Final Rerport on Amul.omkar

7/29/2019 Final Rerport on Amul.omkar

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A

Project Report

On

Launch of AMUL PRO,Positioning and promotion

Master of Business Administration (Marketing)

Submitted in partial fulfilment of the requirements

for award of Master of Business Administration

Submitted by

Omkar Narain singh

2011-2013

Of

India Europe International Business School,

Navi Mumbai-400709


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ACKNOWLEDGEMENTS

Atthe outset, I would like to thank GCMMF AMUL India Ltd. for giving me anopportunity to do this project in their organisation to get my first ever

experience in corporate arena. I am grateful toMr. Vishal Anand ,

Mr. Vikas Mandalfor all their support guidance, helpful hints and valuable

suggestions during the course of this project.

I would also like to thank all the staff members ofGCMMF AMUL for their

constant support and all the people who directly and indirectly helped me

during the course of the project.

Last but by no means the least I would like to convey my special thanks toIEIBS College for giving me the opportunity to work on this project.


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TABLE OF CONTENTS

1. EXECUTIVE SUMMARY2. AN OVERVIEW3. HISTORY OF AMUL4. SUPPLY CHAIN OF AMUL5. REASON FOR SUCCESS6. INDIAN MALTED FOOD DRINK MARKET7. PRODUCT- AMUL PRO8. MARKET STRUCTURE9. ANALYSIS & INTERPRETATION ( WET SAMPLING)10.COMPETITIVE ANALYSIS11.CHALLANGES12.OPPORTUNITIES13.FINDINGS14.RECOMENDATION15.CONCLUSION16.LEARNINGS17.BIBLIOGRAPHY


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EXECUTIVE SUMMARY

The project has three different phases. The objectives of undertaking this

project were:

Promoting the brand through distributing display to retail shopsespecially where the sales of other brands like Bournvita etc have got

more sales.

Audit report of the product i.e., how much was the purchased by theretailer and how much got sold

Wet sampling of the product in different areas Awareness campaign in malls where we had to interact with the

people and make them aware about the product and its uses.


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AN OVERVIEW

The Amul model has proved to be robust and stood the test of time, for all the

Organised attempts at belittling and sabotage even from within. However, itschief protagonist has been the small or marginal farmer, engaged in dairying as

a subsidiary income activity. The basic underlying framework, thus, remains

one of livestock rearing and milk production being an adjunct to mainstream

crop agriculture.

Considering the sheer size to which it has grown today, there is a need to

rescue dairying from a narrow subsidiary/residual approach and view it as an

independent business in itself. The pure dairy farmer is perhaps an idea

deserving of support whose time has come.

Type: Co-operative

Founded in: 1946

Headquarters: Anand, Gujarat India

Industry: Dairy

Parent Company: GCMMF

Products: milk and related products

Revenue: Rs 2.5 billion (2012)

Employee: 2 million milk producersSlogan: The Taste of India

Amuls journey towards excellence is marked by some critical

understanding of the business environment in large emerging economies

like India where markets have to

bedeveloped by combining ef f i c iency re lated in i t iat ives wi th in

creasi ng the base of marginal suppliers and consumers. The essence of

AMULs efforts was as follows:


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It combined market and social development in an emerging

economy. It recognized the inter-linkages between various environments

that governed the lives of marginal milk farmers and the unmet needs of

consumers. It also changed the supply chain paradigm in order to reduce the

cost to the consumer while increasing the return to the supplier.

It realized that in order to achieve their objectives, it had to benefit a large

number of people both suppliers and consumers. While large scale had the

danger of failure du e to po or co nt ro l an d re qu ir ed mo re

res our ces, it a lso had the adv ant age of creating a momentum

that would be necessary to bring more people into the fold and

thereby help more suppliers and consumers.

It also realized that its goal could only be achieved in the long run

and this

requiredd e v e l o p i n g v a l u e s i n p e o p l e a n d p r o c e s s e s t h a t w

ere robust , repl i cable and transparent .

