Developing Marketing Strategy for New Products

“Amul” The Taste Of India

AMUL means "priceless" in Sanskrit. The brand name "Amul," from

the Sanskrit "Amoolya," was suggested by a quality control expert in
Anand. Variants, all meaning "priceless", are found in several Indian
languages. Amul products have been in use in millions of homes
since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream,
Nutramul, Amul Milk and Amulya have made Amul a leading food
brand in India. (Turnover: Rs. 52.55 billion in 2007-08). Today Amul
is a symbol of many things. Of high-quality products sold at
reasonable prices. Of the genesis of a vast co-operative network. Of
the triumph of indigenous technology. Of the marketing savvy of a
farmers' organisation. And of a proven model for dairy development.

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 Developing Marketing Strategy for New Products

GUJARAT COOPERATIVE MILK MARKETING

FEDERATION

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's

largest food products marketing organisation formed in 1973. It is a
state level apex body of milk cooperatives in Gujarat which aims to
provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good
value for money.

Members: 13 district cooperative milk

producers' Union
No. of Producer Members: 2.7 million
No. of Village Societies: 13,141
Total Milk handling capacity: 10.21 million litres per day
Milk collection (Total - 2007-08): 2.69 billion litres
Milk collection (Daily Average 7.4 million litres
2007-08):
Milk Drying Capacity: 626 Mts. per day
Cattle feed manufacturing 3090 Mts per day
Capacity:

Business Philosophy
• To serve the interest of milk producers

• To provide quality product to consumers- value for

money

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 Developing Marketing Strategy for New Products

Business Values
• Customer Orientation • Integrity

• Commitment to • Excellence
producers
• Leadership
• Belongingness
• Quality
• Co-operation
• Innovation
• Pride in Organisation
• Growth Orientation- New
• Employee Satisfaction Products

Mission Statement

We, at GCMMF, endeavour to satisfy the taste and nutritional

requirements of the customers of the world, through excellence in
marketing by our committed team. Through co-operative
networking, we are committed to offering quality products that
provides best value of money.

The Marketing Function

The Marketing Function comprises three primary sub-functions:-

• Managing the Brand Equity

• Expanding Market size and market share

• Facilitating business growth through relevant diversification

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 Developing Marketing Strategy for New Products

Table no.1- Status of GCMMF Ltd.

Sales US $ (in Annual

Turnover Rs (million) million) Growth (%)
1994-95 11140 355 23.79
1995-96 13790 400 12.69
1996-97 15540 450 21.24
1997-98 18840 455 17.79
1998-99 22192 493 -0.03
1999-00 22185 493 1.82
2000-01 22588 500 3.44
2001-02 23365 500 17.51
2002-03 27457 575 5.40
2003-04 28941 616 0.98
2004-05 29225 672 29.12
2005-06 37736 850 13.36
2006-07 42778 1050 22.85
2007-08 52554 1325 --

GCMMF: PRODUCER MEMBERS

2605487
2415375 2488032
2276308 2359875
2084536 2117555 2158576 2223796
1893330 1950768

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Fig 1

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 Developing Marketing Strategy for New Products

GCMMF: VILLAGE SOCIETIES

12792
11615 11962
11123 11400
10675 10852
10183 10364 10411
9912

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Fig 2

GCMMF: AVERAGE MILK PROCUREMENT (IN LAC LTRS./DAY)

65.33
62.51
57.13
50.84 49.66
44.19 45.87
43.46
38.52 40.22
37.35

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Fig 3

List of Products Marketed

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 Developing Marketing Strategy for New Products

Breadspreads:

• Amul Butter
• Amul Lite Low Fat Breadspread
• Amul Cooking Butter

Cheese Range:

• Amul Pasteurized Processed Cheddar Cheese

• Amul Processed Cheese Spread
• Amul Pizza (Mozarella) Cheese
• Amul Shredded Pizza Cheese
• Amul Emmental Cheese
• Amul Gouda Cheese
• Amul Malai Paneer (cottage cheese)
• Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

• Amul Shrikhand (Mango, Saffron, Almond Pistachio,

Cardamom, Pineapple, Rajbhog, Butter scotch, Strawberry)
• Amul Amrakhand
• Amul Mithaee Gulabjamuns
• Amul Mithaee Gulabjamun Mix
• Amul Mithaee Kulfi Mix
• Avsar Ladoos

