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PROJECT REPORT

By Chinmay Bande.(A-65,Marketing)

Sadhana Centre For Management And Leadership Development, Pune.

“MARKET DEVELOPMENT FOR NEWLY APPOINTED DISTRIBUTORS OF AMUL BEVERAGES IN PUNE”

Gujarat Cooperative Milk Marketing Federation(GCMMF)

UNDER GUIDANCE OF-

Mrs.Richie Agarwal (Sr. Sales Executive)

Mr.Atul Suru (Assi.Gen.Manager,Sales)

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ACKNOWLEDGMENT

I would like to take this opportunity to express my since gratitude to all those who guide me in right direction to complete this report.

I express my deep sincere gratitude to Prof.M.S.Pillai, founder director of Sadhana Centre For Management And Leadership Development (SCMLD) for his encouragement throughout the course of this study.

I also take this opportunity to thank all my teachers for their constant guidance and assistance throughout this study.I also express my sincere thank to my both mentors Mrs.Richie Agarwal and Mr.Atul Suru for their constant support and guidance throughout the project.

I would also like to heartily thank my friends Ankur, Hanif, Nikhil, Sourabh and Siddhartha for helping me at every point of time.

At last but not least my grateful thanks to the distributors allotted to me Mr.Palkar and Mr.Prince Calra, who kept faith in me.

Chinmay Bande.Marketing (A-65),Sadhana Centre For Management And Leadership Development,(SCMLD).

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Sr. no Topic Page no.

1 CERTIFICATE OF COMPLETION 4

2 FOOD INDUSTRY PROFILE 5

3 MILK PROCESSING INDUSTRY PROFILE 7

4 INTRODUCTION AND HISTORY OF AMUL 12

5 GUJRAT COOPERATIVE MILK MARKETING FEDERATIONGCMMF: AN OVERVIEW

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6 AMULS SECRET OF SUCCESS 16

7 NEED FOR THIS PROJECT 26

8 BACKGROUND STUDY 27

9 SPECIFIC OBJECTIVES OF PROJECTS 29

10 TOPIC SELECTED FOR STUDY 30

11 JUSTIFICATION OF TOPIC SELECTED FOR STUDY 31

12 TENTITIVE LIST OF HYPOTHESIS 32

13 SCOPE OF THIS STUDY 32

14 UTILITY OF STUDY 32

15 ACTUAL STUDY 33

16 RECOMMENDATIONS 37

17 OPERATIONAL PROCEDURE FOR IMPLEMENTATION 41

18 CHECKLIST 48

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FOOD INDUSTRY PROFILE

The food industry is the complex, global collective of diverse businesses that together supply much of the food energy consumed by the world population. Only subsistence farmers, those who survive on what they grow, can be considered outside of the scope of the modern food industry. The food industry includes:

Regulation: local, regional, national and international rules and regulations for food production and sale, including food quality and food safety, and industry lobbying activities

Education: academic, vocational, consultancy

Research and development: food technology

Financial services: insurance, credit

Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural construction, etc.

Agriculture: raising of crops and livestock, seafood

Food processing: preparation of fresh products for market, manufacture of prepared food products

Marketing: promotion of generic products (e.g. milk board), new products, public opinion, through advertising, packaging, public relations, etc

Wholesale and distribution: warehousing, transportation, logistics

Retail: supermarket chains and independent food stores, direct-to-consumer, restaurant, food services

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ADVANTAGE OF INDIA UNDER FOOD INDUSTRY

India is one of the largest food producers in the world

India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies Investment requirement of around US$ 15 billion exists in the food processing sector

India is looking for investment in infrastructure, packaging and marketing

India has huge scientific and research talent pool

A largely untapped domestic market of 1000 million consumers

300 million upper and middle class consume processed food

200 million more consumers expected to shift to processed food by 2010

Well developed infrastructure and distribution network

Rapid urbanization, increased literacy, changing life style, increased number of women in workforce, rising per capita income- leading to rapid growth and new opportunities in food and beverages sector

50 per cent of household expenditure by Indians is on food items

Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia)

Under the food industry, Dairy product is very important part of food processing. Dairy processing is acting good role in India.

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MILK PROCESSING INDUSTRY PROFILE

Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge for practical purposes. Dairy technology has been defined as that branch of dairy science, which deals with the processing of milk and the manufacture of milk products on an industrial scale.

