To Study and Suggest Promotional Strategy for AMUL Curd in Pune City (1)

INTRODUCTION

The dairy industries companies run mainly on the factors such as

availability, service Frequency, affordability, taste and marketing.

Availability plays a vital role because purchasing power depends upon

availability of that product, in case distributors and retailers service

matter a lot. Marketing Mix is the combination of four basic elements

(4P’s) under one head, i.e. Product, Price, Place, and Promotion. It is set

of controllable marketing variables that firm blends to produce the

response it wants in the target market.

The marketing mix will naturally be changing according to the changes in

marketing conditions and also with changing environmental factors such

as technical, social, economical and political affecting each market.

The concept of marketing mix is an important development in the field of

marketing. The determination of marketing mix is the basis of sound

marketing programme. The marketing mix refers to the combination of

marketing decision that are used to market specific products, to specific

markets over specific time period.

Amul is the market leader in the India but it is in growing phase in Pune

city with market leader Chitale. It was found that due to low consumption

of milk, there is no more awareness of milk products here. It was the

major cause to the low selling of “Amul” product.

Finally the whole study of the research work, the company needs the

effective marketing mix including increase the quality of curd, price mix,

advertisement of the product in the local channel and print media for

awareness of “Amul” in the Pune city.

I have done my summer internship training in

_____________________________a FMCG Sector Company under the

brand name “AMUL”. My project title is the “To Study and develop

Promotion strategies for AMUL curd in Pune city.”

Amul is the most popular food brand of India. The project basic objective

is to study the 4 P’s of Amul milk and suggest the promotion strategies

for Amul Curd.

Marketing mix is very useful tool for achieving marketing target. The

Project is concern with to study the PLC of AMUL milk in Pune city,

Ansoff matrix, BCG matrix, channel of distribution of Amul milk,

promotional activities carried out by Amul. Research design followed is

Descriptive Research and In this project the technique of sampling used is

Judgment sampling. Judgment sampling involves the choice of subjects

who are most advantageously placed or in the best position to provide the

information required. Information is collected by personally contacting

retailers through interviews. Types of data analysis techniques used in the

project:

- Tabular analysis.

- Graphical analysis.

- Percentage analysis

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. Dairy, one of the main contributors

to the Indian food processing industry, is leading in terms of growth

prospects among various sectors and India has now become one of the

largest producers of milk and value-added milk products in the world.

The total market size of the dairy industry was Rs. 1,98,000 crores in the

year 2006-07 and is estimated to grow up to Rs. 3,66484 crores. by 2015.

Dairy sector ranks first in terms of prossed food, with 37% of the produce

being processed.

The dairy sector has developed through co-operatives in many parts of

the State. The organised sector of the dairy industry is growing faster than

the unorganised sector. Most of the packed liquid milk segment is

dominated by the cooperatives which contributes about 70% of the total

revenues of the cooperatives.

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 27cents, 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.

Milk Production from 1950 to 2020

1950 – 17 million tonnes

1996 – 70.8 million tonnes




2008 _ 105.8 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)

Table No.1 Market size and composition of Dairy Products

(value in Rs. ‘000 Crores)

Years 2002-03 2006-07 2010-11* 2014-15*

Market size 169 198 269 366

Processed 116 144 190 255

Non-processed 53 53 79 112

Processed

organised

25 34 56 92

Processed

unorganised

91 110 134 163

Graph No.1 Milk and Milk products production in India

2006 2007 2008 200994

96

98

100

102

104

106

108

110

MT

INTRODUCTION AND HISTORY OF COMPANY

AMUL (Anand Milk Union Limited), formed in 1946, is a dairy

cooperative movement in India. Headquartered in the small town of

Anand, Gujarat, it is a brand name managed by an apex cooperative

organization, Gujarat Cooperative Milk Marketing Federation (GCMMF).

Specializing in dairy products, AMUL now takes pride in having built the

largest food product business in the country. Being a part of the Gujarat

Cooperative Milk Marketing Federation (GCMMF), AMUL is a sterling

example of cooperative achievement in the developing world. AMUL

survives and grows on the basis of cooperative culture, cooperative

networking, market acumen and respect for both producer and the

consumer. Presently, it is the most popular food brand of India.

It all began when milk became a symbol of protest

Founded in 1946 to stop the exploitation by middlemen

Inspired by the freedom movement

The seeds of this unusual saga were sown more than 65 years back in

Anand, a small town in the state of Gujarat in western India. The

exploitative trade practices followed by the local trade cartel triggered off

the cooperative movement. Angered by unfair and manipulative practices

followed by the trade, the farmers of the district approached the great

Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to

get rid of middlemen and form their own co-operative, which would have

procurement, processing and marketing under their control.

In 1946, the farmers of this area went on a milk strike refusing to be

cowed down by the cartel. Under the inspiration of Sardar Patel, and the

guidance of leaders like Morarji Desai and Tribhuvandas Patel, they

formed their own cooperative in 1946.

This co-operative, the Kaira District Co-operative Milk Producers Union

Ltd. began with just two village dairy co-operative societies and 247 litres

of milk and is today better known as Amul Dairy. Amul grew from

strength to strength thanks to the inspired leadership of Tribhuvandas

Patel, the founder Chairman and the committed professionalism of Dr

Verghese Kurien, who was entrusted the task of running the dairy from

1950.

HISTORY

The 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 Co-operative 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. 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.

GCMMF Overview:

GCMMF is the India’s largest food products marketing organization. It is

a state level

apex body of milk co-operatives in Gujarat, which aims to provide

remunerative

returns to the farmers and also serves the interest of consumers by

providing quality

products, which are good value for money.