UHT Milk Range:

• Amul Shakti 3% fat Milk

• Amul Taaza 1.5% fat Milk
• Amul Gold 4.5% fat Milk
• Amul Lite Slim-n-Trim Milk 0% fat milk
• Amul Shakti Toned Milk
• Amul Fresh Cream

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 Developing Marketing Strategy for New Products

• Amul Snowcap Softy Mix

Pure Ghee:

• Amul Pure Ghee

• Sagar Pure Ghee
• Amul Cow Ghee

Infant Milk Range:

• Amul Infant Milk Formula 1 (0-6 months)

• Amul Infant Milk Formula 2 ( 6 months above)
• Amulspray Infant Milk Food

Milk Powders:

• Amul Full Cream Milk Powder

• Amulya Dairy Whitener
• Sagar Skimmed Milk Powder
• Sagar Tea and Coffee Whitener

Sweetened Condensed Milk:

• Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

• Amul Taaza Toned Milk 3% fat

• Amul Gold Full Cream Milk 6% fat
• Amul Shakti Standardised Milk 4.5% fat
• Amul Slim & Trim Double Toned Milk 1.5% fat
• Amul Saathi Skimmed Milk 0% fat
• Amul Cow Milk

Curd Products:

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 Developing Marketing Strategy for New Products

• Yogi Sweetened Flavoured Dahi (Dessert)

• Amul Masti Dahi (fresh curd)
• Amul Masti Spiced Butter Milk
• Amul Lassee

Amul Ice-creams:

• Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)

• Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit
Bonanza, Roasted Almond)
• Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir,
Fresh Strawberry, Black Currant, Santra Mantra, Fresh
Pineapple)
• Sundae Range (Mango, Black Currant, Sundae Magic, Double
Sundae)
• Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies,
Tricone, Chococrunch, Megabite, Cassatta)
• Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips,
Cake Magic)

Chocolate & Confectionery:

• Amul Milk Chocolate

• Amul Fruit & Nut Chocolate

Brown Beverage:

• Nutramul Malted Milk Food

Milk Drink:

• Amul Kool Flavoured Milk (Mango, Strawberry, Saffron,

Cardamom, Rose, Chocolate)
• Amul Kool Cafe

Health Beverage:

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 Developing Marketing Strategy for New Products

• Amul Shakti White Milk Food

• Amul Milk Shake

Exports

GCMMF is India's largest exporter of Dairy Products. It has been

accorded a "Trading House" status. GCMMF has received the APEDA
Award from Government of India for Excellence in Dairy Product
Exports for the last 8 years.

The major export products are:

• Consumer Packs
• Amul Pure Ghee
• Amul Butter
• Amul Shrikhand
• Amul Full Cream Milk Powder
• Amul Mithaee Gulabjamun
• Amul Skimmed Milk Powder
• Nutramul Brown Beverage
• Amulspray Infant Milk Food
• Amul Cheese
• Amul Malai Paneer
• Sterilized flavoured milk.

Bulk Packs

• Amul Skimmed Milk Powder

• Amul Full Cream Milk Powder

Many of Amul products are now available in the USA, Gulf Countries
and Singapore.

Achievements of Awards by GCMMF LTD.

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 Developing Marketing Strategy for New Products

• GCMMF bags APEDA AWARD for 11th year in a row

GCMMF has bagged award for excellent performance in exports of

dairy products for the year 2006-07 from Agricultural and Processed
Food Exports Development Authority (APEDA), Minister of
Commerce, New Delhi. GCMMF has won the award for 11th time.
The award was received by Mr. Raveen Choudhary, our AGM (Z-I),
Delhi, from Hon'ble Minister of Commerce, Shri Kamalnath, in a
glittering ceremony held at Siri Fort Auditorium on 3rd June, 2008.

• Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy

Summit

It’s another triumph for brand Amul. After emerging as India’s

topmost brand, it has gone to win one of the world’s most
prestigious awards – The International Dairy Federation Marketing
Award (2007) for Amul pro-biotic ice-cream launch.

