Amull Buttermilk Research Analysis

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    A

    Project Report On

    A Study on Consumer Buying Behavior of Amul Buttermilk and To

    Study the Market for the Same

    For

    AMUL

    In partial fulfillment of the requirements of

    Master of Management Studies

    Conducted by

    University of Mumbai

    Through

    Rizvi Institute of Management Studies & Research

    Under the guidance of

    Prof. Anjali Talreja

    Submitted by

    Ziya Hasan Khan

    MMS

    Batch: 2013 2015

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    CERTIFICATE

    This is to certify that Mr. Ziya Hasan Khan, a student of Rizvi Institute of Management

    Studies and Research, of MMS III bearing Roll No. 118 and specializing in Marketing

    has successfully completed the project titled

    A Study on Consumer Buying Behavior of Amul Buttermilk and To Study the

    Market for the Same

    under the guidance of Prof. Anjali Talreja in partial fulfillment of the requirement of

    Masters of Management Studies by University of Mumbai for the academic year 2013

    2015.

    _______________

    Prof. Anjali Talreja

    Project Guide

    _______________ ___________

    Prof. Umar Farooq Dr. Kalim Khan

    Academic Coordinator Director

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    ACKNOWLEDGEMENT

    In this project I have made an honest and dedicated attempt to make the research material

    as authentic as it could. And I earnestly hope that it provides useful and workable

    information and knowledge to any person reading it.

    During this small time frame of two months in which the project reached its completion,

    there were a few people whom I would like to make a mention of and without whose help

    the project would have never seen the light of the day.

    I also thank to my internal guide Prof. Anjali Talreja for her timely response, support and

    guidance which immensely helped in giving the project the initial direction it needed.

    I would like to thank my external guide Mr.Vivek Mitra (Officer in Sales In charger

    ZONE 3) who gave me a free hand as far as going about the project work was concerned.

    I dedicate this project to the distributors of Mumbai city who were extremely kind and

    who at times went out of the way to help me. Without their co-operation it would have

    perhaps not been possible to research a few places, which I did, within the stipulated time

    frame.

    RESEARCH OBJECTIVE:

    To know the actual sales of the product.

    To understand the requirement of the product.

    To determine the expansion strategies.

    To understand the impact of various sale promotion strategies on product.

    To understand the buying behavior of consumers w.r.t Amul Buttermilk

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    PREFACE

    The dairy industries companies run mainly on the factors such as availability, service

    frequency, affordability, taste and marketing. Availability plays a vital role because

    purchasing power is depending upon availability of that product, in case distributors and

    retailers service matter a lot. Retailing includes all the activity in selling goods or service

    directly to the customers or personal non business use. It overcomes the time, place and

    possession gap that separates goods and service from those who needs or wants them.

    Retailers as member of marketing channel perform a number of key functions. Some

    functions (physical, title, promotion) constitute a forward flow of activity from the

    company to the customers; other functions (ordering and payment) constitute a backward

    flow from customers to the company. Still others (information, negotiation, finance and

    risk taking) in both directions.

    The project delvers into the workings from the distribution aspect of an FMCG

    organization, in detail. AMUL, being an FMCG company, attaches a lot of significance

    to the distribution aspect of its business. The distribution channel of AMUL holds a lot of

    potential in affecting the demand or sales of AMUL products through delivery on time,

    delivery of variety of products, the retailer-friendliness of the policies being set by the

    distributors and equitable distribution of products to all the retail outlets in a particular

    region, to name a few. So, In order to plan retail coverage we map out the positions of

    Amul outlets, Amul parlors, and competitors outlets. This project was carried out in

    Mumbai city Zone 3.

    For analyzing and presenting information that is tied to geographical location, we divided

    the city in different wards. By analyzing geographical representation and sales data with

    spatial distribution, competitor outlets and the density of others in an area, we identify

    unexplored area and plan location outlets to increase its market penetration. Using such

    research we can ascertain the quality and depth of retail penetration in specific area.

