Download - Amul Report_Rashi Garg

7/28/2019 Amul Report_Rashi Garg

1/60

To understand the working of a milk distributor, study his concernsin accordance to the market scenario, calculate his ROI, suggest

strategies to increase his ROI

By

Rashi Garg019

Under the guidance of

Shri Dhaval Doshi Kiran SharmaArea Manager Associate ProfessorAmul K J SIMSR

K J Somaiya Institute of Management Studies & Research

May-June, 2013


2/60

DECLARATION

I, Ms. Rashi Garg hereby declare that this project report is the record of authentic wor

carried out by me during the period from May 2, 2013 to June 29, 2013 and has not

been submitted to any other University or Institute for the

award of any degree / diploma etc.

Rashi Garg

019

03rd July, 2013


3/60

3

Certificate from Faculty Guide

This is to certify that Ms. Rashi Garg, a student of the Post-Graduate Diploma in Management, hasworked under my guidance and supervision. This Summer Project Report has the requisite standard andto the best of our knowledge no part of it has been reproduced from any other summer project,monograph, report or book.

Kiran SharmaAssociate ProfessorKJ SIMSRVidyavihar, Mumbai3rd July, 2013


4/60

4

Executive Summary

This report was commissioned to examine the working process of Amul milk distributor, study

his concerns in accordance to the market scenario, calculate his ROI, suggest strategies to

increase his ROI.

The research draws attention to the fact that Amul started its operations in Mumbai only in 2006

when all other brands were already prevalent in Mumbai. Since then Amul is capturing their

market share gradually. By doing this research I realized how important is the connection

between retailers and distributors in the entire supply chain. Both retailers and distributors are

not satisfied with very less margins provided by Amul. Retailers face supply related issues and

distributors were majorly concerned about the dumping problem faced by them. There were

various retailers who wanted to keep Amul products, but were fed up of supply services given by

Amuls distributors. Hence this was the major concerned handled by us by giving them

assurance that they will be supplied with their orders regularly and wont face any such issues in

future.

Dumping extra orders is the strategy followed by Amul so that distributor supplies products to all

the big and small retail stores and do not left any one behind. Some distributors are seen to be

pushing other brands and not Amul due to less margins. Distributors form the most important

part of entire supply chain of Amul. If a distributor doesnt work properly, it can rupture the

entire supply chain to a large extent.

Promotional activities such as kiosks and free sampling was being carried out which generated

very high positive response. Kiosk activities increased brand value and it reached directly to the

minds of end consumers. Sales were increased after conducting kiosk activities. Free sampling

was targeted to hotel, restaurants and canteens for a new product Pouch Dahi. Immediate bulk

orders were generated for the same.

It was observed that retailers were willing to keep Amul products provided supply is improved

by the companys end. Also some retailers were interested to become distributors provided

security deposit is somewhat reduced and few attractive schemes are being offered.


5/60

5

To increase ROI of distributors, following things are recommended:

Distributor should try to increase volume of sales. It will automatically increase their ROIAlso, Amul incentivize distributors on the basis of their sales

Little flexibility in terms of security deposit may be in terms of some other form of bankdeposit will be of great help

Some occasional schemes should be provided Amul should communicate more frequently with their retailer by maintaining a proper

database.


6/60

6

Table of Contents1 Introduction:............................................................................................................................................... 8

1.1 Background of the study: .................................................................................................................... 8

1.2 Background of the topic: ..................................................................................................................... 8

1.3 Company profile: ................................................................................................................................ 9

1.4 Statement of the problem/assigned work: ......................................................................................... 11

1.6 Scope of the study / work done:........................................................................................................ 11

1.7 Objectives of the study: .................................................................................................................... 12

2. Review of Literature ............................................................................................................................... 13

2.1 Indian Dairy Industry ........................................................................................................................ 13

2.1.1 Introduction and History ............................................................................................................ 14

2.1.2 GCMMF Overview .................................................................................................................... 19

2.3.1 Vision ......................................................................................................................................... 19

2.3.2 Mission....................................................................................................................................... 19

2.3.3 Objective .................................................................................................................................... 20

2.3.4 Future Plan ................................................................................................................................. 202.4 Lines of business:.............................................................................................................................. 21

2.4.2 Distribution Network................................................................................................................. 25

2.4.2 Amul Model ............................................................................................................................... 28

2.4.3 Managing Competition: ............................................................................................................. 29

2.4.5 Market Share of Different Products ........................................................................................... 29

2.4.5 Advertising by Amul:................................................................................................................. 30

2.4.6 Amul Abroad: ............................................................................................................................ 31

3. Description of the business problem: ...................................................................................................... 35

3.1 Description of work assigned:........................................................................................................... 35

3.2 Description of work carried out: ....................................................................................................... 35

3.2.1 Research Methodology .............................................................................................................. 35

3.2.2 Method of Study ........................................................................................................................ 36


7/60

7

3.2.3 Product for which study was conducted..................................................................................... 36

4. Conclusion and Recommendation .......................................................................................................... 57

4.1 Observation and Learning ................................................................................................................. 57

4.2 Conclusions....................................................................................................................................... 57

4.3 Suggestions and Recommendations.................................................................................................. 58

5. Bibliography ....................................................................................................................................... 60


8/60

8

1 Introduction:

1.1 Background of the study:

Amul started its operations in Mumbai in the year 2006. At that point of time competitors like

Mahananda, Govardhan, Gokul were dominating the market share. After Amul entered the

market, its sales is growing since then. Competitors are facing decline in sales but it is gradual.

Amul is expanding its product range but in recent times it was facing decline in sales of its

established products such as Milk, Curd, ButterMilk, Lassi, etc specially in Zone 4 and Zone 5

region of Mumbai. This study was conducted for Fresh Product Department of Zone 5 of Amul

basically to increase the market share, finding out the issues with retailers and distributors,

addressing their concerns and increasing Amuls Visibility and Availability.