The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world.

The dairy sector has developed through co-operatives in many parts of the State. During 1997-98, the State had 60 milk processing plants with an aggregate processing capacity of 5.8 million litres per day. In addition to these processing plants, 123 Government and 33 co-operatives milk chilling centres operate in the State.

Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at around Rs7,00,000 mn.

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Milk Production from 1950 to 2020

· 1950 – 17 million tonnes· 1996 – 70.8 million tonnes· 1997 – 74.3 million tonnes· (Projected) 2020 – 240 million tonnes· Expected to reach- 220 to 250 mt – 2020

India contributes to world milk production rise from 12-15 % & it will increase up to 30-35% (year 2020).

W orld's M ajor M ilk P roducers (Million MTs)

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R esearch and D evelopment in D airy I ndustry

The research and development need to the dairy industry to develop and survives for long time with better status. The various institute and milk dairy companies R&D results provide base for today’s industry growth and development. The research and development of products of dairy, like yogurt and cheese market research and company reports provides insights into product and market trends, analysis opportunities, sales and marketing strategies will help local milk unions to develop and spread worldwide through obtaining this knowledge. Specific on market share, segmentation, size and growth in the US and global markets are also helps industry to expand its market worldwide even small union also.

P roducts and I ndustry S tatus

Among the products manufactured by organized sector are Ghee, Butter, Cheese, Ice-Creams, Milk powders, Melted milk food, Infant food, condensed milk etc. some milk products like Casein and Lactose are also being manufactured lately. Therefore, there is good scope for manufacturing these products locally.

Liberalization of the economy has led to a flood of new entrants, including MNCs due to good prospects and abundant supply.

I nvestment P otential in M ilk P roducts

At the present rate of growth, India is expected to overtake the US in milk production by the year 2010, when demand is expected to be over 125.69 ml.tn. Being largely

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imported, manufacture of casein and lactose has good scope in the country.Exports of milk products have been decentralized and export in 2005-2010 is estimated at 71.875 cr.

P roduction of Milk in I ndia

The facts and figures here shown are calculated on the basis of percentage increases pear year.

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India ranks first in the world in terms of milk production. Indian production stands at 91 million tonnes growing at a CAGR of 4 per cent. This is primarily due to the initiatives taken by the Operation flood programmes in organizing milk producers into cooperatives; building infrastructure for milk procurement, processing and marketing and providing financial, technical and management inputs by the Ministry of Agriculture and Ministry of Food Processing Industries to turn the dairy sector into viable self-sustaining organized sector. About 35% of milk produced in India is processed. The organized sector (large scale dairy plants) processes about 13 million tonnes annually, while the unorganized sector processes about 22 million tonnes per annum. In the organized sector, there are 676 dairy plants in the Cooperative, Private and Government sectors registered with the Government of India and the state Governments. India has a unique pattern of production, processing and marketing/consumption of milk, which is not comparable with any large milk producing country. Approximately 70 million rural households (primarily, small and marginal farmers and landless labourers ) in the country are engaged in milk production. Over 11 million farmer are organized into about 0.1 million village Dairy Cooperative Societies (DCS)(about 110 farmers per DCS). The cumulative milk handled by DCS across the country is about 18 million kg of milk per day. These cooperatives form part of a national milk grid which links the milk producers throughout India with consumers in more than 700 towns and cities bridging the gaps on account of seasonal and regional variations in the availability of milk.

The Ministry of food Processing Industries is promoting organized Dairy processing sector to accomplish upcoming demands of processed dairy products and helping to identify various areas of research for future product development and quality improvement to revamp the Indian dairy export by way of providing financial assistance to the dairy processing units. 32 Units have been sanctioned financial assistance (Rs.591 lakhs) under the plan scheme of the Ministry during the year 2006-07.

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INTRODUCTION AND HISTORY

In the year 1946 the first milk union was established. This union was started with 250 litres of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name AMUL in 1955.

The brand name Amul means “AMULYA”. This word derived from the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005).Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast cooperative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”).

In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates’ farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word.

However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar

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Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk.

These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village cooperative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union.

However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfil the farmers demand.

Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Cooperative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL.

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At these initial stage only 250 litres of milk was collected every day. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs litres of milk every day. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centres in various villages. Milk is collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955.

