abhishek amul
TRANSCRIPT
INTRODUCTION
Gujarat Cooperative Milk Marketing Federation (GCMMF), one of India's greatest
success stories with its Amul brand, is now aiming at a 17-per cent growth in sales to Rs
3,200 crores this fiscal against sales of Rs 2,746 crores in the previous year ended 31
March 2003.
The federation is expecting each of its products to contribute higher sales this year as new
products are being added to each product line.
The big hope is not surprisingly the Amul brand of ice creams, which is expected to
contribute Rs 250 crores to the turnover, up from Rs 150 crores last year. Last year there
was a good growth in ice cream, cheese, butter and ghee. The company is launching new
products in almost every line that are in, with specific stress on ice creams.
For its ice cream and milk business, GCMMF has begun investing in increasing its milk
capacity. It recently firmed up plans to invest Rs 100-120 crore to expand this from 1.1
million liters a day to 1.8 million litres a day at its Gandhinagar factory. The investment
will take place over the next two years.
1
COMPANY PROFILE
Formally known as GCMMF, AMUL means “ priceless ” in Sanskrit. The brand
name “AMUL” from the Sanskrit “Amoolya,” was suggested by a quality control expert
in Anant. Amul products have been in use in millions of homes since 1946. Amul butter,
Amul milk powder, Amul ghee, Amul spray, Amul cheese, Amul chocolates, Amul
shrikhand, Amul ice cream, Nutramul, Amul milk and Amulya have made Amul a
leading food brand in India. Today Amul is a symbol of many things… of high quality
products sold at reasonable prices… of the genesis of a vast cooperative network… of the
triumph of indigenous technology… of the marketing savvy of a farmers organization…
and of a proven model for dairy development.
50 years after it was first launched, Amul sales figures have jumped from 1000
tones a year in 1966 to over 25000 tones a year in 1997 and sales figure of rupees 11140
millions in 1994-95 to rupees 23365 millions in 2001-02 . No other brand comes even
close to it. It was all because a thumb sized girl climbed on to the hoardings and put a
spell on the masses.
For thirty odd years the utterly butterly girl has managed to keep her fan following
intact. So mush so that the ads are now ready to enter the Guinness book of world records
for being the longest running campaign ever. The ultimate compliment to the butter came
when a British company launch a butter and called it utterly butterly, few years back.
2
50 years after it was first launched, Amul sales figures have jumped from 1000
tones a year in 1966 to over 25000 tones a year in 1997. No other brand came even close
to it. All because thumb sized girl climbed on the hoardings and put a spell on the masses.
Mumbai : summer of 1967. A charni road flat. Mrs. Sheela mane, a 28 year old
house wife is out in the balcony drying clothes. From her second floor flat she can see her
neighbours on the road. There are other people too. The crowd seems to be growing
larger by the minute. Unable to curb her curiosity Sheela mane hurries down to see what
all the commotion is about. She expects the worst but can see no signs of an accident. It is
her four year old who draws her attention to the hoarding that has come up over night. “ it
was the first Amul hoarding that was put up in Mumbai,” Recalls Sheela mane. “ people
loved it. I remember it was our favourite topic of discussion for the next one week!
Everywhere we went some how or the other the campaign always seem to crop up in our
conversation.”
Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you,
strategically placed hoardings at many traffic lights. She is the Amul moppet everyone
loves to love ( including prickly votaries of the Shiv sena and BJP ). How often have we
stopped, looked chuckled at the Amul hoardings that casts her sometime as the coy, shy
Madhuri, a bold sensuous Urmilla or simply as her self, dressed in her little polka dotted
dress and a red and white bow, holding out her favourite packet of butter.
For 30 odd years the utterly Butterly girl has managed to keep her fan following
intact. So much so that the ads are now ready to enter the Guinness book of world records
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for being the longest running campaign ever. The ultimate compliment to the butter came
when a British company launched a butter and called it utterly butterly.
It all began in 1966 when Sylvester dacunha, then the managing director of the
advertising agency, ASP, clinched the account for Amul butter. The butter which had
been launched in 1945, had a staid, boring image, primarily because the earlier
advertising agency which was in charge of the account preferred to stick to routine,
corporate ads.
In India, food was something one couldn’t afford to fool around with. It had been
taken too seriously, for too long. Sylvester dacunha decided it was time for change of
image.
The year Sylvester dacunha took over the account, the country saw the birth of a
campaign whose charms has endured fickle public opinion, gimmickry and all else.
The Amul girl who lends herself so completely to Amul butter, created as a rival
to the polson butter girl .This one was sexy, village belle, clothed in a tantalizing choli all
but covering her upper region. “ Eustace Fernandez ( the art director) and I decided that
we needed a girl who would warm her way in to a house wife’s heart. And who better
than a little girl ?” says Sylvester dacunha. And so it came about that the famous Amul
moppet was born.
That October, lamp kiosks and the bus sites of the city were splashed with the
moppet on a horse. The base line Simply Said. Through bread, utterly butterly delicious
Amul it was matter of few hours before the duacunha office was ringing with calls. Not
just adults, even children were calling up to say how much they had liked the ad. “ The
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response was phenomenal,” recalls Sylvester dacunha. “ we knew our campaign was
going to be successful.”
For the first one year the ads made statements of some kind or the other but they
had not yet acquired the topical tone. In 1967, Sylvester decided that giving the ad a solid
concept would give them extra mileage, more dum, so to say. It was a decision that would
stand the dacunha in good stead in the years to come.
