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A project report on
AMUL CHOCOLATE
Dissertation submitted in partial fulfillment Post Graduate Diploma in Business Management
BY
SUVESH KUMAR
Roll No.: GJUJUL08AB279
Batch July 2008-2010
Under the Guidance of
Mrs. MEGHA MATHUR
(Faculty of Marketing)
NSB SCHOOL OF BUSINESS B-II/1, MCIE, Delhi-Mathura Road, New Delhi
DECLARATION
I hereby declare that this project report entitled “Market Research on Amul
Chocolate” for Gujarat Cooperative Milk Marketing Federation (GCMMF)
is a bonafied record of work done by me during the project work and that it
has not previously formed the basis for the award to us for any
degree/diploma associate ship, fellowship or other similar title, of any other
Institute/ Society.
SUVESH KUMAR
2
ACKNOWLEDGEMENT
This research in itself is an acknowledge to the inspiration, drive, technical
assistance contributed to it by many individuals. This study even internal part
of our PGDBM programme and to do this project in a short period was a
heavy task. Intention, dedication, concentration and hard work are very much
essential to complete any task. But still it needs lot of support, guidance
assistance, co-operation of people to make it successful.
I bear to imprint of my people who have given me their precious ideas and
times to enable me to complete the research and the project report. I want to
thank them for their continuous support at my research and writing efforts.
I would like to express my heartfelt gratitude to the Mrs.MEGHA
MATHUR for providing me the opportunity to undertake this project .
SUVESH KUMAR
3
Table of content
Sr.No. Contents Page No.
1. Company Profile 4
2. The brand name – Amul 8
3. List of products marketed 11
4. Performance of Amul in last decade 16
5. The Chocolate 18
6.. Research methodology 21
7. Analysis 28
8. SWOT analysis 38
9. Distributor services the retailers 43
10. Problem faced in Amul chocolate 47
11. Areas of improvements & recommendations 52
12. Limitations of the study 55
13. Annexure: 57
14. Bibliography 61
4
5
COMPANY PROFILE
AMUL AND THE COOPERATIVE MOVEMENT:
Amul embarked upon its illustrious journey as a beacon for the Indian
cooperative movement in 1946. Since then, it has been undergoing a
multidimensional evolution whose overarching objective has been the same
throughout: serving the farmer and catering to consumer requirements.
A structural landmark in this evolution process was the formation of the
GCMMF in 1974. Throughout these last 35 years, the company has
demonstrated-again and again-that Amul both represents and reconciles
diverse expectations and aspirations.
Gujarat Cooperative Milk Marketing Federation (GCMMF):
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.
6
GCMMF consists of:
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 Mts. per day
Cattlefeed manufacturing
Capacity:
3500 Mts per day
7
AMUL BUTTER GIRL
The moppet who put Amul on India's breakfast table:
Amul products have been in use in millions of homes since 1946. Amul
Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul
Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and
Amulya have made Amul a leading food brand in India.
50 years after it was first launched, Amul's sale figures have jumped from
1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other
brand comes even close to it. All because a thumb-sized girl climbed on to the
hoardings and put a spell on the masses.
For 30 odd years the Utterly Butterly girl has managed to keep her fan
following intact. So much so that the ads are now ready to enter the Guinness
Book of World Records for being the longest running campaign ever. The
8
ultimate compliment to the butter came when a British company launched a
butter and called it Utterly Butterly.
9
The Brand Name - “AMUL”
AMUL means "priceless" in Sanskrit. The brand name "Amul," from the
Sanskrit "Amoolya," was suggested by a quality control expert in Anand.
Variants, all meaning "priceless", 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, Amulspray, Amul Cheese, Amul
Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and
Amulya have made Amul a leading food brand in India.
Today “Amul” is a symbol of many things: -
Of 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.
Of a proven model for dairy development.
10
MILK PROCUREMENT
Total milk procurement by Member Unions during the year 2008-09 averaged
2.79 billion . Milk collection (Daily Average 2008-09): 8.4 million litres, total
milk handing capacity 11.22 millian per day achieved.
DISTRIBUTION
Alignment of four Distribution Highways of fresh, chilled, frozen and ambient
products is a major factor for the company. The company is planning to
increase our Distributor Network in smaller towns. The fast changing market
scenario resulting from rise in household incomes leading to metamorphosis
of rural and smaller markets, significant increase of middle class families and
migration from rural areas to smaller developing towns has resulted in the
emergence of growing markets in smaller towns all across the country.
