For more project visit · For more project visit 2 PROJECT REPORT ... DISTRIBUTORS OF AMUL...
Transcript of For more project visit · For more project visit 2 PROJECT REPORT ... DISTRIBUTORS OF AMUL...
For more project visit www.techshristi.com
1
For more project visit www.techshristi.com
2
PROJECT REPORT
By Chinmay Bande.(A-65,Marketing-
09313326439,[email protected])
Sadhana Centre For Management And Leadership
Development, Pune.
“MARKET DEVELOPMENT FOR NEWLY APPOINTED
DISTRIBUTORS OF AMUL BEVERAGES IN PUNE”
Gujarat Cooperative Milk Marketing Federation
(GCMMF)
UNDER GUIDANCE OF-
Mrs.Richie Agarwal (Sr. Sales Executive)
Mr.Atul Suru (Assi.Gen.Manager,Sales)
For more project visit www.techshristi.com
3
ACKNOWLEDGMENT
I would like to take this opportunity to express my since
gratitude to all those who guide me in right direction to complete this report.
I express my deep sincere gratitude to Prof.M.S.Pillai, founder director of Sadhana Centre For Management And Leadership Development (SCMLD) for his encouragement throughout the course of this study.
I also take this opportunity to thank all my teachers for their constant guidance and assistance throughout this study. I also express my sincere thank to my both mentors Mrs.Richie Agarwal and Mr.Atul Suru for their constant support and guidance throughout the project. I would also like to heartily thank my friends Ankur, Hanif, Nikhil, Sourabh and Siddhartha for helping me at every point of time. At last but not least my grateful thanks to the distributors allotted to me Mr.Palkar and Mr.Prince Calra, who kept faith in me. Chinmay Bande. Marketing (A-65), Sadhana Centre For Management And Leadership Development, (SCMLD).
For more project visit www.techshristi.com
4
Sr. no Topic Page no.
1 CERTIFICATE OF COMPLETION 4
2 FOOD INDUSTRY PROFILE 5
3 MILK PROCESSING INDUSTRY PROFILE 7
4 INTRODUCTION AND HISTORY OF AMUL 12
5 GUJRAT COOPERATIVE MILK MARKETING
FEDERATION GCMMF: AN OVERVIEW
15
6 AMULS SECRET OF SUCCESS 16
7 NEED FOR THIS PROJECT 26
8 BACKGROUND STUDY 27
9 SPECIFIC OBJECTIVES OF PROJECTS 29
10 TOPIC SELECTED FOR STUDY 30
11 JUSTIFICATION OF TOPIC SELECTED FOR STUDY 31
12 TENTITIVE LIST OF HYPOTHESIS 32
13 SCOPE OF THIS STUDY 32
14 UTILITY OF STUDY 32
15 ACTUAL STUDY 33
16 RECOMMENDATIONS 37
17 OPERATIONAL PROCEDURE FOR IMPLEMENTATION 41
18 CHECKLIST 48
For more project visit www.techshristi.com
5
FOOD INDUSTRY PROFILE
The food industry is the complex, global collective of diverse businesses that together supply much of the food energy consumed by the world population. Only subsistence farmers, those who survive on what they grow, can be considered outside of the scope of the modern food industry. The food industry includes:
Regulation: local, regional, national and international rules and regulations for food production and sale, including food quality and food safety, and industry lobbying activities
Education: academic, vocational, consultancy
Research and development: food technology
Financial services: insurance, credit
Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural construction, etc.
Agriculture: raising of crops and livestock, seafood
Food processing: preparation of fresh products for market, manufacture of prepared food products
Marketing: promotion of generic products (e.g. milk board), new products, public opinion, through advertising, packaging, public relations, etc
Wholesale and distribution: warehousing, transportation, logistics
Retail: supermarket chains and independent food stores, direct-to-consumer, restaurant, food services
For more project visit www.techshristi.com
6
ADVANTAGE OF INDIA UNDER FOOD INDUSTRY
India is one of the largest food producers in the world
India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies Investment requirement of around US$ 15 billion exists in the food processing sector
India is looking for investment in infrastructure, packaging and marketing
India has huge scientific and research talent pool
A largely untapped domestic market of 1000 million consumers
300 million upper and middle class consume processed food
200 million more consumers expected to shift to processed food by 2010
Well developed infrastructure and distribution network
Rapid urbanization, increased literacy, changing life style, increased number of women in workforce, rising per capita income- leading to rapid growth and new opportunities in food and beverages sector
50 per cent of household expenditure by Indians is on food items
Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia)
Under the food industry, Dairy product is very important
part of food processing. Dairy processing is acting good role in India.
For more project visit www.techshristi.com
7
MILK PROCESSING INDUSTRY PROFILE Dairy is a place where handling of milk and milk products is
done and technology refers to the application of scientific knowledge for practical purposes. Dairy technology has been defined as that branch of dairy science, which deals with the processing of milk and the manufacture of milk products on an industrial scale.
The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world.
The dairy sector has developed through co-operatives in many parts of the State. During 1997-98, the State had 60 milk processing plants with an aggregate processing capacity of 5.8 million litres per day. In addition to these processing plants, 123 Government and 33 co-operatives milk chilling centres operate in the State.
Also India today is the lowest cost producer of per litre of
milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at around Rs7,00,000 mn.
