amul sdm.docx

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Company overview: Type Cooperative Founded 1946 Headquarte rs Anand, India Key people Chairman, Gujarat Co- operative Milk Marketing Federation Ltd. (GCMMF) Industry Dairy Products See complete products listing. Revenue Template:Revenue$1 billion USD (in 2006-07) Employees 2.41 million milk producers Slogan The Taste of India Website http://www.amul.com/ The Kaira District Co-operative Milk Producers Union Limited, popularly known as Amul Dairy is a US $1billion turnover institution It is a institution built up with a network of over 10000 Village Co-operative Societies and 500,000 plus members Managed by an apex cooperative organization, Gujarat Co- operative Milk Marketing Federation Ltd. (GCMMF), which today

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Page 1: amul sdm.docx

Company overview:

Type Cooperative

Founded 1946

Headquarters Anand, India

Key peopleChairman, Gujarat Co-operative Milk

Marketing Federation Ltd. (GCMMF)

Industry Dairy

Products See complete products listing.

RevenueTemplate:Revenue$1 billion USD (in 2006-

07)

Employees 2.41 million milk producers

Slogan The Taste of India

Website http://www.amul.com/

The Kaira District Co-operative Milk Producers Union Limited, popularly known as Amul Dairy is a US $1billion turnover institution

It is a institution built up with a network of over 10000 Village Co-operative Societies and 500,000 plus members

Managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat, India

Amul is the largest food brand in India with an annual turnover of US $1068 million (2007-08)

Amul is the largest producer of milk and milk products in the world.

Before Amul

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Polson dairy had monopoly rights

Exploitation of milk producers

Producers had to travel long distances to sell their produce

Had to physically carry their produce

Agents decided the prices and the off-take

Summers- milk would go sour

Winters –surplus milk unsold or sold at very low prices

Amul (Anand Milk-producers Union Limited), formed in 1946, is a dairy cooperative movement

in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative

Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk

producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example of a

co-operative organization's success in the long term. The Amul Pattern has established itself as a

uniquely appropriate model for rural development. Amul has spurred the White Revolution of India,

which has made India the largest producer of milk and milk products in the world. It is also the world's

biggest vegetarian cheese brand.

Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream,

cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006, Amul

plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade

and PepsiCo's Gatorade.

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual

turnover of US $1050 million (2006-07) .Currently Amul has 2.6 million producer members with milk

collection average of 10.16 million litres per day. Besides

India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia,

China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in

1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets. Other potential

markets being considered include Sri Lanka.

“Dr Verghese Kurien, the chairman of the GCMMF, is recognised as the man behind the success

of Amul”.

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Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch

warehouse to their premises. This just-in-time inventory strategy improves dealers' return on

investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle

operations.

Sales Turnover US $ (million)

2003-04 355

2004-05 400

2005-06 450

2006-07 455

2007-08 493

2008-09 493

2009-10 500

2010-11 500

2011-12 575

2012-13 616

2013-14 672

20014-15 1068

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Foundation for Amul

Producers of Kaira district formed a cooperative to supply milk directly to Bombay milk

scheme

Decentralized milk collection

Village level cooperatives

First modern dairy established at Anand

Indigenous technology and R&D department

Network Structure

Made up of various stakeholders-suppliers to retailers

Linked by a common interest of remaining competitive in a demanding environment

Global optimum rather than local optimum

Strategies

Core competency

Help network partners

Information sharing

Dairy Cooperative Structure and details for State of Gujarat

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GCMMF

Gujarat cooperative milk marketing federation

Marketing entity for the state of Gujarat

42 regional distribution centers in India

5,00,000 retail outlets

Exports to more than 15 countries

NDDB (National Dairy Development Board)

NCDFI (National Co-Operative Dairy Federation of India)-coordinate dairy activities

nationally

History

Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the

Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand.

Some cite the origin as an acronym to (Anand Milk Producers Union Limited).

The Amul revolution was started as awareness among the farmers. It grew and matured into a protest

movement that was channeled towards economic prosperity.

Situation of farmers:

Over five decades ago, the life of an average farmer in Kheda District was very much like that of

his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal

crops. The income from milk buffaloes was undependable. Milk producers had to travel long

distances to deliver milk to the only dairy, the Polson Dairy in Anand – often milk went sour,

especially in the summer season, as producers had to physically carry milk in individual containers.

Private traders and middlemen controlled the marketing and distribution system for the milk. These

middlemen decided the prices and the off-take from the farmers by the season. As milk is perishable,

farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and

ghee at throw-away prices. In this situation, the private trader made a killing. Moreover, the

government at that time had given monopoly rights to Polson Dairy (around that time Polson was the

most well-known butter brand in the country) to collect milk from Anand and supply to Bombay city

in turn (about 400 kilometers away). India ranked nowhere amongst milk producing countries in the

world in 1946. Gradually, the realization dawned on the farmers with inspiration from then nationalist

leaders Sardar Vallabhbhai Patel (who later became the first Home Minister of free India) and

Morarji Desai (who later become the Prime Minister of India) and local farmer, freedom fighter and

social worker Tribhovandas Patel, that the exploitation by the trader could be checked only if they

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marketed their milk themselves. Amul was the result of the realization that they could pool up their

milk and work as a cooperative.

Setting up of Kaira District Co-operative Milk Producers' Union:

The Kaira District Co-operative Milk Producers' Union Limited (KDCMPUL) began

pasteurizing milk for the Bombay Milk Scheme in June 1948. By the end of 1948, more than 400

farmers joined in more Village Society, and the quantity of milk handled by one Union increased from

250 to 5,000 liters a day. Dr. Verghese Kurien, fed up being at the government creamery in Anand,

which held no challenge, volunteered to help Shri Tribhovandas Patel, the Chairman of KDCMPUL,

in setting up a processing plant. This marked the birth of AMUL.The success of Amul was

instrumental in launching the White Revolution that resulted in increased milk production in India. It

is officially termed as Operation Flood by Amul. The breakthrough technology of spray-drying and

processing buffalo milk, developed by Mr. H.M. Dalaya, was one of the key factors that contributed

to the Revolution.

Setting Up of Gujarat Cooperative Milk Marketing Federation:

In 1954, Kaira District Co-operative Milk Producers’ Union built a plant to convert surplus milk

produced in the cold seasons into milk powder and butter3. In 1958, a plant to manufacture cheese and

one to produce baby food were added. Subsequent years saw the addition of more plants to produce

different products. In 1973, the milk societies/district level unions decided to set up a marketing

agency to market their products. This agency was the Gujarat Cooperative Milk Marketing Federation

(GCMMF). It was registered as a co-operative society on 9 July 1973.

GCMMF Today:

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. GCMMF

markets and manages the Amul brand. From mid-1990's Amul has entered areas not related directly to

its core business. Its entry into ice cream was regarded as successful due to the large market share it

was able to capture within a short period of time - primarily due to the price differential and the brand

name. It also entered the Pizza business, where the base and the recipes were made available to

restaurant owners who could price it as low as 30 rupees per pizza when the other players were

charging upwards of 100 rupees.

