ON
BY
ON
PRE LAUNCH SURVEY OF CURD IN
JAIPUR
BY
ROHIT RANJAN THAKUR
DATE OF SUBMISSION
15TH May 2009
AUTHORIZATION
This report is in the partial fulfillment of the requirement of MBA program of
ICFAI BUSINESS SCHOOL , JAIPUR . This is to be submitted to two
places :
1] TO FACULTY GUIDE
Dr SUDHIR RAJGURU
FACULTY [ IBS , JAIPUR]
2] TO COMPANY GUIDE
Mr NARENDRA SINGH
ASST. MANAGER AMUL ,JAIPUR
ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for
Gujarat Cooperative Milk Marketing Federation Ltd., Anand (AMUL).
It has been an enriching experience for me to undergo my summer training
at AMUL, which would not have possible without the goodwill and support of
the people around. As a student of ICFAI BUSINESS SCHOOL ,JAIPUR I
would like to express my sincere thanks too all those who helped me during
my practical training program.
Last but not least, I would like to record my deepest sense of gratitude to
RATAN ,BHAWARand PRAVEEN SIR [sales person] and my friends for
their support and constant encouragement
However, I accept the sole responsibility for any possible error of omission and would be
extremely grateful to the readers of this project report if they bring such mistakes to my notice.
ii
EXECUTIVE SUMMARY
I Rohit Ranjan Thakur felt privileged to be a part of ICFAI business
school , JAIPUR. I did my summer internship training in Gujarat cooperative
milk marketing federation a FMCG sector company under the brand name
“AMUL MILK”. My project title is the “PRE LAUNCH SURVEY OF CURD IN
JAIPUR“. The project basic objectives is to estimate demand of Amul curd
before its launch in Jaipur and promoting Amul milk in Jaipur at the same
time.
In first part of the project I was propounded with the work of promoting Amul
milk in three areas of Jaipur namely Mahesh Nagar , Raja Park , Walled
City. This promotion strategy was further divided into four parts:
A) To change the existing Amul shops to Amul shopee under scheme
B) To form new retailers accompanied with Amul shopee conversion
work.
C) To find dealer for Amulmilk in the walled city area and
D) To find out demand of Amul milk for the dealer in walled city .
It made me capable of communicating right words at the right time to the
right person , which is very important in marketing .
In the second part, I worked on my project ie; “Pre launch Survey of Curd in
Jaipur” . Through this project I estimated demand of Amul curd. As a
methodology, I chose direct interview in the form of questionnaires to know
about consumers’ preferences. On the basis of these preferences I drew out
the factors effecting demand of curd, consumer’s nature of purchase and
how is it affected by their occupation or income .More over I estimated the
demand on the basis of competitors present demand ,which gave a fair idea
of curd demand to Amul..
There were certain limitations of the project which are as follows:
TABLE OF CONTENTS
➢ Authorization
i
➢ Acknowledgement
ii
➢ Executive Summary
iii
➢ Industry profile
1
➢ Introduction of organization
7
♦ History 9
♦ Company profile 13
♦ Company in Jaipur
38
♦ Amul today 40
➢ Introduction of project
42
➢ Proposed methodology
43
➢ Survey report
43
♦ Data collection 43
♦ Limitations 46
♦ Analysis
47
♦ Demand estimation
68
➢ Concepts
70
➢ Activity done
74
➢ Finding and suggestions
76
➢ Conclusion 77
INDUSTRY PROFILE
FOOD INDUSTRY
The food industry is the complex, global collective of diverse businesses that
together supply much of the food energy consumed by the world population.
Only subsistence farmers, those who survive on what they grow, can be
considered outside of the scope of the modern food industry.
The food industry includes:
Regulation: local, regional, national and international rules and regulations
for food production and sale, including food quality and food safety, and
industry lobbying activities
Education: academic, vocational, consultancy
Research and development: food technology
India has diverse agro-climatic conditions and has a large and diverse raw
material base suitable for food processing companies
➢ Under the food industry, Dairy product is very important part of food
processing. Dairy processing is acting good role in India.
Dairy Processing
India ranks first in the world in terms of milk production. Indian production
stands at 91 million tones growing at a CAGR of 4 per cent. This is primarily
due to the initiatives taken by the Operation flood programmes in organizing
milk producers into cooperatives; building infrastructure for milk
procurement, processing and marketing and providing financial, technical
and management inputs by the Ministry of Agriculture and Ministry of Food
Processing Industries to turn the dairy sector into viable self-sustaining
organized sector. About 35% of milk produced in India is processed. The
organized sector (large scale dairy plants) processes about 13 million tones
annually, while the unorganized sector processes about 22 million tones per
annum. In the organized sector, there are 676 dairy plants in the
Cooperative, Private and Government sectors registered with the
Government of India and the state Government
FMCG
Products which have a quick turnover, and relatively low cost are known as
Fast Moving Consumer Goods (FMCG). FMCG products are those that get
replaced within a year. Examples of FMCG generally include a wide range of
frequently purchased consumer products such as toiletries, soap, cosmetics,
tooth cleaning products, shaving products and detergents, as well as other
non-durables such as glassware, bulbs, batteries, paper products, and plastic
goods. FMCG may also include pharmaceuticals, consumer electronics,
packaged food products, soft drinks, tissue paper, and chocolate bars.
A subset of FMCGs are Fast Moving Consumer Electronics which include
innovative electronic products such as mobile phones, MP3 players, digital
cameras, GPS Systems and Laptops. These are replaced more frequently
than other electronic products.
White goods in FMCG refer to household electronic items such as
Refrigerators, T.Vs, Music Systems, etc.
