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Transcript of Amul
INTRODUCTION
In the recent time the market sentiments has completely
changed and it has become completely a buyer market. In the
F.M.C.G. sector especially there is a lot stress on who provides
better services and of course at a better price. Since Indian Market
is perhaps very much price conscious market in the world. In the
ice-cream sector there are many players that are increasing their
market share by boosting their sale and try to get more popular
among consumers. Since ice-cream sector is a seasonal business, in
this short period of time every player want to earn more profit.
The present era is an era of “BRAND MARKETING” can be
compared to the game of chess. In the era of marketing brand
name packaging, distribution and advertising plays similar role as
that of Pawn on the board of chess.
In Haryana region where our markets include Faridabad. We
had seen the market share of Amul ice-cream 30% which is
highest, the second one is mother dairy,25% and the rest of market
share is shared by Kwality Walls, Vadilal, Cream-Bell and other
local ice-creams.I hope this report will be special interest to the
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marketing students, who are looking out for such real life situation
beyond their classroom studies.
The Birth of Amul
It all began when milk became a symbol of protest
Founded in 1946 to stop the exploitation by middlemen
Inspired by the freedom movement
The seeds of this unusual saga were sown more than 65 years back in Anand, a small town in the state of Gujarat in western India. The exploitative trade practices followed by the local trade cartel triggered off the cooperative movement. Angered by unfair and manipulative practices followed by the trade, the farmers of the district approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own co-operative, which would have procurement, processing and marketing under their control.
In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in 1946.
This co-operative, the Kaira District Co-operative Milk Producers
Union Ltd. began with just two village dairy co-operative societies
and 247 litres of milk and is today better known as Amul Dairy.
Amul grew from strength to strength thanks to the inspired
leadership of Tribhuvandas Patel, the founder Chairman and the
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committed professionalism of Dr Verghese Kurien,who was
entrusted the task of running the dairy from 1950.
The then Prime Minister of India, Lal Bahadur Shastri decided that
the same approach should become the basis of a National Dairy
Development policy. He understood that the success of Amul
could be attributed to four important factors. The farmers owned
the dairy, their elected representatives managed the village
societies and the district union, they employed professionals to
operate the dairy and manage its business. Most importantly, the
co-operatives were sensitive to the needs of farmers and responsive
to their demands.
At his instance in 1965 the National Dairy Development Board
was set up with the basic objective of replicating the Amul model.
Dr. Kurien was chosen to head the institution as its Chairman and
asked to replicate this model throughout the country.
The Amul Model
The Amul Model of dairy development is a three-tiered structure with the
dairy cooperative societies at the village level federated under a milk union
at the district level and a federation of member unions at the state level.
Establishment of a
direct linkage between
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milk producers and
consumers by eliminating
middlemen
Milk Producers
(farmers) control
procurement, processing
and marketing
Professional
management
4
The Amul model has helped India to emerge as the largest milk
producer in the world. More than 13 million milk producers pour
their milk in 1,28,799 dairy cooperative societies across the
country. Their milk is processed in 176 District Co-operative
Unions and marketed by 22 State Marketing Federations, ensuring
a better life for millions.
5
Changing Scenario in the Context of Indian Dairying-
The future of Indian dairying depends upon how rapidly dairy
cooperatives are enabled to function as genuine member-owned
and controlled business enterprises. Therefore, the main challenge
before dairy cooperatives is to be able to quickly adapt to a rapidly
changing domestic and world economic order, and with the WTO
in place, not only hold .
Its own in this country but becomes a regional force! Faced with
this challenge, NDDB has proactively rethought the strategy of
providing a competitive advantage to the Indian farmer, by
focusing on strengthening the Marketing, Sales and Distribution of
the dairy sector in India and Amul has been identified as the
vehicle for driving and realizing this strategy.
The strategy is being
operationalized through the formation of joint ventures between
Amul and the State co-operative federations. The joint venture
companies would take on the responsibility of driving the ongoing
business of marketing, sale and distribution of the State federation
in a more organized, professional and efficient manner. In addition
to this, the existing structure of Amul group has been further
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restructured to form entities that would exclusively focus on
providing effective management support to the joint venture
companies and on expanding the sales and distribution of select
Amul products at a national level. With these changes, Amul is all
set to emerge as one of the largest food and dairy products
company in the country in the next few years.
The overall approach not only
provides the freedom to appoint the requisite professional talent in
key positions and to take decisions with the flexibility and speed
that is required in an increasingly competitive market, but also
helps to introduce elected leaders to the processes of better
planning and management.
Thus, as the identified change
agent for bringing about transformation in the dairy co-operative
sector across the country has a tremendously challenging
responsibility on its shoulders- considering the complexities of
regional and cultural diversity in the country, the magnitude of the
change to be managed and the profile of stakeholders who are
going to be impacted by this initiative (ranging from the farmers
at the grassroots level, the unions at the district level, state run
bodies at the federation level to the new age professionals
7
managing the change initiative). Amul is geared up to meet this
challenge, with its entire infrastructure, technological and people
resources focused on this single point objective. At Amul we are
committed to bring in the required professionalism, dynamism and
competitive edge to the dairy sector without losing sight of our
underlying vision- the fabric of the co-operative movement and our
responsibility towards serving the rural set up in the country.
The key to making this
initiative a success is the infusion of dynamic professionals who
have: The urge to apply their professional talent to make a visible
difference to the Indian rural set-up The experience and ability to
develop innovative and contemporary solutions to help build
competitive organizations, and The capability to initiate, lead and
manage change in a highly diverse and challenging environment
Besides the tremendous opportunity for personal and professional
growth, Amul also provides its employees an unmatched work
environment built upon the values of trust, transparency,
unquestionable commitment to quality, single-minded focus on
excellence and respect for the individual. Innumerable cross-
functional opportunities across the group companies and
empowerment of individuals to the lowest level make it a rich
ground for acquiring a strong business perspective, developing
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specialized as well as diverse skills and growing into well-rounded
professionals.
Amul at a Glance-
AMUL means “priceless pure milk
ice-cream”. The brand name “AMUL”, from the Sanskrit
“AMULYA”, was suggested by a quality control expert in Anand.
Amul products have been in use in million of homes
since1946.Amul Butter, Amul Milk Powder, Amul Ghee, Amul
Spray, Amul Cheese, Amul Chocolates, Amul Shrikhand , Amul
Ice-Cream ,Nutramul, Amul Milk and Amulya have made Amul a
leading food brand in India. Today Amul is a symbol of many
things. Of high quality products sold at reasonable prices. Of a
genesis of a vast co-operative network . Of the triumph of
indigenous technology. Of a marketing survey of a farmers
organization. And of a proven model for dairy development.
AMUL’S sale figures have jumped from 1000 tones a year in 1966
to over 25000 tons a year in 1997. No other brands come even
close to it.
In the background of the famous
White Revolution, which swept the length and breadth of India
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through the spirited and enthusiastic efforts of the Nalimal Dairy
Development Board(NDDB) under the pioneering leadership
under the Dr. KURIEN and his dedicated team lies the success
story of the milk union of kaira milk union in Gujarat had shot
into limelight because of it creditable and impressive performance
in the field of dairy co-operation dairing by 1969 when a
discussion was made by the government of india to initiate and
gradually accelerate steps to spread the ANAND PATTERN co–
operations in all parts of the country.
