A PROJECT
RESEARCH REPORT
ON
Promotional
Scheme of Amul Ice Cream
Submitted in
partial fulfillment of the requiments
for the
award of the degree of
Master of Business Administration
Submitted to: Submitted By:
Faculty
guide: Shahid khan
saifi
Mr.Rajiv gupta ROLL: 010216749
IIMT, Greater Noida MBA
3sem
ACKNOWLEDGEMENT
This study even internal part of
our MBA program and to do this project in a short period was a heavy task. Intention, dedication, concentration and hard
work are very much essential to complete any task. But still it needs lot of support, guidance
assistance, co-operation of people to make it successful.
I bear to
imprint of my people who have given me their precious ideas and times to enable
me to complete the research and the project report. I want to thank them for their continuous
support at my research and writing efforts.
First of
all I would like to thank, Mr.
Rajiv gupta faculty member of IIMT
Gr. Noida, for giving me an opportunity to write my Dissertation report
under his guidance and supervision and for all the help and support which led
me complete the project.
At last but
not least I also thanks to the entire customer interviewed for their kind
co-operation.
With Regards
Shahid
khan saifi
DECLARATION
I, Shahid khan saifi hereby
declares that the project work entitled “Promotional scheme of Amul Ice cream”
is my project. I have not copied this project. I have worked hard for this
project. Mr. Rajiv gupta was my
project guide. Her encouragement, indulgency, and affection made this project a
reality. I have proudly got his guidance in designing the architecture
underlying the system.
Signature of the Project Developer: Shahid khan
saifi
Name: Shahid khan saifi.
Course: Master of Business Administration. Date: 16/Dec/2011.
Signature of the Center
Director:________________________________________________
Name of the Learning Institution: - IIMT, Greater noida 201306
Abstract:
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Amul is the largest co-operative movement in |
In butter, cheese and saturated fats, Amul has remained the
undisputed market leader
since its inception in 1955, by offering quality products at
competitive prices. In other categories, Amul has nullified its late mover
disadvantage through aggressive pricing, better quality, innovative promotion,
and superior distribution
TABLE OF
CONTENTS
CHAPTER PAGE
NO.
Introduction ----------------------------------------6
Company Profile --------------------------------
9
Distribution network ---------------------------------
15
Executive Summary ----------------------------------------41 Industry Scenario ---------------------------------47
Introduction of problem
----------------------------------48
About the study ---------------------------------
Rationale and Scope ---------------------------------50
Objective of the project -----------------------------------52
Review OF Literature ----------------------------------54
Marketing Mix 4 P’s -----------------------------------58
SWOT Analysis ------------------------------------60
Research Methodology ------------------------------------66
Project Activity Sequence -------------------------------------71
Data Analysis & Finding -----------------------------------------
74
One way ANOVA
-----------------------------------89
Finding
-----------------------------------92
Recommendations --------------------------------------------95
Conclusions ----------------------------------------------100
Bibliography
------------------------------------------------------ 102
Annexure ----------------------------------------------103
Questionnaire
LIST OF TABLE & GRAPHS
Analysis of non existing outlet 82
Mode of payment for deep freezer 83
Relationship on the basis of retailer 84
Analysis of Existing Amul outlet 85
Mode of purchase 87
Pack of ice cream sold most 88
INTRODUCTION
Gujarat Cooperative
Milk Marketing Federation (GCMMF), one of India's greatest success stories with
its Amul brand, is now aiming at a 17-per cent growth in sales to Rs 3,200
crores this fiscal against sales of Rs 2,746 crores in the previous year ended
31 March 2003.
The federation is
expecting each of its products to contribute higher sales this year as new
products are being added to each product line.
The big hope is not
surprisingly the Amul brand of ice creams, which is expected to contribute Rs
250 crores to the turnover, up from Rs 150 crores last year. Last year there
was a good growth in ice cream, cheese, butter and ghee. The company is
launching new products in almost every line that are in, with specific stress
on ice creams.
For
its ice cream and milk business, GCMMF has begun investing in increasing its
milk capacity. It recently firmed up plans to invest Rs 100-120 crore to expand
this from 1.1 million liters a day to 1.8 million litres a day at its
Gandhinagar factory. The investment will take place over the next two years.
The cooperative is also
planning to expand its production facilities beyond Gujarat to service other
regions in India. GCMMF recently bought an ice-cream manufacturing unit in
Nagpur and is installing a dairy unit alongside. Through this unit, the organisation
has also extended its milk supply to over 10 cities spread over Rajasthan,
Madhya Pradesh and Maharashtra.
Amul is now focusing on
its supply system. Efforts are on to ensure greater availability of Amul
ice-cream at pushcarts and small outlets. The company feels that availability
is the most important factor in ice cream sales. Thus, Amul ice-cream can be
found in 'just around the corner shops,' local STD booths, local kirana
shops, chemists and bakers, who stock the ice-cream in deep freezers.
The idea is to ensure
visibility and availability, which more often than not ensures a sale as
ice-cream consumed out of home is most often an impulsive purchase. Amul
expects to clock sales of 34 million litres during the current year and the
accent will be on offering 'value for money' products.
