PROJECT ON

Submitted in Partial for the award of the Degree of Bachelor in Business Administration 2009-2011

Under the Guidance of: me of the guide from institute Designation

SUBMITTEDBYNa Name of the Student ENROLLMENTNO: 04614701809

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES

Affiliated to Guru Gobind Singh Indraprastha University. Delhi PSP Area, Plot NO.1, Sector 22, Rohini, Delhi 110086

CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the project titled ..AMUL.. is an academic work done by .. submitted in the partial fulfillment of the requirement for award of the degree of Bachelor of business Administration at Maharaja Agrasen Institute of Management Studies, under my guidance &direction. To the best of my knowledge and belief the data &information presented be him/her in the project has not been submitted earlier.

Signature: Name of the Faculty: Designation:

ACKNOWLEDGEMENT

This project on AMUL has been prepared on the basis of various facts and figures that have been collected from various sources. The facts are actual and genuine and the information on this bank has been compiled in my project report. I have to acknowledge that in the writing of this project, I have got immense help from our Director- Dr. N. K. Kakkar, my project supervisor Mr. .., my family and the rest of the faculty of MAIMS have been very co-operative and helpful in bringing out this project. I am also thankful to the staff of this company for providing such information.

EXECUTIVE SUMMARY
The AMUL model is based on strong economic logic for the existence of each tier, meaning each higher tier must generate sufficient value to the satisfaction of its immediate lower tier. Interlocking system of control and ownership ensures that this logic is never lost of sight the owners of AMUL - namely, the farmers have ensured that the organization never loses its independence and autonomy, and that no internal or external stakeholder can take me system for a ride. In order to protect and promote the farmers' interests, AMUL has been always engaged in lobbying activities. Its initiatives in countering the evil effects of WTO, in the passing of Parallel Cooperatives Act in several states, in bringing out the Co-operative Company's Act at the center are only some of the recent examples. By setting standards in the market place in terms of product quality and its price, AMUL has become the natural market leader in its areas of functioning and won the hearts or all lndians. By its organizational design and strategies, AMUL has rediscovered the model of a newgeneration producer cooperative in India, which is different from its traditional form in assigning the right kind of incentives to the shareholders. In terms of forward linkages, however, AMUL approximates a Japanese Keiretsu, wherein the different stakeholders join hands with each other to maximize the value of the enterprise.

Because of this approach, AMUL has never shied away from entering into strategic alliances with other business partners - be they cooperatives or private corporate enterprises. This approach has imparted considerable competitive strength to AMUL through cost reduction, and product and process innovations. Its employees and other stakeholders are quite happy to maintain long-term relations with the organization. 4

By its pricing and quality strategies, AMUL is always striking a balance between the interests of the consumer with those of its producers. Because of Its larger appeal, AMUL has truly symbo.l1zed the real 'Taste of India. Its innovative advertisements have further reinforced its competitive power and appeal. Professional management. of AMUL, which is always accountable to the members, has ensured excellent economic and financial management of it federation, the GCMMF.

Probably the most important component of AMULs success is its visionary and dedicated leadership, which has spent its private resources not only to solve free rider's problem at every stage of collective action but also to protect the organization from predatory attacks from the external environment. Naturally, longer term success and reliability of the AMUL model depends upon whether and to what extent such visionary leadership can be recreated in the coming years.

TABLE OF CONTENTS CHAPTER-1

1.1

INDUSRIAL PROFILE Profile of the Company

Introduction Range of Products Organizational structure Network Structure

2 6
7 9 19 21

1.2

1.3

Problem of the organization SWOT Analysis

22 23

1.4

CHAPTER-2
2.0

20
25
26 27 29 34

Methodology
Objectives of the company Research Design Data Sources Signifance

CHAPTER-3.0
Findings & Analysis

35
36

CHAPTER-4.0
Conclusions 59

CHAPTER-5 .0
Recommendations /Suggestions Bibliography 61 64

CHAPTER-1

PROFILE OF THE INDUSTRY

1.1 INDUSTRIAL OVER VIEW OF CHOCOLATE INDUSTRY

The vital statistics of the confectionery segment seem more promising than the conventional FMCG categories such as toilet soaps or detergents. While toilet soaps and detergents already reach over 90 per cent of the households, both chocolate and sugar confectioneries have abysmally low penetration levels. ORG-MARG estimates suggest that chocolates penetrated just five per cent of the Indian households in 2000. On the other hand, sugar-boiled confectionery reaches 15 per cent of the households, leaving ample room for growth. Even considering the urban market alone, the category reaches just 22 per cent of the urban consumers. This category, therefore, has considerable potential to grow before it reaches saturation point -- as have traditional FMCG products such as soaps and detergents. Chocolates and sugar-boiled confectionery boast of even lower penetration levels than biscuits, which reach 56 per cent of the households. The Indian confectionery market is segmented into sugar-boiled confectionery, chocolates, mints and chewing gums. Sugar-boiled confectionery, consisting of hardboiled candy, toffees and other sugar-based candies, is the largest of the segments and valued at around Rs 2,000 crore. Nutrine Confectionery and Parry Confectionery dominate the organised segment, apart from the Indian arms of MNCs such as Perfetti India and Warner Lambert.