1.2 Background of the topic:

The work at Amul was totally related to increasing Availability and Visibility of brand Amul

in minds of retailers, distributors which itself in turn results in increase in end consumers mind

as well. The structure in which Amul operates currently is shown below:

Here, ADA : Area Delivery Agents/ Distributors

Plant ADA

Whole

salersRetailers

APO

End

Consumers


9/60

9

APO : Amul Preferred Outlets

Amul wanted us to eliminate middlemen, for eg. wholesalers and directly reach end consumers

as far as possible. For achieving this target it was mandatory to address the concerns faced by

distributors who form the crucial part of Amuls supply chain. To address their concerns, it was

necessary for us to understand the working of a Amul distributor so that we can suggest them

and Amul proper measures to increase their ROI and keep them happy and loyal towards Amul.

1.3 Company prof il e:

Amul is the largest food brand in India, much loved by customers and the world's largest

pouched milk brand with an annual turnover of US $2.15 billion (2012-13). Amul is into the

business of dairy products and has around 40 products in its portfolio, with some like butter,

cheese and milk being the front runners in the dairy industry. It enjoys immense popularity and

loyalty amongst Indians. Currently Unions making up GCMMF have 3.1 million producer

members with milk collection average of 9.4 million litres per day. With its presence felt not just

in India, Amul has entered overseas markets such asMauritius,UAE,USA,Oman,Bangladesh,

Australia,China,Singapore,Hong Kongand a fewSouth Africancountries. With more than 48

sales offices, 5000 wholesale distributors and 7 lakh retail outlets, Amul reaches around 2500

small towns.

The credit for its success goes to GCMMF. The Gujarat Cooperative Milk Marketing Federation

Ltd, Anand (GCMMF) is the largest food products marketing organization of India. It is the apex

organization of the Dairy Cooperatives of Gujarat and is the backbone of Amul. Over the last

five and a half decades, Dairy Cooperatives in Gujarat have created an economic network that

links more than 3.1 million village milk producers with millions of consumers in India. Hence,

distributors are the soul of Amul in a way. These cooperatives collect on an average 9.4 million

litres of milk per day from their producer members, more than 70% of whom are small, marginal

farmers and landless laborers and include a sizeable population of tribal folk and people

belonging to the scheduled castes.
http://en.wikipedia.org/wiki/Mauritiushttp://en.wikipedia.org/wiki/Mauritiushttp://en.wikipedia.org/wiki/Mauritiushttp://en.wikipedia.org/wiki/UAEhttp://en.wikipedia.org/wiki/UAEhttp://en.wikipedia.org/wiki/UAEhttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/Omanhttp://en.wikipedia.org/wiki/Omanhttp://en.wikipedia.org/wiki/Omanhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Omanhttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/UAEhttp://en.wikipedia.org/wiki/Mauritius


10/60

10

GCMMFAn Overview

Year of Establishment 1973

Members 17 District Cooperative Milk Producers' Unions (16

Members & 1 Nominal Members)

No. of Producer Members 3.18 Million

No. of Village Societies 16,914

Total Milk handling capacity per day 16.8 Million litres per day

Milk Collection (Total - 2012-13) 4.66 billion litres

Milk collection (Daily Average 2012-

13)

12.7 million litres

Cattle feed manufacturing Capacity 5890 Mts. per day

Sales Turnover -(2012-13) Rs. 13735 Crores (US $ 2.54 Billion)


11/60

11

1.4 Statement of the problem/assigned work :

The major problem faced by Amul was the decreased availability and visibility of Amuls

products at retail stores. Hence the major task was to make Amul available and visible to end

consumers through proper chain of distributors and retailers.

The tasks assigned were to initially study and know the market that included visits to several

retail stores, listening their concerns, studying the overall distribution process, addressing the

concerns of distributor, calculating their ROI, suggesting them strategies to increase the same by

promoting the products through various means such as kiosks, free sampling etc. to overall

increase the sales of Amul by creating interest and compelling consumers to buy Amul products.

1.5 Need of the study:

Even after having excellent quality products and reasonable prices, Amul was facing

decrease in its sales volume for the past few months. So it was necessary for the

management to know if the building blocks of their supply chain, i.e. distributors and

retailers if they are satisfied or not by checking and solving their issues and concerns. For

this intensive survey of retailers & Distributors was needed to know their position in the

market in comparison with other competitor brands. It helps the organization to find out the

brand being sold most by the retailers along with their stocking and also consumer buying

preferences. Especially in Dairy Industry the distribution network and the retailers play a

significant role in increasing the sales of the products. Its necessary to understand the

attitude of the distributors and the retailers towards the brand to increase the market share

and profit.

1.6 Scope of the study / work done:

The study and activities undertaken for Amul products was limited to the Fresh Products

Department (FPD) which included Fresh Milk, Curd, Buttermilk, Lassi in Zone 5 (


12/60

12

Vidyavihar, Chembur, Tilak Nagar, Kurla, Sion, Matunga, Dadar). It involved continuous

and repeated interaction with retailers and distributors to instil a confidence in them

regarding Amuls availability and regaining their trust. Apart from this, it involved studying: Retailers concerns Distributors concerns Generating orders Pitching in to more distributors Promotion activities through Kiosks Promotion activities through Free Sampling Competitor analysis Suggestions to the company to improve the sales

1.7 Objectives of the study:

Primary Objectives:

To map out the retail network of Amul fresh products in Zone 5 (VidyaviharDadar) To find the problems and understand the concerns of the retailers of Amul Fresh Products To find the problems and understand the concerns of the distributors of Amul Fresh

Products

To suggest strategies to distributors to increase their ROI To promote Amul fresh products by running promotional campaigns

Secondary Objectives:

