TOPIC

MARKETING STRATEGY OF AMUL ICE-CREAMS SUBMITTED BY NAMRATA. A. KHUDANIYA M COM (MNGT) (PART1) SEMESTER I

PROJECT GUIDE PROF. RUBINA KHAN

SUBMITTED TO UNIVERSITY OF MUMBAI RAJASTHANI SAMMELANS

Ghanshyamdas Saraf College Affiliated to University of Mumbai ACCREDITED BY NAAC WITH A GRADE & Durgadevi Saraf Junior College (ARTS & COMMERCE) S.V. Road, Malad Mumbai 400064

RAJASTHANI SAMMELANS
Ghanshyamdas saraf college Affiliated to University of Mumbai . ACCREDITED BY NAAC WITH A GRADE & Durgadevi saraf junior college (ARTS & COMMERCE) S.V Road, Malad (W) Mumbai: 400064

CERTIFICATE
I Prof. Rubina Khan here by certify that Ms. Namrata .A. Khudaniya a Student of Ghanshyamdas saraf college of M.COM (semester I) Has completed project on in the Academic Year 20122013. This information submitted is true and Original to the best of my Knowledge.

External examiner: Date:

Principal:

Project Co-ordinator Date:

College Seal:

ACKNOWLEDGEMENT
I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me a chance to do this project I express my sincere gratitude to the principal, course co-ordinator Dipti Soni and our librarian and teachers for their Constant support and helping for completing the project. I am grateful to my friends for giving support in my project. Lastly, I would like to thank each and every person who helped me in completing the project especially MY PARENTS.

DECLARATION
I Miss Namrata Arjunlal Khudaniya a student of Ghanshyamdas saraf College of Arts and Commerce, Malad (W) M.COM (mngt) PAR 1 (semester I) hereby declare that I have completed project on year 2012-2013. This information submitted by true and original to best of my knowledge

Date:

Signature of student

EXECUTIVE SUMMARY
The first phase of the project aimed at introduction of Amul and repositioning of Amul ice-creams. In order to execute the same, initial activities included recording the existing volume of sales & analyzing the emerging patterns in ice-cream consumption and also Research conducted. This helped in arriving at important conclusions regarding packaging of the product,price,new positioning of the product, and if customer want less calories ice creams or not. questions encountered to the customers.

Objective of the study

To have a clear understanding of the ice cream industry and Amuls position in market. To increase sales of Amul ice-creams To brand existing outlets and convert new outlets for Amul To conduct an exhaustive market research on introduction of new low calories flavours. To check awareness, price acceptance, innovation excitement amongst consumers To check the awareness as well as level of satisfaction of retailers with distributors &the company with regards introduction of new flavours

INDEX
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Chapter Name INTRODUCTION Background of the organization Introduction to Brand Introduction on Ice Cream Industry Various Other Brand of Amul Market Share of Ice-Cream Brands Competitors SWOT Analysis of Amul Ice Cream Existing STP and SWOT of Amul Ice Cream Questionaire Finding of the survey Repositioning of the brand STP OF Amul ice cream Healthy Wealthy conclusion Biblography Page No. 8 9 10 11 14 16 17 19 21 23 25 40 41 43 44

Introduction

AMUL means" priceless" in Sanskrit. A quality control expert in Anand suggested the brand name Amul (Anand Milk Union Limited) 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, Amul spray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul I ce cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. 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 have a proven model for dairy development. And have a proven model for dairy development and have a proven model for dairy development.

