amul chocolates word 2007
TRANSCRIPT
INSTITUTE OF MANAGEMENT STUDIES, DEHRADUN
Session 2007-2010
A
PROJECT REPORT ON
MARKETING STRATEGIES FOR AMUL
CHOCOLATES
SUBMITTED IN THE PARTIAL FULFILLMENT OF THEAWARD OF THE DEGREE OF
BACHELOR’S DEGREE IN BUSINESS ADMINISTRATION H.N.B.GARHWAL UNIVERSITY, SRINAGAR,
UTTARANCHAL
SUBMITTED TO:- SUBMITTED BY:-
PROJECT REPORT ON MARKETING STRATEGIES
FOR AMUL CHOCOLATES
CERTIFICATE
I have the pleasure in certifying that …………..is a bonafide student of
………………………of Institute of Management Studies, Dehradun under
the university roll no.____________________
He has completed his project titled “Marketing Strategies of Amul chocolate” under my supervision.
I certify that this is his original efforts and has not been copied from any other
source. This project work has also not been submitted in any university for the
purpose of award of any degree.
This project fulfills the requirement of curriculum prescribed by HNB Garhwal
University Srinagar, for said course. I recommended this project work for
evaluation and consideration for the award of degree.
Signature: - ___________________
Name of the guide:-
Date:-
ACKNOWLEDGEMENT
I would like to avail this opportunity to express my deep sense of gratitude and
thanks to my project guide ………………….. for his best guidance during the
course of my project as it could not have been materialized without his
systematic guidance.
I extend my sincere regards to Mr. Pawan K Agarwal (Director, Institute of
management studies, Dehradun) for providing me time and support to prepare
this report.
Finally I express my sincere thanks towards all those who directly or indirectly
helped me. Thanks a lot.
EXECUTIVE SUMMARY
The Rs 2,500-crore Gujarat Co-operative Milk Marketing Federation Ltd
(GCMMF), or Amul. Amul began the dairy cooperative movement in India and
formed an apex cooperative organization, Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), which is jointly owned by some 2.2 million milk
producers in Gujarat, India. Now, not only had the milk collection and the
number of co-operative members increased but Amul were also giving a stiff
challenge to the multinationals.
Chocolate consumption in India is extremely low. Per capita consumption is
around 160gms in the urban areas, compared to 8-10 kg in the developed
countries. In rural areas, it is even lower. Chocolates in India are consumed
as indulgence and not as a snack food.
The main objective was to know the market position of Amul chocolates and
to know strategies of their competitors. The Amul chocolate market is
segmented in two parts that is SVS Marketing and RKJP Marketing. Currently
Amul is having five variants under his umbrella brand that are Pure Milk
Chocolate, Fruits and Nuts, Fundoo, Bindaaz and Almondbar, In an attempt to
boost sales, the company has launched three new chocolates in Market under
the brands Fundoo, Bindaaz and Almond Bar. While the first two have been
priced point at Rs 10 for a 30 gm stick, Almond Bar carries a price tag of Rs 10
for a 35 gm chocolate, Fundoo is available in Rs 5 price point also. This is one
of the shortcomings as Cadbury have price points from Rs 5 to 50 ranges. Amul
also have very few variants as comparison to Cadbury India. The company's
festival season pack "Rejoice" now comes with six chocolates in the city up
during the festive season last year.
After conducting survey of Customers, and Dealers I analyzed sale of Amul
chocolates are not quite good in market as in front of it Cadbury is one of the
biggest competitor more over Amul doesn’t provide any kind of services like
Dispensers, Glass top fridges and Replacement facilities for their chocolates as
their competitor are providing to their Retailers. As per our survey, retailers list
a credible Replacement policy as a factor very high on their wish list. They
would be willing to make further investments only for that Brand which offers
replacement facilities. Another competitor in this field is NESTLE
The problems that these Dairy chocolate (Amul) giants faced were in the way
their chocolates would be displayed in urban, premium and super markets. The
chocolates were kept without bottlers and dispensers and without the proper
cooling equipment the chocolates in almost all the places would melt since they
would get heated at 40 C and would lose its taste. Thus the superior product
they would aim to tantalize the market with, would not work with bad pieces
and melting disadvantages by only providing dispensers but special types of
table top coolers as Cadbury preserve its product even in the remotest of rural
outlets and create brand visibility through the colorful display options.
These coolers today help in sales generation and brand visibility not
ignoring efficient cooling that protects and preserves the real taste of Cadbury’s
chocolates in a very cost effective manner, Amul should not overlook this fact.
In customer segments Children’s and college student showed most
tempting towards chocolates. Most of the Consumer is not satisfied as they
want improvement in present Taste of chocolate and mostly satisfied consumers
showed positive allure towards Pure Milk chocolate. Survey also reveled that
price is not the influence factor for chocolate consumption but its Company’s
Brand name and taste of chocolate which influence them most. Presently their is
no schemes for Customers from Amul, and as children and teenagers are their
main target customers, they are most attracted by the schemes available like
Cadbury is offering Tennis Ball with pack of Heroes and Perk of Rs 40. With
sum up of all of these reasons customers are not satisfied with Amul
Chocolates.
Amul is getting ready to challenge Cadbury in the molded chocolate
market. The co-operative, which has been lying low for a while with its generic
chocolate variants such as Fruit & Nut and Milk, now intends segmenting its
chocolates, catering to different age-groups and categories that are likely to
consume its brand. Encouraged by the rising numbers, GCMMF has drawn up
plans to make its chocolate business a separate division of the company.
TABLE OF CONTENTS CHAPTER NAME CHAPTER 1: PROJECT BACKGROUND 1.1 OBJECTIVE OF THE PROJECT 1.2 AN OVERVIEW OF THE ORGANIZATION 1.3 BACKGROUND OF THE COMPANY
CHAPTER 2: PRODUCT PROFILE 2.1 PRODUCT RANGE 2.2 PRODUCT PROFILE CHAPTER 3: RESEARCH METHODOLOGY 3.1 OBJECTIVE OF THE RESEARCH 3.2 RESEARCH DESIGN
3.2.1 SAMPLE DESIGN 3.2.2 SEGMENTATION
3.3 SOURCES OF DATA 3.4 TOOLS OF ANALYSIS 3.5 ANALYSIS OF MARKET RESEARCH DATA
CHAPTER 4: MARKETING STRATEGIES 4.1 DEVELOPING A BRAND PLAN 4.2 NAMING A BRAND 4.3 SEGMENTATION 4.4 MARKETING MIX 4.5 PROMOTIONAL MIX 4.6 ADVERTISING THE BRAND 4.7 PACKAGING
CHAPTER NAME
CHAPTER 5 : DISTRIBUTION CHANNEL
CHAPTER 6 : STUDY OF COMPETITORS 6.1 COMPARATIVE STUDY OF COMPETITORS
6.2 COMPARATIVE STUDY OF CHOCOLATES DEALERS
CHAPTER 7 : SUMMARY 7.1 SWOT ANALYSIS 7.2 FINDINGS FROM RESEARCH WORK 7.3 RECOMMENDATIONS
LIMITATIONS
LEARNING EXPERIENCES
REFERENCES/ BIBLIOGRAPHY
ANNEXURE/APPENDICES
THE MAIN OBJECTIVE OF THE PROJECT
The main objective of the project is to know the market potentials and
awareness about new variants of Amul chocolate in Dehradun City.
Other objectives of my project are
To find the market share of Amul in chocolate segment
To know Customer’s perception towards Amul chocolate.
To make comparative study of different variants of chocolates.
To know strategies of competitors and implement on those strategies.
To find out the potential market mainly for new variants (like Fundoo,
Bindaaz).
To make SWOT analyses of NESTLE
To identify the best season for launching of new variants .
To give proper suggestions or recommendation the company so that can
overcome from their weakness and increase their sales
Gujarat Cooperative Milk Marketing Federation
GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is
an India’s largest food product marketing organization. It is a
state level apex body of milk cooperatives in Gujarat that 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. It is respected for its credentials even after 56 years after its
inception.
The Co-Operative movement started with two villages and 247 liters of milk in
1946. It has become a rupee one billion-business now. The success of Amul
explains the reasons for this remarkable growth. Following the strategic advice
from the freedom fighters like Sardar Vallabhai and Morarji Desai, the Co-
Operative movement started with the slogan “Remove middlemen” in Gujarat
by the village masses. The collective farmers succeeded in making the British
government accept the concept of Co-Operative societies. The Kaira District
Co-Operative Milk Producers union Ltd., Anand was born on Dec 14,1946.