A plan was made and systematically executed through them as
called OPERATION FLOOD.
There where the stages in which the OPERATION FLOOD
was carried out.What is known, as OPERATION FLOOD was an
extensive programmed comprising 4 activities, they are as
follows:-
(a) Designing of dairy projects.
(b) Development of specialized man power.
(c) Organization of farmers, and establishment of services for
increasing Milk procurement and production.
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Through what we call operation flood
second, a sustained efforts was made to consolidate the
achievements Of the operation flood second a nationwide
programme was implemented to setup dairy projects which
numbered 155. this was supplemented by expanding dairy & cattle
feed plants and encouraging animal husbandry and mixed farming.
Another significance feature of the operation flood second was to
arrange technical assistance. It also directed its efforts towards
implementing the policy connected with the promotion of dairy
products in the market.
OPERATION FLOOD THIRD started with a program to setup
dairies in 190 co-operative unions in 70,000 Indian village and 8
lakh families.
In Gujarat, especially for carrying out the
operation flood, the Gujarat milk marketing federation was the
natural choice because of its well recognized organizational
strength & experiencing in dairying. The result was quick
modernization, expansion of dairy project, encouragement to the
formation of “ANAND PATTERN” co-operative services
throughout the state to promote animal husbandry; artificial
insemination, cattle feed production, organization of milk
procurement and marketing.
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On account of its record of its
efficiency & organized work Gujrat co-operative Milk Marketing
Federation Limited started marketing operations to ensure rapid
inventory movement through & extensive distribution network.
Dairy products are now formed out to 3,500 wholesale dealers 7-5
lakh plus retail outlets over seen by a large number of offices
spread over the difference parts of the country.
Even outside India the impact of a federation’s products has been
felt. Ghee is now regularly exported outside India, especially to
west Asian countries. The federation has succeeded in expanding it
export market to different part of the globe. Amul is playing the
market leader’s role of growing the category, through Ice-Cream
segment.
The new AMUL brand category includes Pizza ,Traditional Indian
Sweets, Confectionery, Baby Foods, Long Life Milk, Curd. Amul
is building the plot for future.
12
Mother Dairy- a short description -
Mother Dairy - Delhi was set up in 1974 under the Operation
Flood Programme. It is now a subsidiary company of a wholly
owned company of the National Dairy Development Board
(NDDB).Mother Dairy sources its entire requirement of liquid
milk from dairy cooperatives. Similarly, Mother Dairy sources
fruits and vegetables from farmers/growers associations. Mother
Dairy also contributes to the cause of oilseeds grower cooperatives
that manufacture/ pack the Dhara range of edible oils by
undertaking to nationally market all Dhara products. It is Mother
Dairy's constant endeavor to (a) ensure that milk producers and
farmers regularly and continually receive market prices by offering
quality milk, milk products and other food products to consumers
at competitive prices and; (b) uphold institutional structures that
empower milk producers and farmers through processes that are
equitable.
At Mother Dairy, processing of milk is controlled by process
automation whereby state-of-the-art microprocessor technology is
adopted to integrate and completely automate all functions of the
milk processing areas to ensure high product quality/ reliability
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and safety. Mother Dairy is an IS/ ISO-9002, IS-15000 HACCP
and IS-14001 EMS certified organization. Moreover, its Quality
Assurance Laboratory is certified by National Accreditation Board
for Testing and Calibration Laboratory (NABL) - Department of
Science and Technology, Government of India.
Mother Dairy markets & sells dairy products under the
Mother Dairy brand (like Liquid Milk, Dahi, Ice Creams, Dairy
Whitener and Butter), Dhara range of edible oils and the Safal
range of fresh fruits & vegetables, frozen vegetables and fruit
juices at a national level, through it's sales and distribution
networks, for marketing food items.
In times to come, Mother Dairy shall strive to become a
leading player in the food industry in India.
Mother Dairy is a leading marketer of dairy products and
fruit & vegetable products in the Indian sub-continent. Its
unwavering commitment to quality, state-of-the-art technology,
and the use of superior ingredients enable it to offer a wide range
of world-class products.
In addition to its market leadership in India, Mother Dairy is also
active in the global arena, exporting its range of dairy products to
various international markets. In recent years, the brand's fruit
14
pulp, pastes, purees and concentrates have evoked tremendous
demand across the globe. To cater to this demand, Mother Dairy
has set up a 100 per cent Export Oriented Unit with a capacity for
processing over 15000 metric tones of fresh produce annually.
Moreover, a new state-of-the-art plant with an installed capacity
for processing 10 metric tones of fruit per hour is being set up at
Bangalore. The units are ISO 9001-2000 and HACCP certified,
and the products are Kosher certified.
As another step towards
providing quicker and better service to its international customers,
Mother Dairy has established a marketing office in Rotterdam.
With a view to ensuring world-class quality on a consistent basis,
Mother Dairy focuses on delivering value at every stage - right
from the farm to the plant. Best ingredients. Streamlined processes.
Reliable customer service. These are the aspects that make Mother
Dairy an outstanding brand.
Real milk. Abundant
toppings. And an utterly delectable taste. That's the secret of
Mother Dairy's fascinating range of rich and creamy ice creams - a
lip-smacking array of ice candies, milk lollies, bars, cones, real
fruit ice creams, Sundaes and take-home packs.
15
Gujarat Cooperative Milk Marketing Federation
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is
India's largest food product marketing organization with annual
turnover (2010-11) US$ 2.2 billion. Its daily milk procurement is
approx 12 million lit (peak period) per day from 15,712 village
milk cooperative societies, 17 member unions covering 24
districts, and 3 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. Its
success has not only been emulated in India but serves as a model
for rest of the World. It is exclusive marketing organization
16
of 'Amul' and 'Sager' branded products. It operates through 47
Sales Offices and has a dealer network of 5000 dealers and 10 lakh
retailers, one of the largest such networks in India. Its product
range comprises milk, milk powder, health beverages, ghee, butter,
cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional
Indian sweets; etc
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 13 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.
For its consistent adherence to quality, customer focus and
dependability, GCMMF has received numerous awards and
accolades over the years. It received the Rajiv Gandhi National
Quality Award in1999 in Best of All Category. In 2002 GCMMF
bagged India's Most Respected Company Award instituted by
Business World. In 2003, it was awarded the The IMC Ramkrishna
Bajaj National Quality Award - 2003 for adopting noteworthy
17
quality management practices for logistics and procurement.
GCMMF is the first and only Indian organisation to win topmost
International Dairy Federation Marketing Award for probiotic ice
cream launch in 2007.
The Amul brand is not only a product, but also a movement. It is in
one way, the representation of the economic freedom of farmers. It
has given farmers the courage to dream. To hope to live.
