Market Penetration of Amul Milk - baixardoc

The Taste of IndiaThe Taste of India

PROJECT REPORT ONPROJECT REPORT ON

“A Study on Penetration of Amul Milk in Retail“A Study on Penetration of Amul Milk in Retail

Outlets of Pune City”Outlets of Pune City”

This study was conducted from 8This study was conducted from 8thth June 09 to 8June 09 to 8thth August 09August 09

AtAtGujarat Co-operative Milk Marketing Gujarat Co-operative Milk Marketing FederationFederation

LtdLtd..

BY:BY:SUMEET SINGH JASROTIASUMEET SINGH JASROTIA

PGDMPGDM

OFOF

A report submitted in partial fulfillment of A report submitted in partial fulfillment of thetherequirements of requirements of PGDM (2008-10)PGDM (2008-10)

Company Company Guide: Guide: Faculty Faculty Guide:Guide:Mr. Mr. PRANIL PRANIL JADHAV JADHAV Prof. Prof. K.K K.K BHASINBHASINSENIOR EXECUTIVES (SALES)SENIOR EXECUTIVES (SALES)OF GCMMF LTD PUNEOF GCMMF LTD PUNE

AASSIIAAN N SSCCHHOOOOL L OOF F MMAANNAAGGEEMMEENNTT 11


INDEXINDEX

S.NOS.NO

..

CCOONNTTEENNTTSS PPAAGGEE

NO.NO.

11 AACCKKNNOOWWLLEEDDGGEEMMEENNTT 33

22 DDEECCLLAARRAATTIIOONN 44

33 CCEERRTTIIFFIICCAATTE E BBY Y GGUUIIDDEE 55

44 IINNTTRROODDUUCCTTIIOON N TTO O TTHHE E PPRROOJJEECCTT 66

55 EEXXEECCUUTTIIVVE E SSUUMMMMAARRYY 88

66 IINNDDUUSSTTRRY Y PPRROOFFIILLEE 99

77 CCHHAAPPTTEER R 11- - IINNTTRROODDUUCCTTIIOON N AANND D 1133

HISTORY OF THE COMPANYHISTORY OF THE COMPANY

88 CCHHAAPPTTEERR--2 2 OOBBJJEECCTTIIVVE E AANND D SSCCOOPPEE 2255

99 CCHHAAPPTTEERR--3 3 RREESSEEAARRCCH H MMEETTHHOODDOOLLOOGGYY 2266

1100 CCHHAAPPTTEER-R-4 4 DDAATTA A AANNAALLYYSSIIS S AANND D 2288

INTERPRETATIONINTERPRETATION

1111 CCHHAAPPTTEERR--5 5 LLIIMMIITTAATTIIOONNSS 3399

1122 CCHHAAPPTTEERR--6 6 FFIINNDDIINNGGSS 4400

1133 CCHHAAPPTTEER-R-7 7 SSUUGGGGEESSTTIIOONNS S AANND D 4411

RECOMMENDATIONSRECOMMENDATIONS

1144 AANNNNEEXXUURREE 4422

115 P5 PRROODDUUCCT T PPRROOFFIILLEE 4455



ACKNOWLEDGEMENTACKNOWLEDGEMENT

With immense pleasurWith immense pleasure, I would like e, I would like to present this project report for to present this project report for Kaira DistrictKaira District

Co-oCo-operperativative e MilMilk k ProProducducers’ ers’ UniUnion on LtdLtd., ., AnaAnandnd. . It It hahas s bebeen en an an enenririchchininggexperience for me to undergo my summer training at AMUL, which would not haveexperience for me to undergo my summer training at AMUL, which would not have

possible without the goodwill and support of the people around. As a student of possible without the goodwill and support of the people around. As a student of ASIAN SCHOOL OF MANAGEMENT, PUNEASIAN SCHOOL OF MANAGEMENT, PUNE I would like to express my sincereI would like to express my sincerethanks too all those who helped me during my practical training programme.thanks too all those who helped me during my practical training programme.

Words are insufficient to express my gratitude towardWords are insufficient to express my gratitude toward Mr. Pranil YadavMr. Pranil Yadav, the pune, the punehead of head of AMULAMUL..