Cadbury India and Nestle India also made a foray into this segment five years ago and have a small presence. Chocolates make up a 22,500-tonne market, which is valued at Rs 400 crore and dominated mainly by listed players Cadbury India and Nestle India. But slipping volumes however, despite its unmistakable potential, the major players in the confectionery industry have not fared too well in recent times in terms of sales growth. Take the chocolate segment. Cadbury India, which derives nearly 76 per cent of its revenues from chocolates and sugar confectionery, has seen its top line growth wind down from 19 per cent in 1999 to 12 percent in 2000 and further to 7 per cent in the first six months of 2001. Nestle India has managed to report healthier sales and profit growth, but this is more on account of the contribution from milk, coffee and culinary products rather than sugar or chocolate confectionery. The only listed player in sugar-boiled confectionery has not done too well either. Parrys Confectionery, a leading player in sugar-boiled confectionery, has reported shrinking sales volumes in 1998-99 and 1999-2000, after robust financial performance in earlier years.

Screeching to a halt these topline numbers only reflect the ground realities. Industry sources estimate that the 22,500-tonne chocolate market, which grew at a robust 12 per cent per annum until 2000, grew by just three per cent in that year. Several factors appear to behind this slowdown. As with all other FMCG products, the demand for confectionery products appears to have been hit by the economic slowdown and the consequent shrinkage in consumer spending. Confectionery products are impulse foods and thus appear to have borne the brunt of a cutback in consumer spending over the past couple of years, while staple foods have continued to exhibit healthy growth rates. This is evident from ORG-MARG figures, which suggest that the annual per capita consumption of chocolates actually fell from 312 grams in 1999 to 307 grams in 2000, while that for sugar boiled confectionery fell from 621 grams to 579 grams (source: ORG-MARG Milestone Papers: The Growth Inertia). Branded staples such as atta and salt registered a healthy increase in per capita consumption over this period. No price hikes,Despite fairly aggressive promotional efforts by marketers, the overall penetration level for chocolates registered no increase between 1999 and 2000. Consumption of chocolates could have been impacted by the selling price increases that marketers affected between 1999 and 2000. In 1999 and 2000, selling prices of key chocolate brands were pegged up by 5-15 per cent, partly reflecting a spike in cocoa prices in that period. This probably contributed to the sales growth for the year. However, with cocoa prices falling sharply in the second half of 2000, marketers were forced to maintain selling prices of most products, holding back value growth in sales. Cadbury India, the market leader in the chocolate segment (market share 71.9 per cent) saw the growth in its chocolate portfolio slow to 6 per cent in the April 2000 to April 2001 period, from nine per cent the previous year. This was mainly due to the healthy double-digit growth rates in its flagship brand -- Cadbury's Dairy Milk. Brands such as 5 Star and Perk stagnated in 2000-01.

Nestle India's chocolate portfolio (comprising of KitKat, Munch and Charge commanding a total market share of 24.7 per cent) slowed even more dramatically, registering less than one per cent growth between April 2000 and April 2001. Though Nestle's recent launch, Munch, has been a success, the low-priced brand has moderated the value growth in Nestle's portfolio. Wooing adults now The avenue for growth appears to lie in taking advantage of the low penetration level for chocolates by roping in new consumers. The chocolate majors attempted to do this by repositioning chocolate, earlier targeted at children, as a snack food for adults. Cadbury's chocolate-coated wafer Perk and Nestle's Charge and Munch were essentially sold on this platform. Though products such as Perk did succeed initially (Cadbury India claims to have added eight million new consumers in 2000), growth in this segment appears to be petering out. Both Perk and KitKat (the chocolate-coated wafer which is central to Nestle's chocolate portfolio), have shown signs of stagnation in 2001, actually reporting negative growth rates for a few of the months. Banking on smaller editions Of late, the chocolate majors have been rejigging their products to launch chocolates in the Rs 10 and Rs 5 price points. Mimicking the trend in other FMCG products, the chocolate majors have been relaunching their conventional chocolate brands in smaller unit packs, hoping that this will prompt more frequent purchases and pep up volume growth. The past year has seen a slew of such launches, the 18-gram version of 5 Star (retailing at Rs 5), the 15-gram version of Cadbury Dairy Milk (Rs 5), Perk Slims (Rs 5), Cadbury Chocobix (a chocolate biscuit combination priced at Rs 5), Nestle Crunch (a mini snack at Rs 6) and Nestle Munch (Rs 5). It is early days yet to judge if this has indeed pepped up volume growth in the segment. However, the chocolate majors do not have much to lose. Unlike the low unit pack versions of products such as shampoos, the low unit packs of chocolates do not cost less on a per gram basis than their normal versions. In most cases, the grammage offered under the low priced packs, has been brought down in the same proportion as the price, leaving realisations for the chocolate majors untouched.

INTRODUCTION

ABOUT THE COMPANY

Thirty years ago the milk producers of Gujarat had come together and decided to create their own organization to enhance the marketing capacity of the dairy Cooperative milk marketing federation Limited (GCMMF Ltd.). Mr. V. Kurien was the founder of this co-operative society and this society had been formed in a small village of Gujarat named Anand. Gujarat Cooperative Milk Marketing Federation (GCMMF Ltd) is a Indias largest food product marketing organization. It is a state level apex body of milk cooperative in Gujarat, which aims to provide remunerative return to the farmers and also serve the interest of consumers by providing quality products, which are good value for money. Member 12 district cooperative milk producers union No. of Producer Member: No. of Village Societies : Total Milk handling capacity Milk collection (Total-2004-2005) Milk collection (Daily Average 2004-2005) 2.36 million 11.333 6.9 million liters per day 1.81 billion liters 4.97 million liters

Milk Drying Capacity: Cattel feed manufacturing Capacity:

