Upload
nareshvemisetti1731
View
224
Download
0
Embed Size (px)
Citation preview
7/27/2019 Project Draft (1)
1/46
Page | 1
1.INTRODUCTION
The Indian dairy market is experiencing rising demand due to various driving factors which in
turn is providing immense opportunities to manufacturers to grow and operate in the market
lucratively.
The Indian food and beverage sector is huge and highly competitive in nature. The industry
comprises of several sub-sectors such as fruits & vegetables, meat & poultry, dairy, marine
products, grains and consumer foods. Dairy Industry plays an important role in the socio-
economic development of the nation by generating huge rural employment as well as providing
cheap and nutritional food to the vast population. Though the dairy market in India is dominated
by the unorganized sector, the organized sector has shown remarkable growth last few years.Fordairy products, quality standards laid by FSSAI have to be followed by the industry players.
Various government policies that have been formulated for the food processing sector such as
FDI, tax benefits and export promotions are applicable for the dairy category as well.
India has one of the largest livestock populations in the world. Fifty percent of the buffaloes and
twenty percent of the cattle in the world are found in India, most of which are milk cows and
buffaloes. Dairy development in India has been acknowledged the world over as one of modern
Indias most successful developmental programmer. Today, India is the largest milk producing
country in the world. Milk and milk products is rated as one of the most promising sectors which
deserves appreciation in a big way. When the world milk production registered a negative
growth of2 percent, India performed much better with 4 percent growth. The total milk
production is over 72 million tones and the demand for milk is estimated at around 80 million
tones. By 2011, the value of Indian dairy produce is expected to be Rs. 1,000,000 million. In the
last six years foreign investment in this sector stood at Rs. 3600 million which is about one forth
of the total investment made in this sector. Manufacture of casein and lactose, largely being
imported presently, has good scope. Exports of milk products have been decimalized.
The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat,
Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products
is concentrated in these milk surplus States.
7/27/2019 Project Draft (1)
2/46
Page | 2
OBJECTIVES
The main of the project is to review the different distribution systems followed by the
various corporate for the coverage of their products for pharmacies and chemist outlets
To allow suggest the GCMMF on which products they need to focus for the pharmacies andwhich channel gives the profit margin
To all also know which products are being available in the pharmacies
THE STUDY WOULD INCLUDE
The survey is mainly based on the two products from GCMMF which are being focused
through the pharmacies
The different products available in the GCMMF
Understanding the distribution channel which are followed by various corporate and also
the best channel which GCMMF should follow
METHODOLOGY
PRIMARY DATA
The primary data is collected from the medical shops at Hyderabad and also with interacting
which marketing team and also with the distribution team and the channel member of GCMMF
employees
SECONDARY DATA
The secondary data is taken from the web sites of GCMMF and also from the Various and
dairy sector report
Sample size: 100 medical shops
7/27/2019 Project Draft (1)
3/46
Page | 3
2.THE DAIRY INDUSTRY IN INDIA
India being the worlds largest producer and consumer of dairy products, India represents one of
most lucrative dairy markets .Indian Dairy Market Report & Forecasts 2011-2016 provides an
analytical and statistical insight into the Indian Dairy market.
In India, the dairy sector plays an important role in the countrys socio -economic development,
and constitutes an important segment of the rural economy. Dairy industry provides livelihood to
millions of homes in villages, ensuring supply of quality milk and milk products to people in
both urban and rural areas. With a view to keeping pace with the countrys increasing demand
for milk and milk products, the industry has been growing rapidly.
The government is taking several initiatives and running plans and programs like National Diary
Plan and Intensive Dairy Development Program to meet the growing demand for milk in the
country. Our report talks about such schemes, and government regulations to present an
objective and balanced picture of the industry.
India derives nearly 33% of the gross Domestic population from agriculture and has66% of
economically active population, engaged in agriculture. The share of livestock product is
estimated at 21% of total agriculture sector. The fact that daring could play a more constructive
role in promoting rural welfare and reducing poverty is increasly being recognized. Milk
production alone involves more than 70 million producers, each raising one or two cows/
buffaloes primarily for milk production. The domesticated water buffalo is one of the gentlest of
all farm animals, hence it can be breaded easily. The dairy sector offers a good opportunity to
entrepreneurs in India. India is a land of opportunity for those who are looking for new and
expanding markets. Growth prospects in the dairy sector are very bright.
As the worlds largest producer and consumer of milk products, India represents one of the
worlds most lucrative dairy markets. IMARC Group, one of the worlds leading research and
advisory firms, finds in its new report entitled Indian Dairy Market Report & Forecasts 2012-
2017 that driven by a strong growth in both urban and rural demands, the market for milk
products in India is expected to surpass US$ 163 Billion by 2017.
an updated and far more extensive and analytical version of our popular 2011 study, provides
and draws upon a comprehensive analysis of every major dairy segment in India. The study,
7/27/2019 Project Draft (1)
4/46
Page | 4
which has been undertaken using both desk research and two waves of qualitative primary
research, has analyzed three aspects of the Indian dairy market.
The first section quantifies the Indian dairy market into fourteen major segments and investigates
the current and future opportunities in each of these segments. The second section provides an
in-depth understanding of dairy consumption patterns among Indian consumers and the potential
of value added dairy products. The third section investigates into the usage of natural coloration
in dairy products and evaluates their current and future potential.
Indian dairy sector has evolved from rags to riches....
Production 123 million tonnes in CY2011 (USDA)
Estimated to reach 170 million tonnes by 2020
Grew at CAGR of 3.7 % in the last decade*
Milk is Indias largest agricultural commodity
UP contribute to about 18% of milk production
7/27/2019 Project Draft (1)
5/46
Page | 5
In response to growing demand, Post forecasts CY2012 fluid milk production at a record 127
million tons, approximately 4.5 percent more than CY 2011 which is consistent with national
estimates.
7/27/2019 Project Draft (1)
6/46
Page | 6
This estimate may fluctuate slightly in response to fodder availability and overall monsoon
conditions in 2012. CY 2011 production of milk is estimated at 121.50 million tons, around 4
percent up over CY 2010. CY 2010 fluid milk production is kept unchanged at 117 million tons
reflecting strong monsoon and related good fodder availability. Production of non-fat dry milk
(NFDM) is largely a function of flush season fluid milk availability and lean season demand. As
that India continues to take measures to increase the quantity of milk powders available to Indian
consumers, NFDM production is expected to grow in correlation with increased fluid milk
output. (In 2011, India prohibited NFDM exports as well increased the quota on duty-free milk
powder imports from 30,000 metric tons to 50,000 metric tons- see TRADE section).
