CHAPTER-V1

A comparative study of marketing of local dairy products

vis-a-vis outside products

The discussion made in the foregoing chapters (IV) gives an idea of the

existing dairy market scenario of Kamrup District. Although Kamrup District is the

highest producer of milk in Assam i.e. 63840031 Itrs (2005-06) as compared to

the rest of the districts (Table 3.3 Chapters - III). Yet it is not sufficient to meet the

increasing demand of consumers for milk and milk products, Guwahati, the district

headquarter the demand for milk alone is 2 lakh litres per day while production is

between 80,000 to 1.2 lakh litres per day. The gap in the supply is met by various

outside units, namely Amul, Nestle, Mother Diary, Britannia etc.

Objective

1. The main object is to study and analyse the marketing of outside units as

well as the local units.

2. Make a comparative study of marketing strategies adopted by the local and

outside units and identify the drawbacks of the local units.

Prevailing Market channels of Milk & Milk products

To study the marketing of local dairy products vis-a-vis outside products,

the prevailing Market Channel (MC) of milk and milk products in Kamrup District

is undertaken.

( 1 0 3 )

In Kamrup District two marketing channels has been identified which is

grouped as :

1. Marketing Channel (MC) I : For locally produced milk & milk products.

2. Marketing Channel (MC) I I : For milk and milk products from outside units.

Marketing Channel for locally produced Milk & Milk Products (MC-I) :There

are various ways by which the locally produced milk and milk products reach the

consumers. They are :

MC-I ( I ) : Producers -*-Milk Producers Co-operative Societies —► Milk

Union -*• Retailers -* Consumers.

It is an organised channel for marketing of milk and milk products in

Guwahati and the adjoining towns of the district. The sale of milk and milk

products through Dairy Co-operative is an acceptable system of marketing. The

milk produced by members producers of Co-operative societies is collected,

processed and marketed by WAMUL under the brand name 'Purabi',

MC-I ( I I ) : Producers -*• Co-operative Societies -* Milk Union -* Town

Milk Supply Scheme -*• Retailers -*• Consumers (TMSS).

The channel is follow ed by TMSS under the Dairy Developm ent

Departments, Govt, of Assam. Here, the milk are collected through different

collection points from Co-operative societies and milk villages within a manageable

radius of Guwahati and after due processing by TMSS is marketed mainly in

Guwahati.

MC-I ( II I) : Producers -* Milk Union -*• G.R. Dairy Products -+ Retailers

-*■ Consumers.

( 104 )

This channel is followed by G.R, Dairy Products. M ilk is collected from Milk

Union and after due processing is marketed in Guwahati and its adjoining areas

under the brand name 'Dairy Fresh'.

M C-I ( I V ) : Producers -*• M iddle men (Vendors) — Consum ers.

It is one of the most common milk marketing channel prevailing in the

district. Flere the m iddlem en directly collects milk from the produces in cans and

carry the milk either in small quantities in bi-cycle are in large quantities by trucks

and sell it d irectly to consum er in cash o r credit o r to the sweet meat shops

(halwai).

Marketing Channel for outside milk and milk products

M C-II ( I ) : Producers -*• M ilk Producer Co -operative Societies -*■ Milk

Union -*• M ilk M arketing Federation Regional/ Branch

Office -*■ W holeseller (D istributor) -*■ Retailer -*■ Consumer.

This is an orgnanised channel fo r marketing o f milk & milk products by

outside units in the districts. W ith collected through milk producers Co-operative

Societies and marketed by different M ilk Unions and M ilk M arketing Federation

in the ir ow n brand name. In milk federation, milk marketing is d irectly controlled

by th e ir respective Regional/ Branch Office.

Comparative study of local products vis-a-vis outside products

In o rd er to make a comparative analysis o f marketing o f local products

and outside products tw o units have been taken nam ely Amul and Purabi.

( 105 )

Background of A M U l

Gujarat Co-operative Milk Marketing Federation (GCMMF) Ltd. is India's

largest food products marketing organization. It is a state level Apex body of

Co-operative in Gujarat which aims to provide remunerative returns to the farmers

and also serve the interest of the consumers by providing quality products at

reasonable price under the brand name 'Amul'.

