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8/6/2019 A Final Project Report Prashant
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A Project Report
On
Study on the Penetration of Amul flavour milk in the retail outlets
of Pune
In partial fulfillment of the award of
APGP-BM (2008-2010)
Internal Mentor Submitted by
Adj.Prof. S. Venkat Prashant Maheshwari
SoMT, I2IT (PGM08080889)
International Institute of Information Technology
P-14, Rajiv Gandhi InfoTech Park, Hinjewadi, Pune-411057, India
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Certificate
This is to certify that Mr. Prashant Maheshwari of August 2008 batch has satisfactorily
completed the study entitled, Study on the Penetration of Amul flavour milk in the
retail outlets of Pune in partial fulfilment of the requirements for the award of
Advanced Post Graduate Program In Business Management of this Institute.
Name/s and Signature/s
of the Guide/s
Name and Signature of Internal Guide
The HOD
Name and Signature of External Guide
The Dean
Date:
Place: Pune. Seal of the Institute
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DECLARATION
I Mr. Prashant Maheshwari hereby declare that this report is the record of authentic
work carried out by me during the academic year 2008-2010 in GUJARAT CO-
OPERATIVE MILK MARKETING FEDERATION LIMITED AMUL INDIA. The
Company has been located in Anand, Gujarat.
Prashant Maheshwari
Sign:
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PREFACE
The APGP-BM programme is well structured and integrated course of business studies.
The main objective of practical training at APGP-BM level is to develop skill in student
by supplement to the theoretical study of business management in general. Industrial
training helps to gain real life knowledge about the industrial environment and business
practices. The APGP-BM programme provides student with a fundamental knowledge
of business and organizational functions and activities, as well as an exposure
to strategic thinking of management.
In every professional course, training is an important factor. Professors give us
theoretical knowledge of various subjects in the college but we are practically exposed ofsuch subjects when we get the training in the organization. It is only the training through
which I come to know that what an industry is and how it works. I can learn about
various departmental operations being performed in the industry, which would, in
return, help me in the future when I will enter the practical field.
Training is an integral part of APGP-BM and each and every student has to undergo the
training for 2 months in a company and then prepare a project report on the same
after the completion of training.
During this whole training I got a lot of experience and came to know about the
management practices in real that how it differs from those of theoretical knowledge and
the practically in the real life.
In todays globalize world, where cutthroat competition is prevailing in the market,
theoretical knowledge is not sufficient. Beside this one need to have practical
knowledge, which would help an individual in his/her carrier activities and it
is true that Experience is best teacher.
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ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for Gujarat Co-
operative Milk Marketing Federation Ltd. Wagholi, Pune. It has been an enriching
experience for me to undergo my summer training at AMUL, which would not have
possible without the goodwill and support of the people around.
As a student of INTERNATIONAL INSTITUTE OF INFORMATION TECHNOLOGY,
I would like to express my sincere thanks to all those who helped me during my
practical training program. Words are insufficient to express my gratitude towards Mrs.
Richie Agarwal Sr. Sales Executive of AMUL, who helped me at every step whenever
needed. I would also like to give my heartily thanks to Mr. Arindam ChatterjeeAsst.Manager (Sales).
As we know research work needs hard work, keen insight and long patience with scholarly
vision based on content operation hence it becomes a humble duty to express my sincere
gratitude to all my faculty members for the proper guidance and assistance
extended by them. I am also grateful to my parents, friends, to encourage & giving me
moral support. However, I accept the sole responsibility for any possible error of omission
and would be extremely grateful to the readers of this project report if they bring
such mistakes to my notice.
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EXECUTIVE SUMMARY
The data base of retailers across the city of Pune was compiled on the basis of listing
criteria such as geographic criteria, presence of outlets in the given surveyed areas,
stocking of snack food categories as well as categorization on the basis of SKUs stock
such as Bakery shops, Sweets shop, General store, Convenience store, Departmental store.
