1. i
TO FIND OUT THE MARKET POTENTIAL OF AMUL SLIM
TRIM IN THANE
With Amul GCMMF
Summer Internship Project Report
Submitted in partial fulfilment of the requirement for the award of
POST GRADUATE DIPLOMA IN MANAGEMENT
(PGDM)
Submitted to
SIES COLLEGE OF MANAGEMENT STUDIES
Nerul, Navi Mumbai
Submitted by
Ankita Singh
Roll No - 03
PGDM – Marketing
2013-15
2. ii
Declaration
I,Ms Ankita Singh, studying in the second year of POST GRADUATE
DIPLOMA IN MANAGEMENT (PGDM) at SIES College of Management
Studies, Nerul, Navi Mumbai, hereby declare that I have completed the
Summer Internship Project titled “To study the market potential of Amul
Slim N Trim” as a part of the course requirements for POST GRADUATE
DIPLOMA IN MANAGEMENT (PGDM) Program.
I also declare that the work undertaken by me is original and has not been
copied from any sources. I further declare that the information presented in
this project is true and original knowledge and has not been submitted to
SIESCOMS or any other Institute for any other examination.
Signature of the Student Date:
Ankita Singh
Roll No.: 03
4. iv
Certificate by Faculty Project Guide
This is to certify that Ms Ankita Singh, studying in the second year of POST
GRADUATE DIPLOMA IN MANAGEMENT (PGDM) at SIES College of
Management Studies, Nerul, Navi Mumbai, has completed the Summer
Internship Project titled “To find out the market potential of Amul Slim N
Trim in Thane” as a part of the course requirements for POST GRADUATE
DIPLOMA IN MANAGEMENT (PGDM) Program.
Signature of the Faculty Guide
Name:
Date:
5. v
Acknowledgement
A Project Report is never successfully completed without the guidance from
appropriate people. So, now it is the right time to express my sincere gratitude
towards all those, who have helped me to complete this project.
I would like to express my thanks to our Mentor Mr.Navin Putta(Territory
Sales In-charge, AMUL) for giving me this opportunity. I take this
opportunity to express my thanks to my guide Professor Deepa Donde for her
exemplary guidance, monitoring and constant encouragement throughout the
course of this project.
And I am greatly thankful to all the advisers who helped me knowingly or
unknowingly for getting the information and taking interest in this report. I am
also thankful to the entire faculty and staff of SIESCOMS without which this
project would not be a successful one.
Signature
ANKITA SINGH
Date:
6. vi
Executive Summary
Introduction
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) is India's
largest food product marketing organization with annual turnover (2012-13)
US$ 2.54 billion.
It is the Apex organization of the Dairy Cooperatives of Gujarat, popularly
known as 'AMUL', 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. It is exclusive marketing organization of 'Amul' and
'Sagar' branded products.
Objectives and Need
The main objective of the research is to bridge the gap between the
distributors and the retailers. By eradicating such problems a lot can be
improved. It is also important to teach the retailer and make him aware of the
new launches in the market. Need of the research is to tap the untapped market
by promoting the new launches for various segments in the market. To come
up with various promotional activities which helps the company to push its
newly launched as well as existing products
Market Research
The research is conducted by collecting data from four distributors and by
visiting retailers from various beats. The sample is almost 25 retail outlets
from every beat. The research is done for the period of three months in
different areas of thane. The research was basically on fours factors –
Availability, Awareness, Visibility and Placement.
7. vii
Data Analysis
Data analysis was done of the information collected from distributors and the
retail outlets. Four main areas were studied which are as follows:-
Retailer’s issues
Types of issues
Potential outlets
Refrigeration facility
Strategic models
To support the research, some strategic models were used to analyze and
obtain the correct picture of the results identified. These models are theoretical
but still find practical importance in strategy driven businesses. Following
models and tools were used:-
SWOT Analysis
Product life cycle
Product mix
Segmentation, Targeting and Positioning
Conclusion
‘‘AMUL will be an outstanding marketing organization, with specialization in
marketing of food and dairy products, both fresh and long life with customer
focus and information technology integration. Some of the important future
plans are as follows:-
Installing bulk milk chillers and automatic milk collection systems in
all their village cooperative societies.
Expansion of distribution network, creative marketing, consumer
education and product innovation
8. viii
Table of Contents
Sr.No Chapter Name Page No.
1. Introduction……………………………….……….…………..01
1.1 Company Overview………...………………….……...01
1.2 Background of the project…...………………..……....09
1.3 Objectives…..……………..………………….………..13
1.4 Scope of the project……………...…………….……....15
1.5 Purpose and Significance of the Project...….................15
1.6 Limitations of the Project……………………………...16
2. Review of Literature…….....…….……………………..……..17
3. Methodology.............................................................................21
3.1 Research Objectives and Design.……………………..21
3.2 Sources of Data Collection……...……...….…………24
4. Data Analysis ……….………………………………………..26
5. Conclusion……………………………………..……………..48
6. Recommendation……………………………………………..49
7. References…………..………………………….….…............50
8. Annexures...………….…………………………....………….51
9. 1
1. INTRODUCTION
1.1 Company Overview
Fast-Moving Consumer Goods (FMCG) or Consumer Packaged
Goods (CPG) are products that are sold quickly and at relatively low cost.