'Amul' which means 'priceless' in Sanskrit have been in use in millions of

homes since 1945. Amul, is a symbol of high quality product and is a leading food

brand in India having a total milk handling capacity of 7.4 million a litres per day.

Its average daily collection of milk is 5.71 million litres (2004-05) from 12 district

co-operative milk producer's union.

Due to the lean-flush season gap in milk production Amul has set up a milk

drying plant with the capacity of producing 511 metric tons per day. This help to

tide over the shortages of milk supply during summer season due to lower milk

production by using milk powder to enlarge the milk supply.

Today, Amul is the leading brand leader in the diary industry with an annual

sales turnover of Rs. 29,225 million (2004-05). It is also a major exporter in the

international dairy market with an annual sales turnover of US $672 million.

From field survey it was observed that Amul is the leading dairy unit from

outside the state. It has a major share in the liquid milk market segment in Assam

as well as in Kamrup district. While in the milk products segment (butter, cheese,

milk powder, cream) it enjoy a monopoly market.

Source : www amul com

( 10 6 )

Purab!

Purabi is the leading local organised unit in Kamrup district having a market

share of 7 percent in the liquid milk market segment. In the milk products segment

(curd, cream, paneer) it is the leading local organised unit having a major share of

the market.

A study of the marketing strategies adopted by the two units is taken in

order to identify the shortcomings of the marketing system of the local unit.

Contents of Marketing Strategies for Comparative Study

The comparative study of the marketing strategies is done mainly on

four parameters i.e. product planning, pricing, promotion and distribution.

Product Planning

One of the basic element of marketing is product planning. Liquid milk

being perishable in nature causes a problem as it has limited shelf life. This can

be overcome by converting milk into other forms which, besides giving added

advantage of storability also gives added value of the milk products.

Amul Dairy's Product Range

Amul has a wide range of milk products starting from liquid milk it has a

wide range of products as per the taste and preference of various segments of

the market.

( 107 )

Chart-1

Amul Range of products Liquid M ilk

Liquid M ilk Quantities (Available)

1. Amul Tazaa 1/2 It. 1 It. tetra pak

2.Amul Fresh,milk %A It. pouch (non-available in Assam)

3, Amul Gold milk 1 It. tetra pak

4. Amul Lite slim and Trim Milk 1 It. tetra pak

5. Amul Kool (flavoured milk) 200 ml. tetra pak and 200 ml. can

6. Amul Masti-spice butter milk 200 ml. tetra pack

7. Amul Lassi 200 ml. tetra pack

POWDER MILK

Powder Milk Quantities Available

1. Amulspray Infant milk 500 gm refill packSOO gm cartoon 500 gm

tinl kg. refill packl kg. cartoon

2. Amulya Dairy Witner Available in various quantities

3. Sagar skimmed Milk Powder Bulk packs.

Butter Quantities Available

1. Amul Butter

2. Amul Site (Low Cholestrol Bread spread)

200 gm.34 kg.

( 108)

Cheese Quantities Available

1. Amul pasteurized processed cheese

2. Amul cheese spreads

3. Amul Pizza mozzarella cheese

200 gm, 500 gm chipletsSlice packs

400 gm tin

For Cooking

1. Amul/ Sagar pure ghee.

2. Amul Malai paneer

3. Mithai Mate

Desserts

1. Amul Mithaee Gulab Jamuns

2. Amul Ice Cream (Not available in Assam)

3. Amul chocolates

The above chart 5.1. shows the various products which are mainly available

in Kamrup District. The chart reveals that Amul offers a wide range of products in

various quantities meeting the requirements of the various segments of income

groups. In the liquid milk segment Amul has a wide range of products to suit

various types of customers. It offers both tonned and double tonned milk where

the fat content varies. For health conscious customers is offers Amul lite slim and

trim milk with low content of fat. To suit the taste of children it offers Amul Kool,

flavoured liquid milk available in various flavours. For the hot season lassi and

Amul-masti butter milk made out of the liquid remain after churning out the

( 109 )

Annul Products

cheese from milk. In the milk powder segment it has various type of milk powder

ranging from infant milk powder (Amulspray) dairy whitner (Amulya) skimmed

milk powder (available in bulk), etc. In the milk products segment Amul has a

wide range of products like butter, cheese, ghee, paneer, cream, etc. and a number

of desert items to suit the taste of customers preferring the traditional sweet

items like gulab jamuns, srikhand as well as ice creams and chocolates.

