priyansha sharma (mpr)

8/3/2019 priyansha sharma (mpr)

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PROJECTREPORT

ON

MARKETING STRATEGY OF AMUL CHOCLATE

SUBMITTED IN PARTIAL FULFILLMENT FOR THE

AWARD OF THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

2009-2012

SUBMITTED BY: SUBMITTED TO:

SABAL CHAWLA MRS. VIJETA BANWARI

Enrollment no.05221201709 Assistant Professor

BBA (GEN.) 2nd

Shift MSI

IIIrd SEMESTER

MAHARAJA SURAJMAL INSTITUTE

Affiliated to Guru Gobind Singh Indraprastha University (GGSIPU), Delhi C-4, Janakpuri

New Delhi-110059


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CERTIFICATE

This is to certify that the project work titled MARKETTING STRATEGY OF AMUL

CHOCLACTE is a bonafide project carried out by SABAL CHAWLA, BBA (GENERAL)

student, Maharaja Surajmal Institute (GGSIPU) in Delhi for the fulfilment of requirements of the

BBA program and the project work has not formed the basis for the award previously for any

degree, diploma or any other similarities

Date:

Signature:

(Project guide): MRS. VIJETA BANWARI

Assistant Professor

MSI


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ACKNOWLEDGEMENT

I want to thank, MRS. VIJETA BANWARI for their guidance and support in completion of this

project. It is because of them I have been able to complete my project in the best possible way.

The project report has largely benefited from the comments provided by my teachers, friendsand family.

I consider my time in Completion of this project to be crucial, motivating and learning period.

I could not have wished for better Collaborators and Mentors. Their detailed comments,

vigilance and insight have been of great value to the Project and for me in person.

Thank you

It is truly our Project.

Thank you!

SABAL CHAWLA

BBA (GEN) II Shift 3rd

SEMESTER

Enrollment no. - 05221201709


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Table of CONTENTS

S.NO. TITLE PAGE NO.

1. CHAPTER 1:-

INTRODUCTION

OBJECTIVES OF THE STUDY

RESEARCH METHADOLOGY

LIMITATIONS OF THE STUDY

6

7

11

12

18

2. CHAPTER 2:-

PROFILE OF THE ORGANISATION

19

20

3. CHAPTER 3:-

ANALYSIS AND INTERPRETATION

32

33

4. CHAPTER 4:-

CONCLUSION

RECOMMENDATIONS

56

57

58

5. BIBLIOGRAPHY 60

6. ANNEXURE 61


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PREFACE

The AMUL model is based on strong economic logic for the existence of each tier, meaning each

higher tier must generate sufficient value to the satisfaction of its immediate lower tier.

Interlocking system of control and ownership ensures that this logic is never lost of sight the

owners of AMUL - namely, the farmers have ensured that the organization never loses its

independence and autonomy, and that no internal or external stakeholder can take me system for

a ride. In order to protect and promote the farmers' interests, AMUL has been always engaged in

lobbying activities. Its initiatives in countering the evil effects of WTO, in the passing of Parallel

Cooperatives Act in several states, in bringing out the Co-operative Company's Act at the center

are only some of the recent examples. By setting standards in the market place in terms of

product quality and its price, AMUL has become the natural market leader in its areas of

functioning and won the hearts or all Indians. By its organizational design and strategies, AMUL

has rediscovered the model of a new-generation producer cooperative in India, which is different

from its traditional form in assigning the right kind of incentives to the shareholders. In terms of

forward linkages, however, AMUL approximates a Japanese Keiretsu, wherein the different

stakeholders join hands with each other to maximize the value of the enterprise.

By its pricing and quality strategies, AMUL is always striking a balance between the interests of

the consumer with those of its producers. Because of Its larger appeal, AMUL has truly

symbo.l1zed the real 'Taste of India. Its innovative advertisements have further reinforced its

competitive power and appeal. Professional management. Of AMUL, which is always

accountable to the members, has ensured excellent economic and financial management of it

federation, the GCMMF.

Probably the most important component of AMULs success is its visionary and dedicated

leadership, which has spent its private resources not only to solve free rider's problem at every

stage of collective action but also to protect the organization from predatory attacks from the

external environment.


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CHAPTER 1

INTRODUCTION


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INTRODUCTION

OVERVIEW OF CHOCOLATE INDUSTRY

The vital statistics of the confectionery segment seem more promising than the

conventional FMCG categories such as toilet soaps or detergents. While toilet soaps and

detergents already reach over 90 per cent of the households, both chocolate and sugar

confectioneries have abysmally low penetration levels.

ORG-MARG estimates suggest that chocolates penetrated just five per cent of the Indian

households in 2000. On the other hand, sugar-boiled confectionery reaches 15 per cent of the

households, leaving ample room for growth. Even considering the urban market alone, the

category reaches just 22 per cent of the urban consumers.

This category, therefore, has considerable potential to grow before it reaches saturation

point -- as have traditional FMCG products such as soaps and detergents. Chocolates and sugar-

boiled confectionery boast of even lower penetration levels than biscuits, which reach 56 per

cent of the households.

The Indian confectionery market is segmented into sugar-boiled confectionery,

chocolates, mints and chewing gums. Sugar-boiled confectionery, consisting of hard-boiled

candy, toffees and other sugar-based candies, is the largest of the segments and valued at around

Rs 2,000 crore. Nutrine Confectionery and Parry Confectionery dominate the organised segment,

apart from the Indian arms of MNCs such as Perfetti India and Warner Lambert.


