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Amul
1. A SUMMER INTERNSHIP PROJECT REPORT ON
ANALYSIS OF PRODUCT
DEVELOPMENT AND
CUSTOMER FEED BACK
BY
GUJARAT MILKMARKETING FEDERATION
LIMITED
SUBMITTED TO
2. BY
ROHIT.B.PATHAK
ROLL NO-11-E35
This report is submitted to the University / Institute
in partial fulfillment of the requirement for the
curriculumas prescribed by the University of
Mumbai.
3. Table of Contents
TOPIC PAGE NO
Executive Summary. 6
Industry Profile. 7
Company Profile. 12
Products. 13
Amul Pro Description. 21
Research Methodology. 25
Questionaire. 30
Comparison With
Bournvita.
31
Findings. 33
Conclusion. 34
4. DECLARATION
I hereby declare that all the work presented
in the summer internship project report
entitled “ANALYSIS OF
PRODUCTDEVELOPMENT AND CUSTOMER
FEEDBACKBY GUJARAT CO-
OPERATIVE MILK MARKETING
FEDERATION LIMITED.
atVidylankar Institute of Technology ,
Wadala and AMUL is my authentic record
of my own work carried out .
5. Certificate of Internship
This is to certify that MR ROHIT.B.PATHAK a
student of vidyalankar institute of technology
and pursuing two years full time MASTERS IN
MANAGEMENT STUDIES (MMS), underwent two
months of internship with us from may 2,
2012 to June 5, 2012.
During the internship, MR ROHIT.B.PATHAK
has successfully completed the project titled
“analysis of product development and
customer feedback.
.” Under the guidance of MR.P.S BABRA,
We wish MR ROHIT.B.PATHAK the very best for
his career, and are thankful for the perfect
service he provided to this company.
6. Executive summary
The project was taken into consideration for the promotion
and the marketing of the amul new product i.e “AMUL
PRO”.
The main task assigned to us by our mentors where to make
the product available in each and every stores.
It also focuses on the competitors product like bournvita
Horlicks, boost etc.
The main aim of the
Summer training was to first analyses the market situation
focus on the need of the consumers what the thing they are
lacking in the competitors product so that the same thing
didn’t happened in our product.
So after the whole promotion and marketing of the
product…we have taken the sample size of 50 retailers
retailers wand wanted to know the feed back which we are
getting for our product.
7. INDUSTRY PROFILE
FOOD INDUSTRY
The food industry is the complex, global collective of diverse
businesses that togethersupply much of the food energy
consumed by the world population. Only subsistencefarmers,
those who survive on what they grow, can be considered
outside of the scope of the modern food industry.
The food industry includes:
Regulation: local, regional, national and international rules and
regulations forfood production and sale, including food quality and
food safety, and industrylobbying activities.
Education: Academic, vocational, consultancy.
Research and development: food technology.
Financial services:insurance, credit.
Manufacturing: agrichemicals, seed, farm machinery and supplies,
agriculturalconstruction, etc.
Agriculture: raising of crops and livestock, seafood.
Food processing: preparation of fresh products for market,
manufacture of prepared food products.
8. Marketing: promotion of generic products (e.g. milk board), new
products, publicopinion, through advertising, packaging, public
relations, etc.
Wholesale and distribution: warehousing, transportation,
logistics.
Retail: supermarket chains and independent food stores,
direct-to-consumer,restaurant, food services.
ADVANTAGE OF INDIA UNDER FOOD INDUSTRY:
India is one of the largest food producers in the worldindiahas diverse
agro-climatic conditions and has a large and diverse raw
materialbase suitable for food processing companies
Investment requirement of around US$ 15 billion exists in the food
processingsectorindiais looking for investment in infrastructure,
packaging and marketingindia has huge
scientific and research talent poolalargely untapped domestic
market of 1000 million consumers300 million upper and middle
class consume processed food200 million more consumers
expected to shift to processed food by 2010Well developed
infrastructure and distribution network Rapid urbanization,
increased literacy, changing life style, increased number
of women in workforce, rising per capita income- leading to
rapid growth and newopportunities in food and beverages sector50
per cent of household expenditure by Indians is on
food itemsstrategicgeographic location (proximity of India to
markets in Europe and fareast, South East and West Asia)Under the
food industry, Dairy product is
very important part of food processing. Dairyprocessing is acting
good role in India.
