8ba06_amul Marketing Report

8/12/2019 8ba06_amul Marketing Report

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www.techshristi.comGujarat Co-operative Milk Marketing Federation, Anand

Since the turn of 19th century, Cooperatives have existed as dominant forms of organization in

the dairy industry around the world. Sometimes they have played the role of developing infant

industry while at other times they have been used to strengthen weak production bases in an

environment where market failures tend to be higher for marginal producers. n some other cases, a

network of small producers have organized themselves to better market their products. !anagement

of these cooperatives has also led to some interesting managerial insights for managers in emerging

as well as developed economies.

"arge emerging economies, e.g., ndia and China, have complexities that range from

development of markets #where the largest segment of population is the one which has low

purchasing power$ to integration of low cost suppliers who are predominantly very small. %or firms

that aspire to conduct substantial business in such markets, such complexities have to be recognized

and then overcome.

&nion or '!&" in ndia is an example of how to develop a network of firms in order to

overcome the complexities of a large yet fragmented market like those in emerging economies by

creating value for suppliers as well as the customers. '!&" has led the milk dairy revolution in

ndia that has now emerged as one of the largest milk producers in the world.

LDRP Institute of Technology & Research, Gandhinagar 1
http://www.techshristi.com/http://www.techshristi.com/


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CHAPTER - 1

Achievements of the dairy cooperatives during the last 100 years

(uring the pre)independence era, public and private agencies dominated the dairy industry, although

government policy did not favour any one organizational form. *arly efforts to organize dairying

along cooperative lines were made immediately after the enactment of the Cooperative Societies

'ct, 191+. he present day -'nand attern/ dairy cooperatives trace its origin to the establishment ofa dairy cooperative at 'nand in 190 under the direction and guidance of Sardar 2allabhbhai atel.

he dairy farmers of the then 3heda (istrict of 4u5arat organized themselves to form a dairy

cooperative in order to directly undertake sale and processing of milk collected from member dairy

farmers of the district.

he government of ndia took some steps to improve the 6uality of milk animals and their

productivity through the 3ey 2illage Scheme, launched as part of the %irst %ive)7ear lan #1981)8$

and the ntensive Cattle (evelopment lan, launched under the hird %ive)7ear plan #191)$.

owever, in the absence of a stable and remunerative market for milk, production remained more or

less stagnant. (uring the two decades between 1981 and 19:;, milk production grew by barely 1 per

cent annually, while per capita milk availability declined by an e6uivalent amount.

(uring the 19;s, various state governments tried different strategies to develop dairying, including

establishing dairies run by their own departments, setting up cattle colonies in urban areas, and

organizing milk schemes. 'lmost invariably, dairy processing plants were built in cities rather than

in the milk sheds where milk was produced. his urban orientation to milk production led to the

establishment of cattle colonies in !umbai, Calcutta, and !adras. he ob5ective was to meet the

demand for milk and milk products in big cities through improvements in milk collection,

processing, and distribution.



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he $ from 19:; to 199 played the key role in bringing about the transformation in dairy

development in the country. he


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n each state, the 'nand attern featuresA

(ecentralized milk production by the small milk producersB

!ilk procurement by the village)level dairy cooperative societiesB

Centralized milk processing by the district)level unionsB and

!arketing of milk and milk products by the state)level federation.

he primary milk producers democratically govern this entire federal cooperative structure to ensure

that the higher)tier organizations serve the purpose of the lower levels and that the gains at all levels

flow back to the milk producers in significant measure. he core feature of the 'nand attern model

is farmer control of the three stages following production, that is, procurement, processing, and

marketing of milk and milk products. he value added at the procurement and processing stages can

be realized by the cooperatives only through control over marketing, which is therefore an essential

re6uirement for success. n contrast, many dairy cooperatives worldwide end up as suppliers of raw

material to private companies that own the brands and control marketing. >y cutting out the need for

middlemen in procuring and selling milk, the 'nand attern cooperatives have helped to reduce

seasonal price variations and have enabled the farmers to en5oy the fruits of their labour instead of

surrendering most of the profit to corrupt and exploitative middlemen.

