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The Taste of India PROJECT REPORT ON “A Study on Penetration of Amul Milk in Retail Outlets of Pune City” This study was conducted from 8 th June 09 to 8 th August 09 At Gujarat Co-operative Milk Marketing Federation Ltd. BY: SUMEET SINGH JASROTIA PGDM OF A report submitted in partial fulfillment of the requirements of PGDM (2008-10) ASIAN SCHOOL OF MANAGEMENT 1

Market Penetration of Amul Milk

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Page 1: Market Penetration of Amul Milk

The Taste of India

PROJECT REPORT ON

“A Study on Penetration of Amul Milk in Retail Outlets of Pune City”

This study was conducted from 8th June 09 to 8th August 09

AtGujarat Co-operative Milk Marketing Federation

Ltd.

BY:SUMEET SINGH JASROTIA

PGDM

OF

A report submitted in partial fulfillment of the

requirements ofPGDM (2008-10)

Company Guide: Faculty Guide:Mr. PRANIL JADHAV Prof. K.K BHASINSENIOR EXECUTIVES (SALES)OF GCMMF LTD PUNE

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INDEX

S.NO. CONTENTS PAGE NO.

1 ACKNOWLEDGEMENT 32 DECLARATION 43 CERTIFICATE BY GUIDE 54 INTRODUCTION TO THE PROJECT 65 EXECUTIVE SUMMARY 86 INDUSTRY PROFILE 97 CHAPTER 1- INTRODUCTION AND 13

HISTORY OF THE COMPANY8 CHAPTER-2 OBJECTIVE AND SCOPE 259 CHAPTER-3 RESEARCH METHODOLOGY 2610 CHAPTER-4 DATA ANALYSIS AND 28

INTERPRETATION11 CHAPTER-5 LIMITATIONS 3912 CHAPTER-6 FINDINGS 4013 CHAPTER-7 SUGGESTIONS AND 41

RECOMMENDATIONS14 ANNEXURE 4215 PRODUCT PROFILE 45

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ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for Kaira District Co-operative Milk Producers’ Union Ltd., Anand. It has been an enriching experience for me to undergo my summer training at AMUL, which would not have possible without the goodwill and support of the people around. As a student of ASIAN SCHOOL OF MANAGEMENT, PUNE I would like to express my sincere thanks too all those who helped me during my practical training programme.

Words are insufficient to express my gratitude toward Mr. Pranil Yadav, the pune head of AMUL.

At last but not least my grateful thanks is also extended to Mrs. Madhavi Khare (Director’ ASIAN SCHOOL OF MANAGEMENT’ Pune) and my thanks to all my faculty members for the proper guidance and assistance extended by them. I am also grateful to my parents, friends, to encourage & giving me moral support.

However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

Date: 31st January 2010 Place: Pune Duration: 08th June to 08th August, 2009

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DECLARATION

I hereby declare that the project report entitled “A study on the penetration of Amul Milk in retail outlets of Pune city” is the produce of my sincere effort. This Summer Internship Project is being submitted by me alone, at Asian School of Management- Pune, for the partial fulfillment of the course PGDM, and the report has not been submitted to any other educational institutions for any other purpose.

Date: Signature:

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CERTIFICATE BY THE GUIDE

This is to certify that the project work entitled “To study on the Penetration of Amul Milk in the retail outlets of Pune City”, at GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD. for Pune Branch is a piece of work done by Sumeet Singh Jasrotia, student of Asian School Of Management, under my guidance and supervision for the partial fulfillment of the course PGDM, Asian School Of Management, Pune.

To the best of my work knowledge and belief the thesis embodies the work of the candidate himself and has been duly completed. Simultaneously, the thesis fulfills the requirement of the rules and regulation related to the summer internship of the institute and I am assured that the project is up-to the standard both in respect to the contents and language for being referred to the examiner.

Signature of the Faculty Guide:

Name of the faculty guide:Prof.K.K Bhasin

Designation:Department of Marketing

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INTRODUCTION TO THE PROJECT

1.1 CONTEXT OF THE TOPIC

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

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

because purchasing power is depend upon availability of that product, in case

distributors and retailers service matter a lot.

A retailer or retail store is any business enterprises whose sales volume comes

primarily from retailing.

Market penetration is one of the four growth strategies of the Product-Market

Growth Matrix defined by Ansoff. Market penetration occurs when a company

enters/penetrates a market with current products. The best way to achieve this is by

gaining competitors' customers (part of their market share). Other ways include

attracting non-users of your product or convincing current clients to use more of your

product/service (by advertising etc).

It was found that due to low consumption of milk, there is no more awareness of

milk product here It was the major cause to the low selling of “Amul” milk product.