To increase the sales of Amul Fresh Products in Zone 5

To make Amul Fresh Products available at retail stores To make Amul Fresh Products visible at retail stores Persuade retailers to sell more Amul Fresh Products To remove the unwanted middle men from the whole supply chain


13/60

13

2. Review of Literature

2.1 I ndian Dairy Industry

Indias dairy sector is expected to triple its production in the next 10 years in view of

expanding potential for export to Europe and the West Moreover with WTO regulations

expected to come into force in coming years all the developed countries which are among big

exporters today would have to withdraw the support and subsidy to their domestic milk product

sector. Also India is the lowest cost producer of per liter of milk in the world, at 27 cents,

compared with the US63 cent. Also to take advantage of this lowest cost of milk production andincreasing production inched country multinational companies are planning to expand their

activities here. Some of those 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

around33% per annum to around Rs.83, 500 crores by year 2010. This growth is going to come

from the greater emphasis on the processed food sector and also by increase in the conversion of

milk into milk products. In 2010, the value of Indian dairy produce was Rs 10, 00,000 million.

Presently the market is valued at around Rs7, 00,000million.

The Dairy Cooperative Network

Includes 170 milk unions

Operates in over 338 districts

Covers nearly 1, 08574 village level societies

Is owned by nearly 12 million farmermembers.

Apart from making India self sufficient in milk, these dairy co-operatives have established

our country as the largest milk-producing nation in the world.


14/60

14

2.1.1 Introduction and History

In the year 1946 the first milk union was established. This union was started with 250liters 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

wordAMULYA which means PRICELESS. A quality control expert in Anand had

suggested the brand name AMUL. Amul products have been in use in millions of homes since

1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul

Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made

Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a

symbol of many things like of the high-quality products sold at reasonable prices, of the genesis

of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy

of a farmers' organization. And have a proven model for dairy development (Generally known as

ANAND PATTERN).

In the early 40s, the main sources of earning for the farmers of Kaira district was

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 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 Shir Sardar Vallabhbhai Patel, who was a leading activist in the

freedom movement. Shir Sardar Patel advised the farmers to sell the milk on 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 Samarkh village near Anand, on 4th January 1946. He advised the farmers to form a

society for collection of the milk.


15/60

15

These village societies would collect the milk themselves and would decide the prices at which

they can sell the milk. The district union was also form to collect the milk from such village co-

operative societies and to sell them. It was also resolved that the Government should be asked tobuy milk from the union

However, the govt. did not seem to help farmers by any means. It gave the negative response by

turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira

district

went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a

result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then

visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the

farmers demand.

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. Varghese 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.


16/60

16

At the initial stage only 250 liters of milk was collected every day. But with the growing

awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amulcollect 11 lakhs liters of milk every day. Since milk was a perishable commodity it becomes

difficult to preserve milk for a 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 centers 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 Pundit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on

November 20, 1955.


17/60

17

Amuls 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. Whats 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 andthe professionals: each group appreciating its rotes and limitations.

Bring at the command of the rural milk producers the best of the technology and harnessits fruit for betterment.

Provide a support system to the milk producers without disturbing their agro-economicsystems.

Plough back the profits, by prudent use of men, material and machines, in the rural sectorfor the common good and betterment of the member producers.


18/60

18

Even though, growing with time and on scale, it has remained with the smallest producermembers. 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. 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.


19/60

19

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.

First hand is of farmers, without whom the organization would not have existed.

Second hand is of processors, who process the row material (milk) into finished goods.

Third hand is of marketer, without whom the product would have not reached the customers.

Fourth hand is of customers, without whom the products would have not carried on.

2.1.2 GCMMF OverviewGujarat 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.

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest

Organization in FMCG industry engaged in marketing of milk & milk products under the brand

names of AMUL and SAGAR with an annual turnover exceeding Rs 5000 crores.

GCMMF is a unique organization. It's a body created by Farmers, managed by

competent professionals serving a very competitive and challenging consumer market. It is a true

testimony of synergistic national development through the practice of modern management

methods.

2.3.1 Vision

Liberate our farmers from economic oppression and lead them to prosperity.

2.3.2 Mission

- Dairy cooperatives of Gujarat turnover of Rs. 27000 crores by the year 2020.


20/60

20

- To satisfy the taste and nutritional requirements of the consumers and increasing

numbers of these consumers today are to be found only at the large format stores. Hence,

in order to reach these consumers, we need to form equitable alliances with organizedretail chains wherever possible.

2.3.3 Objective

It is to ensure that the maximum share of the consumers rupee goes back to the milk producers.

2.3.4 Future Plan

Expansion of distribution network, creative marketing, consumer education and productinnovation, we will leverage effectively on rising income levels and growing affluence

among Indian consumers.

Tapping the rising demand for new value-added products. Milk shed area will increase to 231 lakh kg per day (23.1 million kg per day), at an

annual growth rate of 4%

Installing Bulk Milk Chillers and Automatic Milk Collection Systems in all our villagecooperative societies.

Collect as much as 195 lakh kg per day (19.5 million kg per day) of milk in the peakflush season.

Satellite dairies with combined processing and liquid milk packaging capacity of 50LKPD will be established in major metro market

We plan to double to processing capacity of our dairy plants to 20.7 million kg per day,by 2020

Milk drying capacity will also be enhanced by 200 MTs per day Plan to expand our cattle feed manufacturing capacity, more than four times to 12,000

MTs per day, by 2020.


21/60

21

Total investments envisaged for creating all the required infrastructure would be Rs.2,600 crores (Rs. 26 billion) till the year 2020.