In 1969, when the city first saw the begning of the hare Rama Hare Krishna
movement , Sylvester dacunha , mohammad khan and Usha Bandarkar, than the creative
team working on the Amul account came up with a clincher—‘ Hurry Amul, Hurry
Hurry’. Mumbai reacted to the ad with a fervour that was almost as devout as the iskon
fever.
From the sixties to the nineties, the Amul ads have come a long way. While most
people agree that the Amul ads were at their peak in the eighties they still maintain that
the Amul ads continue to tease a laughter out of them.
Where does Amul’s magic actually lie ? Many believe that the charm lies in the
catchy lines. That we laugh because the humour is what anybody would enjoy. They do
not pander to your nationality or certain sentiments. It is pure and simple, Every day fun.
5
Members: 12-district cooperative milk producers’ Union
No. Of Producer Members 2.23 million
No. Of Village Societies: 10,852
Total Milk handling capacity: 6.7 million litres per day
Milk collection (Total - 2001-02): 1.67 billion litres
Milk collection (Daily Average 2001- 02): 4.59 million litres
Milk Drying Capacity: 510 metric Tons per day
Cattlefeed manufacturing Capacity: 1450 Mts per day
AMUL means "priceless" in Sanskrit. A quality control expert in Anand suggested the
brand name “Amul,” from the Sanskrit “Amoolya,” Variants, all meaning "priceless", are
found in several Indian languages. Amul products have been in use in millions of homes
since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese,
Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya
have made Amul a leading food brand in India. (Turnover: Rs. 25 billion in 2002). Today
Amul is a symbol of many things. Of high-quality products sold at reasonable prices. Of
the genesis of a vast co-operative network. Of the triumph of indigenous technology. Of
the marketing savvy of a farmers' organization. And of a proven model for dairy
development.
6
50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a
year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it.
All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses.
Dairy giant Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) recorded 22
per cent growth in turnover during the first half of the current financial year with milk
products sales amounting to Rs 1,000 crore.
GCMMF sold 10.5 crore litres of milk in pouches during April to September 1998 under
its well-known brand `Amul'.
"GCMMF's financial performance during this period has been even more attractive with a
growth of 25 per cent. However, this won't be reflected in our balance sheet. The
multinationals would have shown it as glittering profit, but we are working on our
mandate of returning any surplus back to grass-root village co-operative milk society
members by periodic price differentials for their production.
With 12 processing units (unions), each located at the district-level, GCMMF today has a
membership of 20 lakh farmers, who belong to 10,000 village dairy co-operative
societies.
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GCMMF, the largest producer of dairy products in Asia, has over 26 products ranging
from `Amul Butter', `Amul Spray', `Amul Lite', `Amul Cheese' to `Amul Mithaimate',
`Amul Mithaee Gulabjamun' and ‘Amul Frozen Pizza’.
The co-operative is launching wide range of cheese including the exotic Emmental from
the Swiss Alps, soft Mozzarella from Italy and slices of processed Cheddar cheese.
GCMMF has also come out with `Amul cheese powder' used in soups, salads, dressings
and hoard of other fast foods.
The federation has been able to capture 50 per cent of the ice-cream market in the state in
a short span of one year.
`Amul Ice creams' are also now available in 12 states and two union territories and enjoy
35 per cent to 40 per cent market share.
The `Amul Ice-cream' strategy bordered on its punch line, `real milk, real ice-cream'
`Amul Ice creams' were smoother and creamier than its competitors as fat used was pure
milk, which was more expensive and not vegetable fat.
8
GCMMF, which has 45 sales offices, plans to make these products "available all over the
country".
The federation has a distribution network comprising more than 2,700 wholesale dealers
and over five lakh retail outlets.
9
GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing
organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide
remunerative returns to the farmers and also serve the interest of consumers by providing quality products
which are good value for money.
Members: 12 district cooperative milk producers' Union
No. of Producer Members: 2.41 million
No. of Village Societies: 11,615
Total Milk handling capacity: 7.4 million litres per day
Milk collection (Total - 2004-05): 2.08 billion litres
Milk collection (Daily Average 2004-05):
5.71 million litres
Milk Drying Capacity: 511 metric Tons per day
Cattlefeed manufacturing Capacity:
2340 Mts per day
Sales Turnover Rs (million) US $ (in million)1994-95 11140 3551995-96 13790 4001996-97 15540 4501997-98 18840 4551998-99 22192 4931999-00 22185 4932000-01 22588 5002001-02 23365 5002002-03 27457 5752003-04 28941 6162004-05 29225 672
For further details, please contact:
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Gujarat Cooperative Milk Marketing Federation Ltd.
Amul Dairy Road
P B No.10, Anand 388 001,
India
Phone: +91-2692-258506, 258507, 258508, 258509
Fax: +91-2692-240208
Email: [email protected]
11
COMPNAY HISTORY
Way back in December, 1946 the seeds of what was later to become the Amul
juggernaut were sown. Following strategic advice from Sardar Vallabhbhai Palel and
nifty footwork by Shri Morarji Desai, a handful of farmers formed a milk co-operative in
Kaira district. About 250 liters of milk collected daily from the farmers of two village co-
operative societies was pasteurized and send to the Bombay milk scheme. The first lesson
in milk marketing was learnt when an assured outlet for milk in Bombay stimulated
increased milk in the villages of Kaira district. More and more farmers joined hands in
more villages to supply milk. The Amul milk co-operatives started growing rapidly.
The second lesson in marketing came some seven years later. Even by 1953, all
the milk collected by Kaira’s village co-operative societies in peak winter months was not
accepted by the Bombay milk scheme. It had to be sold as surplus milk at low prices to
middlemen. A need was felt for building a dairy plant with powder and butter
manufacturing capacity that would process and utilized all the milk supplied by the
farmers. This was accomplished by 1955.