Members: 13 district cooperative milk producers' Union

No. of Producer Members:

2.7 million

No. of Village Societies: 13,141

Total Milk handling capacity:

10.21 million litres per day

Milk collection (Total - 2007-08):

2.69 billion litres

Milk collection (Daily Average 2007-08):

7.4 million litres

Milk Drying Capacity: 626 Mts. per day

Cattlefeed 3090 Mts per day

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manufacturing Capacity:

Gujarat Cooperative Milk Marketing FederationGCMMF: An Overview

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.

Sales turn over from 1994 to 2008

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AMUL'S SECRET OF SUCCESS

The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good.

Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere.

Amul has been able to:

· Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations,

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· Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment.

· Provide a support system to the milk producers without disturbing their agro-economic systems,

· Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers and

· Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense, Amul is an example par excellence, of an intervention for rural change.

The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. Basically the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA.

Amul (Anand milk union ltd.) is based on four hands, which are coordinated with each other. The actual meaning of this symbol is co-ordination of four hands of different people by whom this union is at the top position in Asia.

1. First hand is of farmers, without whom the organization would not have existed.

2. Second hand is of processors, who process the row material (milk) into finished goods.

3. Third hand is of marketer, without whom the product would have not reached the customers

4. Fourth hand is of customers, without whom the products would have not carried on.

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O wnership P attern of A mul

Amul is a co-operative sector & it is having 22 total numbers in societies. In addition to this there is total 1800 manpower in organization.

Gujarat co-operative milk marketing federation ltd. widely known as GCMMF faces through competition in the Indian market by different companies. So that by advertising and promoting its product GCMMF has become one of the leading dairies in India. In western of India, GCMMF shares most of the market while in other parts of India it is next so. But slowly and surely GCMMF is growing in sharing the market with other competitors industries.

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Now there is machinery around Rs. 1500 lakh which is to be in expansion with higher advanced machinery to Rs. 1600 lakhs.

Accumulated members share capital in union is Rs. 553,935,000 this share capital is deposited in Amul bank account in the name respective member dairy co-operative societies.

I nformation a bout C ompetitors

The Indian market is dominated by a large number of small local manufacture and regional players. There are an estimated 150 manufactures in the organized segment which account for 30-40% of sales and about 1000 units in the unorganized segment of the market.

They have also competitor in the market. They felt very tuff competition in our country and outing countries.

Competitors according to product category are as follows:-

1) For Liquid Milk· Chitale Milk· Gowardhan Milk· Mother Dairy· Katraj Milk· Rajhanse Milk

2) For Ice-Cream Product

· Gokul Ice-Cream· Mother Dairy Ice-Cream· Shriji Ice-Cream· Dinshaw Ice-Cream· Kavare Ice-Cream· Vadilal Ice-Cream

3) For Ghee Product· GowardhanGhee

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· Sphurti Ghee· Krishna Ghee· ChitaleGhee

4) For Chocolate· Cadbury· Max· Dairy Milk· Five Star· Bar One· Perk · Nestle

A chievements \ a wards:

Amul a co-operative society and its co-operation has led many different awards in its favour.

· Magsaysay award for community leadership presented in manila,

· Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien

1964: “Padmabhusan” award given to Shri T.K. Patel

1965: “Padmshri awarded was given to V. Kurien, general manager, by the president of India

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1987: “Best Productivity” awarded by national productivity council for the year 1985-86 awarded to Amul dairy.

1988: “Best Productivity” awarded for the second successive year 1986-87 by the president of India, Mr. R. Venkatrao to kaira union.

1993: “ICA” Memenoto towards genuine and self sustaining co-operative worldwide ICA regional office for Asia and pacific, New Delhi, 1996.

1999: G.B.Birla award.

Moreover the Amul union has achieved the prestigious ISO 9001-2000 and HACCP Certificate and effects are got to obtain ISO 14000.

List of Product Marketed.

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Need For This Project

Up to April 2009 all products sold the umbrella brand of Amul are sold to the retailers through one distributor only. But since mid April according to new adopted corporate strategy of Amul they divided all products into two categories as-

1. Products which requires cold storage to store at distributor(Amul Ice-cream ,Butter,cheese)

2. Products which doesn’t require cold storage at distributor(Amul Beverages and Ghee)

At retailers level all Amul products require cold storage before selling to consumers; here we are talking about requirement of cold storage at distributor level before supplying products to all retailers. So now these two types of product categories are sold by two different distributors.