Examples include non-durable goods such as soft drinks, toiletries, Over-the-
counter drugs, toys, processed foods and many other consumables. Though the
profit margin made on FMCG products is relatively small (more so for
retailers than the producers/suppliers), they are generally sold in large
quantities; thus, the cumulative profit on such products can be substantial.
FMCG is probably the most classic case of low margin and high volume
business.
Fast-moving consumer electronics are a type of FMCG and are typically low
priced generic or easily substitutable consumer electronics, including mobile
phones, MP3 players, game players, and digital cameras which are of
disposable nature.
FMCG need serious sales treatment for their products. They need to make sure
that the right stores are stocking their products and they need to ensure that
consumers are actually consuming their goods. FMCG sales initiatives can be
a great way to boost a company’s ad campaigns and actively influence sales
activity.
FMCG need serious sales treatment for their products. They need to make sure
that the right stores are stocking their products and they need to ensure that
consumers are actually consuming their goods. FMCG sales initiatives can be
10. 2
a great way to boost a company’s ad campaigns and actively influence sales
activity.
People who pursue careers in FMCG sales are required to showcase a
company’s products to retail companies, or directly to consumers in shopping
centres, supermarkets and other retail outlets. Their overall objective is to
improve sales figures and boost revenue.
About GCMMF:-
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) is India's
largest food product marketing organization with annual turnover (2013-14)
US$ 3.1 billion. Its daily milk procurement is approx 13 million lit per day
from 16914 village milk cooperative societies, 17 member unions covering 24
districts, and 3.18 million milk producer members
Amul Brand:-
GCMMF (AMUL) has the largest distribution network for any FMCG
company. It has nearly 50 sales offices spread all over the country, more than
5000 wholesale dealers and more than 700000 retailers.
Amul became the world's largest vegetarian cheese]
and the largest pouched-
milk brand.
AMUL is also the largest exporter of dairy products in the country. AMUL is
available today in over 40 countries of the world. AMUL is exporting a wide
variety of products which include whole and skimmed milk powder, cottage
cheese (Paneer), UHT milk, clarified butter (Ghee) and indigenous sweets.
The major markets are USA, West Indies, and countries in Africa, the Gulf
Region, and SAARC neighbours, Singapore, The Philippines, Thailand, Japan
and China, and others such as Mauritius, Australia, Hong Kong and a few
11. 3
South African countries. Its bid to enter the Japanese market in 1994 did not
succeed, but it plans to venture again.
In September 2007, Amul emerged as the leading Indian brand according to a
survey by Synovate to find out Asia's top 1000 brand.
Angered by the unfair trade practices, the farmers of Kaira approached Sardar
vallabh bhai patel under the leadership of local farmer leader Tribhuvandas K.
Patel. He advised them to form a cooperative and supply milk directly to the
Bombay Milk Scheme instead of Polson. He sent Morarji Desai to organise
the farmers. In 1946, the milk farmers of the area went on a strike which led to
the setting up of the cooperative to collect and process milk..Milk collection
was decentralized, as most producers were marginal farmers who could
deliver, at most, 1–2 litres of milk per day. Cooperatives were formed for each
village, too.
15. 7
The Amul Model is a three-tier cooperative structure. This structure consists
of a dairy cooperative society at the village level affiliated to a milk union at
the district level which in turn is federated into a milk federation at the state
level. Milk collection is done at the village dairy society, milk procurement
and processing at the District Milk Union and milk and milk products
marketing at the state milk federation. The structure was evolved at Amul in
Gujarat and thereafter replicated all over the country under the Operation
Flood programme. It is known as the 'Amul Model' or 'Anand Pattern' of dairy
cooperatives.
The main functions of the VDCS are:
Collection of surplus milk from the producers of the village and payment
based on quality and quantity,
Providing support services to the members like veterinary first aid,
artificial insemination services, cattle-feed sales, mineral mixture sales,
fodder and fodder seed sales, conducting training on animal husbandry
and dairying,
Selling liquid milk for local consumers of the village,
Supplying milk to the District Milk Union.
State Cooperative Milk Federation
The main functions of the federation are as follows:
Marketing of milk and milk products processed/manufactured by Milk
Unions,
Establish a distribution network for marketing of milk and milk products,
Arranging transportation of milk and milk products from the Milk Unions
to the market,
Creating and maintaining a brand for marketing of milk & milk products,
16. 8
Providing support services to the Milk Unions and members like technical
inputs, management support and advisory services,
Pooling surplus milk from the Milk Unions and supplying it to deficit Milk
Unions,
Establish feeder-balancing dairy plants for processing the surplus milk of
the Milk Unions,
Arranging for common purchase of raw materials used in
manufacture/packaging of milk products,
Decide on the prices of milk and milk products to be paid to Milk Unions,
Decide on the products to be manufactured at Milk Unions and capacity
required for the same.