18
GCMMF - An Overview
Year of Establishment 1973
Members
17 District Cooperative Milk Producers'
Unions (13 Members & 4 Nominal
Members)
No. of Producer
Members3.03 Million
No. of Village Societies 15,712
Total Milk handling
capacity per day13.67 Million litres per day
Milk Collection (Total -
2010-11)3.45 billion litres
Milk collection (Daily
Average 2010-11)9.2 million litres (peak 12 million)
Milk Drying Capacity 647 Mts. per day
Cattlefeed
manufacturing Capacity3690 Mts. per day
Sales Turnover -(2010-
11)Rs. 9774 Crores (US $2.2 Billion)
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Our
Member Unions
1. Kaira District Cooperative Milk Producers' Union Ltd., Anand
Sales Turnover Rs (million) US $ (in millions)
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504
2009-10 80053 1700
2010-11 97742 2172
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2. Mehsana District Cooperative Milk Producers' Union Ltd,
Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd.,
Himatnagar
4. Banaskantha District Cooperative Milk Producers' Union Ltd.,
Palanpur
5. Surat District Cooperative Milk Producers' Union Ltd., Surat.
6. Baroda District Cooperative Milk Producers' Union Ltd.,
Vadodara
7. Panchmahal District Cooperative Milk Producers' Union Ltd.,
Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
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9. Bharuch District Cooperative Milk Producers' Union Ltd.,
Bharuch
10. Ahmedabad District Cooperative Milk Producers' Union Ltd.,
Ahmedabad
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers' Union Ltd.,
Gandhinagar
13. Surendranagar District Cooperative Milk Producers' Union
Ltd., Surendranagar
LIST OF PRODUCT MARKETED:
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Bread Spreads:
Amul Butter
Amul Lite Low Fat Bread Spread
Amul Cooking Butter
Cheese Range:
Amul Processed Cheese Spread
Amul Pizza Cheese
Amul shreded Pizza Cheese
Amul Emmental Cheese
AMUL Malai Paneer Frozen and tinned
Utterly Delicious Pizza
MITHAEE Range (Ethnic SWEETS):
Amul shrikhand (Mango Saffron,Almond
Pistachio,Cardamom).
Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul mithaee Kulfi Mix
UHT MILK RANGE:
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Amul Taza 3% fat milk
Amul Gold 4.5 % fat milk
Amul Slim and Trim 0% fat milk
Amul Chocolate Milk
Amul Fresh Cream
Amul Taza Double Toned Milk
PURE GHEE:
Amul Pure Ghee
Sugar Pure Ghee
Amul Cow Ghee
INFANT MILK RANGE:
Amul infant milk formula 1(0-6 month)
Amul infant milk formula 2(6 months above)
Amul spray Infant Milk Food
MILK POWDERS:
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Amul Full Cream Milk Powder
Amul Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea And Coffee Whitener
FRESH MILK:
Amul Taza Double Toned Milk 3% Fat
Amul Gold Full Cream Milk 6% Fat
Amul Shakti Standardised Milk 3% Fat
CURD PRODUCTS:
Amul Masti Dahi
Amul Butter Milk
AMUL ICE- CREAM:
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ROYAL TREAT RANGE (Rajbhog, Cappuchino,
Chocopics, Butterscotch Tutti Fruti)
NUT -O- MANIA RANGE ( kaju Drakshi, Kesar Pista ,
roasted Almond ,Kesar Karniwal)
UTSAV RANGE (Anjir ,Roasted Almond)
SIMPLY DELCIOUS RANGE( vanilla,
Strawberry,Pineapple.
NATURE’S TREAT (Alphanso Mango, Fresh Litchi, Ajir,
Fresh Strawbery).
SUNDAY RANGE( Mango ,Black Current, Chocolate,
Strawbery)
MILLENNIUM ICE-CREAM( Cheese With Almond, Dates
With Honey).
MILK BARS(Chocobar, Mango Dolly,Shahi Badam
Kulfi,Shahi Pista Kufi, Mawa Malai Kulfi, Green Pista Kulfi).
COOL CANDIES ( Orange Mango)
CASSATA
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TRICONE CONES (Butter Scotch , Chocolate)
MEGABITE ALMOND CONE
FROSTIC –3 Layer Chocolate Bar
FUNDO RANGE- exclusively for kids
SLIM SCOOP FAT FREE FROZEN DESERT
( Vannila ,Bannana ,Mango, Pineapple)
CHOCOLATE AND CONFECTIONARY:
Amul Milk Chocolates
Amul Fruit And Nut Chocolates
BROWN BEVERAGE:
Nutramul Malted Milk Food
MILK DRINK:
AMUL Shakti Flavoured Milk
SOUPS:
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Masti Tomato Soup
Masti Hot & Sour Soup
AMUL ICE-CREAM is made from milk & milk
products.sugars ,stabilizers & emulsifires.
COMPOSITIONS –
Milk Fat 13.5% to 14.5%
Total Solids 40% to 41%
Sugar 15%
Acidity 0.17% to 0.19%
Protien 3.9% to 4.1%
FOOD ENERGY VALUE-
Calories per 100 ml –196.7 Kcal
FLAVOURS:
Vanila, Rajbhog, Chocopics, Butterscotch ,Tutti Fruti, kaju
Drakshi, Kesar Pista , Anjir , Strawberry,Pineapple Alphanso
Mango, Fresh Litchi, Anjir, Fresh Strawber Mango, Chocolate,
Mango, Butter Scotch , Chocolate.
PACKAGING:
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50 ML cup, 100 ml cup, 500ml pack, 4 liter pack, choc-bar, Ice
candies, cones & kulfies.
SPECIAL FEATURES:
Various varieties of ice -cream made from the basic mix by
addition of required amount of permissible color & flavors. Dry
fruits 7 Nuts would be used for making premium verities of Ice-
cream.
BREAD SPREAD
Bread Spreads
Amul Butter
Utterly Butterly Delicious
Amul Lite
Low fat, low Cholesterol Bread
Spread
Delicious Table Margarine
The Delicious way to eat healthy
POWDER MILK
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 MILKFresh 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
30
Amul Fresh Cream Amul Kool Chocolate Milk
Amul Kool Flavoured Bottled
Milk
Amul Kool Flavoured Tetra
Pack
Amul Shakti Toned Milk Amul Masti Spiced Buttermilk
Amul introduces the Best Thirst
Quenching Drink
CHEESECheese
Amul Pasteurised Processed
Cheese
100% Vegetarian Cheese
made from microbial rennet
Amul Cheese Spreads
Tasty Cheese Spreads in 3
great flavours..
Amul Emmental Cheese
The Great Swiss Cheese from
Amul, has a sweet-dry flavour
and hazelnut aroma
Amul Pizza Mozzarella
Cheese
Pizza cheese...makes great
tasting pizzas!
31
Gouda Cheese
FOR COOKING
For Cooking
Amul / Sagar Pure Ghee
Made from fresh cream. Has
typical rich aroma and
granular texture. An ethnic
product made by diaries 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
DESSERTS
Desserts
32
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.
Gulab Jamun Mix
Amul Chocolates
The perfect gift for someone you
love.
Amul Lassee
Amul Basundi
HEALTH DRINK
33
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.
INDUSTRY SCENARIO
Total ice cream market in our country is of Rs.2000 crores
34
in which branded ice cream market share is of Rs. 650 crores.
Amul captures around 27% of total market
share of organized sector. In 2003, Amul ice cream sales wet
Rs.160 crore, almost three times the Rs.55 crore sales in 1998.
The ice cream consumption in Delhi is
20% of the total consumption in our country. Out of which Amul
captures around 30% of the Delhi market.
