1. 1
A PROJECT REPORT ON
Analysis of Retail Penetration status of Amul Ice-Cream for Mumbai
market
For
AMUL ICE-CREAM
By
Abhishek Kumar
ROLL NO. - 11
BATCH - M 1
COURSE - PGDM
Company Guide: Mr. Gaurish Manekar
Designation: Channel & Distribution Manager
Faculty Guide: Ms. Arun Sharma
IN PARTIAL FULFILLMENT OF
THE REQUIREMENT FOR THE IIP PROGRAM
INSTITUTE FOR TECHNOLOGY AND MANAGEMENT (ITM)
KHARGHAR, NAVI MUMBAI
(2014 – 2016)
2. 2
ACKNOWLEDGEMENT
It is the duty of the student manager to gain Knowledge and to develop the
necessary skills in due course of Project completion in order to be more
enriched about the research being undertaken. Throughout my SIP, many
people have helped and guided me. My project report will be incomplete
without acknowledging them.
I take this opportunity to express my profound gratitude and deep regards
to my faculty guide Prof. Arun Sharma for his guidance, support,
monitoring and constant encouragement throughout the duration of this
project.
Also this learning and project wouldn‟t have been a reality without the
guidance provided by company mentor Mr. Gaurish Manrekar, Senior
Sales Executive and Mr.Bhavesh Barot(sales executive), AMUL
Mumbai, who guided me with the proceedings of this project. I express a
deep sense of gratitude to for his cordial support, valuable information and
guidance, which helped me in completing this task through various stages
I am also obliged to staff members and distributors of Amul for
providing me valuable insights about the company and helping me in my
project report.
3. 3
CONTENT
INDEX
NO.
TOPIC PAGE
NO.
EXECUTIVE SUMMARY 6
I INTRODUCTION 7
1.1 OVERVIEW AND HISTORY OF
AUTOMATION INDUSTRY
7
1.2 TASK GIVEN (PHASE-I) 12
1.3 REASON TO ASSIGN THE
PROJECT
12
1.4 OBJECTIVE OF THE PROJECT 13
1.5 MODUS OPERENDI 13
II COMPANY PROFILE 14
2.1 HISTORY 14
2.2 OVERVIEW 17
2.3 E&A BACKGROUND 18
2.4 PRODUCT & SERVICES 22
2.5 COMPETITORS 29
2.6 VISION & MISSION 30
2.7 ORGANIZATION STRUCTURE 31
2.8 ORGANIZATION PROCESS 32
2.9 SWOT ANALYSIS 33
4. 4
III PROBLEM FACED BY
RETAILORS
35
3.1&3
.2
IMROVEMENT SUGGESTION
LIMITATIONS OF THE STUDY
36
3.3 LEARNING POINTS 37
3.4 CONCLUSION 38
3.5 BIBLIOGRAPHY 40
5. 5
STUDENT'S DECLARATION
I hereby declare that the Project Work with the title “Market Penetration
Of an Amul Ice-cream for Mumbai market” submitted by me for
the partial fulfillment of the degree of (Post Graduation Diploma In
Management) PGDM in Marketing under INSTITUTE FOR
TECHNOLOGY & MANAGEMENGT(ITM),NAVI MUMBAI, is my
original work and has not been submitted earlier to any other
university or institution for the fulfillment of the requirement for
any course of study.
I also declare that no chapter of this manuscript in whole or in
part has been incorporated in this report from any earlier work done
by others or by me. However , extracts of any literature which has
been used for this report has been duly acknowledged providing
details of such literature in the references.
Place- Signature-
Date- Name – Abhishek Kumar
Roll no. - 011
6. 6
EXECUTIVE SUMMARY
This report is a study of Retail penetration of Amul Ice Cream in take
home packs segment and scope of improvement for the same for Mumbai
Market.
With new players entering into markets, Amul is able to keep its market
share but sales decreased and this is a reason for worry. Though Amul is a
market leader but knowing why there is a drop in numbers is necessary.