To legendary figures of the Indian dairy industry - Tribhuvandas K. Patel and
Verghese Kurien made all these possible. Together they consolidated, scaled up and
developed the milk co-operatives. Many milestones were created one after another. New
products were added, the brand name AMUL was created and milk co-operatives on the
lines of Anand were from in other districts of Gujarat in quick succession. The Gujarat
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Co-operative Milk Marketing Federation (GCMMF) was born in 1973 to market the
products being packed at several dairy plants in the states under the brand name ‘AMUL’.
The dairy business reached new heights year after year. The magic of milk co-
operative was working not only in Gujarat but also elsewhere across the country under
Operation Flood of NDDB where the Anand pattern of dairying was being replicated in
its entirely breeding, feeding, milk collection, cattle management, disease control,
nutrition, milk processing and product manufacture and marketing. The dairy industry of
India was coming into its own. There was no looking back.
It has often been said that the Chinese invented ice cream and that marco polo brought the
idea to Europe in the thirteenth century. This is more myth than historical fact backed by
evidence but it can be sated with some confidence that ice cream was invented in China in
the first milenium. The process of freezing liquids by immersing them in a mixture of ice
and salt, which react together to lower the temperature of the mixture below freezing
point, was also invented in the distant past – it was first documented in the thirteenth
century. This is how ice cream had to be made until the invention of the freezer in the
twentieth century. A vessel containing ice and salt surrounds a container containing the
ice cream mixture. The temperature in the ice and salt mix drops, freezing the container's
contents. To ensure it freezes evenly, it is generally stirred or rotated.
Since the method of producing ice cream depended on a supply of ice, it was of limited
use without that precious commodity. Ice could be gathered from ponds and lakes, in
winter, and the storage of ice in ice wells and ice houses goes back several centuries. By
packing ice into an insulated underground chamber with adequate drainage ice could be
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stored for months, sometimes years. Ice remained a luxury and dependant on nature to
produce it, and cumbersome methods to harvest it.
Ice cream made with a milk mixture was first recorded in Europe in Italy.. In England, the
first recorded serving of this rare luxury was in 1672, to King Charles II, whose table at a
banquet was served a delight denied to those sitting at more humble tables.
The first English cookery book to give a recipe was Mrs Mary Eales Receipts of 1718.
The recipe did not include a process for making the ice smooth and it must have been
coarse with ice crystals. Ice being rare, ice cream was a luxury for the well off in all
countries and had to be made and served immediately, there being no way to store it for
any great time.
The second half of the nineteenth century was the period in which ice cream became a
treat for ordinary people. Italy continued to lead Europe in ice creamery and immigrants
to the UK from thee brought with them a tradition and expertise which led to the popular
name "Hokey Pokey" which is thought to derive from a corruption of the Italian for "try a
little". In other countries too, especially the United States, ice cream gained popularity.
The commercial harvesting of ice in cold climates and its transport to population centers
was a growth area from the earl nineteenth century. This ice trade made large volumes of
ice available at a realistic price and it became possible for ice cream sellers to offer a taste
of ice cream to the ordinary person. Ice was sold on glasses which were wiped clean and
re-used. These glass "licks" remained in use in London until they were made illegal in
1926 for reasons of public health. Ice cream edible cones were first documented by Mrs
Agnes Marshall in her book Fancy Ices of 1894.
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The modern face of Amul
The nineties brought in some winds of change. Liberalization of the countries
economy was being talked about. In the milk business the scene had changed from one of
shortages of self sufficiency. While everything seemed to be going well, there was a
growing realization of the need to manage effectively the ever expanding milk business in
tune with changing times. Would the dairy managers be able to handle the business
through the existing systems and processes? Two factors needed attention (1) How to
cater to ever changing aspirations of the customers and, (2) How to improve the quality of
products and services that GCMMF offered. The organization had to brace themselves to
effect the change fast and with as little pain as possible. Information technology had to be
incorporated in our systems and the organizations made learning organization through
perpetual training and retraining.
In 1994, to facilitate the above information GCMMF decided to introduce the
concept of Total Quality Management (TQM) with its twin pillars of customers focus and
continuous improvement. This package entailed employee involvement, waste reduction,
problem solving techniques and improvement of the processes, together with continuous
training. Shri B.M. Vyas who had then just taken over as the managing director of
GCMMF took up this gamble and decided to lead the organization from the front. He was
ably assisted by Shri James Joseph (now in U.S.). Six years down the line and
organization has been transformed.
15
DISTRIBUTION NETWORK
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Amul
Baroda Dairy
C&F
Agencies
Sub Distributor Retailers
Retailers
Amul manufactures its ice cream in Baroda dairy plant. Its supplies raw material like milk
from different places of Gujarat to Baroda dairy. When ice cream is fully prepared and
packed than it’s transferred to different states via air-conditioned trucks. The C&F agents
store it in big deep freezer rooms. From C&F the ice cream is delivered to different
distributors. And from distributes the ice cream is delivered to different retailers and sub
retailers. And finally the consumers purchased from the retailers.
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GUJARAT COOPERATIVE MILK MARKETING
FEDERATION
GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food
products marketing organisation. It is a state level apex body of milk cooperatives in
Gujarat which aims to provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good value for money.
