A PROJECT REPORT ON Managing Channel Management and Analyzes market at rural India for Gujarat Co-operative Products Marketing

Federation Limited, Gujarat (GCMMF)

Submitted By: Mr. Pulkit Shukla

Submitted to:Sinhgad Business School Ambegaon,Pune

Company Guide: Faculty Guide: Prof. R.K. Dikkatwar

Sanjeev kapoor

CERTIFICATE
This is to certify that Mr. Pulkit Shukla, pursuing his MMM Regular course from Sinhgad Business School, Pune, has successfully completed his Summer Project-2011 as a partial fulfillment of his curriculum during the tenure of MMM degree. The following summer internship project report titled Managing Channel Management and Analyzes market at rural India AT Gujarat co-operative milk marketing federation ltd Nagpur from 16th june 2011 to 16th August 2011 is here by Approved as a Certified Study in Management carried out & presented in a manner Satisfactory. He has performed his Summer Training to the extent of his potential and achieved the objectives while undergoing the project.

Company Guide:

Faculty Guide:

Mr.Sanjeev Kapoor (Branch Manger)

Prof. R.K. Dikkatwar

Declaration
I hereby declare that this project work entitled Managing Channel Management and Analyzes market at rural India is my work, carried out under the guidance of my faculty guide Prof. R.K. Dikkatwar Mr.Sanjeev Kapoor and company guide

This report neither full nor in part has ever been submitted for award of any other degree of either this university or any other university.

Company Guide: Sanjeev kapoor

(Branch Manager)

Faculty Guide: Prof. R.K. Dikkatwar

ACKNOWLEDGEMENT
I sincerely thanks to GUJRAT CO-PERATIVE MILK MARKETING FEDERATION LIMITED getting a chance to be a part of reputed organization, its always a privilege for any MMM student especially the knowledge I gathered while working here. I feel proud to do my summer training in GCMMF, Limited and in a city like Gadchiroli & chandrapur where the competition is very aggressive in the products and dairy industry especially in pouch products segment. I take this opportunity to extend my sincere gratitude to Mr. Sanjeev Kapoor (Branch Manager) for providing me the valuable support and encouragement at each step of my training at GCMMF, Limited. I am carrying with me a very sweet memory and a positive attitude from GCMMF, Limited and hope to join this esteemed organization in near future. Next I would like to thank my internal project guide Prof. R.K. Dikkatwar for extending his support at every stage of the project. I am grateful to my institute the faculty, staff and fellow student each of who in his or Her own ways have contributed to the completion of the project. PULKIT SHUKLA

INDEX
SR. NO. 1. 2. 3. 4. TOPICS ACKNOWLEDGEMENT EXECUTIVE SUMMARY INTRODUCTION COMPANY PROFILE a) Amul History b) About the Product c) Competitor d) GCMMF Overview 5. 6. OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY/ DESIGN (a) Method Used (b) Data Collection (c) Topic Selection 7. 8. 9. 10. 11. 12. 13. 14. ANALYSIS OF THE DATA MAJOR FINDINGS SWOT ANALYSIS OF THE COMPANY CONCLUSION LIMITATIONS OF PROJECT RECOMMENDATIONS & SUGGESTIONS QUESTINNAIRE BIBLIOGRAPHY PAGE NO.

EXECUTIVE SUMMARY

The research conducted was descriptive in nature. Nagpur division segment was survey to attain certain results. The survey was conducted to analyze the Market Share as, which would influence the buying decision of the customers and about the functioning of existing dealers and distributors. Random sampling was used as the mode of collecting the sample. After the survey completion; the data was first sorted and then analyzed on chosen parameters. This analyzed data was later converted into forms of graphs such as pie charts, bar graphs etc. This was done to make results easily comprehensible by any one going through the report. This also made it easy to draw conclusions based on the research and provide a presentable format of the customers as well as dealers. Later on this information was compiled in the form of presentable and highly comprehensible report.

INTRODUCTION
In today's competitive world where cut throat competition exists, every one wants to know their position, their strength and weakness, so it is very essential to know opportunity to target the potential market, capture the market, evaluate and form the marketing strategies. Today is the world of changing era, with modern changes in tastes, fashions, technology and higher standard of living changing customer's needs and preferences, wants and desires and their high expectations for new and improved products have enforced the companies to bring new, modern and superior products in the market. For this every company must establish and evaluate new product development ideas and strategies. Market survey is one of the most widely used Marketing Research techniques. Market survey is at times viewed as synonymous with market research. This is erroneous. It has to be understood clearly that market survey is just one of the techniques of marketing research and is not synonymous with marketing research. It is just one method of collecting the marketing information required for carrying out a given marketing research task. It is used if the required data is not available from the company's internal records and from external published resources. It amounts to original field research work for the purpose of collecting primary data. The project holds great interest for us as consumer, as students and as marketers. As consumer we benefits from insight into our own consumption related decision "what we buy and how we buy". As students of human behavior, it is important for us to understand the internal and external influence that impels individuals to act in certain consumption related ways.