2.4 Lines of business:

Table 2.4: Amul Product Range

Product type Products

Milk 1. Calci+2. Gold 4.5% fat extra cream3. Taaza 1.5% fat double toned4. Lite 0.2% fat5. Taaza Toned 3% fat

Milk powders 1. Amulya2. Sagar

Bread spreads 1. Butter2. Lite3. Delicious4. Reduced salt5. School pack

Cheese range 1. Gouda2. Cheese3. Pizza cheese (Mozarella)4. A+ cheese5. Processed cheese6. Paneer


22/60

22

7. Amul Pasteurized Processed CheddarCheese

Ghee 1. Amul Pure Ghee2. Sagar Ghee

Infant milk 1. AmulspraySweet Condensed milk 1. Mithai mate

2. Amul Mithaee Gulabjamuns3. Amul Basundi

Amul fresh cream

Kool beverages 1. Lassi2. Amul Kafe and other types3. Amul Kool Flavoured Milk4. Amul Kool Caf5. Amul Kool Koko6.

Amul Kool Millk Shake

7. Amul Kool Chocolate Milk8. Nutramul Energy Drink

Curd 1. Masti2. Lassi3. Prolife4. Flaavyo flavoured yogurt

Malt Beverage 1. Amul PROIce cream 1. Sundae Range

2. Probiotic3. Sugarfree and probiotic


23/60

23

Chocolates 1. Amul Milk Chocolate2. Amul Fruit & Nut Chocolate3.

Amul Dark Chocolate

4. Amul Chocozoo5. Amul Bindass6. Amul Fundoo

Ethnic sweets 1. Basundi2. Shrikhand3. Gulab Jamun

Product Portfolio

Butter Margarine Amul lite Cheese

Cheese Spread Paneer Pizza Cheese Pizza
http://www.amul.com/cooking-pizza.htmlhttp://www.amul.com/cooking-butter.htmlhttp://www.amul.com/cooking-paneer.htmlhttp://www.amul.com/cheese-spreads.htmlhttp://www.amul.com/cheese-cheddar.htmlhttp://www.amul.com/bread-lite.htmlhttp://www.amul.com/bread-delicious.htmlhttp://www.amul.com/bread-butter.html


24/60

24

2.4.1 Milk ProcessingThe entire process of milk can be divided into following steps:

Tetra milk Pouch milk Chocolates Milk shake

Flavored Milk Buttermilk Lassi Amulya

Amul spray SMP Nutramul Ghee

Mithai Mate Basundi Gulabjamun Fresh cream

Ice cream Shrikhand Dahi Yogurt
http://www.amul.com/desserts-yogi-yoghurt.htmlhttp://www.amul.com/cooking-mastidahi.htmlhttp://www.amul.com/desserts-shrikhand.htmlhttp://www.amulicecream.in/http://www.amul.com/fresh-cream.htmlhttp://www.amul.com/desserts-gulabjamun.htmlhttp://www.amul.com/desserts-basundi.htmlhttp://www.amul.com/cooking-mithai.htmlhttp://www.amul.com/cooking-sagar.htmlhttp://www.amul.com/healthy-nutramul.htmlhttp://www.amul.com/powder-milkpowder.htmlhttp://www.amul.com/powder-milkfood.htmlhttp://www.amul.com/powder-dairy.htmlhttp://www.amul.com/desserts-lassee.htmlhttp://www.amul.com/fresh-masti.htmlhttp://www.amul.com/fresh-flavoured.htmlhttp://www.amul.com/amulkoolmillkshaake.htmlhttp://www.amul.com/desserts-chocolates.htmlhttp://www.amul.com/fresh-fmilk.htmlhttp://www.amul.com/fresh-tazza.html


25/60

25

2.4.2 Distribution Network

Most producers work with marketing intermediaries to bring their products to market.

The marketing intermediaries make up a marketing channel also called distribution channel.

Distribution channels are sets of interdependent organizations involved in the process of making

a product or service available for use or consumption.

The Head Office of GCMMF is located at Anand. The entire market is divided in 5

zones. The zonal offices are located at Ahmadabad, Mumbai, New Delhi, Kolkata and Chennai.

Moreover there are 49 Depots located across the country and GCMMF caters to 13 Export

markets.


26/60

26

A zero level of channel also called a direct marketing channel consists of a manufacturer

selling directly to the final customers. A one level channel; contains one selling intermediary

such as retailer to the final customers. A two level channel two intermediaries are typicallywholesaler and retailer. A three level channel are typically wholesaler, retailer and jobber in

between.

GCMMF has an excellent distribution. It is its distribution channel, which has made it so

popular. GCMMFs products like milk and milk products are perishable. It becomes that much

important for them to have a good distribution.

We can see from above figure that GCMMF distribution channel is simple and clear.

The products change hands for three times before it reaches to the final consumer. First of all the

products are stored at the Agents end who are mere facilitators in the network. Then the products

are sold to wholesale dealers who then sell to retailers and then the product finally reaches the

consumers.


27/60

27


28/60

28

2.4.2 Amul Model


29/60

29

2.4.3 Managing Competition:

The Indian market is dominated by a large number of small local and regional players. There are

an estimated 150 manufacturers in the organized segment, which accounts for 30-35% of sales

and about 1000 units in the unorganized segments of the market. In the organized segment the

significant brands are Kwality Walls , Vadilal, Amul, Havmor, Mother dairy and Baskins &

Robbins. GCMMF is facing very tough competition from both in and outside India. Amul

combats competition from its competitors by providing quality products at a price which its

customers value. Along with good quality products and reasonable price the packaging is also

very good. Most of its products are available in many flavors. Excellent advertising backs its

products and helps GCMMF (AMUL) to leave its competitors a tough time. Also Amul has

come out with Amul Parlours to cater to various segments of customers. Amul has a very strong

Brand Image in the Domestic market. Many products are exported by GCMMF.