An addition of almost 900 distributors in small towns was undertaken on a
Time Based Military (TMT) technique. This initiative has already started
yielding results in the form increasing availability of products in smaller
towns and thereby generating additional business.
11
SALES
During the year, Federation's sales registered a growth of 1.4 percent to reach
Rs. 2,922.53 crores (Rs.29.22 billion) including consignment sales of Rs.1.53
crores (Rs.0.02 billion). Despite intense competition, sales value of Amul
Butter grew by 4.5 percent.
12
LIST OF PRODUCTS MARKETED
Bread Spreads:
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
13
Cheese Range:
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese)
Utterly Delicious Pizza
Mithaee Range (Ethnic sweets):
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Amul Amrakhand
Amul Mithaee Gulabjamuns
Amul Mithaee Gulabjamun Mix
Amul Mithaee Kulfi Mix
Avsar Ladoos
14
UHT Milk Range:
Amul Shakti 3% fat Milk
Amul Taaza 1.5% fat Milk
Amul Gold 4.5% fat Milk
Amul Lite Slim-n-Trim Milk 0% fat milk
Amul Shakti Toned Milk
Amul Fresh Cream
Amul Snowcap Softy Mix
Pure Ghee:
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee
Infant Milk Range:
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 (6 months above)
Amulspray Infant Milk Food
15
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 Standardised Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
Amul Saathi Skimmed Milk 0% fat
Amul Cow Milk
16
Curd Products:
Yogi Sweetened Flavoured Dahi (Dessert)
Amul Masti Dahi (fresh curd)
Amul Masti Spiced Butter Milk
Amul Lassee
Amul Ice creams:
Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza,
Roasted Almond)
Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh
Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
Sundae Range (Mango, Black Currant, Sundae Magic, Double
Sundae)
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,
Chococrunch, Megabite, Cassatta)
17
Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake
Magic)
Amul Chocolate
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Amul Fundoo
Amul bindaas
Amul Almondbar
18
Performance of Amul in last decade: -
Sales Turnover Rs (million) US $ (in million)
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504
19
THE CHOCOLATE
AMUL Chocolate is made from: -
Sugar
Cocoa Butter
Milk Solids
Chocolate mass
20
COMPOSITION:
Milk Fat 2%
Sugar 55%
Total Fat 32.33%
(Milk Fat + Cocoa Fat)
Cocoa Solids 7.5%
Milk Solids 20%
PRODUCT SPECIFICATION:
Meets all requirements under the PFA for boiled sugar confectionary.
21
22
Everyone has to go through marketing research process, what I have also
adopted. For better processing let us know what market research is:
“Market research is the systematic design, collection, analysis and reporting
of data and finding relevant to a specific marketing situation facing the
company.”
23
An effective marketing research involves five steps:
The methodology used in conducting the research work on Amul Products
with major emphasis on its sales and marketing strategies involve the
following steps:
Defining the problem and research objective.
Developing the research plan.
Collecting the information.
Analyzing the information.
Present the finding.
24
Why I have selected Amul only?
I have selected Amul for my summer internship because it is the company that
I wanted to do my training with. This is because Amul is a big brand that will
help in building up my career.
Defining the problem and deciding research objectives:
Defining the objective is the most important part of any study process. Proper
defining of the problem is a must for proceeding further with the research
process. The type of study to be carried out, the questions to be raised, the
sampling procedure to be followed, and the data to be collected, all depends
on a correct understanding of the problem. Also, by clearly focusing on the
real problem, the research job can be simplified and completed with the
minimum cost, effort and data.
Identified problem or the objectives of the research discussed in the report are:
25
1. Developing the research plan:
In this a plan was developed about how to collect the require information i.e.
whom to contact for gathering the relevant data. Data is the foundation of all
research. It is the raw material with which a researcher functions.
Therefore, it requires great care to select the sources of data. Data, or facts,
may be obtained from several sources. Data sources can either be primary or
secondary.
A. Secondary data:
The sources from which secondary data was collected:
Press releases of the company.
Newsletters and In-house journals.
Brochures and detailed descriptive leaflets
Magazines.