The new ice-creams
which are launched by Amul this year includes a mega-bite almond cone (the
largest volume cone in the country), an orange ice-cream (Santra Mantra), a
Bouncer ice-cream with nuts and essential proteins, vitamins and minerals for
the growing children, a cheese ice-cream and a sundae in cone for kids in
different variants.
Amul ice cream is
positioned as 'real ice-cream' made from real milk cream, while HLL's Kwality
Walls is made from vegetable oil and its items are dubbed as Frozen Deserts.
Last
year, Amul ice cream made its entry into New Delhi, India's biggest ice-cream
market, where its anti-compete agreement with Mother Dairy has expired. Amul
has been sourcing its entire ice-cream requirement for the northern market
(including Delhi) from its own Gandhinagar plan.
INDUSTRIES OVERVIEW
Gujarat Cooperative Milk Marketing Federation
GCMMF: An Overview –
Gujarat Cooperative Milk Marketing
Federation (GCMMF) is a India’s largest food product marketing organization. It
is a state level apex body of milk cooperatives in Gujarat, which aims to
provide remunerative returns to the farmers and also serve the interest of
consumers by providing quality products, which are good value for money.
Members: 12-district
cooperative milk producers’ Union
No. of Producer Members 2.23 million
No. of Village
Societies: 10,852
Total Milk handling
capacity: 6.7 million litres per day
Milk collection (Total
- 2001-02): 1.67 billion litres
Milk collection (Daily
Average 2001- 02): 4.59 million litres
Milk Drying Capacity: 510 metric Tons per day
Cattlefeed
manufacturing Capacity: 1450 Mts per day
Sales Turnover Rs.
(million) US$ (million)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27475 575
AMUL means "priceless"
in Sanskrit. A quality control expert in Anand suggested the brand name “Amul,”
from the Sanskrit “Amoolya,” Variants, all meaning "priceless", are
found in several Indian languages. Amul products have been in use in millions
of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul
Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk
and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 25 .)
billion in 2002). Today Amul is a
symbol of many things. Of high-quality products sold at reasonable prices. Of
the genesis of a vast co-operative network. Of the triumph of indigenous
technology. Of the marketing savvy of a farmers' organization. And of a proven
model for dairy development.
50 years after it was first launched,
Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over 25,000
tonnes a year in 1997. No other brand comes even close to it. All because a
thumb-sized girl climbed on to the hoardings and put a spell on the masses.
Dairy giant Gujarat Co-operative Milk Marketing Federation
Ltd. (GCMMF) recorded 22 per cent growth in turnover during the first half of
the current financial year with milk products sales amounting to Rs 1,000
crore.
GCMMF sold 10.5 crore litres of milk in pouches during April
to September 1998 under its well-known brand `Amul'.
"GCMMF's financial performance during this period has
been even more attractive with a growth of 25 per cent. However, this won't be
reflected in our balance sheet. The multinationals would have shown it as
glittering profit, but we are working on our mandate of returning any surplus
back to grass-root village co-operative milk society members by periodic price
differentials for their production.
With 12 processing units (unions), each located at the
district-level, GCMMF today has a membership of 20 lakh farmers, who belong to
10,000 village dairy co-operative societies.
GCMMF, the largest producer of dairy products in Asia, has
over 26 products ranging from `Amul Butter', `Amul Spray', `Amul Lite', `Amul
Cheese' to `Amul Mithaimate', `Amul Mithaee Gulabjamun' and ‘Amul Frozen
Pizza’.
The co-operative is launching wide range of cheese including
the exotic Emmental from the Swiss Alps, soft Mozzarella from Italy and slices
of processed Cheddar cheese.
GCMMF has also come out with `Amul cheese powder' used in
soups, salads, dressings and hoard of other fast foods.
The federation has been able to capture 50 per cent of the
ice-cream market in the state in a short span of one year.
`Amul Ice creams' are also now available in 12 states and two
union territories and enjoy 35 per cent to 40 per cent market share.
The `Amul Ice-cream' strategy bordered on its punch line,
`real milk, real ice-cream'
`Amul Ice creams' were smoother and creamier than its
competitors as fat used was pure milk, which was more expensive and not
vegetable fat.
GCMMF, which has 45 sales offices, plans to make these
products "available all over the country".
The federation has a distribution network comprising more
than 2,700 wholesale dealers and over five lakh retail outlets.
DISTRIBUTION NETWORK
Amul
manufactures its ice cream in Baroda dairy plant. Its supplies raw material
like milk from different places of Gujarat to Baroda dairy. When ice cream is
fully prepared and packed than it’s transferred to different states via
air-conditioned trucks. The C&F agents store it in big deep freezer
rooms. From C&F the ice cream is
delivered to different distributors. And from distributes the ice cream is
delivered to different retailers and sub retailers. And finally the consumers purchased from the
retailers.
Amul would provide the design and specifications for
renovation of the outlet. It will provide consultancy if required and will also
inspect the work of the contractor.
Amul will help in assessing the business potential of the
shop and will help in making the business plan.
Amul will guide you in purchase of various equipment. It will
also help you in choosing between the various sizes and types available based
on its experience of the business.
Amul will provide the design and/or supplier of the uniform
for the parlour boys.