So now there is need to guide these newly appointed distributors for Amul beverages and ghee:-

To set all procedures in place, Manage, motivate sales force, Solve territory conflicts, And improve the efficiency of their business. Also help them to develop his market in given territory in

Pune, To increase the sales and try to find if any problem to do

so and find solution for that problem.

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BACKGROUND STUDY

To get conceptual knowledge regarding this project I did following things:-

1) I read book ‘Marketing Management-Philip Kotlar’ (chapter no.15: Designing And Managing Integrated Marketing Channels).

Channel management decisions, Training and motivating channel members, Evaluating channel members Channel conflict(types, causes and their management) Different channel levels(0,1,2,3)

2) I also read book ‘Sales Management-Pearson Education’.

Theories of selling AIDAS theory, Right set of circumstances theory,

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Buying formula theory, Behavioural equation theory

Prospecting: the planning work, which is essential in eliminating calls on nonbuyers

3) I read book ‘Spin Selling-Neil Rackham’.

Difference between large and small sales and their characteristics

Distinct steps of sales-1) Opening the call, 2) Investigating needs, 3) Giving benefits, 4) Objection handling, 5) Closing the call

Different closing techniques- Assumptive closes=assuming that the sale has

already made. For example-“Where would you like it delivered” before the customer has made the purchasing decision.

Alternatives closes=giving customer options assuming customer has made purchase decision. For example-“Would you prefer delivery today or tomorrow?”

Standing-room-only closes=telling him that if he doesn’t make decision now, I’ll have to offer it to another customer.

Last-chance closes=telling him that prices go up next week, so pressing to buy it.

Order-blank closes= filling in the customer’s answers on an order form, even though the buyer has not indicated a willingness to make a buying decision.

4) I have studied Amul’s website also.

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SPECIFIC OBJECTIVES OF THE PROJECT

There were six main objectives of the project and they are defined as following:-

1)Sales Make regular calls Handle questions and objections Check stocks, discover possible markets for products Estimate retailers potential needs Emphasize quality Explain company policy on price, delivery, and credit Get the order

2)Service Install the product or display Report product weakness, complaints Handle requests, returns, and allowances Handle request for credit Handle special orders Establish priorities, if any Analyse local conditions

3)Territory Management Arrange route for best coverage Balance effort with customer against the potential

volume Maintain sales portfolios, samples and so forth

4)Sales Promotion Develop new prospects and accounts Distribute home office literature, catalogues Make calls with salespeople Train personnel Present survey reports

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5)Executive Each evening make daily work plan for the next day Organise field activity for minimum travel &

maximum calls Prepare and submit reports on trends and

competition Investigate lost sales and reasons for loss Attend sales meetings Build a prospect list Collect overdue accounts, report on faulty accounts Collect credit information

6)Goodwill Counsel customers on their problems Maintain loyalty and respect for the company

TOPIC SELECTED FOR STUDY

1) To prove that there is need of point of purchase (POP) display programme at retailers of Amul.

2) To design a point of purchase (POP) display programme for retailers of Amul beverages.

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JUSTIFICATION OF THE TOPIC SELECTED FOR STUDY

I worked for summer project for two months (May & Jun 2009) with two newly appointed distributers for Amul beverages and ghee (products for which no cold storage is required at distributor) in Pune.

1) Vayanktesh Sales,Bawdhan2) Fairdeal,Mundhawa

During my work I came across two main problems to achieve my objectives of Project and they are as:-

1) Poor display of products at retailers= products allotted to me i.e. beverages are seasonal in nature (mostly sold during summer season). Also these are impulse products. Consumers don’t usually go to shop to have Amul beverages; they go there to quench their thirst so here displays play very important role in making final purchase decision by consumer. So I decided to design a POP display programme for Amul beverages to increase the probability of their sale.

2) No fixed model for functioning for salespeople= as these new salespeople are new with no prior history of sales for beverages, no quotas, without knowledge for market need/potential for Amul beverages and no well defined role of salesmanship for them, they used to work as per their convenience and in turn creating problems for achieving project objectives. So I decided to create a model for salespeople to make them work to their maximum efficiency and increase sales.