Indian FMCG Sector
The Indian FMCG sector is the fourth largest in the economy and has a
market size of US$13.1 billion. Well-established distribution networks, as well
as intense competition between the organized and unorganized segments
are the characteristics of this sector. FMCG in India has a strong and
competitive MNC presence across the entire value chain. It has been
predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from
US $ billion 11.6 in 2003. The middle class and the rural segments of the
Indian population are the most promising market for FMCG, and give brand
makers the opportunity to convert them to branded products. Most of the
product categories like jams, toothpaste, skin care, shampoos, etc, in India,
have low per capita consumption as well as low penetration level, but the
potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace
with rapid urbanization, increased literacy levels, and rising per capita
income.
The big firms are growing bigger and small-time companies are catching up
as well. According to the study conducted by AC Nielsen, 62 of the top 100
brands are owned by MNCs, and the balance by Indian companies. Fifteen
companies own these 62 brands, and 27 of these are owned by Hindustan
Lever. Pepsi is at number three followed by Thums Up. Britannia takes the
fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9).
These are figures the soft drink and cigarette companies have always shied
away from revealing. Personal care, cigarettes, and soft drinks are the three
biggest categories in FMCG. Between them, they account for 35 of the top
100 brands
THE TOP 10 COMPANIES IN FMCG SECTOR
S. NO. Companies
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
7. Cadbury India
8. Britannia Industries
The growth in rural income has been better than urban income since the
minimum support price for crops like wheat and paddy has been
substantially hiked. Even prices of pulses, rice, oilseeds and milk have
increased dramatically over the last one year. The disposable income with
the farmer is higher now,” said Rajesh Gupta, the president of DCM Shriram
Consolidated-promoted Hariyali Kisaan Bazaar.The firm runs 180 stores and
is present in Uttar Pradesh, Punjab, Haryana, Rajasthan and Maharashtra.
These stores saw a 30 to 40 per cent growth in FMCG sales and a three-
figure growth in grocery sales during the April-June quarter.
“The FMCG growth at 25 per cent in the April-June quarter (over the
corresponding period last year) is higher than earlier years. Better prices for
farm produce, the increased government spending and remittances from
workers in urban areas have contributed to higher income,” said S
Sivakumar, chief executive (agri-business), ITC. It has 23 stores in Uttar
Pradesh, Madhya Pradesh and Maharashtra.
Sivakumar added that sales of agricultural inputs have done even better.
With higher prices for the produce providing the incentive, on the one hand,
and shortage of labour spurring the use of inputs, on the other hand, there is
an increase in sales of the farm input.
Rise in food prices is not the only reason. Large retail players like Reliance,
Spencer’s and Subhiksha procure farm commodities in bulk directly from the
fields and this has cut out the middle man’s commission, which farmers used
to pay.
Moreover, farm earnings do not attract income tax. The future is set to see a
further improvement in the disposable income from agriculture due to the Rs
71,000-crore farm-loan waiver and increased government spending on
raising the farm output through schemes.
“When disposable income goes up, a part of it is spent on apparel, FMCG
and education. I feel we are going through this phase. At the same time, the
farm-loan waiver and debt-relief scheme, which became public about four
months ago, has also been factored into by farmers,
INTRODUCTION OF
ORGANIZATION
GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's
largest food products marketing organisation. 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. AMUL is the brand under this
organization.
Amul's product range includes milk powders, milk, butter, ghee, cheese,
curd, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns,
basundi, Nutramul brand and others. In January 2006, Amul plans to launch
India's first sports drink Stamina, which will be competing with Coca Cola's
Powerade and PepsiCo's Gatorade .
Amul is the largest food brand in India and world's Largest Pouched Milk
Brand with an annual turnover of US $1050 million (2006-07). Currently
Amul has 2.6 million producer members with milk collection average of
10.16 million litres per day. Besides India, Amul has entered overseas
markets such as Mauritius, UAE, USA, Bangladesh, Australia, China,
Singapore, Hong Kong and a few South African countries. Its bid to enter
Japanese market in 1994 had not succeeded, but now it has fresh plans of
flooding the Japanese markets .Other potential markets being considered
include Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the
man behind the success of Amul. On 10 Aug 2006 Parthi G Bhatol, chairman
of the Banaskantha Union, was elected chairman of GCMMF.
HISTORY
Amul was formally registered on December 14, 1946. The brand name
Amul, sourced from the Sanskrit word Amoolya, means priceless. It was
suggested by a quality control expert in Anand and it was chosen because it
was a perfect acronym for Anand Milk Union Limited.
The Amul revolution was started as awareness among the farmers. It grew
and matured into a protest movement that was channeled towards
economic prosperity
Over five decades ago, the life of an average farmer in Kheda District was
very much like that of his/her counterpart anywhere else in India. His/her
income was derived almost entirely from seasonal crops. The income from
milk buffaloes was undependable. Milk producers had to travel long
distances to deliver milk to the only dairy, the Polson Dairy in Anand – often
milk went sour, especially in the summer season, as producers had to
physically carry milk in individual containers. Private traders and middlemen
controlled the marketing and distribution system for the milk. These
middlemen decided the prices and the off-take from the farmers by the
season. As milk is perishable, farmers were compelled to sell it for whatever
they were offered. Often, they had to sell cream and ghee at throw-away
prices. In this situation, the private trader made a killing. Moreover, the
government at that time had given monopoly rights to Polson Dairy, which
was run by a person of Parsi descent, (around that time Polson was the most
well known butter brand in the country) to collect milk from Anand and
supply to Mumbai city in turn (about 400 kilometers away). Another problem
farmers faced was that in winter the milk output of buffaloes doubled which
caused prices to fall down even further. India ranked nowhere amongst milk
producing countries in the world in 1946. Gradually, the realization dawned
on the farmers with inspiration from then 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) and local
farmer, freedom fighter and social worker Tribhovandas Patel, that the
exploitation by the trader could be checked only if they marketed their milk
themselves. Amul was the result of the realization that they could pool up
their milk and work as a cooperative
These village societies would collect the milk themselves and would
decide the prices at which they can sell the milk. The district union was also
form to collect the milk from such village co-operative societies and to sell
them. It was also resolved that the Government should be asked to buy milk
from the union.
