A Summer Internship Project Report on

CHANNEL ANALYSIS OF AMUL MILK AT KALEWADI, PUNE

Submitted in partial fulfilment of the requirements for the degree of Post Graduate Diploma in Management (Marketing) By

BHAVENDRA DAS
Roll No: 74 Under the guidance of

Prof. SUNIL VERMA

A Study Conducted for GCMMF (AMUL)

At Indira Institute of Management Pune (2012-14)

ACKNOWLEDGEMENT

It gives me a great pleasure to present this report, a written testimony of the most fruitful
training I have undergone. I sincerely acknowledge that whatever achievements I have made, was through the efforts and sincere co-operation of the entire Marketing department of Gujarat Co-operative Milk Marketing Federation Ltd. Pune region. I whole-heartedly thank my company guide Mr Pranil Jadhav (Asst. Manager, Sales), who have been an invaluable source of encouragement. I am immensely grateful to them for all their help and support. Also I would like to thank Prof. Pranav Vyas (HOD) and my internal guide Prof. S.K. Verma for their valuable guidance, co-operation extended to me and providing all necessary facilities to carry out project work. I would also like to acknowledge the support of the Dealers, Retailers and especially who provided me all kind of all information and support. Without them getting primary data from field would have been near to impossible. Finally, I would say that this training was a wonderful experience, where I could apply theoretical and practical knowledge, which I shall cherish forever.

Bhavendra Das

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DECLARATION

I, Bhavendra Das a student of PGDM (2012-14) studying at Indira Institute of Management declare that the project title CHANNEL ANALYSIS OF AMUL MILK AT

KALEWADI, PUNE at Gujarat Co-Operative Milk Marketing Federation Ltd. was carried out
by me in the partial fulfilment of Post Graduate Diploma in Management. This project was undertaken as a part of academic curriculum according to the university rules and norms and by no commercial interests or motives.

Name of Student Bhavendra Das Date:

Place: Pune.

Signature of the Student

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INDEX

Chapter.NO

CONTENTS

PAGE NO

01

EXECUTIVE SUMMARY

02

INTRODUCTION OF THE STUDY

03

INDUSTRY PROFILE

11

04

COMPANY PROFILE

17

05

OBJECTIVE OF THE STUDY

27

06

RESEARCH METHODOLOGY

30

07

DATA ANALYSIS AND INTERPRETATION

36

08

OBSERVATIONS & FINDING

54

09

CONCLUSIONS & SUGGESTION

56

10

BIBLIOGRAPHY

58

11

ANNEXURE

59

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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY
1. TITLE: CHANNEL ANALYSIS OF AMUL MILK AT KALEWADI, PUNE.

2. SECTOR: Dairy Industry. 3. COMPANY: GCMMF (AMUL) 4. LOCATION: Pune 5. OBJECTIVES: 1. To study the retailers preference towards various milk and Milk products of Amul Dairy to analyse channel penetration of Amul. 2. To understand channel selection & nature of channel conflict criteria among retailers for selecting milk and milk products of Amul. 3. To judge the retailers preference with respect to price and availability at different milk counters of Milk products of Amul Dairy for product density presence in counters. 6. SCOPE OF THE STUDY: - The scope of the study is to understand retailers feedback regarding Amul milk and distribution service. Its scope is mainly limited to Kalewadi area of (Pune) city.

7. RESEARCH METHODOLOGY USED: TYPE OF RESEARCH: Descriptive Research.(It is the research method used because descriptive studies embrace a large proportion of market research.) UNIVERSE UNDER STUDY: Pune retailers. SAMPLE FRAME: Kalewadi area. SAMPLE SIZE: 100 Retailers & 50 customers. TECHNIQUE of SAMPLING: Non-probability Judgement sampling.

DATA COLLECTION:
PRIMERY DATA: Face to face communication with retailers/Customer, online, directs marketing, agents. SECONDARY DATA: From www.amul.com. TOOLS USED: Questionnaire, past records.
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8. FINDINGS:For Retailers: At Kalewadi most of the milk retailers have multi-brand dairy product outlet. Amul, Katraj, Chitale, Govardhan, Gokul are the major accepted brand at Kalewadi. Katraj has the market share a little bit less than half customers. Amul, Chitale and Katraj are the subsequent accepted brand. Most of the milk outlet has sweets these local brands of lassi and milk shake, so dairy products are displayed as major product. Amul milk has good brand equity, the range of the product are complete promotion of Amul brand is also suitably done. Amul is a PAN India brand, whereas Katraj, Chitale, Govardhan, Gokul are regional brands. The quality of Amul is quite good, tastes are moderately maintained in comparison to Katraj and Chitale. The dairy channel at Kalewadi expect a continuous and sustained delivery frequency also the logistic breakage and demurrages ensures a better channel relation and trust building exercise. Amul has a sustained brand equity presence on the PAN India scale. The other promotion activities such as glow signboards, flex gates would better Amul brand product placement at Kalewadi. Amul brand has a sustained taste and the milk delivery at customer door step ensures better quantum billing of Amul at Kalewadi. The channel strength of dairy products is mostly dependent upon the price acceptability of the retailer and customer, credit facility offering different trade scheme. The customer accept for Amul taste its durability and the right value for money is derived due to the product acceptance of Amul milk as it is more than two generation old product. Morality and its cooperative success also contribute to the product acceptance by customers at Kalewadi, Pune.