In September 2007, Amul emerged as the leading Asian brand according to a survey by Synovate to

find out Asia's top 1000 Brands.

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Members: 13 district cooperative milk producers' Union

No. of Producer Members: 2.6 million

No. of Village Societies: 12,792

Total Milk handling capacity: 10.16 million liters per day

Milk collection (Total - 2006-07) 2.38 billion litters

Milk collection (Daily Average 2006-07) 6.5 million litters

Milk Drying Capacity: 594 Mts. per day

Cattle feed manufacturing Capacity: 2640 Mts per day

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for

2007.

Collection of milk:

Every day Amul collects 447,000 liters of milk from 2.12 million farmers (many illiterate), converts

the milk into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60 million) to over

500,000 retail outlets across the country.

Its supply chain is easily one of the most complicated in the world. How do managers at Amul prevent

the milk from souring?

Walk in to any Amul or Gujarat Cooperative Milk Marketing Federation (GCMMF) office, and you

may or may not see a photograph of Mahatma Gandhi, but you will certainly see one particular

photograph. It shows a long line of Gujarati women waiting patiently for a union truck to come and

collect the milk they have brought in shining brass matkas.

The picture is always prominently displayed. The message is clear: never forget your primary

customer. If you don't, success is certain. The proof A unique, Rs 2,200 crore (Rs 22 billion)

enterprise.

Organization structure:

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It all started in December 1946 with a group of farmers keen to free themselves from intermediaries,

gain access to markets and thereby ensure maximum returns for their efforts.

Based in the village of Anand, the Kaira District Milk Cooperative Union (better known as Amul)

expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat network now

covers 2.12 million farmers, 10,411 village level milk collection centers and fourteen district level

plants (unions) under the overall supervision of GCMMF.

There are similar federations in other states. Right from the beginning, there was recognition that this

initiative would directly benefit and transform small farmers and contribute to the development of

society.

Markets, then and even today, are primitive and poor in infrastructure. Amul and GCMMF

acknowledged that development and growth could not be left to market forces and that proactive

intervention was required. Two key requirements were identified.

The first, that sustained growth for the long term would depend on matching supply and

demand. It would need heavy investment in the simultaneous development of suppliers and

consumers.

Second, that effective management of the network and commercial viability would require

professional managers and technocrats.

To implement their vision while retaining their focus on farmers, a hierarchical network of

cooperatives was developed, which today forms the robust supply chain behind GCMMF’s endeavors

The vast and complex supply chain stretches from small suppliers to large fragmented markets.

Management of this network is made more complex by the fact that GCMMF is directly responsible

only for a small part of the chain, with a number of third party players (distributors, retailers and

logistics support providers) playing large roles.

Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low

consumer prices supported by a low cost system.

Introducing higher value products:

Beginning with liquid milk, GCMMF enhanced the product mix through the progressive addition of

higher value products while maintaining the desired growth in existing products.

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Despite competition in the high value dairy product segments from firms such as Hindustan Lever,

Nestle and Britannia, GCMMF ensures that the product mix and the sequence in which Amul

introduces its products is consistent with the core philosophy of providing milk at a basic, affordable

price.

Umbrella brand:

The network follows an umbrella branding strategy. Amul is the common brand for most product

categories produced by various unions: liquid milk, milk powders, butter, ghee, cheese, cocoa

products, sweets, ice-cream and condensed milk.

Amul's sub-brands include variants such as Amulspray, Amulspree, Amulya and Nutramul. The edible

oil products are grouped around Dhara and Lokdhara, mineral water is sold under the Jal Dhara brand

while fruit drinks bear the Safal name.

By insisting on an umbrella brand, GCMMF not only skillfully avoided inter-union conflicts but also

created an opportunity for the union members to cooperate in developing products.

Managing the supply chain:

Even though the cooperative was formed to bring together farmers, it was recognised that professional

managers and technocrats would be required to manage the network effectively and make it

commercially viable.

Coordination:

Given the large number of organizations and entities in the supply chain and decentralized

responsibility for various activities, effective coordination is critical for efficiency and cost control.

GCMMF and the unions play a major role in this process and jointly achieve the desired degree of

control.

Buy-in from the unions is assured as GCMMF’s board approves the plans. The board is drawn from

the heads of all the unions, and the boards of the unions comprise of farmers elected through village

societies, thereby creating a situation of interlocking control.

The federation handles the distribution of end products and coordination with retailers and the dealers.

The unions coordinate the supply side activities.

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These include monitoring milk collection contractors, the supply of animal feed and other supplies,

provision of veterinary services, and educational activities.

Managing third party service providers:

From the beginning, it was recognized that the unions' core activity lay in milk processing and the

production of dairy products. Accordingly, marketing efforts (including brand development) were

assumed by GCMMF. All other activities were entrusted to third parties. These include logistics of

milk collection, distribution of dairy products, sale of products through dealers and retail stores,

provision of animal feed, and veterinary services.

It is worth noting that a number of these third parties are not in the organized sector, and many are not

professionally managed with little regard for quality and service.

This is a particularly critical issue in the logistics and transport of a perishable commodity where there

are already weaknesses in the basic infrastructure.

Establishing best practices:

A key source of competitive advantage has been the enterprise's ability to continuously implement best

practices across all elements of the network: the federation, the unions, the village societies and the

distribution channel.

In developing these practices, the federation and the unions have adapted successful models from

around the world. It could be the implementation of small group activities or quality circles at the

federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the

village society level.

More important, the network has been able to regularly roll out improvement programs across to a

large number of members and the implementation rate is consistently high.

For example, every Friday, without fail, between 10.00 a.m. and 11.00 a.m., all employees of

GCMMF meet at the closest office, be it a department or a branch or a depot to discuss their various

quality concerns.

Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a process

check at the end to record how the meeting was conducted. Similar processes are in place at the village

societies, the unions and even at the wholesaler and C&F agent levels as well.

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Examples of benefits from recent initiatives include reduction in transportation time from the depots to

the wholesale dealers, improvement in ROI of wholesale dealers, implementation of Zero Stock Out

through improved availability of products at depots and also the implementation of Just-in-Time in

finance to reduce the float.

Kaizens at the unions have helped improve the quality of milk in terms of acidity and sour milk.

(Undertaken by multi-disciplined teams, Kaizens are highly focussed projects, reliant on a structured

approach based on data gathering and analysis.) For example, Sabar Union's records show a reduction

from 2.0% to 0.5% in the amount of sour milk/curd received at the union.

The most impressive aspect of this large-scale roll out is that improvement processes are turning the

village societies into individual improvement centers.

Technology and e-initiatives:

GCMMF's technology strategy is characterized by four distinct components: new products, process

technology, and complementary assets to enhance milk production and e-commerce.

Few dairies of the world have the wide variety of products produced by the GCMMF network. Village

societies are encouraged through subsidies to install chilling units. Automation in processing and

packaging areas is common, as is HACCP certification. Amul actively pursues developments in

embryo transfer and cattle breeding in order to improve cattle quality and increases in milk yields.