Consumers too have benefited. n +;;, dairy cooperatives accounted for the ma5or share of

processed li6uid milk marketed in ndia. !ilk reaches consumers in :8; towns and cities through the

=ational !ilk 4rid network.


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he unions make up ++ state)level marketing federations.

$il% production

ndia/s milk production increased from +1.+ million metric tons in 19@D9 to @@.1 million

metric tons in +;;0);8

er capita availability of milk increased from 11+ grams per day in 19@D9 to +1 grams

day in +;;0);8.

ndia/s .@ percent annual growth of milk production surpasses the + per cent growth in

populationB the net increase in availability is around + per cent per year.

$ar%eting

n +;;0);8 average daily cooperative milk marketing stood at 10.@: million litersB annual

growth has averaged about 0.+ per cent compounded over the last five years.

(airy cooperatives now market milk in about +;; classes me cities including metros and

some 88; smaller towns.

(uring the last decade, the daily milk supply has increased from 1:.8 to 8+ liters per 1,;;;

urban consumers.

nnovation

>ulk vending saves money and conserves the environment.

!ilk travels as far as +,+;; kilometers to areas of shortage, carried by rail and road milk

tankers.

ndia produces 98 per cent of its own dairy e6uipment, saving valuable foreign exchange.

!acro impact

he annual value of ndia/s milk production amounts to about Es.@@; billion.

(airy cooperatives generate employment opportunities for about 1+ million farm families.



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CHAPTER - !

&A$E '( E&TERPR)E

$other dairy* +andhinagar.#' &nit of 4u5arat Co ridge,

'hmedabad)4andhinagar ighway,

2illageA >hat @+0+@

Regional 'ffice

4u5arat Co)operative !ilk !arketing %ederation "td.

'mul (airy Eoad, 'nand ) @@;;1

Auditor

S.E. >atlibol F Co.

Esta,lishment

his unit was established in September 19, 1990.

rand name

'mul

Total mil% handling capacity

+8 lakh liters per day



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CHAPTER - .

+C$$(/ An 'vervie

4u5arat Co)


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State Marketing

Federation

All Dairies in State

Village Co-operative

Society

All Villages in a District

District Milk Processing

UnionEvery in the District


t has also recognised the !anaging (irector, !r. > ! 2yas, who has taken initiative by

setting the direction +C$$( as T Company in (ood ,usiness. t has also inspired all the

employees of 4C!!% *nterprise to sustain the challenges as a ?Change 'gent? by excelling their

skills in order to transform the people around them towards ntegration #e)2ision$ on both

the ends of supply chain #2illage level %armer to end consumer$. his award also motivated the

each F every member dairy, 'mulIs wholesale distributors, retailers, transporters and suppliers

who have supported whole)heartedly the initiatives of 4C!!%.

he first lesson in milk marketing was learnt when an assured outlet for milk in >ombay stimulated

increased milk collection in the villages of 3aira (istrict. !ore and more farmers 5oined hands in all

the villages to successfully negotiate the increased demand for the milk. he >ombay milk scheme

did not accept all the milk that is procured by the Co)operative society. Setting up of a dairy

processing unit was a way to solve the problem. here was a need felt for the (airy plant to process

and utilize the milk supplied by the society and as a result the dairy was setup in 1998.



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o market the products of the milk unions, 4C!!% was formed in 19:. 4C!!% is the sole

marketer for all the range of 'mul products.


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t is also the sole selling agent for the =ational (airy (evelopment >oard/s #=((>$ edible oil D

-('E'/. 4C!!% also coordinates with the manufacturing dairy units for production planning

and milk procurement and handles the distribution of milk from surplus union to the deficit areas.

4C!!%" is in a state where it is growing rapidly and it is one amongst the most respected ndian

companies in +;;. t is because of the values and systems that are in place. 's a Chinese proverb

says, G's long as the trunk is firm, worry not about the branches swinging to the wind.H 4C!!%"

is trying to strengthen its rural base D he 2illage Cooperatives D to ensure the lead in the dairy

business.

