Potential for Amul Pouch Lassi in Kolkata Market [By Rohit Ranjan & Vikash Kumar]

For Amul

2009 The Taste of India

A Project Report on

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Potential for Amul Pouch Lassi in Kolkata Market

SUBMITTED TO

Amul

BY

Rohit Ranjan

Vikash Kumar

Table of Contents

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Serial No.

Particulars Page No.

1 Acknowledgement 52 List of Tables 63 INTRODUCTION 74 Background 84.1 Scope of Study 84.2 Research Objective 94.3 Research Problem 94.4 Research Design

a) Category Of Researchb) Information Neededc) Data Collection Methodd) Sampling Plane) Areas Covered

10-12

5 Kolkata Lassi Market- An overview 13-146 Competitors Analysis 15

6.1 Loose Lassi Retailers 156.2 Organised Players 156.3 4P Analysis of Competitors

a) Productb) Pricec) Promotiond) Place Distribution Strategy

16-18

7 Research Findingsa) Findings from Consumers surveyb) Findings from General retailers surveyc) Findings from Loose Lassi Retailersd) Limitation and Caveats

19-31

8 Insight From Market Survey 329 Market Potential 32-3310 Demand estimation of Amul Pouch Lassi 3311 SWOT Analysis of Amul Pouch Lassi 3412 Launch Plan- Amul Pouch Lassi 3513 Marketing Objectives 3514 STP Analysis of Amul Pouch Lassi 3615 4 P of Amul Pouch Lassi

a) Product Strategyb) Placement Strategy Distribution Strategyc) Pricing Strategyd) Promotion Strategy

36-43

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16 Post Launch Plan for Amul Pouch Lassi 4417 Annexure 1: Questionnaire for consumers 45-4718 Annexure 2: Questionnaire for General Retailers 48-4919 Annexure 3: Questionnaire for Loose Lassi Retailers 50-51

Acknowledgement

The summer training at Amul has been one of the enriching learning

experiences of our lives. It gave us an opportunity to participate and learn

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about the concept of launching strategy of a new product. Throughout the

course of exploration about the potential of Amul’s proposed Pouch Lassi

we got plentiful opportunity to learn and understand the insight of

consumer’s behaviour. The survey conducted on consumers of Kolkata

and Loose Lassi retailers operating in Kolkata Market gave us the first

hand understanding about the Lassi and curd market of Kolkata.

We would like to thank the authority of Amul for providing us with a good

environment and facilities to complete this project. We would like to

mention unique gratitude towards Mr. Manoranjan Pani (GM, Amul

Kolkata), Deepak Chakraborty for his sincere facilitation in the project and

valuable guidance during the course of project.

We would like to thank to our Facilitating officer of this project, Mr.

Sameer Nayak for the valuable guidance and advice. He inspired us

greatly to work in this project. His willingness to motivate us contributed

tremendously to our project.

We would also like to mention the help and support we received from Mr.

Niladri Chakraborty during our field trip. His critical suggestions helped us

in no small measure.

Finally we would like to thank CIMP for providing us this opportunity to

work with an organization like Amul.

Rohit Ranjan

Vikash Kumar

List of tables

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Serial

number

Name of the table Page no.

1 Respondents Profile 12

2 Market size of Lassi in Kolkata Market 14

3 Share of Branded and Loose Lassi retailers 15

4 Share of Branded Players 15

5 Pricing profile of Competing brands and loose

Lassi retailers

18

6 Cost of production for Loose Lassi retailers 19

7 Attributes affecting purchasing decision of Lassi 26

8 Satisfaction from Existing source of Lassi 27

9 Market potential of Lassi 36

10 Distribution Cost of Amul 43

11 Pricing profile of Proposed Amul Pouch Lassi 44

12 Budget required for Promotion 45

Introduction

Market Area: Kolkata, Howrah and surrounding markets

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Lassi is a traditional Indian drink and it is used as a refreshment drink especially

in summer season. It is made by blending dahi with water, sugar, ice and Indian

spices. Traditionally Bengali people have a special liking for sweet food items

like Rosogulla, Misti Dahi. The taste of Lassi is sweet which makes it more

acceptable by the people of Kolkata as they have a liking for sweet food items.

Lassi as a drink has several advantages first it refresh its consumer and apart

from that it also acts as better filler, a more nutritious and healthy drink. It is a

complete drink and due to its high nutritional value it is consumed by people of

all ages. Lassi has the potential to take place of carbonated drinks.

Homemade Lassi fulfils the requirement of Lassi of Kolkata market and Lassi

sold in open market. Demand of Lassi reaches to its peak in summer season

whereas in winter its demand decreases drastically. Lassi market of Kolkata is

highly dominated by unorganized players (Loose Lassi retailers). Organised

players enjoy a very small market share of Lassi market of Kolkata. The two most

important factors in the marketing of Lassi is quality of Lassi and its availability.

People of Kolkata want Lassi of a brand on which they can trust and it should be

easily available in all parts of Kolkata. Amul’s proposed new product Lassi in

pouch pack would be an interesting addition in the existing product line which

will add value to the brand and helps Amul to reach customers in a better way.