VISION

The vision of AMUL is as follows:

To serve the interests of the milk producers

To provide quality products that offer the best value to consumers for

money spent.

SALES TURNOVER

Table No. 2 Sales turnover of GCMMF

Year Rs. (in millions) US $ (in millions)

1994-95 11,140 355

1995-96 13,790 400

1996-97 15540 450

1997-98 28,840 455

1998-99 22,192 493

1999-00 22,185 493

2000-01 22,588 500

2001-02 23,365 500

2002-03 27,457 575

2003-04 28,941 616

2004-05 29,225 672

2005-06 37,736 850

2006-07 42,778 1,050

2007-08 52,554 1,325

2008-09 67,113 1,504

2009-10 80,053 1,700

2010-11 97,742 2,172

AREAS OF OPERATIONS

Besides India, AMUL has entered overseas markets such as Mauritius,

UAE, USA,

Bangladesh, Australia, China, Singapore, Hong Kong and a few South

African nations. Other potential markets being considered include

SriLanka.

SOME FACTS:

Annual Revenues : $1.33 billion USD

Members : 13 district cooperative milk producers` union

No of Employees : 2.79 million

No of village societies : 13,141

Total Milk handling capacity : 10.21 million liters per day

Annual Milk Collection : 3.05 billion liters

Daily Milk Collection : 8.4 million liters

Milk Drying Capacity : 626 Mts. Per day

Cattlefeed Manufacturing Capacity : 3090 Mts. Per day

ACHIEVEMENTS

AMUL has achieved the following landmarks-

AMUL is the largest food brand in India.

AMUL is the world’s largest pouched milk product brand.

AMUL is the world’s largest vegetarian cheese brand.

CRISIL has assigned its highest ratings of “AAA” to the various bank

facilities of GCMMF.

Product Profile

The PFA act lays down standards of Fat and SNF for various types of

milk, as follows:

FAT SNF

1. Toned milk (Amul Taaza) 3.0% Min 8.5% Min

2. Full Cream Milk (Amul Gold) 6.0% Min 9.0% Min

Amul Milk is available in Pune and surrounding areas in Toned, Full

cream and cow milk varieties. Amul Milk strictly confirms to PFA

standards. Amul keep his standards higher so as to abundantly comply

with the legal requirements and to provide wholesome nutritive food to

his consumers. They are sure of getting milk, which has longer life

because of superior bacteriological quality and state of art processing

technology. The loose milk available from local vendors often does not

confirm to PFA standards. It often has less Fat and less Solid Non Fat

then required.

Why Dahi?

Dahi or Curd plays a key role in the Indian diet and in preparation

of delicious dishes like Dahi Wada, Dahi Batata Puri, Dahi Rice,

Dahi Idli, Dahi Raita, Kadhi and Muglai Food.

It is ideal meal accompaniment and is delicious as well as

nutritious by itself too. It is also used to marinate veg. and non veg.

dishes.

Dahi is well known for its nutritive values.

The answer to making great tasting dishes is fresh, creamy and

good quality dahi – “Amul Masti Dahi.”

Why “AMUL MASTI” Dahi???

Making fresh Dahi is cumbersome, time consuming chore and can

cause great embarrassment to the house wife when it is not

prepared properly.

Dahi prepared by local shop owners or at home varies in terms of

quality & culture used.

Amul Dahi is prepared in controlled conditions i.e. maintaining

proper temperatures to grow beneficial bacteria and to avoid

growth of harmful bacteria.

It is difficult to maintain controlled conditions at Home or at local

shop level.

Many times the quality of Dahi available from the local market is

far from satisfactory and often found to be contaminated as the

culture used do not contain 100% beneficial bacteria.

AMUL MASTI DAHI is a pasteurized product i.e. free from

unwanted bacteria.

AMUL MASTI DAHI is prepared with selected culture having pro

health bacteria. The culture is developed after in depth research.

Superiority of Amul Masti Dahi

Amul Masti Dahi is prepared from purest, freshest pasteurized milk

and it is free from added sugar.

What’s more, Amul Masti Dahi doesn’t contain any preservatives.

Amul Masti Dahi is prepared from certified and selected bacterial

culture which gives excellent curd.

Amul Masti Dahi is hygienically processed and packed in a

reusable plastic tub as well as convenient pouch and thus free from

possible adulteration.

Amul Masti Dahi is high on nutrition and taste.

Thick, creamy Amul Masti Dahi has a rich, glossy texture. Food

tastes even more delicious at the snap of your fingers.

The live microflora in Amul Masti Dahi helps the digestive system

and enhances the immune system’s ability to fight harmful

organisms. It improves the body’s natural defences and helps keep

the body functioning at its best.

Amul Masti Dahi having a probiotic nature contains live bacterial

culture which increases milk digestibility, quickens recovery from

certain types of diarrhea, skin infections, enhances immune

function of the body and encourages the body to function in the

best possible and most natural way.

Amul Masti Dahi contains all goodness of milk such as proteins,

carbohydrates, fats, calcium, phosphorous, magnesium, zinc,

iodine and vitamins.

Lactic acid in Amul Masti Dahi is helpful in absorption and

utilization of calcium.

Amul Masti Dahi is a quality product from the house of “Amul” at

affordable price which gives “value for money”.

Amul Masti Dahi is widely available in: Gujarat, Delhi & NCR,

Western UP, Mumbai, Pune, Nagpur, Raipur, Udaipur, Jodhpur,

Jaipur, Indore, Bhopal, Chennai, and Bangalore.

