A Study On The Impact of Marketing Strategies Implemneted To Increase Sales of Amul Pouch Dahi
A Study On The Impact of Marketing Strategies Implemneted To Increase Sales of Amul Pouch Dahi
FOR
Amul (G.C.M.M.F)
BY
MUMBAI –400092
1
2
3
A PROJECT REPORT ON AMUL MASTI DAHI
FOR
Amul (G.C.M.M.F)
BY
MUMBAI –400092
4
INTERNSHIP CERTIFICATE GIVEN BY THE COMPANY
5
CERTIFICATE
This is to certify that the project work titled “A study on the impact of marketing strategies
implemented to increase the sales of Amul Masti Dahi in Mumbai” is a summer
internship work carried out by Mr. Mihir Dedhia during 2017
The project was completed for Amul (G.C.M.M.F), under the guidance of Mr. Tejas
Ramnathkar
Project Guide
6
DECLARATION
I, Mr. Mihir Dedhia, student of Aditya Institute of Management Studies and Research, MMS
(Semester III) hereby declare that I have completed the summer internship project on “A
study on the impact of marketing strategies implemented to increase the sales of Amul
Masti Dahi in Mumbai” with Amul (G.C.M.M.F) in the Academic year 2017-2018. The
information submitted is true & original to the best of my knowledge. I further state that the
said work has not been submitted in the part or in full, to any other University.
Date: ______________
Signature
Course: MMS
Specialization: Marketing
Roll. No: 17
7
ACKNOWLEDGEMENT
I would like to thank G.C.M.M.F and Aditya Institute of Management studies and Research for
giving me an opportunity to learn and pursue my Summer Internship and understand about
Marketing Research aspects.
I would like to thank and express my sincere gratitude to Mr. Tejas Ramnathkar. His constant
encouragement, valuable insights and attention to detail had made this exercise, a great learning
experience.
I am also thankful to Mr. Prakash Aute who contributed his valuable time and gave valuable insights
during the development of the project.
I am also thankful to (Director, Aditya Institute of Management Studies and Research) and my
institution, for giving me an opportunity to undergo this learning experience
Special thanks to Prof. Dipti Amburle for his valuable guidance in completing this project tand
helping me to understand this project better and supporting me with his/her expertise on the same to
make my project worth for my own benefit and also for the overall benefit of the objective of the
summer project.
Last but not the least; I take pride in thanking my family, siblings and friends for their much valued
support.
8
Table of Content
2 Introduction
Research Background 2
Details of your Company 2
Details about your specific Industry 4
6 Review of Literature 9
7 Research Methodology 13
Type of Research Design
Sources of Data (Primary and Secondary)
Type of Sampling
Sample Size
9 Strategy Formulation 22
10 Implementation Of Strategy 28
11 Summary of Findings 30
12 Suggestion/Conclusion 32
13 Limitations 34
14 Bibliography 35
15 Annexure 37
9
1. Executive Summary
This project was to study the impact of marketing strategies on sales of Amul pouch dahi in
Mumbai market
An expert interview was conducted with Mr Prakash Aute (ZIC- Milk); wherein the potential
of Mumbai milk market was drawn to 60 LLPD (based on PCC of 300ML), they informed
that the current milk market share is divided in 50% brand and 50% loose; wherein Amul has
a sale of 15LLPD. Potential of fresh dahi was calculated 1400 MTPD (based on PCC of
7grams); the market is divided in 3% branded while 97% loose.
A FGD was conducted to study the consumer perception towards dahi and it was found that
price was considered to be the important factor motivating the purchase of dahi. It was also
observed that the awareness of Amul masti dahi in Pouch was low amongst the respondents.
Retail survey was conducted at 932 retail outlets in South Mumbai and it was found that
Amul Milk enjoys a market share of 29% in overall market while 43% within the branded
milk segment with penetration of 68% within the milk selling outlets and Gokul is their major
competitor. Market share of Amul masti dahi is 11% overall whereas 59% within the branded
dahi segment.
Based on the findings from the initial data; marketing strategies were designed and suggested
to the company; of the suggested strategies an BTL activity was conducted targeting to
increase awareness of pouch dahi amongst consumers and using the SPSS paired T-Test on
the data collected from the survey; it was concluded that there was a significant impact of
marketing strategies on sales of Amul masti dahi in pouch.
10
2. Introduction
Research Background
It has been 17 years since Amul had launched Masti Dahi in cup variant and 7 years for the
pouch variant. But still this product has not capture the market like its other products.
Branded Dahi market of Mumbai is 3% from which the market share of masti dahi is 1.5%.
The remaining 97% is loose. Inorder to gain its foothold in the dahi market it needs to target
the loose dahi market consumer.
About Amul
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. Amul was
formed due to a retaliation by the farmers of Kaira district against Polson for the unfair trade
practices followed by him. The revolution was headed by Tribhuvandas Patel under the
guidance of Sir Vallab Bhai Patel against Polson. Sir Patel saw that there was a need to create
a milk cooperative to exclude the middle men in the process of selling milk to Bombay. For
this they started a revolution against Polson and stopped providing milk to it. Soon Polson
was kick out of Gujarat and a Kaira District Milk Union Limited was born in 1946. The
Cooperative was further developed and managed by Dr.Verghese Kurien along with Mr.H.M
Dalaya. Dr. Kurien, a World Food Prize and Magsaysay Award winner, was the pioneer of
this White Revolution. The first modern dairy of the Kaira Union was established at Anand.
