amul inside story

7/27/2019 Amul Inside Story

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APPENDIX „A‟

WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT &

RESEARCH

SUMMER PROJECT

ON

HOW TO INCREASE THE SALES OF AMUL FRESH DAIRY PRODUCT

LASSEE AND DAHI.

BY

PGDM 2011 – 13 TRIMESTER IV

MARKETING

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Certificate



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ACKNOWLEDGEMENT

An ambitious work of this kind, providing analytical review to the subject would haveremained a concept rather than the finished product without cooperation of those whorespondent to our request to contribute. In the present world of competition andsuccess, training is like a bridge between theoretical and practical working; willingly I

prepared this particular project.

With immense pleasure, I would like to present this project report on AMUL

PROBIOTIC LASSEE AND MASTI CUP DAHI for Gujarat Co-operative Milk Marketing Federation Ltd., Mumbai.

I am very much thankful to those people who give us their valuable time and relatedinformation about Amul. I would like to express my sincere thanks to all those whohelped me during my practical training programme. Words are insufficient to expressmy gratitude toward Mr. Vishal Anand and Asst. Manager, Sales of Amul, Mumbai.

The manager of Jinver enterprises Mr. Veeral shah (Distributer Grant Road), &Manoj Enterprises Mr Nilesh (Lower Parel), along with the salesmen, Mr. Mangesh,Mr. Yogesh deserve special mention for ensuring co-operation towards my project atall times. They were the pivot around which my project revolved.

Lastly, I convey my regards to the whole staff, which made my stay at G.C.M.M.FLTD. A memorandum part of life.



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TABLE OF CONTENT

SR.NO CONTENTS PAGE NO.

1 Company Profile 5

2 Scope of Project 15

3 Amul Masti Dahi 16

4 Amul Probiotic Lassee 19

5 Identification of target Retail Outlets 20

6 Competitor Analysis lassee 21

7 Competitor analysis Dahi 22

8 Observations &Findings 24

9 Promotional activity 25

10 Finding and reconditions 26

11 Bibliography 27

COMPANY PROFILE



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Amul‟s commitment of making milk available to every corner of the country comesfrom the fact that milk is the source of complete nutrition. Its indispensability for all

people, rural or urban, poor or rich, cannot be contested. It not only suits the taste buds of most of us, but also offers a balanced diet with every essential nutrient inrequired proportion. As our age progresses, the most frequent problems that we come

across are declining bone density and deteriorating digestive system. Milk comes asan elixir for these problems. Hence, while consumption of milk is critical to infants, itis imperative to maintain good health of adults too. It is basically the best fuel for life,and the world's original energy drink. With this idea, we promote Indian Olympiccontingent for London Olympic 2012 and wish our team the very best.

Fortunately, with the replication of Anand pattern under the white revolution, we have been able to make this natural energy drink available to more and more people of India. Currently, per capita availability of milk in India is 280 ml per day which ishigher than the WHO's minimum recommendation. But this is just an average figure.We actually need to ensure that it is available to every single person in the true sense

and not in average terms. With increasing population and income, the demand for milk is going to rise multifold in coming future. It is high time that we start workingon our milk production as well as productivity to meet the coming demand.

As per the NCAER report, the middle class or consuming class has been growing inthe country and by 2015 is expected to form 54% of the population as compared to26% in 2003. With the increasing affluence, a new set of consumers who are willingto indulge and experiment with their taste buds, are emerging. This is in line with aglobal survey on changing food consumption habits that highlights people areincreasingly looking for convenience and premiumisation in food products.

The same can also be inferred from the recent foray of large multinationals in thesecategories. A study by Department of Industrial Policy and Promotion has shown thatin the past, foreign investments have increasingly been coming in the Food ProcessingIndustry and these players have been targeting the new growth segments in order toestablish their hold. We have to prepare ourselves to face them.

Also, with increasing female work force participation and reducing time in today's busy life, the out-of home consumption has increased. However, people still don'twant to compromise on health and wellness. This opens up new opportunities for ready milk based products that are nutritive and at the same time filling. This is

proven by the fact that the food categories that lead in India by growth are Ice creams

and Cheese.

India, like the United Kingdom, is a nation of shopkeepers. Retailing has beencontributing significantly to India's GDP; however penetration of organised retail has

been low. This is however now changing with slow but steady growth in modern tradeover the last 5 years which is expected to become two - fold in the next 5 years.