Thus, this project helps the company in understanding of present and future requirement of super distributors and distributors. Also this project helps in understanding the distributors and customer's ideas about the

product in the market. As we know distributors and distributors are the most important elements of the market, their ideas about the product and market survey will help the company in many ways taking into consideration its important factors of success.

COMPANY PROFILE
The Amul History
The Kaira District Cooperative Products Producers Union Limited was established on 4 January 1946 as a response to exploitation of marginal products producers in the city of Anand (in Kaira district of the western state of Gujarat in India) by traders or agents of existing dairies. Producers had to travel long distances to deliver products to the only dairy, the Polson Dairy in Anand often products went sour, especially in the summer season, as producers had to physically carry products in individual containers. These agents decided the prices and the off-take from the farmers by the season. Products is a commodity that has to be collected twice a day from each cow/buffalo. In winter, the producer was either left with surplus unsold products or had to sell it at very low prices. Moreover, the government at that time had given monopoly rights to Polson Dairy (around that time Polson was the most well known butter brand in the country) to collect products from Anand and supply to Bombay city in turn (about 400 kilometers away). India ranked nowhere amongst products producing countries in the world in 1946. The producers of Kaira district took advice of the nationalist leaders, Sardar Vallabhbhai Patel (who later became the first Home Minister of free India) and Morarji Desai (who later become the Prime Minister of India). They advised the farmers to form a cooperative and supply directly to the Bombay Products Scheme instead of selling it to Polson (who did the same but gave low prices to the producers). Thus the Kaira District Cooperative was established to collect and process products in the district of Kaira.

Products collection was also decentralized, as most producers were marginal farmers who would deliver 1-2 liters of products per day. Village level cooperatives were established to organize the marginal products producers in each of these villages. The first modern dairy of the Kaira Union was established at Anand (which popularly came to be known as AMUL dairy after its brand name). The new plant had the capacity to pasteurized 300,000 pounds of products per day; manufacture 10,000 pounds of butter per day, 12,500 pounds of products powder per day and 1,200 pounds of casein per day. Indigenous R&D and technology development at the Cooperative had led to the successful production of skimmed products powder from buffalo products the first time on a commercial scale anywhere in the world. The foundations of a modern dairy industry in India had just been laid as India had one of the largest buffalo populations in the world. We move to year 2000. The dairy industry in India and particularly in the State of Gujarat looks very different. India has emerged as the largest products producing country in the world. Gujarat emerges as the most successful State in terms of products and products product production through its cooperative dairy movement. The Kaira District Cooperative Products 4 Producers Union Limited, Anand becomes the focal point of dairy development in the entire region and AMUL emerges as one of the most recognized brands in India, ahead of many international brands1. Starting with a single shared plant at Anand and two village cooperative societies for products Procurement, the dairy cooperative movement in the State of Gujarat had evolved into a network of 2.12 million products producers (called farmers) who are organized in 10,411 products collection independent cooperatives (called Village Societies). These Village Societies (VS) supply products to thirteen

independent dairy cooperatives (called Unions). AMUL is one such Union. Products and products products from these Unions are marketed by a common marketing organization (called Federation). Figure 1 gives the hierarchical structure of this extensive network of cooperatives. Gujarat Cooperative Products Marketing Federation or GCMMF is the marketing entity for products of all Unions in the State of Gujarat2. GCMMF has 42 regional distribution centers in India, serves over 500,000 retail outlets and exports to more than 15 countries. All these organizations are independent legal entities yet loosely tied together with a common destiny! (In a recent survey GCMMF was ranked amongst the top ten FMCG firms in the country while AMUL was rated the second most recognized brand in India amongst all Indian and MNC offerings). Interestingly, the Gujarat movement spread all over India and a similar structure was replicated (all are at different levels of achievement but their trajectory appears to be quite similar). Two national organizations, the National Dairy Development Board (NDDB) and the National Co-operative Dairy Federation of India (NCDFI) were established to coordinate the dairy activities through cooperatives in all the States of the country. The former provides financing for development while the latter manages a national products grid and coordinates the deficit and surplus products and products powder across the states of India. In the early nineties, AMUL was asked by the Government of Sri Lanka to establish a dairy on similar lines in Sri Lanka. Interestingly, while Polson folded up sometimes in 1960s, the cooperatives are faced with new competition in liberalizing India from multi-national corporations (MNCs) that brought in new and improved product portfolio, international network and immense financial support.

