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PROJECT REPORT

By Chinmay Bande.(A-65,Marketing-

09313326439,[email protected])

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

FEDERATION GCMMF: 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).

World's Major Milk Producers (Million MTs)


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Research and Development in Dairy Industry

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.

Products and Industry Status

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.

Investment Potential in Milk Products

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 imported, manufacture of casein and lactose has good scope in the country.


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Exports of milk products have been decentralized and export in 2005-2010 is estimated at 71.875 cr.

Production of Milk in India

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

Vallabhbhai Patel, who was a leading activist in the freedom

movement. Sardar Patel advised the farmers to sell the milk on


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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.

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


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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 manufacturing Capacity:

3090 Mts per day


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Gujarat Cooperative Milk Marketing Federation

GCMMF: 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,

· 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.


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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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Ownership Pattern of Amul

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.

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.

Information about Competitors

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:-


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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 · Sphurti Ghee · Krishna Ghee · ChitaleGhee

4) For Chocolate · Cadbury · Max · Dairy Milk · Five Star

· Bar One

· Perk

· Nestle


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Achievements \ awards:

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 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.


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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,

Buying formula theory,

Behavioural equation theory

Prospecting: the planning work, which is essential in

eliminating calls on nonbuyers


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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

5) Executive

Each evening make daily work plan for the next day

Organise field activity for minimum travel & maximum

calls


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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,Bawdhan

2) 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

methods

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


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


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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).

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.


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(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.

(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.


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(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.

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


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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- 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.


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UCVA MODEL

= X X

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

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)


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These POP instruments of advertisements are explained in detail

as follows:-

POP COMMUNICATION

It can be done in following ways:-

1) Table tends: free standing tents made of heavy paper stock

primarily used in restaurants, bars, food outlets introducing

new item on menu.


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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

.

4) Display racks: used in retail grocery shops or small stores

announcing special prices, important information about the

merchandise in the rack.


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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.

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.


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CHECKLIST

Sales and related areas

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


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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.

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.


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Pricing

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. Competition

2. 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:


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BRANDING

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


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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 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

http://www.amul.com/













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"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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