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Cadbury India and Nestle India also made a foray into this segment five years ago and

have a small presence. Chocolates make up a 22,500-tonne market, which is valued at Rs 400

crore and dominated mainly by listed players Cadbury India and Nestle India. But slipping

volumes however, despite its unmistakable potential, the major players in the confectionery

industry have not fared too well in recent times in terms of sales growth. Take the chocolate

segment. Cadbury India, which derives nearly 76 per cent of its revenues from chocolates and

sugar confectionery, has seen its top line growth wind down from 19 per cent in 1999 to 12

percent in 2000 and further to 7 per cent in the first six months of 2001. Nestle India has

managed to report healthier sales and profit growth, but this is more on account of the

contribution from milk, coffee and culinary products rather than sugar or chocolate

confectionery.

The only listed player in sugar-boiled confectionery has not done too well either. Parrys

Confectionery, a leading player in sugar-boiled confectionery, has reported shrinking sales

volumes in 1998-99 and 1999-2000, after robust financial performance in earlier years.

Screeching to a halt these topline numbers only reflect the ground realities. Industry

sources estimate that the 22,500-tonne chocolate market, which grew at a robust 12 per cent per

annum until 2000, grew by just three per cent in that year.

Several factors appear to behind this slowdown. As with all other FMCG products, the

demand for confectionery products appears to have been hit by the economic slowdown and the


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consequent shrinkage in consumer spending. Confectionery products are impulse foods and thus

appear to have borne the brunt of a cutback in consumer spending over the past couple of years,

while staple foods have continued to exhibit healthy growth rates.

This is evident from ORG-MARG figures, which suggest that the annual per capita

consumption of chocolates actually fell from 312 grams in 1999 to 307 grams in 2000, while that

for sugar boiled confectionery fell from 621 grams to 579 grams (source: ORG-MARG

Milestone Papers: The Growth Inertia). Branded staples such as atta and salt registered a healthy

increase in per capita consumption over this period.

No price hikes

Despite fairly aggressive promotional efforts by marketers, the overall penetration level

for chocolates registered no increase between 1999 and 2000.

Consumption of chocolates could have been impacted by the selling price increases that

marketers affected between 1999 and 2000. In 1999 and 2000, selling prices of key chocolate

brands were pegged up by 5-15 per cent, partly reflecting a spike in cocoa prices in that period.

This probably contributed to the sales growth for the year.

However, with cocoa prices falling sharply in the second half of 2000, marketers were

forced to maintain selling prices of most products, holding back value growth in sales. Cadbury

India, the market leader in the chocolate segment (market share 71.9 per cent) saw the growth in

its chocolate portfolio slow to 6 per cent in the April 2000 to April 2001 period, from nine per

cent the previous year. This was mainly due to the healthy double-digit growth rates in its

flagship brand -- Cadbury's Dairy Milk. Brands such as 5 Star and Perk stagnated in 2000-01.

Nestle India's chocolate portfolio (comprising of KitKat, Munch and Charge

commanding a total market share of 24.7 per cent) slowed even more dramatically, registering


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less than one per cent growth between April 2000 and April 2001. Though Nestls recent

launch, Munch, has been a success, the low-priced brand has moderated the value growth in

Nestls portfolio. Wooing adults now The avenue for growth appears to lie in taking advantage

of the low penetration level for chocolates by roping in new consumers. The chocolate majors

attempted to do this by repositioning chocolate, earlier targeted at children, as a snack food for

adults. Cadbury's chocolate-coated wafer Perk and Nestls Charge and Munch were essentially

sold on this platform.

Though products such as Perk did succeed initially (Cadbury India claims to have added

eight million new consumers in 2000), growth in this segment appears to be petering out. Both

Perk and Kit Kat (the chocolate-coated wafer which is central to Nestle's chocolate portfolio),

have shown signs of stagnation in 2001, actually reporting negative growth rates for a few of themonths.

Banking on smaller editions Of late, the chocolate majors have been rejigging their

products to launch chocolates in the Rs 10 and Rs 5 price points. Mimicking the trend in other

FMCG products, the chocolate majors have been relaunching their conventional chocolate

brands in smaller unit packs, hoping that this will prompt more frequent purchases and pep up

volume growth.

It is early days yet to judge if this has indeed pepped up volume growth in the segment.

However, the chocolate majors do not have much to lose. Unlike the low unit pack versions of

products such as shampoos, the low unit packs of chocolates do not cost less on a per gram basis

than their normal versions.

In most cases, the gram age offered under the low priced packs, has been brought down

in the same proportion as the price, leaving realisations for the chocolate majors untouched.


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OBJECTIVES OF THE STUDY

The primary objective would be:-

To conduct a comparative analysis of Amul Chocolate vis--vis its competitors.

The other objectives would be:-

To compare Amul Chocolate with its competitors in terms of sales figure.

To make an analysis of the shortcomings of Amul Chocolate compared to its competitors.

Finally to conclude the findings and suggest the necessary corrective measures and

recommendations for improving the market position of Amul Chocolate.


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RESEARCH METHODOLOGY

Significance

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

research shows the real fact about product as well as organization. Research is a systematic and

scientific investigation of any idea either precise or abstract from a continuous basis for

learning , it could be either exploratory or descriptive.

According to above definition research is a systematic and scientific

investigation through which any organization try to find out its strength and weakness as

well as opportunity and threat. As we know in the present era the business activities have

become more complex and complicated due to modern technology , globalization andliberalization and in other hand today customer are highly conscious about products and

brand .