My research revolve around collecting data from retailers and consumers
that is there a shift in tastes and preferences or due to competition.
Company is coming up new variants to cater all segments of the customers
and therefore it is important to know that whether company is able to tap
new customers and is able to retain them.
There are many brands who are trying to tighten the grip on market by
providing good margins to both distributors and retailers and also coming
up with different schemes. Amul, has not entered in such tricks and they
have maintained their quality and low price by keeping their margins
down. Amul is playing on the fact that they make ice creams with fresh
and real milk.
So my study was to know about status of party packs (half litre, one and
two litres, tubs, combos) and if there is a shift why is it.
Analysis in based on primary data of retailers and consumers. In the
analysis, I find out that Amul still enjoy a preferred status among all its
competitors and they continue to be market leader in take home segment.
Also due to family size decreasing, impulse purchase is increasing. There
is also a segment increasing for fresh fruits ice-creams and therefore
company is coming up with flavours in this segment with a large scope of
improvement. But if customers have to buy larger packs, Amul is a choice
of 80% of the market.
7. 7
INTRODUCTION
1.1~ OVERVIEW OF AMUL ICE-CREAM
Amul got it origin from a protest for milk. It was founded in 1946 to
eliminate middlemen from distribution process and it was inspired by the
freedom movement.
In 1946, an unusual saga took place in Anand, a small town in Gujarat.
There farmers were exploited to the maximum extent by middlemen and
farmers could not take it more. So they went to Sardar Vallabhai Patel for
a solution. He advised them to eliminate middleman and form a
cooperative society which would have procurement, processing and
marketing under their control.
Adhering to Patel‟s advice farmers of Anand went on strike refusing to be
cowed down by the cartel. Under the guidance of Sardar Patel, Morarji
Desai and Tribhuvandas Patel, they formed their own cooperative in 1946.
This co-operative, started its operation with just two village dairy
cooperative societies with 247 litres of milk. This very society is popularly
known as “Amul Dairy”. Amul was in no hurry and they grew step by step
from strength to strength, credit goes to charismatic leadership of
Tribhuvandas Patel, the founder Chairman and the committed
professionalism of Dr Verghese Kurien,who was entrusted the task of
running the dairy from 1950.
Astonished by the success of Amul the then Prime Minister of India, Lal
Bahadur Shastri decided that same concept can be replicated to form the
basis of a National Dairy Development policy. Amul‟s success could be
attributed to 4 factors and he understood them well. It was for the people
and by the people i.e. the farmers owned the dairy, they elected
representatives who managed the village societies and the district union,
their employed professionals were to operate the dairy and manage its
business. Most importantly, the co-operatives were sensitive to the needs
of farmers and responsive to their demands.
Finally in 1965 the National Dairy Development Board was set up with the
basic objective of replicating the Amul model. Dr. Kurien was chosen to
8. 8
head the institution as its Chairman and asked to replicate this model
throughout the country.
The Amul Model of dairy development is a three-tiered structure with the
dairy cooperative societies at the village level federated under a milk union
at the district level and a federation of member unions at the state level.
Establishment of a direct
linkage between milk
producers and consumers
by eliminating
middlemen
Milk Producers
(farmers) control
procurement, processing
and marketing
Professional management
9. 9
The Amul model has helped India to emerge as the largest milk producer
in the world. More than 15 million milk producers pour their milk in 1,
44,500 dairy cooperative societies across the country. Their milk is
processed in 184 District Co-operative Unions and marketed by 22 State
Marketing Federations, ensuring a better life for millions.
Amul brand of milk and dairy products stands 15th
amongst the
top dairy organisations of the world according to a recent survey by
International Farm Comparison Network (IFCN), a leading, global
dairy knowledge organisation.
3.1 million milk producer member families
15,760 village societies
9.4 million litres of milk procured per day
GCMMF is the largest cooperative business of small producers with
an annual turnover of Rs. 53 billion
The Govt. of India has honoured Amul with the “Best of all
10. 10
categories Rajiv Gandhi National Quality Award”.