From the survey of retailers of the districts it was observed that Amul

products are available in the entire district (metro-rural). While milk powder like

cheese, paneer, cream the deserts items are in high demand in Guwahati City,

Amul tazaa and milk powder (Amulspray, Amulya) have higher degree of demand

even in the rural townships of the district.

Chat-II: Products of Purabi

Tonned milk 500 ml pack

Double tonned milk 500 ml pack

Ghee 500 gm poly pouch

Cream 500 ml poly pack

250 gm poly pack

Paneer 200 gm poly pouch

Sweet curd 100 gm poly cup

500 gm poly cup

Plain curd 500 gm poly cup

Lassi 200 gm poly glass

Flavoured milk 200 ml. bottle

( 1 1 0 )

Purabi Parlour, Panjabari

Purabi Products

As revealed in Chart-ll the local unit Purabi offers limited products ranging

from liquid milk (both tonned and double toned) to other milk products like curd,

cream. In the milk product segment the local unit Purabi has limited range of

products namely curd, cream, paneer and ghee. Among organized units Purabi

dominates the market which is concentrated in Guwahati while the unspecified

brands (sold by middleman) has a higher market share in the entire district. While

in Cream it has a major share in Guwahati market.

Chart-Ill

Packaging of Amul Products (Available in Kamrup District)

Products Type of Packaging

Amul Taaza Tetra pack

Amul Kool (Flavoured Milk) Tetra pack, bottle

Amul fresh cream Tetra pack

Amulspray Refill, Cartoon, Tin

Amulya Dairy Whitner Refill, cartoon, tin

Amul Butter Cartoon

Amul Cheese Cartoon, Cups

Amul Malai Paneer Cans

Amul Mithae Gulab Jamuns Cans

Amul Shakti Cartoons, Bottle

Amul Pure Ghee Tin, Cartons

Amu! Lassi Poly cup

Amul Masti Butter milk Tetra pack

(111)

Chart-IV

Packaging of Purabi Products

Products Type of Packaging

Purabi Milk Polypouch

Purabi Curd Polyjars

Purabi Lassi Poly glass

Purabi Fresh Cream Polypouch

Purabi Ghee Cartons

Purabi Paneer Pouches (15 day shelf life)

Purabi flavoured Milk Glass bottle

Packaging of Amul Products

Packaging is another area in which Amul products have proved to be far

superior than local products. Packaging can protect the quality and shelf life of

the milk and milk products. Use of tetra pak packaging of liquid milk and cream

by Amul has helped in maintaining the quality and shelf-life of the products as

well as convenient for the consumers in storing it Tetra pak (aseptic) packaging

material has 6 special layers ensuring total product protection, retention of taste

and nutrition. This packaging system also make it convenient to be transported

and stored everywhere. Introduction of tetra pak packaging also helped Amul to

widen its market in the liquid milk segment as it of increased the shelf life of

liquid milk (180 days) and cream (120 days).

Amul brand of paneer is available in tin cans, this has increased the shelf

of paneer as well as help Amul to expands its market Lassi.

( 1 1 2 )

Packaging of Purabi

Though Purabi has made efforts in improving its packaging system, yet it

has not been able to meet the standard norms. This can be attributed to financial

difficulties and as these material are not available in the local market procuring

from outside becomes costly.

Purabi products are packed with materials which are available locally. Liquid

milk (toned, double toned) are available in poly pouches while flavoured milk is

available in bottles. The problem of poly pouches is rate of leakages is high, while

in bottle chances of breakage is high. These packaging system has limited shelf

life (liquid milk - 24 hours). For paneer Purabi has adopted the technology of

vacuum packaging which help to preserve paneer for longer period (15 days) and

maintain its quality and freshness. Lassi is available in poly glass. But there has

been frequent complains of leakages. Liquid milk is marketed in Guwahati City

and the adjoining towns Baihata Chariali, Changsari and North Guwahati while

milk products are available only in Guwahati City at 120 retail outlets. While milk

is available in retail outlets and two parlour located in the plant premises and

Guwahati Railway Station premises.