    Addition to this we carried out sales promotion activity through discounts and free

    samples.

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    INDEX

    Sr.no Contents Page no.

    1. Introduction

    1.1 The Birth of Amul

    7-9

    2. Industry Profile

    2.1 Overview of Milk Industry

    2.2 Dairy Enterprise Model

    2.3 Competition Analysis

    10-12

    12-13

    14

    3. Company Profile

    3.1 Anand Milk Union

    3.2 GCMMF

    15

    15

    4. Product Profile 16-17

    5. Marketing Activity Kiosk 18

    6. Data Analysis and Interpretation

    6.1 Consumer Research Data

    6.2 Retailers Research Data

    19-28

    29-34

    7. Research Methodology

    7.1 Research Design

    35

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    7.2 Sampling Technique

    7.3 Method of Data Collection

    7.4 Limitations

    35

    36

    36

    8. Findings 37

    9. Suggestions & Recommendations 38

    10. Bibliography 38

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    INTRODUCTION

    The Birth of Amul

    It all began when milk became a symbol of protest.. Founded in 1946 to stop the

    exploitation by middlemen, Inspired by the freedom movement

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    These seeds of this unusual saga were sown more than 65 years back in Anand, a small

    town in the state of Gujarat in western India. The exploitative trade practices followed by

    the local trade cartel triggered off the cooperative movement. Angered by unfair and

    manipulative practices followed by the trade, the farmers of the district approached the

    great Indian patriot Sardar Vallabhbhai Patel for a solution.

    He advised them to get rid of middlemen and form their own co-operative, which would

    have procurement, processing and marketing under their control.

    In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the

    cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji

    Desai and Tribhuvandas Patel, they formed their own cooperative in 1946. This co-

    operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two

    village dairy co-operative societies and 247 liters of milk and is today better known as

    Amul Dairy. Amul grew from strength to strength thanks to the inspired leadership of

    Tribhuvandas Patel, the founder Chairman and the committed professionalism of Dr

    Verghese Kurien, who was entrusted the task of running the dairy from 1950.

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach

    should become the basis of a National Dairy Development policy. He understood that the

    success of Amul could be attributed to four important factors.

    The farmers owned the dairy, their elected representatives managed the village societies

    and the district union, they employed professionals to operate the dairy and manage its

    business. Most importantly, the co-operatives were sensitive to the needs of farmers and

    responsive to their demands.

    At his instance in 1965 the National Dairy Development Board was set up with the basic

    objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as

    its Chairman and asked to replicate this model throughout the country.

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    INDUSTRY PROFILE

    INDIA is the 2nd largest in the emerging economies in the world, with a GDP growth

    rate of ~6.5%, 3th largest economy in the world (based on PPP) with a GDP of US $

    4.4Trillion, and according to BRIC report published by Goldman Sachs, India will be the

    2 largest economy after China by the year 2035.

    India, world's largest milk producer, accounting for more than 16% of world's total milk

    production, is the world's largest consumer of dairy products. The total amount of milk

    produced has tripled from 23 million tonnes back in 1973 to 95 million tonnes in 2008

    and expected a production level of 135 million tonnes by 2015. But the projected

    demand for milk by 2021-22 estimated at 180 million tonnes which implies that milk

    production will be doubled.

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Milk production is growing at 3.3% while consumption is growing at 5% leaving a gap

    between demand and supply. In order to meet the rapid growing demand and to increase

    the milk production, Union Government has started a central scheme National Dairy Plan

    Phase 1, for a period of 2011-12 to 2016 17.This scheme will be implemented with a

    total investment of about 2242 crore. This scheme main objective is to help provide rural

    milk producers with greater access to the organized milk processing sector and thus to

    bridge the gap between the demand and supply of milk in the country.

    The share of the total milk processing capacity by private sector is 44%of total installed

    capacity of 73 MLPD (Million Liters per Day) in the country. Therefore, the total share

    of the organized sector, both cooperatives as well as the private sector is barely 12%.