OTHER PLAYERS IN ICE CREAM MARKET
EAST : Kwality Walls, Metro, Tullikas, Rollick.
WEST : Vadilal, Dinshaw’s, Havmor, Pastonji.
NORTH : Kwality Walls, Mother Dairy, Cream Bell, Vadilal.
SOUTH : Nandini, Joy, Arun.
INTERNATIONAL : Baskin Robbins, Kwality Walls INT.,
Moven pick, Nestle.
ICE CREAM MARKET FEATURES: -
35
Ice cream consumption is highest in western India (40%),
followed by north (30%), south (20%), and east (10%).
Immense opportunity in DELHI and NCR
Vanilla account for nearly 60% of the volumes.
Ice creams are mainly consumed in evenings.
Below 25 years age group account for 80% of consumption.
Consumption of ice cream goes down by 40% to 50% in
winter.
Retail account for 70% sales.
INTRODUTION TO AMUL ICE-CREAM
“Amul is a brand worthy of the trust of 1,000 million Indians”. It
has moved its marketing efforts up a gear in ice market. Amul has
been growing its market share in ice – cream segment. Amul ice –
cream has been cosidered as real ice – cream in comparisions
conducted by society “ consumer education and research society” ,
Insight (The Consumer Magazine) vol. 22, May –June 2002
Ahmadabad. In this they have tested four brands of Vanilla ice-
cream sold loose in Ahmadabad. The brands tested ware Amul,
Havmor , Kwlity Walls Max & Vadilal Dairy Premium. Among
the confirming brands Amul ranked first followed by Max. all the
36
samples found microbially contaminated, expect Amul, Kwality
Walls Max & Havmor.
CALORIES IN ICE CREAMS
Brands (Fat/100gm) (MSNF/100GM) Cal/100ml
Classic 128.7 146 268
Niruben 63 123 177
Havmor 34.2 150 177
Amul 133.2 90 174
KW Max 133.2 108 136
VadilalDairyPremium 108 91 111
Shree Janta 97.2 103.6 106
Patel Dairy 101.7 102.8 105
Amul is considered to be a real ice-cream because it fulfills the
definition of the ice- cream which contains:-
1. Sugar
2. Milk proteins
3. Milk fat (14% min.)
4. Liquid glucose
5. Emulsifying and stabilizing agent
37
Whereas other ice creams considered as frozen desert because
they contains: -
1. Sugar
2. Milk proteins
3. Vegetable fat (14% min.)
4. Liquid glucose
5. Emulsifying and stabilizing agent
The federation’s strategies includes a wide and diverse set of
Objectives –
1-To establish a strong and extensive marketing system
implementingthe policies and allowing member unions to
concentrate on procurement processing and packaging.
2-To accept and utilize all the products produced by its producer –
member creating a basis for a judicious product mix and sustained
growth.
3-To establish the income of producer-members round the
year, diminishing the ill-effects of seasonally fluctuating milk
Collections.
4-To assure producer-member of higher prices for the produce than
Would otherwise have been possible.
38
5-To assist its members in developing and standardizing
production and processing facilities.
6-To establish norms for uniform quality standards among all the
member unions.
7-To co-ordinate the operation of milk guide covering all
member unions, and of-setting imbalances between their
individual collections and their milk landing capacities.
8- To formulate production priorities and programmes to be
followed bythe member-unions.
9- To maintain a highly flexible product mix that would allow
greater economy of scale and ensure full utilization of capacity
10- To faster individual skill by providing training and
development facilities.
11- To develop and maintain communication channels up to the
village levels.
12- To ensure greater consumer acceptance of marketed products
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developing strengthening brand image.
Amul Has Focused on These Seven Marketing Plans or
Strategies to Emerging his Business In India and Worldwide -
1. Gain Customer Confidence:-
Customer indecisiveness, skepticism,
indifference, or confusion are among the top sales killers in the
business world. It's up to you to project an image of experience,
quality, dependability, excellent customer service, and/or value to
your prospective customers in order to win their confidence. If you
haven't clearly communicated the advantages and solid reasons for
them to do business with you, then they'll be hesitant to commit
and the sale will go to your competitor.
2. Penetrate awareness of your target audience by using
some form of integrated marketing-
In other words, the more ways the public
hears about you, the better your chances are for achieving brand
recognition, credibility, and greater market share. Effective
marketing is partly the result of exposing your target group to your
name and your selling points (unique selling proposition) as often
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as possible(frequency), in as many ways as possible, and as cost-
effectively as possible.
3. Enthusiasm-
In both print and in person, is contagious (and I'm not
talking about using multiple exclamation points after sentences!!!
That's just plain tacky.) If you deeply believe in your products,
services, your company, and yourself, then your prospects will
pick up on that passionate attitude and feel confident and
optimistic about doing business with you.
4. Purchasing is an emotional decision:
Instill in your prospects good feelings about
your company, your business relationship with them, and how you
can improve their lives or solve their problem. Accomplishing that
is at least as important in the sales process as focusing attention on
product features and benefits.
5. Dispel Distrust:
Gain customer confidence and overcome potential
feelings of distrust by offering written guarantees of satisfaction,
customer testimonials, references, and by joining respected and
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well-known professional organizations, such as the Better Business
Bureau, Chambers of Commerce, and industry associations.
6. Impose Deadline:
Counteract one of the biggest obstacles to
closing a sale known to mankind: procrastination. To overcome the
natural human tendancy to deliberate, postpone, and delay, it's
often necessary to inject a sense of urgency into your ads, sales
presentations, and marketing messages. Whether supplies are
limited or prices are going up at the end of the month, some
prospects need to have a deadline or an incentive to motivate them
to take action now.
7. Create a Marketing Plan:
To identify and capitalize on your strengths and
opportunities. Your strategic plan should also take into account
factors such asyour weaknesses (and possible remedies), external
threats (competition, economic factors, etc.), your marketing mix
strategy (products/services, promotional goals, pricing strategy,
and distribution decisions), media strategy, sales and expense
budgets, and target market analysis (know your customers).
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Amul Concentrate on Public Relations Marketing-
Public Relations involves a variety of
programs designed to maintain or enhance a company's image and
the products and services it offers. Successful implementation of
an effective public relations strategy can be a critical component to
a marketing plan.
A public relations (PR) strategy may
play a key role in an organization's promotional strategy. A
planned approach to leveraging public relations opportunities can
be just as important as advertising and sales promotions. Public
relations is one of the most effective methods to communicate and
relate to the market. It is powerful and, once things are in motion,
it is the most cost effective of all promotional activities. In some
cases, it is free.
The success of well executed Public
Relation plans can be seen through several organizations that have
made it a central focus of their promotional strategy. Paul
Newman's Salad Dressing, The Body Shop, and Ben & Jerry's Ice
Cream have positioned their organizations through effective Public
Relation strategies. Intel, Sprint and Microsoft have leveraged
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public relations to introduce and promote new products and
services.
Similar to the foundational goals of
marketing, effective public relations seeks to communicate
information to:
1. Launch new products and services.
2. Reposition a product or service.
3. Create or increase interest in a product, service, or brand.
4. Influence specific target groups.
5. Defend products or services that have suffered from negative
press or perception.