It also realized that the cooperative would not be independent and viable in

the face of competition if it were not financially sound. This implied

that AMUL had to develop distinct capabilities that would delivercompetitive advantage to its operations. Thus this is a brief overview of Amul

The taste of India

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 2.6 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. It is

also the world's biggest vegetarian cheese brand.


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GCMMF:

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food

products marketing organisation. It is a state level apex body of milkcooperatives 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.

Amul's product range includes milk powders, milk, butter, ghee, cheese, curd,

chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, 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.Amul is the largest food brand in India and world's Largest Pouched Milk Brand

with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6

million producer members with milk collection average of 10.16 million 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.Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man

behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the

Banaskantha Union, was elected chairman of GCMMF.


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ACHIEVEMENT:

Amul:Asias largest dairy co-operative was created way back in1946 to make

the milk producer self-reliant and conduct milk- business with pride. Amul has

always been the trend setter in bringing and adapting the most modern

technology to door steps to rural farmers.Amul created history in following areas:

a)First self-motivated and autonomous farmers organization comprising of

more than 5000000 marginal milk producers of Kaira District.

b) Created Dairy co-operatives at village level functioning with milk collection

centres owned by them.

c) Computerized milk collection system with electronic scale and computerized

accounting system.

d)The first and only organization in world to get ISO 9000 standard for its

farmers co-operatives.

e)First to produce milk from powder from surplus milk.

Amul is the live example of how co-operation amongst the poor marginal

farmers can provide means for the socio-economic development of the underprivileged marginal farmers.

Amul in abroad:

Amul is going places. Literally, after having established its presence in China,

Mauritius and Hong Kong, Gujarat Cooperative Milk Marketing Federation

(GCMMF), Indias largest milk cooperative, is waiting to flood the Japanese

market.

Then, GCMMF is also looking at Sri Lanka as one of its next export destinations.

Amul products are already available on shelves across several countries,

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

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

pouch milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and

buttermilk.


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HISTORY OF AMUL

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

with 250 litres of milk per day. In the year 1955 AMUL was established. In the

year 1946 the union was known as

KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION. This union

selected the brand name AMUL in 1955.

The brand name Amul means AMULYA. This word derived from the Sanskrit

word AMULYA which means PRICELESS. A quality control expert in Anandhad suggested thebrand name AMUL. Amul products have been in use in

millions of homes since 1946. AmulButter, Amul Milk Powder, Amul Ghee,

Amul spray, Amul Cheese, Amul Chocolates, AmulShrikhand, Amul Ice cream,

Nutramul, Amul Milk and Amulya have made Amul a leading foodbrand in

India. Today Amul is a symbol of many things like of the high-quality products

sold atreasonable prices, of the genesis of a vast co-operative network, of the

triumph of indigenoustechnology, of the marketing savvy of a farmers'

organization. And have a proven model for dairydevelopment (Generally

known as ANAND PATTERN).

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

were farming and selling of milk. That time there was high demand for milk in

Bombay. The main supplier of the milk was Polson dairy limited, which was a

privately owned company and held monopoly over the supply of milk at

Bombay from the Kaira district. This system leads to exploitation of poor and

illiterates farmers by the private traders. The traders used to beside the prices

of milk and the farmers were forced to accept it without uttering a single word.

However, when the exploitation became intolerable, the farmers were

frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a

leading activist in the freedom movement. Sardar Patel advised the farmers to

sell the milk on their own by establishing a cooperative union, Instead of

supplying milk to private traders. Sardar Patel sent the farmers to ShriMorarji

Desai in order to gain his co-operation and help. Shri Desai held a meeting at

Samarkhavillage near Anand, on 4th January 1946. He advised the farmers to

form a society for collection of the milk.


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These village societies would collect the milk themselves and would decide the

prices at which they can sell the milk. The district union was also form to

collect the milk from such village co-operative societies and to sell them. It was

also resolved that the Government should be asked to buy milk from the

union. However, the govt. did not seem to help farmers by any means. It gavethe negative response by turning down the demand for the milk. To respond to

this action of govt., the farmers ofKaira district went on a milk strike. For 15

whole days not a single drop of milk was sold to the traders. As a result the

Bombay milk scheme was severely affected. The milk commissioner of Bombay

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

decided to fulfil the farmers demand. Thus their cooperative unions were

forced at the village and district level to collect and sell milk on a cooperative

basis, without the intervention of Government. Mr. Verghese Kurienshowed

main interest in establishing union who was supported by Shri Tribhuvandas

Patel who lead the farmers in forming the Co-operative unions at the village

level. The Kaira district milk producers union was thus established in ANAND

and was registered formally on 14th December1946.