2.4.5 Market Share of Different Products

Figure-2.7


30/60

30

2.4.5 Advertising by Amul:

Amul has two agencies that look after its entire range of products namely FCB Ulka and Da

Cunha. FCB Ulka looks after a broad range of products namely, Amul Lite Breadspread, Amul

Shrikhand, Amul Chocolates, Amul Paneer, Amul SnowCap Softy Mix Ice cream, Amul/Sagar

Ghee, Amul Infant Milk Formula 1 & 2, Sagar Tea and Coffee whitener, Amul Spray Infant

Milk Food, Amul Mithaee, Amul Gulab Jamun, Amulya Dairy Whitener, Mithaimate SweetenedCondensed Milk, Amul Ice cream, Sagar Skimmed Milk Powder and Amul Whole milk Powder.

Da Cunha looks after the Amul butter. Da Cunha also prepares the very popular Amul butter

billboard campaigns, which we see at various locations.

Over and above the Amul butter, Da Cunha also looks after the Amul Cheese, Cheese spread,

Gouda Cheese, Emmental Cheese, Masti Dahi and Buttermilk, Amul Slim-n-Trim, Amul Taaza


31/60

31

and Amul Gold (all different brands of milk), Amul Fresh Cream, Amul Chocolate Milk, Amul

Fresh Milk and Nutramul. FCB Ulka also looks after the corporate campaign.

2.4.6 Amul Abroad:

Amul is going places. Literally. After having established its presence in China, Mauritius and

Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), Indias largest milk

cooperative, is waiting to flood the Japanese market. Then, GCMMF is also looking at Sri Lanka

as one of its next export destinations. Amul products are already available on shelves across

several countries, including the US, China, Australia, West Asian countries and Africa.

GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk, ultra

heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.


32/60

32

2.5 Financial Background


33/60

33


34/60

34

Graphical Representation

0

20000

40000

60000

80000

100000

120000

140000

1

994-95

1

995-96

1

996-97

1

997-98

1

998-99

1

999-00

2

000-01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2

008-09

2

009-10

2

010-11

2

011-12

Rs (million)

US $ (in million)


35/60

35

3. Description of the business problem:

3.1 Descri ption of work assigned:

The following activities were assigned to me over a period of 2 months:

1. Detailed study of Amuls fresh product market in Zone 52. Map out the retail network of Amul fresh products in Zone 53. Address the problems and understand the concerns of the retailers of Amul Fresh

Products

4. Address the problems and understand the concerns of the distributors of Amul FreshProducts

5. Observation and analysis of consumer buying behavior specific to dairy products6. Understand the working process of milk distributor7. To suggest strategies to distributors to increase their ROI8. To promote Amul fresh products by running promotional campaigns9. Regularly raising purchase orders for Amuls fresh products and make sure that order is

completed on time

10.Expand the network of Amul by pitching in more people to turn into distributors11.Expanding the reach of Amuls fresh products to untapped market i.e. mainly loose milk

users

12.Study of various competitors and various schemes and offers provided by them.

3.2 Description of work carr ied out:

3.2.1 Research Methodology

This was a qualitative research conducted from 2nd May to 29th June 2013 .The research

included meetings with the distributors and retailers, it involved face to face communication and

asking them questions in order to understand the concerns and issues faced by them. The views

of the retailers and distributors were recorded in the research. Also promotional campaigns were

being carried out through which buying pattern and preferences of end consumer was noticed.


36/60

36

3.2.2 Method of Study

It is direct form of investigation, involving face-to-face communication with free feedback

information. It offers a sense of participation. It is more flexible form of data collection. Use of

unstructured, open-end questions is possible. Rate of refusal is low .Depth interview is

poss ible. Complex questi ons can be asked. The interview can have questions to

secure more information.

Also, good observation power itself helped to answer some questions which we did not get

directly from the retailers or distributors.

3.2.3 Product for which study was conducted

1. Fresh Milk

Amul Gold Amul Taaza

DescriptionPasteurised milk Amul milk meets the PFA standards for the respective

type of milk.

Packing Poly Pack - 500ml, 1000ml, 5 Ltr

Shelf Life 48 Hours from the date of packing if kept under refrigeration below 8C

Varity Fat% SNF%

Amul Gold 6 9


37/60

37

Amul Taaza 3 8.5

Pricing of the Milk ( in Rs./crt of 10 l)

Variety ADA Retailer MRP

Taaza 302.8 309.40 320

Gold 399.40 406.40 420

Slim & Trim 273.20 279.60 310

2. Curd

Product Name Amul Masti Dahi

Description Curd made from Pasteurised Toned Milk

PackingPoly Pack - 200 gm, 400 gm, 1 kg *

PP Cup - 200 gm, 400 gm, 100 gm

Shelf Life Poly Pack - 7 Days from the date of packaging PP Cup - 15 Days


38/60

38

Pricing of the Pouch Dahi

Weight ADA Retailer MRP

200 gm 11.46 12 13

400 gm 22.08 23 25

1 kg 43.89 45 50

3. Butter Milk

Product Name Amul Pouch Butter Milk

Description Pasteurized Buttermilk meets the PFA standards.

Packing Poly Pack - 500ml

Composition

FAT(%) 1.0

SNF (%) 5.5

Acidity 0.8% Max

Shelf Life48 Hours from the date of packing if kept under Refrigeration below

8C


39/60

39

4. Lassi

Product Name Amul Prolife Probiotic Lassee

Description Flavoured Probiotic Lassee (Drinking Yoghurt)

Packing 200 ml Glass

Composition

Toned Milk, Sugar / Salt, Fruit Pulp Compound, Stabilizer ,

Active Probiotic Culture

Nutritional Information 60 kcal/100 ml

Shelf Life

MRP

Best Before 10 days from Packaging

Rs. 15 /cup

Area of operation

The areas of operation where the study was conducted are as follows:

Vidyavihar


40/60

40

Tilak Nagar Chembur Kurla Sion Matunga Vadala Dadar

How the survey conducted

To approach the outlets with the following requirements in mind

Addendum:

Outlets may include institutions, general stores, hotels, restaurants,

mithai shops, super market, canteens, juice bars, ice-cream corners etc.

These sectors were chosen because the company believed that these

segments could be the best potential buyers for this product.

