jatin shah 2010 summer project cksvim

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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.

PREFACE

As a part of curriculum and to be familiar with the real depth and wide span

of the industry every student at the MBA is required to undergo intensive training

of the field of business.

My interest is in Fast Moving Consumer Goods (FMCG) so I selected the

Gujarat Co-operative Milk Marketing Federation Limited (GCMMFL), a

marketing unit of AMUL India Limited as the most suitable place for training.

GCMMF – the dream incarnate of Dr. V. Kurien, milk man of India, with its

sound infrastructure and nation wide network enjoys supremacy in the field of

Dairy Products.

As a part of my project I undergo to a marketing research work to find out

Retailer‟s Satisfaction in terms of Product Quality, Brand Name, Services,

Behavior, POP Support, Replacement, Product Condition on delivery by WD

(Wholesaler/Distributor) of Amul‟s Ice-cream Products. Scientifically authentic

analysis of Satisfaction Level of the Retailers and find out the reasons, which lead

to dissatisfaction were also a part of my study and survey. To compete with other

large players in the field I have recommended some suggestion in my project.

During this whole summer training I got a lot of experience in the field

of sales and marketing and came to know about the management practices in real

that how it differs from those of theoretical knowledge and the practically in the

real life.

JATIN SHAH

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ACKNOWLEDGEMENT

I would like to present this project report to Gujarat Co-operative Milk

Marketing Federation Limited, Anand. As a student of C. K. Shah Vijapurwala

Institute Of Management (CKSVIM), VADODARA, I would like to express my

sincere thanks to all those who helped me during my whole training programme.

I express a heart felt sense to of gratitude to Mr. Nadvijaysinh Gohil, Sr.

Executive of HRD and Administration department who gave me the opportunity of

training. Without their encouragement my project would not have been possible.

Words are insufficient to express my gratitude toward Mr. Nimit Doshi, the HOD

of Marketing Department, who arranged my whole training programme.

I cannot prevent myself from thanking to Mr. Dhaval Parikh, Sales

Manager AMUL India Ltd., Anand who helped me in the submission of a project

application and motivated me during my project.

I expressed sense of gratitude to my Director Dr. Rajesh Khajuria and Mr.

Prakash Patel, faculty member, CKSVIM, Vadodara, for having spared his

valuable time with me for all the guidance given in executing the project as per

requirements of University.

Last but not least, I would like to record my deepest sense of gratitude to my

friends for their support and constant encouragement.

However, I accept the sole responsibility for any possible error of omission

and would be extremely to the readers of this project report if they bring such

mistakes to my notice.

JATIN SHAH

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EXECUTIVE SUMMARY

The objective of this project is to find out the market share of AMUL ice-

cream in comparison to the other brands of ice-cream in Nadiad city. It also looked

in the different factor of stocking decision to the product in the retail outlets. To do

that in an efficient way I decide a sample size of 50 retailers and further they are

divided into three zone wise clusters as the city‟s geographical background, so we

can have the accurate and unbiased result.

To get accurate finding I have used Questionnaire as a tool of data

collection, which is designed as per the requirement of information. The sampling

design was used convenience sampling. The process of analysis was done through,

frequency table, percentage, average, graphs and pie charts.

My objectives of the study is:

◙ To estimate market share of AMUL ice-cream in comparison to other

competitor brand.

◙ To collect detailed information about the Brand Name, WD Behavior,

Service provided, Product Availability, POP Support, ROI, Replacement,

Consumer Demand, Quality of different Brand of ice-cream.

◙ To collect the information about the frequency of delivery of different

brand of ice-cream to retailers.

◙ To collect suggestion provided by the outlets to the company for

improvement of AMUL ice-cream.

◙ To assess satisfaction level of retailers stocking and selling of AMUL ice-

cream.

The Ice-cream come under FMCG industry and the company associated with

this product are AMUL, Vadilal, Havmor and other local brands, Among them

AMUL is India‟s leading Dairy product company. In this research I found that,

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Although AMUL ice-cream has a strong position in the market but their Service,

Replacement, and Product availability is poor in comparison to other brands like

Vadilal and Havmor.

I also found that customer level of acceptance towards the AMUL products

is very high but due to poor service, like whatever the product is not delivered

timely, replacement is not done, there ware less cup and spoon in the packet

sometime and also not provide an extra spoon. So, due to all this problem retailers

are unsatisfied.

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CONTANTS Of PROJECT

Sr. No. Chapter Name

1 Preface

2 Acknowledgement

3 Executive Summary

4 Contents

5 Industry Profile

6 Organization Profile

7 Project Profile

8 Introduction

9 Objectives Of The Study

10 Significance Of The Study

11 Survey Methodology

12 Detail Findings

13 Present Business Scenario

14 Suggestion

15 Conclusion Annexure:

1. Map of Nadiad City.

2. Survey Questionnaire.

3. Retail Outlets List.

4. Bibliography

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INDUSTRY

PROFILE

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Dairy Industry: In a Globe

The U. S. Farm Bill 2002, titled the Farm Security and Rural Investment Act of

2002 and signed by the US President George Bush, provides for continuation of

the existing Milk Price Support Program. This would further depress international

prices of dairy products and enhance subsidies.

Under this Bill, instead of reducing trade-distorting subsidies, the US

Department of Agriculture's Commodity Credit Corporation is committed to buy

unlimited quantities of butter, cheese and skimmed milk powder (non-fat dry milk)

from dairy plants at prices that enable them to pay a minimum support price for the

milk supplied by farmers.

Under a scenario where international prices are lower than domestic prices,

traders can and do make quick profits without any big investment. But the interests

of the large numbers of farmers with critical dependence on dairy may be totally

forgotten.

Though WTO framework is based on free trade, European Union and the

United States have bypassed and even openly violated their (WTO) commitments.

For developed countries confronting saturation in their own markets, penetration

into large developing countries is but a logical choice. This may be the reason why

New Zealand Dairy Board has dumped a large quantity of butter oil into India at

prices below $ 1000 per ton, whereas the prevailing international price is around

$1300 per ton.

In simple terms, New Zealand's butter oil made available at Rs 64.54 per kg is

roughly cheaper by Rs 15 a kg, compared to the prevailing international prices of

Rs 87.40 per kg.

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DIAL-A-MARKET …. TO INDIA

Dairy industry in India has come a long way from dependence to self-reliance

as the total amount of milk produced more than tripled from 23 million tones back

in 1973 to 81 million tones in 2000.

Interestingly, it's the single largest contributor to India's GDP and involves as

many as 80 million small farming households. The social impact of developing the

dairy industry has thus been profound. With the opening up of the Indian market to

an influx of foreign goods, much concern has been expressed over the state of the

Indian dairy industry.

Indian milk farmers are paid on the basis of the value of fat in the milk. In the

last one year, due to lower realization of ghee prices, there has been approximately

15 per cent erosion in the milk value realized by the farmers. A further drastic

decrease in the milk fat price would be enough for the farmer to exit the dairy

industry. If the undervalued imports are not checked, then all the gains achieved by

Operation Flood may be wiped out.

But this is just the beginning. What happens when imports of highly subsidized

milk powders follow and domestic milk production and supply is taken over by

reconstituted milk?

India has the world's cheapest milk but unfortunately costliest of milk products.

It may be due to cost diseconomies, process inefficiencies and poor yield. In post-

WTO regime cheap foodstuff need not necessarily mean poor quality. It could be a

very high quality product from the developed countries, available at low prices due

to lower tax barriers. I think we have already started to feel the heat of such market

changes with multinationals and domestic majors like Amul improving their

product mix and package.

Being a large country with small milk producers even a slight signal of a

shortfall or surplus in production tends to influence its interests. While developed

countries may have evolved better institutional mechanisms to protect the interests

of farmers and processor, this is not the case with India.