Background of the organization

The Kaira District Co-operative Milk Producers' Union Ltd. was registered on December 1, 1946 as a response to the exploitation of marginal milk producers by traders or agents of the only existing dairy, the Polson (brand) dairy, in the small town of Anand (in Kaira District of Gujarat). Milk Producers had to travel long distances to deliver milk, which often went sour in summer, to Polson. The prices of buffalo and cow milk were arbitrarily determined. Moreover, the government at that time had given monopoly rights to Polson to collect milk from Anand and supply it to Bombay city. Angered by the unfair and manipulative trade practices, the farmers of Kaira approached Sardar Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson (who did the same but gave them low prices). He sent Morarji Desai to organise the farmers. In 1946, the milk farmers of the area went on a strike which led to the setting up of the cooperative to collect and process milk. Milk collection was also decentralized, as most producers were marginal farmers who could deliver atmost 12 litres of milk per day. Cooperatives were formed for each village too. The Cooperative was further developed and managed by Dr.Verghese Kurien along with H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk for the first time anywhere in the world and a little later, along with Kurien's help, making it on a commercial scale,[12] led to the first modern dairy of the cooperative at Anand, which would successfully compete against established players in the market. The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to Anand's neighbourhood in Gujarat, and within a short span, five unions in other districts Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up.

History of Amul

Introduction to Brand

Introduction on Ice Cream Industry

The ice cream market growth picked up after de-reservation of the sector in 1997. Of the total size of Rs 15-16bn, around 30-32% is in the hands of organized sector valued at Rs 4.9bn, restall is with the unorganized sector. Among the major players in this industry Hindustan Lever has a market share of around 50%, represented mainly by Kwality Walls brand. Amul with an estimated market share of 41% is rapidly gaining market share and lastly Vadilal is the player in the national market with 8-9% of the market share.

Production area In rural areas, kulfi / ice creams made by small / cottage industry are popular. The market for organized sector is restricted to large metropolitan cities. In small towns and villages, there are thousands of small players who produce icecreams / kulfis in their home backyard and cater to the local market. Almost 40% of the ice creams sold in the country are consumed in the western region with Mumbai being the main market, followed by 30% in the north and 20% inthe south.

Growth promotional activities The Indian government adopted the policy of liberalization regarding the ice cream industry also and it is since then that this sector has shown an annual growth ranging from 15- 20% per annum for last 1- 2 years.

, Types Indian Ice Cream market can be segmented in three different ways, namely on the basis of flavors; on the basis of stock keeping units / packaging and on the basis of consumer segments.

On the basis of flavors the market today has a number of flavors like vanilla, strawberry, chocolate, mango, butterscotch and a number of fruit flavors, dry fruit flavors traditional flavors like Kesar Pista, Kaju Draksh etc.

The market is totally dominated by Vanilla Strawberry and chocolate, which together account for more than 70% of the market followed by butterscotch and other fruit flavors.

Amul Ice-Creams Variants

1) Prolife Ice-cream Vanilla with chocolate sauce, Shahi anjir 2) Sundae Sundae, Sundae magic ,Double sundae 3) Sticks Frostik, Dollies, Candies 4) Cones Butter Scotch, Choco crunch 5) Novelties Cassata, Hum Tum, Cake magic 6) Malai Kulfi Masti kulfi, Shahi pista 7) Kids Sundae fundoo, fundoo chocobar, Fundoo balls (vanilla & mango) 9) Utterly Delicious Take away (Available in 500ml, 1.25L, 1.5L & 2.2L) Vanilla Royale, Two in One, Butter Scotch, Chocolate Passion, Fruit n Nut Fantasy,Alphonso Marvel. 10)Utterly Delicious Cups - Alphonso Mango, Vanilla, Strawberry, Chocolate, Kaju Draksh, Butter Scotch, Kesar Pista Royale, Kis Mis Kaju 11) But 1 Get 1 Free a) Spanish Saffron with Cream Balls + Same b) Rajbhog + Same c) Fresh Litchi + Same d) Shahi Anjir + Same e) Kesar Pista Royale + Same

f) Fresh Pineapple + Same g) Fruit Bonanza + Same h) Chocolate + Same i) Alphonso Mango + Same j) Tutti Fruti + Same k) Green Pista + Same l) Prolife Vanilla + Butter Scotch m) Vanilla Royale + Same n) Butter Scotch + Same o) Gauva + Same p) Cookie and Cream + Same q) Thandai + Same r) Afghan Dry Fruit + Same s) Shahista Pista Kulfi + Same 12) Couple Pack (250ml) Vanilla Royale, Strawberry, Butter Scotch Chocolate