GCMMF was one of the first FMCG (fast-moving consumer goods) firms in India to employ Internet

technologies to implement B2C commerce.

Today customers can order a variety of products through the Internet and be assured of timely delivery

with cash payment upon receipt.

Another e-initiative underway is to provide farmers access to information relating to markets,

technology and best practices in the dairy industry through net enabled kiosks in the villages.

GCMMF has also implemented a Geographical Information System (GIS) at both ends of the supply

chain, i.e. milk collection as well as the marketing process.

Farmers now have better access to information on the output as well as support services while

providing a better planning tool to marketing personnel.

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Mascot:

The Amul baby

Since 1967 Amul products' mascot has been the very recognizable "Amul baby" (a chubby butter girl

usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the

equally recognizable tagline Utterly Butterly Delicious Amul. The mascot was first used for Amul

butter. But in recent years in a second wave of ad campaign for Amul products, she has also been used

for other product like ghee and milk.

Currently Amul is in the process of getting the Amul Girl registered as the oldest ad campaign in the

Guinness Book of World Records. Although there seems to be no competition for this mascot, Amul

Corporation is still doing further research to confirm their claim.

In Popular Culture:

The establishment of Amul is also known as The White Revolution. The White Revolution of India

inspired the notable Indian film-maker Shyam Benegal to base a movie on. The motion picture

Manthan was made during the late 1960s and early 1970s, and starred: Smita Patil, Girish Karnad,

Naseeruddin Shah, and Amrish Puri.

The White Revolution ushered an era of plenty from a measly amount of milk production and

distribution. Aside from the great measurable success that this project was, it also demonstrated the

power of "collective might". A small set of poor farmers of Kheda district in Gujarat had the vision

and foresight to act in a way that was good for the society and not for the self alone

4P’s of GCMMF LTD:

Product:

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. 42.78 billion in 2006-07). 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.

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Bread Spreads

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 Emmental Cheese

Amul Gouda Cheese

Milk Drinks:

Amul Kool

Amul Kool Cafe

Kool Koko A delight to Chocolate Lovers. Delicious Chocolate taste

Nutramul Energy Drink A drink for Kids - provides energy to suit the needs of growing Kids

Amul Kool Chocolate Milk

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack Amul Masti Spiced Buttermilk

Amul introduces the Best Thirst Quenching Drink

Powder Milk:

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Amul Spray Infant Milk Food

Still, Mother's Milk is Best for your baby

Amul Instant Full Cream Milk Powder

A dairy in your home

Sagar Skimmed Milk Powder which is especially useful for diet preparations or for use by

people on low calorie and high protein diet.

Sagar Tea Coffee Whitener

Amulya Dairy Whitener

The Richest, Purest Dairy Whitener

Fresh Milk:

Amul Fresh Milk this 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 Amul Lite Slim and Trim Milk Amul Fresh Cream Amul Shakti Toned Milk

For Cooking: Amul / Sagar Pure Ghee made from fresh cream. Has typical rich aroma and granular texture.

An ethnic product made by dairies with decades of experience.

Cooking Butter

Amul Malai Paneer

Ready to cook paneer to make your favourite recipes!

Utterly Delicious Pizza

Mithai Mate Sweetened Condensed Milk - Free flowing and smooth texture. White to creamy

color with a pleasant taste

Masti Dahi

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Desserts:

Amul Ice Creams Premium Ice Cream made in various varieties and flavours with dry fruits

and nuts.

Amul Shrikhand

A delicious treat, anytime

Amul Mithaee Gulab Jamuns Pure Khoya Gulab Jamums...best served piping hot.

Amul Chocolates The perfect gift for someone you love.

Amul Lassee

Amul Basundi

Health Drink:

Nutramul

(Malted 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

(Available in Kesar-Almond and Chocolate flavours).

Place (The distribution network):

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Amul products are available in over 500,000 retail outlets across India through its network of over

3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire

range of products.

GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque

system adopted by other major FMCG companies. This practice is consistent with GCMMF's

philosophy of maintaining cash transactions throughout the supply chain and it also minimizes

dumping.

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Water Flavored

Non-Alcoholic Alcoholic

Milk Hot Beverages

Juices Soft Drinks

Wine Beer Distilled spirit

Beverages

Beverage Industry:

Structure of Beverage Industry:

Water:

Despite the fact that most beverages, including juice, soft drinks, and carbonated drinks, have some

form of water in them; water itself is often not classified as a beverage, and the word beverage has

been recurrently defined as not referring to water.

Essential to the survival of all organisms, water has historically been an important and life-sustaining

drink to humans. Excluding fat, water composes approximately 70% of the human body by mass. It is

a crucial component of metabolic processes and serves as a solvent for many bodily solutes. Health

authorities have historically suggested at least eight glasses, eight fluid ounces each, of water per day

(64 fluid ounces, or 1.89 litres), and the British Dietetic Association recommends 1.8 litres. The

United States Environmental Protection Agency has determined that the average adult actually ingests

2.0 litres per day.

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Distilled (pure) water is rarely found in nature. Spring water, a natural resource from which much

bottled water comes, is generally imbued with minerals. Tap water, delivered by domestic water

systems in developed nations, refers to water piped to homes through a tap. All of these forms of water

are commonly drink, often purified through filtration.

Alcoholic beverages:

An alcoholic beverage is a drink containing ethanol, commonly known as alcohol, although in

chemistry the definition of an alcohol includes many other compounds. Alcoholic beverages, such as

wine and beer, have been part of human culture and development for 8,000 years.

Non-alcoholic Beverages:

Juice-

Orange juice

Juice is a liquid naturally contained in fruit or vegetable tissue. Juice is prepared by mechanically

squeezing or macerating fresh fruits or vegetables without the application of heat or solvents. For

example, orange juice is the liquid extract of the fruit of the orange tree. Juice may be prepared in the

home from fresh fruits and vegetables using variety of hand or electric juicers. Many commercial

juices are filtered to remove fiber or pulp, but high pulp fresh orange juice is marketed as an

alternative. Juice may be marketed in concentrate form, sometimes frozen, requiring the user to add

water to reconstitute the liquid back to its 'original state' (Generally, concentrates have a noticeably

different taste than their comparable "fresh-squeezed" versions). Other juices are reconstituted before

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packaging for retail sale. Common methods for preservation and processing of fruit juices include

canning, pasteurization, freezing, evaporation and spray drying.

Popular juices include but are not limited to apple, orange, grapefruit, pineapple, tomato, mango,

carrot, grape, cranberry and pomegranate. It has become increasingly popular to combine a variety of

fruits into single juice drinks.

Milk:

Milk is an opaque white liquid produced by the mammary glands of female mammals (including

monotremes). It provides the primary source of nutrition for newborns before they are able to digest

other types of food. The early lactation milk is known as colostrum, and carries the mother's antibodies

to the baby. It can reduce the risk of many diseases in the baby. The exact components of raw milk

varies by species, but it contains significant amounts of saturated fat, protein and calcium as well as

vitamin C.

