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A Report ON
COST EFFECTIVE DISTRIBUTION CHANNEL OF AMUL CUP DAHI
AT
GUJRAT CO-OPERATIVE MILK MARKETING FEDERATION LIMITED (KOLKATA)
PRESENTED BY
TANMOY DUTTA
PGDM (2010-2012)
MASTER SCHOOL OF MANAGEMENT
COMPANY GUIDE:
MR.KAUSHIK CHAKRABORTY (ASST.MANAGER, SALES)
INSTITUTE GUIDE:
MRS.NEHA SHARMA
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PREFACE
AMUL is the pride not only of Gujrat but also of entire country. I have greatpleasure in preparing this project of such organisation. A person aspiring to
enter in management profession must have practical knowledge of the subject.
The objective of industrial training is to develop practical knowledge in student
as a supplement to the theoretical study of management in general as well as
industrial. It provides foundation to students intending to pursue a career in
this field.
The Industrial training is the most exciting experience of the education. Everyperson needs some changes from routine education. For this training industry
is selected by me and fetch information about different products ofAMUL,
and its activities. But I concentrated more on taking information about
Distribution channel of Amul Cup Dahi.
It is only the training through which I come to know that what an industry
is and how it works. I can learn about various departmental operations
being performed in the industry, which would, in return, help me in thefuture when I will enter the practical field.
During this whole training I got lot of experience and came to know about
the management practices in real that how it differs from those of
theoretical knowledge and the practically in the real life. We also know the
Experience is the most important skill for my corporate life.
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ACKNOWLEDGEMENT
Every piece of hard work requires the combined efforts and talents
of many people. An ambitious work of this kind, providing analytical
review to the subject would have remained a concept rather than
the finished product without cooperation of those who respondent
to our request to contribute. In the present world of competition and
success, training is like a bridge between theoretical and practical
working; willingly I prepared this particular project.
With immense pleasure, I would like to present this project report on
AMUL MASTI CUP DAHI for Gujarat Co-operative Milk Marketing
Federation Ltd., KOLKATA.
We are very much thankful to those people who give us their valuable time
and related information about Amul. I would like to express my sincere
thanks to all those who helped me during my practical training programme.
Words are insufficient to express my gratitude toward Mr.KAUSIKCHAKROABORTY Asst.Manager,Sales of Amul.
The manager of New India Agency(Distributer), Mr. BABU , along with the
salesmen, Mr. BAKSHI, Mr. DUTTA deserve special mention for ensuring
co-operation towards my project at all times. They were the pivot around
which my project revolved.
My faculty guide, Mrs. NEHA SHARMA had been pivotal for the successfulcompletion of the project by guiding me throughout the entire phase. I
would like to extend my gratitude to him for rendering all the support I
needed throughout my Management-in-Practice.
Lastly, I convey my regards to the whole staff, which made my stay at
G.C.M.M.F LTD. A memorandum part of life.
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EXECUTIVE SUMMARY
PROJECT SCOPE
The project was entitled TO MAKE COST EFFECTIVE DISTRIBUTION CHANNEL
OF AMUL CUP DAHI. The research objectives are as follows:
To make the distribution channel of Amul Cup Dahi more cost effective.
To create awareness for the same product by demonstrating its
functional benefit for the human system.
To increase the off take of the retailers for the same product.
To market Amul Cup Dahi in a more effective manner in spite of the
existence of Amul Pouch Dahi in the market (Amul Pouch Dahi isavailable in almost half price of Amul Cup Dahi.)
To know retailers satisfaction and their thinking about AMUL MASTI
DAHI (CUP) in terms of price, schemes and offers.
Demand estimation of AMUL MASTI CUP DAHI in a particular area.
MARKETING COVERING
A total of ten markets and near about 300 retailers in Kolkata, were taken to
be visited in order to make the power plan. The bases for selection are,
Situated at good place
Cold storage facility
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High storage capacity
High customer demand
PROJECT REPORT CONTENT
INTRODUCTION..
Introduction to the study
Theoretical background of the study
Need for the study
INDUSTRY PROFILE..
Food industry
Advantage of India under food industry
FMCG
TOP 10 INDIAN FMCG SECTOR
COMPANY PROFILE..
Company Background
Organization Structure
List of products
PRODUCT PROFILE
Total market size of curd
Advantage of cup Dahi
Major competitors
Brand image
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SWOT analysis
EXISTING DISTRIBUTION CHANNEL
ALTERNATIVE MODEL OF PROJECTED DISTRIBUTION CHANNEL..
LIMITATION OF THE Study..
STATEMENT OF THE PROBLEM
SUGGESTIONS.
CONCLUSION
BIBLIOGRAPHY
APPENDICES.
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INTRODUCTION
INTRODUCTION OF THE STUDY
India is a fertile economy for international products and company. Everycompany are emerging at the faster level. The technology and advancement
have permitted companies to widen substantially both Markets and suppliers
sources. Now as companies are emerging with their new products, marketing
has become exuberant activity in expanding the market globally.
Marketing starts with human need and wants. It is a human activity directed at
satisfying needs and wants through exchange process.
Marketing management is the process of planning and executing conception,pricing, promotion and distribution of ideas, goods and services to create
exchanges that satisfy individual and organizational goals. In other words we
can say it deals with identifying and meeting human and social needs. It is
basically a meeting needs profitability. The aim of marketing is to know and
understand the customer so well, that the product and service fits him and
sells itself.