Like that penetration level in the outlet of milk product was low.

Finally the whole study of the research work, the company needs the effective advertisement of the product in the local channel and print media for awareness of “Amul” milk in the Pune city.

Promotion Tool Used

The consumer promotion tools mean the promotion activities, which are beneficial

for consumers as well as company. Such as price discounts, samples, cash refund,

premiums, prizes, cross promotion and coupons etc. We decided to use discount

coupons. We distributed it among customers and validity kept seven days from

issued.

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The consumers are seduced to buy the product.

It helped to increase sales volume.

Consumer can get good quality of good in cheaper price.

It can attract the new consumers and customers buying other milk

brands.

Attract brand switchers, who are primarily looking for low price,

good value or premiums.

Turn switcher to loyal users,

It induced to make some subsequent purchases.

Give little permanent gain in market share.

1.2 Need of Study

Managers are always curious about the position of their company’s products in the

market which largely depend upon the company’s goodwill, and the position of their

brand. In order to maximize the sale and profit, company must deliver outstanding

satisfaction to the retailers. So market survey of retailers, chart out the position of the

company as compared to the competitors. It helps the organization to find out the

brand being sold most by the retailers along with their stocking and also consumer

buying preferences.

1.3 Statement of The Problem

“A STUDY ON PENETRATION OF AMUL MILK IN RETAIL OUTLET OF

PUNE CITY”

It helps to determine penetration level which can be used to influence large number of

retailers so as to increase the sales of the Amul milk effectively”.

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EXECUTIVE SUMMARY

I Sumeet Singh Jasrotia felt privileged to be a part of ASIAN SCHOOL OF MANAGEMENT, PUNE. I did my summer internship training in Gujarat Cooperative Milk Marketing Federation Ltd a FMCG sector company under the brand name “AMUL”. My project title is the “A Study on penetration of Amul Milk in the retail outlet of Pune city”. The project basic objectives are to estimate demand of Amul Milk and promoting Amul milk in Pune at the same time.

In today’s competitive world while entering in the market it is very

necessary to have good knowledge of the potential of a particular market.

The information regarding the activities of competitor’s existing in the

market so that we can plan our each activity according to that. Also it is

necessary to retain the existing customers apart from attracting the new

customers.

The Project is concern with to determine the penetration level of Amul

dairy milk in Pune city. The project included as part of MBA Programme

and the project is done from June to August.

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INDUSTRY PROFILE

Dairy is a place where handling of milk and milk products is done and technology

refers to the application of scientific knowledge for practical purposes. Dairy

technology has been defined as that branch of dairy science, which deals with the

processing of milk and the manufacture of milk products on an industrial scale.

The dairy sector in the India has shown remarkable development in the past decade

and India has now become one of the largest producers of milk and value-added milk

products in the world.

The dairy sector has developed through co-operatives in many parts of the State.

During 1997-98, the State had 60 milk processing plants with an aggregate processing

capacity of 5.8 million litres per day. In addition to these processing plants, 123

Government and 33 co-operatives milk chilling centers operate in the State.

Also India today is the lowest cost producer of per litre of milk in the world, at 27

cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take

advantage of this lowest cost of milk production and increasing production in the

country multinational companies are planning to expand their activities here. Some of

these milk producers have already obtained quality standard certificates from the

authorities. This will help them in marketing their products in foreign countries in

processed form.

The urban market for milk products is expected to grow at an accelerated pace of

around 33% per annum to around Rs.43, 500 crores by year 2005. This growth is

going to come from the greater emphasis on the processed foods sector and also by

increase in the conversion of milk into milk products. By 2005, the value of Indian

dairy produce is expected to be Rs 10, 00, 000 million. Presently the market is valued

at around Rs.7, 00, 000 mn

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Milk Production from 1950 to 2020

1950 – 17 million tonnes

1996 – 70.8 million tonnes

1997 – 74.3 million tonnes

(Projected) 2020 – 240 million tonnes

Expected to reach- 220 to 250 mt – 2020

India contributes to world milk production rise from 12-15 % & it will increase up to 30-35% (year 2020)

World's Major Milk Producers (Million MTs)

Country2002-03 2003-04 (Approx.)

India 81 84.5Brazil 75 77Russia 34 33Germany 27 27France 24 24Pakistan 21 22USA 71 71UK 14 14Ukraine 15 14Poland 12 12New Zealand 11 12Netherlands 11 11Italy 10 10Australia 9 10

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R esearch and D evelopment in D airy I ndustry :

The research and development need to the dairy industry to develop and

survives for long time with better status. The various institute and milk dairy

companies R&D results provide base for today’s industry growth and development.