(armers 2illage $em,er +C$$(3 Distri,ution Retailers

Cooperative 4nion

)ocieties

Prodn5 'f $il% $il% Collection $il% Processing $ar%eting Distri,ution Retailing


2!2

"illion

nu"#rs

10,675

Coo$rat

iv

%ocitis

10,675

Coo$!

%ocitis

12 units

10000

"$

700 &M' 3000 500,000


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+C$$(/ Today

4u5arat Cooperative !ilk !arketing %ederation #4C!!%$ is ndiaIs largest food products

marketing organization. t is a state level apex body of milk cooperatives in 4u5arat which aims to

provide remunerative returns to the farmers and also serve the interest of consumers by providing

6uality products which are good value for money.

4u5arat Cooperative !ilk !arketing %ederation or 4C!!% is the marketing entity for products of

all &nions in the State of 4u5arat+. 4C!!% has 0+ regional distribution centers in ndia, serves

over

8;;,;;; retail outlets and exports to more than 18 countries. 'll these organizations are independent

legal entities yet loosely tied together with a common destinyK #n a recent survey 4C!!% was

ranked amongst the top ten %!C4 firms in the country while '!&" was rated the second most

recognized brand in ndia amongst all ndian and !=C offerings$.

LDRP Institute of Technology & Research, Gandhinagar

$em,ers/ 1 district cooperative milk producersI

&nion

&o5 of Producer $em,ers/ +.; million

&o5 of 2illage )ocieties/ 1+,:9+

Total $il% handling capacity/ 1;.1 million liters per day

$il% collection 6Total - !007-089/ +.@ billion liters

$il% collection 6Daily Average !007-089/ :. million liters

$il% Drying Capacity/ 890 metric ons per day

Cattle feed manufacturing Capacity/ +0;!ts per day

12


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Sales Turnover Rs (million) US $ (in 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 42778 1050

2007-08



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)A3E) T4R& '2ER PER :EAR



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CHAPTER - "

3ist of Products $ar%eted/

read spreads/

'mul >utter

'mul "ite "ow %at >read spread

'mul Cooking >utter

Cheese Range/

'mul asteurized rocessed Cheddar Cheese

'mul rocessed Cheese Spread

'mul izza #!ozarella$ Cheese

'mul Shredded izza Cheese

'mul *mmental Cheese

'mul 4ouda Cheese

'mul !alai aneer #cottage cheese$

&tterly (elicious izza



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$ithaee Range 6Ethnic seets9/