It acts as an instrument to lift up the standard and life style of theeconomy with the help of the marketing. Marketing is of critical importance
because it maintains stability in the economic condition.
Marketing is an existing, dynamic and contemporary field. It is recognized as
the most significant activity in the society. Marketing has a widest connection
which include in its fold selling, buying, transportation, warehousing,
pricing and packaging.
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Amul was formed in 1946, is a dairy cooperative in India. It is a brand name
managed by an apex cooperative organisation, Gujrat co-operative Milk
Marketing Ltd (GCMMF), which today is jointly owned by some 2.8 million
milk producers in Gujrat, India.
THEORETICAL BACKGROUND OF THE STUDY
Amul Masti Dahi- The answer to making great tasting dishes is fresh, creamy
and good quality dahi.It is ideal meal accompaniment and is delicious as wellas nutritious by itself too.Amul Dahi is prepared in controlled conditions i.e.
maintaining proper temperatures to grow beneficial bacteria and to avoid
growth of harmful bacteria. It is pasteurized product i.e. Free from unwanted
bacteria and also its prepared with selected culture having pro health bacteria.
The culture is developed after in depth research.
Amul Masti Dahi is prepared from purest, freshest pasteurized milk and it is
free from added sugar and its doesnt contain any preservatives. Amul Masti
Dahi is prepared from certified and selected bacterial culture which gives
excellent curd and its also hygienically processed and packed in a reusable
plastic tub as well as convenient pouch and thus free from Possible adulteration.
Amul Masti Dahi is high on nutrition and taste.The live micro flora in Amul
Masti Dahi helps the digestive system and enhances the immune systems
ability to fight harmful organisms. It improves the bodys natural defences and
helps keep the body functioning at its best.
Amul Masti dahi is a health conscious product because its having a probiotic
nature contains live bacterial culture which increases milk digestibility,
quickens recovery from certain types of diarrhoea, skin infections, enhances
immune function of the body and encourages the body to function in the best
possible and most natural way. In amul masti dahi there are various contains
such as proteins, carbohydrates, fats, calcium, phosphorous, magnesium, zinc,
iodine and vitamins.
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Probiotics are living micro-organisms, which when ingested or locally applied
in sufficient numbers confer one or more specified, demonstrated health
benefits on the consumer. As against Antibiotic, Pro-biotic means 'for life',which indicates an essential property of probiotic cultures.The health benefits
of probiotic foods are improved digestion and nutrient absorption, reduced
blood cholesterol etc.Probiotics are beneficial bacteria that can be introduced
into the digestive system through food like Amuls Probiotic Dahi.
Now when it comes to distribution channel for amul cup dahi which comes
under the chilled category, the company needs to follow a critical distributionchannel so that all the potential retail outlets could be reached easily in an
effective manner to cater the noticeable demand for the premium product. Amul
cup dahi which has self-life of 15 days only reaches distribution point after a
day of manufacturing. And then it is being made available to the retailer within
two or three days time period which in turn affects the sale of cup dahi due
customer reluctance of backdated product.
Without a taste of dahi people doesnt consider their quota to be fulfilled as far
as eating pattern is concerned over time at Kolkata. So its very natural for the
people of Kolkata that they consume dahi almost on a daily basis, which
indicate a huge demand for dahi. But people of here are very concerned about
the taste of dahi and they are fond of either homemade or dahi of private level
(sweet shop) which is sweet in taste or plain. Therefore its crystal clean for the
company that dahi of private level is most competent Element for them. Apart
from this there are brand like Metro Dairy and Amul Masti pouch dahi itselfshowing a real threat to Amul Masti cup dahi to excel further.
A marketing channel performs the work of moving goods from producer to
consumer. It overcomes the time, place, possession gap that separate goods and
services from those who need or want them , members of the marketing
channel perform a number of key function like forward flow of activity from the
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company to customer (goods) and backward flow from customer to company
(order and payment).
The Amul Indias product portfolio consists of four different categories, and
they are
1. Frozen.2. Chilled.3. Ambience4. Milk
Therefore to obtain the highest degree of spatial convenience the company
focuses on four different categories of product lines.
NEED FOR THE STUDY
In present market scenario customers are fairly exposed to a growing range of
choices in the different brands of product & services. And the choices are based
on their perception of the brand and qualities of the product & services they are
paying for.
With the help of the study it can be easily said that for a product like Amul
Masti Dahi (cup) which is targeted to the premium or upper segment of the
consumers, the company needs to understand what are the several factors
affecting or influencing the existence of the product. After going through this
study it is ensure able that the company can have a clear view of the product in
the long run. This study mainly focuses on making the existing distribution
channel more effective in terms of time as well as cost.
This study will allow the company in giving them a better understanding of the
distribution channel so that the demand of the premium segment can be catered
in an effective and profitable manner by reaching the potential retail outlets in
accordance with the time. Besides this it is also very important for the company
to make people aware of the pro-biotic culture of Amul Dahi in a better manner
so that potential target segment of the customers can be reached easily.
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Therefore it becomes necessary to understand, analyse, and evaluate among the
projected distribution model in a systematic manner and act accordingly for a
more cemented existence in todays competitive market scenario.
INDUSTRY PROFILE
Type: Co-operative
Industry: Dairy
Founded: 1946
Headquarters: Anand
Key people: Chairman, Kaira District Cooperative Milk Producers Union
Limited (KDCMPUL)
Revenue: INR (Indian Rupee) 67.11 billion; $1.33 USD (in 2008-09)
Employees: 735 employees of marketing arm. However, real pool consist of 2.8
million milk producers
Website:www.amul.comAmul is the largest food brand in india and worlds largest pouched milk
brand with an annual turnover of US $1050 million (2006-07).