Since farmers sold all the milk in Anand through a co-operative union, it was

commonly resolved to sell the milk under the brand name AMUL. At the initial

stage only 250 litresof milk was collected every day. But with the growing

awareness of the benefits of the cooperativeness, the collection of milkincreased. Today Amul collect 11 lakhslitresof milk every day. Since milk was a

perishable commodity it becomes difficult to preserve milk for a longer period.

Besides when the milk was to be collected from the far places, there was a fear

of spoiling of milk. To overcome this problem the union thought out to develop

the chilling unit at various junctions, which would collect the milk and could

chill it, so as to preserve it for a longer period. Thus, today Amul has more than

150 chilling centresin various villages. Milk is collected from almost 1073

societies. With the financial help from UNICEF, assistance from the govt. of

New Zealand under theColombo plan, of Rs. 50millions for factory to manufacture milk powder and

butter was planned. Dr.Rajendra Prasad, the president of India laid the

foundation on November 15,1954. Shri Pandit Jawaharlal Nehru, the prime

minister of India declared it open at Amul dairy on November 20, 1955.


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G.C.M.M.F . INTRODUCTION

GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD., ANAND

Facts and Figures:-GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest foodproducts 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: 13 district cooperative milk producers Union

No. of Producer Members: 2.6 million

No. of Village Societies: 12,792

Total Milk handling capacity: 10.16 million litres per day

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Milk collection (Total - 2006-07): 2.38 billion litres

Milk collection (Daily Average 2006-07):6.5 million litres

Milk Drying Capacity: 594 Mts. per day

Cattle feed manufacturing Capacity: 2640 MTs per day

Sales turnover Rs (million) USD(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 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 427781 1050

2007-08 52554 1325

2008-09 67113 1504

2009-10 80053 1700

2010-11 97742 21422011-12 116680 2500


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List of Products Marketed:

Breadspreads:

Amul ButterAmul Lite Low Fat Breadspread

Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese

Amul Processed Cheese Spread

Amul Pizza (Mozzarella) Cheese

Amul Shredded Pizza CheeseAmul 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

UHT Milk Range:

Amul Shakti 3% fat Milk

Amul Taaza 1.5% fat Milk

Amul Gold 4.5% fat MilkAmul 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 GheeAmul Cow Ghee


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Infant Milk Range:

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 Standardised Milk 4.5% fat

Amul Slim & Trim Double Toned Milk 1.5% fat

Amul Saathi Skimmed Milk 0% fat

Amul Cow Milk

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, and Cassatta)


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Utterly Delicious (Vanila, Strawberry, Chocolate, Choco chips, Cake Magic)

Chocolate & Confectionery:

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose,

Chocolate)

Amul Kool CafAmul Kool Koko

Amul Kool Shake (Mango, Badam, and Banana)

Health Beverage:

Amul Shakti White Milk Food


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SUPPLY CHAIN OF AMUL

AMUL is a dairy cooperative in the western India that has been primarily

responsible, through its innovative practices, for India to become the worlds

largest milk producer. The distinctive features of this paradigm involves

managing a large decentralized network of suppliers and producers,

simultaneous development of markets and suppliers, lean and efficient supply

chain, and breakthrough leadership. Every day Amul collects 447,000 litres of

milk from 2.12 million farmers , converts the milk into branded, packaged

products , and del ivers goods worth Rs 6 crore (Rs 60 mi l l ion)to over 500,000 retail outlets across the country. To implement their

vision while retaining their focus on farmers, a hierarchical network

of cooperat ives was developed, th is today forms the robust su

pply chain behind GCMMFsendeavors. The vast and complex supply

chain stretches from small suppliers to large fragmented markets.