Conduct long-term milk production, procurement and processing as well
as marketing planning.
Arranging finance for the Milk Unions and providing them technical
know-how.
Designing and providing training in cooperative development and
technical and marketing functions.
Conflict resolution and keeping the entire structure intact.
Today, there are around 176 cooperative dairy unions formed by 125,000
dairy cooperative societies, having a total membership of around 13 million
farmers on the same pattern, who are processing and marketing milk and milk
products profitably, be it Amul in Gujarat or Verka in Punjab, Vijaya in
Andhra Pradesh, Milma in Kerala, Gokul in Maharashtra, Saras in Rajasthan
or a Nandini in Karnataka. This process has created more than 190 dairy
processing plants spread all over India with large investments by these
farmers' institutions. These cooperatives today collect approximately
23 million kg of milk per day and pay an aggregate amount of more than Rs.
125 billion to the milk producers in a year.
17. 9
1.2 Background of the project and some brief on the title of the
project
Introduction to the Products Distributors and
salesmen
Retail Census
Study market reputation of other distributors
in your assigned territory of
FMCG brands
– Collect data like Name of Agency,
contact person and number,
brands they handle
BTL activities
To Find the Market Potential of Slim and
Trim
Amul Slim and Trim Milk (SnT) is a Skimmed Long Life Milk available in
tetra packs which is specifically made to target consumers who are health and
weight conscious. This milk is made using the UHT processing, Ultra-high
temperature processing, ultra-heat treatment (both abbreviated UHT),
or ultra-pasteurization is the sterilization of food by heating it for an
extremely short period, around 1–2 seconds, at a temperature exceeding 135°C
(275°F), which is the temperature required to kill spores in milk. The most
18. 10
common UHT product is milk, but the process is also used for fruit
juices, cream, soy milk, yogurt, wine, soups, honey, and stews. UHT milk was
invented in the 1960s, and became generally available for consumption in the
1970s.
High heat during the UHT process can cause Maillard browning and change
the taste and smell of dairy products.
UHT milk has a typical shelf life of six to nine months, until oApened. It can
be contrasted with HTST pasteurization (high temperature/short time), in
which the milk is heated to 72°C (161.6°F) for at least 15 seconds.
19. 11
UHT milk has seen large success in much of Europe, where across the
continent as a whole 7 out of 10 Europeans drink it regularly. In fact, in a hot
country such as Spain, UHT is preferred due to high costs of refrigerated
transportation and "inefficient cool cabinets".Europe's largest
manufacturer, Parmalat, had $6 billion of sales in 1999. UHT is less popular in
Northern Europe and Scandinavia, particularly in Denmark, Finland, Norway,
Sweden, the United Kingdom and Ireland. It is also less popular in Greece,
where fresh pasteurized milk is the most popular type of milk.
UHT Milk currently accounts for less than 1% of the total liquid milk market
in India. The product’s high shelf life and convenience, however, has been
driving this market exponentially in the last few years. UHT milk has a very
high shelf life and unopened packs can last for several months without being
spoilt. This makes them extremely popular in areas having milk scarcity and
which lack a proper cold chain infrastructure. The report also suggests that
increasing urbanization and women work participants will increase the
demand for safe, convenient and ready – to - drink milk in India. With UHT
milk being safe and ready - to drink - without the need of boiling, its
popularity among urban households is expected to increase significantly in the
near future.
The early 1980s saw the upsurge in packed milk segments and an urban shift
in the mindset from doodhwala milk to pasteurised milk in bottles and plastic
packets. This was a clear case of value addition; it combined hygiene with
convenience.
In 2006 , the total UHT milk market was estimated to be around 2,44,000
liters
per day as per the CEO of a leading brand at that time. At around 96 million
MT of milk production per annum in 2006 it was accounting for around 0.1 %
20. 12
of the total milk produced. Considering a 20 % YTY growth it is estimated to
have currently reached around 6 lacs liters of milk per day. If we consider this
at the current milk production level it accounts for around 0.2 % of the total
milk produced or 0.6% of the total milk processed (considering this as around
the 35% level as on date). The installed capacity, however, seems to be more
than this and further heavy expansions are on their way in this sector.
To my surprise one of my clients from the North East told me that the demand
for UHT milk is surpassing that for conventional liquid milk formats by a
large margin. This was validated when one of the leading companies in India
stated that it is reaching to even the dhaba level, but otherwise, they're barely
skimming the market's surface. Prices always remain at a premium for regular
packet milk. Recently, one of the regional players has launched their UHT
milk at around Rs 90 a liter for the upper niche of a metro in India.
21. 13
1.3 Objectives:-
Primary Objectives:
To Find the Market potential of Amul Slim N Trim in Thane area.
Secondary Objective
To find out the availability of Amul deep freezers and visual coolers.
This included attending each retail outlet and asking for information
with face to face open interviews
To find out the potential for penetration of Amul products. This was
done with the help of retail census. This helped in knowing the reach
that Amul products could have.
