AN ANALYSIS ON CONSUMER PREFERENCE f OR AMUL PRODUCTS
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CHAPTER 1
Introduction
Profile of the Company
Amul
Amul (priceless in Sanskrit). The brand name "Amul,"
from the Sanskrit "Amoolya" (meaning Precious) was
suggested by a quality control expert in Anand,
formed in 1946, is a dairy cooperative in India.
Amul is considered s India’s best known local brand
across all categories.
Amul The Taste of India, a brand so distinctively
Indian has been a part of our lives for nearly five
decades now and still is able to touch a chord in
our hearts. As a brand AMUL has grown from being
merely a differentiating factor to protect the
interests of producers and consumers. AMUL inspired
'Operation Flood' and heralded the 'White
Revolution' in India. It began with two village
cooperatives and 250 liters of milk per day,
nothing but ooze compared to the flood it has become
today. AMUL distributes over a million liters of
milk per day, it also collects and processes various
milk products, during the peak, on behalf of more
than a thousand village individually owned by half a
million farmer members. AMUL too has become a symbol
of the aspirations of millions of farmers.
AMUL sprung from the seeds sown in the black soil of
CHAROTAR, an area in the KAIRA district of Gujarat,
as a cooperative movement to empower the milk
producers. At that time POLSON Dairy was the biggest
buyer of the milk being produced in KAIRA. Polson
was built on the basis of providing superior quality
products to up-market consumers. However Polson’s
products were not the reason that led to the rise of
AMUL, it was its exploitative practices that started
the cooperative revolution.
For several years the KAIRA cooperative supplied
milk and allied products without a formal
distribution network leave alone a brand name. The
name Amul was most probably suggested by a quality
control expert in Anand. It was derived from
”Amulya”, which in Sanskrit, Gujarati and many other
Indian languages, means priceless, and implies
matchless excellence. The name was short, memorable
and easily pronounced. It could also serve as an
acronym for the organization – the unusable KDCMPUL
(Kaira District Cooperative Milk Producer’s Union
Limited) taken from Kaira Cooperative’s full name,
could be substituted by AMUL, standing for Anand
Milk Union Limited. Even though AMUL products have
been in use in millions of homes since 1946, the
brand AMUL was registered only in 1957.
1.2 The Three-tier "Amul Model"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 further federated into a Milk Federation at the
State level. The above three-tier structure was set-
up in order to delegate the various functions, milk
collection is done at the Village Dairy Society,
Milk Procurement & Processing at the District Milk
Union and Milk & Milk Products Marketing at the
State Milk Federation. This helps in eliminating not
only internal competition but also ensuring that
economies of scale is achieved. As the above
structure was first 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.
Responsible for Marketing of Milk & Milk Products
Responsible for Procurement & Processing of Milk
Responsible for Collection of Milk Responsible for
Milk Production.
Village Dairy Cooperative Society (VDCS)
The milk producers of a village, having surplus milk
after own consumption, come together and form a
Village Dairy Cooperative Society (VDCS). The
Village Dairy Cooperative is the primary society
under the three-tier structure. It has membership of
milk producers of the village and is governed by an
elected Management Committee consisting of 9 to 12
elected representatives of the milk producers based
on the principle of one member, one vote. The
village society further appoints a Secretary (a paid
employee and member secretary of the Management
Committee) for management of the day-to-day
functions. It also employs various people for
assisting the Secretary in accomplishing his / her
daily duties.
The main functions of the VDCS are as follows:
Collection of surplus milk from the milk
producers of the village & payment based on
quality & quantity
Providing support services to the members like
Veterinary First Aid, Artificial Insemination
services, cattle-feed sales, mineral mixture
sales, fodder & fodder seed sales, conducting
training on Animal Husbandry & Dairying, etc.
Selling liquid milk for local consumers of the
village.
Supplying milk to the District Milk Union Thus,
the VDCS in an independent entity managed
locally by the milk producers and assisted by
the District Milk Union.
District Cooperative Milk Producers’ Union (Milk
Union)
The Village Societies of a District (ranging from 75
to 1653 per Milk Union in Gujarat) having surplus
milk after local sales come together and form a
District Milk Union. The Milk Union is the second
tier under the three-tier structure. It has
membership of Village Dairy Societies of the
District and is governed by a Board of Directors
consisting of 9 to 18 elected representatives of the
Village Societies. The Milk Union further appoints a
professional Managing Director (paid employee and
member secretary of the Board) for management of the
day-to-day functions. It also employs various people
for assisting the Managing Director in accomplishing
his / her daily duties.
The main functions of the Milk Union are as follows:
Procurement of milk from the Village Dairy
Societies of the District
Arranging transportation of raw milk from the
VDCS to the Milk Union.
Providing input services to the producers like
Veterinary Care, Artificial Insemination
services, cattle-feed sales, mineral mixture
sales, fodder & fodder seed sales, etc.
Conducting training on Cooperative Development,
Animal Husbandry & Dairying for milk producers
and conducting specialised skill development &
Leadership Development training for VDCS staff
& Management Committee members.
Providing management support to the VDCS along
with regular supervision of its activities.
Establish Chilling Centres & Dairy Plants for
processing the milk received from the villages.
Selling liquid milk & milk products within the
District
Process milk into various milk & milk products
as per the requirement of State Marketing
Federation.
Decide on the prices of milk to be paid to milk
producers as well on the prices of support
services provided to members.
State Cooperative Milk Federation (Federation)
The Milk Unions of a State are federated into a
State Cooperative Milk Federation. The Federation is
the apex tier under the three-tier structure. It has
membership of all the cooperative Milk Unions of the
State and is governed by a Board of Directors
consisting of one elected representative of each
Milk Union. The State Federation further appoints a
Managing Director (paid employee and member
secretary of the Board) for management of the day-
to-day functions. It also employs various people for
assisting the Managing Director in accomplishing his
daily duties.
The main functions of the Federation are asfollows:
Marketing of milk & milk products processed /
manufactured by Milk Unions.
Establish distribution network for marketing of
milk & milk products.
Arranging transportation of milk & milk products
from the Milk Unions to the market.
Creating & maintaining a brand for marketing of
milk & milk products (brand building).
Providing support services to the Milk Unions &
members like Technical Inputs, management support
& 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 & milk products to be
paid to Milk Unions.
Decide on the products to be manufactured at
various Milk Unions (product-mix) and capacity
required for the same.
Conduct long-term Milk Production, Procurement &
Processing as well as Marketing Planning.
Arranging Finance for the Milk Unions and
providing them technical know-how.
Designing & Providing training on Cooperative
Development, Technical & Marketing functions.
Conflict Resolution & keeping the entire structure
intact.
In the year 2008 the dairy industry in India and
particularly in the State of Gujarat looks very
different. India for one has emerged as the largest
milk producing country in the World. Gujarat has
emerged as the most successful State in terms of
milk and milk product production through its
cooperative dairy movement. The Kaira District
Cooperative Milk Producers’ Union Limited, Anand has
become the focal point of dairy development in the
entire region and AMUL has emerged as one of the
most recognized brands in India, ahead of many
international brands.