Websites such as www.amul.com and www.google.com. These were
the sources from which secondary data has been gathered. Most of the
26
information presented in this report was extracted from the above data
sources.
B. Primary data:
Collection of primary data was conducted by visiting the people personally for
the preparation of the report.
2. Research approach:
It means the way by which the information was collected. Visiting the
various places of Lucknow, getting the questionnaire filled by different
individuals.
Beside this, frequent visit to the retailers was of great help to conduct the
analysis and research work.
3. Contact methods:
Instrument or Data collected Forms: It is the method by which data is
gathered. It could be done through various instruments like
questionnaires, observations; getting information from the shopkeepers
was sufficient enough to conduct the study.
27
4. Collection of information:
The primary information was collected by face-to-face and direct
interviews with the retailers and the customers. They provide the relevant
information regarding the profile of the company as compared to the
other company in the Indian market.
The secondary sources of information were various web sites of the
companies, newspapers & magazines.
5. Analyzing the information:
The data collected was carefully analyzed. The research and analysis of
the information has been done on the basis of various sales and
marketing strategies adopted by the company during its tenure.
6. Reporting and conclusions and recommendations:
28
This is the most vital part of the work undertaken. After collection and
analysis of data, it was recorded in the form as prescribed. The major part
of the report is the findings. The finding also includes charts, tables and
diagrams etc. The report also mentioned the limitations of the project
undertaken. Then conclusion has been drawn out of the findings and
various recommendations have been given at the end of the report. Certain
tables on the basis of which the findings were made have been included in
the appendices section followed by the bibliography.
29
RESEARCH PROCESS
30
Individual Retailers One to One Retailers
retailer opinion interaction feedback
STARTING FOCUS MEANS ENDSPOINT
31
ANALYSIS
Analysis of the data (from the questionnaire) obtained from the
Retailers and consumers.
32
Table 1. Area covered for study.
Area Covered No. of Correspondent
Aashiyana 10
Alambagh 18
Krishna Nagar 12
Graph 1.
33
Table 2. The most preferred brand by the retailers for selling and consumers
to buy.
Brand No. of correspondence
Cadbury 20
Amul 5
Nestle 15
Graph 2
34
Table 3. The number of correspondent having knowledge of Amul product.
Product Knowledge No. of Correspondent
Yes 24
Not Much 16
Not Much 0
Graph 3.
35
Table 4. The number of correspondent having availability of the product.
Availability No. of correspondent
Very Good 12
Good 28
Bad 18
Graph 4.
Table 5.Represents whether the retailers are willing to keep Amul Product.
36
Particular No. of Respondent
Yes 14
Not Much 26
Graph 5.
Table 6. Attributes of product that are in the consumer’s mind while
purchasing.
37
Attributes No. of Respondent
Quality 30
Taste 22
Availability 38
Purity 10
Graph 6.
Table 7. Represents the Consumer source of information.
38
Types of Media No. of Respondent
Newspaper 54
T V 28
Radio 10
Friends 8
Graph 7.
39
FINDING
After analyzing all the data given by shopkeepers and consumers we found
certain key findings that is very important for our project.
1. Most of the retailers are not interested for keeping some of the Amul
products.
2. Retailers are not satisfied with the services provided by the company.
3.The sale of Amul product is average round the year.
4.The full varieties of products are not available on regular basis.
5. Prices of Amul products are almost as par customers need.
6. Retailers want more margins from Amul.
7. People were highly satisfied with product quality of Amul.
8. Retailers are unsatisfied with the replacement of unsold Amul products.
9. Distributors could not provide all type of varieties because of less stock.
10. Due to negligence of the company the customers of Amul are shifting
towards another company.
11. There is a tuff competition in the market and that’s why the market share
of Amul is dropping day by day.
40
SCOPE OF THE STUDY:
Amul is spreading its wings and widening its business horizon to reach and
serve customers at new centers in the year ahead. The company products are
backed by a highly motivated and technology driven team to achieve
customers need, product expertise and geographic reach.
The study is oriented towards the concept of different brands offered by Amul
and its competitors to its customers. The company has endeavored to move
fast in providing market solution, which maximize customer needs and
convenience, using multiple delivery channels in composing the agency
network, wholesalers and retailers.