To find out the competitor analysis for AmulDahi. Dahi was segment
where Amul was losing its share. Hence it was important to understand
the competitors.
To analyze SKU’s of rival companies. It was also important to know
SKU of rival competitors to analyze.
To analyze schemes provided by the rival companies. It was important
to know the schemes to beat the competition.
To increase the revenue for that particular area. In order to increase the
revenue, areas were split and two distributors were assigned. This help
in increasing the service as well as revenue of the company.
22. 14
To study the distribution system and to monitor the salesman activity.
The distribution hierarchy was studied and introduction of order book
was noticed.
To Track launch activity of Slim and Trim
23. 15
1.4 Scope of the Project:-
1. The study was carried out in Thane district so its scope is mainly restricted
to Thane.
2. It gives the information about the size of the retail network.
3. It gives information about the services given by the distributor to their
retailers.
4. It gives information about the competitors’ products.
5. It will help in serving consumers in a better way.
6. It will help in giving useful suggestions to the company to improve their
product sales.
1.5 Purpose and Significance of the Project:-
1. To promote the new products in the market.
2. To find out ways to make the customer aware of the company products.
3. To educate the retailers about the company’s products and the benefits that
the customers and they are going to derive out of it.
4. To understand the fat composition and the shelf life of various products
offered by company.
5. To understand the pricing and schemes offered on various products.
6. To reduce price discrimination in the market from the distributors.
24. 16
7. To find out ways and means of increasing the penetration of the new
products through pamphlets distribution and discount coupons.
8. To find out the loss incurred by the distributors due to the unsold stock of
expired new products.
1.6 Limitations of Project:-
This project was worked under several constraints and limitations. Some of
the key limitations are as follows:-
1. The research was limited to few sectors only.
2. Time period of the project was limited, which may not be enough to
understand the whole market.
3. Convenient sampling was used as the mode of conducting the research.
4. Sample size taken was small and as a result it can be concluded that the
chosen sample is not the representative of the whole population.
5. The psychology and the temperament of the retailer play a significant role.
Some respondents are more sensitive as against others who are more tolerant.
A change in the composition of the retailer can affect the outcome adversely
or favorably.
6. Retailers may not have been true in answering various questions and may
be biased at time.
7. The sample size of retailers / wholesalers was limited and therefore
response from them does not reflect the exact view .
25. 17
Chapter 2
Literature Review
By 1956 Amul realized that they need to have a proper positioning statement
in order to establish them as a brand in the Indian market. Amul went ahead
with the positioning statement ‘processed from the purest milk under the most
hygienic condition by a dairy co operative in Gujarat’. Although the statement
threw light on what Amul is but it failed to make an impact on the Indian
consumers. Amul was already in a risky business in the sense that it was
making butter, which is a western concept and was not really that much known
to the Indian taste.
India is a country where ghee is used generously in every meal so Amul had
its competitor in the form of ghee which was already an unavoidable part of
Indian meals. The challenge was to position itself against something that had
been in the country for ages. And in a country like India where people are fond
of tradition and traditional things Amul had a huge barrier to cross. But Amul
didn’t give up. It did what it planned to do i.e it taught the Indian consumers
how to include butter in their day to day lives. In 1966 Amul realized that the
positioning statement needs to be revised and it needed a brand ambassador.
The AS advertising agency was hired to do the needful. Sylvester Dacunha the
managing director of the same advertising agency came up with the idea of the
Amul girl. Instead of going for the standard celebrity brand ambassador
Dacunha thought a chubby little cartoon girl with polka dotted frock is what
amul needed as their brand ambassador. The tagline had also to be decided.
Dacunha’s wife, Nisha was an English professor suggested ‘utterly Amul’ and
to make the impact stronger Sylvester added the word ‘butterly’ to it.
Although ‘butterly’ doesn’t feature in the English dictionary but it made
enough sense in connecting ‘butter’ with Amul. Since then Amul never had to
look back.
26. 18
Now in a country like India where people are highly opinionated, the Amul
girl was a big hit. She flashed in newspapers and billboards with witty and
humorous comments on any social, economical or political issue going in the
country. But Amul did not stop by only creating her. Even after 45 years since
her inception Amul makes full use of her and have never changed their brand
ambassador. The brand recall for Amul reached new heights with her. Amul
made sure that whatever be the issue on which their brand ambassador is
commenting on, the solution should be butter. Be it the failure of the Agni
missile in the 1980’s or be it long wait for Sachin’s 100th
test century in the
recent times, Amul said the solution is provided in Amul butter.
Moreover Amul started the tagline ‘Taste of India’ which reinforced its Indian
connect. The tagline was strong enough to convince Indians that butter is also
meant for them. The TV advertisements showed use of butter in cooking and
paranthas which usually uses ‘ghee’ and Amul was successful once again. Its
multi dimensional approach of teaching Indians how to eat butter, telling them
that butter suits the Indian taste and connecting butter to all Indian issued
worked out well for the company. In the meantime Amul also came up with
the famous Amul song ‘sapnehogayehaisakar’ where it showed how Amulco
operative works and connects all the milk producers in Gujarat. The ad further
reinforced what Amul has done for India and became very popular among the
Indians.