Today, around 176 cooperative dairy Unions formed by
1,25,000 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 or a
Nandini in Karnataka. This entire 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 kgs. of milk per
day and pay an aggregate amount of more than
Rs.125 billion to the milk producers in a year.
It is a brand name managed by an apex cooperative
organisation, Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), which today is jointly
owned by some 2.8 million milk producers in Gujarat,
India.
AMUL is based in Anand, Gujarat and has been an
example of a co-operative organization's success in
the long term. It is one of the best examples of co-
operative achievement in the developing economy.
"Anyone who has seen … the dairy cooperatives in the
state of Gujarat, especially the highly successful
one known as AMUL, will naturally wonder what
combination of influences and incentives is needed
to multiply such a model a thousand times over in
developing regions everywhere." The Amul Pattern has
established itself as a uniquely appropriate model
for rural development. Amul has spurred the White
Revolution of India, which has made India the
largest producer of milk and milk products in the
world. It is also the world's biggest vegetarian
cheese brand.
Amul is the largest food brand in India and world's
Largest Pouched Milk Brand with an annual turnover
of US $1050 million (2006–07). Currently Unions
making up GCMMF have 2.8 million producer members
with milk collection average of 10.16 million litres
per day. Besides India, Amul has 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
market in 1994 did not succeed, but now it has fresh
plans entering the Japanese markets. Other potential
markets being considered include Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF, is
recognised as a key person behind the success of
Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the
Banaskantha Union, was elected chairman of GCMMF.
1.5 GCMMF TodayGCMMF is India's largest food products marketing
organisation. It is a state level apex body of milk
cooperatives in Gujarat, which aims to provide
remunerative returns to the farmers and also serve
the interest of consumers by providing affordable
quality products. GCMMF markets and manages the Amul
brand. From mid-1990s Amul has entered areas not
related directly to its core business. Its entry
into ice cream was regarded as successful due to the
large market share it was able to capture within a
short period of time – primarily due to the price
differential and the brand name. It also entered the
pizza business, where the base and the recipes were
made available to restaurant owners who could price
it as low as 30 rupees per pizza when the other
players were charging upwards of 100 rupees.
1.6 Company informationThe Gujarat Cooperative Milk Marketing Federation
Ltd, Anand (GCMMF) is the largest food products
marketing organisation of India. It is the apex
organization of the Dairy Cooperatives of Gujarat.
This State has been a pioneer in organizing dairy
cooperatives and our success has not only been
emulated in India but serves as a model for rest of
the World. Over the last five and a half decades,
Dairy Cooperatives in Gujarat have created an
economic network that links more than 2.8 million
village milk producers with millions of consumers in
India and abroad through a cooperative system that
includes 13,141 Village Dairy Cooperative Societies
(VDCS) at the village level, affiliated to 13
District Cooperative Milk Producers’ Unions at the
District level and GCMMF at the State level. These
cooperatives collect on an average 7.5 million
litres of milk per day from their producer members,
more than 70% of whom are small, marginal farmers
and landless labourers and include a sizeable
population of tribal folk and people belonging to
the scheduled castes.
The turnover of GCMMF (AMUL) during 2008-09 was Rs.
67.11 billion. It markets the products, produced by
the district milk unions in 30 dairy plants, under
the renowned AMUL brand name. The combined
processing capacity of these plants is 11.6 million
litres per day, with four dairy plants having
processing capacity in excess of 1 million Litres
per day. The farmers of Gujarat own the largest
state of the art dairy plant in Asia – Mother Dairy,
Gandhinagar, Gujarat – which can handle 2.5 million
litres of milk per day and process 100 MTs of milk
powder daily. During the last year, 3.1 billion
litres of milk was collected by Member Unions of
GCMMF. Huge capacities for milk drying, product
manufacture and cattle feed manufacture have been
installed. All its products are manufactured under
the most hygienic conditions. All dairy plants of
the unions are ISO 9001-2000, ISO 22000 and HACCP
certified. GCMMF (AMUL)’s Total Quality Management
ensures the quality of products right from the
starting point (milk producer) through the value
chain until it reaches the consumer.
Ever since the movement was launched fifty-five
years ago, Gujarat’s Dairy Cooperatives have brought
about a significant social and economic change to
our rural people. The Dairy Cooperatives have helped
in ending the exploitation of farmers and
demonstrated that when our rural producers benefit,
the community and nation benefits as well.
The Gujarat Cooperative Milk Marketing Federation
Ltd. cannot be viewed simply as a business
enterprise. It is an institution created by the milk
producers themselves to primarily safeguard their
interest economically, socially as well as
democratically. Business houses create profit in
order to distribute it to the shareholders. In the
case of GCMMF the surplus is ploughed back to
farmers through the District Unions as well as the
village societies. This circulation of capital with
value addition within the structure not only
benefits the final beneficiary – the farmer – but
eventually contributes to the development of the
village community. This is the most significant
contribution the Amul Model cooperatives has made in
building the Nation.
COMPANY PROFILE
1. Formed in 1946, Amul has initiated the Dairy Cooperative
movement in India and formed an Apex Cooperative
Organization, Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), jointly owned by some 2.1 million
milk producers in Gujarat, India. Its products, including
milk powders, liquid milk, butter, ghee, cheese, chocolate,
ice cream and pizza are widely used throughout India and
abroad and have made Amul the largest food brand in India
today with an annual turnover of some Rs.29 Billion ($US
616 million) per annum.
2. The primary goal of Dr. V. Kurien, Chairman, GCMMF, has
been to build a strong Indian society economically through
an innovative cooperative network, to provide quality
service and products to end- consumers and good returns to
the farmer members. Dr. Kurien states, “We have traversed a
path that few have dared to. We are continuing on a path
that still fewer have the courage to follow. We must pursue
a path that even fewer can dream to pursue. Yet, we must.
We hold on trust the aims and aspirations o millions of our
countrymen”.
3. Information Technology has played a significant role in
developing the Amul brand. The logistics behind co-
ordinating the collection of some 6 million litres of milk
per day from 10,755 separate Village Cooperative Societies
throughout Gujarat and then storing, processing and
producing milk products at the respective 12 District Dairy
Unions, are awesome. The installation of 3000 Automatic
Milk Collection System Units (AMCUS) at Village Societies
to capture member information, milk fat content, volume
collected and amount payable to each member has proved
invaluable in ensuring fairness and transparency throughout
the whole Amul organization.
4. In 1996 Amul was one of the first major organizations in
India to have a website and this has been used both to
develop an intranet of Amul distributors as well as a
cyber-store for consumers, one of the first examples of e-
commerce activity in India.
AMUL AND CO-OPERATION
The CEO, Mr. B M Vyas, said that. “Amul is not a food
company; it is an IT company in the food business”. In
saying this he was recognizing that the most efficient way
of building links between milk producers and consumers so as
to provide the best returns for the both is through IT
innovation.
