A PROJECT RESEARCH REPORT ON Promotional Scheme of Amul Ice Cream

Submitted in partial fulfillment of the requiments for the award of the degree of

Master of Business Administratipn

Submitted to:

Faculty guide: Seshanvita Das GIMT, Greater Noida

Submitted By: Dharmendra kumar

ROLL: 0909470031 MBA 4sem

ACKNOWLEDGEMENT
This study even internal part of our MBA program and to do this project in a short period was a heavy task. Intention, dedication, concentration and hard work are very much essential to complete any task. But still it needs lot of support, guidance assistance, co-operation of people to make it successful. I bear to imprint of my people who have given me their precious ideas and times to enable me to complete the research and the project report. I want to thank them for their continuous support at my research and writing efforts. First of all I would like to thank Dr.shruti Gaur, faculty member of LIMT Gr. Noida, for giving me an opportunity to write my Dissertation report under his guidance and supervision and for all the help and support which led me complete the project. At last but not least I also thanks to the entire customer interviewed for their kind co-operation. With Regards Surendra Pal Singh

DECLARATION
I, Dharmendra kumar vhereby declares that the project work entitled Promotional scheme of Amul Ice cream is my project. I have not copied this project. I have worked hard for this project. Dr. Shruti Gaur was my project guide. Her encouragement, indulgency, and affection made this project a reality. I have proudly got her guidance in designing the architecture underlying the system.
Signature of the Project Developer: Surendra Pal Singh. Name: Surendra Pal Singh. Course: Master of Business Administration. Date: 16/Dec/2010.

Signature of the Center Director:________________________________________________ Name of the Learning Institution: - GIMT,Institute

of management

& technology- II Greater noida 201306

Abstract:
Amul is the largest co-operative movement in India with 2.2 million milk producers organized in 10,552 co-operative societies in 20032004. The country's largest food company, Amul, is the market leader in butter, whole milk, cheese, ice cream, dairy whitener, condensed milk, saturated fats and long life milk. Amul follows a unique business model, which aims at providing 'value for money' products to its consumers, while protecting the interests of the milk-producing farmers who are its suppliers as well as its owners. Despite being a farmers' co-operative, Amul has given multinationals a run for their money. In butter, cheese and saturated fats, Amul has remained the undisputed market leader since its inception in 1955, by offering quality products at competitive prices. In other categories, Amul has nullified its late mover disadvantage through aggressive pricing, better quality, innovative promotion, and superior distribution
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TABLE OF CONTENTS
List of Table List of Figure Certificate Acknowledgement Declaration Abstract CHAPTER Introduction Company Profile Distribution network Executive Summary Industry Scenario Introduction of problem About the study Rationale and Scope Objective of the project Review OF Literature Marketing Mix 4 Ps SWOT Analysis Research Methodology PAGE NO. ----------------------------------------6 -------------------------------- 9 --------------------------------- 15 ----------------------------------------41 ---------------------------------47 ----------------------------------48 -----------------------------------------------------------------50 -----------------------------------52 ----------------------------------54 -----------------------------------58 ------------------------------------60 ------------------------------------66
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Project Activity Sequence Data Analysis & Finding One way ANOVA Finding Recommendations Conclusions Bibliography Annexure Questionnaire

-------------------------------------71 ----------------------------------------- 74 -----------------------------------89 -----------------------------------92 --------------------------------------------95 ----------------------------------------------100

------------------------------------------------------ 102 ----------------------------------------------103

LIST OF TABLE & GRAPHS

Analysis of non existing outlet Mode of payment for deep freezer Relationship on the basis of retailer Analysis of Existing Amul outlet Mode of purchase Pack of ice cream sold most

82 83 84 85 87 88

INTRODUCTION

Gujarat Cooperative Milk Marketing Federation (GCMMF), one of India's greatest success stories with its Amul brand, is now aiming at a 17-per cent growth in sales to Rs 3,200 crores this fiscal against sales of Rs 2,746 crores in the previous year ended 31 March 2003. The federation is expecting each of its products to contribute higher sales this year as new products are being added to each product line. The big hope is not surprisingly the Amul brand of ice creams, which is expected to contribute Rs 250 crores to the turnover, up from Rs 150 crores last year. Last year there was a good growth in ice cream, cheese, butter and ghee. The company is launching new products in almost every line that are in, with specific stress on ice creams. For its ice cream and milk business, GCMMF has begun investing in increasing its milk capacity. It recently firmed up plans to invest Rs 100-120 crore to expand this from 1.1 million liters a day to 1.8 million litres a day at

its Gandhinagar factory. The investment will take place over the next two years. The cooperative is also planning to expand its production facilities beyond Gujarat to service other regions in India. GCMMF recently bought an icecream manufacturing unit in Nagpur and is installing a dairy unit alongside. Through this unit, the organisation has also extended its milk supply to over 10 cities spread over Rajasthan, Madhya Pradesh and Maharashtra. Amul is now focusing on its supply system. Efforts are on to ensure greater availability of Amul ice-cream at pushcarts and small outlets. The company feels that availability is the most important factor in ice cream sales. Thus, Amul ice-cream can be found in 'just around the corner shops,' local STD booths, local kirana shops, chemists and bakers, who stock the ice-cream in deep freezers. The idea is to ensure visibility and availability, which more often than not ensures a sale as ice-cream consumed out of home is most often an impulsive purchase. Amul expects to clock sales of 34 million litres during the current year and the accent will be on offering 'value for money' products.

