AN ANALYSIS ON CONSUMER PREFERENCE f OR AMUL PRODUCTS

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

• Yes

• No

11) Which chocolates do you like the most?

• Amul

• Nestle

• Cabury

• Others

Yes20%

No80%

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%

Which brand is most visible to you when you go to purchase a

chocolate?

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.