However, the govt. did not seem to help farmers by any means. It
gave the negative response by turning down the demand for the milk. To
respond to this action of govt., the farmers of Kaira district went on a milk
strike. For 15 whole days not a single drop of milk was sold to the traders. As
a result the Bombay milk scheme was severely affected. The milk
commissioner of Bombay then visited Anand to assess the situation. Having
seemed the condition, he decided to fulfill the farmers demand.Thus their
cooperative unions were forced at the village and district level to collect and
sell milk on a cooperative basis, without the intervention of Government. Mr.
Verghese Kurien showed main interest in establishing union who was
supported by Shri Tribhuvandas Patel who lead the farmers in forming the
Co-operative unions at the village level. The Kaira district milk producers
union was thus established in ANAND and was registered formally on 14th
December 1946. Since farmers sold all the milk in Anand through a co-
operative union, it was commonly resolved to sell the milk under the brand
name AMUL.
At the initial stage only 250 liters of milk was collected everyday. But
with the growing awareness of the benefits of the cooperativeness, the
collection of milk increased. Today Amul collect 11 lakhs liters of milk
everyday. Since milk was a perishable commodity it becomes difficult to
preserve milk flora longer period. Besides when the milk was to be collected
from the far places, there was a fear of spoiling of milk. To overcome this
problem the union thought out to develop the chilling unit at various
junctions, which would collect the milk and could chill it, so as to preserve it
for a longer period. Thus, today Amul has more than 150 chilling centers
in various villages. Milk is collected from almost 1073 societies. With the
financial help from UNICEF, assistance from the govt. of New Zealand under
the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder
and butter was planned.
COMPANY PROFILE
THE TASTE OF INDIA, AMUL comes from the Sanskrit word Amoolya,
means priceless. It was suggested by a quality control expert in Anand and it
was chosen because it was a perfect acronym for Anand Milk Union
Limited . AMUL was formed under the dairy cooperative movement in India
in 1946
Based in the village of Anand, the Kaira District Milk Cooperative Union
(better known as Amul) expanded exponentially. It joined hands with other
milk cooperatives, and the Gujarat network now covers 2.12 million farmers,
10,411 village level milk collection centers and fourteen district level plants
(unions) under the overall supervision of GCMMF.
There are similar federations in other states. Right from the beginning, there
was recognition that this initiative would directly benefit and transform small
farmers and contribute to the development of society.
Markets, then and even today, are primitive and poor in infrastructure. Amul
and GCMMF acknowledged that development and growth could not be left to
market forces and that proactive intervention was required. Two key
requirements were identified.
The first, that sustained growth for the long term would depend on matching
supply and demand. It would need heavy investment in the simultaneous
development of suppliers and consumers.
Type Cooperative
Founded 1946
Headquart
Anand, India
ers
Industry Dairy
Website www.amul.com
List of Products Marketed:
Breadspreads:
• Amul Butter
• 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 Emmental Cheese
• Amul Gouda Cheese
• Amul Malai Paneer (cottage 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
• Avsar Ladoos
UHT Milk Range:
• Amul Shakti 3% fat Milk
• Amul Taaza 1.5% fat Milk
• Amul Gold 4.5% fat Milk
• Amul Lite Slim-n-Trim Milk 0% fat milk
• Amul Shakti Toned Milk
• Amul Fresh Cream
• Amul Snowcap Softy Mix
Pure Ghee:
• Amul Pure Ghee
• Sagar Pure Ghee
• Amul Cow 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 Cream Milk Powder
• Amulya Dairy Whitener
• Sagar Skimmed Milk Powder
• Sagar Tea and Coffee Whitener
Sweetened Condensed Milk:
• Amul Mithaimate 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:
• Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
• Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza,
Roasted Almond)
• Nature's Treat (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:
• Amul Milk Chocolate
• Amul Fruit & Nut Chocolate
Brown Beverage:
• Nutramul Malted Milk Food
Milk Drink:
• Amul Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom,
Rose, Chocolate)
• Amul Kool Cafe
Health Beverage:
• Amul Shakti White Milk Food
please look at Annexure 5 for product details and view .
Amul
• Commitment to Quality
• Value for money
• The generation of awareness
• The fostering of loyalty
• Development of strong brand identity
Amul
1956
Milk
Ice cream Chocolates Shrikhand Fresh Milk Cheese
Power Breadspread
1996 1973 1980 1956 1962
1958
Gulabjamun Condensed
Softy Mix Eclairs Amul WMP Paneer
mix Milk
2001 2001 1960 1997
1999 1996
Flavoured Instant
Basundi Frozen Pizza
Milk FCMP
2005 2002
2001 2002
Kool Cafe
2005
AMUL PARLOUR
Amul has recently entered into direct retailing through "Amul Utterly
Delicious" parlours created in major cities Ahmedabad, Bangalore, Baroda,
Delhi, Mumbai, Hyderabad and Surat. Amul has plans to create a large chain
of such outlets to be managed by franchisees throughout the country. We
have created Amul Parlours at some prominent locations in the country,
which are run by the company or its wholesale dealers:
1. Delhi Metro Rail Corporation
2. The Somnath Temple
3. National Institute of Design
4. Infosys Technologies in Bangalore, Mysore & Pune
5. Wipro campus in Bangalore
6. L.J. College, Ahmedabad
7. Ahmedabad Airport
8. Surat Municipal Corporation
9. Delhi Police
10. Gujarat State Raod Transport Corporation
11. Jubilee Mission Medical College, Trichur, Kerala
12. Sanjay Gandhi Hospital Parlour, Amethi
13. Indian Institute of Management, Kolkata
14. Cafe Amul, MDG, Gandhinagar
"Amul Utterly Delicious" parlours are an excellent business opportunity for
investors, shopkeepers and organizations. In order to come closer to the
customer, we have decided to create a model for retail outlets, which would
be known as "Amul Preferred Outlets"(APO).