Amul will provide advice and consultancy for inauguration and
operation of your shop, as well as for attracting customers and increasing
sales.
Amul will provide signages and glowsign to the outlet at its
own cost. The design will be standard and such as to identify your outlet as a
"a direct outlet of the company", which stores and sells the entire
range of Amul products.
Amul shall give target based additional margin on its
products for the first year of operation upto a maximum of 1% on dairy products
and 2% on ice-cream.
Amul shall help in the inauguration by providing free
ice-cream worth Rs. 1000. The other expenses of the inauguration shall be borne
by you.
Amul shall give 1000 pamphlets specially printed for your
shop for newspaper insertion in the neighborhood to generate awareness about
your outlet.
Amul shall design and implement in-shop promotions based on
requirement.
Amul shall keep you in its list of preference for all
promotions schemes, launch of new products, etc.
List of Products Marketed:
Breadspreads:
·
Amul
Lite Low Fat Breadspread
·
Amul Cooking Butter
Cheese Range:
·
Amul Pasteurized Processed
Cheddar Cheese
·
Amul
Processed Cheese Spread
·
Amul Pizza (Mozarella) Cheese
·
Amul Shredded Pizza Cheese
·
Amul Malai Paneer (cottage
cheese)
·
Utterly Delicious Pizza
Mithaee Range (Ethnic sweets):
·
Amul Shrikhand (Mango, Saffron, Almond Pistachio,
Cardamom)
·
Amul Amrakhand
·
Avsar Ladoos
UHT Milk Range:
·
Amul Shakti 3% fat Milk
·
Amul
Lite Slim-n-Trim Milk 0% fat milk
·
Amul Shakti Toned Milk
·
Amul Snowcap Softy Mix
Pure Ghee:
·
Amul Cow Ghee
Infant Milk Range:
·
Amul Infant Milk Formula 1
(0-6 months)
·
Amul Infant Milk Formula 2 (
6 months above)
Milk Powders:
·
Sagar
Tea and Coffee Whitener
Sweetened Condensed Milk:
Fresh Milk:
·
Amul
Taaza Toned Milk 3% fat
·
Amul
Gold Full Cream Milk 6% fat
·
Amul Shakti Standardised Milk
4.5% fat
·
Amul Slim & Trim Double
Toned Milk 1.5% fat
·
Amul Saathi Skimmed Milk 0%
fat
·
Amul Cow Milk
Curd Products:
·
Yogi Sweetened Flavoured Dahi
(Dessert)
·
Amul Masti Dahi (fresh curd)
·
Amul Masti Spiced Butter Milk
·
Amul Lassee
Amul Icecreams:
·
Butterscotch, Rajbhog, Malai
Kulfi
·
Kaju Draksh, Kesar Pista
Royale, Fruit Bonanza, Roasted Almond
·
Alphanso Mango, Fresh Litchi,
Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple
Sundae Range
·
Mango, Black Currant, Sundae
Magic, Double Sundae
Assorted
Treat
·
Chocobar, Dollies, Frostik,
Ice Candies, Tricone, Chococrunch, Megabite, Cassatta
Utterly
Delicious
·
Vanila, Strawberry,
Chocolate, Chocochips, Cake Magic
Chocolate & Confectionery:
Brown Beverage:
Milk Drink:
·
Amul Kool Flavoured Milk
(Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)
·
Amul Kool Cafe
Health Beverage:
Amul Shakti
White Milk Food
Amul
- Evolution of Marketing Strategy
Product Development
Amul's product development was driven both by the spirit of
the cooperative system and profitability. Being a cattle farmers' cooperative,
Amul was committed to buying all the milk offered by the farmer. The perishable
nature of milk made it imperative for Amul to process the surplus milk and
enter new product categories as production increased...
Butter
Launched in 1955, butter was one of the first milk products offered by Amul. It
was also the first time Amul successfully challenged the hegemony of an
established brand. Amul's earliest competitor, Polson had been the monopoly
milk supplier to the Bombay Milk Scheme. Amul displaced Polson to emerge as the
undisputed leader in the butter market...
|
Cheese |
The idea is to ensure
visibility and availability, which more often than not ensures a sale as
ice-cream consumed out of home is most often an impulsive purchase. Amul
expects to clock sales of 34 million litres during the current year and the
accent will be on offering 'value for money' products.
The new ice-creams
which are launched by Amul this year includes a mega-bite almond cone (the
largest volume cone in the country), an orange ice-cream (Santra Mantra), a
Bouncer ice-cream with nuts and essential proteins, vitamins and minerals for
the growing children, a cheese ice-cream and a sundae in cone for kids in
different variants.
.
.
Amul ice cream is positioned
as 'real ice-cream' made from real milk cream, while HLL's Kwality Walls is
made from vegetable oil and its items are dubbed as Frozen Deserts
Pricing
Amul's philosophy had all along been to deliver value for
money to its customers. Despite being priced economically, Amul maintained
its product quality... Distribution
GCMMF's formidable distribution network comprised 300 stock
keeping units, 46 sales offices, 3,000 distributors, 100,000 retailers with
refrigerators, an 18,000-strong cold chain, and 500,000 non-refrigerated
retail outlets... |
Advertising and
Sales Promotion
Over the years, Amul's advertising philosophy had been
"to be simple, fresh and innovative". The clean, emotion-based ads
refrained from using hi-tech special effects, and aimed at maintaining the
perfect balance between the traditional and the modern...