Phases of Project :

We carried out the entire project in six different phases:

Phase 1 : Retail store visit

Phase 2 : Distributor Visit

Phase 3 : Kiosk Activity

Phase 4 : Market visit for collecting truck sheet, pitching in for

distributors/APOs


41/60


42/60

42

We also placed posters on retails stores walls for Curd and Chaach at a strategic

location where they are most visible to increase brand visibility and promoting the

brands relatively new products.

Insights : In this phase,


43/60

43

We got clear idea about the market of Amul Understood retailers perception about Amul Retailers were majorly concerned about very low margins being provided by

the market

They had issues regarding backdated Curd provided to them Other competitors were providing better margins and better schemes Worried about No replacement policy Most of the retailers were not supplied adequately by their respective

distributors

Demand of brand depended on area/locality to a large extent Some ofthe retailers were not happy with the distributors behaviour Retailers wanted some additional schemes by Amul Retailers were more than happy to place Amul posters at their outlet provided

there is regular supply of that product at their store

Phase 2 : Distributor Visits

Duration : 7 days

Time Frame : 20th May 13 to 25th May 13

Aim : To understand the working of a milk distributor, study his concerns in

accordance to the market scenario, calculate his ROI, suggest strategies

to increase his ROI

Description : In this phase, I visited few distributors and understood their

process of working.

There are 2 kinds of distributor:

ADA : milk is supplied to them at their location by Amul i.e. they do not need

to incur transport cost to bring the milk from plant to their place

General Distributor : they use their own transport to get and distribute the milk


44/60

44

So by general process, milk is delivered from the Amul plant to the distributors

location in the trucks at around 2 am- 3 am in the morning. Bill is given

at the same time. At the same time, empty crates of previous day arecollected by them. Distributor then takes the milk in his own vehicle and

supplies to all the retailers and whole sellers in his region. This activity

is generally done between 3 am to 6 am. After that, distributor generally

sells the milk to end consumers from his own place and sends milk

through bicycle wallas to smaller retailers or wholesalers. Till 10 o

clock , he is done with all the selling process and recording and

maintaining his calculation books. After that generally distributor

revisits retailers to collect the empty crates and the payment. Some

distributor do offer 1 day credit policy of payment to retailers. They then

generally have to pay the amount to Amul on a daily basis. It can be

done through draft or cheque. Generally distributors prefer draft system

as they dont believe in cheque system.

Amul reimburses the charges of transportation according to distance being

travelled in following manner:

For every 50 to 100 km travelled, 3Rs/crate/ day is reimbursed

For every 100 to 250 km travelled, 3.3 Rs/crate/ day is reimbursed

For 250 km and above travel, 3.6 Rs/crate/ day is reimbursed

ROI ( Return on Investment ) Calculation :

For calculation, suppose we consider a distributor who takes 250 crates/ day.

Number of crates = 250

Margin earned per crate = Rs. 6 (approx)

Per day profit = Rs. 6 * 250 = Rs. 1500

Monthly profit = Rs. 1500 * 30 = Rs. 45000


45/60

45

Cost incurred:

Transportation Cost = Rs 5000 ( approx)Manpower Cost = Rs 5000

Other Miscellaneous Costs ( including Maintenance costs) = Rs 3000 (say)

Total Cost = Rs. 13000

Return on Investment = Monthly Profit Total Cost = Rs. 45000- Rs. 13000 =

Rs. 32000

Thus an average Amul distributor selling around 250 crates earns a decent

amount of Rs. 32000 only from Amul. Apart from that generally

distributor keeps other brands as well and also they run side business

simultaneously.

Concerns of Amul Milk Distributor :

Following were the major concerns faced by distributors:

Forced distribution of Curd. This is a concern as their is no demand ofcurd from retail side. So it gets wasted.

Dumping is their major problem. According to distributors, they aregenerally dumped around 10% of the quantity they order. They are

highly dissatisfied due to this tendency of Amul

Because of this some distributors prefer to take Amul from outside andnot directly from the company.

Distributors who are associated with Amul since long time expect somekind of extra incentives.

Less margin provided by Amul but lot of formalities and bad policies


46/60

46

Damaged product or leakage problem : No replacement provided. Dailysome milk gets wasted

Some customers complaining about product quality

Number of empty crates issue. Empty crates taken by Amul everymorning is not synchronized with the number of crates being supplied

They do not believe in cheque system of payment to Amul. They do notwant to submit the security deposit.

Insights :

On discussion with our seniors at Amul , we came to know thatdumping is intentionally done by the company to the distributors so

that distributor supplies milk to each and every store and doesnt

ignores smaller stores. This serves the purpose of Amul to make its

product Available everywhere.

On observing minutely, I found that some of the distributors weretrying to push other brands like Aarey which give them relatively

very high margins.

As quality of Amul milk is very good, distributor prefers to sell themat the end as it wont get spoiled. Even if it is left it can be used at

later point of time

The leaked packets doesnt actually get wasted, distributor generallysells them as loose milk

Strategies for distributors:

As we saw, for an average distributor selling 250 crates/day he earnsaround Rs. 32,000. If the distributor increases his volume of sales, he

will definitely be able to earn more and increase his ROI

Product Complaint Form (PCF) : One of the major concern faced bydistributor is packet leakages. This is taken care by Amul by providing


47/60

47

facility of PCF. By using this facility, they can claim for reimbursement

from the company for all the damages they faced in an entire year.

Dumping problem they wont face if they try to reach out to as manyretailers as possible and fulfilling their demands

Amul also incentivize their distributor on the basis of their sales. Morethe sales, more the incentives

If they use their own transport, Amul reimburses that amount as well At place of security deposit, bank guarantee of any form can also be

submitted

If distributor supplies properly in his area, he can gain retailersconfidence and then retailers will take from him only and this way he

can increase his volume of sales and hence profits

Phase 3 : Kiosk Activity

Duration : 7 days

Time Frame : 27th May 13 to 01st June 13

Aim : To promote Brand Amul and target end customers directly

Description : Kiosk activity itself was carried out in various steps.