Pricing Policy

The milk pricing policy has been an evolving process. The various pricing

mechanism that were traditionally adopted grew outdated to the needs as the

entire socio-economic milieu of the rural-economy and demand supply structure

in the urban conglomerate underwent visible changes.

( 1 1 3 )

The present system of adoption of two axes milk pricing formula of giving

stress upon the content of fat and SNF (solid not fat) is widely followed by may

processing unit is procurement price of milk. This procurement price has a direct

bearing on pricing of milk and milk products. Pricing of dairy products are also

influenced by various factors like production cost, availability of feed and fodder,

cost of management, market conditions etc.

Pricing of milk products are influenced by various factors like production

cost, sale price market conditions profit margin. The elements of cost of milk

production is difficult to calculate as the very elements are very complicated in

nature. It consist of

• Cost of feed, fodder and concentrates

• Interest on the cost of milch animals

• Depreciation on milch animal

• Depreciation on investment in sheds and dairy implement etc, and

• Miscellaneous recurring expenses (inclusive of veterinary services, etc.)

Selling price of milk and milk products is influenced by the cost of milk

production and certain other factors which are

• Availability of milk

• The position of demand and supply of milk at a particular place and at a

particular time

• The quality of milk

• The profit margin of middlemen

(1 1 4 )

• The d istance betw een the place of production and the place of

consumption

• The purpose for which the milk is used; whether the milk is used as fluid

milk or is to be converted into various milk products, and

• Th e G o ve rn m en t p o licy and regu latio n re g ard in g p ro ce ssin g ,

manufacturing and marketing of milk and milk products.

Since milk is a perishable item, it is required to be market immediately

after its production; else its quality shall deteriorate speedily. It is for this reason

that the price of the milk and milk products tends to show greater variations.

Lack of proper storage facilities gives more chances of variation on prices.

Pricing in the liquid milk segment

Kotnis stated that while considering the price of liquid milk to consumers,

organised sectors will have to face various pressures from consumers and political

end to maintain constant price and for not increasing the liquid milk price. On the

other hand procurement price of milk increases d ue to various factors and pressure

from the producers. Procurement price of liquid milk is based on the 2 axes

structure of fat and SNF (solid not fat). This rate is normally fixed by the Dairy

Development authorities considering the standard norm - procurement price of

liquid milk has an influence in the pricing of milk.

From field survey it has been observed that the local dairy units (Purabi,

Central Dairy, Prithvi Milk, Dairy Fresh) generally procures a major portion of the

liquid milk from the District Co-operative Societies and from Sitajkhala at the rate

(115)

of Rs. 13 to Rs. 14/lit. depending on the content of fat & SNF. While a small portion

of the liquid milk is procured directly from producers at Rs. 12.50/ lit. while outside

units (Amul, Mother Dairy, Nestle) are paying Rs. 16 to Rs. 17/lit. as the content of

fat is higher.

Table-6.1.

Pricing Structure

Unit Procurement price (Rs./lit) Selling Price (Rs./Lit)

Amul Tazaa Rs. 16 to Rs. 17 Rs. 31

Purabi Milk Rs. 13 to Rs. 14 Rs. 20 - 21

Amul Kool (flavoured milk) Rs. 20 for 250 ml.2

Purabi flavoured milk Rs. 10/200 ml.

Pricing of milk and milk products are mostly based on the production cost.

Units like Amul, Nestle, Mother Dairy besides considering the cost of raw materials,

and other fixed and variable cost are maintaining a competitive pricing policy.

On the other hand local units follows a policy of cost plus pricing, price

structure of these units varies from time to time depending on the cost of raw

materials and other fixed and variable cost.

As revealed in Table 6.1 Amul procures milk at Rs. 16 to Rs. 17/lt. depending

on the content of fat and SNF and after processing and proper packaging is sold

at Rs. 31/lt. and flavoured milk (Amul Kool) is sold at Rs. 20/250 ml. pack under

the brand name Amul.

Purabi procures milk at Rs. 13 to Rs. 14/lt. from various Co-operative

Societies. To meet up the shortage of procurement Purabi also procures milkfrom

( 116)

Bhagirathi milk Union, a unit of West Bengal Milk federation at Rs. 14/ It. While

Purabi brand of milk is sold at Rs. 20/ (toned milk) and Rs. 21/ It. (double toned

milk) and flavoured milk at Rs. 10/200 ml.