Looking Ahead
The liberalization of the dairy industry in 1991 had seen a
number of multinational players like Britannia, Le Bon, Dabon and Hi-Life enter
the sector.
Analysts wondered whether a co-operative with limited financial means could
stand up to the might of these MNCs, and if its low pricing strategy would
continue to stay relevant. MNCs like Pizza Hut, Domino's, Hindustan Lever
Limited and Cadbury had also become competitors. Amul had proved its detractors
wrong and firmed up ambitious growth plans..
AMUL
PRODUCTS
. AMUL means "priceless" in
Sanskrit. The brand name "Amul," from the Sanskrit
"Amoolya," was suggested by a quality control expert in Anand.
Variants, all meaning "priceless", are found in several Indian
languages. Amul products have been in use in millions of homes since 1946. Amul
Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a
leading food brand in India. (Turnover: Rs. 52.55 billion in 2007-08). Today
Amul is a symbol of many things. Of high-quality products sold at reasonable
prices. Of the genesis of a vast co-operative network. Of the triumph of
indigenous technology. Of the marketing savvy of a farmers' organisation. And
of a proven model for dairy development.
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Bread Spreads |
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Amul Butter |
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Amul Lite |
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Delicious Table Margarine |
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Milk Drinks |
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Kool Koko |
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Nutramul Energy Drink |
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Amul Masti Spiced Buttermilk |
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Powder Milk |
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Amul Spray Infant Milk Food |
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Amul Instant Full Cream Milk
Powder |
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Sagar Skimmed Milk Powder |
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Amulya Dairy Whitener |
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Fresh
Milk |
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Amul
Fresh Milk |
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Cheese |
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Amul Pasteurised Processed Cheese |
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Amul Cheese Spreads |
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Amul Emmental Cheese |
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Amul Pizza Mozzarella Cheese |
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For Cooking |
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Amul / Sagar Pure Ghee |
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Amul Malai Paneer |
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Mithai Mate |
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Desserts |
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Amul Ice Creams |
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Amul Shrikhand |
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Amul Mithaee Gulab Jamuns |
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Amul Chocolates |
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Health Drink |
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Nutramul |
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Amul Shakti Health Food Drink |
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INDUSTRY SCENARIO
Total ice cream market
in our country is of Rs.2000 crores in which branded ice cream market share is
of Rs. 650 crores. Amul captures around 27% of total market share of organized
sector. In 2003, Amul ice cream sales wet Rs.160 crore, almost three times the
Rs.55 crore sales in 1998.
The ice cream
consumption in Delhi is 20% of the total consumption in our country. Out of
which Amul captures around 30% of the Delhi market.
INTRODUCTION
TO THE PROBLEM
Retailers are the one
of the most important member of the distribution channel. They are the people
who provides product to the final consumers. As they have the direct touch with
the consumers, so they can play a vital role for influencing the buyers
decisions. The company should try to
provide services to the retailers in such a way that they can satisfy with
them.
RATIONALE:
The market share of
Amul ice cream is increased by three times in just two years. The total
consumption of Amul Ice- Cream in terms of rupees is Rs. 30,00,000 per month in
one of the agencies of Amul in Delhi. The Amul Ice Cream captures around 30% of
the total market share in Delhi. There is an immense opportunity for the
company to extend their market share. The project will create the opportunity
for the company to capture the market share.
SCOPE:
The scope of
study is to understand the problem faced by the company while increasing the
retail outlets. With the help of this project GCMMF can increase their outlets by
analyzing the feedback given by the interviewer (including existing and non
existing outlets). GCMMF can also analyze the pricing strategy followed by the
rivals. By this study company will get the information about current
competitive position of the Amul ice cream in the market.
PRIMARY OBJECTIVES: To increase the number of outlets of Amul ice
cream.
SECONDARY OBJECTIVE:
Ø To analyze the retailers perception about Amul ice
cream.
Ø To find out the competitive edge of the company over
the competitors.
Ø To analyze the market size of ice cream.
Ø To study the consumer preference about different ice
cream companies.
Ø To study distribution channel.
Retailing
includes all the activities involved in selling goods or services directly to
final consumers for personal, non-business use. A retailer or retail store is
any business enterprise whose sales volume comes primarily from retailing.
Any organization selling to final
consumers – whether it is a manufacturer, wholesaler, or retailer- is doing
retailing. It does not matter how the goods or services are sold or where they
are sold. Consumers today can shop for goods and services in a wide variety of
retail organizations. There are store retailers, non-store retailers, and
retailer’s organization. Perhaps the best-known type of retailers is the
department store. Retail-store types pass through stages of growth and decline
that can be described as the retail life cycle. A type emerges, enjoys a period
of acceleration growth, reaches maturity, and then declines. Older retail forms
took many years to reach maturity; newer reach maturity, whereas warehouse
retail outlets reached maturity in 10 years. The most important retail-store
types are:
- Specialty store: Narrow product line with a deep
assortment.