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Indian milk production, however, in contrast to other milk producing countries,

is characterized by lakhs (millions) of small and marginal farmers including

landless milk producers for whom it is not only a business but also the main source

of earning.

Technology and management are both important factors affecting the

competitiveness of India's dairy sector. We need latest technologies to produce

high quality products at low cost and professional management to utilize optimally

the industry's human and financial resources.

We can successfully meet the emerging challenges and harness the new

opportunities if we ensure widespread adoption of the latest available technologies

for processing, packaging and marketing of milk and milk products, organize milk

producers and professionally manage their organizations. I feel that there should be

level playing games for all the countries under WTO rules

Since the country is not faced with milk shortage, innovative use of technology

and proper resource management can help the industry to achieve export

competitiveness in terms of price and yield and quality.

India has emerged as the biggest producer of milk with an output of 81 million

tones in 2000-01, outpacing 72 million tones produced in the United States.

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ORGANIZATION

PROFILE

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INTRODUCTION:

AMUL means "priceless" in Sanskrit. The brand name

"Amul," from the Sanskrit "Amoolya," was suggested by a

quality control expert in Anand.

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.

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. Gujarat Co – Operative Milk Marketing Federation is

carrying out the activities of marketing the Amul Products.

50 years after it was first launched, Amul's sale figures have jumped

from 1000 tones a year in 1966 to over 25,000 tons a year in 1997. No

other brand comes even close to it. It was all because a thumb-sized girl

climbed on to the hoardings and put a spell on the masses.

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BEGINS WITH A MILK STRIKE

The first Amul co-operative was the result of a meeting of farmers in

Samarkha (Kaira district, Gujarat) on January 4, 1946, called by Shri.

Morarji Desai under advice from Sardar Vallabhbhai Patel, to fight

rapacious milk contractors.

Decision: Milk producers' unions in villages, federated into a district

union, should alone handle the sale of milk from Kaira to the

government - run Bombay Milk Scheme. The government, British then,

resisted the move. The farmers called a milk strike. After fifteen days

the government capitulated.

This was the beginning of Kaira District Co-operative Milk

Producers' Union Ltd., Anand, registered on December.

November 14, 1946, a similar Milk Unions came up in other districts

too. They formed the Gujarat Co-operative Milk Marketing Federation

Ltd. in 1973.

In the early days of Kaira Union there was no dearth of cynics. They

had doubt if they could handle sophisticated dairy equipment, if they

could process western-style milk products from buffalo milk, if they

could market these to sophisticated consumers in cities.

The Amul people confounded the scoffers by processing a variety of

high-grade dairy products, several of them for the first time from buffalo

milk, and marketing them nationally against tough competition.

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A MUCH-APPLAUDED BRAND:

Marketers who believed that only English-sounding brand names

would succeed in post-British India were proved wrong by Amul.

It‟s production-networking and advertising have been much admired.

The current Amul Butter advertising campaign ("utterly butterly

delicious Amul"), with its topical one-liners, and preference for outdoor

media, has now run for 30 years - probably the longest-running

campaign in India, and the winner of the largest number of awards. The

popular "Amul Butter girl" of the ads quickly found a place on the

packaging.

Several Amul products are now leaders in their market segments.

The late Prime Minister Shri Lal Bahaddur Shastri paid the

ultimate tribute to Amul. He wanted the Amul people to replicate the

Amul model all over India. This is what National Dairy Development

Board (NDDB) is doing under Operation Flood.

India now has 82640 village milk co-operatives with 9.16 million

farmer-members. And some of the new Milk Federations, started with

help from Amul technologists, have now developed their own successful

brands, which compete with Amul products.

Hope and confidence beyond belief to farmers. Quality beyond price

to consumers.

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Gujarat co-operative milk Marketing Federation

GCMMF: An Overview

Formed in 1946, Amul began the dairy cooperative movement in India and

formed an apex cooperative organization, Gujarat co-operative Milk Marketing

Federation Ltd.(GCMMF), which today is jointly owned by some 2.2 million milk

producers in Gujarat, India. Its products, including milk powdera, liquid milk,

flavored milk (Amul Cool), Sweetened Condensed milk, butter, ghee, cheese,

chocolate, ice cream, pizza, pannier,shrikhand, cream , Mithaee, Amul Masti Dahi

and the Amul shakti & Nutramul brand of Health food drink are widely used

throughout India and abroad and have made Amul the largest food brand in India

today with an annual turnover of some Rs 30 Billion ($ US 600 million) per

annum.

The primary goal of Dr. V .kurien, Chairman GCMMF, the “ Milk Man of

India “, has been to build a strong Indian society economically through an

innovative cooperative network, to provide quality service and products to end-

consumers and good returns to the farmer members.Dr.Kurten states, “We have

traversed a path that few have dared to. We are continuing on a path that still fewer

have the courage to follow. We must pursue a path that even fewer can dream to

pursue. Yet, we must. We hold in trust the aims and aspirations of millions of our

countrymen.”

In the year 1954, Kaira District Co-operative Milk producers‟ union built a

plant to convert surplus milk produced in the cold seasons into milk powder and

butter. In the year 1955 a plant to manufacture cheese and one to produce and baby

food were added, subsequent years save the addition of more plant to produce

different products. In 1973, the multi society/ districts kevel union decided to

market their products. This agency was G.C.M.M.F. registered as Co-operative

society on July 1973.

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G.C.M.M.F is India‟s largest food products marketing organization. State

level apex body of Co-operative in Gujarat , aims to provide remunerative returns

to farmers and also serve to interest of consumers by providing quality products,

which are good value form money. G.C.M.M.F markets and manages Amul, Vidya

Dairy, Mehsana Dairy, Sumul and as such 12 co-operative milk producers.

From mid 1990‟s Amul has entered area not related directly to its core

business. But then also it is able to capture the good market as its products are

marketed by the G.C.M.M.F

For the first time in the corporate history, leading consumer goods

manufacturer and leading co-operative are planning to launch an instant coffee

brand targeted at the premium end of the market. Players involved Rs.216 crore

Tata coffee and over Rs.2258 crore G.C.M.M.F. The rationale is that G.C.M.M.F.

has developed a comprehensive distribution network.

Despite of competition in high value dairy product segments from firms such

as H.U.L., NESTLE, BRITANNIA, G.C.M.M.F. ensures that the product mix and

the sequence in which Amul introduces its products are consistent with the core

philosophy of providing milk at a basic affordable price

The G.C.M.M.F. has touched Rs.50000.33 crore in revenues in 2008-09

fiscal thus becoming the first billon – dollar co-operative in India. The federation

has reported a jump of 13.4% despite the ban on export of skimmed milk powder

and massive loss suffered by farmers due to food.

If we talk about its technology G.C.M.M.F.‟s technology, strategy is

characterized by 4 distinct components: new product, process technology,

complementary assets to enhance milk production and e- commerce. It is the first

FMCG firm in India to employ internet test to implement B 2 C commerce.

Another e-initiative underway is to provide farmers access to information

relating to market, new technologies and best practices in dairy industry though net

enabled kiosk in villages G.C.M.M.F has also implemented geographical

information system at both ends of supply chain i e. milk collection as well as

marketing process.

Federation handles distribution of end products and co-ordinates with the

retailer and dealer. Only because of its effective channels of distribution and good

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relation with supply chain members it is able to acquire such a large pie in the

market.

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.