Largest milk handling capacity in Asia
Largest Cold Chain Network
48 Sales offices, 5000 Wholesale Distributors, 7 lakh retail outlets
Export to 37 countries worth Rs. 150 crores
Winner of APEDA award for nine consecutive years
Amul entered in Ice Cream segment on 10th March, 1996 and started it
journey from Gujarat. Amul portfolio consisted of wide range of products-
impulse products like sticks, cones, cups as well as take home packs and
institutional/catering packs. Amul ice cream was launched on the platform
of „Real Milk. Real Ice Cream‟ given that it is a milk company and the
wholesomeness of its products gives it a competitive advantage.
Amul entered different markets in different point of time before it got
nationally rolled out in 1999. It started its Mumbai operations in 1997,
Chennai was next in 1998 and then the national capital in 2002.
It was not a cake wake for Amul to establish itself as a brand in ice-cream
and it has to compete in lights of Kwality Walls, Mother Dairy. Amul
achieved No.1 position in the country in 2001 and it has continued to
remain at the top.
Amul replicated the same concept which they applied for milk and they
played on their strength and because of that they not only it has grown at a
phenomenal rate but has added a vast variety of flavours to its ever
growing range. Amul is currently offering a range of over 200 products.
Amul has always brought newness in its products and the same applies for
ice creams.
In January 2007, Amul introduced SUGAR FREE & Prolife Probiotic
Illness Ice Cream, which was a first in India. This range of SUGAR FREE,
LOW FAT Diabetic Delight & Prolife Probiotic Illness Ice Cream is
created for the health conscious. Amul‟s success is measured in terms of
large market share it was able to capture within a short period of time –
due to price differential, quality of products and of course the brand name.
11. 11
COMPANY ANALYSIS
LOW COST LEADER
Being a cooperative society Amul always focus on benefiting society as
a whole and thus they keep their margins on a lower side without
tempering with the quality. In ice cream segment Amul not only leads
by sales volume but also due to lower price. Also customer‟s demand for
Amul ice-cream is more than any other brand. This gives a competitive
advantage to Amul on others but Amul still does not take undue
advantage of their market status.
Ansoff Matrix
Market Penetration Product Development
Fresh Milk Fat Free Dessert
Ghee, Milk Powders Cooking Chocolate, soups
Ice Cream
Lassi, Diabetic Products, Healthy products
Market Development Diversification
South East Asia and South East Asia and
Middle East with products like Middle East with products like
Srikhand, Paneer & Butter Sterilized Paneer, Cow Ghee
12. 12
SWOT Analysis
Strengths Opportunities
Leader in milk production Growing per capita income
Best distribution network
increasing scope for expansion
Extensive cold chain network
Ice cream segment is attractive
Well-known brand and gaining popularity in fresh
Fruits
Weaknesses Threats
Operating as cooperative More of a Gujarat concept
attracts lower margin Increased competition will
In ice cream segment it is further lead to reduced margins
generally considered to be a
brand of middle income group
BCG Matrix
High Low
STARS QUESTION MARKS
Milk Chocolates
High Ice-creams Pizza
Butter
CASH COWS DOGS
Pouch Milk
Low Butter
Ghee
13. 13
1.2~ TASK GIVEN
1.2.1 Amul Epic Ice cream
Epic is the extrusion category product introduced by Amul.
Variants available-
Choco almond and strawberry vanilla.
Status of Epic and feedback at retail outlets
1. Low product awareness and compared with magnum, sold as
Amul‟s Magnum and therefore has no individual identity.
2. Retailers were not keen in keeping Epic due to low demand.
3. A box contains 16 piece and with 6 months of expiry and low
demand, retailers hesitate to give quantity orders.
4. Lack of promotion.
EFFORTS TO IMPROVE EPIC ACCEPTABILITY
Danglers of EPIC were placed in every retail shop to
increase awareness.
Pushing of schemes to increase sales
Found out reasons from retailers for not ordering Epic.
Visibility was increased through hoardings.
Price difference of Epic and Magnum was made clear to
retailers and made sure that Epic gets a visible place in
deep freezer.