The database was compiled using a total of 250 listings across 11 suburbs of Pune on the
basis of the listing questionnaire a total of 172 retailers were included in the final study
because only 172 retailers kept flavour milk and remaining are not interested in flavour
milk business.
A questionnaire was administered to 172 retailers over period of one month. It was
difficult to elicit a response from about 20% of the retailers. A retailer has fear to lose its
business & not provide the correct information. As a convenience most of the timeretailers visited from 2:00pm to 4:00pm because at that time retailers are free and inflow
of customers are very less.
The questionnaire was designed with the purpose of eliciting response across various
population parameters such as food stocked, presence of flavour milk, duration in the
business, awareness of flavour milk brands, current sale of flavour milk in relation to otherbrands, market freshness, distributors service, salesman visit, frequency of the salesman
visit, stocking mechanism, ordered stock supplied on time, storage condition, distributor
offer any schemes, satisfaction with distributors services, cues provided by distributors on
point of sale and point of purchasing and factors that influence the stocking decision.
The sampling method used was area sampling & convenience sampling.
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TABLE OF CONTENTS
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TOPICS PAGE NO.
List of tables 1
List of figures/charts 2
1. Industry Profile 3
2. Company Profile 5
3. Research Methodology 9
4. Data Representation & Interpretation 12
5. Findings 25
6. Recommendation 26
7. Conclusion 27
8. Bibliography 28
9. Annexure 29
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LIST OF TABLES
Page No.
Tab. 4.1 Retail outlet surveyed 12
Tab. 4.2 Retail outlet which kept flavour milk 13
Tab. 4.3 Outlets kept flavoured milk (years) 14
Tab. 4.4 Penetration of flavour milk companies in retail outlets 15
Tab. 4.5 Avg. Monthly sales (units) 16
Tab. 4.6 Salesman visit the counter 17
Tab. 4.7 Frequency of salesman visit 18
Tab. 4.8 Stock supplied on time 19
Tab. 4.9 All ordered stock supplied 20
Tab. 4.10 Distributor of any scheme 21
Tab. 4.11 Types of packs available 22
Tab. 4.12 Effectiveness of Amul distribution channel 23
Tab. 4.13 Factors affecting stocking decisions 24
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LIST OF FIGURES/ CHARTS
Page No.
Fig. 4.1 Retail outlet surveyed 12
Fig. 4.2 Retail outlet which kept flavour milk 13
Fig. 4.3 Outlets kept flavoured milk (years) 14
Fig. 4.4 Penetration of flavour milk companies in retail outlets 15
Fig. 4.5 Avg. Monthly sales (units) 16
Fig. 4.6 Salesman visit the counter 17
Fig. 4.7 Frequency of salesman visit 18
Fig. 4.8 Stock supplied on time 19
Fig. 4.9 All ordered stock supplied 20
Fig. 4.10 Distributor of any scheme 21
Fig. 4.11 Types of packs available 22
Fig. 4.12 Effectiveness of Amul distribution channel 23
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1. INDUSTRY PROFILE
1.1 FOOD INDUSTRY
In the World, India is the second largest producer of food after China. The country has
achieved the potential of being the biggest with the food and agricultural sector. Indian
Food Industry is considered to be occupying about two thirds of the total Indian retail
market. Food and food processing technologies are developing gradually. In addition to
that modern skills and equipment have taken place in industries such as Canning, Dairy
and Food Processing, Specialty Processing, Packaging, Frozen Food, Refrigeration and
Thermo Processing.
Among the sub-sectors of Indian Food Industry, fruits and vegetables industry have
achieved the second largest producer of vegetables in the world next to China and
accounts for about 15 percent of the world`s production of vegetables. Vegetables are
typically grown in India in field conditions. The current production level in the Indian
subcontinent is over 71 million MT and the total area under vegetable cultivation is around
6.2 million hectares. Vegetables such as potato, tomato, onion, cabbage and cauliflower
report for around 60 percent of the total vegetable production in the country.