Background

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Amul has its presence in the Lassi market of Kolkata with its product Amul Kool

Lassi but in spite of good acceptance from the consumers of Kolkata this product

is not successful. The major problem with this product is short supply problem.

Amul Kool Lassi is being produced in Gujarat and from there it is supplied to

Kolkata market. Due to this Amul is not able to tap the Kolkata Lassi market.

Thus Amul needs a product which can fill this gap of demand and supply.

This research project will evaluate the market potential of Amul’s pouch Lassi

because Amul want to have a wide presence in Kolkata to tap the Lassi market.

Amul wants to be engaged in the mass production, mass distribution and mass

promotion of pouch Lassi for all buyers and this could be possible only when it

can provide Lassi at an affordable price with better quality visa-a-visa its

competitors (mainly loose Lassi retailers).

The aim of this research study is to assist Amul in making decision about

launching proposed pouch Lassi in the Kolkata & Howrah market. This research

involves developing a database from which conclusions can be drawn about

launching and marketing strategy which can touch and cater to the maximum

consumer base.

Scope of study

The study is aimed at determining the market potential of Lassi market of

Kolkata and its surroundings. An analysis of consumers of Kolkata will be done to

identify unfulfilled needs and wants of consumers regarding Lassi. Alongside an

analysis of Loose Lassi retailers and other competitor’s marketing and

distribution strategies will be done. The study will focus on analyzing

competitor’s strengths and weaknesses and on the basis of these findings design

an efficient launching strategy for proposed AMUL pouch Lassi. The study is

confined to the geographical limits of Kolkata, Howrah and its surroundings.

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Research objective

The major research objectives of this research are following:

1. To estimate the market size of Lassi market of Kolkata

2. To find out the market share of Loose Lassi retailers and their

pricing and marketing strategy

3. To find out the market share of organised players and their

marketing and distribution strategy

4. To find out the perception of consumers regarding Loose Lassi in

respect to Lassi of organised players

5. To find out the preferences of consumers for pouch Lassi of a

strong brand Amul

6. To design a launching strategy for proposed Amul pouch Lassi in

Kolkata market

Research Problems

a) Marketing Decision Objective/ Problems:

Should Amul launch Lassi in pouch pack in Kolkata market?

b) Marketing Research Objective/Problems:

i) What is the perception of consumers about Loose Lassi and

what is their preference for pouch Lassi?

ii) What are the major influencing factors that affect buying

behaviour of customers and how these factors can be used to

create an uncontested market for Amul pouch Lassi?

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Research Design

a) Category of research:

Descriptive

b) Information Needed

i) Sources of Lassi

ii) Level of penetration of Loose Lassi retailers.

iii) Marketing and distribution strategies of organised players.

iv) Consumption behaviour of consumers of Lassi.

v) Factors that affect purchasing decision of consumers.

vi) Factors of existing Lassi with which customers are unsatisfied.

vii) Preference of consumers for pouch Lassi in respect to Loose

Lassi

Data Collection Method

Primary Data:

i. Sample survey of Consumers, non consumers of Lassi using

questionnaire method.

ii. Sample survey of general retailers, Pan Shops who keeps

carbonated drinks using questionnaire method.

iii. Sample survey of Loose Lassi retailers using questionnaire

method.

Secondary Data:

i. Internet

ii. Data available with Amul

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Sampling Plan

Target Population:

General consumers of Kolkata, general retailers, Pan shops

keeping any form of soft drink and Loose Lassi retailers.

Sampling Technique:

Cluster sampling: - Kolkata and Howrah was divided into 20

clusters and from each cluster a set of consumers, Loose Lassi

retailers and general retailers were surveyed. The basis for

consumer and retailers sampling was locality.

Sample size:

Consumers: 396

Consumers of Lassi 335

Buyers of Loose Lassi 274

Buyers of Amul kool Lassi 23

Buyers of competing Brands 18

(Table 1: Respondents Profile)

General retailers: 58

Loose Lassi retailers: 97

Loose Lassi retailers 97

Retailers keeping Amul Kool Lassi 29

Retailers keeping competing brands of Lassi

4

Retailers not keeping Lassi 25

(Table 1: Respondents Profile)

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Areas covered:

DamDam, Maniktala, Shyam Bazar, Shobha Bazar, Ulta Danga, Salt Lake, Belia

ghat, Garia, Jadavpur, Dhakuria, Behala, Thakurpukur, Sealdah, Hazra, Bada

Bazar, Park Street, Dharamtala, Rasbihari, Kalighat, Alipoore, Khidirpur, Bagha

jatin, Howrah and outskirts of Kolkata.

Kolkata Lassi Market – An Overview

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Kolkata is a big market of Dahi. Traditionally, people of Kolkata have a special

liking for Misti Dahi and Dahi made products. Traditionally Bengali does not have

a habit of consuming Lassi. They have got into this habit of consuming Lassi after

following the food habit of non-Bengali people specially Marwari and Punjabi.

People from Bihar, Uttar Pradesh, Punjabi and Marwari have a special liking for

Lassi. The weather of Kolkata is very humid thus Kolkata is a very big market of

refreshment drinks very. Most of this sell of refreshment drink comes in the form

of impulsive buying.