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9. CONCLUSION: Katraj brand is favourite among local people in Pune. Therefore, it is necessary to create Amul Brand favouritism among local people by various means. Amul Milk and Milk products are not available in close vicinity of all human habitats. Therefore, it is necessary to open more number of milk parlours throughout the city and semi urban area to get more product spread. This leads to better profit and sale. It is necessary to check the quality of Amul milk products, its refrigeration equipments quality and maintain good quality of milk could only be sold to customers. Amul Dairy has huge brand advantage of its brand name so it should continue to maintain good brand image in the minds of customer. Quality means it is necessary to increase the fat or malai content of Milk as compare to other brands. It is also necessary that the margin given to retailers is equal to competitors. It is necessary to change the taste of Amul milk pungent to sweet. Amul Dairy has biggest advantage of its brand name so it should continue to maintain good brand image in the minds of customer.

. Amul Dairy should not spoil its Brand image by giving Bad Service to customers at
milk parlours.

its

Amul Dairy should start and implement an online ordering system for its distributers/retailers and consumers.

Amul Dairy should develop Research and Development (R & D) department for its growth and development in future.

There are many customers who have already shifted to Chitale who use to use Amul. So its challenge in front of Amul to tackle this situation.

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CHAPTER-1

INTRODUCTION OF STUDY

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INTRODUCTION 1.1 Background of the Study

Companies and Marketing Managers often carry out study of specific problems and opportunities in the market so as to analyse the performance of their Brands and respective Products in the market. This can be done by carrying out Market survey, Product Preference Test and Advertisement Evaluation. In Kalewadi, AMUL milk has average market share, but the fact is Amul has good brand name and brand equity in local area in Pune. In this case, as per company suggestion Market surveys were carried out to understand the quality & distribution of Amul as a Brand of milk. Kalewadi market was divided into 2 brief areas and a detailed survey was carried out about the distribution, quality, shelf life, taste, rate of milk and Milk brands sold in area, Availability of AMUL Milk and Suggestion if any given by the retailers to improve service. Doing so researchers, as marketing students, got a brief exposure to the functioning of small and large scale Retailers, Distributors and Measuring of product performance in a market

1.2 Background of the topic A. RETAILER SURVEY.

Retailer survey is carried out to identify the lacuna in distribution of AMUL milk and to increase the quality like taste, fat content, shelf life of AMUL milk. In this Project the observational method and questionnaire method was used with respect to the following points:1) The Period, Quantity of AMUL milk available in the retail outlet & Distributor warehouse. To know retailers expectations from Amul company 2) To know retailers expectations from Amul Company to reduce the time it takes to get the product to the market. 3) To study the quality of the product so as to maintain its integrity.

C. CUSTOMER SURVEY:
Customer survey is carried to find perception of consumer with respect to AMUL milk.
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Chapter-2 INDUSTRY PROFILE

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3.1Industry Profile 3.1.1 The World Dairy Situation

Every day, millions of people around the world consume milk. Its a basic food staple, which is considered part of a healthy diet for all ages. Its also a commodity that continues to experience steady growth worldwide, even with a recent history of price volatility and the current economic slowdown. Despite the global economic crisis, consumption of liquid dairy products is expected to continue to grow steadily over the next three years with emerging markets driving much of this growth. At the same time, the current financial turmoil is likely to encourage many consumers to economise when buying milk, for example, by purchasing budget brands and private label products. Over the past four years, global consumption of liquid dairy products has reached a compound annual growth rate of 2.4% with consumption hitting an all-time high of 258 billion litres in 2008. Leading much of this growth are highly populated emerging markets such as India and China, where continued population growth and rising incomes, along with new dietary trends and preferences are fostering awareness, demand for and consumption of dairy products.

3.1.2 Indian Dairy Industry-A Profile

From chronic shortages of milk, India has emerged today as the largest producer of milk in the world crossing 97 million tones. It is 'The Oyster' of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the country's population. An estimated 50 per cent of the total milk produced is consumed here. The expected rise in urban population would be a boon to Indian dairying.

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Presently, the organized sector both cooperative and private and the traditional sector cater to this market. Indias dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.83,500 crores by year 2010. This growth is going to come from the greater emphasis on the processed food sector and also by increase in the convesation of milk into milk products. By 2010, the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at aound Rs7,00,000mn. India has 300 million head of dairy cattle roughly 1/5 of the worlds total bovine population. However, most of these cows belong to farmers in small villages, whose entire herd comprises two to three animals Every day: 70 million farmers milk 105 million cows in 50,000 villages and the national milk grid transports the milk (an average of 1-2 litres per farmer) to more than 700,000 cities in India

Although milk production has grown at a fast pace during the last three decades (courtesy: Operation Flood), milk yield per animal is very low. The main reasons for the low yield are: Lack of use of scientific practices in milching. Inadequate availability of fodder in all seasons. Unavailability of veterinary health services. Typical milk consumption Indian households 45% tea or coffee whitening 30% liquid milk for children 17% curd or yogurt preparation 8% cooking in other forms

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Typical milk consumption Indian households

tea or coffee whitening liquid milk for children curd or yogurt preparation cooking in other forms

The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.83,500 crores by year 2010. This growth is going to come from the greater emphasis on the processed food sector and also by increase in the convesation of milk into milk products. By 2010, the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at aound Rs7,00,000mn.