1.2.2 Amul Paneer
Study of Paneer for retail penetration includes
Checking the availability and demand of Paneer at different
outlets.
Why people prefer buying Paneer from Dairy distributor and
not from ice cream distributor.
14. 14
Observations are:
Demand for Paneer is high and further moving up but people
prefer a pack of 100gms and not of 200gms. Due to
unavailability of 100gms packs, sales of Paneer took a
backseat.
Margins for Amul Paneer is lower than other brands selling the
same..
Retailers who keep dairy products are able to sell more of Amul
Paneer due to a pre-concived notion of customers that Kirana or
dairy shops will always have the availibity but the case may not
be same for the ice-cream store.
3. DMS Working Paper
Amul India GCMMF Ltd. introduced Distribution Management
System (DMS) software at its Wholesale Distributors (WD). This is
an attempt to centralise whole system and keep a check on
distributors. It is initiated with a view to provide integrated holistic
view of the company‟s secondary sales and to facilitate informed
decision making.
The DMS service covers
- GCMMF Head Office (Anand)
- Zonal & Sales Offices of GCMMF Ltd.
- Wholesale Distributors (WDs) and Sub WDs
The software supports the existing SAP system for master data for
better integration with DMS system for two way data exchange. The
DMS system includes information such as:-
- Data of all Masters i.e. Zone, State, Town, Depots
- All Product info with product hierarchy
- Prices and Shelf life of products
- Purchase Orders, Goods Receipts
- Stock Details including batch info
- Product promotion schemes
3.1 DMS FUNCTIONS
The various functions are detailed as follows:-
Distributor are now able to divide the beat wise retail outlets.
15. 15
Beat Master is a function that contains information about all
the retailers in that area and also information about their orders
and bills, payments.
Schemes are automatically updated in DMS and accordingly
distributor can pass on the same to retailers.
Recording and tracking payments through purchase order.
Downloading of electronic purchase invoice and
Reconciliation of invoiced stock vs. actual stock received.
Tracking of stock-in-transit from factory/depot to the
distributor.
Managing stock from opening to closing, transferring stock,
short items, slow moving items, all are done by DMS.
Sales management by recording orders from retail outlets,
generating sales invoice, automatic application of promotions,
recording sales returns, defining and tracking targets for sales
team, checking credit limit in days and amount at the time of
invoicing.
Detailed reports are also generated and maintained by DMS. These
include:-
Sales by FSR, distributor, period, channel, class, beat,
brand/sub-brand/SKU, salesperson
Distributor-wise Inventory
In-transit report
Returns Reports
Masters: Distributor Masters and Retailer Masters
Target information by distributor, by salesperson
Target v/s achievement for distributors, for salespersons
Stock report by distributor by stock/value
Outlet coverage reports
Sale Report: Available with Filter Option for Product hierarchy
in SAP and Customer Name with Date range, location.
Purchase Report: Available with Filter Option Product
hierarchy in SAP and Supplier Name with Date range,
Location.
Stock Report: This report will display the stock of Material,
WDs consolidated Stock with options for Product hierarchy in
SAP with Expiry date, Location with Date range.
Schemes Report: Schemes Utilization reports.
Discount Report: The discount given on Items, Bill report.
Expiry Report: The items expired with Option for Product
hierarchy in SAP with Date range.
Product wise profitability report
16. 16
Data Transfer Reports
Stock age analysis Report
Stock discrepancy report based on computer and physical stock
3.2 ADVANTAGES OF DMS
1. Facilitates Distributors and Salesman in record keeping.
2. Smartphone is a basis of uploading and downloading everyday
orders and billing is done accordingly i.e. everything goes in
sync.
3. Though it‟s an online software, but just transfer of Data
requires data usage..
4. Tracking and maintenance of stock is easy as the purchase
receipt can easily be generated by the system
5. Various reports can be generated indicating status of stock,
dead outlets, top performing outlets etc., to analyse the market
and sales position of the respective distributor.