FOOD INDUSTRY
The food industry is the complex, global collective of diverse business that
together supply much of the food energy consumed by the world population.
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Only subsistence farmers, those who survive on what they grow , can be
considered outside of the scope of the modern food industry.
The food industry includes:
Education: Academic, vocational, consultancy
Research & Development: Food technology
Financial service: Insurance, credit
Manufacturing: Agrichemicals, seed, farm machinery and suppliers,
agricultural construction, etc.
Regulation: Local, regional, national and international rules and regulations for
food production and sale, including food quality and food safety, and industry
lobbying activities.
Agriculture: Raising of crops and livestock, seafood.
Food processing: Preparation of fresh products for market, manufacture of
prepared food products
Marketing: promotion of generic products, new products ,public opinion,
through advertising, packaging, public relations, etc
Wholesale and distribution: Warehousing, transportation, logistics
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Retail: Supermarket chains and independent food stores, direct-to consumer,
restaurant, food services.
Advantage of India under food industry:
India is one of the largest food producers in the world. India has diverse raw
material base suitable for food processing companies. Investment requirement
of around US$16 billion exists in the food processing sector.
India is looking for investment in infrastructure, packaging and marketing. India
has huge scientific and research talent pool. A largely untapped domesticmarket of 1000 million consumers, 300 million upper and middle class consume
processed food and 200 million more consumers expected to shift to processed
food by 2011. Here are well developed infrastructure and distribution network.
Rapid urbanization, increased literacy, changing life style, increased number of
women in workforce, rising per capita incomeleading to rapid growth and new
opportunities in food and beverages sector.
50 percent household expenditure by Indians is on food items
Strategic geographic location (proximity of India to markets in Europe and Far
East, South East and West Asia)
Under the food industry, Dairy product is very important part of food
processing. Dairy processing is acting good role in India.
FMCG
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Products which have a quick turnover, and relatively low cost are known as Fast
Moving Consumer Goods (FMCG). FMCG products are those that get replaced
within a year. Examples of FMCG generally include a wide range of frequentlypurchased consumer products such as soap, cosmetics, tooth cleaning products,
shaving products and detergents, as well as non-durables such as glassware,
bulbs, batteries, paper products, and plastic goods. FMCG may also include
pharmaceuticals, consumer electronics, packaged food products, soft drinks,
tissue paper, and chocolate bars. A subset of FMCGs is Fast Moving Consumer
Electronics which include innovative electronic products such as mobile
phones, mp3 player, digital camera, GPS system and laptops. These are
replaced more frequently than other electronic products. White goods in FMCGrefer to household electronic items such as Refrigerators, TVs, Music system,
etc.
Indian FMCG Sector
The Indian FMCG sector is the fourth largest in the economy and has a marketsize of US$13.1 billion. Well- established distribution networks, as well as
intense competition between the organized and unorganized segments are the
characteristics of this sector. FMCG in India has a strong and competitive MNC
presence across the entire value chain. It has been predicted that the FMCG
market will reach to US$33.4 billion in 2015 from US$11.6 billion in 2003. The
middle class and the rural segments of the Indian population are the most
promising market for FMCG, and give brand markets the opportunity to convert
them to branded products. Most of the products categories like jams, toothpaste,skin care, shampoos, etc, in India, have low per capita consumption as well as
penetration level, but the potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with
rapid urbanization, increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as
well. 62 of the top 100 brands are owned by MNCs, and the balance by Indian
companies. Fifteen companies own these 62 brands, and 27 of these are owned
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by Hindustan Lever. Pepsi is at number three followed by Thums up. Dabur
india takes the fifth place, followed by Asian paints(6), Cadbury india(7),
Britannia(8), P&G(9), Marico(10). These are figures the soft drink and cigarette
companies have always shied away from revealing. Personal care, cigarettes,
and soft drinks are the three biggest categories in FMCG. Between them, they
account for 35 of the top brands.
The Top 10 Companies In FMCG Sector
Hindustan Unilever Ltd.
ITC (Indian Tobacco Company)
Nestle India
GCMMF (AMUL)
Dabur India Ltd.
Asian Paints (India)
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Cadbury India
Britannia Industries Ltd.
Procter & Gamble Hygiene and Health Care
Marico Industries Ltd.
COMPANY PROFILE
THE TASTE OF INDIA, AMUL comes from the Sanskrit word Amoolya,
means priceless. It was suggested by a quality control expert in Anand and itwas chosen because it was perfect acronym for Anand Milk Union Limited.
AMUL was formed under the dairy cooperative movement in India in 1946.
The AMUL pattern has established itself as a uniquely appropriate model for
rural development. Amul has spurred the white revolution of India , which has
made India the largest producer of milk and milk products in the world.
The story of Amul inspired operation flood and heralded the White
Revolution in India. It began with two village cooperatives and 250 liters ofmilk per day, nothing but a trickle compared to the flood it has become today.
Today Amul collects processes and distributes over a million liters of milk and
milk products per day, during the peak, on behalf of more than a thousand
village cooperatives owned by half a million farmer members.