You can create your own Amul Parlour within your premises/ shop. All you
have to do is e-mail us at parlour@amul.coop or write to us at :
Retail Cell
Gujarat Co-operative Milk Marketing Federation Ltd.
Amul Dairy Road, Anand- 388001
Ph: (02692) 258506,7,8&9
To have a better idea please go through the following:
1. The criteria for selection of APOs would be -
a. Visibility - How prominent is the location of your shop?
b. Shop area: 100 - 300 sq. ft.
c. Good Business potential
d. Exclusive Amul outlet - no other products
e. Willingness to sell the entire range of Amul Products
f. Creditworthiness and past business experience
2. On your inquiry - our Field force would visit your site. He/She would fill
the APO proposal form with your passport size photograph. You would
require:
i. Shops and Establishment license
ii. Layout of the shop and frontage - The layout of the shop
designed by a local architect/local contractor.
iii. 2 Passport size photographs
4. We feel that the shop has good potential, and needs support in the
initial days, we can offer additional margins upto maximum of 1% on
dairy products and 2% on Ice cream. The additional margin shall be
target based and shall be given in kind. The support at best would be
given only for he first year of business.
Under this head AMUL used to do lot of sponsorship shows they use lot of
medium like
Advertisements
Hoardings
News papers
T v shows
And many more to create awareness in the public and to make proper
relation with customer
After product sell by taking feedbacks.
Amul takes immense pleasure in presenting ‘The Amul Vidya Shree Award’,
India’s first of its kind award that recognises and rewards Standard X toppers
across India.
CHRISTMAS CELEBRATIONS
Amul had set up its Virtual Parlour in Second Life (http://www.amul.com) and
made live and on line on 27th December 2007. The space is built on 1024
sq. M (approx. 1 Acre) of land on India island in Second Life. It comprises a
number of circular sub-areas, starting with the entrance point, which is the
common point of teleport for all users entering this space. There is a ‘media
area, several product display areas, as well as a constantly rotating stream
of AMUL topicals ads, several displays, which are all also video enabled.
This Amul Virtual Parlour celebrated X’mas on 25th December, 08 by
decorating the Parlour and doing various activities. A large number of people
visited this parlour on that day.
Talk to us:
Head Gujarat Cooperative Milk
Office Marketing Federation,
PO Box 10, Amul Dairy
Road, Anand 388 001,
Gujarat, India
Phon (+91) (2692) 258506,
e nos 258507, 258508, 258509
Fax (+91) (2692) 240208,
no. 240185
Email: Corporate:
gcmmf@amul.com
Exports:
exports@amul.com
Careers:
careers@amul.com
Product Feedback:
milkpowders@amul.com amulya@amul.com
Butter: Amullite:
butter@amul.com amullite@amul.com
ghee@amul.com cheese@amul.com
mithaee@amul.com shrikhand@amul.com
Milk: milk@amul.com Icecreams:
icecream@amul.com
Chocolates: Nutramul:
chocolates@amul.com nutramul@amul.com
Pizza: Paneer:
pizza@amul.com paneer@amul.com
Mastidahi:
Mastidahi@amul.com
They use the online feedback form for different product so that they may
get regular Feedback from the customer and in this way they improve in
their product and try to further connected with customer .
ACHIEVEMENT:
Amul :Asia‟s largest dairy co-operative was created way back in 1946 to
make the milk producer self-reliant and conduct milk- business with pride.
Amul has always been the trend setter in bringing and adapting the most
modern technology to door steps to rural farmers.
Amul created history in following areas:
d)The first and only organization in world to get ISO 9000 standard for its
farmers co-operatives.
e)First to produce milk from powder from surplus milk.
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.
During the last eight years, our Member Unions are implementing Internal
Consultant Development Programme for developing self leadership among
member producers and thereby enabling them to manage their dairy
business efficiently, leading to their overall development. During the year,
Member Unions conducted workshops on Vision Mission Strategy for primary
milk producer members and Village Dairy Cooperatives. Facilitated by
specially trained consultants, 894 Village Dairy Cooperative Societies have
conducted their Vision Mission Strategy Workshops, prepared their Mission
Statements and Business Plans for the next five years. Till today total 5,322
village dairy societies have prepared their five year Business plans. The
programme has prompted milk producers to initiate activities at villages
such as Clean Milk Production, Water Management, Planned Animal
Breeding, Animal Feed management, Improved Member Services
Management, Information Technology, Integration and Networking, which
has very far-reaching and long-term effects on the milk business.
In order to strengthen the knowledge and skill base of young girls and
women of the villages about milk production management and to motivate
them to implement scientific milch animal breeding, feeding and
management methods for their animals, the Federation, with technical
collaboration and resources of the Anand Agriculture University, has initiated
an animal husbandry programme for women resource persons of the
Member Unions. During the year, 464 women resource persons have been
trained under this programme.
With a mission of planting one tree per member, our Member Unions
celebrated the 60th year of Independence on 15th August, 2007 in a unique
way. Our 18 lakh members have planted one sapling each across 19 districts
of Gujarat and demonstrated their commitment towards preserving and
contributing to the improvement of the environment.