The new ice-creams which are launched by Amul this year includes a megabite almond cone (the largest volume cone in the country), an orange icecream (Santra Mantra), a Bouncer ice-cream with nuts and essential proteins, vitamins and minerals for the growing children, a cheese ice-cream and a sundae in cone for kids in different variants. Amul ice cream is positioned as 'real ice-cream' made from real milk cream, while HLL's Kwality Walls is made from vegetable oil and its items are dubbed as Frozen Deserts. Last year, Amul ice cream made its entry into New Delhi, India's biggest ice-cream market, where its anti-compete agreement with Mother Dairy has expired. Amul has been sourcing its entire ice-cream requirement for the northern market (including Delhi) from its own Gandhinagar plan

INDUSTRIES OVERVIEW

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview Gujarat Cooperative Milk Marketing Federation (GCMMF) is a Indias largest food product marketing organization. It is a state level apex body of milk cooperatives in Gujarat, which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products, which are good value for money.

Members:

12-district cooperative milk producers Union 2.23 million 10,852 6.7 million litres per day 1.67 billion litres

No. of Producer Members No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 2001-02):

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Milk collection (Daily Average 2001- 02): Milk Drying Capacity: Cattlefeed manufacturing Capacity:

4.59 million litres

510 metric Tons per day 1450 Mts per day

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Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03

Rs. (million) 11140 13790 15540 18840 22192 22185 22588 23365 27475

US$ (million) 355 400 450 455 493 493 500 500 575

AMUL means "priceless" in Sanskrit. A quality control expert in Anand suggested the brand name Amul, from the Sanskrit Amoolya, Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 25 .)

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billion in 2002). Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of indigenous technology. Of the marketing savvy of a farmers' organization. And of a proven model for dairy development.

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50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it. All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses.

Dairy giant Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) recorded 22 per cent growth in turnover during the first half of the current financial year with milk products sales amounting to Rs 1,000 crore. GCMMF sold 10.5 crore litres of milk in pouches during April to September 1998 under its well-known brand `Amul'.

"GCMMF's financial performance during this period has been even more attractive with a growth of 25 per cent. However, this won't be reflected in our balance sheet. The multinationals would have shown it as glittering profit, but we are working on our mandate of returning any surplus back to grass-root village co-operative milk society members by periodic price differentials for their production.

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With 12 processing units (unions), each located at the district-level, GCMMF today has a membership of 20 lakh farmers, who belong to 10,000 village dairy co-operative societies. GCMMF, the largest producer of dairy products in Asia, has over 26 products ranging from `Amul Butter', `Amul Spray', `Amul Lite', `Amul Cheese' to `Amul Mithaimate', `Amul Mithaee Gulabjamun' and Amul Frozen Pizza. The co-operative is launching wide range of cheese including the exotic Emmental from the Swiss Alps, soft Mozzarella from Italy and slices of processed Cheddar cheese. GCMMF has also come out with `Amul cheese powder' used in soups, salads, dressings and hoard of other fast foods. The federation has been able to capture 50 per cent of the ice-cream market in the state in a short span of one year. `Amul Ice creams' are also now available in 12 states and two union territories and enjoy 35 per cent to 40 per cent market share. The `Amul Ice-cream' strategy bordered on its punch line, `real milk, real ice-cream' `Amul Ice creams' were smoother and creamier than its competitors as fat used was pure milk, which was more expensive and not vegetable fat.
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GCMMF, which has 45 sales offices, plans to make these products "available all over the country". The federation has a distribution network comprising more than 2,700 wholesale dealers and over five lakh retail outlets. DISTRIBUTION NETWORK

Amul

Baroda Dairy

C&F

Agencies

Sub Distributor

Retailers

Retailers

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Amul manufactures its ice cream in Baroda dairy plant. Its supplies raw material like milk from different places of Gujarat to Baroda dairy. When ice cream is fully prepared and packed than its transferred to different states via air-conditioned trucks. The C&F agents store it in big deep freezer rooms. From C&F the ice cream is delivered to different distributors. And from distributes the ice cream is delivered to different retailers and sub retailers. And finally the consumers purchased from the retailers.

Amul would provide the design and specifications for renovation of the outlet. It will provide consultancy if required and will also inspect the work of the contractor. Amul will help in assessing the business potential of the shop and will help in making the business plan. Amul will guide you in purchase of various equipment. It will also help you in choosing between the various sizes and types available based on its experience of the business.