Management of th is network i s made more complex by the fact

that GCMMF is directly responsible only for a small part of the chain,

with a number of third party players (distributors,

retai lers and logist ics support providers) p lay ing large ro les .Managing th is supply chainef f i c ient ly i s cr i t i ca l as GCMMF's co

mpe titi ve posi tio n is driv en by low cons umer pri ces supported by

a low cost system of providing milk at a basic, affordable price.

The distribution Network:

Amul products are available in over 500,000 retail outlets across India

through its network of over 3,500 distributors. There are 47 depots with dry

and cold warehouses to buffer inventory of the entire range of products.

GCMMF transacts on an advance demand draft basis from its

wholesale dealers instead of the ch eq ue sys te m ad opt ed by ot her

major FMCG companies . This pract ice i s cons istent wi th

GCMMF's philosophy of maintaining cash transactions throughout the supply

chain and it also minimizes dumping.

Wholesale dealers carry inventory that is just adequate to take care

of the transit time from the branch warehouse to their premises. This just-

in-time inventory strategy improves dealers' return on investment (ROI). All

GCMMF branches engage in route scheduling and have dedicatedvehicle operations


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THE BUSINESS MODEL

From the very beginning, in the early 1950s, AMUL adopted the network as

the basic model for long-term growth.

The network explicitly includes secondary services to the farmer-suppliers.

Several of the entities in the network are organized as cooperatives linked ina hierarchical fashion.

Customers:

In comparison with developed economies, the market for dairy products in

India is still in an evolutionary stage with tremendous potential for high value

products such as ice cream, cheese etc. The distribution network, on the other

hand, is quite reasonable with access to rural areas of the country. Traditional

methods practiced in western economies are not adequate to realize the

market potential and alternative approaches are necessary to tap this market.

Suppliers:

A majority of the suppliers are small or marginal farmers who are

often illiterate, poor, and with liquidity problems as they lack direct access to

financial institutions. Again,traditional market mechanisms are not adequate

to assure sustenance and growth of thesesuppliers.

Third Party Logistics Services:In addition to the weaknesses in the basic infrastructure,logistics and

transportation services are typically not professionally managed, with little

regardfor quality and service. In addition to outbound logistics, GCMMF takes

responsibility for coordinating with the distributors to assure adequate

and timely supply of products. It also workswith the Unions in determining

product mix, product allocations and in developing production plans. The

Unions, on the other hand, coordinate collection logistics and support services

to the member farmers.

DISTRIBUTION NETWORK

Overall economic growth, higher disposable incomes, changing attitude of

consumers towards spending, various alternative consumption forms, and

emergence of Organized Retail throws up challenges and also opportunities to

the Distribution function of Federation. To keep pace with the changing market

scenario, in the previous years, we have increased our distribution network in

small towns. During this year Amul have divided markets into 14 segments to

ensure improved availability of our products. Improved distribution focus on

newly launched products was on top of Amul`s agenda. Amul product lines


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were divided into Main Line and New Line. Separate distributors were

appointed during the year exclusively for New Line. For specific product

categories also exclusive distributors have been appointed. Separate

manpower has been earmarked for each line.

To impart concepts of modern marketing amongst our distributors an initiativeof Marketing and Sales Management Program of our distributors have been

taken. In collaboration with a premier business school, a 2 days workshop has

been designed. All distributors of Federation will undergo this Training

Program.

Amul Yatra Program has been continuing to bring our channel partners to Amul

to give them an exposure to our cooperative institutions. This year our

emphasis was upon our newly appointed distributors and channel partners

from various business segments like Organized Retail, Caterers etc.


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GCMMFs Supply Chain

AMUL has the largest cold chain network in India (i.e. 18000 refrigerators) as

Compared to any other company. The chemical components of milk are water,

SNF and solids. Milk is very perishable product so it has to be consumed within24 hours. In order to avoid wastage AMUL converts the milk in to SNF and milk

solids by evaporating the water, which comprises up to 60-70% of milk

contents.

This is possible only if the distribution channel right from the producer to the

Consumer is well organized. It will be surprising to know that AMUL makes

even the Sarpanch to eat pizza i.e. it supplies pizzas even to rural market.

