INTRODUCTION

AMUL is the largest co-operative in India. It is also known as GUJARAT CO-OPERATIVE

MILK MARKETING REDERATION LTD (GCMMF LTD).

Gujarat Co-operative Milk Marketing Limited produces a wide range of milk products like Butter,

Lite Butter, Flavored milk, Skimmed milk, Masti Dahi, Paneer, and Ice Cream etc. And these entire

products are available in the market with the brand name “Amul”. In the market Amul has also got

nickname i.e.” BUTTER-KING ”, which shows that Amul is the market leader in Butter is the only

product which is also called as the backbone of Amul. Here the Subject of study is Ice Cream.

After years of market research and analysis Amul found that there is a large for Ice cream in Indian

market. And finally in year 2002 Amul launch it Ice-cream where the market leader like HLL’s

Quality Walls,

Vadilal, were already playing in market with the some other local brand of respective area. But due to

the brand image of Amul, it gets a platform for successful launch with a wide range of product.

Presently, Amul claims to be the

Frontrunner in the ice – cream business. It has been able to create large customer bases that will

consume nothing but Amul when it comes to Ice –cream.

Amul means ”Priceless” in Sanskrit, the brand name “Amul” from the Sanskrit Amoulya was

suggested by a quality control export in Anand variants all meaning “price less are found in several

Indian languages Amul products have been in use in millions of homes since 1946, Amul Butter,

Amul Milk Powder, Amul Ghee Amul spray, Amul Cheese

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Amul Chocolates, Amul Shrikhand, Amul Ice-cream,

Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India (Turnover Rs. 29

billion in 2004). Today Amul is a symbol of Many Things of high quality products sales at reusable

price of the genesis of a vast co operative network of the triumph of indigenous technology of the

marketing survey of farmers organization and of proven model for dairy development.

GUJARAT COOPRRATIVE MILK MARKETING FEDRTION

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is an India’s largest food product

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.

Members: 12 district cooperative milk producers'

UnionNo. of Producer Members: 2.36 million

No. of Village Societies: 11,333

Total Milk handling capacity: 6.9 million liters per day

Milk collection (Total - 2003-04): 1.81 billion liters

Milk collection (Daily Average 2003-04): 4.97 million liters

Milk Drying Capacity: 511 metric Tons per day

Cattle feed manufacturing Capacity: 2340 Mts per day

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HISTORY

THE BIRTH OF AMUL

Linked to the freedom movement of India.

Founded in 1946 to stop the exploitation of milk producers at the hands of middlemen.

Inspiration of pre-eminent National leaders.

A Co-operative movement – member control on milk production, processing and

marketing.

A humble beginning with two village societies and 247 liters of milk.

THE GROWTH OF AMUL

Co-operative movement spread like wild fire in the state.

Rapid increase in milk procurement.

Identification of Bombay liquid market.

Investing in manufacturing plants that produce milk powder, butter, cheese and

condensed milk.

Launch of “Amul” as a brand.

Creation of a comprehensive model.

- Milk production enhancement programs.

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- Member education and involvement.

- Democratic setup at grass root level.

- Animal health and veterinary services.

- Cattle feed manufacturing and marketing.

- Flavored Milk processing through latest technology.

- Mobilization of financial recourses.

- Creation of a nation-wide marketing network.

- Emphasis on brand building.

- Ultimate aim is to satisfy its customer through its taste.

During the last four years, our Member Unions have implemented an Internal Consultant

Development (ICD) intervention focused on developing leadership among member producers,

helping them to better manage their dairy business.

During the year, Member Unions continued to implement the module on Vision Mission Strategy

(VMS) for primary milk producer members and Village Dairy Cooperatives. Facilitated by specially

trained consultants, 1,073 Village Dairy Cooperative Societies (VDCS) have conducted Vision

Mission Strategy Workshops, and have prepared Mission Statements and Business Plans for the next

five years. The VMS module has prompted milk producers to initiate activities at villages that have

far-reaching effects on the milk business.

The success of the program has led to Member Unions focusing on implementing this VMS module

and developing Business Plans for all VDCS, thus strengthening them to face the fierce competition

ahead.

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Continuing the Cleanliness Drive at village level, Member Unions have trained 8,455 core groups of

milk producers and VDCS management. On October 2nd, 2,970 VDCS celebrated Red Tag Day, an

effort to raise Cleanliness awareness. The Unions also presented awards to the VDCS that raised

cleanliness standards to the highest levels.

As a part of the Breeding Services Improvement Programmed, Member Unions have continued

implementation of the second module of Improvement in Artificial Insemination Services. In the

villages, 3,374 core groups have been trained and a decision has been taken to extend the program to

include all the VDCS that offer breeding services. A mass de-worming campaign has been

undertaken to fortify the breeding services. During the year, Member Unions implemented an

Artificial Insemination Audit Competition that identified the best performing VDCS and Artificial

Insemination Workers who received awards as a motivation for continued improvement.

With the objective of encouraging professional management by Milk Producers and dairy

cooperative societies, Member Unions have initiated Members' Business Development Programmed

(MBDP). During the last three years, 2,483 villages and 1,53,108 milk producers participated in the

programmer. This has resulted in introduction of new scientific animal husbandry management

methods on a significant scale.

A Chairmen and Secretaries' Orientation Programmed is being conducted at Mother Dairy,

Gandhinagar. Member Unions, supported by your Federation, carry out this program to increase

awareness regarding the dairy industry scenario and to develop leadership skills among Chairmen

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and Secretaries. During the year, 5,797 chairmen and

secretaries from 2,944 Village Dairy Cooperative Societies participated in the program.

An ongoing emphasis of our Member Unions has been to encourage increased women milk

producers' participation in their Dairy Cooperative Societies. To develop and enhance leadership

skills and qualities, Member Unions organized three Self Managing Leadership (SML) workshops at

Prajapita Brahmakumaris, Mount Abu which attracted the participation of 3,100 women resource

persons along with the Chairmen and Secretaries of 750 VDCS

FORMATION OF GUJARAT COOPERATIVE MILK

MARKETING FEDERATION LTD [GCMMF]

GCMMF: An Overview

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Gujarat Cooperative Milk Marketing Federation

(GCMMF) is a India’s largest food product 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.

Formed 1973

No. of Cooperative Unions 12

No. of Dairy plants 19

Capacity 6,595 Thousand Liters per Day

No. of retail outlet 5,000

Cities Covered 1,000

It is Apex Marketing Federation of 12 District Milk Unions in Gujarat to operate own marketing and

distribution networks pan India and abroad.

Milk Product Range:

Infant Milk Food

Instant Milk Mix

Ice-cream

Skim Milk Powder

Ghee

Paneer

Butter

Dairy Whitener

Sweetened Condensed Milk

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Flavoured milk(AmulKool)

Malai Peda

Shrikhand

Pizza Cheese

Gulabjamun  

COMPETITORS OF AMUL :

PARAS (VED RAM & SONS)

MADHUSUDAN

MOTHER DAIRY

AMRIT FOOD

GOPALJEE (G.K.DAIRY)

UMANG (J.K.DAIRY)

PARAM

RAMLAL

MADHUBAN

COMPETITOR OF AMUL ICECREAM

MOTHER DAIRY

KAWALITY WALLS

CREAM BELL

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VADILAL

AMIRAJ CLASSIC

PATEL DAIRY

SHREE JANTA

AMUL IN DELHI:

Mother Dairy dominates Delhi National Capital Region (NCR), among the biggest milk markets in

the country, currently. Amul and NDDB's non-compete agreement has prevented the former from

launching its liquid milk in the Delhi market till 2003.

With the non-compete agreement having run out this year, Amul fresh milk was launched in Delhi

last month in two variants — full cream and toned — priced at par with that of Mother Dairy at Rs

18 and Rs 14 per litre, respectively. Amul is bringing its milk into Delhi through one of its district

co-operative unions, the Gujarat-based Mehsana Union. The milk will be packed at Quality Dairy in

Ballabgarh, leased out to Amul for this purpose. Amul will use the same distribution network as

butter and cheese to retail Amul Milk in Delhi. According to Mr R.S. Sodhi, Amul’s marketing head;

Amul will not use skimmed milk powder in its milk.

Amul, to its delight, has seen the demand for its milk going up by leaps and bounds in the city and is

now planning to enter into alliances with dairies located around Delhi such as Indian Potash and

Modern Dairy to cater to the demand.

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GCMMF officials say the company's milk capacity has

already touched 80,000 liters per day (LPD) and have plans to take it to 3 LPD. Amul is now selling

through 2,500 retail outlets and will increase this to 7,500 apart from covering outlets which are

selling Amul butter.

The Delhi market comprises 40 lakh liters currently and is dominated by Mother Dairy, which sells

10 lakh LPD. The other organized sector players are Paras Dairy, which sells 3 lakh LPD, state-

owned Delhi Milk Scheme (2.5 lakh LPD), Gopaljee (1-1.5 lakh LPD) and Britannia 30-40,000

LPD.