6. Enhance the firm's overall image.
7. The result of an effective public relations strategy is to
generate additional revenue through greater awareness and
information for the products and services an organization offers.
Some other valuable points which can help in making
relationship to their customers-
Goals and Objectives
Good strategy begins with identifying your goals and
stating your objectives. What are the goals and objectives beh your
public relations strategy and can they be measured and quantified?
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Each of these areas may reflect the goals your public relations
campaign may seek to accomplish.
Press relations
Communicating news and information of interest about
organizations in the most positive light.
Product and service promotion
Sponsoring various efforts to publicize specific products or
services.
Firm communications
Promoting a better and more attractive understanding
of the organization with internal and external communications.
Lobbying
Communicating with key individuals to positively
influence legislation and regulation.
Internal feedback
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Advising decision makers within the organization regarding the
public's perception and advising actions to be taken to change
negative opinions.
During making strategies company should also Concentrate on
Various Important Points -
1. Company should to know how to develop a results-driven
marketing plan.
2. Proven methods for performing low-cost market research that
generates repeat business.
3.How to create a profit-producing marketing budget.
4. Planning of their advertising budget.
5.Launching a retail advertising program.
6.Choosing advertising media and determining which will produce
the most cost-effective results.
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7.Create advertising that builds product awareness among the
peoples.
8. Time to time evaluating advertising results.
9. Locating and acquiring new customers.
10.How to expand their market.
11. Develope and quantify sales goals and sale projections.
12. How to get valuable free publicity with press releases.
13. Using signage as an effective marketing tool, selling on
consignment, selling through mail order, selling through
independent sales agents.
14.Company should to know how to set their optimal, competitive
prices .Because price setting is very important factor.
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ACHIEVEMENTS
1973 : Gujarat Co-operative Milk Marketing Federation Limited
(GMMF) began with a team of fifty five members in a two
hail rented office at ANAND in Gujarat.
1974 : GCMMF commenced the marketing of milk and other
dairy products from April. This year also witnessed the launch of
Amul Milk Chocolates, a quality product.
1976 : An important step was taken in establishing A
National Milk Grid. It also saw a successful launch Malted
Cocoa Beverage- Natural.
1978-79 : Federation crossed the border of Rs.100 crores in sales,
reaching a turnover of Rs. 107.45 crores. I n July 1978, the
federation was recognized as an implementing agency of the
programmes under operation flood second in October 1979, milk
highly perishable commodity was transported to calcutta by rail
tankers from ANAND .GCMMF’s head office was shifted to its
own building on amul dairy road, ANAND.
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1981-82 : The sales turnover of the federation crossed Rs.
163.65 crores.
1982 : Amul Shrikhand was introduced in febuary.
1983 : India’s first homogenized UHT milk in laminated
pyramid pack was launch under the brand name of Amul.
1985-86 : The federation’s sales turnover crossed Rs. 250
crores.
1987 : Federation launched Amul an instant milk powder
and Amul Elaichi Shake and Amul Chocó Shake flavored milk was
launched in 200 ml tetra packs
1988 : Amul Cheese was launched in selected markets.
1995 : Amul Lite a low fats, low cholesterol Cheese was
launched.
1996 : Federation entered the Ice-Cream business.
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OBJECTIVE OF THE STUDY
My project objective is to analyze marketing strategies of
amul with comparison to other competitors.
How amul became a number one F.M.C.G. company in ice-
cream market with in a three years.
Finding out the reason why amul is the big competitors to
others Ice-cream companies like mother dairy, vadilal,
kwality walls, dairy farm, dinshaw etc.
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RESEARCH METHODOLOGY
What is research?
Marketing research play an important role in the process of
marketing. Starting with market component of the total marketing
talks. It helps the firm to acquire a batter understanding of the
consumers, the competition and marketing environment.
Definition
“Marketing research is a systematic, gathering, recording and
analysis marketing problem to facilitate decision making”.
COUNDIFF & STILL
“Marketing research is a systematic problem analysis , model
building and fact finding for the purpose of important decision
making and control in the marketing of goods and services”.
PHILLIP KOTLER
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MAIN STEPS INVOLVED IN MARKETING RESEARCH
Defining the marketing problem to be talked and identifying the
market research problem involved in the task.
Define the problem and its objective’s.
Identify the problem.
Determine the information needed.
Determine the sources of information.
Decide research method collecting data.
DEFINE THE PROBLEM AND ITS OBJECTIVE’S
This includes an effective job in planning and designing a research
project that will provide the needed information .It also includes
the establishment of a general framework of major marketing
elements such as the industry elements, and company elements.
IDENTIFY THE PROBLEM
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Identifying the problem involves getting acquainted with the
company, Its business, Its products and market environment ,
Advertising by mean of library consultation and extensive
interviewing of company’s officials.
DETERMINE THE INFORMATION NEEDED
In the general the producer, the manufacturer, the wholesaler, and
the retailer try to find out four things namely-
What to sell
When to sell
Where to sell
How to sell
DETERMINE THE SOURCES OF INFORMATION
Primary data-
Primary data are those which are gathered specially for the project
at hand, directly- e.g. through questionnaires & interview. Primary
data sources include company salesman, middleman, consumer,
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buyers, trade association executives & other businessman & even
competitors.
Secondary data-
These are generally published sources, which have been collected
originally for some other purpose. Sources are internal company
records, government publication, report & journals, professional
and business associate’s publication &report.
DECIDE RESEARCH METHOD FOR COLLECTING
DATA
Survey method
Observation method
Experimentation method
Survey method
In this method, information gathered directly from individual
respondents, either through personal interviews or through mail
questionnaires or telephone interviews.
Observation method
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The research data are gathered through observing and recording
their actions in a marketing situation. This technique is highly
accurate. It is rather an expensive technique.
Experimentation method
This method involves carrying out a small scale trial solution to a
problem while at the same time, attempting to control all factors
relevant to the problem .The main assumption hear is that the test
condition are essentially the same as those that will be encountered
later when conclusion derived from the experiment are applied to a
broader making area.
Sample size:
This research is designed to assist the decision makers in
determining, evaluating and selecting a course of action to enhance
the sales of Amul product in fridabad city.
To have an insight of the problems faced by Amul retailer in NCR
regarding sales, a research is being conducted by us.
For it a sample size of 135 was taken across different categories of
retailers in the area of:
NCR ( Faridabad Harayana )
It consists of personal interviews with the retailers to generate
maximum insight. The findings of our research should be regarded
55
as tentative or as input for further research. This research could be
followed by further conclusive research.
Scope of the study
The scope of study is to understand the problem faced by the
company while increasing the retail outlets. With the help of this
project GCMMF can increase their outlets by analyzing the
feedback given by the interviewer (including existing and non
existing outlets). GCMMF can also analyze the pricing strategy
followed by the rivals. By this study company will get the
information about current competitive position of the Amul ice
cream in the market.
LIMITATION
Due to unavailability of proper conveyance facility, it was
really hard to cover the market under a scorching sun.
In many residential blocks shops located in corners of by lanes
were difficult to locate.
The time duration of two months was short for the completion
of all activities.
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Being a perishable product no sample could be shown as
demanded by many prospecting clients.