• International CIO 100 Award For Resourcefulness

GCMMF is a winner of the prestigious international CIO 100 award

from IDG's CIO Magazine, USA. The 2003 CIO 100 award recognizes
the organisations around the world that excel in positive business
performance through resourceful IT management and best
practices.

GCMMFLtd has divided the whole Indian market in

six zones.

• Delhi zone
• Ahmedabad zone
• Kolkata zone
• Chennai zone
• Mumbai zone
• Guwahati zone

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 Developing Marketing Strategy for New Products

GCMMF has a net work of 48 depots including 2 stock points at Leh

under Jammu depot and Agartala under Silchar depot. Each depot
services 50 WDs on an average. These WDs are located within a
radius of 400 kms from the Depot town. The nature of GCMMF
products is such that the potential for different products widely
varies from state to state, depot to depot and town to town
irrespective of the population size.

To cite a few examples, a small town like Kasargod in Kerala under

Kozhikode Depot sells more quantity of Amulya than even some of
depots. Likewise a town like Berhamput in Orissa under Cuttack
depot sells more Amulspray than a number of depots. Likewise a
town like Leh in Ladak under Jammu depot sells more quantity of
Amul Butter than a number of depots.

WDs are therefore appointed in proportion to the sales potential of

different products in different regions. They also do appoint WDs in
town with low sales potential for certain products, in order to
maintain their market presence and to forestall or prevent
competition from entering that market.

I have been posted at Anand (Vaghasi) Depot for our project which
falls in Ahmedabad zone. 69 WDs are serviced by this depot that
includes tertiary from Mehmdabad to Vapi in Gujarat state.

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 Developing Marketing Strategy for New Products

Depot In Charge

Depot Account I/C Officer I/C (retail AOPs)

DIC (Main Line) DIC (New Line) DIC (Ice-

cream)

FFRs* FFRs FFRs

PSMs** PSMs PSMs

*Field Force Representative

** Pilot sales man

Fig 4 Organization chart of depot.

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 Farmers
Cattle feed
plant Veterinary
Services
Village Co-
operative society

District co-operative milk unions (13)

Local fresh milk sales by MU

Fresh Ambient Chilled Frozen

Depot

Whole sale Dealers

Bulk and Export

Retailers APO APO

Fed
Fig 5 GCMMF Supply Chain
Depot In charge is responsible for all the activity carried out at the
depot and required to fulfill the monthly target and that is decided
by head office based on:

• Indent given by WDs to depot.

• Market trends and prevailing circumstances.
• Competitors’ activities and availability of their products,
consumer schemes etc.
• Closing stock at all depots as well as all Member Unions
plus goods in transit.

Transportation for all the products is done through vehicles taken

and managed by contractors.

Maintaining the godown in good condition is also subcontracted to

warehousing, clearing, and forwarding contractors (WC&F).

Their role is as under.

• Receipt of consignments.
• Cleanliness and upkeep of the storage space.
• Rotation of stocks (First In First Out).
• Deliveries of dispatches : local WD.
• Responsibility of stocks.
• Provide manpower.
• Documentation work.
 PROJECT DESCRIPTION

As one of the business philosophies of Amul (GCMMF) is to provide

quality products to the consumers and to provide value for their
money, Amul facilitates business growth through relevant
diversification and new products development.

This year Amul is introducing new products like Amul Milk Shake and
Amul Bread. My project is in line with this continuous process
carried out at Amul and the title of project is “Developing Marketing
Strategy for New Products Amul Bread and Amul Milk Shake”
DEVELOPING MARKETING
STRATEGY FOR NEW
PRODUCT : AMUL BREAD
History of Bread

The first loaf of bread happened by chance. About 2600 B.C. an

Egyptian slave was making flour and water cakes. He fell asleep and
the fire went out before the cakes were baked. Being in a warm
environment overnight, the dough, and the result was much more
pleasant to eat than the thin, hard cakes they were used to be......."
Otto Frederick Rohwedder is considered to be the father of sliced
bread. In 1912 Rohwedder started work on inventing a machine that
sliced bread, but bakeries were reluctant to use it since they were
concerned the sliced bread would go stale. It was not until 1928,
when Rohwedder invented a machine that both sliced and wrapped
the bread, that sliced bread caught on. A bakery in Chillicothe,
Missouri was the first to use this machine to produce sliced bread.