Price: MRP (Rs./Pack)

COMPETITORS PROFILE

CHITALE DAIRY

Chitale Dairy bears the quality tag of the

Chitale Group.The company

Pack Cup Pouch

400g

m Rs 29 Rs 16

200g

m Rs 15 Rs 09

manufactures and markets highly functional products. These cutting edge

products are manufactured using state-of-the-art technology and find

applications in day-to-day transactions. Chitale dairy annual turnover of

over Rs. 500 crores. Having built a brand identity for itself through the

sheer range and quality of food products over the past five decades &

more, Chitale Bandhu Mithaiwale is today a household name associated

with the eating habits of not just the residents of Pune but all over

Maharashtra. By establishing and operating through various corporate

and non-corporate entities, this business today is a major supplier of food

products all over India and is also slowly but surely establishing itself as

a major exporter of its products. Its present exports are to countries like

the USA, Singapore and Israel. Today the business has grown into a

multi-crore one and is ably handled through a solid distribution and

franchisee network in Pune and across the country. Chitale Bandhu

Mithaiwale acquires all its dairy supplies from the Sangli dairy unit.

Besides this, it has three main manufacturing concerns with multiple units

in and around Pune, where state-of-the-art machinery is in use for

production of various types of sweet, salted and ready-to-eat food

products. These manufacturing units are:

Katraj Dairy

Katraj was incorporated in 1960 with an intension of providing an

organized facility of milk collection for the village level farmers situated

in Pune district. Katraj Dairy started with milk collection of about 0.30

lakh (30.000) litres in the first year of operation and today, has steadily

grown to over 3.25 lakh (0.32million) litres per day and has a financial

turnover of over Rs.150 crores (Rs.1500 million / US$ 33 million) against

Amul’s annual turnover of over Rs. 52554 million / US$ 1325 million.

Katraj Dairy has acheived ISO 9001:2000 & HACCP certification from

DNV in Oct. 2006 & maintained. In Oct. 2009 Dairy has acheived ISO

9001:2008 & HACCP 2006 Dutch Standard from Det Norskey Veritus.

Katraj Dairy with its eight chilling plants and 12 BMC spread almost all

over the district has an installed milk handling capacity of over 5 lakh

(0.50 million) liters per day. The main plant of Katraj is equipped with

modern Pasteurizer, homogenizer, Cream separator, Ghee processing,

automatic packing of milk and milk products and other quality testing

devices and well equipped labs. Katraj Dairy has an installed processing

capacity of 2 lakh (0.2 million) liters per day.

Katraj dairy manufactures / Distributes milk and milk products like

Pasteurized/ Homogenized-Cow milk ,Tonned milk , Double tonned milk

,Standardized Milk, Full cream milk,Cow & Buffello Cream and Ghee,

Shrikhand, Amrakhand, Malai Paneer, Dahi, Flavoured Milk, Lassi, Jeera

Tak, Table Butter, Milk Powder, Softy Ice cream, pedha , Khoa and in the

near future plans to introduce sterilized milk in 200ml bottle and hard

icecream with different flavours in different pack sizes..

All these products are available at Katraj owned parlours at various

locations in Pune City and through appointed distributors and retailing

circuits. Very soon, Katraj plans to introduce an online ordering system

for its distributors/ retailers and consumers.

Katraj products have been in use in thousands of homes in Pune since

1961. Katraj Milk, Katraj Ghee, Katraj Shrikhand, Katraj

Amrakhand,Katraj Lassi,Katraj Jeera tak (buttermilk) , Katraj cream have

made Katraj a leading food brand in Western Maharashtra.

Today Katraj is a symbol of high-quality milk products sold at

reasonable prices, the genesis of a vast co-operative network triumph of

indigenous technology, the marketing savvy of a farmers' organization

Warna Dairy

The 'Warana Dairy', one of the successful' co-operative dairy, was

established in 1968, with the noble purpose of providing an additional

source of income to the farmers from the surrounding villages. This

revolutionary movement has crossed the turnover of Rs. 400 crores per

annum. The dairy has already acquired the ISO 9001-2000 & H.A.C.C.P.

Food Safety Certificate. In addition to this, Warana Dairy houses a plant

of milk processing with the capacity of 10 lac litres per day. It is one of

the most hygienic plant. Along with Warana Shrikhand- an indigenous

Indian sweet,' Warana Milk Powder, UHT Milk in Tetra Pak,Produced in

a quantity of 65 metric tonnes per day, it is exported to gulf nations like

Kuwait, Saudi Arabia and Sharjah, African Countries, Bangaladesh,

China. Warana Shrikhand has set a record of highest selling in India. It's

also one of the most popular products in Maharashtra. All this stands as a

solid proof of the Warana's quality. Soon, these products will be exported

to European countries, US, UK, Russia, South Africa and Bahrain. The

dairy produces various Milk & Milk products like UHT Tertra Pak Milk,

Pasteurized Milk, Milk Powder, Shrikhand, Ghee, Butter, Cheese,Paneer,

Chhass, Dahi, Lassi and many more. The Warana Dairy is now all set to

enter the European market with its wide range of quality products.

Mahanand Dairy

MRSDMM is an Apex Federation of District / Taluka milk unions

established to implement the Operation Flood programme in the state of

Maharashtra. The main objectives of MRSDMM is to procure milk from

the member milk unions at remunerative rates and distribute the same to

the consumers at reasonable rates.

MRSDMM is thus working as a vital link between the milk producers

and consumers and working for the economic development and

upliftment of the farmers in the rural areas.

MRSDMM was established on 09th June, 1967.

At present MRSDMM have 103 member unions (25 District † 59 Taluka

+ 19 Multi-state unions) with more than 24000 primary milk societies &

25 lacs which includes appx. 27000 women members.