Thus is why Amul has embraced the ideas behind coop with
such enthusiasm. Not only will the TLD enable consumers in
India to recognize an established brand they can trust
online, it will enable Amul to begin trading competitively
throughout the world, reaching markets, which have hitherto
been inaccessible.
The CIO, Mr. Subbarao Hegde said, “Information Technology is
the most effective tool we have in communicating with our
members and the millions of consumers who purchase Amul
products throughout India every day. Coop not only reflects
the cooperative values which shape our own organization
democratically dynamic, it will also give us a vital
business advantage as we seek to develop the Amul brand
throughout the world.”
GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION (GCMMF)
An Overview: -
Gujarat Cooperative Milk Marketing Federation (GCMMF)
is India’s largest food products marketing organization. It
is state level apex body of milk cooperative in Gujarat
which aims to provide remunerative returns to the farmers
and also serve the interest of consumers by providing
quality products which are good value for money.
Members:12 district cooperative milk producers UnionNo. of Producers Members 2.36 millionNo. of Village Societies 11,333Total Milk handling capacity6.9 million liters per dayMilk collection (Total –2002-03) 1.86 billion liters
Milk collection (Daily Average (2003-04) 4.97million litersMilk Drying Capacity 511metric Tons per dayCattle feed manufacturing2340 Mats per dayCapacity:
SalesTurnover
Rs(million) US $ (in
millions)1994-95 11140 3551995-96 13790 4001996-97 15540 4501997-98 18840 4551998-99 22192 4931999-00 22185 4932000-01 22588 5002001-02 23365 5002002-03 27457 5752003-04 28941 6162005-06 37736 8502006-07 42778 10502007-08 52448 13252008-09 67113 1504
PEST ANALYSIS OF AMUL
P-) Since the budget range is decontrolled, no political
effects are envisaged.
E-1) Increasing per capita income resulting in higher
disposable income
2) Growing middle class/urban population – increase
in demand.
3) Low cost of production – better penetration.
S-1) Per capita consumption expected to increase –
fashion.
2) Increasing gifts culture – increase in demand.
3) Lower cholesterol than “Mithais” (sweet meat) –
substitute demand
T-) Will have to reinforce technology to international
levels once India is a “free” economy
4 P’S OF MARKETING
PRODUCT:-
Satisfaction suffices. But delight dazzles the average
company will compete for customer by conforming to her
expectation consistently. But the winner will surpass them
by constantly exceeding her expectation, delivering to her
door step additional benefits which she would never have
imagined possible. Cadbury’s offer such product. The wide
variety products offered by the company include:
List of Products Marketed: -
Breadspreads: Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter
Cheese Range: Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Frozen and
Tinned Utterly Delicious Pizza
Mithaee Range (Ethnic Sweets): Amul Shrikhand (Mango, Saffron, Almond Pistachio,
Cardamom) Amul Amrakhand
Amul Mithaee Gulabjamuns Amul Mithae Gulabjamun Mix Amul Mithaee Kulfi Mix
UHT Milk Range: Amul Taaza 3% fat Milk Amul Gold 4.5% fat Milk Amul Slim-n-Trim 0% fat Milk Amul Chocolate Milk Amul Fresh Cream Amul Snowcap Softy Mix Amul Taaza Double Toned Milk
Pure Ghee: Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee
Infant Milk Range: Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 (6 months) Amulspray Infant Milk Food
Milk Powders: Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener
Sweetened Condensed Milk: Amul Mithaimate Sweetened Condensed Milk
Fresh Milk: Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 3% fat Amul Smart Double Toned Milk 1.5% fat
Curd Products: Amul Masti Dahi (fresh curd) Amul Butter Milk ,Amul Lassee
Amul Icecreams: Royal Treat Range (Rajbhog, Cappuccino, Chocohips,
Butterscotch, Tutti Frutti) Nut-o-Mania Range (Kaju Drakshi, Kesar Pista,
Roasted Almond, Kerar Carival, Badshahi BadamKulfi, Shista Pista Kulfi)
Utsav Range (Anjir, Roasted Almond) Simply Delicious Range ( Vanilla, Strawberry,
Pineapple, Rose, Chocolate) Nature’s Treat (Alphanso Mango, Fresh Litchi,
Anjir, Fresh Strawberry, Black Currant) Sundae Range (Mango, Black Currant, Chocolate,
Strawberry) Millennium Icecream (Cheese with Almonds, Dates
with Honey) Milk Bars (Chocobar, Mango Dolly, Raspberry
Dolly,Shahi Badam Kulfi, Shahi Pista Kulfi, MawaMalai Kulfi, Green Pista Kulfi)
Cool Candies (Orange, Mango) Cassatta Tricone (Butterscotch, Chocolate) Megabite Almond Cone Frostik – 3 layer chocolate Bar Fundoo Range – exclusively for kids SlimScoop Fat Free Frozen Dessert (Vanilla, Banana,
Mango, Pineapple) Health: Isabcool
Chocolate & Confectionery: Amul Milk Chocolate Amul Almondbar Amul Fundoo Amul Chocozoo Amul Bindaaz Amul Fruit & Nut Chocolate
Brown Beverage: Nutramul Malted Milk Food
Milk Drink: Amul Shakti Flavoured Milk
Ready to Serve Soups: Masti Hot & Sour Soup
PRICING:-
Second P of marketing is not another name for blindly
lowering prices and relying on this strategy alone to
increase sales dramatically. The strategy used by Cadbury’s
is for matching the value that customer pays to buy the
product with the expectation they have about what the
production is worth to them.
AMUL has launched various products which cater to all
customer segments. So every customer segment has
different price expectation from the product. Therefore
maximizing the returns involves identifying right price
level for each segment, and then progressively moving
through them.
In milk chocolate Amul has the following brands:
All thechocolates are made upof:
Milk Fat- (2%) Sugar- (55%) Cocoa Solids- (7.5%) Solid Milk - (20%)
Physical Distribution – “Place”
In a product and price parity situation, the brand that
sells more is the one that reaches the highest number of
customers. India – 1 billion people, 155 million household
has over 4 million retail outlets in 5351 urban markets and
552725 villages, spread cross 3.28 million sq.
Name ofchocolate
Weight
Price
(Rs.)
Amul MilkChocolate
35g 10
Amul Fundoo 30g 10
Amul Fundoo 15g 5
Amul FruitNut
35g 15
Amul Bindaaz 30g 10
Amul Almondbar 35g 10
Amul Chocozoo 500g(Tub)
138
Promotion
If an advertisement is to communicate effectively, the
receiver must at least half want it to, and be prepared too
take step toward the sender. Effective advertising is rarely
hectoring or loudly explicit…. It often both attracts and
generates arm feelings. More often than not, a successful
campaign has a stronger element of the unexpected a quality
that good advertising shares with much worthwhile
literature.
To penetrate into the inner recesses of her memory,
communication must first ensure exposure, grab her attention
evoke her comprehension, grab her acceptance and then
extract retention competing with thousands of other units of
communication trying to do the same.