Additionally, industry reports that prevailing strong milk prices are encouraging NFDM
production for later release during the lean season. Given these conditions, CY 2012 production
of NFDM is forecast to increase to Dairy, Butter Dairy, Milk, Nonfat Dry Dairy, Milk, Fluida
record 450,000 metric tons. The CY 2011 production estimate for NFDM has been kept
unchanged at 410,000 metric tons. Post has revised NFDM production estimates for CY 2010 up
marginally by 5,000 metric tons to 380,000 metric tons, reflecting good fluid milk production on
account of a favorable 2010 monsoon. Post forecasts 2012 production of combined butter and
ghee (clarified butter) to increase by 4 percent over 2011 to 4.50 million metric tons, following
Indias rising production trend. Post has revised the 2011 production estimates of butter down
5000 metric tons to 4.32 million metric tons in response to the 6000 metric ton carry over from
2010. CY 2010 production of butter has been revised marginally upwards by 7,000 metric tons to
4.16 million metric tons reflecting good milk production on account of a favorable 2010
monsoon.
PRODUCTION POLICY
Indian dairy policy is currently focused on increasing milk output. The NDDB has created a
National Dairy Plan, (NDP) with the overall objective of meeting Indias growing demand for
dairy products and putting India on the path to sustainability in milk production. Although the
NDP is not yet finalized, it is envisaged to span over a 15-year period with an estimated outlay of
more than 3 billion U.S. dollars in various phases.
7/27/2019 Project Draft (1)
7/46
Page | 7
The plan aims to increase milk production to 180 million tons by 2020, bringing about a second
White Revolution in India. (The White Revolution was the program which oversaw the creation
of Indias milk marketing system and helped India to become one of the worlds largest dairy
producers). The plan further envisages this transformation to occur through activities including
improved artificial insemination (AI) and breeding services, improved cattle feed manufacturing,
and expanding/strengthening milk processing infrastructure. The plan also proposes to enhance
the share of milk from organized sector in total marketable surplus. The Government of India
(GOI) is exploring World Bank assistance to bring down the cost to the government. In addition
to the National Dairy Plan, the Department of Animal Husbandry, Dairying and Fisheries
(DAHD), Ministry of Agriculture, implemented four schemes in the dairy sector during 11th
plan period (2007-2012).
REGULATION OF MILK AND MILK PRODUCTS IN INDIA
The new Food Safety and Standards Authority of India (FSSAI) is charged with regulating food
safety in India. Under the mandate of the Food Safety and Standards act of 2006, the FSSAI has
consolidated various food laws, including the Milk and Milk Products Regulation (MMPR)
2009, into one umbrella regulation known as the Food Safety and Standards Regulation, 2011.
The Food Safety and Standards Rules and Regulation 2011 was enforced nationwide on
August5, 2011. Among various food products, the regulation also regulates the production,
distribution, and supply of milk products; establishes sanitary requirements for dairies,
machinery, and premises; and sets quality control standards for milk and milk products.
Although minimal changes are expected to Indias existing food safety laws, the Food Safety and
Standards Regulation proposed a new definition for cheeses which would prohibit the use of
animal-derived rennet. These regulations apply equally to domestic and imported food. authority
shall be an officer of the concerned state government or union territory. Dairy units handling
more than 200 TLPD of milk or 10,000 metric tons of milk solids per annum shall be registered
by the Central Registering Authority. Under the new food safety law, food business operators are
expected to assume their responsibility for safety in production, import, distribution, and sale of
food.
7/27/2019 Project Draft (1)
8/46
Page | 8
CONSUMPTION
According to NDDB, total dairy production is estimated to be growing at 4 percent annually
while demand for milk is growing at approximately twice the growth rate of production. The
major factors driving growth in milk consumption are increased demand due to population
growth, growing household incomes, increased demand for value-added milk products, and the
preference for fluid milk as a principal protein source across all age groups in India. Given
Indias strong demand for dairy products, India consumes nearly all the dairy and dairy products
it can produce. Indian consumption of nonfat dry milk is forecast to surpass Indian production in
2012, reflecting the small but growing deficit in dairy production and the need for increased
supplies.2012 fluid milk consumption is set to match 2012 fluid milk production. Butter
consumption exceeded domestic production in 2010 and is forecast to do so again in 2011 and
2012.
PROCESSING
The Indian processed dairy sector is expanding. Industry estimates suggest around 15-percent
growth in the processed dairy segment in next five years. Sources indicate that growth in the
processed dairy sector is being driven by an expanding middle class which is demanding a
greater diversity of choices. Growth is further being enabled by the expansion of modern retail
facilities, especially in tier 1 cities .Products such as yogurts, ice creams, dairy drinks, and
western-style cheeses, as well as dairy products with enhanced nutritional properties are growing
in popularity. Given this scenario, the processed dairy sector is likely poised for growth,
although this will rely greatly on the stability of dairy supply as well as the expansion of
necessary infrastructure and the cold chain system.
TRADE POLICY
India allows imports of milk and milk products without any quantitative limitations, although
tariff rate quotas apply and import permit is required. NFDM imported above the tariff rate quota
attracts a basic duty of 60 percent while above quota imports of butter oil are charged a basic
duty of 40 percent. Historically, India has only imported limited quantities of milk powder and
butter because domestic production has been able to meet general requirements. As incomes and
population grow, (and consequently consumption), India may require additional supplies and
imports of butter and NFDM, absent significant domestic production growth.
7/27/2019 Project Draft (1)
9/46
Page | 9
India consistently exports milk powders, (particularly casein), although these exports constitute
a small percentage of Indias total production.
EXPORT
Post has revised CY 2011 estimates for export of NFDM to zero based on Indias prohibition of
milk powder exports. Specifically, on February 18, 2011, the GOI prohibited the export of milk
powders (including skimmed milk powder, whole milk powder, dairy whitener and dairy-based
infant formula, casein and casein products) in order to help control rising Indian dairy prices,
which have risen by about 20 percent in the retail market and by 12 per cent at the wholesale
level over the last year. The move to ban exports came ahead of the summer season, which
generally witnesses a dip in milk production. According to industry sources, it is believed that
milk prices will continue to rise over the short to medium term due to sustained demand and
increasing production costs resulting in a possible extension of the export ban for a second year
in 2012. Post therefore forecasts nil exports of NFDM in CY 2011 and 2012. Exports of
NFDM for CY 2010 have been revised upwards to 18,000 metric tons, reflecting strong export
demand, coupled with good production. Prior to banning milk powder exports in 2011, India
exported various categories of dairy products including milk powders, baby foods, butter and
other fats, casein, milk and cream, cheese, and whey products. Milk powder exports constituted
more than 40 percent of the total dairy exports in volume terms during CY 2010, followed by
casein and its derivatives (21 percent), butter and other fats (19percent), and other processed
dairy products. India exported around 50 percent of its total dairy product shipments to
Bangladesh, Nepal, the United States, U.A.E, and Singapore during CY 2010.