GCMMFL is in a state where it is growing rapidly and it is one amongst
the most respected Indian companies in 2003. It is because of the values
and systems that are in place. As a Chinese proverb says, “As long as the
trunk is firm, worry not about the branches swinging to the wind.” GCMMFL
is trying to strengthen its rural base – The Village Cooperatives – to ensure
the lead in the dairy business.
Members: 12 district cooperative milk
producers' Union
No. Of Producer Members: 2.28 million
No. Of Village Societies: 11,132
Total Milk handling capacity: 6.7 million liters per day
Milk collection (Total – 2002-03): 1.86 billion liters
Milk collection (Daily Average 2002-03): 5.08 million liters
Milk Drying Capacity: 510 metric Tons per day
Cattle feed manufacturing Capacity: 1450 Mts per day
Table 1
The only reason for the success of GCMMF as Dr.V.Kurien stated:
“Determination, Dedication, Discipline are forming the driving forces of
the Amul” The GCMMF consists of 12 affiliated member Dairies / District
milk unions and it has its own manufacturing unit called Mother Dairy at
Gandhinagar with the largest network in food industry supported by marketing
and distribution of liquid milk and a variety of products under the brands –
Amul and Sagar. It is also the sole selling agent for the National Dairy
Development Board’s (NDDB) edible oil – ‘DHARA’. GCMMF also
coordinates with the manufacturing dairy units for production planning and
milk procurement and handles the distribution of milk from surplus union to the
deficit areas.
The value chain of GCMMF is shown in Fig.1
Figure 1
BACKGROUND
Q.- HOW DID THE AMUL BRAND BECOME WHAT IT IS?
ANSWER- we must journey back in time, to the history books, to the time of
India’s independence because Amul’s birth is indelibly linked to the freedom
movement in India. It was Sardar Vallabhbhai Patel who said that if the farmers
of India are to get economic freedom then they must get out of the clutches of
the ‘middlemen’.
The first Amul cooperative was the result of a farmers’ meeting in
Samarkha (Kaira district, Gujarat) on 4 January 1946, called by Morarji Desai
under the advice from Sardar Vallabhbhai Patel, to fight rapacious milk
contractors. It was Sardar’s vision to organize farmers, to have them gain
control over production, procurement and marketing by entrusting the task of
managing these to qualified professionals, thereby eliminating the middle men,
the bane in farmers’ prosperity.
The decision was taken that day in January 1946: Milk producers’
cooperatives in villages, federated into a district union, and should alone handle
the sale of milk from Kaira to the government-run Bombay Milk Scheme. This
was the origin of the Anand pattern of cooperatives. The colonial government
refused to deal with the cooperative. The farmers called a milk strike. After
fifteen days the government capitulated. This was the beginning of Kaira
District Cooperative Milk Producers’ Union Ltd., Anand, registered on 14
December 1946.
Originally the Anand pattern included dairy cooperative societies at the
village level, and a processing unit called a ‘union’ at the district level. Inspired
by the Kaira Union, similar milk unions came up in other districts too. In 1973,
in order to market their products more effectively and economically, they
formed the Gujarat Cooperative Milk Marketing Federation Limited (GCMMF
Ltd.). GCMMF became the sole marketer of the original range of Amul
products including milk powder and butter. That range has since grown to
include ice cream, ghee, cheese, chocolates,
Shrikhand, paneer, and so on. These products have made Amul a leading
food brand in India.
PROJECT GOALS OF GCMMF’S
Success of any project is decided by the objectives and vision it has envisaged
at the inception phase. The rural IT empowerment project started by GCMMF
had the following objectives:
To build transparency among the farmers towards cooperative society
To build the competencies in the area of it
Training the rural people towards the quality supply of milk
Getting the whole activity chain of GCMMF under uninterrupted
information flow network To reduce the pilferage
To remove the complexity associated with the village cooperative society
milk Collection process
Empowering the rural masses towards self-development activities
To build the transparency and trust amongst the rural people towards the
cooperative system
To face the global competition by effective decision-making.
ORGANIZATIONAL ACHIEVEMENTS
GCMMFL, Gujarat Co-Operative Milk Marketing Limited is being driven by
the vision of the thousands of Gujarat Farmers. This specific organization has a
purpose for its existence. GCMMFL better described as the one cooperative
organization working for the well being of millions of farmers. The
commitment of GCMMF to the village farmers and vice versa is tremendous.
GCMMF changed the operations looking into the needs of the farmers. Today
GCMMF is ahead of all its competitors meeting the expectations of their
suppliers and the customers.
AMUL WITH ITS BRAND NAME – ‘THE TASTE OF INDIA’ HAS
BECOME THE BIGGEST FOOD BRAND IN INDIA.
The Rational behind The Butter Girl
The moppet who put Amul on India's breakfast table
50 years after it was first launched, Amul's sale figures have jumped
from 1000 tones a year in 1966 to over 25,000 tones 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. Bombay: Summer of 1967. Mrs.
Sheela Mane, a 28-year-old housewife is out in the balcony drying clothes.
From her second floor flat she can see her neighbors 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
overnight. "It was the first Amul hoarding that was put up in Mumbai," recalls
Sheela Mane. "People loved it. I remember it was our favorite topic of
discussion for the next one week! Everywhere we went somehow or the other
the campaign always seemed to crop up in our conversation."
Call her the Friday-to-Friday star. Round eyed, chubby cheeked, winking
at you, from strategically placed hoardings at many traffic lights. She is the
Amul moppet everyone loves to love.
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 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 humor is what anybody would enjoy.
They don't
Pander to your nationality or certain sentiments. Its pure and simple everyday
fun.
Today, after becoming everyone's favorite little "utterly buttery delicious" girl
through print and television ads, the Amul Butter Girl has finally come alive
PRODUCT RANGE
AMUL – the Taste of India, a brand so distinctively Indian, has been a
part of our lives for nearly five decades now and still is able to touch a chord in
our hearts. As a brand Amul has grown from being merely a differentiating
factor to protect the interests of producers and consumers, and has now become
a critical success factor in the very existence and growth of a movement that
started way back in the pre-independence India.
The Amul Era
Amul came into being as a consequence of a revolution and it has continued to
be revolutionary in every stage of its life. It initially started a as means to
balance the fluctuating milk supply and grew at a phenomenal rate as a liquid
milk supplier. The Kaira Union began pasteurizing milk for the Bombay Milk
Scheme in 1948. However by the 1950s it was amply clear that the future lay in
manufactured dairy products. Amul responded by embarking on a wide range of
dairy processing activities, involving new
Technologies, and by expanding its processing facilities. It challenged the
established Polson brand in butter manufacturing, and then moved on to
sweetened condensed milk in direct confrontation with the international giant
Nestle. It also locked horns with Glaxo over the production of baby food in
India. On all of these occasions Amul not only displayed feats of resilience but
also in fact came out much stronger than ever before.
Amul realized it as early as late 1960s that the only way it could increase the
share of the market was by maintaining the reasonable prices of its products,
but widening the range. During 1966-1970, Amul added sweet buttermilk
powder, a second brand of baby food (Amul spray) and a high protein weaning
food (Balamul). In 1974 the Amul Milk Chocolate was released
Commercially and was followed by several varieties of chocolates and
chocolate confectionaries. Also Nutramul, a malted cocoa beverage was
launched in 1976.Cheese powder was released commercially in the early70s.
As district unions multiplied, Kaira Cooperative recognized the benefits
of a marketing federation and thus the Gujarat Cooperative Milk Marketing
Federation (GCMMF) was established in 1973. GCMMF commenced
marketing on April 1, 1974under the single brand name of Amul. In 1978-79 it
registered a turnover of Rs. 100 crore, which grew to Rs. 539.67 crore in 1987-
89. In 2002-03 the turnover stood at Rs. 2745.70 crore. At present GCMMF
have 2.28 million producer members with a total milk collection in 2002-03
being 1.86 billion litres. The success rate has been to the extent that GCMMF
has now become India's largest food products marketing organization.
GCMMF test marketed Amul Cheese spread in 1983 following it with a new
softer cheese spread. In 1982, it introduced Amul Shrikhand in Bombay, and
brought out new flavors between 1986 and 1989. Amul UHT milk in tetra
packs, with a shelf life of days, was released in 1983 and by 1988-89 UHT milk
with shelf life of 60 days had become available. Between 1987 and 1989, Amul
Choco Shake, Amul Elaichi Shake, and Amul Lassi were successfully marketed
in tetra bricks.
