A

SUMMER INTERNSHIP REPORT

ON

“TO STUDY RETAIL CHANNEL MANAGEMENT STRATEGY OF

AMUL IN PUNE CITY.”

SUBMITTED TO,

SAVITRIBAI PHULE PUNE UNIVERSITY

IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF

MASTER OF BUSINESS ADMINSTRATION IN

MARKETING

UNDER THE GUIDANCE OF,

DR. POONAM WANI

[ASSISTANT PROFESSOR]

SUBMITTED BY,

NITIN RAJESH KORALE

2022-2024 BATCH

AT,
INDIRA GLOBAL SCHOOL OF BUSINESS,
PARANDWADI, PUNE 410506

1
2
 COLLEGE CERTIFICATE

This is to certify that NITIN RAJESH KORALE a bonafide student of Indira

Global School of Business, Pune pursuing Masters of Business
Administration course of 2022-24 batch.

He has successfully completed his Summer Project titled “TO STUDY

RETAIL CHANNEL MANAGEMENT STRATEGY OF AMUL IN PUNE
CITY.” from 08/08/23 to 08/10/23.

To the best of our knowledge no part of this work has been submitted towards
fulfilment of requirement of any degree or has been published before.

We wish him all the best for his future endeavours.

Dr. Virendra Tatake External Panel Member Dr. Poonam Wani

Director SPPU SIP Viva Voce Internal Guide

Indira Global School of Business Indira Global School of

Business

3
 DECLARATION

I hereby declare that this submission is our own work and that, to the best of our
knowledge and belief, it contains no material previously published or written by another person
nor material which to a substantial extent has been accepted for the award of any other degree or
diploma of the university or other institute of higher learning, except where due acknowledgment
has been made in the text.

Name: NITIN RAJESH KORALE

Roll No: MBA22034

Place : Pune

Date : Signature Of Student

4
 ACKNOWLEDGEMENT

First and foremost, I would like to thank INDIRA GLOBAL SCHOOL OF

BUSINESS, PARANDWADI, PUNE for giving me to this opportunity to get
acknowledged with the details of the FMCG industry Summer Internship Desk
Research Program.

I learnt about the performance of FMCG industry in India. I gained an insight

about performance of Amul and its marketing and their retail channel
management strategy. I express my gratitude towards my mentor Dr.
POONAM WANI, who assisted me throughout the SIP. to whom I am
extremely indebted for his valuable and timely suggestions wish to convey my
sincere thanks to Dr. Virendra Tatke sir, Director of the Indira Global
School of Business, Parandvadi, Pune for their inspiration.

At the end of the SIP, I learnt a lot many things and was exposed to the FMCG
industry in detail and different strategies that Amul have implemented.

Place: Pune
NAME: NITIN RAJESH KORALE
ROLL NO: MBA22034
DATE:

5
 Executive Summary

The study on the Retail Channel Management Strategy of Amul in Pune City
reveals insights into how Amul effectively manages its distribution and sales
channels in this specific market.

Amul, a renowned dairy and food products company, has established a strong
presence in Pune by implementing a well-structured channel management
strategy.

Amul employs a diverse set of distribution channels in Pune, including

exclusive Amul outlets, tie-ups with local grocery stores, supermarkets, and a
growing presence on e-commerce platforms.

Amul maintains strong relationships with its retailers, offering them incentives,
training, and marketing support.

Amul’s marketing efforts in Pune resonate well with the local population,
leveraging both traditional advertising and digital media. Local campaigns and
partnerships enhance brand visibility.

Customer feedback and reviews reflect high satisfaction levels with Amul
products, underlining the company’s commitment to quality.

6
 Table of Content

SR.NO. CONTENTS PAGE NO.

1 INTRODUCTION 9-11

2 SECTOR ANALYSIS 12-26

3 COMPANY ANALYSIS 27-44

4 REVIEW OF LITERATURE 45-49

5 OBJECTIVES 50-51

6 RESEARCH METHDOLOGY 52-57

7 DATA ANALYSIS AND 58-65

INTERPRETATION

8 FINDINGS AND CONLUSION 66-67

9 RECOMMENDATIONS 68-69

10 KEY LEARNINGS 70-71

11 REFERNCES 72-73

12 APPENDIX 74-76

7
 Table of Figures

Sr. Figures Page.

No. No
1. Sales Turnover 32
2. Supply Chain Management 39
3. Ad Campaigns 40

8
 CHAPTER 1
INTRODUCTION

9
 Introduction

1.1 Rationale of the study and sector profile in brief.

Project is regarding the study of the detail overview of the Dairy industry
under FMCG sector specifically Amul India.

FMCG (Fast moving consumer goods) sector is the 4th largest sector in
Indian Economy.

Amul is one of India's leading dairy cooperatives, and its products are widely
popular in Pune city. Amul has a strong retail channel management strategy in
Pune, which is essential for the success of its business.

The project will explain the working of the company and its marketing and its
retail channel marketing strategies, also giving insights how Amul has grown
over the years to become leading company in the Dairy industry. In the project,
we have to see the strategy of company to increase their outlets.

1.2 Purpose and Objective of the Project

The main purpose of this project is to study how Amul has created its own
place and position in the mind of the customers with its efforts and unique
branding and advertising using the mascot called “Amul Girl”. Along with it,
the other objective is to study how Amul has sustained itself in such a
competitive market using different marketing and advertising strategies.

1.3 Salient Contribution of the Project

This project will hopefully give the insight about how the new companies
should work and use different advertising and marketing strategies like Amul
has, and continuing to, use to survive in the highly competing market.

10
1.4 Scope of the Project

The scope of a study of Amul's retail channel management strategy in Pune city
could be broad or narrow, depending on the specific interests of the researcher.
A broad study could examine all aspects of Amul's retail channel management
strategy, including its distribution network, retail partnerships, sales force, and
marketing support. A narrower study could focus on a specific aspect of Amul's
retail channel management strategy, such as its effectiveness in reaching
specific consumer segments or its impact on Amul's sales and profitability.

11
 CHAPTER 2
SECTOR ANALYSIS

12
 Sector Analysis
2.1 Overview and Structure of the FMCG sector

Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the
Indian economy. Household and Personal Care accounts for 50 percent of
FMCG sales in India. The key growth drivers for this sector have been the
growing awareness, easier access and changing lifestyle of people. The urban
segment (accounts for a revenue share of around 55 percent) which is the
largest contributor to the overall revenue generated by the FMCG sector in
India. However, in the last few years, it is seen that FMCG market has grown
at a faster pace in rural India compared with urban India. Semi-urban and rural
segments are growing at a rapid pace and FMCG products account 50 percent
of total rural spending.

There are three main segments in the sector- food and beverages, which
account for 19 percent of the sector; healthcare, which accounts for 31 percent
of the share; and household and care and personal care, which accounts for the
remaining 50 percent share.

