Amul Final Project Report
Amul Final Project Report
This project was undertaken with the objective of PROMOSATIONAL STRATEGY OF AMUL INDIA Ltd. AND ITS EFFECT ON CUSTOMER SATISAFACTION. It also looked into the different factor promotional activity to the product in the retail outlets. The study was conducted at Amul India Ltd, Gondia district. The retailers preference was studied through using questionnaire. A sample size of 60 respondents was taken for the study, whose responses were studied and interpreted .The sampling design was used convenience sampling. This topic provides me the detailed practical knowledge and its applications of marketing strategy. Finally the whole study of the research work, the company needs the effective advertisement of the product in the local channel and print media for awareness of Amul product.
Our world today is characterized by the promotion. Every day when we open the newspaper or see view on T.V. channels we are bombarded with the advertisements. Just look at the prized sponsored by several firms at the end of well known television programmed like Airtel desh ki awaj, Dus ka Dum, Indian Idol on Sony, etc.
Channels it isnt the prized on the television to attract the customers it may have discount coupons, gifts and several similar incentives program creatively designed by marketer that draws the customers brain in the organization. Promotional activity is one of the most loosely used terms in marketing but in beverages companies it use separate. Sales promotion consist short term incentives to encourage purchase and sales or services The project delves into the workings from the distribution aspect of an FMCG organization in detail. AMUL, being an FMCG company, attaches a lot of significance to the distribution aspect of its business. The distribution channel of AMUL holds a lot of potential in affecting the demand or sales of AMUL products through delivery on time, delivery of variety of products, the retailer-friendliness of the policies being set by the distributors and equitable distribution of products to all the retail outlets in a particular region, to name a few. Addition to this we carried out sales promotion activity through discount coupons. Sales promotion consists of diverse collection of incentive tools, most shortterm designed to stimulate and/or greater purchase of a particular product by consumers or the trade. Whereas advertise offers a reason to buy, sales promotion offers incentive to buy. Sales promotion includes tools for consumer promotion (for example samples, coupons, prizes, cash refund, warranties, demonstrations, contest); trade promotion (for example buying allowance, free goods, merchandise allowances, co-operative advertising, advertising and display allowances, dealer sales contests); sales force promotion (for example bonuses, contests, sales rallies).
NEED OF STUDY:
Managers are always curious about the position of their companys products in the market which largely depend upon the companys goodwill, and the position of their brand. In order to maximize the sale and profit, company must deliver outstanding satisfaction to the retailers, wholesaler & customers. So market survey of retailers,
wholesalers & customers, chart out the position of the company as compared to the competitors. It helps the organization to find out the brand being sold most by the retailers along with their stocking and also consumer buying preferences.
OBJECTIVES:
1) To study about the Amul company sales promotional strategy in Gondia district. 2) To study about the awareness of amul product among the people in Gondia district.
3) To know the factors which affects consumers buying behavior to the purchase Amul Product. 4) To analyze the promotional activity and its effect on customer product buying decision.
1. The scope of the study is limited only in Gondia district. 2. This project for increasing Sale and Finding the market for Amul product. 3. There is a study to increase in consumers and retailers expectation.
4. This project will lead to necessary insight and requisite data to accomplish the preceding motive.
HYPOTHESIS:
Hypothesis is a preliminary or tentative explanation or postulate by the researcher of what the researcher considers the outcome of an investigation will be. It indicates the expectations of the researcher regarding certain variables. It is the most specific way in which an answer to a problem can be stated. 10
It offers explanations for the relationships between those variables that can be empirically tested. Promotional activity used by Amul co. leads into No.1 position in Gondia region.
Company profile:
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In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. This union selected the brand name AMUL in 1955.
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The brand name Amul means AMULYA. This word derived form the Sanskrit word AMULYA which means PRICELESS. A quality control expert in Anand had suggested the brand name AMUL. 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. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the 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 (Generally known as ANAND PATTERN). In the early 40s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word.
However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a cooperative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri
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Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk. These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand.
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Gujarat
Cooperative
Milk
Marketing
Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. 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, former chairman of the GCMMF, is recognised as the man behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected chairman of GCMMF.