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Amul will provide the design and/or supplier of the uniform for the parlour boys. Amul will provide advice and consultancy for inauguration and operation of your shop, as well as for attracting customers and increasing sales. Amul will provide signages and glowsign to the outlet at its own cost. The design will be standard and such as to identify your outlet as a "a direct outlet of the company", which stores and sells the entire range of Amul products. Amul shall give target based additional margin on its products for the first year of operation upto a maximum of 1% on dairy products and 2% on icecream. Amul shall help in the inauguration by providing free ice-cream worth Rs. 1000. The other expenses of the inauguration shall be borne by you. Amul shall give 1000 pamphlets specially printed for your shop for newspaper insertion in the neighborhood to generate awareness about your outlet. Amul shall design and implement in-shop promotions based on requirement. Amul shall keep you in its list of preference for all promotions schemes, launch of new products, etc.

List of Products Marketed:

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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

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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

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 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

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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

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 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

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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

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Amul - Evolution of Marketing Strategy

Product Development

Amul's product development was driven both by the spirit of the cooperative system and profitability. Being a cattle farmers' cooperative, Amul was committed to buying all the milk offered by the farmer. The perishable nature of milk made it imperative for Amul to process the surplus milk and enter new product categories as production increased... Butter Launched in 1955, butter was one of the first milk products offered by Amul. It was also the first time Amul successfully challenged the hegemony of an established brand. Amul's earliest competitor, Polson had been the monopoly milk supplier to the Bombay Milk Scheme. Amul displaced Polson to emerge as the undisputed leader in the butter market...

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Cheese GCMMF launched processed cheese in 1959 followed by cheese powder in the early 1970s. In the 1980s the popularity of cheese increased... Ghee, Skimmed milk powder and Baby food Amul launched ghee (clarified butter) and skimmed milk powder in 1955. Amul Ghee was an instant success... Milk and UHT Milk Amul was the market leader in the Gujarat whole milk market with a 90% market share in 2002. Apart from supplying milk to parts of Maharashtra and Rajasthan, GCMMF also sold milk to the NDDB owned Mother Dairy in Delhi...

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The idea is to ensure visibility and availability, which more often than not ensures a sale as ice-cream consumed out of home is most often an impulsive purchase. Amul expects to clock sales of 34 million litres during the current year and the accent will be on offering 'value for money' products. The new ice-creams which are launched by Amul this year includes a megabite almond cone (the largest volume cone in the country), an orange icecream (Santra Mantra), a Bouncer ice-cream with nuts and essential proteins, vitamins and minerals for the growing children, a cheese ice-cream and a sundae in cone for kids in different variants. .

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Amul ice cream is positioned as 'real ice-cream' made from real milk cream, while HLL's Kwality Walls is made from vegetable oil and its items are dubbed as Frozen Deserts

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Pricing Amul's philosophy had all along been to deliver value for money to its customers. Despite being priced economically, Amul maintained its product quality...

Distribution
GCMMF's formidable distribution network comprised 300 stock keeping units, 46 sales offices, 3,000 distributors, 100,000 retailers with refrigerators, an 18,000-strong cold chain, and 500,000 non-refrigerated retail outlets...

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Advertising and Sales Promotion Over the years, Amul's advertising philosophy had been "to be simple, fresh and innovative". The clean, emotion-based ads refrained from using hi-tech special effects, and aimed at maintaining the perfect balance between the traditional and the modern... Looking Ahead The liberalization of the dairy industry in 1991 had seen a number of multinational players like Britannia, Le Bon, Dabon and Hi-Life enter the sector.
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Analysts wondered whether a co-operative with limited financial means could stand up to the might of these MNCs, and if its low pricing strategy would continue to stay relevant. MNCs like Pizza Hut, Domino's, Hindustan Lever Limited and Cadbury had also become competitors. Amul had proved its detractors wrong and firmed up ambitious growth plans..

AMUL PRODUCTS

. AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 52.55 billion in 2007-08). Today Amul is a symbol of many things. Of highquality products sold at reasonable prices. Of the genesis of a vast cooperative network. Of the triumph of indigenous technology. Of the marketing savvy of a farmers' organisation. And of a proven model for dairy development.

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Bread Spreads Amul Butter Utterly Butterly Delicious Delicious Table Margarine The Delicious way to eat healthy Milk Drinks Amul Kool Millk Shaake

Amul Lite Low fat, low Cholesterol Bread Spread

Amul Kool

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Amul Kool Cafe

Kool Koko A delight to Chocolate Lovers. Delicious Chocolate taste Amul Kool Chocolate Milk

Nutramul Energy Drink A drink for Kids provides energy to suit the needs of growing Kids Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack

Amul Masti Spiced Buttermilk Amul introduces the Best Thirst Quenching Drink

Amul Kool Thandai

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Powder Milk Amul Spray Infant Milk Food Still, Mother's Milk is Best for your baby Sagar Skimmed Milk Powder Which is especially useful for diet preparations or for use by people on low calorie and high protein diet. Amul Instant Full Cream Milk Powder A dairy in your home

Sagar Tea Coffee Whitener

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Amulya Dairy Whitener The Richest, Purest Dairy Whitener

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Fresh Milk Amul Fresh Milk This is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience. Amul Taaza Double Toned Milk Amul Gold Milk

Amul Lite Slim and Trim Milk

Amul Fresh Cream

Amul Shakti Toned Milk

Amul Calci+

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Cheese Amul Pasteurised Processed Cheese 100% Vegetarian Cheese made from microbial rennet Amul Emmental Cheese The Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma Gouda Cheese Amul Cheese Spreads Tasty Cheese Spreads in 3 great flavours..