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TENTATIVE LIST OF HYPOTHESIS

By the preliminary research I have done and by observation I came to the hypothesis that ‘Amul need to do Point of Purchase (POP) display at retailers in Pune.’

SCOPE OF STUDY

Geographical Scope:- research is done in the territory that comes under distributors allotted to me in Pune i.e.-

1. Vyankatesh distributor= Bawadhan, Karvenagar, Deccan, WAraje, Paud Road

2. Fairdeal distributor= Mundhawa, Camp, Magarpatta City, Hadapsar

Type of Data Collected:- primary data Methods of data collection:-observation and interview

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UTILITY OF THIS STUDY

Products allotted to me i.e. beverages are seasonal in nature (mostly sold during summer season). Also these are impulse products. Consumers don’t usually go to shop to have Amul beverages; they go there to quench their thirst so here displays play very important role in making final purchase decision by consumer. So there is need of point of purchase display at retailers and it will definitely help achieve the objective of the project i.e. to increase the probability of consumer buying Amul’s products.

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ACTUAL STUDY

1) Opinion towards Products:

The behaviour of users after his commitment to a product has been collected with respect product and terms of satisfaction with rating scale. The following are the data obtained related to AMUL Milk & Milk products.

Interpretation:25% of the respondents rated that AMUL Milk & Milk products are Excellent. 48% of the respondents rated as good, 22% of

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the respondents rated as Average Quality. 05% of the respondents rated that AMUL Milk & Milk products are Poor.

2)Factors considered to make purchase decision:

Identification of various factors plays a vital role in consumer behaviour study. The various factors such as quality, price easy available etc. Is influencing lot and influences positively. The following data reveals how various factors are influencing to buying of Amul Milk and Milk products.

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Interpretation:38% of respondents buying AMUL Milk & Milk products for its Good Quality, 28% of respondents use for its Band Name, 20% of its Price consideration, 14% of its easy availability of respondents buying AMUL Milk & Milk products.

All 86% of respondents who don’t buy Amul beverages because they are easily available when interviewed agreed that due to no displays at retailer they don’t come to know what all products he has so they often demand for products which they know only. So I concluded that it is very important to design POP display programme for Amul beverages.

3)Common Complaints:

A customer cantered organization makes it ways for its customer to deliver suggestion and complaints. Many firms provide form for collecting feedback on products and some

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time customer complaints and suggestion about products. In this survey, common problems raised by the customer or not.

Interpretation:Only 10% of the respondents said that that there is no problem is AMUL Milk & Milk products. 90% of the respondents are said that no problems in AMUL Milk & Milk products.

When those 10% respondents who are unhappy have one common complaint poor display of products at retailers.

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RECOMMENDATIONS

(1)From above research it is clear that there is dire need for Point Of Purchase display programme for retailers of Amul. Also, I have hardly seen any advertisement at the retailers which can make consumer aware that we exist. Also all products of my distributer are stocked in warm shelf. Their shelf display was also poor i.e. our products are placed at backside of shelf, which directly affect our sales as all our products are impulse. And most products being seasonal we really need to make our product visible everywhere, at least at retailer’s place.

When I put myself into consumer’s shoe, generally I don’t go into a shop to drink Amul’s beverage. I go there because I am thirsty, now if our display is poor, I am going to buy that beverage which has consisted most share of mind (SOM) which is decided by communication mix and factors (reach, impact and frequency) of that communication tool (TV, radio, print, other medium) used or by advertisement at point of purchase (pop).

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Example-

If I am thirsty and go to shop to drink something, if I see some Amul’s products POP (Poster etc.). I‘ll most likely to buy Amul’s product. So if we work more on POP displays, which I think help Amul to sale better in our season.

(2)In today’s cut throat competition POP displays aren’t option but compulsion to get maximum sales.

-If we see Amul beverage’s competitors are as:-

Water Pepsi products Coca-Cola products Juices Local cold drink manufacturers Street Hawkers selling Nimbupani etc.

-We can classify all these into 3 main categories as:-

Competitors Substitutes Threat of new entrants

In this cut throat competition all trying to eat same pie. POP can help us to fight back. And I think today extensive use of POP is not an option for us, it is rather compulsion for us because our competitors are doing it and that is helping them to attract some of our customers.