In just a fortnight, Amul milk has taken the Indian capital by storm, rapidly eating into the market

share of long time players like Mother Diary and Paras. Who cares if it was rivalry or business

strategy that made the Gujarat Cooperative Milk Marketing Federation (GCMMF) enter the capital

with Amul milk to take on state-owned Mother Dairy in its home turf? From the response, Delimits

seem to be lapping up Amul’s pouches of full cream and toned milk in unimagined quantities.

In just two weeks of entering the market, Amul is beginning threaten the virtual monopoly of Mother

Dairy and Paras. “We did not expect to reach 70,000 litres daily supply in little over two weeks,”

said R.S. Khanna, a GCMMF official here.

“We had expected to go up gradually and had made arrangements for pasteurisation and packaging

of just 60,000 litres per day at Quality Dairy’s unit in Faridabad, which we have leased,” Khanna

said. But in less than one week, Amul notched the mark of 50,000 litres per day. GCMMF is

bringing milk to Delhi through one of its district co-operative unions, located at Mehsana, around

700 km from the capital.

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The fresh milk is transported through insulated containers

of between 12,000 to 20,000 litres capacity at two degree centigrade. After the 24 to 30 hours

journey by road, the milk is processed and packaged at Mehsana before being distributed in the

Indian capital. “The packaged milk is being sold through 2,500 retail outlets, which we hope to raise

to 7,500 as we soon as we are able increase the

Supplies to 100,000 litres. Currently we are working at more than full capacity at Quality Dairy to

meet demands,” said Khanna.

“In two months our target is to raise supplies to 200,000 litres per day,” he added. The official

admitted that the idea of entering the Delhi market had originated in August when the state and

central governments approached the GCMMF to help tide over an acute milk shortage. “Having

helped to bridge the demand supply gap, we decided to come in with fresh milk supply, which does

not contain any milk powder and is creamier and of richer quality compared to most other milk

supplied in the city because it has more fat and solid non-fats like protein and minerals,” said

Khanna. At over five million litres a day, Delhi is one of the biggest markets for milk in the country.

Of the supplies from the organised sector, Mother Dairy has been the undisputed leader with 1.8

million litres daily sales through package and vending machines. The other big names are Paras,

Param, Gopaljee and Umang. Now Amul milk has arrived to eat into the share of other players in the

market on the strength of its quality and brand equity.

AMUL ICE-CREAM IN DELHI AND NCR :

Delhi being the capital of India is also center for the organizational fight. Delhi has a population of

over 10 million. Area covered is 15,000 sq. km. Delhi’s organized ice cream market consists of

Quality Walls, Mother Dairy, CreamKa, Vadilal, Baskin Robbins, Fairy Dairy, Frolic, Dairy Fun,

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Freak on, Blue Bunny and Quality Walls International.

Among them Mother Dairy and Quality Walls are the major players.

Delhi’s Summer Months of May and June being the hottest months temperatures can be as high as

46° C (114° F). The Winter Months October-end to February-end is cold and dry. Temperatures as

low as 4°C (39° F). With these fluctuating temperatures the main demand is in the month of May

June. Retailers and distributors clearly stated that the demand in the off-season could go down to

25% of the peak season.

This forms a very critical point for any newcomer retailer. It has to enter just before the peak season

so to tap the season crowd and demand and to keep reasonable resource to sail through off-season.

For example many companies give off-season discounts to customer and also give special offers to

retailers to encourage them to stock their product. So the new company also has to give these kinds

of incentives to encourage the distributors.

SEGMENTATION

Ice creams are differentiated mainly by flavors. Vanilla is the most popular flavor, followed by

chocolate, strawberry and butterscotch. Certain traditional flavors like Kesar-Pista, Kaju-Draksh, etc

are also very popular. There are several other flavors available, such as fresh seasonal fruit flavors,

combinations of 2-3 flavors, etc

The market can also be segmented on the basis of consumers as follows:

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RETAILERS: -

They account for major part of the total sales of ice cream. They not only provide efficient sales

channel but also a place for efficient safe storage. Sales for the company takes place the moment the

retailers take possession of the goods i.e. ice cream. Companies generally do not provide any

replacement policy so this increases the cash circulation and also makes the calculation of overall

sales easy.

PUSHCARTS: -

Pushcarts form a very important part of Delhi’s ice cream market. They form a cheap and far-

reaching way of distribution. Pushcarts can be found in every corner of the city. Generally

consumers prefer to have ice cream at night but the retail shops are either closed or busy in providing

other daily commodities. In this case pushcarts form a very convenient way of relief. They not only

stay late at night but also cater to this particular demand. In some areas they are open whole night,

like at AIIMS crossing the pushcarts stay open overnight and attract a lot of consumers. Another

important advantage is that they can be positioned at areas where either retailer are not there or

retailers do not have ice cream. For example, at India Gate the ice cream sales are through pushcarts

only as retailers are not there.

Another important advantage of these pushcarts is that they are seasonal in nature. They can be

increased when the season arrives and reduced very conveniently when the season is over.

INSTITUTIONAL / CATERING ACCOUNTS FOR THE BALANCE:-

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The industry consumes a big portion of ice cream

production. Especially places like Delhi where many companies and factories are located.

Though this has been targeted still this can be exploited more. For example in many big companies

or factories where mess are set up for the workers lunch and dinner. In these meals ice creams are

served. If an ice cream company gets the contract, then its sale will surely rise.

 

As the retail accounted for the largest share we concentrated on the sales through retail only. In

Delhi another major segment has come up and that is through pushcart, which is increasingly

becoming popular for its lower cost and greater flexibility.

 

The most popular are the cup of 100-150 ml sold in the Rs8-15 price range and the cones, which

range between Rs8-17. These are the ice creams generally bought for immediate consumption. They

are available everywhere from big super markets to the local pushcarts.

Bars, sticks and cones represent another ready-to-eat market and are priced at Rs4-20. This is very

popular with the kids and forms a major portion of the ice cream sales.

Gallon. These are used for parties and restaurants. Though outside attractiveness is not very

important but the size of the pack and handling comfort is important.

DISTRIBUTION

The ice-cream distribution chain typically consists of a distributor/ stockiest and the retailer. Most

players have regional operations with production facilities located near the market as adequate cold

chain

Facilities for transportation over long distances are not available. Distribution of national brands is

done through owned or leased cold storage facilities located in the major consumption centers from

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which supplies are sent to distributors or directly to

retailers.

The retail network for ice cream consists of Exclusive ice cream parlors, which may be company

owned or Franchise outlets Other retail outlets like provision stores, hotels and restaurants; and Push

carts, which are controlled through dealers. Retail margins are high, at around 15-21%.

CONSUMER AWARENESS AND PENETRATION

Low income, high prices (Ice cream is three times costlier in India than in US), non availability of

good quality products, poor distribution infrastructure and low investment in marketing have all

resulted in one of the lowest per capita consumption of ice cream in India at 100ml (equivalent to

one scoop). Per capita consumption of ice cream is higher even in Srilanka (300ml), Pakistan

(400ml) and much higher in other South-East Asian countries.

The market for organized sector is restricted to large metropolitan cities. In small towns and villages,

there are thousands of small players who produce ice-creams/ kulfis in their home backyard and

cater to the local market.

Delhi being a metropolitan has higher ice cream consumption. The major players are Amul, Quality

Walls ,Vadilal and Mother Dairy.

The awareness of Amul Ice cream is good enough. But there is even now enough work to be done by

the company. many retailers even now asked that does the Amul manufacture the ice cream? . So the

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first strategy of Amul Ice cream should be to create brand

awareness through advertising. Amul as a brand has its goodwill but its ice cream is not popular.

When we inquired about Amul we got response from the retailer about the Amul butter.

MAJOR PLAYERS

The Indian Ice cream market is dominated by a large number of small local manufacturers and

regional players.

In the organized segment, the significant brands are Quality Walls, Vadilal, Amul and Mother Dairy

.

MAJOR NATIONAL PLAYERS BRANDS

Hindustan Lever Kwality Walls, Dairy Classic, Max

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Vadilal International Vadilal,

Dairy Fresh

GCMMF/Other Milk Co-operatives Amul, Mother Dairy

Maharashtra Dairy Products Baskin Robbins

OTHER PLAYERS

Besides the main national brands there are other premium brands, which have carved a niche for

themselves in their respective regional markets. These players have mostly concentrated on the large

metro cities. These players sell through their exclusive parlors. The major national players sell

through franchise parlors as well as through retail stores, groceries, restaurants, hotels, roadside

stalls on highways, etc.