Meat and poultry is one of the fastest growing segments of the agricultural sector in India
at present. In this industry, the production of eggs and broilers has been rising at a rate of 8
to 10 percent per annum. India is the fifth largest egg producer and the eighteenth largest
producer of broilers in the world. Fisheries also have gained popularity as a major Indian
Food Industry. India is the third largest producer of fish in the world. Milk and milk
products have also gained popularity. India is the largest producer of milk in the world. In
India both the production and consumption of milk and its derivatives are traditionally
high in the country. Amul is regarded to be the largest food product business in the
country.
Plantation Industry is among the prominent Indian Food Industry. There are about 9500
spices from medicinal and aromatic plants that are produced in the country. India is the
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largest producer, consumer and exporter of spices and the major spices being produced
include black pepper, cardamom, ginger, garlic, turmeric and chilli. In the Indian food
industry, the consumer product groups like confectionery, chocolates and cocoa products,
Soya-based products, mineral water, high protein foods are also on a high rise. They form
the most promising sub-sectors of Indian food industry. Beverages are also included in the
industries. Besides these, grain processing and Grain-milling has a position. In spite being
one of the major food producers in the world, India is credited for less than 1.5 per cent of
international food trade. Furthermore, the Indian food industry sales turnover is Rs
140,000 crore (1 crore = 10 million) annually as at the start of year 2000. The Indian food
industry has the highest number of plants approved by the US Food and Drug
Administration (FDA) outside the USA.
Under the food industry, Dairy product is very important part of food processing. Dairy
processing is acting good role in India.
1.2 DAIRY PROCESSING
India ranks first in the world in terms of milk production. Indian production stands at
91million tones growing at a CAGR of 4 per cent. This is primarily due to the
initiatives taken by the Operation flood programmes in organizing milk producers into
cooperatives; building infrastructure for milk procurement, processing and marketing
and providing financial, technical and management inputs by the Ministry of Agriculture
and Ministry of Food Processing Industries to turn the dairy sector into viable self-
sustaining organized sector. About 35% of milk produced in India is processed. The
organized sector (large scale dairy plants) processes about 13 million tonnes annually,
while the unorganized sector processes about 22 million tonnes per annum. In the
organized sector, there are 676 dairy plants in the Cooperative, Private and Governmentsectors registered with the Government of India and the state Governments.
India has a unique pattern of production, processing and marketing/consumption of milk,
which is not comparable with any large milk producing country. Approximately 70 million
rural households (primarily, small and marginal farmers and landless labourers ) in
the country are engaged in milk production. Over 11 million farmer are organized into
about 0.1 million village Dairy Cooperative Societies (DCS) (about 110 farmers per DCS).
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The cumulative milk handled by DCS across the country is about 18 million kg of milk
per day.
These cooperatives form part of a national milk grid which links the milk
producers throughout India with consumers in more than 700 towns and cities bridging
the gaps on account of seasonal and regional variations in the availability of milk.
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2. COMPANY PROFILE
2.1 ABOUT AMUL
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in
India. It is a brand name managed by an apex cooperative organisation, Gujarat
Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly
owned by some 2.79 million milk producers in Gujarat, India. It is based in Anand
town of Gujarat and has been a sterling example of a co- operative organization's success
in the long term. The Amul Pattern has established itself as a uniquely appropriate
model for rural development. Amul has spurred the White Revolution of India, which has
made India the largest producer of milk and milk products in the world.
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.
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an
annual turnover of US $1504 million (2008- 09). Currently Amul has 2.79 million
producer members with milk collection average of 3.05 billion litres per day. Besides
India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,
Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to
enter Japanese market in 1994 had not succeeded, but now it has fresh plans of
flooding the Japanese markets. Other potential markets being considered include Sri
Lanka.
