INTRODUCTION OF DISTRIBUTION CHANNEL

Manufacturers choose to use intermediaries between themselves and end- users. Marketing flows
define the work of the channel. The members of marketing channels are and the flows in which
they can specialise.
Importance:
1. The channel is the gatekeeper.
2. The channel is an important asset in the companys overall marketing and positioning strategy.
3. Channel experience impacts end-users perception of a brand image.
4. Channel key strategic marketing asset.
5. Useful to develop a framework for managing a channel to operate more effectively.

What is Distribution Channel?

A distribution channel is a method of getting a product to its consumer. These channels are part
of a company's marketing mix, each business' unique combination of product, price, promotion,
and place. Distribution affects the place or path through which consumers can buy and receive

the product. A channel of distribution may be an on-site store, a virtual store, a retailer,
a wholesaler, an agent, a telemarketer, or direct mail.

Direct mail works on a large scale. Materials advertising the product and presenting an offer
usually target a specific audience most likely to purchase the item. The marketing materials
inform and the target audience to take immediate action and respond at once by mailing in the
order form. The reward for the urgent response is often a discount price or added value such as
free gifts.
Telemarketing is also a distribution channel that works to get a target customer's direct response
to an offer. Unlike direct mail that may reach a national audience, telemarketing is often done on
a local or regional basis. It is most often used for small businesses that offer services rather than
products. For example, painting contractors may telephone potential customers in the area with a
special offer to try to get new business.

Looking at the diagram above:

Channel 1 contains two stages between producer and consumer - a wholesaler and a retailer. A
wholesaler typically buys and stores large quantities of several producers goods and then breaks
into bulk deliveries to supply retailers with smaller quantities. For small retailers with limited
order quantities, the use of wholesalers makes economic sense.
Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. The
consumer electrical goods market in the UK is typical of this arrangement whereby producers
such as Sony, Panasonic, etc. sell their goods directly to large retailers such as Comet, Tesco and
Amazon which then sell onto the final consumers.
Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels. In this
case the manufacturer sells directly to customers. An example of a direct marketing channel
would be a factory outlet store. Many holiday companies also market direct to consumers.

HISTORY OF AMUL

Over six decades ago the life of a farmer in Kaira was very much like that of
farmers anywhere else in India. His income was derived almost entirely
from seasonal crops. Many poor farmers faced starvation during offseasons. Their income from milch buffaloes was undependable. The milk
marketing system was controlled by contractors and middlemen. As milk is
perishable, farmers were compelled to sell their milk for whatever they were
offered. Often they had to sell cream and ghee at a throwaway price.
They were in general illiterate. But they could see that the system
under which contractors could buy their produce at a low price and
arrange to sell it at huge profits was just not fair. This became more
noticeable when the Government of Bombay started the Bombay
Milk Scheme in 1945. Milk had to be transported 427 kilometers,

Farmer

After preliminary trials, the Government of Bombay entered into an

agreement with Polsons Limited to supply milk from Anand to Bombay on
a regular basis. The arrangement was highly satisfactory to all concerned
except the farmers. The Government found it profitable; Polsons kept a
good margin. Milk contractors took the biggest cut. No one had taken the
trouble to fix the price of milk to be paid to the producers. Thus under the
Bombay Milk Scheme the farmers of Kaira District were no better off ever
before. They were still at the mercy of milk contractors. They had to sell
their milk at a price the contractors fixed. The discontent of the farmers
grew. They went in deputation to Sardar Patel, who had advocated farmers
co-operatives as early as 1942
Sardar Patel reiterated his advice that they should market their milk
through a co-operative society of their own. This co-operative should
have its own pasteurization plant. His advice was that the farmers
should demand permission to set up such a co-operative. If their
demand was rejected, they should refuse to sell their milk to
middlemen.
Sardar Patel pointed out that in undertaking such a strike there should
be some losses to the farmers as they would not be able to sell their
milk for some time. If they were prepared to put up with the loss, he
was prepared to lead them. The farmers deputation readily accepted
his proposal
Sardar then sent his trusted deputy, Mr. Morarjibhai Desai, to Kaira
D would refuse to sell milk to any milk contractor in Kaira District.