The Amul revolution started as awareness among the farmers grew and matured
into a protest movement. Over four decades ago, the life of a farmer in Karia
district was very much like that of his counterpart anywhere else in India. His
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income was derived almost entirely from seasonal crops. The income from
milch buffaloes was undependable. Private traders and middleman controlled
the marketing and distribution system for the milk. As milk is perishable,
farmers were compelled to sell it for whatever they were offered.
It is also the worlds largest vegetarian cheese brand. The system succeeded
mainly because it provides an assured market at remunerative prices for
producers milk besides acting as a channel to market the production
enhancement package. Whats more, it does not disturb the agro system of the
farmers. It also enables the consumer an access to high quality milk and milk
products. Contrary to the traditional system, when the profit of the business was
cornered by the middleman, the system ensured that the profit goes to the
participants for their socio-economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it
pattern and model for emulation elsewhere.
Amul has been able to:
Produce an appropriate blend of the policy makers farmers board of
management and the professionals: each group appreciating its rotes andlimitations,
Bring at the command of the rural milk producers the best of the
technology and harness its fruit for betterment.
Provide a support system to the milk producers without disturbing their
agro economic systems,
Plough back the profits, by prudent use of men, material, and machines in
the rural sector for the common good and betterment of the members
producers.
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Even though, growing with time and on scale, it has remained with the
smallest producer members. In that sense, Amul is an example, of anintervention for rural change.
ORGANISATION STRUCTURE
It all started in December 1946 with a group of farmers keen to free Them
selves from intermediaries, gain access to markets and thereby ensure maximum
returns for their efforts.
Based in the village of Anand, the Karia District Milk cooperative Union
expanded exponentially. There are similar federations in other states. There was
recognition that this initiative would directly benefit and transform small
farmers and contribute to the development of society.
Markets, then and even today are primitive and poor in infrastructure. Amul and
GCMMF acknowledged that development and growth could not be left to
market forces and that proactive intervention was required. Two key
requirements were identified.
The first, that sustained growth for the long term would depend on matching
supply and demand. It would need heavy investment in the simultaneous
development of suppliers and consumers.
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Second, that effective management of the network and commercial viability
would require professional managers and technocrats. To implement their vision
while retaining their focus on farmers, a hierarchical network of cooperatives
was developed, which today forms the robust supply chain behind GCMMFs
endeavours. The vast and complex supply chain stretches from small suppliers
to large fragmented markets. Management of this network is made more
complex by the fact that GCMMF is directly responsible only for a small part of
the chain, with a number of third party players playing large roles.
Managing this supply chain efficiently is critical as GCMMFs competitive
position is driven by low consumer prices supported by a low cost system. The
Union looks after policy formulation, processing and marketing of milk,
provision of technical inputs to enhance milk yield of animals, the artificialinsemination service, veterinary care, better feeds and the like- all through the
village societies.
List of Products Marketed by Amul
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 cheese
Amul shredded pizza cheese
Amul Emmental cheese
Amul gouda cheese
Amul Malai paneer
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Utterly delicious pizza
Mithaee Range:
Amul Shrikhand
Amul amrakhand
Amul mithaee gulabjamuns
Amul mithaee gulabjamun mix
Amul mithaee kulfi mix
Avsar ladoos
UHT Milk range:
Amul shakti 3%fat milk
Amul tazza 1.5% fat milk
Amul gold 4.5% fat milk
Amul lite slim-n-trim milk 0% fat milk
Amul shakti toned milk
Amul fresh cream
Amul snowcap softy mix
Pure Ghee:
Amul pure ghee
Sagar pure ghee
Amul cow ghee
Infant Milk Range:
Amul infant milk formula 1
Amul infant milk formula 2
Amulspray infant milk food
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Milk Powders:
Amul full cream milk powder
Amulya dairy whitener
Sagar skimmed milk powder
Sagar tea and coffee whitener
Sweetened Condensed Milk:
Amul mithaimate sweetened condensed milk
Fresh Milk:
Amul tazza toned milk 3% fat
Amul gold full cream milk 6% fat
Amul shakti standardised milk 4.5% fat
Amul slim & trim double toned milk 1.5% fat
Amul saathi skimmed milk 0% fat
Amul cow milk
Curd Products:
Amul flaavyo yoghurt
Amul masti dahi (fresh curd)
Amul masti spiced butter milk
Amul Lassee
Amul Icecream:
Royal treat range
Nut-o-Mania range
Natures treat
Sundae range
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Assorted treat
Utterly delicious
Chocolate & Confectionery:
Amul milk chocolate
Amul fruit & nut chocolate
Brown Beverage:
Nutramul malted milk food
Milk Drink:
Amul kool flavoured milk
Amul kool caf
Amul kool koko
Amul kool milk shakee
PRODUCT PROFILE
Dahi is popular in Indian diet through ages. Dahi is the productmade by coagulation of milk with the help of lactic acid fermentationby advantages bacteria. Dahi is more preferred from of all nutrientsof milk in pre-digested form.
Amul Masti Dahi is made from standardized milk with 4.5% fat and
8.5% SNF which gives creamy compact body and texture. Fatcontent is 50% more than others brands. It is made in the mosthygienic way with state of art modern processing plant. It is madewith special culture called Direct Vat Set Culture(DVC), they areRST and CHN-11 contains mixer of acid producing and flavourproducing organism to give smooth, mild acidic taste and pleasantflavour producing organism to give smooth, mild acidic taste andpleasant flavour consistently.
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Amul Masti Dahi is available in convenient and attractive reusableplastic cups. Which are sealed with tamper proof aluminium seals toavoid any adulteration. This curd is available in two different packs sizes200 gm and 400gm cups.