The role of distributors in our business process has never been more diverse or


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More important, as it is today. As a matter of fact, we consider our Distributor

to

Be the real Marketing Manager of our organization. To enhance business

Performance of our Distributors, a workshop on Marketing and Sales

ManagementWas designed in collaboration with a premier business school. The objective of

the

Entire initiative was to upgrade the knowledge of our Distributors in terms of

Contemporary Business Management Practices, so that they can perform well

not

Only as our business partner but also as Marketing Managers. During the year,

659

Distributors have undergone this programme in 39 locations. Cold Storage is an

Extremely essential component in the Federations distribution process.

Unfortunately, availability of efficient cold storage facilities is grossly

inadequate in our country. To cope up with the increasing need of suitable cold

stores closer to our markets, we have continued our endeavour of creating the

Federations own cold stores this year in various locations across the country.

We now own 24 states of- the art cold rooms of different sizes.


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REASON FOR SUCCESS

Low cost strategy Diverse product Mix Strong Distribution Network Technology and e-initiative Robust supply chain The brand value of Amul-quality, value of money, service and

availability.

The system succeeded mainly because it provides an assured market atremunerative price for producers milk besides acting as a channel to the

production enhancement package.

They ensured that the profit goes to the participants for their socio-economic up liftment and common good

Command of the rural milk producers the best of the technology andharness its fruit for betterment.

Even though, growing with time and on scale, it has remained with thesmallest producer members. In that sense, Amul is an example par

excellence, of an intervention for rural change.


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Every day Amul collects 8.4 million litres of milk from 2.79 million farmers(many illiterate), converts the milk into branded, packaged products, and

delivers goods thus achieving record annual sales turnover of $ 1504 million in

2008-09 making Amul as the largest food products marketing organization in

India with more than 60 products.

Introducing higher value products

beginning with liquid milk, GCMMF enhanced the product mix through the

progressive addition of higher value products while maintaining the desiredgrowth in existing products.

Despite competition in the high value dairy product segments from firms such

as Hindustan Lever, Nestle and Britannia, GCMMF ensures that the product

mix and the sequence in which Amul introduces its products is consistent with

the core philosophy of providing milk at a basic, affordable price.

Establishing best practices

A key source of competitive advantage has been the enterprise's ability to

continuously implement best practices across all elements of the network: the

federation, the unions, the village societies and the distribution channel.

In developing these practices, the federation and the unions have adapted

successful models from around the world. It could be the implementation of

small group activities or quality circles at the federation. Or a TQM program at

the unions. Or housekeeping and good accounting practices at the villagesociety level.

More important, the network has been able to regularly roll out improvement

programs across to a large number of members and the implementation rate is

consistently high.

Each meeting has its pre-set format in terms of Purpose, Agenda and Limit

(PAL) with a process check at the end to record how the meeting wasconducted. Similar processes are in place at the village societies, the unions


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and even at the wholesaler and C&F agent levels as well.

Examples of benefits from recent initiatives include reduction in transportation

time from the depots to the wholesale dealers, improvement in ROI of

wholesale dealers, implementation of Zero Stock Out through improvedavailability of products at depots and also the implementation of Just-in-Time

in finance to reduce the float.


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INDIAN MALTED FOOD

DRINK MARKET

The Indian malt based health beverages market was estimated at Rs 2200

Crore for the year 2009 with an average annual growth rate of 20-25

percent. The Indian malted health beverages segment has seen fierce

competition amongst its market participants in the recent past.

Manufacturers have revamped their portfolios and emerged with newer

and better functional variants for cognition and weight management.

The following figure illustrates the competitive structure in the Indian

malted health beverage market. The market is segmented in two distinct

tiers of competition with leading multinationals such as:

GlaxoSmithKline Consumer Health Care Ltd (GSKCH) and Cadbury (now a

fully owned subsidy of Kraft Foods Inc.) occupying the top rung. Tier 2

comprises medium-sized players such as Nestle, Heinz, Wockhardt (now a

part of Abbott Nutrition) etc. Apart from these multinationals, a few

domestic FMCG players are present as well, AMUL and Hindustan Unilever

Ltd (HUL) being the significant ones.


