1 C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA. PREFACE As a part of curriculum and to be familiar with the real depth and wide span of the industry every student at the MBA is required to undergo intensive training of the field of business. My interest is in Fast Moving Consumer Goods (FMCG) so I selected the Gujarat Co-operative Milk Marketing Federation Limited (GCMMFL), a marketing unit of AMUL India Limited as the most suitable place for training. GCMMF – the dream incarnate of Dr. V. Kurien, milk man of India, with its sound infrastructure and nation wide network enjoys supremacy in the field of Dairy Products. As a part of my project I undergo to a marketing research work to find out Retailer‟s Satisfaction in terms of Product Quality, Brand Name, Services, Behavior, POP Support, Replacement, Product Condition on delivery by WD (Wholesaler/Distributor) of Amul‟s Ice-cream Products. Scientifically authentic analysis of Satisfaction Level of the Retailers and find out the reasons, which lead to dissatisfaction were also a part of my study and survey. To compete with other large players in the field I have recommended some suggestion in my project. During this whole summer training I got a lot of experience in the field of sales and marketing and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life. JATIN SHAH
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
PREFACE
As a part of curriculum and to be familiar with the real depth and wide span
of the industry every student at the MBA is required to undergo intensive training
of the field of business.
My interest is in Fast Moving Consumer Goods (FMCG) so I selected the
Gujarat Co-operative Milk Marketing Federation Limited (GCMMFL), a
marketing unit of AMUL India Limited as the most suitable place for training.
GCMMF – the dream incarnate of Dr. V. Kurien, milk man of India, with its
sound infrastructure and nation wide network enjoys supremacy in the field of
Dairy Products.
As a part of my project I undergo to a marketing research work to find out
Retailer‟s Satisfaction in terms of Product Quality, Brand Name, Services,
Behavior, POP Support, Replacement, Product Condition on delivery by WD
(Wholesaler/Distributor) of Amul‟s Ice-cream Products. Scientifically authentic
analysis of Satisfaction Level of the Retailers and find out the reasons, which lead
to dissatisfaction were also a part of my study and survey. To compete with other
large players in the field I have recommended some suggestion in my project.
During this whole summer training I got a lot of experience in the field
of sales and marketing and came to know about the management practices in real
that how it differs from those of theoretical knowledge and the practically in the
real life.
JATIN SHAH
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
ACKNOWLEDGEMENT
I would like to present this project report to Gujarat Co-operative Milk
Marketing Federation Limited, Anand. As a student of C. K. Shah Vijapurwala
Institute Of Management (CKSVIM), VADODARA, I would like to express my
sincere thanks to all those who helped me during my whole training programme.
I express a heart felt sense to of gratitude to Mr. Nadvijaysinh Gohil, Sr.
Executive of HRD and Administration department who gave me the opportunity of
training. Without their encouragement my project would not have been possible.
Words are insufficient to express my gratitude toward Mr. Nimit Doshi, the HOD
of Marketing Department, who arranged my whole training programme.
I cannot prevent myself from thanking to Mr. Dhaval Parikh, Sales
Manager AMUL India Ltd., Anand who helped me in the submission of a project
application and motivated me during my project.
I expressed sense of gratitude to my Director Dr. Rajesh Khajuria and Mr.
Prakash Patel, faculty member, CKSVIM, Vadodara, for having spared his
valuable time with me for all the guidance given in executing the project as per
requirements of University.
Last but not least, I would like to record my deepest sense of gratitude to my
friends for their support and constant encouragement.
However, I accept the sole responsibility for any possible error of omission
and would be extremely to the readers of this project report if they bring such
mistakes to my notice.
JATIN SHAH
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
EXECUTIVE SUMMARY
The objective of this project is to find out the market share of AMUL ice-
cream in comparison to the other brands of ice-cream in Nadiad city. It also looked
in the different factor of stocking decision to the product in the retail outlets. To do
that in an efficient way I decide a sample size of 50 retailers and further they are
divided into three zone wise clusters as the city‟s geographical background, so we
can have the accurate and unbiased result.