41
STRENGTH
1. Brand name and Goodwill.
2. India’s major giant player in dairy products.
3. Wide product range.
4. Qualified marketing & sales force..
5. Maximum milk handling capacity (11.22million litres) per day.
6. High-quality products sold at reasonable prices.
42
WEAKNESS
1. Lack of availability of stock at various locations.
2. Lack of promotions (advertisements/offers/schemes).
3. Weak distributors service channel to retailers (in some areas).
4. Low profit margins to retailers.
43
OPPORTUNITIES
1. Retailers look for convenience and margin.
2. Promotions will pay good results, market is lacking with the same.
3. A great opportunity to cash the brand name once again by giving good
quality product.
4. Weak areas can be targeted to cover up the entire market as per the demand.
44
THREAT
1. Some customers are in the hands of retailers because the retailer enjoys
good profit margin from other competitor’s brand.
2. Psychological state of mind of retailers and consumers.
3. Old manufacturing date on packs is a major threat .
4. Competitors are cutting up the market share of ‘Amul Product.
5. Competitor brands are offering huge profit margin to retailers, whereas few
of them are selling at lower retail prices.
6. If delivery service is not improved it will result in reduction of sales of
‘Amul Chocolate’.
45
DISTRIBUTOR SERVICES THE RETAILERS
The service offered by the distributor varies from place to place. Some
areas are such that they get good delivery service but some of them are
lacking by the distributors services. More than half percentage of market is
getting once in a week service, whereas a big portion of market goes on its
own to purchase the chocolate because of no distributor’s service available
to retailers.
The following chart shows the distributor services the retailers of Amul
chocolate in the market:
46
47
OBSERVATION
1. About 54% of retailers are getting once in a week service by the
distributor or the sales boy comes to them once in a week. Retailers are
demanding for service, that it should be increased and should be made
more than once in a week.
2. 4% is the percentage of retailers who get service daily because of huge
sale of milk & butter. 4% of retailers are the major players in the sale ,
so they are getting good service.
3. 16% of retailers are getting twice a week service. As it is a small
percentage, they are getting service as per the demand.
4. 4% are getting thrice a week service which states that they are selling
but not too much as compared to the major players selling getting daily
service.
5. A big percent goes on different locations. 19% of retailers are
untouched by the services of distributors. This is the area where it needs
big improvement.
48
6. A very small percentage is getting service once in 15 days. This is due
to low sales.
49
PROBLEM FACED IN AMUL CHOCOLATE
The following chart shows the problems faced in Amul butter by the
retailers in the market:
Problem Faced in Amul Chocolate
0
10
20
30
40
50
60
70
Old
mfd
. Dat
e
Una
vaila
bilit
y &
Del
iver
yP
robl
em
Rep
lace
men
t
Low
Mar
gin
Offe
rs/S
chem
es
Series1
50
OBSERVATION
Old manufacturing date:
Amul Chocolate has been facing a major problem of old
manufacturing date on its packs. The packs which are available in
the market shows, the manufacturing date of February month during
the month of June.
Retailers complain about the response of customer for old
manufacturing date. Customers are demanding for fresh chocolate
but due to old manufacturing date in Amul chocolate, some of them
are switching over to other brands that are supplying fresh packs for
sale in the market.
Other competitor’s brands are supplying fresh packs with current month
manufacturing date. Amul chocolate is facing such problem, which is resulting
into the change of customer’s preference for chocolate at the point of purchase.
This shifting of preferences on other brands is resulting into ignorance of Amul
chocolate due to its manufacturing date.
51
Unavailability and delivery problem:
There is a demand of ‘Amul chocolate’ but due to unavailability of
chocolate the retailers are facing such problem.
There are some areas where there is a demand but there is no supply
available. Retailers go on their own because there is absence of delivery
service and supply available.
Retailers are complaining about the unavailability of stock demanded
by them. There is a limited supply of chocolate in respect to the current
market demand.
In interior areas there is an absence of proper delivery channel and
where it is available it is fulfilling the demand to a very less extent.
52
Replacement:
Few retailers are facing replacement problem, form (the dealers) where
they purchase. They have a complaint that the dealer shows very rude
behavior with them and never listen to their queries.
Low Margin:
Retailers are complaining about the profit margin offered to them on
‘Amul chocolate’. They are demanding for more profit margins because
the other competitor brands are offering double and even more than
double profit margins.
