Escolar Documentos
Profissional Documentos
Cultura Documentos
By
Sanjeev Tripathi
(Batch 2017-19)
1
DECLARATION
authentic work carried out by me during the period from 17 May 2018
2
CERTIFICATE
This SIP report is the record of authentic work carried out by him/ her during the last
semester. He / She has worked under my guidance.
3
Acknowledgement
4
Table of Content
Title Page no.
Executive Summary 5
Introduction 6
Company Profile 8
Objective of Study 10
Scope of Study 10
Research Methodology 11
Data Analysis 13
Finding 24
Conclusion 25
Suggestion 26
Annexure 27
5
Executive Summary
6
questioner. This gave a good idea of what the retailers of the
Ambegaon area want from AMUL for purchasing their products.
Then from the questioner it was found out that two major factors
which influenced the retailers are Profit margin, quality, and timely
delivery of the products. This were very important factors whereas
AMUL is very good in Quality and Timely Delivery but as compared
to its competitors AMUL give a less profit margin. Due to this the
retailers are not ready to purchase AMUL products. Majority of
retailers also said that they can sell same product at more price given
that they are also given more profit margin.
So the Suggestion would be that AMUL is a very good brand for
retailers but still they are not ready to purchase because of profit
margin. So if the profit margin is increased even by increasing the
price then AMUL products can certainly capture a good market.
Currently the competitors are having more market share only because
of their profit margin whereas AMUL has a better goodwill as
compared to others.
Overall it was a very good experience and I learned a lot from the
project. Specially the selling part taught a lot regarding the practical
aspects of marketing.
INTRODUCTION
Once India had shortage of milk, but today India has emerged as
worlds largest producer of milk crossing 97 million tones. It is 'The
Oyster' of the global dairy industry. It offer a lot of opportunity to
entrepreneurs, who wish to capitalize on one of the world's largest and
fastest growing markets for milk and milk products. The Indian dairy
industry is growing rapidly, trying to keep pace with the progress
around the world. A bagful of 'pearls' awaits the international dairy
processor in India.
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The Dairy Industry runs mainly because of factors like Price
availability, taste and marketing, affordability, and service frequency.
Price play a major role because purchasing power is dependent upon
price and availability of that product. Distributors and retailers service
matter a lot in Institutional business.
The Milk market largely consist of urban area with over 25 percent of
total population. An estimated 50 percent of total milk is consumed in
urban areas. The urban population in India is expected to increase in
future as well. The expected rise in urban population would be a boon
to Indian dairying. Presently this market is catered by the organized
sector both cooperative and private and the traditional sector.
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9
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Indian Dairy Industry-A Profile
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Dairy industry has huge opportunities as it is largest single
FMCG Market.
KEY CHALLENGES:
Ensuring Quality
Procurement and Efficiency in Supply Chain Management
Product differentiation and value addition
Company Profile
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF)
is India’s largest food product marketing organization with
annual turnover (2016-17) US$ 4.1 Billion. Its daily milk
procurement is 17.65 million liter per day from 18,549 village
milk cooperative societies, 18 member unions covering 33 districts
and 3.6 million milk producer members.
It is top organization of the Dairy Cooperatives of Gujarat,
popularly known as ‘AMUL’. Providing remunerative returns to
the farmers is its main aim and also serve the interest of
consumers by providing quality products which are very good
value for money. Its success is not only a benchmark in India but
also serve as a model for rest of the world. It operates through 47
Sales Offices and has a dealer network of 5000 dealers and 10
lakh retailers, one of the largest such networks in India. Its
product range comprises milk, milk powder, ghee, butter, Paneer,
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health beverages, cheese, Pizza cheese, chocolates, Ice-cream, and
traditional Indian sweets, etc. It is exclusive marketing
organization of 'Amul' and 'Sagar' branded products.
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ice cream launch in 2007. For the innovations, GCMMF has
received AIMA-RK Swamy High Performance brand award 2013
and CNN-IBN Innovating for better tomorrow award in 2014.
World Dairy Innovation Awards- 2014 for Best Marketing
Campaign - "Eat Milk with Every Meal". For the tree plantation
activity GCMMF has received seven consecutive Good Green
Governance award from Srishti during 2007 to 2013.
GCMMF is also the largest exporter of Dairy Products in India. It
is also given a status of “Trading House”. Many of our products
are available in USA, Gulf Countries, Singapore, The Philippines,
Japan, China and Australia. GCMMF has received the APEDA
Award from Government of India for Excellence in Dairy
Product Exports for the last 13 years. For the year 2009-10,
GCMMF has been awarded "Golden Trophy' for its outstanding
export performance and contribution in dairy products sector by
APEDA.