3.3 Drawbacks and Suggestions for DMS-
1. Distributors already have personnel SAP like system for stock
keeping making implementation of DMS technically
challenging and time consuming.
2. The earlier ERP systems are DOS based system which the WD
is adept with and operates faster on it compared to DMS.
3. The product codes in both the systems are different, making it
difficult to do both simultaneously.
4. In mobile app, categorisation of Amul ice creams is not as it
was before, for example Tubs was one of the categories before
but in this app it is sub-divided in three different categories.
There are colour codes in mobile app to take an order.
Orange represents
that stock is available and Red represents no stock.
More distinct colours for example green for having
stock, yellow for less units and red for no stock.
5. The training given to the employee at WD is not thorough.
Time consuming process for salesman as they have beats to complete (30
17. 17
shops approx. /day). So by using DMS they are doing double effort, taking
orders on paper and then transferring it to mobile Application
1.3~ REASON TO APPOINT THE PROJECT
The main reason why the company appointed this project was.
To understand the market condition at the ground level.
To find out the gap on which we could capitalized.
To map out and reach the target customers.
To increase the visibility of the product, while maintaining and
building the strong relationship with the new and existing customers.
18. 18
1.4~ OBJECTIVE OF THE PROJECT.
1. Primary Objective
To study retail penetration status of AMUL ice cream for
Mumbai market and suggest ways to improve volume sales in
Mumbai market.
2. Secondary Objective
To Study the level of consumption of take home packs of Amul
ice cream
To know satisfaction level of consumer and retailers.
To know the perception of customer‟s regarding the Price,
Availability, Test and quality offered by the Amul Ice-
cream.
To know the reasons for change- why customer/consumer
not purchase Amul ice-cream.
To know retailers perception and their interest levels in
selling Amul ice cream
To know the suggestions from retailers and customer‟s to
improve the product.
19. 19
PHASE-II
2.Market Research Project on AMUL EPIC
Acceptability and Availability
2.1 Research Methodology
To conduct an intensive primary research to understand the Market
availability of an AMUL EPIC in the market, to know and review the
product norms and collect data for further analysis. This stage will help to
answer important questions and issue, which inhabit growth and
segmentation in the Amul Ice-cream (EPIC).
Questions:
Is the product premium?
Is the targeted market right?
What is the availability and acceptability?
Will the product sustain in the market for long run?
2.2 Research Process
The process have 4 distinct yet interrelated steps of research analysis it has
a logical and hierarchical ordering:
Determining of information research problem.
Developing appropriate research design.
Execution of research design.
Commution of results.
20. 20
Procedure:
1.) We 4 as a group were assigned a project on Amul Epic.
2.) We divided our task in equal amongs 4 of us.
3.) Specifically we carried survey on sample size of
Customers =600 Retailers=300
4.) We conducted a survey with the help of questionnaire , differently on
Customers and Retailers.
5.) All over Mumbai as per our convenience we surveyed in a time span of
23 days.
6.) We inserted a data in excel sheet separately for customers and retailers.
7.) Then with the help of SPSS software we did the analysis on the
collected data.
8.) On the basis of findings in SPSS we came across the certain problem
for amul epic and we developed certain recommendation on that.
