INTRODUCTION TO THE COMPANY

Thirty years ago the milk producers of Gujarat had come together and decided to create their own organization to enhance the marketing capacity of the dairy co-operative milk marketing federation limited (gcmmf ltd.). Mr. V. Kurien was the founder of this co-operative society and this society had been formed in a small village of Gujarat named Anand. Gujarat cooperative milk marketing federation (gcmmf ltd) is Indias largest food products marketing organization. It is a state level apex body of milk cooperative in Gujarat which aims to provide remunerative return to the farmers and also serve the interest of consumers by providing quality products which are good value for money. The vital statistics of the confectionery segment seem more promising than the conventional FMCG categories such as toilet soaps or detergents. While toilet soaps and detergents already reach over 90 per cent of the households, both chocolate and sugar confectioneries have abysmally low penetration levels. ORG-MARG estimates suggest that chocolates penetrated just 5 per cent of the Indian households in 2000. On the other hand, sugar-boiled confectionery reaches 15 per cent of the households, leaving ample room for growth. Even considering the urban market alone, the category reaches just 22 per cent of the urban consumers.

This category, therefore, has considerable potential to grow before it reaches saturation point -- as have traditional FMCG products such as soaps and detergents. Chocolates and sugar-boiled confectionery boast of even lower penetration levels than biscuits, which reach 56 per cent of the households. The Indian confectionery market is segmented into sugar-boiled confectionery, chocolates, mints and chewing gums. Sugar-boiled confectionery, consisting of hard boiled candy, toffees and other sugar-based candies, is the largest of the segments and valued at around Rs 2,000 crore.

Cadbury India and Nestle India also made a foray into this segment five years ago and have a small presence. Chocolates make up a 22,500-tonne market which is valued at Rs 400 crore and dominated mainly by listed players Cadbury India and Nestle India. But slipping volumes However, despite its unmistakable potential, the major players in the confectionery industry have not fared too well in recent times in terms of sales growth. Take the chocolate segment. Cadbury India, which derives nearly 76 per cent of its revenues from chocolates and sugar confectionery, has seen its top line growth wind down from 19 per cent in 1999 to 12 per cent in 2000 and further to 7 per cent in the first six months of 2001. Nestle India has managed to report healthier sales and profit growth, but this is more on account of the contribution from milk, coffee and culinary products rather than sugar or chocolate confectionery.

HISTORY

Amul birth is indelibly linked to the freedom movement in India. It was Sardar Vallabhbhai Patel who said that if the farmers of India are to get economic freedom then they must get out of the clutches of the middlemen. The first Amul cooperative was the result of a farmers meeting in Samarkha (Kaira district, Gujarat) on 4 January 1946, called by Morarji Desai under the advice from Sardar Vallabhai Patel, to fight rapacious milk contractors. It was Sardars vision to organize farmers, to have them gain control over production, procurement and marketing by entrusting the task of managing these to qualified professionals, thereby eliminating the middlemen, the bane in farmers prosperity. The decision was taken that day in January 1946. Milk producers cooperatives in villages, federated into a district union, and should alone handle the sale of milk from Kaira the government run Bombay Milk Scheme. This was the origin of the Anand pattern of cooperatives. The colonial government refused to deal with the cooperative. The farmers called a milk strike. After fifteen days the government capitulated. This was the beginning if Kaira District Cooperative Milk Producers Union Ltd., Anand registered on 14 December 1946. Mr. V.Kurien was the founder of this cooperative society. This society had been formed in a small village of Gujarat named Anand. Originally the Anand pattern included dairy cooperative societies at the level. Inspired by the Kaira Union, similar milk unions came up in the other districts too. In 1973, in order to market their product more effectively and
4

economically, they formed the GCMMF Ltd. GCMMF become the sole marketer of the original range of Amul products including milk powder and butter. That range has since grown to include ice cream, ghee, cheese, chocolates, shrikhand, paneer, and so on. These products have made Amul a leading food brand in India. The brand name AMUL, has taken from the Sanskrit Amoolya, meaning priceless, was suggested by a quality control expert in Anand. The first products with the Amul brand name were launched in 1955. Since then, they have been in use in millions of home in all parts of India and beyond. Today Amul is a symbol of many things: of high quality products sold at reasonable price, availability, service. Amul is the brand name of two million farmers, members of 10,000 village dairy cooperative societies throughout Gujarat. This is the heart of Amul; it vis what is so special about the Amul saga. Amul in 1946 was really an effort to carve out a truly Indian company that would have the involvement of millions of Indians and place direct control in the hands of the farmers. It was a mandate for producing, owning and marketing and above all, building your own truly Indian Brand. Amulss birth was thus a harbinger of the economic independence of our farmer brethren. Today, 173 milk producers cooperative unions and 22 federations play a major role in meeting the demand for packed milk and milk products. Quality packed milk is now available is more than 1,000 cities throughout the length and breadth of India. Amul, therefore, is a brand with a difference. That difference manifests itself in a larger than life purpose. The purpose freedom to farmers by giving total control over procurement, production and marketing.

PRODUCT PROFILE
Bread spreads: Amul Butter Amul Lite Low Fat Bread spread Amul Cooking Butter Cheese Range: Amul Pasteurized Processed Cheddar Cheese Amul processed Cheese Spread Amul Pizza (Mozzarella) Cheese Amul Shredded Pizza cheese Amul Emmental Cheese Amul Gouda cheese
Amul malai Paneer(cottage cheese),Frozen, Refrigerated and Tinned

Utterly Delicious Pizza Curd Products: Yogi Sweetened Flavored Dahi (Dessert) Amul masti Dahi (Fresh cured) Amul Butter Milk Amul lassee
6

Milk Drink: Amul cool flavored Milk Amul Cool Kesar Amul Cool Elachi Amul Cool Coffee Amul Cool Rose Amul Cool Strawberry Amul Cool Mango Health Beverage: Amul Shakti White Food Mithaee Range (Ethnic Sweets): Amul Shrikhand (Mango,Saffron,Almond Pistachio,Cardamon) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamuns Mix Amul Mithaee Kulfi Mix Avsar Ladoos UHT Milk Range:

 Amul Shakti 3% fat Milk Amul taaza 1.5% fat Milk Amul Gold 4.5% fat Milk Amul Lite Slim & Trim Milk 0% fat Milk Amul Shakti Toned Milk Chocolate & Confectionery: Amul Milk Chocolate
Almond Bar

Chocozoo

Milk Powder: Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Fresh Milk: Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardized Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat
8

PRODUCT SPECIFICATION

Composition: Milk Fat 2% Sugar 55% Total Fat 32.33% (Milk Fat + Cocoa Fat) Cocoa Solids 7.5% Milk Solids 20%

SALES FIGURE

Sales Turnover
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Rs. (Million)
13790 15540 18840 22192 22185 22585 23365 27457 28941 29880

sales turnover
35000 30000 Rs. million 25000 20000 15000 10000 5000 0 Rs. (M illion) year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

ORGANIZATIONAL STRUCTURE
BOARD OF DIRECTOR
10

MANAGING DIRECTOR CHIEF GENERAL MANAGER

ASSISTANT GENERAL MANAGER

DEPUTY EXCECUTIVE

ASSISTANT EXECUTIVE

SENIOR EXCECUTIVE

JUNIOR EXCECUTIVE

FIELD SALES REPRESENTATIVE

DISTRIBUTION CHANNEL

11

MEMBER UNION (PLANT)

DEPOT GODOWN

DISTRIBUTOR

RETAILERS

CONSUMER

INTRODUCTION TO THE PROJECT

INTRODUCTION TO THE STUDY
12

The only listed player in sugar-boiled confectionery has not done too well either. Parrys Confectionery, a leading player in sugar-boiled confectionery, has reported shrinking sales volumes in 1998-99 and 1999-2000, after robust financial performance in earlier years. Screeching to a halt these top line numbers only reflect the ground realities. Industry sources estimate that the 22,500-tonne chocolate market, which grew at a robust 12 per cent per annum until 2000, grew by just three per cent in that year. Several factors appear to behind this slowdown. As with all other FMCG products, the demand for confectionery products appears to have been hit by the economic slowdown and the consequent shrinkage in consumer spending. Confectionery products are impulse foods and thus appear to have borne the brunt of a cutback in consumer spending over the past couple of years, while staple foods have continued to exhibit healthy growth rates. This is evident from ORG-MARG figures which suggest that the annual per capita consumption of chocolates actually fell from 312 grams in 1999 to 307 grams in 2000, while that for sugar boiled confectionery fell from 621 grams to 579 grams (source: ORG-MARG Milestone Papers: The Growth Inertia). Branded staples such as Atta and Salt registered a healthy increase in per capita consumption over this period. No price hikes

Despite fairly aggressive promotional efforts by marketers, the overall penetration level for chocolates registered no increase between 1999 and 2000.

13

Consumption of chocolates could have been impacted by the selling price increases that marketers affected between 1999 and 2000. In 1999 and 2000, selling prices of key chocolate brands were pegged up by 5-15 per cent, partly reflecting a spike in cocoa prices in that period. This probably contributed to the sales growth for the year. However, with cocoa prices falling sharply in the second half of 2000, marketers were forced to maintain selling prices of most products, holding back value growth in sales. Cadbury India, the market leader in the chocolate segment (market share 71.9 per cent) saw the growth in its chocolate portfolio slow to 6 per cent in the April 2000 to April 2001 period, from nine per cent the previous year. This was mainly due to the healthy double digit growth rates in its flagship brand -- Cadbury's Dairy Milk. Brands such as 5 Star and Perk stagnated in 2000-01. Nestle India's chocolate portfolio (comprising of Kit Kat, Munch and Charge commanding a total market share of 24.7 per cent) slowed even more dramatically, registering less than one per cent growth between April 2000 and April 2001. Though Nestls recent launch, Munch, has been a success, the low-priced brand has moderated the value growth in Nestls portfolio. Wooing adults now The Avenue for growth appears to lie in taking advantage of the low penetration level for chocolates by roping in new consumers. The chocolate majors attempted to do this by repositioning chocolate, earlier targeted at children, as a snack food for adults. Cadbury's chocolate-coated wafer Perk and Nestls Charge and Munch were essentially sold on this platform.

14

Though products such as Perk did succeed initially (Cadbury India claims to have added eight million new consumers in 2000), growth in this segment appears to be petering out. Both Perk and Kit Kat (the chocolate-coated wafer which is central to Nestls chocolate portfolio), have shown signs of stagnation in 2001, actually reporting negative growth rates for a few of the months. Banking on smaller editions Of late, the chocolate majors have been resigning their products to launch chocolates in the Rs 10 and Rs 5 price points. Mimicking the trend in other FMCG products, the chocolate majors have been relaunching their conventional chocolate brands in smaller unit packs, hoping that this will prompt more frequent purchases and pep up volume growth. The past year has seen a slew of such launches, the 18-gram version of 5 Star (retailing at Rs 5), and the 15-gram version of Cadbury Dairy Milk (Rs 5), Perk Slims (Rs 5), Cadbury CheckboxS (a chocolate biscuit combination priced at Rs 5), Nestle Crunch (a mini snack at Rs 6) and Nestle Munch (Rs 5). It is early days yet to judge if this has indeed pepped up volume growth in the segment. However, the chocolate majors do not have much to lose. Unlike the low unit pack versions of products such as shampoos, the low unit packs of chocolates do not cost less on a per gram basis than their normal versions.

SIGNIFICANCE OF THE STUDY

Any Research has its own importance in any business organization. The

research shows the real fact about product as well as organization. Research is
15

a systematic and scientific investigation of any abstract from a continuous basis for learning , exploratory or descriptive.

idea either precise or it could be either

According to above definition research is a systematic and scientific investigation through which any organization try to find out its strength and weakness as well as opportunity and threat. As we know in the present era the business activities have become more complex and complicated due to modern technology , globalization and liberalization and in other hand today customer are highly conscious about time customers are not products and brand .In recent blind follower of a product.