In the 1990s, Amul continued on an expansion path and several new
product ranges were added to its portfolio. A much deeper Amul Cheese range
with Amul Malai Paneer and Amul Pizza Cheese, extended Amul Mithaee
range with Gulabjamuns and Kulfi mix, a wider UHT milk range Amul Taaza
milk and Amul Fresh Cream, fresh milk range with brands like Amul Gold,
Amul Smart and Amul Shakti, a new Curd range with Amul Masti Dahi, and a
new Milk drink – Amul Shakti Flavored Milk. Amul also started aggressive
marketing of its wide array of Ice creams posing stiff competition to established
players like HLL’s Kwality Walls and Mother Dairy. Recently it also
introduced ready to serve soups under the brand name of Masti Today 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. Amul has evolved from
its traditional image and now 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 have a proven model for dairy development.
LIST OF PRODUCTS MARKETED:
BREAD SPREADS: Amul Butter Amul Lite Low Fat Bread spread Amul Cooking Butter
CHEESE RANGE:
Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozzarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Frozen and Tinned Utterly Delicious Pizza
MITHAEE RANGE (ETHNIC SWEETS):
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix
UHT MILK RANGE:
1) Amul Taaza 3% fat Milk 2) Amul Gold 4.5% fat Milk 3) Amul Slim-n-Trim 0% fat milk
4) Amul Chocolate Milk 5) Amul Fresh Cream 6) Amul Snowcap Softy Mix 7) Amul Taaza Double Toned Milk
PURE GHEE:
Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee
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 Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 3% fat Amul Smart Double Toned Milk 1.5% fat
CURD PRODUCTS:
Amul Masti Dahi (fresh curd) Amul Butter Milk Amul Lassie
AMUL ICECREAMS:
o Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)
o Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)
o Utsav Range (Anjir, Roasted Almond) o Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose,
Chocolate)
o Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)
o Sundae Range (Mango, Black Currant, Chocolate, Strawberry) o Millennium Icecream (Cheese with Almonds, Dates with Honey) o Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam
Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)
AMUL TOPICALS FROM 2003-2004
Cool Candies (Orange, Mango) Cassatta Tricone Cones (Butterscotch, Chocolate) Megabite Almond Cone Frostik - 3 layer chocolate Bar Fundoo Range - exclusively for kids SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango,
Pineapple) Health : Isabcool
CHOCOLATE & CONFECTIONERY:
Amul Milk Chocolate Amul Fruit & Nut Chocolate Amul Eclairs Amul Fundoo Amul Bindaaz Amul Almondbar
BROWN BEVERAGE:
o Nutramul Malted Milk Food
MILK DRINK:
Amul Shakti Flavored Milk
Ready to Serve Soups:
Masti Tomato Soup Masti Hot & Sour Soup Masti chanch
PRODUCT PROFILE
Research for availability and acceptability of Amul Chocolate and their
different variants including New Launched
CHOCOLATES: MAJOR TYPES & BRANDS
Types BrandMolded chocolates Dairy Milk, Truffle, Amul Milk
Chocolate, Nestle Premium, Nestle Milky Bar, Nestle Classic
Count lines 5 Star, Perk, Kit Kat, Picnic, MunchPanned products Gems (Cadbury), Nutties, Marbles (Nestle)
AMUL CHOCOLATE“GIFT FOR SOMEONE YOU LOVE”
AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, and
Chocolate mass
Composition: Milk Fat 2% Sugar 55% Total Fat 32.33% (Milk Fat + Cocoa Fat) Cocoa Solids 7.5% Milk Solids 20%
AMUL MILK CHOCOLATEAMUL FRUIT AND NUT CHOCOLATE
Rich Milk Chocolates from the House of Amul.Upholding Decades of Trust and Satisfaction
AMUL FUNDOOChoti bite. Badi Masti.
Milk Chocolate Enriched with Glucose for Extra Energy.
AMUL BINDAAZ BINDAAZ KHAO HUNGAMA MACHAO
A Rare Blend of Dark Chocolate and Milk Chocolate laced with Crispy Chocolate Crumbs.
ALMONDBARBITE BITE MEIN DUM
Rich and Chewy Almond Nougats Coated with Rich Milk
Chocolate.
Product Specification:Meets all requirements under the PFA for boiled sugar confectionary.
DIFFERENT VARIANTS OF AMUL CHOCOLTES AND THEIR RELATIVE PRICING
SL.NO BRAND/PACK
MRP TRADEPRICE
DISCOUNTED PRICE
NETMARGIN
1. Amul Milk Chocolate 35g Rs.10 Rs. 9.13 Rs. 8.70 15 %
2. Amul Milk chocolate 18g Rs. 5 Rs. 4.56 Rs. 4.34 15.1 %
3. Amul F&N chocolate 30g Rs. 15 Rs. 13.87 Rs. 13.21 13.5 %
4. Amul Fundoo 30g Rs. 10 Rs. 9.00 Rs. 8.57 16.7%
5. Amul Fundoo 15g Rs. 5 Rs. 4.50 Rs. 4.28 16.7 %
6.Amul Bindaaz chocolate 30g
Rs. 10 Rs. 9.00 Rs. 8.57 16.7 %
7.Amul Almond Bar 35g Rs. 10 Rs.9.00 Rs. 8.57 16.7 %
Table 2.
RESEARCH METHODOLOGY
OBJECTIVE OF RESEARCH
Assessment of present Amul chocolate market
Size of Market – Availability, Awareness, Acceptability of Amul Chocolates.
Share of Amul – Share of Amul Chocolates.
Customer’s Expectations – Required Changes, Defects (Shortcomings) of Amul Chocolates.
Competitors – Size, Share, New product launching.
RESEARCH DESIGN
SAMPLE DESIGN:
Of the total sample design Customer and Retailers survey was
formulated on basis of Selective sampling and the Distributors survey
was based on total Census sampling –
A total 150 Customer Surveyed. A total 50 Retailers Surveyed. A total 5 Distributors were Surveyed.
SEGMENTATION:
The total research area covered were segmented into two
Sub-segment, 1. REGION WISE.2. GROUP WISE.
REGION WISEBy region wise the survey was carried out according to beat plan of AMUL in Dehradun.
Which was divided into two Plans 1. SVS PLAN. 2. RKJP PLAN.
SVS PLAN AREASRajpur, Jakhan.Garhi, Dakra.Chakrata road, Neshvilla.Hathibarkala, Vijay colony.
E.C. Road, Raipur.Karanpur, Survey Chowk.
RKJP PLAN AREASDharampur.Racecourse.Clement Town.Ballupur.MotiBazar.PremNagar.
SOURCES OF DATA
Data were collected from two sources –
Primary sources —
Which include Questionnaire, Direct interview and data collected on personal observation. These are the data, which are collected on self-basis.
Secondary Data —Which Include Journals, Magazine, News Paper And
Net. These are the data, which are collected o from the secondary sources, which are made available by other organization or company through their annual report’s or journals or news magazine.
TOOLS OF ANAYSIS
The Major tools of analysis were
Questionnaire Direct Interview/ Observation Method
The questionnaire was formulated for three categories 3 they are
DEALERS
1. QUESTIONNAIRE RETAILERS
CUSTOMERS
All the three questionnaire are attached with annexure
2. OBSERVATION METHOD –During the research work, I opted both the questionnaire and observation
method.
In observation cum interview method I have visited to different
distributors and retailer in and around Dehradun.
Who deals with different brand chocolates and during Interview
session, I interacted with them and put various relevant questions
related to Chocolates Retailing and tried to obtain data related to
Consumption of Chocolates in Dehradun Market area.
And analyzed and compiled the provided data through Graphical
representation.
ANALYSIS OF MARKET RESEARCH DATA:
CUSTOMERS SURVEY
AFFINITY TOWARDS CHOCOLATES
97%
3%
YES
NO
OPTION NO. OF RESPONDENTS
PERCENTAGE
YES 146 97
NO4 3
ANALYSIS: The analysis shows that almost 97% of consumer surveyed consumes Chocolates. Which shows Chocolates are well preferred in Consumer Market.
USAGE RATE
Daily Twice in a week
Weekly Occasionally0
10
20
30
40
50
60
12
30
48
60
DailyTwice in a weekWeeklyOccasionaly
OPTIONS NO. OF RESPONDENTS PERCENTAGEDAILY 12 8
TWICE IN A WEEK 30 20WEELKY 48 32
OCCASIONALLY 60 40
ANALYSIS: The rates of consumption of Chocolates are less Frequent i.e.
occasionally so companies should try to make consumption of a
Chocolates a daily habit of consumer as foreign companies do.
MOST PREFFERED CHOCOLATE TYPES
20%
31%
49%
Waffers
Nutties
Pure Chocolate
OPTIONS NO. OF RESPONDENTS.
PERCENTAGE
WAFERS 30 20NUTTIES 47 31
PURE CHOCOLATE 73 49
ANALYSIS: Pure Chocolate is most popular in almost all segments of
Consumer surveyed and Nutties next preferred after it.