Various Other Brand of Amul AMULS OFFERINGS

Breadspreads: Amul Butter Amul Lite Low Fat Breadspread

Cheese Range: Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Mozarella Cheese Utterly Delicious Pizza Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix

UHT Milk Range: Amul Taaza 3% fat Milk Amul Gold 4.5% fat Milk Amul Slim-n-Trim 0% fat milk Amul Chocolate Milk Amul Fresh Cream Amul Snowcap Softy Mix Pure Ghee: Amul Pure Ghee Sagar Pure Ghee

Infant Milk Range: Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above) Amulspray Infant Milk Food Milk Powders: Amul Full Cr eam Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener Fresh Milk: Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 3% fat Amul Smart Double Toned Milk 1.5% fat Curd Products: Amul Masti Dahi (fresh curd) Amul Butter Milk Chocolate & Confectionery:

Amul Milk Chocolate Amul Fruit & Nut Chocolate

Amul clairs

Brown Beverage:

Nutramul Malted Milk Food

Market Share of Ice-Cream Brands

COMPETITORS

Competitors are the once who produce and sell the same product as producer by the unit competitors affect the business with several caused. The main rival are following. 1. 2. 3. 4. Nestle Kwality Walls Vadilal Mother Dairy

1. Nestle India is a subsidiary of Nestle.S.A. of Switzerland . With seven factories and a large number of co-packers, Nestle India is a vibrant Company that provides consumer in India with products of global standards and is commited to long-term sustainable growth and shareholder satisfaction

2. Kwality Walls Was previously known as Kwality owned by Pishorilal Lamba Kwality Wall's is a major producer and distributor of ice cream and other dessert products in India, Pakistan, Sri Lanka,Malaysia and Singapore. It is a company of Hindustan Unilever, the arm of Unilever in India, and is an extension of the Wall's ice cream brand of Great Britain. Kwality, the original Indian company, was founded in 1956, and was the first in the region to import machinery for the mass production and sale of ice cream on a commercial scale. In 1995, in view of the growth potential of the frozen confections market, Kwality entered into an agreement with Lever, and has since been known by its current umbrella name.

3.Vadilal (Vadilal Industries Limited) From a small outlet in Ahmedabad over 80 years back, Vadilal Industries Ltd has today emerged as Indias second largest ice cream player. The company is also one of the largest processed food players in India with significant exports of frozen vegetables and ready to eat snacks, curries and breads. Vadilals aim is to become an Indian MNC in Icecreams and frozen foods and to provide products and services at an affordable price without compromising on quality.

3. Mother Dairy, set up in 1974, is a wholly owned subsidiary of National Dairy Development Board (NDDB) of India Mother Dairy's range of products include the brands Mother Dairy (milk, milk products, curd, ice cream, butter, etc.), Dhara (range of edible oils) and Safal (range of fresh fruits and vegetables, frozen vegetables, fruit juices).

SWOT Analysis of Amul Ice Cream

Strengths:1) Biggest Sourcing base for milk and milk products in India. 2) 38% market share in the national ice cream market. 3) Penetration pricing strategy- Amul is the price warrior in the ice-cream market and currently has a very wide range to offer for all the price points. 4) Reputation of high quality.
5) E-commerce, new products and process technology.

Weaknesses:-

1) Advertising is low profile, as the results of the survey show. Majority of the respondents have hardly seen any ad of Amul ice cream. However Kwality Walls on the other hand is into heavy advertising and consequently, is popular. 2) Shortage of stock during season. 3) Less attractive packaging. 4) Distribution problems. 5) 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. 6) Limited international presence as compared to leading global brands