Soft drinks:

The name "soft drink" specifies a lack of alcohol by way of contrast to the term "hard drink" and the

term "drink", the latter of which is nominally neutral but often carries connotations of alcoholic

content. Beverages like colas, sparkling water, iced tea, lemonade, squash, and fruit punch are among

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the most common types of soft drinks, while hot chocolate, hot tea, coffee, milk, tap water, alcohol,

and milkshakes do not fall into this classification. Many carbonated soft drinks are optionally available

in versions sweetened with sugars or with non-caloric sweeteners.

Hot beverages

A cup of coffee

Hot beverages, including infusions. Sometimes drunk chilled.

o Coffee-based beverages

Cappuccino

Coffee

Espresso

Café au lait

Frappé

Flavored coffees (mocha etc.)

Latte

o Hot chocolate

o Hot cider

Mulled cider

o Glühwein

o Tea-based beverages

Flavored teas (chai etc.)

Green tea

Pearl milk tea

Tea

o Herbal teas

o Roasted grain beverages (Postum etc.)

Other

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Some substances may either be called food or drink, or accordingly be eaten with a spoon or drunk,

depending on solid ingredients in it and on how thick it is, and on preference:

Soup

Yogurt

Soup

Soup is a food that is made by combining ingredients such as meat, vegetables or legumes in stock or

hot/boiling water, until the flavor is extracted, forming a broth.

Traditionally, soups are classified into two broad groups: clear soups and thick soups. The established

French classifications of clear soups are bouillon and consommé. Thick soups are classified depending

upon the type of thickening agent used: purées are vegetable soups thickened with starch; bisques are

made from puréed shellfish thickened with cream; cream soups are thickened with béchamel sauce;

and veloutés are thickened with eggs, butter and cream. Other ingredients commonly used to thicken

soups and broths include rice, flour, and grain.

Yoghurt

  

Cacık, a Turkish cold soup yoghurt variety.

Yoghurt or yogurt, less commonly yoghourt or yogourt (see spelling below), is a dairy product

produced by bacterial fermentation of milk. Fermentation of the milk sugar (lactose) produces lactic

acid, which acts on milk protein to give yoghurt its texture and its characteristic tang. Soy yogurt, a

dairy-yogurt alternative, is made from soy milk.

Beverages

With the domestic dairy sector slated to cross Rs 500,000 crore in revenues by 2011, milk seems to

have found flavor with FMCG majors. These companies are trying to develop niche categories to milk

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in the money.

Coca-Cola and PepsiCo have already announced plans to enter the milk-based beverages segment in

the country. Reliance Retail, which has entered the diary segment with Dairy Pure, its milk brand, may

also expand into niche categories. Industry observers believe that Bharti Retail may also be working

its way towards marking an entry into the dairyspace.

“Going by the changing preference of consumers for healthier options, this category is likely to grow

bigger in the coming years,” says Anand Shah, the retail and FMCG analyst at Angel Broking.

According Dairy India 2007 estimates, the current size of the Indian dairy sector is Rs 250,000 crore

and has been growing at a rate of 5 per cent a year.

At present, the Rs 500 crore ready-to-drink flavoured milk category makes up for the largest chunk of

the milk beverages market. The main players in the category include Indian dairy majors Gujarat

Cooperative Milk Marketing Federation (GCMMF) and Mother Dairy, along with Hershey, Nestle

India and Amrit Food.

GCMMF has a wide range of flavoured milk options under the Amul brand, which includes Amul

Cool, Kool Koko and Cool Cafe, while Mother Dairy has Chillz on the shelf in the category. Nestle

also introduced Milkmaid Funshakes last year.

“The liquid milk and allied products category continues to be our main focus since milk consumption

is very high in the country,” R Sodhi, chief general manager, GCMMF, said.

While Amul, with its health drink Stamina, is the only player in the whey-based drink category, lassi

has caught the fancy of many, leading to innovations like probiotic lassi. “Lassi is a very important

category in our overall dairy portfolio. We have been growing at a rate of 40 per cent in this category

over the last few years,” Paul Thachil, CEO, Mother Dairy Fruits & Vegetable, said.

When sales of carbonated soft drinks began to lose their fizz around the world, soft drink companies

entered the milk-based drink domain. Pepsi launched chocolate milk under the So Be brand and

Pepsi’s joint venture with Starbucks rolled out Frapuccino, a refrigerated milk coffee beverage. Coca-

Cola, on the other hand, partnered Nestle USA’s beverages division to develop Choglit, a skim milk-

based chocolate-flavoured drink.

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However, starting the milk beverage business may not be simple. “For a new dairy set-up, backward

integration would be the biggest challenge. Setting up procurement, processing and production lines

are time-consuming activities and a new company would need to invest significantly to achieve these

ends. A stable set-up can only be achieved over a period of 10 to 20 years,” Sodhi adds.

Beverage firms to flood market with health drinks

This summer, the beverages market will move a little more away from its carbonated drinks.

Stretching the health and wellness plank, beverage makers have lined up five-six new health drinks in

the coming months, more than in any other category.

Health drinks such as Ribena, Lucozade and X-35 Body fuel may soon become the household names,

as PepsiCo, Coca-Cola, Amul and Glaxo Smithk line are planning to introduce these drinks.

"The penetration levels of aerated drinks in India are quite low compared with other developing and

developed markets. Carbonates are expected to register relatively moderate volume and value growth

as consumers are increasingly opting for healthier beverages such as fruit juices and fruit-based drinks,

and even bottled water," said Harminder Sahni, managing director of Technopak Advisors, a retail

consultancy.

Thus, the Rs 7,200-crore carbonated drinks category are expected to face the heat of the rising

competition this summer from categories falling under the health umbrella. At present, these

categories are juice and juice-based drinks, energy and sports drinks, malted beverages, probiotic

drinks and bottled water.

PepsiCo India is eyeing a larger share of the Rs 1,200-crore juice and juice-based drinks market.

"These drinks are the fastest-growing category in the beverages market and over 50 per cent of the

volume is to come from the category this year," said Sanjiv Chadha, chief executive officer, PepsiCo

India.

The company is also planning to expand its juice drink Tropicana Twister in three more flavours this

year. It is also working towards increasing its share of the drinking water market.

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Coca-Cola too is widening its portfolio. "Our entire brand portfolio has been designed to satisfy the

various needs of the consumers -- be it hydration, energy, enjoyment or simply having fun. As part of

the same endeavor, we are exploring a wide variety of beverage opportunities such as juice and juice-

based drinks, energy and sports drinks, flavored water," said Atul Singh, president & CEO, Coca-Cola

India.

According to an industry analyst, the gross margin in the fruit beverages and the bottled

water categories are high, which is incentive enough for beverage makers to strengthen

their portfolios.