The Cooperatives face new challenges that test the robustness of their approach and their commitment to the movement and a new style of management thinking. Today AMUL is a symbol of many things of a promise to member. Farmers are assured a guaranteed purchase of all the products. That they produce at pre-determined prices, of high-quality products sold at reasonable prices to consumers & the developing and coordinating a vast co-operative network. Of making a strong business proposition out of serving a large number of small and 5 marginal suppliers of the triumph of indigenous technology & the marketing savvy of a farmers' organization. In the remaining part of the paper, we first review the role that cooperatives have played in the development of dairy industry globally and how is this sector adjusting to new global challenges. Next, we look at AMUL within this context and highlight their journey towards excellence. Specifically, we study how AMUL achieved this exalted status, what were the ingredients of its success, how did the belief in cooperation transform the business environment and the lives of people, and what lessons does it hold for other businesses.

Mission:

We at GCMMF Ltd. endeavor to satisfy the taste and nutritional requirements of the consumers of world through excellence in marketing by our committed team. Through co-operative networking we are committed to offering quality products that provide best value for money.

Values:
Customer orientation Commitment to producers Integrity Co-operation Excellence Leadership Quality Innovation Growth oriented new products Belongingness Pride in organization Employees satisfaction.

The Products Grid:

The remarkable innovation allows products to follow from areas of surplus products. This is channeled through the grid to other districts with spare capacity to be sold in liquid form or converted into non-perishable dairy products. The surplus of the flush season is preserved and stored against the scarcities of he lean months maintaining equilibrium on prices around the year. The farmer is sheltered from the anxieties of seasonal ups and downs on the prices he receives, which processing plant are assure of being able to function at capacity.

PRODUCTS OF AMUL:
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 Products Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Products and Amulya have made Amul a leading food brand in India. Today Amul is a symbol of following things, 1) High-quality products sold at reasonable prices. 2) The genesis of a vast co-operative network. 3) The triumph of indigenous technology.

AMUL MILK:

INSIST ON AMUL PRODUCTS ONLY

Products is the natures perfect food for all ages. It has almost all the vital nutrients need for the growth and well being of human body. Products is the richest natural source of calcium and essential amino acids, which is good for bone formation. It is particularly beneficial for people recovering from sickness, for sportsmen, for old people, for pregnant women and for growing girls and boys. The doctor recommends a minimum daily intake of 250 ml or more for every person. Normal cow products has 4% Fat and buffalo has 7% Fat. There is another important constituent of products is Solids Non Fat (SNF). This (or SNF as it is commonly called) comprises of proteins, minerals, carbohydrates and vitamins. For mil to be nutritionally balanced, it has to contain both Fat and Solids Not Fat in proportion.

Amul Gold :
Amul Long Life Products is fresh and only fresh products, which has been processed with a technology called UHT (Ultra High Temperature), hence also known as UHT products. The UHT treatment ensures zero microbic activation, while preserving the maximum flavour, taste, and nutritional

value. The aseptic packaging system protects the product from air and light and guarantees long shelf life of 120 days without any need of refrigeration. Price: Rs.42/ Litre

Amul Taaza:
Amul Long Life Products is fresh and only fresh products, which has been processed with a technology called UHT (Ultra High Temperature), hence also known as UHT products. The UHT treatment ensures zero microbic activation, while Preserving the maximum flavors, taste, and nutritional Value. The aseptic packaging system protects the product from air and light and guarantees long shelf life of 120 days without any need of refrigeration. Price: Rs.42/ Litre Amul UHT products is available in two variants - Amul Gold with 4.5% fat, Amul Taaza with 3.0% fat . Amul Taaza is available in 1 Litre, 200 ml and 500 ml packs, Gold in 200 ml and 1 Litre pack.

The PFA act lays down standards of Fat and SNF for various types of products, as follows:

Sr. No. 1. 2.

Type Of Amul Products

FAT

SNF

Toned products (Amul Taaza)

3.0% Min

8.5% Min 9.0% Min

Full Cream Products (Amul 6.0% Min Gold)

3.

Cow

Products

(Amul

Cow 3.5% Min

9.0% Min

Products)

Amul Products is available in Nagpur division and surrounding areas in Toned, Full cream and cow products varieties. Amul Products strictly confirms to PFA standards. In fact we keep our standards. In facts we keep our standards higher so as to abundantly comply with the legal requirements and to provide wholesome nutritive food to our consumers. This means when you are buying Amul Products you are sure to get the natures perfect food for your family. You are sure to get your full 500 ml. in every pack. You are sure of getting products, which has longer life because of superior bacteriological quality and state of art processing technology The loose products available from local vendors often does not confirm to PFA standards. It often has less Fat and less Solid Non Fat then required. Remember that if your products contains 0.5% less Fat or SNF, you are paying up to one rupee per pouch extra. Besides, it is not uncommon to find artificial preservatives, which are not permitted by law being added to loss products.