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(3)In warehouse while staking the products, on the boxes instructions are clearly mentioned about maximum no. Of boxes which can be staked one above other but here these instructions are not followed which can increase waste. So distributer’s should be made aware about this and asked to instruct concern person to follow the instructions on boxes strictly.

(4)Recommendations for handling sales force:-

1)We know,

Total sales volume per day= Order per retailers X No. Of

Retailers covered

Now based on this we can increase the sales in two ways as-

Increasing volume of order from each retailer: By using personal salesman skills By using personal repo By taking help of our products which are sold

under Pull Factor i.e. Masti buttermilk or no. Of boxes of buttermilk will be decided on the basis of order volume of other products from same retailers. Because they cannot afford not to keep that product.

Make good use of schemes to push products.

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Increase the no. Of retailers covered per day By adding new 5 shops per day to your earlier list of

retailers visited per day (+ 5 FORMULA ) By adding snacks centres, college canteens, small

hotels etc.

2) As per my observation, salesman is finding it a bit difficult to push our products harder when it comes to –

very low margins for all our products as compared to our competitors

our no replacement strategy no credit facility available

So salespeople should follow the below mentioned approach for getting orders from retailers:-

Likely arguments done by them and probable answers for them

How to make use of schemes to push our products Average targets to be achieved for each beat

3) I think to deal with this we can train our salesman or at-least give a structured speech to talk for all these problems. I believe these are such problems which cannot be removed but only be managed. So such structured speeches can make our salesmen better equipped to manage such situations and keep getting larger sales orders. Also it can help us by avoiding any chance of brand erosion even in minds of the retailers

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OPERATIONAL PROCEDURES FOR IMPLEMENTATION OF THE RECOMMENDATION

Our markets can be segmented along 3 lines:- Kirana shop Volume Chemist’s product portfolio Hotel Cluster

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1. On basis of Kirana shop volume- Economy Deluxe Super Deluxe

2. On basis of Hotel Cluster- Convenience Snack Centres

3. On basis of Chemists Product Portfolio-

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Where;- Economy= retailers having sales volume above average

per day for that distributor Deluxe= retailers having sales volume average per day for

that distributor Super Deluxe= retailers having sales volume below

average for that distributer Convenience= includes outlets which are small eating

centres, generally accessible locally. These are often located alongside busy roads. Here one can stand and does not have place to sit. It includes STD booths/Pan-Beedi shops/Bakery/Sweet Shops/Juice centres/Soft Drinks Shops/Tea Shops etc.

Snacks Centres= includes outlets selling items to eat and the outlet should have place to sit. It includes sit down restaurants/Bars/Dhabas/Cafes etc.

UCVA MODEL

= X X

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GROSS PROFIT NO. OF RETAILERS IN GIVEN TERRITORY (UNIVERSE)

% OF RETAILERS THAT BUY OUR PRODUCTS

(CUSTOMER)

Volume of products per order purchased

(VOLUME)

AMOUNT OF PROFIT IN Rs. PER PURCHASE OREDR (AMOUNT)

X

Now each element of this mathematical formula decides what facilities will be given to any retailer for point of purchase advertisement such as:-

Universe: Shelf Talkers, Counter Tops Customer: Cooler, Table Tends, Shelf Talkers, Counter

Tops, Rack Display Volume: Rack Display, Shelf Talkers, Table Tends Amount: Higher Margin Pack, Extra Schemes, Coupons

These POP instruments of advertisements are explained in detail as follows:-

POP COMMUNICATION

It can be done in following ways:-

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1) Table tends : free standing tents made of heavy paper stock primarily used in restaurants, bars, food outlets introducing new item on menu.

2) Shelf talkers : cards that can fit into store aisles from clips on shelves to inform schemes like ‘On Sale Now',' Imported ‘ in drug stores or in grocery shops.

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3) Counter tops : these are same like shelf talkers but larger in size (“8.5 x 11”) including information such as pricing , contest

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.

4) Display racks : used in retail grocery shops or small stores announcing special prices, important information about the merchandise in the rack.

Now after distributing above mentioned POP instruments on the basis of the criteria as explained earlier; there is need to monitor these instruments and score them so retailers have its importance and they participate equally to make this model successful.