Over the years, brands created by cooperatives have become synonymous with quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence.

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Some of the major Dairy Co-operative Federations include: Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF) Bihar State Cooperative Milk Producers Federation Ltd (COMPFED) Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) Haryana Dairy Development Cooperative Federation Ltd. (HDDCF) Himachal Pradesh State Cooperative Milk Producers Federation Ltd (HPSCMPF) Karnataka Cooperative Milk Producers Federation Ltd (KMF) Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF) Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF) Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh) Orissa State Cooperative Milk Producers Federation Ltd (OMFED) Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF) Punjab State Cooperative Milk Producers Federation Ltd (MILKFED) Rajasthan Cooperative Dairy Federation Ltd (RCDF) Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF) West Bengal Cooperative Milk Producers Federation Ltd. (WBCMPF)

3.1.3 The Dairy Cooperative Network Includes 170 milk unions Operates in over 338 districts Covers nearly 1,08574 village level societies Is owned by nearly 12 million farmer members.

Apart from making India self-sufficient in milk, these dairy co-operatives have established our country as the largest milk-producing nation in the world!
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3.1.4 National Dairy Development Board The National Dairy Development Board was created to promote, finance and support producer-owned and controlled organizations. NDDB's programmes and activities seek to strengthen farmer cooperatives and support national policies that are favourable to the growth of such institutions. Fundamental to NDDB's efforts are cooperative principles and the Anand Pattern of Cooperation. A commitment to help rural producers help themselves has guided the Dairy Board's work for more than 30 years. This commitment has been rewarded with achievements made by cooperative dairies in milk production, employment generation, per capita availability of milk, foreign exchange savings and increased farmer incomes. The National Dairy Development Board (NDDB) has replaced exploitation with empowerment, convention with modernity, stagnation with growth and transformed dairying into an instrument for the development of Indian farmers. The National Dairy Development Board was created in 1964 in response to the Prime Minister Lal Bahadur Shastri's call to "transplant the spirit of Anand in many other places". He wanted the Anand model of dairy development - with institutions owned by rural producers, which were sensitive to their needs and responsive to their demands - replicated in other parts of the country. The Board's creation was routed in the conviction that our nation's socio-economic progress lies largely on the development of rural India. Thus NDDB's mandate is to promote, finance and support producer-owned and controlled organizations. NDDB's programmes and activities seek to strengthen farmer cooperatives and support national policies that are favourable to the growth of such institutions. NDDB believes that the Rs 7,000-crore (Rs 70-billion) milk cooperative market is getting much more competitive and wants to strengthen the position of cooperatives through a multi-pronged action plan with an outlay of Rs 800 crore (Rs 8-billion). This includes using MDFL to enter into 51:49 joint venture companies with state cooperative federations to assist them with marketing value added products and to help them in other ways to become self-reliant enterprises.

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Chapter-3

COMPANY PROFILE

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COMPANY PROFILE
2.1.1 History of AMUL:Gujarat Co-operative Milk Marketing Federation (GCMMF)
Gujarat Cooperative Milk Marketing Federation (GCMMF) is the largest food product marketing organization of India. It aims to provide good returns to the farmers and also to fulfill the requirements of consumers by giving them quality products. Amul was formed in 1946 by an apex co-operative organization, Gujarat Cooperative Milk Marketing Federation. AMUL means "priceless" in Sanskrit. Amul products are used by millions of people. Amul Butter, Amul Milk Powder, Amul Ghee, Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk, and Amulya has made Amul one of the leading food brands in India. Amul products are sold at reasonable prices. Amul has a turnover of Rs. 37.74 billion in 2005-06.

Members: No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 2010-11):

13 District Cooperative Milk Producers' Unions 3.03 million 15,712 13.67 million litres per day 3.45 billion litres 9.2 million litres 647 Mts. per day 3690 Mts per day Rs. 9774 Crores (US $ 2.2 billion)

Milk collection (Daily Average 2010-11): Milk Drying Capacity: Cattle feed manufacturing Capacity: Sales Turnover (2010-11) :

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Sales Turnover of Amul Dairy Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 80053 97742 US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1700 2172