    What is, therefore, disquieting is that as much as 88% share of the total milk production

    is commanded by the unorganized sector. In order to attract promote Dairy Industry and

    attract more investment in this sector, government has also reduced the excise duty of

    16% to Zero on Dairy processing Machineries.

    23

    95

    135

    180

    1973 2008 2015 2021-22

    GROWTH (in millions)

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    The untapped potential of the dairy sector is immense and opportunity to set up a new

    dairy venture is great. And there is vast potential for the export of dairy products, as the

    cost of milk production in India being the lowest.

    These factors are attracting huge amount of investments in dairy processing,

    manufacturing dairy processing equipment, fruit packaging equipment and equipments

    for biotechnology related dairy industry.

    Four dairy enterprise models

    The following section presents analysis and comparisons of four dairy enterprise models

    in India. Chosen for the analysis: i) a private dairy operating in Mumbai (NAGORI) ii)

    The Maharashtra State Cooperative as an example of a functioning cooperative, iii) the

    Gujarat Cooperative Milk Marketing Federation as an example of a strong functioning

    cooperative and iv) a mutually aided cooperative society as an alternative model. Models

    such as producer companies (emerging as a new generation cooperative) are still in a

    developing stage.

    Table 8: Model features Private

    dairy

    State

    cooperative GCMMF MACS

    Number of farmers involved

    150 000

    224 000

    2 700 000

    Average liters milk procured per

    day

    700 000

    322 000

    60 000

    Liters of milk processed at dairy

    plant per day

    10 200 000

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    As previously noted, cooperatives have been successful only in some parts of the country.

    This is largely because the cooperative law falls under the state policy and is formulated

    differently in different states. In states such as Gujarat, where the model succeeds, the

    cooperative is headed by elected managers and managed by professionals. In many other

    states, civil servants manage the cooperative, which results in a lot of government

    interference in the day-to-day functioning and leads to a lack of democracy and hence no

    sense of ownership or responsibility at the village level.

    Three key differences distinguish the Gujarat (GCMMF) cooperatives from the other

    states: i) an oversight board elected by farmer members; ii) professionals employed by

    the cooperatives to manage the cooperatives and iii) the cooperatives have autonomy and

    freedom in their operating policies from interference by government and politicians.

    Changing from the cooperative model to the society model has many associated

    bureaucratic problems. To overcome the hassles, the concept of producer companies was

    introduced as a way of transforming cooperatives to work more efficiently as

    representatives of farmers.

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    Farm Level Unorganised Organised Sector

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    Major Competitors

    Amul is a well known brand with a wide product range in FMCG giving a tough

    competition to its competitors. The following are the major competitor in some of its

    product range.

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    COMPANY PROFILE

    Amul (Anand Milk Union)

    Formed in 1946, is a dairy cooperative movement in India. It is a brand name managed

    by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation

    Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat,

    India. It is based in Anand town of Gujarat and has been a sterling example of a co-operative

    organization's success in the long term.

    The Amul Pattern

    It has established itself as a uniquely appropriate model for rural development. Amul has spurred

    the White Revolution of India, which has made India the largest producer of milk and milk

    products in the world. It is also the world's biggest vegetarian cheese brand.

    GCMMF

    Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest

    food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat

    which aims to provide remunerative returns to the farmers and also serve the interest

    of consumers by providing quality products which are good value for money.

    Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream,

    cream, shrikhand, paneer, gulab jamuns, basundi, nutramul brand and others.

    Besides India, Amul has entered overseas markets such as Mauritius, UAE,

    USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African

    countries. Its bid to enter Japanese marketing 1994 had not succeeded, but now it has fresh plans

    of flooding the Japanese markets. Other potential markets being considered include Sri Lanka.