They are giving high priority to all feature like price, quality, innovative features etc. But after all this features brand becomes the inevitable parts of any product because it gives the complete identification of product so it is also the one most important part. My research work is highly focused on this issue, which is important for me as well as the organization. During research work I learnt affect retailers opinion about product and services. I learnt which factors the retailer to sale an individual product, this research gives me

insight to understand the retailers problem as well their area of interest , in this I got the great experience about the market

For company point of view I tried to find the serious drawback, which is highly, affected the sale of chocolates. I tried to find market share of Amul chocolate which is itself important .I tried to find the sale figure of Amul chocolate in term of rupees, due to some hurdle I dont claim
16

my

research work is 100% accurate because so many factors was

uncontrolled during the project .I tried to finish my research with 100% accuracy which is best available in market . So it is my strong believe that my research work is significant in all manners. This research is helpful for organization, retailers as well as consumer.

PROBLEMS OF THE ORGANIZATION

It is not a hidden fact the Amul has its own image or brand which shows the value of money for its product. The AMULS have a great product
17

line and depth. AMULS products are Amul Butter, Amul Cheese Amul confectionery, Amul Flavored Milk and Pasteurized milk, Dahi, Lashi, Icecream, etc. If we give a overall look on the all market position of AMULS product almost all product have a grate market share in other hand all product are market leader with there grater sales volume and high turn over, for example AMUL Butter, AMUL Flavored milk, AMUL Mogerella chess. But in case of AMUL Chocolate the position of AMUL is not satisfactory. It is generally consider AMUL is in the 3rd position after CADBURY and NESTLE. Both the company has separate distribution channel for chocolate, they are giving high priority to confectionery products. They are providing easy replacement, high penetration, and regular visit to retailers shop. Most importantly they are providing cool storage equipment to their retailers and them positioning their product through heavy advertisement campaign. Recently the AMUL Chocolate is re-lunched in market but the position remains same, which is very critical for the company. After re-lunched, the sale volume and customer awareness about the all chocolate products remain unsatisfactory, which create harsh situation for all organization. Company highly willing to excel in the chocolate field there are some problem, which is adversely influence the organization.

There are some problems, which is as follows: Competitors position in market

18

 Vast distribution channel which deals almost all product Replacement Retailer satisfaction level

OBJECTIVE OF THE STUDY

19

The primary objective is To analysis the market position of Amul products.

The other objectives is To find out the customer satisfaction about Amul products. To analysis Retailer opinion about product and services.

LIMITATIONS OF THE STUDY

Although all efforts were taken to make the result of survey as accurate as possible the survey had the following constraints:
20

 Retailers are not willing to give answers of the questions due to their busy schedules. Retailers hide the facts especially in the sales figure. A few retailers were not cooperating during the project survey. It was quite difficult to collect necessary data. Due to the time constraint and other imperative workload during the training period it could not be made possible to explore more areas of concern pertaining to project study.
The employee of Amul India limited was very hesitant and reluctant to

give all information which was vital for my project work because some information were confidential in nature.

21

RESEARCH METHODOLOGY
RESEARCH RESEARH IS SEARCH FOR KNOWLEDGE OR RESEARCH IS SYSTEMATIC EFFORTS TO GAIN KNOWLEDGE.

RESEARCH DESIGN A RESEARCH DESIGN IS THE FRAMEWORK OR PLAN FOR A STUDY WHICH IS USED AS A GUIDE IN COLLECTING AND ANALYZING THE DATA COLLECTED. TYPE OF RESEARCH DESIGN: Different types of research design have emerged on account of the different perspectives from which a research study can be viewed. There are three fundamental categories that we used frequently are given below. Descriptive research design Exploratory research design Experimental research design In this project I have used descriptive research design because it describes new ideas and events. It is flexible and easily modify in nature.

22

DATA COLLECTION:To achieve the objectives, the primary as well as secondary source of data is used... Primary source includes the retailers and companys officials through questionnaires. Secondary source of data includes the past records of company. The data were collected through the following methodical techniques in the present project work. 1. Through questionnaires 2. Through interview 3. Through observation

23

TYPES OF DATA COLLECTION There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources. PRIMARY SOURCES These include the survey or questionnaire method, telephonic interview as well as the personal interview methods of data collection. In this project I have used questionnaire and telephonic interview as primary source.

SECONDARY SOURCES These include books, the internet, company brochures, product brochures, the company website, competitors websites etc, newspaper articles etc. In this project I have used internet, company brochures, product brochures, and the company website as a secondary source.

24

RESEARCH METHODOLOGY

RESEARCH DESIGN

DESCRIPTIVE

RESEARCH APPROACH

SURVEY

CONTACT METHOD

PERSONAL INTERVIEW

SAMPLE SIZE

100

SAMPLING CRITERIA

RANDOM SAMPLING (CONVIENEANCE SAMPLING)

RESEARCH INSTRUMENTS

QUESTIONNAIRE (SCHEDULE)

TYPE OF DATA COLLECTED

PRIMARY DATA SECONDARY DATA

AREA OF RESEARCH

DELHI MARKET

25

REVIEW OF EXISTING LITERATURE

SOURCE 1 WEBSITES http://www.thehindubusinessline.com/bline/2007/06/21/storie s/2007062100590600.htm Amul set to launch seven new chocolate variants Plans 1,000 `Utterly Delicious' outlets in five years NEW DELHI, June 6 AMUL is set to go the whole hog to pamper your sweet tooth. It is taking on chocolate majors Nestle and Cadbury by launching seven new chocolates within the current year. The Rs 2,748-crore Gujarat Co-operative Milk Marketing Federation (GCMMF) had very recently introduced three chocolate brands under Amul in the market Rejoice, Kite Bite and Nuts `bout you.

SOURCE 2 http://www.thehindubusinessline.com/bline/2007/06/11/stories/2007061100590 600.htm Amul launches cooking chocolate Nation-wide rollout planned in July It has just rolled out a new brand Amul Chef, a cooking chocolate, making it the first ever branded cooking chocolate to be made available in the Indian market.