- Department store: Several product lines with each
line operated as a separate department managed by specialist buyers.
- Supermarket: Relatively large, low-margin,
high volume, self service operation designed to serve total needs for
food, and household products.
The wheel-of-retailing hypothesis
explains one reason that new store types emerge. Conventional retail stores
typically increase their services and raise their prices to cover the costs.
These higher costs provide an opportunity for new store forms to offer lower
prices and less service. New store types meet widely different consumers
preferences for service levels and specific services.
Retailers can position themselves as
offering one of the four levels of services:
1. Self-services:
Self-services is the cornerstone of all discounts operation. Many customers are
willing to carry out their own locate-compare-select process to save money.
2. Self-selection:
Customers find their own goods, although they can ask for assistance.
3. Limited services: These retailers carry more shopping goods, and customers need more
information and assistance. The stores also offer services such as credit and
merchandise-return privileges.
4. Full services:
Salespeople are ready to assist in every phase of the locate-compare-select
process. Customers who like to be waited on prefer this type of store. The high
staffing cost, along with the higher proportion of specialty goods and
slower-moving items and the many services, resulted in high-cost retailing.
5. Corporate retailing: Although many retail stores are independently owned, an increasing number
are part of some form of corporate retailing. Corporate retail organizations
achieve economies of scale, greater purchasing power, wider brand recognition,
and better-trained employees. The major types of corporate retailing—corporate
chain stores, voluntary chains, retailer cooperatives, franchises, and
merchandising conglomerates.
FOUR
P’S OF THE PRODUCT
PRODUCT: Amul ice cream has wide range of variety that
consists of more than hundred flavors available in the market including 20 new
flavors, which is introduced in this summer. As ice cream is an
impulsive purchase item so, its sale
depends mostly on availability and variety.
PRICE: The price of Amul ice cream is very less compared
to its competitors. In novelty item the price of the flavors varies from Rs.2
to Rs22. The pricing strategy of Amul is, to target each income group of the
society. The cheaper price of ice cream is meant for targeting the people with
low income. Along with the low income
group Amul is also targeting medium as well as the premium segment by providing
different flavors at different prices.
PLACE: The distribution of the ice cream in Delhi is done
through exclusive Amul outlets situated in various locations. In Delhi, Amul has eleven distributors who
supplies ice cream to more than 3000 outlets. These eleven distributors are
responsible for their respective areas.
PROMOTION: Amul is a well-established brand name of GCMMF. For
promotion of the ice cream the company gives advertisement in newspaper and
magazines. It gives glow sign board to every retailers and also makes wall
paintings on there request. Amul uses
their punch line ---“Real milk real ice cream” for the promotion.
SWOT ANALYSIS
STRENGTH:
a) Biggest sourcing base for milk and
milk products in India.
b) India’s best-known local Brand across
all categories.
c) 35% market share in the national Ice
Cream market.
d) Presence of a well-established
distribution and delivery network for dairy products.
e) Penetration pricing strategy – Amul
is the price warrior in the Ice cream market and currently has a very wide
range to offer for all price points.
f) Kwality Walls, Amul’s main rival, has
been able to extend it’s cold chain in only about 150 out of 300 class I towns.
Whereas Amul has presence in almost all towns because of its already existing
butter lines.
g) Customer is most comfortable buying
Ice Cream in the Value for Money segment and Amul is well present in this
segment.
h) Amul has built up a formidable image
as a brand in which generations of consumers have placed their trust. This can
be used to its advantage while introduction of ice creams.
WEAKNESS:
a) Relationship between retailer and company is not effective.
b) After sales service is not upto
retailers expectation level
c) Availability of all type of verity
ice is not regular.
d) Advertising is low profile, as the
results of our survey show. Kwality Walls on the other hand is into heavy
advertising and consequently, is popular.
e) As per our survey, retailers list a
credible Replacement policy as a factor very high on their wish list. They
would be willing to make further investments only for that brand which offers
replacement facilities. Amul has no replacement policy.
f) Retailers now demand freezers without
having to pay any deposit. This is especially true of those retailers who
already stock one or the other ice cream brands
OPPORTUNITY:
a) Delhi market is not restricted to
monopoly outlets. There are a significant number of retailers who are currently
stocking more than two brands. This is in Amul’s favor, as earlier it had to
overcome this problem in the Mumbai market.
b) There is ample scope in the low
priced segment as also in other categories where consumers presently are
dissatisfied with the quantity being provided vis a vis the price being
charged.
c) Amul has the opportunity to capture
the more evolved young adults and children who are open to new products provided
they meet their expectations.
d) Kwality Walls is right now in an
investment mode and is concentrating on expanding the market as also its reach.
Amul should direct its resources towards cashing in on Walls market
development.
e)
Distributors
are dissatisfied with the margin & customer support services currently
being provided in the market. This can be used to Amul’s advantage. Mother
Dairy is extremely apathetic to retailers and there is a gap to be exploited.
THREAT:
a) New companies are entering the ICE
industry.
b) Local manufacturers are growing at
alarming rate
c) Good advertisement campaign from
competitors.
d) The consumers have very well received
Kwality Walls product differentiation strategy and Mother Dairy is also pushing
up its advertising pitch.