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PRODUCT- AMUL PRO

AMUL PRO is a malt based milk additive, which not only enhances

milks nutritive value but also makes a very tasty drink for people of all

ages, especially for kids. It has been launched in two packings jar pack

and refill pack. The jar pack is priced at Rs 150 whereas the refill pack is

of Rs 140. The price both the packs of AMUL PRO is 20-25% less from

its competitors.


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Key product attributes of AMUL PRO:

Whey protein:Muscle building and immunity

DHABrain development

27 essential nutrients:Complete wellness

This product can be consumed with both hot as well ascold milk

This product is 100% vegetarian product


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MARKET STRUCTURE


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The HFD category comprises of two sub-categories

Brown Powder and White Powder

While the white drink finds a bigger market in South and East, the brown one

makes its presence felt in North and West. White drinks account for almost

two-thirds of the market. Currently, brown drinks (cocoa-based) continue to

grow at the expense of white drinks like Horlicks and Complan.

The share of

brown drinks has increased from about 32% to 35% over the last five years.Cadburys Bournvita is the leader in the brown drink segment with a market

share of around 18%. India has a thriving Rs 2200-crore health food drinks

market, with many global players, like the market leader, GlaxoSmithKline

(Horlicks, Boost, Viva and Maltova), Cadbury (Bournvita), Nestle (Milo),

Heinz (Complan). Glaxo rules the Indian HFD market with a share of around

72%


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ANALYSIS & INTERPRETATION

(WET SAMPLING)

The task of wet sampling was given group wise. All the members were divided

into different groups and they had to do the wet sampling in different areas. In

this task we had to prepare AMUL PRO and give free samples in front of

schools. We decided to do the wet sampling at IDUBS HINDI, ENGLISH

BHANDUP (WEST).The response of children and their parents especially their

mothers were pretty impressive. They loved the drink and the brand name of

AMUL made it more attractive. The price of the product was the main point

of attraction for the housewives. We distributed almost 200 glasses of AMUL

PRO free sample and almost 160 loved the taste and were ready to buy the

product but most of them were looking for a small pack since in monsoon

season the product gets wasted.


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COMPETIVE ANALYSIS

The following figure illustrates key companies active in the cognitive malted

health beverage market and their respective brands and year of launch.

GSKCH is by far the largest player in this category with four of its major brands

- Horlicks, Boost, Viva and Maltova occupying nearly 72 percent of the total

market. Horlicks is the single largest brand with a market share of 53 percent

making it a clear leader. GSKCH is followed by Cadbury, which holds a market

share of 12 percent, with its brand Bournvita. Heinz India, AMUL, Nestle India,

Wockhardt (now a part of Abbott Nutrition) are some of the other significant

players. HUL and Dabur India are new entrants with their products Amaze and

Chywan Junior launched in select cities and metropolitans. The following chart

depicts market share split of participants in Indian malted health beverage

market.

Product nutrient profile, health claims, marketing strategies and prices are

some of the key competitive factors in this market. GSKCH has been an

aggressive player in media and print ad campaigns leading to widespread

awareness about product health benefits and ingredient usage in the same.


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Horlicks was previously promoted as a generic health drink for all ages leading

to a slump in sales for GSKCH. The company later abandoned the one-size-fits-

all positioning and launched a whole new product portfolio targeted at

specific consumer brackets. Media and print ads were developed keeping in

mind target consumers and these efforts benefited as sales of Horlicks

gradually started improving making it the single largest selling health beverage

brand.

Other players such as Heinz and Cadbury are also heavily advertising

their products nutrient labels, health claims and clinical trials that were

undertaken to prove these claims. With players such as HUL, Dabur entering

this space, competition is likely to intensify. The market might also see a

substantial fall in retail prices as participants compete on price points.


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CHALLENGES

The malted health beverage market has fared well as far as beverages for kids

are concerned. However, other niche segments, such as malted beverages

meant for women health or for cholesterol management, are not witnessing

much growth. The market is still plagued by low levels of consumer awareness

in some specific sectors.