21. 21
2.3 Questionnaire for AMUL EPIC (Retailer)
1. I am well aware of Amul Epic.
a. Yes b. No
YES
NO
2. Selling Amul Epic has a better Margin.
a. Strongly disagree b. Disagree c. Neutral d. Agree e. Strongly agree
2.36
23.31
44.25
25
4.72
0
5
10
15
20
25
30
35
40
45
50
S.Disagree Disagree Neutral Agree S. Agree
22. 22
3. Promotion of Amul Epic is done on a large scale.
a. Strongly disagree b. Disagree c. Neutral d. Agree e. Strongly agree
2
15
17.9
54.72
10.13
0
10
20
30
40
50
60
S.Disagree Disagree Neutral Agree S. Agree
4. Packaging is much attractive.
a. Strongly disagree b. Disagree c. Neutral d. Agree e. Strongly agree
5.4
17.9 18.91
32.43
25
0
5
10
15
20
25
30
35
S.Disagree Disagree Neutral Agree S. Agree
23. 23
5. Visibility is up to the mark i.e (Bill boards,hoardings,pamplets etc.)
a. Strongly disagree b. Disagree c. Neutral d. Agree e. Strongly agree
2.36
10.47
17.72
55.74
13.85
0
10
20
30
40
50
60
S.Disagree Disagree Neutral Agree S. Agree
6. Easily available when you are needed.
a. Strongly disagree b. Disagree c. Neutral d. Agree e. Strongly agree
7.09
16.55
51.68
20.6
3.71
0
10
20
30
40
50
60
S.Disagree Disagree Neutral Agree S. Agree
24. 24
7. Delivery from the vendor is not an issue at all i.e (on time,no faulty
Sku's etc)
a. Strongly disagree b. Disagree c. Neutral d. Agree e. Strongly agree
13.85 15.2
30.74
38.51
1.35
0
5
10
15
20
25
30
35
40
45
S.Disagree Disagree Neutral Agree S. Agree
8. Amul should come up with more flavours in Epic.
a. Yes b. No
80%
20%
YES
NO
25. 25
9. Customer demands on regular basis for Epic.
a. Strongly disagree b. Disagree c. Neutral d. Agree e. Strongly agree
6
27.7
32.43 33.44
0
0
5
10
15
20
25
30
35
40
S.Disagree Disagree Neutral Agree S. Agree
10. Overall branding of an Amul Epic is been nicely done.
a. Strongly disagree b. Disagree c. Neutral d. Agree e. Strongly agree
6.41
13.51
30.74
46.28
2.7
0
5
10
15
20
25
30
35
40
45
50
S.Disagree Disagree Neutral Agree S. Agree
26. 26
2.4 Questionnaire for AMUL EPIC (Consumer)
1. How often you consume ice-cream?
a) Everyday b) Alternate day c) Weekends d) Monthly
e) Yearly f) Others
12.67
10.66
38.83
17.16
7.16
13.5
0
5
10
15
20
25
30
35
40
45
Everyday Alt. Day Weekend Monthly Yearly Others
2. What brands comes first to your mind when word ice-cream is used?
a) Amul b) Havmor c) Kwality walls d) Cream bell e) Vadilal
f) others
39.33
11.83
21.67
9 8.5 9.6
0
5
10
15
20
25
30
35
40
45
Amul Havmor K.W Cream Bell Vadilal Others
27. 27
3. Place you prefer for purchasing ice cream
a) Parlour b) Convenient store c) Shop d) Malls e) others
24.33
34.66
23.83
10.83
6.33
0
5
10
15
20
25
30
35
40
Parlour Con. Store Shops Malls Others
4. Have you ever tasted Amul ice cream?
a)Yes b)No
88%
12%
YES
NO
28. 28
5.In ice cream what do you prefer ?
a)Sticks b)Family pack c)Cups d)Cones e)Others
20.33
22.5
28.83
18.5
10.33
0
5
10
15
20
25
30
35
Sticks F.P Cups Cones Others
6. Have you tasted Amul Epic, the new entrant in extrusion segment?
a) Yes b) No
43%
57%
YES
NO
29. 29
7. How would you rate Amul Epic
a) In terms of taste :
1-2-3-4-5-6-7-8-9
0
0.83 1
2.16
5.16
7.66
8.66
11.33
7.5
0
2
4
6
8
10
12
1 2 3 4 5 6 7 8 9
b) In terms of quality : 1-2-3-4-5-6-7-8-9
0.33
1.33
0.66
5.33
6.83
9.83
12.16
6.33
7.5
0
2
4
6
8
10
12
14
1 2 3 4 5 6 7 8 9
30. 30
8. What suggestion from your side for Amul Epic ?
a) Quality b)Pricing c)Promotion d)Packaging e)Flavor f)Other
7.83 7.66
9.83
7.33
8.16
2
0
2
4
6
8
10
12
Quality Pricing Promotion Packaging Flavor Others
9. In case you don‟t find extrusion product, on which product would you
like to switch on.
a) Cups b) Cones c) Family pack
35
46.33
18.66
0
5
10
15
20
25
30
35
40
45
50
Cups Cones F.P
31. 31
2.5 Factor Analysis
In my analysis I have used factor analysis to determine the major factors
which influence the volume sales of ice creams of AMUL in Mumbai.
