 crores.
KATRAJ DAIRY
GOKUL
The Kolhapur District Co-operative Milk producers Union Ltd., Kolhapur was
established on 16th March 1963 under the Co-operative Act. It made a moderate
beginning by collecting 700 liters of Milk per day from 22 societies. Most success
stories have a humble begining & so have been with Kolhapur Zilla Sahakari Dudh
Utpadak Sangh Ltd.
On 16th March 1963 a spark stormed a fire to help the White Revolution revolt
heavily, when on this day came into being the “Kolhapur Zilla Sahakari Dudh
Utpadak Sangh Ltd” with the introduction of its popular brand of Gokul Milk & its
wide range of Dairy products in to the market. Gokul milk has 6, 05,000 litres
average sales per day.
ORGANIZATION STRUCTURE
Villagers
Chairman
Managing Director
General Manager
Amul is leaded by the director under him five branches viz. Factory,
Marketing, Accounts, Purchase, Human Resources Department.
Factory department has a separate general manager under him there are six
braches viz. Production, Stores, Distribution, Cold Storage, Quality, and
Deep-freezing. This department takes care of the factory work.
Marketing department has regional senior marketing manager and under him
there is a regional manager. This department takes care of the marketing
aspects of Amul.
Purchase department takes care regarding the purchase of raw materials and
many other things.
Chapter 2
OBJECTIVE AND SCOPE
A. PRIMARY OBJECTIVE
1. To find size of retail network of Amul Taaza and Amul Gold in specific
areas of Pune city or penetration level of Amul Milk in Pune city.
2. To find the problems faced by retailers in selling and storing.
3. To collect the information about the competitors
B.SECONDARY OBJECTIVE
1. To organize sale promotional activities to improve milk sales.
2. SCOPE OF PROJECT
The study carried out in Pune city so its scope is mainly limited to Pune city.
Chapter 3
RESEARCH METHODOLOGY
SAMPLING:-
SAMPLING TECHNIQUE USED
In this project the technique of sampling used was Judgment sampling. Judgment
sampling involves the choice of subjects who are most advantageously placed or in
the best position to provide the information required.
SAMPLE UNIT
In this project case sample were the retailers in Pune region & the aim was to know
the penetration level of Amul milk and the competitors present in the market.
SOURCES OF DATA
PRIMARY DATA
To collect primary data from Retailer’s Questionnaires were used. Questionnaire was
prepared very carefully so that it may prove to be effective in collecting the right
information.
SECONDARY DATA
Secondary data collected from different website. This secondary data formed the
conceptual background for the project. This secondary data was compared with the
primary data collected in area.
RESEARCH INSTRUMENT
The research instrument used in the project was Questionnaire to collect primary
information, it provided flexibility by using more close ended and few open ended
questions.
METHOD OF DATA COLLECTION
Information was collected by personally contacting retailers through interviews.
- Graphical analysis.
- Percentage analysis.
Chapter 4
DATA ANALYSIS AND INTERPRETATION
Yes
20%
Yes
No
No
80%
INTERPRETATION:
5 Ltr 0
1 Ltr 23
500 ml 32
250ml 0
0 5 10 15 20 25 30 35
No. of respondents
INTERPRETATION:
No. of
Answer
respondents
Absence of packaging date 6
No distribution 24
No replacement for
30
leakage
Absence of packaging
6
date
No. of respondents
INTERPRETATION:
• From above graph it is clear that half of the retailers were not satisfied with
Amul replacement and margin policy.
• Some retailers responded about absence of packaging date.
• Very less retailers complained about distribution network.
BRANDS RESPONDENTS
Amul 55
Chitale 107
Katraj 57
Gokul 6
Others 44
Others 44
Gokul 6
Katraj 57
Chitale 107
Amul 55
0 20 40 60 80 100 120
RESPODENTS
.
INTERPRETATION:
• The above graph shows that the Chitale is most preferable brand in all.
• Some retailers also prefers Katraj and others brands.
Other suppliers 3 5%
INTERPRETATION:
• Almost all retailers said that they purchased milk from Amul distributors.
No 21 38 %
No
38%
Yes
Yes No
62%
INTERPRETATION:
• Graph shows that most of the retailers were satisfied with the service
provided by the Amul distributors.