In recent time customers are not blind follower of a product. They are giving high

priority to all feature like price, quality, innovative features etc. But after all this features


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brand becomes the inevitable parts of any product because it gives the complete identification of

product so it is also the one most important part.

My research work is highly focused on this issue, which is important for me as

well as the organization. During research work I learnt retailers opinion about product and

services .

I learnt which factors affect the retailer to sale an individual product, this research gives me

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

great experience about the market

For company point of view I tried to find the serious drawback, which is

highly, affected the sale of chocolates. I tried to find market share of Amul chocolate

which is itself important .I tried to find the sale figure of Amul chocolate in term of

rupees, due to some hurdle I dont claim my research work is 100% accurate because so

many factors was uncontrolled during the project .I tried to finish my research with 100%

accuracy which is best available in market .

So it is my strong believe that my research work is significant in all manner.

This research is helpful for organization, retailers as well as consumer.

Managerial usefulness of the study

The research is a systematic investigation of any idea. The research is widely used in the

business world for analyzing & evaluation business policy as well as the analyzing & evaluates

competitors activity and policy. The research is itself valuable. The research gives fact and

figure, which is useful in planning.

As it is obvious any business activity is based on to the 4 Ps of marketing viz.

price, product, promotion, place all these Ps have its own importance and all are inter-related

with each other but most importantly all the factor are independent in the nature. In any


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organization all factors are carefully formulated to gain a success in the market. It is very

important for business analyst to evaluate the modern trend and market position. In the other

hand it is vital for business operation to know the need and desire of customer. All the necessary

information is received from market by research work.

The study reveals many facts that have come up during my project and these facts can either be

used as opportunities in exploring and expanding the business as well as can be used as

safeguards against threats by the competitions. To prepare an effective marketing strategy a

company must study it s competitors as well as its actual and potential retailer. A company

should maintain good relation with their distributors and retailers keeping in view competitive

orientation in todays global market. Company should neither put much emphasis on competitors

positioning nor should it solely concentrate on its own products and policy. Rather it should findmidway between these two extremes and adopt flexible policy. Companies should manage a

good balance of declares retailer , consumer & competitors monitoring .

The information will prove beneficial in taking proactive action for combating competition .the

standing of the company and its competitors in the mind off the retailer in a vital factor in

deciding the success of business the study also aims at finding out the market share in term of

their sale, product penetration demand etc which is adjusted by retailer. This information is good

guide to management as it brings out the strength of the competition their product penetration,

product demand their promotion policy, which gives a overview where the company needs to

improve. This study basically aimed at providing the management desired vital information

about the market situation.

There say due to immerse competition in Indias fast moving consumer goods

market my work on GCMMF Ltd. And consumer behavaior can be useful in following ways :-

It can be useful for adopting the proper marketing mix in respect of type of chocolate,

distribution pattern, and market share.

It can be useful to understand the consumer perception which is very vital for product

mix as well as promotion mix.


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SCOPE OF THE STUDY

The present study is the study on GUJARAT COOPERATIVE MILK MARKETING

FEDERATION LIMITED, one of the India largest food production marketing organization,

which is a state level apex body of milk cooperative in Gujarat. From the study one can easily

infer the present market position of Amul chocolate with its leading competitors.

The study is designed and focused primarily on identifying the present market position of the

Amul chocolate. It also includes identification of its core competitors and enhancing efforts

towards brand repositioning in present and in future.

METHODOLOGY

Marketing research is the process collecting and analyzing marketing information and ultimately

arrived at certain conclusion Management in any organization need information about potential

marketing plans and to change in the market place. Marketing research includes all the activities

that enable an organization to obtain the information. This research is very important in strategy

formation and feed back of any organizational plan.

There are many type of research some are conceptual, empirical, descriptive, explorative etc.

each research type is being used for various purpose. In this research I have used descriptive

research, I try to describe what are the factors, which affect the business plan of AMULS

Chocolate.

Research design is the plan, structure and strategy of investigation conceived so as to obtained to

research problem and control variances. It is the specification of methods and procedures for

acquiring the information needed. It is overall operational pattern or framework of the project

that stipulated what information is to be collected and from which source and by what procedure.

RESEARCH DESIGN


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Different types of research design have emerged on account of the different perspectives

from which a research study can be viewed. There are three fundamental categories that we used

frequently are given below.

1. EXPOLETARY RESEACH: - In the case of exploratory research, the focus is on the

discovery of ideas. An exploratory study is generally based on the secondary data that are

readily available. It does not have formal and rigid as the researcher may have to change

his focus or direction, depending on new idea and relationships among variables. An

exploratory research is in nature of a preliminary investigation.

2. DISCRIPTIVE RESEARCH: - The objective of such a study is to answer the who,

what, when, where and how. Of the subject under investigation, descriptive studies are

well structured and tend to be rigid and its approach can not be changed every now andthen. It is therefore, necessary that the researcher

give sufficient thought to farming research question and deciding the types of data to be

collected and procedure to be used for this purpose.

3. CAUSAL RESEARCH: - A causal research investigates is cause and effect relationship

between two or more variables. The causal research design is based on reason along

well-tested line. We use inductive logic for confirming hypothesis with the help of future

evidence.

TYPE OF RESEARCH CARRIED OUT: -

In my project work I used exploratory research, as it aim to answering question about

sale, brand availability, service quality, distribution pattern etc.

DATA COLLECTION:-

To achieve the objectives, the primary as well as secondary source of data are used. Primary

source includes the retailers and companys officials through questionnaires.

Secondary source of data includes the past records of company.