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    PRODUCT PROFILE

    Nutritional Information*

    Amount per 200 ml

    Energy, kcal 26

    Energy from Fat, kcal 9

    Total Fat, g 1

    Saturated fat,g 0.5

    Cholesterol, mg 3

    Total Carbohydrate, g 2.3

    Added Sugar, g 0

    Protein, g 2.1

    Calcium, mg 91

    Sodium, mg 30

    Phosphorous, mg 79

    Thiamine, mcg 25

    Riboflavin, mcg 73

    Niacin, mcg 61

    Folic acid, mcg 4.5

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Unlike carbonated soft drinks, Amul Masti Spiced Buttermilk is 100% Natural and

    Sucrose Free without any color or preservative added. It is a low fat product with lower

    sodium salt content. It contains protein with almost 50% lower calorie than soft

    drinks. The spices and condiments added to the product enhance its taste and flavor.

    Scientific bacterial culture in Amul Buttermilk improves digestion. It is conventionally

    packed in pouches and easily available at Amul Milk outlets spread all over major cities

    of India. Buttermilk is traditionally known as "Chhash" (Gujarat & MP), "Mattha" (UP &

    Delhi), "Tak" (Maharastra), and Ghol" (Bengal).

    Product Application

    Take a glass full in early morning in place of Tea; Amul buttermilk will improve the

    digestive function. Replace your soup with Amul Buttermilk; it will give you dieting

    benefits. Take a glass of Amul Buttermilk after lunch / dinner for better digestion. Just

    give "Tadka" to Amul Buttermilk and use it as your "Dal". Add some coriander cumin

    and salt to Amul Buttermilk and your guest offering is ready. You can prepare Besan

    Kadhi from Amul buttermilk.

    Pricing of Product

    Amul Buttermilk - PLAIN RS 11

    Amul Spiced Buttermilk MASALA RS 5

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    MARKETING THE KIOSK WAY

    A massive KIOSK activity was carried out across zone 3 from the period of 15th

    may to

    15th

    July. The activity includes selling and promotion of Amul Spiced Buttermilk at

    special offer.

    The offer was buy 2 pouch of Amul Spiced Buttermilk (Rs 5/pouch) and get 1 free, Buy 5

    pouch and get 2 pouches free followed by buy 7 pouch and get 3 pouches free.

    The activity was carried across different distributors and retailers point. The activity

    resulted into massive boost in sales in that particular region. Within the period of 15th

    may to 29th

    may around 35 crates were sold.

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    DATA ANALYSIS AND ITERPRETATION

    Consumer Research Data

    Q.1 Gender

    Interpretation According to the survey total sample size of 100 includes 43 male

    respondents and 57 female respondents. This show female population plays greater role

    in purchase decision.

    0 20 40 60 80

    Male

    Female

    Gender

    Male

    Female

    Sr. No. GENDER NO. OF RESPONDENTS

    1 Male 39

    2 Female 61

    TOTAL 100

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Q.2 What would you prefer?

    Interpretation According to the survey, consumer perception about the Buttermilk is

    narrow as majority of them would prefer homemade buttermilk (68%) rather than going

    for packaged buttermilk (32%).

    This perception of consumer can be changed over a period of time with the help of sale

    promotion activity which will make them induce TRAIL.

    68%

    32%

    Preference

    Homemade Buttermilk

    Packaged Buttermilk

    Sr. No. PREFERENCE NO. OF RESPONDENTS

    1

    Homemade Buttermilk

    68

    2

    Packaged Buttermilk 32

    TOTAL 100

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Q.4 Have you ever tried Amul Buttermilk (Chaas)? If yes than are you continue

    using it on day to - day basis?

    Interpretation According to the survey, Majority of the population had tried Buttermilk

    in past and out of the majority there are many potential prospect who are still a regular

    users who can become future sales.

    For this there is a need of creating more and more awareness about the Amul Buttermilk.

    0%

    20%

    40%

    60%

    80%

    100%

    Yes No

    Continuos Usage

    Yes

    No

    Continuos Usage

    Sr. No.