9. Dairy Processing:
India ranks first in the world in terms of milk
production. Indian production stands at 91million tones
growing at a CAGR of 4 per cent. This is primarily due
to the initiativestaken by the Operation flood
programmes in organizing milk producers into
cooperatives;building infrastructure for milk
procurement, processing and marketing and
providingfinancial, technical and management inputs by the
Ministry of Agriculture and Ministry of Food Processing
Industries to turn the dairy sector into viable self-
sustaining organizedsector. About 35% of milk produced in
India is processed. The organized sector (largescale dairy
plants) processes about 13 million tones annually, while
the unorganized sectorprocesses about 22 million tones per
annum. In the organized sector, there are 676 dairyplants in
the Cooperative, Private and Government sectors
registered with the Governmentof India and the state
Governments.
India has a unique pattern of production,
processing and marketing/consumption of
milk,which is not comparable with any large milk
producing country. Approximately 70
millionrural households (primarily, small and marginal
10. farmers and landless labourers ) in thecountry are
engaged in milk production. Over 11 million
farmer are organized into about0.1 million village
Dairy Cooperative Societies (DCS)(about 110 farmers
per DCS). Thecumulative milk handled by DCS across
the country is about 18 million kg of milk per
day.These cooperatives form part of a national milk
grid which links the milk producersthrough out India
with consumers in more than 700 towns and cities
bridging the gaps onaccount of seasonal and regional
variations in the availability of milk.The Ministry of
food Processing Industries is promoting organized
Dairy processing sectorto accomplish upcoming
demands of processed dairy products and helping
to identifyvarious areas of research for future product
development and quality improvement torevamp the
Indian dairy export by way of providing financial
assistance to the dairyprocessing units. 32 Units
have been sanctioned financial assistance (Rs.591
lakhs)
underthe plan scheme of the Ministry during the
year 2006-07.
11. Major Indian Players and overseas in the
Food industry
ITCLimited
Parle Products Pvt. Ltd.
Agro Tech Foods.
Amul India Ltd.
Cadbury India Ltd.
PepsiCo India Holdings.
Nestle India Pvt. Ltd.
Britannia Industries Ltd.
Hindustan uni lever limitedmtr foods limited.
Godrej industries limited.
Dabur India Ltd.
12. COMPANY PROFILE
Amul (Anand Milk Union Limited),
formed in 1946, is a dairy cooperative movement
inIndia. It is a brand name managed by an apex
cooperative organisation, Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is
jointly owned bysome 2.6 million milk producers in
Gujarat, India. It is based in Anand town of Gujaratand has
been a sterling example of a co-operative organization's
success in the long term.
The
Amul Pattern
has established itself as a uniquely appropriate model for
ruraldevelopment. Amul has spurred the White
Revolution of India, which has made India thelargest
producer of milk and milk products in the world. It is also the
world's biggestvegetarian cheese brand .
GCMMF:
Gujarat Cooperative Milk Marketing Federation
(GCMMF) is India's largest food productsmarketing
organisation. It is a state level apex body of milk cooperatives
in Gujarat whichaims to provide remunerative returns to
13. the farmers and also serve the interest of consumers by
providing quality products which are good value for money.
Amul's product range includes milk powders, milk, butter,
ghee, cheese, curd, chocolate,ice cream, cream, shrikhand,
paneer, gulabjamuns, basundi, Nutramul brand and
others.
InJanuary 2006, Amul plans to launch India's first
sports drink Staminawhich will becompeting with Coca
Cola'sPoweradeandPepsiCo'sGatorade.
Amul is the largest food brand in India and world's
Largest Pouched Milk Brand with anannual turnover of
US $1050 million (2006-07). Currently Amul has 2.6 million
producermembers with milk collection average of 10.16
million litres per day. Besides India, Amulhas entered
overseas markets such as Mauritius, UAE,
USA, Bangladesh, Australia, China,Singapore, Hong
Kong and a few South African countries. Its bid to enter
Japanese marketin 1994 had not succeeded, but now it has
fresh plans of flooding the Japanese markets.Other potential
markets being considered include Sri Lanka.
Dr VergheseKurien, former chairman of the GCMMF, is
recognised as the man behind thesuccess of Amul. On 10
Aug 2006 ParthiBhatol, chairman of the Banaskantha
Union, waselected chairman of GCMMF.
14. ACHIEVEMENTS:
Amul :Asia‟ s largest dairy co-operative was created way
back in1946 to make the milk producer self-reliant and
conduct milk- business with pride.
Amul has always been thetrend setter in bringing and
adapting the most modern technology to door steps to
ruralfarmers.