The population of Kolkata and Howrah is around 1.5 Crore. The total requirement

of Lassi per day of Kolkata market is around 3.8 LLPD. Out of this requirement,

homemade Lassi is fulfilling 1.7 LLPD (45%) of requirement of Lassi. The Lassi

sold in the market fulfils rest of the requirement of Lassi. Unorganized players

have a major say in that.

Lassi Market size of Kolkata (LLPD)

Homemade 1.7

Lassi sold in Market 2.1

(Table 2: Market size of Lassi of Kolkata)

Lassi sold in the market:

Out of total Lassi sold in the market, the unorganized players enjoy around

98% (2.05) of market share and the organised players enjoy only 2% of

market share of Lassi market of Kolkata.

Lassi sold in Kolkata market (2.1LLPD)

Branded (Pouch+ Tetra) 0.05

Loose 2.05

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(Table 3: Share of Branded & Loose Lassi)

In the organised segment, there are three players. Among these brands

Arambagh and Bens supply Lassi in pouch pack whereas Amul supply Lassi in

tetra pack. Among these organised players, Arambagh has a market share of

40% and both Amul and Bens enjoys a market share of 30% each.

Brand Sales volume (LPD)

Amul 1500

Arambagh 2000

Bens 1500

Total 4500

(Table 4: Share of Branded players)

Kolkata being the capital of West Bengal, is a hub of offices, both government

and private. This has resulted in a greater population being in the service class,

which has considerably increased the literacy rate of the city. Keeping this fact in

mind, it is comparatively easier to generate awareness about the hygiene and

adulteration issue associated with the loose Lassi and it is vindicated by the

increasing number of consumers want to shift to the branded Lassi. But still

because of product unavailability people have to rely on Loose Lassi retailers.

Competitors Analysis

Lassi market of Kolkata is highly dominated by Loose Lassi retailers. They enjoy

a market share of more than 95%. Rest of the market is enjoyed by organised

players Amul, Arambagh and Bens.

Loose Lassi retailers:

There are around 4000 Loose Lassi retailers operating in Kolkata and Howrah.

Most of these Loose Lassi retailers are seasonal. They operate mainly during

summer, Rainy and during festival (Durga Puja) season. Some of the Loose Lassi

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retailers operate throughout the year. Loose Lassi retailers are not evenly

distributed in every area of Kolkata. In some areas like Salt Lake, Behala,

Thakurpukur it is hard to find a loose Lassi retailer. But areas like Sealdah, Park

Street, Dharamtalla, Bada Bazar, Ulta Danga, Writers Building are the hub of

loose Lassi retailers. The retail price of Loose Lassi varies from Rs 5 to Rs 15.

These retailers make a margin of more than 100%.

Organised Players:

Arambagh

Among the organised players Arambagh enjoys the highest market share. Per

day consumption of Arambagh Lassi is around 2000 Litre.

Bens

Bens also supply Lassi in pouch pack like Arambagh. Per day consumption of

Bens Lassi is around 1500 Litre.

These two brands have very limited presence in Kolkata market. They have their

presence only in south Kolkata specially Garia and its surroundings. These two

companies are not able to supply pouch Lassi in every part of city. Because of

operating in very small area these companies cannot make success in the Lassi

market of Kolkata.

4P Analysis of competitors:

a) Product

i. Loose Lassi retailers offer Lassi in glass. The quantity of Lassi

provided per Glass is 200 ml.

ii. Arambagh and Bens offer a similar kind of product i.e. Lassi in

pouch pack with a pack size of 200ml.

b) Price

i. The retail price of Loose Lassi is Rs 10 in most of the areas.

However it varies in some places from Rs 5 to Rs 15. In Sealdah

region retail price of Lassi is Rs 5 which they are able to keep by

mixing more quantity of water and ice.

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ii. The retail price of Arambagh pouch Lassi is Rs 8 whereas the retail

price of Bens pouch Lassi is Rs7. The extra price charged by

Arambagh is passed to distributors and retailers as Arambagh

provide greater margin to its distributors and retailers in

comparison to Bens.

Name of

Brand

Pack

Size

Type of

packing

Cost to

WD (RS)

Margi

n

Retailer

’s Price

Margin MRP

Aramba

gh

200 ml Pouch 6 0.75 6.75 1.25 8

Bens 200 ml Pouch 5.55 0.65 6.2 0.8 7

Loose 200 ml Glass 4.96 5.04 10

(Table 5: Pricing Profile of Competitors)

Average cost of Milk/ lit (Rs) 24

1 Lit Milk 900 gm Dahi

Cost of 1 KG Dahi (Rs) 27

1 KG Dahi 10 glasses of Lassi

1 kg sugar makes 22 glasses of Lassi

Cost of 1 KG sugar (Rs) 24

Other cost/ Glass (Ice, Water, Straw, Bhand) (Rs) 1.2

Cost of 1 Glass of Lassi 4.96

Retail Price (Rs) 10

Margin (%) 102%

(Table 6: Cost of Production for Loose Lassi retailers)

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Cost of Production for Loose Lassi Retailers

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c) Promotion

i. Loose Lassi retailers being an unorganized sector does not have any

promotion strategy apart from mouth publicity.

ii. Arambagh and Bens have no promotional strategy for their Pouch

Lassi.

d) Place

i. Loose Lassi retailers have their shops mainly in market places, near

bus stands and near Railway station. Movement of consumers is

very frequent at these places which help them in having a good

business.

ii. Arambagh and Bens have their presence only in south Kolkata and

outskirts of Kolkata. Thus strategically they are not properly placed

in Lassi market of Kolkata.