Opportunities:1) Internet promotions are a good means of awareness which should be tapped. 2)It is a high growth segment as the population is every increasing with never- ending demands. 2) Distribution coverage 3) Threats:1) Amul is currently facing stiff competition from Kwality Walls and may face more threat from the local manufactures in the low priced segment ice creams. 2) The customers have very well received the Kwality Walls product differentiation strategy and Mother Dairy is also pushing up its advertising pitch. 3) Also the low per capita income low per capita consumption of the people is a threat to Amul. 4) Free entry to the markets. 5) Even Vadilal is coming up with their new strategy and promotions of various variants Of ice creams 6) Health conscious people refraining from sweets

EXISTING STP AND SWOT OF AMUL ICE CREAM

STP
I) SEGMENTATION

1) Geographical Urban and Rural 2) Demographic A) Age: 1 to 60 B) Family Life Cycle: Young, Single, Married, Older C) Education: Grade School or less, high school, college graduates, etc. D) Attitude towards the product: The attitude towards the product is positive as people have trust in Amuls products.

3) Psycho graphicWorking Class, College Goers, Accepted by all religion. 4) BehaviouralA) Occasions: Amul targets special occasions such as New Years Eve, Diwali and Valentines Day etc. B) Benefits: They provide good quality product at economical prices. C) Usage Rate: The usage rate is very high in behavioural segmentation of Amul Ice cream.

D) Buyer Readiness: The consumers are ready to buy these products and so the buyer readiness is high. E) Loyalty Status: The loyalty for Amul Ice-cream is Shifting Loyals as there is a major competitor in the market i.e. Nestle, Kwality walls

I)

TARGET

The target of Amul Ice-cream is Lower, Middle, Upper Middle Income group people. It targets both men and women and children

II)

POSITIONING

Amul Ice Cream is positioned as a Ice Cream with various flavours for all occasions and for all age groups.

QUESTIONAIRE Survey on Amul Ice Cream

Name: ___________________________ Gender: __________ Location: _______________________ Ph. No\Email id: ________________________________ Age: ________ Occupation: _______________________________________
1. What ice cream brand comes in your mind when you heard the word ICE

CREAM ? a) b) c) d) e) f) Kwality walls Amul Mother dairy Baskin robins Naturals Other (please specify)

2. Do you like AMUL ice-cream ?

Yes

No

3. Have you seen the ads of amul ice-creams ?

Yes

No

4. Do you think that price of amul ice-creams are high ?

Yes

No

5. Is the brand name visible ?

Yes

No

6. Do you like the packaging of the brand ?

Yes

No

7. Have you visit the amul parlour ?

Yes the amul girl ? Amul Girl

No

8. Do you think amul should use the brand ambassador or it should stick with

Brand Ambassador

9. Would you prefer amul ice-cream in a less-sugary base ?

Yes

No

10. Do you still prefer amul ice-creams after the worm controversy?

Yes

No

11. Do you think that amul has succeeded in all marketing strategies it has

undertaken to get the control of the confectionery market ? Yes No

12. From where do you came to know about the amul ice-creams ?

i. ii. iii. iv.

news paper advertising radio hoardings

13. Would you prefer a low calories ice-creams even if it is priced high?

Yes

No

14. Are you satisfied with the amul ice-cream ?

Yes

No

15. Any other suggestion ? ___________________________________________________________________________

FINDINGS OF THE SURVEY

1. What ice cream brand comes in your mind when you heard the word ICE CREAM ? a) Kwality walls b) Amul c) Mother dairy d) Baskin robins e) Naturals f) Other

Brands

Naturals Amul Baskin robins Kwality Others

2.Do you like AMUL ice-cream ? Yes No

Likes

Yes No

3.Have you seen the ads of amul ice-creams ? Yes No

Seen the Ads.

