LOYOLA INSTITUTE OF BUSINESS ADMINISTRATION

CHENNAI-600034

MINI PROJECT REPORT ON MARKETING

STRATEGIES FOR AMUL CHOCOLATES

SUBMITTED BY

RAMYA.A (EMSM15079)MAVERIC BATCH-12(TNFA)

CHAPTER 1

EXECUTIVE SUMMARY:

The Rs 2,500-crore Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), or

Amul. Amul began the dairy cooperative movement in India and formed an apex cooperative

organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which is jointly

owned by some 2.2 million milk producers in Gujarat, India. Now, not only had the milk

collection and the number of co-operative members increased but Amul were also giving a stiff

challenge to the multinationals.

Chocolate consumption in India compared to other countries is extremely low. Per capita

consumption is around 160gms in the urban areas, compared to 8-10 kg in the developed

countries. In rural areas, it is even lower. Chocolates in India are consumed as indulgence and

not as a snack food.

The main objective is to know the market position of Amul chocolates and to know strategies

of their competitors. Currently Amul is having five variants under his umbrella brand that are

Pure Milk Chocolate, Fruits and Nuts, Fundoo, Bindaaz and Almondbar, In an attempt to boost

sales, the company has launched three new chocolates in Market under the brands Fundoo,

Bindaaz and Almond Bar. While the first two have been priced point at Rs 10 for a 30 gm stick,

Almond Bar carries a price tag of Rs 10 for a 35 gm chocolate, Fundoo is available in Rs 5 price

point also. This is one of the shortcomings as Cadbury have price points from Rs 5 to 50 ranges.

Amul also have very few variants as comparison to Cadbury India. The company's festival

season pack "Rejoice" now comes with six chocolates in the city up during the festive season last

year.

After conducting survey of Customers, I analyzed sale of Amul chocolates are not quite good

in market as in front of it Cadbury is one of the biggest competitor more over Amul doesn’t

provide any kind of services like Dispensers, Glass top fridges and Replacement facilities for

their chocolates as their competitor are providing to their Retailers. Another competitor in this

field is NESTLE.

The problems that these Dairy chocolate (Amul) giants faced were in the way their chocolates

would be displayed in urban, premium and super markets. The chocolates were kept without

bottlers and dispensers and without the proper cooling equipment the chocolates in almost all the

places would melt since they would get heated at 40 C and would lose its taste. Thus the superior

product they would aim to tantalize the market with, would not work with bad pieces and

melting disadvantages by only providing dispensers but special types of table top coolers as

Cadbury preserve its product even in the remotest of rural outlets and create brand visibility

through the colorful display options.

These coolers today help in sales generation and brand visibility not ignoring efficient cooling

that protects and preserves the real taste of Cadbury' s chocolates in a very cost effective manner,

Amul should not overlook this fact.

In customer segments Children’s and college student showed most tempting towards

chocolates. Most of the Consumers were not satisfied as they want improvement in present Taste

of chocolate and mostly satisfied consumers showed positive allure towards Pure Milk chocolate.

Survey also revealed that price is not the influence factor for chocolate consumption but its

Company’s Brand name and taste of chocolate which influence them most. Presently there is no

schemes for Customers from Amul, and as children and teenagers are their main target

customers, they are most attracted by the schemes available like Cadbury is offering Tennis Ball

with pack of Heroes and Perk of Rs 40. With sum up of all of these reasons customers are not

satisfied with Amul Chocolates.

Amul is getting ready to challenge Cadbury in the moulded chocolate market. The co-

operative, which has been lying low for a while with its generic chocolate variants such as Fruit

& Nut and Milk, now intends segmenting its chocolates, catering to different age-groups and

categories that are likely to consume its brand. Encouraged by the rising numbers, GCMMF has

drawn up plans to make its chocolate business a separate division of the company.

CHAPTER 2

MAIN OBJECTIVE OF THE MINI PROJECT:

The main objective of this mini project is to know the market potentials and awareness about

new variants of Amul chocolate.

Other objectives are

To find the market share of Amul in chocolate segment

To know Customer’s perception towards Amul chocolate.

To make comparative study of different variants of chocolates.

To find out the potential market mainly for new variants (like Fundoo, Bindaaz).

To give proper suggestions or recommendation the company so that can overcome from

their weakness and increase their sales

CHAPTER 3

PROFILE OF THE ORGANISATION:

Type : Cooperative

Industry : Dairy/FMCG

Founded : 1946

Headquarters : Anand, Gujarat, India

Key people : Chairman, Gujarat Co-operative Milk Marketing Federation Ltd.