While foreign direct investments boost many sectors with new employmentopportunities and increased development, it may be a double edged sword in retail.Government of India had recently proposed to permit up to 51% FDI in retail and100% FDI in single brand retail. This certainly does not augur well for milk

producers. We must be aware that milk producers get least returns from modern tradein most of the developed countries. The efficiency of these stores benefits only the



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retailers as they seek more profits. Farmers in USA and UK get only 38% and 36%share of consumers' money spent on milk respectively as per the International FarmComparison Network data. In last 15 years, this share of milk producers has declinedfrom 52% to 38% in USA and from 56% to 36% in UK. As compared to that, theIndian milk producers get more than 70% on an average and the milk producers

affiliated to co-operatives get more than 80% share of consumers' rupee. Key questionis whether the Organised retail trade would beable to operate at low margins as

practised by GCMMF and other Co-operatives, failing which, they would not be ableto maintain the farmer's share in consumer price.

GCMMF has experience of dealing with several large retailers of the world. What wehave experienced is that organized retail trade tends to be monopolistic. There isheavy burden on manufacturer and marketer in terms of squeezed margin, long credit

period and arbitrary marketing expense. For instance, organized retail chains demandheavy discounts and rebates. In summary, the large retailers will effectively killinnovation, squeeze margins and always threaten the brands with cheaper substitutes,

imports or finally in-store brands.

In past one decade, the small retailer category of general trade in India that employs32% of the Indian population, has improved their retail outlets, presentation, servicelevels and customer orientation significantly in response to the changing environment.However, the modern retails and their deep pocket due to foreign investment willdestabilize there tail trade which gainfully employs a very large section of society.Furthermore, closure of small stores and opening of large retail chains displace just asmany jobs as they create friendly. For instance, it also affects community revenue byshifting away the money from the community. Local business use local resources andin turn pay for it resulting in improving community health, which is not the case for

large chains as they have got everything centralised, right from interior decor to product procurement.

Liberal FDI policies in retail would not benefit Government's share of taxes as theywould remain same irrespective of the format of retail. However, there has been

practice of demanding more and more concessions and liberal policies fromGovernment by the foreign organised retails. Furthermore, labour policies of largeretailers have not been employee-friendly for instance; some of the large retailers areoften accused of below minimum wages, poor working conditions, unfavorableemployer-employee relationships and anti-union policies. In our view, if largest andmost reputed Indian corporate houses have invested in retailing in India, we do not

need to look to foreign investors to invest in Indian retail.

Someone beautifully said that when you buy from small shops, you are not helping aMNC CEO buy a third vacation home, but helping a little girl get school education, alittle boy get his cricket bat, a mom put food on the table or a family repay a housingloan. It is this India that we need to believe in and care for.

SALES



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EXPORT

I am happy to inform you that we had registered sale of `95 crores in exports of milk products. There is a growth of 15% in consumer packs. Government of India had banned export of milk powder since February, 2011 and the ban is still continued.

Due to this we were not able to export milk powders.

However, as you know, our focus had always remained on selling consumer productswhich helps us in increasing our sales irrespective of world dairy product prices.Thus, in spite of ban on exports of milk powders, we could get the benefit of faith of our loyal and trusted consumers across the globe. We will continue building on thisstrong base of customers in the coming year too.

DISTRIBUTION NETWORK

Improvement in both width and depth of distribution across urban and rural Indiacontinues to be the key focus in Federation. The unique combination of ambient,chilled, frozen and fresh distribution highways has always been our huge competitiveadvantage. Channel partners associated with us for decades have been our major strength. During the year, 750 distributors, both for value-added dairy products andfresh milk have joined in our network. Now, we have more than 7,000 distributorsrelentlessly servicing more than a million retail outlets from dawn to dusk.

Last year we rolled out Hub-n-Spoke model of distribution to explore the huge potential markets of small towns and rural areas. We added more than 150 super distributors and established our reach in more than 2,500 small towns overcoming the

challenges posed by inadequate cold chain facilities. Phenomenal success of thisdistribution approach in terms of generating sales volume has made it imperative thatwe continue this model to reach fast to still untapped markets of small towns and ruralareas.