26

The product is currently being rolled out in the markets of New Delhi and Mumbai. "Though, cooking chocolate is available in the market, it is offered only as a commodity, not as a branded product," Mr. S.K. Panigrahi, General Manager (Marketing), Amul, said.

SOURCE 3

http://www.blonnet.com/2003/12/27/stories/2003122700091100.htm Amul to launch value-added milk THE Gujarat Co-operative Milk Marketing Federation (GCMMF) is working on a major image-make over for good old milk and reaching for that glass of milk could just be the most stylish thing to do to work your way to health, the coming summer.

SOURCE 4

http://financial-fidelity.blogspot.com/2007_04_04_archive.html NEW DELHI/MUMBAI: Chocolate maker Hershey has left a sour taste in Amuls mouth. It seems that the US choco maker was wooing Indias premier milk co-operative for a possible distribution alliance even as it was seeking government permission to strike a joint venture with Godrej Beverages and Foods.

27

SOURCE 5 http://www.blonnet.com/2003/12/27/stories/2003122700091100.htm AMUL PLANS TO OVERSEAS Amul is the largest food brand in India and world's Largest Pouched Milk Brand [4] with an annual turnover of US $868 million (2005-06) [5]. Currently Amul has 2.41 million producer members with milk collection average of 5.08 million liters/day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets [6]. Other potential markets being considered include Sri Lanka

SOURCE 6
http://www.thehindubusinessline.com/bline/2007/06/11/stories/2007061100590 600.html. Amul History Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand. Some cite the origin as an acronym to (Anand Milk Producers Union Limited). The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity

28

CONCEPTUAL DISCUSSION ON PROMOTION

Seeing the cold war in the chocolate industry the company had to decide to go one step ahead to beat the competition and to promotion activity to Amul Chocolate. WHY PROMOTION ACTIVITY? Now days dealers are expecting the promotion activity for availability of the product at the right time is vary important. It happens where dealers will be least care about the brand availability by offering this promotion activity Cadbury will be able to hit the minds of dealers and again this activity will also helps in improving the image of Cadbury where it is weak, as well as the specialties like dairy milk etc. CUSTOMER FOCUSED MARKETING The logical strategic point is to understand how logistical competency contributes to marketing performances. Firms guided by market opportunity view satisfaction of the customer as the motivation behind of the entire activities. The objectives of marketing initiatives are to penetrate chocolate market and generate profitable transaction. This posture often referred to as the marketing concept emerged as part of the buyer-dominated market hence the attention is directed to their fundamental concepts.

29

RETAILER SATISFACTION Retailers satisfaction means not an end in itself it is the means fulfilling the need of the retailers and leads us to the their major distinguishing feature of the marketing concept emphasis that it is not enough if a firm has consumer orientation, it is essential that such an orientation leads to retailers satisfaction. The concept underscores that no firm can afford to ignore the satisfaction of the retailers. It counters the temptation of short sighted attitude toward retailers satisfaction. WHY MEASURE RETAILER SATISFACTION? The average business lose between 15% and 30% of its retailers each year, often without knowing Which retailers they have lost. When they were lost How much sales and profit retailer has cost them. Research has demonstrated conclusively that if is a for more costly to win a new retailer than it is to maintain an existing one. Measure retailers satisfaction and acting appropriately on the result, will increase profitability. Not taking action allows your retailers base to decay which permitting your completion to gain market share. How am I doing? Posing that question demonstrated the question of openness, courage and a willing to change. American business increasingly ask their customer similar question and the extension service should be doing the same entrepreneur Tom Leonarm reminds us of an excepted marketing principal that says that it costs five times as much many to get a new customers
30

into a store than it does to keep an old happy. I perhaps thats way Leonard and many other business people, and here uncompromisingly to a corporate policy of:

Rule 1 : The customer is always right Rule 2 : If your customer is even wrong reread Rule 1

RETAILER BUYING BEHAVIOUR The main aim of marketing is to be met and satisfy target retailer need and wants. The fields of retailer behavior study how individuals groups and organization select buy-sell the goods to increase their sale and to earn profit. Understanding retailers behaviors and knowing retailer is a never simple retailer may state their needs and wants but act otherwise. They may not be in touch with deeper motivation. They many respond to influences that change their mind at the last minute. Nevertheless marketers must duty their target retailers and customer wants preparation preference shaping and buying behavior. The retailer responds with certain observable buyer responses, including product choice brand choice purchase timing and purchase amount. Marketer must understand how retailers buying behavior are an affected by a buyers particular characteristics and personal decision process buyer characteristics includes four major basis components, culture, social personal and psychological factors. Culture is the most basis determinant of a persons want and behavior. It includes the basis value; perception, preferences and social factors also influence buyer behavior. Product and brand choice are strongly affected by a persons reference group, including family, friend, and personal factors such as age and life cycle stage, occupation, economic situation, and personality also influence buying decision finally retailer
31

behavior is also influence by four major psychological factors motivation, perception, learning and beliefs and attitudes. Some buying decision involve only and decision-maker but in other decision several retailer may participate by playing different buying roles. This role includes initiator influences, decider buyer and user in some cases different person plays each of these roles but in other decisions the same person may take on several distinct roles. These are four different types of buying decision behavior. The type of decision behavior employed is affected by complexity of the buying situation the number of participants and the amount of buying effort required, the level of buyer involvement and the degree of different among brands Retailers may engage in complex, dissonance reducing habitual or Varity seeking buying behavior. Marketers can be more effective than they understand the type of buying behavior their retailers is must like to employ before making a purchase, consumer go through a decision process consisting of need recognition information search and evaluation of alters natives the purchase decision and post purchase behavior. The marketers job is to understand the buyers behavior at each stage and the influence that are operating. This allows the marketer to develop significant and effective marketing programs for that target market. The buyer decision for new products add additional complexity retailer passing through the stage of an awareness, interest, evaluation, trail and finally adopting. Retailers respond to new products at different rates depending upon individual differences in innovativeness. Whether they are innovators, early adopter, early majority, late majority or laggards.