Indian History and present status of Bread

• The Bread industry is low - tech and low margin industry. In

1977, the Government of India had reserved bread industry
for small scale industries (SSI). The then existing two large
units viz., Britannia Industries Limited and Modern Food
Industries Ltd. were however allowed to continue on the basis
of their respective existing installed capacity.
 • 35 percent of the total production comes from the small scale
sector with about 1500-1800 units in operation. The organised
sector accounts for 20 percent of the total production. The
balance production comes from the un-organised traditional
bakery units operating under cottage/tiny sector numbering
approximately 65000 units in the country. The two major
players i.e. BIL & MFIL are having a market share of 10-12
percent and 7-8 percent respectively. Apart from these two,
there are few large regional players such as Spencers in South
India, Vibbs in Maharashtra, Harvest Gold and Perfect in Delhi,
etc.

• Bread being consumed by wide cross - section of the society,

the marketing of bread is based on a strong retail distribution
network which services the customers.

• As bread industry is a low margin business, cost control is

crucial in sustaining profitability in the long run.

The total market size of bread industry is approximately 15 billion

standard loaves (SL) or 1.5 million tonnes. The current growth is
around 5 - 6 percent p.a. and is expected to remain in the same
level in the medium term.

General information about the Amul Bread

Amul bread is produced by Mogar complex of “Kaira District Co-

operative Milk Producers Union Ltd (KDCMPU Ltd)” at Anand. It is
advanced production plant having 5000 std loaves per day capacity.
Production process is as followed.
 Sieving of Maida

Mixing of dry ingredient

Sponge

Dough Making

Dividing (cutting into small pieces)

Rounding

Sheeting (Passing dough through pair of roller)

Curling

Moulding

Panning

Final proofing

Baking
 Depanning

Sorting

Cooling

Slicing and packing

Dispatch
Fig 6 Process Flow Diagram for Bread

Project Objectives

• To identify the major distributors of bread in Anand and

V.V.Nagar and conduct the retailer survey.

• To estimate the market size for breads in different

verities, its price and margin.

• To conduct the consumer survey on Acceptance of

Concept of bread from Amul.

• To conduct the consumer feedback survey with the

samples of bread.
 THE METHODOLOGY : AMUL BREAD

Research instrument
The data collection instrument was a questionnaire, which contains
both the investigative and measurement questions and samples of
bread. Two questionnaires were prepared for two surveys of
retailers and consumers (Appendix I and III).

Samples
Population for retailer’s survey was retailers who are selling bread in
Anand and V.V.Nagar. Sampling unit for this survey was retailer
selected by convenience sampling method because retailers were
selected based on their easy accessibility. Sample size was kept 51
as per guidance from organization and response rate is 100%.
Population for consumer’s survey was consumers who are
purchasing the Amul products from Amul Preferred Outlets (APOs) at
KDCMPU Ltd and Vidya parlor. Sampling unit for this survey was
consumer selected by judgment sampling method because
consumers who are purchasing Amul product at APOs because they
are good prospects for accurate information. Respondents were also
provided with Amul Bread samples. Sample size was kept 81 as per
guidance from organization and response rate was 100% but 5
respondents were not consuming the bread so they are excluded
form analysis.

Limitations
• Findings of survey are based on replies and approximation
of respondents and they are not maintaining proper
records.
• The survey for consumer was done at APO s because the
product was given for consumption so consumers need to
be taken in confidence and that restricts to go in open
market.

Data Analysis and Findings

Two surveys, retailers selling bakery products and consumers, were

conducted for this project. Based on questionnaires filled, data are
summarized in Master Tables (Appendix II and IV) and based on
Master Tables charts are prepared using Micrsoft Excel sheets.
Data analysis and findings derived are as under.
 APO
4%
medical store
4% bakery restaurant
14% 0% gen sotre
super store other
2% kirana store
0%
super store
kirana store
medical store
14%
APO
bakery
restaurant
gen sotre
other
62%

Relative % of type of store surveyed

Fig. 7.1
• Above chart shows the percentage of particular type of stores out
of 51 surveyed. This indicates that general stores (62%) and
kirana stores (14%) are the major types of stores which keep the
bakery products.

super
33%
aabad modern
super 6%

modern real
6%
real
everfresh everfresh
diwan 4%
aone
diwan
aone
2%
2%
aabad
47%
Relative % of no of stores selling particular brand

Fig. 7.2
• Aabad (47%) and Super (33%) are the major brands of the bread
kept by the retailers apart from them Modern, Real, Everfresh,
Diwan and Aone brands are also kept by some retailers as shown
in chart.