Price off 37 18
Free samples 13 42
Credit facility 16 39
Advertisement 49 6
P-O-P Displays 41 14
Coupons 50 5
INTERPRETATION:
• The graph shows that retailers were aware about the sales promotion activity
that Amul carried out, but some respondents were unaware about various
activities.
• Most of the retailers were aware about advertisement and coupons scheme
during festivals.
• Credit facility and free samples were not provided to single retailers.
ATTRIBUTE RESPONDENTS
Good quality 7
Clear packaging date 23
Availability 25
Availability 25
Good quality 7
0 5 10 15 20 25 30
RESPODENTS
INTERPRETATION:
• The question asked to the retailers where the Amul milk is being sale, and
tried to collect feedback of customers about Amul milk.
• More customers were having complaints about the clear date of packaging
and availability.
• Some customers were not happy with quality of milk.
Very good 37 48 34 5 0
Good 13 7 15 2 0
Average 5 0 0 48 0
Bad 0 0 6 0 0
Very bad 0 0 0 0 55
Total 55 55 55 55 55
60
0 0 0 0
5 7 6
50 0
13 15
40
30 48
55
48
20 37 34
10
2
5
0 0
Quality Brand image Availability Packaging Margin
INTERPRETATION:
From the above graph it can be concluded that
• QUALITY: Most of the retailers were satisfied with Amul milk quality.
• BRAND IMAGE: The graph shows that Amul is having good brand image.
• AVAILABILITY: Most of the retailers were satisfied with the Amul milk
distribution.
• PACKAGING DATE: Most of the retailers were not satisfied about not
printing of packaging date and they were facing a problem regarding same.
• MARGIN: All retailers were not satisfied with the margin policy given by
Amul.
2. Sinhgad road
• In case of Sai and Vaishali retail outlet they were not interested in Amul milk
selling but now they are selling 20 Ltr of milk daily. And they said if response
will remain same they will increase milk order.
Chapter 5
LIMITATIONS OF THE RESEARCH
• Time period of the project was 8 weeks, which may not be enough to
understand the whole market.
• Sample size (269) of project was too small as compare to total area covered.
• Respondent hesitate to give true response to question.
Chapter 6
FINDINGS OF THE RESEARCH
• Retailers are not interested because they don’t have storage facility but if
company provides them such facility they will be sale Amul milk.
• Because of low profit margin almost all retailers are not interested in Amul
milk selling.
• The 250 ml and 5 Ltr milk pouch are no available to the retailers for selling.
• On question, why retailers are not interested in selling of Amul milk, it is
found they were not happy with margin, availability and replacement of leak
pouches.
• Retailers were selling different brands. Because they were able to receive
more margin from non popularized brand that they could not from well known
brands.
• All retailers get Amul milk from company selected distributors.
• Measurable amount of retailers were not happy with the distributors, because
of frequent change in distributors and late delivery of milk.
• All retailers were familiar with sales promotion activities undertaken by
Amul. But more of the activities were not communicated by distributors. So it
shows that distributors are taking the advantage of such activities.
• Some questions were asked with view to convert retailers into distributors, but
due to low margin they denied that.
• I found that customers were complaining about the packaging especially
packaging date because Amul do not print packaging date on pouch.
• When question came to retailers ratings towards Amul milk rating most of the
most respondents complaining about profit margin and packaging date.
Chapter 7
SUGGESTIONS AND RECOMMENDATIONS
The Milk products market has reached Maturity stage in India large no. of Co-
operatives having a variety of product range has entered the market, thus there is one
way for Amul to sustain their milk business in the market by delivering outstanding
satisfaction to their retailers, so that they can take interest in selling of Amul milk
products. This can be done as follow
• Company should start printing packaging date on milk pouch.
• Amul has a relatively good distribution network, but still company is not able
to fulfill the demand of outlet in the peak season when demand is very high.
Here company should consider on the supply of product in the peak season.
• Supply should be regular to all the outlets including those that lie in the pocket
roads and not just in the outlets which lie on the easily accessible routes.
• 250 ml milk pouch should make available to retailers for selling, because
lower income family has intention to buy small pouch milk.
• Provide reasonable Margin to retailers as compared to competitors, this
motivates them to promote company’s milk and milk products.
• Improve delivery schedule to provide products on time for the retailers about
who claimed that Amul milk is not available to them on time.
• Incentives & schemes should be given to the retailers and some scrutiny
should be follow to check the scheme get being communicated properly by
distributors or sales person.