Market-analysis
AMUL focus would be more on widening its distribution network
& grabbing consumers attention through competitive pricing &
positioning of its products. In the take away segment amul are
offering a 1.25 litre party pack for Rs. 65, where as kwality walls is
changing the same for a 750 ml pack . Price list of some
companies are listed below :-
Price comparison
product Amul(Rs./Qty) KW(Rs./Qty) Vadilal(Rs./Qty) Mother
Dairy(Rs./Qty)
Chocobar 15 (60ml) 15(60ml) 15(60ml) 15(60ml)
Frostic 20(70ml) 20(75FD) 15(60FD) 18(60FD)
Orange
Candi
5(60ml) 5(45ml) 5(60ml) 5(55ml)
Cone 20(120ml) 25(125ml) 20(110ml) 25(115ml)
Vanilla 75(1.25ml) 99(1150ml) 75(1 ltr) 99 (1.25ml)
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Pack
For secondary objective:-
Survey on PUSH CART SALES at Faridabad Region.
This survey was just a part of project under which we tired to
collect the information of all the companies operating Push Carts
in Faridabad region. The objective of the survey was to find out the
answers of the following question: -
To find out how many push charts are operating in faridabad
region?
What are their Daily Average Sales?
What is their Margin and on what basis they get commission?
Various schemes offered by them?
Time period of operation of Push Charts?
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What is their time duration of sales?
Amul Mother Dairy Kwality walls Cream Bell
No. of Push
Charts.
35 23 20 12
Average Daily
Sales.
500-800 500-700 400-700 300-500
Schemes
offered
By them.
All seasonal
schemes.
All seasonal
schemes.
All seasonal
schemes.
All seasonal
schemes.
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Time &
Duration.
4 pm to 11
pm.
March-Oct.
4 pm to 11 pm.
March-Oct.
4 pm to 11 pm.
March-Oct.
4 pm to 11 pm.
March-Oct.
Findings of the Study
AMUL’S MARKETING MIX
A: PRODUCT:
A product is anything that can be offered to a market to satisfy a
want or need. The product can be classified according to the basis
of characteristics; durability, tangibility and use.
Amul ice cream comes under the heading of non durable goods
which are tangible, which can normally consumed in one or few
uses like Vegetables and Milk. As ice cream is also consumer
goods, we can further classify it under the sub heading of
convenience, shopping, specialty & cons ought goods. In this
classification ice cream comes under the heading of convenience
goods.
Convenience goods are those the customer usually purchases
frequently, immediately and with a minimum effort. Convenience
goods can be further divided. Staples are goods consumers
purchase on a regular basis. Like toothpaste, soaps etc. impulse
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goods are purchased without any planning or search effort like ice
cream, magazines etc. Emergency goods are purchased when a
need is urgent like umbrellas during rains
Product Mix
A product mix is the set of all products and items that a particular
seller offers for sale. As Amul has its product mix like icre cream,
milk, butter cheese, chocolate, dairy whiteners, pizzas, infant milk.
A company’s product mix has a certain width, length & depth.
The width of a product mix refers to how many different
product lines the company carries.
The length of a product mix refers to the total no. of items in
the mix.
The depth of a product mix refers to how many variants are
offered of each product in the line.
Product-Mix Width
Ice cream, cheese, milk, chocolate, butter, infant milk, dairy
whiteners.
Product-Line Analysis
Product line managers need to know the sales and profits of each
item in their line in order to determine which items to build,
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maintain, harvest or divert they also need to understand each
product lines market profile.
B: PROMOTION:
Today there is a new view of communications as an interactive
dialogue between the company and its customers that takes place
during the pre-selling, selling, consuming & post consuming
stages. Companies must ask not only “How can we reach our
customers” but also “How can our customers reach us”.
In reference with Amul, it always tries to communicate some
current topic in its hoardings (road side) and also on T.V.
advertisements.
Amul Promotional Mix
Advertising
TV compaign
Sigh alges
Shop painting
Posters & stickers
Pamphlets
Wall painting
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Public Relations Sales Promotion
Press campaign Food festivals
Posters/stickers
t-shirts/caps
The promotion mix consists of five major modes of
communications:
1. Advertising: Any said form of non personal presentation
and promotion of ideas, goods or services by an identified sponsor.
2. Sales promotion: AA variety of short-term incentives to
encourage trial or purchaser of a product or service.
3. Public relations and publicity: A variety of programs
designed to promote or protect a company’s image or its individual
products.
4. Personal selling: Face to face interaction with one or more
prospective purchasers for the purpose of making presentations
answering questions and procuring orders.
5. Direct marketing: Use of mail, telephone, fax, email or
internet to communicate directly with or; lkkk response or dialogue
from specific customers and prospects.
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The objectives of promotion are:
1. Awareness: If most of the target audience is unaware of
the product, the communicator’s task is to build awareness,
perhaps just name recognition, with simple messages repeating the
product name. For eg. Real Milk Readl Icre Cream for Amul Ice
Cream.
2. Knowledge: The target audience might have product
awareness but not know much more. For e.g. everybody knows
Amul is manufacturing butter & milk products, but many of us
don’t know Amul also supplies Frozen Pizzas and Infant Milk,
Health drinks.
3. Conviction: A target audience might prefer a particular
product but not develop a conviction about buying it. For e.g.
Amuls Tricome & k/w Cornetto are the supplementary products.
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4. Purchase: Finally, some members of the target audience
might have conviction but may not quite get around to making the
purchase. They wait for more information or plan to act later. The
communicate must lead these customers to take the final step,
perhaps by offering the product at a low price, offering a premium
or letting consumers try it out.
In case of Amul icre cream, it is offering the discount on Tricone
Rs. 3/- off and on Brick One+One scheme.
Factors in setting the promotional mix:
Companies must consider several factors in developing their
promotion mix: types of product market, consumer’s readiness to
make a purchase and stage in the product life cycle. Also important
is the company’s market rank. Market leaders derive more benefits
from advertising than from sales promotion. Conversely, smaller
competitors gain more by using sales promotion in their
promotional mix.
Type of product market:
As Amul is more into the consumer market, it spends on sales
promotion advertising personal selling and public relations. For
Business market it spends on personal selling, sales promotion,
advertising and public relations.
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Buyer-readiness stage: Promotional tools vary in cost
effectiveness at different stages of buyer readiness. Advertising &
publicity play the most important roles in the awareness building
stage. Customer comprehension is primarily affected by
advertising and personal selling. Customer conviction is influenced
mostly by personal selling. Closing the sale in influenced mostly
by personal selling and sales promotion. Reordering is also
affected mostly by
personal selling and sales promotion and some what by reminder
advertising.
PLC Stage: Promotional tools also vary in cst-effectiveness at
different stages of the product life cycles. In the introduction stage,
advertising & publicity have the highest cost effectiveness,
followed by personal selling to gain distribution coverage and sales
promotion to induce trial. In the growth stage, demand has its own
momentum through the word of mouth. In the maturity stage, sales
promotion advertising and personal selling all grow more
important. In the decline stage sales promotion continues strong,
advertising and publicity are reduced and sales people give the
product only minimal attention.
C: PRICE:
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A firm must set a price for the first time when it develops a new
product, when it introduces its regular product, when it introduces
its regular product into a new distribution channel or geographical
Area, the firm must decide where to position its product on quality
& price.