32

Finally the characteristics or the new product itself relative advantage, capability, complexity, divisibility and communicability will affect the rate of adoption. Retailer behavior is complex and difficult to understand ever familiar country marketers who must deal with consumer behavior across international borders face an additional challenge. Retailer in different countries may very dramatically in values, attitudes and behavior. These different oftensignificant changes in products and marketing programmers to achieve success in international markets. RETAILERS EXPECTATION The main points that have emerged in the survey are: Around 90% of the retail markets are ready for Amul chocolate as they have fait in Amul brand. The retailer expected the following facilities from Amul. 1 FREEZER: All the chocolate company viz. Cadbury and nestle give their own freezers and the retailers are not allowed to stock other companys product in it. The freezer now being provided by Cadbury is two types. The first serve the dual purpose of storage and also a display counter as they come with a transparent glass. According to the retailers these freezer have added
33

to their sales now the customer can actually see that various chocolate kept inside further these chocolate operate on only 100 watts of electricity can on an inverter too and the chocolate does not melt up to a long time. The second type of freezer is the rack freezer. The deposit taken generally depends on size and the kind of freezer taken but in certain cases I found out that the retailer differ and tend to be flexible with the amount of sales given by that particular retailers. 2. ADVERTISING: This is another factor that affects the retailers a lot. All the major player and especially Cadbury take special care in this respect. Nestle also does the advertising but not as Cadbury. Amul has to taken aggressive advertising countered especially at Delhi market. The retailers have Cleary stated that they would first see the demand of the product in the market coupled with advertising support from the company and only them they would be interested in stocking Amul chocolate. 3. REPLACEMENT POLICY :Amul is already blamed for poor replacement policy and with two major players giving this policy. Amul has to giving certain kinds of replacement policy to make its product more acceptable to the retailers for instance Cadbury gives 100% replacement for product defects and around 80% replacement for damage due to some the time taken by the company to reimbursement

4.

QUALITY AND DEMAND:34

Big retailers said that they would keep the product only when the customer demands for it. There policy and other retailer said that the quality of chocolate should be good and should be in more verity.

5. PROPER DISTRIBUTION:Cadbury have sound distribution system. They give their dealer a lot of monetary benefits through schemes and dealers in turn taken care of proper distribution. Dealer is gifted on achieving sales target. The dealers also take care of malignance of freezer in the event of these to repair the freezer.

6.

SCHEMES:During the festival season viz. rakha-bandan, depawali, and other

religious function Cadbury promote their product by giving special offer to there retailer as well as to there customer. In this time every company try to maximize there sale and advertise there product in same way so Amul should try to do in this line too.

35

DATA ANALYSIS AND INTERPRETATION

MOST POPULAR KIND OF CHOCOLATE
SR. NO. 1 2 3 4 S PRODUCT Canndy Bar Toffee OTHERS RESPONDENTS 8 66 17 9 PERCENTAGE 8 66 17 9

INTERPRETATION:Bar is most popular in consumer with 66; Toffee is the second popular chocolate in consumer with 17% following to the bar, 8% People like candy following to the toffee, 9% people like all kind of chocolates

CUSTOMER PERCEPTION WHILE PURCHASING

SR. NO. 1 PRODUCT FLAVOUR 36 RESPONDENTS 66 PERCENTAGE 66

2 3

GIFT BOTH

4 30

4 30

CUSTOM ER PERCEPTION WHILE PURCHASING

30%

Flavour

4%

Gift

66%

Both

INTERPRETATION:While Purchasing Chocolate 66% Customer Prefer Flavors, Only 4% Customer Prefer Gift as a Chocolate, 30% Customer Prefer Both Flavor and Gift While Purchasing Chocolate.

37

TIME FOR CHOCOLATE

SR. NO. 1 2 3 TIME AFTER MEAL PARTY/BIRTHDAY ANYTIME RESPONDENTS 4 8 88 PERCENTAGE 4 8 88

TIME FOR CHOCOLATE 4% 8%

After meal Party/Birthday Any Time 88%

INTERPRETATION:88% Customer Prefer Chocolate At Anytime, Only 8 % Customer like Chocolate During Party or Birth day ,Only 4% Customer Like Chocolate After Meal.

38

FLAVOUR PREFERENCE
SR. NO. 1 2 3 4 5 6 7 8 PRODUCT MILKY COFFY FRUIT-N-NUT MILKY+COFFY MILKY+FRUIT-N-NUT COFFY+FRUIT-N-NUT ALL OTHER RESPONDENTS 22 26 22 2 12 8 2 22 PERCENTAGE 22 26 22 2 12 8 2 22

FLAVOUR PREFERANCE
2% 6% 8% 12% 2% 26% 22% 22% Milky Coffee Fruit-n-Nut Milky+Coffe Milky+Fruit-n-Nut Coffee+Fruit-n-Nut All Other

INTERPRETATION:According to Survey 22% Customer Prefer Milky Flavor, 26% Prefer Coffee, 22% Prefer Fruit-n-Nut,2% Prefer Milky and Coffee, 12% Prefer Milky and Fruit-n-Nut,8% Prefer Coffee and fruit-n-Nut, 2% prefer All Flavors and only 6% Prefer Other Flavors

39

FIRST PREFERENCE OF CHOCOLATE

SR. NO. 1 2 3 4 BRAND AMUL CADBURY NESTLE OTHERS RESPONDENTS 8 66 17 9 PERCENTAGE 8 66 17 9

FIRST PREFERANCE OF CHOCOLATE

13%

6%

15% Amul Cadbury Nestle Other 66%

INTERPRETATION:66% customer prefer Cadbury as a first preference, 15% customer prefer Amul as a first preference, 13% customer prefer Nestle as a first preference, 6% customer prefer other as a first preference