• Company should provide advertising facility like outside wall painting;
provide company’s stand boards, Posters which help to sell Amul milk.
• Provide consistent service to retailers as this will help gain company goodwill
in the market.
ANNEXURE
QUESTIONNAIRE
(Retailer Survey)
Name of the shop: __________________________________________________
Retailer Name: ____________________________________________________
Address: __________________________________________________________
a) Yes
b) No
2) If yes, what is the size of Amul milk packets do you preferred to store?
a) 250 ml
b) 500 ml
c) 1 Ltr
d) 5 Ltr.
3) If No, Why?
4) Which is the most preferable brand of packaged milk that you stock?
• Amul
• Chitale
• Katraj
• Gokul
• Others
a) Distributors
b) Other suppliers
a) Yes
b) No
a) Yes
b) No
a) Good quality
b) Packaging
c) Availability
a) Quality
b) Brand image
c) Availability
d) Packaging
e) Margin
AREA COVERED:
PRODUCT PROFILE
Milk is the “nature’s perfect food” for all ages. It has almost all the vital nutrients
need for the growth and well being of human body. Milk is the richest
natural source of calcium and essential amino acids, which is good for
bone formation. It is particularly beneficial for people recovering from
sickness, for sportsmen, for old people, for pregnant women and for
growing girls and boys. The doctor recommends a minimum daily
intake of 250 ml or more for every person.
Normal cow milk has 4% Fat and buffalo has 7% Fat. There is another important
constituent of milk is Solids Non Fat (SNF). This (or SNF as it is commonly called)
comprises of proteins, minerals, carbohydrates and vitamins. For mil to be
nutritionally balanced, it has to contain both Fat and Solids Not Fat in proportion.
The PFA act lays down standards of Fat and SNF for various types of milk, as
follows:
FAT SNF
1. Toned milk (Amul Taaza) 3.0% Min 8.5% Min
2. Full Cream Milk (Amul Gold) 6.0% Min 9.0% Min
3. Cow Milk (Amul Cow Milk) 3.5% Min 9.0% Min
Amul Milk is available in Pune and surrounding areas in Toned, Full cream and cow
milk varieties. Amul Milk strictly confirms to PFA standards. In fact we keep our
standards. In facts
We keep our standards higher so as to abundantly comply with the legal requirements
and to provide wholesome nutritive food to our consumers.
This means when you are buying Amul Milk you are sure to get the “nature’s perfect
food” for your family. You are sure to get your full 500 ml. in every pack. You are
sure of getting milk, which has longer life because of superior bacteriological quality
and state of art processing technology
The loose milk available from local vendors often does not confirm to PFA standards.
It often has less Fat and less Solid Non Fat then required. Remember that if your milk
contains 0.5% less Fat or SNF, you are paying up to one rupee per pouch extra.
Besides, it is not uncommon to find artificial preservatives, which are not permitted
by law being added to loss milk.
If you are buying cheap loose milk or even pouch milk, think again! By
compromising on the quality of milk, you may be depriving your children of essential
life-building proteins and nutrients that only pure and high quality Amul Milk will
give.
AMUL PRODUCTS
Bread Spreads
Amul Butter Amul Lite
Utterly Butterly Low fat, low Cholesterol
Delicious Bread Spread
Powder Milk
Amul Spray Infant Amul Instant Full
Milk Food Cream Milk
Still, Mother's Milk is Best Powder
for your baby A dairy in your home
Amulya Dairy
Whitener
The Richest, Purest Dairy
Whitener
Fresh Milk
Amul Fresh Milk Amul Gold Milk
This is the most hygienic
milk available in the
market. Pasteurised in
state-of-the-art processing
plants and pouch-packed
for convenience.
Cheese
Amul Pasteurised Amul Cheese Spreads
Processed Cheese Tasty Cheese Spreads in 3
100% Vegetarian Cheese great flavours..
made from microbial rennet
Gouda Cheese
For Cooking
Amul / Sagar Pure Cooking Butter
Ghee
Made from fresh cream. Has
typical rich aroma and
granular texture. An ethnic
product made by dairies with
decades of experience.
Desserts
Health Drink
Nutramul Amul Shakti
Malted Milk Food made Health Food Drink
from malt extract has the Available in Kesar-Almond
highest protein content and Chocolate flavours.
among all the brown
beverage powders sold in
India.