Amul Pizza Mozzarella Cheese Pizza cheese...makes great tasting pizzas!

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For Cooking Amul / Sagar Pure Ghee Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience. Amul Malai Paneer Ready to cook paneer to make your favourite recipes! Mithai Mate Sweetened Condensed Milk Free flowing and smooth texture. White to creamy color with a pleasant taste.

Cooking Butter

Utterly Delicious Pizza

Masti Dahi

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Desserts Amul Ice Creams Premium Ice Cream made in various varieties and flavours with dry fruits and nuts. Amul Mithaee Gulab Jamuns Pure Khoya Gulab Jamums...best served piping hot. Amul Lassee Amul Shrikhand A delicious treat, anytime.

Amul Chocolates The perfect gift for someone you love.

Amul Basundi

Health Drink Nutramul Malted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in

Amul Shakti Health Food Drink Available in Kesar-Almond and Chocolate flavours.

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India. .

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INDUSTRY SCENARIO Total ice cream market in our country is of Rs.2000 crores in which branded ice cream market share is of Rs. 650 crores. Amul captures around 27% of total market share of organized sector. In 2003, Amul ice cream sales wet Rs.160 crore, almost three times the Rs.55 crore sales in 1998. The ice cream consumption in Delhi is 20% of the total consumption in our country. Out of which Amul captures around 30% of the Delhi market.

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INTRODUCTION TO THE PROBLEM Retailers are the one of the most important member of the distribution channel. They are the people who provides product to the final consumers. As they have the direct touch with the consumers, so they can play a vital role for influencing the buyers decisions. The company should try to

provide services to the retailers in such a way that they can satisfy with them.

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RATIONALE: The market share of Amul ice cream is increased by three times in just two years. The total consumption of Amul Ice- Cream in terms of rupees is Rs. 30,00,000 per month in one of the agencies of Amul in Delhi. The Amul Ice Cream captures around 30% of the total market share in Delhi. There is an immense opportunity for the company to extend their market share. The project will create the opportunity for the company to capture the market share.

SCOPE: The scope of study is to understand the problem faced by the company while increasing the retail outlets. With the help of this project GCMMF can increase their outlets by analyzing the feedback given by the interviewer (including existing and non existing outlets). GCMMF can also analyze the pricing strategy followed by the rivals. By this study company will get the information about current competitive position of the Amul ice cream in the market.

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PRIMARY OBJECTIVES: To increase the number of outlets of Amul ice cream.

SECONDARY OBJECTIVE: To analyze the retailers perception about Amul ice cream. To find out the competitive edge of the company over the competitors. To analyze the market size of ice cream. To study the consumer preference about different ice cream companies. To study distribution channel.

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Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Any organization selling to final consumers whether it is a manufacturer, wholesaler, or retailer- is doing retailing. It does not matter how the goods or services are sold or where they are sold. Consumers today can shop for goods and services in a wide variety of retail organizations. There are store retailers, non-store retailers, and retailers organization. Perhaps the bestknown type of retailers is the department store. Retail-store types pass through stages of growth and decline that can be described as the retail life cycle. A type emerges, enjoys a period of acceleration growth, reaches maturity, and then declines. Older retail forms took many years to reach maturity; newer reach maturity, whereas warehouse retail outlets reached maturity in 10 years. The most important retail-store types are:

Specialty store: Narrow product line with a deep assortment. Department store: Several product lines with each line operated as a separate department managed by specialist buyers.

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Supermarket: Relatively large, low-margin, high volume, self service operation designed to serve total needs for food, and household products.

The wheel-of-retailing hypothesis explains one reason that new store types emerge. Conventional retail stores typically increase their services and raise their prices to cover the costs. These higher costs provide an opportunity for new store forms to offer lower prices and less service. New store types meet widely different consumers preferences for service levels and specific services.

Retailers can position themselves as offering one of the four levels of services:
1. Self-services: Self-services is the cornerstone of all discounts operation.

Many customers are willing to carry out their own locate-compare-select process to save money.
2. Self-selection: Customers find their own goods, although they can ask

for assistance.