Amul created history in following areas:
a)First self motivated and autonomous farmers‟ organi
zation comprising of more than
5000000 marginal milk producers of Kaira District.
b) Created Dairy co-operatives at village level functioning
with milk collection centresowned by them.
c) Computerized milk collection system with electronic
scale and computerized accountingsystem.
d)The first and only organization in world to get ISO 9000
standard for its farmers co-operatives.
e)First to produce milk from powder from surplus milk.Amul
is the live example of how co-operation amongst the poor
marginal farmers canprovide means for the socio-
economic development of the under privileged
marginalfarmers.
15. Amul in abroad:
Amul is going places. Literally. After having
established its presence in China, Mauritius
and Hong Kong, Gujarat Cooperative Milk Marketing
Federation (GCMMF), India‟ s
largest milk cooperative, is waiting to flood the Japanese
market.Then, GCMMF is also looking at Sri Lanka as one of
its next export destinations. Amulproducts are already
available on shelves across several countries, including
the US, China,Australia, West Asian countries and
Africa.GCMMF recorded a turnover of Rs 2,922
crore last fiscal. Its products include pouch milk,ultra
heat treated (UHT) milk, ice-cream, butter, cheese and
buttermilk.
19. 1.3.2 -Major Competitors
Amul is a well known brand with a wide product range in FMCG giving a tough
competition to its competitors . The following are the major competitor in some of its
product range :
Sr. No Product Competitors
1 Butter Nestle
Gowardhan
Mother Dairy
Britannia
2 Cheese Britannia
Mother Dairy
Gowardhan
3 Milk Britannia
Nestle
Warna
4 Curd Nestle
Gowardhan
Danone
5 Ice Creams Kwality Walls
Vadilal
Baskin Robbins
Naturals
6 Chocolates Cadbury
Nestle
8 Ghee Britannia
Gowardhan
Dynamix
9 Infant Food Nestle
10 Dairy whitner Nestle
Britannia
Mother dairy
Gowardhan
21. Amul PRO
Description Malt Based Food
Packing
500g Glass Cube
Jar: The glass cube
jar is a unique
pack in the
category, giving
Amul PRO a
distinct advantage
of standing out of
the clutter on
retail shelves.
500g Refill: Amul
PRO is also
available in an
attractive 5 panel
500g Refill
Product Specifications:
22. Composition
Ingredients : Malt Extract, Sugar,Milk
solids, Cocoa solids,
Caramel,Vitamins,Minerla,Permitted
emulsifiers(E322,E476), Raiding agent
(E500(ii)), DHA and salt.
Product Features:
Amul PRO is a malt based milk additive, which
not only enhances milk’s nutritive value but also
makes milk a very tasty drink for people of all
ages, especially kids, who need milk and
nutrition for healthy growth. It comes from the
House of Amul, the brand which is known all over
for providing quality products at value for money
price.
23. Key product attributes of Amul PRO
are as follows:
Whey Protein: Muscle building & Immunity
Whey Protein is the purest and most essential
form of protein. It is easy to digest and helps
muscle building and nurturing growth. Why
Protein is often referred to as “Fast Protein”,
provides quick nourishment to muscles, helping
your child strengthening the immunity and stay
healthy.
DHA: Brain Development
Docosahexaenoic Acid (DHA) is an essential fatty
acid required for optimal development and
function of the brain, eyes and central nervous
system of a child. It plays an important role in
enhancing your child’s immunity by protecting it
from allergies like Asthma.
27 Essential Nutrients: Complete Wellness
Amul PRO contains 27 essential nutrients
(proteins, vitamins and minerals) that help in
boosting immune system enhance metabolism
and nervous system functions and helps children
be mentally sharp and physically agile.
24. Product Application:
It's a milk additive, which means it can be
consumed by adding directly to milk. It is easy to
make and tasty to drink and is suitable for
people across age groups, particularly kids who
require adequate nourishment for proper growth
Amul PRO can be consumed with both hot as well
as cold milk.
Available
All Over India in Normal Trade and Modern
Format Stores.
26. Research methodology is the way to systematically solve the
problem. In it we study the various steps that are generally
adopted by a researcher in studying his research problem
along with the logic behind them. Thus, When we talk about
research methodology we not only talk of the research
methods but also consider the logic behind the methods we
used in the context of our research study and explain why we
are using a particular method or technique and why we are not
using others so that research results are capable of being
evaluated either by the researcher himself or by others.