PANEER:

Amul is all set to enter the Fresh Paneer segment by leveraging its Liquid Products distriution network covering over 100000 retail outlets across India. India's top dairy brand on Monday launched Amul FreshPaneer .

Amul Fresh Paneer is the latest addition in its product portfolio in its quest to become the numero-uno brand in the Indian Paneer market. After establishing itself as a market leader in Frozen Paneer category through its Amul Malai Paneer brand commanding over 65% market share in the branded Paneer market, Amul is now entering the Fresh Paneer segment in order to strengthen its position in the Dairy products category. To start with, Amul will be launching Amul Fresh Paneer which does not contain any harmful chemicals or preservatives, in Ahmedabad through its Liquid Products distribution network. Amul Fresh Paneer will be available at all Products outlets in Ahmedabad round the year in the convenient sizes of 200 g Block priced at Rs. 42/- and 1 kg Block priced at Rs. 210/-

AMUL SHRIKHAND:

Shrikhand is a traditional sweet. It is the only pasteurized. Shrikhand available in the country with smooth texture and extended shelf life. Made from most modern dairy equipment. AVAILABLE IN : 100GM 200GM 500GM AMUL MITHAI GULAB JAMUN:

Amul Gulab jamun is delicious product made with hygienic and adivative terms . Made from most modern dairy equipment.

AMUL CHOCOLATES:

AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Products Solids, Chocolate mass .

AMUL GHEE:

Amul Ghee is delicious and rich varied nutrient product made by intensive care and lucrative addivatives

GCMMF Overview :
GCMMF is the Indias largest food products marketing organization. It is a state level apex body of products 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.

Members

13 districts Co-Operative bulk producers union

No. Of producer members 2.41 million No. Of village societies Total products handling capacity Products collection Products collection daily average Products drying capacity 511 metric tons per day 2.28 billion liters 6.25 million liters 12,792 7.4 million per day

Cattle feed manufacturing 2340 metric per day capacity

Sales Turnover

Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-2010 2010-2011

Rs. (in million) 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 52554 67113 74245 86574

US $ (in million) 400 450 455 493 493 500 500 575 616 672 850 1050 1325 1504 1802 2089

(3)World's Largest Products Producer:

India has become the world's No. 1 products producing country, with output in marketing year ending March 2000 forecasted at 78 million tonnes. United States, where the products production is anticipated to grow only marginally at 71 million tonnes, occupied the top slot till 1997. In the year 1997, India's products production was on par with the U.S. at 71 million tonnes. The world products production in 1998 at 557 million tonnes would continue the steady progress in recent years. Furthermore, the annual rate of growth in products production in India is between 5-6 per cent, against the worlds at 1 per cent. The steep rise in the growth pattern has been attributed to a sustained expansion in domestic demand, although per capita consumption is modest - at 70 kg of products equivalent.

Annual Products Production has trebled:

India's annual products production has more than trebled in the last 30 years, rising from 21 million tonnes in 1968 to an anticipated 80 million tonnes in 2001. This rapid growth and modernization is largely credited to the contribution of dairy cooperatives, under the Operation Flood (OF) Project, assisted by many multi-lateral agencies, including the European Union, the World Bank, FAO and WFP (World Food Program). In the Indian context of poverty and malnutrition, products has a special role to play for its many nutritional advantages as well as providing supplementary income to some 70 million farmers in over 500,000 remote villages.

Exports:
GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 8 years.

The major export products are:

Consumer Packs

Amul Pure Ghee Amul Butter Amul Shrikhand Amul Full Cream Products Powder Amul Mithaee Gulabjamun. Amul Skimmed Products Powder Nutramul Brown Beverage Amulspray Infant Products Food Amul Cheese Amul Malai Paneer

Bulk Packs

Amul Skimmed Products Powder Amul Full Cream Products Powder

Many of our products are now available in the USA, Gulf Countries and Singapore.