Storage and transportation processes are amongst few key focus areas in Federation.Be it discipline in schedule of transporting stocks to distributors or optimal utilisationof available storage space, no stone was left unturned to ensure these initiatives. Thishas not only added efficiency in supply chain but also improved cost effectiveness of distribution channel, which is imperative in a competitive environment.

To get exposure to our network of co-operative institutions, we organiseAmulYatrafor our channel partners. So far, about 8,500 channel partners have got exposed to our co-operative institutions.

CO-OPERATIVE DEVELOPMENT PROGRAMME

GCMMF family welcomes two new Milk Unions namely Amreli District Co-operative Milk Producers' Union Limited and Bhavnagar District Co-operative Milk Producers' Union Limited as ordinary members. We now have 15 ordinary membersof GCMMF,a significant landmark in our 38 year journey starting with 6 Member Unions.

During the year we continued to support milk producers of Junagadh and Kutchdistricts to organise theirco-operative societies at village level. Milk producers have



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organised 794 village dairy co-operative societies and their district milk unions have become nominal members of GCMMF. During the last twelve years, our Member Unions are implementing internal consultant development (ICD) intervention for developing self leadership among member producers and thereby enabling them tomanage their dairy business efficiently leading to their overall development. Under

ICD, facilitated by specially trained consultants, 555 village dairy co-operativesocieties have conducted their Vision Mission Strategy (VMS) workshops, preparedtheir mission statements and business plans for next five years. Till date, 7,662 villagesocieties have prepared their mission statement and business plans under theinitiative.Inspired by the success of VMS at VDCS level, Member Unions have planned toupscale it. Thrust areas of VMS have been planned to improve infrastructure andanimal husbandry activities at milk producer level.In order to strengthen knowledge and skill base of young girls and women of thevillages about milk production management, our Federation with technicalcollaboration and resources of Anand Agriculture University, has initiated

"MahilaPashupalanTalimKaryakram" for women resource persons of the Member Unions and during the year, 486 women resource person have been trained under this

programme.

CLEAN MILK PRODUCTION

Under our quality assurance programme for consumers, GCMMF has supported theMember Unions for strengthening infrastructure for quality and clean milk production

by implementing various Government of India, Government of Gujarat and NCDC programmes. Our Member Unions have identified 4,000 potential village societies for installation of bulk milk coolers (BMC) and till date, 3,390 BMC have already been

installed and also implemented CMP training programme in these villages.Continuing the cleanliness drive at village level, till March 2012, Member Unionshave implemented cleanliness module at 9,624 village societies. To enhance the levelof cleanliness this year 8,332 VDCS (Village Dairy Co-operative Society) celebratedred tag day on "Gandhi Jayanti" - 2nd October and the Unions also gave awards to the

best performing VDCS.

FERTILITY IMPROVEMENT PROGRAMME

Considering a long term vision to reduce infertile animal from their milk unions; our Board had decided to implement Fertility Improvement Programme (FIP) from theyear 2007-08. During the last five years, they have implemented FIP in 4,860 villagesocieties, and registered 3.48 lakh non-productive animals under FIP and out of this,2.15 lakh milch animals have been made productive.

MILK PRODUCTIVITY ENHANCEMENT

Our Board has envisioned integrated intervention to achieve the objective of higher production and productivity in milk. To develop genetically superior animals withhigh milk productivity, it has been decided to implement pure breeding programmewith 100% pure bull semen. In cow, pure breeding shall be implemented in Gir and

Kankrej and in buffalo pure breeding shall be implemented in Mehsani, Jafrabadi and



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Murrah. Non-descript and crossbred cowshall be upgraded to 100% Gujarat HF and100% Gujarat Jersey.

To create good replacement stock and to include scientific calf rearing practicesamongst farmers, our Board has envisaged implementing calf Rearing programme in

which we plan to cover 48,000 calves in the initial phase.One of the difficulties in milk production is wide fluctuation in feed and fodder pricesand its availability, which has been causing landless, marginal and small farmers'reluctance towards milk production. With objectives of providing scientificallydeveloped balanced mixed ration to animals, our Board has envisioned implementingtotal mixed ration programme. This programme would help milk producers tomaintain their animals economically and improve animal health, fertility, productivityand have more milk production.