Rural reach for such products is also low due to premium pricing. Consumers in

such markets have a conservative mindset and prefer traditional foods that are

home-made over processed packaged foods for their daily nutrients and

calorie requirements thus limiting the growth for such health beverages.

Lack of product differentiation in terms of ingredient usage also limits market

growth. Most of the malted health beverage products available off-the-shelf

have similar nutrient profiles and the same ingredients are being experimented

with. However, companies are increasingly spending on R&D and product

development and are likely to innovate new products with broader ingredient

coverage.


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Opportunities

Malted beverages have always been positioned as regular heath drinks

targeted at children and the elderly population; however, in the recent past

companies have focused on products for other consumer brackets as well. In

the process, a number of products were launched for women and kids for

cognition and general well being. This category of health product offers

immense opportunity since malted beverages are a part of every child's staple

diet. There is a rise in consumption amongst children for improvement in

concentration and memory power. Clinical studies suggest such malt based

products can be used for not just general well being but can also be a part of

post treatment nutrition in specific memory and brain disorder cases such as

Alzheimer's disease, Schizophrenia, etc. According to Indian Council of Medical

Research (ICMR), incidences of such brain disorders are on the rise in India due

to extreme stress and a disrupted lifestyle in urban Indians. This presents good

scope and opportunity for growth of these cognitive health drinks in the long

term.


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FINDINGS

The distribution channel needs to be improved since many orders gotcancelled because of unavailability of the product

Cut throat completion because of the presence of big players likeCadbury, GSK, Nestle

There is a huge scope for market penetration Price can be a big tool to compete in such market segment People are not much brand loyal in this segment of market since the

younger generation tastes keep on changing and they always want

something new

Retailers are too cautious to keep the product because of failure of someprevious product of AMUL in this market segment

Replacement policies for other products of AMUL is hampering theAMUL PRO promotion

Retailers are still not convinced that the product will be sold out The brand image of AMUL is a big advantage with the product


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Recommendation

The advertisement should be done more effectively since still people arenot much aware about the product

The distribution channel needs to be improved Distributor needs to be educated about the new products of the

company

The advertisements should be designed in such a way that targetaudience could connect with the product very easily

Small packs of AMUL PRO should be launched The product needs a brand ambassador since it is new in market and

since India is a cricket crazy nation therefore a cricket may be the

favourite choice


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CONCLUSION

The malted health beverages market is currently worth INR 2200 Crore with

strong double digit growth rates. This segment is poised for wide expansion in

terms of both product and infrastructure. The FMCG giants have now started

to develop functional foods, which are not of conventional origin: for instance,

beverages that are sugar-free, low cholesterol, foods such as granola bars, etc.

The functional and health trend in processed foods is fast catching up in India.

The domestic malted health beverage and overall functional foods market is

expected to witness exponential growth in the next 4-5 years with increasing

products available off-the shelf, new entrants in the form of FMCG

multinationals and domestic business groups venturing into the market and

also an increasing consumer base. There is a distinct change in the regulatory

space as well with organizations such as Foods Safety and Standards Act

(FSSAI) framing set rules for governing production, labelling, packaging and

marketing of such new age products. Increasing consumer awareness coupled

with market development efforts from manufacturers and government

agencies is likely to pave way for better growth in this space.


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Learnings

The project helped me to know deep about food malt beverage industry and

how the strategies are applied at grass route level. It was a big learning curve

in my carrier since I had never interacted directly with retailers to sell our

product. I learned how to apply the theoretical concepts in practical scenario

like branding, product positioning, sales and sampling. I learned how the

distribution channel of a company works. What are difficulties faced by the

company in the launch of new product and what measures they take to

overcome from it.

Since it was my first ever experience in corporate arena,

everyone in the company supported me and appreciated my efforts.


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BIBLIOGRAPHY

www.amul.com

www.google.com

www.wikipedia.com
http://www.amul.com/http://www.amul.com/http://www.google.com/http://www.google.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.google.com/http://www.amul.com/

Documents

Final Rerport on Amul.omkar