2.2 ABOUT GCMMF
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GCMMF is India's largest food products marketing organisation. 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.
GCMMF markets and manages the Amul brand. From mid-1990's Amul has entered areas
not related directly to its core business. Its entry into ice cream was regarded as successful
due to the large market share it was able to capture within a short period of time -
primarily due to the price differential and the brand name. It also entered the Pizzabusiness, where the base and the recipes were made available to restaurant owners who
could price it as low as 30 rupees per pizza when the other players were charging upwards
of 100 rupees.
Members: 13 district cooperative milk producers' Union
No. of Producer Members: 2.79 million
No. of Village Societies: 13,328
Total Milk handling capacity: 11.22 million litres per day
Milk collection (Total - 2008-09): 3.05 billion litres
Milk collection (Daily Average 2008-09): 8.4 million litres
Milk Drying Capacity: 626 Metric tonnes per day
Cattle feed manufacturing Capacity: 3500 Metric tonnes per day
Dr. Verghese Kurien, former chair man of the GCMMF, is recognised as the man behind
the success of Amul. On 10 Aug 2006 Mr. Parthi Bhatol, chairman of the Banaskantha
Union, was selected chairman of GCMMF.
2.3 PRODUCTS
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Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate,
ice cream, cream, shrikhand, paneer, gulab jamuns, flavoured milk, basundi, Nutramul
brand and others. In January 2006, Amul plans to launch India's first sports drink Stamina,
which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade.
In August 2007, Amul introduced Flavour Koko, a chocolate milk brand extending its
product offering in the milk products segment. Other Amul brands are Amul Flavour, a
low calorie thirst quenching drink, Masti Butter Milk, Flavour Cafe, ready to drink coffee
and India's first sports drink Stamina.
Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing
Award for 2007.
2.4 MAJOR ACHIEVEMENTS
GCMMF bags APEDA AWARD for 11th year in a row.
Amul Pro-Biotic Ice-cream Gets No. 1 Award at World Dairy Summit.
Ramakrishna Bajaj National Quality Award-2003.
Amul - The Taste of India (GCMMF) Receives International CIO 100 Award For
resourcefulness.
Rajiv Gandhi National Quality Award 1999.
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3. RESEARCH METHODOLOGY
3.1 TITLE OF THE STUDY
A study of the penetration of Amul flavour milk in the retail outlets of Pune.
3.2 OBJECTIVE OF THE RESEARCH
To find out the penetration of Amul flavour milk in the retail outlets of Pune
with reference to retailers who keeps such products.
To find out the factors that influences the stocking decision of retailers of flavour
milk beverages product in Pune.
To find out the effectiveness of distributors in their corresponding areas of Pune.
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3.3 PROBLEM STATEMENT
There has been a drop in the percentage of retail outlets in Pune where Amul
already had penetration for its beverages products, this study is intended to find out
the percentage of outlets where penetration of Amul flavoured milk beverages products
exists & doesnt exist and also to find out the factors that influence the stocking decision
of retailers of flavour milk beverages products.
3.4 SCOPE OF THE STUDY
The scope of the study is limited solely to the markets visited by the researcher for
the purpose of research, this may hence not be a total reflection of the penetration of
Amul products for all the retail outlets in Pune.
3.5 SOURCES OF DATA
3.5.1 Primary sources
The primary data was collected through questionnaires. They were filled using the
scheduled method of data collection by the researcher.
Questionnaire in the project consists of:
Multiple choice questions
Dichotomous
Rating scale
3.5.2 Secondary sources
The secondary sources were used only for collecting general information regarding
the outlets, they were however not used for analysis.
3.6RESEARCH DESIGN
A Research design specifies the methods and procedures for conducting a particular study.
It is a map (or) blue print to which the research is to be conducted. Descriptive
research design has been considered as a suitable methodology for present study and for
data analysis.