Indigenous research and developmented technology development at the Cooperative handled
to the successful production of skimmed milk powder from buffalo milk for the first time on
a commercial scale anywhere in the world. The success of the dairy co-operative movement
spread rapidly in Gujarat. In order to combine forces and expand the market while saving on
advertising and avoid a situation where milk cooperatives would compete against each other
it was decided to setup an apex marketing body of dairy cooperative unions in Gujarat. Thus,
in 1973, the Gujarat Co-operative Milk Marketing Federation was established. The Kaira
District Co-operative Milk Producer’s Union Ltd. Which had established the brand name
Amul in 1955 decided to hand over the brand name to GCMMF (AMUL). Impressed with the
development of dairy cooperatives in Kaira District and its success, Lal Bahadur Shastri, then
Prime Minister of India during his visit to Anand in 1964, asked Dr.Kurien to replicate the
Anand type dairy cooperatives all over India. Thus, the National Dairy Developed Board was
formed and Operation Flood Programme was launched for replication of the Amul Model all
over India.
11
About G.C.M.M.F
GCMMF was established in the year 1973. It is India's largest food product marketing
organization with annual turnover (2016-17) US$ 4.1 billion. Its daily milk procurement is
approx. 18 million lit per day from 18,700 village milk cooperative societies, 18 member
unions covering 33 districts, and 3.6 million milk producer members. It is the Apex
organization of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL', 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 is India's largest exporter of Dairy Products. It has been accorded a "Trading
House" status. Many of our products are available in USA, Gulf Countries, Singapore, The
Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from
Government of India for Excellence in Dairy Product Exports for the last 16 years. For the
year 2009-10, GCMMF has been awarded "Golden Trophy" for its outstanding export
performance and contribution in dairy products sector by APEDA. In 2013-14, GCMMF took
giant strides in expanding its presence in International markets. Amul’s presence on Global
Dairy Trade (GDT) platform in which only the top six dairy players of the world sell their
products, has earned respect and recognition across the world. By selling milk powders on
GDT, GCMMF could not only realize better prices as per market demand but it also firmly
established Amul in the league of top dairy players in world trade.
At present the Indian Dairy Industry is the highest milk producer in the world and also the
fastest milk producing country. Dairy industry plays a dynamic role in India's agro-based
economy. The Industry contributes about 115,970 crores to the national economy. The dairy
industry involves processing raw milk into products such as consumer milk, butter, cheese,
yogurt, condensed milk, skimmed milk powder and ice cream, using processes such as
chilling, pasteurization, and homogenization.
In the year 1998 India became the world leading milk producer country by surpassing US. In
2006 it crossed the mark of 100 million tonnes of milk production which represented 15% of
world milk produced. All the success of the dairy industry must be credited to Operation
Flood which was a rural development program started by India's National Dairy
Development Board (NDDB) in 1970.The success behind Operation Flood was the Gujarat-
based Amul (Anand Milk Union Limited) which in turn became a mega company based on
the cooperative approach. Dr. Varghese Kurien gave the professional management skills and
necessary thrust to the cooperatives and is considered as the architect of India's White
Revolution.
India produces 400 million litres of milk per day from which 48% is retained by the milk
producer for self-consumption. The rest 52% (240 million) is available for sale. From this
240 million litre per day, 70 million litre per day is used by the organized sector such as
Amul, Mother Dairy, Nandini and other private players and milk unions. The rest 170 million
litre per day is used by the unorganized sector. So you can see that India Milk Industry is
mostly dominated by the unorganized sector
13
During the 45th Dairy Industry Conference, Dilip Rahat, Chairman of NDDB, in his speech
said “India is self-sufficient in milk and is the world’s largest milk producer with about 155
million tons of milk production in 2015-16 accounting for about 18% of the world’s milk
production. Milk production is growing at about 6.5% annually or the last two years as
against 4.7% over the earlier 10-year period. Per capita availability of milk has increased
three folds – from 112 grams/day in 1970-71 to 337 grams/day in 2015-16.
14
PRODUCT PROFILE
15
3. Need for the Study
The study is being conducted to understand the current market of Amul Masti Dahi and
devise strategy and implement them to increase its sales.
● To identify the factors that affects the market penetration of Amul Masti Dahi.
● To analyze the data and devise marketing strategies and implement them.
● This study can be useful in strategizing promotional activities for products under dairy
industry.
16
Problem Statement
Market penetration of Amul Masti Dahi in polypack form is low as compared to the total
market size of dahi and sales of other brand in market.
Hypothesis
● Ho: There is no significant impact of the marketing strategies on the sales of Amul
pouch dahi
● H1: There is a significant impact of the marketing strategies on the sales of Amul
pouch dahi
17
6. Review of Literature
Author- Dr. E. Krishna Karthik, et al
In this article the researchers have given a brief introduction about the Indian Dairy Industry.
How the Indian Dairy Sector became the number one milk producer country in the world? It
also has given the breakup of the dairy sector. About 40% of milk produced is retained by the
farmer for self-consumption other 60% is for selling and making of dairy products. However,
the dairy sector is 80% unorganized and remaining 20% is organized. It also talks about the
importance of marketing in the sector. How marketing of milk and milk products will
increase the share of organized sector in India. The objective of the research of is to examine
the consumer perception towards organized sector and unorganized sector dairy products in
Chittoor District. Since the researchers are trying to understand the perception of consumer
toward dairy products of organized and unorganized sector so it is a descriptive research. For
this the researchers have selected a sample size of 600 people through convenience sampling
from urban and semi-urban areas of Chittoor District. Since the demand for buttermilk and
dahi is seasonal they have focused on ghee and milk. Major Findings were that people gave
more priority to quality and taste for selecting dairy products and choose organized sector.
But still the unorganized sector continues to grow and the organized sector grows at a steady
rate. Trends indicate that, the informal sector will continue to play its dominant role in milk
marketing in the foreseeable future. The organized sector is preferred by the consumer
because of availability of varieties of milk based on the fat contents, better quality and
attractive packing. And at the same time, there is a perception of adulteration in organized
sector. The unorganized segment does not incur the processing and packing costs and hence
the market margins between farmers and consumer could remain smaller, whereas consumers
have to pay the extra costs in organized sector. Similarly, consumer beliefs differ between
organized and unorganized sector about freshness, quality, preference towards loose milk,
and bacteria levels. Since the research is conducted for Chittoor district scope of the research
can be extended to other nearing district or cities and also the research was conducted
towards ghee and milk so other dairy products can also be included.