This reveals that Amul is paying a higher rate to the producers on one

hand and it selling at a higher price thus increasing the margin of profit. Purabi is

procuring milk at relatively at a lower price and due to various social consideration

and pressures from consumers maintain a lower price.

From field survey it was observed that inspite of higher price consumer

preferred the brand name 'Amul' for purchasing various milk and milk products.

Pricing of Milk Products

Table-6.2.: Pricing of Cream & available quantities

Unit Selling Price (Rs./Kg.)

Amul 200 ml - Rs. 20/-

Purabi 250 gm - Rs. 38/ -

500 gm - Rs. 76/-

Table 6.2. reveals the selling price of cream of Amul & Purabi. Amul cream

is available in 200 ml and 1 It. in tetra pak at Rs. 20 and Rs. 100/ It. which is

comparatively lesser than Purabi brand of cream available in 250 gms. And 500

gm poly pouch at the rate of Rs. 152/ kg.

( 117 )

Table -6.3.: Pricing of Lassi

Product Price (in Rs.)

Amul Lassi Rs. 20/250 ml.

Purabi Lassi Rs. 9/ 200 ml.

The above table 6.3. reveals that for lassi higher retail price is charged by

Amul as (Rs. 20 for 250 ml.) compared to Purabi (Rs. 9 for 200 ml. cup).

Table -6.4.: Pricing of Ghee

Product (Price (in Rs.)

Amul Ghee Rs. 170/kg.

Purabi Ghee Rs. 220/kg.

The above table 6.4. shows that Purabi's ghee is comparatively more

expensive (Rs. 220/kg) than that of Amul's ghee (Rs. 170/Kg.). Purabi Ghee is

available in 200 gm carton packs with 99 percent of cow milk fat.

Analysis of the pricing Structure

The above study on the pricing of milk and milk products (Cream, Ghee,

Lassi, Paneer) of Amul and Purabi reveals the following :

• Amul is providing a higher price to the producers than Purabi.

• Retail pricing of Amul products in the liquid milk segment is higher than

Purabi (liquid milk flavoured milk, lassi).

( 118 )

• Retail price of Amul milk products (Cream, Ghee, Paneer) is comparatively

lesser than Purabi.

This clearly indicates the pricing strategy of Amul. Since liquid milk market

is a growing market where demand is constantly rising as liquid milk is an item of

daily consumption and it is not effected by changes is price. Amul is charging a

higher price (liquid milk Rs. 31/ It. etc.). Purabi on the other hand due to certain

social consideration and due to the dominance of the unorganized private vendor

has not been able to take the opportunity in this liquid milk segment. Since milk

products (cream, paneer, ghee) are not consumed on daily basis price has an

influence on the consumption pattern. Amul is charging a lower price for products

like Cream (Rs. 100/lt.), Ghee (Rs. 170/kg.) to attract customer towards its product.

Though Purabi has a big share in the market for cream and paneer as observed in

field survey, it has not been able to create a market for Ghee.

Sales Prom otion

Sales promotion is another key element in overall marketing strategy. It is

a marketing effort to inform or persuade actual or potential buyers and consumers

about the merits of a product.

Amul one of the leading dairy unit in the country having an annual turnover

of Rs. 29225 million (2004-05) has a comparative advantage in promoting its

products. It has huge national market coverage as well as a big international market

with an export sales turnover of 672 $ million (US$).

( 1 1 9 )

Concessions and Discounts

To enhance its sales, Amul offers various concession and discounts to

distributors and retailers. It offers 2 percent discount to distributors on all products

while 9 percent discount is offered to retailers.

Table 6.5.: Concession & Discount offered bv Amul

Middlemen Discount (in percent)

Distributors 2 (on all products)

Retailers 9 (on all products)

The local unit Purabi directly offers a commission to its retailers as

distributors are not engaged. Commission to retailers varies from product to

product as given in Table 6.6.

Table -6.6.: Commission offered bv Purabi to retailters

Product Margin of Commission (in Rs.)

Milk 1 per It.

Cream 8 per kg.

Paneer 10 per kg.

Desi Ghee 10 per kg.

Curd (Plain and Sweetened) 5 per kg.