RETAILING The concept of Amul parlors initiated in 2002 has come a long way and has today, evolved into the most visible face of brand Amul. The network of more than 4000 parlors in almost all major towns of the country bears testimony to the fact that the model is hugely scalable and inherently sustainable. This retailing initiative has not only enabled us to interface directly with consumer, it has also helped us in our endeavor to reduce middle-men from the supply chain. The addition of more than 2000 parlors during the current year is largely attributed to Amul channel partners i.e. wholesale distributors who have embraced the concept by starting their own parlors and also motivated franchises to create parlors for meaningful employment.
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The relentless focus on expansion of Amul parlors is now paying rich dividends. The retailing business alone fetched a sales turnover of more than Rs.200 Crores during the current year. Moreover, these parlors also provide Amul an effective platform to introduce all the innovative products that Amul launch, every year. Amul also made giant strides forward in reaching out to millions of railway commuters by setting up more than 50 Amul stalls across major railway stations of the country and also to set up another 300 railway parlors during the coming year. Ice-cream scooping parlors, the latest addition to the retailing revolution are yet another blockbuster from the house of Amul and expect to add 200 more parlors in the coming year. Amul has plan to take the total tally of Amul parlors to 10000 by adding 6000 parlors during the coming financial year. EXPORT Despite unfavorable conditions in international dairy market, export business reached Rs.133 crores against Rs.125 crore last year. DISTRIBUTION NETWORK Over a period of time Amul have built unique capabilities of distributing Ambient, Chilled, Frozen and Fresh products simultaneously through versatile distribution

highways. Today, 3500 Distributors for Value added milk products, 1800 Distributors for Fresh Milk, ensure that Amul Products are available to all segments of consumers in India through more than 2 Million outlets. To enhance further efficiency in distribution, two key initiatives have been taken during the year. Firstly, an expanded competency based distribution by inducting about 300 Distributors having expertise in servicing specific market segments and secondly, divides the value added product lines amongst three sets of Distributors to cater to the same market. This is going to give more and more competitive advantage.

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Milk Processing and Distribution Process

INFORMATION TECHNOLOGY INTEGRATION GCMMF has further advanced its Information Technology solutions by linking all the Milk Plants of the member unions with its customized ERP System (EIAS & Web EIAS) to improve the liquid milk marketing operations. The Federation has also enhanced the Financial Control System in EIAS. It has also developed Sales Performance Monitoring System across various levels. Further to smoothen business operations across the supply chain and strengthen the linkages between GCMMF and its Member Unions, Federation has decided to implement common ERP system for entire enterprise.
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Federation has also developed Online Cattle Feed Raw Material Pricing/Contract Information Sharing System to enable smooth collaboration between member unions for purchase of Cattle Feed raw material. GCMMF has further advanced the use of Geographical Information systems by enhancing the GIS application and implementing GIS based Sales Analytics solution across various offices. It has also developed a GIS based Decision Support System (DSS) for the top management for effective & geographically monitoring of the sales performance of WDs, ADAs, Retailers, and Products etc.

MISSION 2020
This plan, appropriately titled Mission 2020, envisages that the dairy cooperatives of Gujarat will have a group turnover of Rs. 27000 crores by the year 2020. This will be a three-fold increase over our current group turnover of approx. Rs. 9600 crores. With further expansion of cooperative network, increase in number and productivity of milch animals; Milk production in our milk shed area will increase to 231 lakh kg per day (23.1 million kg per day), at an annual growth rate of 4%. We will be strengthening our milk procurement infrastructure by installing Bulk Milk Chillers and Automatic Milk Collection Systems in all our village cooperative societies. This will enhance our milk procurement capacity in such a way, that we easily collect as much as 195 lakh kg per day (19.5 million kg per day) of milk in the peak flush season. Through expansion of distribution network, creative marketing, consumer education and product innovation, we will leverage effectively on rising income levels and growing affluence among Indian consumers. While expanding markets for our existing products, we will create fresh avenues for growth by tapping the rising demand for new value-added products. Special emphasis will be given to strengthening our presence in the large market for liquid milk, in metropolitan cities. Satellite dairies with combined processing and liquid milk packaging capacity of 50 LKPD will be established in major metro markets. Our objective is to ensure that the maximum share of the consumers rupee goes back to the milk producers.

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In view of the high demand and procurement projections, we plan to double to processing capacity of our dairy plants to 20.7 million kg per day, by 2020. This would include multifold capacity expansion for major product categories including milk powders, Ice-cream, paneer, cheese, ethnic sweets, curd, ghee and other dairy products. Milk drying capacity will also be enhanced by 200 MTs per day, to process additional milk in the peak season. For increasing milk production, it is vital to provide nutritious feed to milch animals. For this reason, we plan to expand our cattlefeed manufacturing capacity, more than four times to 12000 MTs per day, by 2020. At current prices, total investments envisaged for creating all the required infrastructure would be Rs. 2600 crores (Rs. 26 billion) till the year 2020. I am glad to inform you that the plan 2020 has been shared with all the member unions. It has also been discussed in the respective boards and necessary resolutions for investments have also been taken. This detailed plan will serve as our comprehensive roadmap for the next ten years and will ensure a glorious future for our dairy cooperatives.

2.1.3 AMUL PRODUCT PROFILE / RANGE: List of Products Marketed:Milk Range

Amul Shakti 3% fat Milk Amul Taaza 4.5% fat Milk Amul Gold 6.0% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snow cap Softy Mix

Infant Milk Range

Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months above) Amulspray Infant Milk Food
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Milk Powders

Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener

Sweetened Condensed Milk

Amul Mithaimate Sweetened Condensed Milk

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 Amul Cow Milk Amul Shakti White Milk Food

AMUL PRODUCT RANGE UNDERTAKEN FOR STUDY:

AMUL MILK:AMUL MILK is Pasteurized Milk

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Composition: Variety Amul Gold (Whole milk) Amul Shakti Amul Taaza Amul Slim N Trim Fat (%) 6 3 4.5 1.5 SNF (%)* 9 8.5 8.5 9.0

*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34 parts of protein and 9 parts of minerals.