An FMCG industry overview indicated that India’s demographic profile plays a

major role in the growth of thus sector. Urban development initiatives by the
government, as well as the increasing middle class of India, has led to an
increase in the number of attractive markets in the country. India’s young
population is also characterized by a high degree technological awareness.
Growing penetration of smartphones and better internet connectivity in India
has led to a burgeoning E-Commerce sector, which has, in turn, helped
formalize large sections of the unorganized retail sector. The E-Commerce
segment is projected to contribute 11% of overall Indian FMCG companies’
sales in 2030. The online major FMCG market is projected to reach $ 45 bn in
2020. This has been a major catalyst in the development of the FMCG sector in
rural India.

13
 2.2 Porter's Five Forces Model

Rivalry among existing competitors:

 In the FMCG sector, the competition is extremely high

 There exist numerous companies in each segment of the FMCG sector

 The competitors use all possible ways to gain the market share like price wars,
intense ad campaigns, different discounting strategies and offers to attract
customers, etc.

 So, the rivalry among the competitors is intensely high

Threat of new entrants:

 In FMCG sector, there are no measures to stop the entry to the new companies

 The new entrants can give tough competition to the existing companies

 New entrants give competition in terms of cost effectiveness

 The threat of new entrance is high and necessary to be paid attention to

Threat of substitute products and services:

 Due to never ending needs and desires of customers, no single company can
single-handedly satisfy all the needs

 This gives rise to development to new product development

 If the customer is not satisfied, there is a chance that customer might go to

substitute product or services

 Threat of substitute products is high if the customer is not satisfied with the
existing product

14
 Bargaining Power of Buyers:

 Bargaining power of the buyers is very high as there exists no. of substitute
products to which the customers can shift

 As there are substitutes, customers can prefer the cost-effective products or

simply which are cheaper

 There is also a slight advantage as many customers are reluctant to try new
products

Bargaining Power of Suppliers:

 Bargaining power of suppliers is not very high

 There is ample number of suppliers available in the FMCG industry which in

turn reduces their bargaining power

 High competition among the suppliers also reduces their bargaining power

15
 2.3 PESTEL Analysis
1) Political

 Changes in the tax rates can be challenge as the companies working for profit
has to devise a technique for pricing.

 Change in the infrastructure which is controlled by government like power,

infrastructure cost and transportation can have effect on the FMCG industry.

 Licensing rules and the rules about the FDI, also the changes in Statutory
Minimum Price of commodities are barriers for growth of this sector.

 Permits and licenses for various states, prevailing outdated labour laws, the
lengthy export procedures are the major constraints.

2)Economical

 GDP has been growing, but there has been a drop in that growth which may
slightly cause a change in the growth of this sector.

 Though there is inflation in the country, FMCG sector does not get much
affected by it.

 As FMCG products are one of the necessities, this sector will always remain
mainstream and have growth.

3)Social

 Changing lifestyle of people plays an important role as people are spending

their money more on apparels and footwear as compared to the necessities like
edible oil, cereals, etc.

 Rapid urbanization and increasing literacy results into more earning which is
proving beneficial for the FMCG sector as the purchasing power and
consumption is increasing.

 FMCG do have stronghold on urban areas, so now they are approaching the
untapped market i.e., rural regions which are now giving a positive result in
terms of growth and revenue.

16
 4) Technological

 Effective use of technology can be seen in leading companies but not so much
in the small ones.

 E-commerce is already proving to be a catalyst in the supply chain of FMCG

products as the products which are not present in the shop can be purchased
online.

 Advertisements and unique branding do make a place in the mind of the

customers which eventually helps the growth of FMCG sector.

5) Legal

 Government replaced various indirect taxes imposed on FMCG with a more

direct approach, i.e., GST. This will help in lowering prices as all the taxes
imposed increase the cost of production and producer passes it on to consumer.

 The law also forbids FMCG industry to artificially increase prices by making a
product scarce.

 The law for marketing products states that one company cannot mock product
of another company by explicitly taking its name or showing its picture.

17
2.4 Sub-sectors and Main Players in the sub-sectors

Broadly, this sector can be divided into durable and nondurable goods. Many
nondurable goods can be considered fast moving consumer goods, which are
packaged goods with high sales volume, rapid inventory turnover, and often
short shelf lives, such as foods. Durable goods include many big-ticket
consumer goods, such as cars, major appliances, and household electronics.

FMCG sector can also be classified into three different sub-sectors like food
and beverages, healthcare and household and personal care.

Main players in Food and Beverages

• Amul • Britannia
• Godrej • ITC
• Dabur • Parle
• PepsiCo • Mondelez
• Coca Colan • Hindustan Unilever
• Nestle • MTR Foods

Main Players in Healthcare:

• Emami
• ITC
• Dabur
• Himalaya
• Nivea

Main players in Household and Personal care:

• Godrej Consumer Products • Wipro Consumer Care

• Dabur India • Emami
• Marico • Patanjali Ayurveda

18
2.5 Key Trends and Challenges of the FMCG sector

I) Preferring online shopping

As India is going digital in almost every sector, FMCG sector has also seen the
rise in the number of customers buying online rather than in the shops and
markets.

2) Customers are looking for more convenience

Customers in today's world is looking for convenience in everything and in
every possible way from food to the automobiles. Customers are preferring
pre- cut vegetables which are now provided by the supermarkets or the frozen
microwaveable dishes.

3) Health as an important preference for customers

Customers are shifting to healthier foods like ones which are sugar-free, fat-
free, etc. This is because of their lifestyles, lack of exercise or because of the
influence they might have on them. Many substitutes like soymilk or almond
milk is available to the normal dairy milk. In the past products such as gluten-
free baked goods and beers appealed almost exclusively to those suffering from
celiac disease.

4) Environmental Awareness
Consumers are becoming more conscious of the negative impact of FMCG
production and its byproducts. Products labelled as -organic" and "local" have
broadening appeal as does the adoption of more plant-based foods.

5) Involvement of customers' experience

Various products in the section of snacks like Bingo is encouraging customers
to share their choice of flavours which will urge others to buy the products and
will increase their involvement.

19
 2.6 Regulatory Bodies in the sector and their role
FSSAI (Food Safety and Standards Authority of India)

 Framing of Regulations to lay down the Standards and guidelines in relation to

articles of food

 Laying down mechanisms and guidelines for accreditation of certification bodies

 Laying down procedure and guidelines for accreditation of laboratories and

notification of the accredited laboratories.

 Collect and collate data regarding food consumption, incidence and prevalence
of biological risk, contaminants in food, residues of various contaminants in
foods products, etc.

BIS (Bureau of Indian standard)

BIS through its core activities of standardization and conformity assessment,

has been benefiting the economy by providing

 safe and reliable and quality goods

 minimizing health hazards to consumers

 protecting the environment

 promoting exports and imports substitute

 controlling proliferation of varieties etc.

The standards and certification scheme of BIS apart from benefitting the
consumers and industry also support various public policies especially in areas
of

• product safety • environment

protection

• consumer protection • building and

construction, etc.