To get accurate finding I have used Questionnaire as a tool of data
collection, which is designed as per the requirement of information. The sampling
design was used convenience sampling. The process of analysis was done through,
frequency table, percentage, average, graphs and pie charts.
My objectives of the study is:
◙ To estimate market share of AMUL ice-cream in comparison to other
competitor brand.
◙ To collect detailed information about the Brand Name, WD Behavior,
Service provided, Product Availability, POP Support, ROI, Replacement,
Consumer Demand, Quality of different Brand of ice-cream.
◙ To collect the information about the frequency of delivery of different
brand of ice-cream to retailers.
◙ To collect suggestion provided by the outlets to the company for
improvement of AMUL ice-cream.
◙ To assess satisfaction level of retailers stocking and selling of AMUL ice-
cream.
The Ice-cream come under FMCG industry and the company associated with
this product are AMUL, Vadilal, Havmor and other local brands, Among them
AMUL is India‟s leading Dairy product company. In this research I found that,
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
Although AMUL ice-cream has a strong position in the market but their Service,
Replacement, and Product availability is poor in comparison to other brands like
Vadilal and Havmor.
I also found that customer level of acceptance towards the AMUL products
is very high but due to poor service, like whatever the product is not delivered
timely, replacement is not done, there ware less cup and spoon in the packet
sometime and also not provide an extra spoon. So, due to all this problem retailers
are unsatisfied.
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
CONTANTS Of PROJECT
Sr. No. Chapter Name
1 Preface
2 Acknowledgement
3 Executive Summary
4 Contents
5 Industry Profile
6 Organization Profile
7 Project Profile
8 Introduction
9 Objectives Of The Study
10 Significance Of The Study
11 Survey Methodology
12 Detail Findings
13 Present Business Scenario
14 Suggestion
15 Conclusion Annexure:
1. Map of Nadiad City.
2. Survey Questionnaire.
3. Retail Outlets List.
4. Bibliography
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
INDUSTRY
PROFILE
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
Dairy Industry: In a Globe
The U. S. Farm Bill 2002, titled the Farm Security and Rural Investment Act of
2002 and signed by the US President George Bush, provides for continuation of
the existing Milk Price Support Program. This would further depress international
prices of dairy products and enhance subsidies.
Under this Bill, instead of reducing trade-distorting subsidies, the US
Department of Agriculture's Commodity Credit Corporation is committed to buy
unlimited quantities of butter, cheese and skimmed milk powder (non-fat dry milk)
from dairy plants at prices that enable them to pay a minimum support price for the
milk supplied by farmers.
Under a scenario where international prices are lower than domestic prices,
traders can and do make quick profits without any big investment. But the interests
of the large numbers of farmers with critical dependence on dairy may be totally
forgotten.
Though WTO framework is based on free trade, European Union and the
United States have bypassed and even openly violated their (WTO) commitments.
For developed countries confronting saturation in their own markets, penetration
into large developing countries is but a logical choice. This may be the reason why
New Zealand Dairy Board has dumped a large quantity of butter oil into India at
prices below $ 1000 per ton, whereas the prevailing international price is around
$1300 per ton.
In simple terms, New Zealand's butter oil made available at Rs 64.54 per kg is
roughly cheaper by Rs 15 a kg, compared to the prevailing international prices of
Rs 87.40 per kg.
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
DIAL-A-MARKET …. TO INDIA
Dairy industry in India has come a long way from dependence to self-reliance
as the total amount of milk produced more than tripled from 23 million tones back
in 1973 to 81 million tones in 2000.
Interestingly, it's the single largest contributor to India's GDP and involves as
many as 80 million small farming households. The social impact of developing the
dairy industry has thus been profound. With the opening up of the Indian market to
an influx of foreign goods, much concern has been expressed over the state of the
Indian dairy industry.