Retailers are giving more emphasis on other Chocolate brands because
of profit margins. They are trying to sell chocolate of other chocolate
brands to customers to earn more profit.
Offers/Schemes:
53
There is a complaint of offers and schemes; few chocolate brands are offering
some schemes on purchase of chocolate packs. The retailers are demanding as
well as complaining about the offers, in respect to other chocolate brands.
54
AREAS OF IMPROVEMENT
&
RECOMMENDATIONS
‘Unavailability of Amul Chocolate’ is main part. This part can be taken
into consideration for improving the service quality as well as ensuring
maximum availability of Amul chocolate at every possible location.
Right time to go for advertisement and promotion schemes. No such
major strategy is being followed by the competitor’s brand right now.
The company can draw the attention of customers and can take
advantage out of it.
Only milk and ice cream products are there for displays and
advertisements in the market. There is an absence of ‘Amul chocolate’
displays, danglers, posters, illuminated boards etc. to focus on the
‘Amul Chocolate’.
55
There is a great demand from retailer’s side that the company should
offer greater profit margins. As the profit margin in ‘Amul Chocolate’
is less as compared to the competitor’s brand, retailers are switching
and giving their preference to the competitor’s brand that is offering
maximum margins to them.
The old manufacturing date on packs is creating the shifting of
preference in consumer’s choice. The consumer wants fresh chocolate
and due to the old manufacturing date, the consumer opts for other
chocolate brands.
Relationship with retailers and company should be kept under a close
watch.
Salesmen should be given the responsibility to handle the retailer’s
grievances
Orders by the retailers should be executed in a proper manner to avoid
irregular availability.
Promotion activities should take into consideration in two different ways
a) Company should associate themselves with social events, b)
56
Company should use electronic as well as print media for their
advertisement.
Company should give special offers to retailers frequently.
Company should expand their business throughout the small towns.
Company should open exclusive Amul parlors and outlets in big
shopping Malls for promotion in higher segment.
There have been a lot of complaints about replacement policy of Amul.
Amul should try to improve its replacement policy and make it
somewhat liberal.
Amul should check the regular demand of the product and should supply
accordingly.
57
It was quenching time in the shops that use to deal in and some retailers
could not give proper attention towards our queries.
Some retailers did not co-operate with us as they thought; it is just
wastage of time.
There was no way to assess the reliability of the retailers. What ever
they said had to be assumed to be truth.
Category wise search for retailers was a terrific job in the market.
Interpretation of data may vary from individual depending on the
individual understanding the product features of the company.
Since all the products are not widely used by all the customers it is
difficult to draw realistic conclusions based on the survey.
58
59
ANNEXURE
1. Name of the Area/Markets Covered:
S.No. Market/Area S.No. Market/Area
1 Natkheda Road 11 Indra lok
2 Chandan nagar Market 12 Sindhu nagar
3 Talkatora Road 13 Manas nagar
4 Puran Nagar 14 Ramgagh Colony
5 Ram Nagar 15 Hind nagar
6 Sri Nagar 16 L.D.A Sec-E,F,D-1
7 Sringar nagar 17 Parag
8 Manak nagar 18 Aashiyana Sec-G
9 Barabirwa 19 Pawer house
10 Krishna nagar 20 Khajana Complex
60
Questionnaire
1. Brand(s) available in the shop:
Amul
Cadbury
Nestle
Others (if any) ______________
2. Offers and schemes available: (Type of Offer)
Amul _____________
Cadbury _____________
Nestle ___________
Others (if any) _____________ _____________
3.Display on the shop (Banners/Boards/Paintings etc.) (Type)
Amul _____________
Cadbury _____________
Nestle ___________
Others (if any) _____________ _____________
61
4. Profit margin offered by the company: Percentage (%)
Amul _____________
Cadbury _____________
Nestle ___________
Others (if any) _____________ _____________
5. How many times the distributor services the retailer:
Daily
Once a week
Twice a week
Thrice a week
Once in 15 days
6. Problem/type of complaint in Amul, if any:
62
Books:
Kotler Philip, “Marketing Management”
63
Kothari C.R., “Marketing Research”
Ramaswamy, “Marketing Management”
Websites:
http://www.amul.com
http://projectstoday.com/sitemap/dairy_products_database.asp
64
THANKING YOU
65