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The data were collected through the following methodical techniques in the

present project work.

1. Through questionnaires

2. Through interview

3. Through observation

DATA SOURCES

PRIMARY DATA

SECONDARY DATA

PRIMARY DATA:-

Primary data is that kind of data which is collected by the investigator himself for the

purpose of the specific study. The data such collected is original in character. The advantage of

third method of collection is the authenticity. A set of question s was put together in the form of

questionnaire with. Question. The method of sampling was the random method as it is unbiased.

SECONDARY DATA:-

When an investigator uses the data that has been already collected by others is called

secondary data. The secondary data could be collected from Journals, Reports and Various

Publications. The advantages of secondary data can be economical, both in the term of money

and time spent. The researcher of the reporter also did the same and collected secondary from

various Internet sites like Google.com.altavista.com and many more. The researchers of the

reporter also visited various libraries for collection of the introduction part.

QUESTIONNAIRES DESIGN: -

Questionnaires consist of question printed or type in definite order on a form or

set of form. It was questionnaire format firms tested on small sample then was modified and

developed according to the environmental situation and other affecting factors. Each


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questionnaire is framed with systematic and modern technique to make useful in achieving the

objectives up to a maximum possible limit.

There are two types of questionnaires, the first one is standard questionnaire and

the second is un-standard questionnaire. The authority or expert sets the standard questionnaire.

In the other hand un-structured questionnaire is set according to objective of the study by

researcher.

In this research work I used un-structured questionnaire with my best ability and

under the guidance of my institutes faculties and the project guide of the organization.

After floor acing the questionnaire, the respondents (retailers and customers) were

personally contacted. Each respondent was requested to answers the question with appropriate

answer genuinely. All the questions were made very clear to them. The questionnaires were duly

filled with the responses of all the respondents in the current project work.

INTERVIEW METHOD: -

There is a fact to face interaction with most of the samples they were directly

questioned and according personal and professional problem were collected from them for

question are asked to the responded to flourish the questionnaire effectively and efficiently. In

this project work I have made interview with almost respondent to know some extra data or fact,

which was used in this project work. After using this method I tried to find the competitors

policy and there strength after this method I was able to conclude all facts with competitors

point of view.

OBSERVATION METHOD: -

During the project work, I contact the retailers and consumers particularly and

find their opinion about the Amul Chocolate.


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In the observation method the research himself collects necessary informations by observing the

phenomena under this method. Observation may be conducted on in the natural field or in the

form of experiment.

After observation the data carefully noted in the questionnaire format. I used uncontrolled

observation in this observation takes place in the natural setting. Retailer and customer are free to

express their felling about the product and the company. The observation method give me an

idea about the satisfaction level of customer and retailer in the other hand there precious

knowledge about the market situation make me understand the business difficulties which help

me a lot to carry out my project in a significant and effective manner.

SAMPLE DESIGN

SAMPLE DESIGN: - The sampling designs are mainly of two types non-probability

sample designs and probability sample design.

RANDOM SAMPLING: - a random sample gives every unit of population a known

and non-probability of being selected. Since random sampling implies equal

probability to every unit in the population; it is necessary that the selection of the

sample must be free from human judgment.

SYSTEMATIC SAMPLING: - In this method first a sampling fraction is calculated

as N/n where N is total no. of units in the population and n is the size of sample..

STRATIFIED RANDOM SAMPLING: - A stratified random sampling is divided

into mutually exclusive and mutually exhaustive strata or sub group and then a simple

random sample is selected with in each of the strata or sub group.

CLUSTER SAMPLING: - cluster sampling implies that instead of selecting

individual units from the population entire groups or clusters are selected random.

QUOTA SAMPLING: - quota sampling involves the fixation of certain quotas, which

are to be fulfilled by the interviewers, since quota sampling is not based on random

selection it is not possible to calculate estimates of standard errors for the sample

result.


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JUDGEMENTAL SAMPLING:- the main characteristics of judgmental sampling is

that units or elements of the population are purposely selected it is because of this that

judgment samples are also called purposive samples. Since the process of judgmental

sampling is not based on random sampling it is also called non-probability sampling.

DATA COLLECTION

Data collection from retailers of different areas viz. south Delhi, North Delhi, East Delhi,

West Delhi and Central Delhi

Sample size of retailers covered 250

Sample size of customer 100

Other information related to project has been taken from company website

LIMITATIONS OF THE STUDY

Although all efforts were taken to make the result of survey as accurate as possible the

survey had the following constraints:


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Retailers are not willing to give answers of the questions due to their busy schedules.

Retailers hide the facts especially in the sales figure.

A few retailers were not cooperating during the project survey. It was quite difficult to

collect necessary data.

Due to the time constraint and other imperative workload during the training period it

could not be made possible to explore more areas of concern pertaining to project study.

The employees of Amul India limited were very hesitant and reluctant to give all

information which was vital for my project work because some information were

confidential in nature.


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CHAPTER 2

PROFILE OF THE ORGANISATION

PROFILE OF THE COMPANY

ABOUT THE COMPANY

Thirty years ago the milk producers of Gujarat had come together and decided to create

their own organization to enhance the marketing capacity of the dairy Co-operative milk

marketing federation Limited (GCMMF Ltd.). Mr. V. Kurien was the founder of this co-

operative society and this society had been formed in a small village of Gujarat named Anand.


