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
1997 – 74.3 million tonnes
2006 – 99.9 million tonnes
2007 – 102.9 million tonnes
2008 _ 105.8 million tonnes
2009 – 108.8 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.
- Graphical analysis.
- Percentage 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.
- Graphical analysis.
- Percentage 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