MAHANAND DAIRY is the unit run by the MRSDMM, Mahanand

Dairy has made significant growth and progress in the field of

productivity improvement, quality improvement, energy conservation,

cost control etc. due to sincere and dedicated efforts put at all the levels.

The details of significant growth, high lights and achievements of

MRSDMM / MAHANAND DAIRY are as under :

ENHANCEMENT IN MILK HANDLING

MAHANAND DAIRY was established on 18th Aug.1983 with a milk

handling capacity of 4 LLPD and the capacity was expanded up to 6

LLPD during the year 1997-98. At present,Mahanand Dairy is

distributing 4.20 Lacs litres milk per day in Mumbai with the help of one

packing depot strategically located at NewMumbai (Capacity 3.00 LLPD)

The total sale of milk under Mahanand Brand name in the state is 8.5

LLPD including the sale of milk in Konkan, Pune & Nagpur region.

Mahanand Konkan Dairy plant has been established for giving special

impetus for development of backward region. At present, we are selling

about 30,000 ltrs. of milk per day from Konkan Dairy Project.

Mahanand Pune Dairy Plant is established to supply Mahanand MIlk to

the huge population in Pune city and surrounding area. At present, we are

selling about 45,000 ltrs. of milk per day from Pune Dairy Project.

Mahanad Nagur Dairy Plant is establish to provide special impetus to

backward region of Vidarbh in general and Nagpur in particular. At

present we are selling about 50,000 ltrs. of milk from Nagpur Dairy.

Mahanand Dairy Latur : During the financial year 2002-03 the

MRSDMM has taken over the Government Milk Scheme Latur

(GOVERNMENT OF MAHARASHTRA) on long term lease basis (30

years). The Mahanand Latur Dairy Plant has been started to provide

special support to develop dairy activity in Marathwada region. At

present we are selling about 30,000 liters per day of milk from Latur

Dairy Plant.

ORGANIZATION STRUCTURE

Organization Structure is divided into two parts:

· External Organization Structure

· Internal Organization Structure

· External Organization Structure

External Organization Structure is the organization structure that

affects the organization from the outside.

State Level Marketing Federation

District Milk Product Union Ltd.

Village Milk Product Union Ltd.

Villagers

As we know, GCMMF is unit of Gujarat Milk Marketing Federation,

which is a co-operative organization. The villagers of more than 10000

villages of Gujarat are the bases of this structure. They all make village

milk producers union, district level milk producers union and then a state

level marketing federation is established. The structure is line

relationship, which provideseasy way to operation. It also provides better

communication between two stages.

Internal Organization Structure:

The following is internal organization chart of Amul: Organization

Structure Chart

Chairman

Managing Director

General Manager

Asst. General Manager

Finance Production Marketing Sales & Purchase Personnel

Dept. Dept. Dept. Dept. Dept.

A systematic & well-defined organizational structure plays a vital role &

provides accurate information to the top-level management. An

organization structure defines a clear-cut line of authorities &

responsibilities among the employees of GCMMF. The Organization

structure of Amul is well-arranged structure. At a glance a person can

completely come to know about the organization structure.

Amul is leaded by the director under him five branches viz. Factory,

Marketing, Accounts, Purchase, Human Resources Department. Factory

department has a separate general manager under him there are six

braches viz. Production, Stores, Distribution, Cold Storage, Quality, and

Deep-freezing. This department takes care of the factory work. Marketing

department has regional senior marketing manager and under him there is

a regional manager. This department takes care of the marketing aspects

of Amul. Accounts department takes care regarding accounts i.e. day-to-

day work. Under the accountant there is one clerk. Purchase department

takes care regarding the purchase of raw materials and many other things.

OBJECTIVES AND THEOROTICAL CONCEPTS-

Objectivies-

a.primary

To study the 4 p’s of AMUL Curd.

To study product strategies for Growth

To find the problems faced by retailers in selling Curd.

To study the effect of marketing activities on Curd sale.

b.secondary

To study the penetration level of Amul Curd in Pune city.

To collect the information about the competitors.

To introduce new distributors for AMUL Curd and other products

To organize sale promotional activities to improve curd sales.

To generate and secure consumer awareness.

CONCEPTS USED IN THE STUDY-

In order to study and attain above mentioned objectives, it is essential to

study / revise following concepts in marketing in context of present study.

Marketing mix-

The term "marketing mix" was first used in 1953 when Neil Borden, in

his American Marketing Association presidential address, took the recipe

idea one step further and coined the term "marketing-mix". The

marketing mix help us to define the marketing elements for successfully

positioning our market offer. One of the best known models is the Four

Ps, which helps us define our marketing options in terms of product,

place, price and promotion. Use the model when we are planning a new

venture, or evaluating an existing offer, to optimize the impact with our

target market.

Four Ps-

Elements of the marketing mix are often referred to as 'the four Ps':A

prominent marketer, E. Jerome McCarthy, proposed a 4 P classification

in 1960, which has seen wide use.

Product - A tangible object or an intangible service that is mass

produced or manufactured on a large scale with a specific volume

of units. Intangible products are service based like the tourism

industry & the hotel industry or codes-based products like

cellphone load and credits. Typical examples of a mass produced

tangible object are the motor rcar and the disposable razor. A less

obvious but ubiquitous mass produced service is a computer

operating system. Packaging also needs to be taken into

consideration.

Price – The price is the amount a customer pays for the product. It

is determined by a number of factors including market share,

competition, material costs, product identity and the customer's

perceived value of the product. The business may increase or

decrease the price of product if other stores have the same product.

Place – Place represents the location where a product can be

purchased. It is often referred to as the distribution channel. It can

include any physical store as well as virtual stores on the Internet.

Place is not exactly a physical store where it is available Place is

nothing but how the product takes place or create image in the

mind of customers.