Lassi 1 per 200ml pack

Table 6.5. and Table 6.6 shows the various discounts and commission

offered by Amul and Putrabi to distributors and Retailers.

(120)

Since liquid milk is the main segment where both the units have a market

in the district a comparison is made on the discount and commission offered to

retailers. As Amul offers a discount of 9 percent to retailers. This makes a margin

of income of Rs. 2.80/ It. (Amul Tazaa Rs. 31/ It) on liquid milk while on the other

hand Pura bi offers only Rs. 1/- as commission per litre of liquid milk. This makes

a differences to retailers as they are willing to keep Amul liquid milk rather than

Purabi milk. Moreover, since shelf life of Amul milk is longer (180 days) retailers

do not face a problem in disposing the large stock while Purabi milk has a shorter

shelf life (24 hrs.). As a result retailers are not willing to keep a larger stock.

In the milk product segment though Purabi offers a higher rate Rs. 10/ kg.

ghee, Rs. 8/kg. on cream, 10/ kg, on paneer Rs. 1/100 ml in lassi, it is lesser in

comparison to the discount as offered by Amul, which is Rs. 9/kg on cream, Rs.

IE/ kg on ghee Rs. 9/kg on paneer, Rs 1.80/250 ml. on lassi.

Incentives offered to retailers

From field survey of retailers it was observed that Amul distributors

provides credit facilities to retailers. A minimum period of one week credit is given

to retailers on all Amul products. This maker it convenient to retailers as cash

received from sales is sufficient to make the payment. The local unit Purabi offers

no such credit facilities, sales is made to retailers on the basis of cash payment.

The facility of returning of goods by retailers to manufacturing on expiry is

promoted by Amul. This provides an incentive to retailers to stock Amul products.

Purabi, on the other hand only accept leaky pouches of liquid milk.

( 1 2 1 )

Consumer Incentive Scheme

To enhance its sales Amul at frequent intervals offers certain consumer

scheme. It offers freebites on certain like in the milk powder segment (Amulya) it

offers a 250 gm pouch (Amulya) free on every 1 kg. Amulya pouch. Certain

temporary scheme are offered for milk shakes and flavoured milk where with

every 2 packs purchase of Amul Kool one is offered free of cost. These consumer

scheme helps it to increase sales as well as create demand on certain products

which do not have a regular demand. No such consumer incentive measures have

been introduced by Purabi to create demand as well as enhance its sales.

Publicity and Advertisement

Advertising is concerned with reaching the target segment to promote

firm's brand through media, especially selected for the segment, using the

creativity in language and expressions best understood by the segment when

direct personal contact is not there. Advertisement thus plays a multi-faceted

role. Not only does it inform the target segment of customers but also persuades

them to buy the product or service offered by the advertiser.

Amul's Advertisement Campaign

Amul's magic lies with its mascot (the little girl). This round eyed, chubby

cheeked little girl with a polka dotted frock and a red and white bow, holding out

her faourite packet of butter has managed to keep her fan following intact for 40

long years. This little girl was created in 1967 to give a fillip to is advertising

campaign especially to enhance its sales for butter.

( 122 )

Today Amul advertisement are playing the role of a social observe,

highlighting issues of public interest and making the public aware about the

happening around them. Its catchy theme lines and humour have popularize its

products and made Amul a household name.

Amul uses a wide array of media to convey messages. Its hoardings are

strategically placed at many traffic lights, lamp kiosks and bus-stands. It also uses

display boards, signboard, posters pasted in distribution vehicles, milk booths

and shop walls especially for rural consumers with low literacy level who

remembers brands by pictures rather than brand names. Electronics media has

also been largely used by Amul to advertise its products. Though being an

expensive medium, television today is the most sought after media. With the

popularity of the media it also manifest itself to being used for advertisement

messages along with the advertisement messages re-affirm the customers' view

in favour of the product.

To attract new customers and have a direct feedback from consumers,

Amul distributors are encouraged to join in trade fairs. In the district Amul

distributors have frequently joined in fairs held in Guwahati City. This has not

only enhanced its sales but only created demand.