'mul Shrikhand #!ango, Saffron, 'lmond istachio, Cardamom$

'mul 'mrakhand

'mul !ithaee 4ulab5amuns

'mul !ithaee 4ulab5amun !ix

'mul !ithaee 3ulfi !ix

'vsar "adoos

4HT $il% Range/

'mul Shakti L fat !ilk

'mul aaza 1.8L fat !ilk

'mul 4old 0.8L fat !ilk

'mul "ite Slim)n)rim !ilk ;L fat milk

'mul Shakti oned !ilk

'mul %resh Cream

'mul Snowcap Softy !ix

Pure +hee/

'mul ure 4hee

Sagar ure 4hee

'mul Cow 4hee



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nfant $il% Range/

'mul nfant !ilk %ormula 1 #;) months$

'mul nfant !ilk %ormula + # months above$

'mul Spray nfant !ilk %ood

$il% Poders/

'mul %ull Cream !ilk owder

'mulya (airy Mhitener

Sagar Skimmed !ilk owder

Sagar ea and Coffee Mhitener

)eetened Condensed $il%/

'mul !ithaimate Sweetened Condensed !ilk



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(resh $il%/

'mul aaza oned !ilk L fat

'mul 4old %ull Cream !ilk L fat

'mul Shakti Standardized !ilk 0.8L fat

'mul Slim F rim (ouble oned !ilk 1.8L fat

'mul Saathi Skimmed !ilk ;L fat

'mul Cow !ilk

Curd Products/

7ogi Sweetened %lavored (ahi #(essert$

'mul !asti (ahi #fresh curd$

'mul !asti Spiced >utter !ilk

'mul "assee



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Amul ce creams/

Eoyal reat Eange #>utterscotch, Ea5bhog, !alai 3ulfi$

=ut)o)!ania Eange #3a5u (raksh, 3esar ista Eoyale, %ruit

>onanza, Eoasted 'lmond$

=atureIs reat #'lphanso !ango, %resh

"itchi, Shahi 'n5ir, %resh Strawberry, >lack Currant, Santra

!antra, %resh ineapple$

Sundae Eange #!ango, >lack Currant, Sundae !agic, (ouble Sundae$

'ssorted reat #Choc)bar, (ollies, %rostik, ce Candies, ricone, Choc crunch, !egabite,Cassatta$ &tterly (elicious #2anilla, Strawberry, Chocolate, Choc chips, Cake !agic$

Chocolate ; Confectionery/

'mul !ilk Chocolate s

'mul %ruit F =ut Chocolate

ron everage/

=utramul !alted !ilk %ood



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$il% Drin%/

'mul 3ool %lavored !ilk #!ango, Strawberry, Saffron, Cardamom,

Eose, and Chocolate$

'mul 3ool Cafe

Health everage/

'mul Shakti Mhite !ilk %ood



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CHAPTER - #

*very day 'mul collects 00:,;;; liters of milk from +.1+ million farmers #many illiterate$, converts

the milk into branded, packaged products, and delivers goods worth Es crore #Es ; million$ to

over 8;;,;;; retail outlets across the country.

ts supply chain is easily one of the most complicated in the world. ow do managers at 'mul

prevent the milk from souringN

Malk in to any 'mul or 4u5arat Cooperative !ilk !arketing %ederation #4C!!%$ office, and you

may or may not see a photograph of !ahatma 4andhi, but you will certainly see one particular

photograph. t shows a long line of 4u5arati women waiting patiently for a union truck to come and

collect the milk they have brought in shining brass matkas.

he picture is always prominently displayed. he message is clearA never forget your primary

customer. f you donIt, success is certain. he proof is a uni6ue, Es +,+;; crore #Es ++ billion$

enterprise.

'rganiased in the village of 'nand, the 3aira (istrict !ilk Cooperative &nion #better known as 'mul$

expanded exponentially. t 5oined hands with other milk cooperatives, and the 4u5arat network now

covers +.1+ million farmers, 1;,011 village level milk collection centers and fourteen district level

plants #unions$ under the overall supervision of 4C!!%.

here are similar federations in other states. Eight from the beginning, there was recognition that

this initiative would directly benefit and transform small farmers and contribute to the development

of society.



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!arkets, then and even today are primitive and poor in infrastructure. 'mul and 4C!!%

acknowledged that development and growth could not be left to market forces and that proactive

intervention was re6uired. wo key re6uirements were identified.

he first, that sustained growth for the long term would depend on matching supply and demand. t

would need heavy investment in the simultaneous development of suppliers and consumers.

Second, that effective management of the network and commercial viability would re6uire

professional managers and technocrats.

o implement their vision while retaining their focus on farmers, a hierarchical network ofcooperatives was developed, which today forms the robust supply chain behind 4C!!%/s

endeavorsN he vast and complex supply chain stretches from small suppliers to large fragmented

markets.

!anagement of this network is made more complex by the fact that 4C!!% is directly responsible

only for a small part of the chain, with a number of third party players #distributors, retailers and

logistics support providers$ playing large roles. !anaging this supply chain efficiently is critical as

4C!!%Is competitive position is driven by low consumer prices supported by a low cost system.

ntroducing higher value products

>eginning with li6uid milk, 4C!!% enhanced the product mix through the progressive addition of

higher value products while maintaining the desired growth in existing products.

(espite competition in the high value dairy product segments from firms such as industan "ever,

=estle and >ritannia, 4C!!% ensures that the product mix and the se6uence in which 'mul

introduces its products is consistent with the core philosophy of providing milk at a basic, affordable

price.



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The distri,ution netor%

'mul products are available in over 8;;,;;; retail outlets across ndia through its network of over,8;; distributors. here are 0: depots with dry and cold warehouses to buffer inventory of the

entire range of products. 4C!!% transacts on an advance demand draft basis from its wholesale

dealers instead of the che6ue system adopted by other ma5or %!C4 companies. his practice is

consistent with 4C!!%Is philosophy of maintaining cash transactions throughout the supply chain

and it also minimizes dumping.