The experiment was carried out with an aim to assess the quality of dahi prepared from
cow,goat and buffalo milk .with the understanding milk samples were collected from
bangladesh agriculture university dairy farm,senbari and dahi samples were analysed in the
dairy technology and animal nutrition laboratory of the Bangladesh agriculture
university,mymensingh. The parameter used to monitor the quality of dahi samples were
physical(smell and taste,body and consistency ,colour and texture), chemical (proteins facts
total solids,ash,acidity and Ph). From the results of all the parameters it cannbebconcluded
that dahi prepared from cow milk in the dairy technology laboratory department of dairy
science was superior to dahi sample in same place from buffalo and goat milk.most of the
nutritional parameters it can be found that dahi sample prepared from buffalo milk scored the
highest. From the nutritional point of view it can be shown that dahi prepared from buffalo
and cow milk was not so bad. So, the people of our country are suggested to prepare
dahifrom cow buffalo and goat milk and follow the strict hygienic conditions in order to get
good quality dahi.
18
Author- Sayantani Roy Chowdhury and et al
Dahi is an Indian fermented milk product having high nutritive values produced by
bacterial fermentation of milk. The main objective of this study is to retain the nutritive value
of milk supposedly lost during pasteurization and to compare the anti pathogenic effect of
bacterial fermentation and prolonged incubation of dahi from raw milk as cheese from raw
milk is approved by FDA regulations provided the ripening is done for a minimum period of
60 days. Further study was undertaken for characterization of the product as dahi based on
acidity, acceptability and the microbial count including Lactobacillus and Coliform. Value
addition with different herbs and spices was carried out with the intent of observing their two
fold effect on dahi as a flavouring agent and their anti Coliformactivity. Moreover the anti
Coliform activity of these herbs is likely to decrease the drastic thermal processing required
to reduce the pathogen count. The setting conditions was optimized at 15hrs of incubation
time,37o C temperature and with an inoculum volume of 5%. The factors involved were
acidity, overall acceptability and total microbial count based on the interactive effect of time-
temperature profile and inoculum volume. Further scope of study may include
standardization of the process of inclusion of herbs and spices based on its nutritive,
flavouring and anti-microbial properties.
One standard brand of dahi (Indian yogurt) drink available in the market was used for the
sensory evaluation of the three samples of dahi drinks prepared, using freeze-dried dahi
powder (20 g), guar gum (0.11 g), locust bean gum (0.11 g), vanilla essence (three drops) and
water (200 mL), where sample 1 (S1) was made from dahi powder and water; sample 2 (S2)
was made from dahi powder, guar gum, locust bean gum and water; and sample 3 (S3) was
prepared from dahi powder, guar gum, locust bean gum, vanilla essence and water. The main
objective of the study was to analyze the sensory scores of the various samples of the dahi
drinks and rank the different samples according to their sensory qualities, using fuzzy
analysis. The general sensory attributes color, flavor, homogeneity and taste were also ranked
according to their importance in the overall acceptability of the dahi drinks. Dahi was
prepared in laboratory using a standard procedure, which was freeze dried, and used for
further analysis. A panel of 11 judges was formed for the sensory evaluation of the drink
samples and it was found that the market drink (S4) is the most acceptable and was ranked
very good, whereas the S2 and S3 were also designated good followed by the S1 designated
as satisfactory. So the ranking of the drinks was S4 > S3 > S2 > S1, showing the increasing
acceptability of the dahi powder-based drinks with the addition of stabilizers and flavor
compounds. The quality attributes were ranked as Taste > Flavor > Homogeneity > Color,
showing the highest importance of taste and least importance of the color as a quality
attribute in case of dahi drinks. PRACTICAL APPLICATIONS Along with the increase in
food production, there is the requirement of advanced technologies for the effective
19
preservation of food. Drying is one of the main processes of preservation, which increases the
shelf life of the product, but this leads to loss of texture and taste of products such as dahi, an
Indian yogurt, which can be a potential drink mix and a space food. This paper supports the
prospects of dry dahi powder in the food beverage mix industry, added with some common
food additives, without affecting the nutritional and sensory properties, and increases the
scope of use of dahi mix as a military drink and in the preparation of drinks while traveling.
Also, this paper encourages the possibility of use of the fuzzy analysis for the sensory
evaluation of other fermented products which should be further explored and verified.
Author-ParambanRahila and et al
This study was conducted to evaluate the effect of transglutaminase addition on the
rheological and sensory properties of low-fat set dahi. The enzyme was added to low fat milk
after preheat treatment at the rate of 5 U/g of protein for cow milk and 3 U/g of protein for
buffalo milk. Once desired cross-linkage was obtained, transglutaminase was inactivated by
heat before culturing. Transglutaminase treatment resulted in improvement of the rheological
and sensory properties of dahi prepared from cow or buffalo skim milk and partially skimmed
milk. It improved the water-holding capacity up to 85% in skim milk dahi and up to 90% in
partially skimmed milk dahi, and firmness up to 1.1 N in cow skim milk dahi and up to 1.8 N
in cow partially skimmed milk dahi; these values were almost double in low-fat buffalo milk
dahi. Syneresis, appearance and consistency of the final product were also improved. The
high gel strength improved the storage stability of treated dahi at refrigerated temperature up
to 2 weeks. Practical Applications Dahi is the most important fermented milk product used in
India from time immemorial. In Indian system of medicine (Ayurveda), dahi has been
strongly recommended for curing ailments like dyspepsia, dysentery and other
gastrointestinal disorders. This product is also believed to improve appetite and vitality. Dahi
is a very nourishing food. It is available as source of protein, essential vitamins and minerals.
It is also a rich source of calcium and riboflavin. We consider the low fat dahi, which
provides all the benefits of Dahi without the bad effects of milk fat. As the reduction of fat
from milk affects the quality of dahi such as viscosity, gelation, water-holding capacity, etc.