Distribution Strategy

Both Arambagh and Bens follow same distribution strategy. These

companies also have their pouch milk in market. They use their existing

distribution channel of pouch milk for the supply of pouch Lassi. Lassi is

distributed through Milk van and it is supplied to only those distributors

who keep milk of these companies. From there it is supplied to only those

retailers who keep milk of these companies. Pouch Lassi is supplied in

early morning around 2-4 am to distributors and till the time it is supplied

to retailers it is kept in open place. As a result of this the quality of Lassi is

decreased till the time it reaches to end consumer.

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Research Findings

To study the Lassi Market of Kolkata a survey was conducted for duration of one

month in and around Kolkata.

Findings of Consumer Survey

i. Consumers of Lassi and reason for non-consumption:

Lassi is a popular drink of Kolkata market as 85% respondents said that they

consume Lassi and among the 15% who do not consume Lassi the main reason

for non-consumption are taste and health problems. Among the non-consumers

16% respondent do not consume Lassi because of its unavailability. Thus if Lassi

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is being provided in these areas then these non-consumers of Lassi can become

the consumer of Lassi.

ii. Perception toward Lassi and preferred soft drink

85%

15%

Perception towards Lassi

Positive Negative

More than 3/4th of the population has a positive perception towards Lassi and

they considered Lassi as a nutritious and healthier drink.

When the respondents were asked about their preferred soft drinks then 44%

respondents said they would prefer Lassi that shows the popularity of Lassi

among the consumers of Kolkata market.

iii. Sources of purchasing Lassi and Dahi

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Respondents were asked to express their source of Lassi and from there it was

found that around half (45%) of the requirement of Lassi is fulfilled by

homemade Lassi and rest of the requirement is fulfilled by Lassi sold in the

market.

From the survey, it was observed that the major chunk of respondents that

prepare Lassi in home treat it as a traditional drinks and they prepare it by using

homemade Dahi.

iv. Lassi consumed from Market

In the case of Lassi consumed from market, around 90% respondents said that

they purchase it from Loose Lassi retailers. Among the branded segment 64%

respondents said they consume Amul Kool Lassi.

From the survey it was observed that the people have become habituated to

purchase Lassi from Loose Lassi retailers because of their deep penetration in

the market

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v. Purchasing and consuming time of Lassi:

7%

61%

30%

2%

Consuming time of Lassi

MorningNoonEveningNight

According to the respondents the most frequent time for purchasing and

consuming Lassi were at noon and evening. Only 1 % respondent were

purchasing Lassi in morning and consuming it during daytime and those

respondents were mainly the customer of Arambagh and Bens. Thus, on the

basis of findings it can be concluded that Lassi is more of an impulse product

rather than take away product.

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vi. Frequency of consumption:

Daily Every second day

once in a week occasionally

respondent number 15 20 82 218 NaN

respondent % 4 6 25 65 NaN

25

75

125

175

225

Axis Title

Respondents were interviewed to know about their frequency of consumption of

Lassi. The survey reveals that 65 % of the respondents consume Lassi

occasionally that is at every fifteen days. The findings suggest that Lassi is not

their need based product and they take it mainly as a refreshment product

during summers.

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vii. Purchasing decision:

Attributes that effects Purchasing decision Of Lassi

(Table

7: Attributes effecting purchasing decision of Lassi)

Here we had tried to identify the attributes which the consumer considered

important while purchasing Lassi on a 3 point rating scale i.e. 1 for high

importance, 2 for medium and 3 for low importance. The findings revealed that

consumer had rated taste, freshness, health and hygiene as most important

while purchasing Lassi whereas the rest attributes is of medium importance. This

outcome would help Amul to develop more customized Lassi that can be

acceptable to the consumers.

viii. Satisfaction level:

Satisfaction from Lassi generally consumed

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Order of Priority Attribute Points

1. Taste 1.071

2. Freshness 1.101

3. Health 1.164

4. Hygiene 1.183

5. Convenience of Purchase 1.633

6. Price 1.851

7. Shelf Life 1.972

8. Pack Size 2.131

Order of Priority Attribute Points

1. Taste & Freshness 2.901

2. Availability 2.634

3. Price 2.189

4. Health & Hygiene 2.185

5. Packaging 2.039

6. Shelf Life 2.021

The Taste of India

(Table 8: Level of satisfaction with Lassi generally consumed)

Respondents were asked to rate their existing Lassi which would seek to know

the level of satisfaction for each attributes so that Amul could take measures

while developing and supplying Lassi. Respondents were asked to rate on 4 point

scale that was 1 for poor , 2 for average, 3 for good and 4 for excellent.