511 metric Tones per day 2340 Mitts per day

AMULS HISTORY
Amul birth is indelibly linked to the freedom movement in India. It was Sardar Vallabhbhai Patel who said that if the farmers of India are to get economic freedom then they must get out of the clutches of the middlemen. The first Amul cooperative was the result of a farmers meeting in Samarkha (Kaira district, Gujarat) on 4 January 1946, called by Morarji Desai under the advice from Sardar Vallabhai Patel, to fight rapacious milk contractors. It was Sardars vision to organize farmers, to have them gain control over production, procurement and marketing by entrusting the task of managing these to qualified professionals, thereby eliminating the middlemen, the bane in farmers prosperity. The decision was taken that day in January 1946. Milk producers cooperatives in villages, federated into a district union, and should alone handle the sale of milk from Kaira the government run Bombay Milk Scheme. This was the origin of the Anand pattern of cooperatives. The colonial government refused to deal with the cooperative. The farmers called a milk strike. After fifteen days the government capitulated. This was the beginning if Kaira District Cooperative Milk Producers Union Ltd., Anand registered on 14 December 1946. Mr. V.Kurien was the founder of this cooperative society. This society had been formed in a small village of Gujarat named Anand. Originally the Anand pattern included dairy cooperative societies at the level. Inspired by the Kaira Union, similar milk unions came up in the other districts too. In 1973, in order to market their product more effectively and economically, they formed the GCMMF Ltd. GCMMF become the sole marketer of the original range of Amul products including milk powder and butter. That range has since grown to include ice cream, ghee, cheese, chocolates, shrikhand, paneer, and so on. These products have made Amul a leading food brand in India.

The brand name AMUL, has taken from the Sanskrit Amoolya, meaning priceless, was suggested by a quality control expert in Anand. The first products with the Amul brand name were launched in 1955. Since then, they have been in use in millions of home in all parts of India and beyond. Today Amul is a symbol of many things: of high quality products sold at reasonable price, availability, and service. Amul is the brand name of two million farmers, members of 10,000 village dairy cooperative societies throughout Gujarat. This is the heart of Amul; it vis what is so special about the Amul saga. Amul in 1946 was really an effort to carve out a truly Indian company that would have the involvement of millions of Indians and place direct control in the hands of the farmers. It was a mandate for producing, owning and marketing and above all, building your own truly Indian Brand. Amulss birth was thus a harbinger of the economic independence of our farmer brethren. Today, 173 milk producers cooperative unions and 22 federations play a major role in meeting the demand for packed milk and milk products. Quality packed milk is now available is more than 1,000 cities throughout the length and breadth of India. Amul, therefore, is a brand with a difference. That difference manifests itself in a larger than life purpose. The purpose freedom to farmers by giving total control over procurement, production and marketing.

RANGE OF THE PRODUCT:Bread spreads:

Amul Butter Amul Lite Low Fat Bread spread Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese Amul processed Cheese Spread Amul Pizza (Mozzarella) Cheese Amul Shredded Pizza cheese Amul Emmental Cheese Amul Gouda cheese 10

Curd Products:

Yogi Sweetened Flavored Dahi (Dessert) Amul masti Dahi (Fresh cured) Amul Butter Milk Amul lassee

11

Milk Drink: Amul cool flavored Milk

Amul kool Kesar Amul kool Elachi Amul kool Coffee Amul kool Rose Amul kool Strawberry Amul kool Mango

12

Health Beverage:

Amul Shakti White Food

Mithaee Range (Ethnic Sweets):

Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamuns Mix Amul Mithaee Kulfi Mix

13

UHT Milk Range:

Amul Shakti 3% fat Milk Amul taaza 1.5% fat Milk Amul Gold 4.5% fat Milk Amul Lite Slim & Trim Milk 0% fat Milk Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy

14

Chocolate & Confectionery:

Amul Milk Chocolate Almond Bar Chocozoo

Milk Powder:

Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder

15

Fresh Milk:

Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardized Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat

16

PRODUCT SPECIFICATION

Composition:

Milk Fat 2% Sugar 55% Total Fat 32.33% (Milk Fat + Cocoa Fat) Cocoa Solids 7.5% Milk Solids 20%

17

18

MARKET PRESENCE Sales Turnover

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Rs. (Million)
13790 15540 18840 22192 22185 22585 23365 27457 28941 29880

sale s tu r n o v e r
35000 30000 25000 Rs. million 20000 15000 10000 5000 0 R s . (Millio n ) ye a r 1 9 9 5 -9 6 1 9 9 6 -9 7 1 9 9 7 -9 8 1 9 9 8 -9 9 1 9 9 9 -0 0 2 0 0 0 -0 1 2 0 0 1 -0 2 2 0 0 2 -0 3 2 0 0 3 -0 4 2 0 0 4 -0 5

ORGANIZATIONAL STRUCTURE

19

BOARD OF DIRECTOR MANAGING DIRECTOR CHIEF GENERAL MANAGER GENERAL MANAGER ASSISTANT GENERAL MANAGER EXECUTIVE DEPUTY EXECUTIVE ASSISTANT EXECUTIVE SENIOR EXECUTIVE JUNIOR EXECUTIVE

FIELD SALES REPRESENTATION

DISTRIBUTION CHANNEL
20

MEMBER UNION (PLANT)

DEPOT GODOWN

DISTRIBUTOR

RETAILERS

CONSUMER

NETWORKING STRUCTURE OF AMUL INDIA LTD.

