SALES AND DISTRIBUTION MANAGEMENTOF

AMUL

By Group 4

AMUL

• Type - Cooperative • Industry - Dairy

• Founded - 1946

• Slogan- The Taste of India

• Key people - Dr. Verghese kurien

• Employee - Marketing arm: 735

KEY FACTS

• AMUL means priceless in Sanskrit “Amoolya”

• Brand name managed by an apex cooperation organization –GCMMF

• World’s biggest vegetarian cheese brand

• World’s largest pouched milk brand

• Largest food brand in India

• Spurred the white revolution in India

GCMMF: An Overview

• largest food products marketing organization of India• average collection is 7.5 million litres of milk per day • Members

– 13 district cooperative milk producers Union

• No. of Producer Members– 2.79 million

• No. of Village Societies– 13,328

• Total Milk handling capacity– 11.22 million liters per day

PRODUCTSDairy

UHT Milk Range:

Amul Taaza 3% fat Milk

Amul Gold 4.5% fat Milk

Amul Slim-n-Trim 0% fat milk

Amul Chocolate Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Milk Powders:

Amul Full Cream Milk Powder

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

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

PRODUCTSFrozen

Amul Ice-creams:

Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)

Nut-o-mania range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)

Utsav Range (Anjir, Roasted Almond)

Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)

Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)

Sundae Range (Mango, Black Currant, Chocolate, Strawberry)

Millennium Icecream (Cheese with Almonds, Dates with Honey)

Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)

Cool Candies (Orange, Mango)

·Cassatta

·Tricone Cones (Butterscotch, Chocolate) ·Megabite Almond Cone Frostik - 3 layer chocolate Bar

·Fundoo Range - exclusively for kids ·SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)

PRODUCTSFrozen

Cheese Range:

Amul Processed Cheese Spread

Amul Mozarella Cheese

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese)

Utterly Delicious Pizza

Paneer Range:

Amul Malai Paneer

Amul Fresh Paneer

Breadspreads:

Amul Butter

Amul Lite Low Fat Breadspread

PRODUCTSFresh line

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

Amul Mithaee Gulabjamun Mix

Amul Mithaee Kulfi Mix

Pure Ghee:

Amul Pure Ghee

Sagar Pure Ghee

Chocolate & Confectionery:

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Amul Eclairs

Brown Beverage:

Nutramul Malted Milk Food

Objective of project

To study and analyze the sales strategy of Amul.

To study and analyze the distribution strategy of Amul .

To analyze the effect of distribution strategy on sales of Amul product.

Methodology

• Structured interview – With company officials and distributors

• Questionnaire– Open ended – Questions including reasons

• Type of research– Exploratory Research– Descriptive Research

• Sample Size – 13 distributers of Patna

• Method of survey– Personal interview

SALES TEAM

RANK RESPONSIBILITY

MD

GM

AGM

Deputy Manager

Assistant Manager

Senior Executive

Junior executive

Territory Sales In charge

SalesmanRANK

RESPONSIBILITY

MD

Chief General Manager

Zonal Manager

Branch Manager

Officer In Charge

Territory Sales

Overall Structure

RECRUITMENT OF SALES FORCE IN AMUL

•The first stage of process, continued with selection and placement

•Starts with the intent of the Sale department head

•Personal department checks the financial implication and additional expenses, if any

•A positive process and most important function

TYPES OF RECRUITMENT SOURCES

INTERNAL SOURCE

• Present Permanent Employees

• Employee Referrals

• Former Employees

EXTERNAL SOURCE

• Advertisement.• Campus

Interview • Employment

Exchange.• Unsolicited

Application

NEED OF RECCRUITMENT

•New expansion•New planning•Retirement

SELECTION PROCESS AT AMUL

Application

Initial interview of the candidate.

Employment tests.

Interviews.

Checking references.

Physical or medical

examination.