For more project visit www.techshristi.com
8
Milk Production from 1950 to 2020
· 1950 – 17 million tonnes · 1996 – 70.8 million tonnes · 1997 – 74.3 million tonnes · (Projected) 2020 – 240 million tonnes · Expected to reach- 220 to 250 mt – 2020
India contributes to world milk production rise from 12-15 % & it will increase up to 30-35% (year 2020).
World's Major Milk Producers (Million MTs)
For more project visit www.techshristi.com
9
Research and Development in Dairy Industry
The research and development need to the dairy industry to
develop and survives for long time with better status. The various institute and milk dairy companies R&D results provide base for today’s industry growth and development. The research and development of products of dairy, like yogurt and cheese market research and company reports provides insights into product and market trends, analysis opportunities, sales and marketing strategies will help local milk unions to develop and spread worldwide through obtaining this knowledge. Specific on market share, segmentation, size and growth in the US and global markets are also helps industry to expand its market worldwide even small union also.
Products and Industry Status
Among the products manufactured by organized sector are Ghee, Butter, Cheese, Ice-Creams, Milk powders, Melted milk food, Infant food, condensed milk etc. some milk products like Casein and Lactose are also being manufactured lately. Therefore, there is good scope for manufacturing these products locally.
Liberalization of the economy has led to a flood of new entrants, including MNCs due to good prospects and abundant supply.
Investment Potential in Milk Products
At the present rate of growth, India is expected to overtake
the US in milk production by the year 2010, when demand is expected to be over 125.69 ml.tn. Being largely imported, manufacture of casein and lactose has good scope in the country.
For more project visit www.techshristi.com
10
Exports of milk products have been decentralized and export in 2005-2010 is estimated at 71.875 cr.
Production of Milk in India
The facts and figures here shown are calculated on the basis of percentage increases pear year.
For more project visit www.techshristi.com
11
India ranks first in the world in terms of milk production. Indian production stands at 91 million tonnes growing at a CAGR of 4 per cent. This is primarily due to the initiatives taken by the Operation flood programmes in organizing milk producers into cooperatives; building infrastructure for milk procurement, processing and marketing and providing financial, technical and management inputs by the Ministry of Agriculture and Ministry of Food Processing Industries to turn the dairy sector into viable self-sustaining organized sector. About 35% of milk produced in India is processed. The organized sector (large scale dairy plants) processes about 13 million tonnes annually, while the unorganized sector processes about 22 million tonnes per annum. In the organized sector, there are 676 dairy plants in the Cooperative, Private and Government sectors registered with the Government of India and the state Governments. India has a unique pattern of production, processing and marketing/consumption of milk, which is not comparable with any large milk producing country. Approximately 70 million rural households (primarily, small and marginal farmers and landless labourers ) in the country are engaged in milk production. Over 11 million farmer are organized into about 0.1 million village Dairy Cooperative Societies (DCS)(about 110 farmers per DCS). The cumulative milk handled by DCS across the country is about 18 million kg of milk per day. These cooperatives form part of a national milk grid which links the milk producers throughout India with consumers in more than 700 towns and cities bridging the gaps on account of seasonal and regional variations in the availability of milk.
The Ministry of food Processing Industries is promoting organized Dairy processing sector to accomplish upcoming demands of processed dairy products and helping to identify various areas of research for future product development and quality improvement to revamp the Indian dairy export by way of providing financial assistance to the dairy processing units. 32 Units have been sanctioned financial assistance (Rs.591 lakhs) under the plan scheme of the Ministry during the year 2006-07.
For more project visit www.techshristi.com
12
INTRODUCTION AND HISTORY
In the year 1946 the first milk union was established. This
union was started with 250 litres of milk per day. In the year
1955 AMUL was established. In the year 1946 the union was
known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’
UNION. This union selected the brand name AMUL in 1955.
The brand name Amul means “AMULYA”. This word derived
from the Sanskrit word “AMULYA” which means “PRICELESS”. A
quality control expert in Anand had suggested the brand name
“AMUL”. Amul products have been in use in millions of homes
since 1946. Amul Butter, Amul Milk Powder, Amul Ghee,
Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand,
Amul Ice cream, Nutramul, Amul Milk and Amulya have made
Amul a leading food brand in India. (The total sale is Rs. 6 billion
in 2005).Today Amul is a symbol of many things like of the high-
quality products sold at reasonable prices, of the genesis of a vast
cooperative network, of the triumph of indigenous technology, of
the marketing savvy of a farmers' organization. And have a
proven model for dairy development (Generally known as “ANAND
PATTERN”).
In the early 40’s, the main sources of earning for the
farmers of Kaira district were farming and selling of milk. That
time there was high demand for milk in Bombay. The main
supplier of the milk was Polson dairy limited, which was a
privately owned company and held monopoly over the supply of
milk at Bombay from the Kaira district. This system leads to
exploitation of poor and illiterates’ farmers by the private traders.
The traders used to beside the prices of milk and the farmers
were forced to accept it without uttering a single word.
However, when the exploitation became intolerable, the
farmers were frustrated. They collectively appealed to Sardar
Vallabhbhai Patel, who was a leading activist in the freedom
movement. Sardar Patel advised the farmers to sell the milk on
For more project visit www.techshristi.com
13
their own by establishing a co-operative union, Instead of
supplying milk to private traders. Sardar Patel sent the farmers
to Shri Morarji Desai in order to gain his co-operation and help.