Through this study, it was observed that the application of transglutaminase pretreatment is a
promising alternative to improve textural properties of low fat dahi. Enzymatic cross-linking
of milk proteins results in specific changes in product microstructure; this helps to produce
good quality dahi from skim milk or partially skimmed milk.
20
Authors:Rathod, Prakashkumar and et al
The study has analyzed the adoption status of mobile telephones in dairying, and enlisted
the constraints as perceived by the dairy farmers. It has also identified the factors affecting
adoption of mobile telephones in India through the primary data collected from 360 dairy
farmers of four states of north India, viz. Haryana, Punjab, Uttar Pradesh and Uttarakhand.
The adoption status has revealed that the majority of respondents have been using mobile
phones partially in dairying since 3-6 years, followed by adoption since 0-3 years. A
significant difference (p < 0.001) has been observed among the respondents across the states
with regard to adoption of mobile phones in dairying. The application of multinomial logic
model has revealed that the model was highly significant and fit for explanation. The
variables 'distance to veterinary institution' or 'animal healthcare centre', 'landholding size'
and 'scientific-orientation' were significantly associated with the probability that the
respondent will be a full adopter of mobile phone in dairying. The study has recommended
that appropriate measures need be adopted for effective use of mobile phones in
dissemination of livestock-related information in general and dairying in particular to the
farming community.
21
7. Research Methodology
Source of Data
Primary Data
Data was collected through various activities such as Retail Survey’s, Expert Interview,
Focus Group Discussion.
● Expert Interview
An Expert Interview was conducted with Mr. Prakash Aute (Zone Manager–FPD
Mumbai, GCMMF Ltd) to gain knowledge about the milk scenario & dahi market in
Mumbai.
● Focus Group Discussion
FGD was conducted amongst 10 respondents; of which male: female ratio was 1:4,
average age of respondents was 35.
● Retail Survey
A total of 932 retail surveys were collected all over South Mumbai to understand the
market share and factor responsible for penetration of Amul masti dahi.
Secondary Data
● Secondary information was collected through review of literature and research papers
available at various online database.
Type of sampling
● The sampling technique use over here is convenience sampling where we have chosen
retailers that were easily available to us and had given permission to carry out
activities.
● The population size is 932 retailers from which the sample size is 10.
22
8. Analysis and interpretation of the data collected with relevant tables and
graphs
Expert Interview
● The daily potential of Mumbai milk market is 60 lakh litres of which Amul provides
15 lakh litres of milk.
● From above you can estimate that Amul has a share of 25% in the Mumbai milk
market.
● Its major competitor in Mumbai is Gokul in the branded milk.
● The per capita consumption of dahi in Mumbai is 7 grams per day. Total daily
consumption of Mumbai market will be 7gm per day * 2cr population of Mumbai= 14
lakh kg
● 3% from the above figure is branded dahi & 97% is loose dahi. Amul share is 42000
kg which is 50% in the branded segment.
● Its major competitor in branded dahi is Nestle.
Retail Survey
● A survey of retailers was conducted to know about Amul milk market penetration and
share in different areas.
● Also to know the current market share of Amul masti dahi and its penetration.
● To find out the reasons behind low market penetration of Amul masti dahi in poly
pack form.
● To know the awareness level of Amul masti dahi in poly pack form at retailer’s level.
23
The survey was conducted on 932 retailers who sold dairy products. The retailers included
morning milk selling street vendors, retail stores & dairy shops.
The maximum outlet type was that of Dairy stores, followed by General stores in the lead.
Super markets were not touched based since majority of them had a central purchase
department and they refused to divulge the details needed for the survey.
Our research revealed that Amul Milk enjoyed a Market share of 29.63% in the total milk
market, while it enjoys a market share of 43.74% in the branded organized milk market.
Among the brands, the biggest competitor to Amul Milk was Gokul followed by Mother
Dairy.
24
Amul Milk penetration is high just like it’s market share. Of all the stores 932 stores, Amul
milk market penetration was 57.08%, while taking into consideration only those stores which
sell milk the market penetration was 67.64%.
Similarly, the Market share and Market penetration of Amul Masti Dahi was high among the
Organized Dahi market.
A further break down of the Dahi into Cup & Polypack packaging shows some exciting
figures for Amul brand. Within the Cup packaging, Amul Masti dahi enjoys a Market share
of 49%. Within the Polypack packaging, Amul Masti dahi enjoys a market share of 95%.
25
Among the cup dahi packaging the biggest competitor to Amul Masti Dahi was Mother
Dairy. However, among the Polypack packaging we found Mother Dairy and Govardhan
being the other brands which were retailing at a few retail outlets.
On a flipside, the Market Penetration of Amul Masti Dahi Polypack was much lower than the
cup variant. It has been 7 years since the Polypack variant of Amul Masti Dahi was launched
but the awareness and penetration remains low.
26
On a flipside, the Market Penetration of Amul Masti Dahi Polypack was much lower than the
cup variant. It has been 7 years since the Polypack variant of Amul Masti Dahi was launched
but the awareness and penetration remains low. This has been attributed to the focus on the
HoReCa segment by the company. But now, they have turned their attention towards
awareness being focused on end consumers and steps are being taken in that direction by the
marketing team.
The entire geography of SoBo was divided into 11 areas to make the analysis easier and also
make a focused strategy based upon the findings.
Area Places
1 Colaba, Cuffe Parade, Navy Nagar
2 Churchgate, Fort, Nariman Point, Dhobi Talao
3 Chira Bazaar, Kalbadevi, Bhuleshwar, Girgaon, Thakurdwar
4 Masjid Bunder, Pydhoni,M.Ali Rd,
5 Dongri, Sandhurst rd
6 Grant Road, Khetwadi, Kumbharwada, Bhendi Bazaar
Gamdevi, Nana Chowk, Gowalia Tank, Walkeshwar, Neapeansea Road,
7
Babulnath, Cumbala Hill, Malabar Hill, Tardeo
8 Mumbai Central, Agripada, Madanpura, Kamathipura
9 Dockyard road, Mazgaon, Reay Road
10 Byculla, Nagpada
11 Chinchpokli, Curry road, Lower Parel, Lal Baug, Jacob Circle, Mahalaxmi
AMUL Milk
Area 1 2 3 4 5 6 7 8 9 10 11
Market
79.63 83.72 80.00 28.57 46.61 68.12 76.47 57.66 76.81 64.62 76.29
Penetration
Market
35.17 36.19 42.05 12.39 31.09 29.74 16.30 18.35 27.62 33.67 31.21
Share
27
● The market share of Amul milk is highest in Area 2,3 &1 & similarly the penetration
are also high in the same area.