21

HEAD OFFICE (ANAND)

DEPOT ZONAL OFFICE MUMBAI JAMMU PARWANOO AHAMDABAD CUDHINA SRI LANKA, NEPAL MOHALI CALCUTTA THILAND, SINGAPUR DELHI MUMBAI NAGPUR CHENNENAI BOLSER PUNE UNITED STATE OF AMERICA MAJOR EXPORT MARKET IRAQ, KUWAIT

NEWZELAND

RANCHI ASANSOL PATNA

1.3

PROBLEMS OF THE ORGANIZATION

22

It is not a hidden fact the amul has its own image or brand, which shows the value of money for its product. The AMULS have a great product line and depth. AMULS products are Amul Butter, Amul Cheese Amul confectionery, Amul Flavored Milk and Pasteurized milk, Dahi, Lashi, Ice-cream, etc. If we give a overall look on the all market position of AMULS product almost all product have a grate market share in other hand all product are market leader with there grater sales volume and high turn over, for example AMUL Butter, AMUL Flavored milk, AMUL Mogerella chess. But in case of AMUL Chocolate the position of AMUL is not satisfactory. It is generally consider AMUL is in the 3rd position after CADBURY and NESTLE. Both the company has separate distribution channel for chocolate, they are giving high priority to confectionery products. They are providing easy replacement, high penetration, and regular visit to retailers shop. Most importantly they are providing cool storage equipment to their retailers and they positioning their product through heavy advertisement campaign. Recently the AMUL Chocolate is re-lunched in market but the position remains same, which is very critical for the company. After re-lunched, the sale volume and customer awareness about the all chocolate products remain unsatisfactory, which create harsh situation for all organization. Companies highly willing to excel in the chocolate field there are some problem, which is adversely influence the organization. There are some problems, which is as follows: -

Competitors position in market Vast distribution channel which deals almost all product Replacement Retailer satisfaction level Awareness about the product

1.4

S.W.O.T ANALYSIS

23

STRENGTH:-

Amul has a brand image. It has a high quality. It has a great purity. It has a pool of dedicated and hardworking workforce. Experienced market player.

WEAKNESSES: Company dose not provide credit to retailers Company. Company has no proper promotion strategy. Complex replacement procedure. Fewer margins to retailers. There is Lack of availability. Distribution is not up to the mark in every area. Lack of salesmen and distributor in some areas in Delhi. There is a problem with storage of Amul Chocolate

24

OPPORTUNITY: Providing the replacement offer to retailers can increase Sale. Increase in retailer margin can enhance the sale of Amul Chocolate. Focused approach towards small market can also increase the sale of Amul Chocolate. New schemes can be provided to the retailers to attract them to push the sale of Amul Chocolate. Regular supply can be easily compete the competitors and increase its own sale.

THREATS: More competitors are entering in the market. Competitors are providing more margins to retailers. Competitors also giving replacement facility to retailers. Competitors providing regular supply and strong distribution channel. Competitors also reaching to small market.

25

CHAPTER -2 RESEARCH METHODOLOGY

26

2.1

METHODOLOGY

Marketing research is the process collecting and analyzing marketing information and ultimately arrived at certain conclusion Management in any organization need information about potential marketing plans and to change in the market place. Marketing research includes all the activities that enable an organization to obtain the information. This research is very important in strategy formation and feed back of any organizational plan.

There are many type of research some are conceptual, empirical, descriptive, explorative etc. each research type is being used for various purposes. In this research I have used descriptive research; I try to describe what are the factors, which affect the business plan of AMULS Chocolate. Research design is the plan, structure and strategy of investigation conceived so as to obtained to research problem and control variances. It is the specification of methods and procedures for acquiring the information needed. It is overall operational pattern or framework of the project that stipulated what information is to be collected and from which source and by what procedure.

27

RESEARCH OBJECTIVE
The primary objective would be: To conduct a comparative analysis of Amul Chocolate vis--vis its competitors.

The other objectives would be: To compare Amul Chocolate with its competitors in terms of sales figure. To make an analysis of the shortcomings of Amul Chocolate compared to its competitors. Finally to conclude the findings and suggest the necessary corrective measures and recommendations for improving the market position of Amul Chocolate.

RESEARCH DESIGN
Different types of research design have emerged on account of the different perspectives from which a research study can be viewed. There are three fundamental categories that we used frequently are given below. 1. EXPOLETARY RESEACH: - In the case of exploratory research, the focus is on the discovery of ideas. An exploratory study is generally based on the secondary data that are readily available. It does not have formal and rigid as the researcher may have to change his focus or direction, depending on new 28

idea and relationships among variables. An exploratory research is in nature of a preliminary investigation. 2. DISCRIPTIVE RESEARCH: - The objective of such a study is to answer the who, what, when, where and how. Of the subject under investigation, descriptive studies are well structured and tend to be rigid and its approach can not be changed every now and then. It is therefore, necessary that the researcher give sufficient thought to farming research question and deciding the types of data to be collected and procedure to be used for this purpose.

3. CAUSAL RESEARCH :- A causal research investigates is cause and effect relationship between two or more variables. The causal research design is based on reason along well-tested line. We use inductive logic for confirming hypothesis with the help of future evidence.

TYPE OF RESEARCH CARRIED OUT: In my project work I used exploratory research, as it aim to answering question about sale, brand availability, service quality, distribution pattern etc.