• food safety

20
2.7 Government Initiatives

1. The Government of India has approved 100 per cent Foreign Direct
Investment (FDI) in the cash and carry segment and in single-brand retail along
with 51 per cent FDI in multi-brand retail.

2. The Government of India has drafted a new Consumer Protection Bill with
special emphasis on setting up an extensive mechanism to ensure simple,
speedy, accessible, affordable and timely delivery of justice to consumers.

3. The Goods and Services Tax (GST) is beneficial for the FMCG industry as
many of the FMCG products such as Soap, Toothpaste and Hair oil now come
under 18 per cent tax bracket against the previous 23-24 per cent rate.

4. Rates on food products and hygiene products have been reduced to 0-5 per
cent and 12-18 per cent respectively.

5. The GST is expected to transform logistics in the FMCG sector into a

modern and efficient model as all major corporations are remodel their
operations into larger logistics and warehousing.

21
 2.8 Contribution to Economy, Employment and Growth Rate

Contribution to economy:

 It has grown from INR 2,20,852.4 Crore in 2011 to INR 3,68,669.75 Crore in
2017-18 and is expected to reach INR 3,44,80,187 Crore in 2025 with a CAGR
(Compound annual growth rate) of 37.86%.

 The FMCG sector is contributing nearly 20% to the GDP.

 Rural segment is a large contributor with approximately 45% share in revenue.

The market size and GDP contribution of FMCG shows that there are millions
of jobs in FMCG sector.

Contribution to Employment:

 FMCG sector provides employment to around 3 million people and as the

industry is only expected to grow, more and more job seekers can advance their
career by having a job in FMCG companies.

 FMCG industry is dynamic and diverse which welcomes any ITI, Diploma,
Graduates or PG from any specialization background.

Contribution to Growth rate:

 In the last 10 years, the revenue in FMCG industry in India has been growing
at the rate of 21.4%.

 FMCG industry in India is expected to grow at the rate of 27.9% CAGR

(Compounded Annual Growth Rate) to sum to US$470 billion by 2025.

 Additionally, the rural FMCG market is projected to grow at a CAGR of 14.9%

to reach US$220 billion by 2020 and US$470 billion by 2025.

22
2.9 Global issues affecting the sector

The FMCG sector has been resilient in the face of the COVID-19 pandemic,
but it is not immune to the global issues that are affecting all businesses today.
Some of the key global issues affecting the FMCG sector after the pandemic
include:

Inflation: Inflation is at a 40-year high in many countries, and this is putting

pressure on FMCG companies and consumers alike. FMCG companies are
facing higher input costs, such as raw materials and labour, while consumers
are seeing their disposable incomes shrink.

Supply chain disruptions: The COVID-19 pandemic has caused widespread

disruptions to supply chains around the world. These disruptions are making it
difficult for FMCG companies to source the raw materials they need and to get
their products to market.

Geopolitical uncertainty: The war in Ukraine and other geopolitical tensions

have created uncertainty and volatility in the global economy. This is making it
difficult for FMCG companies to plan for the future and to invest in new
markets.

Climate change: Climate change is a major threat to the FMCG sector. FMCG
companies are facing more extreme weather events, such as droughts and
floods. These events can disrupt crop production and make it more difficult to
source raw materials.

In addition to these global issues, the FMCG sector is also facing some specific
challenges, such as:

Changing consumer preferences: Consumer preferences are changing

rapidly, and FMCG companies need to keep up with these changes in order to
remain competitive. For example, consumers are increasingly demanding
23
healthy and sustainable products.

24
Rise of e-commerce: E-commerce is growing rapidly in the FMCG sector.
This is providing consumers with more convenience and choice, and is also
putting pressure on traditional brick-and-mortar retailers.

Increased competition: The FMCG sector is highly competitive, with both

established and new players vying for market share. This is making it difficult
for FMCG companies to differentiate themselves and to maintain their
profitability.

Despite the challenges, the FMCG sector is expected to continue to grow in the
coming years. This growth will be driven by a number of factors, including
population growth, rising disposable incomes, and increasing urbanization.

FMCG companies will need to adapt to the changing landscape in order to

remain competitive. This will involve developing new products, expanding into
new markets, and investing in new technologies.

25
2.10 Key technological advancements in the sector
Technology has been a major disruptor in the consumer goods sector with more
and more organizations looking to leverage the benefits of digitization to boost
functioning across departments be it sales, marketing, retail, supply chain
management or even HR

Maintaining of digital sales records and a digital account of inventory helps

eliminate human errors, hastens the management while also allowing
organizations access to quick data pertaining to demand and supply.
Automation of services is also being increasingly used to improve customer
experience.

Big Data:

Digitization gives organizations easy and quick access to valuable user data
daily. This data is a minefield of information that when analysed systematically
can help companies understand patterns of consumption and consumer
behaviour. This in turn paves way for proactive decision making and
customizing of products and services to better meet the needs of buyers. The
availability of big data makes the process highly precise and faster. The quicker
you can draw inferences from the data and initiate proactive measures in
response differentiates you from your competition.

E retail:

According to market research firm Nielsen, E-commerce's contribution to the

total FMCG sales is expected to be 11 per cent by 2030. However,
organizations that ignore this trend will do so at their own peril. More and more
organizations in the FMCG sector are today working to have aggressive online
presence, not only on major e commerce sites but also have their dedicated
selling digital platforms. This trend is expected to further gain pace over the
coming decade.

26
2.11 Future and prospects post COVID-19
E-commerce demand will dominate the market
Most FMCG companies forged swift tie-ups with delivery companies to ensure
that their products reach the customers order demand to increase since the g
online. Companies expect this lockdown prompted people to get used to online
ordering and the convenience of home-delivered groceries.

Technological advancements will take place

Apart from e-commerce many FMCG companies have begun the walk towards
automation in their supply chain in order to cut the cost and to have human
contact-less chain. Certain apps are developed to observe the process.

Rural consumption-driven growth

Rural consumption has been a laggard during the quarters preceding the
pandemic. According to a World Bank report, the nationwide lockdown
impacted 40 million internal migrants. Now, such a large migration from urban
to rural areas may well tilt the growth in consumption in favour of Bharat.

Renewed focus on cost control

With topline growth under constraint during lockdown, companies are likely to
be keener on enhancing profitability. Cost control is a major tool for the
Tighter credit terms, judicious advertising and companies to improve the
margins. g effective use of digital marketing will help companies rein in costs.
For instance, HUL's investor presentation for the March quarter listed laser
focus on receivables, dynamic inventory management, unlocking cash from
surplus assets, optimizing capex and restructuring spends as measures towards
controlling costs.

27
 CHAPTER 3
COMPANY ANALYSIS

28
 3. Company Analysis
3.1 Brief of Company

Amul is an Indian dairy cooperative society managed by a cooperative body,

the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). Amul
belongs to the dairy section in the FMCG sector. It was formed in 1946. RS
Sodhi is the CEO of Amul from 2010 while Ramsinh Parmar is the present
Chairman of the Amul. He was elected as the Chairman of Gujarat Cooperative
Milk Marketing Federation Limited (GCMMF), the marketing body of the
'Amul' brand of milk and other dairy products. The Headquarters Office of
Amul India is in the Anand district in the state of Gujarat, India.