Members: 12 district cooperative milk producers' Union
No. of Producer Members: 2.41 million
No. of Village Societies: 11,615
Total Milk handling capacity: 7.4 million litres per day
Milk collection (Total - 2004-05): 2.08 billion litres
Milk collection (Daily Average 2004-05): 5.71 million litres
Milk Drying Capacity: 511 metric Tons per day
Cattlefeed manufacturing Capacity: 2340 Mts per day
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Amul’s Values
Customer orientation
Commitment to producers
Integrity
Cooperation
Excellence
Leadership
Quality
Innovation
Growth orientation – new products
Belongingness
Pride in organization
Employee satisfaction
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Amul’s Mission
We at GCMMF endeavor to satisfy the taste and nutritional requirements of the
customers of the world, through excellence in marketing by our committed team.
Through cooperative networking, we are committed to offering quality products
that provide best value for money.
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Journey 2005
GCMMF will be an outstanding marketing organization, with specialization in
marketing of food and dairy products, both fresh and long life, with customer focus and
information technology integration.
The network would consist of over 100offices, 7500 (4000 urban, 3500 rural)
stockists covering at least every taluka headquarter town, serving nearly 10 lakh outlets
with a turnover of Rs. 10,000 crores, and serving several cooperatives.
GCMMF shall also create a market for its products in neighboring countries.
21
AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit
"Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning
"priceless", are found in several Indian languages. Amul products have been in use in
millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul
Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 29
billion in 2004). Today Amul is a symbol of many things. Of high-quality products sold
at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of
indigenous technology. Of the marketing savvy of a farmers' organisation. And of a
proven model for dairy development.
Check out this vast and ever-growing range of 'tasteful' Amul delectables!
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LIST OF PRODUCTS MARKETED
Breadspreads:
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
Cheese Range:
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese)
Utterly Delicious Pizza
Mithaee Range (Ethnic sweets):
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Amul Amrakhand
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Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
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-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
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Infant Milk Range:
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food
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 Taaza Toned Milk 3% fat
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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:
Yogi Sweetened Flavoured Dahi (Dessert)
Amul Masti Dahi (fresh curd)
Amul Masti Spiced Butter Milk
Amul Lassee
Amul Icecreams:
Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted
Almond)
Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry,
Black Currant, Santra Mantra, Fresh Pineapple)
Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch,
Megabite, Cassatta)
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Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)
Chocolate & Confectionery:
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Brown Beverage:
Nutramul Malted Milk Food
Milk Drink:
Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,
Chocolate)
Amul Kool Cafe
Health Beverage:
Amul Shakti White Milk Food
United
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Katayani
Himachal
Eden tower
Shri Krishna
Anant
Brindawan garden
Total order received :
From house hold : 175 ltrs
From retailers : 150 ltrs
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Bread Spreads
Amul ButterUtterly Butterly Delicious
Delicious Table MargarineThe Delicious way to eat healthy
Amul LiteLow fat, low Cholesterol Bread Spread
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Powder Milk
Amul Spray Infant Milk FoodStill, Mother's Milk is Best for your baby
Amul Instant Full Cream Milk PowderA dairy in your home
Sagar Skimmed Milk PowderWhich is especially useful for diet preparations or for use by people on low calorie and high protein diet.
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Sagar Tea Coffee Whitener
Amulya Dairy WhitenerThe Richest, Purest Dairy Whitener
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Fresh Milk
Amul Fresh MilkThis is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience.
Amul Gold Milk
Amul Taaza Double Toned Milk
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Amul Lite Slim and Trim Milk
Amul Fresh Cream
Amul Kool Chocolate Milk
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Amul Kool Flavoured Bottled Milk
Amul Kool Flavoured Tetra Pack
Amul Shakti Toned Milk
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Amul Masti Spiced ButtermilkAmul introduces the Best Thirst Quenching Drink
35
Cheese
Amul Pasteurised Processed Cheese100% Vegetarian Cheese made from microbial rennet
Amul Cheese SpreadsTasty Cheese Spreads in 3 great flavours..
Amul Emmental CheeseThe Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma
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Amul Pizza Mozzarella CheesePizza cheese...makes great tasting pizzas!
Gouda Cheese
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For Cooking
Amul / Sagar Pure GheeMade from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by diaries with decades of experience.
Cooking Butter
Amul PaneerReady to cook paneer to make your favourite recipes!
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Utterly Delicious Pizza
Mithai MateSweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste.
Masti Dahi
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Masti Soups
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Desserts
Amul Ice CreamsPremium Ice Cream made in various varieties and flavours with dry fruits and nuts.
Amul ShrikhandA delicious treat, anytime.
Amul Mithaee Gulab JamunsPure Khoya Gulab Jamums...best served piping hot.
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Gulab Jamun Mix
Amul ChocolatesThe perfect gift for someone you love.
Amul Lassee
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Health Drink
NutramulMalted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India.
Amul Shakti Health Food Drink
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Amul’s Strategic Thrust Areas
Build capability of marketing fresh products
Expand marketing of existing products
Identify and market new products
Rationalizing taxes
Integration through IT
Attract and retain quality manpower
Integration of cooperatives with common branding
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FOUR P’S OF THE PRODUCT
PRODUCT: Amul ice cream has wide range of variety that consists of more than
hundred flavors available in the market including 20 new flavors, which is introduced in
this summer. 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.
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 more than 3000 outlets. These eleven distributors are responsible for their
respective areas.
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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 retailer and also makes wall paintings on their request. Amul
uses their punch line ---“Real milk real ice cream” for the promotion.
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SWOT ANALYSIS
STRENGTHS:
Amul is a reputed and well known company in India, its products are easily
recognized by the customers.
Amul has evolved from a single product company to Multi-product Corporation.
Its products range is spread over a wide spectrum, from milk and curd to ice
cream and chocolate.