The research and development of products of dairy, like yogurt and cheese market

research and company reports provides insights into product and market trends,

analysis opportunities, sales and marketing strategies will help local milk

unions to develop and spread world wide through obtaining this knowledge. Specific

on market share, segmentation, size and growth in the US and global markets are also

helps industry to expand its market worldwide even small union also.

D evelopment of F ood P rocessing I ndustry :

The food processing industry sector in India is one of the largest in terms of

production, consumption, export and growth prospects. The government of accorded

it is a high priority, with a number of fiscal relieves and incentives, to encourage

commercialization and value addition to agriculture produce, for minimizing harvest

wastage, generating employment and export growth.

Food processing industry is providing backbone support to the milk industry.

The development food products by using milk can give good market opportunities to

produces milk.

P roducts and I ndustry S tatus:

Among the products manufactured by organized sector are Ghee, Butter,

Cheese, Ice-Creames, Milk powders, Melted milk food, Infant food, condensed milk

etc.. some milk products like Casein and Lactose are also being manufactured lately.

Therefore, there is good scope for manufacturing these products locally.

Liberalization of the economy has led to a flood of new entrants, including MNCs due

to good prospects and abundant supply.

I nvestment P otential in M ilk P roducts :

At the present rate of growth, India is expected to overtake the US in milk

production by the year 2010, when demand is expected to be over 125.69 ml.tn. Being

largely imported, manufacture of casein and lactose has good scope in the country.

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Exports of milk products have been decentralized and export in 2005-2010 is

estimated at 71.875 cr.

P roduction of Milk in I ndia:

The facts and figures here shown are calculated on the basis of percentage increases pear year.

Year Production in million MT1993-94 61.21994-95 63.51995-96 65.01996-97 68.01997-98 71.01998-99 74.51999-00 78.02000-01 81.512001-02 85.172002-03 89.02003-04 93.02004-05 97.652005-06 102.452006-07 107.58

Major Indian and Overseas Players in the Food industry are:

Hindustan Uni Lever Limited

Perfetti India Ltd.

MTR foods limited Cadbury India Ltd. Godrej industries Limited PepsiCo India Holdings Amul Nestle India Pvt. Ltd. Dabur India Ltd. Britannia Industries Ltd. ITC Limited Parle Products Pvt. Ltd. Agro Tech Foods

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Chapter 1INTRODUCTION AND HISTORY OF COMPANY

INTRODUCTION

AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative

movement in India. Headquartered in the small town of Anand, Gujarat, it is a brand

name managed by an apex cooperative organization, Gujarat Cooperative Milk

Marketing Federation (GCMMF). Specializing in dairy products, AMUL now takes

pride in having built the largest food product business in the country. Being a part of

the Gujarat Cooperative Milk Marketing Federation (GCMMF), AMUL is a sterling

example of cooperative achievement in the developing world. AMUL survives and

grows on the basis of cooperative culture, cooperative networking, market acumen

and respect for both producer and the consumer. Presently, it is the most popular food

brand of India.

HISTORY

Thus their cooperative unions were forced at the village and district level to collect

and sell milk on a cooperative basis, without the intervention of Government. Mr.

Verghese Kurien showed main interest in establishing union who was supported by

Shri Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at

the village level. The Kaira district milk producers union was thus established in

ANAND and was registered formally on 14th December 1946. Since farmers sold all

the milk in Anand through a co-operative union, it was commonly resolved to sell the

milk under the brand name AMUL.

The Union looks after policy formulation, processing and marketing of milk,

provision of technical inputs to enhance milk yield of animals, the artificial

insemination service, veterinary care, better feeds and the like - all through the village

societies. Basically the union and cooperation of people brought Amul into fame i.e.

AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE

OF INDIA.

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GCMMF Overview:

GCMMF is the India’s largest food products marketing organization. It is a state level

apex body of milk co-operatives in Gujarat, which aims to provide remunerative

returns to the farmers and also serves the interest of consumers by providing quality

products, which are good value for money.

VISION

The vision of AMUL is as follows:

To serve the interests of the milk producers

To provide quality products that offer the best value to

consumers for money spent.

SALES TURNOVER

Sales turnover of GCMMF

Year Rs. (in millions) US $ (in millions)

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37740 839

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Graphical representation of sales turnover of GCMMF.

AREAS OF OPERATIONS

Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA,

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

nations. Other potential markets being considered include Sri Lanka.