Ice Cream so that at the beginning of the year the selling of the Amul Ice-Cream was not as

expected. But from the beginning of the year 2005 it is well known product in the AMUL ICE-

CREAM was launched in Delhi and NCR 2004.That year was the birth of the Amul market and

giving a tuff competition to the old brand VADILAL ICE-CREAM manufacturer.

Address:

Gujarat Cooperative Milk Marketing Federation Ltd., Amul Dairy Road

Anand, Gujarat, India 388001, Tel: +91-2692-241621 & 23

Web: www.amul.co

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SALES TURNOVER FROM (1994 TO

2004)

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02

233

65

500

2002-03 27457 575

2003-04 28941 616

The above Data Shows that the sales increasing since 1995 at great pace & this is reason that proves

Amul as good Competitor in this modern world.

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AWARDS:

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Ramakrishna Bajaj National Quality Award-2003

The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer in the

service category of the prestigious

IMC Ramakrishna

Bajaj National Quality Award -

2003. The Certificate of

Merit was presented at a

glittering ceremony held at

Mumbai on March 11 by the

Governor of the Reserve Bank of India, Dr. Y. V. Reddy.

According to Shri B. M. Vyas, Managing Director, GCMMF, this recognition has once again

reiterated GCMMF's commitment to quality and excellence. The biggest strength of GCMMF is the

trust it has created in the minds of consumers regarding the quality of its products. GCMMF and its

brand Amul stand for guaranteed purity for whatever products it produces, he added.

GCMMF has bagged this award for adopting noteworthy quality management practices for

logistics and procurement. Over the years, it has established an efficient supply chain that

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penetrates even the remotest corners of the country.

The information systems of the

Federation are comprehensive and include details on product quality, delivery performance,

supplier quality, disaster recovery and all essential commercial areas, the citation reads.

The Ramakrishna Bajaj National Quality Award is based on framework and principles almost

similar to the Malcolm Baldrige Award that is given by the President of the United States to

businesses - manufacturing and service, small and large - and to education and healthcare

organizations that apply and are judged to be outstanding in seven areas: leadership, strategic

planning, customer and market focus, information and analysis, human resource focus, process

management, and business results.

Mr. B.M.Vyas receives the Qimpro Gold Standard Award

Qimpro Platinum Standard, the highest individual honor, has in recent years been awarded to

Chandra Mohan, Aditya Birla, Deepak Parekh, F C Kohli, Dr J J Irani, Azim Premji, and Kumar

Mangalam Birla. The ASQ and the Institute of Quality Assurance, UK recognizes

Quality Standards

Amul Ice-cream strictly conforms to quality standards of Prevention of Foods & Adulteration Act

(PFA). This means when one buys Amul Ice-cream he/she is sure to get:

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Nature’s perfect food for the health of your

family.

Milk, which has longer because of its superior bacteriological quality and the state of the art

processing technology.

The right quantity as mentioned on the packs

Consistent quality and ample quantity throughout the year even during festive and lean

session.

The accurate taste, which is mentioned on the bottle or pack.

And he or she does not fear of cheating in price because it is the brand on which you can

confident for best quality at the lower price

‘Nature’s finest REAL MILK is here’

GCMMF launched Amul Ice-cream in Delhi and NCR in 2007 to cater the demand of consumers

and to fill in the gap between demand and supply. It reaches consumers within hours of it being

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packed at the right temperature to ensure that it retains all

its natural goodness.

Treasure of Natural Goodness

Amul Ice-cream is highly nutritious and contains proteins, minerals, carbohydrates and vitamins i.e.

SNF as it is commonly called. Amul Ice-cream also contains natural fat less and natural SNF as it is

from natural source and contain real milk.

PRODUCT AND SERVICES OFFERED BY AMUL

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List of Products Marketed:

Bread spreads:

Amul Butter

Amul Lite Low Fat Bread spread

Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozzarella) Cheese

Amul Shredded Pizza Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese) Frozen and Tinned

Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

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Amul Shrikhand (Mango, Saffron, Almond

Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

UHT Milk Range:

Amul Taaza 3% fat Milk

Amul Gold 4.5% fat Milk

Amul Slim-n-Trim 0% fat milk

Amul Chocolate Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Amul Taaza Double Toned Milk

Pure Ghee:

Amul Pure Ghee

Sagar Pure Ghee

Amul Cow Ghee

Infant Milk Range:

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Amul Infant Milk Formula 1 (0-6 months)

Amul Infant Milk Formula 2 ( 6 months above)

Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Sweetened Condensed Milk :

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat

Amul Gold Full Cream Milk 6% fat

Amul Shakti Standardized Milk 3% fat

Amul Smart Double Toned Milk 1.5% fat

Curd Products:

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Amul Masti Dahi (fresh curd)

Amul Butter Milk

Amul Lassee

Amul Ice creams:

Royal Treat Range

Rajbhog,

Cappuchino,

Chocochips,

Butterscotch,

Tutti Frutti,

Nut-o-Mania Range

Kaju Drakshi,

Kesar Pista,

Roasted Almond,

Kesar Carnival,

Badshahi Badam Kulfi,

Shista Pista Kulfi,

Utsav Range

Anjir,

Roasted Almond,

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Simply Delicious Range

Vanilla

Choco

Strawberry

Pineapple

Rose

Chocolate

Nature's Treat

Alphanso Mango

Fresh Litchi

Anjir

Fresh Strawberry

Black Currant

Sundae Range

Mango

Black Currant

Chocolate

Strawberry

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Millennium Ice-cream

Cheese with Almonds

Dates with Honey

Strawberry

Milk Bars

Chocobar

Mango Doll

Raspberry Dolly

Shahi Badam Kulfi

Shahi Pista Kulfi

Mawa Malai Kulfi

Green Pista Kulfi

Cool Candies

Orange, Mango

Cassata

Tricone Cones

Butterscotch

Chocolate

Megabite Almond Cone

Frostik

3 layer chocolate Bar

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Fundoo Range

exclusively for kids

SlimScoop Fat Free Frozen Dessert

Vanilla

Banana

Mango

Pineapple

Health : Isabcool

Chocolate & Confectionery:

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Amul Eclairs

Brown Beverage:

Nutramul Malted Milk Food

Ready to Serve Soups:

Masti Tomato Soup

Masti Hot & Sour Soup

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ICE CREAM

Amul ice cream is made from milk and milk products, sugar stabilizers& emulsifiers.

COMPOSITION:

Milk fat 13.5% to 14.5%

Total solids 40% to 41%

Surer 15% Approx

Acidity 0.17% to 0.19%

Protein 3.9% to 4.1%

Food Energy value :

Calories per 100 ml -196.7 kcal

Packaging :

50 ml cup,100 ml cup, 500ml cup,1 litre pack, 4 litre pack,

chocobar, ice candies, cones and kulfiers.

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Special features

Various verities of ice cream can be made from the basic mix by addition

Of required amount of permissible colors and flavours nuts would be used for making premium

verities of ice cream.

Product specification

Product meets BIS specification.

GCMMF – BUSINESS PHILOSOPHY

To serve the interests of milk producers.

To provide quality products to consumers – value for money.

INDUSTRY STANDING

India’s largest food products marketing organization with an annual turnover of over Rs.

2700 crores.

Market’s popular brands Amul and Sagar.

India’s largest exporter of dairy products.

India’s largest “cold chain” network.

No.1 market share holder in India for Butter, Cheese, Ice-cream, Dairy Whitener, Condensed

Milk, UHT Milk, and Baby Food.

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Presently marketing pouch liquid milk in five

states namely, Gujrat, Maharashtra, Chattisgarh, Rajasthan, Delhi and Madhya Pradesh

OUR VALUES

Customer Orientation.

Commitment to Producers.

Belongingness.

Co-operation.

Pride in Organization.

Employee Satisfaction.

Integrity.

Excellence.

Leadership.

Quality.

Innovation.

Growth Orientation – New Products.

MISSION STATEMENT

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We, at GCMMF, endeavor to satisfy the taste and

nutritional requirements of the world, through excellence in marketing through our committed team.

Trough co-operative network, we are committed to offering quality products that provide best value

for money.

GCMMF – JOURNEY 2005

GCMMF will be an outstanding marketing organization with specialization in marketing of food and

dairy products, both fresh and long life, with customer focus and information technology integration.

The network would consist of

over 100 sales offices, 7500 stockiest covering at least every talk headquarter town, servicing nearly

n1 million retail outlets with a sales turnover of Rs.10,000 crores (100 Billion), and serving several

cooperatives.

GCMMF shall also create markets for its products in the neighboring countries.

CHAIRMAN SPEECH

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Chairman's Speech: 30th Annual General Body

Meeting on 8th June 2004

Adopted at their meeting held on 8th June, 2004 for presentation at the 30th Annual General

Body Meeting

Gentlemen,

I am happy to welcome all of you to this 30th Annual General Body Meeting of your

Federation. Thirty years ago the milk producers of Gujarat had come together and decided to

create their own organization to enhance the marketing capacity of the dairy cooperative

movement. Looking back I think we can agree that they showed remarkable foresight in

creating their own marketing organization. That is in no small part because this organization

has delivered results - continuously beating competition of every type in the dairy business.