Special Features: Amul Milk is the most hygenic liquid milk available in the market. It is pasteurised in state-of-the-art processing plants and pouch-packed to make it conveniently available to consumers. Product Specification: Amul milk meets the PFA standards for the respective type of milk.

Amul Gold Milk:

Amul Gold is Long Life standardized milk. It is fresh and only fresh milk, which has been processed with a technology called UHT (Ultra High Temperature), hence also known as UHT milk. Notwithstanding popular misconception, UHT technology does not involve any use of preservatives. The UHT treatment ensures zero microbial activation, while preserving the maximum flavour, taste, and nutritional value. The aseptic packaging system protects the product from air and light and guarantees a long shelf life of 180 days without refrigeration.

kids and adolescents who simply love its creamy taste sans the inconvenient cream layer! Amul Gold contains 6.0% fat and 9.0% SNF minimum and is ideal for making sweet
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dishes (like kheer, payasam etc.) and for setting curds. It is also ideal for drinking straight from the pack for Amul Gold comes in convenient 1 liter and 500ml packs. Amul Taaza:

Amul Taaza contains 4.5% fat and 8.5% SNF minimum. It is the ideal multipurpose milk. Growing children love its taste while benefiting from its comprehensive nutrition. Amul Taaza comes in convenient 1 liter and 500ml packs.

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CHAPTER-5 OBJECTIVES & SCOPE OF THE STUDY

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OBJECTIVE OF THE STUDY

The research work has been taken to find out the following objective which will help to take the marketing decision regarding to capture the largest market share:

To study the retailers preference towards various milk and Milk products of Amul Dairy to analyse channel penetration of Amul. To understand channel selection & nature of channel conflict criteria among retailers for selecting milk and milk products of Amul. To judge the retailers preference with respect to price and availability at different milk counters of Milk products of Amul Dairy for product density presence in counters. To understand consumers preference towards Amul brand.

SIGNIFICANCE OF THE STUDY

1. The survey is conducted in Pune city to study the retailers preference towards various milk and by-product of Amul Dairy. 2. It is the competitive market having atleast 15 to 16 dealers for various brands like Chitale, Amul, Gokul, Gobind, Gobordhan and various other companies. 3. The purchase decision of the milk and by-products is mainly taken by retailers. The survey is conducted by preparing questionnaire for retailers. 4. Study shows that most of the retailers are not satisfied with the Amul by-product. 5. Study also shows that the demand for the Amul by-product is comparatively less than the Amul Milk. 6. The calculations are based on research conducted in selected area and hence it should not be considered for the whole area.

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SCOPE OF THE STUDY

The scope of the study is to understand retailers feedback regarding Amul milk and distribution service. Its scope is mainly limited to Kalewadi area of (Pune) city. It gives information about the size of the retail networks. Amul company get the information about competitors and can develop new marketing strategies. 1. It gives information about the services given by distributors to their retailer. 2. It gives information about the competitors products. 3. It will serve consumer in better manner. 4. It provides suggestions to the company to improve their products sales.

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CHAPTER-6

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Research is a means for gaining knowledge can be carried out either arbitrarily or in systematic fashion is a purpose investigation .Research is a way of finding new ways at familiar things in order to explore ways of changing it. Formulation of hypothesis may in itself be a topic of research focuses itself on descriptive rather than on casual or

experimental aspects. Primary data was collected using survey method. A brief interview using Questionnaire was conducted to find out packaged Milk available and their

performance in terms of consumer buying preference and retailers selling preference along with their reason for not stocking AMUL milk and their valuable suggestion for the company (if any) and consumer survey is carried by choosing customer randomly based on geographical cluster. Based on the survey observations, data interpretation was done to represent the current AMUL position in the local market and reasons for it.

6.1.1 Research Design

Types of Research Designs used for the study:

Descriptive Research : Descriptive Research includes surveys and fact findings enquiries of different kinds. The basic reason for carrying out descriptive research is to identify the cause of something that is happening. For This instance, research was used in order to find out whether AMUL Dairys market share differs between geographical regions and to discover how many competitors AMUL Dairy have in the pimpri-chincwad market. Retailer survey is carried out for retailer in pimpri-chincwad area and a Crosssectional Study was carried out on the selected sample population of customer on

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the selected routes to understand the Brand distribution of Milk products in pimprichincwad .

6.1.2 Source of data

Primary Data:

The data is original in nature and it is collected at first time for a specific purpose is called as Primary Data. Primary Data for Market Survey is as follows:Total No. of Retailers Total No. of Customers 100 100

Secondary Data:

Secondary Data was collected form Books and the Internet website mentioned below in bibliography and references.