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After implementation of this POP display programme next time onwards whenever salesman will go to that retailer to get order he’ll fill the scorecard for that retailer on following parameters:-

Availability: availability of all products Activation: effective use of POP instruments provided by

distributor

If all these things (products & POP instruments) are in place then for each one element retailer will get 1 mark each and then all points will be added to come to a grand-total for each retailer in the territory of that distributor and these scores will decide following things:-

Schemes Coupons Any other facility such as cold storage Bonus etc.

CHECKLIST

Sales and related areas

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A sales is primarily a process of exchange of products or services against a price. Sales Management is the planning, direction, and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying, and motivating, as these tasks apply to the personal sales force. However, all the above tasks come down to two important aspects, one, understanding what the customer needs and secondly, what strategies the organization is following to meet those needs and also add value to the customer at every step of interaction.

Moreover, a robust and reliable marketing channel is required to achieve and share the common objective. It should be focussed not only on serving the market needs but also analyzing and creating needs not met by anyone in the industry. Amul has appointed its dealers with a view to cater to meet different needs more effectively. It has segregated its distributors area wise as well as the type of product (freezing, non- freezing products, etc) to be stocked at their respective storage location. Furthermore, each area is divided in small areas of six to seven routes, usually called the Beat Routes, comprising of many areas within that vicinity. The distributor then divides the areas accordingly and the sales team is required to visit this areas on the respective days allotted. For example, if it’s Saturday, the salesman covers the beat routes that would include Kalyani Nagar, Viman Nagar, Koregaon Park, etc.

Similarly, a 24 hour turnaround time (TAT) is strictly followed by the delivery team to ferry and deliver the goods at the retailer’s shop. This ensures timely fulfilment of goods as sought by the customer. In today’s volatile market everyone is trying to eat into its competitor’s market space. So it becomes all the more important for a company to constantly fulfil the demands at a faster rate.

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Amul’s success largely depends on the distribution channel that includes its own sales force to manage existing and new channel partners to the sales force working with the distributor. As Amul Beverage is an impulse product, it does not require the company to go to each and every customer to make them aware of the products. However, aligning better promotional schemes at both customer and consumer level elevates the chances of better sales figures.

Customers have a certain notion about the brand a product belongs to and the various attributes associated with it. Amul, over a long period of time, has been able to retain the customer’s perception of a quality oriented, a high focus on health and right pricing. This clearly gives Amul an advantage. However, as per my observation, Amul would do much better if it includes a better price margin for the retailer. Also, directing sales promotion at distributors, retailers, and the sales force will yield better results. Each member in the marketing channel would work harder if offered price-offs, advertising and display allowances, and free goods.

Pricing

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Pricing is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service. Price is the only element of the marketing mix that produces revenue; all other elements represent costs. It is also one of the most flexible elements of the marketing mix. It can be changed quickly. At the same time, pricing can be the number one problem: How to generate sufficient sales while maximizing profits?

Amul has successfully been able to employ both Value pricing as well as Going Rate pricing strategy to its product range. Value pricing involves winning loyal customers by charging a fairly low price for a high quality offering. It is thus redirected towards becoming a low cost producer without sacrificing quality to attract a large number of value-conscious customers.

Besides, the pricing strategy at Amul also emphasizes the profit of those thousands of farmers who are the real owners of the company. After covering its operational, administration, other managerial expenses whatever profit is left with the company a large part of it is distributed among the farmers who provide milk to the company for making various dairy products.

AMUL also takes into consideration the following things in order to decide upon the prices of its products, these are:

1. Competition2. Tendency of delivering economical products at best and

affordable prices.3. To maintain the brand image and also to be the favourite

of millions of hearts by rightly known as “The taste of India”.

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A schematic of Amul pricing strategy is shown below:

BRANDING

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BRAND EQUITY:

Brand equity is the added value endowed to products and services. It may be reflected in how consumers think, feel, and act with respect to the brand, as well as in the prices, market share and profitability the brand commands for the firm.

AMUL, Asia’s largest milk brand, has leveraged a strong customer franchise by introducing an array of noncarbonated milk-based products and has thus, remained contemporary and relevant to the emerging market segments. An advertisement for one of the new products from the company.