This has been achieved at the least possible cost, ensuring the benefits reach both producers

and consumers.

As you all know, Amul was founded on a sound business model: providing quality products to

consumers at an affordable price. The Pundits have described our model as "value for money"

35

and it has been adopted by a number of companies.

While imitation may be flattery, most other organizations fail to understand that "value for

money" is not just about low prices - it means offering the best quality products at the most

reasonable price. As a cooperative, our faith requires that we safeguard the interest of both our

major stakeholders - the farmers - and the consumers whose loyalty is essential to our

continued success.

As I look forward, I foresee business opportunities expanding as never before. The Indian

economy is growing at a very rapid pace. Disposable

Income in the hands of consumers has more than kept pace. The result is that our domestic

market has been expanding at a pace that occasionally surprises even the optimist. We now

need to challenge our distribution to reach remote markets with innovative products and

services so that more and more consumers benefit from our wide and expanding range. Your

Federation is taking steps both to deepen our market penetration as well as to accelerate its

growth.

An expanding market inevitably attracts increasing competition. Today, every product

category sees new entrants in our business. Competition may be from existing companies

entering new categories or from new companies. Our experience and marketing prowess has

enabled us to maintain a formidable distance between our competitors and us. However, there

is no room for complacency. We must not only maintain our lead, we must increase it.

In our business, the technological and financial barriers for new entrants are not high. We must

therefore leverage our experience as well as our procurement, processing, distribution and

36

branding advantages to establish high entry barriers,

continually raising these by innovation in every area.

On the external front, neither the US nor the EU had shown any willingness to consider

reducing their high subsidies on dairy exports. It is a matter of some satisfaction that the

Indian government has stood by its farmers by withstanding international pressure to lower

tariffs on dairy products. We are grateful for this support. We are also confident that the

government will continue to safeguard the interests of the Indian farmer by continuing to resist

international pressure and domestic lobbying from vested interests to lower our bulwarks

against unfair trade in agricultural and dairy products. Recently, the EU has introduced some

reductions in its dairy sector subsidies - especially on butter oil, Skimmed Milk Powder and

white butter. This marginally reduces the fear of European players competing for our domestic

market from a position of price advantage. It also opens for us the opportunity to compete with

European producers on a level playing field in neighboring markets. With increased peace,

cooperation and understanding among the SAARC nations, our regional market is expected to

grow manifold across categories. But for us to gain a meaningful share in the emerging

markets, our unions and marketing teams must meet the challenge of performing at levels that

are the prerequisite for success.

You will be pleased to know that your Federation has grown substantially in both volume and

value terms in the last year. That we have grown by

Over Rs.430 crores in the dairy line highlights your Federation's versatility and robustness.

The icing on the cake has been a more than 15 percent Increase in our farmers' returns.

37

I now am pleased to present to you your Federation's

Annual Report and Audited Accounts for the year 2003-2004.

MILK PROCUREMENT

Total milk procurement by our Member Unions averaged 51.13 lakh kilograms per day, a

marginal decline from 52.35 lakh kilograms per day, achieved in 2002-2003. However, the

good monsoons experienced during last year and the better procurement prices on offer are

expected to encourage higher milk production and procurement in the current year.

SALES

During the year, your Federation's sales registered a growth of 5 percent increase to reach Rs.

2,881.96 crores including consignment sales of Rs.62.95 crores. The dairy line grew by about

18% despite the loss of a sizable edible oil business. This year, the sale of Amul Milk in

pouches increased by 34 percent in value terms. A notable development in the area of liquid

milk in pouches has been the successful launch of Amul Milk in the Delhi market during

November 2003. Within under 60 days of launch, we had achieved sales of 1 lakh liters per

day. UHT Milk has grown in both value and volume terms by 60 percent, which shows that it

has really come upon the high growth stage. Amul ice cream achieved a sales value growth of

11 percent, and has come out as the undisputed market leader. Amul and Sagar brand pure

ghee sales in value increased by 17 per cent over the previous year. Despite intense

competition, sales value of Amul Butter grew by 19 percent and that of milk powders has

firmed up further. The sales of the Amul Cheese range increased by 13 percent. Products like

38

Flavored Milk, Amul Fresh Cream, Paneer, Mithaimate,

Softy Mix, and fresh curd demonstrated their potential to become dominant brands in the

coming few years.

DISTRIBUTION

During the year, the major development on the distribution front was the development and

alignment of four distribution highways-those of Fresh Products, Chilled Products, Frozen

Products and Ambient Products. This is a significant achievement because it allows us to

develop synergies among all our product lines and to leverage these highways to introduce and

distribute new products as per market demand. I take pleasure in declaring that no other

organization in India has been able to develop this kind of channel synergy so far.

Another major initiative undertaken during the year was the Time-based Military Technique

(TMT) of distribution. This has been deployed to effect a nationally synchronized mass

distribution of our products with the objective of achieving total channel penetration on a

single day. I am pleased to declare that this initiative has proved to be very successful. Most of

our products launched or re-launched through this technique have seen significant gains in

distribution and availability.

After Distributor Salesmen in the previous year and Distributors in the year before last, it was

the turn of the top Retailers across the country to participate in the Amul Yatra Programmed.

As you are aware, the Amul Yatra Programmed is a unique experiment conducted by your

Federation to bring our channel partners face to face with our cooperative institutions,

activities, culture and achievements through a guided tour in and around Anand. A total of 114

Distributor Salesmen and 482 top retailers from across the country participated in the Amul

39

Yatra this year. With the opening of several new milk

markets and 3 separate Milk Sales Offices at Mumbai, New Delhi and Boisar, the number of

Milk Area Delivery Agents has increased. 95 Milk Area Distribution Agents also visited

Anand for Amul Yatra. Distributors have further enhanced their infrastructures in terms of

installation of cold storage arrangements, enhanced bank guarantee limits with Federation and

introduced good quality delivery vehicles. An objective evaluation was done in the form of

distributor renewal and Performance appraisal.

For understanding the level of adherence to infrastructural and procedural norms laid out by

Federation and compliance to the same by our Distributors, a pilot initiative of Distribution

Audit was undertaken for 70 Wholesale Distributors. With one of the strongest cold chain

distribution network in the country today, Federation today owns 13 state-of-the-art cold

rooms at various depot locations.

EXPORTS

I know that you will be pleased to learn that we have posted more than 50% growth in the

volume of consumer pack exports. This reflects strong and growing consumer faith in your

Amul brand. As you are aware, during the year Northern India had faced a severe milk crisis.

At the request of our government, we diverted milk powder stocks to Delhi thereby depriving

our export market. As a result, Federation's overall export turnover has dropped by 40 percent.

I am sure you will agree, however, that our first duty is to the Indian consumer.

I am pleased to inform you that our Long Life milk has been very well accepted in the UAE

and Singapore markets. We have launched UHT milk in Hong Kong and Sri Lanka market.

We have also made a successful beginning in export of ghee to Australia.

40

INFORMATION TECHNOLOGY INTEGRATION

You will be glad to know that your Federation has further advanced our technological

leadership by implementing a Virtual Private Network (VPN) with secured fiber optic

connectivity which, with deployment of the "Amul Online ERP" System, will facilitate

electronic transactions between member unions and the Federation offices, providing a

seamless and smooth flow of information that enhances operational efficiency. The Federation

now enjoys a significant advantage in rapid reaction to changing business demands.

Your Federation is bolstering our brand identity as a farmers' co-operative through the Internet

based "amul.coop" URL and e-mail addresses. This will continually remind the world's

consumers that we are a cooperative, and proud of it. This identity gives us a vital business

advantage and facilitates Amul brand penetration across the world. It also strengthens our co-

operatives by bringing our members together and closer to consumers.

Your Federation's achievements have been honored at the International CIO 100 Symposium

and Award ceremony in Colorado Springs, USA where we received the CIO 100 award for its

excellence in positive business performance through resourceful IT management and best

practices.

COOPERATIVE DEVELOPMENT PROGRAMME

41

During the last four years, our Member Unions have implemented an Internal Consultant

Development (ICD) intervention focused on developing leadership among member producers,

helping them to better manage their dairy business.

During the year, Member Unions continued to implement the module on Vision Mission

Strategy (VMS) for primary milk producer members and Village Dairy Cooperatives.

Facilitated by specially trained consultants, 1,073 Village Dairy Cooperative Societies

(VDCS) have conducted Vision Mission Strategy Workshops, and have prepared Mission

Statements and Business Plans for the next five years. The VMS module has prompted milk

producers to initiate activities at villages that have far-reaching effects on the milk business.