IMPORTS
Due to strong domestic demand and concern over seasonal shortages, the GOI has allowed
NDDB duty-free imports of NFDM up to 50,000 tons and 15,000 tons of butter and butter oil at
zero duty during 2011-12 (April-March). While only 30,000 metric tons of NFDM was allowed
duty-free in 2010, the quota was expanded in spring 2011 to 50,000 metric tons. Thus, post has
revised CY 2011 NFDM imports to 45,000 metric tons.
7/27/2019 Project Draft (1)
10/46
Page | 10
As that there is no indication at this point that NFDM duties will again be expanded to 50,000
metric tons in 2012, post forecasts 2012 NFDM imports at 30,000 metric tons. CY 2010 NFDM
imports have been revised down by 5,000 metric tons to 20,000 metric tons, based on revised
GOI export statistics.
India typically imports butter oil. Production, supply and demand estimates (PSD) are shown in
butter, adjusted to its butter oil equivalent. CY 2012 butter imports are forecast at 20,000 metric
tons assuming that the tariff rate quota (TRQ) will remain at zero duty for 15,000 metric tons.CY
2011 butter imports are revised upwards to 20,000 metric tons against a previous estimate of
5,000 metric tons, as the government rolled over last years (April 2010-March 2011) zero duty
TRQ of 15,000 metric tons of butter, butter oil and anhydrous milk fat to the current year (April
2011-March 2012). CY 2010 imports increased to 25,000 metric tons following the
governments liberalization of duty free imports of butter oil in March 2010. Duty free imports in
2010 were allowed due to concerns about a deficient monsoon and expected significant
production drops which never materialized in 2010.
7/27/2019 Project Draft (1)
11/46
Page | 11
3. COMPANY PROFILE
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims
to provide remunerative returns to the farmers and also serve the interest of consumers by
providing quality products which are good value for money Amul (Anand Milk-producers Union
Limited), formed in 1946, is a dairy cooperative movement in India. The brand name Amul,
sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control
expert in Anand. It is a brand name managed by an apex cooperative organization, Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some
2.41 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.
AMUL PATTERN
It 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 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. Situation of farmers Over five
decades ago, the life of an average farmer in Kheda District was very much like that of his/her
counterpart anywhere else in India. His/her income was derived almost entirely from seasonal
crops. The income from milk buffaloes was undependable. Milk producers had to travel long
distances to deliver milk to the only dairy, the Polson Dairy in Anand often milk went sour,
especially in the summer season, as producers had to physically carry milk in individual
containers. Private traders and middlemen controlled the marketing and distribution system for
the milk. These middlemen decided the prices and the off-take from the farmers by the season.
As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often,they had to sell cream and ghee at throw-away prices. In this situation, the private trader made a
killing. Moreover, the government at that time had given monopoly rights to Polson Dairy
(around that time Polson was the most well known butter brand in the country) to collect milk
7/27/2019 Project Draft (1)
12/46
Page | 12
from Anand and supply to Bombay city in turn (about 400 kilometers away). India ranked
nowhere amongst milk producing countries in the world in 1946.
Gradually, the realization dawned on the farmers with inspiration from then nationalist leaders
Sardar VallabhbhaiPatel (who later became the first Home Minister of free India) and Morarji
Desai (who later become the Prime Minister of India) and local farmer, freedom fighter and
social worker Tribhovandas Patel, that the exploitation by the trader could be checked only if
they marketed their milk themselves. Amul was the result of the realization that they could pool
up their milk and work as a cooperative.
THREE-TIER AMUL MODEL
The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy
Cooperative Society at the village level affiliated to a Milk Union at the District level which in
turn is further federated into a Milk Federation at the State level. The above three-tier structure
was set-up in order to delegate the various functions, milk collection is done at the Village Dairy
Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products
Marketing at the State Milk Federation. This helps in eliminating not only internal competition
but also ensuring that economies of scale is achieved. As the above structure was first evolved at
Amul in Gujarat and thereafter replicated all over the country under the Operation Flood
Programmed, it is known as the Amul Model or Anand Pattern of Dairy Cooperatives.
Responsible for Marketing of Milk & Milk Products Responsible for Procurement & Processing
of Milk Responsible for Collection of Milk Responsible for Milk Production
1 VILLAGE DAIRY COOPERATIVE SOCIETY (VDCS)
The milk producers of a village, having surplus milk after own consumption, come together and
form a Village Dairy Cooperative Society (VDCS). The Village Dairy Cooperative is the
primary society under the three-tier structure. It has membership of milk producers of the village
and is governed by an elected Management Committee consisting of 9 to 12 elected
representatives of the milk producers based on the principle of one member, one vote. The
village society further appoints a Secretary (a paid employee and member secretary of the
Management Committee) for management of the day-to-day functions. It also employs various
people for assisting the Secretary in accomplishing his / her daily duties. The main functions of
the VDCS are as follows:
7/27/2019 Project Draft (1)
13/46
Page | 13
Collection of surplus milk from the milk producers of the village & payment based on quality
& quantity
Providing support services to the members like Veterinary First Aid, Artificial Insemination
services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting training
on Animal Husbandry & Dairying, etc.
Selling liquid milk for local consumers of the village
Supplying milk to the District Milk Union Thus, the VDCS in an independent entity managed
locally by the milk producers and assisted by the District Milk Union.
2 DISTRICT COOPERATIVE MILK PRODUCERS UNION
(MILK UNION)
The Village Societies of a District (ranging from 75 to 1653 per Milk Union in Gujarat) having
surplus milk after local sales come together and form a District Milk Union. The Milk Union is
the second tier under the three-tier structure. It has membership of Village Dairy Societies of the
District and is governed by a Board of Directors consisting of 9 to 18 elected representatives of
the Village Societies. The Milk Union further appoints a professional Managing Director (paid
employee and member secretary of the Board) for management of the day-to-day functions. Italso employs various people for assisting the Managing Director in accomplishing his / her daily
duties. The main functions of the
Milk Union are as follows:
Procurement of milk from the Village Dairy Societies of the District
Arranging transportation of raw milk from the VDCS to the Milk Union.