Mholesale dealers carry inventory that is 5ust ade6uate to take care of the transit time from the

branch warehouse to their premises. his 5ust)in)time inventory strategy improves dealersI return on

investment #E


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>uy)in from the unions is assured as the plans are approved by 4C!!%Is board. he board is drawn

from the heads of all the unions, and the boards of the unions comprise of farmers elected throughvillage societies, thereby creating a situation of interlocking control.he federation handles the

distribution of end products and coordination with retailers and the dealers. he unions coordinate

the supply side activities.hese include monitoring milk collection contractors, the supply of animal

feed and other supplies, provision of veterinary services, and educational activities.

$anaging third party service providers

%rom the beginning, it was recognized that the unionsI core activity lay in milk processing and theproduction of dairy products. 'ccordingly, marketing efforts #including brand development$ were

assumed by 4C!!%. 'll other activities were entrusted to third parties. hese include logistics of

milk collection, distribution of dairy products, sale of products through dealers and retail stores,

provision of animal feed, and veterinary services.

t is worth noting that a number of these third parties are not in the organized sector, and many are

not professionally managed with little regard for 6uality and service.

his is a particularly critical issue in the logistics and transport of a perishable commodity where

there are already weaknesses in the basic infrastructure.

Esta,lishing ,est practices

' key source of competitive advantage has been the enterpriseIs ability to continuously implement

best practices across all elements of the networkA the federation, the unions, the village societies and

the distribution channel.

n developing these practices, the federation and the unions have adapted successful models from

around the world. t could be the implementation of small group activities or 6uality circles at the

federation.


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!ore 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.

%or example, every %riday, without fail, between 1;.;; a.m. and 11.;; a.m., all employees of

4C!!% meet at the closest office, be it a department or a branch or a depot to discuss their various

6uality concerns.

*ach meeting has its pre)set format in terms of urpose, 'genda and "imit #'"$ with a process

check at the end to record how the meeting was conducted. Similar processes are in place at the

village societies, the unions and even at the wholesaler and CF% agent levels as well.

*xamples of benefits from recent initiatives include reduction in transportation time from the depots

to the wholesale dealers, improvement in E


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CHAPTER - =

4&T PR'(3E

!other (airy, 4andhinagar #!(4$ is a unit of 4u5arat Cooperative !ilk !arketing %ederation

#4C!!%$ "td., which markets its products under '!&" F S'4'E brand. he plant was set)up at

4andhinagar with a strategic intent of catering to re6uirement of fresh and wholesome milk of

consumers of 'hmedabad and nearby cities and to handle every drop of surplus milk from member

dairies of 4u5arat and hence play a role of !other.

he most modern, "C based automated dairy processing plant with in)built capability to produce

milk products matching to the best 6uality standards was set)up in the year 1990 with a capacity to

handle +8 lac litre of milk per day.

!(4 was commissioned in September 1990 by "F with assistance of '2)(enmark, Mestphalia)

4ermany, =iro)Sweden and =u)con )=ew Pealand. he dairy initially had "i6uid !ilk, ouch

%illing, >utter


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he vast and varied product portfolio includes !arket !ilk, 4hee, !ilk powders, ce Cream, &

milk and milk products and Cheese. he other product portfolios apart from milk and milk products

are Soup, 3adhi and izza.

he plant is professionally managed and has adopted world)class 6uality management systems and

6uality initiatives like S< 9;;1)+;;;, 'CC 9;;1)+;;;, S< 10;;1, otal roductivity

!aintenance, Six Sigma, otal *nergy !anagement, *nergy !anagement System etc.

Pouch )ection

ackaging of 'mul milk made product is an important aspect of !other (airy plant. 'fter

processing of !ilk it is packed in polyethylene pouches to prevent deterioration in edible 6uality.

!other (airy, 4andhinagar has a separate pouch section. Mith E*'C and S'!'E'= machine

each having capacity of ;;; lt.Jhr. or ;;; pouches of 8;; mlJhr. and 8+;; pouches of 8;; mlJhr.

otal no. of lines for pouch packaging are @ with +9 no. of machines at !other (airy, 4andhinagar.