The success of the program has led to Member Unions focusing on implementing this VMS

module and developing Business Plans for all VDCS, thus strengthening them to face the

fierce competition ahead.

Continuing the Cleanliness Drive at village level, Member Unions have trained 8,455 core

groups of milk producers and VDCS management. On October 2nd, 2,970 VDCS celebrated

Red Tag Day, an effort to raise Cleanliness awareness. The Unions also presented awards to

the VDCS that raised cleanliness standards to the highest levels.

As a part of the Breeding Services Improvement Programmed, Member Unions have

continued implementation of the second module of Improvement in Artificial Insemination

42

Services. In the villages, 3,374 core groups have been

trained and a decision has been taken to extend the program to include all the VDCS that offer

breeding services. A mass de-worming campaign has been undertaken to fortify the breeding

services. During the year, Member Unions implemented an Artificial Insemination Audit

Competition that identified the best performing VDCS and Artificial Insemination Workers

who received awards as a motivation for continued improvement.

With the objective of encouraging professional management by Milk Producers and dairy

cooperative societies, Member Unions have initiated

Members' Business Development Programmed(MBDP). During the last three years, 2,483

villages and 1,53,108 milk producers participated in the programmed. This has resulted in

introduction of new scientific animal husbandry management methods on a significant scale.

A Chairmen and Secretaries' Orientation Programmed is being conducted at Mother Dairy,

Gandhinagar. Member Unions, supported by your Federation, carry out this program to

increase awareness regarding the dairy industry scenario and to develop leadership skills

among Chairmen and Secretaries. During the year, 5,797 chairmen and secretaries from 2,944

Village Dairy Cooperative Societies participated in the program.

An ongoing emphasis of our Member Unions has been to encourage increased women milk

producers' participation in their Dairy Cooperative Societies. To develop and enhance

leadership skills and qualities, Member Unions organized three Self Managing Leadership

(SML) workshops at Prajapita Brahmakumaris, Mount Abu which attracted the participation

of 3,100 women resource persons along with the Chairmen and Secretaries of 750 VDCS.

43

WHAT THE FUTURE HOLDS

As you are all aware, there is a steady increase in consumer expectations. Product and service

quality is rapidly becoming the minimum threshold for consumer acceptance. To achieve and

maintain competitive advantage, innovation in product design and delivery are increasingly

essential. Innovation must now define us as an organization. We must innovate at each stage in

our value chain - production, procurement, processing, marketing and branding.

Innovation cannot be mandated or forced out of people. It is everywhere a function of the

quality of people and environment. We need to have enough skilled people working in a self-

actuating environment to produce innovation. In these times of increasing market

opportunities, we need to devise more effective ways of attracting and retaining skilled human

resources. It is to be realized that just as the market is expanding for our products, so it is

opening up new opportunities for the skilled people that we need to tap the market. Further, it

does not suffice merely to retain skilled human resources. It is also necessary to provide them

an adequately

self-motivating work environment that draws out the best out of them on a sustained basis.

Therefore, our competitiveness must also encompass effective human resource management.

To this end, we have to find new strategies.

In the past, our illustrious leaders like the late Shri Tribhuvandas Patel, Bhurabhai Patel,

Jaswantlal Shah - to name only a few - understood the importance of professionalism in the

management of cooperatives. They always encouraged attitudes and activities geared towards

a results orientation. Today's leaders have a duty and an obligation to carry forward that

tradition of identifying and nurturing professionalism.

You would recall that last year I had shared my feelings and reservations on NDDB's initiative

of making joint ventures-and that too with majority holding of the Government. I am happy to

inform you that most of the State Federations of India have declined to accept such

partnerships where the Government is in majority. Even where it was accepted, the

cooperatives are now changing their minds and reverting to the pure cooperative movement. I

44

am saying this not because I am happy per say about the

failure of the joint ventures, but because the leaders of cooperatives have understood that they

have a great responsibility towards farmers, consumers & the nation. And in honoring this

responsibility they have to work hard with commitment and sincerity. They should ensure the

highest level of professionalism at the cooperative level. They should give the professionals

full freedom to perform instead of interfering in operational matters-thereby limiting the

growth of the organization. I hope that you would appreciate my viewpoint and see to it that

our leaders rise to this level of performance.

From the year 1994, our unions have been engaged in the practice of third party validation of

its practices. Since then, we have been awarded the ISO 9002:2000, the HACCP, the ISO

14001 and similar marks of our excellence in milk procurement and processing. We have also

been given a certificate of merit from IMC Ramakrishna Bajaj National Quality Award during

last year. I would stress that we sought such certification not because the Federation needed

endorsement from outside agencies regarding its best practices. Rather, achieving them serves

the very important purpose of encouraging the standardization of our production and

marketing related processes and the infusion of a self-sustaining momentum into these

processes.

I find that such certifications are also very necessary in our village dairy cooperative societies'

election processes. The importance of standardization

of our village society election processes lies in their instrumentality in throwing up genuine

and visionary leaders. It determines the future of the cooperative movement. Standardization

and transparency in our village society elections can come only through the continuous and

impersonal adherence to a well-documented process that an ISO 9001 recognizes.

The year 1994 was an important watershed for your Federation. It marked our bold foray into

the brave new world of portfolio diversification and new product development. It was at this

time when we took our first steps outside the security of our traditional products: powders,

butter among others. Since then, we have emerged as the food organization with what may

well represent the most diversified product portfolio - ranging from ice cream and dahi to

45

Long Life and Flavored milk. We have learnt to be on

the constant lookout for changing market requirements and to adapt to these changes

proactively.

Today, there is no doubt that we are a part of the world market. As everywhere else, the

market trend in India is towards the growing importance of fresh products. The coming years

will see increasing volumes being generated from fresh milk, Long Life Milk, curds and the

like. Because our milk procurement and processing capacity is unparalleled in the country and

the region and because we have a brand equity that is unsurpassed in the food business sector,

your Federation is in a position to leverage these assets to effectively command the market

leader's position in the emerging fresh dairy products market. However, here too we cannot be

complacent. We must constantly create and update our competencies in these products so as

lead, set and exceed market expectations.

Your Federation has now developed competence in distributing fresh products on daily basis.

This is equally true of long life products held at ambient temperature, products requiring deep-

freezing during storage or transportation, and products that require zero degree temperature.

This established competence is, and will continue to be, an essential element in building

synergies among product lines - ultimately creating superior economies of scale.

Based on the work done in the last decade, the changes that we have built in the Organization

at all levels, and with the new portfolio of products we have developed, I feel confident of

maintaining our market share growth. I also feel confident that your Federation will be able to

increase its sales further by close to another Rs.500 crores in the current year.

46

Your Federation has always tried to be a step ahead of the market. It has always been a model to

which other cooperatives have looked up as an example and inspiration as well as one from which

many have benefited. Those who had scoffed at the idea of cooperation as a business model are

today trying to emulate it. Thankfully, we need not be remembered for any of the wrong reasons. Amul

has always been and remains a movement that stands for the farmer. We have always espoused the

values of social justice, integrity and growth with equity. If Amul deserves to be remembered for

anything, first and foremost it is for the difference we have made and are making in the lives of

millions of farmers. Against COMPETITOR’S ANALYSIS

47

Quality

At Vadilal, commit ment to Quality is an Attitude. Vadilal Ice Creams contains only the best ingredients, be it cashew nuts, almonds, pistachio chocolate or fresh fruits. Great pains are taken to find the finest ingredients from around the globe. S tate- of-the art- technology ensures that each scoop is dense, rich and filling, w ith no extra air or ice- flakes. Special care is taken during packaging, storing, transit and delivery so that consistency in quality is maintained. This is why when the end pro duct reaches the customer, he is convinced that quality shines through in everything the group does.

DELICIOUS GROWTH

The ice cream market is set to sizzle this summer .At least 10 ice cream make rearmed with over

125 flavours will try to freeze the attention of the Indian consumer. The some what surprise winner

of the cold war Amul is ready to launch over 20 new varieties this summer. Hindustan lever ltd’s

(HLL) . Quality walls has already unveiled 10 new flavours

The company that has scooped a coup is Amul .In a market invaded by big companies and brands

(HLL, BASKIN ROBBINS, MOVENPIC) and swarming with regional and local players. Amul has

emerged as the largest selling brand in the organized sector.

Amul success is reflective of the fundamental changes taking place in

the ice cream market. Till the small manufacturers dominated 2000 Rs. 1,000 Cr industry, with

organized players accounted for just 25% of total. Today the market has grown to over 1,500 crore

to which organized player contribute 40%.

But beneath this consolidation the big plan of deep pocketed MNC’s like HLL,

and Baskin Robbins sent to have melted as Co-operative like AMUL,MOTHER DIARY have

tightened their hold on the market. The going has been particularly rough for HLL. Forced on the

bacfoot by low price of co-operative cousins. The co. has skimmed his ambition two years ago and

decided to be content with being a niche player focusing or only the six metroes .A large number of

business was not commercially viable so we decided to cut down our portfolio and focus on

profitability.