Comparison of Price, Margin (Distributors & Distributors) of Amul Products & Other Brands: (Values in Rs.) Products (in %) Name of Brand Price S.S Margin Distributors Margin Amul Mahanaad Dinshaw 42.00 28.00 30.00 2.50 4.00 4.00 4.00 5.00 5.00

The above values or the prices and margins of distributors may be changed

Some of the major dairy cooperative federations include:

Andhra Pradesh Dairy Development Co-operative Federation Ltd (APDDCF) Bihar State Co-operative Milk Producers Federation Ltd (COMPFED) Gujarat co-operative Milk Marketing Federation Ltd (GCMMF) Haryana Dairy Development Cooperative Federation Ltd. (HDDCF) Himachal Pradesh State Cooperative Milk Producers Federation Ltd (HPSCMPF) Karnataka Cooperative Milk Producers Federation Ltd (KMF)

Amul Secret Of Success:

The system Succeed Mainly because it provide an assured Market at remunerative price for the producer Milk beside acting as a Channel to Market the Production Enhancement package. Whats more, it does not disturb the Agro-System of the former. It also enable the Consumer an access to high quality Milk and Milk Product. Contrary to the Traditional system, when the profit of the Business was cornered by the Middlemen, the system ensured that the profit goes to the Participant for socio-economic upliftment and common good. Looking back on the path traversed by Amul the following features make it a pattern and model for emulation elsewhermer . Amul has been able to : Produce an appropriate blend of the policy makers for farmers board of management and the professionals: each group appreciating its role and limitation. Bring at the command of the rural Milk producers the best of the Technology and harness its fruit for Betterment. Provide a support system to the milk producers without disturbing their Agro-Economics systems. Plough back the Profits,by prudent use of Men,Material and Machines,in the rural sector for the common good and betterment of the member producers. Even though, growing with time and on scale, it has remained with the smallest producer member.in that sense,amul is an example par excellence,of an intervention for rural change.

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 LTD),a name which suggest THE TASTE OF INDIA.

Amul is based on four hands,which are coordinated with each other. The actual meaning of this symbol is co-oedination of four hands of different people by whome this union is at top position in asia . Firsthand is of farmers,without whome the organization would not have existed. Second hand is of processors,who process he row material into finished goods. Third hand is of marketer,without whome the product would have not reached the customers. Fourth hand is of customers,without whom the product would have not carried on.

Achievement & Awards:

Amul Asias largest dairy co-operative was created way back in 1946 to make the milk producer self-reliant and milk business with pride.Amul has always been the trend setter in bringing and adapting the most morden technology to door steps to rural farmers.

Amul created history in following areas: First self motivated an d autonomus farmers organization comprising of more than 5000000 Marginal milk producer of khira district. Created dairy co-operative at village level functioning with milk collection centers owned by them. Computerized milk collection system with electronic scale and computerized accounting system. The first and only organization in world to get iso 9000 standard for its farmers co-operatives. First produce milk from powder from surplusmilk.Amul is the live example of how co-operation amongst the poor marginal farmers can provide means for the socio-economic development of the under privileged marginal farmers.

AWARDS:Amul a co-operative society and its co-operation has led many different awards in its favour. Magsaysay award for community leadership presented in manila. Philippines to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien. 1964: Padmabhusan award given to Shri T.K. Patel. 1965: Padmshri awarded was given to V. Kurien, general manager, by the president of India. 1987: Best Productivity awarded by national productivity council for the year 1985-86 awarded to Amul dairy. 1988: Best Productivity awarded for the second successive year 1986 -87 by the president of India, Mr. R. Venkatrao to kaira union. 1993: ICA Memenoto towards genuine and self sustaining cooperative worldwide ICA regional office for Asia and pacific, New Delhi, 1996. 1999: G.B.Birla award. Moreover the Amul union has achieved the prestigious ISO 9001-2000 and HACCP Certificate and effects are got to obtain ISO 14000. 1999: Best of All" Rajiv Gandhi National Quality Award for the year, 2003: The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer in the service category of the prestigious IMC Ramkrishna Bajaj National Quality Award. 2006-07: GCMMF has bagged award for excellent performance in exports of dairy products from Agricultural and Processed Food Exports Development Authority (APEDA). 2007: Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit.

Organization Structure Chart

Chairman

Managing Director General Manager Ass. General Manager

Finance Dept.

Production Dept.

Marketing Dept.

Sales & Purchas Personnel Dept Dept.

Finance Manager

Production Manager

Marketing Manager

Sales Manager

Personnel Manager

Accountant

Officer

Marketing Executive

Officer

P.R.F.

Officers

Supervisor

F.S.R.

Salesmen

Executive

DISTRIBUTION CHANNEL OF AMUL PRODUCTS:

Companys Plant is situated at shahapur in Kalyan district. Products is processed and packed at Kalyan and sent to the respected Distributors and then distributors to Distributors. Distribution Network of GCMMF India Ltd. Manufacturer (Plant)

SUPER-STOCKIST

SUB-STOCKIST

RETAILER

SCOPE AND OBJECTIVE OF STUDY:

Decision-making requires relevant and correct information for collecting the data, which can be used for decision-making. Objectives of data collection should be very clear, objective guide us to collect the right data from the right source.