% stores keeping particular type of bread

100

65 65
55
51

29

Fruity
Sandwich Brown Milk Pawn Bun

Fig.7.3
• All the retailers are keeping sandwich bread and percentage of
retailers keeping others types of bread are shown in the chart.

% stores keeping other bakery products

86
82
76

27

Pizza base Toast Khari Biscuit Biscuit

Fig 7.4
• Percentages of retailers keeping other types of bakery products
are shown in above chart.

% of retailers response for readiness to sale "Am ul Bread"

No
24%

Yes
Y es May be
51%
No

May be
25%

Fig 7.5

% of retailers response for acceptability of "Am ul Bread" concept

OK
25%

Yes

No
Y es
51%

OK

No
24%

Fig 7.6
• As shown in figure 7.5 and 7.6, Majority of the retailers (51%) are
accepting the “Amul Bread” concept and are ready to sale “Amul
Bread”.

% of retailers preferance for Amul Bread price in relation with

current market price

51

24

HIGH
LOW SAME

Fig 7.7
• As shown in figure 7.7, Majority of the retailers (51%) are
preferring that Amul Bread should be priced same as current
market price. Some (24%) are also preferring less price and only
few (2%) are preferring higher price. Here respondents not ready
to sale Amul bread are excluded.

% stores keeping other Amul products

51
47

18

Milk Butter Ice-cream

Fig 7.8
• As shown in above chart retailers keeping bread are also keeping
other Amul products like Milk (47%) and Butter (51%). This shows
that bread is highly compatible with dairy products.

Above all analysis is based on the retailer’s survey.

Following analysis is done based on consumer’s survey done with

sample.

%respondents consuming particular type of bread

89

72
70

53

39

28

Sandwich Brown Milk Fruity Pawn Bun

 Fig 8.1
• Sandwich bread is consumed by majority of respondents (89%)
and percentage of respondents consuming other types of breads
is shown in the fig 8.1.

% of respondents consuming bread at particular frequency

56

28

10
6

DAILY ONCE IN A WEAK OCCASIONALY NEVER

Fig 8.2
• Above chart shows that majority (56%) of respondents
consuming bread once in a weak.
 % of respondents preferring particular size of bread

LARGE SMALL
18% 20%

SMALL

MEDIUM

LARGE

MEDIUM
62%

Fig 8.3
• Medium size (400 gm) pack is preferred by majority of the
consumers as shown in the fig 8.3.

% of respondents purchasing particular quantity of pack at a time

84

13
3

1 2 3

Fig 8.4
• As shown in above chart majority (84%) of respondents are
purchasing one pack at a time.
 % of respondents preferring particular attribute of the bread

83

47

36

24
18

Cost Quality Taste Availability Brand Packing

Fig 8.5
• As shown in above chart quality of bread is mostly preferred
followed by taste, brand, cost, availability and packing in their
decreasing order respectively.

% of respondents consumption pattern of bread

97

26

11
3

Breakfast Office tiffin School tiffin Lunch / Dinner

Fig 8.6
• As shown in chart most of the respondents are consuming the
bread in breakfast followed by lunch or dinner. Amul should
deliver the bread early in the morning along with the milk so that
consumers will get fresh product.
 % of respondents consuming other bakery products

89

78 79

66

Pizza Toast Khari Biscuit Biscuit

Fig 8.7

• Above chart shows that majority of respondents consuming

bread are also consuming other bakery products like pizza, toast,
khari biscuit and biscuit.
 % of respondents response for acceptability of "Amul
Bread" concept

Y es
76%

Y es

No
No
4% OK

OK
20%

Fig 8.8

% of respondents response readiness to buy "Amul

Bread"

May be
24%

Y es

May be

No No
1%

Yes
75%

Fig 8.9
• As shown in fig 8.8 and 8.9 majorities of respondents are ready
to accept concept of “Amul Bread” and would like to buy it.
 % of respondents response for chewiness of
"Amul Bread"
Yes
88%