Providing input services to the producers like Veterinary Care, Artificial Insemination
services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc.
Conducting training on Cooperative Development, Animal Husbandry & Dairying for milk
producers and conducting specialized skill development & Leadership Development training for
VDCS staff & Management Committee members.
7/27/2019 Project Draft (1)
14/46
Page | 14
Providing management support to the VDCS along with regular supervision of its activities.
3 STATE COOPERATIVE MILK FEDERATION
The Milk Unions of a State are federated into a State Cooperative Milk Federation. The
Federation is the apex tier under the three-tier structure. It has membership of all the cooperative
Milk Unions of the State and is governed by a Board of Directors consisting of one elected
representative of each Milk Union. The State Federation further appoints a Managing Director
(paid employee and member secretary of the Board) for management of the day-to-day functions.
It also employs various people for assisting the Managing Director in accomplishing his daily
duties. The main functions of the Federation are as
follows:
Marketing of milk & milk products processed / manufactured by Milk Unions.
Establish distribution network for marketing of milk & milk products.
Arranging transportation of milk & milk products from the Milk Unions to the market.
Creating & maintaining a brand for marketing of milk & milk products (brand building).
Providing support services to the Milk Unions & members like Technical Inputs, management
support & advisory services.
Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.
PRODUCTS IN AMUL
Bread Spreads, Milk Drinks, Powder Milk, Fresh Milk, Cheese , For Cooking ,Desserts ,Health
Drink
Emerging Dairy Markets
Food service institutional market: It is growing at double the rate of consumer market Defense market: An important growing market for quality products at reasonable prices Ingredients market: A boom is forecast in the market of dairy products used as raw
material in pharmaceutical and allied industries
7/27/2019 Project Draft (1)
15/46
Page | 15
Parlour market: The increasing away-from-home consumption trend opens new vistasfor ready-to-serve dairy products which would ride piggyback on the fast food revolution
sweeping the urban India.
India, with her sizable dairy industry growing rapidly and on the path of modernization, would
have a place in the sun of prosperity for many decades to come. The one index to the statement isthe fact that the projected total milk output over the next 15 years
The competitors Amul products are different the competitor for milk powder is Nestle and were
as for the fresh milk the local brands and for the ice creams they are many competitors . The
competitors varies from product to product in the Amul product line .
OBJECTIVES AND BUSINESS PHILOSOPHY OF GCMMF
The main stakeholder of GCMMF was the farmer member for whose welfare, the GCMMF
executives felt, it existed. Unlike other organizations, our objective is not to maximize our profit.After all, the farmers themselves are the owners of the Federation. We are restricted, by our bye-
laws, to giving a maximum of 12 percent on the paid share capital as the dividend. So we are
more interested in giving the best price for the farmers for their milk than in making a large
profit. Thus we look at the price given to our suppliers as not a cost but as an objective.
GCMMF had, as its main objective, carrying out activities for the economic development of
agriculturists by efficiently organizing marketing of milk and dairy produce, veterinary
medicines, vaccines and other animal health products, agricultural produce in raw and/or
processed form and other allied produce6. This was to be done through:
Common branding
Centralized marketing
Centralized quality control
Centralized purchases and
Pooling of milk efficiently.
GCMMF had declared, as its business philosophy, the following:
To serve the interests of milk producers
7/27/2019 Project Draft (1)
16/46
Page | 16
To provide quality products that offer the best value to consumers for money spent.
The biggest strength of GCMMF was the trust it had created in the minds of its consumers
regarding the quality of its products. GCMMF, and its brand Amul, explained Mr. Vyas, stood
for guaranteed purity of whatever products it had produced. Adulteration was simply not done in
any of its products. In India, where such trust was hard to come by, this could provide a central
anchor for GCMMFs future business plans, said Mr. Vyas.
GROWTH AND FINANCIALS OF GCMMF
In the recent years, GCMMF had been registering an annual growth of nearly 20 percent. Exhibit
6 shows the growth rate from 1984-85 till 1998-99. The salient financial data of GCMMF over
the years 1993-94 till 1998-99.
The sales of the milk and milk related products depended on the procurement of milk that could
be done. The growth in milk procurement by GCMMF from 1983-84 till 1998-99. The rate of
growth in milk procurement was in the region of five percent per year.
The total milk production in India was in the region of 86 million tonnes per year for the growth
in the total milk production in India). It was believed that less than half (about 46 percent of this
was procured by organized agencies, the rest being retained by farmers for their own
consumption at home or retailed by themselves or small contractors).
GCMMF IN THE YEAR 2000
The new Millennium presented GCMMF with new opportunities as well as uncertainties. The
milk market appeared to be getting saturated from the supply side. The rate of growth of milk
production was around 6 percent per annum. The demand, however, could be expected to grow
at 8 to 10 percent per annum, according to industry experts. The per capita milk consumption in
India still being around 225 grams per day, as compared to more than 600 grams in many other
countries, there was scope for increasing the consumption of milk still further. But the problems
on the supply side were formidable. The yield of Indian cattle, at about 1000 kg per lactation per
animal, still was much lower than in other dairy countries such as New Zealand and Holland
7/27/2019 Project Draft (1)
17/46
Page | 17
(about two tons), and an increase was possible, but presented a challenge. But at least in the
medium run, the supply side would pose constraints in the development of the milk market. Said
Opportunities abounded in the market, both domestic as well export. GCMMF had been making
major efforts to make its brand known in many countries, including U.S.A., where it had entered
into an alliance with Kanan Dairy Products, Illinois to market its products. It had established
offices and agencies in New Zealand, Gulf, Sri Lanka and Australia. It had entered into E-
commerce in a fairly big way, with all its products available for ordering through the net in India
as well as abroad. Through its TV programmers in the Star TV, it hoped to increase the brand
awareness in the SAARC countries.
7/27/2019 Project Draft (1)
18/46
Page | 18
4 AMUL MARKETING AND DISTRIBUTION
STRATEGIESPRICING STRATEGIES
At the time Amul was formed, consumers had limited purchasing power, and modest
consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price
strategy to make its products affordable and attractive to consumers by guaranteeing them value
for money. 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 butter
at a basic, affordable price to appeal the common masses. This helped AMUL BUTTER to create
its brand image in the household sector of the society. Rs.87 Rs.18
PLACE
A Global Distributor GCMMF is India's largest exporter of Dairy Products. It has been accorded
a "Trading House" status. GCMMF has received the APEDA Award from Government of India
for Excellence in Dairy Product Exports for the last 9 years. Currently Amul has 2.41 million
producer members with milk collection average of 5.08 million liters/day. Besides India, Amulhas 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.