There are 13 plants in the state of Gujarat while many other plants are also
there in the states and Union Territory. Jharkhand, Jammu & Kashmir, Assam,
Madhya Pradesh, Chhattisgarh have one plant each while Delhi/NCR and
Maharashtra have 4 plants, Rajasthan have 3 plants and Uttar Pradesh have 2
plants.

Amul, which stands for Anand Milk Union Limited, is a form of cooperative
dairy company and registered under a Cooperative Society Act. As a
cooperative company, it is not possible for Amul to get listed in any stock
exchange like BSE and NSE.

3.1.1 Objectives and Business Philosophy of GCMMF

The main stakeholder of GCMMF is the farmer member for whose welfare
GCMMF exists. GCMMF states that its main objective is the carrying out of
activities for the economic development of agriculturists by efficiently
organizing marketing of milk and dairy produce, veterinary medicines,
vaccines

29
and other animal health products, agricultural produce in raw and/or processed
form and other allied produce.
GCMMF aims to market the dairy and agricultural products of co-operatives
through:
• Common branding • Centralized purchases
• Centralized marketing • Efficient pooling of milk
• Centralized quality control

Go4MF has declared that its business philosophy is as follows:

• To serve the interests of milk producers and
• To provide quality products that offer the best value to consumers for money
spent

3.1.2 Achievements
Amul: Asia's largest dairy co-operative was created way back in 1946 to make
the milk producer self-reliant and conduct milk- business with pride. Amul has
always been the trend setter in bringing and adapting the most modern
technology to doorsteps to rural farmers.

Amul created history in following areas:

a) First self-motivated and autonomous farmers" organization comprising of
more than 5000000 marginal milk producers of Kaira District.

b) Created Dairy co-operatives at village level functioning with milk collection

centres owned by them.

c) Computerized milk collection system with electronic scale and computerized

accounting system.

d) The first and only organization in world to get ISO 9000 standard for its
farmer's co-operatives.

e) First to produce milk from powder from surplus milk.

30
Amul is the live example of how co-operation amongst the poor marginal
farmers can provide means for the socio-economic development of the
underprivileged marginal farmers.

3.1.3 Awards
Amul a co-operative society and its co-operation has led many different awards
in its favour.
Magsaysay award for community leadership presented in Manila, Philippines
to Shri Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien.

1964: "Padmabhusan" award given to Shri T.K. Patel.

1965: "Padmashri" awarded was given to V. Kurien, general manager, by the

President of India.

1987: "Best Productivity" awarded by National Productivity Council for the

year 1985-86 awarded to Amul dairy.

1988: "Best Productivity" awarded for the second successive year 1986-87 by
the President of India, Mr. R. Venkataraman to Kaira Union.

1993: "ICA" Memento towards genuine and self-sustaining cooperative

worldwide ICA regional office for Asia and pacific, New Delhi, 1996.

1999: GB Birla award Moreover the Amul union has achieved the prestigious
ISO 9001-2000 and HACCP Certificate and effects are got to obtain ISO
14000.

31
 3.2 Vision, Mission and Values
Vision
Amul’s vision is to provide more and more satisfaction to the farmers,
employees and distributers.

Mission
"We at GCMMF (Gujarat Co-operative milk Marketing Federation) endeavor
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 provide best
value for money".

"We the motivated and dedicated workforce at Amul are committed to produce
wholesome and safe foods of excellent quality to remain market leader through
development of quality management system, state of art technology, innovation
and eco-friendly operations to achieve gratification of customers and milk
producers".

Values
Values like Integrity, Excellence and Efficiency are of prime importance in
Amul. For instance, integrity was something that Dr Kurien used to emphasize
upon. As a result, everybody at Amul is a person of integrity. The same applies
to other values like 'excellence' or 'efficiency'.

32
 3.3 Key Financial Parameters

The Gujarat Cooperative Milk Marketing Federation Ltd, which markets Amul
milk and dairy products, reported a 17% increase in turnover to Rs.38,550
crore in the year ended March 31. The Amul group's turnover exceeded
Rs.50,000 crore, which is also 17% higher than last year.

Amul Federation has achieved a Compound Annual Growth Rate (CAGR) of

more than 17% since last 10 years because of higher milk procurement,
continuous expansion in terms of adding new markets, launching of new
products and adding new milk processing capacities across India.

Below is the table of the sales turnover for the last 10 years:

Sales Rs US$ (in

Turnover (million) million)
2010-11 97742 2172
2011-12 116680 2500
2012-13 137350 2540
2013-14 181434 3024
2014-15 207330 3410
2015-16 229720 3500
2016-17 270850 4100
2017-18 292250 4500
2018-19 331500 4800
2019-20 385500 5100
2020-21 392480 5300
2021-22 464810 6200

33
 3.4 Products

Amul India provides a wide range of products apart from milk and dairy
products. Amul started its base from supplying milk, and now it has diversified
its range from milk to other dairy products and breads, beverages and
chocolates. Amul is well known for its products like butter. ghee. etc. It
consists of wide ranges of products which are all outlined below:

• Amul Bread Spreads Range:

Amul Butter, Amul Lite, Amul Choco Buttery Spread, Delicious Fat Spread,
Amul Unsalted Butter, Amul Garlic Butter, Amul Safed Makkhan.

• Amul Beverage Range / Milk Drinks:

Amul Memory Milk, Amul Double Chocolate Milkshake, Amul Dark
Chocolate Milk. Amul Banana Milkshake, Amul Tru, Amul Kool Café, Amul
Kool Flavoured Milk, Amul Kadhai Doodh, Amul Irish Drink Mocktail, Amul
Haldi Doodh, Amul Vanilla Milkshake, Amul Pina Colada Mocktail, Amul
Kool Koko, Amul Stamina, Amul Masti Buttermilk, Amul Lassi, Amul Prolife
Lassee, Amul Prolife Buttermilk, Amul Kool Shakers, Amul Smoothies.

• Amul Milk Range:

Amul Deshi A2 Cow Milk, Amul Cow Milk, Amul Gold, Amul Taaza, Amul
Slim Trim Milk, Amul Chai Maza, Amul Shakthi, Amul Diamond, Amul T-
Special Milk, Amul Buffalo Milk.

• Amul Powder Milk Range:

Amul T-special, Amul Spray, Amulya, Sagar skimmed Milk Powder, Sagar
Tea Coffee Whitener.

• Amul Cheese Range:

Amul Processed Cheese, Amul Emmental cheese, Amul Gouda cheese, Amul
Diced Mozzarella Amul cheese spread, Pizza Mozzarella cheese, Amul Diced
Blend cheese, Amul Diced Cheddar cheese, Amul Processed Pizza cheese.