Besides India, Amul has entered overseas markets such as
Mauritius, UAE, USA, Oman, Bangladesh, Australia, China,
Singapore, Hong Kong and a few South African countries. Its bid
to enter Japanese market in 1994 did not succeed, but it plans to
venture again.
GCMMF - An Overview
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Producers' Unions
No. of Producer Members 3.6 Million
No. of Village Societies 18,549
Total Milk handling capacity
30 Million liters per day
per day
Milk Collection (Total - 2016-
6.44 billion liters
17)
Milk collection (Daily Average
17.65 million liters
2016-17)
Cattlefeed manufacturing
7800 Mts. per day
Capacity
Sales Turnover -(2016-17) Rs. 27043 Crores (US $ 4.1 Billion)
VISION:
GCMMF will be an outstanding marketing organization, with
specialization of Food and Dairy product both fresh and long life
customers focus and IT integrated. The network would consist of over
100 offices, 7500 stockiest covering atleast every Taluka.
Headquarter serving nearly 10 lakh outlets with a turnover of RS.
10,000 Cr and serving several Cooperatives. GCMMF shall also
create markets for its products in neighboring countries.
MISSION:
GCMMF endeavor to satisfy the taste and nutritional requirements of
the customers of the world through excellence in the marketing by our
committed team. Through cooperative networking we are committed
to offering quality product that provides best value for money.
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Objective of Study
Primary Objective:
1. To study the Standard Operation Procedure at Amul Retail
Store.
2. To identify the need and demand of Retailers.
3. To study the distribution of Amul Product.
Secondary Objective:
1. To find out problems faced by retailers .
TASK ttttttasTASK
Scope of Study
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The study will help in restructuring margin policy for retail
distributors.
This study will also help in improving the market share of Amul
in Dairy market.
Dairy Retail store observation is included in the Project.
The study include understanding of Distribution channel of
Amul.
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Research Methodology
“Market research is the systematic design, collection, analysis and
reporting of data and finding relevant to a specific marketing situation
facing the company.”
An effective marketing research involved five steps:
Designing the
Devloping the Collecting the
Problem and
Research Plan Information
Research Objective
RESEARCH DESIGN:
A sample size of 50 retailers was taken.
The survey was conducted in the area of Sinhgad Road,
Vadgaon ,Ambegaon ,Dhayari& Narhe .
Sampling Techniques
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As the sample audience was made out of potential purchasers of the
product a Quota Sampling technique was adopted. The sample was carefully
drafted. While designing the questionnaire and also when collecting
information a lot of care was taken.
Methods of Data Collection:
Primary Data:
By Observation Method:
This data was collected by visiting the amul outlets in Thane by
seeing the displayed Amul products in that stores. The data was
collected on the following parameters:
Price.
Visibility.
Shelf Life.
Discounts Offered.
By Personal Interviews:
The data was collected by visiting each and every stores where amul
products are available and also check the availability of the Amul
products in the shelf. The information was taken by talking to the purchase
mangers of the stores as well as the distributors. The objective of this was to
know the preference of the retailers to stores the Amul products, know
the problems regarding the delivery, the problems between distributors and
retailers. The questions were open – ended as well as close - ended.
Secondary Data:
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Secondary data is something which is already written in books, newspaper,
magazines or internet. Websites likes amul.com and Wikipedia were also
used.
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DATA ANALYSIS:
Followings questions were asked during the survey and the response received is as follow:
Provision store 23
Bakery 00
Sweet Shop 02
Mart 00
Loose Milk Seller 00
Other 00
000
0
2
provision store
Bakery
Sweet Shop
Mart
Loose Milk Seller
Other
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Interpretation:
As the graph suggest approximately 92% of the milk keeper in Ambegaon area have
provision store. Rest 8% have a sweet shop where as no milk keeper have a Bakery, Mart,
Loose Milk Seller or any other type. This show that most of the shops in Ambegaon area are
provision store. They will purchase the major quantity of milk.
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Q2> Do you keep Milk of all brands?
Yes 25
No 00
yes
no
25
Interpretation:
The following Graph suggest that all the 25 Retailers keep milk at their shop. The major
reason for this can be because the survey was done on the stores who were keeping milk.
Accordingly the result is that 100% of the retailers keep milk which may not be a actual case.