Yes No

4.Do you think that price of amul ice-creams are high ? Yes No

Price high

Yes No

5.Is the brand name visible ? Yes No

Brand Visibility

Yes No

6.Do you like the packaging of the brand ? Yes No

Like the packaging

Yes No

7.Have you visit the amul parlour ? Yes No

Visit the parlour

Yes No

8.Do you think amul should use the brand ambassador or it should stick with the amul girl ? Yes No

Amul Girl Vs Brand Ambassador

Amul Girl Brand Ambassador

9.Would you prefer amul ice-cream in a less-sugary base ? Yes No

Preference on Sugar Base

Yes No

10.Do you still prefer amul ice-creams after the worm controversy? Yes No

Preference after warm-Contravercy

Yes No

11.Do you think that amul has succeeded in all marketing strategies it has undertaken to get the control of the confectionery market ? Yes No

Success in Marketing Stratergy

Yes No

12.From where do you came to know about the amul ice-creams ? a. b. c. d. News paper Advertising Radio Hoardings

Media

News paper Advertising Radio Hoardings

13.Would you prefer a low calories ice-creams even if it is priced high? Yes No

Preferece over low Calories Ice-Cream if Price high

Yes No

14.Are you satisfied with the amul ice-cream ? Yes No

Satisfaction

Yes No

15.Any other suggestion ?

Suggestion

Yes No

ANALYSIS OF THE SURVEY

Through this survey, it is clear that: 1. People love Amul ice cream very much. 2. It is the most preferred brand of ice cream. 3. As most of the people are health conscious they would like to have a less sugar based or no added sugar chocolate, especially if it comes from a reputed name like AMUL. 4. But Most people will not prefer a Low Calories chocolate even if it is highly priced.

REPOSITIONING OF THE BRAND

After the findings and analysis of the survey, it is clear that if a new product is launched in the market, i.e. LOW CALORIES Ice cream, it will most probably be a success. Following is the new product, its features and a SWOT Analysis and STP of the product: Company: Amul Brand: Ice Creams Product Launched: Amul Ice Cream Healthy wealthy (Low Calories) Tag Line: Enjoy Moments of Happiness in a healthy way Characteristics: 1. For the health conscious people. 2. A Low Calories. 3. Priced at Rs. 200.

SWOT ANALYSIS OF CADBURY DAIRY MILK HC

STRENGTHS: 1. Especially for the health conscious people. 2. Comes from a reputed company Amul 3. Good Visibility, Good Product Quality and packing. WEAKNESSES: 1. High priced. OPPORTUNITIES: 1. Flavours will be launched in the near future. THREATS:

1. Competitors- Nestle, Kwality walls

STP OF AMUL ICE CREAM HEALTH WEALTHY

SEGMENTATION: 1. GEOGRAPHIC SEGMENTATION: It will target the Urban Market. 2. DEMOGRAPHIC SEGMENTATION: AGE: The age of the customer will be between 18 to 35 years. INCOME: Middle income, Upper Middle Income group. OCCUPATION: It can be consumed by people of all occupations. 3. PSYCHOGRAPHIC: It can be used by working class as well as house wives who are health conscious, also by those who have busy lifestyle. It is accepted by all religions. 4. BEHAVIOURAL SEGMENTATION: BENEFITS: Low on calorie, good quality, easily available in supermarkets and general stores also OCCASIONS: There is no specific occasion for consuming this ice creams. Whenever the person wants he can consume the product and not worry about the calories also. USAGE RATE: The Usage Rate will be high as it will be consumed more in urban areas. LOYALTY STATUS: Loyalty status will be Hard core Loyals as there is no much completion in the market. BUYER READINESS STAGE: The buyer will be ready to buy this product as it will be low on calorie even if it is highly priced. So buyer readiness will be high.

TARGETING: Amul Ice Cream Healthy wealthy will be targeted on both men and women who are health conscious and also youth who are more health conscious.

POSITIONING: It will be positioned as a LOW CALORIES ice cream. Its USP will be that it will be rich in nutrients which are necessary for maintaining the health of the person.

CONCLUSION

It is very difficult proposition to draw conclusion to the Amul Ice creams business and the impact it has on our daily life. Amul is a company that strongly pushes itself as an Indian company With the help of this project, it can be concluded that the marketing strategies followed by Amul are very successful.

BIBLIOGRAPHY

www.amul.com www.wikipedia.org Sample survey by questionnaire