1. Selection of proper store : First of all, we tried to look out for a retail store where kioskcan be organized. They were judged on the basis of locality, size of store, number of

competitor brands present, etc. Store should be easily approachable, frequented by lot of

customers. The more the presence of competitors over the store, better it is for organizing

a kiosk.

2. Pamphlet distribution and creating a buzz in the market : Once kiosk location and datewas finalized, proper pamphlet distribution in the adjacent area was carried out. We made

sure that they are distributed properly. Pamphlets had all the required information about

date, place and discount provided on the products.


48/60

48

3. Kiosk : At each location kiosk was carried out for 3 continuous days. We interactedwith customers, gained their trust, did Amuls branding, sold products, made sure

customer revisits us and atleast taste our product. We also entertained their demands andtook reviews about particular products.

4. Finances: We were also responsible for maintaining proper financial data andsubmitting it to the office. Over the 3 days, sales increased substantially each day.

Discount provided :

Rs. 2/ litre on milk

Rs. 5 / 400gm pouch of curd

Rs. 3/ 200 gm pouch of curd

Rs. 5 / cup of Lassi

Sales generated :

Day 1 : Rs. 850

Day 2 : Rs. 1660

Day 3 : Rs. 2720


49/60

49


50/60

50

Insights:

Understanding customer need is of prime importance Before doing any promotional activity, proper awareness campaign is

essential.

Our voice should reach customers directly Language of the community needs to be taken care of. Pamphlets were

printed in both Hindi and English depending upon the area of kiosk

Customer generally doesnt give second chance. So their demandsshould be given highest priority

Proper branding needs to be done in order to make people believe thatyou are genuine

Promotion effects are seen gradually. It is not immediate Places where coupon system is used, is not a good place to run such a

promotional campaign

If a person is 100% brand loyal, then no promotional campaign can shifthis brand loyalty

Phase 4 : Market visit for collecting truck sheet, pitching in for

distributors/APOs

Duration : 10 days

Time Frame : 02nd June 13 to 12nd June 13

Aim : Remove middlemen from Amuls supply chain.

Description : In this phase, I went to market and did multiple activities such as : -

Took truck sheet from the distributor. Truck sheet is the document provided bythe distributors to the company in which all the details regarding number of

retailers it provides milk to , quantity provided, etc are mentioned on a monthly


51/60

51

basis. Company uses this truck sheet to keep proper track of the distributors and

check their network of retailers

Checked if the data provided in the truck sheet is valid or not by cross checking itwith the retailers. Once we got the truck sheet from the distributor, it was essential

to check its validity by going to each and every retailer and confirming whether

the amount given is correct or not

Pitched in few whole sellers/ retailers to turn into Amuls distributors by tellingthem proper advantages of doing the same. Amul wants to remove middle men

from the system. So in order to achieve that , it was necessary to make people


52/60

52

aware about the advantages of being the distributor. So I went into the market,

tried to identify wholesellers/ retailers who could be potential distributors. More

margin is a lucrative factor by which people generally get attracted to become adistributor. The major concern some of the people faced in this scheme was the

high security deposit of minimum 50,000 being charged by Amul. Everybody is

not able to afford that amount and they dont want to get into so many formalities

and all.

Pitched in few retail stores to turn into APO (Amul Preferred Outlet) or open anice cream parlour by telling the schemes and advantages of the same. Advantage

of opening a APO is the additional margin of 1.5% in dairy item and 2.5% in

icecream. There is minimum area requirement of 100 sq feet. Also some initial

investment in the form of security deposit, deep freezer, visi cooler, counter and

other furniture, electricity equipment, colour and tiles needs to be borne by the

owner which amount to total of somewhere around 1.5 lakhs.

Insights/ Learning:

Learned pitching and convincing distributors Distributors concerned about security deposit could be convinced by telling them the

alternate option of bank deposit

Importance of maintaining truck sheet was observed

Phase 5 : Free Sampling of Pouch Dahi

Duration : 10 days

Time Frame : 13th June 13 to 22nd June 13


53/60

53

Aim : To promote the new product Pouch Dahi amongst masses by free

sampling

Description : Pouch Dahi is a new product launched by Amul recently. It is cheaper thanAmul Cup Dahi and has got many other advantages still its sales is less. People are not aware

of its advantages or they are so much use to of having Cup Dahi that do not even want to try

Pouch Dahi. To eliminate this problem and increasing Pouch Dahis visibility in the market

we came up with another promotional campaign in which we distributed free samples of 400gm

Dahi to canteens, restaurants, cafes, hotels, local chat wallas and other similar store. We

distributed free samples and tried convincing the owners to try our product for once and if they

liked the product, they could order it.

This campaign was carried out in Sion, Matunga and Chemur region of Zone 5.

Results: Free sampling activity generated amazing results as we immediately got orders of 1

crate of Dahi per day per region which was itself a achievement.

Insights:

Most of the eating joints we targeted were using loose milk to make their own Dahi.Convincing these customers to switch to Amul was quite difficult as it becomes quite

expensive for them.

All outlets were not willing to take the free sample. If people were sure that they are notgoing to switch, they did not accept free sample also.

Regular follow ups were needed. Quality of free sample had to be ensured.

Phase 6 : Competitor Analysis

Duration : 7 days

Time Frame : 24th June 13 to 29nd June 13

Aim : To get competitors info about the rates and schemes being provided by them

Description: In this phase, we were supposed to go to wholesalers and get the info such

as : competitors distributors name, contact no. & sale & area, competitors wholesaler


54/60

54

sale, rate, contact no., area, competitor price structure, competitors market activity like

schemes, banner, wall painting, coupons to consumer etc.