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ACHIEVEMENT:
Amul :Asias largest dairy co-operative was created way back in1946 to make the milk producer self-reliant and conduct milk- business with pride. Amul has always been the trend setter in bringing and adapting the most modern technology to door steps to rural farmers.
Amul in abroad:
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Amul is going places. Literally. After having established its presence in China, Mauritius and Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), Indias largest milk cooperative, is waiting to flood the Japanese market. Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products are already available on shelves across several countries, including the US, China, Australia, West Asian countries and Africa. GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.
Managing Competition:
The Indian market is dominated by a large number of small local and regional players. There are an estimated 150 manufacturers in the organized segment, which accounts for 30-35% of sales and about 1000 units in the unorganized segments of the market. In the organized segment the significant brands are Kwality Walls , Vadilal, Amul, Havmor, Mother dairy and Baskins & Robbins. GCMMF is facing very tough competition from both in and outside India. Amul combats competition from its competitors by providing quality products at a price which its customers value. Along with good quality products and reasonable price the packaging is also very good. Most of its products are available in many flavors. Excellent advertising backs its products and helps GCMMF (AMUL) to leave its competitors a tough time. Also Amul has come out with Amul Parlours to cater to various segments of customers. Amul has a very strong Brand Image in the Domestic market. Many products are exported by GCMMF.
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Sales Turnover:
Sales turn over of GCMMF from 1994 to 2009:-
Bread spreads
Amul Amul Amul
Cheese Range
Amul Amul Amul Amul Amul Amul Amul
Pasteurized Processed Cheddar Cheese Processed Cheese Spread Pizza (Mozarella) Cheese
Shredded Pizza Cheese Emmental Cheese Gouda Cheese Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned Utterly Delicious Pizza
Almond
Pistachio, Cardamom)
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Shakti 3% fat Milk Taaza 1.5% fat Milk Gold 4.5% fat Milk Lite Slim-n-Trim Milk 0% fat milk Shakti Toned Milk Fresh Cream
Milk Powders
Amul
Full Cream Milk Powder Dairy Whitener Skimmed Milk Powder Tea and Coffee Whitener
Fresh Milk
Amul Amul Amul
Taaza Toned Milk 3% fat Gold Full Cream Milk 6% fat Shakti Standardized Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% Saathi Skimmed Milk 0% fat
fat
Amul
Curd Products
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Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti) Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar
Nut-o-Mania
Range (Anjir, Roasted Almond) Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate) Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black
Simply
Nature's
Currant)
Sundae
Range (Mango, Black Currant, Chocolate, Strawberry) Ice cream (Cheese with Almonds, Dates with Honey)
Millennium Milk
Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi) Candies (Orange, Mango) Cones (Butterscotch, Chocolate) Almond Cone
Cool
Cassatta Tricone
PLANTS:
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk butter etc.
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Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite.
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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 Union Limited).
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The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity. It is a dairy cooperative movement in India. It is a brand name 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[1]. 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 one of the largest milk producers in the world. It is also the world's biggest vegetarian cheese brand [2]. Amul's product range includes milk powders, milk, butter, ghee, cheese, 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 [3].
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A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisations promotional strategy can consist of:
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Advertising:
Is any non personal paid form of communication using any form of mass media?
SCHEDULE A
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PARTICULARS Mascot (Mooh) Television Advertisements Radio Jingles Banners and Hoardings Print Advertisements (Newspapers) Print Advertisements(Magazines) World Cup Promotional Activity Payment to brand ambassador
Rate 100/da y
Total Cost 10,000 90,000 6,045.45 58,000 60,000 45,500 -Nil 3,50,000
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A pull strategy is based around the manufacturer promoting their product amongst the target market to create demand. Consumers pull the product through the distribution channel forcing the wholesaler and retailer to stock it, hence the name pull strategy. Organisations tend to use both push and pull strategies to create demand from retailers and consumers.
ADVERTISING STRATEGY:
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Emotional touch:
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
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product wrappers with the equally recognizable tagline Utterly Butterly Delicious Amul. Through this Amul baby Amul creates emotional touch with consumers.