PROMOTION
Initial Promotional Strategy The butter, which had been launched in 1945, had a staid, boring
image, primarily because the earlier advertising agency which was in charge of the account
preferred to stick to routine, corporate ads. They didnt help in creating a brand image of AMUL
butter which was their then motive.
7/27/2019 Project Draft (1)
19/46
7/27/2019 Project Draft (1)
20/46
Page | 20
THE MAIN MARKETING MODEL FOR AMUL
The Amul Model of dairy development is a three-tiered structure with the dairy cooperative
societies at the village level federated under a milk union at the district level and a federation ofmember unions at the state level.
7/27/2019 Project Draft (1)
21/46
Page | 21
The Amul model has helped India to emerge as the largest milk producer in the world. More than15 million milk producers pour their milk in 1,44,246 dairy cooperative societies across the
country. Their milk is processed in 177 District Co-operative Unions and marketed by 22 State
Marketing Federations, ensuring a better life for millions.
7/27/2019 Project Draft (1)
22/46
Page | 22
ADVERTISING
Its advertising has also started using tongue-in-cheek sketches starring the Amul baby
commenting jovially on the latest news or current events. This formed a large chunk of the
collective memory of us Indians. We grew with them as the ads grew with us. They are quirky,
poke fun at no one in particular and are pure eye-candy!
It almost admire the speed with which the ad-people come up with copy and illustration for the
ads that change every few days!! From the Sixties to the Nineties, the Amul ads have come a
long way. While most people agree that the Amul ads were at their peak in the Eighties they still
maintain that the Amul ads continue to tease a laughter out of them.
The Amul ads are one of the longest running ads based on a theme, now vying for the Guinness
records for being the longest running ad campaign ever. Where does Amul's magic actually lie?
Many believe that the charm lies in the catchy lines. That we laugh because the humour is what
anybody would enjoy. They don't pander to your nationality or certain sentiments. It is pure and
simple, everyday fun.
BRANDING
The first products with the Amul brand name were launched in 1955. Since then, they have been
in use in millions of homes in all parts of India, and beyond. There is something more, though,
that makes the Amul brand special and that something is the reason for the commitment to
quality and value for money. Amul is the brand name of 2 million farmers, members of 10,000
village dairy cooperative societies throughout Gujarat. This is the heart of Amul, it is what gives
strength to Amul, and it is what is so special about the Amul saga. The Amul Pattern has
established itself as a uniquely appropriate model for rural development. Amul has made India
one of the largest milk producers in the world. Amul, therefore, is a brand with a difference. That
difference manifests itself in a larger than life purpose. The purpose freedom to farmers by
giving total control over procurement, production and marketing. Our commitment to the
producer and our contract with the consumer is the reasons we are confident that cooperative
brands, like Amul, will have an even bigger role to play in the next fifty years.
7/27/2019 Project Draft (1)
23/46
Page | 23
MARKETING STRATEGIES
DIVISION OF MARKETING DEPTHEAD OFFICE
ZONAL OFFICE
DEPOT OFFICE
CARRYING & FORWARDING AGENTS (C & F)
WHOLESALE DEALERS
RETAILERS
CONSUMERS
MARKET RESEARCH
Market research is a method of getting facts to be used by the executives in formulating policies
and plans. It enables a manufacturer or producer to know what the customers want, at what time
and what quantity. It is an organized attempt to reduce market risk. He principle task of
marketing research is to widen the basis of facts upon which business plans can be laid.
Marketing research shows changes from time to time , if any. AMUL conducts basically two
types of market research. One is forproducts and another for the advertisingconducted by the
company. These research results serve as an input in future decision making. The company
basically collects feedback from the customers, about the effectiveness of its advertising
campaign and liking of the product especially in case of new products launched. It tries to find
out by conducting a survey in a target market whether or not the product is liked by the
consumers and ask for their suggestions for improvement. However AMUL is not much intoconducting research before the launch of the product. Most of its research is done only once
when the product is already launched in the market. It doesnt have any separate department for
this purpose but its sales agents themselves do the work of research for the company. Yet the
results are almost comparable to those conducted by professionals.
7/27/2019 Project Draft (1)
24/46
Page | 24
NEW PRODUCT DEVELOPMENT
New product development means development of original product or product improvement or
modification or new brands through Research & Development efforts .New product development
has become more difficult with the passage of time, due to shortage of new ideas, keen
competition, government and environmental constraints .It is an expensive affair which involves
lot of crucial decision making.
A number of decisions are taken by AMUL with regards to launch plans and strategies for the
new product, which are as under:
Deciding the target customers
Designing the promotional campaign
Deciding the price
Market analysis
GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD
Deciding the sales force to be employed
Deciding the marketing mix
Deciding whether to launch the product across the country or in the selected area
Appointing distributors
Conducting market research
7/27/2019 Project Draft (1)
25/46
Page | 25
PRODUCT LIFE CYCLE STAGES
A product passes through distinct stages during its life in market, each posing different
challenges, opportunities and problems .Profits rise and fall at different stages of the product life
cycle. There are four different stages of product life cycle, namely
1. INTRODUCTION STAGE
2. GROWTH STAGE
3. MATURITY STAGE
4. DECLINE STAGE
Different products of AMUL are in different stages in the product life cycle. Products like milk,
butter, chocolate and cheese are in the maturity stage, while ice-creams, chocolates and
shrikhand are still in the growth stage. On the other hand, products like milk powders, infant
food, frozen food items and mix are in introduction stage. The company adopts aggressive
selling techniques for those products which are in the introductory stage, while very less
promotional programmers are carried out for those products which are in the growth or maturity
stage.
PRODUCT MIX
A product mix consists of all the product lines and items that a particular seller offers for sale. A
companys product mix has four important dimensions : width, length ,depth and consistency.
Product mix width refersto how many different product lines the company carries. AMUL has 4
different product lines namely milk and milk products, chocolate and ice-cream, wet products
and dry products. Product mix length refers to the total number of items in the mix . In the milk
and milk products line there are 14 different products, while in ice-cream and chocolate range
there are 21 products and in wet and dry products line there are 20 and 10 different products
respectively. Product line depth refers to how many variants are offered of each product in the
line . Product line consistency refers to how closely related the various product lines are in the
end use, production requirements, distribution channels or some other ways .