At last but not least my grateful thanks is also extended toAt last but not least my grateful thanks is also extended to Mrs. Madhavi KhareMrs. Madhavi Khare

(Director (Director ’ ASIAN SCHOOL OF MANAGEMENT’’ ASIAN SCHOOL OF MANAGEMENT’ Pune) and my thanks to all myPune) and my thanks to all myfaculty members for the proper guidance and assistance extended by them. I am alsofaculty members for the proper guidance and assistance extended by them. I am alsograteful to my grateful to my parents, friends, parents, friends, to encourage & to encourage & giving me moral giving me moral support.support.

However, I accept the sole responsibility for any possible error of omission andHowever, I accept the sole responsibility for any possible error of omission andwould be extremely grateful to the readers of this project report if they bring suchwould be extremely grateful to the readers of this project report if they bring suchmistakes to my notice.mistakes to my notice.

DDaattee:: 3311stst January 2010January 2010

PPllaaccee:: PPuunnee

DDuurraattiioonn:: 0088thth June to 08June to 08thth August, 2009August, 2009



DECLARATIONDECLARATION

I hereby declare that the project report entitled “I hereby declare that the project report entitled “A study on theA study on the

penetration of Amul Milk in penetration of Amul Milk in retail outlets of Pune cityretail outlets of Pune city” is the” is the produce of my sincere effort. This Summer Internship Project is produce of my sincere effort. This Summer Internship Project is being submitted by me alone, at Asian School of Management- being submitted by me alone, at Asian School of Management-Pune, for the partial fulfillment of the course PGDM, and thePune, for the partial fulfillment of the course PGDM, and thererepoporrt t hahas s nnot ot bbeeeen n ssububmmitittted ed tto o anany y ototheher r ededucucatatiiononalalinstitutions for any other purpose.institutions for any other purpose.

DDaattee: : SSiiggnnaattuurree::



CERTIFICATE BY THE GUIDECERTIFICATE BY THE GUIDE

This is to certify that the project work This is to certify that the project work entitled “To studyentitled “To studyon the Penetration of Amul Milk in on the Penetration of Amul Milk in the retail outlets of Punethe retail outlets of PuneCity”,City”, atat GUJARAT CO-OPERATIVE MILK GUJARAT CO-OPERATIVE MILK

MARKETING FEDERATION LTD.MARKETING FEDERATION LTD. for Pune Branch is afor Pune Branch is a piece of work done by piece of work done by Sumeet Singh Jasrotia, student of AsianSumeet Singh Jasrotia, student of AsianSchool Of Management, under my School Of Management, under my guidance and supervision for guidance and supervision for the partial fulfillment of the course PGDM, Asian School Of the partial fulfillment of the course PGDM, Asian School Of Management, Pune.Management, Pune.

To the best of my To the best of my work knowledge and belief the thesiswork knowledge and belief the thesisembodies the work of the candidate himself and has embodies the work of the candidate himself and has been dulybeen dulycompleted. Simultaneouslcompleted. Simultaneously, the y, the thesis fulfills the requirement of thesis fulfills the requirement of the rules and regulation related to the the rules and regulation related to the summer internssummer internship of thehip of theinstitute and I am assured that the institute and I am assured that the project is up-to the standardproject is up-to the standard

both in respect to the both in respect to the contents and language for being referred tocontents and language for being referred tothe examiner.the examiner.

Signature of the Faculty Guide:Signature of the Faculty Guide:

Name of the faculty guide: Name of the faculty guide:Prof.K.K BhasinProf.K.K Bhasin

Designation:Designation:Department of Department of MarketingMarketing



INTRODUCTION TO THE PROJECTINTRODUCTION TO THE PROJECT

1.11.1 CONTEXT OF THE TOPICCONTEXT OF THE TOPIC

The dairy industries companies run mainly on the factors such as availability, serviceThe dairy industries companies run mainly on the factors such as availability, service

frefrequenquency, cy, affaffordaordabilbilityity, , tastaste te and and marmarketiketing. ng. AvaiAvailablabilitility y is is plaplays ys a a vitavital l rolerole

be becauscause e purcpurchasihasing ng powpower er is is depedepend nd upon availaupon availabilibility ty of of that producthat product, t, in in casecase

distributors and retailers service matter a lot.distributors and retailers service matter a lot.

A retailer or retail store is any business enterprises whose sales volume comesA retailer or retail store is any business enterprises whose sales volume comes

primarily from retailing. primarily from retailing.