Ex- an Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in between George Fernandez and Vajpayee.
Operation Flood
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The Amul started project called Operation Flood (OF), with all the subsidiary cooperatives of NDDB, meant to create a flood of milk in India's villages with funds mobilized from foreign food donations. Under the operation flood Amul and other subsidiaries of NDDB introduced an advertisement for attracting the people towards milk that is known as Wonderful Doodh. It got great success in the market. Due to this add, the demand of the milk got doubled and also its effects on the sales of other brand competitors like as Pepsi, coca cola etc.
Present Scenario:
Amul is targeting export turnover of Rs 150 crore and expects milk product sales to rise in overseas market such as west Asia, US and Sri Lanka. Amul added 900 distributers across small town to expend their reach. Amul is also applying following activities to expand their market:
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Amul is advertising his products through press advertisement, radios, boarding and cable TV
Amul started printing its logo on home delivery bags, T-shirts, caps, umbrellas. Amul is organizing many competitions in different institute & distributing gifts with its logo to aware the consumers.
RESEARCH METHODOLOGY:
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The methodology that was adopted for the study includes both primary source of data as well as the secondary source of data. The methodology of the study can be explained as follows:
PRIMARY DATA:
The primary data are those which are collected afresh and for the first time, and thus happens to be original in character. We can obtain primary data either through observation or through direct communication with respondents in one form or another or through personal interview. There are several methods of collecting primary data, but in this research work primary data collected by using questionnaire.
SECONDARY DATA:
Secondary data means data that are already available i.e. they refer to the data which have been already been collected and analyzed by someone else. When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them. Secondary data may either be published data or unpublished data. In this research work, secondary data collected through the
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The source of information is generally classified as primary and secondary. According to payline V. Young The source of information can be classified into documentary sources and field sources.
a) Primary data:The information given / collection by individuals or group constitute primary source.
b) Secondary data:
Books, diary, manscrupt, letter, magazine, internet etc. are the secondary or documentary source. The researcher for this dissertation has decided to use primary source as interview schedule and secondary source as books and internet for data collection.
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Pre-study:
After careful study of literature and expert consultation the researcher still may have only a rather vague idea about the critical element in his problem. As pilot study sometimes may be launched as a step preliminary to the form scale before original study are carried out in order to gain some preliminary information of the main project for this purpose the researcher meet companys personal manager to get the pre knowledge of the subject before conduction actual data collection.
Pretesting: -
Pretesting is the process of an advance testing of study design after the interview schedule has been prepared .The researcher referred books and internet to get prepared literature for this project & report.
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Processing:-
Once the collection of data is over the main step top arranged for p[rocessing and analysis of data. So the interview can be made resulting information theories. The first step is editing, is a process of examining the data collection in interview schedule to defect efforts and mission and to see that they are corrected and the schedules prepared tabulations.
Editing:
The preparation of the data forms for tabulations must include on operational procedure for accepting, modifying or resection individual questionnaire.
Tabulation:
Tabulation is a process of summarizing raw and display it in compact forms for further analysis. Analysis of data is made possible through tables. These tables are made for different variables and to show relationship with each other.
Interpretation of data:Analysis and interpretation are central step in research process. The goal of analysis is to summarize o collected data in such a way that they provide answer to the and triggered the researcher. Interpretation is the research for the broader meaning of research finding. The questionnaire is precoded a few uncoded response are classified the code were verified before transferred to the master chart.
INFERENCE
94% of respondent are aware of presence of Amul milk in city Print Media, TVC and Word of mouth act as major source of awareness Wall painting act as effective medium for awareness
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INFERENCE
Amul is considered as 1st choice by House wifes while others consider Saras
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INTERPRETATION: The question asked to the retailers where the Amul milk is being sale, and tried to collect feedback of customers about Amul milk. More customers were having complaints about the clear date of packaging and availability. Some customers were not happy with quality of milk.
% analysis for the type of adds for the new AMUL milk TVC?
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INTERPRETATION: The above graph indicates that only 32% of the customers are purchasing Amul milk. It shows that Amul milk brand is not popular among the customers.