GlaxoSmithKline Consumer Health Care is tempted to enter the category. Zubair Ahmed, managing

director, said: "We plan to bring in Lucozade Sport for athletes and Ribena - a Vitamin C-based fruit

drink into the market soon. However, there are regulatory challenges at present and the stability of

products is to be tested."

Home-grown FMCG Company Dabur has launched a malted food drink, Chyawan Junior, and plans to

expand its Real juices and Real Twist portfolio.

Yakult Danone India is busy nurturing the newest kid on the beverage block, probiotic drinks. The

nascent category has already struck a chord with the Indian consumer to become a Rs 200-crore

market. Dairy companies such as Amul and Mother dairy too have entered this segment with probiotic

lassi.

Distribution Structure for dairy product:

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Distribution structure for Ice-Cream:

Customer

Retailer

Distributor

Company Depot

Member Union/(Manufacturer)

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Member union(Manufacturer)

Company Hub

Company Depot

Distributor

Retailer

Customer

All

India they have 45 sales Depot, 6 Zonal offices in Chennai, Bombay, Kolkata, Guwahati, Delhi,

Ahmedabad. Also 3500 distributors and more than 2, 50,000 retail outlets.

In Karnataka they have 2 sales Depot one in Dharwad (north) and one in Bangalore (south), these

comes under Chennai zonal office, and 115 distributors.

In North-Karnataka sales depot is in near Dharwad. They cover places from chitradurg to Bihar total

25 district. They have 62 distributors in north-Karnataka, in Hubli and Dharwad they have 2

distributors.

In Hubli – Narmada trading company

Ballari galli Hubli

In Dharwad- Shri veerbhadreshwar Marketing

Back side of vijaya theater Dharwad

Price:

At the time Amul was formed, consumers had limited purchasing power, and modest consumption

levels of milk and other dairy products. Thus Amul adopted a low-cost price strategy to make its

products affordable and attractive to consumers by guaranteeing them value for money.

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Promotional Activity:

Advertising

An Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in between

George Fernandes and Vajpayee.

Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting

jovially on the latest news or current events. The pun in her words has been popular. The Amul ads are

one of the longest running ads based on a theme, now vying for the Guinness records for being the

longest running ad campaign ever. Sylvester daCunha, was the managing director of the advertising

agency, ASP, that created the campaign in 1967 whose charm has endured fickle public opinion,

gimmickry and all else.

Competitors of Amul:

Amul has been able to withstand the onslaught of private and foreign players in the dairy industry and

has also been able to export products in limited quantities. The success of Amul resulted in similar

organizations being setup by state governments throughout India, most of which had reasonable

success. Examples are Milma in Kerala, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu ,K.M.F (

Nandini) in Karnataka, Sudha in Bihar and others.

Other co-operative rivals of Amul include National Dairy Development Board (NDDB) (with its

Mother Dairy and Sugam brands). With Amul entering the sports drink market, its rivals now

include Coca Cola and PepsiCo.

Sales Turn over:

Amul has recorded a 30% growth in turnover this year, despite stiff competition from multinational

companies and big domestic players in the milk and dairy business. Gujarat Cooperative Milk

Marketing Federation Ltd, which markets Amul products, is expecting a turnover of Rs 3,600 crore

during 2005-06 from Rs 2,900 crore last year. B M Vyas, Managing Director, talks to P N V Nair,

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Editor - Food & Beverage News, about Amul's expanding business outside Gujarat, its promotional

campaigns, its growth targets at home and abroad

Entertainment:

Books

The Amul India Story : Ruth Herediya

Management Kurien Style : MV Kamath

The Unfinished Dream : V Kurien

Feature Films

Sardar: The Iron Man of India : A film by Ketan Mehta

Manthan: A Film by Shyam Benegal

To view the movie click here.

Awards:

Ramkrishna Bajaj National Qality Award-2003

Amul - The Taste Of India (Gcmmf)Receives International Cio 100 Award For

Resourcefulness

Rajiv Gandhi National Quality Award - 1999

Amul Beverages:

Flavored milk Amul Kool, a low calorie thirst quenching drink, Masti Butter Milk; ready to drink

coffee - Kool Café and India's first sports drink Stamina. With these launches, the billion dollar

Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), Asia's largest integrated dairy

products manufacturing and marketing organization, is now a leading player in the Indian dairy

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beverages market with over 90% market share in branded packaged dairy drinks segment. The milk

based drink market has been showing a hefty double digit growth.

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product offeringt

in the milk products segment. Other Amul brands are Amul Kool, a low calorie thirst quenching drink;

Masti Butter Milk; Kool Cafe, ready to drink coffee and India's first sports drink Stamina.

The Indian soft drink market is worth about Rs 7,000 crores per annum. The soft drink market can be

broadly divided into two major segments - carbonated soft drink and non-carbonated soft drinks. The

carbonated soft drinks account for 85% of the total soft drink market. However the growth rate has

been stagnant and in fact declining over the past few years. The non-carbonated drinks category

includes special categories like fruit drinks, juices and milk drinks, etc. With the changing lifestyles

and increasing health concern, the growth in non-carbonated drink category has been much higher than

the carbonated category.

Ready-to-drink coffee from Amul

Anand , Nov. 6

Amul has now entered the branded ready-to-serve coffee market with the launch of Amul Kool Café

all over the country.

Made from pure milk and developed to suit Indian taste, Amul Kool Café will be available in drink

pack options of bottle, cartons and can. Priced at Rs 15 for a 200 ml disposable bottle/carton and Rs 20

for a 250 ml can, it provides value for money to consumers, the company said in a release here.

Amul Kool Café

Flavours: Coffee

Pack Size: 200ml Glass Bottle, 200ml Tetra Pack, 250ml Can

Ingredients : Toned Milk, Sugar & Coffee. Contains permitted Emulsifier and Stabiliser.

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Nutrition Facts:

Servingsize:200ml

Serving per pack : 1

Amount per serving: Energy 220 Calories

Energy from fat 99 Calories

* %Daily value

Total Fat 9.0 g 14.5

Protein 7.0g 14.0

Total Carbohydrates 24g 8.0

Calcium 240 mg 24.0

Vitamin A 252 IU 5.0

Not a significant source of Dietary Fiber, Vitamin C and Iron. . % Daily Values are based on a 2,000

calorie diet.

Amul Kool Café is targeted at Generation X, which is in search of a healthy beverage, which is also

tasty, trendy and nutritious. Amul also plans to launch Coffee Mocha, Coffee Sugar-Free and

decaffeinated flavours.

With this launch, the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), Asia's largest

integrated dairy products manufacturing and marketing organisation and the country's largest food

company, further consolidates its position in the beverage market.

The non-carbonated drink market has been showing a hefty double-digit growth since the last couple

of years. GCMMF is now a leading player in the Indian dairy beverage market with over 90 per cent

market share in branded, packaged dairy drinks segment.

In keeping with its goal of emerging as the single largest entity in the dairy beverage market, Amul

introduced low-calorie thirst quenching drinks and tasty Amul Masti Buttermilk in addition to Amul

Kool range of flavoured milk and also the country's first Sports and Energy drink, Stamina.