DATA COLLECTION :To achieve the objectives, the primary as well as secondary source of data are used. Primary source includes the retailers and companys officials through questionnaires. Secondary source of data includes the past records of company. The data were collected through the following methodical techniques in the present project work. 1. Through questionnaires

29

2. Through interview 3. Through observation

DATA SOURCES

PRIMARY DATA USED BY THE PEOPLE

SECONDARY DATA
PRIMARY DATA:Primary data is that kind of data which is collected by the investigator himself for the purpose of the specific study. The data such collected is original in character. The advantage of third method of collection is the authenticity. A set of question s was put together in the form of questionnaire with. Question. The method of sampling was the random method as it is unbiased.

SECONDARY DATA:When an investigator uses the data that has been already collected by others is called secondary data. The secondary data could be collected from Journals, Reports and Various Publications. The advantages of secondary data can be economical, both in the term of money and time spent. The researcher of the reporter also did the same and collected secondary from various Internet sites like Google.com.altavista.com and many more. The researchers of the reporter also visited various libraries for collection of the introduction part.

30

QUESTIONNAIRES DESIGN : Questionnaires consist of question printed or type in definite order on a form or set of form. It was questionnaire format firms tested on small sample then was modified and developed according to the environmental situation and other affecting factors. Each questionnaire is framed with systematic and modern technique to make useful in achieving the objectives up to a maximum possible limit. There are two types of questionnaires, the first one is standard questionnaire and the second is un-standard questionnaire. The authority or expert sets the standard questionnaire. In the other hand un-structured questionnaire is set according to objective of the study by researcher. In this research work I used un-structured questionnaire with my best ability and under the guidance of my institutes faculties and the project guide of the organization. After floor acing the questionnaire, the respondents (retailers and customers) were personally contacted. Each respondent was requested to answers the question with appropriate answer genuinely. All the questions were made very clear to them. The questionnaires were duly filled with the responses of all the respondents in the current project work.

INTERVIEW METHOD: There is a fact to face interaction with most of the samples they were directly questioned and according personal and professional problem were collected from them for question are asked to the responded to flourish the questionnaire effectively and efficiently. In this project work I have made interview with almost respondent to know some extra data or fact, which was used in this project work. After using this method I tried to find the competitors policy and there strength after this method I was able to conclude all facts with competitors point of view.

31

OBSERVATION METHOD: During the project work, I contact the retailers and consumers particularly and find their opinion about the Amul Chocolate. In the observation method the research himself collects necessary informations by observing the phenomena under this method. Observation may be conducted on in the natural field or in the form of experiment. After observation the data carefully noted in the questionnaire format. I used uncontrolled observation in this observation takes place in the natural setting. Retailer and customer are free to express their felling about the product and the company. The observation method give me an idea about the satisfaction level of customer and retailer in the other hand there precious knowledge about the market situation make me understand the business difficulties which help me a lot to carry out my project in a significant and effective manner.

SCOPE OF THE STUDY

The present study is the study on GUJARAT COOPERATIVE MILK

MARKETING FEDERATION LIMITED, one of the India largest food

production marketing organization, which is a state level apex body of milk cooperative in Gujarat. From the study one can easily infer the present market position of Amul chocolate with its leading competitors. The study is designed and focused primarily on identifying the present market position of the Amul chocolate. It also includes identification of its core competitors and enhancing efforts towards brand repositioning in present and in future.

32

MANAGERIAL USEFULNESS OF THE STUDY

The research is a systematic investigation of any idea. The research is widely used in the business world for analyzing & evaluation business policy as well as the analyzing & evaluates competitors activity and policy. The research is itself valuable. The research gives fact and figure, which is useful in planning.

As it is obvious any business activity is based on to the 4 Ps of marketing viz. price, product, promotion, place all these Ps have its own importance and all are interrelated with each other but most importantly all the factor are independent in the nature. In any organization all factors are carefully formulated to gain a success in the market. It is very important for business analyst to evaluate the modern trend and market position. In the other hand it is vital for business operation to know the need and desire of customer. All the necessary information is received from market by research work.

The study reveals many facts that have come up during my project and these facts can either be used as opportunities in exploring and expanding the business as well as can be used as safeguards against threats by the competitions. To prepare an effective marketing strategy a company must study it s competitors as well as its actual and potential retailer. A company should maintain good relation with their distributors and retailers keeping in view competitive orientation in todays global market. Company should neither put much emphasis on competitors positioning nor should it solely concentrate on its own products and policy. Rather it should find midway between

33

these two extremes and adopt flexible policy. Companies should manage a good balance of declares retailer, consumer & competitors monitoring. The information will prove beneficial in taking proactive action for combating competition .the standing of the company and its competitors in the mind off the retailer in a vital factor in deciding the success of business the study also aims at finding out the market share in term of their sale, product penetration demand etc which is adjusted by retailer. This information is good guide to management as it brings out the strength of the competition their product penetration, product demand their promotion policy, which gives a overview where the company needs to improve. This study basically aimed at providing the management desired vital information about the market situation. There say due to immerse competition in Indias fast moving consumer goods market my work on GCMMF Ltd. And consumer behavior can be useful in following ways:-

It can be useful for adopting the proper marketing mix in respect of type of chocolate, distribution pattern, and market share.

It can be useful to understand the consumer perception which is very vital for product mix as well as promotion mix.