SUSTAINBLE ECOLOGICAL DEVELOPMENT

'Green Amul Green India' Campaign Dairy farming, like agriculture is dependent onnature, drawing resource from the nature and hence requiring nature's support for itsgrowth and development. Over the years, due to intensive agriculture anddeforestation, various natural resources have been depleted in Gujarat. To counter thiswe started a programme through which our milk producers were encouraged to planttrees in their vicinity. Every year, on Independence day, all our milk producers' plantsaplings of trees, to protect mother earth from pollution, climate change and globalwarming.

During last five years, our members have planted more than 312 lakh trees anddemonstrated their commitment towards preserving and contributing to improvement

of the environment. For this activity, we have received five consecutive Good GreenGovernance award from Srishti during 2007 to 2011.

I.T INTEGRATION

We have successfully completed SAP ERP Application implementation across theenterprise enabling it to achieve better supply chain performance. The system helpsimprove planning and monitoring across the enterprise. We have also developedanimal productivity process systems in order to help animal productivityimprovement and its tracking effectively. Our Federation has also enhanced itsMPLS-based Virtual Private Network(VPN) Connectivity at all its sales offices,

member unions, milk plants, milk chilling centres and warehouses on a commoncommunication backbone to strengthen and automate the supply chain operations.

STRIDE TOWARDS EXCELLENCE

At GCMMF, it is our constant endeavour to surpass our previous performance andachieve greater heights as we continue to serve our producers and consumers. Thisyear, we are very proud to have received the Economic Times Corporate CitizenAward from Times Group for our contribution in socio-economic development of rural India. It is also my pleasure to inform that this year we have risen to 18th

position among the milk processors of world as per IFCN ranking from 21st rank last

year and are poised to break in to league of top 15 by the end of this year.



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During the year we have also won the "Green Globe Foundation Award" at the DelhiSustainable Development Summit 2012 for our mass tree plantation drive andcontribution to environment by the milk producers of Gujarat. Taking further our excellence in sales and marketing, we were honoured with IDF Dairy InnovationAward 2011 in best new dairy drink for Amul Prolife Lassee and in best TV

campaign category for Amul Master Chef.

ROAD AHEAD

India continues to be the largest milk producing nation, with production of 122million MT in 2011-12. This is about 16% of world milk production. Most of this

production is consumed domestically, yet at times, supplies are unable to matchdemand. This has been putting pressure on milk prices as the deficit has to be metthrough costly occasional imports of milk and milk products. To avoid this there is aneed to increase milk production in the country. Also, substantial part of the increased

production needs to be converted to value-added products, to reduce dependence on

occasional imports. This would also modernise the country's dairy sector. Currently,milk processing industry is growing in India and about one third of dairy sector isorganised. Co-operatives form 60% of the organised sector. However, share of private

players has been continuously increasing. This may be an alarming trend for farmersas well as consumers as private sector is known to capture profits and not serve both

producers' and consumers' interests.

Economic contribution of live-stock surpassed that of food grains in 2002-03 and hassince remained about 5-10% higher as per scientists at NCAER. Its contribution tototal agricultural output has increased from 15% in 1981-82 to 26% in 2010-11.Despite this, it still receives only 12% of total public expenditure on agriculture. Of

late, growth of this sector is stifled by absence of policy focus. India's livestock productivity is 20-60% lower than global average, depending upon the breed of cattle,mainly due to deficiency of feed and fodder. Area under cultivation of green fodder has been decreasing as farmers shift to more profitable cash crops. This has led todoubling of fodder prices. Besides that, improvement in wages due to NREGA andincreasing industrialisation which is leading to migration of people have resulted inlack of interest of people in taking up dairying. To avoid this drifting away fromdairying, we need to ensure proper prices to farmers. This is another reason for increasing milk prices.

Also, it is well discernable from Planning Commission Report 2011, that it is the

small and marginal farmers who are more dependent on livestock for income.Wherever contribution of livestock to farm income is higher, it has been observed that

poverty and deprivation is lesser.

Thus, to meet the growing demand and keep prices affordable for consumers as wellas increase returns for farmers, it is important to improve productivity and productionof milk in the country. I am pleased to note that with the National Dairy Plan (NDP),the government is attempting to do the same. Also this would increase contribution of co-operatives in marketable milk surplus compared to private players thusstrengthening our rural economy and the livelihood of our farmers.