AMUL DISTRIBUTION CHANNEL

Milk sold to
villages
&local
residents

Villages
Villagescooperative
society(witholocal
cooperative
ut chilling restaurant
society(with
chilling units)units) her milk
related
business
GCMMP
milk
warehouse
processing
union &
warehouse

chilling
plants

Wholesalers

Retailers

Home deliver
contractor

Consumers

AMUL MARKETING STRATEGY

Introduction:

Formed in 1946, is a dairy cooperative movement in India. A brand name managed by Gujarat
Co-operative Milk Marketing Federation (GCMMF) jointly owned by 2.79 million milk
producers in Gujarat Spurred the White Revolution of India, which has made India the largest
producer of milk and milk products in the world. Introduction .Overseas markets - Mauritius,
UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African
countries Fresh plans of flooding the markets of Japan & Sri Lanka. Dr Varghese Kurien, former
chairman of the GCMMF -the man behind the success of Amul. Have a 15% market share in the
Rs 15,000 crore milk categories, and a 37% share in the Rs 900 crore organized ice-cream
segment.

Business Model:

Business Model Amul followed a unique business model. "Anand pattern" cooperative system
every day Amul collects 8.4 million litters of milk from 2.79 million farmers (many illiterate),
converts the milk into branded, packaged products, and delivers goods to over 500,000 retail
7

outlets across the country. One of the most conservative FMCG entities, GCMMF spends a mere
1% of its turnover on promotions. GCMMF has written and re-written rules of the game. Amul
butter girl is one of the longest running ad campaigns in the country for 41 years. Intelligent
marketing of milk, ice-cream and butter milk. Intelligent Marketing.

Expansion to foreign shores:

Expansion to foreign shores GCMMF had signed an agreement with Wal-Mart to stock its
shelves with products under its Amul brand name. Amul processed cheese, pure ghee, Shrikhand,
Nutramul; Amul's Mithaee, Gulab Jammus are few of the products marketed in the US markets.
50 per cent of Americans being medically obese, and if Amul is really looking to capture the
hearts of the second- and third-generation Indians, offering low-fat versions of its brands, would
make a lot of commercial sense. Hence targeting the large Indian community in
The US markets with its niche products like mithai, packaged ready to eat foods market it can
definitely expand its market to a large extent.
Moving consumers from loose milk to packaged milk and gradually move them up the value
chain (tetra pack to beverages) Being exposed to a brand, it is natural for a customer to try more
products Defence Strategy.
Wide range of product categories caters to consumers across all market segments. For example,
Amul Cool is targeted at children, while teenagers prefer Cool Caf, as it has a cool imagery
associated with its segmentation.
Changing retail environment striking out on its own, with Amul Outlets or parlours to deliver
consumers total brand experience Launched in 2002, there are now over 4700 Amul parlours
across the country, which contributed 3% to the brands total turnover in year 2009. Amuls
approach is to promote its brands in a rotational cycle of two to three years. After ice-creams
were launched in 1996, the category was re-visited in 1999, in order to improve availability of
the product and make it affordable. The focus shifted to cheese in 2001, Amul Masti Chaas in
2004-05 (sales of Masti dahi grew by 25%), Nutramul and Cool Caf in 2006 and this year the
focus is on Amul Koko - cold chocolate drink Promotion
8