    RESPONSE

    NO. OF

    RESPONDENTS

    CONTINUOS

    USAGE

    1 Yes

    81

    52

    2

    No 19

    48

    TOTAL 100 100

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Q.5 Which of the following brands of buttermilk have you heard of? (Select all that

    apply.)

    0% 20%

    40% 60%

    80% 100%

    Danone

    Amul

    Gokul

    Aarey Buttermilk

    Britania

    Others

    Brand Awareness

    Sr. No. BRANDS % OF RESPONDENTS

    1 Danone 28%

    2 Amul 90%

    3 Gokul 24%

    4 Aarey Buttermilk (Aarey

    center) 48%

    5 Britannia 13%

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Interpretation - According to the survey, the brand awareness of Amul Buttermilk is

    highest among the competitors in the market. This is plus point for the brand as other

    brands from same parent Co. (GCMMF) gives Amul Buttermilk more visibility and

    exposure.

    Co. should use this opportunity by giving free samples of Amul Buttermilk (200ml) with

    other products.

    Q.6 Reason for discontinuing the Consumption of Amul Buttermilk

    (Select all that apply)

    Sr. No. REASONS % OF RESPONDENTS

    1 Taste 58%

    2 Price 13%

    3 Quality 64%

    4 Availability 48%

    5 Other reason

    (please specify) 23%

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Interpretation According to the survey carried on to 100 sample shows that the reason

    for discontinuing the consumption of Amul Buttermilk is QUALITY and TASTE of the

    Product.

    Most of the people didnt like the taste, with that in mind they thought the reason for bad

    taste is because of poor quality of milk substance. Also the availability of the product is

    not there @Distributor or Retailer point.

    Co. should tackle it by improvising on the taste and quality of product. Add new flavors

    to the category and make sure the delivery to the retailers/distributors point is on time and

    in sufficient capacity to meet the requirements of that particular zone.

    28%

    7%

    31%

    23%

    11%

    RESPONSE

    Taste Price Quality Availability Other reasons

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Q.8 Will you consume buttermilk in seasons other than summer?

    Interpretation According to the survey, we come to know about the consumption

    pattern of consumer. Around 59% of the sample will like to consume Buttermilk other

    than summer season.

    But almost half of the sample size will stick to summer as their preferable season for

    consumption. The above response shows that Buttermilk as a product is seasonal in

    nature and max sales will happen only in summer.

    0 10 20 30 40 50 60

    YES

    NO

    RESPONSE

    Sr. No. RESPONSE NO. OF RESPONDENTS

    1 YES 57

    2 NO 43

    TOTAL 100

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Q.9 What would you prefer?

    Carbonated Soft drinks 500ml for Rs 35

    Amul Buttermilk 500 ml for Rs 10

    Interpretation According to the survey conveyed on sample of 100 people shows that

    consumer will prefer Amul Buttermilk over Carbonated Soft drinks when given chance to

    choose between two. This shows that consumer is very cautious related to the health

    factor.

    So company can take advantage of this scenario and convey message showing benefit of

    choosing Amul Buttermilk over Carbonated Soft drinks.

    21%

    79%

    RESPONSE

    Carbonated Soft drinks

    Amul Buttermilk

    Sr.

    No. PREFERENCE

    NO. OF

    RESPONDENTS

    1 Carbonated Soft drinks 500ml for Rs 35 21

    2 Amul Buttermilk 500 ml for Rs 10 79

    TOTAL 100

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Q.10 If Amul Buttermilk is available in new Jeera (Cumin Seed) flavor would you

    like to try it?

    Interpretation According to the survey, it shows that people are looking forward for

    new variants of Amul Buttermilk.

    Co. should definitely come up with new variants and flavors.

    0

    20

    40

    60

    80

    100

    YES

    NO

    RESPONSE

    Sr. No. RESPONSE NO. OF RESPONDENTS

    1 YES 81

    2 NO 19

    TOTAL 100

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Q.11 How much the following attributes matters you while purchasing Packet

    Buttermilk? Justify your attribute by rating it.