Amul in abroad:
Amul is going places. Literally. After having established its presence in China,
Mauritius and Hong Kong, Gujarat Cooperative Milk Marketing Federation
(GCMMF), India‟s largest milk cooperative, is waiting to flood the Japanese
market.
Then, GCMMF is also looking at Sri Lanka as one of its next export
destinations. Amul products are already available on shelves across several
countries, including the US, China, Australia, West Asian countries and
Africa.
GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include
pouch milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and
buttermilk. It 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
11 years.
Amul is available today in over 40 countries of the world. They are exporting
a wide variety of products. The major markets are the US, West Indies,
countries in Africa, the Gulf region, and our Saarc neighbours, Singapore,
Philippines, Thailand, Japan and China. They have demonstrated that if a
level playing field is granted, Indian dairy products are successful in the
global market. Growth in consumer pack exports has been creditable and
they have consolidated their exports.
The major export products are:
Consumer Packs
Pricing strategy
At the time Amul was formed, consumers had limited purchasing power, and
modest consumption levels of milk and other dairy products. Thus Amul
adopted a low-cost price strategy to make its products affordable and
attractive to consumers by guaranteeing them value for money.
PLANTS
nutramul, Amul Ganthia and Amul lite. Third plant is at Kanjari, which
produces cattelfeed.
Fourth
plant is at Khatraj, which engaged in producing cheese.
Today, twelve dairies are producing different products under the brand
name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world,
which is matter of proud for Gujarat and whole India.
DISTRIBUTION CHANNEL
Amul products are available in over 500,000 PLUS retail outlets across India
through its network of over 3,500 distributors. There are 47 depots with dry
and cold warehouses to buffer inventory of the entire range of products.
GCMMF transacts on an advance demand draft basis from its wholesale
dealers instead of the cheque system adopted by other major FMCG
companies. This practice is consistent with GCMMF's philosophy of
maintaining cash transactions throughout the supply chain and it also
minimizes dumping.
Wholesale dealers carry inventory that is just adequate to take care of the
transit time from the branch warehouse to their premises. This just-in-time
inventory strategy improves dealers' return on investment (ROI). All GCMMF
branches engage in route scheduling and have dedicated vehicle operations
Establishing best practices
In developing these practices, the federation and the unions have adapted
successful models from around the world. It could be the implementation of
small group activities or quality circles at the federation. Or a TQM program
at the unions. Or housekeeping and good accounting practices at the village
society level.
More important, the network has been able to regularly roll out improvement
programs across to a large number of members and the implementation rate
is consistently high.
For example, every Friday, without fail, between 10.00 a.m. and 11.00 a.m.,
all employees of GCMMF meet at the closest office, be it a department or a
branch or a depot to discuss their various quality concerns.
Each meeting has its pre-set format in terms of Purpose, Agenda and Limit
(PAL) with a process check at the end to record how the meeting was
conducted. Similar processes are in place at the village societies, the unions
and even at the wholesaler and C&F agent levels as well.
Kaizens at the unions have helped improve the quality of milk in terms of
acidity and sour milk. (Undertaken by multi-disciplined teams, Kaizens are
highly focussed projects, reliant on a structured approach based on data
gathering and analysis.) For example, Sabar Union's records show a
reduction from 2.0% to 0.5% in the amount of sour milk/curd received at the
union.
The most impressive aspect of this large-scale roll out is that improvement
processes are turning the village societies into individual improvement
centers
Technology and e-initiatives
COMPANY IN JAIPUR
As AMUL products are old and is available at almost every place in INDIA
specially Butter but
Nov 27 2007 Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF)
has launched Amul Fresh Milk in Jaipur. Which was another add up in the
path of white revolution. They touched several area of Jaipur though Saras
was the leader of the market still this company never let down . They are
going to introduce curd which was a big failure when they earliar introduced
it in pouch . so ultimately they stopped the supply . Now in the summer curd
is hot item to sell off and people are asking for the stuff ,so now they will
further introduce it. Amul in Jaipur is at nascent stage so we can say that
particularly milk and curd of AMUL is under cash stage of BCG MATRIX
1] Amul curd
It is under nascent stage so it will be in question mark stage which says
that the product is at the introduction stage of product life cycle .
2] Amul milk
It is under growth stage but with low market share so it will come under
question mark though it is now two years of its launch but its taking
time to come out of this stage because of competitor Saras which is giving a
good fight .
[CHOOSE RIGHT
REPRESENTATIVE OF COUNTRY BY VOTING ]
Amul – today
From conventional milk products like paneer and cheese, the brand has
evolved over over time and now caters to the wellness market as well with
its sugar-free and probiotic milk products. According to Vyas, the company is
continuously introducing innovative products that meet the aspirational
needs of the consumers. Amul has introduced a range of milk-based
products such as flavoured milk, buttermilk, yoghurt, probiotic products and
energy drinks.
Although if you analyze the household expenditure of Indian homes, the bulk
of the money is spent on milk and products like butter, ghee,curd, cheese,
and a very small amount on items like ice creams and pizzas. However, it is
important for us to register our presence in the entire food basket of the
Indian household where and dairy product is involved. Our recent forays into
pizzas, paranthas is through our Amul parlours, which are one-stop shops for
all our products. We have plans for creating a large chain of such outlets to
be managed mainly by franchisees throughout the country. Currently, we
have 1,500 parlours and plan to open 10,000 of them by 2010.
India is the largest milk producer in the world and GMCCF is the largest food
products marketing organization in India. We are confident that Amul would
emerge as the world's largest food products organization in the not too
distant future. It is now present in following countries.
INTRODUCTION OF
PROJECT
– Phillip Kotler.