AMUL PHILOSOPHY
• Matching demand and supply.
• Vast & strong supply chain network.
• Developing demand.
• Introducing higher value products.
• Umbrella Branding Strategy.
• e-initiative strategy.
Objectives
To gauge the awareness of people towards Amulchocolates.
To find out in which segment chocolates aremostly liked/ preferred.
To understand which advertisement medium mustAMUL use.
To know the perception of Amul chocolates in
comparison to other competitive brands.
To seek the general perception of consumer
towards AMUL CHOCOLATE.
To formulate an IMC strategy for Amul
Chocolate.
The study on this project is to demonstrate the
marketing strategies of Amul India Ltd. And
also 4 P’s of Marketing:-
• Product
• Price
• Physical
• Promotion
Distribution
Scope
In this research the researcher has put an effort to understand the buying behavior of the consumers towards AMULproducts
1. In this report, first of all given a brief review about AMUL sector as a whole.
2. Then has given a review of the findings of some of theresearches that has already been conducted by various researchers.
3. Then has enumerated her research objectives.
4. Then has given the panoramic view regarding the topic.
5. Then has described her research methodology i.e., the sample unit, sample size, sampling region, sampling procedure that He has used in her report.
6. has used stratified random sampling as her sampling procedure.
7. Then has analyzed the data which was collected by a questionnaire.
8. Then has concluded the findings of the survey.
9. Then finally, has given few suggestions & recommendations regarding the topic.
RESEARCH PROBLEM
• Amul chocholate’s Market share decreased to 5% much
less than market leader(79%)
• The awareness level of AMUL CHOCOLATE is very low.
• To find the performance of AMUL CHOCOLATE vis-à-vis
other Brands.
• To know the consumer psyche and their behaviour
towards AMUL CHOCOLATE
Information requirement
• Information about all the competitors present in the
chocolate segment (Reputed & well established brands
as well as Local brands e.g. Cadburies,Nestle etc.)
• Information about the comparative packs and prices
of all the competitors existing in the market.
• To trace the market and segment ,which mainly deals
with people of various age groups.
• Various types of chocolates available in the market
• Information if the television advertisement timing
is effective or not.
Methodology
As far as methodology is concerned, methodology can
be decided on the basis of any number of methods
and ways of collecting, grouping and arranging the
required data or information from different
resources related to the subsequent topic in order
to represent data in a significant manner. Therefore
for the completion of this project I have used the
following two methods of collecting data which are
as follows :-
(a) Primary research :-
Questionnaire is used while performing the
project study and is attached in the appendix
part of the project.
(b) Secondary research:-
Company websites, publication reports, journals
as well as various other different websites are
used in order to collect data.
Sampling :
1. Sampling Technique : Non probability sampling
2. Sample Unit : People who buy chocolates available in retail outlets, superstores etc ( Convenience sampling)
3. Sample size : 100 respondents(Age ranging
between 8 yrs to 65 yrs)
4. Method : Questionnaire(including email)
5. Data analysis method : Graphical method
6. Area of survey : All over India(email questionnaire)
CHAPTER 2
Conceptual framework
INTRODUCTION TO THE TOPIC
.
The topic “Marketing strategies of Amul chocolates“
highlights on the market share of Amul Chocolates in
comparison to existing player in the Milk chocolate Market.
The market share can be found with the help of retailers. As
the competitors are concerned there are only two of them
i.e. Cadbury and Nestle
The study is also concerned to find out the various reasons
due to which the retailers do not prefer to sell Amul
Chocolates. Moreover the study also helps in knowing the
best medium for creating the awareness about the Amul
Chocolates.
To know the Market share and problems faced by retailers is
very important for every organization for their promotion,
expansion and development.
Amul- An overview
Strengths Parent support
Strong distribution network
Weakness Raw material supply – volatile prices
Chocolates - comparatively small business unit
Opportunities Low penetration, consumption;
Introduced father son advertisement, Rose dayadvertisement.
Corporate Image advertisement.
Market share increased to 10 %.
Scope of launching new variants and extensions.
Threats Foreign multinationals.
The birth of Amul
Linked to the freedom movement of India.
Founded in 1946 to stop the exploitation of
milk producers at the hands of middlemen.
Inspiration of pre-eminent national leaders.
A cooperative movement - member control on milk
production, processing & marketing.
A humble beginning with 2 village societies and246 litres of milk.
AMUL PHILOSOPHY
• Matching demand and supply.
• Vast & strong supply chain network.
• Developing demand.
• Introducing higher value products.
• Umbrella Branding Strategy.
• e-initiative strategy.
Amul - Marketing Scenario 1970s – Market Leader.
A classic 1970 - 80 Advertisement .
Amul Ad On Indrajal 1970 80.
1990s Shifted focus in 1990’s towards other milk
products.
Competition from multinationals.
Market share down to 2-3% .
1990s AMUL ADVERTISEMENT Introduced newer
varities of chocolates, like ‘Bindas’, ‘Nuts
About You’ and others, targeting teenagers.
2003 Increase in sales due to cadbury worm
controversy.(20 % increase in sales)
To boost sales, Amul launched three new
chocolates in under the brands Fundoo, Bindaas
and Almond Bar .
While the first two have been priced at Rs.10/-
for a 30 gm stick , Almond Bar carries a price
tag of Rs.10/- for a 35 gm chocolate.
Amul - Marketing Strategy2004Repositioning Strategy
Launch of ‘Chocozoo’ - chocolates in shapes of
motorcycles, aeroplanes, animals and comic
charaters .
Targeted Kids .
Introduced economic variants of chocolates
priced at Rs.1/-, Rs.3/- and Rs.5/-.
A tub of ‘ Chocozoo ’ chocolates were priced at
Rs.138/- for 46 units of chocolates, but
retailers can sell the chocolates loose, at
Rs.3/- each. This, was done to attract kids.
Trendy Look – Removed the cute little butter
girl and cheese boy from its wrappers.
New wrappers , designed by a US firm, trendy
and colourful .
A new tag line: Amul Chocolate — For Someone
You Love.
Not merely gifts, but make a more emotional
pitch with emphasis on Amul Chocolates for love
on all occasions .
2007 Strategy Rework
Reworked its strategy in the chocolate category
to push its chocolate product sales.
A new product portfolio.
Strategy was to identify the market gaps and
try and fill them as done in the past with
their sugar free and Choco Zoo , both of which
have been appreciated by the consumers.
Placed its chocolate products at lesser price
points compared with its competitors.
Concentrating on the niche segment such as
health chocholates
Launched Trix, a wafer biscuit coated with rich
milk chocolate. Cadbury, Perk and Munch from
Nestle are other two major players in the wafer
chocolate segment. Priced at Rs 5 , available
in strawberry and chocolate flavours.
Chocolate Market In India
Chocolate market is estimated to be around 1500
crores growing at 18-20% per annum.
Cadbury is the market leader with 79% market
share.