Amul launches chocolate milk Saturday, September 01, 2007:

Amul is all set to further consolidate its position in the beverages market with the introduction of

chocolate milk under brand name of Amul Kool Koko. Made from pure milk with addition of cocoa

solids, Amul Kool Koko, is targeted at teenagers and youth. This refreshing beverage is priced at Rs

15 for a 200ml disposable bottle, Rs 15 for a 200ml tetrapak, Rs 20 for a 250ml can and Rs 50 for 1lt

tetra pack, providing value for money to the consumers.

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Pack Size: 200ml Glass Bottle, 200ml Tetra Pack, 250ml Can

Ingredients: Double Toned Milk, Sugar, Cocoa Solids & Water. Contains Permitted Stabiliser and

artificial flavoring substances.

Nutrition Facts:

Serving Size: 250ml

Serving per pack: 1

Amount per serving: Energy 266 kcal

Energy from fat 55 kcal

* %Daily value

Total Fat 6.3 g 9.40

Saturated Fat 4.4g 22.6

Cholesterol, 7.8mg 2.5

Sodium 125.0 mg 6.0

Total Carbohydrates

42.5g13.8

Protein 9.4g 18.8

Calcium 400 mg 81.0

Not a significant source of Dietary Fibre, Vitamin C and Iron. . % Daily Values are based on a 2,000

calorie diet.

Amul has introduced a slew of milk-based drinks over the past few months. This has been done to

achieve its goal of emerging as the single largest entity in the beverages market. Launched recently,

Amul Kool Koko Chocolate Milk is the latest addition to the basket in 2007.

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Amul Kool

The nutritious and tasty flavoured milk in different flavor such as Kesar, Elaichi, Rose, Mango etc.

Flavours: Kesar, Elaichi, Rose, Mango, Strawberry

Pack Size: 200ml Glass Bottle, 200ml Tetra Pack, 250ml Can, 1 Litre Tetra Pack

Ingredients : Toned Milk and Sugar, Contains permitted synthetic Food Colours and added nature-

identical flavouring substances.

Nutramul Energy Milk:

Pack Size: 200ml Glass Bottle

Ingredients:

Toned Milk, Malt Extract, Cocoa Solids & Sugar.

Contains Permitted Natural Colour and added nature identical flavor.

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Nutrition Facts:

ServingSize:200ml

Serving per pack: 1

Amount per serving:

Energy 89 kcal / 100ml

Energy from fat 28 kcal / 100ml

* %Daily value

Total Fat 6.2 g 9.30

Saturated Fat 3.8g 19.5

Cholesterol, 0.0166g 5.2

Total Carbohydrates 24g 7.9

Protein 6.4g 12.8

Calcium 260 mg 52.8

Vitamin A 75.8 mcg 5.0

Not a significant source of Dietary Fibre, Vitamin C and Iron. . % Daily Values are based on a 2,000

calorie diet.

Amul Masti Spiced Buttermilk:

Product Details:

Product - Amul Masti Spiced Buttermilk

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Pack - 200ml Tetra Brik

MRP - Rs. 5.00

Ingredients -

Milk Solids, Common Salt, Spices and Condiments, Contains permitted stabilizer

Most importantly,

Unlike carbonated soft drinks, Amul Masti Spiced Buttermilk is 100% Natural and Sucrose

Free without any color or preservative added.

It is a low fat product with lower sodium salt content.

It contains protein with almost 50% lower calorie than soft drinks.

The spices and condiments added to the product enhance its taste and flavor.

Available in convenient and attractive, take-away tamper proof 200 ml Tetra Pak Brik with 120

days shelf life at ambient temperatures.

Presently available in India only.

8 Important Marketing Rules fallowed By Amul:

1. Never Underestimate the customer

2. Shatter the demand curve

3. Create a ladder of genuine benefits (technical, functional, emotional)

4. Escale innovate, elevate quality, deliver a flow less experience

5. Extend the price rang and positioning of the brand

6. Customize your value chain to deliver an the benefit ladder

7. Use influence marketing, seed your success through brand apposite

8. Continually attack the category like an outsider

Distribution Network

Distribution channels are probably the most visible aspect of any company’s marketing efforts. A

recent estimate puts the number of retail out lets in India at 5 million. The retail industry provides

livelihood to more than 15 million people in the country. If one included in this the number of

distributors, wholesalers, agents including the army of life insurance agents, transporters, warehouse

keepers, and all other entities involved in the distribution of products and services to the end

consumers.

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“Distribution channels are sets of interdependent organizations involved in the process of

making a product or service available for use or consumption”.

Distribution function is currently undergoing tremendous changes in terms of both its span and

productivity.

Intermediaries are required to smoothen the flow of goods and services by engaging themselves in

sorting function. The sorting function performed by the intermediaries includes

Breaking down a heterogeneous supply into separate stocks that are relatively homogeneous

called ‘sorting out’.

Bringing similar stocks from a number of sources together into a larger homogeneous supply

called ‘accumulation’.

Building up of an assortment of products for resale in association with eath other called

‘assorting’.

Distribution channel strategy:

The major domains across which distribution strategy is framed includes

Setting distribution objectives in terms of the customer requirements

Organizing the activities so that the responsibility of performing the activities is shared among

the entities that are meant to perform these activities

Developing policy guidelines for the smooth functioning of the channel on a day to day basis

In the wake of increasingly complicated supply chains, distribution network design plays a key role in

controlling the cost of doing business. And in a world of shrinking margins, controlling the cost of

doing business can be the factor that puts you ahead of your competitors.

Comparing the channel design:

The design would basically vary in terms of the components that constitute the logistical network as

well as the type of members who constitute the commercial network.

A firm channel consisting of distributors, wholesalers, and retailers. Once a few feasible and viable

designs have been generated, they have to be compared in terms of the following criteria to select the

most suitable.

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Effectiveness:

The effectiveness of a channel is measured by analyzing whether the objectives set for the channels

can be achieved. For instance, if one of the objectives includes zero waiting time, the effectiveness

criterion would look at whether this service objective can be achieved without fail by the channel

system.

Efficiency:

The efficiency criterion is concerned with the input expended for achieving the level of output. If two

channel designs deliver the same level of outputs but one channel design requires fewer inputs in

terms of logistical and other types of inputs, then the second channel design is deemed to be more

efficient.

Equity:

The principle of equity is very important. The constituents of a channel should be remunerated to the

extent of their participation in the channel. Also, the remuneration pattern should reflect the criticality

of each of the activities.

Scalability:

The fourth major consideration for comparing the channel design is the extent to which it is scalable.

If there is an unusual surge in demand, can the channel system handle it? This criterion becomes very

important in case of products where it is not very easy to forecast demand accurately if the channel can

increase its operation with the least effort.

Flexibility:

If the demand pattern changes or new products are introduced at frequent intervals will the channel

system be able to fulfill the resultant rapidly changing demand This assumes greater significance when

the firm is involved in marketing high-technology products where rapid innovation is always a

possibility.