Total Market size Of Curd
Per capita consumption of milk is 225ml per person perday. Out of this 25% of milk is converted into curd. Soconsumption of curd is 50gm per person per day. So fortown with 100,000 population market potential for curdis 5 Metric Ton per day.
Attractive pricing of Amul Masti Dahi
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Masti Dahi Advantage
Amul Masti Dahi is prepared from purest, freshestpasteurized milk and it is free from added sugar.
Amul Masti Dahi is prepared from certified and selected
bacterial culture which gives excellent curd
Amul Masti Dahi is hygienically processed andpacked in a reusable plastic tub as well as
convenient pouch and thus free from possibleadulteration.
Amul Masti Dahi is high on nutrition and taste. Amul Masti Dahi having a probiotic nature contains live
bacterial culture which increases milk digestibility, quickens
recovery from certain types of diarrhea, skin infections,
enhances immune function of the body and encourages the
body to function in the best possible and most natural way. Amul Masti Dahi contains all goodness of milk such as proteins,
carbohydrates, fats, calcium, phosphorous, magnesium, zinc,
iodine and vitamins.
Lactic acid in Amul Masti Dahi is helpful in absorption andutilization of calcium.
Market Share
In all the market, where the company had launched Masti Dahi,its market share is more than 80% except in south.
Major Competitors
Amul masti pouch Dahi is the major competitor of Amulmasti cup Dahi.
Private level Dahi.
Brand Image
Great testing dishes is fresh, creamy and good qualitydahi.
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Delicious to eat Prefered by the entire family. Probiotic concept Convenient packaging
Good for health Amul is the big brand
SWOT Analysis
Strength:
Good brand image: It manufactures only milk and milk
products, which is purely vegetarian thus providing qualityconfidence in the minds of the customer.
Indian Brand: The company is having Indian origin thuscreating feeling of oneness in the mind of the customer.
Probiotic concept: Probiotic concept is the one of theunique features that is differentiate with any private level curd.
Weakness:
No Replacement.
Improper distribution channel.
Only 15 days self life
Improper supply
Opportunity:
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Extention: Intensive advertisements and brand image,company has good scope future.
Product offering: Can offer wide variety of Dahi underumbrella of Amul Masti Dahi.
Existing market is not fully tapped & the company canincrease presence by penetrating further.
Threats:
The major threat is his own product i.e Amul Masti pouchDahi and private level curd.
There is no brand loyalty in the curd market and theconsumer can change their brand.
Existing distribution channel
Distribution channel is a path through which goods & services flow in one
direction (from vendor to consumer) and the payments generated by themthat flow in the opposite direction (from consumer to the vendor).
A marketing channel can be as short as being from the vendor to the consumer
or may include several interconnected intermediaries such as wholesaler,
distributer, agents, retailer. Each intermediaries receives the item at one
pricing point and moves it to the next higher pricing point until it reaches the
final buyer.
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The channel Network
Distribution Channel
Manufacturing unit (Kolkata, Dankuni)
Distributer point (Shyambazar)
Mkt-1 Mkt-2 Mkt-3 Mkt-4 Mkt-5 Mkt-6 Mkt-7 Mkt-8
Lake-town Subhasnagar Bangur Italgacha Sribhumi- Dumdum Airport Durgangar
Dakshindari Naryantala Gorabazar
Its a downstream channel. Downstream channel is the part of the supply
chain, from the manufacturing units to the retailer.
Dahi is a fresh category product and its self life only 15 days, So that its
manufacturing point in Dankuni, Kolkata and after that is immediately supply
to the distributer point to serve the product to their targeted retailer. And
transportation is done on 3and 5MT Tata407s, auto-rickshaw, rickshaw etc.
Presently under New India Agencies distribution beat are as follows,
DAY LOCATION SALESMAN
Monday Subhasnagar part-1
Sribhumi-Dakshindari
Salesman-1
Salesman-2
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Tuesday
Bangur
Airport
Salesman-1
Salesman-2
Wednesday Laketown -kalindi Salesman-1
Thursday
Subhasnagar part-2
Gorabazar
Salesman-2
Salesman-1
Friday Italgacha Salesman-2
Saturday
Durganagar
Dumdumpark-Narayantala
Salesman-1
Salesman-2
In this way both salesman are covered the existing distribution beat of Dahi as
well as other product line.
But existing distribution beat have been faced some problem for supply as well
as delivery of Dahi. The problem are ,
As the schedule of the existing distribution beat distributer are visit to the
retailer once a week but some potential retailer want to take Dahi twice in a
week and fresh Dahi along with 15 days self-life.
Another is that New India Agency order Dahi from the company twice in a
week (Monday, Thursday).But under the New India Agencies Wednesday and
Saturday market (lake-town,Sribhumi-dakshindari,Durganagar,dumdumpark-
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narayantala) did not get the fresh product, both market get 3days backdated
product and retailer get only 12days self-life of the particular product.
Alternative Model Of Projected Distribution
Channel
In this present scenario after scanning all the existing distribution beat under
the New India Agencies market, I have projected a new cost effective
distribution plan for amul cup dahi. In this project I have prepared the new
distribution beat under the New India Agencies market for Amul cup dahi only.
All markets are divided into two beats.
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This beats model are as follows:
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In this model shows that total market are divided into two beat and also two
way. From this study I find that in the beat-1 all the markets are same route
and in the beat-2 all the markets are same route thats for I have prepared inthis type of beat model that is cost effective.