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Gujarat Cooperative Milk Marketing Federation (GCMMF Ltd) is a Indias largest food

product marketing organization. It is a state level apex body of milk cooperative in Gujarat,

which aims to provide remunerative return to the farmers and also serve the interest of

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

Member 12 district cooperative milk producers

union

No. of Producer Member: 2.36 million

No. of Village Societies : 11.333

Total Milk handling capacity 6.9 million liters per day

Milk collection (Total-2009-2010) 1.81 billion liters

Milk collection (Daily Average 2009-

2010)

4.97 million liters

Milk Drying Capacity: 511 metric Tones per day

Cattel feed manufacturing Capacity: 2340 Mitts per day

AMULS HISTORY

Amul birth is indelibly linked to the freedom movement in India. It was Sardar Vallabhbhai Patel

who said that if the farmers of India are to get economic freedom then they must get out of the

clutches of the middlemen. The first Amul cooperative was the result of a farmers meeting in

Samarkha (Kaira district, Gujarat) on 4 January 1946, called by Morarji Desai under the advice

from Sardar Vallabhai Patel, to fight rapacious milk contractors. It was Sardars vision to

organize farmers, to have them gain control over production, procurement and marketing by


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entrusting the task of managing these to qualified professionals, thereby eliminating the

middlemen, the bane in farmers prosperity.

The decision was taken that day in January 1946. Milk producers cooperatives in villages,

federated into a district union, and should alone handle the sale of milk from Kaira the

government run Bombay Milk Scheme. This was the origin of the Anand pattern of cooperatives.

The colonial government refused to deal with the cooperative. The farmers called a milk strike.

After fifteen days the government capitulated. This was the beginning if Kaira District

Cooperative Milk Producers Union Ltd., Anand registered on 14 December 1946. Mr. V.Kurien

was the founder of this cooperative society. This society had been formed in a small village of

Gujarat named Anand.

Originally the Anand pattern included dairy cooperative societies at the level. Inspired by the

Kaira Union, similar milk unions came up in the other districts too. In 1973, in order to market

their product more effectively and economically, they formed the GCMMF Ltd. GCMMF

become the sole marketer of the original range of Amul products including milk powder and

butter. That range has since grown to include ice cream, ghee, cheese, chocolates, shrikhand,

paneer, and so on. These products have made Amul a leading food brand in India.

The brand name AMUL, has taken from the Sanskrit Amoolya, meaning priceless, wassuggested by a quality control expert in Anand. The first products with the Amul brand name

were launched in 1955. Since then, they have been in use in millions of home in all parts of India

and beyond. Today Amul is a symbol of many things: of high quality products sold at reasonable

price, availability, and service. Amul is the brand name of two million farmers, members of

10,000 village dairy cooperative societies throughout Gujarat. This is the heart of Amul; it vis

what is so special about the Amul saga. Amul in 1946 was really an effort to carve out a truly

Indian company that would have the involvement of millions of Indians and place direct control

in the hands of the farmers. It was a mandate for producing, owning and marketing and above all,

building your own truly Indian Brand. Amulss birth was thus a harbinger of the economic

independence of our farmer brethren. Today, 173 milk producers cooperative unions and 22

federations play a major role in meeting the demand for packed milk and milk products. Quality

packed milk is now available is more than 1,000 cities throughout the length and breadth of


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India. Amul, therefore, is a brand with a difference. That difference manifests itself in a larger

than life purpose. The purpose freedom to farmers by giving total control over procurement,

production and marketing.

RANGE OF THE PRODUCT

Bread spreads:

Amul Butter Amul Lite Low Fat Bread spread Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul processed Cheese Spread

Amul Pizza (Mozzarella) Cheese

Amul Shredded Pizza cheese

Amul Emmental Cheese

Amul Gouda cheese

Amul malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned

Utterly Delicious Pizza

Curd Products:


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Yogi Sweetened Flavored Dahi (Dessert)

Amul masti Dahi (Fresh cured)

Amul Butter Milk

Amul lassee

Milk Drink: Amul cool flavored Milk

Amul Cool Kesar

Amul Cool Elachi

Amul Cool Coffee

Amul Cool Rose

Amul Cool Strawberry

Amul Cool Mango

Health Beverage:

Amul Shakti White Food

Mithaee Range (Ethnic Sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamon)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamuns Mix


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Amul Mithaee Kulfi Mix

Avsar Ladoos

UHT Milk Range:

Amul Shakti 3% fat Milk

Amul taaza 1.5% fat Milk

Amul Gold 4.5% fat Milk

Amul Lite Slim & Trim Milk 0% fat Milk

Amul Shakti Toned Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Chocolate & Confectionery:

Amul Milk Chocolate

Almond Bar

Chocozoo

Milk Powder:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder


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Fresh Milk:

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardized Milk 4.5% fat

Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Skimmed Milk 0% fat

PRODUCT SPECIFICATION


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Composition:

Milk Fat 2%

Sugar 55%

Total Fat 32.33%

(Milk Fat + Cocoa Fat)

Cocoa Solids 7.5%

Milk Solids 20%


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MARKET PRESENCE

YEAR Sales Turnover Rs. (Million)

1996-97 13790

1997-98 15540

1998-99 18840

1999-00 22192

2000-01 22185

2001-02 22585

2002-03 23365

2003-04 27457

2004-05 28941

2005-06 29880

2006-07 30150


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ORGANIZATIONAL STRUCTURE

BOARD OF DIRECTOR

MANAGING DIRECTOR

CHIEF GENERAL MANAGER

GENERAL MANAGER

ASSISTANT GENERAL MANAGER

EXECUTIVE

DEPUTY EXECUTIVE

ASSISTANT EXECUTIVE

SENIOR EXECUTIVE

JUNIOR EXECUTIVE

FIELD SALES REPRESENTATION


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DISTRIBUTION CHANNEL

MEMBER UNION (PLANT)

DEPOT GODOWN

DISTRIBUTOR

RETAILERS

CONSUMER


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P R O B L E M O F T H E O R G A N I S A T I O N

It is not a hidden fact that the amul has its own image or brand, which shows the value of

money for its product. The AMULS have a great product lineand depth. AMULS products are

Amul Butter, Amul Cheese Amul confectionery, Amul Flavored Milk and Pasteurized milk,

Dahi, Lashi, Ice-cream,etc.