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3. Limited services: These retailers carry more shopping goods, and

customers need more information and assistance. The stores also offer services such as credit and merchandise-return privileges.
4. Full services: Salespeople are ready to assist in every phase of the

locate-compare-select process. Customers who like to be waited on prefer this type of store. The high staffing cost, along with the higher proportion of specialty goods and slower-moving items and the many services, resulted in high-cost retailing.
5.

Corporate retailing: Although many retail stores are

independently owned, an increasing number are part of some form of corporate retailing. Corporate retail organizations achieve economies of scale, greater purchasing power, wider brand recognition, and bettertrained employees. The major types of corporate retailingcorporate chain stores, voluntary chains, retailer cooperatives, franchises, and merchandising conglomerates.

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FOUR PS OF THE PRODUCT PRODUCT: Amul ice cream has wide range of variety that consists of more than hundred flavors available in the market including 20 new flavors, which is introduced in this summer. As ice cream is an impulsive purchase item so, its sale depends mostly on availability and variety. PRICE: The price of Amul ice cream is very less compared to its competitors. In novelty item the price of the flavors varies from Rs.2 to Rs22. The pricing strategy of Amul is, to target each income group of the society. The cheaper price of ice cream is meant for targeting the people with low income. Along with the low income group Amul is also targeting medium as well as the premium segment by providing different flavors at different prices. PLACE: The distribution of the ice cream in Delhi is done through exclusive Amul outlets situated in various locations. In Delhi, Amul has eleven distributors who supplies ice cream to more than 3000 outlets. These eleven distributors are responsible for their respective areas.

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PROMOTION: Amul is a well-established brand name of GCMMF. For promotion of the ice cream the company gives advertisement in newspaper and magazines. It gives glow sign board to every retailers and also makes wall paintings on there request. Amul uses their punch line ---Real milk real ice cream for the promotion.

SWOT ANALYSIS

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STRENGTH: a) Biggest sourcing base for milk and milk products in India. b) Indias best-known local Brand across all categories. c) 35% market share in the national Ice Cream market. d) Presence of a well-established distribution and delivery network for dairy products. e) Penetration pricing strategy Amul is the price warrior in the Ice cream market and currently has a very wide range to offer for all price points. f) Kwality Walls, Amuls main rival, has been able to extend its cold chain in only about 150 out of 300 class I towns. Whereas Amul has presence in almost all towns because of its already existing butter lines. g) Customer is most comfortable buying Ice Cream in the Value for Money segment and Amul is well present in this segment.
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h) Amul has built up a formidable image as a brand in which generations of consumers have placed their trust. This can be used to its advantage while introduction of ice creams.

WEAKNESS: a) Relationship between retailer and company is not effective.

b) After sales service is not upto retailers expectation level c) Availability of all type of verity ice is not regular. d) Advertising is low profile, as the results of our survey show. Kwality Walls on the other hand is into heavy advertising and consequently, is popular. e) As per our survey, retailers list a credible Replacement policy as a factor very high on their wish list. They would be willing to make further investments only for that brand which offers replacement facilities. Amul has no replacement policy.

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f) Retailers now demand freezers without having to pay any deposit. This is especially true of those retailers who already stock one or the other ice cream brands

OPPORTUNITY:
a)

Delhi market is not restricted to monopoly outlets. There are a significant number of retailers who are currently stocking more than two brands. This is in Amuls favor, as earlier it had to overcome this problem in the Mumbai market.

b)

There is ample scope in the low priced segment as also in other categories where consumers presently are dissatisfied with the quantity being provided vis a vis the price being charged.

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c)

Amul has the opportunity to capture the more evolved young adults and children who are open to new products provided they meet their expectations.

d)

Kwality Walls is right now in an investment mode and is concentrating on expanding the market as also its reach. Amul should direct its resources towards cashing in on Walls market development.

e)

Distributors are dissatisfied with the margin & customer support services currently being provided in the market. This can be used to Amuls advantage. Mother Dairy is extremely apathetic to retailers and there is a gap to be exploited.

THREAT: a) New companies are entering the ICE industry. b) Local manufacturers are growing at alarming rate c) Good advertisement campaign from competitors.
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d) The consumers have very well received Kwality Walls product differentiation strategy and Mother Dairy is also pushing up its advertising pitch.

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RESEARCH DESIGN: The research design prepared with great care keeping in mind the research objective. The project was divided into two partsparts A, part B. RESEARCH APPROACH: In the part A the research was conducted by visiting to the various non existing outlets of Amul and asking them about Amul ice cream and whether they would like to keep Amul ice cream. I also told them about the Amuls promotional scheme and various superseding factors. In the part B the research was conducted by visiting to the various existing Amuls outlets and knew about the replacement of old and unsold stock and services of Amul. RESEARCH INSTRUMENTS: The primary data collected for this study was done through detailed market survey by means of unstructured interaction. The secondary data is collected through Internets, Material provided by company, e.t.c. SAMPLE PROCEDURE: The procedure adopted for sampling was on the basis of judgmental sampling.
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HYPOTHESIS:

Ho1 --- There is no significance difference between the price of Amul Icecream and its competitors. Ho2 --- There is no significance difference between the product quality of Amul Ice cream and its competitors. Ho3 --- There is no significance difference between the companys scheme of Amul ice cream and its competitors. Ho4 --- There is no significance difference between the services provided by Amul and its competitors. Ho5 --- There is no significance difference between the availability of Amul Ice cream and its competitors. Ho6 --- There is no significance relation between the taste of Amul ice cream and its competitors. Ho7 --- There is no significance difference between the packaging of Amul ice cream and its competitors.