Shri Desai held a meeting at Samarkha village near Anand, on 4th
January 1946. He advised the farmers to form a society for
collection of the milk.
These village societies would collect the milk themselves and
would decide the prices at which they can sell the milk. The
district union was also form to collect the milk from such village
cooperative societies and to sell them. It was also resolved that
the Government should be asked to buy milk from the union.
However, the govt. did not seem to help farmers by any
means. It gave the negative response by turning down the
demand for the milk. To respond to this action of govt., the
farmers of Kaira district went on a milk strike. For 15 whole days
not a single drop of milk was sold to the traders. As a result the
Bombay milk scheme was severely affected. The milk
commissioner of Bombay then visited Anand to assess the
situation. Having seemed the condition, he decided to fulfil the
farmers demand.
Thus their cooperative unions were forced at the village and
district level to collect and sell milk on a cooperative basis,
without the intervention of Government. Mr. Verghese Kurien
showed main interest in establishing union who was supported
by Shri Tribhuvandas Patel who lead the farmers in forming the
Cooperative unions at the village level. The Kaira district milk
producers union was thus established in ANAND and was
registered formally on 14th December 1946. Since farmers sold all
the milk in Anand through a co-operative union, it was
commonly resolved to sell the milk under the brand name AMUL.
At these initial stage only 250 litres of milk was collected
every day. But with the growing awareness of the benefits of the
cooperativeness, the collection of milk increased. Today Amul
collect 11 lakhs litres of milk every day. Since milk was a
For more project visit www.techshristi.com
14
perishable commodity it becomes difficult to preserve milk flora
longer period. Besides when the milk was to be collected from the
far places, there was a fear of spoiling of milk. To overcome this
problem the union thought out to develop the chilling unit at
various junctions, which would collect the milk and could chill it,
so as to preserve it for a longer period. Thus, today Amul has
more than 150 chilling centres in various villages. Milk is
collected from almost 1073 societies.
With the financial help from UNICEF, assistance from the
govt. of New Zealand under the Colombo plan, of Rs. 50 millions
for factory to manufacture milk powder and butter was planned.
Dr.Rajendra Prasad, the president of India laid the foundation on
November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime
minister of India declared it open at Amul dairy on November 20,
1955.
Members: 13 district cooperative milk producers' Union
No. of Producer Members: 2.7 million
No. of Village Societies: 13,141
Total Milk handling capacity:
10.21 million litres per day
Milk collection (Total - 2007-08):
2.69 billion litres
Milk collection (Daily Average 2007-08):
7.4 million litres
Milk Drying Capacity: 626 Mts. per day
Cattlefeed manufacturing Capacity:
3090 Mts per day
For more project visit www.techshristi.com
15
Gujarat Cooperative Milk Marketing Federation
GCMMF: An Overview Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.
Sales turn over from 1994 to 2008
For more project visit www.techshristi.com
16
AMUL'S SECRET OF SUCCESS
The system succeeded mainly because it provides an
assured market at remunerative prices for producers' milk
besides acting as a channel to market the production
enhancement package. What's more, it does not disturb the agro-
system of the farmers. It also enables the consumer an access to
high quality milk and milk products. Contrary to the traditional
system, when the profit of the business was cornered by the
middlemen, the system ensured that the profit goes to the
participants for their socio-economic upliftment and common
good.
Looking back on the path traversed by Amul, the following
features make it a pattern and model for emulation elsewhere.
Amul has been able to:
· Produce an appropriate blend of the policy makers farmers
board of management and the professionals: each group
appreciating its rotes and limitations,
· Bring at the command of the rural milk producers the best
of the technology and harness its fruit for betterment.
· Provide a support system to the milk producers without
disturbing their agro-economic systems,
· Plough back the profits, by prudent use of men, material
and machines, in the rural sector for the common good and
betterment of the member producers and
· Even though, growing with time and on scale, it has
remained with the smallest producer members. In that
sense, Amul is an example par excellence, of an intervention
for rural change.
The Union looks after policy formulation, processing and
marketing of milk, provision of technical inputs to enhance milk
yield of animals, the artificial insemination service, veterinary
care, better feeds and the like - all through the village societies.
For more project visit www.techshristi.com
17
Basically the union and cooperation of people brought Amul into
fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which
suggest THE TASTE OF INDIA.
Amul (Anand milk union ltd.) is based on four hands, which are coordinated with each other. The actual meaning of this symbol is co-ordination of four hands of different people by whom this union is at the top position in Asia.
1. First hand is of farmers, without whom the organization would not have existed.
2. Second hand is of processors, who process the row material (milk) into finished goods.
3. Third hand is of marketer, without whom the product would have not reached the customers
4. Fourth hand is of customers, without whom the products would have not carried on.
For more project visit www.techshristi.com
18
Ownership Pattern of Amul
Amul is a co-operative sector & it is having 22 total
numbers in societies. In addition to this there is total 1800 manpower in organization.