Promotion represents all of the communications that a marketer

may use in the marketplace. Promotion has four distinct elements:

advertising, public relations, personal selling and sales promotion.

A certain amount of crossover occurs when promotion uses the

four principal elements together, which is common in film

promotion. Advertising covers any communication that is paid for,

from cinema commercials, radio and Internet adverts through print

media and billboards. Public relations are where the

communication is not directly paid for and includes press releases,

sponsorship deals, exhibitions, conferences, seminars or trade fairs

and events. Word of mouth is any apparently informal

communication about the product by ordinary individuals, satisfied

customers or people specifically engaged to create word of mouth

momentum. Sales staff often plays an important role in word of

mouth and Public Relations.

Size List price Area Advertising

Quality MRP Location Sales promotion

Shape Pricing policy Coverage Publicity

Brand Pricing strategy Transportation Personal selling

Colour Trade discount Warehousing Public relations

Design Price discount Logistics Direct

marketing

Variety Cash discount Material

handling

Packaging Quantity

discount

Channels

Warranty Credit terms Distributor

Guarantee Mode of

payment

Retailers

Accessories Penalty Agents

MARKETING MIX-4P'S

PRODUCT PRICEPLACE

PROMOTION

After sale

service

Installments Dealers

Product

In marketing, a product is anything that can be offered to a market that

might satisfy a want or need.

LEVELS OF PRODUCT:

The levels of product indicate the concept of value hierarchy of the

product. This hierarchy helps the product manager to plane his offerings

accordingly.

1.CORE PRODUCT-It is primary and most basic level of product also

known as generic product. Curd is used as food diet .

2.FORMAL PRODUCT-In addition to the core product, a customer

expects many things. One can satisfy this need with physical attributes,

brand name, packaging, colour, style, and quality.

This helps the seller to give a distinctive appeal to differentiate a formal a

core product.

3.AUGMENTED PRODUCT-The intangible components of product

along with the formal and core component is called an augmented

product. The augmented product is nothing but the associated services

like: Home Delivery, Installations, Customer education and training,

customer care, Warranty and Guaranty, Financing, After sale service,

Replacement policy etc. These intangible services help the product to

deliver beyond the expectation level of the customer.

INTERPRETATIONS-

1. retailers were not satisfied with Amul replacement

policy

2. Credit facility and free samples were not provided to

single retailers.

4.POTENTIAL PRODUCT

Nature of product-

According to type and classification of product curd is convenience-

consumer goods. Curd is perishable goods.

Product mix

1.Length-A category of product that includes different brands of the

same category is called as the product line. Product line generally include

closely related items either in terms of their functions or the benefits that

they provided to the customers.

Line of Amul-

Milk ,Ghee, Bread spread, health drink, Cheese, Ice-Creames, Milk

powders, Melted milk food, Infant food, condensed milk.

Length of amul products-

Amul milk- TAZA , GOLD, SHAKTI, Amul Lite Slim and Trim Milk,

Amul Calci+.

2.Depth-

Depth of product mix refers to the average number of items offered by

the company under one brand within each product line. The depth is

measured by assortment of variants, size, colours, shape, quality, models,

price, tastes, fragrances etc.

For example, Amul Curd in loose package and in tetra pack.

3.Width-

Width of product mix indicates total number of product lines of the

company.

4.Consistency-

Consistency of product mix denotes relativity of closeness between

various product lines of the product mix.

Product lines may be consistent in terms of their:

a. Production requirements

b. Channels of distribution

c. Consumer behaviour

d. End-use and benefits of product

e. Targeted segmented

Product line appraisal-The four dimensions of length,width,depth and

consistency have strong marketing implications on the product line and

vice versa.

INTERPRETATIONS-

As Amul increases its product line length, it shows that it plans to enter

deeper into each of the product market segment .

As Amul increases the width of product mix, it shows that it plans to

capitalised on its good reputation and marketing skills in the existing

market by increasing its presence in other product categories. For

example Ice-cream, Cheese etc.

1.line stretching-Line stretching is the process of lengthening the product

line beyond its current range with an objective to serve a new market

segment or customer group and also to create its presence in the industry,

serve a bigger size market. Line streatching may be carried out in three

ways:

a.Stretching Up -When a company add a high end product in terms of

price and quality to its existing product.

INTERPRETATIONS-

Amul added high end products continuously in metropolitan city like

Mumbai,Ahmedabad etc. This shows that companies try to attempt a new

product comparatively of high prestige, to save the existing or new

segment of market. For example Amul shakti and other Tetra pack milk.

But in pune it has not been use yet.

b. Stretching Down- When a company operating in the upper end market

and wishes to cover the middle or lower end market by introducing a new

product, comparatively of a lower price and prestige, then it is called as

stretching down.

c. Line Filling.

2.line pruning- The act of withdrawing a loss making brand from the

product line is called as line pruning.

Product strategies for growth-

With immense pressure to grow market share and profits, marketers are

always on the lookout for ways to grow their businesses.

Marketers have four variables to play with-

Existing market

New market

Existing product

New product

Using these four variables, a company can have four strategies to pursue.

They can increase their business by serving new products in their existing

markets, existing products in the markets, new product in new markets, or

existing product in the existing market.

M

A

R

K

E

T

S

Product Strategies: The Ansoff Matrix

Market Penetration Product Development

Market Development Diversification

P R O D U C T S

RESEARCH METHODOLOGY

RESEARCH DESIGN FOLLOWED:-

Descriptive Research is the research method used because descriptive

studies embrace a large proportion of market research. The purpose is to

provide an accurate snapshot of some aspect of the market environment.