Indian milk farmers are paid on the basis of the value of fat in the milk. In the
last one year, due to lower realization of ghee prices, there has been approximately
15 per cent erosion in the milk value realized by the farmers. A further drastic
decrease in the milk fat price would be enough for the farmer to exit the dairy
industry. If the undervalued imports are not checked, then all the gains achieved by
Operation Flood may be wiped out.
But this is just the beginning. What happens when imports of highly subsidized
milk powders follow and domestic milk production and supply is taken over by
reconstituted milk?
India has the world's cheapest milk but unfortunately costliest of milk products.
It may be due to cost diseconomies, process inefficiencies and poor yield. In post-
WTO regime cheap foodstuff need not necessarily mean poor quality. It could be a
very high quality product from the developed countries, available at low prices due
to lower tax barriers. I think we have already started to feel the heat of such market
changes with multinationals and domestic majors like Amul improving their
product mix and package.
Being a large country with small milk producers even a slight signal of a
shortfall or surplus in production tends to influence its interests. While developed
countries may have evolved better institutional mechanisms to protect the interests
of farmers and processor, this is not the case with India.
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
Indian milk production, however, in contrast to other milk producing countries,
is characterized by lakhs (millions) of small and marginal farmers including
landless milk producers for whom it is not only a business but also the main source
of earning.
Technology and management are both important factors affecting the
competitiveness of India's dairy sector. We need latest technologies to produce
high quality products at low cost and professional management to utilize optimally
the industry's human and financial resources.
We can successfully meet the emerging challenges and harness the new
opportunities if we ensure widespread adoption of the latest available technologies
for processing, packaging and marketing of milk and milk products, organize milk
producers and professionally manage their organizations. I feel that there should be
level playing games for all the countries under WTO rules
Since the country is not faced with milk shortage, innovative use of technology
and proper resource management can help the industry to achieve export
competitiveness in terms of price and yield and quality.
India has emerged as the biggest producer of milk with an output of 81 million
tones in 2000-01, outpacing 72 million tones produced in the United States.
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
ORGANIZATION
PROFILE
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
INTRODUCTION:
AMUL means "priceless" in Sanskrit. The brand name
"Amul," from the Sanskrit "Amoolya," was suggested by a
quality control expert in Anand.
Amul products have been in use in millions of homes since 1946.
C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
INTRODUCTION TO MARKETING MANAGEMENT
Today it is fashionable to talk about the new economy. We hear that business are
operating in a globalize economy, that things are moving at a nanosecond pace, that our
markets are characterized by hyper competition , that disruptive technologies are
challenging every business and that business must adapt to empowered consumers.
The old economy seemed simpler. It was based on the Industrial revolution and
on managing manufacturing Industries. Manufacturers applied certain principles and
practices for the successful operation of their factories.
But today the scenario is completely changed.The new economy is based on the
marketing. Peter Druker , a leading management theorist, puts into this ways:
“There will always one can assume, be need for some selling. But the aim of
marketing is to make selling superfluous. The aim of marketing is to know and
understand the customer so well that the product or service fits him and sells itself.
Ideally marketing should result in a customer who is ready to buy. All that should be
needed then is to make the product or service available.”
Marketing deals with identifying and meeting human and social needs. In a
simpal definition: “Marketing needs profitably”
There are 4 P‟s of marketing that represent the sellers view of marketing tools
available for influencing buyers.
Four P’s Four C’s
Product Customer solution
Price Customer Cost
Place Convenience
Promotion Communication
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
ORGANIZATION STRUCTURE
Organization structure is the heart of the business organization. It is mechanism
or a basic framework which divides the works of employees in the Organization.
The well co-ordination among the various levels helps to work effectively and
add to achieve the Organization goals and objectives.
Structure is necessary to establish relationship between the individuals and
various positions. It indicates the responsibilities and authorities at various levels at the
various levels of the Organization.
Every Organization has its own structure. It may be flat Organization, where
levels are reduced; it may be horizontal Organization also.
GCMMF is a lean Organization, a strategy that is believed to provide it with a
cost advantage. At its headquarters in Anand, four general managers (GMs) and four
assistant general managers (AGMs) assist the managing director (MD).The four AGMs
look after the functions of marketing, systems, co-operative services and technical
projects, respectively. The four GMs are in charge of marketing (dairy products),
human resources development and marketing (new business), finance and quality
assurance, respectively.