SOME FACTS:

Annual Revenues : $1.33 billion USD

Members : 13 district cooperative milk producers` union

No of Employees : 2.7 million

No of village societies : 13,141

Total Milk handling capacity : 10.21 million liters per day

Annual Milk Collection : 2.69 billion liters

Daily Milk Collection : 7.4 million liters

Milk Drying Capacity : 626 Mts. Per day

Cattlefeed Manufacturing Capacity : 3090 Mts. Per day

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ACHIEVEMENTS

AMUL has achieved the following landmarks.

AMUL is the largest food brand in India.

AMUL is the world`s largest pouched milk brand.

AMUL is the world`s largest vegetarian cheese brand

CRISIL has assigned its highest ratings of “AAA” to the various bank

facilities of GCMMF

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PLANTS

First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee,

milk powder, flavored milk and buttermilk.

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul,

Amul Ganthia and Amul lite.

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Third plant is at Khatraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name Amul.

Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of

proud for Gujarat and whole India.

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LOGISTICS

GCMMF’S SUPPLY CHAIN

AMUL has the largest cold chain network in India (i.e. 18000 refrigerators) as compared to any other company. The chemical components of milk are water, SNF and solids. Milk is very perishable product so it has to be consumed within 24 hours. In order to avoid wastage AMUL converts the milk in to SNF and milk solids by evaporating the water, which comprises up to 60-70% of milk contents. This is possible only if the distribution channel right from the producer to the consumer is well organized. It will be surprising to know that AMUL makes even the ‘Sarpanch’ to eat pizza i.e. it supplies pizzas even to rural market.

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The Taste of IndiaLast year, they are divided the retail market into 14 specific segments to achieve further distribution efficiency. This year our focus was on inducting distributors having expertise in servicing such

specific market segments. This initiative is yielding results by way of ensuring wider availability of our product range.

The role of distributors in our business process has never been more diverse or more important, as it is today. As a matter of fact, we consider our Distributor to be the real “Marketing Manager” of our organization. To enhance business performance of our Distributors, a workshop on Marketing and Sales Management was designed in collaboration with a premier business school. The objective of the entire initiative was to upgrade the knowledge of our Distributors in terms of contemporary Business Management Practices, so that they can perform well not only as our business partner but also as Marketing Managers. During the year, 659 Distributors have undergone this programme in 39 locations. Cold Storage is an extremely essential component in the Federation’s distribution process.

Unfortunately, availability of efficient cold storage facilities is grossly inadequatein our country. To cope up with the increasing need of suitable cold stores closer to our markets, we have continued our endeavour of creating the Federation’s own cold stores this year in various locations across the country. We now own 24 state of the art cold rooms of different sizes.

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COMPETITORS PROFILE

CHITALE DAIRY

Chitale Dairy bears the quality tag of the Chitale Group.The company manufactures and markets highly functional products. These cutting edge products are manufactured using state-of-the-art technology and find applications in day-to-day transactions. Chitale dairy annual turn over of over Rs. 500 crores.

KATRAJ DAIRY

Katraj was incorporated in 1960 with an intension of providing an organized facility of milk collection for the village level farmers situated in Pune district. Katraj Dairy started with milk collection of about 0.30 lakh (30.000) litres in the first year of operation and today, has steadily grown to over 3.25 lakh (0.32million) litres per day and has a financial turnover of over Rs.150 crores (Rs.1500 million / US$ 33 million) against Amul’s annual turnover of over Rs. 52554 million / US$ 1325 million.

GOKUL

The Kolhapur District Co-operative Milk producers Union Ltd., Kolhapur was established on 16th March 1963 under the Co-operative Act. It made a moderate beginning by collecting 700 liters of Milk per day from 22 societies. Most success stories have a humble begining & so have been with Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd.

On 16th March 1963 a spark stormed a fire to help the White Revolution revolt heavily, when on this day came into being the “Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd” with the introduction of its popular brand of Gokul Milk & its wide range of Dairy products in to the market. Gokul milk has 6, 05,000 litres average sales per day.

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ORGANIZATION STRUCTURE

Organization Structure is divided into two parts:

External Organization Structure

Internal Organization Structure

External Organization Structure

External Organization Structure is the organization structure that affects the

organization from the out side.

State Level Marketing Federation

District Milk Product Union Ltd.

Village Milk Product Union Ltd.

Villagers

As we know, GCMMF is unit of Gujarat Milk Marketing Federation, which is

a co-operative organization. The villagers of more than 10000 villages of

Gujarat are the bases of this structure. They all make village milk producers

union, district level milk producers union and then a state level marketing

federation is established. The structure is line relationship, which provides

easy way to operation. It also provides better communication between two

stages.