40

SECOND PREFERENCE OF CHOCOLATE

SR. NO. 1 2 3 4 BRAND AMUL CADBURY NESTLE OTHERS RESPONDENTS 14 38 28 20 PERCENTAGE 14 38 28 20

SECOND PREFERANCE OF CHOCOLATE

20%

14% Amul Cadbury Nestle Other

28%

38%

INTERPRETATION:38% customer prefer Cadbury as a second preference, 28% customer prefer Nestle as a second preference, 20% customer prefer Amul as a second preference, 14% customer prefer other as a second preference

41

WEEKLY PURCHASE
SR. NO. 1 2 3 RANGE BELOW RS-50 RS 50-100 ABOVE RS-100 RESPONDENTS 70 20 10 PERCENTAGE 70 20 10

WEEKLY PURCHASE(IN RS/-)

10% 20% Below Rs/- 50 Rs/- 50 -100 Above Rs/- 100 70%

INTERPRETATION:70% customer spend below Rs/- 50 on chocolate, 20% customer spend Rs/- 50-100 on chocolate, 10% customer spend above Rs/- 50 on chocolate

42

AWARENESS OF AMUL CHOCOLATE IN CUSTOMER

SR. NO. 1 2 3 4 5 AMUL CHOCOLATE MILK CHOCOLATE ALMOND BAR BINDAAZ FUNDOO CHOCOZOO RESPONDENTS 58 23 4 5 10 PERCENTAGE 58 23 4 5 10

AWARENESS OF AMUL CHOCOLATE IN CUSTOMER

10% 5% 4%
Amul Milk Chocolate

23%

58%

Almond Bar Bindaaz Fundoo Chocozoo

INTERPRETATION:58% customer are well aware about the Amul milk chocolate, 23% customer are well aware about the Almond Bar, 10% customer are well aware about the Choc zoo, 5% customer are well aware about the Fun doo, 4% customer are well aware about the Banda

43

DATA ANALYSIS OF RETAILERS

Penetration of Chocolate

120

100

96 94 95

98 92 85 82 70 71 64 65 80 68 72

Percentage of Retailer

80

60

52

40

North Delhi south Delhi East delhi Wes Delhi Central Delhi

20

Company Name

INTERPRETATION:92 - 98% customer sale Cadbury chocolate, 70-85% customer sale Nestle chocolate, 52-72% customer sale Amul chocolate

44

Penetration of Amul Chocolate 120 100 80 Percentage 60 40 20 0 Milk Chocolate Almond bar Bindaaz Items Chocozoo Fundoo 40 38 30 23 10 12 7 13 40 35 60 50 42 38 35 40 20 53 38 99 98 97 92 89 North Delhi south Delhi East delhi Wes Delhi Central Delhi

15

INTERPRETATION:89-99% customers are well aware about the milk chocolate., 10-40% customers are well aware about the Almond bar., 7-50% customers are well aware about the Bindaaz.13-42% customers are well aware about the Choc zoo., 15-60% customers are well aware about the Fun doo.

45

PROCUREMENT OF AMUL CHOCOLATE (EAST DELHI)

SR. NO. 1 2 3 TYPE OF CHANNEL DISTRIBUTOR WHOLESALER BOTH RESPONDENTS 29 23 48 PERCENTAGE 29 23 48

Procurment of Amul Chocolate(East Delhi )

29% 48%

Distributor WholeSaler Both

23%

INTERPRETATION:Procurement of Amul Chocolate through Distributor in East Delhi is 29%, Procurement of Amul Chocolate through wholesaler in East Delhi is 23%, Procurement of Amul Chocolate through Distributor and Wholesaler in East Delhi is 48%

46

PROCUREMENT OF AMUL CHOCOLATE (NORTH DELHI)

SR. NO. 1 2 3 TYPE OF CHANNEL DISTRIBUTOR WHOLESALER BOTH RESPONDENTS 70 13 17 PERCENTAGE 70 13 17

Procurment of Amul Chocolate (North Delhi)

17% 13% Distributor WholeSaler Both 70%

INTERPRETATION:Retailer Procure 70% Amul Chocolate from Distributor in North Delhi., Retailer Procure 13% Amul Chocolate from Wholesaler in North Delhi., Retailer Procure 17% Amul Chocolate from Distributor and Wholesaler in North Delhi.

47

PROCUREMENT OF AMUL CHOCOLATE (SOUTH DELHI)

SR. NO. 1 2 3 TYPE OF CHANNEL DISTRIBUTOR WHOLESALER BOTH RESPONDENTS 72 9 19 PERCENTAGE 72 9 19

Procurment of Amul Chocolate(South Delhi)

19% 9% Distributor WholeSaler Both 72%

INTERPRETATION:Retailer Procure 72% Amul Chocolate from Distributor in South Delhi. Retailer Procure 9% Amul Chocolate from Wholesaler in South Delhi. Retailer Procure 19% Amul Chocolate from Distributor and Wholesaler in South Delhi.

48

PROCUREMENT OF AMUL CHOCOLATE (WEST DELHI)

SR. NO. 1 2 3 TYPE OF CHANNEL DISTRIBUTOR WHOLESALER BOTH RESPONDENTS 31 52 17 PERCENTAGE 31 52 17

Procurment of Amul Chocolate(West Delhi)

17%

31% Distributor WholeSaler Both

52%

INTERPRETATION:Retailer Procure 31% Amul Chocolate from Distributor in West Delhi. Retailer Procure 52% Amul Chocolate from Wholesaler in West Delhi. Retailer Procure 17% Amul Chocolate from Distributor and Wholesaler in West Delhi.

PROCUREMENT OF AMUL CHOCOLATE (CENTRAL DELHI)

SR. NO. 1 TYPE OF CHANNEL DISTRIBUTOR 49 RESPONDENTS 27 PERCENTAGE 27

2 3

WHOLESALER BOTH

26 47

26 47

Procurment of Amul Chocolate(Central Delhi)

27% 47% Distributor WholeSaler Both 26%

INTERPRETATION:Retailer Procure 27% Amul Chocolate from Distributor in Central Delhi. Retailer Procure 26% Amul Chocolate from Wholesaler in Central Delhi. Retailer Procure 47% Amul Chocolate from Distributor and Wholesaler in Central Delhi.