If we give a overall look on the all market position of AMULS product almost all

product have a grate market share in other hand all product are market leader with their greater

sales volume and high turn over, for example AMUL Butter, AMUL Flavored milk, AMUL

Mozerella cheese.

But in case of AMUL Chocolate the position of AMUL is not satisfactory. It is generally

consider AMUL is in the 3rd

position after CADBURY and NESTLE. Both the company has

separate distribution channel for chocolate, they are giving high priority to confectionery

products. They are providing easy replacement, high penetration, and regular visit to retailers

shop. Most importantly they are providing cool storage equipment to their retailers and they

positioning their product through heavy advertisement campaign.

Recently the AMUL Chocolate is re-lunched in market but the position remains same,which is very critical for the company. After re-lunched, the sale volume and customer

awareness about the all chocolate products remain unsatisfactory, which create harsh situation

for all organization. Companies highly willing to excel in the chocolate field there are some

problem, which is adversely influence the organization.

There are some problems, which is as follows: -

Competitors position in market

Vast distribution channel which deals almost all product

Replacement


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Retailer satisfaction level

Awareness about the product

COMPETITORS INFORMATION

Cadbury

Cadbury dominates the Indian chocolate market with a 65% market share. Besides, it has

a 10% market share in the organized sugar confectionery market and a 25% market share

in milk/ malted foods segment.

Nestle

Nestle at about 23% market share


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CHAPTER 3

ANALYSIS AND INTERPRETATION OF DATA


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S.W.O.T ANALYSIS

STRENGTH:-

Amul has a brand image.

It has a high quality.

It has a great purity.

It has a pool of dedicated and hardworking workforce.

Experienced market player.

WEAKNESS: -

Company dose not provide credit to retailers Company.

Company has no proper promotion strategy.

Complex replacement procedure.

Fewer margins to retailers.

There is Lack of availability.

Distribution is not up to the mark in every area.

Lack of salesmen and distributor in some areas in Delhi.

There is a problem with storage of Amul Chocolate

OPPORTUNITY: -

Providing the replacement offer to retailers can increase Sale.


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Increase in retailer margin can enhance the sale of Amul Chocolate.

Focused approach towards small market can also increase the sale of Amul Chocolate.

New schemes can be provided to the retailers to attract them to push the sale of Amul

Chocolate.

Regular supply can be easily compete the competitors and increase its own sale.

THREATS: -

More competitors are entering in the market.

Competitors are providing more margins to retailers.

Competitors also giving replacement facility to retailers.

Competitors providing regular supply and strong distribution channel.

Competitors also reaching to small market.


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DATA ANALYSIS OF CUSTOMER QUESTIONNIERS

Fig.1

Interpretation:-

The red colour segment in the pie chart indicates the most popular bar, which is consumed by the

consumer with 66 %. The yellow color segment shows that toffee is the second most popular

chocolate, which is consumed with 17 % with the consumers. The blue colour segment indicates

candy, which is liked by people with 08 %. The last green segment indicates that only 09 %

people like all the chocolates.

8%

66%

17%

9%

MOST POPULAR KIND OF CHOCOLATE

Canndy

Bar

Toffey

All


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Fig. 2

Interpretation:-

The customers while purchasing the chocolates have different prefences, as shown in the pie

chart the blue segment shows that 66 % of the customers purchases chocolates with their

preferred flavors. The red segment shows that only 04 % of the customers prefer gifts as

chocolates. The yellow segment shows that 30 % of the customers prefers both the flavours and

gift while purchasing chocolates.

66%4%

30%

CUSTOMER PERCEPTION WHILE PURCHASING

Flavour

Gift

Both


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Fig. 3

Interpretation:-

There are various time periods where the demand changes for the chocolates. The yellow

segment of the chart with 88 % shows that the customers prefer chocolates at any time. The red

segment shows that 08 % of the customers like chocolates during parties or birthdays. The blue

segment indicates that only 04 % of the customers like chocolates after their meals.

4%

8%

88%

TIME FOR CHOCOLATE

After meal

Party/Birthday

Any Time


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Fig. 4

Interpretation:-

This analysis shows the demand of the chocolate with the preferred flavors. According to the

survey 22 % of the customers prefer milky flavour, 26 % of the customers prefer coffee flavour,

22% of the customers like the fruit n nut flavour,2% of the customers like the milky And coffee

flavor, 12 % of the customers kike milky and fruit n nut flavour,8% prefer coffee and fruit n nutflavour,2% of the customers like all the flavors, and only 6% of the customers prefer other

flavors.

22%

26%22%

2%

12%

8%

2%

6%

FLAVOUR PREFERANCE

Milky

Coffee

Fruit-n-Nut

Milky+Coffe

Milky+Fruit-n-Nut

Coffee+Fruit-n-Nut

All

Other


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Fig. 5

Interpretation:-

The customers have different first preference of chocolate. The red shows that 66% of the

customers prefer Cadbury as their first preference, the blue shows that 15% of the customers

prefer amul as the first preference, the yellow shows that 13% like nestle as their first preference,

and only 6% customers prefer other as their first preference.