Descriptive research is more rigid than exploratory research and seeks to

describe users of a product, determine the proportion of the population

that uses a product, or predict future demand for a product. As opposed to

exploratory research, descriptive research should define questions, people

surveyed, and the method of analysis prior to beginning data collection.

In other words, who, what, where, when, why, and how aspects of the

research should be defined.

SAMPLING:-

SAMPLING TECHNIQUE USED

In this project the technique of sampling used Judgment sampling.

Judgment sampling involves the choice of subjects who are most

advantageously placed or in the best position to provide the information

required.

SAMPLE UNIT

In this project case sample were the retailers in Pune region & the aim

was to know the penetration level of Amul Curd and the competitors

present in the market.

SAMPLE SIZE: 134 Retailers

DATA COLLECTION TECHNIQUES: In this project the technique of

sampling used is Judgment sampling. Judgment sampling involves the

choice of subjects who are most advantageously placed or in the best

position to provide the information required.

Information is collected by personally contacting retailers through

interviews. Types of data analysis techniques used in the project:

- Tabular analysis.



SOURCES OF DATA

Internal source-

Information is collected from a data of the company.

External source-

1.PRIMARY DATA

To collect primary data from Retailer’s Questionnaires are used.

Questionnaire are prepared very carefully so that it may prove to be

effective in collecting the right information.

2.SECONDARY DATA

Secondary data collected from different website, Books, etc. This

secondary data formed the conceptual background for the project. This

secondary data was compared with the primary data collected in area.

RESEARCH INSTRUMENT

The research instrument used in the project was Questionnaire to collect

primary information, it provided flexibility by using more close ended

and few open ended questions.

METHOD OF DATA COLLECTION

Information was collected by personally contacting retailers through

interviews.

ANALYSIS AND STATISTICAL TECHNIQUE USED

Types of data analysis techniques used in the project:

- Tabular analysis.



SCOPE OF PROJECT

The study carried out in Pune city so its scope is mainly limited to Pune

city. The product selected for a project is only Curd. Area for research

work is allotted by our company project guide. Sample members are

retailers only.

It gives information about the services given by distributor to their

retailer. It gives information about the competitors’ products. It provides

suggestions to the company to improve their products sales. It gives

information about the sales promotion activities to improve the curd sale.

DATA ANALYSIS AND INTERPRETATION

1) Number of retailers stocking Amul milk.

Table No.5 Number of Amul Retailers

Graph no.3

ANSWE

R

NO.OF

RESPONDENT

PERCENTAGE

YES 67 50%

NO 67 50%

50%50%

NO. OF AMUL RETAILERSANSWER YES NO

INTERPRETATION:

The above graph indicates that only half of the retailers are selling Amul

curd or there is only 50% penetration level of Amul curd in retail outlets

of Punecity.It shows that Amul curd brand is not much popular among

the retailers.

2) Reasons for Amul curd not stored by retailers.

Table No.6 Reasons for non storing of Amul curd

Answer No. Of respondents

Low margin 89

No replacement for leakage 42

No distribution 23

Graph no.4

Low margin

No replacement for leakage

No distribution

89

42

23

Series1 No. Of respondents

INTERPRETATION:

From above graph it is clear that half of the retailers were not satisfied

with Amul replacement and margin policy.

Very less retailers complained about distribution network.

3) Preference of retailer’s to curd brand.

Table No.7 BRANDS RESPONDENTS

Amul 28

Chitale 60

Katraj 28

Others 18

Graph no.5

Amul

Chitale

Katraj

othersBR

ANDS

RES

POND

ENTS

0 10 20 30 40 50 60

PREFERENCE OF MILK BRAND

Series2Series1

INTERPRETATION:

The above graph shows that the Chitale is most preferable brand in

all.

Some retailers also prefers Katraj and others brands.

4) Consumer’s expectation from Amul curd.

Table No.8

ATTRIBUTE RESPONDENTS

Good quality 26

Availability 19

Low price 23

Graph no.6

10

5

10

15

20

25

30

Good quality Availability Low price

ATTRIBUTE

RESP

ON

DEN

TS

INTERPRETATION:

The question asked to the retailers where the Amul curd is being sale,

and tried to collect feedback of customers about Amul curd.

Some retailers are having complaints about availability.

customers are not happy with quality of curd mainly of Amul masti

dahi.

5)Ratings from retailers for attributes of Amul curd.

Table No.9 Ratings for attributes of Amul curd

ATTRIBUTE

S RATINGS

BRAND

IMAGE

QUALITY AVAILABILITY PACKAGING MARGIN

Very Good 50 30 26 10

Good 18 21 12 23

Average 19 25 22 8

Bad 5 3 19

Very bad 41

Total 68 68 68 68 68

Graph no.7

INTERPRETATION:

From the above graph it can be concluded that

QUALITY: Retailers are satisfied with Amul milk quality. Some

retailers are not satisfied with Amul Masti Dahi.

BRAND IMAGE: The graph shows that Amul is having good brand

image.

BRAND IMAGE

QUALITY

AVAILABILIT

Y

PACKAGING

MARGIN0%

10%20%30%40%50%60%70%80%90%

100%

Very badBadAverageGoodVery Good

ATTRIBUTES

RATI

NGS

AVAILABILITY: Most of the retailers were satisfied with the Amul

curd distribution.

MARGIN: Most of retailers were not satisfied with the margin

policy given by Amul.

6)Sources from where retailers get Amul curd

Table No.10 Source for retailers for Amul curd

Graph no.8

96%

4%

No. Of respondentsDistributors Other suppliers

INTERPRETATION:

Almost all retailers purchased curd from Amul distributors.