The whole country is divided into five zones, each headed by a zonal manager
responsible for the sales of all products within his zone. These managers report to the
MD but functionally each also reports to the various AGMs/ GMs at the headquarters.
There are 50 sales offices spread across the country (of which only two are in Gujarat);
a sales manager heads each office and is assisted by sales officers and field
salespersons. The entire country has been represented in this structure. GCMMF has
been represented in this structure. GCMMF has one overseas office in Dubai.
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
CHANNELS OF DISTRIBUTION
Marketing Channels are sets of interdependent organizations involved in the
process of making a product or service available for use or consumption. Marketing
Channels decisions are among the most critical decision facing management. The
company‟s channel decisions involve relatively long- term commitment to other firms.
It represents a singnificant corporate commitment to large numbers of independent
companies whose business is distribution and particular market they serve.
The Channels of Distribution of G.C.M.M.F is simple but most effective. Due to
its effectiveness and efficient function it is able to set the 3000 outlets in Gujarat and
there are sum of 33000 distributors. The channels of Distribution are of three levels
which are as follows:
Member Union
Federation
Depot
W.D.
Retailer
Consumer
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
We have called the channels simple although there are three levels the reasons are:
There is well co-ordination between the various levels.
Appropriate information is provided to each level.
Work together at all levels.
Functions of the Intermediaries:
Place order with the Federation.
Provide for the successive storage and movement of physical products.
Develop and disseminate persuasive communication to stimulate purchasing.
Gather information about potential and current customers and competitors.
Due to its effective channels of Distribution it has achieved the
Turnover of 4300 crores which is a great jump of 13.4% from the last year 2008-
09.
There is the system of scheduled based order. W.D has its own schedule.
G.C.M.M.F does not facilitate credit facility to the distributors. The payment
system is completely on advance payment bases. So the question of bad debt does
not arise.
Time to time it introduces new schemes for the retailer and wholesale
distributors. Till now the federation has maintained very cordial relation with its
intermediaries. The channels functions very smoothly. This is obvious because
we can see wide range of products available at retail shops.
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
SALES FORCE MANEGMENT
o Sales term ensures that the GCMMF products are available to the
customer whenever and wherever. o Sales term is responsible to achieve seasonal and periodical targets. o To exploit all periodical sales promotion and ensure that objectives
are archived. o Sales term is responsible to minimize outstanding and ensure
prompt collection. o Representative
o Sales term should properly store and rotate the stock. o They should communicate important and usual competitive activity
to the management. o Solve customer query promptly and correctly.
o Report general information, which may be of interest to the
company and to its business.
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
PROJECT
PROFILE
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C. K. SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT, VADODARA.
Introduction: About the city - Nadiad
Nadiad is the fastest growing city of Kheda District, of Gujarat at around
30km from AMUL Milk city, Anand. The city is famous for its socio-educational-
religious humanitarian services led by Santram Mandir and supported by
institutions of higher learning such as Dharmasinh Desai University, M. U. Patel
Urological Research Institute, Mission Heart Institute, Mahagujarat Hosptial and
Heart Center, and the Civil Hospital. The city is geographically cover the area
about 7km with the resident population of over 2lacs.
The city is a hub of industrial productivity led by the New Shorrock Mills of
the Mafatlal Group. Other major industrial units providing valuable employment to
the local population are IPCO, Apex Plastics Pvt. Ltd., American Dryfruits and
Ashoka Foods - manufacturer of packaged food. The city is also a major trading
center of Indian spices such as jeera, hing, haldi and rai (mustard seeds) as well as
cotton. Being the administrative center of the Kheda District, Nadiad has RTO,
District Collector and Records offices which bring thousands of people to the city
to transact official business.
For, our research purposes we had divided this city in three major zone. So,
we can analyze the project report easily. In first zone the area come like Amdavadi