Respondents rated taste & freshness & price as good and remaining four

attributes as average (were not up to their expectation).

ix. Awareness and preference:

65% of respondents were aware of Amul Kool Lassi being available in their

nearby area and more than 3/4th respondents have expressed their willingness to

prefer Amul Lassi in pouch as they can get the same product at lower price. This

finding suggests that Amul should launch Amul Lassi in pouch pack.

x. Preferred pack size and price:

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The ideal pack size suggested by respondents was of 200ml which was

supported by more than 50% respondents and the preferred price suggested by

respondents was Rs 7.

xi. Shift and consumption level:

Of those respondents who have preferred Amul Lassi in pouch, 70 % have given

their consent to shift from their existing Lassi to Amul Pouch Lassi provided that

quality and taste would be good.

46 % of the respondents that will shift to Amul Lassi have told that this shift will

increase their consumption level.

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Findings of General Retailers survey:

a) Retailers not keeping Lassi:

This survey was carried out for the retailer to know the reason behind not

keeping Lassi and their willingness to keep it.

It was identified that half of the retailers were not keeping Lassi due to

unavailability of product. It was also found that some of the retailers that were

keeping Amul Kool Lassi has stopped keeping due to the lack of supply at regular

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interval which was a basic problem for Amul as it was suffering from short supply

problem.

Of the total retailers surveyed that were not keeping Lassi around 70 % were

ready to keep pouch Lassi of a good brand. The rest were not ready to keep it

due to mainly above mentioned reason.

b) Retailers Keeping Branded Lassi

i) Time of sell and Margin:

Knowledge about the actual time of sale of Lassi can be immensely helpful for

Amul in minimizing the supply demand gap and also to minimize the logistics

cost associated with distribution.

It is clearly evident from the chart that the maximum number of customer

purchase Lassi during day time especially in summer as a refreshment drink.

When retailers were asked about the margin they make by selling one pack of

Lassi, 65% of the respondents told about margin of Rs 0.5-1.0.

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ii) Preferred Pack size and Price

Preferred pack size & price:

The suggested pack size and price preferred by retailers for proposed Amul

pouch Lassi was of 200 ml and having a price of Rs7. Thus the suggested pack

size and price from both consumer survey and retailer survey are same. This will

help Amul in making decision about pack size and price.

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Findings from Loose Lassi Retailers survey:

i) Source of Dahi and Milk:

More than 90% Loose Lassi retailer use self prepared curd for preparing Lassi

and their major source of Milk for preparing curd is loose Milk procured from

milkman. One finding came out from this survey was that the retailers prefer to

buy buffalo milk as it have high fat contents (gives more thickness to dahi)

irrespective of its high price than the cow milk.

ii) Customer arrival time and kind of customer

iii)

iv)

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From the survey it was found that maximum number of customer arrival happens

during the daytime and the maximum sales of Lassi comes from the walk-in

customer.

Actually it was observed that the loose Lassi retailers were deeply penetrated in

and around the commercial places, railway stations, bus stop etc. where

maximum movement of people occurs.

LIMITATION & CAVEATS

1. Total coverage of the study was limited to few geographical areas.

2. Sample size of the study was restricted to 600 respondents only.

3. Most of the respondents (especially loose Lassi retailer) hesitate to give

information but how ever an attempt was made to collect the data

systematically.

4. Time was the one constraint of the survey.

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Insight from Market Survey

i) Availability of Lassi in every part of city is major because in its many

potential customer go for other form of soft drinks. Amul can fill this gap

by providing its Lassi in every part of Lassi and can capture this market.

ii) Absence of organised players in this market will be helpful for Amul as it

will have first mover advantage in this segment as the other two players

have a very limited presence in Kolkata.

iii) Consumers are not satisfied with the quality (Health & Hygiene) of Loose

Lassi retailers, Amul can count on it as it has a good brand image and

people have faith in the quality of Amul products.

Market Potential

The requirement of Lassi of Kolkata market is 3.8 LLPD. But the potential of

market is more than this existing figure. In the survey it is found that around

2.5% do not consume Lassi because of unavailability of Lassi. Around 45%

respondents said that their favourite soft drink is Lassi but they do not consume

it frequently because it is not easily available at every place. If Lassi is provided

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properly in every part of the city, the frequency of consumption of these

consumers of Lassi will increase. Around 45% respondents even said that if Amul

pouch Lassi will come in market then it will increase their consumption of Lassi.

Then going by the conservative approach the market potential of Lassi is 5 LLPD.

Population of Kolkata market 15000000

% 0f population whose consumption will increase 40%

Quantity of Lassi consumed at a time by a consumer 200 ml

Increase in consumption (Assumption) 200 ml extra in every 10 days

Latent Demand = 15000000*40%*0.2/10

Existing Market Size 3.8 LLPD

Total Market Potential 5 LLPD

(Table 9: Market potential of Lassi)

Demand estimation of Amul pouch Lassi

Pouch Lassi is a mass product and its target consumer is very big. To cater to

this large base of consumers it should be available at maximum retail points. At

the time of launch it should be available at around 4000 retail outlet which will

include APO, General retailers keeping Dairy line products of Amul, stores

keeping carbonated drinks and Pan Shops. If we consider 1 crate per point on

average then the demand would be 40000LPD. This demand will increase later

on as the product gets popular and the number of retail points increases. The

requirement of Lassi will also increase from 1 crate per point to around 1.7-2

crate per retail points. Thus the demand of Amul pouch Lassi will reach to around