Market penetrationMarket penetration is one of the four growth strategies of theis one of the four growth strategies of the Product-MarketProduct-Market

Growth MatrixGrowth Matrix defined bydefined by Ansoff Ansoff . Market penetration occurs when a company. Market penetration occurs when a company

enters/penetrates a market with current products. The best way to achieve this is byenters/penetrates a market with current products. The best way to achieve this is by

gaingaining ing comcompetipetitortors' s' custcustomeomers rs (par(part t of of theitheir r marmarket ket sharshare). e). OtheOther r wayways s inclincludeude

attractiattracting non-users of your product or ng non-users of your product or convincinconvincing current clients to use g current clients to use more of your more of your

product/service (by advertising etc). product/service (by advertising etc).

It was found that due to low consumption of milk, there is no more awareness of It was found that due to low consumption of milk, there is no more awareness of

milk product here It was the major cause to the low selling of “Amul” milk product.milk product here It was the major cause to the low selling of “Amul” milk product.

Like that penetration level in the outlet of milk product was low.Like that penetration level in the outlet of milk product was low.

Finally the whole study of the research work, the company needs the effectiveFinally the whole study of the research work, the company needs the effectiveadvertisement of the product in the local channel and print media for awareness of advertisement of the product in the local channel and print media for awareness of “Amul” milk in the Pune city.“Amul” milk in the Pune city.

Promotion Tool UsedPromotion Tool Used

The consumer promotion tools mean the promotion activities, which are beneficialThe consumer promotion tools mean the promotion activities, which are beneficial

for consumers as well as company. Such as price discounts, samples, cash refund,for consumers as well as company. Such as price discounts, samples, cash refund,

premiums, prizes, cross promotion and coupons etc. We decided to use discount premiums, prizes, cross promotion and coupons etc. We decided to use discount



coupons. We distributed it among customers and validity kept seven days fromcoupons. We distributed it among customers and validity kept seven days from

issued.issued.

•• The consumers are seduced to buy the product.The consumers are seduced to buy the product.

•• It helped to increase sales volume.It helped to increase sales volume.

•• Consumer can get good quality of good in cheaper price.Consumer can get good quality of good in cheaper price.

•• It can attract the new consumers and customers buying other milk It can attract the new consumers and customers buying other milk

brands. brands.

•• Attract brand switchers, who are primarily looking for low price,Attract brand switchers, who are primarily looking for low price,

good value or premiums.good value or premiums.

•• Turn Turn switcher switcher to to loyal loyal users,users,

•• It induced to make some subsequent purchases.It induced to make some subsequent purchases.

•• Give little permanent gain in market share.Give little permanent gain in market share.

11..22 NNeeeed d oof f SSttuuddyy

Managers are always curious about the position of their company’s products in theManagers are always curious about the position of their company’s products in the

market which largely depend upon the market which largely depend upon the companycompany’s goodwill, and the ’s goodwill, and the position of their position of their

brand. In order to maximize the sale and profit, company must deliver outstanding brand. In order to maximize the sale and profit, company must deliver outstanding

satisfactsatisfaction to ion to the retailers. So market survey of retailers, chart out the retailers. So market survey of retailers, chart out the position of thethe position of the

company as compared to the competitors. It helps the organization to find out thecompany as compared to the competitors. It helps the organization to find out the

brand being sold most by the retailers along with their stocking and also consumer brand being sold most by the retailers along with their stocking and also consumer

buying preferences. buying preferences.

11..3 3 SSttaatteemmeennt t oof f TThhe e PPrroobblleemm



“A STUDY ON PENETRATION OF AMUL MILK IN RETAIL OUTLET OF“A STUDY ON PENETRATION OF AMUL MILK IN RETAIL OUTLET OF

PUNE CITY”PUNE CITY”

It helps to determine penetration level which can be used to influence large number of It helps to determine penetration level which can be used to influence large number of

retailers so as to increase the sales of the Amul milk effectively”.retailers so as to increase the sales of the Amul milk effectively”.