3.7 SAMPLING DESIGN
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The sampling design used was area and convenience sampling, which is a probability and
non-probability sampling method. The convenience factors were the availability and
approachability of the respondents. The area sampling involves in study of the
geographical subdivisions.
3.8 POPULATION
All types of outlets that stock and sell food products in the markets. The outlets have been
classified as follows
Bakery shops
Sweets shop
General store
Convenience store
Departmental store
3.9 PLACES OF STUDY
The study was conducted in the retail outlets in and around Pune in the following areas
J.M Road
F.C Road
Aundh
Aundh gaon
Baner
Shivaji Nagar
Khadki
S.B Road
Pashan
Pashan gaon
Pashan-Sus Road
3.10 MEASUREMENT
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The research objective requires the researcher to find out the penetration of Amul
flavour milk beverages products with reference to retailers who keep such products. For
this the following relevant data were collected
Amul product sold by the retailers
If sold, then which of the competitors complimentary products, has a higher
penetration in that outlet.
Strategies adopted by the company and distributors that influence the stocking
decision of retailers.
3.11 LIMITATIONS OF THE RESEARCH
Limited time available for interviewing the respondents . As a result of this
Sometimes I face language problem for which I tried to make them understand.
Non-cooperative approach and rude behaviour of the respondents.
Sometimes it is difficult to collect the information due to rainy season.
Sometimes retailers hesitate to give full information in fear of losing their business.
3.12 ANALYSIS TECHNIQUES
Quantitative analysis is performed using the data collected at each outlet to estimate the
presence of Amul products.
Tools Utilized
Percentage Analysis
Graph Chart
4. DATA REPRESENTATION & INTERPRETATION
4.1 Type of Outlet visited?
TypeOf outlet
BakeryShop
Sweetshop
Generalstore
Conveniencestore
Departmentalstore
Total
No. ofOutlet
46 50 86 30 38 250
Table 4.1
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The above table shows that out of 250 outlets surveyed; there were 46 bakery shops, 50
sweet shop, 86 general stores, 30 convenience stores, and 38 departmental stores.
18.40%
20%
34.40%
12%
15.20%
Bakery shop
Sweet shop
General store
Convenience store
Departmental
store
Retail outlet surveyed
Retail outlet surveyed
Figure 4.1
Of all the retail outlets surveyed, 18.4% bakery shops, 20% sweet shop, 34.4% general
stores, 12% convenience stores, and 15.2% departmental stores. This shows majority of
outlets in Pune are general stores where company can improve their penetration followed
by sweet shop and bakery shops.
4.2 Do you keep flavour milk?
Type of outletFlavour milk
TotalYes No
Bakery shop 30 16 46
Sweet shop 27 23 50
General store 66 20 86Convenience store 17 13 30
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Departmental store 32 6 38
Total 172 78 250
Table 4.2
The table above shows that out of 250 retail outlets, 172 outlets kept flavour milk.
68.80%
31.20%
Retail outlets which kept flavour milk
Yes
No
Figure 4.2
Above graph shows that majority of the outlets keep flavour milk in Pune this shows
company has lots of scope to penetrate market and improve business. In remaining 31.2%
outlets Company can use different strategy for penetration.
4.3 How long have you kept flavoured milk?
Period Less than 1yr 1yr-3yr More than 3yr Total
Outlet 53 87 32 172
Table 4.3
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The Outlets table shows that out of 172 outlets, 53 are those which are selling the product
less than 1yr, 87 are selling from 1yr-3yr and 32 are selling from more than 3yr.
Less than 1yr 1yr-3yr More than 3yr
30.80%
50.58%
18.62%
Outlets Kept flavoured milk(years)
Outlets kept flavoured milk (
years)
Figure 4.3
Overall retail outlet surveyed, 30.80% are those outlet which have this product less
than 1years, 50.58% have 1-3 years and 18.62% have more than 3 years. Most of the
retailers are in flavour milk business 1yr to 3yr this shows that demand of the flavour milk
increases from the past 2yrs.