Volume is related to the underlying perception of a consumer about
AMUL ice cream which is influenced by many variables.
During my survey I found that these following attributes that influence the
consumer to increase purchase thereby increasing volume sales:-
-Taste
-Availability of Desired Flavour
-Packing
-Promotions
On doing the statistical analysis using SPSS I got the following results:
INFERENCE
From the above analysis I can observe the following:-
Factor 1- can be named as factor of feeling Variables that are related in
this factor relates to taste, packaging, promotion etc.
Factor 2- can be named as human factor Variables here are related to age
and family members
Factor 3- can be named as buying factor Variables in this factor
determining the buying patterns
Factor 4- can be named as random factor Variables in this factor has no
particular significance
32. 32
Communalities
Initial Extraction
rating of taste 1.000 .936
rating of quality 1.000 .953
how often 1.000 .676
Brand 1.000 .399
Place 1.000 .495
taste amul ic 1.000 .625
Preference 1.000 .589
taste of amul epic 1.000 .948
Suggestion 1.000 .866
Alternative 1.000 .672
Extraction Method: Principal Component
Analysis.
Rotated Component Matrix
a
Component
1 2 3 4
rating of taste .962 -.099 .007 .023
rating of quality .973 -.082 .009 .019
how often -.144 .739 .248 .215
Brand -.153 .561 -.242 -.048
Place .087 .464 -.024 -.521
taste amul ic .013 -.074 -.718 .324
Preference .053 -.096 .716 .253
taste of amul epic -.971 .067 -.008 .013
Suggestion .919 -.118 .057 .063
Alternative .105 .187 -.016 .791
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.
33. 33
Communalities
Initial Extraction
Margin 1.000 .569
Promotion 1.000 .401
Packaging 1.000 .464
Visibility 1.000 .554
Availability to Retailer 1.000 .461
Delivery to Retailer 1.000 .657
Demand for Epic 1.000 .660
Branding 1.000 .579
Extraction Method: Principal Component Analysis.
Component Matrix
a
Component
1 2 3
Margin .528 -.532 .084
Promotion .607 -.178 .036
Packaging .450 .354 -.369
Visibility .602 -.307 -.312
Availability to Retailer .301 -.074 .604
Delivery to Retailer .170 .730 .310
Demand for Epic .558 .434 -.401
Branding .500 .142 .555
Extraction Method: Principal Component Analysis.
a. 3 components extracted.
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Problems on Amul Epic:
1.) Target market is not specified.
2.) Overall Branding issue (promotion,packaging).
3.) Quality is not up to the mark if we consider extrusion segment.
4.) Delivery.
Recommendations:
1.) Repositioning.
2.) Come up with new Flavors.
3.) Pull out Epic 2-in-1 from the market.
4.) Promote on higher scale.
5.) Tie up with premium food chains.
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3.Problems Faced by Retailers and Solutions
The first and most common problem among retailers is the
replacement of expired or damaged products. An effective way to
resolve this issue is to provide tentative dates for the replacement.
In my survey, I found that some retail outlets are unaware about the
schemes offered for a particular period. Hence, a text service could
be proposed to resolve this under which an SMS would be sent to
concerned retailers.
There are complaints about less number of units in a box of products
like Fro stick, Kulfi and mango dolly. Informing the manufacturing
unit would reduce the frequency of such complaints.
The complaints regarding damaged stick item is increasing and a
solution to this would be to monitor the distribution method of
distributor to check whether it‟s a manufacturing mistake or
distribution.