The per capita consumption of chocolate in
India is 300 gram compared with 1.9 kilograms
in developed markets such as the United
Kingdom.
Over 70 per cent of the consumption takes place
in the urban markets .
The chocolate wafer market (Ulta Perk etc) is
around 35 % of the total chocolate market and
has been growing at around 13% annually.
As per Euromonitor study, Indian candy market
is currently valued at around USD 664 million ,
with about 70%, or USD 461 million, in sugar
confectionery and the remaining 30%, or USD 203
million , in chocolate confectionery .
Entire Celebrations range marketshare is 6.5%.
Competitors
The chocolate market in India has only three big
players, Cadbury(79%), Nestle(14%) and Amul (5%)
Cadbury
Chocolate sales of Rs 514.03 Crore
Market leader by far – 79% share
Dairy milk alone accounts for 30% of market
Targeting youth and adults through new products
Full chocolate range, complete categorycoverage
Distinctive taste, captured sensitive pricepoints
Eclairs Rs 1, Chocky Rs. 2, 5 Star Rs. 5 andRs. 10,
Dairy Milk Rs. 5,10,15, 25 and 100
Fruit and Nut Rs 20
Dry Fruit Range Rs 25- 50
Celebration Rs 50 and 100
Rich Chocolates Rs 100, 250, 450.
Nestle
Chocolate sales – 346.51 Rs. Crore
14% market share.
Chocolates 13-15% of total revenue
Competition Scenario
Product range includes Classic, kit Kat, Munch,Choco stik, Bar one
New brands such as Sweet World,Candico andChocolatiers are present in several malls .
The largest target segment for Cadbury is youth.
Delhi-based Chocolatiers, started with a small
shop in south Delhi’s Chittaranjan Park and has
now ventured into malls and multiplexes in NCR,
Mumbai and Bangalore , with focus on high-end
or designer chocolates , a niche market of
their own.
Candico India is aiming for 400 locations
across malls and multiplexes in the country by
2010 .
Consumer Trend
Mithai - is getting substituted by chocolates -
Convenient packaging and better shelf life .
Sudden spurt in advertisement between July &
Sep in festival seasons.
The range and variety of chocolates available
in malls seems to be growing day by day, which
leads to lot of impulse sales for chocolate
companies.
Chocolates which used to be unaffordable , is
now considered mid-priced .
Designer chocolates have become status
symbols .
Consumers can choose from wide range of
chocolates . so many SKUs with almonds, raisins
and all sort of nuts. Latest 5 star crunchy and
Ulta Perk .
In past, consumers had negligible inclination
for dark chocolates . But now we have seen a
change in the Indian palate, which is
increasing the base of this sub-segment .
Advertisement Trends
Chocolate advertising rose by 30 percent .
Maximum chocolate advertising was during Raksha
Bandhan .
As expected chocolate advertising skewed
towards kids channels and regional GEC took the
second position
Cadbury India Ltd rules chocolate advertising
on television
Regional GEC took the second place with a 21%
share ad volumes of chocolates, followed by
Hindi movie with 13% share.
Cadbury India Ltd was way ahead of its peers
with 66 per cent share followed by Nestle India
Ltd and Parle Products Pvt Ltd.
During January-November 2008 the number of new
chocolate brands advertised decreased to seven
from 12 during 2007
Nestle Munch Pop Chocolate led the chart of new
chocolate brands advertised on television
during January-November 2008.
Amul to take competition head on with ‘Chocozoo’
With the launch of ‘Chocozoo’ — chocolates in shapes
of motorcycles, aeroplanes, animals and comic
charaters — Amul, India’s largest milk co-operative,
promises to have kids panting for more and leave a
bitter taste in the mouth of its competitors.
Announcing the all-India launch of its ‘Chocozoo’
brand of chocolates on December 9, B M Vyas,
managing director of GCMMF, on Monday said: ‘‘The
launch of this brand is in accordance with our
revamped marketing strategy to reposition Amul
chocolates in the market and take on competiton. In
the last few months, we have introduced newer
varities of chocolates, like ‘Bindas’, ‘Nuts About
You’ and others, targeting teenagers but now we have
somthing for the kids.’’ .‘‘In the last decade, Amul
chocolates have taken a beating in the market. But
now the co-operative is focusing again on this
segment and we have introduced economic variants of
our chocolates priced at Rs.1, Rs.3 and Rs.5.’’
Vyas added that for the last one decade Amul
chocolates have taken a beating from multinational
chocolate firms but since the last one year Amul has
reworked it chocolate strategy and is working with
packing and advertising agencies to carve a niche
for its brand.
Amul’s product manager Pawan Kumar, addressing
Amul’s Gujarat distributors in Ahmedabad, said:
‘‘With the launch of ‘Chocozoo’, we are creating a
new category in branded chocolate market. So far, we
have no competiton in this segment.’’
Pawan Kumar also said that a tub of ‘Chocozoo’
chocolates were priced at Rs 138 for 46 units of
chocolates, but retailers can sell the chocolates
loose, at Rs 3 each. This, Pawan Kumar added, was
done to attract kids.
Pawan Kumar informed that Amul had already carried
out a field trial of ‘Chocozoo’ in Ahmedabad and
Vadodara and the results were exciting. In the last
one month, Amul had sold 30 metric tonnes of the
chocolate in gift packs available only in tins.
However, following feedback from distributors and
retailers, Amul had decided to come out with tub
packings.
Amul plans new brand, packaging to push chocolate
business
The Gujarat Co-operative Milk Marketing Federation
(GCMMF), which markets the Amul brand of milk
products and chocolates, is reviving its chocolate
business with new products and renewed packaging.
The company will launch the Chocozoo brand of
chocolates on December 9, which will target the age
group of four to 14 years.
“Besides introducing new products in the chocolate
segment, we have decided to revamp the packaging of
our offerings. We will do this with the help of TMA,
which is an international agency. We are also
planning a promotional campaign for chocolates,”
said Mr B. M. Vyas, managing director, GCMMF.
The Indian chocolate market is pegged at around
4,000 tonne in volume, and Rs 650 crore in value
terms on an annual basis.
Although Amul has introduced several products in the
chocolate category, it does not enjoy leadership in
the segment.
Cadbury India is the largest player in the Indian
chocolate market, followed by Nestle India and Amul.
GCMMF has also drawn up plans to make its chocolate
business a separate division of the company.
Earlier the company had launched three chocolates
brands called Fundoo, Bindaas and Almond Bar. While
the first two have been priced at Rs 10 for a 30 gm
stick, the third one carries a price tag of Rs 10
for a 35 gm offering. It had also launched Amul
Rejoice gift brand.
Where The Amul Chocolate Stands In Product Life
Cycle?
Although amul is in the chocolate industry for 20
years we can safely say its only in the growth
stage. The main reason behind this is it never came
in to the industry in full fledge to fight the
market. it always marketed its product in a more
subtle way with proving the gaints like cadburys who
have a market share of 70%.