50

DEMAND OF CHOCOLATE (ENTIRE DELHI)

SR. NO. 1 2 3 BRAND CADBURY NESTLE AMUL RESPONDENTS 62 27 11 PERCENTAGE 62 27 11

Demand of Chocolate(Entire Delhi)

11% 27% 62% Cadbury Nestle Amul

INTERPRETATION:Demand of Cadbury chocolate in entire Delhi is about 62%, Demand of Nestle chocolate in entire Delhi is about 27%, and Demand of Amul chocolate in entire Delhi is about 11%

51

WEEKLY SALE OF CHOCOLATE (NORTH DELHI)

SR. NO. 1 2 3 BRAND CADBURY NESTLE AMUL RESPONDENTS 71 17 12 PERCENTAGE 71 17 12

Weekly Sale of Chocolate(North Delhi)

12% 17% Cadbury Nestle Amul 71%

INTERPRETATION:Weekly Sale of Cadbury in North Delhi is about 71%, Weekly Sale of Nestle in North Delhi is about 17%, and Weekly Sale of Cadbury in North Delhi is about 12%

52

WEEKLY SALE OF CHOCOLATE (SOUTH DELHI)

SR. NO. 1 2 3 BRAND CADBURY NESTLE AMUL RESPONDENTS 52 28 20 PERCENTAGE 52 28 20

Weekly Sale of Chocolate(South Delhi)

20% Cadbury Nestle Amul 52% 28%

INTERPRETATION:Weekly Sale of Cadbury in South Delhi is about 52%, Weekly Sale of Nestle in South Delhi is about 28%, and Weekly Sale of Cadbury in South Delhi is about 20%

53

WEEKLY SALE OF CHOCOLATE (CENTRAL DELHI)

SR. NO. 1 2 3 BRAND CADBURY NESTLE AMUL RESPONDENTS 62 25 14 PERCENTAGE 62 25 14

Weekly Sale of Chocolate(Central Delhi )

14% Cadbury Nestle 25% Amul 62%

INTERPRETATION:Weekly Sale of Cadbury in Central Delhi is about 62%, Weekly Sale of Nestle in Central Delhi is about 25%, and Weekly Sale of Cadbury in Central Delhi is about 14%

54

WEEKLY SALE OF CHOCOLATE (WEST DELHI)

SR. NO. 1 2 3 BRAND CADBURY NESTLE AMUL RESPONDENTS 66 24 10 PERCENTAGE 66 24 10

Weekly Saleof Chocolate(West Delhi)

10%

24% Cadbury Nestle Amul 66%

INTERPRETATION:Weekly Sale of Cadbury in West Delhi is about 66%, Weekly Sale of Nestle in West Delhi is about 24%, and Weekly Sale of Cadbury in West Delhi is about 10%

FINDINGS
55

Customer Bar is most popular in consumer with 66%,Toffee is the second popular chocolate in consumer with 17%,8% People like candy,9% people like all kind of chocolate While Purchasing Chocolate 66% Customer Prefer Flavors, Only 4% Customer Prefer Gift as a Chocolate 30%,Customer Prefer Both Flavor and Gift While Purchasing Chocolate.
88% Customer Prefer Chocolate at Anytime, Only 8% Customer like

Chocolate during Party or Birthday, Only 4% Customer like Chocolate after Meal. According to Survey 22% Customer Prefer Milky Flavor, 26% Prefer Coffee, 22% Prefer Fruit-n-Nut, 2% Prefer Milky and Coffee,12% Prefer Milky and Fruit-n-Nut, 8% Prefer Coffee and fruit-n-Nut,2% prefer All Flavors and only 6% Prefer Other Flavors
66% customer prefer Cadbury as a first preference 15% customer prefer

Amul as a first preference, 13% customer prefer Nestle as a first preference, 6% customer prefer Other as a first preference 38% customer prefer Cadbury as a second preference, 28% customer prefer Nestle as a second preference, 20% customer prefer Amul as a second preference, 14% customer prefer other as a second preference 70% customer spend below Rs/-50 on chocolate 20% customer spend Rs/-50-100 on chocolate, 10% customer spend above Rs/-50 on chocolate.
58% customer are well aware about the Amul milk chocolate, 23%

customer are well aware about the Almond Bar, 10% customer are well

56

aware about the Choc zoo, 5% customer are well aware about the Fun doo, 4% customer are well aware about the Bindaaz. Retailer 92-98% customer sale Cadbury chocolate, 70-85% customer sale Nestle chocolate, 52-72% customer sale Amul chocolate
89-99% customer are well aware about the milk chocolate, 10-40%

customer are well aware about the Almond bar.,7-50% customer are well aware about the Bindaaz.,13-42% customer are well aware about the Chocozoo.,15-60% customer are well aware about the Fun doo Procurement of Amul Chocolate through Distributor in East Delhi is 29%, Procurement of Amul Chocolate through wholesaler in East Delhi is 23%, Procurement of Amul Chocolate through Distributor and Wholesaler in East Delhi is 48% Retailer Procure 70% Amul Chocolate from Distributor, 13% from Wholesaler Retailer Procure 17% Amul Chocolate from Distributor and Wholesaler in North Delhi. Retailer Procure 72% Amul Chocolate from Distributor, 9% from Wholesaler 19% Amul Chocolate from Distributor and Wholesaler in South Delhi. Retailer Procure 31% Amul Chocolate from Distributor, 52% from Wholesaler Retailer Procure 17% Amul Chocolate from Distributor and Wholesaler in West Delhi. Retailer Procure 27% Amul Chocolate from Distributor, 26% from Wholesaler Retailer Procure 47% Amul Chocolate from Distributor and Wholesaler in Central Delhi.