Setting pricing policy:
1. Selecting the pricing objective
2. Determining demand
3. Estimating cost
4. Analyzing competitors cost, prices & offers
5. Selecting a pricing method
6. Selecting the final price
1. Selecting the pricing objective:
The company first decides
where it wants to position its market offering. The clearer a firm’s
objective the easier it is to set price. A company can pursue and of
five major objectives through pricing: survival, maximum current
profit, maximum market share, maximum market skimming or
product-quality leadership.
Amul’s objective is to maximize their market share in the ice
cream industry. They believe that a higher sales volume will lead
67
to lower unit cost and higher long run profit. They set the lowest
price, assuming the market is price-sensitive. The following
conditions favors setting a lower price.
The market is highly price-sensitive and a low price.
Production & distribution costs fall with accumulated
production experience and
A low price discourages actual & potential competition.
2. Determining demand:
Each price will lead to a different
level of demand and therefore have a different impact on a
company’s marketing objectives. In the normal case, demand and
price are inversely related: the higher the price, the lower the
demand. Ice cream today has become the sweet dish earlier it was
considered as luxurious commodity.
3. Estimating costs:
Demand sets a ceiling on the price the
company can charge for its product. Costs set the floor. The
company wants to charge a price that covers its costs of producing,
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distributing and selling the products, including a fair return for its
effort and risk.
Amul is offering its retail chain differentiated marketing offers in
which it is trying to adopt their offers and terms to different
buyers. Thus a manufacturer will negotiate different terms with
different retail chain. One retailer may want daily delivery to keep
the stock lower while another may accept twice a week delivery in
order to get a lower price. The manufacturers cost will differ with
each chain and so will its profits. Recently Amul is offering its
retail chain a scheme called Bulk order purchase in which a retailer
gets additional profit margin of 19% on the purchase of Rs. 1900/-
or more.
4. Analyzing competitors cost, prices & offers:
Within the range of possible prices determined by
market demand and company costs, the firm must take the
competitors cost, prices and possible price reactions into account.
For e.g. On Amul Bricks 2 L schemes are offered (1) 25% extra &
(2) 1+1 free.
5. Selecting a pricing method:
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Given the three C’s – the
customers demand schedule, the cost function and competitor’s
prices, the company is now ready to select a price. There are seven
price setting methods: market up pricing, target return pricing,
perceived-value pricing, value pricing, going-rate pricing, auction-
type pricing and group pricing.
Amul has adopted value pricing in which they with loyal
customers by charging a fairly low price for a quality offering. In
case of Amul it is offering Real Milk Real Ice Cream and several
other schemes like 1+1 on Bricks (on 750ml Brick) and 25% extra
on 1ltr Brick of Vanila.
6. Selecting the final price:
Pricing methods narrow the range
from which the company must select its final price. In selecting
that final price the company must consider additional factors,
including psychological pricing, gain & risk-sharing pricing, the
influence of other marketing mix elements on price, company
pricing policies and the impact of price on other parties. In case of
Amul the influence of other marketing mix elements set the final
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price, the final price must take into account the brand quality and
advertising relative to competition.
D: PEOPLE:
As most of the services are provided by people, the
selection, training and motivating employee can make a huge
difference in customer satisfaction. Ideally employees should
exhibit competence, a caring attitudes, responsiveness, initiative,
problem solving ability and goodwill. These days Amul also has
started taking employees having these qualities in them to achieve
their objectives.
E: PHYISICAL EVIDENCE:
Companies also try to demonstrate
their services quality through physical evidence and presentation.
In this training we were given dsds of opportunity to demonstrate
& give presentation of the HADF scheme offered by the Amul.
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WHAT AMUL IS SEGMENTING & TARGETING
Segmenting:
The strategy point for discussing segmentation is
mass-marketing. In mass marketing, the seller engages in the mass
production, mass distribution and mass promotion of one product
for all buyers. The agreement for mass marketing is that it creates
the largest potential market which leads to the lowest costs, which
in turn can lead to lower prices or higher margins. Consumers have
more ways to shop: at malls, multiplex, specialty shops,
superstores, departmental stores & local shops also.
There are four levels: Segments, Niches, Local areas &
Individuals.
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In reference with Amul Ice Cream they are segmenting level
segments. A market segment consist of a group of customers who
share a similar set o wants.
The marketer does not create the segments, the marketers task
is to identifying the segments and decide which one(s) to target.
For e.g.: There are people who like to have only candies or milk
bars or cones or cups or bricks. Amul Ice Cream is creating a more
five-tuned product or service offering and pricing it appropriately
for the target segment.
Patterns of Market Segmentation
Here we will consider segment-centered
marketing. Marketing segments can be built up in many ways. One
way is to identify preference segments. Suppose ice cream buyers
are asked how much they value sweetness and creaminess as two
product attributes. Three different patterns can emerge:
1. Homogeneous preference:
Shows a market where all the consumers have roughly the same
preferences.
2. Diffused preference:
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At the other entrance, consumer preferences may
be scattered throughout the space, indicating that consumers vary
greatly in their preferences.
3. Clustered preference:
The market might reveal distinct preference clusters.
In reference with Amul Ice Cream, the pattern of market
segmentation is Homogeneous preference as they are
manufacturing Ice Cream in best proportion of sweetness &
creaminess.
Market Targeting
Once the firm has identified its market-segment
opportunities, it has to decide how many and which ones to
target.In evaluating different market segments, the firm must look
at two factors: the segments overall attractiveness and the
company’s objectives & resources. Does a potential segment have
characteristics that make it generally attractive such as size,
growth, profitability, scale economies and low risk? Does investing
in the segment make sense given the firms objectives,
competencies and resources? Some attractive segments may not
74
mesh with the company’s long-run objectives, or the company may
lack one or more necessary competencies to offer superior value. \
Having evaluated different segments, the company
considers five patterns of target market selection.
1. Single-segment concentration
2. Selective specialization
3. Product specialization
4. Market specialization
5. Full market coverag
In reference with Amul Ice Cream, it has selected to go for product
specialization. The firm is making certain product that it can be
sold to several segments.
Ice
Cream
Candies Cones Cups Bricks Kulfi
4 4 4 4 4
What Amul Ice Cream is positioning?
Positioning is not what you do to a product, positioning is what
you do to the mind of the prospect that is you position the product
in the mind of the prospect.
For eg: Real Milk Real Ice Cream.
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Data analysis & data interpretation
MARKET SHARE OF AMUL ICE-CREAM:
AMUL 30%
MOTHER DAIRY 25%
VADILAL 20%
OTHERS 25%
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AMUL feels that its share in the ice-cream market nationwide
certainly estimated at 18 million tones. GCMMF has beaten
KWALITY WALLS in ice-cream market .GCMMF ice –cream
business has sold 16 million cities growing at arround 50% .
AMUL claims it has inched closer to market share. Amul share
was 30% while that of Mother Dairy was 25%. AMUL simply
means “VALUE FOR MONEY” and QWALITY . Amul means a
range of superior products consumed by every age group and a
favrite in every part of the country.
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AMUL lack in their distribution network and promotional
strategies as their competitors are strong among in this area like
mother dairy, kwality walls, they have to take strong step in this
regard.