Uses a variety of media to communicate Most famous is billboard campaign The endearing polka
dressed girl and pun at various issues increased brands fan following. Promotion
Amul food festival, which has been held for the last four year between October and December in
about 50,000 retail outlets. The Chef of India contest invites people to come up with recipes
using as many Amul products as possible. The recipe can be submitted on Amuls website.
Slogan Likho Disneyland Dekho Contest Promotion.
Successful Product Strategy:
1. Product Positioning Strategy- Low price Amul Ice - Creams made Quality walls life hell.
Chocolate milk was launched Amul Cool koko
2. Product Re-Positioning Strategy- Jaldhara Narmada Neer
3. Product Overlap Strategy Amul Processed Cheese Vs Cheese Spread Nutramul Energy
Drink Vs Amul Kool
4. Product Design Strategy Use of Utterly Buttery Girl since 1967
5. Product Elimination Eliminated Jaldhara bottled water Successful Product Strategy:
6. Diversification Strategy Dairy Products E.g.: Fresh Milk, Milk Drinks & Desserts, and
Bread Spreads, Cheese Products Non Dairy Products Egg: Veg Oils, Snacks, Instant Food
Successful Product Strategy.

Strategy decisions taken on build the brand:

Amul Strategic decisions taken to build the brand the strategic decisions that developed Amul as
a brand can be classified in the following broad categories:
1. Technology
2. Pricing
3. Quality
4. Product The technology-Portfolio
5. Distribution Network

1) Technology Strategy:
Packaging and Amuls approach to marketing is based on the changing taste buds of the
consumers. The technology strategy is characterized by four components:a) New product.
b) Process technology.
c) Complementary assets to enhance to milk production
d) E-commerce.
Few dairies of the world have the wide enhance milk production variety of products produced by
the Gujarat Cooperative Milk and Marketing Federation (GCMMF) network. Village societies
are encouraged through subsidies to install chilling units. Automation in processing and
packaging areas is common, as is Hazard Analysis Critical Control Point (HACCP)
certification.
Amul actively pursues developments in embryo transfer and cattle breeding in GCMMF was one
of the order to improve cattle quality and increase in milk yields the first FMCG (fast-moving
consumer goods) firms in India to employ Internet technologies to implement business to
consumer (B2C) commerce. Today customers can order a variety of products through the
Internet and be assured of timely.
Another e-initiative underway is to delivery with cash payment upon receipt. It provide farmers
access to information relating to markets, technology and best practices in the dairy industry
through net enabled kiosks in the villages.
GCMMF has also implemented a Geographical Information System (GIS) at both ends of the
supply chain, i.e. milk collection as well as the marketing process. Farmers now has better access
to information on the output as well as support services while providing a better planning tool to
marketing personnel.
2. Pricing Strategy:
At the time Amul was formed, consumers had limited purchasing power, and modest
consumption levels of milk and other dairy products. Thus Amul adopted a low-cost price

10

strategy to make its products affordable and attractive to consumers by guaranteeing them value
for money.
3. Quality:
a) Amul has not changed it's key source of core values give the best quality product to the
customer. Competitive advantage has been the enterprises ability to continuously implement
best practices across all elements of the network: the federation, the unions.
b) A regularthe village societies and the distribution channel (TQM activities). Friday meeting
is conducted that has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a
process check at the end to record how the meeting was conducted. Similar processes are in
place at the village societies, the unions and even at the wholesaler and C&F agent levels as well.
Examples of benefits from recent initiatives include

Reduction in transportation time from the depots to the wholesale dealers,

Improvement in ROI of wholesale dealers,

Implementation of Zero Stock Out through improved availability of products at depots

and

Implementation of Just-in-Time in finance to reduce the float.

c) Kaizen at the unions have helped improve the quality of milk in terms of - float acidity and
sour milk. (Undertaken by multi-disciplined teams, Kaizen are highly focused projects,
reliant on a structured approach based on data gathering and analysis.) For example, Sabar
Unions records show a reduction from 2.0% to 0.5% in the amount of sour milk/curd
received at the union.