• Amul Mithai / Desserts Range:

Amul Avsar Ladoo, Amul Rabri, Amul Kahu Katri, Amul Shrikhand, Amul
Gulab Jamun, Amul Basundi Amul Mithai Mate.

34
• Amul Dahi Range:

Amul Masti Dahi, Amul Mishti Doi, Amul Meetha Dahi, Amul Dahi, Amul
Low-Fat Dahi, Amul Flaavyo Frozen Yurt. Premium Yoghurt.

• Amul Ghee:

Amul Ghee, Sagar Ghee, Amul (Yellow) Cow Ghee, Amul Brown Pure Ghee.

• Amul Paneer:

Malai Paneer, Fresh Paneer, Malai Paneer Sterilized.

• Amul Chocolate Amul Chocolates, Amul Wafer Chocolates, Amul
Chocozoo, Amul Filled Bars, Amul Syrups, Amul Assorted/Gift packs, Amul
Institutional Chocolates.

• Amul Ice-creams:

Simply Delicious
Range, Nature's Treat, Sundae Range, Cassatta.

Apart from the above mentioned products, there are other products like Amul
Puffles, Amul PRO, Roti Softner, Amul Camel Milk, Amul Cream, Amul Sour
Cream, Amul Lactose Free Milk, Cattle feed, etc.

New products which Amul have launched are Amul Bhaj i Pay, Amul Bun,
Butter and Chocolate Cookies, Amul Fruity Bread, Amul Pizza Base, etc.
Recently during pandemic situation, Amul has launched 'Ginger' and `Tulsi'
flavoured milk. Amul also has launched `Amul Panchamrut'.

35
 3.5 Main Competitors and Market Share
3.5.1 Main Competitors
As Amul has such a diversified range of products from milk products to
chocolates and ice-creams. Following are the main competitors of Amul:

1) Mother Dairy 4) Vadilal 7) Kwality Walls

2) Nestle 5) Dinshaws 8) Arun Icecreams
3) Britannia 6) Havmor 9) Baskin Robbins

3.5.2 Market Share of Amul in different

Categories Cheese Category:
Amul is the market leader in cheese category with market share of 86% in 2019
which has been increasing from 71% and 64% from year 2018 and 2017
respectively.

Butter Category:
Same as of the cheese category, Amul is leader with around 85% of market
share in 2019.

Ice-cream Category:
Even though having less market share as compared to the butter and cheese
category, Amul is still on number one in having the market share in ice-cream
insustry in India. Amul has around 40% market share in 2019 which has risen
from 17.8% market share in 2017.

Milk Category:
Despite having enormous amount of competition in the category of mik, Amul
still has market share of 60%.

36
 3.6 Key Challenges
In the new emerging environment, several challenges have become apparent
and Amul network needs to evolve proactive mechanisms to counter these
threats.

1. Competitors are cutting into milk supply by offering marginally higher

procurement prices thereby challenging the practice of provision of services for
long-term growth in lieu of higher prices in the short-term.

2. For a section of its membership, dairy activity is a stepping-stone for upward

mobility in the society. Typically, such members move on to other occupations
after raising their economic position through milk production. As a result,
Amul is unable to realize the full benefits of its long-term strategy, and finds
new members (mostly marginal farmers) to replace those who have higher
potential and capacity.

3. Diversification has resulted in expansion of the network with disparate

elements, each motivated by their own objectives. This in turn has led to a lack
of focus within the network and dilution in the commonality of purpose. These
developments are likely to have serious implications for coordination and
control in the network.

4. The new products of Amul don't have such a great demand or sale in the
market as the other products of Amul like Amul Butter, Amul Cheese or Amul
Milk, etc.

37
 3.7 Functional Perspectives

3.7.1 Pricing Strategies

1 Pricing Strategies: Amul's objective of providing a value proposition to a
large customer base led naturally to a choice of cost leadership position. Given
the low purchasing power of the Indian consumer and the marginal
discretionary spending power, the only viable option for AMUL was to price
its products as low as possible. This in turn led to a focus on costs and had
significant implications for managing its operations and supply chain practices.

Amul has a strategy of low cost pricing. Some may call it penetrative pricing.
But penetrative pricing strategy is used when the market has a high level of
competition and a player wants to establish itself in the market by giving low
prices. However, in the case of Amul, when Amul started, there were no
national players and the dairy market was unorganized. During the introduction
stage itself, Amul had a vision to provide their products to end customers at the
best affordable rates. And the same vision is in place even today.
Today also, you will find that Amul butter, milk and cheese are available at
affordable prices keeping in mind the end customers.

3.7.2 Channel Management:

Amul has a massive distribution network because its ice creams, milk, butter
and cheese is found practically everywhere. As it is a FMCG product, Amul
follows the methodology of breaking the bulk. The initial factory output is in
bulk. Later on this bulk becomes smaller and smaller and finally one individual
slab of butter or scoop of ice cream is sold at the retail place.

There are two different channels through which Distribution happens in Amul.
One is the procurement channel which is responsible for collection of Milk

38
through dairy co-operatives. The other is the distribution channel which is
responsible for distributing the finalized product to the end customers.
Procurement Channel (Upstream):
On an average around thousand farmers come to sell milk at their local co-
operative milk collection centre. Each farmer is given a plastic card for
identification. At the milk collection counter, the farmer drops the card into a
box and the identification number is transmitted to a personal computer
attached to the machine. The milk is then weighed and the fat content of the
milk is measured by an electronic fat testing machine. Both these details are
recorded in the PC. The computer then calculates the amount due to farmer on
the basis of the fat content. The value of the milk is then printed out on a slip
and handed over to farmer who collects the payment at adjacent window.

Cold Storage Network:

CMMF coordinated with various unions to get a regular supply of milk and
dairy products. The processed milk and dairy products were procured from
district dairy unions and distributed through third party distributors. To ensure
quality and timely deliveries, GCMMF and the district unions had several
mechanisms in place. The unions monitored the supplies of milk and the
distribution of finished products.

Distribution Channel (Downstream):

GCMMF coordinated with various unions to get a regular supply of milk and
dairy products. The processed milk and dairy products were procured from
district dairy unions and distributed through third party distributors. To ensure
quality and timely deliveries, GCMMF and the district unions had several
mechanisms in place. The unions monitored the supplies of milk and the
distribution of finished products.
In the distribution channel, there are carrying and forwarding agents,
distributors, dealers and retailers involved. There are also Amul shoppe's which
sell an products in the Amul product portfolio. The distribution is as follows:

39
Amul >> Carrying and forwarding agent >> Distributor >> Dealer / Retailer
/ Amul shoppe >> Customer
Direct Retailing:
Amul has recently entered into direct retailing through "Amul Utterly
Delicious" parlors created in major cities. Amul has plans to create a large
chain of such outlets to be managed by franchisees throughout the country.
More than 2000 parlor with a turnover of Rs. 200 crores.
Thus there is a lot of transportation involved for all of Amur s products.
However, the distribution channel of Amul ensures that the products reach
every nook and corner of India.