● Area 4 has the lowest market penetration and market share as well.
● From the above we come to know that in areas where the market penetration is high
the market share is also high and where the penetration is low the share is also low.
● Hence we can say that there is a relation between market penetration and market
share.
● From the above data it is observed that Market Penetration of Amul Milk in the total
milk market is highest in Area 2, while lowest in Area 4. The low penetration has
been attributed to the low number of retail outlets which sell Amul milk, major retail
outlets are those which sell unbranded loose Milk.
● The Market Share of Amul Milk in the total milk market is high in Area 3, while low
in Area 4.
● The focus of Amul for its milk market should be the areas 4, 7 & 8. These areas have
the least percentage of Market share which is indicative of use of Loose milk. These
areas have a market share lower than 20% which is very low compared to the
performance in other areas.
28
The Amul Masti Dahi Market Penetration & Market share area wise has been provided in the
table below.
● For the Amul Masti Dahi, the Market Penetration in the total dahi market is high in
Area 11, while low in Area 4.
● Market Share of Amul Masti Dahi, in the total dahi market, is high in Area 1, while
low in Area 4.
● On further bifurcation of the market share of Amul Masti Dahi in cup and Polypack
packaging, the cup market share is higher in Area 6, while low in Area 1. The
Polypack market share is higher in Areas 2,6,7,8,9 & 10, while low in Areas 3, 4, 5 &
11.
29
● The major competitor brand of Amul Masti Dahi was Mother Dairy, while the Loose
dahi from local dairy shops was the biggest competitor for Amul.
● Market share of Amul Masti dahi in the branded market was high in all the 11 areas,
even in those area where the penetration of dahi was low.
● The concern point for Amul for dahi would be the area 4, where the market
penetration is the lowest and Amul masti dahi market share in the total market is also
low. This area has maximum usage of loose dahi and this is the area where the
company should work to increase the awareness and education of consumers towards
the benefits of using branded packaged dahi over loose dahi and focus on increasing
the penetration of Amul masti dahi selling stores.
● Similarly, areas 3, 5, 6, 8 & 10 should be focused upon to increase the share of Amul
dahi in the total dahi market since the Amul masti dahi share is less than 10%, which
is an indicator of the poor performance in these areas as compared to the other area.
● Even though the Amul enjoys a good market share in the branded dahi market but it
severely lags in the total dahi market. The efforts have to be taken to convert the non-
branded dahi users into Amul dahi users. Education of consumers on the benefits of
using a packaged, branded dahi and the ills of the loose dahi needs to be run on a
grand scale, on similar lines of what Amul did to educate the consumers about the
benefits of using packaged Milk.
30
9. Strategy Formulation
From the various input we received through our research, we came up with the
following suggestions.
● From FGD we came to know that awareness among the participants about Amul
pouch dahi is quite low & dahi is majorly used for marination, making kadhi,
buttermilk, lassi etc.
● Therefore, company should create a 10 sec ad which highlights the key point of our
product like price now available at Rs. 15 only and place it on YouTube. People
streaming video of food recipe will be seeing this ad.
● Segmentation for this will be people who cook food watching videos.
● Target market will be housewife, hotel management trainee, specialty chef wanting to
learn new cuisine.
● Masti Dahi will be placed as Dahi for cooking purpose.
● Cost of making an ad = Rs 8000
Cost of placing an ad on YouTube = $ 0.10 per view therefore for 10000 view is
1000$ x 67 (Exchange rate of $1) = Rs. 67000.
Assuming from 10000 viewers 15% are retained = 1500 viewers
Cost of acquisition per viewer = (67000 + 8000) /1500 = Rs. 50 per viewer.
32
3. With respect to FGD
● It was seen that consumer awareness was low.
● In order to increase the awareness, restaurants where the footfall is high should be
used as medium to advertise our products.
● For example, installing Wi-Fi in restaurants where people can connect to internet
and browse it. We can restrict their browsing through I.P. restriction.
● We can divert their browsing towards a website where all the advertisements of
Amul products are played or people can play online games over there or enter into
quiz.
● Segmentation will be based upon the people who visit restaurants.
● Target people will be those who visit restaurant often.
● Positioned as the tasty food your enjoying is made by Amul masti dahi.
● Cost of the strategy
Total Rs 237500
● Assuming that 100 people visit a restaurant every day and all are new customer
nobody is a repeat visitor. Total number of customer visiting in a year
100 x 365 x 15 = 547500
● From the above figure we assume after watching the video 15% of customer are
retained; therefore 155 of 547500= 82125
● Cost of acquisition per customer is = Total cost / Customer retained
237500 / 82125 =Rs 2.89 per person
33
SWOT ANALYSIS OF AMUL POUCH DAHI
Strengths
Weakness
Own procurement with 3million
milk producers Improper use of distribution
India’s largest brand loyalty which leads to low availability.
Trusted for its quality Low profit margin
Affordable price Less advertisement leads to
Available in different size low awareness of pouch dahi.
Hygienic
Shelf life of 7 days of Amul
pouch dahi
Opportunities Threats
Loose dahi market Strong competition from
Homemade curd is way to MNC’s
obtain fresh and natural dahi Competition from local
Rising income level i.e. brands
increasing purchasing power of Competition from local
consumer dairies
34
● This would be a cost effective strategy to implement, as the regular patrons visiting
such hotels would be the one paying attention to such details as the price & brand of
Amul dahi, creating an attraction towards the Amul Masti Dahi.
