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