So now amul is revamping its strategy to increase
its 10% market share in the near future. The
industry has potential growth and amul is still
trying out some new marketing technic so we can call
this as growth stage although its a old player in
the choco industry.
Although amul is in the chocolate industry for 20
years we can safely say its only in the growth
stage. the main reason behind this is it never came
in to the industry in full fledge to fight the
market. it always marketed its product in a more
subtle way with proving the gaints like cadburys who
have a market share of 70.so now amul is revamping
its strategy to increase its 10 market share in the
near future.
DATA ANALYSIS & INTERPRETATION
SURVEY ANALYSIS
1) Do you like chocholates?
• Yes 97 %
• No 3 %
•
2) Who in your family uses chocholates?
Kids33%
Teenagers21%
Youths44%
Old 2%
KidsTeenagersYouthsOld
COMPARISION BETWEEN CHOCOLATE COMPANIES
3) What kind of chocolates do you prefer?
• Branded
• Non Branded
Branded95%
Unbranded5%
BrandedUnbranded
4)What type of chocolates do you prefer?
• Wafers
• Bars
• Small chocolates
• Other
Which type of television channel do you prefer watching the
most?
• News
W afers12%
Bars40%
Sm all chocholaes
45%
Other3%
W afersBarsSm all chocholaesOther
c
• Cartoon
• Zee/Star (Entertainment)
• Other
6) Which time slot do you prefer for watching television?
• Morning
• Afternoon
• 5-8 pm
• 8-11 pm
• Late Night
news12%
cartoon13%
zee/star38%
other37% news
cartoonzee/starother
M orning 12%
Afternoon18%
5-8 pm10%8-11 pm
38%
Late Night22%
M orning Afternoon5-8 pm8-11 pmLate Night
) Media where the last time you saw a chocolate
advertisement was
• Television
• Hoardings
• Radio
• Newspaper
• Magazine
• Other
Television62%
Hoardings20%
Radio5%
Others1%M agazine
3%
Newspaper9%
TelevisionHoardingsRadioNewspaperM agazineOthers
According to you which of the following makes a television
advertisement more memorable?
• Jingles
• Brand Ambassador
• Emotion
• Humour
• Product display
• Others
Jingles35%
B Am basador40%
Em otion5%
Hum our8%
P Display10%
Others2%
JinglesB Am basadorEm otionHum ourP DisplayOthers
) Have you heard of Amul Chocolates?
• Yes
• No
Can you recall any of the Amul chocolates Advertisement/
Hoarding?
Yes88%
No12%
YesNo
When do you usually purchase a chocolate?
• Festivals
• Gifting
• Snacks
• Just like that
Am ul10%
Nestle26%
Cadbury55%
Others9%
Festivals20%
Gifting21%
Snacks25%
Just like that34%
COMPARISION BETWEEN CHOCOLATE COMPANIES
1) Name of Chocolate Companies and their penetration in
market-
The table below deals in finding the numbers of retailers
that sells different company chocolates and their
penetration in markets.
Table 1.1
Chocolate companiesand their penetration
Name of company No of shopsAmul 20Cadbury 149Nestly 148Other 18 Graph 1.1
Chocolate companiesand their penetration
The graph 1.1 shows the number of retailers sellingdifferent company chocolates. There are only 20 retailersi.e. 13.33% who deal in Amul chocolates. The percentage isvery less compared to Cadbury and Nestle.
2) Market share
The table below deals in finding the Market Share of Amul
Chocolates and other companies chocolate.
Table 2.1
Market Share
Name ofcompany
Total Sale
(Permonth)
Marketshare (%)
Amul Rs.3130
00.84%
Cadbury Rs. 239750 64.5%
Nestle Rs. 125940 33.9%
Others Rs.2500
00.67%
Total Rs. 371320 100%
Graph 2.1
Market Share
The graph 2.1 shows the market share of different companychocolates in terms of rupees. From the graph we can saythat the market share of Amul chocolates is only 1%, whichis very less, compared to other companies. Cadbury has themaximum share of 64.5%.
3) a) Brands of Amul chocolates sold on Amul chocolateOutlet.
The table below helps in finding the different brands ofAmul Chocolates that is available on Amul Chocolate
Outlet. A shop that sells even one Amul Chocolate is anAmul Chocolate Outlet
Table 3.1
Brand of Amul Chocolates & their sellingpercentage
Brand of AmulChocolates & their selling percentage
Name ofchocolate
No. Of Amulchocolate Outlet
A Amul Milkchocolate
8
B Amul Fundoo 4
C Amul Fruit nNut
11
D Amul Bindaaz 4
E Amul Almondbar 16
F Amul Chocozoo 6
G Amul Rejoice 0
H All Chocolates 0
Graph-3.1
The Graph 3.1 above shows that Amul Almond Bar is sold atmost of the Amul Chocolate outlet followed by Amul fruit nNut & Amul Milk Chocolate. There is not a single outlet thatsells Rejoice.
3) b) Ordering Pattern
The table below deals in finding the orderingpattern for Amul Chocolates.
Table 3.2
Ordering Pattern
Graph 3.2
OrderingPattern
Option No. of Retailers
Daily 0
Weekly 0
Monthly 20
The graph 3.2 shows the ordering pattern followed by AmulChocolate outlets. It is seen that almost all of them orderonce in a month since their demand is very less.
4) Financial Support for promotion.
The table below deals in knowing whetherthe company provides any financial support for promotionto Amul chocolate outlets.
Table4.1 Financial Support ForPromotion
Graph 4.1
Financial Support forPromotion
Option No. of Retailers
Yes 0
No 20
The graph 4.1 shows the financial support for promotion.
From the graph we can say that according to the retailers
the company does not provide any financial support for
promotion.
5) Reasons for not selling Amul Chocolates . The table below deals in finding the reasons for retailersdue to which they do not sell Amul Chocolates. Table 5.1
Reasons ForNot
Selling Of Amul Chocolates
Reasons No. ofRetailers
A Distribution &Service problem
108
B Low demand 73
C Low Margin 98
D Replacement Problem 45
E No Refrigerator 21
F Not Interested 15
Graph 5.1
Reasons For NotSelling Amul Chocolates
The graph 5.1 shows the various reasons due to which the
retailers do not sell Amul chocolates. From the graph we
can say that Distribution & Service problems and Low
Margin are the major reasons followed by Low demand and
Replacement problem because of which the retailers do not
want to sell Amul chocolates.
6) Reasons for Preference in selling other companychocolates . The table below deals with finding the reasons due towhich the retailers prefer to sell other companychocolates and not Amul chocolates. Table 6.1 Reasons For Selling OtherCompany Chocolate
Reasons No. ofRetailers
A Good Distributionand Service
97
B More Demand 105C Higher Margin 73D Better Replacement 23E More Benefit 30
Graph 6.1 Reasons For Selling OtherCompany Chocolate
The graph 6.1 shows the reasons for which the retailers
prefer to sell other company chocolates. The major
reasons are the More demand of other company chocolates,
Good service as well as Higher Margin.