5. While searching through the retailer’s survey data, it was found that the Market
Penetration for Amul dahi was less and that was attributed majorly to the unwillingness of
retailers to stock the products due to various reason. To increase the Market penetration
and make the product available to the consumers more effectively, an idea was thought
upon and worked around to address this issue.
● Amul’s Fresh product division should introduce Amul Cycle Carts on the lines of
the Amul ice cream cycle carts.
● This would help, in combating the market penetration issue in areas 2, 3 & 4; as
well as the increase in the awareness of the product line offered by Amul.
● Segment would be market places where consumers come to buy their daily needs
requirement for groceries and greens.
● Targeting areas with low penetration of Amul Masti Dahi.
● Positioning Amul mast dahi as an affordable product available at a convenient
location.
● This business strategy would involve cost to the company in the form of procurement
of Cycle Carts with insulated box, cost of labour who would drive the cycle cart.
● The cost of a single cycle cart would be approximately Rs 25,000 and manpower cost
would be approximately Rs 10,000 for a month.
● The depreciation cost per day for a period of 5 years would be Rs 14 for the cycle cart
and the per day cost of manpower would be Rs 333.
● Hence, the total cost per day per cycle cart would be of Rs. 14 + Rs. 333 = Rs. 347 for
the company.
● This cost is reasonable as the company would earn good revenue by selling the
products directly through the cart.
● The daily cost incurred of Rs 347, as estimated, would be recovered easily as the
brand has a wide acceptance among the masses, since Amul offers value for money &
quality products.
● Since the company has a policy of selling the goods only through distributors and not
directly, this would also help the distributors earn more money and be more loyal
towards the Amul brand.
● The hurdle seen in this strategy which needs to be worked out is the proper licensing
for operating in this manner, the feasibility of parking the cycle cart at locations
which are very crowded that have a scarcity of open space during the business hours.
35
6. The resistance from the retailers to stock Amul products, as observed through the survey,
got us thinking and the following idea was developed into a working strategy:
● Among the various reasons provided by retailers for not stocking Amul products,
the major reason provided was Amul’s margin for retailers is low as compared to
the competitors.
● Another reason rued by the retailers was that Amul never provided any schemes
for their products.
● Thinking on the lines of a scheme, a Sales strategy was designed, to give an
incentive to retailers to stock Amul Masti Polypack Dahi and create consumer
awareness, which would help in creating a demand for the product.
● The strategy is to provide the 200gm Amul Masti Polypack Dahi to retailers at a
50% discount on MRP of Rs. 15.
● This would serve as an incentive for the retailer to stock the product and also
market the same to customers who visited their shop to purchase dahi.
● This incentive was to be provided for a period of 2 days and then based upon the
demand observed by the retailer, the company would start providing the Polypack
dahi on a regular basis at the regular retailer price through the zonal distributor.
● This strategy would be implemented on stores who were ready to sell the Amul
Masti Polypack Dahi.
● Stores who were stocking the Polypack variant of dahi were not to be target, since
targeting new stores would help increase the market penetration of the Amul dahi
in the selected areas where the penetration of Amul Masti Dahi was low.
● The cost that the company would have to bear would be Rs. 6 for each 200gm
Polypack unit of dahi per day, since the company would provide the 50% discount
to the retailers.
● Retailers would be provided with 10 packs of 200gm dahi. Hence the total cost for
the company per day per store would be Rs 6 x 10packs = Rs 60.
● This activity would be carried out at at least 10 shops for a period of 2 days.
Hence the cost would be Rs. 60 x 10 shops x 2 days = Rs. 1200
● To increase consumer awareness further the company would have to hang banners
and danglers at the shop, hence the price for them would be approximately Rs.
100 for medium size banner and Rs. 10 for the dangler.
● Hence cost for 1 banner & 1 dangler per shop would be Rs. 110. So the total cost
for 10 stores would be Rs. 110 x 10 stores = Rs1,100.
● The total cost at all the stores for this strategy would be Rs. 1200 + Rs. 1100 = Rs.
2,300.
So the per store cost would be Rs. 2,300 / 10 stores = Rs. 230.
36
10. Implementation of Strategy
Among the 7 suggestions provided, we could implement only 1 strategy. The strategy
implemented was the sale strategy of providing 50% discount scheme to retailers for stocking
200gm Amul Masti Polypack Dahi.
The area where the penetration of Amul dahi was low were selected, as well as the
agreeableness factor of retailers to stock Polypack dahi, captured through the survey, was
also taken into consideration for selecting the retail stores for the activity.
The activity was conducted for a period of 3 days at a particular store. For the first two days
the Polypack dahi was provided through the scheme, while on the 3rd day the dahi was
ordered with the normal retailer list price. Banners & Danglers were hung at the stores where
the activity was conducted. A brief consumer survey was also conducted to get consumer
insights about using Polypack packaged dahi. The sales of Polypack dahi was monitored for 3
days.
10 stores were selected and the activity was conducted at these stores.
The limitation faced while implementing the strategy, was the fact that the Monsoons had set
in, which had lowered temperatures affecting the consumption pattern of dahi. Another
limitation was the presence of the Islamic holy month of Ramzan which prevented the
activity to be conducted in areas primarily populated by Muslim caste, as the food
consumption was lower among that population and more so for our focus product i.e. dahi.
Below is sales figure and details of the stores where the activity was conducted.
Area Sales
Store Name Before Day3 After
Day1 Day2 Total
Activity Activity
Mahavir General Store 6 0 10 15 10 35
Tawakkal Store 6 0 3 3 4 10 5
Shah General Store 6 0 - - 10 10
Lalaji Stores 10 0 15 20 15 50 25
Gupta General Store 10 0 12 13 15 40 25
Aarey Store - Mumbai
8 0 7 8 5 20
Central
Chedda Namkeen 8 0 9 5 6 20
Jai Bajarang 8 0 5 8 7 20
Prakash Store 8 0 10 5 5 20
Aarey Store - Mazgaon 9 0 5 5 - 10 10
37
To test the hypothesis, paired t test was performed using SPSS on the sales data.