Customers will at least think of using the product once and check its quality, as it
is the product of Amul.
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WEAKNESSES:
It is good in quality but not better than Mother Dairy.
Advertisement is not frequent.
Mother Dairy has the advantage of being the market leader of packaged milk in
the market.
Price is competitive as compared to other brands in the market except mother
dairy but margin to the distributor is less than that of other brands.
Amul milk has been launched just one and half year back in Delhi, so awareness
among the people is low about the Amul milk.
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OPPORTUNITIES:
There is a huge opportunity in milk market.
Mother Dairy is available since last so many years in the market, and it has
dominated this industry, so people need change.
If Amul provide a better taste and quality then it can swap most of the customers
of Mother Dairy with least effort.
Customers always believe that there is a chance of improvement.
Milk is basic necessity for daily use; everyone needs it daily for one or other
reason.
Average consumption of milk is 1-2 liter in each house.
In Delhi about 72% of total milk market is packaged milk market and rest is of
loose milk. So there remains a big area to be covered.
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THREATS:
There is a very tough competition with other brands.
Mother Dairy is dominating milk in the market, quality wise and price wise.
Market is too price sensitive.
People are using Mother Dairy and other brands since so many years, so it is
difficult for them to suddenly change the brand and taste that has already been
developed. So it is really difficult to convince them.
50
MARKETING RESEARCH
The American marketing association defines marketing research as follows:
“Marketing Research is the functional links to the customers, consumers & public to
marketing through information. Information used to identify and define marketing
opportunities and problems; generate, define and evaluate marketing actions; monitor
marketing performance and improve understanding of marketing process.”
Marketing Research specifies the information requires addressing these issues,
designing the method for collecting information, managing and implementing the data
collecting process, analyzing the result and communicating the findings and their
implementations.
51
OBJECTIVE OF RESEARCH
“Establish a new direct channel between the distributor and consumers by
eliminating the retailers from the distributor channel with the aim to promote Amul milk
and to give better facilities and services to the consumers of Dwarka sub city.”
52
EXECUTIVE SUMMARY
Summer has started unusually early this year. And, as the mercury rises nobody is happier
than the Amul manufacturers who are already filling their iceboxes with dollops of new,
mouthwatering flavors.
Out there in front is the hungry-for-growth Rs 3,500-crore (Rs 35 billion) Anand-based
Gujarat Co-operative Milk Marketing Federation that markets the Amul brand of ice
creams. Within two year Amul’s sale progressed three times. Amul target strategic thrust
areas with logical extension. The plus point for this co-operative society is its Amul brand
equity, large procurement base of raw material, having processing technical know-how,
180 milk co-op network and plans to convert ice-cream into a mass product.
Amul started to expand his market share in Delhi under its `Hamara Apna Deep Freezer
(HADF)' scheme. Under this, retailers are encouraged to buy their own deep freezers for
vending ice creams, with Amul negotiating a discounted price on their behalf with
refrigeration companies like Blue Star, Voltas and Carrier and western.
53
This is as against the practice of the ice cream company itself providing the freezer at the
retailer's end, subject to the latter depositing a refundable security amount. "In the HADF
scheme, the retailer not only saves on the security deposit, but also enjoys the flexibility
arising from owning the asset and availing a direct five-year guarantee from the
manufacturer. These, together with our negotiating a discounted price on their behalf,
entails cost savings of Rs 5,000-8,000 per freezer depending on capacity and make. In
this scheme the retailer also get one stabilizer free.
HADF: Modelities
Step 1: Amul WD/FFR/PSM will collect DD/cash/cheque in favour of Deep Freezer
Company or their franchise along with order.
Step 2: retailer will sign an agreement for buying DF at subsidized rate and storing
GCMMF products only.
Step 3: DIC/OIC to verify all orders and agreements and forward the same to local office
of the DF Company.
Step 4: delivery to WD/Retailers directly as per modalities.
For booking of deep freezer the salesman or the PSM have to gone through with two
important stages:
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1) Call up ii) Follow on
Call up:
In call up the salesman have to go to the potential retailers like medicos, departmental
stores, confectioneries, std booths and the shops which are mainly opened till 11 p.m. The
salesman gives the detailed information to the retailers about the HADF scheme of Amul.
If the retailers find, that the scheme is beneficial for him then he gives the next date to the
salesman for further procedure.
Follow on:
In follow on the salesman have to go to those retailers who give some positive sign for
HADF scheme. The salesmen may have to go more then two or three times on the same
retail store for follow on. In follow on the salesmen try to convince the retailer more and
more for purchasing the deep freezer.
In call option we targeted those stores, which are open till 10:30 to 11:00 o’clock night
and are in residential areas. The most of the sale comes after dinner. The demands for
Amul bricks are more than novelties items because bricks are cheaper and contain more
volume than any other competitors.
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As a summer trainee I have to report at10:00 am in the morning to spectra agencies,
Karolbagh, which is one of the franchises of Amul. A spectra agency is the only one
franchises of Amul in central Delhi. It covers a very big area of Karolbagh, Patel Nagar,
Old and New Rajender Nagar, Purani Delhi, Paharganj, Cannaught Place e.t.c. The
agency is the sole supplier of Amul in this area. I have to visit all this areas for opening of
new outlets and more than one area in one day for calling. I have to maintain also the
DMR for daily basis. In DMR, we write the name, address and the reaction of the retailers
whom we visited in a day. Normally I visited more than eighteen to nineteen stores in a
day. Apart from calling, I also asked the retailers perception and customer reaction about
the Amul. I give information to the agency about the problem of existing retailers.