Gujarat co-operative milk marketing federation ltd. widely known as GCMMF faces through competition in the Indian market by different companies. So that by advertising and promoting its product GCMMF has become one of the leading dairies in India. In western of India, GCMMF shares most of the market while in other parts of India it is next so. But slowly and surely GCMMF is growing in sharing the market with other competitors industries.
Now there is machinery around Rs. 1500 lakh which is to be in expansion with higher advanced machinery to Rs. 1600 lakhs.
Accumulated members share capital in union is Rs. 553,935,000 this share capital is deposited in Amul bank account in the name respective member dairy co-operative societies.
Information about Competitors
The Indian market is dominated by a large number of small local manufacture and regional players. There are an estimated 150 manufactures in the organized segment which account for 30-40% of sales and about 1000 units in the unorganized segment of the market.
They have also competitor in the market. They felt very tuff competition in our country and outing countries. Competitors according to product category are as follows:-
For more project visit www.techshristi.com
19
1) For Liquid Milk · Chitale Milk · Gowardhan Milk · Mother Dairy · Katraj Milk · Rajhanse Milk
2) For Ice-Cream Product
· Gokul Ice-Cream · Mother Dairy Ice-Cream · Shriji Ice-Cream · Dinshaw Ice-Cream · Kavare Ice-Cream · Vadilal Ice-Cream
3) For Ghee Product · GowardhanGhee · Sphurti Ghee · Krishna Ghee · ChitaleGhee
4) For Chocolate · Cadbury · Max · Dairy Milk · Five Star
· Bar One
· Perk
· Nestle
For more project visit www.techshristi.com
20
Achievements \ awards:
Amul a co-operative society and its co-operation has led many different awards in its favour.
· Magsaysay award for community leadership presented in
manila, · Philippines to Shri Tribhuvandas Patel, Shri D N Khurody
and Shri V. Kurien
1964: “Padmabhusan” award given to Shri T.K. Patel
1965: “Padmshri awarded was given to V. Kurien, general manager, by the president of India 1987: “Best Productivity” awarded by national productivity council for the year 1985-86 awarded to Amul dairy. 1988: “Best Productivity” awarded for the second successive year 1986-87 by the president of India, Mr. R. Venkatrao to kaira union. 1993: “ICA” Memenoto towards genuine and self sustaining co-operative worldwide ICA regional office for Asia and pacific, New Delhi, 1996. 1999: G.B.Birla award. Moreover the Amul union has achieved the prestigious ISO 9001-2000 and HACCP Certificate and effects are got to obtain ISO 14000.
For more project visit www.techshristi.com
21
List of Product Marketed.
For more project visit www.techshristi.com
22
For more project visit www.techshristi.com
23
For more project visit www.techshristi.com
24
For more project visit www.techshristi.com
25
For more project visit www.techshristi.com
26
Need For This Project
Up to April 2009 all products sold the umbrella brand of
Amul are sold to the retailers through one distributor only. But
since mid April according to new adopted corporate strategy of
Amul they divided all products into two categories as-
1. Products which requires cold storage to store at
distributor(Amul Ice-cream ,Butter,cheese)
2. Products which doesn’t require cold storage at
distributor(Amul Beverages and Ghee)
At retailers level all Amul products require cold storage before
selling to consumers; here we are talking about requirement of
cold storage at distributor level before supplying products to all
retailers. So now these two types of product categories are sold
by two different distributors.
So now there is need to guide these newly appointed distributors
for Amul beverages and ghee:-
To set all procedures in place,
Manage, motivate sales force,
Solve territory conflicts,
And improve the efficiency of their business.
Also help them to develop his market in given territory in
Pune,
To increase the sales and try to find if any problem to do so
and find solution for that problem.
For more project visit www.techshristi.com
27
BACKGROUND STUDY
To get conceptual knowledge regarding this project I did following
things:-
1) I read book ‘Marketing Management-Philip Kotlar’ (chapter
no.15: Designing And Managing Integrated Marketing Channels).
Channel management decisions,
Training and motivating channel members,
Evaluating channel members
Channel conflict(types, causes and their management)
Different channel levels(0,1,2,3)
2) I also read book ‘Sales Management-Pearson Education’.
Theories of selling
AIDAS theory,
Right set of circumstances theory,
Buying formula theory,
Behavioural equation theory
Prospecting: the planning work, which is essential in
eliminating calls on nonbuyers
For more project visit www.techshristi.com
28
3) I read book ‘Spin Selling-Neil Rackham’.
Difference between large and small sales and their
characteristics
Distinct steps of sales-
1) Opening the call,
2) Investigating needs,
3) Giving benefits,
4) Objection handling,
5) Closing the call
Different closing techniques-
Assumptive closes=assuming that the sale has
already made. For example-“Where would you like it
delivered” before the customer has made the
purchasing decision.
Alternatives closes=giving customer options
assuming customer has made purchase decision.
For example-“Would you prefer delivery today or
tomorrow?”
Standing-room-only closes=telling him that if he
doesn’t make decision now, I’ll have to offer it to
another customer.
Last-chance closes=telling him that prices go up
next week, so pressing to buy it.
Order-blank closes= filling in the customer’s
answers on an order form, even though the buyer
has not indicated a willingness to make a buying
decision.
4) I have studied Amul’s website also.