Amul also boasts one of the biggest and widest distribution networks in the
country. With its huge network it made itself available in all parts of the
country and even to those places where its competitors couldn’t reach. It was
an added advantage for the company. And since most of its advertisements
featured in newspapers in the form of print ads it could send its message to all
those places of rural India where TV could not reach. So Amul made itself
available in ads and in stores in all parts of the country.
27. 19
Amul has also been swift enough in keeping pace with the current scenario.
The company changes its ads every week. The Amul marketing team
brainstorms on the advertisement topic from every Monday and by Friday the
topic, the picture, the locations where to be put are all decided. During the
weekend the hoardings change across the nation and the new ad is put up.
Amul has done its branding so efficiently that people now look forward for the
new Amul ad every week.
Amul’s marketing strategy has been so unique that no brand till date has
adopted it which might be because of the fact that Amul has taken this strategy
to such an extent that brands fear that they would fail when compared to the
benchmark. Amul has so far monopolized the social commentator brand
ambassador policy and has implemented it with great perfection. Apart from
being present in newspapers and in the billboards and hoardings Amul is now
also present in Twitter and is making the Amul girl available on digital
platform. The ambassador has got into the skin of the Indian consumers and
has connected to them so well that we can say Amul through its
advertisements has always given us ‘the real taste of India’.
28. 20
In 1946, the milk farmers of the area went on a strike which led to the setting
up of the cooperative to collect and process milk..Milk collection was
decentralized, as most producers were marginal farmers who could deliver, at
most, 1–2 litres of milk per day. Cooperatives were formed for each village,
too.
29. 21
Chapter 3
Methodology
3.1 Objectives
“To find Market Potential of Amul Slim N Trim UHT Segment and
Competitor analysis of Amul Masti Dahi Products”. The products on which
the research was done are as follows:-
UHT Milk Products:
Amul Slim and Trim
Amul Taaza
Nestle Slim Milk
Nestle a+
Amul Dairy Products:
Amul Dahi
Gowardhan Dahi
Mother Diary
3.2 Design- Mixed Design (quantitative and qualitative design)
Quantitative design: While retailers were interviewed to find out the find the
market potential of Amul PRO, the potential was judged on the report which
purely consisted of quantifying sales in terms of number sold. Number of units
sold by the competitors in a month or in a year was used as a basis for
calculating the market potential. Hence, it can be concluded that quantitative
design was used to find out in the market research.
30. 22
Qualitative design: In the initial stages of market research, there was face to
face interaction with retailers. These retailers were interviewed with open
interview style where they were asked to give elaborate feedback about the
service of distributors, company’s after sales service, reputation of certain
products, type of problems faced frequently etc. Since there was no
involvement of numbers and it was an open interview, the research was done
with qualitative design
3.3 Sources of Data collection –
Primary Data
Retail census
Observation method
Secondary Data
Sales Records
The primary data has been collected by means of interviewing the retailers at
the point of purchase. The sample size for the research was nearly 25 retail
outlets per beat. The information gathered by interviewing the retailers was the
first hand information and accurate without being biased. It was more of an
open end question approach and the retailers were very much co-operative and
unbiased. Following information was gathered from the retailers:-
Stocking details
31. 23
Competitors
Refrigeration facility
Number of visits by the sales person
Margins offered by the competitors
In addition, information was also gathered from distributors regarding:-
Delivery of products
Pricing of products
Issues related to expiry
Various schemes offered by the company
Information about the sales person
32. 24
Place:-
The research was done in different areas of Thane at different purchase point.
Research was conducted in Thane which consisted following areas:-
Hiranandani
Brahamand
Kasavadalli
Olwa
Swastik park and Vijay garden
Kolsheth
Naupada
Station Road
Khopri
Charai
Ghodbunder Road
33. 25
Chapter 4
Data Analysis
The research was conducted working with four different distributors which are
as follows:-
1. Saavala Agency, Thane
2. Suvidha Enterprises, Thane
3. Vinay Enterprises, Thane
4. Saavala Dry Fruits, Thane
Various parameters were taken care of during research work. Factors such as
Retailer’s issues, type of issues, potential outlets and refrigeration facility. The
data collected is just a sample of the total number of outlets in a given area.
But it shows a correct picture as the sample taken is nearly 25 outlets per beat.
CLASS AND TYPE OF MILK
Dairies in India have to market milk by standardizing, as per the various types
of milk prescribed under Food Safety Standard Act, 2006. These type of milk
differ in their Milk fat and Milk SNF contents.
34. 26
Raw milk procured from villages, contain numerous pathogenic and spoilage
bacteria. These microorganisms, if allowed to grow, multiply at logarithmic
rate and produce many toxins and enzymes and spoil milk. Hence milk is
processed by heat treatment in dairies.