Distribution Network Design Solutions:

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An optimal distribution network is intelligently designed to minimize costs by providing the customer

the right goods, in the right quantity, at the right place, and at right time. A tall order, right In most

organizations, controlling distribution costs involves striking a balance between warehousing and

transportation. While more distribution centers drives down the cost of transportation, the opposite

holds true as well. Tompkins distribution network design services attempt to answer questions like:

How many DCs should you have?

Where should they be located?

What should be the configuration and strategy of each DC?

Which group of customers should each DC service?

How will customers order from and how will each DC be replenished?

How should shipments be scheduled?

What should the service levels be?

Which transportation methods should be used?

Tompkins Associates pioneered the use of computers for modeling and analyzing distribution

networks. Nobody does it with the depth of understanding or attention to detail that we do. We choose

from an array of the best modeling tools to best suit each client's operation.

Understanding Distribution Network Design:

Because the volatile forces at play in the market today can cause a company's momentum to vanish

into thin air, we design into your distribution network the flexibility to adjust to changing market

conditions, including:

Geographic shifts in production and consumption

Market segmentation, new markets and new customer service requirements

Cost increases in energy, plant and equipment maintenance, and labor

Government regulation or deregulation

Product proliferation and product life cycle

Competitor adjustments

Events in the economy

Not only will we create the most demand-flexible, cost-effective distribution network, as a full-service

consulting and integration firm, we can build it for you and step you and your employees through the

transition to the new network. Tompkins can provide your firm everything from site selection and real

estate services to construction and integration services.

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Distribution Network Analyses:

Some of the analyses performed during a distribution network design project:

Demand Analysis

Transportation Analysis

Economic Analysis

Sensitivity Analysis

Alternatives Analysis

Model Validation

Need for the study:

My project is a small effort to understand the distribution channel and to know the demand of Amul

Beverages in Hubli and Dharwad city. This will help the company to concentrate on their loop holes.

The study will make to know the feelings and opinions of the retailer’s about the Amul Beverages.

Utility of the project:

To the company:

The project helps the company to identify its areas of improvements

It helps the company to rework its marketing strategies

It helps to know their effectiveness of distribution network

It helps to know their competitors in the market

To self:

This project enabled me to understand the beverage market, the present scenario, and the

different competitors with Amul beverages.

It also helped me to implement the theoretical aspects of study in to practical use.

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About the project

This project was undertaken in GCMMF LTD Dharwad, “To study the distribution channel and

Demand of Amul Beverages in Hubli, Dharwad city”.

Management Problem:

Improper distribution channel of Amul Beverages With respect to Hubli, Dharwad city

Research Problem:

“To know the distribution channel and Demand of Amul Beverages in Hubli, Dharwad city”.

Objectives:

To assess the Effectiveness of distribution channel of Amul Beverages in Hubli & Dharwad

city

To study the demand for the Amul Beverages against other beverages in Hubli & Dharwad

City

To analyze the view point of the retailer over the sale of Amul Beverages in Hubli and

Dharwad city.

Methodology:

Type of research:

This project report is done based on both exploratory and descriptive research.

Exploratory Research:

Exploratory research seeks to develop initial hunches or insights and to provide direction for any

further research needed. The primary purpose of exploratory research is to shed light on the nature of

the situation and identify any specific objectives or data needs to be addressed through additional

research .exploratory research is most useful when a decision maker wishes to better understand a

situation and /or identify decision alternatives.

Descriptive Research:

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Descriptive Research aim is to describe something. Specifically, its intended to generate data

describing the composition and characteristics of relevant groups of units such as a customers, sales

people, organizations, and market areas data collected through descriptive research can provide

valuable information about the study units along relevant characteristics and also about association

among those characteristic the fallowing examples illustrate the use of descriptive research in a

marketing context.

Type of data

Both primary data and secondary data was collected

Data Collection Method

Primary Data:

Primary Data was collected specifically for a research. The primary data was collected through

questionnaire method where in the questionnaire was designed to be structured & non-structured. A

systematic collection of information was done directly from respondents.

Secondary Data:

The secondary data such as actual amount spent, cost of production number of purchase indent etc

collected from annual reports, document and accounts maintained by company. Information required

for analysis and interpretation of data are gathered from articles in the professional journals internet,

by referring some standard books.

The first step in the data collection approach is to look for secondary data. Usually secondary data is

developed for some purpose other than for helping to solve the problem at hand.

In this survey the secondary data was collected through company guide and company website .

The collected data was processed by using SPSS.

Survey method:

The related data or information will obtain by personal administration through questionnaire i.e. personal survey

Sampling method:

The method use for survey is non-probability, convenience sampling method

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Number of field workers:

Survey will conduct by a single person (female)

Geographical Area: The survey will conduct in the geographical area of Hubli and Dharwad city.Population:

i)Extent: Hubli and Dharwad city

ii)Time : 4 months

Sampling Design:

Sampling Unit: Retailer

Sampling Method: non-probability, convenience sampling

Sampling Size: 100

Research instrument: Questionnaire

Sampling Area: Hubli and Dharwad city

Tools and Techniques of Data Collection

The above mentioned sampling units were interviewed personally i, e face to face interviews were

done.

Questionnaire was used for data collection from customers, in order to know “the distribution channel

and Demand of Amul Beverages in Hubli & Dharwad ”.

Data Analysis:

Type of outlet

Type of out let

Frequency PercentValid

Percent

Cumulative

Percent

bakery 50 50.0 50.0 50.0

super bazaar 2 2.0 2.0 52.0

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institution 22 22.0 22.0 74.0

cool drink shop 10 10.0 10.0 84.0

any other 16 16.0 16.0 100.0

Total 100 100.0 100.0

Place

Frequency PercentValid

PercentCumulative Percent

Dharwad 50 50.0 50.0 50.0

Hubli 50 50.0 50.0 100.0

Total 100 100.0 100.0

Interpretation:

As per the above table in 100 retailers 50 in Dharwad & 50 in Hubli, whom I met during survey out of

them

In Dharwad bakery-31 institution-5

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Cool drink shop-6 any other-8

In Hubli bakery-19 institution-17

Super bazzar-2 cool drink shop-4

Any other -8

Deal with Amul beverages

Deal with amul beveragesFrequen

cyPercent

Valid

Percent

Cumulative

Percent

Yes 53 53.0 53.0 53.0

No 47 47.0 47.0 100.0

Total 100 100.0 100.0

Interpretation:

As per above table in 100 respondents

53% of the retailers are dealing with Amul beverages

47% of the retailer are not dealing with Amul beverages

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Varity of Amul beverages

Interpretation:

As per graph

Amul kool is fast moving product in amul beverages

2nd is the amul kool café

3rd is the amul spiced butter milk

4th is the amul kool koko

Nutramul energy drink, amul kool chocolate milk, amul kool flavoured tetra pack are not

selling in outlet

Placing the order

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Placing order

Frequency PercentValid

Percent

Cumulative

Percent

Not

applicant47 47.0 47.0 47.0

once in

week22 22.0 22.0 69.0

Fortnightly 7 7.0 7.0 76.0

Monthly 1 1.0 1.0 77.0

whenever

required23 23.0 23.0 100.0

Total 100 100.0 100.0

Interpretation:

As per the above graph in 53 respondents

23% of the retailer placing the orde whenever they required

22% of the retailer placing the order once in week

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7% of the retailer placing the order fortnightly

1% of the retailer placing the order monthly

Order getting

Order gettingFrequency Percent Valid Percent Cumulative Percent

not

applicant47 47.0 47.0 47.0

next day

of order12 12.0 12.0 59.0

after 2

days25 25.0 25.0 84.0

more

than 2

days

16 16.0 16.0 100.0

Total 100 100.0 100.0

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Interpretation:

As per above graph in 53 respondents

25% of the retailer getting the order after 2days

16% of the retailer getting the order more than 2 days

12 % of the retailer getting the order next day of the order

Monthly sales of Amul beverages (no of pack per month)

Type of out let Monthly sales(no of pack per

month)

Bakery 85

Super Bazaar 9

Institution 30

Cool drink shop 10

Any other 4

Interpretation:

As per above graph shows that

Bakery is selling highest monthly 85 packs

2nd is the institution 30 packs

3rd is the cool drink shop 10 packs

4th is the super bazaar 9 packs

Last is the janaral stores, juice centre,sweet mart 4 packs

Discounts/schemes

Discounts/scheme

Frequency PercentValid

PercentCumulative Percent

Not 47 47.0 47.0 47.0

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applicant

Yes 3 3.0 3.0 50.0

No 50 50.0 50.0 100.0

Total 100 100.0 100.0

Interpretation:

As per above graph in 53 respondents

53 % of the retailers are not getting any discounts/shemes

Only 3% of the retailer getting discounts/schemes

Influence factor

Influence factor

Frequency PercentValid

PercentCumulative Percent

not

applicant47 47.0 47.0 47.0

brand 4 4.0 4.0 51.0

quality 28 28.0 28.0 79.0

demand 20 20.0 20.0 99.0

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Availabili

ty1 1.0 1.0 100.0

Total 100 100.0 100.0

Interpretation:

As per above graph in 53 respondents

28 % of the retailers are selling because of quality

20 % of the retailers are selling because of demand for the product

4% of the retailer are selling because of brand image

Only 1% of the retailer selling because of availability.

Criteria for selling Amul beverages in your shop

Quality margin Volume sold

Supply Brand Credit facility

Demand Complaint handling

383 195 192 211 357 152 355 571 5 6 4 2 7 3 8

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Interpretation:As per above graph

Retailers are consider 1st quality

Retailers are consider 2nd as demand

Retailers are consider 3rd as brand

Retailer are consider 4th as supply

5th is the margin

6th is the volume sold

7th is the credit facility

8th is the complaint handling

Reason for not selling Amul beverages in your shop

Reason for not selling Amul beverages

Frequency PercentValid

PercentCumulative Percent

Not

applicant53 53.0 53.0 53.0

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Non

availability12 12.0 12.0 65.0

low margin 5 5.0 5.0 70.0

no demand 7 7.0 7.0 77.0

No

discounts/sc

heme

3 3.0 3.0 80.0

Interpretation:

As per above graph in 47 %of the respondents

1. 20% retailers are not selling amul beverages because of distributor did not approach them

2. 12%of the retailers are not selling because of non-availability of the product

3. 7%of the retailers are not selling because of no demand for the product

4. 5% of the retailers are not selling because of no discounts/ schemes

5. 3% of the retailers are not selling because of low margin

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Findings:

1. In 100 respondents 50 are from Dharwad and 50 are from Hubli, in that

a. In Dharwad Bakery-31 Institution-5

Cool drink shop-6 any other-8

b. In Hubli Bakery-19 Institution-17

Super bazzar-2 Cool drink shop-4

Any other -8

2. 53% of the retailers are dealing with Amul beverages and 47% of the retailers are not dealing

with Amul beverages.

3. Amul kool is fast moving product in amul beverages, 2nd is the amul kool café, 3rd is the amul

spiced butter milk, 4th is the amul kool koko, and others like Nutramul energy drink, amul kool

chocolate milk, amul kool flavoured bottled milk, amul kool flavoured tetra pack are not

selling here

4. In 53% of the respondents 23% of the retailers placing the order whenever they required, 22%

of the retailers placing the order once in week , 7% of the retailer placing the order

fortnightly ,and 1% of the retailer placing the order monthly

5. In 53% of the respondents 25% of the retailer getting the order after 2days, 16% of the retailer

getting the order more than 2 days, 12% of the retailer getting the order next day of the order it

shows the there is delay in supply

6. Bakery’s are selling highest, monthly 85 pack, institution 30 packs, cool drink shop 10 packs,

super bazaar 9 packs, and janaral stores, juice Centre, sweet mart 4 packs per month.

7. Out of 100respondents, 53% of the retail respondents dealing with amul beverages, in that 50%

of the retailers are not getting any discounts/schemes, only 3% of the retailers told that they

were getting discounts/schemes

8. 53 % of the retail respondents dealing with amul beverages, in that 28 % of the retailers are

selling amul beverages because of quality , 20% of the retailers are selling because of demand

for the product , 4 % of the retailer are selling because of brand image, only 1 % of the retailer

selling because of availability

9. According to view point of the retailers they consider the volume sold is in 6th position

10. In 47% of the respondents , 20% retailers are not selling amul beverages because of

distributor did not approach them, 12% of the retailers are not selling because of non

availability of the product, 7% of the retailers are not selling because of no demand for the

product , 5 % of the retailers are not selling because of no discounts/ schemes , 3 % of the

retailers are not selling because of low margin

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Recommendations:

1. 47%of the retailers not dealing with Amul Beverages in that 12 %of the retailers complain

delay in supply; it delays in delivery of the product on time because of distributor. This should

be avoided. So company has to tell the distributor to increase the man power/vehicle or else

appoint other distributor.

2. 8% of the retailers are not dealing with the Amul Beverages because of schemes/discounts, so

company has to give schemes/discounts.

3. Company has to handle the retailer’s problem like replacement of the damaged product

because it becomes inevitable when competitors are doing the same without any hassles. So it

will help the company to build the strong relationship with the retailers.

4. 20% of the retailers are not dealing with the Amul Beverages because of distributors did not

approach them. But there is demand for the product so any company officials should see to it

that the distributor approach the retailer and also company has to conduct market survey for

retail outlet.

Limitations:

Time duration is very less to study the organization

Survey is limited to only Hubli & Dharwad cities

The response of the respondents are sometimes biased

The sample size taken for the study was very small compared to the huge population of the

cities and hence was not fully representing the city.

Conclusion:

After going through detailed study, I come to the conclusion that compared to the distribution network of other brand of beverages to the Amul, it has to improve their network properly and make product available to the customer and also handle the customer problem if any. Company has to maintain a good relationship with the retailers by giving better margin, schemes/discounts.