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Internal Organization Structure:

The following is internal organization chart of Amul:

Organization Structure Chart

Chairman

Managing Director

General Manager

Asst. General Manager

Finance Production Marketing Sales & Purchase Personnel Dept. Dept. Dept. Dept. Dept.

A systematic & well-defined organizational structure plays a vital role &

provides accurate information to the top-level management. An organization

structure defines a clear-cut line of authorities & responsibilities among the

employees of GCMMF. The Organization structure of Amul is well-arranged

structure. At a glance a person can completely come to know about the

organization structure.

Amul is leaded by the director under him five branches viz. Factory,

Marketing, Accounts, Purchase, Human Resources Department.

Factory department has a separate general manager under him there are six

braches viz. Production, Stores, Distribution, Cold Storage, Quality, and

Deep-freezing. This department takes care of the factory work.

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Marketing department has regional senior marketing manager and under him

there is a regional manager. This department takes care of the marketing

aspects of Amul.

Accounts department takes care regarding accounts i.e. day-to-day work.

Under the accountant there is one clerk.

Purchase department takes care regarding the purchase of raw materials and many other things.

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Chapter 2OBJECTIVE AND SCOPE

1. OBJECTIVES OF THE REPORT

The main objective of the Study can be listed as follows

A. PRIMARY OBJECTIVE

1. To find size of retail network of Amul Taaza and Amul Gold in specific

areas of Pune city or penetration level of Amul Milk in Pune city.

2. To find the problems faced by retailers in selling and storing.

3. To collect the information about the competitors

B. SECONDARY OBJECTIVE

1. To organize sale promotional activities to improve milk sales.

2. To generate and secure consumer awareness.

2. SCOPE OF PROJECT

The study carried out in Pune city so its scope is mainly limited to Pune city.

It gives information about the size of the retail network.

It gives information about the services given by distributor to their

retailer.

It gives information about the competitors’ products.

It will serve consumer in better manner.

It provides suggestions to the company to improve their products sales.

It gives information about the sales promotion activities to improve the

milk sale.

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Chapter 3RESEARCH METHODOLOGY

RESEARCH DESIGN FOLLOWED

Descriptive Research is the research method used because descriptive studies embrace

a large proportion of market research. The purpose is to provide an accurate snapshot

of some aspect of the market environment. Descriptive research is more rigid than

exploratory research and seeks to describe users of a product, determine the

proportion of the population that uses a product, or predict future demand for a

product. As opposed to exploratory research, descriptive research should define

questions, people surveyed, and the method of analysis prior to beginning data

collection. In other words, who, what, where, when, why, and how aspects of the

research should be defined.

SAMPLING:-

SAMPLING TECHNIQUE USED

In this project the technique of sampling used was Judgment sampling. Judgment

sampling involves the choice of subjects who are most advantageously placed or in

the best position to provide the information required.

SAMPLE UNIT

In this project case sample were the retailers in Pune region & the aim was to know

the penetration level of Amul milk and the competitors present in the market.

SAMPLE SIZE: 269 Retailers.

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DATA COLLECTION TECHNIQUES

SOURCES OF DATA

PRIMARY DATA

To collect primary data from Retailer’s Questionnaires were used. Questionnaire was

prepared very carefully so that it may prove to be effective in collecting the right

information.

SECONDARY DATA

Secondary data collected from different website. This secondary data formed the

conceptual background for the project. This secondary data was compared with the

primary data collected in area.

RESEARCH INSTRUMENT

The research instrument used in the project was Questionnaire to collect primary

information, it provided flexibility by using more close ended and few open ended

questions.

METHOD OF DATA COLLECTION

Information was collected by personally contacting retailers through interviews.

ANALYSIS AND STATISTICAL TECHNIQUE USED

Types of data analysis techniques used in the project:

- Tabular analysis.

- Graphical analysis.

- Percentage analysis.

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Chapter 4DATA ANALYSIS AND INTERPRETATION

1) Number of retailers stocking Amul milk.

INTERPRETATION:

The above graph indicates that only 1/5th of the retailers are selling Amul milk

or there is only 20% penetration level of Amul Milk in retail outlets of Pune

city.

It shows that Amul milk brand is not popular among the retailers.

ASIAN SCHOOL OF MANAGEMENT

Answer No. of respondents

Percentage

Yes 55 20%

No 214 80%

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The Taste of India2) Sizes of Amul milk packets retailers preferred to store.

(Out of 269 retailers only 55 were buying Amul milk.).)

INTERPRETATION:

The above graph shows that most of the retailers preferred to stored 500 ml

and 1 Ltr pouch of Amul milk as per the customer demand.

In case of 5 Ltr. Pouch there was no customers demand.

250 ml pouches were not available to retailers.