In the beat-1 markets are- (i) Sribhumi-dakshindari (ii) laketown-kalindi (iii)
Bangur (iv) Dumdumpark-Narayantala
In the beat-2 markets are- (i) Subhasnagar part-1 (ii) Subhasnagar part-2 (iii)
Airport (iv)Italgacha (v) Gorabazar (vi) Durganagar.
In the beat-1, salesman can covered easily all the dahi market as well as other
product line of Amul. In the beat-2, salesman can covered all the dahi market
as well as other product line of Amul.
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Potential and Actual Retail stores
After scanning the full market under the New India Agency, I have selected 17potential retail stores. In 17 retail stores select on the basis of:
A.Situated at good place
B.Cold storage facility
C.High storage capacity
D.High customer demand
The 17 retail store and beat are as follows:
PROTENTIAL RETAIL STORE ADDRESS Beat
Swapan stores Laketown Beat-1
Khagen stores Laketown Beat-1
Grih Laxmi Laketown Beat-1
Matri varaities stores Laketown Beat-1
Trishul stores Laketown Beat-1
Annanya Subhasnagar part-1 Beat-2
Kaberi stores Subhasnagar part-1 Beat-2
Mimo stores Dumdumpark Beat-1
Srikrishna bhandar Italgacha Beat-2Monmohon stores Italgacha Beat-2
Radharani stores Dakshindari Beat-1
Kolpotoru Subhasnagar part-2 Beat-2
Dutta varaities stores Subhasnagar part-2 Beat-2
Mouchak Subhasnagar part-2 Beat-2
Sreehari stores sribhumi Beat-1
Laxmi narayan amul parlour Durganagar Beat-2
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These 17 retail store are situated different different location and all location
are divided into two distribution beat. This distribution beat are prepared only
for Dahi market.
In this process salesman can cover market twice in a week (only cup dahi
market) and retailer can get fresh supply along with 15 days self life.
Alternative way of distribution plan for Amul cup dahi delivery
Alternative-1Beat-1 Beat-2
Tuesday Salesman-1(Bangur) Salesman-2(airport)
Saturday Salesman-2(Dumdumpark) Salesman-1(Durganagar)
In the alternative shows that
Since beat-1 and beat-2 consist of 70-75 retail store selling Amul Cup Dahi
among 16 are
Potential. Delivery of the Amul cup Dahi should be require twice in a week
according of those potential retail store to avoid the replacement problem and
stock out position. And the proposed day should be Tuesday and Saturday.
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On Tuesday salesman-1 have been work in the Bangur market then he can
easily covered the all potential retail store under the beat-1 in effective
manner.
On Tuesday salesman-2 have been work in the Airport market then he can
easily covered the all potential retail store under beat-2 in effective manner.
On Saturday salesman-2 have been work in the Dumdumpark-narayantala
market then he can easily covered the all potential retail store under beat-1 in
effective manner.
On Saturday salesman-1 have been work in the Durganagar then he can easily
covered the all potential retail store under beat-2 in effective manner.
Because the beat-1 all four market and beat-2 all six market are very near to
each other and it is possible to make it available without breaking existing
distribution beat and this plan would be cost effective also.
Apart from existing market salesman-1 will cover additional potential Dahi
retail store(beat-1), additional retail store are: Swapan stores,Khagen
stores,grih laxmi,Matri varaities store,Trishul stores in lake-town,Mimo stores
in dumdumpark,Radharani stores in Dakshindari and Sreehari stores in
Sribhumi on Tuesday. salesman-2 will cover additional potential Dahi retail
store(beat-2), additional retail store are:Annanya,Kaberi stores in Subhasnagar
part-1,Srikrishna bhandar,Monmohon stores in Italgacha, Kolpotoru,Dutta
varaities stores,Mouchak in Subhasnagar part-2 and Laxmi Narayan amul
parlour in Durganagar on Tuesday.
Apart from existing market on Saturday Salesman-2 and salesman-1 will cover
additional potential Dahi retail store(beat-1 and beat-2).
Merits and Demerits of alternative-1
Merits:
(i)No additional transportation cost required.
(ii)Retailer get fresh product as well as 14days self-life.
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(iii)No additional salesman required.
Demerits:
On that proposed day existing beat market is too much large therefore the
both salesman have to maintain the hectic schedule. It is difficult to maintain
all the potential outlet.
Alternative-2
Beat-1 Beat-2
Monday Salesman-2(Dakshndari) Salesman-1(Subhasnagar part-1)
Friday ------------------------ Salesman-2(Italgacha)
Saturday Salesman-2(dumdumpark) Salesman-1(Durganagar)
In the alternative-2 shows that :
Since beat-1 and beat-2 consist of 70-75 retail store selling Amul Cup Dahi
among 16 arePotential. Delivery of the Amul cup Dahi should be require twice
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in a week according of those potential retail store to avoid the replacement
problem and stock out position and get fresh product. And proposed day
should be Monday,Friday,Saturday.
On Monday salesman-2 have been work in the Dakshindari market then he can
easily covered the other 6retail store (Beat-1) in effective manner,the retail
store are: Swapan stores,Khagen stores,grih laxmi,Matri varaities store,Trishul
stores in lake-town,Mimo stores in dumdumpark.
On Monday salesman-1 have been work in the subhasnagar part-1 market
then he can easily covered the other 6retail store (Beat-2) in effective
manner,the retail store are: Srikrishna bhandar,Monmohon stores in Italgacha,
Kolpotoru,Dutta varaities stores, Mouchak in Subhasnagar part-2 and LaxmiNarayan amul parlour in Durganagar.