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5.1.3 Process of Research:The Process of Research PROBLEM IDENTIFICATION

RESEARCH DESIGN

DEFINE RESEARCH OBJECTIVES

SOURCES OF DATA

PRIMARY DATA

DATA COLLECTION

SECONDARY DATA

DATA ANALYSIS AND

FINDINGS

SUGGESTIONS AND RECOMENDATIONS

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5.1.4 Sample design

:-

Step I Defining the problem & Research objectives:Retailer survey and competitive analysis was carried out to study the performance of AMUL packaged milk in the pune city. The main objective was to find out the reasons for low quality of Amul milk brand and for which reason it spoil its brand image.

Step II Developing Research Plan:In order to meet these objectives as structured Questionnaire was developed which concentrated on finding out reason for low performance and a detailed Retailer survey and consumer survey was carried out in Kalewadi area.

Step- III Collecting the Information:Information was collected from the retailers and also customer survey is carried out to find out customer perception regarding Amul.

Step IV Analysing the information

The Information so gathered was analysed in order to check the Most sold Brands area wise, Amul milk Availability, Customer buying preferences, Retailers Expectations in terms of product and service.

Step V Presentation of information:From the above study a brief report was prepared consisting of the analysis of the gathered data, data interpretation along with suggestions and recommendation for solving the above stated problem.

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5.1.5 Sample Size

From Retailers & Distributors

Total No. Of Distributors : Total No. of Retail Outlets: Customer survey: Sample size:

1 100

100 customers

Sample Units Sample Frame Retailers i.e. Kirana Goods retailers, Tea stalls and Sweet Marts in Kalewadi. Milk Customers through cluster sampling for customer survey.

5.1.6 Sampling method Sampling method - selective sampling Selective Sampling Method: - The Entire Kalewadi area is taken for sampling. All Kirana stores and Sweet Marts which stock milk are selected for sampling and surveyed and Personal Interviews of Store owners or Managers was taken to find out the performance of packaged milk in his area, Shop and Suggestions if any for improvement of both product and services associated with it.

5.1.7 Method of Data Collection:

1) Personal contact (Interview) 2) Questionnaire (Interview) 3) Observation . Distributor Retailers and customer Kirana Stores, Sweet homes and Tea stall.

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CHAPTER-7 DATA ANALYSIS AND INTERPRETATIONS

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DATA ANALYSIS To retailer

1. What are the major brands available in your shop? Sr. No. 1. 2. 3. 4. 5. Factors Amul Katraj Chitale Gokul Others Total Responses 25 40 15 15 5 100 Percentage 25% 40% 15% 15% 5% 100%

15 15

25

Amul Katraj Rajhans Gokul

40

Other

Graph 1: Brands Available

Interpretation: 1. Analysis shows that most retailers are having Katraj milk as first preference and the second preference is Amul milk. 2. Amul milk is present at most of the counters as a range mix strategy of shop keepers to keep a low end in terms of price product at their respective counters 3. Most of sweet shop are multi milk brand sales outlet

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2. How you rate the quality of Amul milk? Parameter Bad Good Excellent Total No. of respondents 25 60 15 100 % 25 60 15 100

50 45 40 35 30 25 20 15 10 5 0 Bad Good Excellent Series1

Graph 2: Ratting of quality of Amul milk Interpretation: Analysis shows that most respondents are rating the Amul milk as good. It is one step to excellent.

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3. How is the quality of Amul milk as compare to other brands? Parameters More malai as compare to other brands Less malai as compare to other brands Good taste as compare to other brands Bad taste as compare to other brands Total No. of respondents 15 35 30 20 100 % 15 35 30 20 100

Series 1
35 30 25 20 15 10 5 0 More malai as compare to other brands Less malai as compare to other brands Good taste as compare to other brands Bad taste as compare to other brands Series 1

Graph 3: Quality of Amul milk as compare to other brands Interpretation: Analysis shows that most respondents says that Amul milk has less malai as compare to other brands but taste good as compare to other brands.

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4. Are the milk delivered at your store? Parameter Yes No Total No. of respondents 58 42 100 % 58 42 100

No. of Respondents

Yes No

Graph 4: Milk delivered at doorstep Interpretation: Analysis shows that most respondents say that milk delivered at their store but still some respondents are not satisfy with the delivery procedure.

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5. If yes who delivered the milk? Parameter Company directly Distributor Whole-seller Buying on own from market Any other Total No. of respondents 3 56 15 23 3 100 % 3 56 15 23 3 100

No. of respondents

Company directly Distributor Whole-seller Buying on own from market Any other

Graph 5: Who delivers the milk

Interpretation: Analysis shows that the respondents delivered the milk by distributor itself but some respondents are buying on own from market. And the respondents are not at all satisfied with the distribution channel.

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6. Do you know which Sales promotional activities does the company undertake for Amul Milk? Factors Price Off Credit facility Coupons Advertisement POP Display Total Responses 20 3 17 33 27 100 Percentage 20% 3% 17% 33% 27% 100%

Price off Credit facility Coupons Advertisement P-O-P Displays

Graph 6: Sales promotional activity undertake by Amul Milk.

Interpretation: Analysis shows that company undertakes advertisement as the most preferred sales promotional activity followed by POP displays. While price off, coupons and credit facility as the least preferred sales activity.