1.5 LLPD.

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SWOT Analysis of Amul Pouch Lassi

Strengths

• Strong Brand name of Amul

• Better quality of Lassi at affordable price in comparison to Loose Lassi

retailers

• Strong distribution network and established infrastructure at each level

• Experience of selling pouch Lassi in other parts of country

Weaknesses

• No weakness

Opportunities

• Huge potential market (5 LLPD)

• Lack of competition from organised players

• Price advantage

Threats

• Fear of new entrant in the market

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The Taste of India

Launch Plan- Amul Pouch Lassi

AMUL has got a strong brand name and AMUL’s products are known for its

quality. Amul has year’s long relationship with customer and enjoys a reliable

image which makes it easier for AMUL to launch a new product and capture a fair

market share for it in comparison of its other competitors. Thus to launch a

product Amul need to have a launching strategy which will add to existing brand

image. A proper launch and marketing strategy will help the product to capture a

fair market share.

On the basis of our gathered information of the Lassi market of Kolkata, it can

easily be concluded that there is a reasonable market opportunity for AMUL to

launch its pouch Lassi.

Marketing Objectives

Short term objective : To capture 20% market share of Kolkata Lassi

market within 1 months of launch

Long term objective: To capture 60% market share of Kolkata Lassi market

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STP Analysis of Amul pouch Lassi

Segment : Mass Product

Target consumers

a) Lower middle, Middle income group customers

b) Institutional Customers like IRCTC, College & Office Canteens

Positioning

It will be positioned as a refreshment and hygienic product.

4P of Amul Pouch Lassi

Product strategy

Core Product: Fresh and pasteurized Lassi packed in poly-film pouch form and

a straw will be provided with it.

Packing

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a) Pouch size: 250ml (The suggested pack size was 200ml but looking at the

infrastructure available it should be 250 ml.)

b) Pack size for WD: 250ml*40

Branding: Amul Masti Lassi

Design on pouch: Same as on Amul Masti Dahi pouch (Amul Masti Dahi in

pouch is a hit product in market, thus Lassi in pouch can get easy recognition.)

Placement Strategy

Launch time

Lassi is a seasonal product and its sells pick up in March, thus Pouch Lassi of

Amul be launched in 2nd week of March 2010. During the entire summer product

will be established in the market and achieve maximum sales.

Launch target

a) 35000 LPD within 10 days of product launch

b) 75000 LPD within 30 days of product launch

Channel partners

a) Wholesale Distributors (WD)

b) Retailers/ APO

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• Proposed Number of retail outlets : 4000

• Proposed Number of WD : 14

• Area coverage plan: 300 retail outlets/WD

• The number of retail outlets will increase, as the product gets familiar and

accepted by people of Kolkata.

• Minimum 1 crate of Lassi placed at each retail point of Amul pouch Lassi.

Role of Channel Partner

1. WD (wholesale Distributors)

a. Important link between Company and Retailer

b. Primary sales take place at this level

Infrastructure required

a. Deep refrigerator to store goods

b. Delivery Vehicle

2. Retailers

a. Purchase goods from WD

b. Sell goods to end consumer

Infrastructure required

Refrigerator

Type of retailers

a. General retailers/ Pan shops

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b. APO

c. Institutional players

Distribution Strategy

• Distribution Channel

a) Amul Pouch Lassi is different from the existing fresh line and dairy line

products of Amul. Shelf life of existing fresh line products is 18-24 hrs

whereas shelf life of Dairy line products is more than 10 days. The shelf

life of proposed pouch Lassi will be 2-3 days. Thus, it needs a separate

distribution channel other than the existing Fresh line and Dairy line

distribution channel.

b) New WD should be selected and they can have similar kind of product in

their kitty like Pouch Lassi, Pouch Butter milk, Misti Dahi and Plain Dahi in

cup as the shelf life of all these products is around 2-3 days.

c) Lassi will be supplied in crate through insulated medium size vehicles

(Tata Ace) from plant to distributors.

d) From WD Pouch Lassi should be supplied to retail points through small

insulated vehicles during 10-1 am.

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Manufacturing Plant

Insulated Tata Ace

Wholesale Distributors

Retailers, APO& Institutions

No Storage

StorageInsulated Tempo

The Taste of India

Distribution diagram

Distribution Cost

  Distribution Cost  

    Kolkata

    Tata Ace

  Up to 100 KmBeyond 100 Km

Rate (Rs) 900 5 per Km

Actual Cost (Rs) 900 500Per Vehicle Transportation Cost (Rs) 1400

Vehicle Capacity 1000 Lt (4000 pouches)Transportation Cost per pouch (Rs) 0.35

(Table 10: Distribution Cost)

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Distribution Scheduling Cycle

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Day0 11pmDispatch of Goods from

Plant

Day1 10-2pm

Goods at retail points

Day1 7am

Goods delivery to

WD

Day1 10pm

Vehicle loading at

Plant

Day1 11pmDispatch of

Goods for D2

Day1 7pm Order to the

plant for Day3

Day1 6 pm

Estimated order at

MMO

Day2 10-2am

Goods delivery to

WD

Day2 7amGoods

delivery to WD

This process will be repeated and in a week Goods will be dispatched six times.