RESEARCH OBJECTIVE:
To know the actual sales of the product.
To understand the requirement of the product.
To determine the expansion strategies.
RESEARCH DESIGN
A sample size of 40 retailers was taken.
The survey was conducted in the area THANE.
27. Sampling techniques:
A quota sampling technique was adopted because the sample
audience was made out of potential purchasers of the product.
The sample was carefully drafted. A lot of care was taken
when designing the questionnaire and also when collecting
information
PRIMARY DATA
The primary data consists of information obtained
from the retailers and distributor.
SECONDARY DATA
The secondary data is obtained from the
information already published in newspaper articles , blogs
and books. The websites like Amul. Com ,scribd. Com ,
Wikipedia . cometc were also useful
28. METHODS OF DATA COLLECTION
The source of the data collected for the research is both primary data and secondary data
Primary Data :
By Observation Method :
This data was collected by visiting the amul outlets in Thane by seeing the displayed
Amul products in that stores.
The data was collected on the following parameters:
Price .
Visibility.
Shelf Life .
Discounts Offered .
By Personal Interviews :
The data was collected by visiting each and every stores where amul products are
available and also check the availability of the Amul products in the shelf . The information
was taken by talking to the purchase mangers of the stores as well as the distributors . The
objective of this was to know the preference of the retailers to stores the Amulproducts ,
know the problems regarding the delivery , the problems between distributors and retailers .
The questions were open – ended as well as close - ended .
29. LIMITATIONS
The research was carried out for 2 months which proved
to the insufficient to tap the accuracy of the study
Time factor has been a very big limitation in the
research survey like this.
30. QUESTIONAIRE
NAME OF THE
RETAILER
CONTACT NO
ADDRESS
FEEDBACK
This were the questionnaires which we are supposed to get completed from the retailers.
Comparing amulpro with bournvita:
AMUL PRO:
31. It contains DHA advantage.
With power of vitamin D and calcium
Whey protein which helps for bodybuilding.
Goodness of milk.
BOURNVITA:
32. Dha only for age group of 5yrs
Similarly whey protein also for the age group of
5yrs.
Prices of the jar as well as the pack is very high as
compared with the “Amul pro”.
Whereas “Amul pro” is for every age group right from the
children up to grandfather.
FINDINGS
1. Customer trust on brand of product and name of company while purchasing the product.
2. The company has been able to deliver a good quality and taste products are reasonable
and affordable prices.
33. 3. Most of the complaints that we heard from the retailers is that they are not satisfied with
the company’s margin as the margin is very low compared with the competitors product.
4. The Company enjoys a market leadership in products like Butter , Cheese but also lacks
products awareness in product like Basundi , GulabJamun , Chocolates etc .
5. The improper distribution network creates a great hindrance in reaching the product to
the market and customers .
6. At most of the outlets, employees are not satisfied even dealers also.According to them,
Amul only takes action for customer satisfaction,but for the outlets employee’s
satisfaction, Amul tries to avoid it
7. Retailers do not agree to stock Amul ice creams as the company doesn’t not provide the
retailer with deep freezers.
8. The local competitors like Warna ,Chitaleetc are eating the market share of Amul in
product categories of Shrikhand, Milk , Dahi.
9. The retailers are not happy with the damage product treatment given by then company.
The retailers wish for the replacement of the damaged products which the company
refuses to give.
10.The company faces a huge competition from other companies in the market for
Dahi,icecreams,mithaimate and freshcream.
34. CONCLUSION
I have studied and analyzed the dairy based food product market of amul on different aspects
of the markets,outlets,distribution and consumers.
The 2 months of summer internship with amul actually helped me to learn various thing that
would really be helpful in my life for future growth.
This project shows me the way to work in the market .How to communicate with different
type of people .How to convince one for better job .Learnt how to sell ,how things work in
Fast moving Consumer goods .having perishable nature of these product one need a excellent
distribution network and carefully select market because these product if transferred to far
area then cost attached to the product will make it un competitive .
According to me the growth of any product whether it could be food based product or
anything depends upon how we do proper branding of that product and also the promotion
which plays a very vital role in attracting customers.
The main goal should be to attract customer and to retain them so that the loyalty maintains
in future as well.
Besides thisQuality is the dominating aspect which influences consumer to purchase Amul
product, but prompt availabilityof other brands and aggressive promotional activities by
others influences the consumer towards them and also leads to increase sales
Ultimately I must say that I am privileged to work in the company like Amul and get such a
real time exposure of FMCG company .