GCMMF Ltd. that owns AMUL, Asia’s largest milk brand, realized that with the changing lifestyle and increased awareness about health issues, there has been a discernable shift toward health-based drinks from carbonated drinks. To utilize the potential of flavoured milk, butter milk, and other milk-based beverages that have an age-old tradition in India, AMUL entered the ready-to-drink beverage market with a series of new products. These included the launch of Amul kool (flavoured milk) in 2003, Amul kool lassee in2004, Amul masti spiced butter milk in 2005, Amul kool café in 2006, and kool koko in 2007.To facilitate stocking and merchandizing, these beverages were offered in takeaway glass bottles and cans, or easy-to-carry tetra packaging that had a shelf life of 6 months at room temperature. These beverages were targeted at teenagers and the youth, who were the biggest consumers of colas and aerated drinks. These new variants of the brand were advertised through major national channels with special focus on youth-oriented television channels like MTV and cartoon network. Benchmarking the distribution system followed for soft drinks, all the offerings were made widely available with point-of-sales support to ensure visibility at key outlets. By identifying the trend and introducing variants of the brand. Amul has emerged as the fastest growing brand in the noncarbonated soft drinks category.

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Unique Advertising

1)Mascot:- ‘Amul Butter Girl’

It was created by da Cunha Communications 33 years ago. It is about six months back that the agency created the Amul Cheese Boycharacter to promote Amul's cheese range of products. In effect, the company rolled out two television commercials for its cheese brand "Amul Cheese Slice" with the base line -- Amul Cheese, Yes Please!

The search contest is in two stages. The first round is at the state level which is underway. In this, a student has three tasks at hand: identifying10 visual clips, designing a calendar page corresponding to the participant's birthday month and naming five objects that he/she would take from India to settle on the moon. GCMMF plans to short-list the best 12entries for the calendar page to compile its calendar for the year 2000.

The contest is conducted in three categories - standards 5, 6 and 7 being clubbed into two groups while standard 9 is a standalone group. ``Each group will have two winners from each state who will head for the finals to zero in on one Amul Cheese Boy and one Amul Butter Girl,'' adds Sodhi.

The grand finale is to be hosted in Anand (Gujarat) in a three-day affair where the All India Amul Butter Girl and Cheese Boy will be selected through a wide range of activities testing the overall abilities of the child. It will be conducted by Siddharth Kak, the host for Amul Surabhi. While the winners at the state level could walk away with Amul gift hampers and prizes like walkmans, calculators, certificates and medals, the

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final winners will each receive a state-of-the-art Pentium computer.

For popularising the contest, the company has been going directly to more than 3,000 schools in the last four months across the country. The panel of judges have also taken help of Amul dealers and distributors to reach the schools. Says Sodhi: ``We are targeting the students only through their schools.''

The contest details have been uploaded on the Amul website (www.amul.com)too. Apart from that the final contest will be telecast as a special Amul Surabhi show on Doordarshan. The Amul Surabhi programme has already been listed in the Limca Book of Records for being the longest running prime time television programme with the highest measured viewership (14.5 lakh letters) every week.

Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. The pun in her words has been popular.

2) Commenting jovially on the latest news or current events:-

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Amul "Utterly Delicious" Parlours: "Amul Preferred Outlets"(APO).

Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat. Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country.

Amul has created Amul Parlours at some prominent locations in the country, which are run by the company or its wholesale dealers:

i. Delhi Metro Rail Corporation ii. The Somnath Temple

iii. National Institute of Design

iv. Infosys Technologies in Bangalore, Mysore & Pune

v. Wipro campus in Bangalore

vi. L.J. College, Ahmedabad

vii. Ahmedabad Airport

viii. Surat Municipal Corporation

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ix. Delhi Police

x. Gujarat State Raod Transport Corporation

xi. Jubilee Mission Medical College, Trichur, Kerala

xii. Sanjay Gandhi Hospital Parlour, Amethi

xiii. Indian Institute of Management, Kolkata

xiv. Cafe Amul, MDG, Gandhinagar

"Amul Utterly Delicious" parlours are an excellent business opportunity for investors, shopkeepers and organizations. In order to come closer to the customer, we have decided to create a model for retail outlets, which would be known as "Amul Preferred Outlets"(APO).

REFERENCES:-

Amul annual report Marketing Management by Kotler Amul.com Wikipedia.com Marketing Research by Dull Hawkins

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