The Taste of India

Pricing Strategy

The following could be the price structure of Amul pouch Lassi:-

Pack Size

QuantityWD Price

WD Margin

% Margin

Retailer Price

Retailer Margin

% Margin

MRP MRP/Pack

250 ml

250 ml *40 Pouch

230 20 9 250 30 12 280 7

(Table 11: Pricing profile of Amul pouch Lassi)

Promotion Strategy

o Free sampling: - Pre-testing of pouch Lassi for 3 days.

o Trade scheme

For retailers: 1pouch of Lassi free with every purchase of 20 pouch of Lassi for

first 2 weeks.

o Media Activities

a) Print Media Advertisement: Ad in 1 major vernacular and 1 national

English Newspaper for the first week of launch period

b) FM Radio: Airing the ad or jingle for the first 2 weeks in local FM like Radio

Mirchi or Big FM for at least 8 times a day

o POP support

a) 500 banners across the roads of Kolkata at the time of launching the

product

b) 2000 stickers at retail points

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c) 750 Stand board

d) 2000 leaflet for institutions like IRCTC, Hotels and Canteens

o Outdoor activity

100 kiosks at public places like parks, religious places, apartments, and

stadiums during match time for first two weeks.

Budget required for Promotional Purpose

  Piece Rate/piece

(Rs)

Days Amount

(Rs) 

Banners 500 250   125000

Stickers 2000 2   4000

stand board 1000 300   300000

Leaflets 2000 1   2000

Kiosk 100 200 14 280000

Free sampling

(pouch)

10000 5.75 4 223000

Trade scheme (4000

crate)

2000 5.75 14 161000

Advertisement        250000 

      Total  120450

0

(Table 12: Budget required for promotional purpose)

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The Taste of India

Post Launch Plan for Amul Pouch Lassi

• WD and retailers addition: Amul pouch Lassi is a mass product and the

size of target consumers is very big i.e. 1.2 cr. It is an impulse product

thus this product can produce desired result only if it is available at

maximum retail points so that it is easy for consumers to purchase and

consume it.

• Post- launch survey

a) ATR assessment of Amul Pouch Lassi.

b) Customer and retailer satisfaction with quality and service of new

product.

• Future plans

a) Work to improve customer and retailer satisfaction and remove

complaints from the product.

b) Study the finding of survey and act to improve the value of product.

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Annexure 1

Questionnaire for consumers: (Lassi in pouch)

Dear Respondent,

As part of marketing research we are conducting a survey related to Lassi. For this purpose we would like you to spare a few minutes and share your views with us.

Thank You.

Name: …………………………………………

Address: ……………………………………. Contact No. ………………………………..

Gender: a) Male b) Female

Occupation: a) Business b) Service c) Housewife d) Student e) Others

Income: a) Less than Rs15000 b) Rs15000-30000

c) Rs30000-50000 d) More than Rs50000

Family size ……………………………………………

_____________________________________________________________________________

1. Do you consume Lassi as a drink? a) Yes d) No

(If yes then go to question no 3 else question no 2)

2. Why don’t you consume Lassi?a) Unavailability b) Taste c) Health problems d) other (specify……………………..)

3. How do you perceive Lassi as compared to other soft drinks (carbonated, fruit juice)?

………………………………………………………………………………………………………………………

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4. Provided an option which soft drinks will you like to purchase and consume from a shop which keeps all kinds of soft drink?a) Carbonated drinks b) Fruit based drinks b) Flavoured milk d) Lassi

5. Do you prepare Lassi in home or purchase from outside?a) Only in home c) Mostly from Market

b) Purchase from market d) Mostly at Home

6. When prepared in home from where do you get Tak (plain) Dahi?

a) Homemade b) Loose c) Packed d) Any

7. When purchase from market what kind of Lassi do you usually purchase?a) Pouch b) Loose c) Tetra Pack d) Any

8. If packed which brand of Lassi do you normally buy?a) Amul b) Arambagh c) Bens d) Other (Specify)…………

9. When do you generally purchase Lassi in a day?a) Morning b) Noon c) Evening d) Night

10.When do you generally consume Lassi in a day?a) Morning b) Noon c) Evening d) Night

11.In your family who prefers to consume Lassi?a) Children b) Youngster c) Middle aged d) Old people

12.How often do you consume Lassi?a) Daily b) Every second day c) Once in a week d)

Occasionally

13.Which of the following attributes do you consider important while

consuming Lassi?

High Importance Medium Importance

Low Importance

PriceTasteFreshnessShelf LifePack SizeConvenience of purchaseHealthHygiene

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14.How do you rate your existing Lassi?

Attribute Poor Average Good Excellent

Taste & freshness

Price

Packaging

Health& hygiene

Availability

Shelf life

15. In Which Season do you consume Lassi?

Yes No

a) Summer ……….. …………b) Winter ……….. …………c) Spring ……….. …………d) Rainy ……….. …………e) All Season ………... ………...