Aims of Packaging

dentification of product

rotection against damage

>iochemical damage

*xternal contamination #hysical, odor, paste, microorganisms$

ilfering

"egal or information reason

Stating the recipe J ingredients

Stating the manufacturing J expired date

Stating the manufacturing price

Stating the location of manufactures



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!arketing reasons

'dvertising and reminder for future purchases

!aking offer

2isual attraction

'pparent 2alue

Ouality J 4uarantee reasons

'ddress for return

dentification for follow up

Stating weight J volume J Composition J no. of contents

echnical reasons

!arking to ensure accurate registration of design

!arking to identify product for future handling



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$ar%eting Department

he !arketing (epartment is playing an important role in !other (airy, 4andhinagar. he

department is mainly responsible for marketing and sales activities of 'mul products. !other (airy,

4andhinagar made a special sales force for handling marketing and sales activities in 'hmedabad

city.

he !arketing (epartment compiles its activities with other departments like (ispatch, ackaging,and rocess (epartment for running smooth activities of !other (airy, 4andhinagar. he main

working criterion of marketing team is to handle milk distribution in 'hmedabad city.

!arketing staff of !other (airy, 4andhinagar have complete responsibility of sales and promotion

of 'mul roduct in 'hmedabad city. he !arketing (epartment organizes free sampling, home to

home, and kiosk activities for marketing purpose of 'mul roduct launched newly .he department

time to time conducts some surveys for 'mul newly launched product as well as other milk and

milk related products. he hierarchy for 'mul roduct F milk marketing is shown as underB



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n-charge $$'

n)charge *ast n charge Mest

%SE %SE

S! #0$ S! #0$

%SE)%iled Sales Eepresentative,

S!)ilot Sales !anager



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)4R2E:

' Survey is the research techni6ue, which is used to gather information from a sample ofrespondent by employing a 6uestionnaire. Surveys are normally carried out to obtain primary

data. rimary data is the data which gather first hand to answer the research 6uestion being

investigated. Surveys are conventionally conducted by meeting the respondent in person or

contacting them through the telephone. he method of collecting information by asking a set of

pre)formulated 6uestion in a predetermined se6uence in a structured 6uestionnaire to a sample of

individual drawn so as to representative of a defined population is known as survey research.

Survey can be classified on basis of the method of communication, the degree of

structured and the amount of disguise in 6uestionnaire. 'nd the timeframe for data collection,

deal with the classification in terms of 6uestionnaire structure, disguise and the timeframe,

following which the classification based on mode of communication.



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)4R2E: $ETH'D)

Surveys are conducted through interviews and are generally classified based on the

method of communications used in the interview.

ersonal interviews

elephonic interviews

Self) administrated interviews

!ail surveys

ersonal interviewsA) personal interviews are characterized by the presence of for entities

%eed backA) the opportunity to clarify the doubts of the interviewee is one of the

feature that put personal interviews ahead of other methods of gathering data. '

respondent hesitate to provide sensitive information can be assured of the

confidentially of the information provided.

robingA) t has the advantage of probing the respondent for complex answers. '

respondent might reveal her likesJdislikes for a certain soft drink which is no use

to the researcher.

"ength of interviewA ) t is appreciably better in personal. t is easy for reluctant

respondent to hang up the phone or not respondent to a mail rather than avoid

someone in face to face interview.



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RE)EARCH '>ECT2E

!y key research ob5ectives include studying Eetailers advantages and disadvantages

located near by mall area in 'hmedabad and 4andhinagar market selling amul product i.e. milk,

buttermilk, aneer, curd, "asee. he main points under the study are to get the information from

retailers that due to opening of mall they get benefited or have loss in their business .

he benefit of this report, the changing demand of the retailers, the need of the retailersand the problems of retailers. have studied the Eetailers advantages and disadvantages located

near by mall area in 'hmedabad and 4andhinagar market selling amul product and hence gear

up my resources to match the retailers expectation and hence to capitalization on the same.