4.4 Which companies flavour milk do you stock?
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No. of outlet kept flavour milk / Company Amul OthersBoth
(Amul &Others)
Bakery shop (30) 17 8 5
Sweet shop (27) 12 7 8General store (66) 29 23 14
Convenience store (17) 7 6 4
Departmental store (32) 19 4 9
Total (172) 84 48 40
Table 4.4
The total outlet kept flavour milk are 172, out of 172, 84 stock Amul flavour milk, 48
stock other brands (Urja, Madhur, Status, e.t.c) flavour milk and 40 stock both Amul &
other brands.
Figure 4.4
The graph defines that Amul penetrated in 48.8% outlet but 23.2% outlet where both
Amul& others local brands are presented, while no penetration in 28% outlets. This shows
Amul has the maximum penetration level as compare to other local brands but company
can improve its penetration level by acquiring the remaining 28%.
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4.5 What is avg. Monthly sale of flavour milk?
No. ofbottles&
tetrapacks(units)
400 Total
No. ofoutlets
22 45 56 26 23 172
Table 4.5
Out of total no. of outlets, 22 outlets sells less than 100 units , 45 outlets sells 100-200
units,56 outlets sells 201-300 units,26 outlets sells301-400 unit and 23 outlets sells more
than 400 units . (1box=24 units)
400
12.70%
26.16%
32.55%
15.11%
13.37%
Avg. Monthly Sales ( in units)
Avg. Monthly sales (units)
Figure 4.5
The graph defines that 12.7% of outlets sales less than 24 units weekly, 26.16% outlets
sales 24-48 units weekly, 32.55% outlets sales 49-73 units weekly, 15.11% outlets sales 74-
98 units & 13.37% outlets sales more than 98 units weekly. More number of outlets sells
good units of flavour milk.
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4.6 Distributor salesman visits the counter?
Distributor salesman visit the counter Yes No Total
No. of outlets 124 48 172
Table 4.6
Out of 172 outlets, distributor salesman visits the 124 retail outlets but not visited 48
outlets which are also in flavour milk business.
Figure 4.6
The graph shows that 72% of outlets are been visited by the distributor salesman and
where 28% are not visited. We can conclude that salesman visits majority of outlets but
still there is some scope to visit remaining 28% outlets which can improve business for
company.
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4.7 What is the frequency of salesman visits?
Frequency of
salesman visits Weekly Fortnightly Monthly TotalNo. of outlets 47 34 43 124
Table 4.7
There are124 outlets where distributor salesman visits the counter but only 47 outlets they
visited weekly, 34 outlets visited fortnightly and 43 outlets visited monthly.
Figure 4.7
The graph shows that 38% of outlets are been visited by the distributors salesman weekly,
but about 34.60% of the outlets monthly visited by the distributor salesman affect thestocking decision of retailer and market penetration.
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4.8 Stocks supplied on time?
Stocks supplied ontime
Yes No Total
No of outlets 46 78 124
Table 4.8
There are 124 outlets where the distributor supplied the stock, out of that only 46 outlets
get the stock on time, 78 outlets dont get it on time.
Figure 4.8
The graph shows that 63% of outlets dont get there stock on time and only 37% of the
outlets get there stock. Company and distributors has to work on this area where thecompany has a fear to lose market share because if the supply is not in time then it affect
stocking decision of the retailer.
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4.9 All ordered stock are supplied?
All Ordered Stocks
suppliedYes No Total
No. of outlets 56 68 124
Table 4.9
There are 124 outlets where the distributor supplied the stock, out of that only 56 outlets
get the all ordered stock, 68 outlets dont get the all ordered stock it.
Figure 4.9
Most of the time distributor not able to supply all ordered stock . This shows poor
performance in distribution channel and because of this most of the retailers keep other
brand to fulfill their demand.
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4.10 Does distributor offer any scheme?