RESEARCH DESIGN:
The
research design prepared with great care keeping in mind the research
objective. The project was divided into two parts—parts ‘A’, part ‘B’.
RESEARCH APPROACH:
In the
part ‘A’ the research was conducted by visiting to the various non existing
outlets of Amul and asking them about Amul ice cream and whether they would
like to keep Amul ice cream. I also told them about the Amul’s promotional
scheme and various superseding factors.
In the
part ‘B’ the research was conducted by visiting to the various existing Amul’s
outlets and knew about the replacement of old and unsold stock and services of
Amul.
RESEARCH INSTRUMENTS:
The
primary data collected for this study was done through detailed market survey
by means of unstructured interaction. The secondary data is collected through
Internets, Material provided by company, e.t.c.
SAMPLE PROCEDURE:
The
procedure adopted for sampling was on the basis of judgmental sampling.
HYPOTHESIS:
Ho1 --- There is no significance
difference between the price of Amul Ice-cream and it’s competitors.
Ho2 --- There is no significance difference between the
product quality of Amul Ice –cream and it’s competitors.
Ho3 --- There is no significance difference between the
company’s scheme of Amul ice – cream and it’s competitors.
Ho4 --- There is no significance
difference between the services provided by Amul and it’s competitors.
Ho5 --- There is no significance difference between the
availability of Amul Ice – cream and it’s competitors.
Ho6 --- There is no significance relation between the
taste of Amul ice cream and its competitors.
Ho7 --- There is no significance difference between the
packaging of Amul ice cream and its competitors.
Ho8 --- There is no significance between the flavor of
Amul ice cream and its competitors.
Ho9 --- There is no significance difference between the
brand image of Amul ice cream and its competitors.
LIMITATIONS:
Ø The study limit to Central Delhi
Ø Due to unavailability of proper conveyance
facility, it was really hard to cover the market under a scorching sun.
Ø In many residential blocks shops
located in corners of by lanes were difficult to locate.
Ø The time duration of two months was
short for the completion of all activities.
Ø Being a perishable product no sample
could be shown as demanded by many prospecting clients.
1
PROJECT ACTIVITY SEQUENCING
Final Report
This
table shows the interested to take retailership for ice-cream
|
Dealers Number |
YES |
NO |
|
100 |
67 |
33 |
From the above graph it is found that 67% retailers are
interested in keeping ice cream. Only 33% retailers are not interested.
If yes, which brand would you like to go for:
|
Retailers |
Amul |
Kwality |
Mother dairy |
Cream bell |
|
100 |
40 |
17 |
20 |
23 |
The graph
shows that out of hundred percent retailers 40% retailers were favored Amul ice
cream. After Amul the most favored ice cream is cream bell. Cream bell is
second most important because its new in market with higher rate of margin and
less price.
Preference given by the
retailers to the following companies on the given quality:
Comparison of preference given by the retailers
to the different Ice – cream-making companies:
From the above graph it is conclude that Amul is leading in the
price and variety preference but giving equivalent competition to other
companies in quality, packaging and availability. Amul is way behind in terms
of services.
(ANALYSIS OF NON-EXISTING OUTLETS)
Percentage
of people likes to keep deep freezer provided by the company:
|
Retailers |
Yes |
No |
|
100 |
87 |
13 |
Here graph shows that the most of the retailers wants to keep
deep freezer provide by the company.
Mode
of payment for deep freezer:
|
Retailers |
C.D.P |
Installment |
Security |
|
100 |
17 |
40 |
43 |
The above
graph shows that most of the retailers want to keep deep freezer on either
installment basis or security basis. Only 17% retailers are interested for cash
down payment.
Relationship
on the basis of:
|
Retailers |
Trial
basis |
Long term |
Short term |
|
100 |
23 |
77 |
0 |
The above graph shows that the most
of the retailers wants to keep relationship with Amul for long-term basis.
(ANALYSIS OF EXISTING AMUL’S OUTLETS)
Do you keep Amul ice cream?
|
Retailers |
Yes |
No |
|
100 |
90 |
10 |
About 90%
of the existing Amul outlets are still keeping Amul ice cream. Due to the lack
of proper sales services 10% of the existing outlets are now switch over to
other companies.
From
where you bought your deep freezer:
|
Retailers |
Amul |
Others |
|
100 |
80 |
20 |
Most of
the existing outlets purchased deep freezer from Amul. The graph shows that 80%
of the Amul outlets purchased their deep freezer from Amul.
Mode of purchase:
|
Retailers |
Cash down |
Installment |
Security |
|
100 |
74 |
3 |
23 |
The graph
shows that the 74% of existing retailers purchased their deep freezer form Amul
by paying cash. Only 23% of the retailers who have their shops on prime
location got deep freezer on security basis.
Which pack of ice cream is sold most?
|
Retailers |
Cups |
Cone |
Fundoo |
Candies/Bar |
Family/
Party pack |
|
100 |
25 |
30 |
15 |
20 |
10 |
The graph shows that the most
saleable flavor is cone. Party pack and Cups are also sold in bulks. The
flavors that are not sold much are Fundoo and Candies.