Structure of G.C.M.M.F.L

Members: 13 district cooperative

milk producers' Union

No. of Producer

Members:

2.79 million

No. of Village Societies: 13,328

Total Milk handling

capacity:

11.22 million litres per

day

Milk collection (Total -

2008-09):

3.05 billion litres

Milk collection (Daily

Average 2008-09):

8.4 million litres

Milk Drying Capacity: 626 Mts. per day

Cattlefeed manufacturing

Capacity:

3500 Mts per day

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14 UNIONS ARE AFFILATED WITH GCMMF

1. Amul Dairy (Anand)

2. Vidya Dairy (Anand)

3. Dudh sagar Dairy (Mehsana)

4. Mother Dairy (Gandhinagar)

5. Sabar Dairy (Himmatnagar)

6. Banns Dairy (Palanpur)

7. Sumul Dairy (Surat)

8. Baroda Dairy (Baroda)

9. Panchmahal Dairy (Godhra)

10. Uttam Dairy (Ahemdabad)

11. Rajkot Dairy (Rajkot)

12. Vasdhara Dairi (Valsad)

13. Dudhdhara Dairy (Bharuch)

14. Gandhinagar Dairy (Gandhinagar)

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Sales Turnover:

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

2004-05 29225 672

2005-06 37736 850

2006-07 42778 1050

2007-08 52554 1325

2008-09 67113 1504

From the date we can see that every year federation is making sales

turnover in the increasing direction. If we see the results of 2006-07, from the

previous year 2005-06, it has made a jump of turn over of 14%. In the current

year also G.C.M.M.F. has made a move of 28%, and with this it becomes a

3rd

billion dollar baby in co-operative societies.

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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

http://www.amul.com/bread-butter.html

http://www.amul.com/bread-lite.html

http://www.amul.com/cheese-cheddar.html

http://www.amul.com/cheese-spreads.html

http://www.amul.com/cheese-mozzarella.html

http://www.amul.com/cheese-emmental.html

http://www.amul.com/cheese-gouda.html

http://www.amul.com/desserts-shrikhand-.html

http://www.amul.com/desserts-gulabjamun.html

http://www.amul.com/desserts-jamunmix.html

http://www.amul.com/desserts-kulfi.html

http://www.amul.com/fresh-tazza.html

http://www.amul.com/fresh-gold.html

http://www.amul.com/fresh-slim.html

http://www.amul.com/fresh-cream.html

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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

http://www.amul.com/cooking-sagar.html

http://www.amul.com/cooking-sagar.html

http://www.amul.com/powder-milkfood.html

http://www.amul.com/powder-milkpowder.html

http://www.amul.com/powder-dairy.html

http://www.amul.com/powder-skimmilk.html

http://www.amul.com/powder-coffee.html

http://www.amul.com/cooking-mithai.html

http://www.amul.com/fresh-tazza.html

http://www.amul.com/fresh-gold.html

http://www.amul.com/cooking-mastidahi.html

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AMUL Ice-creams:

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

Amul Kool Koko

Amul Kool Millk Shaake (Mango, Strawberry, Badam, Banana)

Health Beverage:

Amul Shakti White Milk Food

http://www.amul.com/icecream/royal.html

http://www.amul.com/icecream/nutomania.html

http://www.amul.com/icecream/nature.html

http://www.amul.com/desserts-chocolates.html

http://www.amul.com/desserts-chocolates.html

http://www.amul.com/healthy-nutramul.html

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OBJECTIVES AND BUSINESS PHILOSOPHY OF

G. C. M. M. F. The main stakeholder of GCMMF is the farmer member for whose welfare

GCMMF exists. GCMMF states that its main objective is the „carrying out of

activities for the economic development of agriculturists by efficiently organizing

marketing of milk and dairy produce, veterinary medicines, vaccines and other

animal health products, agricultural produce in raw and/or processed from and

other allied produce.

GCMMF aims to market the dairy and agricultural products of co-operatives through :

Common branding

Centralized marketing

Centralized quality control

Centralized purchases and

Efficient pooling of milk.

BUILDING NETWORKS

The founders of kaira union realized that to fulfill their objective, a large

number of marginal farmers had to benefit from the co-operative network of

stakeholders had to be built. And once build, it had to grow so as to draw more

rural poor to undertake dairy farming as a means of livelihood. The network had to

have several layers- the organizational network where the voice of the owners

governed all decisions, a physical network of support services and product delivery

process and a network of small farmers that could deliver the benefit of large

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corporation in the market place .More importantly , a process had to be put in place

to build these network .

Building an organizational network that would represent the farmers and

the customers was the most complicated task. A loose confederation evolved with

GCMMF representing the voice of the customers, the unions representing the milk

processors and the village societies representing the farmers. Competition in the

markets ensured that the entire network was responding to the requirements of the

customers at prices that were very competitive. The task of ensuring the returns.

To the farmers was commensurate with the objectives with which the co-

operatives were setup was achieved trough representation of farmers at different

levels of decision making throughout the network – the societies, unions and the

federation board comprised farmers themselves. In order to ensure that most

returns from sales went to the farmers themselves who were the producers, the

intermediaries had to operate very effectively and on razor thin margins. This

turned out to be a blessing in disguise – the operations remained very “lean” and

started to provide cost based advantage to the entire network.

Amul established a group to standardize the process of organizing farmers

into village societies. In addition to establishing the criteria for selecting members,

the group had to train the VS to run the co-operative democratically, profitably and

with concern for its members. This included establishing procedures for milk

collection testing ,payment for milk purchased from member farmers and its

subsequently sale to the union, accounting , ensuring timely collection and

dispatch of milk on milk routes established by the union, etc. the village societies

department at AMUL acted as internal representatives of the village societies in

their dealings with the unions.

Milk procurement activity at Amul comprises development and servicing of

village societies, increasing milk from societies &its transport to the chilling

locations, and resolving problems of farmers and village societies. Their stated

objective is to ensure that producers get maximum benefits. The milk procurement

departments co-ordinate these activities. Milk collection tasks place over a large

number of predefined routes according to a precise.

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LITRATURE REVIEW

This will include the subject related to what is market research. It will

also focus on why market research in today‟s competitive world.

Meaning of Market Research:

We define market research as the systematic design, collection,

analysis, and reporting of data and findings relevant to a specific marketing

situation facing the company. Market research consists of testing the market

to determine the acceptance of a particular product or service, especially

amongst different demographics. It is used to establish which portion of the

population will or does purchase a product, based on age, gender, location,

income level and many other variables. Market research allows companies to

learn more about past, current and potential customers, including their

specific likes and dislikes

Component of Marketing Information System:

Many firms develop marketing information system that provides

management with repaid and incredible detail about buyers wants,

preferences and behavior. A marketing information system (MIS) consists of

people, equipment, and procedure to gather, sort , analyze, evaluate, and

distribute needed, timely and accurate information to marketing decision

maker.

http://www.wisegeek.com/what-is-demography.htm

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The Marketing Research Process:

Regardless of the simplicity or complexity of your marketing research

project, you will benefit by reviewing the following seven steps in the market

research process.

Step One: Define Marketing Problems and Opportunities

Step Two: Set Objectives, Budget and Timetables

Step Three: Select Research Types, Methods and Techniques

Step Four: Design Research Instruments

Step Five: Collect the Data

Step Six: Organize and Analyze the Data

Step Seven: Present and Use Market Research Findings.

http://www.smallbusinessnotes.com/operating/marketing/marketresearch/stepone.html

http://www.smallbusinessnotes.com/operating/marketing/marketresearch/steptwo.html

http://www.smallbusinessnotes.com/operating/marketing/marketresearch/stepthree.html

http://www.smallbusinessnotes.com/operating/marketing/marketresearch/stepfour.html

http://www.smallbusinessnotes.com/operating/marketing/marketresearch/stepfive.html

http://www.smallbusinessnotes.com/operating/marketing/marketresearch/stepsix.html

http://www.smallbusinessnotes.com/operating/marketing/marketresearch/stepseven.html

26


INTRODUCTION TO MARKETING MANAGEMENT

Today it is fashionable to talk about the new economy. We hear that business are

operating in a globalize economy, that things are moving at a nanosecond pace, that our

markets are characterized by hyper competition , that disruptive technologies are

challenging every business and that business must adapt to empowered consumers.