34

SIGNIFICANCES OF THE STUDY

Any Research has its own importance in any business organization. The research shows the real fact about product as well as organization. Research is a systematic and scientific investigation of any idea either precise or abstract from a continuous basis for learning , it could be either exploratory or descriptive. According to above definition research is a systematic and scientific investigation through which any organization try to find out its strength and weakness as well as opportunity and threat. As we know in the present era the business activities have become more complex and complicated due to modern technology , globalization and liberalization and in conscious about quality, other hand today customer are highly customers are not blind products and brand .In recent time

follower of a product. They are giving high priority to all feature like price, innovative features etc. But after all this features brand becomes the inevitable parts of any product because it gives the complete identification of product so it is also the one most important part. My research work is highly focused on this issue, which is important for me as well as the organization. During research work I learnt retailers opinion about product and services.I learnt which factors affect the retailer to sale an individual product, this research gives me insight to understand the retailers problem as well their area of interest , in this I got the great experience about the market For company point of view I tried to find the serious drawback, which is

highly, affected the sale of chocolates. I tried to find market share of Amul chocolate which is itself important .I tried to find the sale figure of Amul 35

chocolate in term of rupees, due to some hurdle I dont claim my

research

work is 100% accurate because so many factors was uncontrolled during the project .I tried to finish my research with 100% accuracy which is best available in market .

CHAPTER- 3 DATA ANALYSIS AND FINDINGS

36

DATA ANALYSIS OF CUSTOMER QUESTIONNIERS

MOS POPUL K T AR IND OFCH OCOL TE A

Canndy Bar Toffey All

9%

8%

17%

66%

Interpretation:The red colour segment in the pie chart indicates the most popular bar, which is consumed by the consumer with 66 %. The yellow colour segment shows that toffee is the second most popular chocolate, which is consumed with 17 % with the consumers. The blue colour segment indicates candy, which is liked by people with 08 %. The last green segment indicates that only 09 % people like all the chocolates.

37

CUS OMERPERCEPTIONWH E T IL PURCH ING AS

Flavour Gift Both

30%

4%

66%

Interpretation:The customers while purchasing the chocolates have different prefences, as shown in the pie chart the blue segment shows that 66 % of the customers purchases chocolates with their preferred flavours. The red segment shows that only 04 % of the customers prefer gifts as chocolates. The yellow segment shows that 30 % of the customers prefers both the flavours and gift while purchasing chocolates.

38

ChartTitle
After m eal Party/Birthday 4% AnyTime

8%

88%

Interpretation:There are various time periods where the demand changes for the chocolates. The yellow segment of the chart with 88 % shows that the customers prefer chocolates at any time. The red segment shows that 08 % of the customers like chocolates during parties or birthdays. The blue segment indicates that only 04 % of the customers like chocolates after their meals.

39

ChartTitle
Milky Milky+ Fruit-n-Nut Coffee Coffee+ Fruit-n-Nut 2% 6% 8% 22% Fruit-n-Nut All Milky+ Coffe Other

12% 2% 26% 22%

Interpretation:This analysis shows the demand of the chocolate with the preferred flavours. According to the survey 22 % of the customers prefer milky flavour,26 % of the customers prefer coffee flavour,22% of the customers like the fruit n nut flavour,2% of the customers like the milky And coffee flavour, 12 % of the customers kike milky and fruit n nut flavour,8% prefer coffee and fruit n nut flavour,2% of the customers like all the flavours,and only 6% of the customers prefer other flavours.

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FIRST PREFERANCE OF CHOCOLATE

Amul Cadbury Nestle Other

13%

5%

15%

67%

Interpretation:The customers have different first preference of chocolate. The red shows that 66% of the customers prefer Cadbury as their first preference, the blue shows that 15% of the customers prefer amul as the first preference,the yellow shows that 13% like nestle as their first preference, and only 6% customers prefer other as their first preference.

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SECOND PREFERANCE OF CHOCOLATE

Amul Cadbury Nestle Other

20% 28%

14% 38%

Interpretation:This survey shows that 38% of the customers prefer Cadbury as thir second preference,28% customers prefer nestley as their second preference,20% of the customers prefer amul as their second preference, and 14% of the customers prefer others as a second preference.

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WEEKLY PURCHASE(IN RS/-)

Below Rs/- 50 Rs/- 50 -100 Above Rs/- 100

10% 20% 70%

Interpretation:This analysis shows the purchasing power of the customers in a week. this shows that.70% customers spend Rs 50 on chocolate,20% customers spend Rs 50-100 on chocolate,10%of the customers spend above rs 50 on chocolate.

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AW ARENES OFAMULCH S OCOL TEIN A CUS OMER T

Am Milk Chocolate ul Alm ond Bar Bindaaz Fundoo Chocozoo

4%

10% 5% 23% 58%

Interpretation

This analysis shows that 58% of the customers are all well aware about the amul milk chocolates. 23% customers are well aware about the almond bar.10% customers are welkl aware about the chocozoo,5% customers are well aware about the fundoo,4% customers are aware about the bindaz.

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DATA ANALYSIS OF RETAILERS

Penetration of Chocolate 120

100

96

94 95

98 92 85 82 70 71 64 65 80 72 68

r e 80 l i a t e R f o e g 60 a t n e c r e P
40

52

North Delhi south Delhi East delhi Wes Delhi Central Delhi

20

Company Name

Interpretation: This is a survey which is conducted for the retailers .it shows that 92-98% customers
sells Cadbury chocolate,70-85% customers seels nestle chocolate,52-72% customers seels amul chocolate

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Penetration of Amul Chocolate

120

100

99 98 97 92 89
North Delhi south Delhi

80 e g a t n e c r e P

60 50 40 38 30 23 20 10 12 7 13 40 35 42 40 38 35

60 53
East delhi Wes Delhi

40

38

Central Delhi

20 15

0 Milk Chocolate Alm ond bar Bindaaz Chocozoo Fundoo

Items

Interpretation:This survey is conducted for the penetration of amul chocolates. it shows that 89-99% customers are well aware about the milk chocolate,10-40% customers are well aware about the almond bar,7_50% of the customers are well aware about the chocozoo,1560% customers are well aware about the fundoo

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Procurmentof Am Chocolate(East D ul elhi Distributor WholeSaler Both )

48%

29% 23%

Interpretation:This survey is done on the various parts of Delhi this is about the east Delhi. It shows that procurement of amul chocolate through distributor in east Delhi is 29%, procurement of amul chocolate through wholesaler in east Delhi is 23%, procurement of amul chocolate through distributor and wholesaler in east Delhi is 48%.