Does distributoroffer any scheme
Yes No Total
No. of outlets 73 51 124
Table 4.10
Above table shows that scheme offered in more than half outlets which are good sign for
company but still there are some retailers scheme is not offered by the distributor which
can create negative image of company and force them to switch to other local brands.
58.80%
41.20%
Distributor offer any scheme
Yes
No
Figure 4.10
Only 58.8% of the retailers are getting the schemes from the distributor and rest of theretailers are not aware about the schemes. As the schemes changes periodically, thismotivates the retailers for stocking the product.
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4.11 What kind of flavoured milk packs available with you?
Type of packsavailable
Glass Bottle Tetra pack Both Total
No. of outlets 58 10 56 124
Table 4.11
There are 124 outlets where the distributor supplied the stock, in 58 outlets glass bottle
packing are available, 10 outlets tetra packs are available and in 56 outlets both packing
are available.
Figure 4.11
Above Pie chart shows that most of the retailers like to keep bottles due to high margin
and almost same number of retailers keeps both tetra pack and bottles. This means that
tetra packs are not preferred by the retailers due to low margins and high market price.
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4.12 How effective do you feel Amul distribution channel?
Effectivenessof Amul
distributionchannel
Good Average Poor Excellent Total
No. ofrespondents
18 78 74 2 172
Table 4.12
About 78 outlets owners feel that amul distribution channel is average but 74 outlets also
feel that it is poor.
Figure 4.12
Above graph shows that almost same number of retailers thinks that distribution channel is
poor and average which is bad sign for company and can be a factor for losing business
and decrease sales.
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4.13 Which factors given below influence youre stocking decision?
FactorsRanks
Rank 1 Rank 2 Rank3 Rank4 Rank5 Rank6 Rank7
ConsumerPreference
105 25 30 9 3 0 0
Packing 7 12 6 12 17 33 85
Offers 8 10 17 20 86 20 11
Promotionalactivities 10 17 3 89 18 15 20
Margins 30 7 80 21 17 16 1
Replacement 4 9 3 10 11 88 47
Distributionchannel
8 92 33 11 20 0 8
Table 4.13
By the help of Kendalls coefficient test there is an agreement among the respondents.
Consumer preference is the major factor & distribution channel, margins are other main
factors which are responsible for the stocking decision of the retailer.
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5. FINDINGS OF THE STUDY
As per the analysis the following outcome may be considered.
1. According to outlets surveyed, most of the outlet kept flavour milk but there are some
of the outlets which are not interested.
2. Amul is available in maximum outlets in the comparison of other local brands. But
from the past 1yr sales has been decreased due to increase in local brands.
3. At present there are more than 8 local brands (Urja, Madhur, Status, Dr.thakar)
available in the surveyed areas.
4. There are some outlets which kept local brands and some of outlets kept both Amul &
other brands but proportion of Amul are less than the local brands.
5. On the concern of distribution channel, most of the surveyed retailers agree that Amul
has average distribution channel.
6. Amul divide its distribution channel for different product categories. It has 4 different
distributions channels :-
Line-A( Butter, Ghee, Cheese, Chocolate, Cream, etc)
Line-B( Flavour milk, Butter milk , Lassi)
For Fresh Packaged Milk
For Ice cream
7. Line B distributor of Amul in surveyed areas are not working well.
8. Amul brand is so strong that retailer has to keep its products instead of no replacement
& low margins as compare to local brands.
9. Factors that influence the retailers stocking decision:
Consumer preference
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Distribution in supplying the products regularly
Promotional strategies
Margins
Replacement
Packaging of the product
10. There is sufficient demand in the market for Amul flavour milk but due to improper
distribution company not able to fulfil demand which results decrease in sales.
6. RECOMMENDATIONS
1. Amul has a relatively good distribution network, but still company is not able to
fullfill the daily demand of outlets . Here company should give emphasis on the regular
supply of product in outlets.