For more project visit www.techshristi.com
29
SPECIFIC OBJECTIVES OF THE PROJECT
There were six main objectives of the project and they are defined
as following:-
1) Sales
Make regular calls
Handle questions and objections
Check stocks, discover possible markets for products
Estimate retailers potential needs
Emphasize quality
Explain company policy on price, delivery, and credit
Get the order
2) Service
Install the product or display
Report product weakness, complaints
Handle requests, returns, and allowances
Handle request for credit
Handle special orders
Establish priorities, if any
Analyse local conditions
3) Territory Management
Arrange route for best coverage
Balance effort with customer against the potential
volume
Maintain sales portfolios, samples and so forth
4) Sales Promotion
Develop new prospects and accounts
Distribute home office literature, catalogues
Make calls with salespeople
Train personnel
Present survey reports
5) Executive
Each evening make daily work plan for the next day
Organise field activity for minimum travel & maximum
calls
For more project visit www.techshristi.com
30
Prepare and submit reports on trends and competition
Investigate lost sales and reasons for loss
Attend sales meetings
Build a prospect list
Collect overdue accounts, report on faulty accounts
Collect credit information
6) Goodwill
Counsel customers on their problems
Maintain loyalty and respect for the company
TOPIC SELECTED FOR STUDY
1) To prove that there is need of point of purchase (POP)
display programme at retailers of Amul.
2) To design a point of purchase (POP) display programme
for retailers of Amul beverages.
For more project visit www.techshristi.com
31
JUSTIFICATION OF THE TOPIC SELECTED FOR
STUDY
I worked for summer project for two months (May & Jun 2009)
with two newly appointed distributers for Amul beverages and
ghee (products for which no cold storage is required at
distributor) in Pune.
1) Vayanktesh Sales,Bawdhan
2) Fairdeal,Mundhawa
During my work I came across two main problems to achieve my
objectives of Project and they are as:-
1) Poor display of products at retailers= products allotted to
me i.e. beverages are seasonal in nature (mostly sold during
summer season). Also these are impulse products.
Consumers don’t usually go to shop to have Amul
beverages; they go there to quench their thirst so here
displays play very important role in making final purchase
decision by consumer. So I decided to design a POP display
programme for Amul beverages to increase the probability of
their sale.
2) No fixed model for functioning for salespeople=as these new
salespeople are new with no prior history of sales for
beverages, no quotas, without knowledge for market
need/potential for Amul beverages and no well defined role
of salesmanship for them, they used to work as per their
convenience and in turn creating problems for achieving
project objectives. So I decided to create a model for
salespeople to make them work to their maximum efficiency
and increase sales.
For more project visit www.techshristi.com
32
TENTATIVE LIST OF HYPOTHESIS
By the preliminary research I have done and by observation I
came to the hypothesis that ‘Amul need to do Point of Purchase
(POP) display at retailers in Pune.’
SCOPE OF STUDY
Geographical Scope:- research is done in the territory that
comes under distributors allotted to me in Pune i.e.-
1. Vyankatesh distributor= Bawadhan, Karvenagar,
Deccan, WAraje, Paud Road
2. Fairdeal distributor= Mundhawa, Camp, Magarpatta
City, Hadapsar
Type of Data Collected:- primary data
Methods of data collection:-observation and interview
methods
UTILITY OF THIS STUDY
Products allotted to me i.e. beverages are seasonal in nature
(mostly sold during summer season). Also these are impulse
products. Consumers don’t usually go to shop to have Amul
beverages; they go there to quench their thirst so here displays
play very important role in making final purchase decision by
consumer. So there is need of point of purchase display at
retailers and it will definitely help achieve the objective of the
project i.e. to increase the probability of consumer buying Amul’s
products.
For more project visit www.techshristi.com
33
ACTUAL STUDY
1) Opinion towards Products: The behaviour of users after his commitment to a product has been collected with respect product and terms of satisfaction with rating scale. The following are the data obtained related to AMUL Milk & Milk products.
Interpretation: 25% of the respondents rated that AMUL Milk & Milk products are Excellent. 48% of the respondents rated as good, 22% of the respondents rated as Average Quality. 05% of the respondents rated that AMUL Milk & Milk products are Poor.
For more project visit www.techshristi.com
34
2)Factors considered to make purchase decision: Identification of various factors plays a vital role in consumer behaviour study. The various factors such as quality, price easy available etc. Is influencing lot and influences positively. The following data reveals how various factors are influencing to buying of Amul Milk and Milk products.
For more project visit www.techshristi.com
35
Interpretation: 38% of respondents buying AMUL Milk & Milk products for its Good Quality, 28% of respondents use for its Band Name, 20% of its Price consideration, 14% of its easy availability of respondents buying AMUL Milk & Milk products. All 86% of respondents who don’t buy Amul beverages because they are easily available when interviewed agreed that due to no displays at retailer they don’t come to know what all products he has so they often demand for products which they know only. So I concluded that it is very important to design POP display programme for Amul beverages. 3)Common Complaints: A customer cantered organization makes it ways for its customer to deliver suggestion and complaints. Many firms provide form for collecting feedback on products and some time customer complaints and suggestion about products. In this survey, common problems raised by the customer or not.
For more project visit www.techshristi.com
36
Interpretation: Only 10% of the respondents said that that there is no problem is AMUL Milk & Milk products. 90% of the respondents are said that no problems in AMUL Milk & Milk products. When those 10% respondents who are unhappy have one common complaint poor display of products at retailers.