16.Are you aware of Amul kool Lassi being available in your nearby outlet?a) Yes b) No c) Don’t know

17.Will you prefer Amul Lassi in pouch?a) Yes b) No

18.What should be?Pack size of Amul Lassi in pouch

a) 150ml b) 200ml c) 250ml d) 500ml Price (200ml)

a) Rs5 b) Rs6 c) Rs7 d) Rs8

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19. Provided an option of Amul Lassi in pouch at cheaper price will you shift from your current source of Lassi to Amul Lassi?a) Yes b) No c) Don’t know

20.If yes then will it increase your consumption and by what quantity?a) Yes b) No c) Don’t know

Annexure 2

Questionnaire for Loose Lassi Retailers: (Lassi in pouch)

Dear Respondent,

As part of marketing research we are conducting a survey related to Lassi. For this purpose we would like you to spare a few minutes and share your views with us.

Thank you.

Name of the shop: ……………………………………………………………

Area: ……………………………………………………………………………………..

_____________________________________________________________________________

1) From how many years are you in this business?………………………………………………………………………………

2) In which season do you sell Lassi?a) Summerb) Rainyc) Winterd) Springe) All season

3) How much quantity of Lassi do you sell per day?a) Less than 20 Lit b) Between 20 to 30 Lit c) More than 30 Lit

4) What is the shelf life of Lassi prepared by you?a) 5 hrs b) 8 hrs c) 1 day

5) How do you get curd for making Lassi?

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a) Self prepared curd b) Purchase loose Curd

c) Purchase Branded curd

6) In case of self prepared curd from where do you get milk?

a) Amul Taza b) Mother Dairy DTM c) From Milkman (buffalo or cow milk) d) Other

7) Do you buy high fat /SNF milk while preparing good quality of curd?

………………………………………….

7) What is the cost of milk/lit?

………………………………………………………………………

8) In case of purchasing branded curd which company’s curd do you use?

………………………………………………………………………………………………………………………………

9) Quantity of Lassi/glass: …………. Rate/glass: ………………….

10) How many glasses of Lassi do you prepare from :

1kg of curd: ………….. 1kg of sugar: …………………

One slab of Ice: ……………………

11) At what time maximum customers come to your shop?a) 9-12 am b) 12-4 pm c) 4-8 pm

12) What kind of customers generally come to your shop?a) Permanent and regular b) Permanent but irregular c)

Running

13) From what kind of customers do you get maximum sales?a) Permanent b) Running

14) What portion of your income is generated through Lassi business?……………………………………………………………………………………………………………………….

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Annexure 3

Questionnaire for Retailers: (Lassi in pouch)

Dear Respondent,

As part of marketing research we are conducting a survey related to Lassi. For this purpose we would like you to spare a few minutes and share your views with us.

Thank you.

Name of the shop: …………………………………………………………………

Kind of Shop: a) APO b) General Retailer

Area: ……………………………………………………………………………………..

_____________________________________________________________________________

1) Do you keep Lassi?a) Yes b) No

(If yes then go to question no 5 else question no.2)

2) Why don’t you keep Lassi?a) Lack of demand c) Product unavailability b) Storage problem d) Lack of resource

3) Do you keep other soft drinks (carbonated, fruit juice)?a) Yes b) No

4) If yes, will you like to keep Pouch Lassi of a good brand?a) Yes b) No

5) Which brand of Lassi do you keep?a) Amul b) Aram Bagh c) Meghna Dairy d) Bens e)Other

6) How much quantity of Lassi do you sell per day?b) Less than 20 pak b) Between 20 to 30 Pak c) More than 30 Pak

7) At what time maximum customers come to your shop?

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b) 9-12 am b) 12-4 pm c) 4-8 pm

8) What kind of customers generally come to your shop?b) Permanent and regular b) Permanent but irregular c) Walk in

9) From what kind of customers do you get maximum sales?b) Permanent b) Walk in

10) What is the margin per pack do you make from Lassi?a) Rs 0.5-1 b) Rs 1-1.5 c) Rs 1.5-2.0 d) Rs2.0-3.0

11) At what time Lassi is being supplied to you?…………………………………………………………………………………………………………….

12) Does Amul Kool Lassi match to your expectations?(For retailers dealing with Amul Kool Lassi)a) Yes b) No

13) If No what is the problem a) Quality problem …………b) Price problem …………c) Supply problem …………d) Packaging …………e) Margin problem ………….

14) Customer purchases Amul cool Lassi because of

Yes NOa) Price …………. ………….b) Quality …………. ………….c) Hygiene …………. ………….d) Packing …………. …………e) Others ………….. …………

15) Do the customers ask for Pouch pack of Amul Lassi and if yes what is the frequency of that?………………………………………………………………………………………………………………………………

16) What should be the Pack size of Amul Lassi in pouch?a) 150ml b) 200ml c) 250ml d) 500ml

Price (200ml)a) Rs5 b) Rs6 c) Rs7 d) Rs8

17) At what time will you like pouch Lassi to be supplied to your counter?

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……………………………………………………………………………………………………………………………

References:

1. http://www.amul.com

2. http://www.indiadairy.com

3. http://www.nddb.org

4. http://indiastat.com

5. http://indairyasso.org

6. http://chillibreeze.com

7. http://www.mapsofindia.com

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