I am doing my project on the survey of curd before its launch .In this project
I will do market research rather a customer survey through questionnaire
.Before making questionnaire I searched for factors which may effect the
launch of curd .curd is a item which is readily perished so people who use it
is in the habbit of using it fast more over how much they give value to other
brands in case of different attributes like texture,whiteness,taste,packaging ,
flavor etc. So by putting these things into the mind I proposed a
questionnaire and ultimately I filled those questionnaire by 15 respondents
till now and on the basis of them I will analyze a interim report that which
way will the questionnaire further go .
After analyzing them I will try to proposed a way that how much demand
will be their and which competitor have greater value in which attributes and
AMUL should follow that way to capture the market .
In these questionnaire I mainly covered areas of Jaipur like wall city ,Shyam
nagar ,malvia nagar ,vidyadhar nagar,vivek nagar,vaishali, Mahesh nagar,
Raja park , Mansarovar .which is covering almost all the sides like north
,south,east and west of jaipur .A map view is there in annexure6
In this questionnaire I have taken occupation of the persons so that in
further analysis I can check out for relevancy of curd consumption and
occupation and many more .
PROPOSED METHODOLOGY
Marketing starts with identifying customer needs and ends with satisfying
them through a coordinated set of activities that also allows a firm to
achieve its own goals. When launching a product one needs access to quick
and insightful consumer based data to give the foray a greater chance of
success. Failure to grasp the specific needs of a new market can be costly,
both financially and in terms of damaged corporate image. In a volatile,
ever-changing market, mistakes can mean wasted costs in advertising,
distribution and production expenses, as well as damage to brand name and
equity.
DATA COLLECTION
Dicthomus
DICTHOMUS:
These are the questions which are Boolean in nature. These answers are
straightforward and respondents have to answer them in a straight way.
That means the answer can only be either ‘Yes” or ‘No’.
SAMPLING METHODS
Sample design is a definite plan of obtaining some items from the whole
population. The sample design used in this project is two state sampling i.e.
cluster sampling and convenience sampling.
CLUSTER SAMPLING
Here the whole area is divided into some geographical area and a definite
number of consumers were to be surveyed. Areas divided are shown in
annexture 3.
CONVINIENCE SAMPLING
Jaipur had a population of around 3,324,219 in the year 2007. I will take it in
round figure of 40 lakhs in 2009.then I will do the survey research further. In
this whole population 53% male and 47% is female as per the census report
.
3] Sample size :
200 respondents
LIMITATION OF STUDY
• Respondent may not take it seriously and the questionnaire will remain
half fill
• Respondents may become bias and may not give righteous
information
• Sample chosen may not represent population properly
• People may not give time to fill the questionnaire and may think it as a
waste
• In this researcher has to fully depends on respondents ,self report
• Respondent may sometime give socially desirable answers which may
not be able to clarify his/her true desire
• Sometimes there is gap between what people says and what they
actually do.
[Graph:1]
under this question out of 200 respondent 137 goes for milk booth where as
21 goes for general store . 30 goes for milk vendors and another 12 goes for
self or purchase from mandi.
[Graph:2]
Out of 200 respondents all says that they purchase milk daily
[Graph:3]
According to [Graph:3] one can conclude that in Jaipur all most all people
daily purchase milk
4] IF YES ,THEN WHAT IS YOUR DAILY PURCHASE ?
a) less than 1 ltr b) 1 to 2 ltr
c) 2 to 4 ltr d) more than 4 ltr
We can see that out of 200 respondent 63 purchase less than 1 ltr where as
82 purchase between 1 to 2 ltr , 47 purchase between 2 to 4 ltr and 8
respondent purchase more than 4 ltrs
[Graph:4]
From the given data we can say from [Graph:4] that maximum person in the
Jaipurpurchase at least half liter milk daily so if we want to calculate the total
monthly sales we can say that it can be find out by putting percentage like
in 200 respondent 63 are purchasing half liter and 82 are purchasing 1 to 2
ltr where as 47 are purchasing 2 to 4 ltr and 8 are purchasing more than 4
ltrs.
[Graph :5]
the above [table:5] one can draw a conclusion that consumers in Jaipur have
a consumption pattern in which they drink milk at most then it is used for
tea and coffee and then for rest.
Out of 200 respondent 7 says no that they don’t use curd where as rest say
yes .
[Graph:6]
out of 200 respondent 147 says outside where as 7 says that they don’t use
curd and rest 46 says home made .
[Graph:7]
[Graph:8]
The [Graph:8] shows that out of 147 respondents who selected outside curd
the 123 takes packetedand 24 takes loose curd in Jaipur .
9] IF YOU USE PACKED CURD THEN WHICH ONE OF THE
FOLLOWING ?
a) Nestle b) Mother Dairy
c) lotus d) Saras
out of 200 respondent 110 opted for Saras, 5 opted for nestle and 7 opted
for mother dairy and in rest 1 respondents opted for lotus ,where as rest 7
respondent don’t consume curd .
[Graph:9]
Out of 123 respondents ,24 respondents are daily purchasing curd where as
31 of them are purchasing it twice a week and maximum people purchasing
it thrice a week ie; 48 .
And 20 respondents purchasing it once in one or two week .
[Graph:10]
From the above [Graph:10] response we can say that maximum of the
people who is opting for packed curd go for thrice and twice a week .
Out of 146 respondents 71 are going for 200 ml curd pack 33 optedfor
400ml and rest 42 opted for 500 ml plus curd.
[Graph:11]
MORE FACTS
A] Out of 146 there are 34 students in outside curd under which 61% student
opted for 200 ml
Another 14% student opted for 500 ml where as rest 25% opted for 400 ml .
B] Now out of 146 there are 49 service persons in outside curd under which
42% opted for 200ml curd ,another 32% opted for 400ml curd and rest 26%
goes for 500 ml curd.