Supply Chain Management:

40
3.7.3 Ad Campaigns

Be it Bollywood, Olympics, Politics or cricket, it wouldn't be wrong to say one

can stay up to date with current affairs with the Amul girl. The longest-running
ad campaign in India was conceived by noted ad man Sylvester daCunha in
1966 and is now run by his son, Rahul daCunha. But Amul has not just stood
the test of time, but it has aged rather deliciously. Despite the few contentious
ads, the Golden Girl continues to rule the hearts of India.

Amul is responsible for one of the most unique and longest running outdoor
campaign as well as one of the most known outdoor advertising characters
"The Amul Girl". Mr. Eustace Fernandez is the creative brain behind the
sweet girl. But we should know by now that the Amul girl is hardly sweet or
cute. She is known to be the naughtiest advertising girl ever. Amul hoardings
mainly feature II the current news and are used to take a tongue in cheek
viewpoint at current happenings. However, each advertisement hits the nail on
the head.

41
 3.8 Swot Analysis

Strengths:
• Exceptional growth • Best quality management
• Large Production Capacity • High market share in ice-cream
• Huge Customer Base • Strong distribution network
• Market Leader • Rural Presence
• Excellent Brand Recall and Equity

weaknesses:
• Product Line Expansion
• Operational Costs
• Lawsuits
• No ads for chocolate

Opportunities:
• Per Capita Milk Consumption
• International Markets
• Chocolate Production

Threats:
• Increasing Competition
• Negative Media Coverage

42
 3.9 Corporate Social Responsibility

The term "Corporate Social Responsibility to assess lily (CSR)" can be referred
as corporate and take responsibility for the company's effects on the
environment and impact on social welfare. The term generally applies to
companies efforts that go beyond what may be required by re environmental
protection groups.

3.9.1 Necessity of CSR

• Builds good relationship with local community eases business activities.

• This engagement with stakeholders creates business activities and loyalty.

• Gets the company, positive press coverage.

• Business innovation: Development of new technologies, materials or

processes that reduce water, energy usage or harmful materials.

• Builds goodwill of the company.

• Various CSR activities conducted with the help of employees helps in

building their morale and creates a positive environment.

• To give back to the society.

3.9.2 CSR Initiatives of Amul

Tree Plantation:
Amul took an oath on 15th August, 2007, after the flag hoisting ceremony, to
plant a sapling and ensure that it grew into a tree. Whole dairy cooperative,
farmers of Gujarat under GCMMF have so far planted 312 lakh saplings.
"Amul Green" movement wins the International Dairy Federation's Award for
the Best Environment Initiative in the "Sustainability Category" during the 4th
Global Dairy Conference held at Salzburg Congress Centre, Austria on 28th
43
April, 2010.

44
2. Tribhuvandas Foundation
Aim: To provide basic healthcare facilities Mode to villagers
Mode of Action:
• Foundation is run by villagers themselves.
• Foundation has dedicated team of medical officers and necessary staff
• Continuous training to village health workers.
• Large scale implementation of the concept of 'Safe Delivery Kit' for pregnant
woman
• Organized camps for detection and improvement of vision of the rural people.
and necessary staff.

3. Swarna Jayanthi Gram Swarozgar Yojana:

Aim: To bring people in BPL to APL by providing them necessary resources to
become self-employed.
Mode of Action:
• Distributed MTLCH animals to 8755 beneficiaries.
• Trained 12,647 men and women in dairy husbandry.
• 56 Bore wells were dug.
• A mobile diagnostic laboratory has been put into operation.

4. Blood Donation
Aim:
To inspire, encourage and initiate humanitarian services to minimize, alleviate
and prevent human suffering at all times to contribute for "Humanity to Peace".
Mode of Action:
Amul initiated blood donation campaign in 1987, in association with Indian
Red Cross Society.
Blood donation camps are organized regularly in rural areas through Village
Dairy Co-operative Societies.

45
 3.10 Recent Mergers and Acquisitions of Amul'

Gujarat Cooperative Milk Marketing Federation (GCMMF)’s flagship Amul

Dairy is set to acquire Heritage Foods Ltd.’s dairy plant in Punjab for Rs 21.20
crore. On its part, GCMMF is evaluating the acquisition proposal, with its
board likely to take a call soon, even as it looks to expand operations in Punjab
to cater North India for liquid milk, curd and buttermilk, among other dairy
products.
The company has entered into a tripartite agreement with a local manufacturer
to produce dairy products in Waterloo village located in upstate New York. It
may be noted that this will be Amul's first dairy plant outside India. Amul is
seriously considering the option of acquiring a dairy plant in the US mid-
western state, Wisconsin. Wisconsin accounts for almost 27 percent of total
cheese production and is the top producer of cheese in the US.

46
 CHAPTER 4
REVIEW OF LITERATURE

47
 4. Review of Literature

The research paper entitled “Study of retailer’s satisfaction towards distribution

channel of AMUL products in Jammu” has been conducted in Jammu in which
the retailers and distributors were selected at different places in Jammu city
through convenience sampling.
The information from various retail shops and distributors were collected with
the help of well-structured pre-tested schedule and the data was analysed by
using descriptive statistics, pie charts, per centages. In this study two
distribution channels of AMUL products in Jammu were identified viz. (I)
Company → C/F
→ Distributer → Retailer → Consumer and (II) Company → C/F → AMUL
retail outlet → Consumer
During lockdown and consequent pandemic, many organizations reduced their
production, and few shut their operations. Some organizations continued their
regular production. Apart from Pharma, very few organizations raised their
production and raised their sales. Amul, a dairy products company is the one
which in addition to raising production and sales, established an emotional and
social connection with their clients. The advantage of essential commodity
category and milk production aided its success during the pandemic. In this
paper, the marketing strategy of Amul is review as backbone of their success
being the advertising strategy.
Amul is an Indian dairy state government cooperative society, based at Anand
in Gujarat. Formed in 1946, it is a cooperative brand managed by the Gujarat
Cooperative Milk Marketing Federation Ltd, which today is jointly controlled
by 36 lakh milk producers in Gujarat, and the apex body of 13 district milk
unions, spread across 13,000 villages of Gujarat. Amul spurred India's White
Revolution, which made the country the world's largest producer of milk and
milk products. word AMUL stands for Anand Milk Union Limited.