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ChartTitle
Distributor WholeSaler Both

17% 13% 70%

Interpretation:This survey is done in the north side of the delhi .it shows that the retailer procure 70% amul chocolate from distributor in north Delhi, retailer procure 13% amul chocolate from wholesalers in north Delhi, retailer procure 17% amul chocolate from distributor and wholesaler in north delhi. .

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Procurm of Am Chocolate(S ent ul outh D WholeSaler Both Distributor elhi)

19% 9% 72%

Interpretation:This survey is conducted in south Delhi. it shows that retailers procure 72% amul chocolate from distributor in south Delhi, retailer procure 9% amul chocolate from who; sealer in south Delhi, retailer procure 19% amul chocolate from distributor and wholesaler in south Delhi.

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ChartTitle
Distributor WholeSaler Both

17%

31%

52%

Interpretation:This survey shows that retailers procure 31% amul chocolate feom distributors in west delhi,retailer procure 52% amul chocolate from wholesalers in west delhi,retaler procure 17% amul chocolate from distributor and wholesaler in west delhi.

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Procurm of Am Chocolate(Central D ent ul elhi)

Distributor WholeSaler Both

47%

27% 26%

Interpretation:This survey shows that retailers procure 27% amul chocolate from distributor in central Delhi, retailer procure 26% amul chocolate from wholesalers in central Delhi, retailer procure 47% amul chocolate from distributor and wholesaler in central delhi.

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D andof Chocolate(EntireD em elhi)

Cadbury Nestle Am ul

11% 27% 62%

Interpretation:This survey is conducted for the demand of the amul chocolates. It shows that demand of Cadbury chocolate in entire Delhi is about 62%,demand of nestle chocolate in entire de3lhi is about 27%,demand of amul chocolate in entire delhi is about 11%

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W eeklyS of Chocolate(NorthD ale elhi)

Cadbury Nestle Am ul

12% 17%

71%

Interpretation:This survey shows the weekly sales of chocolates in north Delhi. weekly sales of Cadbury in north delhi is about 71% weekly sales of nestle in north delhi is about 17%,weekly sales of amul is about 12%.

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W eeklyS of Chocolate(S ale outhD elhi)

Cadbury Nestle Am ul

20% 52% 28%

Interpretation:This shows weekly sales of chocolates in south Delhi. it shows that weekly sales of Cadbury in south Delhi is about 52%,weekly sales of nestle in south Delhi is about 28%,weekly sales of amul in south Delhi is about 20%.

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W eeklyS of Chocolate(CentralDelhi ) ale

Cadbury Nestle Amul

14% 25% 61%

Interpretation:This shows the weekly survey in central Delhi. It shows that weekly sale of Cadbury in central Delhi is about 52%, weekly sales of nestle in central Delhi is about 28%, weekly sales of amul in south Delhi is about 20%.

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W eeklyS aleof Chocolate(W D est elhi)

Cadbury Nestle Am ul

10% 24% 66%

Interpretation:This shows the weekly sales of chocolates in west delhi . this shows that weekly sales of Cadbury in west delhi is about 66%,weekly sales of nestle in west delhi is about 24%,weekly sales of amul in west delhi is about 10%

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FINDINGS
Customer
Bar is most popular in consumer with 66%, Toffee is the second popular chocolate in consumer with 17%,8% People like candy,9% people like all kind of chocolate While Purchasing Chocolate 66% Customer Prefer Flavors, Only 4% Customer Prefer Gift as a Chocolate 30%, Customer Prefer Both Flavor and Gift While Purchasing Chocolate. 88% Customer Prefer Chocolate at Anytime, Only 8% Customer like Chocolate During Party or Birthday, Only 4% Customer Like Chocolate After Meal. According to Survey 22% Customer Prefer Milky Flavor, 26% Prefer Coffee, 22% Prefer Fruit-n-Nut, 2% Prefer Milky and Coffee,12% Prefer Milky and Fruit-n-Nut, 8% Prefer Coffee and fruit-n-Nut,2% prefer All Flavors and only 6% Prefer Other Flavors 66% customer prefer Cadbury as a first preference 15% customer prefer Amul as a first preference,13% customer prefer Nestle as a first preference,6% customer prefer Other as a first preference 38% customer prefer Cadbury as a second preference, 28% customer prefer Nestle as a second preference,20% customer prefer Amul as a second preference,14% customer prefer other as a second preference 70% customer spend below Rs/-50 on chocolate 20% customer spend Rs/-50100 on chocolate,10% customer spend above Rs/-50 on chocolate. 58% customer are well aware about the Amul milk chocolate,23% customer are well aware about the Almond Bar,10% customer are well aware about the Chocozoo,5% customer are well aware about the Fundoo,4% customer are well aware about the Bindaaz.