15%

67%

13% 5%

FIRST PREFERANCE OF CHOCOLATE

AmulCadburyNestleOther


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Fig. 6

Interpretation:-

This survey shows that 38% of the customers prefer Cadbury as their second preference, 28%

customers prefer nestle as their second preference,20% of the customers prefer amul as their

second preference, and 14% of the customers prefer others as a second preference.

14%

38%28%

20%

SECOND PREFERANCE OFCHOCOLATE

Amul

Cadbury

Nestle

Other


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Fig. 7

Interpretation:-

This analysis shows the purchasing power of the customers in a week. This shows that.70%

customers spend Rs. 50 on chocolate, 20% customers spend Rs 50-100 on chocolate,10%of the

customers spend above Rs. 50 on chocolate.

70%

20%

10%

WEEKLY PURCHASE(IN RS/-)

Below Rs/- 50

Rs/- 50 -100

Above Rs/- 100


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Fig. 8

Interpretation

This analysis shows that 58% of the customers are all well aware about the amul milk

chocolates. 23% customers are well aware about the almond bar.10% customers are well aware

about the chocozoo, 5% customers are well aware about the fundoo, 4% customers are aware

about the bindaz.

58%23%

4%

5%10%

AWARENESS OF AMUL CHOCOLATE INCUSTOMER

Amul Milk Chocolate

Almond Bar

Bindaaz

Fundoo

Chocozoo


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DATA ANALYSIS OF RETAILERS

Fig. 9

Interpretation:

This is a survey which is conducted for the retailers .it shows that 92-98% customers sells

Cadbury chocolate,70-85% customers sells nestle chocolate,52-72% customers seels amul

chocolate

96

85

64

94

82

65

95

7068

98

71

52

92

80

72

0

20

40

60

80

100

120

Percentage

ofRetailer

Company Name

Penetration of Chocolate

North Delhi

south Delhi

East delhi

West Delhi

Central Delhi


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Fig. 10

Interpretation:-

This survey is conducted for the penetration of amul chocolates. it shows that 89-99% customers

are well aware about the milk chocolate,10-40% customers are well aware about the almond

bar,7_50% of the customers are well aware about the chocozoo,15-60% customers are well

aware about the fun doo.

99

4035

38

20

97

38 4042

53

92

23

12

3538

89

10 7

13 15

98

30

50

40

60

0

20

40

60

80

100

120

MilkChocolate

Almond bar Bindaaz Chocozoo Fundoo

Percentage

Items

Penetration of Amul Chocolate

North Delhi

south Delhi

East delhi

Wes Delhi

Central Delhi


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Fig. 11

Interpretation:-

This survey is done on the various parts of Delhi this is about the east Delhi. It shows that

procurement of amul chocolate through distributor in east delhi is 29%, procurement of amul

chocolate through wholesaler in east Delhi is 23%, procurement of amul chocolate through

distributor and wholesaler in east Delhi is 48%.

29%

23%

48%

Procurment of Amul Chocolate(East Delhi )

Distributor

WholeSaler

Both


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Fig.12

Interpretation:-

This survey is done in the north side of the Delhi .it shows that the retailer procure 70%

amul chocolate from distributor in north Delhi, retailer procure 13% amul chocolate from

wholesalers in north Delhi, retailer procure 17% amul chocolate from distributor and

wholesaler in north Delhi.

.

70%

13%17%

Procurment of Amul Chocolate (North Delhi)

Distributor

WholeSaler

Both


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Fig. 13

Interpretation:-

.This survey is conducted in south Delhi. it shows that retailers procure 72% amul chocolate

from distributor in south Delhi, retailer procure 9% amul chocolate from who; sealer in south

Delhi, retailer procure 19% amul chocolate from distributor and wholesaler in south Delhi.

72%

9%

19%

Procurment of Amul Chocolate(South Delhi)

Distributor

WholeSaler

Both


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Fig. 15

Interpretation:-

.This survey shows that retailers procure 27% amul chocolate from distributor in central Delhi,

retailer procure 26% amul chocolate from wholesalers in central Delhi, retailer procure 47%

amul chocolate from distributor and wholesaler in central Delhi.

27%

26%

47%

Procurment of Amul Chocolate(Central Delhi)

Distributor

WholeSaler

Both


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Fig. 16

Interpretation:-

This survey is conducted for the demand of the amul chocolates. It shows that demand of

Cadbury chocolate in entire Delhi is about 62%,demand of nestle chocolate in entire de3lhi is

about 27%,demand of amul chocolate in entire Delhi is about 11%

62%27%

11%

Demand of Chocolate(Entire Delhi)

Cadbury

Nestle

Amul


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Fig. 17

Interpretation:-

This survey shows the weekly sales of chocolates in north Delhi. weekly sales of Cadbury in

north Delhi is about 71% weekly sales of nestle in north Delhi is about 17%,weekly sales of

amul is about 12%.

71%

17%12%

Weekly Sale of Chocolate(North Delhi)

Cadbury

Nestle

Amul


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Fig. 18

Interpretation:-

This shows weekly sales of chocolates in south Delhi. It shows that weekly sales of Cadbury in

south Delhi is about 52%,weekly sales of nestle in south Delhi is about 28%,weekly sales of

amul in south Delhi is about 20%.