For more project visit www.techshristi.com
37
RECOMMENDATIONS
(1)From above research it is clear that there is dire need for Point
Of Purchase display programme for retailers of Amul. Also, I have
hardly seen any advertisement at the retailers which can make
consumer aware that we exist. Also all products of my distributer
are stocked in warm shelf. Their shelf display was also poor i.e.
our products are placed at backside of shelf, which directly affect
our sales as all our products are impulse. And most products
being seasonal we really need to make our product visible
everywhere, at least at retailer’s place.
When I put myself into consumer’s shoe, generally I don’t go
into a shop to drink Amul’s beverage. I go there because I am
thirsty, now if our display is poor, I am going to buy that
beverage which has consisted most share of mind (SOM) which is
decided by communication mix and factors (reach, impact and
frequency) of that communication tool (TV, radio, print, other
medium) used or by advertisement at point of purchase (pop).
Example-
If I am thirsty and go to shop to drink something, if I see
some Amul’s products POP (Poster etc.). I‘ll most likely to buy
Amul’s product. So if we work more on POP displays, which I
think help Amul to sale better in our season.
For more project visit www.techshristi.com
38
(2)In today’s cut throat competition POP displays aren’t option
but compulsion to get maximum sales.
-If we see Amul beverage’s competitors are as:-
Water
Pepsi products
Coca-Cola products
Juices
Local cold drink manufacturers
Street Hawkers selling Nimbupani etc.
-We can classify all these into 3 main categories as:-
Competitors
Substitutes
Threat of new entrants
In this cut throat competition all trying to eat same pie. POP can
help us to fight back. And I think today extensive use of POP is
not an option for us, it is rather compulsion for us because our
competitors are doing it and that is helping them to attract some
of our customers.
(3)In warehouse while staking the products, on the boxes
instructions are clearly mentioned about maximum no. Of boxes
which can be staked one above other but here these instructions
are not followed which can increase waste. So distributer’s
should be made aware about this and asked to instruct concern
person to follow the instructions on boxes strictly.
For more project visit www.techshristi.com
39
(4)Recommendations for handling sales force:-
1)We know,
Total sales volume per day= Order per retailers X No. Of
Retailers covered
Now based on this we can increase the sales in two ways as-
Increasing volume of order from each retailer:
By using personal salesman skills
By using personal repo
By taking help of our products which are sold under
Pull Factor i.e. Masti buttermilk or no. Of boxes of
buttermilk will be decided on the basis of order
volume of other products from same retailers.
Because they cannot afford not to keep that
product.
Make good use of schemes to push products.
Increase the no. Of retailers covered per day
By adding new 5 shops per day to your earlier list of
retailers visited per day (+ 5 FORMULA )
By adding snacks centres, college canteens, small
hotels etc.
2) As per my observation, salesman is finding it a bit difficult to
push our products harder when it comes to –
very low margins for all our products as compared to our
competitors
our no replacement strategy
no credit facility available
For more project visit www.techshristi.com
40
So salespeople should follow the below mentioned approach for
getting orders from retailers:-
Likely arguments done by them and probable answers for
them
How to make use of schemes to push our products
Average targets to be achieved for each beat
3) I think to deal with this we can train our salesman or at-least
give a structured speech to talk for all these problems. I believe
these are such problems which cannot be removed but only
be managed. So such structured speeches can make our
salesmen better equipped to manage such situations and keep
getting larger sales orders. Also it can help us by avoiding any
chance of brand erosion even in minds of the retailers
For more project visit www.techshristi.com
41
OPERATIONAL PROCEDURES FOR IMPLEMENTATION
OF THE RECOMMENDATION
Our markets can be segmented along 3 lines:-
Kirana shop Volume
Chemist’s product portfolio
Hotel Cluster
For more project visit www.techshristi.com
42
1. On basis of Kirana shop volume-
Economy
Deluxe
Super Deluxe
2. On basis of Hotel Cluster-
Convenience
Snack Centres
3. On basis of Chemists Product Portfolio- Where;-
Economy= retailers having sales volume above average per day for that distributor
Deluxe= retailers having sales volume average per day for that distributor
Super Deluxe= retailers having sales volume below average for that distributer
Convenience= includes outlets which are small eating centres, generally accessible locally. These are often located alongside busy roads. Here one can stand and does not have place to sit. It includes STD booths/Pan-Beedi shops/Bakery/Sweet Shops/Juice centres/Soft Drinks Shops/Tea Shops etc.
Snacks Centres= includes outlets selling items to eat and the outlet should have place to sit. It includes sit down restaurants/Bars/Dhabas/Cafes etc.
For more project visit www.techshristi.com
43
UCVA MODEL
= X X
X
Now each element of this mathematical formula decides what
facilities will be given to any retailer for point of purchase
advertisement such as:-
Universe: Shelf Talkers, Counter Tops
Customer: Cooler, Table Tends, Shelf Talkers, Counter
Tops, Rack Display
Volume: Rack Display, Shelf Talkers, Table Tends
Amount: Higher Margin Pack, Extra Schemes, Coupons
GROSS PROFIT NO. OF
RETAILERS IN
GIVEN
TERRITORY
(UNIVERSE)
% OF RETAILERS
THAT BUY OUR
PRODUCTS
(CUSTOMER)
Volume of
products per
order purchased
(VOLUME)
AMOUNT OF
PROFIT IN Rs.