MOST POPULAR BRAND
23%
24%
53% AMULNESTLECADBURY
OPTIONS NO.OF
RESPONDENTSPERCENTAGE
AMUL 34 23NESTLE 36 24
CADBURY 80 53
ANALYSIS: Cadbury is the most popular brand in the market and is the biggest
competitor of Amul Chocolates, which holds more than 50 % share
in Total market of Chocolates.
CONSUMER AWARNESS
YES88%
NO12%
Consumer Awareness
OPTION NO. OF RESPONDENTS
PERCENTAGE
YES 132 88NO 18 12
ANALYSIS: People are well aware of Amul Chocolates. As about 88 % of
customer surveyed are consuming Amul Chocolates. Which
means that Amul is quite popular Brand in India.
SATISFACTION LEVEL OF CONSUMERS
Very Good Satisfactory Poor0
1020304050607080
44
78
10
Very GoodSatisfactoryPoor
OPTION NO. OF RESPONDENTS
PERCENTAGE
VERY GOOD 44 33SATISFACTORY 78 59
POOR 10 8
ANALYSIS: The Graph shows that image of Amul Chocolates are quite
Satisfactory in the eye of Consumers Surveyed. The
company Should require improving its Brand Image in
Chocolate Market By increasing satisfaction level of
consumption.
REASONS FOR BUYING AMUL CHOCOLATES
35%
42%
11%
12%
Good TasteBrand NameAdvertisementReasonable Cost
OPTION NO. OF RESPONDENTS
PERCENTAGE
GOOD TASTE 45 35BRAND NAME 55 42
ADVERTISEMENT 14 11REASONABLE
COST18 12
ANALYSIS: This shows that Price is not the reason which appeals
Consumers to Buy Chocolates but its Good taste and Brand
name attracts Consumers, whereas Advertisements and
Reasonable can be the secondary factor to buy Chocolates.
BRAND LOYALTY
79%
21%YESNO
OPTION NO. OF RESPONDENTS
PERCENTAGE
YES 118 79NO 32 21
ANALYSIS: From this we can analyze that in spite of increase in price 79 %
of consumers surveyed will still stuck to their favorite Brand
Chocolates. Therefore reduction in price will hardly matter in
the Consumption of Chocolate.
CONSUMER’S VIEWS ON IMPROVEMENT OF AMUL CHOCOLATES
80%
20%
YESNO
OPTION NO. OF RESPONDENTS
PERCENTAGE
YES 120 80NO 30 20
ANALYSIS : This shows that most of the Amul chocolates consumer
surveyed are unsatisfied with the present variant and wants
Improvements.
TYPES OF IMPROVEMENTS DEMANDED BY CONSUMERS IN AMUL CHOCLATES
29%
53%
18%
Change in PackagingChange in TasteReasonable Pricing
OPTION NO. OF RESPONDENTS
PERCENTAGE
CHANGE IN PACKAGING
35 29
CHANGE IN TASTE 64 53REASONABLE
PRICING21 18
ANALYSIS: In this analysis more than 50 % of Consumers have demanded
for change in Taste of Amul Chocolates
therefore the company should try to improve the taste of Chocolates
SUGGESTED MARKETING STRATEGIES (Theoretical concept)
The term, marketing, is conventionally associated with promotion and selling of
products or services to consumers, where the promotion is done using mass
media like newspapers, magazines, T.V. or billboards. But is this all? No. The
concept of marketing can be enlarged to include in its purview the whole gamut
of communication process geared towards persuading others. Marketing,
broadly defined, is getting your ideas across to the people and influencing
them to act accordingly, thereby, achieving what you want. It is not that
marketing is done only by the corporate at the marketplace; even you and I
indulge in marketing in day-to-day life. Say, you want to win that crucial
student body election or you want to motivate your reluctant friends to come
along with you to Goa. What will you do? You will market yourself or your
ideas convincingly and succinctly, so that you/your ideas stand out among the
crowd. This means your selling pitch should be unique, so that the others sit up
and take notice. It should easily be discernible from the others; in other words,
it should stand out in multitude.
Brand Definition
Brand, An identifying symbol, words, or mark that distinguishes a
product or company from its competitors. Usually brands are registered
(trademarked) with a regulatory authority and so cannot be used freely by other
parties. For many products and companies, branding is an essential part of
marketing
Branding allows a company to differentiate themselves from the
competition and, in the process, to bond with their customers to create loyalty.
So a position is created in the marketplace that is much more difficult for the
competition to poach. A satisfied customer may leave. But a loyal one is much
less likely to.
How To Make Your Brand Expressive. Segmentation - demographics, behaviors, needs & values, situational
segmentation Choose your trademark architecture
Develop your brand trademark "look and feel" Advertising Promotions Public relations Define pricing policy Design packaging Ensure the legal protection of trademarks Develop a plan for formal communications Direct marketing/mail/catalogs Events/exhibitions/fairs Literature/brochures/data sheets/price pages Develop store design/layout
Tracking performance and effectiveness of the value of brand Track brand equity Identify future events & needs Track the effectiveness of product portfolio Track the effectiveness of service Track the effectiveness of communications Track the effectiveness of packaging Track the effectiveness of pricing strategy
Developing a Brand plan The fastest moving companies today plan on a continuous basis rather
than on an annual one, and use business scorecards to map their performance in each area of the action plan from total business to individual performance level.
Key elements of a brand plan would include: Brand vision (long term) Brand mission (mid term) Market definition Situation analysis Market size and forecasts Market dynamics and trends Market structure and share of trade at supplier, intermediary, and end
customer level segmentation
Brand scope (own and competitor brand architectures and performance, brand definitions, comparative brand strategies, brand competencies)
Market attraction vs. brand competency chart Alternative scenarios for the next 2-5 years Key programs and their goals Brand objectives
Naming a brand
TrademarksNaming brand is one aspect of developing a brand identity that can be
trademarked. Other elements are: Graphical design (the Nike® "swoosh", the Coca-Cola® bottle design) Type face Use of color (Green for Dettol, Blue for Cadbury, Red for Nestle) Sounds (like Airtel tune,)
SEGMENTATION
The foundation of a successful branding strategy is compelling segmentation,
answering the following questions:
With whom are we have to build long-term relationships and on what
basis?
What will make these customers special to us, and what will make us
special to them?
Above all, how will we recognize them when we see them?
You can use at least four levels of segmentation:
Demographic segmentation.
Behavioral segmentation.
Needs and values segmentation.
Situational segmentation.
In more detail…
1. Demographic segmentation
This is the standard segmentation of the "broken down by age and sex"
variety. Additional demographic segmentations would include socio-economic
class, life stage, geographical region, number of people in a household, income
and, in business-to-business markets, industry classification, number of
employees and turnover.
Demographic segmentations tell about how to recognize people but
are much less helpful in identifying motivations. For instance, people in a
certain income bracket do not all do not behave the same way, nor do those of
the same sex or those living in the same part of the country.
2. Behavioral segmentation
Examples of behavioral segmentations would be Internet shoppers,
frequent flyers, night workers, and buyers of competitive products/services or
special offer seekers. They often tell you how and where to find people, but
not what to say to them when you do (except perhaps in the case of special offer
seekers).
3. Needs and values segmentation
Needs and values segmentations answer why customers behave as they
do, and therefore indicate how we should position our brand. There are many
highly sophisticated market research techniques, often based on psychological
theories, aimed at uncovering customers' hidden needs and values.
These needs and values will usually work at several levels, from what
customers volunteer as being their motivations through to deep psychological
needs, which they would be most uncomfortable discussing.
4. Situational segmentation
It has been argued that the same people behave more differently in
different situations than do different people in the same situations. Situational
segmentations recognize, for instance, that when people have plenty of time
to browse the shelves they will behave differently than when they are in a
hurry. Indeed, they may be happy to buy products when they are in a hurry that
they would not dream of buying at any other time.
Next steps
Having identified the segmentations in your market at several levels, there is
a need to ensure three things:
That the segment is large enough and profitable enough to be worth your
while. If not, you may have to combine segments
That the segment is recognizable. If you cannot find them by way of
demographics, a communication channel, or a short screening exercise,
can they find you?
That your chosen segment(s) will choose to do business with you
TARGET MARKET
MARKETING MIX
In market as there many types of products are available so it becomes
difficult for the marketers to peruse the right segment market so that they can
position their product effectively to target customer. In order for this they use
mix of tools of marketing, which is, known as marketing mix.
Marketing mix is a set of marketing tools that the firm uses to peruse its
marketing objectives in the target market. Theses tool s can be classified
broadly into four Ps of marketing, Product, Price, Place, and Promotion.