C] out of 146 there are 63 business man ,25% of them goes with 500ml
,34% opted for 200 ml and rest 41% goes for 400ml curd.
So to get actual picture of the scene I thought of using chi square test. You
can use χ2 tests to determine whether hypothesized results are verified by
an experiment.
student 27 8 9 44
service 28 16 11 55
person
business man 8 4 13 25
RT 63 28 33 124
N = NUMBER OF SAMPLES
FORMULA TO CALCULATE
FE is mentioned below
2
CHI SQUARE χ2SUMMATION OF [ (FO-FE) /FE]
Just to over come any problem in the equation due to positive and negative
sign the square of the difference between actual frequency and expected
frequency is taken into consideration .
FO- FE S=(FO-FE)*(FO-FE) A= S/FE
4.64 21.52 0.96
-1.94 3.76 0.37
-2.71 7.34 0.62
0.06 0.003 0.0001
3.58 12.82 1.03
-3.64 13.25 0.9
-4.7 22.09 1.73
-1.65 2.72 0.48
6.35 40.32 6.06
CALCULATED χ2 12.1501
χ2 calculated = 12.15
• Now with the help of α and df we will look into chi square table and we
will find the tabulated χ2 value which will be 9.488
χ2 tabulated 9.488
After getting both χ2 tabulated and χ2 calculated we will have two options
Cal
Ifχ≤9.48,dontrejcoH
2
2
2 χ tabulated lies under calculated Cal
From the given value of χ2 tabulated 9.488 and χ2calculated 12.51 we
come to conclusion that χ2 tabulated lies under χ2 calculated it is shown in
the figure below .where red denote 0.05 significance level .
student 27 8 9
service person 28 16 11
business man 8 4 13
RT 63 28 33
22.35 9.94 11.71
27.94 12.42 14.64
12.7 5.65 6.65
FO- FE S=(FO-FE)*(FO-FE) A= S/FE
4.64 21.52 0.96
-1.94 3.76 0.37
-2.71 7.34 0.62
0.06 0.003 0.0001
3.58 12.82 1.03
-3.64 13.25 0.9
-4.7 22.09 1.73
-1.65 2.72 0.48
6.35 40.32 6.06
12.1501
12] PLEASE PUT YOUR PREFERENCE IN PECENTAGE BELOW OF
CURD:
SARAS LOTUS NESTLE MOTHER
BRAND
DAIRY
ATTRIBU
TEXTURE
FLAVOUR
WHITENESS
PACKING
TASTE
THICKNESS
According to above question Saras curd gets maximum marks where as lotus
is the minimum. And under packed curd nestle and mother dairy is having
little say in 200 respondent
[Graph:12]
From the above [Graph:12] one can conclude that which brand is best in
curd regarding its attribute in Jaipur and one should look for that touches
which make that brand best regarding all attribute.
Out of 200 respondents 181 says yes and rest 19 says no under this 7
persons are included which donot consume curd .
[Graph:13]
In this [Graph: 14] out of 200 respondents 197 says yes and 10% says no ,
that means maximum people are not brand loyal ,they may shift easily if
they get good stuff more over most of the people who is opting for
homemade curd says no to Amul curd or any other curd.
[Graph: 14]
1] Branded curd
2] loose curd
3] Homemade curd
2: loose curd : loose curd market are more in the area like wall city
,Mahesh nagar backward areas. They sell curd around 30
liter .I have surveyed 15 shops where loose curd is sold out
in wall city in open dairy and sweet shops in huge way.
Hence total size of curd market will be “branded curd + loose curd +
homemade curd “ ie; [1+2+3] 34500+30000+20000
= 84000 liter per day.
If I look up to demand estimation of AMUL curd I can say that from the
branded curd market the demand of Saras booth curd and other retail curd
will be the area for Amul curd then later it can take over other areas of curd
market .
CONCEPTS
AMUL SHOPPEE CONCEPT: Under this concept of AMUL the
retailer or the whole seller who is in business with AMUL is converted in an
exclusive shoppee for company’s product i.e. milk specifically. For which the
proprietor has to make a security deposit with GCMMF Ltd. and has to meet
some basic requirements after fulfillment of which the shop is declared as an
exclusive AMUL SHOPPEE.
The ownership of the box(CABINET) is transferred to the party after one year
from the conversion of the shop into AMUL SHOPPEE. Also company
promises to change the box if it results in breakage or damaged by itself.
themorning.
2) The shop should give at
least a business of 10 crates
Rs.2.40 is given in parts i.e. Rs.1.20 out of this would be given at every
month and the remaining Rs.1.20 would be given at the yearend basis. For
its tabulation the company provides with a MONTHLY SALES CARDin which
the quantity is recorded and the payment is made as and when required.
This means the company provides with 20p/liter extra margin with
65p/liter fixed margin. And of 20p , 10p is given at month end and left 10p
is given away at the year end.
This task was given to us as there was no ADA in wall city as such and
the distribution of AMUL was nil in this area.
✔ The ADA.
✔ The Point ADA.
The ADA: ADA can be considered as big distributors who generally take
cares of the whole area to which it is assigned. It has the full knowledge of
all the retailers presently working in that area. The ADA manages the supply
of the product of the company to retailers in order to reduce the obstacles
and to carry on with sales with any halts. When a new ADA is assigned, he
surveys the whole area with the area executive of the company in that area.
The retailers in that area can give orders to ADA and the ADA passes
the orders to company and the demanded quantity of product is delivered to
the ADA and the ADA further distributes it to the retailers and collects the
payment.
The Point ADA: Point ADA can be said as the level down to the ADA.
Point ADA is assigned in the area if the area is too big for the ADA to cover
so there can be many Point ADA under the ADA.