48
 Amul Dairy Taps Fast-Growing Poultry Sector; To Roll Out Fish Feed, Pet Food
 Prashant Rupera

Times Of India / India Times (12 july 2023)

VADODARA: The milk business is no longer about just cows and buffaloes. The Kaira
District Co-operative Milk Producers Union Limited (KDCMPUL), popularly known as
Amul Dairy, has now started tapping the rapidly expanding poultry sector. Amul Dairy
which has one of the largest cattle feed manufacturing unit has now launched Amul
poultry feed for farmers. And that’s not all. The milk union is set to roll out fish feed as
well as a variety of pet foods. Amul Dairy has the capacity to manufacture 3,200 tonnes
of cattle feed per day.
Interestingly, the poultry feed developed by Amul Dairy is 100% vegetarian, unlike the
conventional poultry feed which is a mix of both vegetarian and non-
vegetarian ingredients. According to dairy officials, vegetarian raw materials reduce the
chances of poultry catching infections which often leads to higher mortality.
“In the last 10 years, with 7.5% growth, poultry farming has emerged as one of the fastest
growing segments in India which is now the third largest producer of eggs globally,” said
Amul Dairy’s managing director Amit Vyas. Our target is to sell 5,000 metric tonnes of
poultry feed in 2023-24,” said Vyas, adding that in the first month of production, it has
already sold 40 tonnes of poultry feed in Maharashtra.

Blending The incongruity – resolution model and the conceptual integration theory;
the case of blends in pictorial advertising.

 Marta Dynel ( University Of Lodz)

International Review of Pragmatics (April 2011)

The primary objective of this article is to discuss humorous pictorial advertisements

contingent on non-verbal (visual) and verbal components, with the heuristic apparatus
provided by Fauconnier and Turner's conceptual integration theory. A postulate is
advanced that humour-orientated blending can be viewed in the light of the incongruity-
resolution model (Suls, 1972, 1983), the prevailing framework of humour interpretation
in linguistics and psychology. Nevertheless, a proviso is made that special emphasis must
be placed on the mechanism of bisociation, i.e. oscillation between incompatible frames
of reference (Koestler, 1964), after the resolution stage, which is in accordance with the
conceptual integration account. Additionally, a preliminary attempt is made at
differentiating humorous blends from non-humorous ones. Finally, a discussion of
examples aims to testify to the widespread and multifarious applicability of the
incongruity-resolution blending approach in the analysis of humorous advertisements. It
is shown how humorously incongruous blends and advertising metablends interweave.

49
Context and Humor : Understanding Amul Advertisements of India
 Radhika Mamidi
1st International Symposium, Lodz, Poland (2010)

Contextual knowledge is the most important element in understanding language. By

contextual knowledge we mean both general knowledge and discourse knowledge i.e.
knowledge of the situational context, background knowledge and the co-textual context
[10]. In this paper, we will discuss the importance of contextual knowledge in
understanding the humor present in the cartoon based Amul advertisements in India.In
the process, we will analyze these advertisements and also see if humor is an effective
tool for advertising and thereby, for marketing.These bilingual advertisements also expect
the audience to have the appropriate linguistic knowledge which includes knowledge of
English and Hindi vocabulary, morphology and syntax. Different techniques like
punning, portmanteaus and parodies of popular proverbs, expressions, acronyms, famous
dialogues, songs etc are employed to convey the message in a humorous way. The
present study will concentrate on these linguistic cues and the required context
for understanding wit and humor.

The Use Of Code-Mixing In Indian Billboard Advertising

 Kathpalia Sujata S
 Kenneth Keng Wee Ong
Word Englishes (12 Aug 2015)

One major area of interest in the study of contemporary linguistic landscapes worldwide
is the interaction of English with local languages in public spaces. One such example of
this is the use of ‘Hinglish’ in Indian media, particularly in Indian advertising. Although
some researchers have previously investigated Hindi-English code-switching in
Bollywood films as well as print advertisements, relatively little research has been done
on the interplay of these two languages on billboards. This current study aims to analyze
this aspect of Hindi- English code-mixing involving literary devices in the ‘Amul butter’
advertising campaign which uses billboards to advertise its product throughout India.

50
 India’s Amul: Keeping Up With The Times

 Rohit Deshpande
 Tarun Khanna
 Namrata Arora
 Tanya Bijlani
Harvard Business School ( 12 July)

Amul is an Indian dairy cooperative founded in 1947—eight months before India's

independence from British rule—and owned by over three million farmers in the state of
Gujarat. It is India's largest food product marketing organization, selling 46 products,
including pouched milk, cheese, butter, ice cream, and infant food through a million
retailers across the country, and is the market leader in almost all the categories in which
it operates. Amul is well known among Indian consumers for offering high-quality
products at reasonable prices, and runs a highly popular advertising campaign that spoofs
current events. It offers its farmers 80% of the consumer's dollar for milk, compared with
35%–40% typical in some Western markets. Amul's cooperative dairy model has been
replicated across several Indian states, thereby helping increase the incomes of 80–100
million farmer families across the country. However, despite its success, Amul is
beginning to come under increasing pressure. Multinationals like Nestlé and Unilever are
increasing their presence in India and competing fiercely with Amul in value-added
products like yogurt. The entry of large multi-brand retailers like Walmart and Carrefour
in the Indian market threatens to squeeze Amul's margins and undermine its low-cost
distribution network. India's large young rural population is shying away from dairy
farming in favor of urban jobs, leaving questions about future procurement. Finally,
Amul's farmers form a large vote bank in the state of Gujarat, and its cooperative
structure risks being compromised by vested political interests. Should Amul continue
with the business model that has served it so well for decades, or should it change its
strategy in order to keep up with India's changing social, political, and economic
landscape?

51
CHAPTER 5
OBJECTIVES

52
 5. Objectives
• To understand the problem faced by Retail holder pertaining to storage and
selling of Amul Products
• Availability of Amul products in Retail shops
• To analyse the issue of TAT regarding Amul products

53
 CHAPTER 6
RESEARCH METHODOLOGY

54
 6. Research Methodology
Marketing Research Methods:
Methodologically, marketing research uses the following types of research
designs:
(I) Based on questioning:
Qualitative Marketing Research- generally used for exploratory purposes-
small number of respondents – not generalizable to the whole population –
statistical significance and confidence not calculated – examples including
focus groups, in-depth interviews, and projective techniques.
(II) Based on observations:
Ethnographic studies: It is by nature qualitative, the researcher observes social
phenomena in their natural setting – observations can occur cross-sectionally
(observations made at one time) or longitudinally (observations occur over
several time-periods) – examples include product-use analysis and computer
cookie traces.

A. Secondary data:
The sources from which secondary data was collected:
• Press releases of the company.
• Newsletters and In-house journals.
• Brochures and detailed descriptive leaflets.
• Magazines
• Websites such as www.amul.com and www.google.com. These were the
sources from which secondary data has been gathered. Most of the information
presented in this report was extracted from the above data sources.
B. Primary data:
Collection of primary data was conducted by visiting the people personally for
the population for the preparation of the report.
i) Research approach:

55
It means the way by which the information was collected. Visiting the various
places of Pune, getting the questionnaire filled by different individuals.
Beside this, frequent visit to the retailers was of great help to conduct the
analysis and
research work.