The NDP is expected to double our production in 15 years. It also aims to grow theorganised sector to handle 65% of the marketable milk surplus, from current level of



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30%, by 2021-22, thus introducing transparency and minimizing malpractices likeadulteration in the system.

I have already mentioned how agriculture and dairying goes hand-in-hand. However,the agriculture income is exempted from Income tax whereas income earned by

farmers from supply of milk is taxable. In fact, the income from supply of milk helpssmall and marginal farmers to survive at the time of crop failure. Further, variousexpenditure on fertiliser, water, etc. is incurred with the help of income earned fromsupply of milk. Thus, income from milk also helps agriculture sector to grow andmeet the demand of ever increasing population. Considering dairy as a part of agriculture and exempting it from income tax, would incentivise the farmer for milk

production. We have made representations to the Hon. Prime Minister, UnionMinisters for Finance and Agriculture on this.

Milk co-operatives are primarily engaged in eradication of rural poverty andeconomic development of farmers in the country. Milk co-operatives are currently

taxed in the highest bracket of 30% + 3% education and higher education cess. Thus,we feel that co-operative organisations like GCMMF and other state dairy federationswho undertake commercial operations on behalf of millions of milk producers of India, who are primarily in the agriculture sector, should be taxed at lower rates thancorporate. Taxing is important as this way co-operatives contribute to thedevelopment of the country by way of paying income tax. However, about 15 yearsago, tax on the co-operatives was lower than the corporate rates and this differenceshould be maintained now as well. Further, milk co-operatives are involved in ruraldevelopment programmes by spending the money for improvements in productivityand on health of milch animals. Reduction of taxes considering the social andeconomical mission of milk co-operatives would help milk co-operatives to improve

their services to both producers and consumers.

Dairy co-operatives provide products of mass consumption like milk, baby food, dairywhitener, butter, ghee, ice cream, etc. at very reasonable rates to the consumers of India. This has made such products affordable for the common man to include them inhis daily consumption. In the interest of consumers from all sections of society, VATrates applicable to dairy products like baby food powder, butter, ghee, cheese, icecream need to be reduced from 12.5% to 4%, so as to increase consumer demand,

boost milk products and improve consumers' health by way of better nutrition. It willalso improve rural milk producers' income and result in overall socio-economicdevelopment in rural areas.

We applaud Government's move to implement 111th Constitutional Amendment toinsulate about six lakh co-operative societies from political and governmentinterference and to strengthen the co-operative movement.

When we plan to improve productivity as well as production, we also need to keep inmind the markets where such huge quantity of milk will be consumed. We need toexplore new opportunities and markets. India has graduated from milk deficit countryto largest milk producer in world. However, our exports of milk and milk productsstill remain insignificant in comparison to the existing players. We have beenfollowing the policy of not exporting milk powders to foreign countries so that

availability in our country does not get hampered.



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We are expecting 127 million MT production of milk this year, which is likely toreach 180 million MT by 2020. A substantial portion of milk produced is convertedinto powders to be used in production of milk products during dry season. Since, wehave already started receiving good quantity of milk, which is expected to continue,the stocks of milk powders are poised to rise higher. High stocks of powder would

result in falling price of raw milk as well as milk powder which is happeningcurrently. This will cause decline in the procurement price available to farmers, andwould be detrimental to the farmers' motivation in milk production. Opening of export markets would not only serve as outlet for excess of milk produced over thedomestic requirements but also will keep the domestic prices stable. We strongly feelthat branded milk powders in consumer packs should never be banned. Thus, nowwhen we plan to produce such large quantity of milk, it is imperative to relook at our export policies.

Besides export, we need to cater to the changing consumption pattern of milk in Indiaitself. Milk forms part of the basic food basket and with increasing number of middle

class families in India; milk consumption is on the rise in the country. This creates asignificant need for making more and more of pure and unadulterated milk availableto satisfy growing consumer demand.

With increased milk production, we hope to be able to expand our reach further toevery part of the country. Over the past year we have been able to expand distributionto cover around 10 lakh retail outlets. This expansion is necessary so as to create acompetitive environment in the new markets that would offer customers with vitalchoice of products.