52%

28%

20%

Weekly Sale of Chocolate(South Delhi)

Cadbury

Nestle

Amul


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Fig. 19

Interpretation:-

This shows the weekly survey in central Delhi. It shows that weekly sale of Cadbury in central

Delhi is about 52%, weekly sales of nestle in central Delhi is about 28%,weekly sales of amul in

south Delhi is about 20%.

62%25%

14%

Weekly Sale of Chocolate(Central Delhi )

Cadbury

Nestle

Amul


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Fig. 20

Interpretation:-

This shows the weekly sales of chocolates in west Delhi. This shows that weekly sales of

Cadbury in west Delhi is about 66%, weekly sales of nestle in west Delhi is about 24%, weekly

sales of amul in west Delhi is about 10%

58%35%

7%

Scheme from Company to their Retailer

Cadbury

Nestle

Amul


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CHAPTER 4

CONCLUSION AND RECOMMENDATIONS


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RECOMMENDATIONS

On the basis of research and analysis of the study conducted in DELHI market, which was

divided into five areas viz. south, north, east, west and central Delhi for the AMUL Chocolate. I

would like to suggest the following key point to the company.

The company should try to build some feedback mechanism from the retailer to check the

wholesalers intervention in the AMULS distribution area because the wholesaler try to

hamper the goodwill as well as the other benefit of the company and their most important

part of distribution channel.


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The company should maintain separate distribution channel for the chocolate because it is

seem mostly during study that one single distribution deals all product, as it is not a

hidden fact that the product line and product depth is very wide. In the other hand other

product most importantly AMUL butter is hot item for distributor as well as for retailers.

Therefore they dont pay properattention on to it.

The company should provide new schemes on the regular basis to the retailers as well as

to the consumers to increase its market share.

During my project this fact become clear that the customer are not well aware about the

all product item of amul chocolate so through the strong advertisement company should

try to increase the awareness of the AMUL chocolate.

The retailers main problem is storage of AMUL Chocolate as I saw Cadbury as well as

Nestle both company provide refrigerator and display box for proper storage as well as

the promotion of their product so AMUL should do something on this line.

Replacement is big problem for retailers especially in chocolate segment because all

chocolate products need special kind of care but there some unavoidable factor damage

the chocolate so company should provide revive the policy about the replacement, easyreplacement facility to the retailers so that they could be attracted toward selling the

AMUL Chocolate.

The company should start promotion campaign at the micro-level by increasing the visit

of companys representatives to the retailers.

The company should work collaboratively with the distributors in effective manner

towards focusing on the area where there is a potential market for AMUL Chocolate and

target that area.


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CONCLUSION

FROM THE ANALYSIS, THE FOLLOWING CONCLUSION CAN BE ARRIVED AT:

Amul Chocolate enjoys the trust of the retailers as well as the consumer because of its quality

and huge brand image. Currently the stock of Amul Chocolate supplied by the company is

not of fresh date. As a result of this situation is making an adverse impact on the market of

Amul Chocolate

There a big storage problem with Amul Chocolate it has need to keep in certain temperature.

Some distributors do not give proper information to the retailers about the product and offers

given by the company for the promotion of the Amul Chocolate. Which leads bad image of

the company?

There is some problem with the packaging of the product. As a result the Chocolate puffed

before its expiry period.

The supply of Amul Chocolate is not proper in some specific areas .Which gives wrong

massage about company.

The competitors of some of the competitors of are providing easy replacement facility to the

retailers which are attracting them towards those companies.

Some of the competitors of some of the competitors are providing wider margins to the

retailers. Wider margin is making the retailers to push the sales of the competitors. There are

some of the areas in Delhi are not yet

Tapped properly by the company. On the other hand the competitors are making a regular.


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BIBLIOGRAPHY

BOOKS:-

KOTLER PHILIP MARKETIG MANAGEMENT NEW DELHI PRENTICEHALL

OF INDIA.

KOTHARI C.R. RESEARCH METODOLOGY

SEARCH ENGINE:-

www.google.com

www.yahoo.com

WEB SITE:-

www.amul.com

MAGAZINES :-

BUSINESS WORLD

BUSINESS TODAY

PREOIDICAL:-

ECONOMIC TIMES

TIMES OF INDIA(DELHI EDITION)
http://www.google.com/http://www.google.com/http://www.yahoo.com/http://www.yahoo.com/http://www.amul.com/http://www.amul.com/http://www.amul.com/http://www.yahoo.com/http://www.google.com/


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ANNEXURES

CUSTOMER QUESTIONNAIRE

Name Occupation..

Age Monthly income.

Place.

1. Do you eat chocolate?

Yes No

2. Which type of chocolate do you like most?

Candy Toffee Bar

3. Whats in your mind while purchasing chocolate?

Flavor Gift both

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

After meal Birthday party any time

5. Which type of flavor/taste does you like the most?

Milky coffee Fruit-n-Nut Other

6. Which chocolate do you like the most? Name

a) .. b) ..

7. How much do you spend in chocolate in a week?

Below 50 50-100 Above 100

8. Do you aware about?

Yes No

Amul milk chocolate

Almond Bar

Bindaaz


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Fundo

Choc zoo

9. Have you tasted Amul chocolate?

Yes No

Milk chocolate .

Almond Bar .

Bindaaz . .

Fundo . .

Choc zoo . .

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

Milk chocolate ..

Almand Bar .

Bindaaz .

Fundo ..

Choc zoo .

11. How you come to know about Amul chocolate?

By electronic media By print media By retailer By Display Any other

.

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

Taste Price packaging

Cadbury

Nestle

A l

Documents

priyansha sharma (mpr)