7/27/2019 Project Draft (1)
26/46
Page | 26
Although the products vary in many ways there is still product line consistency in AMUL. All
the products of AMUL are marketed through same channels of distribution.
MARKET SEGMENTATION
Market Segmentation is the act of sub dividing a market into distinct sets of customers who merit
attention.
Targeting these customers for marketing by evaluating, selecting, and concentrating becomes a
corollary to segmentation. Market segmentation assumes importance in the context of intense
competition market is bombarded with. A market consists of buyers, and buyers differ in one or
more ways. They may differ in their wants, resources, locations, products requirements. These
variables have to be considered in the process of segmentation. There are different levels of
market segmentation. They are mass marketing, segment marketing, niche marketing and micro
marketing. Markets can be segmented on the geographical basis, demographical basis,
psychological basis, behavioral basis and loyalty status.
AMUL segments its market on the following basis:
1. GEOGRAPHICAL BASIS
This segmentation is done on the basis of the lifestyle of people in different regions and their
tastes and consumption patterns which are distinct according to their geographical situation.
AMUL has segmented India geographically into 5 zones.
2. DEMOGRAPHICAL BASIS
They have segmented its market on the basis of the socio-economic status of the customers. i.e.
on the basis of their purchasing power and income level as follows:
GROUPAConsumers falling in this group are from higher social and economic class.
GROUPBConsumers falling in this group are from middle socio-economic class.
7/27/2019 Project Draft (1)
27/46
Page | 27
GROUPCConsumers falling in this group are from the lower middle class.
MARKET TARGETING
After segmenting the market, company evaluate the various segments and decides how many and
which ones to target.
Generally the market is targeted in three ways:-
UNDIFFERENTIATED MARKETING
DIFFERENTIATED MARKETING
CONCENTRATED MARKETING
AMUL uses undifferentiated marketing strategy for targeting its customers as far as its milk and
milk product line is concerned. While the company implements differentiated marketing strategy
for targeting its customers for the other product lines that are ice creams and chocolates, wet
products and dry products. Differentiated marketing means market coverage strategy in which a
firm decides to target several market segments and designs separate offers for each. AMUL
targets its customers according to the segments like geographic and demographic.
PACKAGING
Packing includes the activities of designing and producing the container for the product.
Packaging has become the potent marketing tool. Well designed packages can create
convenience and promotional value. Various factors contribute to packaging growing use as a
marketing tool:
SELF SERVICE
CONSUMER AFFLUENCE
COMPANY AND BRAND IMAGE
INNOVATION OPPORTUNITY
7/27/2019 Project Draft (1)
28/46
Page | 28
Packaging of the products of AMUL varies according to the nature of the product. As most of the
products are perishable in nature special care is taken in packing them. MILK AND MILK
PRODUCTS are packed in plastic bags or containers, while ICE-CREAMS AND CHOCLATES
are packed in cardboard packing. The company maintains the standards prescribed by BIS, with
regards to packing. These products are then packed in cartoons, for greater safety measures and
for transporting them to the market.
LABELING
Labeling printed information that appears on or with the package, is also a part of packaging.
Labels may range from simples tags attached to products to complex graphics that are part of the
package. Label identifies describes and promotes the product through attractive graphics. The
label might carry only the brand name or great deal of information or pictures. Even if the seller
prefers a simple label the law may require additional information.
The labels of the products of AMUL are attractively designed. It contains all the information as
per statutory requirements. Information like name of product, brand name, logo, date of packing
& manufacturing, expiry date, price, code number, ingredients, storage and usage instructions,
weight, manufacturers and marketersname, logo showing PURE VEG etc appears on the
label of the products.
BRANDING
A brand is a name, term, sign, symbol or design or a combination of these used to identify a
product or company. A trademark is a legally recognized brand. Branding has become so strong
that today hardly anything goes unbranded. Today customers view a brand as an important part
of the product and branding adds value to a product. Brand names help customers identify
products that might benefit them and also tells the buyer something about the product quality. To
the sellers brand name and trademark provides legal protection for unique product features thatotherwise might be copied by the competitors and it also helps them to segment markets. A
brand name is selected keeping in view the product and its benefits, the target market and
proposed marketing strategies. Decisions about branding are taken at the Head Office at Anand.
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
7/27/2019 Project Draft (1)
29/46
Page | 29
in several languages of India. AMUL manufactures and markets its products under two brand
names AMUL and SAGAR Information Technology (IT) has played a significant role in
developing the Amul brand. The installation of 3000 Automatic Milk Collection System Units
(AMCUS) at Village Societies to capture member information, milk fat content, the volume
collected and amount payable to each member has proved invaluable in ensuring fairness and
transparency throughout the whole Amul organization.
BRAND EQUITY
Brand equity refers to the value of a brand, based on the extent to which it has brand loyalty,
brand name awareness, perceived quality, strong brand associations, and the other assets such as
patents, trademarks and channel relationship. It is evaluated on the basis of brand assets which
are:
1. BRAND AWARENESS: Awareness ultimately enhances brand equity. AMUL enjoys very
high brand awareness among its customers. According to the survey done by the company, brand
awareness is as high as almost 90%.
2. BRAND LOYALTY: Brand loyalty means the ability to retain the existing customers.
AMUL is blessed with high brand loyalty among its customers. As it is one of the biggest market
players it has proportionately larger group of loyal customer, who are in turn a medium of
marketing/ advertising.
3. BRAND ASSOCIATIONS: Consumers associate the brand with certain tangible and
intangible attributes. Most of these associations are derived from brand identity and brand image.
Customers associate AMULs brand with high quality standards and reasonable price.
4. BRAND IMAGE: Brand image is the meaning consumers give to a product based on the
perceived values it delivers. AMUL has created brand image by offering excellent quality
products at reasonable price. Perfect distribution channel; continuous & effective advertising; use
of different promotional tools; wide loyal market share, has contributed to create an excellent
image in its trade operations.
7/27/2019 Project Draft (1)
30/46
Page | 30
MANAGING THE SUPPLY CHAIN
Even though the cooperative was formed to bring together farmers, it was recognized that
professional managers and technocrats would be required to manage the network effectively and
make it commercially viable.