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Ho8 --- There is no significance between the flavor of Amul ice cream and its competitors. Ho9 --- There is no significance difference between the brand image of Amul ice cream and its competitors.

LIMITATIONS: The study limit to Central Delhi Due to unavailability of proper conveyance facility, it was really hard to cover the market under a scorching sun. In many residential blocks shops located in corners of by lanes were difficult to locate. The time duration of two months was short for the completion of all activities. Being a perishable product no sample could be shown as demanded by many prospecting clients. 1

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PROJECT ACTIVITY SEQUENCING Start

Developing open and structured questionnaire

Collecting some secondary data/informatio n from various sources

Conduct survey in south Delhi by Study the information Compile and analyze the collected information

Do report writing

Final Report
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This table shows the interested to take retailership for ice-cream

Dealers Number 100

YES 67

NO 33

Percentage People Like Keep ICE-Cream

33%

67%

Interested

Not Interested

From the above graph it is found that 67% retailers are interested in keeping ice cream. Only 33% retailers are not interested.

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If yes, which brand would you like to go for: Retailers 100 Amul 40 Kwality 17 Mother dairy 20 Cream bell 23

23% 40%

20% 17%

Amul

kwality

M.D

cream bell

The graph shows that out of hundred percent retailers 40% retailers were favored Amul ice cream. After Amul the most favored ice cream is cream bell. Cream bell is second most important because its new in market with higher rate of margin and less price.

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Preference given by the retailers to the following companies on the given quality:

Amul Price Margin Quality Variety Pack Availability Taste C. Scheme Services 123 115 135 123 127 111 121 119 92

Kwality 83 84 128 100 139 121 145 91 138

Mother dairy 110 80 138 97 111 115 140 86 127

Cream bell 119 127 90 95 106 108 104 137 137

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Comparison of preference given by the retailers to the different Ice cream-making companies:

160 140 120 100 80 60 40 20 0 Price Margin Quality Variety Pack. Avail. Taste CS Services

Amul

Kwality

M.Dairy

C.Bell

From the above graph it is conclude that Amul is leading in the price and variety preference but giving equivalent competition to other companies in quality, packaging and availability. Amul is way behind in terms of services.

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(ANALYSIS OF NON-EXISTING OUTLETS) Percentage of people likes to keep deep freezer provided by the company:

Retailers 100

Yes 87

No 13

13%

87%

Yes

No

Here graph shows that the most of the retailers wants to keep deep freezer provide by the company.

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Mode of payment for deep freezer: Retailers 100 C.D.P 17 Installment 40 Security 43

17% 43%

40%

C.D.P

Installment

Security

The above graph shows that most of the retailers want to keep deep freezer on either installment basis or security basis. Only 17% retailers are interested for cash down payment.

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Relationship on the basis of: Retailers 100 Trial basis 23 Long term 77 Short term 0

0%

23%

77%
Trial basis Long term Short term

The above graph shows that the most of the retailers wants to keep relationship with Amul for long-term basis.

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(ANALYSIS OF EXISTING AMULS OUTLETS) Do you keep Amul ice cream? Retailers 100 Yes 90 No 10

10%

90%
Yes No

About 90% of the existing Amul outlets are still keeping Amul ice cream. Due to the lack of proper sales services 10% of the existing outlets are now switch over to other companies.

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From where you bought your deep freezer: Retailers 100 Amul 80 Others 20

20%

80%

Amul

Others

Most of the existing outlets purchased deep freezer from Amul. The graph shows that 80% of the Amul outlets purchased their deep freezer from Amul.

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Mode of purchase: Retailers 100 Cash down 74 Installment 3 Security 23

23%

3% 74%
Cash down Instalm. se curity

The graph shows that the 74% of existing retailers purchased their deep freezer form Amul by paying cash. Only 23% of the retailers who have their shops on prime location got deep freezer on security basis.

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Which pack of ice cream is sold most? Retailer s 100

30

Cups 25
30

Cone 30

Fundoo Candies/Bar 15 20

Family/ Party pack 10

25
25

20
20

15
15

10
10

Cups

Cone

Fundoo

Candies

Party pack

The graph shows that the most saleable flavor is cone. Party pack and Cups are also sold in bulks. The flavors that are not sold much are Fundoo and Candies.

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At what period of time customers comes in bulk: Retailers 100 Morning 0 Afternoon 30 Evening 50 Night 20

50 50 45 40 35 30 25 20 15 10 5 0 Morning Afternoon Evening Night 0 20 30

In the evening from 6 p.m to 9 p.m the sale of ice cream reached to its optimum level. The ice cream is not sale much in the morning period.