MARKETING MIX
PRODUCT PRICE PLACE PROMOTION1. Variety 1. List Price 1. Channels 1. Advertisements2. Quality 2. Discounts 2. Coverage 2. Sales Force3. Design 3. Allowances 3. Locations 3. Public Relations4. Brand Name 4. Credit Norms 4. Inventory 4. Direct Marketing
Figure 3.
PRODUCT –
Product is the offering that is made to customer, which satisfies
their wants. This is the most important tool that company uses to attract
consumer. As for Amul butter is their most profit-earning product as Dairy
Milk for Cadbury.
PRICE –
Price is the critical marketing tool. Price is namely the amount of
Money that customers have to pay for the product. It is only mix that produces
revenue for the company.
The two-price points under which Amul Chocolates are available are Rs
10, and Rs 5.
PLACE –
A place is key marketing mix tool, stands for the various activities
the company undertakes to make the product accessible and available to the
Target Customers.
PROMOTION –
Promotion is an important tool, which stands for the various
marketing activities that the company undertakes to promote its product to the
target market.
As Amul now provide schemes to Retailers of 1 unit Free with 20 units
of Amul Chocolates.
PROMOTIONAL MIX
Promotion consists of those activities that are design to bring companies goods
or services to the target customers.
The promotional activities are concerned with:
Informing the people about products distinct wants—satisfying
characteristics and its availability.
Reminding people periodically about the product and its roles.
Persuading the people, prospective buyers that make people do what
they might not otherwise does what they do not really want to do.
Promotional Tools
1. ADVERTISING:
On one hand advertisement can be use to build up a long term
relationship for a product (utterly buttery delicious), Advertisement is an
effective way to reach numerous geographically dispersed buyers at a low cost
per exposure. Certain forms of advertising such as TV advertising, can require a
large budget, while other forms, such as newspaper advertising can be done on
small budget.
2. SALE PROMO:
Companies use sales promo tools to create a stronger and quicker
response. Sales promotion can be used to dramatize the product offer and to
boost sagging sales. Sales promotion effects are usually short run, however, and
not in building long run Brand preference.
3. DIRECT MARKETING:
The message is normally addressed to a specific Person and does not reach other.
It can be customized to appeal to the addressed individual. It can be prepared very quickly
for delivery to an individual.
4. PUBLIC RELATION AND PUBLICITY:
Public relation can reach many prospects who might avid sales people
advertising, a potential for dramatizing the company product. A well thought
public relation program coordinated with promotion mix elements could be
extremely effective.
ADVERTISING BRAND
Question paper leakage of CAT of on difficulties in obtaining college
IIMS admissions
Nisha Sharma refuses to marry her SAARS Scare Groom on Dowry
Key Action Points
Define the measurable objectives for advertising campaign Develop a comprehensive briefing document for the advertising agency,
including: What is our brand horizon (where do we want it to be in the medium/long
term)? What are the measurable objectives for the advertising campaign? How will we measure the results? How is our brand defined? What is our target audience? What are the other communications activities are to be conducted? What is the competition doing? Treat media buying as a separate issue, and consider hiring a specialist
media agency Having appointed the advertising agency of choice, work on building a
long-term relationship
Objectives of advertising
Advertising has different roles at different times: Introducing the brand to potential customers Building the brand into the potential customer's landscape Tempting potential customers to give the brand a test Encouraging existing customers to buy the brand again/more often Strengthening relationships between customers & the brand
It can therefore have many objectives:
Awareness & recognition of the brand Familiarity with the brand Favorability towards the brand Belief in brand values Emotional bonding to the brand Propensity to purchase the brand Propensity to pay a premium price for the brand Developing the brand as a talking point
Some agencies offer eye-tracking research that tells the advertiser which part
of a printed advertisement held the consumers' attention. Consumers' eyes often
dart around a printed advertisement, missing the main messages & the brand
identification, because they cannot find its focal point or any point of entry. The
ideal printed advertisement provides a clear flow for the consumer to
follow.
Packaging
The Austrian opinion researcher Dr. Helene Karmasin illustrated the
importance of the connection between brand name goods and consumers. Her
key argument is “consumers buy packages”. Of course it is not the package
itself that she means, but rather the hidden meaning of the package. Every
product has not only a functional value, but also serves the emotional needs
of the consumer - and this is where packaging plays an important role as a
buying incentive.
A company should constantly ask itself what it is selling - and should translate this into a system of symbols. “If you sell pet food, you are selling love. If you sell cosmetics, you are selling hope - and this is what needs to be brought across to consumers on the packaging.” Shape, colour, text, pictures, and layout - all of these aspects play a role, because they all carry a culture-based meaning. “Products are news,” stated Dr. Karmasin. They give us information, and need to be coded accordingly: because the package is the last information, the last symbol, that the consumer gets before deciding which product to buy.
The package must stimulate the customer to buy the product. “The strength of packaging lies exactly in meeting the market challenge.” Packaging can be made with brilliant colours and the highest quality “This is exactly what brand owner’s need.”
Definition Materials used for the containment, protection, handling, delivery and
presentation of goods and the activities of placing and securing goods in those materials.
Wrappers or containers used to protect food or other products from dirt, germs, and damage. Packaging often provides information about the product. Sometimes goods contain more packaging than they need.
Materials used for the containment, protection, handling, delivery and presentation of goods and the activities of placing and securing goods in those materials.
Research shows that customers receive most communications impacts about the brand from:
The products/services themselves Their packaging Packaging has two major areas of focus: The physical build: The outer/bulk packaging
The inner/display packaging The aesthetic design - color, shape, size, smell, taste, movement,
touch, weight, texture, sound In many FMCG (fast moving consumer goods) markets, the packaging is
the product. The brand team works on the image of the packaging and its contents as a unity. In business-to-business markets the packaging is dealt with as an after thought, and not seen as integral to the product positioning.
With each individual receiving reputedly 1,000-3,000 brand impacts a day, most of them audio-visual, there is a major opportunity to differentiate brands through the other senses that human beings are less able to manage on a conscious level. We may be able to recall a brand's slogan, or its logo, but how do we respond to the smells & textures associated with a brand, if we know that we are responding at all?
If food and drink brands could give you a foretaste of what is inside, or what should be associated with what is inside (for instance heather with whisky), that could be powerful. The packaging of children's toys is another good example, with its "Try Me!" buttons; or the "Singing Fish" that not only sings in its packaging, but also allows you to feel it moving, and even turns to look at you.
MeasurementThe three elements to research within packaging are:
Physical build - which denotes the quality/trustworthiness of the brand Aesthetic design - which denotes the core values of the brand Informational content - which can denote both the trustworthiness and
core values of the brand, but which is usually treated functionally
Packaging should be a vehicle for regionalism, for balancing conflict between government and the private sector, between business and the environmental sector.
For users and manufacturers of packaging this means that we must continuously seek innovative packaging solutions and optimize packaging processes.
“One of the most important functions of packaging is to look good in consumers' eyes. That's even more of a challenge when those eyes are rheumy”.
MANUFACTURERC n F
DISTRIBUTORS
WHOLESALER
RETAILERS
CUSTOMERS
Maximizing brand valueBrand valuation ultimately works on the basis of a potential buyer asking
"how much more profit can I get for my products and services sold under this brand than under any brand I might build?”
The way to maximize brand value is to: Develop a compelling brand proposition Have a large segment of loyal customers who value the brand
significantly above its competitors Legally protect ownership of the brand Deliver the brand consistently through rigorous customer relationship
management processes Maximize awareness of, and familiarity with, the brand
DISRIBUTUION CHANNEL
In today’s economy, most producers do not sale goods directly to final consumer. But between them and final consumer their stand host of marketing intermediaries such as Brokers, Distributors, retailers, sales agents searching of customers and may negotiate on behalf of the producers and do not take the title of the goods these are what called middlemanThe distribution channel of Amul comprise of
A distribution channels performs the works of moving goods from the producer to consumers. It overcomes the line, place and increases the utility of goods and services.
The Supply Chain of GCMMF is Given In Fig.4.
FARMERS
Village Cooperative Societies (with Chilling Units)
Village Cooperative Societies (without Chilling Units)
Local Restaurants/ Others Milk Related Business
Milk Sold to Village and Local Residents
Milk Processing Union & Warehouses
GCMMF Warehouses
Warehouses and C & S
Chilling Plants
Home Delivery Contractors
Retailers
Network Services
Veterinary Services.Animal Husbandry.Animal Feed Factory.Milk Can Producer.Agriculture University.Rural Management Institute.Trucking Facilities.
CONSUMERS CONSUMERS
Figure 4.
COMPARATIVE STUDY OF COMPETITOR
Nestle India Ltd.