Answer No. Of

respondents

Percentage

Distributors 65 96%

Other suppliers 3 4%

7)Retailer’s satisfaction with Amul distributor

Table No.11 Retailers satisfaction with distributor

Graph no.9

71%

29%

SATISFACTION WITH DIS-TRIBUTOR

YESNO

INTERPRETATION:

Almost all retailers said that they purchased curd from Amul

distributors.

ANSWE

R

NO.OF

RESPONDEN

T

PERCENTA

GE

YES 48 71%

NO 20 29%

Some retailers are not satisfied with distributors because of the frequent

change in distributors in the area like kondhawa, sahakar-nagar., late

delivery by the distributor etc.

8) Awareness among retailers about different Sales Promotional

activities for Amul curd.

Table No.12

Activities Aware Not aware

Price off 23 45

Free samples 8 60

Advertisement 64 4

P-O-P Displays 57 11

Coupons 61 8

Graph no.10

Price off Free samples Advertisement P-O-P Displays Coupons

238

64 57 61

4560

4 11 8

PROMOTIONAL ACTIVITIESAWARENESS

Aware Not aware

INTERPRETATION:

The graph shows that retailers are aware about the sales promotion

activity

that Amul carried out, but some respondents were unaware about various

activities.

Most of the retailers are aware about advertisement and coupons

scheme during festivals.

Credit facility and free samples are not provided to single retailers.

1.BCG matrix-

Table No.13

Market growth rate 15.89%

Relative shares 9.50%

Data of Amul curd in Pune city

Graph no.11

1 2 3 4 50.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

% growth

% growth

Table No.15 Avg sale and Market share

Brand

Chiral

e Kartaj Amul

Mahanan

d Gokul

Avg

sale(LLPD) 1.66 1.39 0.63 0.46 0.47

Mkt Share 25 21 9.5 7 7

High

Low

High Low

Mar

ket

Gro

wth

Ra

te

STARS ?

(AMUL MILK)

CASH COWS DOGS

The BCG Growth Share Matrix

Interpretation-

From data and graph it clears that amul curd in pune city has market

growth more than 10% and less than 10% relative market share. That

means high market growth and less market share.

According to BCG matrix Amul curd in pune city falls under ‘problem

child’ category.

Suggestions-

SBU(Amul curd in pune) should try to convert into STAR and then into

CASH COWS.

For that it needs to carry-

1) High promotional activities

2) Aggressive advertising

3) High dealer margin- It is prime important for amul curd. As most of

retailers are dissatisfied with margin strategy of amul

Market Share

2. PLC of the

Amul curd in

pune city –

Table No.15 PLC

Graph no.12

2005 2006 2007 2008 20090

10000

20000

30000

40000

50000

60000

LPD

LLPD

The salient features of the growth stage are:

1. Rapid climb in sales.

YEAR 2005 2006 2007 2008 2009

LPD 25878 27217 38614 44902 52038

2. New competitors enter the market and introduce new product thereby

expanding distribution.

3. Prices almost remain the same.

4. Promotional expenditures remain the same.

5. Decline in Promotion-sales ratio.

6.Profits increase because of promotion.

7.unit-manufacturing cost falls.

Interpretation-

The graph and data shows that Amul curd in pune city is in the growth

phase. Growth rate is decreased in last 2 years.

Suggestions-

Sustain rapid market growth through

1. Improves product quality- amul should have to increase better quality

than market leader Chitale to increase the shares in the market.

2. Add new features- Amul curd already changes the packaging of TAZA

3. Enter new segments- To enter the new segments Amul should have to

increase product line in pune city . like introduction of skimmed curd

with tetrapack that already introduced in the metrocity like Ahmedabad,

Mumbai etc. And should also have to introduce 200gm pouch curd

mostly for lower class people, as the number of retailers demanded for

that mostly in Balaji-nagar.

4. Increase distribution coverage.

5. Lower price to attract buyers.

3. DATA ANALYSIS FOR SALES PROMOTION ACTIVITY

We carried sales promotion activity at two places of Pune city

1. Sukhsagar-nagar

2. Kondhawa.bk

Table No.16 Curd Sales in new Retail outlet

Graph showing change in sales of curd after promotional activity

Graph no.13

Graph no.14

SR.N

O

Retail O/L preactivity

sale

Post activity sale

Date 12-07-2010 20 21

1 Hanuman

minimarket

4 7 7

2 Dangi super market 3 3 3

3 Laxmi trading 1 15 15

4 keshar super market 3 10 10

5 Jai bhavani 0 3 3

6 Dhanlaxmi

supermarket

2 6 6

Total 13 44 44

preacti

vity s

ale

activit

y 1 2 3 4 5 6 7 80

5

10

15

20

25

30

35

40

change in sales of milk by promotional activity

1 Hanuman minimarket2 Dangi super market3 Laxmi trading4 keshar super market5 Jai bhavani6 Dhanlaxmi supermarketM

ILK(l)

Table No.17 Total curd sale in new outlets

DAYS

Preactivity Activity 1 2 3 4 5 6 7 8

Total curd

sale/Day

13 120 66 58 61 48 43 43 44 44

Graph no.15

Preact-ivity

activity 1 2 3 4 5 6 7 80

20

40

60

80

100

120

140

6 Total Curd sale/Day

INTERPRETATION:

From the research I get same (trend) data and same response from the

consumers for both areas. So I come out with following observation and

results:

Most of the retail outlets are not interested in Amul curd selling, but after

launching coupons scheme, not only sales shoot up by considerable

amount initially but also remain constant for next days.This is a type of

pulling method by which sells increases from 13 litres to 120 litres and

remain constant to 44 litres after the scheme. This shows that some

consumers are attracted to the scheme while others are willing to buy

Amul curd after the scheme was over.