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According to the retailer the flavour has maximum sale:

RETAIL VANIL ER LA 100 25

CHOCOL ATE 15

BUTTE R SCOTC H 30

PINAPPLE/M ANGO 15

KAJU/PIS ANJEER/LIT TA CHI 10 5

30 25 20 15 10 5 0 VANILLA 15 25

30

15 10 5 BUTTER SCITCH 3-D Column 1 KAJU/PISTA

The graph shows that the most demanded flavor is vanilla. After that Butter Scotch gets the position. Anjeer and Litchi are rarely sold in the market.

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Preference given to attributes:

RETAILERS PRICE MARGIN QUALITY VARIETY PACK. AVALB. TAST 100 7 23 18 6 17 6 13

10 13

7 23

6 17 6 18

PRICE AVAIL.

MARGIN TASTE

QUALITY C.S

VARIETY

PACK

The above graph suggests that the quality of Amul ice cream is admired more. The price and packaging also count. The problem area is the availability of ice cream. The retailer says that all the flavors are not available on demand.

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ONE-WAY ANOVA TEST: As in our research the number of independent variables are more than two so here we are using one-way ANOVA. The number of independent variable is five here. The independent variables are Amul, Kwality,,Mother Dairy, Cream Bell and Vadilall. The dependent variables are price, margin, quality, availability, company scheme, flavour, packaging and brand image. The following data is calculated on the basis of one-way ANOVA with the of SPSS software. The software gives the result very quickly. We have to put the independent variable in variance one column and dependent variable in variance two column. And after giving the right command we can get the answer. Here is one of the value for product quality attribute is calculated. The degree of freedom four is obtained by subtracting one from independent variable that is five. D.o.f 145 obtained by subtracting five from hundred fifty dependent variables.

Sum of squares Between the group Within the group Total 316.627 313.967 630.593

d.o.f 4 145 149

Mean square 79.157 2.167

F 36.557

Significance 0.00

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COMPARISON OF TABLE VALUE WITH CALCULATED VALUE.

36.557 Calculated value

Criteria Prod. Quality Price Services Schemes Advertisement Flavor Packaging Brand Image

Table value 3.32

Acct./Reject. Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected

39.355 33.522 29.314 30.777 12.538 13.334 37.340

3.32 3.32 3.32 3.32 3.32 3.32 3.32

Since the table value is less than the calculated value, so here all the hypotheses are rejected. It means that, there is a significance difference between the preferences given by the retailers to the different attributes of Amul ice cream and its competitors.

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FINDINGS After analyzing all the data given by shopkeepers we found certain key findings that is very important for our project. 1.Most of the retailers are interested for keeping Amul Ice Cream. 2. Retailers are not satisfied with the services provided by the company. 3.Most of the retailers like to keep deep freezer on installment basis and security basis. 4.Cone and Party packs are sold most. 5.The sale of ice cream is higher in evening. 6.The full varieties of flavor are not available on regular basis. 7. Prices of Amul ice cream are almost as par customers need. 8. Margin in Amul ice cream is very high. 9. People were highly satisfied with product quality of Amul. 10. Although Amul has opened numerous outlets it is seen that distributors are finding it

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difficult to deliver supplies in the stipulated time leading to retailer in convenience. 11. It was found that many deep freezers had developed technical snags and service personal was late in rectifying them. This created a negative rapport in mind of the retailers. 12. Retailers are unsatisfied with the replacement of unsold Amul ice cream. 13. Distributors could not provide all type of varieties because of less stock. 14. Other companies are providing deep freezers at law security which attract the retailers and create threat for HADF scheme.

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RECOMMENDATION: 1) Relationship with retailers and company should be kept under a close watch 2) Salesmen should be given the responsibility to handle the retailers grievances 3) Orders by the retailers should be executed in a proper manner to avoid irregular availability. 4) Low security and easy installment should be given on deep freezer. 5) Promotion activities should take into consideration in two different ways a) Company should associate themselves with social events, b) Company should use electronic as well as print media for their advertisement. 6) Company should give special offers to retailers frequently. 7) Company should expand their business throughout the small towns. 8) Company should open exclusive Amul parlors and outlets in big shopping mouls for promotion in higher segment. 9) There have been a lot of complaints about replacement policy of Amul. Amul should try to improve its replacement policy and make it somewhat liberal.

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10)

Innovative schemes like Priviledge cards giving

discount on successive purchases may be introduced to make a customer brand loyal to Amul.

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CONCLUSION There is an ample scope for ice cream making companies do progress in this lus green environment. The market size is increasing day by day and the demand for new flavors are arising. The companies like HLL, Cream Bell, Vadilall, and Mother Dairy are trying to capture more market share with their new ideas and plan. As per Amul is concern the company should become liberal on his policies. Amul market share in central Delhi is high but for maintaining the growth rate it should give the retailers more facilities for opening of new outlets and running successfully. The company also needs a proper distribution network for availability of products at demand.