Various types of heat-treatment given to milk are as below –
35. 27
1. Pasteurization –
The term Pasteurization has been namedafter its inventor, Louis Pasteur of
France. Pasteurization refers to the process of heating every particle of milk to
at least 72o
C for 15 seconds (or to any temperature-time combination which is
equally efficient), in approved and properly operated equipment. After
pasteurization, the milk is immediately cooled to 6o
C or below. In this process,
pathogenic and spoilage organisms are destroyed. Normally pasteurized milk
is packed in sachets and shall be stored under refrigeration conditions, so as to
prevent the growth of remaining organisms in milk. Pasteurized milk has a
shelf life of 2 days when stored and transported under refrigeration conditions.
This milk is boiled and consumed in Indian homes.
36. 28
2. Sterilization -
Sterilized milk is manufactured by filling into bottles and heating bottled milk
to not less than120o
C for minimum period of 15 minutes. After heating,
sterilized milk bottles are gradually cooled to room temperature. Due to
economic disadvantages and browning of milk, this process is used only for
bottled flavored milk. This Sterilized milk has a shelf-life of not less than 3
months, even at room temperature, and can be consumed directly.
3. Ultra High Temperature (UHT) –
37. 29
During the process of UHT, milk is heat-treated to temperature of 137o
C for 4
seconds and cooled instantly which retains all the vitamins and nutritional
value of milk providing zero bacteria product which needs no boiling. The
milk is packed in 6 layer tamper proofed Tetra-pack packaging which prevents
the milk from spoilage due to sunlight, bacteria, germs and oxygen, thus
ensuring freshness and purity of milk packed. The milk can be stored without
refrigeration for 60 days in fino-packaging and 120 days in brik packaging.
4.Homogenization –
Any of the above class and type of milk may be homogenized. Homogenized
milk is milk which has been treated in such a manner as to ensure break-up of
the fat globules in milk to such an extent that after storage no visible cream
separation occurs on the milk. Milk is homogenized using a high-precision &
expensive equipment known as Homogenizer, which consists of a high
pressure piston pump to force milk at high pressures (and velocity) through a
narrow opening between the homogenizing valve and its seat; the fat globules
in the milk are thereby sub-divided into smaller particles of more uniform size.
Cream layer formation does not take place in homogenized milk.
Milk pack, that is available in the market, contains printed details about the
type of heat-treatment that the milk contained in the pack has undergone –
38. 30
Pasteurized / Sterilized / Ultra High Treated (UHT); the class of milk as per
PFA Act – Toned / Double Toned / Full Cream Milk / Cow Milk / Buffalo
Milk / Skim Milk; if any other processing – Homogenized, etc. For instance, if
Toned Milk is pasteurized and also homogenized, it is designated as
“Pasteurized Homogenized Toned Milk”.
Product Details
Product Name Amul Slim and Trim Milk
Description Skimmed Long Life Milk
Packing 1000 ml
Product Specifications
Composition Skimmed Milk, Vitamin A&D
Nutritional
Information
Nutritional Facts
Serving Size 200ml
39. 31
Serving per pack 5
Amount per Serving
Energy 70 Calories
Energy from fat 1.5 calories
% Daily Value*
Total Fat, 0.2 g 0.3
Saturated Fat, 0.1g 0.6
Sodium 100 mg 4.6
Total Carbohydrate 10 g 3.3
Protein, 7g 14
Calcium 300 mg 61
Added Vitamin A 500 IU
Added Vitamin D 40 IU
Not a significant source of Dietary fiber,
Vitamin C & Iron.
*Percent daily Values (DV) are based on
a 2000 calorie diet.
Shelf Life 180 days when stored in cool and dry place
Storage condition Ambient
Product Features
Zero Cholestrol
Virtually zero bacteria
No need to boil
40. 32
Cut open and drink
No need to refrigerate till open
Stays fresh for 2 days after opening if kept in refrigerator
No powder or water added
No preservative / chemical
Easy to carry and use while traveling
Tamper evident packing
Best quality milk from Gujarat
Product Application
Excellent for:
People with Heart & Blood Pressure related problems
Health & weight conscious People
People undergoing Fitness sessions.
Amul Lite is Long Life skimmed milk. It is fresh and only fresh milk. The
UHT treatment ensures zero microbial activation, while preserving the
maximum flavour, taste, and nutritional value. The aseptic packaging system
protects the product from air and light and guarantees a long shelf life of 180
days without refrigeration. Amul Lite Milk is a unique offering to health
conscious milk lovers. With virtually zero fat content, nil cholesterol and 8.
7% SNF minimum, it gives you all the proteins, vitamins and minerals of
natural milk without your having to imbibe unnecessary flab in the deal
41. 33
SnT Launch Tracking Format
WD Town APO A Class B Class /
Other
retail
Total of
All
Channels
Total of
All
Channels
Total Placed Total Placed Total Placed Total Placed SNT
Stock
Placed
in
PCS.
SNT
POP
Placed
in
PCS.