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Q3> Which Brand of Milk do you keep?(more than one can be selected)
Amul 25
Chitale 25
Krushnai 8
Katraj 13
Gowardhan 3
Other 6
30
25
20
15
10 Series1
Interpretation:
From the above graph it is clear that all the 25 retailers keep Amul and Chitale milk whereas
some of the retailers also keep other milk like Katraj Krushnai. This also show that the
Retailers keep more than one brand of milk. So there can be huge competition among the
brands. But with competition there is also a big opportunities for the companies to increase
their market share of milk in Ambegaon area.
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Q4> Which factors affect your purchase decision for milk? (More than one can be selected)
Profit Margin 25
Quality of Milk 7
Availability on time 12
Brand Image 10
Relation with Distributor 4
Other 0
30
25
20
15
Series1
10
0
Profit Milk Availability Brand Relation Other
Margine Quality Image with
Distributor
Interpretation:
As shown in graph all the 25 retailers think that profit margin is one of the very important
factor for retailers to purchase milk. Whereas 10-12 retailers think that Brand image and
availability on time is also one of the factor which affect the decision of retailers buying.
Very few retailers think Quality and Distributor also have a role in their purchase decision.
Therefore it is clear that profit margin is the most important factor which affect all the
retailers purchase decision for milk.
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Q5>) Do Customers always specify the brand they want?
Yes 11
No 12
Sometimes 2
11 Yes
No
Sometimes
12
Interpretation:
This Graph shows that majority of the customers don’t specify which brand of milk they want
so the Retailer can give whichever milk he want to give. So in this case the role of retailer is
very important to increase the sale of customer. Whereas there is not a big difference between
numbers of retailers who say that people specify which brand do they want to purchase. In
case a customer specify the brand they want, the role of Business to Customer promotion play
its role.
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Q6> (If Yes) Do you give them other brand if the brand they asked is not available?
Yes 11
No 12
Sometimes 2
yes
no
sometimes
11
Interpretation:
This Graph brings the supply chain in action. If a company can make his milk available at
right time in right quantity there is always a chance of increase in sales. In vice-versa
situation a company can lose its market. So making milk available to retailers is one of the
major factor in increasing sales. This can give an edge over competitors.
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Q7> (If No) Which brand do you give them?
Amul 1
Chitale 6
Krushnai 4
Katraj 1
Gowardhan 0
Other 0
00
1 1
Amul
Chitle
Krushnai
4
Katraj
Gowardhan
6 Other
Interpretation:
The following graph shows that the retailers prefer giving Chitale milk more than others by
themselves. There can be several reasons for this for example better profit margin or good
relation with the distributors or any other. So if a company is able to influence the retailers
they can easily increase the sale of their product. Hence it become very important to deliver
value to the Retailers.
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Q8> How do you find the quality of Amul?
Excellent 16
Good 9
Average 0
Poor 0
Very Poor 0
0 0
0
9 Excellent
Good
Average
Poor
16 Very Poor
Interpretation:
The following data shows that majority of Retailers feels that the quality of Amul milk is
Excellent whereas the remaining say that it’s Good. There is no one saying the quality of
Amul is average or below average. This is a good thing for Amul as their major promotion
focus on the quality of their milk. So we can conclude that Amul has been successful in their
promotion activities.
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Q9> How is the profit margin of Amul milk?
Excellent 00
Good 00
Average 03
Poor 14
Very Poor 08
0 0
8 Excellent
Good
Average
Poor
Very Poor
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Interpretation:
Now the following data show that the Retailers are not very happy with the Profit margin
given by Amul. 3 say it is Average, 14 say its poor whereas 8 are of view that the profit
margin is very poor. This can be one of the reason for retailers resisting to purchase Amul
milk. The company need to bring some strategies to handle this situation of Retailers. If such
situation continue to exist in market Amul may lose some market share.
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.
Yes 22
No 3
Yes
No
22
Interpretation:
The above graph shows that approx 90% of the Retailers are of view that they get the
delivery of milk on time. Only 3 were unsatisfied with the timing. This show that the delivery
timing is not an issue for the less sales of Amul milk in Ambegaon area. But still the
company can be more efficient to satisfy the remaining 10% of Retailers as well
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Q11> Are you willing to sale Amul milk if you get your desired factors?
Yes 24
No 1
Yes
No
24
Interpretation:
The following graph shows that if the retailers are given some special things like extra
margin or anything as such they will be very happy to keep Amul milk at their outlets.