COORDINATION
Given the large number of organizations and entities in the supply chain and decentralized
responsibility for various activities, effective coordination is critical for efficiency and cost
control. GCMMF and the unions play a major role in this process and jointly achieve the desired
degree of control. Buy-in from the unions is assured as the plans are approved by GCMMF's
board. The board is drawn from the heads of all the unions, and the boards of the unions
comprise of farmers elected through village societies, thereby creating a situation of interlocking
control. The federation handles the distribution of end products and coordination with retailers
and the dealers. The unions coordinate the supply side activities. These include monitoring milk
collection contractors, the supply of animal feed and other supplies, provision of veterinary
services, and educational activities.
MANAGING THIRD PARTY SERVICE PROVIDERS
From the beginning, it was recognized that the unions' core activity lay in milkprocessing and
the production of dairy products. Accordingly, marketing efforts(including brand development)
were assumed by GCMMF. All other activities were entrusted to third parties. These include
logistics of milk collection, distribution ofdairy products, sale of products through dealers and
retail stores, provision of animalfeed, and veterinary services.It is worth noting that a number of
7/27/2019 Project Draft (1)
31/46
Page | 31
these third parties are not in the organized sector, and many are not professionally managed with
little regard for quality and service. This is a particularly critical issue in the logistics and
transport of a perishable commodity where there are already weaknesses in the basic
infrastructure.
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 village society 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.
PRICING
Amul sell its product at a fixed cost without giving any discount to the pharmacist so they have
to sell the products at the same cost and to attain profits from selling this product the pharmacist
have to buy the product in bulk volumes but in case of nestle where the sell to the pharmacist at a
discounted rate by which they can sell and attain profits even if they buy in small quantities.
The company with largest market share will enjoy lowest cost and highest long run profit to
become the market leader. They set prices as low as possible.
7/27/2019 Project Draft (1)
32/46
Page | 32
DISTRIBUTION CHANNEL
A distribution channel is a set of interdependent organizations involved in the process of making
a product or service available for the use of consumption by the consumer or business user. In
other words, the channel decision is one which takes the product to the customer. The channel
selected affects every other marketing decision and has a bearing on the future. Marketing
channel decision is among the most decision that management faces.
Before selecting a particular channel, every firm takes some factors into consideration
and then only decides a particular channel.
Decisions taken by Companies are as under:
1. ANALYSING CONSUMERS NEEDS
2. SELECTING CHANNEL OBJECTIVES
3. TYPES OF INTERMEDIARIES
4. NUMBER OF INTERMEDIARIES
5. EVALUATING ALTERNATIVES
Distribution channel can be described by the number of channels levels involved. Channel level
is the level of intermediaries that performs some work in bringing the product and its ownership
closer to the final buyer. The following are the different types of distribution channel that a firm
may use:
(i) ZERO-LEVEL CHANNEL:
Manufacturer--------------- Consumer
(ii) ONE-LEVEL CHANNEL:
Manufacturer--- Retailer--- Consumer
(iii) TWO-LEVEL CHANNEL:
Manufacturer-- Wholesaler-- Retailer-- Consumer
(iv) THREE-LEVEL CHANNEL:
Manufacturer- Wholesaler- Agents- Retailer- Consumer
Companies has three-level distribution channel, i.e. it employs carry forward agents, wholesaler
and retailers to carry its products to the final consumers. Till today, the major development on
the distribution front is the development and alignment of four distribution highways - those of
Fresh Products, Chilled Products, Frozen Products and Ambient Products.
7/27/2019 Project Draft (1)
33/46
Page | 33
This is a significant achievement because it allows companies are developing all their product
lines and to leverage these highways to introduce and distribute new products as per market
demand. No other organization in India has been able to develop this kind of channel synergy so
far. Another major initiative undertaken is the Time-based Military Technique (TMT) of
distribution. This has been deployed to effect a nationally synchronized mass distribution of their
products with the objective of achieving total channel penetration on a single day.
DECISION ABOUT THE CHANNEL
MEMBER
Decisions about selecting a channel member are taken by the head office. Wholesalers are
appointed by conducting the market survey , finding out the number of distributors available
manpower and financial capabilities of each of them, market likelihood, infrastructural facilities
etc. all this information is filled in a form which is sent to the head office where it moves from
Marketing Manager to the General Manager who finally selects the one that suits the best to the
company. Distributors have to give a bank guarantee or demand draft in against of the value of
goods they want to purchase and have to make a payment for the same within four days of the
dispatch of the order. The seller then forwards the goods to the retailers for which prices and
norms of delivery are fixed by the head office. Both the retailers and wholesalers are required to
maintain certain basic infrastructural facilities. The head office and all the depot offices have
their own authorized transporters who carry the order from the production place to place of
order.
7/27/2019 Project Draft (1)
34/46
Page | 34
SALES FORCE MANAGEMENT
The organization of sales department is as under:
ZONAL INCHARGE
DEPOT INCHARGE
EXECUTIVES
F.S.R. (Field Sales Representative)
PSM (Pilot Sales man)
The companies conducts intensive training programme for its employees. The company sends
any of its employees for training who will later train the other employees. Its not necessary thatthe person sent for training must be someone from the top or middle management, he can be any
employee. The company treats all its employees equally. Various training programmes like
TQM, Self management Programmers, etc conducted so far. The turnover and absenteeism ratio
is almost negligible which is the proof of the well functioning of the Human Resource
Management. All the agents and sales
INTERNATIONAL DISTRIBUTION STRATEGIES
The company has appointed special carry forward agents for distributing its products in the
international market .It has rented cold storages in various countries to store its products from
where they are distributed as per orders. Although the distribution network for international
market is not so well knitted as in case of domestic market, it has been successful in maintaining
a satisfactory network that ensures smooth functioning.
INTERNATIONAL PRICING STRATEGIES
While deciding the prices for international market the company takes into consideration the
prices of the competitors , production cost , distribution cost for international market , taxes and
duties to be paid ,etc. However the company tries not to have much difference in prices in
National and the International markets.
7/27/2019 Project Draft (1)
35/46
Page | 35
PRODUCT VARIATIONS
There are no variations in the basic products that the company offers in National and
International markets, except for the fact that the company has to maintain the quality standards
as per the regulations of the respective countries. Not all the products manufactured are yet
available in International market because of the difference in preferences and consumption
pattern of the people in various countries.
PRODUCT VARIATIONS
There are no variations in the basic products that the company offers in National and
International markets, except for the fact that the company has to maintain the quality standards
as per the regulations of the respective countries. Not all the products manufactured are yet
available in International market because of the difference in preferences and consumption
pattern of the people in various countries.
EXPORT POTENTIAL
India has the potential to become one of the leading players in milk and milk product exports.