Savla
Agency
Kolbad 0 0 3 3 12 5 17 10 16 10
Savla Comined 3 3 15 12 35 14 39 31 38 31
43. 35
Calculation of Market Share of Amul UHT
Total sale = 7400 in one month
Sale of Amul UHT 3900ie 52%
Sale of other UHT milk competitors 3500 which includes 47% (Nestle) and
1% other brands like gowardhan, danone etc.
3900
3500
80
Amul UHT Nestle UHT others
0
1000
2000
3000
4000
5000
Sales(no of
units)
44. 36
Market Potential of Amul UHT
Value of sale of Amul UHT milk – Rs. 10,44,000
Value of sale of Nestle UHT milk is Rs. 9,44,000 in a month and Value of sale
of others is Rs. 20,000
Therefore the potential which is existing in the market for amul is of
20,08,000. And is subject to increase with more awareness.
Value of sale Amount (Rs.)
Amul UHT milk 10,44,000
Nestle UHT milk 9,44,000
Others (Danone, D’lecta, Gowardhan) 20,000
Potential market for Amul UHT 20,08,000
45. 37
Competitors
Products like Nestle Slim (Nestle), Go Slim (Gowardhan), Danone Slim Milk
(Danone), Nandini Skimmed Milk (Nandini) and Britannia Slimz (Britannia)
are the direct competitors of Amul Slim and Trim.
Amul Slim and Trim was earlier known as amul lite, but the category itself is
known as Slim milk category and all its competitors follow the same, the name
Amul lite itself did not very well highlight the utility of the product.
The biggest competition for AmulSilm and Trim is Nestle Slim Milk which is
priced rs. 74, the others competitors also have prices ranging from 65 to 75
46. 38
expect for Nandini Skimmed milk which is available for rs. 40 which is
available only in select parts of India..
Comparison Matrix was designed for tracking of stock and response for the
new product in the market.
AmulSnT Nestle Slim Other
Salesman
visit
Friday Tuesday
Delivery Saturday Wednesday
Margin 7% 8%
POP'S Yes No
Schemes No Schemes on large order
quantity
Consumer
Preference
Response at Amul Parlour is very good
Fat Content
(%)
0.10% 0.20%
Competitor analysis was done based on a study done in a modern format store
D-mart. The study had a sample size of 30 customers buying UHT milk and
their preferences.
47. 39
Dmart being a discount store, it also had offers on almost all the products in
the UHT milk category.
It was observed that 22% of the sample opted for Amul UHT products and the
rest 28% was shared by the others.
22%
18%
2%
3% 4%
1%
Sales
Taaza
Nestle
Go milk
Mother Diary
Danone
Others
Sample Size -50
48. 40
Swot Analysis of Slim n Trim:-
SEGMENTATION, TARGETING,POSITIONING
MARKET SEGMENTATION
Market Segmentation is the act of sub dividing a market into distinct sets of
customers who merit attention. Targeting these customers for marketing by
evaluating, selecting, and concentrating becomes a corollary to segmentation.
Market segmentation assumes importance in the context of intense
competition market is bombarded with. A market consists of buyers, and
buyers differ in one or more ways. They may differ in their wants, resources,
Strengths:
The Amul Brand
Lowest Price
Lowest Fat Content
Longer Shelf Life
Weakness:
Low Margin to Retailer
Less or no replacement
No Schemes being offered
No Awareness
Opportunities:
Areas with no availability of fresh milk
Increase in number of health conscious
people
Threats:
Negative Publicity about UHT milk.
Retailer Push Strategies used by
competitors.
49. 41
locations, products requirements. These variables have to be considered in the
process of segmentation.
Markets can be segmented on the geographical basis, demographical basis,
psychological basis, behavioural basis and loyalty status.
AMUL UHT segments its market on the following basis:
1. GEOGRAPHICAL BASIS:
This segmentation is done on the basis of the lifestyle of people in different
regions and their tastes and consumption patterns which are distinct according
to their geographical situation.
2. DEMOGRAPHICAL BASIS:
Amul UHT has segmented its market on the basis of the socio-economic
status of the customers. i.e. on the basis of socio economic class of the
families who are all the real buyers.
MARKET TARGETING
After segmenting the market, company evaluate the various segments and
decides how many and which ones to target.
Generally the market is targeted in three ways:-
UNDIFFERENTIATED MARKETING
DIFFERENTIATED MARKETING
CONCENTRATED MARKETING
AMUL uses Repositioning marketing strategy by repositioning their product
by a new packaging which focus more on health conscious people.
51. 43
Other Activities
Retail census:
1. Availability of Amul deep freezers and visual coolers were found out with
the help of following format.
This type of format helped in creating a database of the retailers. Presence of
deep freezers as well as visi coolers was also noted to gauge the potential for
penetration of Amul products. Contact numbers of retailers were also noted to
entertain the problems of retailers as well as for taking orders on the phone.
Activity also included introduction to the product range of Amul which
consists of more than 240 products, introduction to the distributors where
warehousing of the products happened and introduction to the salesmen with
whom most of the retail outlets were covered.