The result obtained at, 0.05 level of significance, was p value equals to 0, i.e. the p value 0 ≤
0.05.
Hence the Null hypothesis is rejected and the Alternate hypothesis is accepted which
states that the Sales strategy had a significant impact on the sales of Amul Masti Polypack
Dahi at the selected stores.
11. Findings
● The retailer survey revealed a total market share of Amul milk in the overall milk
market to be 30% and in the branded milk segment to be 45%.
● Similarly, the market penetration of Amul in the overall milk market is 57% and that
in milk selling stores is 68%.
38
● In Mohammad.Ali road, the market share and market penetration is low as compared
to other areas. This is mainly attributed to the presence of local dairy stores who sell
loose milk. The presence of retail stores which sell branded milk is very low and in
those the share of Amul is high.
● In the Churchgate area, market penetration is highest, while in Chirabazar has the
highest market share for Amul milk.
● Gokul is the major competitor in the branded milk segment for Amul. Amul gold
which has similar fat content as Gokul, cannot compete with Gokul in that milk
segment.
● The total market share of Amul masti dahi in the overall dahi market 11% and in the
branded dahi segment is 59%.
● Similarly, the market penetration of Amul masti dahi in the overall dahi market is
32% and in the branded dahi segment is 60%
● The market penetration and market share is lowest in Mohammad.Ali road. This is
again attributed to the major presence of local dairies which sell loose milk & dahi,
which makes the area where Amul needs to focus and try to increase their presence.
● The Amul masti dahi market penetration is highest in Chinchpokli and highest market
share is in Colaba.
● Mother Dairy & Govardhan were the major competitor of Amul masti dahi in the
branded segment.
● Dahi was consumed majorly in the form of Chaas/Buttermilk, Lassi & Gravy, as
made known through the consumer survey.
● 40% of the respondents actually planned and included Dahi in their shopping list,
while 60% bought dahi on an impulse while shopping at a shop.
● Through the Focus Group discussion, the major observation which emerged was the
lack of awareness about Amul masti dahi in Polypack packaging, with 90%
respondents being unaware of its existence.
● The manner in which dahi was consumed was Marination, Chaas/Buttermilk &
Kadhi, as per the response received from the Focus group discussion.
● Another major factor which emerged from the retail survey was the lack of
knowledge among the retailers about the Amul masti dahi Polypack package being
available in the market since 7 years. This can be majorly attributed to the fact that the
distributors under the fresh division, did not create the required awareness among the
retailers about the Amul fresh division product portfolio.
39
● The sales strategy after implementation stage, resulted in a probability of 0.4 that the
retailer will order the Amul masti dahi in Polypack again on the normal retailer
margin price. This was considered to be a success since, the climatic conditions had
changed and the consumption pattern of consumers for dahi also change during the
cooler rainy season.
● Consumers were buying the Amul masti dahi in the Polypack package based on just
the price factor and the brand name, once they were made aware of the product. This
was observed when the sales strategy was implemented and the awareness about the
product was created through the banners and danglers, in addition to the retailer
themselves promoting the product to customers who were coming to their shop to buy
dahi.
40
12. Suggestion/Conclusion
● What has been observed regarding the awareness creation for Amul masti dahi in
Polypack is that the channels currently used for its promotion is not being used to its full
potential. Hence the researchers recommend that a more comprehensive promotion
strategy be chosen and the existing strategy be evaluated and steps taken to make it more
effective.
E.g.: The advertisement in regional daily newspapers within the inner sections of the
paper is not effective when compared to advertising on the front pages or the second page
of the newspapers.
● The awareness should focus on the fact that a machine manufactured, untouched by hand
& quality assessed packaged dahi like Amul masti dahi is more hygienic and consistent in
its quality 365 days of the year, unlike the loose dahi being made by the local dairy
vendors whose consistency changes every other day.
● The Polypack dahi product being available in the market since 7 years and having such
low awareness, especially coming from the house of GCMMF which markets the Amul
brand, speaks that the awareness campaign that the marketing team has been running has
been ineffective. They should capitalize on the popularity of the Amul Girl’s doodles and
promote the product through the doodles across the country.
● The television ads which are being run for promoting the Amul masti dahi, should also
lay emphasis on the availability of the Amul masti dahi in polypack packaging, which is
not being done currently.
● The use of multiple distributors in an area without limiting their geographic boundaries is
a good tactic employed by Amul to prevent a monopoly being created by the distributor
in an area. But even after this tactic, employed by Amul, it was observed that the product
line of Amul fresh products division was not being made aware to, to the retailers. This
should be taken care of by GCMMF, by conducting a training for the distributors and
educating them about the complete product line of the fresh division vertical of GCMMF
and how to create the awareness among the retailers, so that they start keeping stock of
the products.
● In area where the market penetration & share of Amul masti dahi is less as compared to
those of Amul milk, as observed in area 3, a push strategy should be implemented. The
retailers being told to buy Amul masti dahi and only upon that, they would be supplied
Amul milk. Since the consumer demand for Amul milk is very high, the retailers would
be forced to take some quantities of dahi for sale, and then to get it moving from their
shelves, the retailer would promote Amul masti dahi automatically. This would address
the availability concerns which were highlighted through the retailer survey.
● A message which can be communicated to the consumers, especially those women who
make dahi at home, is that your Amul masti dahi is now available at the price which is
similar to the cost required to make dahi at home. The polypack packaging of Amul masti
41
dahi can be promoted as such and incite the consumers to trial the product. This is very
relevant in metro cities and tier 1 cities, where there is scarcity of time and many women
belonging to the working demography increasingly and not being confined to the role of a
home makers only.