The old economy seemed simpler. It was based on the Industrial revolution and

on managing manufacturing Industries. Manufacturers applied certain principles and

practices for the successful operation of their factories.

But today the scenario is completely changed.The new economy is based on the

marketing. Peter Druker , a leading management theorist, puts into this ways:

“There will always one can assume, be need for some selling. But the aim of

marketing is to make selling superfluous. The aim of marketing is to know and

understand the customer so well that the product or service fits him and sells itself.

Ideally marketing should result in a customer who is ready to buy. All that should be

needed then is to make the product or service available.”

Marketing deals with identifying and meeting human and social needs. In a

simpal definition: “Marketing needs profitably”

There are 4 P‟s of marketing that represent the sellers view of marketing tools

available for influencing buyers.

Four P’s Four C’s

Product Customer solution

Price Customer Cost

Place Convenience

Promotion Communication

27


ORGANIZATION STRUCTURE

Organization structure is the heart of the business organization. It is mechanism

or a basic framework which divides the works of employees in the Organization.

The well co-ordination among the various levels helps to work effectively and

add to achieve the Organization goals and objectives.

Structure is necessary to establish relationship between the individuals and

various positions. It indicates the responsibilities and authorities at various levels at the

various levels of the Organization.

Every Organization has its own structure. It may be flat Organization, where

levels are reduced; it may be horizontal Organization also.

GCMMF is a lean Organization, a strategy that is believed to provide it with a

cost advantage. At its headquarters in Anand, four general managers (GMs) and four

assistant general managers (AGMs) assist the managing director (MD).The four AGMs

look after the functions of marketing, systems, co-operative services and technical

projects, respectively. The four GMs are in charge of marketing (dairy products),

human resources development and marketing (new business), finance and quality

assurance, respectively.

The whole country is divided into five zones, each headed by a zonal manager

responsible for the sales of all products within his zone. These managers report to the

MD but functionally each also reports to the various AGMs/ GMs at the headquarters.

There are 50 sales offices spread across the country (of which only two are in Gujarat);

a sales manager heads each office and is assisted by sales officers and field

salespersons. The entire country has been represented in this structure. GCMMF has

been represented in this structure. GCMMF has one overseas office in Dubai.

28


CHANNELS OF DISTRIBUTION

Marketing Channels are sets of interdependent organizations involved in the

process of making a product or service available for use or consumption. Marketing

Channels decisions are among the most critical decision facing management. The

company‟s channel decisions involve relatively long- term commitment to other firms.

It represents a singnificant corporate commitment to large numbers of independent

companies whose business is distribution and particular market they serve.

The Channels of Distribution of G.C.M.M.F is simple but most effective. Due to

its effectiveness and efficient function it is able to set the 3000 outlets in Gujarat and

there are sum of 33000 distributors. The channels of Distribution are of three levels

which are as follows:

Member Union

Federation

Depot

W.D.

Retailer

Consumer

29


We have called the channels simple although there are three levels the reasons are:

There is well co-ordination between the various levels.

Appropriate information is provided to each level.

Work together at all levels.

Functions of the Intermediaries:

Place order with the Federation.

Provide for the successive storage and movement of physical products.

Develop and disseminate persuasive communication to stimulate purchasing.

Gather information about potential and current customers and competitors.

Due to its effective channels of Distribution it has achieved the

Turnover of 4300 crores which is a great jump of 13.4% from the last year 2008-

09.

There is the system of scheduled based order. W.D has its own schedule.

G.C.M.M.F does not facilitate credit facility to the distributors. The payment

system is completely on advance payment bases. So the question of bad debt does

not arise.

Time to time it introduces new schemes for the retailer and wholesale

distributors. Till now the federation has maintained very cordial relation with its

intermediaries. The channels functions very smoothly. This is obvious because

we can see wide range of products available at retail shops.

30


SALES FORCE MANEGMENT

o Sales term ensures that the GCMMF products are available to the

customer whenever and wherever. o Sales term is responsible to achieve seasonal and periodical targets. o To exploit all periodical sales promotion and ensure that objectives

are archived. o Sales term is responsible to minimize outstanding and ensure

prompt collection. o Representative

o Sales term should properly store and rotate the stock. o They should communicate important and usual competitive activity

to the management. o Solve customer query promptly and correctly.

o Report general information, which may be of interest to the

company and to its business.

31


PROJECT

PROFILE

32


Introduction: About the city - Nadiad

Nadiad is the fastest growing city of Kheda District, of Gujarat at around

30km from AMUL Milk city, Anand. The city is famous for its socio-educational-

religious humanitarian services led by Santram Mandir and supported by

institutions of higher learning such as Dharmasinh Desai University, M. U. Patel

Urological Research Institute, Mission Heart Institute, Mahagujarat Hosptial and

Heart Center, and the Civil Hospital. The city is geographically cover the area

about 7km with the resident population of over 2lacs.

The city is a hub of industrial productivity led by the New Shorrock Mills of

the Mafatlal Group. Other major industrial units providing valuable employment to

the local population are IPCO, Apex Plastics Pvt. Ltd., American Dryfruits and

Ashoka Foods - manufacturer of packaged food. The city is also a major trading

center of Indian spices such as jeera, hing, haldi and rai (mustard seeds) as well as

cotton. Being the administrative center of the Kheda District, Nadiad has RTO,

District Collector and Records offices which bring thousands of people to the city

to transact official business.

For, our research purposes we had divided this city in three major zone. So,

we can analyze the project report easily. In first zone the area come like Amdavadi

Bazaar, Vorwad, Mill Road, Mishion road, Pavanchakki, Pij Road, Rail way

Station, Dabhan Bhagol, Bhavsharwad etc. In second zone the area come like

Sindhi Market, Santram Road, Bus Stand, Paras Cinema, I.G.Marg, Vaishali Road,

etc. And in the third zone of the city area come like Dairy Road, Vaniyawad.

The city is well planned with shopping area, residential area, commercial

area etc. well defined by the authority.

http://en.wikipedia.org/wiki/Santram_Mandir

33


OBJECTIVES OF THE STUDY:

Every Study is being conducted with a purpose in it. The study of

AMUL ice-cream is carried out to achieve the objectives listed below.

To estimate market share of AMUL ice-cream in comparison

to other competitor brand.

To collect detailed information about the Brand Name, WD

Behavior, Service provided, Product Availability, POP

Support, ROI, Replacement, Consumer Demand, Quality of

different Brand of ice-cream.

To collect the information about the frequency of delivery of

different brand of ice-cream to retailers.

To collect suggestion provided by the outlets to the company

for improvement of AMUL ice-cream.

To assess satisfaction level of retailers stocking and selling of

AMUL ice-cream.

34


SIGNIFICANCE OF THE STUDY:

The market share analysis and potential is to be studied.

The study of market share analysis would enable the

manufacture to reach a decision from the fact collected. The

decision can be regarding the increase in an advertising

campaign.

It will help the company to build a judgement regarding its

competitor and their position.

The study will unravel the stage in which the company is at

present. If it has reached the boom stage of the trade cycle it

can direct its efforts towards extending the boom stage.

The study of market potential will help the company to

canalize its resources in accordance with the estimated

potential market.

35


RESEARCH METHODOLOGY

“Advertising is a paid form of non-personal presentation and promotion of

ideas, goods or services by identified sponsor.”