(GCMMF)

Products : milk powders, milk, butter, ghee, cheese, dahi, yoghurt, buttermilk,

chocolate, ice cream, cream, shirkhand, paneer, gulab jamuns, flavoured milk, basundi and

others.

Revenue : US$3.4 billion(2014-2015)

No. Of employees : 750 employees of Marketing Arm. However, real pool consist of 3.6

million milk producer members.

Slogan : The Taste of India

Website : www.amul.com

PROFILE OF THE PRODUCT:

AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, and

Chocolate mass

CHOCOLATES: MAJOR TYPES & BRANDS

Types Brand

Moulded chocolates Dairy Milk, Truffle, Amul Milk Chocolate,

Nestle Premium, Nestle Milky Bar, Nestle

Classic

Count lines 5 Star, Perk, Kit Kat, Munch

Panned products Gems(Cadbury), Nutties, Marbles (Nestle)

AMUL CHOCOLATE

“GIFT FOR SOMEONE YOU LOVE”

DIFFERENT VARIANTS OF AMUL CHOCOLTES AND THEIR

RELATIVE PRICING

SL.

NOBRAND/PACK

MRP TRADE

PRICE

DISCOUNTED

PRICE

NET

MARGI

N

1. Amul Milk Chocolate 35g Rs.10 Rs. 9.13 Rs. 8.70 15 %

2. Amul Milk chocolate 18g Rs. 5 Rs. 4.56 Rs. 4.34 15.1 %

3. Amul F&N chocolate 30g Rs. 15 Rs. 13.87 Rs. 13.21 13.5 %

4. Amul Fundoo 30g Rs. 10 Rs. 9.00 Rs. 8.57 16.7%

5. Amul Fundoo 15g Rs. 5 Rs. 4.50 Rs. 4.28 16.7 %

6.Amul Bindaaz chocolate 30g

Rs. 10 Rs. 9.00 Rs. 8.57 16.7 %

7.Amul Almond Bar 35g Rs. 10 Rs.9.00 Rs. 8.57 16.7 %

Marketing Mix

TARGET MARKET

In market as there many types of products are available so it becomes difficult for the

marketers to peruse the right segment market so that they can position their product effectively to

target customer. In order for this they use mix of tools of marketing, which is, know as marketing

mix.

Marketing mix is a set of marketing tools that the firm uses to peruse its marketing objectives

in the target market. Theses tool s can be classified broadly into four Ps of marketing, Product,

Price, Place, and Promotion.

Marketing mix

PRODUCT PRICE PLACE PROMOTION

1. Variety 1. List Price 1. Channels 1. Advertisements

2. Quality 2. Discounts 2. Coverage 2. Sales Force

3. Design 3. Allowances 3. Locations 3. Public Relations

4. Brand Name 4. Credit Norms 4. Inventory 4. Direct Marketing

PRODUCT –

Product is the offering that is made to customer, which satisfy their wants. This is the most

important tool that company uses to attract consumer. As for Amul butter is their most profit-

earning product as Dairy Milk for Cadbury.

PRICE –

Price is the critical marketing tool. Price is namely the amount of Money that customers

have to pay for the product. It is only mix that produces revenue for the company.

The two-price points under which Amul Chocolates are available are Rs 10, and Rs 5.

PLACE –

A place is key marketing mix tool, stands for the various activities the company undertakes to

make the product accessible and available to the Target Customers.

PROMOTION –

Promotion is an important tool, which stands for the various marketing activities that the

company undertakes to promote its product to the target market.

As Amul now provide schemes to Retailers of 1 unit Free with 20 units of Amul Chocolates.

Promotional Mix

Promotion consists of those activities that are design to bring companies goods or services to the

target customers. The promotional activities are concerned with:

Informing the people about products distinct wants—satisfying characteristics and its

availability.

Reminding people periodically about the product and its roles.

Persuading the people, prospective buyers that make people do what they might not

otherwise do what they do not really want to do.

Promotional Tools

1. ADVERTISING:

On one hand advertisement can be use to build up a long term relationship for a product

(utterly buttery delicious), Advertisement is an effective way to reach numerous geographically

dispersed buyers at a low cost per exposure. Certain forms of advertising such as TV advertising,

can require a large budget, while other forms, such as newspaper advertising can be done on

small budget.

2. SALE PROMO:

Companies use sales promo tools to create a stronger and quicker response. Sales

promotion can be used to dramatize the product offer and to boost sagging sales. Sales promotion

effects are usually short run, however, and not in building long run Brand preference.

3. DIRECT MARKETING:

The message is normally addressed to a specific Person and does not reach other. It can

be customized to appeal to the addressed individual. It can be prepared very quickly for delivery

to an individual.