Location advantage: India is located amidst major milk deficit countries in Asia and Africa.
Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore,
Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close to
India.
Low Cost of Production: Milk production is scale insensitive and labor intensive. Due to low
labor cost, cost of production of milk is significantly lower in India.
CONCERNS IN EXPORT COMPETITIVENESS ARE :
Quality: Significant investment has to be made in milk procurement, equipments, chilling and
refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to
international standards.
Productivity: To have an exportable surplus in the long-term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast market
for the export of traditional milk products such as ghee, paneer, shrikhand, rasgolas and other
ethnic sweets to the large number of Indians scattered all over the world.
7/27/2019 Project Draft (1)
36/46
Page | 36
5ANALYSIS AND FINDINGS
Delivery of the Product after ordering
The delivery time which was taken by the company to reach the retailer outlet is generally. In
week span the distributer supply the product to the retail outlet.
Most of the delivery of the product is done in 2-7 days and is mainly based on the packs
available in the warehouse and also the order quantity by the retailer the distribution is done
based on this if the ordered pharmacies so far away from the warehouse it may take more time.
7/27/2019 Project Draft (1)
37/46
Page | 37
Selling Amul Products
Amul generally prefer some outlets to sell their product in some specific stores so the retailer
generally prefer the Amul brand because of the margin they get by selling this product gives
more margin compared to other product.
The major findings is that 60% of the pharmacies said they are selling of Amul products because
of the good demand for the product which some said they are selling because of the margin and
promotional schemes because compared with other products the margin for Amul is different for
different pharmacies because of the different distribution system so the margin earned by the
pharmacies is different compared with competitors products.
7/27/2019 Project Draft (1)
38/46
Page | 38
Damage Policy
The company generally give the damage policy only when the product was in their under so the
company will replace the product when its their fault once the product leaves the company
premises its under the distributor risk so they will take care of the products.
The damage policy which was given by the company based on the survey we can say the
company can gives the damage policy to the retailers when the good is under their supervision so
most of the respondents say they are highly satisfied. And some say dissatisfied because the
policy may differ from retailer to retailer because the company gives the gives the order based on
the order they so the policy may differ from retailer to retailer.
7/27/2019 Project Draft (1)
39/46
Page | 39
Stock
The company supply the stocks to the distributer based on his credit policy which he is
maintaining with the company so they will supply according to the capacity of handling the
goods in their ware house. The distributor will supply the product according to retailer outlet
capacity of storage
Generally every shop keeps some safety stock .The stock kept buy the retailers is based on the
area were the retailer outlet is present and generally every retailer outlet keeps a stock of 30
packets. .
7/27/2019 Project Draft (1)
40/46
7/27/2019 Project Draft (1)
41/46
Page | 41
Quality of the product
The company itself standard for the name quality which is maintained since from decades so
the company generally does not lose its quality compared to its competitor and it also upgrading
its technology and it also comes with new products which are helpful .
Most of the pharmacies say they are satisfied with the Amul quality products were as some
responded say that they have an average opinion on the Amul because they have good opinion
the competitor product.
7/27/2019 Project Draft (1)
42/46
Page | 42
Branding of the product
The company GCMMF sells the products under the brand name Amul which has tag line Taste
of India. The product which are made by real milk so the brand names play an important role in
the market and gets a huge market share in the market
Most of pharmacies have responded have rated good brand name for the Amul because theyhighly satisfied with the Amul products and 10% of the respondents say average because they
may be using the competitor products or they are selling this products
7/27/2019 Project Draft (1)
43/46
Page | 43
Supply norms for the product
The supply norms which was followed by the company is based on the distributer and also the
credit system which was maintained by distributor with company and retailer with the distributer
Generally the company supply the products based on some credit to the distributor.
The supply norms which was given by the distributor was fine said by most of the respondents
Because the distributer for the Amul product may be given nice credit compared with competitor
only few of them respondents say that they are average with the supply norms this because they
competitor for giving more period of credit to their product .
7/27/2019 Project Draft (1)
44/46
Page | 44
Distribution channel
The distribution channel which was followed by the company is zero level to three level channel
so the distribution was the main profit to the company which was supplied the products in time
to the customers as well as the retailers and the distributors with in time. The company follows
just in time.
The retailer are very much satisfied with the distributer because they are following the best
distribution system which they are able to supply the products to the retailers in time whenever
they are in need so most of the respondents say yes they are satisfied with distribution on 1% of
the respondents say no because they may not get the products in time because the outlets may not
be in the city premises so they couldnt distribute in time .
7/27/2019 Project Draft (1)
45/46
Page | 45
Questionnaire
Name of the Pharmacies ;
1. Are you selling AMUL Product?a. Yes b. No
2. Reason for Selling AMUL Product?a. Margin b. Promotional Schemes c. Demand d. Dealer relationshipe. Credit Policy f. Other Reasons
3. Reason for not selling AMUL Product?
a. Credit Policy b. Promotional Material Not Supplied on Timec. Schemes are not conveyed on time d. Supply of product is not propere. Dont Wish To Specify
4. How much time does it take for delivery of AMUL Product after ordering?a . 6-12 Hours b. 1 to 2 Daysc. 2 to 7 Days d. More than7 Days
5. How do you rate the schemes of the company?a. Good b. Average c. Poor
6. How do you rate the Margin of the company?a. Good b. Average c. Poor
7. How do you rate the Quality of AMUL Product?a. Good b. Average c. Poor
8. How do you rate the Brand Pull of the company?a. Good b. Average c. Poor
9. How do you rate the Supply norms of the company?a. Good b. Average c. Poor
10. Do the company executives convey schemes on time?A . Yes B. No
7/27/2019 Project Draft (1)
46/46
11. How do you rate the Representative behavior with retailers?a. Highly Satisfiedb. Satisfiedc. Dissatisfiedd. Highly Dissatisfied
12. How do you rate the Damage Policy?a. Highly Satisfiedb. Satisfiedc. Dissatisfiedd. Highly Dissatisfied
13. Are you getting information about scheme of AMUL Product at proper time?a. Yes b. No
14. Are you satisfied with the distribution channel of AMUL Product?a. Yes b. No
15. How much stock do you keep?
1. 10 packets
2. 20 packets
3. 30 packets
4. More than 50 packets
16. What size of the packets do you prefer to store?
1. 200 g
2. 500 g
3. Sample packs
4. 1 lit
17.Which is the most preferred brand that you stock?1. Amul 2. Nestle