    Sr.no

    PREFERENCE

    % OF RESPONDENTS

    1.

    Taste or Flavor

    98%

    2.

    Durability (Shelf

    life)

    35%

    3.

    Price

    77%

    4.

    Qty

    54%

    Taste or Flavor

    Price

    Durability (Shelf life)

    Qty

    98%

    77%

    35%

    54%

    RESPONSE

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Interpretation According to the survey Taste and Flavor of the product makes highest

    priority for consumer. Therefore there should be continuous improvisation in product

    attributes. Other factor like price is secondly preferred priority.

    In case of Amul Buttermilk the product is smartly priced so there is no need of any

    change in price

    RETAILERS RESEARCH DATA

    TARGET GROUP

    REATAIL SHOP

    AREA

    MAHIM to VILE PARLE (ZONE 3)

    Q.1. Do you have cooling facility in your store?

    Yes No

    Sr. No. RESPONSE NO. OF RESPONDENTS

    1 YES 68%

    2 NO 29%

    TOTAL 100%

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Interpretation According to the survey around 70% of the retailers have cold facility

    whereas 30 % dont have any support of cold storage.

    So for a Retailer to keep dairy product (such as Buttermilk) it is must to have cold

    storage.

    So for this reason my 30% of the total population is not tapped because of absence cold

    storage facility.

    Response

    69%

    29%

    YES NO

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Q.3 Which Brand of Buttermilk does you keeps?

    10%

    27%

    20%

    35%

    3% 5%

    Assorment Mix

    Danone

    Amul

    Gokul

    Aarey Buttermilk (Aarey center)

    Britannia

    Others

    Sr. No.

    BRANDS

    NO. OF RESPONDENTS (out of

    40)

    1 Danone 4

    2 Amul 11

    3 Gokul 8

    4 Aarey Buttermilk (Aarey

    center) 14

    5 Britannia 1

    6 Others 2

    TOTAL 40

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Interpretation According to survey most of the retailers keep Aarey Co. Buttermilk,

    after that Amul ranks 2nd

    in the race.

    When reason asked most of the retailers said they get good margin on Aarey product and

    they get lowest margin on Amul products.

    Also consumer are more familiar with Aarey products , most of the retailers said.

    Q.4 Any problem related to the product (Amul Buttermilk)? If yes please specify?

    9

    2

    Problem

    YES NO

    Sr. No.

    RESPONSE

    NO. OF RESPONDENTS (11 out

    of 40)

    1 YES 9

    2 NO 2

    TOTAL 11

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Interpretation - Most of the retailers have problem with Amul Buttermilk, which is not

    good for the brand like Amul.

    The problems were as follows:-

    Margin related Problems

    Replacement of damaged products

    Dumping of old batch production, of which the expiry date is near.

    Late delivery

    32%

    19%

    30%

    19%

    Problems

    Issues related to Amul Buttermilk

    Late delivery Dumping of old stock Replacement Margin

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Q.5 Which variants of Amul Buttermilk if more economical for you? Please specify

    the reason.

    200ml - Pouch pack Spiced Buttermilk

    500ml - Pouch pack Plain Buttermilk

    Interpretation According to the survey, majority of the retailers across zone 3 prefer

    keeping 200ml Spiced buttermilk as compared to 500ml - plain buttermilk.

    Reason given:-

    200ml Spiced Buttermilk

    Size of the product It is easy to hold and store, save space.

    Margin The margin on this product is 0.50 paise/pouch and which

    sells out very fast.

    Which is good as compared to 500 ml pack which has 0.85

    paise/pouch margin?

    Easy to Display It is easy to display the product as a sample.

    Most frequently asked This variant of Amul Buttermilk is most frequently asked

    by the customer as it is ready to serve drink.