2.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.
3.Since the penetration of Amul products in all the channels is average , so the
company ought to adopt strategy like supplying free menu cards, which has the
company logo printed on them, this will not only increase the penetration of the
product in the outlets , but also improve the market sales.
4. The company give instruction to its distributors to supply all products range to the
retailers, so that the product penetration in the outlets increases in terms of percentage of
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units stocked at a time in the outlet, this would also look appealing to the customer who
would instead like to pick up the product at first glance.
5. The Company has to evaluate the performance of distributors regularly to make the
distributors channel effective.
6.Given the fact that margin offered to the retailer is not similar in the case of the
competitors product. For this fact, the company should give some other benefits to the
retailers to encourage them.
7. Company should give proper instructions to distributors about packaging, expiry date
before selling them to retailers.
8. Company should also give the replacement offer to that outlet which is running with
small business.
9. Company has to focus on 4Ps of marketing mix (Product, Place, Price, and Promotion)
in which promotion & place are two major factors where the company is lagging behind.
7. CONCLUSION
As Amul is very big organization and market leader in dairy products. It has maximum
market share in Milk, Butter and Cheese, which are its main/core products. As Amul is a
co-operative organisation but beverage industry is a profitable industry we cant ignore it.
With the help of research, company can find out its week areas and rectify mistakes to
increase its market share.
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The survey resulted into following conclusions:
As the Amul has highest market share in the flavour milk categories in comparison
to other local brands but according the previous year data Amul has around 60% of
market share solely occupied but this year it decreases to around 48%.
For all the companies distribution channel is the backbone. Amul has its good
distribution channel but from time to time company has to evaluate its distributors
to make the distribution channel effective.
Amul is lagging behind in proper use of 4Ps of marketing mix (Product, Place,
Price, and Promotion).
As Amul is the oldest brands of our country, consumer always 1st asks for the
Amul products if its not available then it shift to other brands this shows thecustomer loyalty towards the brand.
Amul is the co-operative society so its for the people (farmers), to the people
(consumers), by the people (management).
8. BIBLIOGRAPHY
1. www.amul.com
2. www.amuldairy.com
3. www.google.com
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4. www.marketresearch.com
5. www.dairy.com
6. Research Methodology (C. R. Kothari).
ANNEXURE
QUESTIONNAIRE
I am a student of APGP-BM from INTERNATIONAL INSTITUTE OF INFORMATION
TECHNOLOGY, PUNEconducting a survey on the Penetration of Amul flavour milk
in the retail outlets of Pune.
Name of Outlet....... Location of Outlet.....
1. Type of Outlet visited?
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(a) Bakery shop (b) Sweets shop (c) General store (d) Convenience store(e) Departmental store
2. Do you keep flavour milk? Y/N
3. How long have you been into flavour milk business?
(a) < 1year (b) 1-3 years (c) >3 year
4. Which company flavour milk do you stock?1. Amul 2.Others (Please mention).............. 3. Both (Amul & Others)
5. How many units of Amul flavour milk do you sell i.e. other brands weekly?(a) 98
6. Distributor salesman visits the counter? Y/N
7. What is the frequency of salesman visits?
(a) Weekly (b) Fortnightly (c) Monthly
8. Stocks supplied on time? Y/N
9. All ordered stock are supplied? Y/N
10. Does distributor offer any scheme? Y/NIf yes, what scheme? .........................................................................................
11. What kind of flavoured Milk packs available with you?(a) Glass Bottle (b) Tetra pack (c) Both
12. How effective do you feel Amul distribution channel?(a) Good (b) Average (c) Poor (d) Excellent
13.Which factors given below influence youre stocking decision? Rank the following
factors from (1 7), where 1 is the most important and 7 is the least important.1. Consumer Preference -------2. Packing -------3. Offers -------4. Promotional effectiveness -------5.
Margins -------6. Replacement -------7. Distribution channel -------