48

Just as HLL was shrinking its presence to consolidate. AMUL was charting out a

national footprint. Today its ice-cream are available at 25,000 outlet in 1,000 cities across India and

the Co-operative has plans to add 5,000 more cities. Luckily many of its competitors were happy

focusing on regional markets like Arun in the south. Mother dairy in the north and metro in the east

“By 2010 we will have a Rs.1000 crore ice cream business says B.M Vyas managing director

Gujarat cooperative milk marketing federation .Which markets the Amul brand .in 2003,its ice

cream sales were Rs160 crore, almost three times the Rs 55 crore sales in 1998.

Amul’s impressive growth is rooted in its savvy marketing The price warrior launched its ice cream

in 1998 at price 40-70 per cent lower and pried open a market that was till then considered elite .The

wide options over 70 flavours packaged in various size added punch to its low price strategy. The

price sensitive Indian consumer has lapped it all up. Amul ice candies and lollies. Price at Rs. 3

upwards have managed to lure new customers from the unorganized sector .This has been buttressed

by innovative products attractive packaging and unique flavours.

One of the reasons why Amul can afford to be a price warrior is because it is a dairy cooperative.

With no middle men at any stage its costs are 8-10percent lower than that of an MNC It is now

taking the battle into the MNC camp by launching premium range of ice cream clearly the cold war

in the ice cream market is heating up.

49

Success Recipe

CANDY FOR THE MASSES:

Affordability is the USP.

Quality Walls 1 liter vanilla coast Rs.75

Amul ‘s just Rs.40

COOL PACKAGING : santra

Mantra in orange shaped container vanilla in plastic ball

Attract extra buyers.

MAXIMUM FLAVOURS

Date with Honey Alpha so cappuccino, anjir and other

Exotic flavours.

AGGRESSIVE LAUNCHES:

over 20 varieties will be added to

the existing 70 this summer

50

GOOD REACH :

Available in 1000 cities ;

Kwality Walls in six.

27% of organized Market Share is with Amul.

DIFFERENCE BETWEEN ICECREAM AND FROZEN DESSERT

ICECREAM:

Icecream are made from real fresh milk

Icecream are rich in protein ,calcium,dairy cream and vitamins.

Icecream are complete food,easy to digest and full of energy.

51

Frozen Dessert

Frozen dessert are generally made from vegetable oils/fats

The base of frozen dessert can be any sort of vegetable oils which is quite cheap.

In frozen dessert milkj fat is replaced with vegetable oil hence they are unable to give the

smooth taste and flavour which only icvecream made from fresh milk can give.

all odds, we have managed to replace a million furrows of hopelessness with at least a faint

line of the smile of hope. That line makes a difference. That puts the real shine on the face of

India.

52

PART-2

EXCECUTIVE SUMMARY

53

TOPIC: To critical study on secondary

sales of Amul icecream.

OBJECTIVE:

1. To study and analysis of increase penetration of AMUL ICECREAM

2. To know the customer choice

3. To analyse the amul dominance over other company

I did my project on marketing research. My project objective was “To know about the market

potential & acceptability of Critical Study on Secondary Sale of Amul Ice-cream & also to find

out the awareness level of this product using various parameters.”

SAMPLING PLAN;

There is systematic sampling plan as such as the study involved in understanding the

various processes and analyzing them. The study involved in the detailed

analysis of primary data calculated from questionnaire and with the use of secondary

data

SAMPLE SIZE: The sample size is 70 outlets,

RESEARCH DESIGN;

This project is based on two researches-

54

Descriptive research design

Exploratory research design

SOURCES OF DATA;

PRIMARY DATA:

Primary data is collected by the use of self efforts and by the use of prepared questionnaire.

Data has been collected through literature survey and expert opinion. The

part of data is collected from various primary sources and secondary

Sources.

SECONDARY DATA;

E-paper

Internet

Induction guide

MARKET RESEARCH

55

RETAIL OUTLET AREA PROBLEM FACED

MULKESH

GENERAL STORE

DISTRICT

CENTRE,RAJNAGAR

NO ANY SALES MAN VISITED HERE FOR

SELLING AMUL ICE CREAM

OM SWEETS AND

ARUN CHAT

BHANDAR SEC.-10 RAJNAGAR IT IS NOT MORE DEMANDABLE ITEM

CHERIAN ICE

CREAM

HINT HOUSE SEC.-10,

RAJNAGAR LACK OF TAKING ORDER AND SUPPLY IN TIME

0120-3963969

DEV SUPER

GENERAL STORE

C-6,HINT HOUSE,SEC.-

10,RAJNAGAR

DEMAND IS POSSIBLE IF VISIT BY THE

SALESMAN WITH SAMPLE

MINI SUPER BAZAR SEC.-10 RAJNAGAR THE PRODUCT IS SELLABLE IN THE MARKET

0120-2965157

ASHISH STORE SEC.10, RAJNAGAR

NO ANY SALES MAN HAS VISITED WITH

SAMPLE

ANAND SUPER

STORE SEC.-10, RAJNAGAR

NO ANY SALES MAN HAS VISITED WITH

SAMPLE

NATIONAL STORE SEC.-10 RAJNAGAR NOT AWARENESS ABOUT THE PRODUCT

GADHWAL

PANEER BHANDAR SEC.-10 ,RAJNAGAR SPACE PROBLEM

56

VISHAL PROVISION

STORE SEC-10, RAJNAGAR

NO ANY SALESMAN HAS VISITED WITH

SAMPLE

MUSKAN STORE SEC.-10,RAJNAGAR

BEFORE HE WAS SELLING AMUL ICE CREAM

BUT DUE TO UNFAVOURABLE

0120-3093595

(SANJEEV)