3) Reasons for Amul milk not stored by retailers.

ASIAN SCHOOL OF MANAGEMENT

Amul milk packets

No. of respondents

250ml 0

500 ml 32

1 Ltr 23

5 Ltr 0

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(Out of 269 retailers 214 were not buying Amul milk.)

INTERPRETATION:

From above graph it is clear that half of the retailers were not satisfied with

Amul replacement and margin policy.

Some retailers responded about absence of packaging date.

Very less retailers complained about distribution network.

4) Preference of retailer’s to milk brand.

ASIAN SCHOOL OF MANAGEMENT

AnswerNo. of

respondents

Absence of packaging date 6

Low margin 154

No replacement for leakage 30

No distribution 24

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.

INTERPRETATION:

The above graph shows that the Chitale is most preferable brand in all.

Some retailers also prefers Katraj and others brands.

5) Sources from where retailers get Amul milk

(Out of 269 retailers only 55 were buying Amul milk.)

ASIAN SCHOOL OF MANAGEMENT

BRANDS RESPONDENTS

Amul 55

Chitale 107

Katraj 57

Gokul 6

Others 44

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INTERPRETATION:

Almost all retailers said that they purchased milk from Amul distributors.

6) Retailer’s satisfaction with Amul distributor.

(Out of 269 retailers only 55 were buying Amul milk.).)

ASIAN SCHOOL OF MANAGEMENT

Answer No. of respondents

Percentage

Distributors 52 95 %

Other suppliers 3 5 %

Answer No. of respondents

Percentage

Yes 34 62 %

No 21 38 %

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INTERPRETATION:

Graph shows that most of the retailers were satisfied with the service

provided by the Amul distributors.

7) Awareness among retailers about different Sales Promotional activities for

Amul Milk.

(Out of 269 retailers only 55 were buying Amul milk.)

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The Taste of IndiaActivities Aware Not aware

Price off 37 18

Free samples 13 42

Credit facility 16 39

Advertisement 49 6

P-O-P Displays 41 14

Coupons 50 5

INTERPRETATION:

The graph shows that retailers were aware about the sales promotion activity

that Amul carried out, but some respondents were unaware about various

activities.

Most of the retailers were aware about advertisement and coupons scheme

during festivals.

Credit facility and free samples were not provided to single retailers.

8) Consumer’s expectation from Amul milk.

(Out of 269 retailers only 55 were buying Amul milk.)

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The Taste of India

INTERPRETATION:

The question asked to the retailers where the Amul milk is being sale, and

tried to collect feedback of customers about Amul milk.

More customers were having complaints about the clear date of packaging

and availability.

Some customers were not happy with quality of milk.

9) Ratings from retailers for attributes of Amul milk.

(Out of 269 retailers only 55 were questioned as they buying Amul milk.)

Attribute

Rating QualityBrand

imageAvailability Packaging Margin

Very good 37 48 34 5 0

Good 13 7 15 2 0

Average 5 0 0 48 0

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ATTRIBUTE RESPONDENTS

Good quality 7

Clear packaging date 23

Availability 25

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The Taste of IndiaBad 0 0 6 0 0

Very bad 0 0 0 0 55

Total 55 55 55 55 55

INTERPRETATION:From the above graph it can be concluded that

QUALITY: Most of the retailers were satisfied with Amul milk quality. BRAND IMAGE: The graph shows that Amul is having good brand image. AVAILABILITY: Most of the retailers were satisfied with the Amul milk

distribution. PACKAGING DATE: Most of the retailers were not satisfied about not

printing of packaging date and they were facing a problem regarding same.

MARGIN: All retailers were not satisfied with the margin policy given by Amul.

DATA ANALYSIS FOR SALES PROMOTION ACTIVITY

We carried sales promotion activity at two places of Pune city

1. Sahakar nagar

2. Sinhgad road

Store name Sales(Ltr)

Initially Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7

Sai 0 10 5 5 5 5 5 5

Vaishali 0 15 15 15 15 15 15 15

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The Taste of India

New hanuman 5 20 15 15 15 15 15 15

Hanuman 15 30 25 25 25 25 25 25

Durga 5 10 10 8 8 8 8 8

INTERPRETATION:

The researcher got same (trend) data and same response from the consumers for both

areas. So I come out with following observation and results

Most of the retail outlets were not interested in Amul milk selling, but after

launching coupons scheme, not only sales shoot up by considerable amount

initially but also remain constant for next days.

In case of Sai and Vaishali retail outlet they were not interested in Amul milk

selling but now they are selling 20 Ltr of milk daily. And they said if response

will remain same they will increase milk order.