7) The most attractive scheme. The table below deals with finding the most attractivescheme according to the retailers. Table7.1 The most
Attractive Scheme
Graph 7.1 The MostAttractive Scheme
Different Schemes No. ofRetailers
Incentive Scheme 34
Free Pack on LargePurchase
40
Increase ProfitMargin
79
Lucky Draw 25
The graph 7.1 shows show the Different Schemes
for attracting the retailers for selling Amul
Chocolates. Mostly the retailers are attracted towards
increased Profit Margin followed by Free Pack on large
purchase.
8) Mediums for Creating Awareness . The table below deals in finding the most
appropriate medium for creating awareness. Table
8.1 Effec
tiveMedium
Graph 8.1
The Effective Medium
Option No. OfShops
More TV / News paperAdvertisement
150
Banners 62Gift/Coupons 48
The graph 8.1 shows the different effective mediums
for creating awareness about the Amul chocolates.
According to all of the retailers, the most effective
medium is TV and Newspaper advertisement.
IntroductionAdvertising is an important role for the product tobe sold in the market, as Amul advertising has lowprofile so by this other competitors were benefited.The competitor products have been very well receivedby consumers due to their advertising pitch Example:Kwality, Vijaya, Nestle. Retailers list a credibleReplacement policy as a factor very high on theirwish list. They would be willing to make furtherinvestments only for that brand which offersreplacement facilities. Amul has no replacementpolicy. Quality control was the major problem thatconfronted the cooperatives.Amul chocolates, which made a determined entry in
the market in the nineties and stayed put till a
couple of years ago, is barely seen on shop shelves
nowadays.
The grit with which the brand, then only known for
its butter and cute ads, posed a challenge to market
leader Cadbury is gone.
A two-horse race that became three-horse
competition, with Nestle joining in, appears to have
slipped back into a market dominated by the two
foreign brands. The homegrown Indian brand, a
household name more famous than its owner, Gujarat
Cooperative Milk Marketing Federation, is barely
visible in the chocolate market.
Amul contests this. But try buying a bar of the
brand, chances are that most retailers will shake
their heads. This, when the brand has grown into a
giant business in milk and other milk products.
Cheese, ghee, ice cream and curd for example.
Marketing and branding aces blame the vanishing
trick on poor marketing and low expertise in
chocolate making. Another plausible reason could be
the diversion of milk fat, an important ingredient
in chocolate making, to producing liquid milk.
Why must Amul feel compelled to do so? To protect
and expand its liquid milk business, perhaps a
necessity when raw milk supplies dry up in a below-
average monsoon. In such a scenario liquid milk,
being more profitable, takes precedence over
chocolates.
Like farmland, milch cows yield less in a drought
because fodder is not plentiful. Also cattle feed is
scarce. Not just that, the fat content in the milk
drops. Even in a good monsoon year the yield varies
from season to season. Since milk is the
cooperative’s mainstay, accounting for 35 per cent
in value of all sales, it must be constrained to
preserve fat for use to produce liquid milk in dry
times.
This becomes an imperative where consumer demand for
milk is growing. With disposable incomes rising,
consumers have become more discerning and are
spending more on a better lifestyle, which includes
better food. “One manifest of this is the
significant growth in overall milk consumption,”
said a senior official in the department of animal
husbandry, dairies and fisheries.
Between 2006-07 and 2008-09 milk production in India
went up from 100.9 million tonnes to 110 million
tonnes, and the per capita daily milk consumption
from 246 gm to 261 gm.
At Amul, too, the milk output has grown rapidly –
from 6.2 million litres a day in 2005-06 to 8.5
million litres a day in 2008-09. Chocolate
production – Amul claims it is growing -- still
remains a very small part of its business.
In 2008 the branded chocolate market in India was
worth around Rs 2,300 crore (56,747 tonnes),
dominated by Cadbury (70 per cent market share).
Nestle, with 28 per cent, came next. Amul and other
minnows shared the rest, according to A C Nielsen.
In 2007, the market absorbed 49,487 tonnes worth Rs
1,700 crore.
Vivek Agarwal, chief operating officer for Amul
chocolates claimed an annual production growth of 15
to 20 per cent. In 2007-08, production was 1,000
tonnes, last year it was 1,200 tonnes. This year he
hoped to touch 1,500 tonnes.
He admitted chocolates contributed “probably half a
per cent to one per cent” to Amul’s overall turnover
(Rs 6,711 crore in 2008-09, Rs 5,255 crore in 2007-
08). Expressing a hope not matched by recent
performance, he said he expected to garner a 10 per
cent market share in three years. To attain that, he
said, Amul, would launch more products ,
communication in right earnest, and push for deeper
retail penetration.
Ground reality does not support his optimism. A
shopkeeper in south Delhi has not been able to get
supplies for quite some time. “We tried, but have
stopped trying now,” he said. According to his
account, Amul used to push chocolates by tying them
to the offtake of milk and milk products. “Not so
any more,” he said.
Other than a lack of focus, Amul’s chocolate
business also suffers from a poor marketing
strategy. In chocolates it is a small brand. It
brought in too many variants, too quickly. “It
should have created a mother brand -- like Cadbury
did with Dairy Milk or Nestle with Kitkat -- and
then expanded the category,” said Harish Bijoor, an
independent brand consultant.
Amul has successfully extended its milkman image to
ice cream, cheese and other dairy products, but has
made no headway in chocolate. Cadbury once tried to
sell Bournvita biscuits but failed. Bombay Dyeing,
known for bed linen, tried to sell Vivaldi men’s
shirts and failed. “A brand must understand its
fundamental associations,” said Anand Halve of
Chlorophyll, a brand consultancy firm.
The milk cooperative’s chief marketing manager, Mr
R. S. Sodhi, put the business priorities of the
cooperative in perspective: “For us, chocolate is
not big. We are not putting any advertising. Our
focus is dairy and dairy products.”
A survey was undertaken as part of the project
research and the following is the interpretation
obtained from the data :-
During the survey it was found that still there
are 10% people who have not tasted Amul
Chocolate.
Lack of Awareness in consumers. Many people are
not know about Amul chocolates specially
children and teenagers.
As I found that the main product of Amul is
Milk and company firstly wants to capture
maximum market share in milk market which is
approx. 66%, after it Amul is concentrating
upon butter & cheese which has market share of
approx. 88%, so it is not concentrating upon
chocolates.
When I interviewed people then many of the
people can not recall Amul chocolate
advertisement. It shows lack of advertisements.
In its advertisement is not using any brand
ambassador which attracts all age group people
like Cadbury.
There is lake of Sales Promotional Activities
i.e. free tattoo, extra weight, toys, quiz
contest etc.
Cadbury is main competitor and strategically
better performer then Amul.
“Amul” brand name has very good image in
consumer’s mind and they consider it as Pure &
Good Product.