4. PUBLIC RELATION AND PUBLICITY:

Public relation can reach many prospects who might avid sales people advertising, a

potential for dramatizing the company product. A well thought public relation program

coordinated with promotion mix elements could be extremely effective.

CHAPTER 4

RESEARCH DESIGN

SAMPLE DESIGN:

Of the total sample design Customer surveyed was formulated on basis of Selective

sampling–A total 30 Customer Surveyed.

SOURCES OF DATA

Data were collected from two sources –

Primary sources -

Which include Questionnaire, Direct interview and data collected on personal observation.

These are the data, which are collected on self-basis.

Secondary Data -

Which Include Journals, Magazine, News Paper And Net. These are the data, which are

collected o from the secondary sources, which are made available by other organization or

company through their annual report’s or journals or news magazine.

TOOLS OF ANAYSIS

The Major tools of analysis were

Questionnaire

Direct Interview/ Observation Method

1. Questionnaire method:

The questionnaire was formulated based on customer’s survey.

2. Observation method:

In observation method, different customers who deal with different brand of

chocolates were surveyed by putting forth different types of questions. They were then analyzed

and compiled the provided data through Graphical representation.

CHAPTER 5

ANALYSIS OF MARKET RESEARCH DATA:

1. Do you like to have a chocolate?

88%

12%

YES

NO

OPTION NO. OF

RESPONDENTS

PERCENTAGE

YES26 88

NO 4 12

ANALYSIS: The analysis shows that 88% of consumer surveyed consumes Chocolates.

This show Chocolates are well preferred in Consumer Market.

2. How often do you use chocolate?

a) Daily b) Twice in week c) Weekly d) Occasionally

Daily Twice in a week

Weekly Occasionally02468

10121416

35

7

15

DailyTwice in a weekWeeklyOccasionaly

OPTIONS NO. OF

RESPONDENTS

PERCENTAGE

DAILY 3 10

TWICE IN A WEEK 5 17

WEELKY 7 23

OCCASIONALLY 15 50

ANALYSIS: The rates of consumption of Chocolates are less Frequent i.e. occasionally. So

companies should try to make consumption of a Chocolates a daily habit of consumer as

foreign companies do.

3. Which type of chocolate you like most?

a) Wafers types b) Nutties types c) Pure chocolate

13%

23%64%

Waffers

Nutties

Pure Chocolate

OPTIONS NO. OF

RESPONDENTS.

PERCENTAGE

WAFERS 4 13

NUTTIES 7 23

PURE CHOCOLATE 19 64

ANALYSIS: About 64% of the consumers prefer pure chocolate compared to nutties which

is consumed by 23% if consumers and wafers by 13% of consumers.

4. Which brand of a chocolate you prefer most and why?

a) Amul b) Nestle c) Cadbury.

3%

35%61%

AMULNESTLECADBURY

OPTIONS NO.OF

RESPONDENTS

PERCENTAGE

AMUL 3 10

NESTLE 10 36

CADBURY 17 61

ANALYSIS: Cadbury is the most popular brand in the market and is the biggest competitor

of Amul Chocolates. Nestle is the next preferred brand.

5. Have you ever tried Amul chocolate?

Sales

YesNo

OPTION NO. OF

RESPONDENTS

PERCENTAGE

YES6 17

NO 24 83

ANALYSIS: People are quite not well aware of Amul Chocolates. As about 17 % of customer

surveyed are consuming Amul Chocolates. Amul chocolates are not quite popular because of

lack of promotion as the major reason.

6. If yes how did you find it?

a) Very good b) Satisfactory c) Poor.

OPTION NO. OF RESPONDENTS PERCENTAGE

VERY GOOD 3 50

SATISFACTORY 2 33

POOR 1 17

50

33

17

Sales

Very good

Satisfactory

Poor

ANALYSIS: The Graph shows that image of Amul Chocolates are quite Satisfactory

in the eye of Consumers Surveyed. The company Should require improving its Brand Image

in Chocolate Market By increasing satisfaction level of consumption.

7. What makes you to buy for Amul chocolate?

a) Good taste b) Brand name c) Advertisement d) Reasonable cost

17%

50%17%

17%

Good TasteBrand NameAdvertisementReasonable Cost

OPTION NO. OF RESPONDENTS PERCENTAGE

GOOD TASTE 1 17

BRAND NAME 3 49

ADVERTISEMENT 1 17

REASONABLE COST 1 17

ANALYSIS: This shows that the brand name first attracts the customer to buy your product.

Then comes the taste which is of equal importance as the brand name. Enough

advertisements and reasonable cost will promote the sales of your product.