Scope Of The Study:

The study carried out in Nagpur division region so its scope is mainly limited to Nagpur division region. Market share of Amul Products. The study will serve consumer in better manner. The study gives information about the services given by distributor to their Distributor. The study gives information about the size of the retail network. The study provides suggestions to the company to improve their products sales. The study gives information about the competitors products.

OBJECTIVES OF PROJECT:

PRIMARY OBJECTIVE:
Managing Chanel Management and Analyse market for Amul in Rural India. To find size of Retail Network of Amul Products in specific areas of Gadchiroli & Chandrapur. To find the problems faced by retailers in selling and storing. To collect the information about the competitors.

SECONDARY OBJECTIVE:
To appoint distributor in rural India. Analyze rural market and look for logistic issues in market. To analyze scope of managing product management. Making aware of other overheads which are required for segmentation in market. Creating demand for the product in the market.

RESEARCH METHODOLOGY:
METHODS & SOURCE OF DATA COLLECTION

Facts, information or premises systematically collected and presented for the purpose of the drawing inferences may be called data. The first hand information bearing on any research, which has been collected by we or his agent or assistant, may call data.

For collecting the information for this project I have used the source of data. For the collection of the data I have used in-depth interview method for that purpose. I have taken a general interview of distributors and consumers. Thus the data obtained through this method is primary one and true.

PRIMARY DATA:

The data was generally collected by structured questionnaire, the technique applied through personal direct survey, indebt interviews were taken and by observations. Primary datas most important role is in knowing the o Distribiutor & Distributors attitude & opinion. o Distributors & Distributors awareness about the product/brand.

SECONDARY DATA:
Secondary data consist of information that is already in existence, having been collected for another purpose.

1 Website: www.amul.com from this website information collected like the history of organization regions, market, various products, competitors, companies objectives & welfare activities of company.

TOPIC SELECTION
Topic selection is the one of the important aspects of project. It decides the course of action to be followed. The topic selected should be such that it helps in understanding the market concepts clearly, as was given the topic by the company itself. The topic given by my project guide was

Managing Channel Management and analyse market in rural India

Interpretation of Data:
Flow of the Project:The main objective was to analyze and manage distributor management for the company. The project was factored under Nagpur Division Amul (Marketing division). Company was tapping for the channel management and expanding its rural market, As company was on the platform to increase it base in rural India where 70% of Population reside. Project was mainly thorough to appoint distributor for the company and by making appropriate channels of distributor for the company . Company is also on win win situation to make the surface more wide and develop the platform for the rural market

Primary Step:Company has appointed in Nagpur division where Channel was intimate to Gadchiroli District. Gadchiroli is rural market for the most of FMCG companies located in Maharashtra surrounded by23 Talukas and many small villages. Products is always a bread and butter for everyone in country. Company has appointed Super Stockist at Gadchiroli, which was base point to work or we can say the place from where the goods will be distributed to my dealers located at various junctions.

Things in Consideration:Company has made responsible for all the terms and conditions to be explained while appointing distributor at this places. Various Norms are taken into consideration while appointing dealers which was sole consideration while appointing any distributor for the company. Various stringent factors are determined while making distributor for any rural India.

SALES WISE ATTRIBUTES :

According to observation & servey the following data is drawn, Table.2

Sales
5% 9% 27% 9% Gadchiroli Dhanora Wadsa Bramhapuri Nagbhid 9% 9% 9% 9% 14% MUL Sironcha Rajura Gondpripri

From above pie chart we can know that type of the consumer in the market. From above diagram we can say that 13 % of the consumers are price sensitive. 27 % customers are having distribution problem. They do not get the products at their nearest shop. customers are unaware of the products. The most i.e.54% of customers prefer a good quality.

Awareness of Customer Using Advertisement:After market survey &observation following data is drawn. Advertising Media For Amul Ads Banners Newspaper Relative Other Total No. Of Customer 90 40 40 10 20 400 No. Of Customer In % 45 20 20 5 10 100

Sourcd:-Amul Website and Annual Data Awareness of Customer using Advertisement

5% 20%

Ads
10% 45% 20%

Banners Newspaper Relative other

From above graph, we are know that the 45% of customer know about Amul Products by through advertise in media, 20% customer know by Banner through, 20% customer know by Banner through, 5% customer know by Relative through & 10% customer know by other such as distributor, neighbor, friend.