People who have tasted Amul Chocolate are not
ready to purchase the same again
CHAPTER 4
Conclusion
AMUL has risen from Indian soil and it remains
Indian in every sense. With roots well established in the
domestic market Amul is all set to fight in the global
arena. With the commitment it has shown in the past
it will not be too long when Amul emerges a winner on all
fronts. .There is ample scope in the low priced segment
as also in other categories where consumers presently are
dissatisfied with the quantity being provided vis a vis
the price being charged.
As we know that Amul is very big organization and marketleader in dairy products. It has maximum market share inMilk, Butter and Cheese, which are its main/core products.As we know Amul is a co-operative organisaion but chocolateindustry is a profitable industry we can’t ignore it. Withthe help of research, company can find out its week points
in chocolate product and can increase its market sharethrough rectify mistakes. People have believed in Amul’sproduct and they will accept its chocolates also ifeffective actions were taken.
The survey resulted into following conclusions :
v Amul must come up with new promotional activities suchthat people become aware about Amul Chocolates likeChocozoo, Bindaaz, and Fundoo.
v Quality is the dominating aspect which influencesconsumer to purchase Amul product, but prompt availabilityof other chocolate brands and aggressive promotionalactivities by others influences the consumer towards themand also leads to increase sales.
v In comparison to Amul Chocolate, the other players suchas Cadbury, Nestle, and Perfetti provide a betteravailability and give competition to the hilt.
v People are mostly satisfied with the overall quality ofAmul Chocolate, but for the existence in the local marketAmul must use aggressive selling techniques.
Limitations
Limited time available for interviewing the
respondents. As a result of this it was not
possible to gather full information about the
respondents.
When I interviewed children and teenagers,
sometimes they use to give answers under the
influence of their parents or elders.
Sometimes the problem which I face is language
problem for which I have to make them
understand.
Non-cooperative approach and rude behavior of
the respondents.
If the respondents answer does not falls
between amongst the options given then it will
turn up to be a biased answer.
The accuracy of data is not 100 %.
7. Recommendation
The project research suggested that a great deal of
awareness about chocolates could be created through
advertising and promotion. In case of Amul
chocolates, there was a dire need of brand building
measures through effective advertisement ,which
would surely increase chocolate sales for Amul.
Moreover, there was an increased need for attracting
young audiences and children, as they are the major
consumers for chocolates.
The following Modified Marketing Mix is recommended
in order to improve the sales and marketing strategy
of Amul Chocolate :-
Product
Introduction of new range of chocolates to suit
different targeted segment.
Variety
Design – Plain bars, filled, chocolate coveredwafers,
Sizes and Packages – wide range to suit keyprice points and occasion.
Price Pricing – In line with Cadbury’s offerings
Incentive schemes – eg. Nestle’s Maha munchgive more value for the same price
Priced at key price points like Rs.5
Promotion Must introduce Festival Gift boxes like
cadbury Celebration.
Must offer low-priced packs for the masses andlaunch new products to target different agegroups.
Must focus on the availability andaffordability of its products.
Should increase R&D spending to improve thequality & taste.
Visibility at retails points. To increase the
visibility of its products, target areas near
bus stops, colleges, schools, cafes and places
of entertainment like theaters and amusement
parks.
Place Extend its reach to semi-urban and rural
markets.
Sell its products through 'non-traditional'
outlets like music stores (such as Music
World), malls, renowned bookstores and popular
apparel outlets (such as Pantaloons and Wills
Sport boutiques).
To put chocolate carts (similar to traditional
bicycle ice-cream carts) in malls and near
college campuses to increase its reach.
The are the following some other recommendations
regarding the market strategies and policies of amul
chocolates in order to spread awareness and improve
sales of the product :-
Increase frequency of advertisement.
Must enter into marketing alliances with
various portals to offer products (on those
portals that were developed for festive
occasions and celebrations such as Valentines
Day and Friendship Day.
Company should introduce sales promotion
schemes like free weight, pranky, tattoo,
contest, free gifts etc.
Advertisement can be done with the help of
animations that attracts children and teenagers
because chocolates are consumed largely in this
segment.
Contest
Amul can start some contest for its chocolate
products as it is doing for some of its other
products like :-
Amul Chef of the Year, 2009 contest
Amul Maharani Contest, 2008-09
Amul Food Festival Contest
Winners of Slogan likho Disneyland dekho
contest
Winners of "Amulya Fly to Bangkok Contest"
Amul Chhote Ustaad
Amul Master Chef India
Suggestions:
v In order to maintain and increase the sales in the cityof Delhi, the following recommendations regarding AmulChocolates; particularly regarding advertisement,distribution, promotional policies, etc, are herebysuggested:
v First and foremost Amul should take proper action inorder to improve service, because although being on a topslot in Butter and milk supplies it does not get the salesin chocolate, which it should get.
v Company should use brand ambassador which attracts eachage segment i.e. Amitabh Bacchan, Superman, Krrish, Jadooetc.
v Amul should give local advertisements apart from theadvertisements given at the national level. Localadvertisement must mention the exclusive Amul shops of thecity.
v Try and change the perception of the people through wordof mouth about Amul in advertisements, because they are thebest source to reach Children and families.
v Though Amul chocolate advertisements are rarely shown ontelevision yet many people could recall it as per the dataof research. It shows that there is only need to giveadvertisement only to rememorize customers. Because Amul isvery strong brand name.
v Company should launch chocolate in new attractive packingto change image of Amul chocolate in consumers mind.
v Company should introduce sales promotion schemes likefree weight, pranky, tattoo, contest, free gifts etc.
v Advertisement can be done with the help of animationsthat attracts children and teenagers because chocolates areconsumed largely in this segment.
• Must introduce Festival Gift boxes like cadburyCelebration.
• Must offer low-priced packs for the masses and launchnew products to target different age groups.
• Must focus on the availability and affordability of itsproducts.
• Should increase R&D spending to improve the quality &taste.
• Must introduce at price points such as Rs 1, Rs 2, Rs5 (13gms), Rs 10 (26gms), Rs 15 (43gms), Rs 50 and evenat Rs 100
• Visibility at retails points. To increase thevisibility of its products, target areas near busstops, colleges, schools, cafes and places ofentertainment like theaters and amusement parks.
AMUL PARLOURS
• Amul has recently entered into direct retailing through"Amul Utterly Delicious" parlours created in majorcities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai,Hyderabad and Surat.
• Amul has plans to create a large chain of such outletsto be managed by franchisees throughout the country
• Amul should give local advertisements apart from theadvertisements given at the national level. Localadvertisement must mention the exclusive Amul shops ofthe city
CHOCOLATE BOUTIQUES AND SHELVES
• Amul must come up with its own chocolate boutiques.
• Form its own shelves in retail shops and take ownershipof maintaining them.
DIRECT SCHOOL PROGRAM
As a part of the customer contact programme ,Amul must dodirect school program for Amul chocolates.
They can sampling their latest offering - among kids.
AMUL CYBERSTORE
Amul does e-selling of all its products includingchocolates but very few people know about it.
AMUL must make use of the hoardings and print ads tocommunicate this.
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