BEHAVOUR OF JMD HE HAS REFUSED TO SALE

AMUL ICECREAM

RAMESHWARS SEC.-10, RAJNAGAR

HE ALWAYS USED TO SALE SELF MADE MILK

SHAKE

MOHAN

PROVISION STORE SEC.-23 RAJNAGAR LACK OF DEMAND BY THE CONSUMERS

SETU PROVISION

STORE SEC.-23 RAJNAGAR STORAGE PROBLEM

ANU PROVISION

STORE SEC.-23 RAJNAGAR

HE WILL SALE IF THE SALES MAN VISITS WITH

SAMPLE

SONU

CONFECTIONERS &

PROV.STORE SEC.-23 RAJNAGAR LACK OF DEMAND BY THE CONSUMERS

ZAIKA ICE CREAM SEC.23, RAJNAGAR HE WILL TRY TO SALE THE PRODUCT

UNCLE PESTRY

SHOP

SEC.-23,SANJAY

NAGAR RAJNAGAR

THE CO. MUST BE IMPROVE ITS

PROMOTIONAL SCHEMES

MUSKAN

PROVISION STORE

SEC.-23 ,SANJAY

NAGAR, RAJNAGAR MONEY PROBLEM

57

SAPNA

CONFECTIONERY

J-47,SANJAY

NAGAR,RAJNAGAR SPACE PROBLEM

BABA BANWARI

DASS

RESTAURANT

AMBEDKAR

ROAD,GZB HE HAS KEPT COMPETITITOR BRAND

BATHLA

ENTERPRISES AMBEDKAR ROAD SPACE PROBLEM

SHAGUN SWEETS AMBEDKAR ROAD MONEY PROBLEM

RATHORE SWEET

CORNER

DASNA

ROAD,JATWADA DEMAND FREE ICECREAM WITH DEEP FREEZER

PASHUK ATTA

CHAKKI AND

KIRANA STORE RAKESH MARG KEPT COMPETITITOR BRAND

DEV ARCADE RAKESH MARG

ALREADY HAS GOT FREEZE BUT NOT STORE

AMUL ICECREAM

MADAN SWEETS RAKESH MARG MONEY PROBLEM

MUSKAN BAKERS

AND

CONFECTIONERS RAKESH MARG COMPETITITOR GIVE DF IN LESS PRICE

SATKAR CORNER RAKESH MARG SPACE PROBLEM

PRANJAL RAKESH MARG MONEY PROBLEM

58

GENERAL STORE

PARKASH MISTAN

BHANDAR NEHRU NAGAR NOT AGREE TO STOREV ICECREAM

NEW STREET

BAKERS NEHRU NAGAR ALREADY KEPT COMPETITITOR PRODUCT

POOJA STORE GOVIND PURAM SPACE PROBLEM

NEW HONEY

GENERAL STORE GOVIND PURAM MONEY PROBLEM

AGGARWAL

BAKERS AND

CONFECTIONERS GOVIND PURAM ALREADY HAS DF

SHIV RESTAURANT GOVIND PURAM HIGH PRICE OF DF

PRINCE PROVISION

STORE GOVIND PURAM SPACE PROBLEM

ANKIT DIARY GOVIND PURAM COMPETITITOR GIVE DF IN LESS PRICE

GANGA GENRAL

STORE GOVIND PURAM SPACE PROBLEM

DEVRAHA

PROVISION AND

CONFECTIONERS GOVIND PURAM SPACE PROBLEM

LOHIA NAGAR LOHIA NAGAR SPACE PROBLEM

59

UPBHOGTA STORE

RENUKA GENERAL

STORE LOHIA NAGAR MONEY PROBLEM

PADAM

PROVISDION

STORE LOHIA NAGAR INTERSTED BUT NOT CONFIRM

GURUKRIPA

CONFECTIONERS SHASTRI NAGAR SPACE PROBLEM

YELLOW POINT SHASTRI NAGAR MONEY PROBLEM

NEELKAMAL

CONFECTIONERS SHASTRI NAGAR ALREADY HAVE DF

DAS

CONFECTIONARY SHASTRI NAGAR INTERSTED BUT NOT CONFIRMED

NEW CHOUDHARY SHASTRI NAGAR NOT INTERSTED

JAIN PROVISION

STORE SHASTRI NAGAR SPACE PROBLEM

CHIRAG SHOP SHASTRI NAGAR MONEY PROBLEM

SHYAM SWEET SHASTRI NAGAR LESS DEMAND OF AMUL ICECREAM

SURAJ

CONFECTIONERS SHASTRI NAGAR SPACE PROBLEM

60

GARG

CONFECTIONERS SHASTRI NAGAR MONEY PROBLEM

TOPPERS CHOICE SHASTRI NAGAR LESS DEMAND OF AMUL ICECREAM

ASHISH GENRAL

STORE SHASTRI NAGAR LACK OF AWARENESS ABOUT AMUL

SUNIL GENERAL

STORE SHASTRI NAGAR MONEY PROBLEM

MADHURIMA

CONFECTIONERY GHANTAGHAR DEMANDING SCHEME

NEW MADHURIMA GHANTAGHAR INTERSTED BUT DEMANDING MORE MARGIN

JAIN SHIKANGI GHANTAGHAR NOT INTERSTED

JUGAL

CONFECTIONARY GHANTAGHAR SPACE PROBLEM

BALKISHAN GHANTAGHAR DEMANDING DF FREE OF COST

TULSI

CONFECTIONERS GHANTAGHAR MONEY PROBLEM

NEELKAMAL

CONFECTIONERS GHANTAGHAR SPACE PROBLEM

THE NATURE AND SCOPE OF MARKETING RESEARCH

61

The whole approach of marketing pivots around the tenet

of meeting the consumers wants. It is essential to understand what the consumer wants , how he/she

perceives the product(service) ,what exactly(ideally) does he/she wants to derive out of the

product(service), how does he/she make the brand choice decision, what are the sources of

information and influence processes?

In order to take the decisions further any marketer would constantly monitor such

information and obtain a continuous feedback of the trends in the market. As such, marketing

research is an effective tool for measuring the consumers’ aspirations, trade channel behaviour,

competitive actions etc. It provides a linkage between the corporate environment and the marketing

organization. Marketing research, thus, may be viewed as an important tool used as an aid for the

tackling problems in marketing.

RESARCH METHADOLOGY

DEFINITION

Marketing research is defined as the objective and formal process of systematically obtaining,

analyzing and interpreting data for actionable decision in marketing. This decision lays stress

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on two aspects, namely, objectivity and systematic

process in the collection and analysis of data. In fact, marketing research should not be allowed to be

influenced by personal views and considerations.

COMMON USES OF RESEARCH IN MARKETING DECISION MAKING

The following paragraph highlights some of the marketing decision areas where marketing research

is commonly used.

Sales management

Market Boundary

Buyer Concentration

Demand Projections

Supply

Consumer Behaviour Analysis

Market Segmentation

New Product Launch and Product Positioning

Research in Sales Methods and Policies

Advertising and Sales Promotion Research

Marketing Audit of Company Performance

Environment Trends

.

RESEARCH DESIGN

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A research design is the overall plan on programmed of

research. It includes an outline of what the investigator will do from writing the hypothesis and their

operational implications to the final analysis of data.

Various uses of having a research design are as follows

It provides answers to various questions.

It acts as a standard guidepost.

It helps in carrying out research validity, objectively, accurately and economically.

Market research projects are designed as Descriptive research depending upon the objective of study.

The objective of the descriptive research is to seek new ideas and to discover new relationship

between different set factors in a way that will permit of specific hypothesis.

The present marketing research is more less an descriptive research as its objectives are aimed to

find new ideas also the information required was obtained through methods of exploratory research.

The information has been gathered from the survey of milk consumers, retailers, confectionary

shops, dairy shops, and general stores.

Overall the research which was used as descriptive for his market research analysis is:-

i. Define research problem.

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ii. Review concepts and theories.

iii. Formulate hypothesis.

iv. Design research.

v. Collection of data.

vi. Analysis of data.

vii. Interpret and reports.

PREPARING THE RESEARCH DESIGN

The research problem having been formulated in clear terms, the researcher will be required to

prepare a research design, i.e. he will have state the conceptual structure within which research

would be conducted. The preparation of such design facilities research to be as efficient as possible

yielding maximum information. In other words, the function of research design is to provide for the

collection of evidence with minimal expenditure of effort, time and money. But how all these can be

achieved depends mainly on the research purpose. Research purposes may be grouped into four

categories, viz.,

i. Exploration

ii. Description

iii. Diagnosis, and

iv. Experimentation.

A fixable research design, which provides opportunity for the purpose of the research study, is that

of exploration. But when the purpose happens to be an accurate description of a situation or of an

association between variables, the

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suitable design will be one that minimizes bias and maximizes the reliability of the data collected

and analyzed.

There are several research designs, such as, experimental and non-experimental hypothesis testing.

Experimental designs can be either informal designs (such as before-and-after without control, after

only with control, before-and-after with control) or formal designs (such as completely randomized

block design, Latin square design, simple and complex factorial designs), one of which the

researcher must select for his own project.

The preparation of the research design, appropriate for a particular research problem, involves

usually the consideration of the following:

The means of obtaining the information.

The availability and skills of the researcher and his staff (if any).

Explanation of the way in which selected means of obtaining information will organize

and the reasoning leading to the selection.

The time available for the research, and

The cost factor relating to research, i.e. the finance for the available for the purpose.

AREA COVERED

PATEL NAGAR

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KAVI NAGAR RAJ NAGAR (ALT SECTOR)

SHASTRI NAGAR

NEHRU NAGAR

GANDHI NAGAR

MODEL TOWN

KALKA GARHI

LAJPAT NAGAR

GHANTA GHAR

ARYA NAGAR

LOHIYA NAGAR

NEW GANDHI NAGAR

DATA ANALYSIS

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The end result of filed work is complete questionnaire or similar record individual questionnaire are

of little value or interest. What is required is aggregate data for the whole sample. Data analysis is

the process of producing this aggregated data from the individual responses or raw data

REPORTING

After analysis of the filed work data the result of the research project need reporting stage is

therefore concerned with effecting communication of the results to those, who are going to take

some action on the basis of what they learn the research results

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16%

31%29%

24%

Changes Demanded By Customer

Packaging

Price

Quality

Size

NOTE: 16percent people want change in packaging,24%wants change in size,31%in price and last

295people wants change in quality.

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CHARTS AND COMMENTS FOR AMUL REAL ICE CREAM

Are you aware of response was 100% when we asked people about real ice cream. It seems that real

ice cream has gained quite a popularity in last few years, which significantly means that they are

growing up as a strong competitor of others

1. How frequently do you purchase ice cream?

Kesar Every Day Once A Week

3-4Times A Week

Once A Moonth

0

10

20

30

40

50

60

70

NOTE:

Consumption of real ice cream is not so high, but in past few years it has increased. Awareness of

product is there but motivation for the consumption is missing

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2. What attributes of real ice cream do you like most?

Hygiene Quality Price Packaging Availability0

10

20

30

40

50

60

70

80

NOTE:

Perception of real ice cream in market is a hygienic consumption, which is true Soft drinks are far

behind in this field.

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3. If you consume real ice cream once in a week, what is the frequency of other ice cream in a week?

One Two Three Other0

10

20

30

40

50

60

70

80

NOTE:

Most people consume three pack of real ice cream that means straightly 300% more in case of other.

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4. why do you prefer quality walls, cream bell?

Availability Taste Quality Any Other0

10

20

30

40

50

60

70

NOTE:

70% Response showed that due to availability quality walls , cream bell is preferred.