Approx 96% of retailers said that they are willing to keep Amul milk provided that they get
some extra benefits.
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Findings:
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Conclusion:
After evaluating the market and then doing the Market
Research, it can be concluded that there is very huge scope for
AMUL in Ambegaon area. If the company is able to make
good relations with the retailers of the area and can encourage
them to sell Amul milk then it can very easily get a big market
share. Even though Amul is new in Ambegaon area as
compared to its competitors like Chitale etc, still Amul is a
brand in itself and can very easily gain trust among customers.
Talking about the quality of Amul, it has a image of very
good quality brand which is a very good thing for company.
All the retailers as well as the customers trust Amul. It can be
sold by its name only. But the only problem faced by the
Retailers is of Margin. Almost all the Retailers are of the view
that the profit margin of Amul is very less as compare to
others. So the retailers find it very difficult to survive with
such less margin. They were of the view that this margin is
not sufficient even for paying their electricity bills. Therefore
the company will have to do something for the retailers
regarding their margin issue.
I also understood that retailers are very important part in Fast
Moving Consumer Goods. They have the power to make and
break any company. A retailer has relationship with all its
customers so he can very easily sell substitute or competitors
product. Therefore in FMCG market a company need to keep
very good relations with its retailers. Keeping them happy will
ultimately result in revenue for the company.
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Overall it was a very good experience to work with Amul.
The learning’s from the internship will definitely help me
through out my life and will be helpful for my future growth.
The project has thought me that sales is a very beautiful thing
if you can do it properly. I have learned a lot of new things
like Time management, Interpersonal skill, Negotiation skill,
how to communicate during selling, Patience and many more
things. I am really very happy to start my carrier with a short
Internship with Amul. Overall it has been an Excellent and
Rewarding experience for me. I have been able to meet and
connect with a lot of new people who gave me a lot of
knowledge.
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Suggestion
Amul is a very big company in FMCG sector and is doing really very
well. But a few recommendation from my side would be:
The Company can do trade promotion. This can be done by
various activities like give award for best retailer, award for
maximum sales etc. All this things can very highly motivate the
retailers and can result in the retailer selling more of the Amul
milk as compare to current situation.
The company can give some special discount or schemes to the
retailers. For example if they sell 100 lit. of milk every day then
the company can give them a freeze to keep that milk. This will
give the retailer a sense of getting extra benefits. And again this
can result in good relationship with retailers and ultimately more
profits.
Amul can also think of reframing their Retailer Profit Margin
Policy. If the company is able to give some margin to retailers
their major issue will get solved. After which the company can
increase their sales with less effort as compare. Retailers are
already assured of the quality of Amul, so if they get desired
profits as well then they will automatically sell Amul milk
without much efforts of company.
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Annexure
Questioner
Name of the shop_________________
Address _____________________________
A) Provision store
B) Bakery
C) Sweet Shop
D) Mart
F) Other
A) Yes
B) No
A) Amul
B) Chitale
C) Krushnai
D) Katraj
E) Gowardhan
F) Other
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4) Do Customers always specify the brand they want?
A) Yes
B) No
4a) (If Yes) Do you give them other brand if the brand they asked is not available?
A) Yes B) No C) Sometimes
A) Amul
B) Chitale
C) Krushnai
D) Katraj
E) Gowardhan
F) Other
A) Excellent
B) Good
C) Average
D) Poor
E) Very Poor
6) Are you willing to sale Amul milk if you get your desired factors?
A) Yes
B) No
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1. On time Delivery
Brand 1 2 3 4
Chitale
Gokul
Radhakrishna
Katraj
Amul
2. Quality of Milk
Brand 1 2 3 4
Chitale
Gokul
Radhakrishna
Katraj
Amul
3. Profit Margin
Brand 1 2 3 4
Chitale
Gokul
Radhakrishna
Katraj
Amul
4. Brand Image
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Brand 1 2 3 4
Chitale
Gokul
Radhakrishna
Katraj
Amul
5. Credit Policy
Brand 1 2 3 4
Chitale
Gokul
Radhakrishna
Katraj
Amul
Brand 1 2 3 4
Chitale
Gokul
Radhakrishna
Katraj
Amul
7. Leakage
Brand 1 2 3 4
Chitale
39
Gokul
Radhakrishna
Katraj
Amul
8. Relationship
Brand 1 2 3 4
Chitale
Gokul
Radhakrishna
Katraj
Amul
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Bibliography:
Books
Philip Kotler
(Marketing Concepts)
Website:
www.amul.com
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