4. Enhance Product Portfolio:

Amuls strategy of umbrella branding has also helped establish its brand firmly in peoples
minds. The network follows an umbrella branding strategy. Amul is the common brand for most
11

product categories produced by various unions: liquid milk, milk powders, butter, ghee, cheese,
cocoa products, sweets, ice-cream and condensed milk.
5. Distribution Network:
Amul products are available in over 500,000 retail outlets across India through its network of
over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of
the entire range of products. GCMMF transacts on an advance demand draft basis from its
wholesale dealers instead of the cheque system adopted by other major FMCG companies. This
practice is consistent with GCMMFs philosophy of maintaining cash transactions throughout the
supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just
adequate to take care of the transit time from the branch warehouse to their premises. This justin-time inventory strategy improves dealers return on investment (ROI). All GCMMF branches
engage in route scheduling and have dedicated vehicle operations.

Amul Business Strategy:

Developing demand
1. Limited purchasing power, modest consumption levels.
2. A low cost price strategy products.

The Distribution Network

1. Dry and cold warehouse.
2. Cash transaction through out the supply chain
3. JIT improves dealers return on investment.
Umbrella Brand
1. Common brand for most product categories.
2. Alums sub brands, edible12
oil products- Dhara mineral power Jal dhara brand while fruit drinks safal

Third Party Services Providers

1. Core is milk processing production of dairy products.
2. Logistics of milk collection distribution of dairy products, sales

of product through dealers and retail stores.

INVENTORY OF AMUL

13

The term inventory is originated from the French word Inventories and the Latin Inventoried
which implies a list of things found. The term inventory has a wider meaning then the term
Materials or store. According to the Institute of Chartered Accountant of India inventory
means Tangible Property held.
a) For sale in the ordinary course of business.
b) In the process of production for sale.
c) For rendering of services. The term inventory refers to the stockpile of the products a firm is
offering for sales and the components that make up the product. Inventories are the stocks of the
Product of accompany, manufacturing for sale and the components that make up the product. The
various forms in which inventories exist in manufacturing company are
(1) raw material
(2) work-in process,
(3) finish goods and

14

(4) store and spares.

However, in commercial parlance, inventory usually includes store, raw material, work-in
process and finish goods. The term inventory includes raw material, work-in process, finish
goods packaging, spares and others stocked in order to meet an unexpected demand or
distribution in the future.

Classification of Inventory: Classification of Inventory Production Work-in Progress

Finished goods MRO inventory.
1. Production Inventory In production inventory there are two types of production inventory that
are as follows
a) Material, which are purchases from the market like raw material and readymade Parts &
components require for manufacturing of equipment.
b) Special part or component manufactured in once own company & kept in stock focuses in
manufacturing.
2. Maintenance Repair Operating supplies (MRO Inventory) There are material purchase from
vendor & require for Maintenance or production process.
3. Work in progress there is semi-finished products in various stages of production on the factory
floor.
4. Finished goods inventory these consist of manufactured kept in warehouses or retail outlets &
are meeting for sale.
Risk and cost associated with inventory: Holding of inventories exposes the firm to a number
of risks & costs.
Risk of holding inventories can be put as follows:
i) Price decline this may be due to increase in the market supply of the product, introduction of a
new competitive product price-cutting by the competitors.

15

ii) Product deterioration may be due to holding a product for too long a period for too long a
period or improper storages condition.
iii) Obsolescence this may be due to change in customer's taste, new production technique
improvements in the product design, specifications etc.
Inventory control system offers the following benefits:
a) The proper relationship between sales and inventory can better be well maintained. Without
inventory control procedures in place, the store or department can become overstocked or under
stocked.
b) Inventory control systems provide a business with information needed to take markdowns by
identifying slow-selling merchandise. Discovering such items early in the season will allow a
business to reduce prices or make a change in marketing strategy before consumer demand
completely disappears.
c) Merchandise control systems allow buyers to identify best-sellers early enough in the season
so that re-orders can be placed to increase total sales for the store or department.
d) Merchandise shortages and shrinkage, can be identified using inventory control systems.
Excessive shrinkage will indicate that more effective merchandising controls need to be
implemented to reduce employee theft or shoplifting. Emphasizing the pertinence of the topic, in
2001, Gordian noted that inventory is on area of logistics that has received a great deal of
management attention over the past decade. Executives now realize that holding excessive stocks
is simply too expensive. Therefore, a great deal of effort has been expended to eliminate
unnecessary inventory without compromising customer service. However, there are numerous
situations where inventory simply must be held, particularly when meeting the needs of global
customers.