PER PURCHASE
OREDR
(AMOUNT)
For more project visit www.techshristi.com
44
These POP instruments of advertisements are explained in detail
as follows:-
POP COMMUNICATION
It can be done in following ways:-
1) Table tends: free standing tents made of heavy paper stock
primarily used in restaurants, bars, food outlets introducing
new item on menu.
For more project visit www.techshristi.com
45
2) Shelf talkers: cards that can fit into store aisles from clips on
shelves to inform schemes like ‘On Sale Now',' Imported ‘ in
drug stores or in grocery shops.
For more project visit www.techshristi.com
46
3) Counter tops: these are same like shelf talkers but larger in
size (“8.5 x 11”) including information such as pricing ,
contest
.
4) Display racks: used in retail grocery shops or small stores
announcing special prices, important information about the
merchandise in the rack.
For more project visit www.techshristi.com
47
Now after distributing above mentioned POP instruments on the
basis of the criteria as explained earlier; there is need to monitor
these instruments and score them so retailers have its
importance and they participate equally to make this model
successful.
After implementation of this POP display programme next
time onwards whenever salesman will go to that retailer to get
order he’ll fill the scorecard for that retailer on following
parameters:-
Availability: availability of all products
Activation: effective use of POP instruments provided by
distributor
If all these things (products & POP instruments) are in place then
for each one element retailer will get 1 mark each and then all
points will be added to come to a grand-total for each retailer in
the territory of that distributor and these scores will decide
following things:-
Schemes
Coupons
Any other facility such as cold storage
Bonus etc.
For more project visit www.techshristi.com
48
CHECKLIST
Sales and related areas
A sales is primarily a process of exchange of products or services
against a price. Sales Management is the planning, direction, and
control of personal selling, including recruiting, selecting,
equipping, assigning, routing, supervising, paying, and
motivating, as these tasks apply to the personal sales force.
However, all the above tasks come down to two important
aspects, one, understanding what the customer needs and
secondly, what strategies the organization is following to meet
those needs and also add value to the customer at every step of
interaction.
Moreover, a robust and reliable marketing channel is required to
achieve and share the common objective. It should be focussed
not only on serving the market needs but also analyzing and
creating needs not met by anyone in the industry. Amul has
appointed its dealers with a view to cater to meet different needs
more effectively. It has segregated its distributors area wise as
well as the type of product (freezing, non- freezing products, etc)
to be stocked at their respective storage location. Furthermore,
each area is divided in small areas of six to seven routes, usually
called the Beat Routes, comprising of many areas within that
vicinity. The distributor then divides the areas accordingly and
the sales team is required to visit this areas on the respective
days allotted. For example, if it’s Saturday, the salesman covers
the beat routes that would include Kalyani Nagar, Viman Nagar,
Koregaon Park, etc.
Similarly, a 24 hour turnaround time (TAT) is strictly followed by
the delivery team to ferry and deliver the goods at the retailer’s
shop. This ensures timely fulfilment of goods as sought by the
For more project visit www.techshristi.com
49
customer. In today’s volatile market everyone is trying to eat into
its competitor’s market space. So it becomes all the more
important for a company to constantly fulfil the demands at a
faster rate.
Amul’s success largely depends on the distribution channel that
includes its own sales force to manage existing and new channel
partners to the sales force working with the distributor. As Amul
Beverage is an impulse product, it does not require the company
to go to each and every customer to make them aware of the
products. However, aligning better promotional schemes at both
customer and consumer level elevates the chances of better sales
figures.
Customers have a certain notion about the brand a product
belongs to and the various attributes associated with it. Amul,
over a long period of time, has been able to retain the customer’s
perception of a quality oriented, a high focus on health and right
pricing. This clearly gives Amul an advantage. However, as per
my observation, Amul would do much better if it includes a better
price margin for the retailer. Also, directing sales promotion at
distributors, retailers, and the sales force will yield better results.
Each member in the marketing channel would work harder if
offered price-offs, advertising and display allowances, and free
goods.
For more project visit www.techshristi.com
50
Pricing
Pricing is the amount of money charged for a product or service,
or the sum of the values that consumers exchange for the
benefits of having or using the product or service. Price is the
only element of the marketing mix that produces revenue; all
other elements represent costs. It is also one of the most flexible
elements of the marketing mix. It can be changed quickly. At the
same time, pricing can be the number one problem: How to
generate sufficient sales while maximizing profits?
Amul has successfully been able to employ both Value pricing as
well as Going Rate pricing strategy to its product range. Value
pricing involves winning loyal customers by charging a fairly low
price for a high quality offering. It is thus redirected towards
becoming a low cost producer without sacrificing quality to
attract a large number of value-conscious customers.
Besides, the pricing strategy at Amul also emphasizes the profit
of those thousands of farmers who are the real owners of the
company. After covering its operational, administration, other
managerial expenses whatever profit is left with the company a
large part of it is distributed among the farmers who provide milk
to the company for making various dairy products.
AMUL also takes into consideration the following things in order
to decide upon the prices of its products, these are:
1. Competition
2. Tendency of delivering economical products at best and
affordable prices.