Executive summary
Nestle India Ltd, 51% subsidiary of Nestle SA, is among the leading
branded food player in the country. It has a broad based presence in the foods
sector with leading market shares in instant coffee, infant foods, milk products
and noodles. It has also strengthened its presence in chocolates, confectioneries
and other semi processed food products during the last few years. The company
has launched Dairy Products like UHT Milk, Butter and Curd and also ventured
into the mineral water segment in 2001. Nestlé’s leading brands include
Cerelac, Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Life.
Competition:
Baby food and Instant coffee are categories where brand loyalties are
very strong and Nestle is the market leader. HLL is a significant competitor to
Nestle in instant coffee; while Heinz is the main competitor in the baby foods
market. The market for culinary products, semi-processed foods such as
noodles, ready mixes for Indian ethnic breakfast and sweets, is largely an urban
market. HLL and Indo Nissin Foods are the main competitors in these product
segments. Nestle has also achieved a significant 25% share in the
chocolate/confectionery market. The company has recently expanded its dairy
products portfolio to include, milk, curd and butter. The company also forayed
into the bottled water segment with the launch of its Perrier brand in the
premium mineral segment and Pure Life in the purified water segment.
Nestlé has maintained its thrust on improving availability of its products and
on initiatives to increase the freshness of stocks available to consumers. New
products are continuously launched in all product segments. In the current year
the company has launched mineral water, UHT milk, butter, curd, new tomato
and curry flavors in Maggie noodles, a new confectionery - Nestle Choco Stick
at an affordable price point of Rs2, a soft chewy fudge Milky bar Choo and
Nestea iced tea. The company is also setting up ‘Café Nescafe’ and ‘Coffee
Corners’ across metros and mini-metros.
COMPARATIVE STUDY OF CHOCOLATE DEALERS IN DEHRADUN
DETAILS OF DISTRIBUTORS
Name of the company Name & Address of the distributors
Mr. Pankaj, SVS Marketing, Kamal Market,
Paltan Bazaar, Dehra Dun.
Mr. Sanjeev, RKJP Marketing, 23, Mahaveer Enclave. Mazra, Dehra Dun.
Mr. Parth, Gita Parth Agency, 195, Indra Nagar Colony,
Kanwali Road, Dehra Dun.
National Agency, 20/1, Khurbura Mohhala, Tilak Road, Dehra Dun.
Bharat Enterprises,
MANUFACTURERC & F DISTRIBUTORS
WHOLESALER
RETAILERS
CUSTOMERS
MANUFACTURER
GHAZIABAD DEPOT
KANPUR DEPOT
ROORKEE DEPOT
DISTRIBUTORS
WHOLESALER RETAILERS
CUSTOMERS
MANUFACTURER C & F DISTRIBUTORS
WHOLESALER
RETAILERS
CUSTOMERS
35/43, National Road, Laxman Chowk, Dehra Dun.
DISTRIBUTION CHANNEL
INFRASTRUCTURAL FACILITIES
AMUL
SVS Marketing (a) Salesman – 2 (b) Delivery vehicle
i) 2 Wheeler – 1ii) 3 Wheeler – 2
RKJP Marketing (a) Salesman – 3 (b) Delivery vehicle
i) 2 Wheeler – Noneii) 3 Wheeler – 2
CADBURY
Gita Parth Agency (a) Salesman – 2 , Pilot Salesman –1 (b) Delivery vehicle
i) 2 Wheeler – noneii) 3 Wheeler – 2
National Agency (a) Salesman – 2
(b) Delivery vehicle i) 2 Wheeler – noneiii)3 Wheeler – 1
NESTLE
Bharat Enterprises (a) Salesman – 3 (b) Delivery vehicle
i) 2 Wheeler – none
ii) 3 Wheeler – 3
PROFIT MARGIN
AMULSVS Marketing (a) Distributors – 3 %
(b) Wholesalers – 1 % + CD*
(c) Retailers – 11 % (d) Salesman – Salary 4000 pm
RKJP Marketing (a) Distributors – 2.5 % or 3 % (b) Wholesalers – CD
(c) Retailers – 9 % (d) Salesman – Salary Rs 2500 onwards
CADBURY
Gita Parth Agency (a) Distributors – 4 % to 6 %. (b) Wholesalers – 2 % (Discount Basis)
(c) Retailers – 12 % (d) Institutions – 2 %
(e) Salesman – Salary 1800 - 2500 + T.A. + Target achievement incentives.
National Agency (a) Distributors – 5 % (b) Wholesalers – None
(c) Retailers – 10 %(d) Salesman – Salary 2500 onwards +
Incentives. NESTLE
Bharat Enterprises (a) Distributors – 5.5 % (b) Wholesalers – 2 % C.D. + Schemes
On quantity purchased (c) Retailers – 10 % (d) Salesman – Salary 2500, 3000, 4000
*CD* Cash Discount
COVERAGE
AMULSVS Marketing –
(a) Total Retailers – 300 / Week (b) Total Wholesale – 20 / Week
RKJP Marketing – (a) Total Retailers – 350 / Week
(b) Total Wholesaler – 20 / Week
CADBURY
Gita Parth Agency – (a) Total Retailers – 1000 / Week
(b) Total Wholesaler – 150 / Week
National Agency –
(a) Total Retailers – 500 / Week (b) Total Wholesaler – None
NESTLE
Bharat Enterprises –
(a) Total Retailers – 1200 / Week (b) Total Wholesaler – 10 / Week
MODE OF PAYMENT
AMULSVS Marketing – Cash
RKJP Marketing – Cash
CADBURY Gita Parth Agency – Weekly Credit
National Agency – Credit of 15 days
NESTLEBharat Enterprises –
For Wholesaler – Cash For Retailers – Credit of 10 to 15 days
MODE OF RECIPT
AMULSVS Marketing – Advance D.D.
RKJP Marketing – Advance D.D.
CADBURYGita Parth Agency – Advance ChequeNational Agency – Advance Cheque
NESTLE
Bharat Enterprises – Advance Cheque
MOST FAVOURABLE MARKET
AMUL SVS Marketing – Rajpur Road
RKJP Marketing – Dharampur and Clement town
CADBURY
Gita Parth Agency – Palltan Bazaar National Agency – Rajpur Road
NESTLE
Bharat Enterprises – Rajpur Road, Clement Town, Premnagar.
SERVICES DEMANDED BY SUPPLIERSAMUL
SVS Marketing – Dispenser box, RKJP Marketing – Dispenser box.
CADBURYGita Parth Agency – Quick delivery
National Agency – Timely Supply
NESTLEBharat Enterprises –Quick delivery
SCHEMES
AMUL
Retailers – 1 unit free with 20 units
CADBURY
Wholesalers – 1 unit free with a box of 20, 40, 60.Customers –
Tennis ball free with 107gm pack of Heros costing Rs50 & with 120gm of Perk costing Rs 40.
35gm x 3units + 35gm x 1 unit free with 105 gm of Dairy Milk of Rs 40.
NESTLE
Retailers – 1 unit free with 24 units on Rs 5 Pack.
Customer – Puzzle free with Nestle Premium 12 Rs Kit Kat at a price of Rs 10. 6 Rs Kit Kat at a price of Rs 5.
SERVICES PROVIDED BY DEALERS
AMUL No services are provided.
CADBURY
Sale Units Services 3000 - 5000 Non- Cooling Dispenser
10,000 – 12,000 Cooling Dispenser. 12,000 & above Fridges
Local Service Station ( Cadbury repair Station ) Door Delivery, Bannering, Postering
NESTLE Credit Facility Dispenser Replacement.
STOCK DELIVERY PATTERN.
AMULSVS Marketing – Ready Stock
RKJP Marketing – Ready Stock
CADBURY Gita Parth Agency – Ordered booking National Agency – Ordered booking
NESTLE Bharat Enterprises – Ready stock
DISTRIBITION OPERATION
AMUL SVS Marketing –
Inventory/Days – 10 Days Max. Limit – Rs. 75,000 Sales/Month – Rs 25,000
RKJP Marketing – Inventory/Days – 15 Days Max. Limit – Rs. 60,000 Sales/Month – Rs 15,000
CADBURY
Gita Parth Agency – Inventory/Days – 15 Days Max. Limit – Rs 18 to 20 Lakh Sales/Month – Rs 14 Lakh
National Agency – Inventory/Days – 30 Days Max. Limit – Rs. 20Lakh Sales/Month – Rs 10Lakh Seasons Sales Rs 12 Lakh
NESTLE
Bharat Enterprises – Inventory/Days – 20 Days Max. Limit – Rs 10 to 12 Lakh Sales/Month – Rs 12 Lakh.
SERVICE COST
AMUL NO SERVICES
CADBURYa) Dispensers b) Glass Top Fridges
NESTLE a) Dispensers – Rs 250 to 300 b) Glass Top Fridges – Rs 6000 to 8000.