8. With increase price will you still buy your favourite chocolate?

69%31% YES

NO

OPTIONNO. OF RESPONDENTS PERCENTAGE

YES 23 69

NO 7 31

ANALYSIS: This shows irrespective of the increase in price, customer will buy your product

once they have gained trust. So price change will not affect your customers much.

9. Do you feel that there should be any improvement in Amul chocolate?

a) Yes b) No

83%

17%

YESNO

OPTIONNO. OF RESPONDENTS PERCENTAGE

YES 25 83

NO 5 17

ANALYSIS: The above graph shows that 83% of the customers are not satisfied.

10. What do you think must be improved in Amul chocolate?

a) Change in packaging b) change in taste c) reasonable pricing

29%

53%

18%

Change in PackagingChange in TasteReasonable Pricing

OPTIONNO. OF RESPONDENTS PERCENTAGE

CHANGE IN PACKAGING 1 29

CHANGE IN TASTE 3 53

REASONABLE PRICING 2 18

ANALYSIS: This analysis shows more than 50% of customers wants a change in its taste.

Hence the company must focus on improving the taste first taking into consideration the

healt aspects of the consumers.

11. Any suggestions

PERSONAL DETAILS

Name: Age:

Address:

No. of family members: Phone No.:

Your monthly Savings: Your monthly Expenses:

CHAPTER 5

FINDINGS:

Chocolates in India are consumed as indulgence (pleasure) and not as a snack food

People are not regular customers of chocolates because out of 30 surveyed customer only

10 % has polled for daily.

People are well aware of Amul chocolates but of old variant mostly milk chocolate. And

prefer less in comparison to Cadbury.

Presently Cadbury is most preferred brand in chocolate market.

People prefer pure chocolate mostly over wafer and nutties.

Brand name influence the sale of chocolate up to greater extent. In case of product like

chocolates taste is very important factor .

Most of the consumer surveyed are not satisfied with the taste of Amul chocolates and

want buttery type taste as similar to that of Cadbury chocolate.

Mostly surveyed customer consumes Cadbury and is loyal towards their brand, which

means a tough task for Amul to turns customers loyalty.

Pure milk chocolate of Amul is mostly demanded among all variants of Amul Chocolate

Dairy milk of Cadbury is most preferred chocolate in over all chocolate market.

Children and College Students are the main consumers of chocolates to whom Amul

should do their product positioning.

CHAPTER 6

RECOMMENDATIONS:

Improvement in taste is must (Should be more Buttery like Cadbury Dairy Milk)

Should make packaging more attractive and glossy as packaging affect psychologically

on people’s mind.

Try to introduce more variants and different price points

Should make attractive ads and promos of chocolates, as there is no advertisement till

now.

Customer schemes should be made available like KIT – KAT of Nestle.

Should try to provide proper service to its distributors as Nestle is providing so that they

can be fully satisfied.

More flavors should be introduced as Nestle have at present.

Go for good Brand Ambassador as Amitab and Pretty Zinta for Cadbury and Rani

Mukheerje for Nestle Munch.

Should Improve distribution Channel so as to make Amul chocolates available at every

shop.

Should provide Sale services (Dispenser, Coolers)

Should provide Facilities of Credit and Replacement of out Dated and Damaged

products.

Company should launch Wafers types of Chocolate as Perk and Kit-Kat are mostly in

demand.

Company should also offer Schemes or free gifts to customer as presently no Schemes for

Customers are there.

Small shop Should Not Be Neglected.

CHAPTER 7

CONCLUSION:

The Amul chocolate’s marketing strategies were studied. Amul being a well known brand in

India for its food and diary products failed to showcase its brand in chocolate. The various

reasons behind this were studied. Different types of questions were asked among people

especially teenagers and youngsters since the volume of chocolate consumed by them are more

and observations were made. Analysis was made on the results and suggestions were given.

People were too asked to give their suggestions on the improvement of Amul chocolate on

various aspects. Based on the results of the questionnaire session, it is clear that there is a good

scope of improvement in the sales of Amul provided there is a good taste irrespective of the

increase in cost. It is important to maintain the same brand name under all the fields and products

an organisation establishes. If a particular product is not encouraged among consumers for

various reasons, it is likely that all the other product that organisation establishes will also be

affected. In turn the brand name which it had acquired will fall. To avoid these, if a particular

product fails initially, reasons are to be found, SWOT analysis must be formed and rework must

be done based on the suggestions given.

CHAPTER 8

REFERENCES:

Www.Amul.Com

www.wikipedia.com

Www.Indiadairy.Com

Www.Indiainfoline.Com

Www.Google.Com

Www.Cadburyindia.Com