Retailers were not willing to kept Amul curd after the scheme was over

because of the low margin and frequency of changing the distributors.

Suggestions-

There should be banners and hoarding in the new area where new

distributor has to be launch and promotional activities has to be carried

out. So that lot of people aware about present of Amul Curd and of

scheme.

FINDINGS OF THE RESEARCH

Retailers are not interested because they don’t have storage facility

but if company provides them such facility they will be sale Amul Curd.

Because of low profit margin almost all retailers are not interested in

Amul curd selling.

The 250 ml and 500 ml curd pouch are no available to the retailers for

selling.

On question, why retailers are not interested in selling of Amul curd,

it is found they were not happy with margin, availability and replacement

of leak pouches.

Retailers were selling different brands. Because they were able to

receive more margin from non popularized brand that they could not from

well known brands.

All retailers get Amul curd from company selected distributors.

Measurable amount of retailers were not happy with the distributors,

because of frequent change in distributors and late delivery of milk.

All retailers were familiar with sales promotion activities undertaken

by Amul. But more of the activities were not communicated by

distributors. So it shows that distributors are taking the advantage of such

activities.

When question came to retailers ratings towards Amul curd rating

most of the respondents complaining about profit margin and packaging

date.

SUGGESTIONS AND CONCLUSIONS

Amul has a relatively good distribution network, but still company is

not able to fulfill the demand of outlet in the peak season when demand is

very high. Here company should consider on the supply of product in the

peak season.

Supply should be regular to all the outlets including those that lie in

the pocket roads and not just in the outlets which lie on the easily

accessible routes.

250 mlcurd pouch should make available to retailers for selling.

Improve delivery schedule to provide products on time for the

retailers about who claimed that Amul curd is not available to them on

time. As Amul curd in Pune city is in a growing phase thus there is one

way for Amul to sustain their curd business in the market by delivering

outstanding satisfaction to their retailers, so that they can take interest in

selling of Amul curd products. This can be done by-

Provide reasonable Margin to retailers as compared to competitors,

this motivates them to promote company’s milk and milk products.

Provide consistent service to retailers as this will help gain company

goodwill in the market.

Do not change distributor frequently, because he is the only person

who act as a connecting link between company and retailers.

Do not place more than one distributor in same market area.

Incentives & schemes should be given to the retailers and some

scrutiny should be follow to check the scheme get being communicated

properly by distributors or sales person.

Company should provide advertising facility like outside wall

painting; provide company’s stand boards, Posters which help to sell

Amul curd.

CONCLUSIONS-

The Amul milk has a strong brand name. It is in the growing phase of

PLC in a Pune city. It falls under ‘problem child’ of BCG matrix.

Company should increase promotional activities to attract new customer

and also use different growing strategies like market penetration method

to increase the sales.

Amul should changes the policies according to the change in the area like

margin level, replacement policy etc.

LIMITATIONS OF THE RESEARCH

The survey is limited only for 4 Areas.

Time period of the project was 8 weeks, which may not be enough to

Understand the whole market.

Sample size (134) of project was too small as compare to total area

covered.

Respondent hesitate to give true response to question.

Bibliography

1. Rajan Saxena; Marketing Management, published by The McGraw-

Hill companies, 4th edition, Page No.232-234.

2. Late Dr. P.C.Pardeshi; Basics Of Marketing, published by Nirali

prakashan, 3rd edition; July 2009, Page No.5.5.1 to 5.5.4.

3.Prosenjit Datta; The Marketing Whitebook, published by

Businessworld, 6th edition; Jan 2010, Page No.107-109.

4.Chetan G. Chaudhari; Marketing Management, published by Nirali

prakashan, 3rd edition; Jan 2010, Page No. 1.1 to 1.10.

5.<http://money.howstuffworks.com/customer-service.htm> assessed on

Monday 7th August

2009, 6:30p.m

6. www.amul.com

7. <http://www.amul.com/achievementsdairycoop.html> assessed on

12/07/2010, 5:35p.m.

ANNEXURE

QUESTIONNAIRE

(Retailer Survey)

Name of the shop: __________________________________________________

Retailer Name: ____________________________________________________

Address: __________________________________________________________

1) Do you stock Amul Curd?

a) Yes

b) No

2) If yes, which type of packs do you store?

a) Cup

b) Pouch

3) If No, Why?

a. Absence of packaging date

b. Low margin

c. No replacement for leakage

d. Low distribution

4) What size of Amul Curd packets do you prefer to store?

a) 200gm

b) 400 ml

5) Which type of Products of Amul Curd packets do you prefer to store?

a) Amul Masti Dahi

b) Amul Prolife Probiotic Curd

6) Which is the most preferable brand of packaged curd that you stock?

Amul

Chitale

Katraj

Others

7) Which company makes better product packaging

Amul

Chitale

Katraj

Others

8) According to you, which company makes good promotional offers?

Amul

Chitale

Katraj

Others

9) From where do you get Amul Curd?

a) Distributors

b) Other suppliers

10) Are you satisfied with Amul distributor?

a) Yes

b) No

11) How much Amul Curd stock do you keep?

a. 0-50 units

b. 50-100 units

c. 100-200 units

d. 200 + units

12) Do you know which Sales promotional activities does the company

undertake for Amul Curd?

a) Price off d) Free samples

b) Coupons

c) Advertisement f) P-O-P Displays

13) What is consumer’s expectation from Amul Curd?

a) Good quality

b) Packaging

c) Availability

14) Give your ratings to following attributes of Amul milk.

Very good Good Average Bad Very bad

a) Quality

b) Brand image

c) Availability

d) Margin

To Study and Suggest Promotional Strategy for AMUL Curd in Pune City (1)

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