Insights :

Major competitors to Amul are : Mahananda, Gokul, Mother Dairy, Gowardhan,Paras, Kanhaiya, etc.

Rates of all major brands of millk are almost similar but margins provided differs Amul provides least margin Mother Dairy is preferred in Dahi because of good packaging and creamy curd Mother Dairy provides replacement facility i.e. they take back the unsold product Amul doesnt provide any regular schemes whereas brands like Radhika/

Shivsagar provides regular schemes such as 2 litre free on 1 tray

Mother Dairy had some promotional offer consisting of scratch coupons Some brands provided scheme on Dahi like one biscuit free on 1 box of Dahi

Limitations and Constraints

This report had to work under several constraints and limitations. Some of the key limitations

are:-

This study is limited to only Zone 5 of Mumbai. Time period of the project was 8 weeks, which may not be enough to understand thewhole market.

Convenient sampling was used as the mode of conducting the research. The sample size taken was small, therefore it can be said that the chosen sample is not arepresentative of the whole population and this hindered the quantitative research.

The psychology and temperament of a retailer play a significant role. Some respondents aremore sensitive as against others who are more tolerant. A change in the composition of the

retailer can affect the answers adversely or favourably.

Retailers may have not been true in answering various questions and may be biased tocertain other questions.


55/60

55

Out of the whole research and analysis, only four major brands could be highlighted. The sample size of retailers/distributors was very small and therefore response from themdoes not reflect the exact view. Heavy rainfall in Mumbai hindered the sales process


56/60

56


57/60

57

4. Conclusion and Recommendation

4.1 Observation and Learning

For developing marketing strategies, proper understanding of the market is crucial Both retailers and distributors are not willing to sell Amul products because of very less

margin offered by Amul

Still they have to keep Amul products in their stores due to its high demand in the market They keep Amul as it helps them in selling other products also They are least interested in keeping Amul dahi because of its less demand At most of the outlets, Dahi has backdated issues Measurable amount of retailers were not happy with their distributors because of frequent

change in supply of milk, replacement of leak pouches and high prices charged by the

distributors.

All the retailers are not getting Amul Milk directly from the distributors appointed by theCompany and a new intermediate has joined the supply chain which further reduced the

margins for the retailers.

Retailers were not interested to start APO because to start APO one requiredlarge amount investment i.e. near about 2 Lakhs and with this it is mandatoryto sale only Amul products, so most of the retailers did not show interest in

APO.

During off season company do a lot of dumping of Milk and other products on thedistributors and this dumping is further carried to the retailers.

4.2 Conclusions

During my internship at Amul, I realized that Amul is a very strong brand in the mind of

consumers, retailers and distributors. It still occupies the major market share. But as Amul

provides less margins, retailers and distributors are unwilling to keep that. Hence it doesnt

reaches end consumers. Competitor brands like Mother Dairy, Mahananda, Gokul though

less preferred but still are favourites of retailers and distributors due to comparatively high


58/60

58

margins and more schemes. Also there is problem of supply between distributors and

retailers. Some retailers desperately wants Amul but are not getting served properly by their

distributors. Hence distribution channel needs to be taken care by Amul.

With the help of this research the company can find out its week points in Milk product and

can increase its market share. People have believed in Amuls product and they will accept it

also if effective actions are taken.

Quality is the dominating aspect which influences consumer to purchaseAmul product, but prompt availability of other Milk brands and aggressive

promotional activities by others influences the consumer towards them and

also leads to increase sales.

In comparison to Amul Milk, the other players such as Mahanand, MotherDairy, Gokul & Go war dh an provide a better availability and give

competition to the hilt.

People are mostly satisfied with the overall quality of Amul Milk, but for theexistence in the local market Amul must use aggressive selling techniques.

4.3 Suggestions and Recommendations

The Milk products market has reached Maturity stage in India as large no. of Co-

operatives having a variety of product range have entered the market, thus there is one way for

Amul to sustain their milk business in the market by delivering outstanding satisfaction to their

distributors and retailers, so that they can take interest in selling of Amul milk products. This

can be done as follows:-


59/60

59

Amul has a relatively good distribution network, but still company is not able to fulfilthe demand of outlet in the peak season when demand is very high. Here company

should focus on the supply of product in the peak season. Supply should be regular to all the outlets including those that lie in the pocket roads

and not just in the outlets which lie on the easily accessible routes.

250 ml milk pouch should make available to retailers for selling, becauselower income family has intention to buy small pouch milk.

Do not change distributor frequently, because he is the only person who act as aconnecting link between company and retailers.

Do not place more than one distributor in same market area.. Incentives & schemes should be given to the retailers and some scrutiny

should be follow to check the scheme get being communicated properly by

distributors or sales person.

Timely visit should be given to the retail shops. This gives them surety that Amul is stillthere for them and there is some place where they can raise their concerns.

Try to minimize bank deposits for APO and Distributors, which will helpretailers to convert themselves in APO.

Improve delivery schedule to provide products on time for the retailers aboutwho claimed that Amul milk is not available to them on time.

Provide consistent service to retailers as this will help gain company goodwillin the market.

Unnecessary dumping of products should be avoided to the distributors Some direct form of communication medium between retailer and Amul

should be present so that both the parties are on same line. This can easily be

done by using the database of retailers provided by us to Amul


60/60

5. Bibliography1. www.amul.com2. Naresh K Malhotra., Marketing ResearchAn Applied Orientation, 4th Edition, PearsonEducation Pvt. Ltd, New Delhi, 2003.3. Abraham Koshy, Mileshwar Jha -- Marketing Management, Pearson Prentice Hall, New

Delhi, 2007.4. Marketing ManagementPhilip Kotler, Kellar, Jha, Koshy, 13th Edition5. Business India6. en.wikipedia.org/wiki/Amul
http://www.amul.com/http://www.amul.com/

Download - Amul Report_Rashi Garg

Top Related