In call up, if we find that the retailer has already deep freezer and stocks some other
company ice cream than we perused them for keeping Amul too. Sometime the retailer
says yes and sometime no. But most of the time the retailers want to keep Amul.
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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It
may be understood as a science of studies how research is done scientifically. Research
methodology has many dimensions.
The purpose of methodology is to describe the process involved in the research
work. This includes the overall research design, the data collection process, the sampling
process, the field survey, and analysis procedure.
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RESEARCH DESIGN
Research Design consists of three parts:
1. Exploratory Research
2. Descriptive Research
3. Causal Research
An exploratory research focuses on the discovery of idea and is generally based
on secondary data. It is preliminary investigation that does not have a rigid design. This is
because a researcher engaged in an exploratory study that may have to change his focus
as a result of new ideas and relationship among the variables.
A descriptive study is undertaken when the researcher wants to know the
characteristics of certain group such as age, sex, educational level, income, and
occupation etc.
A casual research is undertaken when the researcher is interested in knowing the
cause and effect relationship between two or more variables. Such studies are based on
reasoning along well-tested lines.
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DATA SOURCE
Data is generally of two types:
1. Primary data
2. Secondary data
Primary Data are those data specially collected for problem in hand. In this study
data were collected from primary sources in personal interview of retailers and interaction
with consumers by survey method.
These methods of data collection are quite popular. These are the major methods
of data collection in the research study.
Secondary Data are those data, which are collected for some purpose other than
helping and solving the problem in hand.
Sources of secondary data are:
Old reports
Company records
Magazines
Company web site (http://www.amul.com)
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SAMPLING PROCEDURE:
How should the respondents be chosen? To get the most feasible and accurate
result, simple random probability sampling method was adopted for direct interview of
retailers and cluster sampling was used to communicate the consumers from different
apartments of different sectors for the survey.
In simple random probability sampling, probability of being chosen as a sample
unit for each unit in the population is equal. Each sample unit from the population is
chosen randomly. Probability of being chosen as a sample unit depends upon the
population size and no. of sample units to be chosen.
While in cluster (area) sampling the population is divided into mutually exclusive
groups (such as city blocks, sectors etc.), and the researcher draws a sample of the groups
using random sampling. Sometimes researcher again draws sample units of respondents
from the selected groups, It is known as two step area sampling.
SAMPLE SIZE:
Distributors 1
Retailers 25
Consumers 1244
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FIELD WORK:
The field work for research was conducted between May 27, 2005 to July 02,
2005 spread all over the Dwarka sub city. This exercise involved face to face interview
with distributor and retailers. During the survey sample packs of Amul milk pauch and
curd have been distributed among the selected consumers, and their feedbacks have been
taken regarding those samples.
Apartments covered:
Harmony
Shahzahanabaad
Naveen
National
Green heavens
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RESEARCH APPROACH
Primary data can be collected in various ways: through observation, focused group,
surveys, behavioral data, and experiments. During this research data have been collected
using survey method. Survey method is best suited for descriptive research. Companies
undertake surveys to learn about people’s knowledge, beliefs, preferences, and
satisfaction, and to measure these magnitudes in the general population.
RESEARCH INSTRUMENT:
Questionnaire is most common research instrument in collecting primary data during
marketing research. A questionnaire consists of a set of questions presented to
respondents. Because of its flexibility, the questionnaire is by far the most common
instrument used to collect primary data.
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Analyzing & Interpretation
Total Milk Consumption (per day)
Total milk consumption 20200 Ltrs.
Mother dairy 10000 Ltrs.
Amul 2400 Ltrs.
Other packaged milk 1800 Ltrs.
Loose milk 6000 Ltrs.
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Mother Dairy has dominated milk industry in Delhi. Around 65% of total milk market in
Dwarka has been captured by Mother dairy. Other brands include Paras, Gopalji etc.
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Total Packaged Milk
Total consumption 13200 Ltrs.
Amul & Mother Dairy 12400 Ltrs.
Others 600 Ltrs.
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Only 8% of total Packaged milk market is of local brands.
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Packaged Milk Market in Terms of Volume
Total milk consumption 13200 Ltrs.
Mother dairy 10000 Ltrs.
Amul 2400 Ltrs.
Others 1800 Ltrs.
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Packaged Milk Market in Terms of Money
Total milk consumption Rs. 357420
Amul Rs. 39168
Mother dairy Rs. 289800
Others Rs. 284
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Amul had around 11% market share in Dwarka.
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Demand of Different Variants of Packaged
Milk
Total milk consumption 22200 Ltrs.
Full Cream 6660 Ltrs.
Tonned 14430 Ltrs.
Double Tonned 1110 Ltrs.
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Toned is the variant which is highly used.
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Demand of Different Variants of Amul Milk
Total milk consumption 2400 Ltrs.
Full Cream (Amul Gold) 840 Ltrs.
Standardized (Amul Shakti) 24 Ltrs.
Tonned (Amul Taaza) 1416 Ltrs.
Double Tonned (Amul Slim Trim) 120 Ltrs.
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Due to lack of advertisement Amul Shakti was used in least quantity.
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Availability of Milk on Retail Shops
Only Mother Dairy 16%
Only Amul 4%
Both & Others 80%
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Mother Dairy is highly dominated.
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Does Packing Play any Role in Promoting
Sales
Yes 24%
No 76%
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Quality and Taste are basic factors, which affect sales.