57

 Demand of Cadbury chocolate in entire Delhi is about 62%,Demand of Nestle chocolate in entire Delhi is about 27%,Demand chocolate in entire Delhi is about 11% Weekly Sale of Cadbury in North Delhi is about 71%,Weekly Sale of Nestle in North Delhi is about 17%,Weekly Sale of Cadbury in North Delhi is about 12% Weekly Sale of Cadbury in South Delhi is about 52%,Weekly Sale of Nestle in South Delhi is about 28%,Weekly Sale of Cadbury in South Delhi is about 20% Weekly Sale of Cadbury in Central Delhi is about 62%,Weekly Sale of Nestle in Central Delhi is about 25%,Weekly Sale of Cadbury in Central Delhi is about 14% Weekly Sale of Cadbury in West Delhi is about 66%,Weekly Sale of Nestle in West Delhi is about 24%,Weekly Sale of Cadbury in West Delhi is about 10% of Amul

S.W.O.T ANALYSIS

STRENGTH:58

 Amul has a brand image. It has a high quality. It has a great purity. It has a pool of dedicated and hardworking workforce. Experienced market player. WEAKNESS: Company dose not provide credit to retailers Company. Company has no proper promotion strategy. Complex replacement procedure. Fewer margins to retailers. There is Lack of availability. Distribution is not up to the mark in every area. Lack of salesmen and distributor in some areas in Delhi. There is a problem with storage of Amul Chocolate

59

OPPORTUNITY: Sale can be increased by providing the replacement offer to retailers. Increase in retailer margin can enhance the sale of Amul Chocolate.
Focused approach towards small market can also increase the sale of

Amul Chocolate. New schemes can be provided to the retailers to attract them to push the sale of Amul Chocolate. Regular supply can be easily compete the competitors and increase its own sale. THREATS: More competitors are entering in the market. Competitors are providing more margins to retailers. Competitors also giving replacement facility to retailers. Competitors providing regular supply and strong distribution channel. Competitors also reaching to small market.

60

SUGGESTIONS & RECOMMENDATIONS

On the basis of research and analysis of the study conducted in DELHI market, which was divided into five areas viz. south, north, east, west and central Delhi for the AMUL Chocolate. I would like to suggest the following key point to the company. The company should try to build some feed back mechanism from the retailer to check the wholesalers intervention in the AMULS hamper the goodwill as distribution area because the wholesaler try to distribution channel.
The company should maintain separate distribution channel for the

well as the other benefit of the company and their most important part of

chocolate because it is seem mostly during study that one single distribution deals all product, as it is not a hidden fact that the product line and product depth is very wide. In the other hand other product most importantly AMUL butter is hot item for distributor as well as for retailers. Therefore they dont pay proper attaint ion on to it.
The company should provide new schemes on the regular basis to the 61

retailers as well as to

the consumers to increase its market share.

During my project this fact become clear that the customer are not well aware about the all product item of amul chocolate so through the strong advertisement company should try to increase the awareness of the AMUL chocolate. The retailers main problem is storage of AMUL Chocolate as I saw Cadbury as well as nestly both company provide refrigerator and display box for proper storage as well as the promotion of their product so AMUL should do something on this line. Replacement is big problem for retailers especially in chocolate segment because all chocolate products need special kind of care but there some unavoidable factor damage the chocolate so company should provide revive the policy about the replacement, easy replacement facility to the retailers so that they could be attracted toward selling the AMUL Chocolate. The company should start promotion campaign at the micro-level by increasing the visit of companys representatives to the retailers. The company should work collaboratively with the distributors in effective manner towards focusing on the area where there is a potential market for AMUL Chocolate and target that area.

62

CONCLUSION

FROM THE ANALYSIS, THE FOLLOWING CONCLUSION CAN BE ARRIVED AT: Amul Chocolate enjoys the trust of the retailers as well as the consumer because of its quality and huge brand image. Currently the stock of Amul Chocolate supplied by the company is not of fresh date. As a result of this situation is making an adverse impact on the market of Amul Chocolate
There a big storage problem with Amul Chocolate it has needed to keep in

certain temperature.
Some distributors do not give proper information to the retailers about the

product and offers given by the company for the promotion of the Amul Chocolate. Which leads bad image of the company? There is some problem with the packaging of the product. As a result the Chocolate puffed before its expiry period.
The supply of Amul Chocolate is not proper in some specific areas .Which

gives wrong massage about company.

63

 The competitors of some of the competitors of are providing easy

replacement facility to the retailers which are attracting them towards those companies. Some of the competitors of some of the competitors are providing wider margins to the retailers. Wider margin is making the retailers to push the sales of the competitors.

Annexure
QUESIONNAIRE 1. BIBLIOGRAPHY

64

CUSTOMER QUESTIONNAIRE
Name Age Place. 1. Do you eat chocolate?
Yes No

Occupation.. Monthly income.

2. Which type of chocolate do you like most?

Candy Toffee Bar

3. Whats in your mind while purchasing chocolate?

Flavor Gift both

4. At which time do you like to eat chocolate?

After meal Birthday party any time

5. Which type of flavor/taste does you like the most? Milky coffee Fruit-n-Nut Other

6. Which brands of chocolate do you like the most? Name

65

a) .. b) .. 7. How much do you spend on chocolates in a week?

Below 50 8. Are you aware about? Yes No 50-100 Above 100

Amul milk chocolate Almond Bar Bindaaz Fundo Chocozoo

9. Have you tasted Amul chocolate? Yes No

Milk chocolate Almond Bar Bindaaz Fundo Choc zoo

. . . .

. . .
.

10. If yes give point (1-10) for each?

Milk chocolate Almand Bar

.. .
66

Bindaaz Fundo Chocozoo

. ..
.

11. How you come to know about Amul chocolate? By electronic media . by print media by retailer By Display any other

12. Give point (1-10) for following chocolate? Taste Price packaging

Cadbury Nestle Amul

13. Any suggestion?

67

BIBLOGRAPHY
BOOKS:Kotler Philip Marketing Management New Delhi Prentice hall of India. Kothari C.R. Research Methodology

SEARCH ENGINE: Www.google.com Www.yahoo.com WEB SITE: Www.Amul.Com

MAGAZINES: Business world Business today

68

PREOIDICAL: Economic Times

Times of India (Delhi Edition)

69