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The Taste of India

Chapter 5LIMITATIONS OF THE RESEARCH

The survey is limited only for nine wards.

Time period of the project was 8 weeks, which may not be enough to

understand the whole market.

Sample size (269) of project was too small as compare to total area covered.

Respondent hesitate to give true response to question.

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The Taste of India

Chapter 6FINDINGS OF THE RESEARCH

Retailers are not interested because they don’t have storage facility but if

company provides them such facility they will be sale Amul milk.

Because of low profit margin almost all retailers are not interested in Amul

milk selling.

The 250 ml and 5 Ltr milk pouch are no available to the retailers for selling.

On question, why retailers are not interested in selling of Amul milk, it is

found they were not happy with margin, availability and replacement of leak

pouches.

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Page 40: Market Penetration of Amul Milk

The Taste of India Retailers were selling different brands. Because they were able to receive

more margin from non popularized brand that they could not from well known

brands.

All retailers get Amul milk from company selected distributors.

Measurable amount of retailers were not happy with the distributors, because

of frequent change in distributors and late delivery of milk.

All retailers were familiar with sales promotion activities undertaken by Amul.

But more of the activities were not communicated by distributors. So it shows

that distributors are taking the advantage of such activities.

Some questions were asked with view to convert retailers into distributors, but

due to low margin they denied that.

I found that customers were complaining about the packaging especially

packaging date because Amul do not print packaging date on pouch.

When question came to retailers ratings towards Amul milk rating most of the

most respondents complaining about profit margin and packaging date.

Chapter 7SUGGESTIONS AND RECOMMENDATIONS

The Milk products market has reached Maturity stage in India large no. of Co-

operatives having a variety of product range has entered the market, thus there is one

way for Amul to sustain their milk business in the market by delivering outstanding

satisfaction to their retailers, so that they can take interest in selling of Amul milk

products. This can be done as follow

Company should start printing packaging date on milk pouch.

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The Taste of India Amul has a relatively good distribution network, but still company is not able

to fulfill the demand of outlet in the peak season when demand is very high.

Here company should consider on the supply of product in the peak season.

Supply should be regular to all the outlets including those that lie in the pocket

roads and not just in the outlets which lie on the easily accessible routes.

250 ml milk pouch should make available to retailers for selling, because

lower income family has intention to buy small pouch milk.

Provide reasonable Margin to retailers as compared to competitors, this

motivates them to promote company’s milk and milk products.

Improve delivery schedule to provide products on time for the retailers about

who claimed that Amul milk is not available to them on time.

Incentives & schemes should be given to the retailers and some scrutiny

should be follow to check the scheme get being communicated properly by

distributors or sales person.

Company should provide advertising facility like outside wall painting;

provide company’s stand boards, Posters which help to sell Amul milk.

Provide consistent service to retailers as this will help gain company goodwill

in the market.

Do not change distributor frequently, because he is the only person who act as

a connecting link between company and retailers.

Do not place more than one distributor in same market area.

ANNEXURE

QUESTIONNAIRE

(Retailer Survey)

Name of the shop: __________________________________________________

Retailer Name: ____________________________________________________

Address: __________________________________________________________

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The Taste of India1) Do you stock Amul milk?

a) Yes

b) No

2) If yes, what is the size of Amul milk packets do you preferred to store?

a) 250 ml

b) 500 ml

c) 1 Ltr

d) 5 Ltr.

3) If No, Why?

a. Absence of packaging date

b. Low margin

c. No replacement for leakage

d. Low distribution

4) Which is the most preferable brand of packaged milk that you stock?

Amul Chitale Katraj Gokul Others

5) From where do you get Amul milk?

a) Distributors

b) Other suppliers

6) Are you satisfied with Amul distributor?

a) Yes

b) No

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The Taste of India7) Do you know which Sales promotional activities does the company

undertake for Amul milk?

a) Price off d) Free samples

b) Credit facility e) Coupons

c) Advertisement f) P-O-P Displays

8) Are you interested in distribution of Amul milk?

a) Yes

b) No

9) What is consumer’s expectation from Amul milk?

a) Good quality

b) Packaging

c) Availability

10) Give your ratings to following attributes of Amul milk.

Very good Good Average Bad

Very bad

a) Quality

b) Brand image

c) Availability

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The Taste of Indiad) Packaging

e) Margin

AREA COVERED:

Katraj Bhavani PethBalaji nagar Bharati vidhya peethManik Bagh, Sinhgad Road Sahakar nagarDatta Wadi, Sinhgad Road PadamavatiHigne kurd, Sinhgad Road ---

PRODUCT PROFILE

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The Taste of India

Milk is the “nature’s perfect food” for all ages. It has almost all the vital nutrients

need for the growth and well being of human body. Milk is the richest natural source

of calcium and essential amino acids, which is good for bone formation. It is

particularly beneficial for people recovering from sickness, for sportsmen, for old

people, for pregnant women and for growing girls and boys. The doctor recommends

a minimum daily intake of 250 ml or more for every person.

