Slide 1

AMUL-SALES AND DISTRIBUTION

Submitted To:Mr. K.K.KhannaMr. Aavesh

Gujarat Cooperative Milk Marketing Federation

India's largest food products marketing organization.Intends to be largest food company in India.State level apex body of milk cooperatives in GujaratAims to provide remunerative returns to the farmersAlso serve the interest of consumers by providing quality products which are good value for money.

AMUL Ice Cream-History BORN on 10th March, 1996 in Gujarat1997-Mumbai1998- Chennai2002-Kolkata and DelhiIn January 2007, Amul introduced SUGAR FREE & Pro Life Probiotic Wellness Ice Cream, which was a first in India.Amul ice cream is positioned as 'real ice-cream' made from real milk cream, while HUL's Kwality Walls is made from vegetable oil and its items are dubbed as Frozen Deserts

Manufacturing Units

Distribution ProcessManufacturing UnitCarrying & Forward AgentDistributorVendorsRetailerConsumersVRSConsumers

Distribution Network Depots with dry and cold warehouses to bufferinventory of the entire range of products Transacts on an advance demand draft basisfrom its wholesale dealers instead of thecheque system adopted by other major FMCGcompanies Philosophy of maintaining cash transactionsthroughout the supply chain

Distribution Network Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment (ROI) All GCMMF branches engage in route scheduling and have dedicated vehicle operations.

Policy regarding unsold/spoilt goods If product crosses the shelf life, the vender bears the costs. If the product gets spoilt during the transportation or if there is any customer complaint, Amul bears costs. Unsold goods are not returned to the manufacturer. No reverse logistics.

Competitors in the industry:- The major competitors of Amul are Mother dairy, Kwality Walls,Cream Bell and Vadilal.

FOUR PS OF THE PRODUCT

PRODUCT: Amul ice cream has wide range of variety that consists of more than hundred flavors available in the market . As ice cream is an impulsive purchase item so, its sale depends mostly on availability and variety. PRICE: The price of Amul ice cream is very less compared to its competitors. In novelty item the price of the flavors varies from Rs.2 to Rs22. The pricing strategy of Amul is, to target each income group of the society. The cheaper price of ice cream is meant for targeting the people with low income. Along with the low income group Amul is also targeting medium as well as the premium segment by providing different flavors at different prices.

FOUR PS OF THE PRODUCT

PLACE: The distribution of the ice cream in Delhi is done through exclusive Amul outlets situated in various locations. In Delhi, Amul has eleven distributors who supplies ice cream to retail outlets or vendors. These eleven distributors are responsible for their respective areas.PROMOTION: Amul is a well-established brand name of GCMMF. For promotion of the ice cream the company gives advertisement in newspaper and magazines. It gives glow sign board to every retailers and also makes wall paintings on there request. Amul uses their punch line ---Real milk real ice cream for the promotion.

SWOT ANALYSIS

SWOT Analysis is a vital tool in order to judge the competitors and to analyze the position of the company itself. Basically S.W.O.T. analysis refers to the Strength, Weakness, Opportunities and Threats.

Strengths

Amul has well built image of excellence and innovationBiggest souring base for milk and milk products in IndiaQuality of Ice cream is excellent and it doesnt use any artificial items in making Ice creamIt has well logistic and distribution channel networkIt ensures that only cow and buffalo milk is used for making Ice cream by collecting milk from cooperativesAbundant availability of milkHigh brand image of AMUL in the marketOfferings new products to customers continuouslyMaximum share in take away home packs i.e. Bricks due to its lower pricing, many flavors, economical pack sizes, and promotional schemes.Customer is most comfortable buying Ice Cream in the Value for Money segment and Amul is well present in this segment.

Weakness

Unable to meet the market demand during peek season time.Availability of all type of verity ice is not regular.No training schedules for training to vendors.Equal importance is not given by Distributors to all the vendors. They neglect some of the vendor.Image of Amul is being lost due to no timely supply of goods in the marketLagging much behind in Advertisement and Promotional activitiesKwality Walls is into heavy advertising and consequently, is popular. Lack of dedicated push carts for area. Lack of focus due to multiple brands.Less attractive packaging

Opportunities

There is a phenomenal scope for value addition in innovations in product development, packaging and presentationBy increasing the production capacity, it can fulfill the demand during the peak seasonThere is ample scope in the low priced segment as also in other categories where consumers presently are dissatisfied with the quantity being provided vis a vis the price being charged. Amul has the opportunity to capture the more evolved young adults and children who are open to new products provided they meet their expectations. Internet promotions are a good means of awareness which should be tappedBy increasing focus on impulse items, it can increase its market shareCan reach out to different segments which have remained untouched.Amul must concentrate on heavy promotional advertising in order to maintain its market share. More enthusiastic efforts need to be carried out.

Threats

Cut throat competition in the marketNew companies are entering the ICE industry.Local manufacturers are growing at alarming rateKwality walls product differentiation strategy has been very well received by the consumerKwality wall focuses more on advertisements. Recently, Mother dairy has also started focusing on TV advertisementsNo flexibility in strategyThe major competition is from push carts business of Mother dairy and Kwality walls Customers are not brand loyal in Ice cream industry

PROBLEMS OF VENDORS OF AMUL IN EAST DELHI GCMMF

Less number of units in boxes.Some where vendor feels they are neglected by the company Dress are not provided to AMUL vendorsDistributors not supplying product on time.Damage products was received by Vendors of Amul.Short supply of goods.Vendors wants incentives on sales.Reapair cost of cart, Battery and light was not given to the vendors.Product not available on time by distributor.Technicians were not available on time for rapair work of push carts.

SCOPE OF IMPROVEMENTMore vendors should be located on this area.Timely check the requirement and problems of vendorsLess focused on pacakging New innovative method of marketingNew variable product should be launched

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