On Friday salesman-2 have been work in the italgacha market then he can
easily covered the other 5retail stores (Beat-2) in effective manner,the retail
stores are: Annanya,Kaberi stores in Subhasnagar part-1,Srikrishna
bhandar,Monmohon stores in Italgacha, Kolpotoru, Dutta varaities
stores,Mouchak in Subhasnagar part-2
On Saturday salesman-2 have been work in the dumdumpark-narayantala
market then he can covered the other 7potential retail stores (Beat-1) in
effective manner,the potential retail stores are: Swapan stores,Khagen
stores,grih laxmi,Matri varaities store,Trishul stores in lake-town,Radharani
stores in Dakshindari and Sreehari stores in Sribhumi.
On Saturday salesman-1 have been work in the durganagar market then he can
covered the Durganagar, if any revisit require in beat-2 then he can easily
covered that in effective manner.
In this way of distribution is possible to make it available without breaking the
existing distribution beat and this plan would be cost effective also.
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Merits of Alternative-2
(i)Retailer get fresh product.
(ii)No extra transportation cost.
(iii)No extra salesman required.
(iv)Salesman work smoothly because on that proposed day existing market is
not too much large therefore both salesman covered the market easily.
Synopsis of Alternative Model No.1
Alternative-1 proposed day
nd market
name of the outlet
Day Market/Beat Salesman
uesday Beat-1
Bangur
Laketown-
Swapan stores
Khagen stores
Grih laxmi
Matri varaities stores
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kalindi
Sribhumi-
Dakshindari
Dumdumpark-
Narayantala
M.bakshi Trishul stores
Radharani stores
Srihari stores
Mimo stores
Annanya
Kaberi stores
Srikrishna bhandar
Monmohon stores
Kolpotoru
Dutta varaities stores
Mouchak
Laxmi Narayan Amul Parlour
Beat-2
Airport
Subhasnagar
part-1
Subhasnagar
part-2
Italgacha
Durganagar
S.dutta
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aturday
Beat-1
Dumdumpark-
Narayantala
Laketown-
kalindi
Sribhumi-
S.dutta
Mimo stores
Pratiksha food corner
Calpotoru
Maa kali stores
Chandi stores
Park tea
Swapan stores
Khagen stores
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Dakshindari Grih laxmi
Matri varaities stores
Trishul stores
Radharani stores
Srihari stores
Radhashyam stores
Laxmi Narayan Amul Parlour
Annanya
Kaberi stores
Srikrishna bhandar
Monmohon stores
Kolpotoru
Dutta varaities stores
Mouchak
Beat-2
Durganagar
Subhasnagar
part-1
Subhasnagar
part-2
Italgacha
M.bakshi
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Synopsis of Alternative Model No.2
Alternative-2 proposed day and
market
name of the outlet
Day Market/Beat Salesman
Monday Beat-1
Laketown-
kalindi
Sribhumi-
Dakshindari
Dumdumpark-
Narayantala
S.dutta
Radharani stores
Anupam stores
Street corner
Midiate plus
Srihari stores
Swapan stores
Khagen stores
Grih laxmi
Matri varaities stores
Trishul stores
Mimo stores
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Beat-2
Subhasnagar
part-1
Subhasnagar
part-2
Italgacha
Durganagar
M.bakshi
Annanya
Kaberi stores
D-Zone
Mira varaities
Kundu stores
Gopal bhandar
Deboniar
Hashi confectionary
Krishna stores
Srikrishna bhandar
Monmohon stores
Kolpotoru
Dutta varaities stores
Mouchak
Laxmi Narayan Amul Parlour
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Friday Beat-2
Italgacha
Subhasnagar
part-1
Subhasnagar
part-2
S.dutta
Srikrishna bhandar
Monmohon stores
Sankar stores
Usha stores
Taraknath bhandar
Annanya
Kaberi stores
Kolpotoru
Dutta varaities stores
Mouchak
Saturday
Beat-1
Dumdumpark-
Narayantala
Laketown-
kalindi
Sribhumi-
Dakshindari
S.dutta
Mimo stores
Pratiksha food corner
Calpotoru
Maa kali stores
Chandi stores
Park tea
Swapan stores
Khagen stores
Grih laxmi
Matri varaities stores
Trishul stores
Radharani stores
Srihari stores
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Radhashyam stores
Laxmi Narayan Amul Parlour
Beat-2
Durganagar
M.bakshi
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Limitation of the Study
1.The study is absolutely market specific and the alternatives
distribution models has been suggested ,are entirely based on the
specific characteristic and market conditions of particular
market.
2.The projected distribution models are effective and applicable
for Amul masti cup Dahi only.
3.Retailers are not ready to furnish the detailed information. Some
retailers were showing a great deal of reluctances in answering
most the question regarding the product due to the irregular visit
of distributor.
4.The study may not be applicable after a period of time.
Statement of The Problem
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In this fast changing economy, it has become necessary how to preparethe cost effective distribution channel. This study is done for making thedistribution channel of cup Dahi cost effective.
The realistic side of the problem is
Most of the retailers are not satisfied due to supply issue, for this reason
the retailers did not get product at proper time.
Amul Masti cup Dahi which has a self-life of 15 days but when its come
manufacturer to retailer then it already passed 3-4 days. Due to this
problem retailer are not willing to keep this product.