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REFERENCES

BOOKS. Marketing management by Philip Kotler Published by Pearson Education Pvt. Ltd, Indian Branch,

12th edition ,

Hunger J.D &Wheelen T.L ,Essentional of strategic Management ,Prentice-Hall,3rd edition,2004,pp-81-94

Wheelen T.L & Hunger J.D-Concept in strategic Management & Business policy,Pearson education,9th edition ,2007,pp-135145

2 INTERNET.

www.Amul.com www.google.com www.indiatimes.com www.infoline.com

3 MAGAZINES. 6-12
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India today, April 19, 2009, Page no-36 INSIGHT-The Consumer Magazine, May-June 2009, Page no

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Questionnaire

(For New Outlet) CONSUMER DETAILS: Name: Address: Contact Number: 1. Have you ever through of expansion of your business in terms of ice -cream? Yes If no why _______________________________________________________ 2. If yes, which brand would you like to go for? i) Amul ii) Kwality High Amul Kwality Mother Dairy Cream Bell iii) Mother Dairy iv) Cream Bell Moderate Low 3. Rank according to your preference. No

4. What is your preference about following companies on the given qualities ?(1-5) Amul Kwality i) Price
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Mother Dairy Cream Bell

ii) iii) iv) v) vi)

Margin Quality Variety Packaging Availability

5. Would you like to have deep freezer provided by the company Yes 6. If No, why_____________________________________________________ __ 7. If yes, then which mode of payment are you looking for. i) ii) iii) 8. i) ii) iii) Cash down payment Installment Security Would you like to have retailership on? Trial basis Long term Short term No

Date: ______________

Signature:

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(FOR EXISTING OUTLETS) Name: ______________________________________ Address: ____________________________________ Contact No. __________________________________ Dear Customer, This survey is made for the purpose of my Summer Project and doesnt have any commercial impact. 1. Do you keep Amul ice cream? a. Yes b. No If no than why ________________________________________________ 2. How long you are keeping Amul ice cream? a. Less than six months b. 6 to 12 months c. 12 to 18 months d. more than 18 months

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3. What is the sales turnover from day one?

a. 1st 6th months__________________

b. between 6 to 1 year______________ c. 1 to 2 year_____________________ d. 2 to 3 years_____________________ 4. Form where you brought your deep freeze? a. from Amul _________ b. other source ( Please specify)_______________________

5. On which basis you procured your Deep Freezer? a. Cash down payment:___________________________ b. Installment:__________________________________ c. Security:____________________________________ d. Other:______________________________________ 6. How many brands you keep? ____________________________________________________________ _ ____________________________________________________________ _ 7. How many customers are looking for Amul Ice cream (percentage)?
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1 - 10

10 - 20

20 30

30 40

40 and above

8. According to which brand of Ice Cream has maximum sales. Brand Amul Kwality walls Vadilal Mother dairy Cream bell Rank Reason

9. According to you which flavour of Ice-cream has maximum sales? Flavour (Rank them at a scale of 1 - 5) a. Vanilla b. Strawberry c. Chocolate d. Butter Scotch e. Mango/Pineapple/Orange f. Kaju/Pista/Kessar g. Anjeer/Litchi Do you feel color of the Ice Cream affect its demand? Yes No
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If Yes then which color _________________________ 10. Which flavors are mostly preferred under Family/Party Pack? ___________________________________________________ 11. Which pack of Ice Cream is most sold? (rank at a scale of 1 - 5) a. b. c. d. e. Cups Cone Fundoo Candies/Bar Family/Party Pack

12. Please grade different companies on the following attributes in context of ice Cream Scale on the following basis: (5 as Very good and 1 as Very Poor) Very Good Good Normal Poor Very Poor Attributes Brand Names
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Amul Product Quality Price Service Schemes Advertising Brand Image Flavors Packing Total 13. Morning 14.

Kwality Walls

Vadilal

Mother Dairy

Cream Bell

At which period of time customers comes in bulk? Afternoon Evening Night Any suggestion or observation to bring more sales of Amul Ice Cream

____________________________________________________________

Date: _______________

Signature:

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Commercial Terms & Condition The above price (indicated in col. 2 & 3) are inclusive of Excise Duty and Sales Tax. The prices are on FOR basis. Transportation charges from Dadra to all courier location are included in the above price. For other locations delivery will be free upto 20kms. From the nearest branch of courier. For outside 20kms, delivery charges will be extra @ Rs. 7/- per km. Up and down on per unit basis. All entry tax and octrol if any will be extra as applicable. The above prices are inclusive of stabilizer prices. Charges for Five-year warranty are included in the above prices. 100% payment in advance from the retailers in the form of DD drawn in favour of Voltas Limited Hyderabad Unit and payable at Hyderabad for Dadra Billing and at New Delhi for local billing.

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