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INTERPRETATION:
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From the above graph it can be concluded that QUALITY: Most of the customers were satisfied with Amul milk quality. BRAND IMAGE: The graph shows that Amul is having good brand image. AVAILABILITY: Most of the customers were satisfied with the Amul milk distribution. PACKAGING DATE: Most of the customers were not satisfied about not printing of packaging date and they were facing a problem regarding same. PRICE: Some customers were not satisfied with the price given by A
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Preferance
INTERPRETATION:
1. From the above chart we can find that preference of the customer occasionally is highest percentage.
LIMITATIONS:-
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This report had to work under several constraints and limitations. Some of the key limitation is. . 1. The survey is limited only for Gondia region
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2. Time period of the project was limited which may not be enough to understand the whole market. 3. Convenient sampling was used as the mode of conducting the research. 4. The psychology and temperament of a respondent play a significant role. Some respondents are more sensitive as against others who are more tolerant. A change in the composition of the respondents can affect the answers adversely or favourably. 6. Respondents may not have been true in answering various questions and may be biased certain other questions.
CONCLUSION:-
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Amul means different things to different people. To a milk producer A life enriching experience
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To a consumer Assurance of having wholesome milk To a mother A reliable source of nourishment for her child To the country Rural development and self reliance As we know that Amul is very big organization and market leader in dairy products. It has maximum market share in Milk, Butter, Cheese & Ice-Cream which are its main/core products. But in case of local market like Gondia the Amul milk is not a popular product as compared to other Amul Products. With the help of research, company can find out its week points in Milk product and can increase its market share through rectify mistakes. People have believed in Amuls product and they will accept it also if effective actions were taken.
SUGGESTION:
Supply of products must be regular.
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Credit facility should be made available. Replacement facility must be there. Margin provided to retailer should be satisfactory. All the required products must be available on time.
Attention must be paid to small retailer.
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ANNEXURE
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1. Name of the Outlet 2. Location of the Outlet 3. Type of Outlet a) Convenience Store
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b) Eatery
c) Grocery
4. How long have you been into the business? a) Less than 1 year b) 1 to 3 years c) Greater than 3 year
6. Which kind of amul product is mostly sale/like? 1) Kulfi 2) Family pack 3) Bar cones 4) Small and large cup 5) other 7. How many units do you sell of the following brands daily? 1) Amul 3) Both 2) dinshaws 4) Others
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1) Yes
2) No
3) Not Applicable
10. Does the effectiveness of the distribution channel influence your stocking decision? 1) Yes 2) No
11. Which factors given below influence your stocking decision? Rank on a scale of (1-4) the options given below, where 1 is the most important & 4 is the least important. a) Packaging ________ b) Promotional effectiveness of the company________ c) Offers _______ d) Consumers preference ________
12. Which Kind of offer gives the company to boost the sell?
1) Discount 3) Free goods 2) Coupon 4) other
QUESTIONNAIRE
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CUSTOMER SATISFACTION SURVEY This research work is a study to measure how well the AMUL INDUSTRIES Pvt. Ltd. INDIA - (IN GONDIA DISTRICT) is meeting your needs and know what needs to be improved to increase customer satisfaction. 1) Name of consumer 2) Age 3) Gender 4) Qualification 5) Salary 6) Adders : _____________________________________ : _____________________________________ Male Female
7) Which of the following indicate your type of employment? Public employment Private employment Self-employment Student Unemployed 8) Which of the dairy product you prefer? Amul Top N Town Dinshaws Other
9) Medium of Awareness for Amul Milk Brand? Print Media TVC Word of Mouth Wall painting Hoarding
10) % of medium of awareness for the respondents aware of new Amul product advertisement?
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TV Publicity 11) When you use the Amul product? Occasionally Seasonal
12) Why you are prefer that particular company product? . Test Price Test& Price
BIBLIOGRAPHY
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Books:
i. Marketing Management (12th Edition) Philip Kotlar ii. Research Methodology C. R. Kothari
Websites:
i. www.google.co.in ii. www.wikipedia.com iii. www.amul.com. iv. www.marketresearch.com
v. www.dairy.com
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