Research Design: Research design can be thought of as the structure of research -- it is the

"glue" that holds all of the elements in a research project together. We often

describe a design using a concise notation that enables us to summarize a complex

design structure efficiently.

Research Problem: To know the current demand of AMUL Ice-cream in the market.

To know the response of the people & satisfaction level of customers and

retailers.

To find out the effectiveness of marketing strategies of the G.C.M.M.F.

To find out the defects & reasons for the lower demand of Ice-cream.

To find the performance of AMUL Ice-cream in comparison to the other

different brand of ice-cream in Nadiad city.

Scope of the study: The scope of the study is limited to retailers only. This study will help in

comprehensive analysis of market share of AMUL Ice-cream. At the same time

was intended to find about the perception of retailer towards AMUL Ice-cream in

comparison to other brand of ice-cream, and about problems or issues and

suggestions towards the company.

36


Sources of Data collection:-

1. Primary Data Collection.

2. Secondary Data Collection.

1. Primary data collection: Information by retailers in Nadiad by

Questionnaire, Personal Interview and Observation method.

2. Secondary data collection: Information collected by the use of

Internet, Newspapers, magazines and Referance books.

Data Analysis:

The process of analysis was done through, frequency table, percentage,

average, graphs and pie charts.

Findings & Conclusion By: It will be based on…

Questionnaires filled up.

Interviews with retailers.

Meetings with seniors.

Data Analysis and Research facts.

Secondary Data.

37


Marketing Mix For Amul Ice-Cream In Nadiad City

Product

Price

Place (distribution)

Promotion

People

These variables are known as the marketing mix or the 5 P's of

marketing. They are the variables that marketing managers can control in

order to best satisfy customers in the target market. The firm attempts to

generate a positive response in the target market by blending these five

marketing mix variables in an optimal manner.

1. Product:-

The product is the physical product or service offered to the consumer. In

the case of physical products, it also refers to any services or conveniences that

are part of the offering. Product decisions include aspects such as function,

appearance, packaging, service, warranty, etc.Amul found the demand for Ice-

cream in Nadiad city and tried to manufacture product as per preference of

people. But Amul failed to fetch broad market for Ice-cream.

Referring the product, all characteristics were available what people wanted

like Packaging, satisfactory information, availability and long life.But only

loophole was Amul did not have multiple options for Flavors, which let the

customers move to another option.

38


2. Price:-

Pricing decisions should take into account profit margins and the probable pricing

response of competitors. Pricing includes not only the list price, but also discounts,

financing, and other options such as leasing.

Price is affected by mainly three reasons i.e. cost of the product, price of

competitors, demand prevailing in market, channels to deliver product to end users.

Amul Ice-cream had not much problems to fix price in the market.

3. Place:-

Place (or placement) decisions are those associated with channels of

distribution that serve as the means for getting the product to the target customers.

The distribution system performs transactional, logistical, and facilitating

functions. Distribution decisions include market coverage, channel member

selection, logistics, and levels of service.

Customer cannot go to production place they have been provided the products

at their place which requires to incur extra cost. Therefore, it needs to design

proper system of distribution.

Factors influencing for place;

Inquiry of area : Nadiad

Product network : Wide

Nature of product : Fast moving perishable

Wholesale trading : Company offers to retailers

Storage facility : Refrigerated godown

Modes of supply : Refrigerated vans

39


4. Promotion:-

Promotion decisions are those related to communicating and selling to potential

consumers. Since these costs can be large in proportion to the product price, a

break-even analysis should be performed when making promotion decisions. It is

useful to know the value of a customer in order to determine whether additional

customers are worth the cost of acquiring them. Promotion decisions involve

advertising, public relations, media types, etc.

5. People:-

People decisions are those related to customer service. How do you want your

workers to appear to your customers? There are a range of service profiles from service

with a smile - McDonald's, to classier Nordstroms, to plain rude - Ed Debevic's. The

function of people to present an appearance, an attitude, etc.

40


DETAIL

FINDINGS

41


ANALYSIS & FINDINGS Retailer survey was conducted in Nadiad city from 3

rd June to 12

th

June, 2010. Each outlet keeping ice-cream (branded or local) was visited

personally. Retailers were administered with a questionnaire regarding

WD Behavior, Regular service, Range of Product Availability, POP

Support, ROI, Quality of Product, Replacement and Condition of

product at delivery and Consumer demand. Details regarding retailer‟s

ice-cream business, policies of other ice-cream brands, benefits etc were

also studied.

Responses were captured by way of discussions with the retailers

and then noted down.

42


FINDINGS

ICE-CREAM BRAND MARKETSHARE

In Nadiad market share of ice-cream is estimated to be at around

Rs. 23, 55,000 per month. Vadilal is the market leader with 29%

share. Others local brand of the city is in the second position with

the market share of 27%. Havmor is in the third position in the

market with the 23% market share. And Amul is in the fourth

position with the lowest market share of only 22%.

There are 54 ice-cream outlets in the Nadiad.

Vadilall has better reach with 25 outlets selling Amul ice-cream.

Amul and others local ice-cream brand has 13 outlets. Havmor has

12 outlets only.

Each Amul, Vadilal and Other Local ice-cream brand are the

market leader of at least 1 zone.

21.76%28.58%

22.93%26.73%

IC Brand Marketshare

AMUL VADILAL HAVMOR OTHERS

43


Data & Graph Analysis

ICE-CREAM BRAND SELLING

The total ice cream market share of Nadiad city is estimated to

be at around Rs. 2355000 per month. Vadilal leads the market with the

business of Rs. 673000 per month with almost 29% of market share

serving 25 outlets. Other local outlets are in the second position in the

market with the business of Rs. 629500 per month with almost 27% of

market share with serving 13 outlets. Havmor is in the third position in

the market with the business of Rs. 540000 per month with almost 23%

of market share with serving 12 outlets. And Amul is in the last position

in the market with the business of Rs. 512500 per month with almost

22% of market share with serving 13 outlets.

0

100000

200000

300000

400000

500000

600000

700000

800000

Amul Vadilal Havmor Others

Ice-Cream Brand Business(Rs.)

Brand Amul Vadilal Havmor Others Total Monthly Selling 512500 673000 540000 629500 2355000

44


Among the three major zone of the city Vadilal is the market

leader of 1st zone (Station Road, Mill Road, Amdavadi bazaar etc.),

Other local brand is the market leader of 2nd

zone (Santram Road,

Vaishali Road, Bus Station etc.), and Amul is the market leader of 3rd

zone (Vaniyavad, Dairy Road etc.). Thus, Vadilal, Amul, and Other

local brands are the market leader of at least one zone, but, Havmor

can‟t get the leadership of any zone.

45


RETAILER SATISFACTION


Parameter Retailer Satisfaction

Brand Amul Vadilal Havmor Others Satisfaction Level 4.21 4.4 4.16 3.78

(1- Poor / 2- Below Average / 3- Average / 4- Good / 5- Excellent)

Among 54 outlets on an average 4.21 retailers of Amul are satisfied with

WD behavior, 4.40 retailer of Vadilal are satisfied with WD behavior, 4.16

retailer of Havmor are satisfied with WD behavior, 3.78 retailer of Other

local brands are satisfied with WD behavior.

This parameter mostly relates to how the wholesale distributer interacts with

retailers, when they demand product to be delivered, services, POP support,

replace the goods etc. It also relates to passing on schemes to retailers.

Some times cups are empty and there are less spoons in the ice cream boxes

as compared to the cups in the packet which creates lots of problem to

retailers in selling the ice cream in the market.