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RETAILER
92-98% customer sale Cadbury chocolate,70-85% customer sale Nestle chocolate, 52-72% customer sale Amul chocolate 89-99% customer are well aware about the milk chocolate, 10-40% customer are well aware about the Almond bar.,7-50% customer are well aware about the Bindaaz.,13-42% customer are well aware about the Chocozoo.,15-60% customer are well aware about the Fundoo Procurement of Amul Chocolate through Distributor in East Delhi is 29%, Procurement of Amul Chocolate through wholesaler in East Delhi is 23%, Procurement of Amul Chocolate through Distributor and Wholesaler in East Delhi is 48% Retailer Procure 70% Amul Chocolate from Distributor, 13% from Wholesaler Retailer Procure 17% Amul Chocolate from Distributor and Wholesaler in North Delhi. Retailer Procure 72% Amul Chocolate from Distributor, 9% from Wholesaler 19% Amul Chocolate from Distributor and Wholesaler in South Delhi. Retailer Procure 31% Amul Chocolate from Distributor, 52% from Wholesaler Retailer Procure 17% Amul Chocolate from Distributor and Wholesaler in West Delhi. Retailer Procure 27% Amul Chocolate from Distributor, 26% from Wholesaler Retailer Procure 47% Amul Chocolate from Distributor and Wholesaler in Central Delhi. Demand of Cadbury chocolate in entire Delhi is about 62%,Demand of Nestle chocolate in entire Delhi is about 27%,Demand of Amul chocolate in entire Delhi is about 11% Weekly Sale of Cadbury in North Delhi is about 71%,Weekly Sale of Nestle in North Delhi is about 17%,Weekly Sale of Cadbury in North Delhi is about 12% Weekly Sale of Cadbury in South Delhi is about 52%,Weekly Sale of Nestle in South Delhi is about 28%,Weekly Sale of Cadbury in South Delhi is about 20%

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CHAPTER-4 CONCLUSIONS

59

CONCLUSIONS
FROM THE ANALYSIS, THE FOLLOWING CONCLUSION CAN BE ARRIVED AT:
Amul Chocolate enjoys the trust of the retailers as well as the consumer because of its quality and huge brand image. Currently the stock of Amul Chocolate supplied by the company is not of fresh date. As a result of this situation is making an adverse impact on the market of Amul Chocolate There a big storage problem with Amul Chocolate it has needed to keep in certain temperature. Some distributors do not give proper information to the retailers about the product and offers given by the company for the promotion of the Amul Chocolate. This leads bad image of the company. There is some problem with the packaging of the product. As a result the Chocolate puffed before its expiry period. The supply of Amul Chocolate is not proper in some specific areas .Which gives wrong massage about company. The competitors of some of the competitors of are providing easy replacement facility to the retailers which are attracting them towards those companies. Some of the competitors of some of the competitors are providing wider margins to the retailers. Wider margin is making the retailers to push the sales of the competitors. There are some of the areas in Delhi are not yet Tapped properly by the company. On the other hand the competitors are making a regular.

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CHAPTER-5 RECOMMENDATIONS/SUGGESTION

61

RECOMMENDATION
On the basis of research and analysis of the study conducted in DELHI market, which was divided into five areas viz. south, north, east, west and central Delhi for the AMUL Chocolate. I would like to suggest the following key point to the company. The company should try to build some feed back mechanism from the retailer to check the wholesalers intervention in the AMULS distribution area because the wholesaler try to hamper the goodwill as well as the other benefit of the company and their most important part of distribution channel. The company should maintain separate distribution channel for the chocolate because it is seem mostly during study that one single distribution deals all product, as it is not a hidden fact that the product line and product depth is very wide. In the other hand other product most importantly AMUL butter is hot item for distributor as well as for retailers. Therefore they dont pay proper attaintion on to it. The company should provide new schemes on the regular basis to the retailers as well as to the consumers to increase its market share. During my project this fact become clear that the customer are not well aware about the all product item of amul chocolate so through the strong advertisement company should try to increase the awareness of the AMUL chocolate. The retailers main problem is storage of AMUL Chocolate as I saw Cadbury as well as Nestly both company provide refrigerator and display box for proper storage as well as the promotion of their product so AMUL should do something on this line. Replacement is big problem for retailers especially in chocolate segment because all chocolate products need special kind of care but there some unavoidable factor damage the chocolate so company should provide revive the policy about the replacement, easy replacement facility to the retailers so that they could be attracted toward selling the AMUL Chocolate.

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CHAPTER-6 LIMITATIONS OF THE STUDY

63

LIMITATIONS OF THE STUDY

Although all efforts were taken to make the result of survey as accurate as possible the survey had the following constraints:

Retailers are not willing to give answers of the questions due to their busy schedules.

Retailers hide the facts especially in the sales figure.

A few retailers were not cooperating during the project survey. It was quite difficult to collect necessary data.

Due to the time constraint and other imperative workload during the training period it could not be made possible to explore more areas of concern pertaining to project study.

The employees of Amul India limited were very hesitant and reluctant to give all information which was vital for my project work because some information were confidential in nature.

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BIBLOGRAPHY

BOOKS: KOTLER PHILIP MARKETIG MANAGEMENT NEW DELHI PRENTICEHALL OF INDIA. KOTHARI C.R. RESEARCH METODOLOGY

SEARCH ENGINE: WWW.GOOGLE.COM WWW.YAHOO.COM

WEB SITE: WWW.AMUL.COM

MAGAZINES: BUSINESS WORLD BUSINESS TODAY

PREOIDICAL: ECONOMIC TIMES TIMES OF INDIA(DELHI EDITION)

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