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Selling Price of Milk
At M.R.P. 84%
More than M.R.P. 12%
Less than M.R.P. 4%
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Improvement Possible with the Distributor
(Preference)
1. Credit Period
2. Replacement
3. Collection of Payment
4. Others
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Customer Purchase Milk Because of
Price 30%
Quality 50%
Packing 2%
Srevices 10%
Scheme 5%
Others 3%
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KEY PLAYERS
Key players in this industry are Mother Dairy, Amul, Paras, Gopalji. But Mother
Dairy dominates this industry. The reason for its success is that it is the first introducer of
packaged milk and ts quality and advertisement also play major role in its success.
As a pioneer in the packaged milk industry, Mother Dairy secured first-mover
advantage in the market. It has sustained this advantage through outstanding product
quality and a well-oiled distribution network. This has helped Mother Dairy to ensure that
its brand has the highest top-of-mind awareness among consumers. During the 1990s,
when the growth potential in the packaged milk market attracted new players, including a
couple of large industries, some observers thought Mother Dairy would take a hit. It
hasn’t the brand has actually grown in value and volume.
However, growing awareness of health and hygiene issues and increasing
prosperity have boosted the demand for branded pasteurized milk. In this scenario,
Mother Dairy is the best-placed brand. And it retains more than 80% share of the branded
milk in Delhi market despite the entry of new players.
Mother Dairy always rides an emotional wave with its advertisement campaigns.
It also attempts to elevate the brand to the status of a health icon- “Piyo Pure”
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Also the reason for its success is its quality. Still consumers feel that Mother
Dairy is better than any other milk in the market. It has captured the maximum share of
this industry.
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AVAILABILITY & VISIBILITY OF KEY
PLAYERS
Most of the milks are available at every shop. Mother Dairy is present nearly on
every shop as it is the necessity of the retailers to keep it so as to retain the customers.
Other branded milks are also present in every shop but they are uneven in availability.
In this tough competition in the milk industry availability is one of the factors for
success. When Britannia was launched, its advertising campaign was very attractive
therefore it created a huge demand in the market, but proper supply or adequate supply
was not there in the market, and quality and taste was as good as Mother dairy, and hence
its sales got down.
The customer are not as much brand loyal in this industry, they comes to the
retailer shop and ask for Mother Dairy milk but if it is not available then it is not that they
come out of the shop and search for Mother Dairy, in spite of this they take any other
milk which is advised by the retailer or supplied by the supplier (suppliers are those who
gives the home delivery of milk) because milk is not luxury but it is the necessity. So
keeping this point in view, Amul must be made available at every shop.
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Although Amul milk is available on most of the shops but there are some shops,
which are left uncovered by the sales agents, so the company needs to focus on covering
those uncovered shops in Delhi city.
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DISTRIBUTION PROCESS
PRODUCT FLOW
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Factory
Distributor
Retailers
Consumers
DISTRIBUTION PROCESS
There is a distributor for every milk in the sub city, his job is to ensure the
distribution of milk to each and every area and outlet in the sub city.
This distributor works as a representative of the company for the retailers. Further
this distributor ensures the supply of milk to the customers with the help of retailers.
Sometime distributor delivers the product directly to the customer.
So there are two main players in the distribution process:
1. Distributor
2. Retailers
The company delivers the product to the distributor with the help of C&F agent,
and the distributor further distributes the product to the customers with the help of
retailers. For this distribution distributor forms a team of sales agents. These sales agents
go to every market in the sub city and check for the demand and supply of milk for the
retailers. These sales agents work as a link between the retailers and the distributor.
Supervisors are appointed to check the working of these sales agents. The supervisor is
responsible for the working of his sales agents.
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TRADE SCHEMES
The company gives schemes to the distributor when the quantity is large. The
sole purpose of scheme is to encourage the purchase. These schemes may be in the form
of discount or in the form of gifts.
Other types of schemes are launched for the retailers to encourage the purchase of
milk. These schemes may be issued by the company or by the distributor also.
Retailers normally prefer the reduction in the net rate of the milk as a scheme.
They like scheme on which milk is free on the purchase of milk rather than anything else
is free on the purchase of milk. This creates problem for the retailers, e.g. suppose on the
purchase of one crate of milk company was giving two pouch of curd free. Now this will
create inventory problem for the retailers. First he has to store curds in the store. Secondly
sometime retailer demands the free gift by purchasing only half crate of milk and says
that he will purchase the rest half crate next day and then the scheme will be satisfied.
The biggest problem in such type of schemes is that customer demands for the
reduction in the net rate rather than anything else. So the retailer always prefer the
reduction in the net price rather than the scheme or they prefer the scheme in which milk
is free on milk. So that the net effect of the scheme is the reduction in price.
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RECOMMENDATIONS & SUGGESTIONS
This industry is most competitive industry. There are large numbers of competitors in
this field. In such condition a small loop may create a big problem. The condition is made
more though by Mother Dairy, which is dominating in this industry, so only a detained
study and full fledged effort can help in good sales to capture the market. Four things are
necessary to improve the sales in the sub city:
1. Service.
2. Advertisement.
3. Quality of milk.
4. Margin provided to the retailer and distributor.
I have found while talking to customers that they want a better service. If one is
providing better service than other, people go for it, they are agree to spend some money
also for a better service. So customers are giving more importance to service than to
money.
Advertisement is the most important step to improve sales. People are not loyal to
any brand; they purchase milk, which had an image in their minds. Before leaving their
home they already know for which milk they will ask the shopkeeper. And this image
comes from advertisement. In city distributing small pamphlets along with newspaper or
fixing posters or hoardings can do advertisement.
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Of course quality of milk is another issue, which can improve sales. In long run if
we want to succeed then we have to create a value for our milk in the mind of the
customers and that can be done by quality. The first priority must be to ensure that the
milk lack in taste by Mother Dairy as it is the main competitor.