FUTURE PLANS / SUGGESTIONS
AMULConsumer Awareness, Dispenser Availability, And Schemes for Retailers and Consumers
CADBURY
Publicity
NESTLE Product Penetration, Classic in a Pack of 40gm and 28 gm, good adds in comparisons to Cadbury.
GRIEVANCES
AMUL
No Replacement by Company ( 20% hardly) Pressure Stocking ( leads to expiry as of low sales
and high inventory) Less Variety.
CADBURY Pressure Selling Lots of chances of Damages Pressure to keep high Inventory.
NESTLE Satisfied
SWOT
The term SWOT analysis on elaboration is self-explanatory term in which S stands for Strengths, W Stands for Weakness, O Stands for Opportunities, and T stands for Threats.
The Words Strengths here mean what are the strong areas where company is well ahead of its competitors and due to which the image of the company is strong in the market.
The word Weakness means what are the areas where company is trailing from its competitors.
The word Opportunities means what are the areas the company is having chance to be well ahead from it’s competitors by making some changes or by adding some attributes to it’s brand.
The word Threats means those areas that are the acting as negative ones for the company and positive one for its competitor.
Swot analysis of Amul Chocolates and their competitors
STRENGTHS –
A well recognized Brand Biggest sourcing base for milk and milk products in India. India’s best-known local Brand across all categories. Good margin of Profit for retailers High demand of Amul milk Chocolate Advantage of our already existing cold chain to get more active
in the growing market of molded chocolates and confectionery Can make good utilization of Established goodwill of Butter
channel A sense of patriotism is attached (the taste of India) Amul has built up a formidable image as a brand in which
generations of consumers have placed their trust. This can be used to its advantage while introduction of new variants of chocolates.
WEAKNESS – No advertisements and promotions are made for Amul
Chocolates. Less number of variant in chocolates, as just only five variants
is present at latest. Absence of Customers Schemes. As per our survey, retailers list a credible Replacement policy
as a factor very high on their wish list. They would be willing to make further investments only for that brand which offers replacement facilities. Amul has no replacement policy.
OPPORTUNITIES – Packaging can be made more attractive and Glossy as it affects
the psychology of a consumer. Good market penetration made by their dairy products,
chocolate segment can make food use of it. Can try to create Brand loyal customer Lots of scopes of improvement like in the field of Distribution,
Sales Services, Credit sale. Retailers now demand freezers without having to pay any
deposit. This is especially true of those retailers who already stock one or the other
THREATS – Low Market Coverage. Provides no services like Dispenser, Visi coolers. Retailers and Distributors not Satisfied with company Services
unlike Cadbury and Nestle Usually Supply of old dated Chocolates.
SWOT Analysis
STRENGTH – Brand leader in noodles (Maggie) and coffee (Nescafe) Satisfied middleman Brand ambassador like Rani Mukheerje
WEAKNESS –
Profit margin need to be revised No innovation or new variants
OPPORTUNITY – All brand not successful All variants not successful
THREAT – Tough competition from Amul and Cadbury Low profit margin to retailer’s
FINDINGS
In this project we covered Dehra Dun city and the total sample size was 205. Which includes 150-customer survey, 50 retailers survey and 5 Distributors. The product under study was Amul Chocolates especially newly launched Variants Fundoo, Bindaaz, and Almond Bar.
The whole Amul market for Dehra Dun Valley was segmented into two parts
1. SVS MARKETING
2. RKJP MARKETING
Findings from customer’s survey –
Chocolates in India are consumed as indulgence (pleasure) and not as a snack food
People are not regular customers of chocolates because out of 150 surveyed customer only 8 % has polled for daily.
People are well aware of Amul chocolates but of old variant mostly milk chocolate. And prefer less in comparison to Cadbury.
Presently Cadbury is most preferred brand in chocolate market, which holds more than 53 % of total chocolates market.
Brand name influence the sale of chocolate up to greater extent. In case of product like chocolates taste is very important factor .
Among all the packs of Amul chocolate Rs 10 is mostly preferred price point, but it varies according to area as in Dharampur, Nehru colony Fundoo pack of Rs 5 was most Preferred.
Most of the consumer surveyed are not satisfied with the taste of Amul chocolates and want buttery type taste as similar to that of Cadbury chocolate.
Mostly surveyed customer consumes Cadbury and is loyal towards their brand, which means a tough task for Amul to turns customers loyalty.
Pure milk chocolate of Amul is mostly demanded among all variants of Amul Chocolate
Dairy milk of Cadbury is most preferred chocolate in over all chocolate market.
Children and College Students are the main consumers of chocolates to whom Amul should do their product positioning.
Findings from Dealers survey –
I have visited dealers of mainly three companies Amul, Cadbury, Nestle.Their findings are as follows.
Among all the three companies Cadbury is the leader in the chocolate market.
Both Cadbury and Nestle deals on Credit basis except Amul This could the reason why Retailers avoid to Deal with Amul as all the transaction are made on Cash basis.
Rajpur roads Palltan Market are most Favorable Market for all the three Dealers.
Dealers of Amul rarely visit retailers because they don’t have Variety’s in Comparison to Cadbury and Nestle.
Amul doesn’t provide any kinds of services like replacement of expired chocolates where as this facilities are available in both the company Cadbury and Amul.
Packaging of Chocolates was Dull and is not attractive. All the companies offer Schemes to Retailers (as 20 + of Amul). Distributors are forced to stock more Quantity of Chocolates then
required, chances of damage is more as such.
RECOMMENDATIONS
As the Company Amul Are taking some efforts but still it should consider
some suggestion, which I intended to put forward to the organization this, have
been developed through discussion with retailers, customers and dealers while
on survey of Amul chocolate in Dehradun.
Improvement in taste is must (Should be more Buttery like Cadbury Dairy
Milk)
Should make packaging more attractive and glossy as packaging affect
psychologically on people’s mind.
Try to introduce more variants and different price points
Should make attractive ads and promos of chocolates, as there is no
advertisement till now.
Customer schemes should be made available like KIT – KAT of Nestle.
Should try to provide proper service to its distributors as Nestle is
providing so that they can be fully satisfied.
More flavors should be introduced as Nestle have at present.
Go for good Brand Ambassador as Amitab and Pretty Zinta for Cadbury
and Rani Mukheerje for Nestle Munch.
Should Improve distribution Channel so as to make Amul chocolates
available at every shop.
Should provide Sale services (Dispenser, Coolers)
Should provide Facilities of Credit and Replacement of out Dated and
Damaged products.
Company should launch Wafers types of Chocolate as Perk and Kit-Kat
are mostly in demand.
Company should also offer Schemes or free gifts to customer as presently
no Schemes for Customers are there.
Small shop Should Not Be Neglected.
If Amul Company actually want to lead or dominate the Chocolate
market then it should try to ponder this suggestion and provide Chocolate
vending machine.
LIMITATIONS
Time constraints due to time constraints I have not been able to cover all
the regions of Dehradun. Had to cover only those regions, which come
under beat plans of Amul.
Some retailers were unwilling to give information, as they were not at all
interested in dealing with Amul chocolates.
There might be possibility of biased information by some retailers due to
misrepresentation of facts.
Cadbury and nestle didn’t had any exact figure that how much sale of
which variant are contributing monthly.
Also wanted to include Campco in comparative study of chocolates and for
that visited twice to campco’s Super Stockiest but might be because of
hectic schedule the dealers was not able to gave time.
LEARNING EXPERIENCES
Working in an organization like Amul India was really a wonderful experience
for me to know about Amul India and also about the corporate world. Specially
the competitors of Amul such as Cadbury, Nestle etc.
Working under the guidance of an area manager of Amul India, Dehradun
Mr. Mukesh Sadana helped me to gather first hand experience of market and
some practical experience of life.
1. How to enter into the market
2. How to convince the parties / people (like Retailers) so that they will
purchase your product.
3. Marketer must have deep knowledge of the product with which he is
dealing.
4. Knowledge of the company in which a person is working is not enough
but the knowledge of the competitor and cooperate world is also must.
5. A marketer must always keep this proverb in his mind that “Customer is
king” so he should try to take care of the demand of his customer
6. A person should well know hierarchy level of management in the
organization, which he is working.
7. Confidence level should be high.
8. Should always be ready to face any kind of problem that exists in the
market or in company.
9. Good listening or tolerance power is must. He should always remember
that listening is much more required than speaking.