Eesearch designA the research design is a conclusive research, which follows a multiple

cross sectional design the characteristics and expectation of the retailers of 'mul. he nature of

the research is both 6uantitative and 6ualitative.



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Data collection/-

'll primary data has been gathered with the help of a structured 6uestionnaire by

conducting a personal interview with the respondents, which was done through visiting

people of 'hmedabad city.

Data Analysis/

he data collected was first properly tabulated. hen the tabulated data was used for

percentage calculation of each 6uestion, which is graphically shown with the help of pie

charts, >ar charts and tables.



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S!"# Analysis o$

AMU%

Organizations have certain characteristics-strengths-which make them uniquely adapted to

carry out their tasks. onversely they have other !eatures-weakness-which inhi"it their

a"ility to !ul!ill their purposes.

(o)ar* (! %tvnson

SM


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)trengths/

Strength is a resource, skill, or other advantage relative to competitors and the needs of the markets

'mul serves or expects to serve. Strength of 'mul is its distinctive competence, which gives a

comparative advantage in the industry. 's an example 'mul have many types of distinctive

competence as manufacturing excellence, good 6uality control, superior design capability, customer

loyalty, location, and a strong distribution network. t will be easier to develop competitive

advantage in a market when 'mul has a distinctive competence in one of the key re6uirements for

market success, when rival companies have no offsetting competences, and rivals can/t match the

competence without spending much time and money. %rom a strategy making perspective, 'mul/s

strengths are significant because they can be the cornerstones of a strategy and the basis on which to

build competitive advantage. his part of the SM


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@ea%nesses/

Meakness is a limitation or deficiency in resource, skills, or capabilities that seriously impedes

'mul/s effective performance. ' weakness can be strategically important or not, depending on how

much it matters in the competitive battle the 'mul is in. ' good strategy necessarily needs to aim at

correcting weaknesses that make the company vulnerable or that dis6ualify it from pursuing an

attractive opportunity. %inding out the weaknesses of the 'mul is not so easy. %or more accurate

analysis, weaknesses should be searched from the management point of view and also from the

'mul/s competitors.

Potential nternal @ea%nesses

=o clear strategic direction


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#hreats:

+rat is a "ajor un-avora#l situation in ."ul/s nviron"nt! +rats ar i"$*i"nts

to t ."ul/s currnt or *sir* $osition! (istoricall, trats av #n *-in* in tr"s o-

t ."ul/s co"$titors, #ut "or rcntl t -ocus as $an** to inclu* govrn"nt,

unions, socit, an* otr staol*rs! Man ti"s t trats ar out o- "anag"nt/s

control! caus o- tis it is vr i"$ortant to co$ )it trats! +rats ar not also co"

-ro" trnal nviron"nt! +r can # cass, tat t intrnal nviron"nt o- t -ir" is

t sourcs o- trat!


Potential Eternal Threats *ntry of competitors in home market

Eising sales of substitute products

Slower market growth

Costly regulatory re6uirements

2ulnerability to recession and business cycle

4rowing bargaining power of customers or suppliers

Changing buyer needs and tastes

'dverse demographic changes

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10096

80

56

44

0

10

20

30

40

50

60

70

80

90

100

Milk Buttermilk Curd Paneer Lassie

products

Amul products (Ratio)


15 Are you selling the folloing productB

Response Ta,le/

ar Chart of Data Ta,le/


$il% uttermil% Curd Paneer 3assie

100 = 80 #= ""

44


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his 6uestion was asked to know about the experience of the retailer in this field means

from how many years he is doing this business >y asking this 6uestion came to know

that =" retailers were doing business from ;)0 years while !8were 8)@ years while

more experienced were only "



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.5 (rom here you purchase the productB

Response Ta,le/

holesaler Retail mall

= "

Pie Chart of Data Ta,le:

From where to purchase

96

4

!"olesaler #etail mall

his 6uestion leads me to get the information that how many retailers buy the amul

product i.e. milk, buttermilk, aneer, curd, "assie from mall.. Eetailers were mainly

buying milk product from wholesaler #(istributor$.

y asking this 6uestion came to know that =of Eetailers are buying amul product

from distributor only and only "were buying from mall which mainly includes tea stall

owner.