Yes

No

No
12%

Fig 8.10

• Majority of respondents give positive reply for chewiness of

“Amul Bread”.
 % of respondents response for price of "Amul Bread" in relation with
current market price

SAME
49%

LOW

SAME

HIGH

NO REPLY

HIGH
LOW 2%
40%
NO REPLY
9%

Fig 8.11

• As shown in above chart majority of respondents preferring same

price as current market price and many are expecting lower price
than current market price and very few preferring high price than
current market price.
 Some other findings derived directly from master
tables are as under.

• Majority of retailers are getting delivery of bread two times a day

and are also getting at any time when demanded.
• Average sales of retail outlet are around 185 Rs. per day.
• All the retailers are getting replacement of stale bread after 2 or
3 days.
• All the retailers getting 100% replacement for stale product.
• All the retailers have to pay cash for delivery and no more then 1
or 2 days credit time is given by wholesalers.
• Some of the respondents (5 out of 81) were not consuming bread
due to following personnel reasons.
o Health problem due to maida.
o Lack of trust in hygienic condition of bread making by
available producers.
o Unavailability of the bread in rural area.
These types of customers can be convinced by producing whole
wheat bread and making them aware about this. Amul should
also position it self as a producer of good quality bread by
acquiring the ISO certification and following good manufacturing
practices and also increase market penetration in rural areas.
• Most of respondents (93%) are making purchase decision
regarding brand by themselves and remaining are influenced by
retailers and others.
• Many respondents (20) have replied that quality of Amul Bread
samples given them for tasting are of better quality compared to
the bread that they are using. Few (6) have also replied
negatively and others have given positive compliments to Amul
Bread. They have also replied that milk bread is better then
sandwich bread in terms of chewiness and sponginess.
Suggestions given by some retailers and consumers
for “Amul Bread”.

From retailers

• 100% replacement should be given for stale product.

• Delivery of the product should be regular and punctual
preferably in morning.
• In case of shortage delivery at any time should also be given..
• Margin for retailers and wholesalers should be higher then
other competitors and also higher then other Amul products.

From consumers
• Good quality product should be provided.
• Quality of product should be maintained.
• Amul should provide bread in different variety and size.
• Amul Bread should be easily available at any time anywhere.
• Some promotional scheme should be given for easy
penetration of the product in the market.
• There should not be frequently changes in price.
 MARKETING MIX MODEL (SETTING OF 4 P’S )
FOR NEW PRODUCT “AMUL BREAD”

Marketing Mix Model (Setting of 4 P’s) can be used as tool to assist

in developing Marketing strategy for new product. The function of
the Marketing Mix is to help develop a package (mix) that will not
only satisfy the needs of the customers within the target markets,
but simultaneously to maximize the performance of the
organization. 4P’s of Marketing mix Model are
• Product
• Price
• Place
• Promotion

Product
Amul is prepared to launch following variants of bread.
• Sandwich bread
• Whole wheat bread
• Milk bread
• Fruity bread
• Bun and paun
In 3 sizes 200 gm, 300 gm, 400 gm. Amul has also planned for
taking ISO 9001:2001 and ISO22000 certification like other dairy
products. Other bakery products are planned to be launched
subsequently. This finding is derived based on fig 7.3, 8.1, 8.3 and
other suggestions given by respondents.
The process of bread making is shown in fig no. 6.
For product they are maintaining various quality standards like BIS,
PFA.
Price

Table No 2 Prices of different Variants in Bread

Sr Item Name Weight MRP
No (gm)
1. Sandwich Bread 800 28.00
2. Sandwich Bread 600 22.00
3. Sandwich Bread 400 + 50 18.00
4. Sandwich Bread 400 16.00
5. Sandwich Bread 300 13.00
6. Sandwich Bread 200 10.00
7. Brown Bread 400 16.00
8. Milk Bread 200 10.00
9. Bun 9 Pcs 16.00
10. Fruity Bread 100 6.00
11. Pizza base 200 12.00
12. Paun 400 15.00

On going pricing method should be used for deciding the price of

Amul Bread (as indicated in fig 7.7 and 8.11) and above table shows
the prices of different variants in bread for all the competitors’
brands in the market. Presently around 30 % margin is kept over the
cost plus profit of the producer. This 30 % includes 10 %
wholesaler’s margin 5% replacement for stale product and 15%
retailer’s margin. This information is based on discussion with
distributors of Aabad and Super bread for Anand and V.V.Nagar.