Effect of Advertisement:
Effect Of Advertisement On selling

4% 36% 60%

Yes No Can't say

It is found that 60% distributors said advertisement is effective to increase a sale, 36% distributors are said advertisement is not effective to increase a sale and 4% distributors doesnt give proper answer.

Cost of Living

The Price of 1 Litre of Products

United States Australia Italy Spain India

Rs.78 Rs.48 Rs.71 Rs.56 Rs.28

Preferences of Distributors Towards Various brands of products with respect to the attributes offered:
After interviewing the Distributors and asking them about their preferences of brand we got the following information. Brand Mahanand Amul dinshaw Thorat Others Preferences in % 35 30 25 6 4

Preferences in %
6% 4%

35% 25%

Mahanand Amul Dinshaw Thorat Others

30%

After analyzing brand wise uses of the consumers we found that Amul is not that much demanded brand in the given market. We tried to find out the reasons for the low sale of Amul.

Complaints Of Distributors About Amul Products:

According to Distributors ; we get following information;

After performing the market survey researcher tried to find out the reasons for low sales of Amul Products in Gadchiroli & Chandrapur. Thereafter researcher found the following problems or complaints of distributors about the Amul Products. The problems were as follows: High price (low margin) Poor distribution Expiry date problem Storage problem

The survey we found that large numbers of people are price sensitive in the central Zone area. The major problem is low margin for distributors. Distribution Problem is the second important problem faced by the distributors about the Amul products in the given area. The Amul super stockiest are currently having amit agencies in the Gadchiroli & Chandrapur of the Nagpur division.Only single super stockist in the north area of the Nagpur division. But after performing the survey we found that he is not covering all the area & unable to reach at every part of Nagpur division. Replacement Problem is also we found in the market. Distributors are having complaints that the Amul Company doesnt give any replacement for leakage problems and they dont give replacement for old stock. While

competitors does give the replacements. This also makes the difference in the sale of Amul products. This is a strange problem, which we found in the north Zone area of the Nagpur division city. The Amul Company is having policy to print the manufacturing date of previous day of delivery on the Products pouches. While competitors print the present date of delivery. For e.g. If the products is suppose to be deliver on 11th July, then Amul prints previous date i.e. 10th July. Where competitor print the present date i.e. 11th July. This creates confusion and misunderstanding in the minds of consumers as well as distributors.

Problem High Price Poor Distribution Replacement Printed date

Table.8

% 70 20 7 3

Retailers Problems About Amul Milk in %

80 70 60 50 40 30 20 10 0 High Price Poor Distribution Replacement Printed date

Problem

The above diagram is showing that:The 70% distributors have a pricing problem. Because of competitor like Mahanand & Dinshaw give a highest margin than Amul to a distributors. This is one of the major reasons for the low sale of Amul products in west Zone of Nagpur division . The 20% distributors have a problem of distribution. company is not delivering an amul products timely to distributor as they expected. Also the distribution in some area like Gadchiroli and Chandrapur the

distribution is very poor or almost absent. Therefore even if demand is there the sale is very low in that area. The 7% distributors have a problem of replacement. The competitors do give the replacements where Amul doesnt give a replacement. The 3% distributor have problem of printed date. From such Distributor as well as customer think that Amul is not fresh products due to the date problem. This is one of the problems, which curtails down the sale of Amul products.

MAJOR FINDINGS:
Demand for Amul Taaza and Amul Gold is less. The most of customer use Mahanand & dinshaw. The surveys we can found that, the most of customers are priced sensitive. The Customers are give preference of availability and quality. The most of customers are unaware of the Amul products. Advertisement of Amul Products is not impressive in different Medias Advertisement is negligible. The consumers are not buying Amul Products because of high rate and they do not get the products at their nearest shop. they said that products is not fresh and it gets spoiled faster due to late delivery. Mahanand is the most leading brand in the Nagpur division market followed by Amul, Dinshaw, Thorat, and Others. The consumption Amul Cow Products (Taja) is higher i.e.80% and Amul Buffalo Products (Gold) is 20%. Most of distributors said advertisement is effective to increase a sale The most of distributors are give the first preference to Mahanand after that they will select Amul Products. Mahanand products has a nice brand image in the minds of distributors. Some distributors complaint about the late or no delivery of Amul Products in their shop.

SWOT ANALYSIS
To analyzes the competitor strength of a company we adopt a technique abbreviated as SWOT ANLYSIS where.

:- Stands for STRENGTH.

W :- Stands for WEAKNESS. O :- Stands for OPPORTUNITY. T :- Stands for THREATS. This technique gives a clear picture of the company i.e. were it stands in comparison to its competitors.