● Through the expert interview, it was made known that the share of branded dahi is 3%
while the remaining was dominated by the loose dahi. To capture and convert the loose
dahi consumers, Amul needs to initiate a campaign which would educate the consumers
about the benefits of packaged dahi over the loose dahi. The comparison can be made on
the points like hygiene, consistency, price, availability, quality assurance, untouched by
hand products, etc. Amul masti dahi has the biggest advantage that it is playing to be the
Price leader in the dahi segment with the introduction of the polypack packaging at Rs. 55
for a 1kg pack. This factor should be taken advantage of since, the company is clearly
trying to grab a chunk of the market share by playing the cost leadership strategy and
increase consumption of the Amul masti dahi. A proper communication of the price
coupled with the education campaign would reap great results for the company.
● Amul has tie-ups with many Hypermarket stores like Dmart, reliance, etc. to sell Amul
products. Taking advantage of this tie-up, Amul should put up banners, standees &
signage creating awareness for the Polypack Amul Masti dahi. There could also be
intercom announcement being made across the store, that Amul masti dahi is now
available in polypack packaging for Rs. 55 for a 1kg pack. Amul could also pay the
hypermarkets to keep Amul Masti Dahi polypack as their focused product for a month in
their stores. This suggestion would help address the awareness & availability issues
currently being faced by the Amul Masti dahi polypack package effectively.
42
13. Limitations
Time Constraints
● The study was conducted in the summer season where consumption of dahi is high so
there may be a difference in the output.
● The activities were conducted in the month of Ramadan so the output may differ.
● The study was conducted only in South Mumbai due to time constraints of 2 months.
Manpower Constraints
● Since only the study was conducted by 6 people only marketing strategy were
implemented on select outlets.
Budget Constraints
● Due to budget constraints limited supply of dahi was provided to the retailers.
43
14. Biblography
https://webcache.googleusercontent.com/search?q=cache:hvPVAutZY9oJ:https:
//www.theinternationaljournal.org/ojs/index.php%3Fjournal%3Dtij%26page%3
Darticle%26op%3DviewFile%26path%255B%255D%3D4875%26path%255B
%255D%3Dpdf+&cd=1&hl=en&ct=clnk&gl=in
A comparative study on the quality of dahi prepared from cow goat and buffalo milk.
http://scialert.net/fulltext/?doi=ijds.2007.260.267
PRODUCTION, CHARACTERISATION AND VALUE ADDITION OF DAHI MADE
FROM RAW, PASTEURIZED AND DOUBLE PASTEURIZED MILK
https://www.researchgate.net/publication/273301509_PRODUCTION_CHARACTERISATI
ON_AND_VALUE_ADDITION_OF_DAHI_MADE_FROM_RAW_PASTEURIZED_AN
D_DOUBLE_PASTEURIZED_MILK
https://www.researchgate.net/publication/262960329_Sensory_evaluation_of_different_drink
s_formulated_from_dahi_Indian_Yogurt_powder_using_fuzzy_logic
Enzymatic Modification of Milk Proteins for the Preparation of Low Fat Dahi.
Author-ParambanRahila and et al
https://www.researchgate.net/publication/287148114_Enzymatic_Modification_of_Milk_Pro
teins_for_the_Preparation_of_Low_Fat_Dahi
44
Adoption Status and Influencing Factors of Mobile Telephony in Dairy Sector: A Study
in Four States of India.
http://web.b.ebscohost.com/abstract?direct=true&profile=ehost&scope=site&authtype=
crawler&jrnl=09713441&AN=116572524&h=H7oM%2fv5gqkZDjr3Gc%2fOSwNGey
%2b7UhgCHOJU4DfHtOgvXVecThAbuHa5FabFrEwZEEu7EUAJ%2fsa8FLwnOFi9
GMA%3d%3d&crl=c&resultNs=AdminWebAuth&resultLocal=ErrCrlNotAuth&crlh
ashurl=login.aspx%3fdirect%3dtrue%26profile%3dehost%26scope%3dsite%26authty
pe%3dcrawler%26jrnl%3d09713441%26AN%3d116572524
About Amul
https://en.wikipedia.org/wiki/Amul
About G.C.M.M.F
http://www.amul.com/m/about-us
http://www.amul.com/products/amul-mastidahi-info.php
45
15. ANNEXURE
____________
Q2. Area
____________
● General Stores
● Dairy Store
● Mom & Pop stores
● APOs
● Supermarkets
Q4. Do you sell pouch Milk? (Ask Q5 to Q8 if Q4 is answered Yes)
● Yes
● No
Q5. The total litres of milk you sell on an average weekly basis?
________________________
Q6. The amount of litres of Amul milk you sell on an average weekly basis?
________________________
Q7. The major brand of Milk other than Amul which is sold? (Select any one)
● Mother Dairy
● Gokul
● Nestle
● Aarey
● Govardhan
● Mahanand Others
Q8. Do you sell pouch Buttermilk? (Ask Q10 if Q9 is answered Yes)
● Yes
● No
Q9. If Yes, then average weekly sales of the Amul pouch buttermilk?
____________
46
Q10. Do you sell Dahi? (Ask the rest of the Questions if Q11 is answered Yes)
● Yes
● No
Q11. What are the total average daily sales of Dahi?
______________
______________
______________
______________
______________
______________
______________
Q12. The major brand of Dahi other than Amul which is sold ? (Select any one)
● Mother Dairy
● Nestle
● Danone
● Govardhan
● Others
Q13. Do you sell Amul Pouch dahi?
● Yes
● No
Q14. If No, Are you aware about Amul dahi being available in Pouch?
● Yes
● No
Q15. If Yes, What is the reason for not stocking the product?
47
● No product awareness
● Not willing to sell
● Low Profit Margin
● Prone to pilferage
● Shelf life is Less
● Distribution issues
● Others __________(Specify)
Q16. If No, Would you be interested in keeping the Amul Dahi in pouch?
● Yes
● No
Q17. Do you sell Dahi in loose form? If Yes, Then at what rate
______________
48
49