Normal cow milk has 4% Fat and buffalo has 7% Fat. There is another important

constituent of milk is Solids Non Fat (SNF). This (or SNF as it is commonly called)

comprises of proteins, minerals, carbohydrates and vitamins. For mil to be

nutritionally balanced, it has to contain both Fat and Solids Not Fat in proportion.

The PFA act lays down standards of Fat and SNF for various types of milk, as

follows:

FAT SNF

1. Toned milk (Amul Taaza) 3.0% Min 8.5% Min

2. Full Cream Milk (Amul Gold) 6.0% Min 9.0% Min

3. Cow Milk (Amul Cow Milk) 3.5% Min 9.0% Min

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The Taste of IndiaAmul Milk is available in Pune and surrounding areas in Toned, Full cream and cow

milk varieties. Amul Milk strictly confirms to PFA standards. In fact we keep our

standards. In facts

We keep our standards higher so as to abundantly comply with the legal requirements

and to provide wholesome nutritive food to our consumers.

This means when you are buying Amul Milk you are sure to get the “nature’s perfect

food” for your family. You are sure to get your full 500 ml. in every pack. You are

sure of getting milk, which has longer life because of superior bacteriological quality

and state of art processing technology

The loose milk available from local vendors often does not confirm to PFA standards.

It often has less Fat and less Solid Non Fat then required. Remember that if your milk

contains 0.5% less Fat or SNF, you are paying up to one rupee per pouch extra.

Besides, it is not uncommon to find artificial preservatives, which are not permitted

by law being added to loss milk.

If you are buying cheap loose milk or even pouch milk, think again! By

compromising on the quality of milk, you may be depriving your children of essential

life-building proteins and nutrients that only pure and high quality Amul Milk will

give.

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The Taste of India

AMUL PRODUCTS

Bread Spreads

Amul ButterUtterly Butterly Delicious

Amul LiteLow fat, low Cholesterol Bread Spread

Delicious Table MargarineThe Delicious way to eat healthy

Milk Drinks

Amul Kool Millk Shaake

Amul Kool

Amul Kool Cafe Kool KokoA delight to Chocolate Lovers. Delicious Chocolate taste

Nutramul Energy DrinkA drink for Kids - provides energy to suit the needs of growing Kids

Amul Kool Chocolate Milk

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack

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The Taste of IndiaAmul Masti Spiced ButtermilkAmul introduces the Best Thirst Quenching Drink

Amul Kool Thandai

Powder Milk

Amul Spray Infant Milk FoodStill, Mother's Milk is Best for your baby

Amul Instant Full Cream Milk PowderA dairy in your home

Sagar Skimmed Milk PowderWhich is especially useful for diet preparations or for use by people on low calorie and high protein diet.

Sagar Tea Coffee Whitener

Amulya Dairy WhitenerThe Richest, Purest Dairy Whitener

   

Fresh Milk

Amul Fresh MilkThis is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience.

Amul Gold Milk

Amul Taaza Double Toned Milk

Amul Lite Slim and Trim Milk

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The Taste of IndiaAmul Fresh Cream Amul Shakti

Toned Milk

Cheese

Amul Pasteurised Processed Cheese100% Vegetarian Cheese made from microbial rennet

Amul Cheese SpreadsTasty Cheese Spreads in 3 great flavours..

Amul Emmental CheeseThe Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma

Amul Pizza Mozzarella CheesePizza cheese...makes great tasting pizzas!

Gouda Cheese

   

For Cooking

Amul / Sagar Pure GheeMade from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience.

Cooking Butter

Amul Malai PaneerReady to cook paneer to make your favourite recipes!

Utterly Delicious Pizza

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Page 50: Market Penetration of Amul Milk

The Taste of IndiaMithai MateSweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste.

Masti Dahi

Desserts

Amul Ice CreamsPremium Ice Cream made in various varieties and flavours with dry fruits and nuts.

Amul ShrikhandA delicious treat, anytime.

Amul Mithaee Gulab JamunsPure Khoya Gulab Jamums...best served piping hot.

Amul ChocolatesThe perfect gift for someone you love.

Amul Lassee Amul Basundi

Health Drink

NutramulMalted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.

Amul Shakti Health Food Drink Available in Kesar-Almond and Chocolate flavours.

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