For bricks like Fruit and Nut 2ltr packs, the seal around the edges is
seen damaged at delivery point. The WD thus is seen to superficially
close the edges thus tampering with the packaging itself. A thorough
check should be carried out while transporting to WD points and
communicated and updated via DMS.
Some retail outlets don‟t get the proper branding done by the
company, as they don‟t have the latest menu cards, danglers etc. So,
the PSM should have monthly visits at least during the peak season
to have a check on that. Because Visibility and awareness is highly
important for a product to sustain, as EPIC lacked hard core
promotions and visibility, hence it wasn‟t a big success.
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3.1 IMPROVEMENT SUGGESTIONS
Setup more walk in stores i.e. more AMUL parlours
Bring in more Fresh fruit flavours not just Anjeer and litchi.
Keep on bringing small schemes it doesn‟t affect profit but
impacts customers and helps in increasing customer base.
Go for more promotions through cheap or inexpensive
schemes.
Have more products in premium segment as this sector is
picking up.
3.2 Limitations of the Study
Study was conducted for Mumbai market, situation could be
different for other states and nation
This project was carried out in peak season i.e. in month of
May, demand may not be same for other months
Basically Amul outlets were covered for the study, results
might differ without other outlets being considered
Time period of project was 10days which is not sufficient to
understand a market like Mumbai
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3.3 Learning Points
Marketing cannot be learned without taking practical experience in
market. Marketing is incomplete without sales knowledge as salesman and
retailers‟ sense consumers‟ tastes and preferences better when it comes to
FMCG products especially something like Ice creams. I was allotted a
distributor name- R.K. Marketing. Out of 60 days I worked 40 days in
market, wherein I learned many things.
My primary job there was to make sure certain things
1. Going to market with salesman according to decided area and
to make sure
He takes proper orders
Promotes new products
Listen to grievances
Timely delivery
Tell retailers about new schemes
2. In market, talking to retailers- making them aware of new
things and other parameters on which they can increase sales.
3. Making sure that proper branding of Amul is done through
danglers and name boards.
4. Proper use of DMS- Data management system. It is the newly
installed software which helps distributors to streamline every
single SKU. It provides a platform where salesman has to sync
his smart phone with the distributors pc and they are updated
for stock and they can also upload daily orders
5. To ensure that distributor is using DMS properly and taking out
bills from software only as it ease the stock updating process
Apart from this in absence of salesman, I covered market myself and
get orders
1. I covered market alone for 5 days
2. In each day I was able to generate sales of rupees 1 lacs
3. Was able to sell 20 scheme orders
Also my distributor was having many dead outlets. Initially I had 42
dead outlets and by the time I completed my 60 days span, 26 were
converted .
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3.4 Conclusion
I‟ll start with the point that every product has its own market and AMUL
has created a market space for itself which all its competitors couldn‟t.
Though AMUL provides less margin but still with brand image that
AMUL possess and relation it maintains with distributors and retailers,
provides it a status way above its competitors.
Exposure to market made me learn few golden principles of
“practical marketing”
Your salesman needs to know well about Company‟s
product before he sells it.
A product should be properly placed and compete only
when it is required.
Listen to what your retailer has to say may be complains
suggestions or any enquiry
This helps you to win retailer‟s confidence
Proper visits; timely delivery is what everyone counts. There is
enough demand in the Market, if you will not cater others will. So be
particular about your supply chain.
Be clear with your terms and conditions, it helps you establish as a
good brand.
There will always be dissatisfied and complaining customers or
retailers, do filter Listening.
Keep track of what your competitors are doing and move
accordingly.
Analyse market needs and demand and then you can compete on
various aspects like price Quality, supply chain.
If you want to learn marketing, market experience is must.
No matter what position you hold, customer is always the king.
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This project helped me in knowing about how to conduct a study and
find relevant study. Amul proved that if you are just playing on your
strengths, you need not indulge in marketing wars with competitors.
Amul is still no 1 in Ice-cream in Mumbai and still growing and they
can expand on fresh fruits flavours.
In all it was a good experience working with AMUL, learned lot
many things and market experience will help for marketing field.