At what period of time customers comes in bulk:
|
Retailers |
Morning |
Afternoon |
Evening |
Night |
|
100 |
0 |
30 |
50 |
20 |
In the evening from 6 p.m to 9 p.m
the sale of ice cream reached to its optimum level. The ice cream is not sale
much in the morning period.
According to the retailer the flavour has maximum
sale:
|
RETAILER |
VANILLA |
CHOCOLATE |
BUTTER SCOTCH |
PINAPPLE/MANGO |
KAJU/PISTA |
ANJEER/LITCHI |
|
100 |
25 |
15 |
30 |
15 |
10 |
5 |
The graph shows that the most
demanded flavor is vanilla. After that Butter Scotch gets the position. Anjeer
and Litchi are rarely sold in the market.
Preference given to attributes:
|
RETAILERS |
PRICE |
MARGIN |
QUALITY |
VARIETY |
PACK. |
AVALB. |
TASTE |
C.S |
|
100 |
7 |
23 |
18 |
6 |
17 |
6 |
13 |
10 |
The above graph suggests that the quality of Amul ice cream
is admired more. The price and packaging also count. The problem area is the
availability of ice cream. The retailer says that all the flavors are not
available on demand.
ONE-WAY ANOVA
TEST:
As in our research the number of independent
variables are more than two so here we are using one-way ANOVA. The number of
independent variable is five here. The independent variables are Amul,
Kwality,,Mother Dairy, Cream Bell and Vadilall. The dependent variables are
price, margin, quality, availability, company scheme, flavour, packaging and
brand image.
The following data is calculated on the basis of
one-way ANOVA with the of SPSS software. The software gives the result very
quickly. We have to put the independent variable in variance one column and
dependent variable in variance two column. And after giving the right command
we can get the answer.
Here is one of the value for product quality
attribute is calculated. The degree of freedom four is obtained by subtracting
one from independent variable that is five. D.o.f 145 obtained by subtracting
five from hundred fifty dependent variables.
COMPARISON OF TABLE VALUE WITH CALCULATED VALUE.
Since the table value is less than
the calculated value, so here all the hypotheses are rejected. It means that,
there is a significance difference between the preferences given by the
retailers to the different attributes of Amul ice cream and its competitors.
FINDINGS
After analyzing all the data given by shopkeepers we found
certain key findings that is very important for our project.
1.Most of the retailers are interested for
keeping Amul Ice Cream.
2.
Retailers are not satisfied with the services provided by the company.
3.Most of the retailers like to keep deep
freezer on installment basis and security basis.
4.Cone and Party packs are sold most.
5.The sale of ice cream is higher in evening.
6.The full varieties of flavor are not
available on regular basis.
7. Prices of Amul ice cream are almost as par customers need.
8. Margin in Amul ice cream is very high.
9. People were highly satisfied with product
quality of Amul.
10. Although Amul has opened numerous
outlets it is seen that distributors are finding it
difficult to deliver supplies in the stipulated time leading to retailer
in convenience.
11. It was found that many deep
freezers had developed technical snags and service
personal was late in rectifying them. This created a negative rapport in
mind of the
retailers.
12. Retailers are unsatisfied with the replacement of
unsold Amul ice cream.
13. Distributors could not provide all type of varieties
because of less stock.
14. Other companies are providing deep freezers at law
security which attract the retailers
and create threat
for HADF scheme.
RECOMMENDATION:
1) Relationship with retailers and
company should be kept under a close watch
2) Salesmen should be given the
responsibility to handle the retailer’s grievances
3) Orders by the retailers should be
executed in a proper manner to avoid irregular availability.
4) Low security and easy installment
should be given on deep freezer.
5) Promotion activities should take into
consideration in two different ways a) Company should associate themselves with
social events, b) Company should use electronic as well as print media for
their advertisement.
6) Company should give special offers to
retailers frequently.
7) Company should expand their business
throughout the small towns.
8) Company should open exclusive Amul
parlors and outlets in big shopping mouls for promotion in higher segment.
9) There have been a lot of complaints
about replacement policy of Amul. Amul should try to improve its replacement
policy and make it somewhat liberal.
10) Innovative schemes like Priviledge
cards giving discount on successive purchases may be introduced to make a
customer brand loyal to Amul.
CONCLUSION
There is an ample scope for ice cream making companies do
progress in this lus green environment. The market size is increasing day by
day and the demand for new flavors are arising. The companies like HLL, Cream
Bell, Vadilall, and Mother Dairy are trying to capture more market share with
their new ideas and plan. As per Amul is concern the company should become
liberal on his policies. Amul market share in central Delhi is high but for
maintaining the growth rate it should give the retailers more facilities for opening
of new outlets and running successfully. The company also needs a proper
distribution network for availability of products at demand.