3. To maintain the brand image and also to be the favourite of
millions of hearts by rightly known as “The taste of India”.
For more project visit www.techshristi.com
51
A schematic of Amul pricing strategy is shown below:
For more project visit www.techshristi.com
52
BRANDING
BRAND EQUITY:
Brand equity is the added value endowed to products and
services. It may be reflected in how consumers think, feel, and
act with respect to the brand, as well as in the prices, market
share and profitability the brand commands for the firm.
AMUL, Asia’s largest milk brand, has leveraged a strong
customer franchise by introducing an array of noncarbonated
milk-based products and has thus, remained contemporary and
relevant to the emerging market segments. An advertisement for
one of the new products from the company.
GCMMF Ltd. that owns AMUL, Asia’s largest milk brand, realized
that with the changing lifestyle and increased awareness about
health issues, there has been a discernable shift toward health-
based drinks from carbonated drinks. To utilize the potential of
flavoured milk, butter milk, and other milk-based beverages that
have an age-old tradition in India, AMUL entered the ready-to-
drink beverage market with a series of new products. These
included the launch of Amul kool (flavoured milk) in 2003, Amul
kool lassee in2004, Amul masti spiced butter milk in 2005, Amul
kool café in 2006, and kool koko in 2007.To facilitate stocking
and merchandizing, these beverages were offered in takeaway
glass bottles and cans, or easy-to-carry tetra packaging that had
a shelf life of 6 months at room temperature. These beverages
were targeted at teenagers and the youth, who were the biggest
consumers of colas and aerated drinks. These new variants of the
brand were advertised through major national channels with
special focus on youth-oriented television channels like MTV and
cartoon network. Benchmarking the distribution system followed
for soft drinks, all the offerings were made widely available with
point-of-sales support to ensure visibility at key outlets. By
identifying the trend and introducing variants of the brand. Amul
has emerged as the fastest growing brand in the noncarbonated
soft drinks category.
For more project visit www.techshristi.com
53
Unique Advertising
1) Mascot:- ‘Amul Butter Girl’
It was created by da Cunha Communications 33 years ago. It is about six months back that the agency created the Amul Cheese Boycharacter to promote Amul's cheese range of products. In effect, the company rolled out two television commercials for its cheese brand "Amul Cheese Slice" with the base line -- Amul Cheese, Yes Please!
The search contest is in two stages. The first round is at the state level which is underway. In this, a student has three tasks at hand: identifying10 visual clips, designing a calendar page corresponding to the participant's birthday month and naming five objects that he/she would take from India to settle on the moon. GCMMF plans to short-list the best 12entries for the calendar page to compile its calendar for the year 2000.
The contest is conducted in three categories - standards 5, 6 and 7 being clubbed into two groups while standard 9 is a standalone group. ``Each group will have two winners from each state who will head for the finals to zero in on one Amul Cheese Boy and one Amul Butter Girl,'' adds Sodhi.
The grand finale is to be hosted in Anand (Gujarat) in a three-day affair where the All India Amul Butter Girl and Cheese Boy will be selected through a wide range of activities testing the overall abilities of the child. It will be conducted by Siddharth Kak, the host for Amul Surabhi. While the winners at the state level could walk away with Amul gift hampers and prizes like walkmans, calculators, certificates and medals, the final winners will each receive a state-of-the-art Pentium computer.
For more project visit www.techshristi.com
54
For popularising the contest, the company has been going directly to more than 3,000 schools in the last four months across the country. The panel of judges have also taken help of Amul dealers and distributors to reach the schools. Says Sodhi: ``We are targeting the students only through their schools.''
The contest details have been uploaded on the Amul website (www.amul.com)too. Apart from that the final contest will be telecast as a special Amul Surabhi show on Doordarshan. The Amul Surabhi programme has already been listed in the Limca Book of Records for being the longest running prime time television programme with the highest measured viewership (14.5 lakh letters) every week.
Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. The pun in her words has been popular.
2) Commenting jovially on the latest news or current events:-
For more project visit www.techshristi.com
55
Amul "Utterly Delicious" Parlours: "Amul Preferred
Outlets"(APO).
Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country.
Amul has created Amul Parlours at some prominent locations in the country, which are run by the company or its wholesale dealers:
i. Delhi Metro Rail Corporation ii. The Somnath Temple iii. National Institute of Design iv. Infosys Technologies in Bangalore, Mysore & Pune v. Wipro campus in Bangalore vi. L.J. College, Ahmedabad vii. Ahmedabad Airport viii. Surat Municipal Corporation ix. Delhi Police x. Gujarat State Raod Transport Corporation xi. Jubilee Mission Medical College, Trichur, Kerala xii. Sanjay Gandhi Hospital Parlour, Amethi xiii. Indian Institute of Management, Kolkata xiv. Cafe Amul, MDG, Gandhinagar
For more project visit www.techshristi.com
56
"Amul Utterly Delicious" parlours are an excellent business opportunity for investors, shopkeepers and organizations. In order to come closer to the customer, we have decided to create a model for retail outlets, which would be known as "Amul Preferred Outlets"(APO).
REFERENCES:-
Amul annual report
Marketing Management by Kotler
Amul.com
Wikipedia.com
Marketing Research by Dull Hawkins