    68%

    32%

    Response

    500ml - Pouch pack Plain Buttermilk

    200ml - Pouch pack Spiced Buttermilk

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    RESEARCH METHODOLOGY

    Research methodology is the way to systematically solve the problem. In it we study the

    various steps that are generally adopted by a researcher in studying his research problem

    along with the logic behind them. Thus, When we talk about research methodology we

    not only talk of the research methods but also consider the logic behind the methods we

    used in the context of our research study and explain why we are using a particular

    method or technique and why we are not using others so that research results are capable

    of being evaluated either by the researcher himself or by others.

    RESEARCH DESIGN

    A sample size of 100 consumers and 40 retailers was taken into consideration..

    The survey was conducted in the area Mumbai Zone 3 (includes Vile parle to

    Mahim)

    Sampling techniques:

    A quota sampling technique was adopted because the sample audience was made out of

    potential purchasers of the product. The sample was carefully drafted. A lot of care was

    taken when designing the questionnaire and also when collecting information

    Primary data

    The primary data consists of information obtained from the retailers, distributors and

    through consumer interaction.

    Secondary data

    The secondary data is obtained from the information already published in research

    articles , books and newspaper. The websites like Amul.Com ,Scribd. Com , Wikipedia ,

    PTI , etc were also useful.

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    Methods of Data Collection

    The source of the data collected for the research is both primary data and secondary data

    Primary Data:

    By Observation Method:

    By Personal Interviews: The data was also collected by pitching consumers at retailers

    and distributors place across Zone 3. Each consumer was asked questions with the help

    of tool (questioner). Though the Questioner was close-ended but it made consumers think

    for a while when responding.

    When it comes to retailers the data was collected by visiting the Retail outlets across

    Zone 3 by seeing the displayed Amul products in that stores.

    The data was collected on the following parametrs:

    Price (Margins).

    Visibility.

    Shelf Life.

    Discounts Offered.

    Limitations

    The research was carried out for 2 months which proved to the insufficient to tap

    the accuracy of the study.

    Time factor has been a very big limitation in the research survey like this.

    Restriction w.r.t location on study. We cannot expand our research to other

    geographical location.

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    FINDINGS

    1.With respect to the above study and the findings thereby, the product (Amul

    Buttermilk) is working on regional pattern i.e. Amul Buttermilk Sales is highest in Vile

    Parle and Sanatacruz where as in Mahim it is very low.

    2. The awareness of the product is very low amongst consumers.

    3. Amul Buttermilk as a Product is somewhat seasonal in nature. In summers the sales are

    at peak.

    4. There were about 4 out of 10 local unorganized Buttermilk sellers who were selling

    buttermilk in plain glass bottle with no brand name.

    5. Study shows that Aarey Buttermilk is the biggest competitor for Amul Buttermilk,

    where as Danone is also few steps behind in the race and Gokul has gained competitive

    position as well.

    6. According to the survey it is founded that, Aarey Co. pays highest markup.

    7. According to Survey, Aarey co. has best after sales service (like return of defective

    pouch, customer grievances) followed by Amul and Gokul.

    8. Majority of the dealers are not satisfied with the profit margin of Amul.

    9. Sales promotion scheme had boosted the sales of Amul Buttermilk in certain region.

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    Rizvi Institute of Management Studies and Research Ziya Hasan Khan

    SUGGESTIONS & RECOMANDETION

    1. Company should improve its sales and distribution in order to tackle the problem

    related to late delivery.

    2. Company should distribute free samples more often for making brand popular among

    people.

    3. Company should introduce new variants and flavors.

    4. Distributors and Retailers desire more advertisement to be done through local

    newspaper and cable TV ads. To make consumers aware about the product.

    5. Company should increase the margins of retailers.

    6. Company should target middle class or semi-middle class customers. Also target

    according to the cultural group.

    BIBLOGRAPHY

    www.Amul.com/home/product/63chbjduij/jv

    www.mma.com/ysis

    www.Notca.com/researchdata/ydncid/$hd/km

    www.economictimes.com/archives/13/sjdjdamul?