Strength:
By strengths of company we mean in which areas it enjoys an advantageous positions viz a to its competitors. These are: Amul has an excellent brand image present in the market since last 55 years. So it doesnt require investing huge amount to make brand image. GCMMF Ltd. has 12 district co-operative member union dairies in different states; hence it becomes easy for them to make their presence in each corner of the Nation. They are striving for the quality thats why their products are called The Real Products Products.

Weakness:
By weaknesses of a company we mean that in which areas the competitors are doing better and the company itself is suffering. Amul has some major weaknesses: Profit margin for Retailer and Distributors is comparatively less. Sales promotion activities, which are not satisfactory as compared to the competitors. Advertisement for the product is dull, especially of Amul Products.

Opportunities:
Opportunities for a company we mean that what are new emerging areas in which company can start its operations and should try to cash the opportunities. There is a vast market for GCMMFs products especially in FMCG field in country. The company should cash the wider acceptance of its products in the market by launching new range of products like hot beverages, pickles, ketchup and snacks. The company should also enter into confectionery field. The company can also avail the opportunity by getting more export oriented

Threats:
By threats we mean two types of threats. First are the threats that company is facing now days and second are the threats, which are likely to appear in the near future. Both these types of threats should be dealt with care otherwise the company can suffer. Because by ignoring the threats a company cant survive. The present and future threats that Amul (GCMMF) is facing: Amul Products is facing a cutthroat competition with the local and national based competitors. In the areas where the research was conducted, Amul Products had face a tough competition from the competitors brands. Because of Liberalization and Globalization many other local as well as national brands are entering in the market.

In addition to above, changing political scenario is also having effect on GCMMF Ltd. has to extra caution about the political implications.

CONCLUSION:
It was concluded that the Amul products i.e. Amul milk & Amul dairy products is though known to its consumers but still its acceptance is

comparatively low as compared to other local brands present in the market. Therefore, measures in terms of reach & availability and efficient sale promotion are to be initiate to enhance sales and acceptability among the end user. There is no awareness of Amul among the customers. So, there should be proper advertisement and sales promotions activities by the company to capture good market share for Amul and to enhance its awareness level, which is very low among the customers as well as distributors.

The sale of Amul products is low due to higher prices, low margins, improper distribution and lack of awareness about the product. So from above studies we conclude that we have to overcome above problems to increase the sale. When we compare the past sale we found that sale growth has been stop and it has started declining. i.e. the product has become mature in the given area.

LIMITATIONS OF THE PROJECT:

DEMAND AND AWARENESS OF THE PRODUCT:
Because of no advertising of Amul milk & Amul dairy products Products in Nagpur division city, awareness level among customers as well as distributors is very negligible. So to get demand company should spread awareness among customers through advertisement.

TIME DURATION:
The time duration for conducting the research was very short, due to this one could not do justice to the Market Survey.

SAMPLE SIZE:
The sample size does not cover maximum number of distributors and customers of Nagpur division city. The sample size was restricted to certain number. Some of the respondents were reluctant / hesitant to provide proper information. It was assumed that the findings from the respondents were correct. Due to lack of knowledge of the geographical area, the survey was made randomly.

SUGGESTIONS:
Company should provide replacement of the spoiled products to the distributors. Should improve its distribution channel & chain by increasing the no. Of distributors. Distributors should be only for Amul brand i.e. exclusive distributor. Company should provide gifts, with their products to attract the customers. There should be proper check & control over schemes given to the distributors. Should provide point of display materials to each & every distributors that can spread awareness among the customers. Company should give some special discount to bulk user of Amul products. Should increase margin to the distributors in Amul products. Should provide home delivery for the convenience of the consumers. The company should highlight the price tag on the product, which will attract more customers because it is cheaper. Company should take care of distributors by solving their problems and helping them proper service by appointing company representatives. Timely visits should be given to the retail shops.

 Evening stall in front of high volume sale retail outlets, gym, public place etc. Should try to build good PR with the distributors, as they are the only person who is responsible for changing the perception of unfresh products; create awareness & demand among the consumers. Give adv. In health magazines, news papers, on radio & national entertainment channels, such as STAR T.V., ZEE, SONY, Alpha & Etv Marathi, DD channel etc. this will enhance its publicity & awareness. Company can come up with an AMUL PRODUCTS PARLOR, in which it can serve its products products in form of a different flavors & taste. This will increase its products consumption as well as people will find a suitable shopping mart for dairy products. Company should target bulk users such as institutions, hotel, caterers, etc.

BIBLIOGRAPHY:
Books:
Marketing Research Marketing Management Marketing Management : : S. L. GUPTA Philip Kotler

: Dr. V.S.Ramaswamy & S.Namkumari

Web sites:
www.amul.Com http://www.indiandairy.com/