Purabi's advertisement Campaign

The local unit Purabi has effectively use hoarding, signboards, poster posted

in distribution vehicles, shop walls to advertise its products. Due to financial

constraint Purabi's, advertisement campaign has been low-keyed. It has not been

( 1 2 3 )

able to use the electronic media to popularize its products. Though low-budget

advertising campaign is frequently used by purabi to create consumer awareness

about hygienic pasteurized and packaged milk in Guwahati City. To popularize

milk and milk products it has distributed brochures, published articles in local

dailies. Besides, to popularize its products among children it has organised painting

and quiz competition for school children. These contests were organised with

the object of creating awareness about scientific processing of milk, as students

and their guardians had the opportunity to spend a whole day at the plant

premises. Purabi occasionally also organizes cooking contest (milk product recipes)

to popularize milk items among consumers so that it becomes a part of their daily

meal. To create brand awareness it distributes school items (stickers, time tables)

with its logo free of cost among its customers.

Distribution

Distribution performs the work of moving goods from producers to

consumers. It is the marketing activities involved in the movement flow of goods

or services from the primary producer to the alternate consumer. But the problem

of selecting the most suitable channel of distribution for a product is complex as

the fundamental factor of economic criteria viz. cost and profit criteria are taken

into consideration. Besides the economic factor the nature of product, market

trend, existence of intermediaries etc. are also considered.

( 124 )

Distribution Network of Amul

Gujarat Co-operative Milk Marketing Federation (GCMMF) has created a

wide distribution network covering the entire north-east region of the country. It

has set up seven regional offices in the north-east i.e. Guwahati, Silchar, Jorhat,

Dim apur Im phal, Agartala and Shillong. These regional offices are m ainly

concerned with the distribution of Amul products. It has appointed wholesales,

clearing and forwarding agents (WCNF) in 7 places of the region where the regional

offices are located. These WCNF's function as a stockist. In every major cities and

town of the region it has appointed distributors who basically provide the service

of a wholesaler. Amul distribution network follows a fixed route schedule where

goods are shifted from the WCNF to distributors. Distributors provides the services

of a wholesaler by providing the necessary stock of goods to retailers situated in

various parts of every cities and town at its door step. Distribution is also done

through Amul parlours setup in different part of Guwahati City. The entire work

of distribution is done under the supervision of a representative of the regional

office who closely monitors the work and see to it that sufficient stock is provided

to every retailers.

( 1 2 5 )

GCMMF Distribution Network in N.E.

Regional Regional Regional Regional Regional Regional Regional

Office O ffice Office Office O ffice Office Office

(G uw ahati) (Jorhat) (Silchar) (D im apur) (Shillong) (Im phal) (Agartaia)

W CNF

(Stockist)

D istributors

(W holesaler)

RETAILERS

Consum ers

D istributors

(W holesaler)

RETAILERS

Consum ers

A M U L

PARLOURS

(20 NOS.)

( 126 )

Distribution Network of Purabi

Due to low production Purabi is presently marketing its products only in

Kamrup District, Guwahati is the main marketing centre for Purabi product while

only liquid milk is distributed in the adjoining towns of North Guwahati, Changsari,

Baihata Chariali.

Purabi has not engaged distributors in marketing its product. It directly

delivers its products to retailers fanned out throughout Guwahati and the adjoining

towns of the district by its vehicles. Milk is supplied twice a day morning and

evening, to the retailers through 13 route vehicles. Milk products are supplied

once daily to selected retail outlets. It has set up 2 milk parlours, one located its

plant premises and another at Guwahati Railway Station and one is located at the

heart of Guwahati city (Guwahati Club). These Parlous provide the facility of

making available Purabi products throughout the day.

Distribution Network of Purabi

Purabi

RETAILERS

Consumers

Purabi

Parlour

(Panjabari

Plant)

Consumers

Purabi

parlour

Guwahati

Railway Station

Consumers

Purabi

Consumers

( 127 )

Darrang District

Nalban District

Marigaon District

Meghalaya

le gend

* Area of Consumer Survey ~ (Kamrup Metro)

• Area of Consumer Survey (Kamrup - Rural)

------- District Boundary------ State Boundary------- National Highways------ Other RoadsWHfc Railway Line

AREA OF CONSUMER SURVERY KAMRUP DIST. (RURAL-METRO)

10 0

Scale

To — Kilom eters20

I I Kamrup Metro

I | Kamrup Rural

□River Channel / W ater Body River Sand