Final interview and

induction

PROCESS OF SELECTION•Approval from M.D: When there is any vacancy in any department, first step is to take approval from M.D to give advertisement in newspaper. After getting approval the process goes further. •Advertisement: After getting approval from M.D., advertisement is given in local newspaper for the related post in the sales department.•Collection of Application: All the direct applications are collected.•Securitization of applications: After collection, applications are scrutinized•Interview: Interview is being carried out by a panel of 3 to 4 members consisting of head of Sales Department, M.D. and Manager of Administration•Medical checkup: Selected person sent for medical check. It held on interview day in AMUL when candidate found medically fit then selection is done•Selection: At the end they give the appointment letter to the person and he/she is informed about his/her joining in the organization

INDUCTION

INTERNAL•Continues for 5-6 days•Makes familiar with

Sales Department of Organization

EXTERNAL•Continues for 6-7 days•Makes the employees

visit the plant, the chilling centre

Training and Development Identification of need of Training

Module Preparation

Selection of employee for the training

Training

Feedback

Methods for the training• On the job training The immediate superior who knows exactly what the sales

trainee should learn and do, gives him/her training at his/her workplace.

Coaching: the new recruit is trained on the job by his/her immediate

superior. Job rotation: The employee is made to move from job to job at certain

intervals.

Off the job training:-

some managerial exports from within the organization head conduct the training for the off the job method .

Lecture method The conference method Seminar

Out house training:- In this method the new recruits are sent to the different

training centers outside the organization for the training purpose. Generally this method is used for the training for top management people.

Need of Training:-• When new technology introduce in union. • Increase quantity and quality of product. • To meet organization need at all time. • For better economic use of materials. • To prepare the present employees for higher

assignments so that they may promote from within.

Effect of Training:- • Increased effectiveness of work. • Increased dedication feeling for the work. • Higher productivity

Motivational Strategy

Financial motivators• Adhoc • House rent allowance• Travel Allowance• Medical• Bonus• Production Bonus• Other

allowance(Performance Allowance , advance , LTC )

Non-financial Motivators

• Promotion( Based on Seniority, Vacancies,

Opinion of Divisional head, past record, behaviour, Skill and knowledge, Experience, Loyalty toward organisation. )

• Seminars• Conference

Compensation Policy

• It includes fixed salary, bonus and shared profit.• Method of remuneration payment:- • Time wage• Piece wage

Compensation structure:- There are 3 sound primary compensation structures. • Internal Equity. • External Competitiveness. • Performance based payment.

Compensation Policy in Amul

Cash Payment Includes:•Fixed Salary•Bonus•Shared Profits

Method of remuneration Payment:•Time wages•Pieces WagesCompensation Structure•Internal equity•External Competitiveness•Performance based payments

Distribution Channel Structure at Amul

The Channel Network

PProcurement Channel (Upstream Flow)

• Milk is taken to VCS by farmers on bicycle.

• Transportation of milk from the co-operatives through truck equipped with tanker.

Policy regarding unsold/ spoilt goods

• Product crosses the shelf life, retailers bears the cost.

• Products spoiled during transit or customer complaint, Amul bears the cost.

• Unsold goods are not returned to customers.

• No reverse logistic.

Distribution Channel (Downstream Flow)

Amul Supply-Demand Linkages

Channel Member Management

1. Selection of channel member• Authentication• Proof of solvency• Safety of the inventory• Details of storage• Human resource• Details of other product• Market coverage• Details of advertisement initiatives

2. Motivation of Channel Member

• Distributors Decent margin Trade Marketing Work Shops Amul Yatra

• Retailers

»Trade Schemes»Glow Boards»Infrastructure investment»Salesmen

Evaluation of channel member

• Beat Plan• Cumulative Performance• Target vs. Achievement• Others

• Bank Guaranty• Storage Space• Refrigeration Facility• Sales Potential of market

Major Observations:-

Conflicts among Channel Members 1. Ownership of Asset 2. Stocking Issue 3. Replacement of products 4. Credit Policy 5. Packaging 6. Replenishment of stocks 7. Margins

Amul quality circles

Pilot salesmen Scheme

Agreement defining rights

Suggestions• Amul should go in for exclusive outlets in at

least all the shopping malls• Pushcarts should be increased in number.• The company should start a home delivery

where a particular household will order full range of products required by it over a period of time.

• Place additional salesmen on the field.( To match the demand and supply statics)

• Increase margins of hard selling items.

Thank You