GCMMF - An Overview

Year of Establishment 1973

Members17 District Cooperative Milk Producers' Unions (16 Members& 1 Nominal Members)

No. of Producer Members 3.18 Million

No. of Village Societies 16,117

Total Milk handling capacity per day

13.67 Million litres per day

Milk Collection (Total - 2011-12)

3.88 billion litres

Milk collection (Daily Average2011-12)

10.6 million litres (peak 13 million)

Milk Drying Capacity 647 Mts. per day

Cattlefeed manufacturingCapacity

3690 Mts. per day

Sales Turnover -(2011-12) Rs. 11668 Crores (US $2.5 Billion)



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WORLD WIDE PRESENCE OF AMUL.



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SCOPE OF PROJECT

In present market scenario customers are fairly exposed to a growing range of choicesin the different brands of product & services. And the choices are based on their

perception of the brand and qualities of the product & services they are paying for.

With the help of the study it can be easily said that for a product like Amul MastiDahi (cup) which is targeted to the premium or upper segment of the consumers, thecompany needs to understand what are the several factors affecting or influencing theexistence of the product. After going through this study it is ensure able that thecompany can have a clear view of the product in the long run. This study mainlyfocuses on making the existing distribution channel more effective in terms of time aswell as cost.This study will allow the company in giving them a better understanding of thedistribution channel so that the demand of the premium segment can be catered in aneffective and profitable manner by reaching the potential retail outlets in accordancewith the time. Besides this it is also very important for the company to make people

aware of the pro-biotic culture of Amul LASSEE in a better manner so that potentialtarget segment of the customers can be reached easily.Therefore it becomes necessary to understand, analyse, and evaluate among the

projected distribution model in a systematic manner and act accordingly for a morecemented existence in today‟s competitive market scenario.



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AMUL MASTI DAHI

“Amul Masti Dahi”- The answer to making great tasting dishes is fresh, creamy andgood quality dahi. It is ideal meal accompaniment and is delicious as well asnutritious by itself too. Amul Dahi is prepared in controlled conditions i.e.

maintaining proper temperatures to grow beneficial bacteria and to avoid growth of harmful bacteria. It is pasteurized product i.e. Free from unwanted bacteria and alsoits prepared with selected culture having pro health bacteria. The culture is developedafter in depth research.Amul Masti Dahi is prepared from purest, freshest pasteurized milk and it is free fromadded sugar and its doesn‟t contain any preservatives. Amul Masti Dahi is prepared

from certified and selected bacterial culture which gives excellent curd and its alsohygienically processed and packed in a reusable plastic tub as well as convenient

pouch and thus free from Possible adulteration. Amul Masti Dahi is high on nutritionand taste. The live micro flora in Amul Masti Dahi helps the digestive system andenhances the immune system‟s ability to fight harmful organisms. It improves the

body‟s natural defenses and helps keep the body functioning at its best.Amul Masti Dahi is a health conscious product because its having a probiotic naturecontains live bacterial culture which increases milk digestibility, quickens recoveryfrom certain types of diarrhea, skin infections, enhances immune function of the bodyand encourages the body to function in the best possible and most natural way. Inamul masti dahi there are various contains such as proteins, carbohydrates, fats,calcium, phosphorous, magnesium, zinc, iodine and vitamins.

IMAGE 1:AMUL MASTI CUP DAHI



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SWOT Analysis

Strength:

Good brand image: It manufactures only milk and milk products, which is purelyvegetarian thus providing quality confidence in the minds of the customer.Indian Brand: The company is having Indian origin thus creating feeling of oneness inthe mind of the customer.Probiotic concept: Probiotic concept is the one of the unique features that isdifferentiate with any private level curd.

Weakness:

No Replacement.

Improper distribution channel.

Only 15 days self life

Improper supply

Opportunity:

Extension: Intensive advertisements and brand image, company has good scopefuture.Product offering: Can offer wide variety of Dahi under umbrella of Amul Masti Dahi.Existing market is not fully tapped & the company can increase presence by

penetrating further.

Threats:The major threat is his own product i.e Amul Masti pouch Dahi and private level

curd.There is no brand loyalty in the curd market and the consumer can change their brand.

Masti Dahi Advantage

➢Amul Masti Dahi is prepared from purest, freshest pasteurized milk and it is freefrom added sugar.

➢Amul Masti Dahi is prepared from certified and selected bacterial culture whichgives excellent curd

➢Amul Masti Dahi is hygienically processed and packed in a reusable plastic tub aswell as convenient pouch and thus free from possible adulteration.