EXECUTIVE SUMMARYEXECUTIVE SUMMARY

I Sumeet Singh Jasrotia felt privileged to be a part of ASIAN SCHOOLI Sumeet Singh Jasrotia felt privileged to be a part of ASIAN SCHOOLOF OF MANAMANAGEMEGEMENT, PUNE. NT, PUNE. I I did my did my sumsummer internmer internship trainship training ining inGujarat Cooperative Milk Marketing Federation LtdGujarat Cooperative Milk Marketing Federation Ltd a FMCG sector a FMCG sector company under the brand namecompany under the brand name “AMUL”“AMUL”. My project title is the. My project title is the “A“A

Study on penetration of AmulStudy on penetration of Amul Milk in the retail outlet of Pune city”Milk in the retail outlet of Pune city”..The project basic objectives are to estimate demand of Amul Milk andThe project basic objectives are to estimate demand of Amul Milk and

promoting Amul milk in Pune at the same time. promoting Amul milk in Pune at the same time.

In today’s competitive world while entering in the market it is veryIn today’s competitive world while entering in the market it is very

necessary to have good knowledge of the potential of a particular market.necessary to have good knowledge of the potential of a particular market.

The information regarding the activities of competitor’s existing in theThe information regarding the activities of competitor’s existing in the

market so that we can plan our each activity according to that. Also it ismarket so that we can plan our each activity according to that. Also it is

necessary to retain the existing customers apart from attracting the newnecessary to retain the existing customers apart from attracting the new

customers.customers.

The Project is concern with to determine the penetration level of AmulThe Project is concern with to determine the penetration level of Amul

dairy milk in Pune city. The project included as part of MBA Programmedairy milk in Pune city. The project included as part of MBA Programme

and the project is done from June to August.and the project is done from June to August.



INDUSTRY PROFILEINDUSTRY PROFILE

Dairy is a place where handling of milk and milk products is done and technologyDairy is a place where handling of milk and milk products is done and technology

refrefers ers to to ththe e appapplilicatcatioion n of of scisciententifific ic knoknowlwledgedge e for for prapractcticaical l purpurposposes. es. DaDairiryy

technology has been defined as that branch of dairy science, which deals with thetechnology 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. 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 decadeThe dairy sector in the India has shown remarkable development in the past decade

and India has now and India has now become one of the largest producers of milk and value-added milk become one of the largest producers of milk and value-added milk

products in the world. products in the world.

The dairy sector has developed through co-operatives in many parts of the State.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 processingDuring 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, 123capacity of 5.8 million litres per day. In addition to these processing plants, 123

Government and 33 co-operatives milk chilling centers operate in the State.Government and 33 co-operatives milk chilling centers operate in the State.

Also India today is the lowest cost producer of per litre of milk in the world, at 27Also 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 takecents, 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 theadvantage of this lowest cost of milk production and increasing production in the

country multinational companies are planning to expand their activities here. Some of country multinational companies are planning to expand their activities here. Some of

these milk producers have already obtained quality standard certificates from thethese milk producers have already obtained quality standard certificates from the

authorities. This will help them in marketing their products in foreign countries inauthorities. This will help them in marketing their products in foreign countries in

processed form. processed form.



The urban market for milk products is expected to grow at an accelerated pace of 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 isaround 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 bygoing 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 Indianincrease 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 valueddairy produce is expected to be Rs 10, 00, 000 million. Presently the market is valued

at around Rs.7, 00, 000 mnat around Rs.7, 00, 000 mn

Milk ProductiMilk Production from 1950 to on from 1950 to 20202020

1950 1950 – – 17 17 million million tonnestonnes

1996 1996 – – 70.8 70.8 million million tonnestonnes

1997 1997 – – 74.3 74.3 million million tonnestonnes

(Projected) (Projected) 2020 2020 – – 240 240 million million tonnestonnes

Expected Expected to to reach- reach- 220 220 to to 250 250 mt mt – – 20202020

India contributIndia contributes to es to world milk productiworld milk production rise from 12-15 % on rise from 12-15 % & it will increase up to& it will increase up to30-35% (year 2020)30-35% (year 2020)

WWorld'sorld's MMajor ajor MMilk ilk PProducersroducers (Million MTs)(Million MTs)

CountryCountry22000022--0033 22000033--004 4 ((AApppprrooxx..))

IInnddiiaa 8811 8844..55

BBrraazziill 7755 7777

RRuussssiiaa 3344 3333

GGeerrmmaannyy 2277 2277

FFrraannccee 2244 2244

PPaakkiissttaann 2211 2222

UUSSAA 7711 7711

UUKK 1144 1144

UUkkrraaiinnee 1155 1144

PPoollaanndd 1122 1122

NNeew w ZZeeaallaanndd 1111 1122

NNeetthheerrllaannddss 1111 1111


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Market Penetration of Amul Milk - baixardoc