3.43.53.63.73.83.9

44.14.24.34.44.5


Retailer Satisfaction

46


BRAND NAME Data & Graph Analysis

Parameter Brand Name

Brand Amul Vadilal Havmor Others Satisfaction Level 4.21 4.63 4 3.29


Brand name is also a major factor to estimate the company‟s status in the

current market. Brand name helpful for the retailers to decide which brand of

ice cream should be sale in the market for good margin with compare to

other brands.

According to survey conducted in the market, there are average 4.21 retailers

are satisfied with the brand name of Amul, there are average 4.63 retailers

are satisfied with the brand name of Vadilal, there are average 4.00 retailers

are satisfied with the brand name of Havmor and an average 3.29 retailers

are satisfied with other local ice cream brand name.

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5


Brand Name

47


POP SUPPORT


Parameter POP Support Brand Amul Vadilal Havmor Others Satisfaction Level 3.71 4.08 3.67 3


The survey attempt to judge the satisfaction level of retailers on POP

Support provided by the WD.

We found that on an average on an average 3.71 retailers of Amul are

satisfied with POP support, 4.08 retailers of Vadilal are satisfied with POP

support, 3.67 retailers of Havmor are satisfied with POP support, and on an

average 3.00 retailers of other local brands are satisfied with POP support. Point Of Purchase (POP) support is the magical tool of the modern

competitive market. With the help of POP retailers sale their product very

easily. POP support is not provided as per the demand of retailers as it plays

significant role in attracting customer.

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5


POP Support

48


WD BEHAVIOR


Parameter WD Behaviour

Brand Amul Vadilal Havmor Others Satisfaction

Level 3.57 4.33 4.08 4


There are only three main distributer in city. First one was Smita traders is the

main distributer of Amul ice-cream. Second was Aditya agency is the main

distributer of Havmor ice-cream. Third was Pritam Agency is the main

distributer of Vadilal ice-cream.

According to survey conducted in Nadiad, an average 3.57 retailers of Amul are

satisfied with WD Behavior, 4.33 retailers of Vadilal are satisfied with WD

Behavior, 4.08 retailers of Havmor are satisfied with WD Behavior, and on an

average 4.00 retailers of other local brands are satisfied with WD Behavior.

WD (Wholesaler/Distributer) Behavior is also important for the company to

motivate the retailers for improving the selling of company. By the good behavior

with retailers, Retailers can motivate to increase the selling of company.

00.5

11.5

22.5

33.5

44.5

5


WD Behaviour

49


SERVICES


Parameter Services

Brand Amul Vadilal Havmor Others Satisfaction Level 3.36 4.65 4.62 4.25


Service is very important for retailers. Services are major tool for satisfying

retailers. With providing the good Services to retailers, Retailers can

motivate to increase the selling of company.

According to survey conducted on to know the market share of different

brands we also found that, an average 3.36 retailers of Amul are satisfied

with Services, 4.65 retailers of Vadilal are satisfied with Services, 4.62

retailers of Havmor are satisfied with Services, and on an average 4.25

retailers of other local brands are satisfied with Services prvided by the

company‟s WD (Wholesaler/Distributer).

00.5

11.5

22.5

33.5

44.5

5


Services

50


PRODUCT AVAILABILITY


Parameter Product Availability Brand Amul Vadilal Havmor Others Satisfaction Level 3.36 4.61 4.25 4.27


Flavors and packs availability is one of the key elements of ice-cream

business. Every retailer would like to have maximum range of flavors and

packs available with him so no consumer leaves empty hand. During the

survey, we attempted to get information on the satisfaction of retailers on

availability of the product range during season time i.e. summer.

Among 54 outlets there are on an average 3.36 retailers of Amul are satisfied

with Product Availability, 4.61 retailer of Vadilal are satisfied with Product

Availability, 4.25 retailer of Havmor are satisfied with Product Availability,

4.27 retailer of Other local brands are satisfied with Product Availability.

00.5

11.5

22.5

33.5

44.5

5


Product Availability

51


Mostly the wholesale distributer of AMUL ice creams are not interacts with

retailers, when they demand product to be delivered they could not supply

enough stock of various flavor of ice creams on the time. Some times cups

are empty and there are less spoons in the ice cream boxes as compared to

the cups in the packet which creates lots of problem to retailers in selling the

ice cream in the market.

52


CONSUMER DEMAND


Parameter Consumer Demand Brand Amul Vadilal Havmor Others Satisfaction Level 3.86 4.22 3.75 3.73


Consumer demand is very important for retailers without consumer demand

retailers can‟t sale the product.

According to survey conducted on an average 3.86 retailers of Amul are satisfied

with Consumer Demand, 4.22 retailers of Vadilal are satisfied with Consumer

Demand, 3.75 retailers of Havmor are satisfied with Consumer Demand, and on an

average 3.73 retailers of other local brands are satisfied with Consumer Demand.

Consumer Demand is the parameter to Shaw the demand in market for ice cream

by the different types of customer. Here, you can see the highest satisfaction level

of Consumer Demand for the Vadilal ice cream with an average of 4.22 and the

lowest satisfaction level of Consumer Demand for the local brands of ice cream

with an average of 3.73.

3.4

3.5

3.6

3.7

3.8

3.9

4

4.1

4.2

4.3


Consumer Demand

53


CONDITION OF PRODUCT ON DELIVERY Data & Graph Analysis

Parameter Cond. Of Pd. On delivery Brand Amul Vadilal Havmor Others Satisfaction Level 4.29 4.7 4.58 4


The survey attempted to judge the satisfaction level of retailers on the

quality of products delivered to them. Here, we tried to find if deshaped or

melted ice-cream is not delivered to the retailer.

According to survey conducted on an average 4.29 retailers of Amul are

satisfied with Condition of product on delivery, 4.70 retailers of Vadilal are

satisfied with Condition of product on delivery, 4.58 retailers of Havmor are

satisfied with Condition of product on delivery, and on an average 4.00

retailers of other local brands are satisfied with Condition of product on

delivery.

Some times stock of ice cream delivered by distributer are not much fresh

and melted also.

3.6

3.8

4

4.2

4.4

4.6

4.8


Cond. Of Pd. On delivery

54


REPLACEMENT


Parameter Replacement Brand Amul Vadilal Havmor Others Satisfaction Level 2.5 3.7 3.75 3.6


The defective product which is delivered to the retailers should be replaced as

does not purchase the melted ice-cream and also it can create bad impression in

the mind of consumer for a particular brand.

In this survey, an average 2.5 retailers of Amul are satisfied with Replacement

by the company‟s distributers, 3.70 retailers of Vadilal are satisfied with

Replacement by the company‟s distributers, 3.75 retailers of Havmor are

satisfied with Replacement by the company‟s distributers, and on an average

3.60 retailers of other local brands are satisfied with Replacement provided by

the company‟s distributers.

It implies that retailers are not much happy with replacement process so

company should replace the damage product which is delivered to the retailers.

0

0.5

1

1.5

2

2.5

3

3.5

4


Replacement

55


RETURN ON INVESTMENT Data & Graph Analysis

Parameter ROI Brand Amul Vadilal Havmor Others Satisfaction Level 3.27 3.18 4 4.07


Return on Investment was the major parameter of the survey; because of this

parameter we became able to know the satisfaction level of return on

investment by the retailers.

In Nadiad city, among 54 outlets there are on an average 3.27 retailers of

Amul are satisfied with Return on Investment, 3.18 retailer of Vadilal are

satisfied with Return on Investment, 4.00 retailer of Havmor are satisfied

with Return on Investment, 4.07 retailer of Other local brands are satisfied

with Return on Investment by them in the company.

Mostly the retailers of HAVMOR Ice cream and Other Local Brands are

satisfied with their investment. But, AMUL and VADILAL also able to

provide an average margin on investment by the retailers.