REFERENCES
1 BOOKS.
·
Marketing
management by Philip Kotler
Published by Pearson
Education Pvt. Ltd, Indian Branch, 12th
edition ,
·
Hunger
J.D &Wheelen T.L ,Essentional of strategic Management ,Prentice-Hall,3rd
edition,2004,pp-81-94
·
Wheelen
T.L & Hunger J.D-Concept in strategic Management & Business policy,Pearson
education,9th edition ,2007,pp-135-145
2 INTERNET.
3 MAGAZINES.
·
India
today, April 19, 2009, Page no-36
·
INSIGHT-The
Consumer Magazine, May-June 2009, Page no – 6-12
Questionnaire
(For
New Outlet)
CONSUMER DETAILS:
Name:
Address:
Contact
Number:
1. 
Have you ever through of expansion of your business in terms
of ice -cream?
Yes No
If no why
_______________________________________________________
2. If yes, which
brand would you like to go for?
i) Amul ii) Kwality iii) Mother Dairy iv)
Cream Bell
3. Rank according to your preference.
High Moderate Low
Amul
Kwality
Mother Dairy
Cream Bell
4. What is your preference about
following companies on the given qualities ?(1-5)
Amul Kwality Mother Dairy Cream Bell
i)
Price
ii)
Margin
iii)
Quality
iv)
Variety
v)
Packaging
vi)
Availability
5. Would you like to have deep freezer
provided by the company
Yes No
6. If No, why_______________________________________________________
7. If yes, then which mode of payment
are you looking for.
i)
Cash
down payment
ii)
Installment
iii)
Security
8. Would you like to have retailership
on?
i)
Trial
basis
ii)
Long
term
iii)
Short
term
Date: Signature:
______________
(FOR EXISTING OUTLETS)
Name: ______________________________________
Address: ____________________________________
Contact No. __________________________________
Dear Customer,
This survey is made for the purpose of my Summer Project and
doesn’t have any commercial impact.
1. Do you keep Amul ice cream?
a. Yes b. No
If no than why ________________________________________________
2. How long you are keeping Amul ice
cream?
a. Less than six months
b. 6 to 12 months
c. 12 to 18 months
d. more than 18 months
3. What is the sales turnover from day
one?
a. 1st 6th months__________________
b. between 6 to 1 year______________
c. 1 to 2 year_____________________
d. 2 to 3 years_____________________
4. Form where you brought your deep
freeze?
a. from Amul _________
b. other source ( Please
specify)_______________________
5. On which basis you procured your Deep
Freezer?
a. Cash down
payment:___________________________
b. Installment:__________________________________
c. Security:____________________________________
d. Other:______________________________________
6. How many brands you keep?
_____________________________________________________________
_____________________________________________________________
7. How many customers are looking for
Amul Ice cream (percentage)?
1 - 10 10 - 20 20 – 30 30 – 40 40 and
above
8. According to which brand of Ice Cream has maximum sales.
|
Brand |
Rank |
Reason |
|
Amul |
|
|
|
Kwality wall’s |
|
|
|
Vadilal |
|
|
|
Mother dairy |
|
|
|
Cream bell |
|
|
9. According to you which flavour of
Ice-cream has maximum sales?
Flavour (Rank them at a scale of 1 - 5)
a. Vanilla
b. Strawberry
c. Chocolate
d. Butter Scotch
e. Mango/Pineapple/Orange
f. Kaju/Pista/Kessar
g. Anjeer/Litchi
Do you feel color of
the Ice Cream affect its demand? Yes No
If
‘Yes’ then which color _________________________
10. Which flavors are mostly preferred
under Family/Party Pack?
___________________________________________________
11. Which pack of Ice Cream is most sold?
(rank at a scale of 1 - 5)
a. Cups
b. Cone
c. Fundoo
d. Candies/Bar
e. Family/Party Pack
12. Please grade different companies on
the following attributes in context of ice Cream
Scale
on the following basis: (5 as Very good and 1 as Very Poor)
Very Good
Good
Normal
Poor
Very
Poor
|
|
Brand Names |
||||
|
|
Amul |
Kwality Walls |
Vadilal |
Mother Dairy |
Cream Bell |
|
Product Quality |
|
|
|
|
|
|
Price |
|
|
|
|
|
|
Service |
|
|
|
|
|
|
Schemes |
|
|
|
|
|
|
Advertising |
|
|
|
|
|
|
Brand Image |
|
|
|
|
|
|
Flavors |
|
|
|
|
|
|
Packing |
|
|
|
|
|
|
Total |
|
|
|
|
|
13. At which period of time customers
comes in bulk?
Morning Afternoon Evening Night
14. Any suggestion or observation to
bring more sales of Amul Ice Cream
____________________________________________________________
Date: Signature:
_______________
Commercial Terms & Condition
·
The above price (indicated in col. 2 &
3) are inclusive of Excise Duty and Sales Tax.
·
The prices are on FOR basis.
·
Transportation charges from Dadra to all
courier location are included in the above price.
·
For other locations delivery will be free
upto 20kms. From the nearest branch of courier.
·
For outside 20kms, delivery charges will
be extra @ Rs. 7/- per km. Up and down on per unit basis.
·
All entry tax and octrol if any will be
extra as applicable.
·
The above prices are inclusive of
stabilizer prices.
·
Charges for Five-year warranty are
included in the above prices.
·
100% payment in advance from the retailers in the form of DD
drawn in favour of Voltas Limited – Hyderabad Unit and payable at Hyderabad for
Dadra Billing and at New Delhi for local billing.
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