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➢Amul Masti Dahi is high on nutrition and taste.

➢Amul Masti Dahi having a probiotic nature contains live bacterial culture whichincreases milk digestibility, quickens recovery from certain types of diarrhea, skin

infections, enhances immune function of the body and encourages the body tofunction in the best possible and most natural way.

➢Amul Masti Dahi contains all goodness of milk such as proteins, carbohydrates, fats,calcium, phosphorous, magnesium, zinc, iodine and vitamins.

➢Lactic acid in Amul Masti Dahi is helpful in absorption and utilization of calcium



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Amul Prolife Probiotic Lassee.

Probiotics are living micro-organisms, which when ingested or locally applied insufficient numbers confer one or more specified, demonstrated health benefits on theconsumer. As against Antibiotic, Pro-biotic means 'for life', which indicates an

essential property of probiotic cultures. The health benefits of probiotic foods areimproved digestion and nutrient absorption, reduced blood cholesterol etc. Probioticsare beneficial bacteria that can be introduced into the digestive system through foodlike Amul‟s Probiotic Lassee.

Now when it comes to distribution channel for amul lassee which comes under thechilled category, the company needs to follow a critical distribution channel so that allthe potential retail outlets could be reached easily in an effective manner to cater thenoticeable demand for the premium product. Amul cup dahi which has self-life of 10days reaches distribution point after 2 to 3 day of manufacturing. And then it is beingmade available to the retailer within 3 or 4 days time per iod which in turn affects thesale of cup dahi due customer reluctance of backdated product.

So it‟s very natural for the people of Mumbai that they consume lassee almost on adaily basis, which indicate a huge demand for lassee. But people of here are veryconcerned about the taste of lassee and they are fond of either homemade or lassee of

private level which is sweet in taste or plain. Therefore it‟s crystal clean for the

company that lassee of private level is most competent Element for them. Apart fromthis there are brand like DANONE and Mahanada pouch dahi itself showing a realthreat to Amul lassee to excel further.

IMAGE2: AMUL PROLIFE LASSEE



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TARGET RETAIL OUTLET (GRANT

ROAD)

MANISH STORES PEDDER ROAD

VIMAL BIDI PEDDER ROAD

SHRI GANESH PEDDER ROAD

SUDDHA SWEETS PEDDER ROAD

JHUNKAR BHAKRI WALKESHWAR

SHUKLA WALKESHWAR

AAREY SARITA WALKESHWAR

M.J STORES BALGANGA

DUKAN APKI TARDEO

WELCOME COCONUT WARDEN ROAD

CHEDHA STORES TARDEO

SHYAM JI PREMJI WARDEN ROADKAMAT CHOWPATI

KOKATA CHOWPATI

APPITIDE GOWALI TANK

AAREY COLONY NAPEANSEA ROAD

MAPCO NAPEANSEA ROAD

MAPCO PEDDER ROAD

SHANTI SUPER MAKET WARDEN ROAD

SIDDHQI STORES WARDEN ROAD

NEWELY ADDED STORES WHERE THERE IS NO SUPPLY OF AMUL

LASSEE

ASHOK CHAT MAHALAKSHMI MANDIR COMPOUND

MAHALAXMI CHEMNIST MAHALAKSHMI MANDIR

AMIT STORES MAHALAKSHMI MANDIR

HIMALYAYA COLD DRINKS BHULA BHAI DESI ROAD

DEV STORES MALABAR HILLS

WD. :JINVER ENTERPRISE GRANT

ROAD (W)



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COMPETITORS ANALYSIS OF LASSEE

1)DANONE LASSEE.

The pricing strategy of the danone for lassee is quite good for retailers. i.e per piece aretailer gets an approximate margin of rs 6 to 8.With quick replacement andelectricity bill reimbursement upto 500rs. Quantity of one piece is 160ml for 18 rs

IMAGE 3:DANONE LASEE

2) MAHANAND

Again the pricing policy is same as that of danone with a margin of approx. 8-10% todistributer. The size for mahanand is 160 ml for 18rs.