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5


ROI

56


FREQUENCY OF DELIVERY IN DAYS/WEEK Data & Graph Analysis

Parameter Frequency of delivery in

Days/week Brand Amul Vadilal Havmor Others Demand for Stock 2.5 2.88 4.58 4.28


Frequency of delivery is Shaw that how many times stocks are demanded by

the retailers in Days/week.

According to survey conducted in Nadiad, retailers of Amul ice cream are

demand for stock on an average 2.5 days/week, retailers of Vadilal ice cream

are demand for stock on an average 2.88 days/week, retailers of Havmor ice

cream are demand for stock on an average 4.58 days/week, retailers of Other

local brand ice cream are demand for stock on an average 4.28 days/week.

Amul

Vadilal

Havmor

Others

Freq

uen

cy o

f d

eliv

ery

in

Day

s/w

eek

0 1 2 3 4 5

57


Business wise Frequency Of Delivery

Parameter Frequency of Delivery

Category Below Rs.25000

Rs.25000-Rs.50000

Above Rs.50000

Average Demand 2.81 3.41 4.5

There are divisions of business in to three types.

o Below Rs.25000

o Rs.25000 – Rs.50000

o Above Rs.50000

There are 17 shops in the 1st & 2

nd types of business and their average of

stock demand is 2.81 and 3.41 respectively.

In the third type of business above Rs. 50000 the average of stock demand is

4.5 and 20 shops.

00.5

11.5

22.5

33.5

44.5

5

Below Rs.25000 Rs.25000-Rs.50000 Above Rs.50000

Freqancy of Delivery

58


PRESENT BUSINESS SCENARIO Total Market Share of Ice cream:

The total ice cream market share of Nadiad city is estimated to

be at around Rs. 2355000 per month. Vadilal leads the market with the

business of Rs. 673000 per month with almost 29% of market share

serving 25 outlets. Other local outlets are in the second position in the

market with the business of Rs. 629500 per month with almost 27% of

market share with serving 13 outlets. Havmor is in the third position in

the market with the business of Rs. 540000 per month with almost 23%

of market share with serving 12 outlets. And Amul is in the last position

in the market with the business of Rs. 512500 per month with almost

22% of market share with serving 13 outlets.

Retail Distribution:

DATA IN PERCENTAGE:

Retail Distribution in


21% 39% 19% 21%

0%5%

10%15%20%25%30%35%40%


Retail Distribution

59


There are 54 outlets of various brand of ice cream in Nadiad, but some of

them keep more than one brand and some of them are multi branded outlets

too. By this way there are 63 outlets in the city.

If we look at the distribution of retail outlets between various brands of ice

cream, VADILAL is the topper of the market in terms of outlets coverage. It

Covers 39% of the total ice cream selling outlets. AMUL and OTHER

LOCAL brands of ice cream each covers the 21% of the total ice cream

selling outlets, and grabs the second position in the ice cream market in the

form of outlets. HAVMOR is the last one in the ice cream market, which

covers 19% of the total ice cream selling outlets.

21%

39%

19%

21%

Amul

Vadilal

Havmor

Others

60


ZONE WISE BUSINESS DETAILES OF RETAIL OUTLETS.

Zone wise Distribution

Zone Amul Vadilal Havmor Others Total

1 2 16 5 2 25

2 6 6 4 9 25

3 5 3 3 2 13

Total 13 25 12 13 63

There are 54 ice-cream outlets in the city across the area like Santram Road,

Vaishali Road, College Road, Vaniyawad, Vorwad, Dairy Road, Mill Road etc.

Vadilal has better reach with 25 outlets selling Vadilal Ice cream. Amul and Other

local brand have 13 outlets. Havmor has 12 outlets in the whole market.

But looking at the distribution of various brands across different area, there are

three different areas and, we can see that AMUL, VADILAL and OTHER

LOCAL brands each are leader of one zone.

0

2

4

6

8

10

12

14

16


61


Zone & Brand wise Business

ZONE 1 Area Outlet Name No

. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Amdavadi Bazzar

Ambica Vijay Coldrinks 1 400 50000 50000

Total (RS.) 50000 50000

Percantage 100.00% 100.00

%

Area Outlet Name No

. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Jawaharnagar Hariom Traders 1 400 20000 20000

Puja General Store 1 400 35000 35000

T.K.Amul Parlour 1 400 30000 25000 55000

Dipak Provision Store 1 300 25000 25000

Sundar Provision Store 1 400 22000 22000

Total in Rs. 65000 72000 20000 15700

0

Total in Percentage 41.40

% 45.86% 12.74% 100%

Area Outlet Name No

. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Mill Road

Ganesh Provision Store 1 400 10000 5000 15000

Gurukrupa Agency 1 400 35000 35000

Gokul Dairy 1 400 55000 55000

Total in Rs. 65000 35000 5000 105000

Total in Percantage 61.90% 33.33% 4.76% 100.00

%

62


Area Outlet Name No

. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Mishion Road

Renison Provision Store 1 400 60000 60000

M.K.& Sons 1 500 25000 25000

Total (Rs.) 25000 60000 85000

Percantage 29.41

% 70.59% 100.00

%

Area Outlet Name No

. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Pavanchakki Road

Amarlaxmi Coldrinks 1 400 30000 30000

Rupkumar Kirana Store 1 400 4000 4000

Total (Rs.) 34000 34000


%

Area Outlet Name No.

of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Pij Road

Icy Spicy Food Corner 1 450 5000 5000

Total (RS.) 5000 5000

Percantage 100.00% 100.00%

Area Outlet Name No

. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Dabhan Bhagol

Devnarayan Icecream 1 400 67500 67500

Royal Icecream 2 300 20000 20000 40000

Total (RS.) 20000 87500 107500

Percantage 18.60% 81.40% 100.00

%

63


Area Outlet Name No

. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Bhavsarvad Keshavlal Bhavsar 1 450 20000 20000

Yamuna General Store 1 450 35000 35000

Total (RS.) 20000 35000 55000

Percantage 36.36% 63.64% 100.00

%

Area Outlet

Name No. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Saloon bazaar

Sardar Sarbat 1 300 15000 15000

Total (RS.) 15000 15000

Percantage 100.00% 100.00%

Area Outlet Name No

. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Vorwad

New Amar Coldrinks House 1 450 15000 15000

Amar Coldrink House 1 450 15000 15000

Honest Coldrink House 1 400 12000 12000

Total (Rs.) 42000 42000


%


of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Kharakuwa Shradhha Corner 1 300 10000 10000

Total (Rs.) 10000 10000

Percantage 100.00% 100.00%

64


ZONE 2 Area Outlet Name No

. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Station Road

Satyanarayan Ice Cream 2 500 72000 72000

Manohar Ice Cream 2 500 54000 54000

Rajasthan Icecream 5 500 36000 36000

Total (Rs.) 162000 162000

Percantage 100.00

% 100.00

%

Area Outlet Name No. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Bus Station Jalaram Rasghar 1 400 5000 5000

Satyanarayan Ice Cream 2 2 500 60000 60000

Total (Rs.) 5000 60000 65000

Percantage 7.69% 92.31% 100.00

%


Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Sindhi Market

Laxman Amul Parlour 1 400 50000 50000

Total (Rs.) 50000 50000

Percantage 100.00% 100.00%

Area Outlet Name

No. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Railway Platform II

Amul Parlour 2 300 52500 52500

Railway Platform I Amul Parlour 1 300 60000 60000

Total (Rs.) 112500 112500

Percantage 100.00% 100.00%

65



of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Santram Road Sawaliya Icecream 1 250 30000 30000