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"5 Are you selling other ,rand productB

Response Ta,le/

Pie Chart of Data Ta,le/

70

30

ot sl l ing %l l ing

have included this 6uestion to know that retailers are selling other brand product or not

and if they are selling then which brand product they are selling. %rom this 6uestion got

information that mainly retailers are buying milk and buttermilk and some "assie from

distributor while others are selling loose product which are home made like paneer and

curd . >y asking this 6uestion came to know that 70were not selling other brand

product while ;L retailers were selling other brand product like 4ayatri dairy milk,

while many were selling loose product.


)elling &ot selling

!0 80

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#5 Do retail mall affect your ,usinessB

Percentage 2isited Retailers

&o Affect + 11 to ! 1+ 1;

! to . +; @

. to " @

# 1

3ess than 10 1+ 0

100 #0

32

1220

8

16

12

$o %&&e't 1 to 2 2 to 3 3 to 4 5 Less t"an 10

have included this 6uestion to know that are retailers making profit or loss in amul milk

made items business .%rom this 6uestion got information that mainly .! retailers arenot at all affected by mall while 1!were very less affected and !0 retailers were

affected by +) L and 1L retailers were affected by # and 1! retailers who were

affected by less than1; L. So from this we can come to know that due to opening of mall

retailers were very minutely affected.



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Sales Promotion Tools %

10

70

12

8

(i&t Pri'e o&& )ree *ou'"er +ra*el tri,


=5 @hich of this promote your ,usinessB +ive ran%

Response Ta,le/

+ift Price off (ree voucher Travel trip

10 70 1! 8




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have included this 6uestion to know that which marketing tools help retailers to increase

sales of milk product. >y asking this 6uestion came to know that 70prefer price off,

1!retailers preferred %ree 2oucher Scheme while 10retailers preferred 4ift scheme

while only 8retailers preferred ravel trip scheme.

75 Do season affect your ,usinessB

Response Ta,le/



:es &o

# #

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Percentage

637

4

13

13

(oar*ings ios (an*out )s$a$r +!v

have asked this 6uestion to know that season affect retailers business or not. >y asking this

6uestion came to know #retailers was telling that there is seasonal affect in selling milk

product. Mhile # were not affected by season.

(uring this summer internship have find out some difficulties for the marketing activity

of 4C!!% and operating activity of !other (airy, 4andhinagar. n this pro5ect report

have tried to give better suggestion of my findings. *very organization facing different

types of difficulties in its operational activities, either the organization is production

related or service related or sales related.

(indings/



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he ma5or finding have noted down that 'mul Eetailers have many complain about

dumping and leakage problem.

he distributors or dealers of 'mul are not interested to sell 'mul "assie. hey want

more commission on selling of 'mul "assie.

he 6uantity of damaged pouch is higher.

Some times distributors force fully give product like lassie to sell to retailers.

here were many complaints about amul ice cream and some retailers have changed

to havmor ice cream.

'mul arlors and distributors sometimes do not provide 1;;ml plastic glass with a

pouch of 'mul ro)life robiotic "assie.

!any consumers have complaint about spoiled 'mul "assie or some sale expired

date product.



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Suggestions:


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D)AD2A&TA+E)/

here is loss in profit to retailers due to opening of mall in 4andhinagar and 'hmedabad.

!any customers prefer malls to buy many daily need items.

Mhen customers go to buy things to mall they buy many other daily re6uired things

which again affect retailers of amul.

!any Schemes attract customers towards mall. Schemes like rice off, discount coupon,

gift voucher etc.

here are many sales promotion schemes and offer many customers are attracted to mall

and thus retailers have to face some loss.



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Mhile preparing the pro5ects, came across certain limitations that are mentioned below

*mployee of the organization doesn/t have authority to give all the details about some

confidential matters. So have restricted my self to publicized information like Sales

(ata of 'mul products.

he information provided by the respondents in market survey is based on their memoryrecall which may be again affected by respondent/s own perceptions.

o know about total marketing activity of 4u5arat Co)operative !ilk !arketing %ederation is

impossible in the short time period.

8ba06_amul Marketing Report

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