During this period, order books were introduced to take the orders of the retail
outlets.
52. 44
2.Competitor analysis
Analysis of competition against amulmastidahi was done and the major
competitors found were... Warna, gowardhan, nestle, danone, milky
fresh, loose dahi etc.
A study was done on the MRP, SKUs, various schemes provided by the
competition.
Amul Masti Dahi (SKU) Yes/No COMPETITORS ACTIVITY - DAHI
100g
C
200g
C
400g
C
400g
P
1 Kg
P
Pro
Lassi
Name SKU MRP Scheme
It was found that brands like nestle, danone etc. have higher MRP than
Amul but they also provide schemes like 8+1 free.
Milky fresh is in the introductory stage, the schemes provided were
very attractive 6+3 free so the retailers tried to push the product and
the availability and visibility was very high.
53. 45
3.Involving and convincing retailers to participate in Amul Kool contest.
Amul Kool contest is for retailers who stock Amul beverages like
Amul Kool, Chaas, Lassi, Milkshake etc. This contest runs on
whatsapp and Facebook and the participants have to click a photograph
of these products with themselves and post it to the Facebook wall or
whatsapp number of Amul.
The Daily winners would be given gift hampers and weekly winners
would get there photographs in between IPL matches on television.
4.Beat plan was collected from the distributor’s office as well as product
information was collected to know the pattern in which areas were covered by
the salesmen.
Also individual sales figures for Amul products of each retailer were collected
54. 46
5.Collection of product information – packaging, packing, fat content,
variants, MRP etc.
6. CSR Activity by Amul
Now Amul presenting Amul Vidya Awards 2013 for Felicitating youth
toppers in 10th
and 12th
.
It’s a Kind of CSR initiative taken by Amul company.
Amul Vidyashree and Amul Vidyabhushan Awards will provided to students
56. 48
5. CONCLUSION
GCMMF which markets the extremely popular Amul brand of milk and dairy
products is certainly going through a golden phase with simultaneous
acceleration in demand and supply. The high growth in turnover is reflected in
the remarkable performance of its various mega-brands.
This is the vision of the future which the company sees for itself:
‘‘AMUL will be an outstanding marketing organization, with specialization in
marketing of food and dairy products, both fresh and long life with customer
focus and information technology integration.
The network would consist of over 100 offices, 7500 stockiest covering at
least every taluka head quarter town, servicing nearly 10 lakh outlets with a
turnover of Rs.10,000 crores, and serving several co-operatives. AMUL shall
also create a market for its products in the neighbouring countries.”
A wide spread concern for quality and convenience, and the buy it, fill it and
forget it, psyche of the young generation for their requirements of dairy and
foodswith an unstoppable increase in disposable incomes are laying the
foundation for growth of this sector in the Indian dairy industry.
We should also not forget the role being played by media in affecting the
consumer behaviour on consumption of foods and, particularly, dairy.
57. 49
6. FINDINGS AND SUGGESTIONS /
RECOMMENDATIONS
6.1 FINDINGS
1. Amul products subjected to degradation due to weather conditions. Because
of this, once they reach the retailers they are in bad state.
2. Replacement and Profit margin are two biggest issues threatening the brand
of Amul.
3. Lack of awareness about the new products like Amul Slim and Trim.
4. AmulKool faced frequent expiry date issues.
5. Economically priced quality dairy products- one of the key strengths of
Amul.
6. Amul has top of the mind recall when it comes to butter which forms 55%
of total sales.
7.It is also observerd that most of the items are old stock.
8.Competitors of Amul SNT are Mainly Nestle a+ and Nestle Slim milk.
9.Schemes provided by other competitor products.
10.Retailers try to avoid that Amul products which are there in competitor
company.
11.Danglers were not present at the shops which was kept by us
58. 50
6.2 SUGGESTIONS AND RECOMMENDATIONS
The following suggestions can be derived out of the research done on frozen
products division and new products:-
1. Suggestions for Salesperson issues:-
The salesperson should visit the retailer’s outlets on regular basis so as
to keep stock available and should also make the retailer aware of the
newly introduced products by the company.
The salesperson should also make the retailer aware of the running
schemes and offers so as to boost up sales.
2. Suggestions for Replacement issues: -
The company should make attempts to revise its replacement policy .
3. Suggestions for Damage issues: -
The distributor should ascertain the products supplied to him from the
Depot. Distributor should also make sure that the product does not get
damages at the time of supply to the retailer.
4. Suggestions for Promotional activities: -
Word of mouth works, but at least at initial period the company should
offer product with some offer.
Company should provide Danglers, posters to improve visibility of the
products.
59. 51
REFERENCES:
1. Avirupa Bhattacharya, “The Making of the Amul girl “, Retrieved on
16th
Sept, 2004 from http://www.idosi.org/wjdfs/wjdfs2(2)/2.pdf
2. www.wikipedia.com
3. www.fnbnews.com
4. www.gcmmf.com