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7. Do you want to give some suggestion to Amuls milk? Parameter Yes No No. of respondents 78 22 % 78 22

No. of respondents

Yes No

Interpretation: The analysis shows that 78% retailers give suggestions to Amuls milk and their distributors. And 22% do not prefer to give suggestions to Amul.

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TO CUSTOMERS
1. Which brand do you prefer in buying milk? Parameter Amul Chitale Katraj Gokul Total No. of Respondents 25 20 50 5 100 % 25 20 50 5 100

No. of Respondents

Katraj Chitale Amul Gokul

Graph 1: Most preferred brand

Interpretation: Analysis shows that most of the respondents prefer Katraj Brand of dairy products at Kalewadi.

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2. What are the reasons for preferring the above brand? Parameter Quality Taste Price Any other Total No. of Respondents 55 27 8 10 100 % 55 27 8 10 100

No. of Respondents

Quality Taste Price Any other

Graph 2: Reasons for preferring the Amul milk

Interpretation: Analysis shows that main reason for preferring their brand Milk is its good quality.

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3. Are you satisfied with the quality of Amul milk? Parameter yes No No. of Respondents 55 45 % 55 45

No. of Respondents

Yes No

Graph 3: Satisfied with the quality of Amul milk.

Interpretation: Analysis shows that most of the old Amul milk customers are satisfied with the Amul milk and would prefer to continue with Amul milk.

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4. Why you prefer the Amul milk over other brand? Parameter More malai Less malai Colour Soothing odour Good for children Tea & Coffee Total No. of Respondents 10 27 3 5 35 20 100 % 10 27 3 5 35 20 100

No. of Respondents

More malai Less malai Colour Soothing odour Good for children Tea & Coffee

Graph 4: Reasons for Preference of Amul milk

Interpretation: Analysis shows that due to less malai it is good for children health thats why respondents prefer Amul milk.

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5. If preferred brand is not available then which other brand you will prefer?

Parameter Katraj Amul Gokul Chitale Total

No. of Respondents 38 32 10 20 100

% 38 32 12 18 100

Katraj Amul Gokul Chitale

Graph 5: Brand preferred if preferred brand is not available.

Interpretation: Analysis shows that most of the respondents prefer Katraj brand if brand is not available.

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6. What is the colour of your preferred milk brand?

Parameter More whitish Less whitish More yellowish Less yellowish Total

No. of respondents 43 7 39 11 100

% 43 7 39 11 100

No. of respondents

More whitish Less whitish More yellowish Less yellowish

Graph 6: Colour of your preferred brand

Interpretation: Analysis shows that most respondents view about the colour of their preferred brand is more whitish and more yellowish.

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7. What is the taste of Amul milk? Parameter Sweet Pungent Total No. of Respondents 57 43 100 % 57 43 100

No. of Respondents

Sweet Pungent

Graph 7: Taste of Amul milk

Interpretation: Analysis shows that more than 50% respondents says that Amul milk is sweet in taste.

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8. After how many days the milk get sour? Parameter 1 Day 2 Days 3 days 4 Days Total No.of Respondents 67 26 7 0 100 % 67 26 7 0 100

No.of Respondents

1 Day 2 Days 3 days 4 Days

Graph 8: Milk gets sour

Interpretation: Analysis shows that most respondents say that Amul milk gets sour within 1 day.

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9. What are the reasons for dissatisfaction with Amul milk? Parameter Bad taste Bad odor Get sour Less thick/fatty More thick/fatty Total No. of respondents 26 23 39 9 3 100 % 26 23 39 9 3 100

No. of respondents

Bad taste Bad odour Get sour Less thick/fatty More thick/fatty

Graph 9: Reasons for dissatisfaction with Amul milk

Interpretation: Analysis shows that most of the respondents are not satisfied with the self-life of Amul milk. 39% respondents says that the milk get sour immediately. Also 26% respondents dislike due to bad taste & 23% due to bad odour.

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10. What are the reasons for non-usage of Amul milk? Parameter Never used before Short self-life high price Not available in vicinity Total No.of Respondents 10 27 7 56 100 % 10 27 7 56 100

No.of Respondents

Never used before Short self life high price Not available in vicinity

Graph 11: Reasons for non-usage of Amul brand

Interpretation: Analysis shows that main reason for non-usage of Amul milk is short shelf life. Others reason May that milk is not available in vicinity.

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CHAPTER-7 OBSERVATIONS & FINDING