AMUL has the good potential market with competitive pricing
policy.
AMUL has the threat with other competitors in respect of verities
and pricing.
1 Which company has a good product range?
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INTERPRETATION
According to my survey, I observed that 27% customers thinking
that amul product has good product range available in the market.
2 Are you satisfied with the quality of product?
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INTERPRETATION
According to my survey, I observed that 45% of amul product
customer is satisfied with the quality of product.
3 Are you satisfied with the price of product?
80
INTERPRETATION
According to my survey, I observed that 45% of customer is
satisfied with the price of amul product.
4 Which company has a good advertisement policy?
81
INTERPRETATION
According to my survey, I observed that 27% of amul product are
available in the market.
5 Which company is providing good scheme?
82
6 Which type of problem you face in purchase time?
83
6 Which company has better packaging ?
84
8 Which brand of ice- cream you like most?
85
INTERPRETATION
According to my survey, I observed that 30% of people likes amul
ice-cream.
9 Which company’s product are easily available in the market?
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INTERPRETATION
According to my survey, I observed that 27% of amul product are
available in the market.
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SUGGESTIONS BY RETAILERS REGARDING
AMUL
Maintain the quality as Amul has been providing to the
customer. The quality should be sustainable so that people
get the better quality and service.
Amul is pure in quality as well as fresh also.
Amul has good quality comparatively to Mother Dairy, but
its service is not satisfactory. Service is mostly not on time in
evening.
Amul’s non availability of push cart is effecting the sale,
because when someone want to purchase it they do not get it
near their house and push cart also affect the retailer sells.
The retailer also complain about the promise of the company.
According to them they are not getting timely replacement
which decrease their fate on the company. Due to fear of
malting they do not store it.
And because of this reason the retailers take limited ice
cream so that they could sell it in the night only.
So provide timely replacement we can motivate them to stock
the ice cream in bulk which can be use when supply will be
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late. Mostly distributor use 2-3 people for these type of work
which is not sufficient for such kind of work.
Try to better the performance of the product.
Advertisement should be proper, specifically in NCR, to
create more awareness.
Improve the availability / service in the local market.
Amul All ice-cream product rage is not available in summer
time so other company ice –cream sale more than. we have
request company focus the product rage.
Ice-cream packaging box’s less county item.
That time summer season but not given the sachem company
Company hoding broad ,advertisement item ,is not enough
so please company focus the publicity .
There are retailer is a told amul ice-cream sale is good by
other company point of view.
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SWOT ANALYSIS
STRENGTH
Amul is a famous and old brand and its products are
preferable by all over India. It has Brand Equity.
Quality of Amul is high class and each product is made
from best resources. Amul is a symbol of a proven model
for dairy products.
Amul ice-cream is very cheap to the competitor.
WEAKNESS
Distribution channel of Amul ice-cream is weak and not
effective in most of the parts of NCR. Late delivery of ice-
cream and other products are not supplied properly like
Butter, Mattha etc.
Lack of product availability, which is in demand.
Late supply of ice-cream is a great obstacle in its success.
Amul ice-cream packing creates confusion to the mind of
consumer like some packet contenting manufactured by
mother dairy. Actually the mother dairy is the plant of
amul which is in Gujarat.
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OPPORTUNITIES
Amul has great market potential in the near future because
of its brand name, quality and its capability to supply
uninterrupted ice-cream.
Demand could be increased by improving quality and
providing supply in the evening and also improving the
service in morning.
Advertisements are required to create awareness about
Amul ice-cream.
THREATS
The biggest threat is its biggest competitor, Mother Dairy,
which has a good market share and also famous among
local retailers and consumers, being a local brand.
There is also the threat of upcoming competitor kawlity walls.
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Recommendations
Company should develop a results-driven marketing plan.
Company should create a profit-producing marketing
budget, advertising budget.
Company should launch a retail advertising program.
Company should choose a excellent advertising media and
determining which will produce the most cost-effective results,
creating advertising that builds product awareness.
Company should evaluate time to time advertising results,
locating and acquiring new customers.
Company should expand their market and quantify their
sales goals and sales projections.
Company should know how to get valuable free publicity
with press releases, using signage as an effective marketing tool,
Amul should invest more on advertisement for ice-cream
on T.V.
Amul should allot some more distributors because the market has
a large potential but due to lack of distribution, some retailers are
dis-satisfied.
It should give advertisement on T.V. , Radio & News Paper.
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It should provide pushcarts near schools & markets for easy
availability of ice-cream.
They can give some road shows related to importance of
amul ice-cream i.e. how it is better from other ice-creams.
Amul should provide some gifts to those retailers who selling
more ice-cream.
Ice-cream can be advertised in bus stops, movie theaters
during the interval session.
Company should give special offers to retailers frequently.
Company should expand their business throughout the small
towns.
Company should open exclusive amul parlors and outlets in
big shopping malls for promotion in higher segment.
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Conclusion
From the above research it can be concluded that amul is a
biggest brand in ice-cream since its inception in 2010 due to its
marketing strategies in rural and urban sectors.
It is a privilege to dealers to keep amul ice – cream in their
outlets.
The punch line- THE TASTE OF INDIA has created a great
impression to the consumer in rural and urban sector as well.
It has created a revolution in the production of milk in India.
Amul ‘The taste of India’
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BibliographyBooks
Kotler P., (2000), “Marketing Management”, Millenium
Edition, Prentice Hall of India, New Delhi.
Magazines
Business Today
Business World
Newspapers
The Economic Times, 23rd Dec., 2006.
The Business Standard, 27th Nov., 2006.
The Hindustan Times, 15th Nov., 2006.
Online Sources
www.google.com
www.indiainfoline.com
www.unilever.com
www.paradise.com
www.slideshare.com
www.amulicecream.com
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QuestionerSHOPE NAME…………………………………… ADDRESS …………………………
PH.NO………………………………………… …………………………………….
1 Which company has a good product range?
Amul Mother Dairy Other
2 Are you satisfied with the quality of product?
Yes No can’t say
3 Are you satisfied with the price of product?
Yes No can’t say
4 Which company has a good advertisement policy?
Amul Mother Dairy vadilal kwality wall’s
5 Which company is good scheme provide?
Amul Mother Dairy vadilal kwality wall’s
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6 Which type of problem you face in purchase time?
Price Problem Flavors Problem Other Problem
7 Which company has a better packaging ?
Amul mother dairy vadilal kwality wall’s
8 Which brand ice- cream you like most ?
Amul mother dairy vadilal. Kwalitywall’s
9 Which company product easily available in the market?
Amu Mother Dairy vadilal Kwalitywall’s
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Gujarat Cooperative Milk
Marketing Federation,ltd.
Head
Offic
e
:- Gujarat Cooperative Milk
Marketing Federation,
PO Box 10, Amul Dairy Road, Anand 388 001,
Gujarat, India.
24/1, D Block, Institutional Area, Janakpuri, New
Delhi-110058.
Ph.
No.
(+91) (2692) 240070, 258506, 258507, 258508,
258509
Fax
no.
(+91) (2692) 240208, 240185
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Sumbited By:-
KUMAR GANGESH GUNJAN
SINGH
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