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FINDINGS

Peter Drucker has observed that company’s first task is “to create customers”. Earlier VADILAL

was the pioneer of the market. At present condition, we cannot say VADILAL is the

unchallengeable market leader, and fully successful to create customers. Other unorganized sector

have made their potentially widely. They are able to position successfully in the current by attracting

potential.

Customers form an expectation of value and act on it. A buyer’s delight is the function of the

products perceived performance and the customers’ expectation.

Recognizing that high satisfaction leads to high customer loyalty quality value and service are

totality of features and characteristics of a product that bear on its ability to satisfy stated or implied

needs. Total quality is the key to value creation and customers delight.

Hence GCMMF LTD. should take necessary action to continue bringing quality product. First, it

should participate in formulating strategies and policies designed to help the company win through

total quality excellence. Second, they must deliver marketing quality along side production quality

and value. Each marketing activity marketing research, advertising, customer service and so on must

be performed to high standards.

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RECOMMENDATIONS

GCMMF Ltd. and its Amul ICECREAM are not doing well in the Ghaziabad market compared to

Delhi market though they have a good marketing strategy followed by strong marketing peoples. In

this period of 8 weeks I scanned the ice-cream market of Ghaziabad.

I found that the brand awareness of Amul ice-cream is not to the point or as expected to be in

Ghaziabad.

So awareness level of the consumers about Amul ice-cream should be improved by

installing more canopies and hoarding and ensure that every colony has a hoarding and

a retailer selling Amul ice-cream. Big banners and billboards should be installed on

main roads.

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Amul must also come up with booths like that

of Mother Dairy to reduce costs and deliver quality and fresh Amul icecream to

customers.

Amul must launch promotional schemes for customers as well to increase sales as well

as to be in news.

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SWOT ANALYSIS

Strength

Amul has well built image of excellence and innovation supported of triumph of Indian

dairy technology.

It has well logistic and channel network.

Well trained and educated marketing staff.

Quality of milk is good and it doesn’t use powder in making milk.

It ensures that only cow and buffalo milk is used by collecting milk from milk

cooperatives of Gujarat.

Demand is absolutely optimistic.

Abundant availability of raw material.

High brand image of amul in market.

Provide pure milk ice-cream rather than frozen dessert.

Nationwide coverage of amul ice cream.

Offering new product to customer continuously.

Weakness

Retailers say they are not satisfied by trade schemes and offerings.

Equal importance is not given by distributors to all retailers and confectionary stores.

They neglect some retailers.

All is not well with distribution in Ghaziabad.

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With so many companies in this industry,

competition is becoming tougher day by day. But then competition has to be faced as a

ground

Reality. The market is large enough for many to carve out their niche.

Amul is not able to replace its expired items but the competitors are doing so.

Image of Amul is being diminished by not supplying the goods and services regularly.

As far as deep freezer is concern, company has no plan to provide DF on installment or

any other plan while the competitor is doing so.

Advertisement policies are not good.

Opportunities

“Failure is never final, and success never ending.” Dr. Kurien bears out this statement perfectly. He

entered the industry when there were only threats. He met failure head-on, and now he clearly is an

example of ‘never ending successes! If dairy entrepreneurs are looking for opportunities in India, the

following areas must be tapped:

Value Addition: There is a phenomenal scope for innovations in product development,

packaging and presentation. Steps can be taken to introduce Amul ice-cream with having

less fat as additional essential extra elements for health conscious people.

By increasing the margin to the retailer Amul Ice-cream can reach to the more retailers as

well as consumers.

By solving the replacement problem it can maximize the attention of retailers about selling

the product.

Can open retail outlet in posh residential colonies and various malls, cinema halls.

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Can expand its business in rural areas.

Threats

Cut throat competition in the market.

No flexibility in strategy.

Customers are not brand loyal in ice-cream industry.

The Indian Ice-cream industry,

Following its deli censing, has been attracting a large number of entrepreneurs. Their success in this

business depends on factors such as efficient yet economical procurement network, hygienic and

cost-effective processing facilities and innovativeness in the market place. All the needs to be done

are: to innovate, convert products into commercially exploitable ideas. All the time keep reminding

yourself: Benjamin Franklin discovered electricity, but it was the man who invented the meter that

really made the money!

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SUGGESTIONS FOR INCREASING

RETAIL PENETRATION OF AMUL ICECREAM IN MARKET

The company should conduct advertisement & sales promotion so that the consumers can be

more attentive to the product. If it is possible than sales can be increased.

1. The area of distributor should be defined clearly so that they can work in their area

with more potential.

2. The company should make direct communication with the retailers so that retailers

can give the feedback to the company about the market position to the company. And

on the basis of that company can take the effective decision in time.

3. They should conduct the regular survey of the particular product so that they can

know the taste and desires of the consumers and the strategy of the competitors.

4. The company should cover the retailers who are far from the main road or market

place, now a it is not covered by the salesman or the staffs. It can grow up the market

share, because the competitors cover it very well.

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5. The company should give the credit facility

to the retailers so that the small retailers can easily get the product. And they can pay

without stress. The competitors are providing this facility

6. The company should give advertisement on radio, as well as in newspapers regularly

as reminder for the consumers.

7. The company should organize AMUL DAY to educate the potential customers as well

as retailers.

8. Advertise for the brand awareness for ice cream towards the customer particularly in

the rural area.

9. Focus on the value addition of the product.

10. Position the product in the right way like that we are no. 1.

11. Adopt installment scheme for HADF.

12. AMUL should have highlight its basic strength i.e. pure ice-cream product rather

than that of competitors “FROZEN DESERT”

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13. Should open retail outlet in super malls, in

posh residential colonies.

14. Should follow an advertisement campaign that could highlight difference between

ICECREAM AND FROZEN DESERT

15. Advertisement on T.V. in prime time shows.

16. Try to make an direct relationship with retailers, not depend upon distributors

feedback.

17. Conduct continuous R&D so that company can develop new product time to time to

avoid competition.

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LIMITATIONS OF RESEARCH

Every research is conducted under some foundations and this research is not an exception.

Limitations of this project are-

The sample sizes of 500 consumers are too small to project the opinion of consumer

regarding a particular brand and also degree of success of a particular brand.

There might have been tendencies among the respondents to amplify or filter their responses

under the testing conditions.

Since the study involved sampling method, ‘Drop in’ or ‘Go through’ error might have crept

in.

Since the results have been drawn on the basis of the information provided by the

respondents, chances of error might have crept in.

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BIBLIOGRAPHY

MAGAZINES:

Business Today

Business World

NEWSPAPER:

Economic Times

Business Standard

The Financial Express

BOOKS:

Research Methodology by C.R. Kothari

Marketing Research by Ramanuj Majumdar

Consumer Behaviors by Gupta and Pal

Marketing Management by Philip Kotler,

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WEBSITES:

www.amul.com

www.parasdairy.com

www.motherdairy.com

www.nddb.org

www.economictimes.com

www.sify.com/finance

www.business-standard.com

www.rediff.com/money

www.indiainfoquest.com

www.ask.com

www.google.com

www.domain-b.com

Annexure85

QUESTIONNAIRE

Name________________________________

Line of business________________________

Address__________________________________________________________________________

_____________________________________________________________

Q .1) Are you interested in selling ice cream?

Yes _______ No_______

Q .2a) If given a choice among following brands of ice cream, which one would you like to have

(choose Only one):

1. Amul _________ 5. Dinshaw _________

2. Mother diary _________ 6. Kwality walls _________

3. Vadilal _________ 7. Others _________

4. Cream bell _________

5.

Q.2b) Please mark your reasons for the choice made in question 2a:

1.Brand Superiority_______ 4.Packaging__________

2.Quality _______ 5.Profit margin________

3.Price Range _______ 6.Product Range_______

Q .3) Does different schemes that companies run for deep freezers also affect your decision for

keeping ice-cream of that particular brand or company?

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______Yes _______N

If yes, what type of scheme will attract you most? (In order of preference)

1. Installment_____________ 5.Free Ice-cream_________

2. Security Basis__________ 6. Lump sum_____________

3. Free__________________

4. Scratch coupons________

Q.4. What attributes of real ice cream do you like most?

1.Hygine 2. Packaging

3. price 4.quality

Q.5 . why do you prefer quality walls, cream bell?

1. Availability 2.quality

3. Taste 4.Any other

Q.6, . How frequently do you purchase ice cream?

1 .Everyday 2. Ones a week

3 Three or four times in a month 4.Ones in a month

Q.7. this product matches to your expectations

(a) Yes (b) No

Q.8. If no, what is the problem

(a) Quality problem (b) Price problem

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(c) Supply problem (d)

Others

Q.9. Why you use this particular brand

(a) Better quality (b) Low price

(c) Easy availability (d) Better Scheme

Q.10 Is there any specific demand by the consumers

(a)Yes (b) No

Q.11. If yes, what type of demand?

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