THE AMUL MODEL

16

The Amul Model of dairy development is a three-tiered structure with the dairy cooperative
societies at the village level federated under a milk union at the district level and a federation of
member unions at the state level.

Establishment of a direct linkage between

milk producers and consumers by
eliminating middlemen.
Milk Producers (farmers) control
procurement, processing and marketing.
Professional management.

17

The Amul model has helped India to emerge as the largest milk producer in the world. More than
15 million milk producers pour their milk in 1,44,246 dairy cooperative societies across the
country. Their milk is processed in 177 District Co-operative Unions and marketed by 22 State
Marketing Federations, ensuring a better life for millions.

18

19

MARKETING OF AMUL

Operations information
Scale & size
Procurement
Reach
Margin

$2.2 bn revenue: large product portfolio

From 3 million farmers: 3.45bn litre milk
5000 dealers and 10 lakh retailers
Low-margin business 2-5%

20

Amuls Market Share

Product category
Butter
Cheese
Ice-cream
Product milk

Marketing share in India

90%
80%
40%
25%

21

Trends:
According to Assoc ham, milk production in India is likely to reach 190 million tons by 2015
with an annual turnover of INR 5 lakh core.
PE firms could take an interest in private dairies; supply of capital for expansion
Brand wars A+ with Nestle and more.

22

THE BEST PRACRICES BY AMUL

1) Amul has Competitive sustainable advantage (CSA) over its competitors. Amul's CSA lies
in its procurement part ,the ability to collect 447,000 litres of milk every day from 2.12 million
farmers ,convert them into goods worth Rs 6 core and distribute them to 5,00,000 retailers across
country ,is not easy.
2) No other dairy in India has such a sustainable procurement network. Managing the large scale
supply chain of Amul which begins from milk producer and ends with supply to customer from
retailer is very critical job.
3) It requires lot of dedication and hard work from all members of the corporation and also
distributors and retailers across country It is not that Amul had a successful campaign, many of
its ads backfired.
4) One ad meant to target Marathi segment during Ganpati festival had to be removed under
political pressure. In another incident on advertisement in which Amul girl was wearing Gandhi
cap had to be again removed.
5) In one another incident Amul had aired an ad portraying Hussain as Heroine addiction, for
this Amul was taken to court. Most of Amuls communication is based on latest happenings
in the country.
23

6) That is why its ads are termed different from what is that of its nearest rival, Mother dairy.
Most of Mother dairy ads are directly targeted to children where as Amuls ad are on
current affairs, in which adults are also involved.
7) The key to retaining their competitive advantage lies in keeping focused on the basic business
principles: Be Customer-Driven Adapt quickly to the changing environment. Anticipate change
and act today to meet tomorrows challenges.
8) The Federation has invested substantially over the last few years in improving the quality of
its products and services, keeping in mind the emerging challenges of globalization. In
recognition of its achievements in Quality Management Initiatives.
9) Their core business is marketing branded food products to household consumers. Their
success has been grounded in two strengths: - Distribution network, serving more than five lac
retail outlets. Superior product quality - Value for money
10) The key to maintaining these two competitive advantages rests on their ability to attract and
retain the very best manpower. In this age of intensive competition, only dedicated and
committed professionals can successfully manage their business.