The Point ADA takes the orders from the retailers and further passes
on to the ADA or directly to the company what so ever be the need.
The Point ADA can be said as the small distributor for the particular
area.
The Point ADA looks after only 2-4 streets in a particular area and
reports to the company and rest of the area is covered by other Point ADA or
the ADA itself.
ACTIVITY DONE
Under this head I have done basically three activities which was given by
Company to do in the different areas of Jaipur .I have being given an area of
Raja park and Mahesh nagarwhere I have to know the problems of milk
shopkeepers ,make some new milk retailer and to sell existing Amul milk
shop – schemes, under which they will be converted into AMUL SHOPEE .
Converting Amul retailer to Amul Shopee :
This a scheme launch by the company to capture the market by giving profit
to the retailers.under this scheme there are two options :
1] 1100/- rs scheme :
2] 3000/- rs scheme
These scheme is used to increase the commission of milk retailers. Any milk
retailer generally get 7.80 paisa per carat [ 1 carat = 12 liter].After taking
this scheme retailer gets 2.40 paisa increment over normal profit of 7.80
paisa and ultimately total profit rises to 10.20 paisa. This is the common
feature of this scheme in both and for that they have to deposit 1100/- rs or
3000/- rs which is refundable too.
The only difference between 1100/- and 3000/- scheme is that in 3000/-
scheme retailer will get an ironbox worth rupees 2200/- for putting carat
capacity upto 10 carats.
In both area we have visited almost 150 and more shops and converted 23
shopees over all and I also turned lot of retailer shop into milk retailer of
amul. sample of amul shopee form and monthly sales card is available in
annexure 2and 3 .
Search for Area Distributer
This was our second activity under which we have to find out area distributer
who will sell at least 20 to 25 carats of his own and can sell 10 to 15 carats
by giving it to retailers. In this work I have to search the area called Wall city
of Jaipur .Area under this was fully backward and old style . there is a sample
of area delivery agent form in Annexure 4
Under area distributer person is getting more profit than retailer if he sell by
his own .The distributer will get 7.80 paisa and 5.16 paisa extra on per
carat sell that means approximately 13 rs per carat. Still people are not
ready to take up this Job because of three reasons :
2] Saras have a greater share of market and other companies like gauras,
prabhu ji ,lotus are there to further capture maximum market share and
without proper demand no retailer will take a risk of becoming dealer of any
third company except Saras.
3] biasness about company Amul in the mind of retailers that earliar it was
launched in this area but didn’t get success.
• Jaipur is full of brand switchers in the case of curd ,so Amul got an
opportunity to capture the market of curd from Sarasa major player of
the curd and milk market. By providing best of the thing required by
people in the curd market
• There is two sector of people one who don’t use curd and second is
people who prefer homemade curd .As they are good in numbers .If
one want to make them customer one has to go for value addition in
the curd by two ways :
1 - This can be done by providing extra benefits of house hold with the
curd or vice a versa .
2 – One can also provide different flavours in the curd which will lure
people of those sectors also to consume ,not as a curd but as ice
cream sort of thing .
• Student or service person from outside are one sector which uses
packet curd maximum, where as people living here and having their
home here itself prefer for homemade curd .
CONCLUSION
Learnt how to sell ,how things work in Fast moving Consumer goods .having
perishable nature of these product one need a excellent distribution network
and carefully select market because these product if transferred to far area
then cost attached to the product will make it un competitive .
Milk marketing is full game of Branding .if branding of a product is done then
the following things has to be taken into consideration like availability of
product ,continuous change in the product as required by consumers and
third is price of the product according to satisfaction level of the people and
last but not the least is the visibility of product and a promotional strategy
to hit, people’s mind.
Ultimately I must say that I am privileged to work in the company like Amul
and get such a real time exposure of FMCG company .
ANNEXTURE
ANNEXURE 1
QUESTIONNAIRE
DEMOGRAPHIC
NAME
:________________________________________________________________________
AGE :
_________________________________________________________________________
AREA : _____________________________________________________________________
MOBILE /PH NO.
:_______________________________________________________________
OCCUPATION:______________________________________________________________
___
TEXTURE
FLAVOUR
WHITENESS
PACKING
TASTE
THICKNESS
13] IF YOUR PREFERED BRAND IS NOT AVAILABLE, WILL YOU
PURCHASE OTHER BRANDS
YES
NO
14] IF YES THEN WOULD YOU LIKE TO PURCHASE AMUL CURD ?
YES
NO
PRODUCT DETAILER
Powder Milk
Amul Spray Infant Milk Amul Instant Full
Food Cream Milk Powder
Still, Mother's Milk is Best for A dairy in your home
your baby
Amul Calci+
Cheese
Amul Pasteurised Amul Cheese Spreads
Processed Cheese Tasty Cheese Spreads in 3 great
100% Vegetarian Cheese made flavours..
from microbial rennet
Amul Emmental Cheese Amul Pizza Mozzarella
The Great Swiss Cheese from Cheese
Amul, has a sweet-dry flavour and Pizza cheese...makes great tasting
hazelnut aroma pizzas!
Gouda Cheese
For Cooking
Amul / Sagar Pure Ghee Cooking Butter
Made from fresh cream. Has
typical rich aroma and granular
texture. An ethnic product made
by dairies with decades of
experience.
Desserts
Amul Ice Creams Amul Shrikhand
Premium Ice Cream made in A delicious treat, anytime.
various varieties and flavours with
dry fruits and nuts.
Health Drink
Nutramul Amul Shakti Health
Malted Milk Food Food Drink
made from malt Available in Kesar-
extract has the Almond and
highest protein Chocolate flavours
content among all
the brown beverage
powders sold in
India.