Place
Amul has planned to launch the bread at its APOs and other
retailers. Amul has two options either to use its existing network of
dairy product distribution or to appoint new dealers for this new
product line.
Pros and cons of using existing network or appointing new dealers
are as under.
Existing network of milk Appointing new dealers
products
May not well aware of nature of If competitor’s dealers are
bread market which is highly directly appointed, they are well
fluctuating. As bread is aware of nature of bread market
perishable product accurate and their expertise can be used
demand forecasting is required. for accurate demand forecasting.
Extra efforts will be required to Competitor’s retailers will
convince the retailers for to sale required to keep Amul Bread as
Amul Bread and competition it will be supplied by their
from other brands will exist. conventional dealers and
competition will be easily
eliminated.
Additional vehicles must be Current dealers are using their
arranged for supplying bread own vehicles which can be used
which leads to additional for supplying Amul Bread and
investment. minimal additional investment is
required.
They are well aware of the New dealer may be required to
practices followed by the adopt the practices followed, like
GCMMFLtd and do not require transactions in chaques, by the
any adaptation. GCMMFLtd. And for some issues,
like product replacement policy,
GCMMFLtd may be required to
adapt to the new dealers.

As shown in fig 8.6 most of the respondents are consuming the

bread in breakfast followed by lunch or dinner. Amul should deliver
the bread early in the morning along with the milk so that
consumers will get fresh product. Apart from that product should
supply at evening and at any time in case of shortage.

Promotion
Being new entrant in the market Amul should design some
promotional scheme to attract the customers like
• Giving Amul tub butter (small size), Amul Munch time or
Amul Chocozoo with one pack of standard size of bread.
• Giving one standard size of bread free with 400 gm Amul
Butter pack.
• Free trial pack could be given with other Amul products.
• Advertisement should be done efficiently. Local cable
network , local news paper can be used for creating
awareness in anand.
DEVELOPING MARKETING
STRATEGY FOR NEW
PRODUCT “AMUL MILK
SHAKE”
This product was about to launch within 15 days of starting of my
project. So I had done complimentary work in developing the
marketing strategy for the Amul Milk Shake.

Background and Description of Problem

Project Objectives

• To conduct the consumer’s preference survey on different

aspects related with the product.
Amul had planned to launch this product in 220 ml pack size in can
at price of Rs.20. Product was planned to be launched in three
flavours Mango, Banana and Strawberry. Currently the plan has
been implemented and existing distribution network is being used.

Promotional scheme for retailers is introduced in which one can of

milk shake is given free with 4 cans of milk shake for APOs and for
others one can of milk shake is given free with 24 cans of milk
shake.

Production process for the Amul Milk Shake is as under.

Milk

Mixing of ingredients like Sugar and Skimmed Milk Powder

Heating

Addition of stabilizer

Addition of fruit solids

Homogenization

Addition of colour and flavour

Canning
 Sterilization

Cooling

Packing

Dispatch

Fig 9 Process Flow Diagram for “Amul milk shake”

Table no 3 Nutritional information of the product

Flavour Strawberry, Banana and Mango

Milk Used Double Toned Milk
Manufactured by KairaDCMPUL & PanchmahalDCMPUL
Total fat g 2.7
Sat fat g 1.7
Total carbohydrate
g 16
Cholesterol g 0.0075
protein g 4.5
calcium mg 200
sodium mg 70

THE METHODOLOGY : AMUL MILK SHAKE

Research instrument
The data collection instrument was a questionnaire, which contains
both the investigative and measurement questions (Appendix V).

Samples
Population for consumer’s survey was consumers of Anand and
V.V.Nagar. Sampling unit for this survey is consumer selected by
convenience sampling method because respondents were selected
on our convenience due to shortage of resources and time. Sample
size is kept 199 arbitrarily.

Limitations
 • Findings of survey are based on replies and approximation
of respondents.
• The survey for consumer was done at limited places cities.