ROLE AND IMPORTANCE OF TECHNOLOGY AND EINITIATIVES BY GCMMF

1) Amul assigned the ERP software development project named as Enterprise- wide integrated
application system (EIAS), on a turnkey basis to Tata Consultancy Services. At present, the EIAS
system covers a plethora of operations like market planning, advertising and promotion,
24

distribution network planning, stock control, sales and accounting, budgetary control, quality
control management and co-operative service management.
2) Amul is also in the process of Web-enabling the entire supply chain so that it can capture key
information at the source, and use the same for decision-making. This would include the likes of
transporters, member-manufacturing units, oil packing stations, suppliers, depots and the entire
field force.
3) The federation has now integrated its country-wide operations through successful
implementation of the "Enterprise-wide Integrated Application System". They believe that
introduction of similar integrated ERP systems at their Member Unions will help them ensure
that the IT revolution serves their members better. The Federation is among the Top 100 IT users
in the country.
4) Currently, there are more than 3,000 computers installed in their village Societies, which
support the Automated Milk Collection System. Their goal is to install computers in all their
village societies and to integrate them with their respective unions.
5) On the market side, their distributors have responded enthusiastically to their suggestion of
computerizing their operations and getting email connectivity for better communication with
their sales offices.
6) The distributors can now place their orders on our internet websitewww.Amulb2b.com. They
continue to receive a good consumer response to their website www.Amul.com which is noted
for its distinct features like cyber tore for ice-cream and other milk products, cricket rankings and
they recently launched e-greetings site.
7)To strengthen business linkages with the business partners, GCMMF has enhanced its 'Amul eGroupware System' by adding more features like e-mailing the invoices and ledgers to business
partners, announcing various schemes online, calendar facility etc.

25

8) Video conferencing is rapidly gaining in popularity, which provides business with the ability
to meet and to work with others over a distance. For real time communication, better
brainstorming, knowledge sharing and information gathering, we have installed and implemented
Video conferencing System at our Head Office, Zonal Offices and a few Sales Offices. The
world is moving towards virtual reality by creating virtual world on the Internet.

SEGMENTATION
Customer Based Market Segmentation
A) Kids
Amul Kool

Chocolate Milk

26

Nutramul Energy Drink

Amul Cool Flavoured Tetra

Pack

B) Youth
Utterly Buttery Delicious

Amul Emmental Cheese

27

Amul Pizza Mozzarella Cheese

C) Health Conscious:
Nutramul

Amul Shakti

Toned Milk
28

D) Calorie Conscious
Amul Calci+

Sugar Skimmed Milk Powder

Amul Lite Slim and Trim Milk

Industry Based Market Segmentation

29

Ice-cream manufacture

Restaurant/ food chains

Coffee shop chains

Bakery and confectionaries

Snacks retailer

Pizza retailer

DISTRIBUTION NETWORK
30

1) THE COMPANY Amul means priceless in Sanskrit Since 1946 Market leaders for Amul
butter Turnover of 25 billion Amul is a symbol for High quality at reasonable prices Genesis of a
vast co-operative network Triumph of indigenous technology Farmers organization
2)THE PRODUCTS Bread spreads Cheese ranges UHT milk Milk powders Fresh milk Ice
creams Chocolates Methane range
3) SCM and Market Logistics Implementation of an ERP program as low as Rs. 3 crores in
collaboration with TCS ltd. Synchronized working and best possible utilization of the available
resources Maintains details regarding the inventory management.
4) Out of the entire milk procured, approximately 40 per cent is sold as liquid milk and 60 per
cent is converted to value added products. GCMMF = Gujarat Co-operative Milk Marketing
Federation; MUs = Member Unions; VCs = Village Co-operatives. Supply Chain at Amul.
5) NETWORK Available in over 5 lakh outlets in a network of around 4000 distributors 47
depots with dry and cold warehouses to buffer inventory of all its products Advance demand
draft basis from wholesale dealers.
THE CHANNEL NETWORK Distribution channel- downstream flow Procurement channelupstream flow:DOWNSTREAM FLOW:
First leg Manufacturing units to company depots using 9 and 18 MT trucks Frozen food-below
18C Dairy wet-0-4C Second leg Depots to WDs Transport through insulated 3 and 5 MT TATA
407s Third leg WDs to retailers Transport through rickshaws according to the beat plan
UPSTREAM FLOW:
Milk is taken to VCS by farmers by bicycles Transportation of milk from the co-operatives to the
manufacturing units through trucks equipped with tankers equipped to carry milk Selection
Criteria of the Channel Members Authentication by way of identity Proof of solvency-details of
the bankers Safety of inventory by getting the company stock insured Proper storage space in
31