Fix Coldrinks 3 700 70000 70000

Pritam Coldrinks 2 350, 450 90000 90000

Janta Icecream 1 350 15000 15000

Rajkamal Icecream 2 350 40000 40000

Sadhna Pan Cornar 1 400 25000 15000 40000

Total (Rs.) 55000 160000 55000 15000 285000

Percantahe 19.30% 56.14% 19.30% 5.26% 100.00%


Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Paras Cinema Jay Corner 2 500 40000 40000

Master Icecream 3 450 65000 85000 150000

Total (Rs.) 40000 65000 85000 190000

Percantage 21.05% 34.21% 44.74% 100.00%


of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Vaishali Road

Payal Provision Store 2 500, 500 15000 20000 10000 45000

Sawaliya Icecream 2 250, 250 55000 55000

Total (Rs.) 15000 20000 10000 55000 100000

Percantage 15.00% 20.00% 10.00% 55.00% 100.00%


of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Rabariwad Navrang Softdrinks 1 450 20000 20000

Total (Rs.) 20000 20000

Percantage 100.00% 100.00%

66


Area Outlet

Name No. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

I.G.Marg Patel bakers 1 350 60000 10000 70000

Total (Rs.) 60000 10000 70000

Percantage 85.71% 14.29% 100.00%

67


ZONE 3


of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Kidney Hospital New Gocool Dairy Parlour 1 350 65000 65000

Total (Rs.) 65000 65000

Percantage 100.00% 100.00%

Area Outlet

Name No. of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Dairy Road

Shree Agency 1 450 15000 55000 70000

Boscy Parlour 4 600 90000 90000

Total (Rs.) 15000 55000 90000 160000

Percantage 9.38% 34.38% 56.25% 100.00%


of DF

Capacity of DF

AMUL (Rs.)

VADILAL (Rs.)

HAVMOR (Rs.)

OTHER (Rs.)

Total (Rs.)

Vaniyavad Amul Parlour 2 300 30000 30000

Teen-cream Parlour 2 450 85000 85000

Jay Maharaj Corner 3 200 80000 80000

New Your Choice 1 450 50000 50000

Hardik Farsan 1 350 25000 25000

Raviraj Provision Store 1 400 35000 35000

Bansari Corner 1 450 20000 20000

Total (Rs.) 100000 60000 85000 80000 325000

Percantage 30.77% 18.46% 26.15% 24.62% 100.00%

68


By this zone wise distribution of ice-cream outlets we found that;

There are 54 outlets of ice-cream in Nadiad city, for our analysis purpose we

have divided the city in three major zones. In first zone the area come like

Amdavadi Bazaar, Vorwad, Mill Road, Mishion road, Pavanchakki, Pij

Road, Rail way Station, Dabhan Bhagol, Bhavsharwad etc. In second zone

the area come like Sindhi Market, Santram Road, Bus Stand, Paras Cinema,

I.G.Marg, Vaishali Road, etc. And in the third zone of the city area come

like Dairy Road, Vaniyawad.

Among the three major zone of the city Vadilal is the market leader of 1st

zone, other local brand is the market leader of 2nd

zone, and Amul is the

market leader of 3rd

zone.

Thus, Vadilal, Amul, and Other local brands are the market leader of at least

one zone, but, Havmor can‟t get the leadership of any zone.

Vadilal has better reach with 25 outlets selling Vadilal Ice cream. Amul and

Other local brand have 13 outlets. Havmor has 12 outlets in the whole

market.

Vadilal is the market leader with 29% share. Others local brand of the city is

in the second position with the market share of 27%. Havmor is in the third

position in the market with the 23% market share. And Amul is in the fourth

position with the lowest market share of only 22%.

69


SUGGESTIONS

In order to maintain and increase the sales of various flavor of ice cream

in the Nadiad city, the following recommendations regarding AMUL ice cream;

particularly for Brand Name, WD Behavior, Services, POP Support, Product

Availability, Replacement, Condition of product on delivery etc, are hereby

suggested:

First and foremost AMUL should take proper action in order to improve

services, because it is having more sales in parlors but it has poor sale in

other AMUL shops because of poor service so in order to gain more

market share it should focus every retailer.

Company should use brand ambassador for advertising purpose which is

suitable to the products and helpful to attract each age segment.

As flavors and packs availability is one of the key elements of ice cream

business, so it should provide maximum range of flavors and packs to

retailers so that no consumer leaves empty-handed.

As we know that Point Of Purchase plays significance role in attracting

the customer, motivate the retailers to increase the selling of goods and

creating brand positioning in the mind of consumer so POP Support

should be given by the WD as compare in order to increase the sales of

ice cream.

The company should replace the damage products of retailers. The

scheme benefits should be passed on to retailers. Sometimes cup are

empty and there are less spoons in the packets too, as compared to the

cup in the packet so such mistakes should be corrected in order to

increase the sales.

Company should introduce sales promotion schemes like free weight,

cutting knife, contest, free gifts etc.

Company should have to open more APO‟S and “A” class outlets

because total number of outlets in the city is very less in compare to its

major competitor VADILAL.

70


CONCLUSION

As we know that AMUL is very big organization and market leader of

DAIRY PRODUCTS. It has maximum market share in Milk, Butter and Cheese,

which are its major products. As we know that AMUL is co-operative organization

but ice cream industry is a profitable industry we can‟t ignore it. After having in

depth survey of the 54 retailers located at the different areas of Nadiad, ultimately I

can come to the conclusion part of the project. With the help of research company

can find out its weak points in ice cream products and it can improve its market

share through rectifying the mistakes. People have believe in AMUL products and

will accept its ice cream also if effective actions are taken.

The product is performing partial satisfactory in different areas. The major

issuers that lead to dissatisfaction of the retailers are lack of promotion of

the products and service provided to them, while price and place of product

is also not satisfactory.

In some areas distributors are not cooperating with retailers and also getting

wrong advantage of the company‟s monopoly, which drives retailers to

change their mind towards rival‟s product.

Company must come up with new sales promotion schemes like free

weight, cutting knife, contest, free gifts etc. in order to increase its market

share.

Company must come up with maximum range of flavors and packs to

retailers so that no consumer leaves empty-handed.

71


Company should have to open more APO‟S and A class outlets because

total number of outlets in the city is very less in compare to it‟s major

competitor VADILAL.

POP Support should be given by the WD as per the demand of retailers in

order to increase the sales of ice cream.

The company should replace the damage products of retailers. The scheme

benefits should be passed on to retailers. Sometimes cup are empty and

there are less spoons in the packets too, as compared to the cup in the packet

so such mistakes should be corrected in order to increase the sales.

Quality is the dominating aspect which influence consumer to purchase

AMUL Ice cream, so it should be maintained by the WD.

The positive thing is that, company is still successful to sustain its Brand

Image as well as the loyalty of customers. So, all a company need to do is to

increase its sales promotion to attract a customer, which ultimately

increases retailer‟s satisfaction level.

72


LEARNING EXPERIENCE During this whole summer training, I have experienced lot of market related

works of the ice-cream business.

I become able to know the current market position of various brand of ice-

cream.

Because of this training I have to learn that; How to interact with the

retailers in the real field of industry business.

I got detailed information about the Brand Name, WD Behavior, Service

provided, Product Availability, POP Support, ROI, Replacement, Consumer

Demand, Quality of different Brand of ice-cream.

I got information about the frequency of delivery of various brand of ice-

cream to retailers.

Now a day I am aware about the satisfaction level of retailers of each brand

of ice-cream.

I become able to survey of various product of ice-cream business.

Although AMUL ice-cream has a strong position in the market but their

Service, Replacement, and Product availability is poor in comparison to

other brands like Vadilal and Havmor.

jatin shah 2010 summer project cksvim

Documents

project report

project application

jatin shah

training programme

intensive training

opportunity of training

summer training

hod of marketing department