Suggestion
I suggest the 2nd alternative, because the 2nd alternative is more effective
than 1st alternative. As existing distribution beat is going on for that
salesman have to maintain a hectic schedule to fulfills the projected plan
because the existing distribution market is too much large and salesmancannot maintain the time to cover the full market. Both salesman have to
face same type of problem in alternative-1.But in the case of 2nd
alternative is not so hectic for the salesman because on that day existing
distribution market are not too much large then both salesman can easily
covered the total beat of Dahi market.
The retail shop needs advertisement to create awareness of the customer.
Curd is consumed by upper class and upper middle class thats for after
scanning the all markets I have selected some potential retail shop where
the upper class and upper-middle class customer are available.
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For increasing the sale company should give some gifts or any free
scheme to attract the retailer in the market
.Sales incentives/commissions should be provided to thesalespersons. This will motivate the salespersons to achieve higher
sales of the products like Amul Cup Dahi.
Special offers should be there for dealers, retailers and
consumers at the time of Diwali,Durgapuja and Holi
Distributor should not avoid those store who could not sell all
products of Amul, proper follow up should also be given to them
Samples should be given to the institutional outlets when this
is asked for.
Conclusion
The project was of great knowledgeable for me, I have learnt a lot in this
project. As we know that Amul is very big organisation and market leader in
dairy products. In the Amul there are many product categories like as milk,
butter, cheese, paneer, etc. But milk & Butter is the main product of Amul.
Amul has maximum market share in milk and butter but Curd industry is also a
profitable industry and company cannot ignore it. With the help of the study,
company can find weak in distribution channel in Amul cup Dahi. I suggest the
two alternatives that company can apply the best alternative among these two
and rectify the distribution channel .finally I have conclude by saying that I wasreally privileged to work in the Amul company and had got such a real time
exposure of FMCG Company.
BIBLIOGRAPHY
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Marketing Management (Author- Philip Kotlar)
www.amul.com
www.wikipedia.com
www.google.com
http://www.amul.com/http://www.amul.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.google.com/http://www.google.com/http://www.google.com/http://www.wikipedia.com/http://www.amul.com/8/2/2019 Final New Project
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APPENDIX
Name of the retail store Address
Swapan stores laketown
Jai maa kali stores laketown
Khagen stores laketown
Shri hanuman stores laketown
Lokenata banijya kendrya laketown
Shri ganesh stores laketown
Pooder provision stores laketown
Samrat laketown
Shah stores laketown
Addya maa stores laketown
Grih lakshmi laketown
Kathlen laketown
Raj stores laketown
Matri varaities stores laketown
Trishul stores laketown
Lake coorner laketown
C.G catarers laketown
Vatika enterprise kalindi
Anandam kalindi
Rakshit stationary kalindi
Annanya Subhasnagar part-1
Nirmal stores Subhasnagar part-1
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Kaberi stores Subhasnagar part-1
D-zone Subhasnagar part-1
Mira varaities Subhasnagar part-1
Kundu stores Subhasnagar part-1
Gopal bhandar Subhasnagar part-1
Alok nath stores Italgacha
Srikrishna bhandar Italgacha
Breakfast Italgacha
Monmohon stores Italgacha
Taraknath Italgacha
Radhagobindo stores Italgacha
Sankar stores Italgacha
Usha stores Italgacha
Taraknath bhandar Italgacha
Trisha stores Italgacha
Mimo stores Dumdum park
Pratiksha food coorner Dumdum park
Calpotoru Dumdum park
Maa kali stores Dumdum park
Chandi stores Dumdum park
Park tea Dumdum park
Lokenath stores Dumdum park
Gupta bhandar Dumdum park
Elocasi Bangur
Shanti bhandar Bangur
Revenue stores Bangur
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Bangur stores Bangur
Raj family shoap Bangur
Bachhu stores Bangur
Jaganath bhandar Bangur
Binayak stores Bangur
kailas stores Bangur
New bachhu stores Bangur
Krishan kannya Bangur
Mondol stores Bangur
Maa parboti stores Bangur
New ghar sansar Bangur
Girigopal stores Bangur
Puja confectionary Bangur
Radha stores Bangur
Mongolom Bangur
Shri durga stores Bangur
Mongola gouri Bangur
Vishal stores Bangur
Swaraswati stores Bangur
Ramkrishna sarada stores Bangur
Shankar stores Bangur
Girish stores Bangur
Kailash stores Bangur
Shree confectionary Airport
Basanti stores Airport
Gautam bhandar Airport
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New prova Airport
Titan lodge Airport
Kanchan stores Airport
Radharani stores Dakshindari
Anupam stores Dakshindari
Street corneer Dakshindari
Midiate plus Dakshindari
Srihari stores Sribhumi
Babai fastfood center Subhasnagar part-2
Maa padmma stores Subhasnagar part-2
Dutta varaities stores Subhasnagar part-2
Proojoni Subhasnagar part-2
Jamuna varaities stores Subhasnagar part-2
Kakali snacks Subhasnagar part-2
Mouchak Subhasnagar part-2
kolpotoru subhasnagar part-2
Deboniar Subhasnagar part-1
Hashi confectionary Subhasnagar part-1
Krishna stores subhasnagar part-1
Josodha bhandar Durganagar
Ice pariour Durganagar
Radhashyam stores Durganagar
Laxmi narayan amul parlour Durganagar
Sarada bhandar Gorabazar
Sunny Gorabazar
Sabita shopping center Gorabazar
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