forms of refrigerators The Company requires the dealers to furnish any Advertising & Sales
initiative undertaken by them on behalf of the company.

CONCLUSION
32

We conclude that, Amul one of the fastest growing industries of India. This industry has
revolutionized the Indian dairy sector and also brought it back from the brink of extinction. Also
it was one of the first successful cooperative associations in India and also now the market leader
in the dairy sector. Amul remained as the trend setter in the whole operations. Amul projects
delivered a lot of benefits to the rural community. Unlike the others in the industry Amul
facilitated the rural mass for in becoming an empowered community. Agricultural Universities
and Government Agencies are also getting into the projects of GCMMFL. Amul itself has seen
increased revenues.
Distribution is influence by the customer expectation. Manufacture chooses to use intermediaries
between themselves and end user. Direct mail works on large scale telemarketing is also
distribution channel that works to get target customers direct response to an offer. Two stage
between producer and consumer segmentation of distribution channel.
Producer-Customer this is the simplest and shortest channel in which no middlemen is involved
and producers directly sell their products to the consumers. It is fast and economical channel of
distribution. Producer-Retailer-Customer- This channel of distribution involves only one
middleman called 'retailer'. Under it, the producer sells his product to big retailers who in turn
sell to the ultimate consumers.
Producer-Wholesaler-Retailer-Customer this is the most common and traditional channel of
distribution. Under it, two middlemen i.e. wholesalers and retailers are involved. ProducerAgent-Wholesaler-Retailer-Customer: - This is the longest channel of distribution in which three
middlemen are involved.

RECOMMENDATION
33

1. Amul has a relatively good distribution network, but still company is not able to fulfil the
demand of outlet in the peak season when demand is very high. Here company should consider
on the supply of product in the peak season.
2. Supply should be regular to all the outlets including those that lie in the pocket roads and not
just in the outlets which lie on the easily accessible routes.
3. Since the penetration of Amul products in eateries is the worst among all the channels, the
company ought to adopt strategy like supplying free menu cards, which has the company logo
printed on them; this will not only increase the penetration of the product in the outlets, but also
improve the market sales.
4. The company should also ask its distributors to supply its products on a bill to bill based credit
system with at least all the reliable retailers, so that the product penetration in the outlets
increases in terms of percentage of units stocked at a time in the outlet, this would also look
appealing to the customer who would instead like to pick up the product at first glance.
5. Credit is the 2nd biggest factor that influences the penetration of the product into the
retail outlet. So company should give the credit to all outlets.
6. Given the fact that margin offered to the retailer is not similar in the case of the competitors
product. For this fact, the company should give good margin to their tailor than the competitors.
7. Due to the lack of awareness of milk product in Cochin, the company should be advertised of
the product by print and electronic media especially in local channel and newspapers.

BIBLIOGRAPHY

34

Websites :

www.amul.coop www.rcdf.com

www.amul.com www.india-seminar.com

www.amul.com/organization.html http://sify.com/finance

www.icmrindia.org

www.studymode.com/.../distribution-channels-of-amul-dairy

www.infobanc.com/trade.../available--dealer-for-amul-products

marketing-sales-distribution-of-amul-sagar-product...

35