IMAGE4: MAHANAND LASSEE



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COMPETITOR ANALYSIS OF AMUL MASTI DAHI

1) NESTLE DAHI

The price of NESTLE dahi is 40rs for 400 grms and the cost is 40 rs. The margin is

approx. 9 rs per piece if the retailer buys full box containing 12 pieces. Rest approx.margin is 5-6 rs per piece, with one day replacement policy of even expired products.

IMAGE 5: NESTLE DAHI.

2) DANONE DAHI.

Better margins as compared to amul and good replacement policy. Providing fridgewith a electricity bill payment upto 500rs/month.

IMAGE 6:DANONE DAHI.



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3) CHITLE DAHI.

Local Maharashtrian crowed is loyal towards chitle. Good margins to retailers asmarket size are less and less as compared to other brands. Available in all variant‟s

starting from 100grm to 400 grms.

IMAGE 7:CHITLE DAHI



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Observation and Finding

In order to get a brief about market of amul dahi and lassee I went to lower parel,Mahalakshmi, pedder road, marine drive , grant road etc. I observed a mixed responseor perception about the brand loyalty. For eg. Customers & retailers of lower parel

were not that loyal to Amul as compared to their loyalty towards most of theMaharashtrian brands such as „Chitle‟. But at the same time when I visited to grant

road and pedder road people were only demanding Amul dahi or lassee.The margins offered by amul in dahi and lassee to retailers are quite low as comparedto other competitors even then the retailers are keeping its products which is a bigthing. I have also observed that there is a shortage of dahi during the peak season,which forces the customers to switch to other brands. For eg. There was a shortage of amul butter in previous year so the customer switched to nutralite butter and once thecustomer shifted to that brand the retailer forcefully offered nutralite to thosecustomers. I met one retailer who said directly that if the competitor of amul arisesthen it will be very difficult for amul to retain its market share because Amul‟s

products require refrigerator and the same is not provided.



25

Promotional activity /In Shop Avtivity

I started with a market research till two weeks. During that I went to each store under our distributor(Jinver enterprises) with their salesman. We majorly emphasized on

finding out the market potential for lassee and competitive pressure by other rivalssuch as Mahanand. We did a research on existing stores regarding their performancein terms of sales and no. of customers. we tried to find out the type of customer basethey serve. Then we set a benchmark among existing stores and did our promotionalactivity from such stores.During promotional activity we offered 12 lassees at a price of rs10 only. With thehelp of that we distributed approximately 150 pieces/day for four days. This lead to anincrease in the sales of amul regarding lassee as well as demand for the same wascreated.In shop activity gave a good boast in the sales of lassee.



26

Findings/Drawbacks

Puffing: The biggest issue was puffing of lassee packs. The major reason for

that was change in temperature. Supply chain: it takes 3-4 days for the product to reach the distributor & then

1-2 days more till retailer. Margin: Margins are too low to attract new retailers as compared to its

competitors. Replacement policy (Dahi): we found out that it is very important to have a

good replacement policy for perishable products to attract retailers as other competitors are fairly replacing their products quite easily as compared toamul.

Launching of lassee was too late in the market. Because in mid June therainfall affected the sales.

Variety: only few flavours are available as compared to others. Promotional activity wasn‟t huge enough so as to catch everyone‟s attention Under my area (Pedder road, Malabar hill) their was an association of all the

retailers. So it was very difficult to launch a new product.

We also found out that its competitors are providing retailers with refrigerators andsome other stuff too for their comfort, which is very important for retaining them.

Recommendations

Amul should provide a suitable fridge to accommodate its own products.

Improvement in supply chain by using more efficient and faster means of transport.

Lassee should be sold in tetra packs to make it more hygienic and presentable. Attractive schemes should be provided to retailers for the launch of new

products. As well as for dahi if there are bulk demand by the retailer. With agood and quick replacement policy.



BIBLOGRAPHY

1) http://www.amul.com/m/about-us2. http://en.wikipedia.org/wiki/Probiotic

3) http://www.cio.in/ceo-interviews/value-many-amul 4) http://www.yakult.co.in/ 5)http://www.nestle.in/brands/mpn/MilkProducts6). http://www.mahanand.in/bahar-lassi.jsp

http://en.wikipedia.org/wiki/Probiotic



http://www.cio.in/ceo-interviews/value-many-amul



http://www.yakult.co.in/



http://www.mahanand.in/bahar-lassi.jsp







amul inside story

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