10. Good relation with employee where you are working is must.
ANNEXURE
CUSTOMER’S QUESTIONNAIRE
1. Do you like to have a chocolate?
2. How often do you use chocolate? a) Daily b) Twice in week c) Weekly d) Occasionally
3. Which type of chocolate you like most? a Wafers types b) Nutties types c) Pure chocolate
4. Which brand of a chocolate you prefer most and why? a) Amul b) Nestle c) Cadbury.
5. Have you ever tried Amul chocolate?
6. If yes how did you find it? a) Very good b) Satisfactory c) Poor.
7. What makes you to buy for Amul chocolate? a) Good taste b) Brand name c) Advertisement d) Reasonable cost
8. With increase price will you still buy your favorite chocolate?
9. Do you feel that there should be any improvement in Amul chocolate? a) Yes b) No
10. Do you feel that there should be any improvement in Amul chocolate? a) Change in packaging b) change in taste c) reasonable pricing
11. Any suggestions
PERSONAL DETAILSName: Age: Address: No. of family members: Phone No.: Your monthly Savings: Your monthly Expenses:
RETAILER’S QUESTIONNAIRE
1. Chocolate of which brand do you stock most?a) Amul b) Nestle c) Cadbury
2. What is the reason of buying these brand chocolates?a) Demand b) Profit Margin c) Sale services
3. Which variant of Amul chocolate is/are most demanded by customers?
a) Milk Chocolate b) Fruit & Nuts c) Fundoo d) Bindaaz e) Almond bar
4. Who are the regular customers of chocolate?a) Children b) College Students c) House Wives.
5. Have you ever got any complaints in Amul chocolates? a) Yes b) No If yes please specify.6. How do you find the sale of Amul chocolates?
a) Good b) Satisfactory c) Bad
7. What are the problems that you face while dealing with Amul chocolates?a) Storage b) Selling c) Supplies.
8. During which month do you feel that the sale of Amul chocolate increases most?a) January to April b) May to August c) September to December.
9. Which pack is mostly demanded?a) Rs 10 b) Rs 5.
10. Do you feel that there should be any improvement in Amul chocolates?a) Yes b) No.
11. If yes what kind of improvement?a) Change in Packaging b) Change in taste c) Distribution Channels.
PERSONAL DETAILSName: Age: Phone No:Shop Address: Your monthly expenses on chocolates:
QUESTIONNAIRE OF DISTRIBUTORS
1. Name of the company?
2. Name of the distributors?
3. Address of the distributors?
4. Your distribution channel.
5. What kind of infrastructural facilities do you have?(a)Salesman (b) Delivery vehicle i) 2 Wheeler ii) 3 Wheeler
6. Profit Margin(a) Distributors (b) wholesalers (c) Retailers (d) salesman
7. Stock delivery pattern.(a)Ordered booking (b) Ready stock
8. Coverage(a)Total Retailers (b)Total Wholesaler
9. Coverage Frequency (Daily / Monthly / Weekly).(a) Retailers (b) Wholesaler
10.Mode of payment.( w / r / s)(a) Cash (w / r / s)(b) Credit (w/ r / s)
i) Cheque (w / r / s) (ii) Demand Draft (w / r / s)(c) Credit Period Received
i) wholesalers (ii) retailers (iii) salesman
11.Mode of Receipt. (W / r / s)(a) Cash (w / r / s)(b) Credit (w/ r / s)
I) Cheque (w / r / s) (ii) Demand Draft (w / r / s) (c) Credit Period Given.
i) Wholesalers (ii) retailers (iii) salesman
12.Which is the most favorable market?
13.What are the Services that are Mostly demanded by supply Chain (r/w/s/c)?
14.Schemesa) Wholesalers/salesman b) Retailers c) Customers
15. What are the services do you provide to ( r/w/s/c)?
16. Distributor’s operation a) Inventory (days) Maximum limit b) Stock capacity c) Sales (monthly/weekly/daily)
17. How much does your service cost? a) Dispensers b) Glass Top Fridge.
18. Future Plans / Suggestions
19. Grievances.
MARKET ANALYSIS OF AMUL CHOCOLATE IN DEHRADUN
5th June (Sat) – Conducted Customer Survey (40) for Amul Fresh Cream at Ballupur, Paltan Market, Clock Tower and Dispensary Road.
ANALYSIS – Less Consumer Awareness, Packaging in Tin form, Small Size Packaging Preferred.
9th June (Wed) – Visited Ballupur market and covered 13 Retail shops and Collected order for 125 units of Amul Chocolates.
ANALYSIS – Poor Distribution Channel, Refrigeration Problem, Major share of Cadbury, in Chocolates market, Replacement Problem.
10th June (Thu) – Visited Moti Bazaar and near by area, got order for 40 units of Amul Chocolates.
ANALYSIS –
A low profile market, Melting Problem, No Distribution Links, with low product
Penetration, Required Display Glass top boxes.
Suggestions — Glass top Boxes & Refrigerator should be provided, Distribution Channel should be improved.
Total 165 units were ordered in this week
11th June (Fri) – Visited Clement Town, Cantt Area, Turner Road, Tibet Market and Buddha Park and collected order for 200 Units
Of Amul Chocolates.
ANALYSIS – Can be a potential market, Lack of distribution system, Melting Problem, Though regular supply in turner road.
12th June (Sat) – Visited Dharampur, Nehru Colony and got order for 300 units of Amul Chocolates.
ANALYSIS –
A good viable market, Some asked for contract basis (like glass top Fridges), Preferred Fundoo Pack of Rs 5 Cadbury major shareholder of market Out of 25, 16 Shops responded for Amul
Chocolates.
14th June (Mon) – Surveyed a market of Garhi Cantt, Dakra and collected a order of 100 units.
ANALYSIS –
Continuous supply of Amul Chocolates, Asked for Dispenser, Low Demand, Direct contact with Distributors
15th June (Tue) – Surveyed a market of Chakrata Road, Neshvilla, Chukuwala and collected order of 400 units of Amul Chocolates.
ANALYSIS – Asked for Dispenser Boxes and display Banners, Very few Shops responded for Amul Chocolates, Proper attention can improve the product penetration in this market.
16th June (Wed) – Visited area of Salawala, Vijay Colony, Hathi Barkala And collected order for 280 units of Amul Chocolates.
ANALYSIS – Can be a good market because of presence of
Colleges and Schools,
Low attention to Vijay Colony Retail.
17th June (Thu) – Visited Area of EC Road, AraGhar and collected order For 520 units of Amul Chocolates.
ANALYSIS – Huge potential market, Retailers dependent on Colleges near by, Poor Distribution Channel, Most Retail Shop showed interest towards
Amul Chocolates, Complaints for return of expiry.
Suggestions — Replacement of Expiry should be made, proper Attention to Small Retails also should be given.
Total 1800 units of order were collected during this week.
18th June (Fri) – Surveyed area of Karanpur, near by areas of D.A.V. Collected order of 110 units of Amul Chocolates.
ANALYSIS – Dependence of Retailers on Colleges for sales, Poor Distribution Channel, Suppliers has not visited to some Retailers for
more than a year,
19th June (Sat) – Visited Rajpur Road, Dillaram and collected order for 180 units of Amul Chocolates.
ANALYSIS – Effective Distribution Channels, A high Consumer status market, Presence of Quality Retailing Shops, Most of the Shops asked for Despenser outlets.
21st June (Mon) – Visited Ballupur Market and PanditWari shops and Collected order of 80 units of Amul Chocolates.
ANALYSIS – Previous orders were not supplied, Asked for Despenser, Replacement problem was dominant.
22nd June (Tue) – Surveyed Premnagar, Thakurpur Road and collected order for 350 units of Amul Chocolates.
ANALYSIS – Few Retails were not visited by distributors,
though Distribution were good, Most of the shop asked for Dispenser.
23rd June (Wed) – Visited Market of Dharampur, Nehru colony and Collected order for 600 units of Amul Chocolates.
ANALYSIS – Credit dealing were preferred, Some retails asked for Glass top fridge, Amul Milk-35 was mostly demanded.
24th June (Thu) – Visited market of Race course area and collected order of 300 units of Amul Chocolates.
ANALYSIS – Melting Problem, Old dated Manufactured Chocolates were
supplied, Low demand of Amul chocolates.
Suggestions — Glass Refrigerator should be provided, latest manufactured Chocolates should be supplied, and Credit facility should be softening.
Total 1620 units were ordered in this week
REFERENCES
ARTICLES/JOURNALS/BOOKS From An Article By Mini Varma Published In The Asian Age On
March 3, 1996
Annual Report Of Gcmmf 1999
Business Today September 30,2001
Phillip Kotler, Marketing Management.
WEBSITES
www.Amul.Com
www.Indiadairy.Com
www.Indiainfoline.Com
www.Nestle.Ca
www.Google.Com
www.Cim.Co.Uk
www.Cadburyindia.Com