These two above mentioned factors are tough to implement. The easiest step to
improve the sales in the market is the margin provided to the retailers. The reason for this
is simple Mother Dairy is best milk in the market and retailers do not want to sale it. They
are forced to sale it because customer demand for it. The reason why retailers do not
prefer to sale Mother Dairy is its margin. Retailers always try to sale milk other than
Mother Dairy because they provide good margin to them. The milks, which are best in
margin, are Paras and Gopalji. Therefore retailers always try to sale Paras and Gopalji
instead of Mother Dairy and Amul. Now if Amul can provide good margin to the retailers
then they will try to sale Amul instead of Mother Dairy. And once the milk becomes
established then the rates can be increased and the margin to the retailers can be
decreased.
The most important competitive a continuous basis is the biggest challenge for
producer. This is so because milk is a basic necessity (not a luxury) with little relationship
to personal income that is the milk consumption per person is not likely to vary
significantly by income level.
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CRITICAL SUCCESS FACTORS
More frequency of visit of sales personnel
More timely delivery of stocks
Better replacements
More credit period
Relaxation in collection of payment
Initiative on display by distributor
More schemes provided to the smaller outlets
Aggressive sales promotion schemes are needed due to stiff competition
More emphasis should be given on services
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LIMITATIONS
Marketing research suffers from several limitations. A large number of problems
which are caused by financial constraints, insufficient sample size, lack of personal
contact etc. marketing research only helps managers in decision making process. It
provides data and information’s to the managers but it can not be a substitute for
marketing.
Limitations of Survey:
In this industry, it is very difficult to find the exact figures as the consumption is
very low.
There is not a particular trend followed in this industry to promote sales. Actions
are taken according to the situations and the situation changes very fast in this
industry.
Sales price vary from retailer to retailer, as the cost price is different for different
retailers due to schemes given.
The number of shops are very large in number and it is very difficult to cover all
of them.
CONCLUSION
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Milk industry is very competitive industry and dominance of Mother Dairy makes
it tougher for other brands to establish in this field. So in order to compete in this market
everything should be perfect with main focus on distribution. The distribution must be
proper and retailers must be the main center of focus. They are the people who can make
difference.
Amul advertisement is coming on TV. So there is a possibility that sales will
increase as more and more people come to know about Amul milk. Advertisement can
bring the customers to the shops but after that the retailer is the key person. If he wants he
can sell any milk. Therefore it should be the combined effort of company and retailers to
improve the sales. Also people always prefer change so if we provide them better
substitute of Mother Dairy they will welcome this change.
RETAILER SURVEY FORM
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Name of the shop ___________________________
Address ___________________________
Tel.No. ___________________________
Q1) What are the milks you usually keep in your shop?
a) Mother Dairy
b) Amul
c) Paras
d) Gopalji
e) Others _______________
Q2) Rate these milks in terms of volume of sales from 1 to 3.
a) Mother Dairy
b) Amul
c) Paras
d) Gopalji
e) Others
Q3) Does packing play any role in promoting sales?
a) Yes
b) No
Q4) How you sold the milk?
a) At M.R.P.
b) Less than M.R.P.
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c) More than M.R.P.
Q5)How you get the delivery from the distributor?
a) Through rickshaw
b) Through tampo
c) Through mini truck
d) Others _______________
Q6) How would you compare the services of Amul and Mother Dairy on the following?
(Rank 1 to 5)
Amul Mother Dairy
a) Frequency of visit of sales ____ ____
personnel
b) Timely delivery ____ ____
c) Display support ____ ____
d) Any other ____ ____
Q7) Is there any improvement possible with distributor on the following parameter?
(Please tick )
Yes No
a) Credit period ____ ____
b) Collection of payment ____ ____
c) Replacement ____ ____
d) Any other ____ ____
Q8) Customer purchase milk because of:
a) Price
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b) Quality
c) Packing
d) Scheme
e) Others ______________
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CONSUMER SURVEY FORM
Name of consumer ___________________________
Address ___________________________
Tel.No. ___________________________
Q1) Which brand of milk do you consume?
a) Mother Dairy
b) Amul
c) Paras
d) Gopalji
e) Other _____________
Q2) Which variant of milk do you use?
a) Full Cream
b) Standardized
c) Tonned
d) Double Tonned
Q3) How much milk you purchase daily?
a) Full Cream _____ Ltrs.
b) Standardized _____ Ltrs.
c) Tonned _____ Ltrs.
d) Double Tonned _____ Ltrs.
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Q4) How do you get milk?
a) From retailers
b) From supplier
c) From other ______________
Q5) How much do you pay to the retailer/supplier for the milk?
a) FCM Rs._____
b) STD Rs._____
c) Tonned Rs._____
d) DTM Rs._____
Q6) If you are getting home delivery, is supplier charging extra cost for the delivery?
a) Yes Rs._____ per (Liter/Day)
b) No
(For those who are not currently using Amul)
Q7) Have you ever used Amul milk?
a) Yes
b) No
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Q8) If no, then do you want to taste it at least once?
a) Yes
b) No
Q9) If you find it better than your current brand, then will you continue using it?
a) Yes
b) No
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BIBLIOGRAPHY
BOOKS.
Marketing management by Philip Kotler
Published by Pearson Education Pvt. Ltd, Indian Branch, 482 F.I.E. Patpargang
INTERNET WEBSITES
www.Amul.com
www.google.com
www.indiatimes.com
www.infoline.com
MAGAZINES.
India today, April 19, 2004, Page no-36
INSIGHT-The Consumer Magazine, May-June 2003, Page no – 6-12
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