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OBSERVATIONS AND FINDING At Kalewadi most of the milk retailers have multi-brand dairy product outlet. Amul, Katraj, Chitale, Govardhan, Gokul are the major accepted brand at Kalewadi. Katraj has the market share a little bit less than half customers. Amul, Chitale and Katraj are the subsequent accepted brand. Most of the milk outlet has sweets these local brands of lassi and milk shake, so dairy products are displayed as major product. Amul milk has good brand equity, the range of the product are complete promotion of Amul brand is also suitably done. Amul is a PAN India brand, whereas Katraj, Chitale, Govardhan, Gokul are regional brands. The quality of Amul is quite good, tastes are moderately maintained in comparison to Katraj and Chitale. The dairy channel at Kalewadi expect a continuous and sustained delivery frequency also the logistic breakage and demurrages ensures a better channel relation and trust building exercise. Amul has a sustained brand equity presence on the PAN India scale. The other promotion activities such as glow signboards, flex gates would better Amul brand product placement at Kalewadi. Amul brand has a sustained taste and the milk delivery at customer door step ensures better quantum billing of Amul at Kalewadi. The channel strength of dairy products is mostly dependent upon the price acceptability of the retailer and customer, credit facility offering different trade scheme. The customer accept for Amul taste its durability and the right value for money is derived due to the product acceptance of Amul milk as it is more than two generation old product. Morality and its cooperative success also contribute to the product acceptance by customers at Kalewadi, Pune. The 3 V are the most important value preposition for the acceptance of any consumer products which is good value product are normally sold in good volumes and yields good volumes of revenue and profit generated by the retailers and manufacturer and Amul suits to such value preposition in prime. FMCG product sector is gaining momentum in Pune prime urban areas and at Kalewadi as well.
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CHAPTER-8

CONCLUSION & SUGGESTIONS

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CONCLUSION AND SUGGESTIONS

Katraj brand is favourite among local dairy brands among people in Pune. Therefore, it is necessary to create Amul Brands product spread local people by various means. Amul Milk and Milk products are not available in close vicinity of all human habitats. Therefore, it is necessary to open more number of milk parlours throughout the city and semi urban area to get more product spread. This leads to better profit and sale. It is necessary to check the quality of Amul milk products, its refrigeration equipments quality and maintain good quality of milk could only be sold to customers. Amul Dairy has huge brand advantage of its brand name so it should continue to maintain good brand image in the minds of customer. Amul Dairy should not spoil its Brand image by giving Bad Service to customers at its milk parlours. There is need to spend heavily on promotional activities and T.V advertising. The Distribution channel should be such that all customers throughout the pune city should receive milk daily, regularly and on time. It is also necessary to increase the shelf life of Amul as quality of milk so that it enhances the sale. Amul Dairy should start and implement an online ordering system for its distributers/retailers and consumers. Amul Dairy should develop Research and Development (R & D) department for its growth and development in future. Lot of people prefers to get home delivery due to convenience.

To conclude with it, it was a very nice experience in Amul (GCMMF), Pune. I really learnt a lot about the esteemed organisation, its sound working culture, actually production of milk. Moreover, the entire organisation provided me with the relevant information which made a good learning experience. There are many customers who have already shifted to Katraj who use to use Amul. So its s challenge in front of Amul to tackle this situation. Lots of retailers have complaints about Amuls milk. They told Amuls consumers have shifted to Chitale due to not good services. In such situation company should total control on Distributor.
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BIBLIOGRAPHY
Research Methodology C. R. Kothari

Marketing management -

Philip kotler

www.Amul.com

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ANNEXURE

1. Retailer questionnaire

1. What are the major milk brands available in your shop? Amul Katraj Chitale Gokul

2. How much quantity of milk do you sale every day for the following types? a) Cow milk________ l ts b) Buffalo milk______ lts.

3. How much quantity of Amul milk do you sale every day? a) Cow milk________ l ts b) Buffalo milk______ lts.

4. How you rate the quality of Amul milk? Bad Good Excellent

5. How is the quality of Amul milk as compared to other brands? (Chitale, Katraj, Gokul, Govardhan etc.) More malai as compare to other brands. Less malai as compare to other brands Good taste as compared to other brands Bad taste as compare to other brands.

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6. Are the milk delivered at your store? Yes No

7. If yes, who delivers the milk? Company directly Buying on own from market Distributor any other Whole seller

8. Do you know which Sales promotional activities does the company undertake for Amul Milk? Price off Credit facility Advertisement free samples Coupons P-O-P Displays

9. Do you want to give some suggestion to Amul milk? Yes No.

10. If yes please explain. .................................................................................................................................................... .................................................................................................................................................... .................................................................................................................................................... ..................................................................................................

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2. CUSTOMER QUESTIONNAIRE

1. Which milk brand do you prefer to purchase? Amul chitale Katraj Gokul

2. How much quantity of milk do you purchase daily? a) Buffalo_____ lts. b) Cow________lts.

3. What are the reasons for preferring the above brand? Quality Taste prices any other______.

4. Are you satisfied with the quality of _______milk? Yes No.

5. Why you prefer the Amul milk over above brand? (Tick multiple options) More malai Good for children Less malai Tea & coffee Colour Soothing odour

6. If preferred brand is not available then which other brand you will prefer? Chitale Amul Gokul Katraj

7. What is the colour of your preferred milk brand? More whitish Less Whitish More yellowish less yellowish

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8. What is the taste of Amul milk? Sweet Pungent

9. After how many days the milk gets sour? 1 day 2 days 3 days 4 days

10. What are the reasons for dissatisfaction with Amul milk? Bad taste More thick/fatty Bad odour Get sour Less thick/fatty

11. What are the reasons for non-usage of Amul brand? Never used before Not available in vicinity High price Short self-life

12. Do you want to give suggestion to Amul milk, please explain? ............................................................................................................................................................. ............................................................................................................................................................. ............................................................................................................................................................. .................................................................................................................

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