Data Analysis and Findings

Based on questionnaires filled, data are summarized in Master
Tables (Appendix VI) and charts are prepared based on Master
Tables using Micrsoft Excel sheets.

Data analysis and findings derived are as under.

% of age group of respondents

18 To 40, 50%

Under 18

18 To 40
Above 40, 20%
Above 40

Under 18, 30%

Fig 10.1

• As shown in fig10.1 the age group of 18-40 years was targeted

for survey followed by under 18 years and above 40 years, as the

target market for this product (fun drink) is youth (i.e 18 to 40

years).

% Respondents preferrence on type of bevereges

30
26
24
% respondents

21

Milk base Fruit base Carbonated non fruit Milk+Fruit base

base
Type of beverages

Fig10.2

• As shown in fig10.2 number of respondents preferring the

combinations of Milk+ Fruit base drinks are highest followed by

Milk base, Fruit base and carbonated non fruit base.

 % Frequency of respondents consuming milk shake in15 days

49

41

10

0 0

Never 1-2 Times 3-4 Times 5-6 Times 7 And more times

Fig10.3

• As shown in Fig10.3 most of respondents (49%) have never

consumed milk shake in last 15 days, while some respondents

(41%) have consumed 1 or 2 times, few respondents (10%) have

consumed 3 or 4 times and none has consumed 5 – 6 or 7 and

more times , milk shake in last 15 days.

% of re

Fig10.4

71
• As shown in fig10.4 most of respondents are using home made

milk shake while some respondents rely on unbranded milk

shake available in small shops and restaurants.

Flavour preferance of respondents

34 33
29 29
28
% of respondents

23 24
21 Rank 1
19 20
Rank 2
Rank3
9 10
6 6
5
3
2 2

Mango Banana Strawberry Chiku Almond Others

Flavour

Fig 10.5

• Above fig10.5 shows that Mango flavour is highly preferred by

the respondents as it has been given first (34%) and second

(33%) rank by majority of respondents followed by Strawberry

and Chiku both are almost equally preferred followed by Banana

and Almond. This also suggest that Chiku flavour should be

introduced in the product range.

 % respondents would like to use milk shake on occasions
94

82
75
67

51
41 39
34

Dinner Parties Picnic After Evening Morning Guest Others

athletic walk walk
avtivities

Fig10.6
• As shown in fig10.6 there is variation in occasion of using of Milk

shake. No specific trend can be analysing based on response of

respondents but many respondents would like to have it on

occasion of evening walk, picnic, parties, guest, morning walk,

dinner, after athletic activities in their decreasing order

respectively. “Amul” can create awareness about use of product

and increase the frequency and occasions of consuming milk

shake as health drink which can help them in marketing of

product.
 % of Respondents response on price of milk shake

Definitely not Buy

Definitely Buy
6%
9% Definitely Buy
Probably not Buy
12% Probably Buy

Not sure

Probably not Buy

Probably Buy
41% Definitely not Buy
Not sure
32%

Fig10.7

• As shown in fig no 10.7 most of respondents (41%) will probably

buy product, while some respondents (32%) are not sure about

it, few respondents (12%) will probably not buy it, very few (9%)

will definitely buy and remaining (6%) will definitely buy “Amul

milk shake” for Rs.20 (220 ml).

 Packing preferrence of respondents

39 38
34 34 33 33
33
28 28
% Respondents

Rank 1
Rank 2
Rank 3

Bottle Tetra pack Cans

packing material

Fig10.8

• As shown in fig no 10.8 most of respondents prefers tetra pack as

packing material for milk shake than cans and bottles.

Other Findings

• It is found that most (78%) of the respondents were not well

aware of difference between Milk Shake and Flavoured Milk (It

doesn’t contain any portion of real fruits unlike milk shake) which

may leads to cannibalism of products. So proper positioning

should be done through advertisements to avoid this problem

like sighting quote as “Really Fruity Milk Shake”.

 CONCLUSION

From the project it can be concluded that there is good market

potential for bakery products and this product range is highly

compatible with Amul dairy products so Amul should venture in this

market but this will also bring new challenges to be faced.

Consumers’ preference for milk shake and related aspects revealed

that positioning of this product should be done carefully.

APPENDICES