Contact methods:
Instrument or Data collected Forms: It is the method by which data is gathered
It could be done through various instruments like questionnaires, observations,
getting information from the shopkeepers was sufficient enough to conduct the
study.
Collection of information:
The primary information was collected by face-to-face and direct interviews
with the retailers and the customers. They provide the relevant information
regarding the profile of the company as compared to the other company in the
Indian market. The secondary sources of information were various web sites of
the companies, newspapers & magazines.

Analysing the information:

The data collected was carefully analysed. The research and analysis of the
information has been done on the basis of various sales and marketing
strategies adopted by the company during its tenure.
Reporting and conclusions and recommendations:
This is the most vital part of the work undertaken. After collection and analysis
of data, it was recorded in the form as prescribed.

Research Method – Exploratory & Conclusive Research

Exploratory research provides insights into and comprehension of an issue or
situation. It should draw definite conclusions only with extreme caution.
Conclusive research draws conclusions: the results of the study can be
generalized to the whole population. Exploratory research information is

56
conducted to explore a problem to get some basic idea about the solution at the
preliminary stages of research. It may serve as the input to conclusive research.
Exploratory research information is collected by focus group interviews,
reviewing literature or books, discussing with experts, etc. This is unstructured
and qualitative in nature. If a secondary source of data is unable to serve the
purpose, a convenience sample of small size can be can be collected.
Conclusive research is conducted to draw some conclusion about the problem.
It is essentially, structured and quantitative research, and the output of this
research is the input to management information systems (MIS). Exploratory
research is also conducted to simplify the findings of the conclusive or
descriptive research, if the findings are very hard to interpret for the marketing
managers.

Sampling:
Sampling is the process of selecting units (e.g., people, organizations) from a
population of interest so that by studying the sample we may fairly generalize
our results back to the population from which they were chosen. Researchers
rarely survey the entire population because the cost of a census is too high. The
three main advantages of sampling are that the cost is lower, data collection is
faster, and since the data set is smaller it is possible to ensure homogeneity and
to improve the accuracy and quality of the data. The methodology used to
sample from a larger population will depend on the type of analysis being
performed, but will include simple random sampling, systematic sampling and
observational sampling.

Random Sampling:
A random sample is a subset of individuals that are randomly selected from a
population. Because researchers usually cannot obtain data from every single
person in a group, a smaller portion is randomly selected to represent the entire
group as a whole. The goal is to obtain a sample that is representative of the
larger population. For example, imagine that a market research company is
interested in learning more about what type of dish soap people use. Instead of
57
polling every single person, they will select a random sample of individuals
and question them about the type of soap they use. By using a randomized
sample, they get a clearer idea of what likely exists in the population at large.

Types of random sample:

Simple random sample is selected so that all samples of the same size have an
equal chance of being selected from the entire population. A self-weighting
sample, also known as an EPSEM (Equal Probability of Selection Method)
sample, is one in which every individual, or object, in the population of interest
has an equal opportunity of being selected for the sample. Simple random
samples are self-weighting. Stratified sampling involves selecting independent
samples from a number of Sub populations, group or strata within the
population. Great gains in efficiency are sometimes possible from judicious
stratification Cluster sampling involves selecting the sample units in groups.
For example, a sample of telephone calls may be collected at by first taking a
collection of telephone lines and collecting all the calls on the sampled lines.
The analysis of cluster samples must take into account the intra-cluster
correlation which reflects the fact that units in the same cluster are likely to be
more similar than two units picked at random.

Research Design:
This research design is exploratory as researcher need to find out the scope of
Amul Products from retailers in Pune. The method of data collection is
qualitative and descriptive in nature i.e., survey and observation-based
research. The study is done in steps stated below:
1. Understanding the Amul Products.
2. Understanding the Amul distribution system.
3. Collection of data:
Primary Data - Through questionnaire from various Parlors, Restaurant,
Retailers in Pune region.
Secondary Data - Through internet, magazines and newspaper etc.

58
1. To analyse the data
2. Finally the conclusion and giving recommendation on the basis of research.

Sample Design:
The sample was drawn by using Random Sampling Techniques, as researcher
needs to fill questionnaire from Retailer. Apart from that, Random Sampling
Techniques are more economical than any other sampling technique. Target
population includes, Retailer, Restaurant, Parlors, etc.
Sample Size:
A sample size of 100 was taken out of 180 because they are Amul product
buyers. The samples were randomly selected from the population for the
research work.

Limitations of the study:

• Some outlets did not co-operate with us as they though; it is just wastage of
time
• Since all the products are not widely used by all the customers it is difficult to
draw realistic conclusions based on the survey
• There was no way to assess the reliability of the outlets and Parlors. Whatever
they said had to be assumed to be truth
• Interpretation of data may vary from individual depending on the individual
understanding the product features of the company

59
 CHAPTER 7
DATA ANALYSIS AND INTERPRETATION

60
 7. Data Analysis and Interpretation

Analysis of the data (from the questionnaire) obtained from the Amul
Retail Shops.
Q.1. Do you stock Amul dairy products?
a.) Yes b) No
Table 1. Stock Amul Dairy products

Interpretation of Graph 1:
As per the graph we can interpret that only 10% retailers are not maintaining
the stock of “Amul” milk, so majority market segment has been covered by this
company and for the remaining market share we can interpret that it has been
covered by “Mauli” & “Katraj” Milk products.

61
Q.2. If no, why?
a) Absence of packaging date b) Low margin
c) No Replacement for leakage d) Low distribution
Table 2:

Interpretation:

From the above mentioned graph we can conclude that the remaining 10%
retailers are not keeping the “Amul” milk products because their major
competitors in this Pune region. “Mauli” & “Katraj” is giving more margin to
their retailers. And another reason for not purchasing its products is not
providing replacement facility

62
Q.3 Which is the most preferable brand of packaged dairy products that
you stock?
a) Amul b) Katraj c) Nestle d) Gokul
Table 3:

Interpretation:

From the above mentioned graph we can interpreted that major sample
customers are Preferring the “Amul” milk products due to the best packaged in
comparison to their Competitors and that is the main reason of major market
segments.

63
Q.4. If yes, what product does you preferred to store?
a.) Amul butter b) Paneer c) Butter milk d) Dahi
e) Flavoured milk f) Cheese g) Amul Ghee h) other
Table 4:

Interpretation:
From the above-mentioned graph, we can interpret that customer mainly
preferred the “Amul Butter” and “Amul Cheese and Paneer” and it is only due
to increasing demand for the fast food in Indian market. However, customers
also prefer “Amul Milk” because it produces much different flavoured milk in
comparison to their main competitors.

64
Q.5. what is your expectation from Amul dairy products?
a) Margin b) Packaging c) Availability
Table 9

Interpretation:

As per this graph Retailers are expecting more margins on its products because
their competitors are providing more margins.

65
Q.6. Which problem did you faced from distributor side?

Interpretation:

The intensity of problems faced by the retailers from distributors are mainly
advertisement based and irregular visit of salesman to the shop apart from that
shortage of product availability problem has also been faced by the retailers.

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Q.7. What is consumers expectation from Amul products?

Interpretation:

From the above pie chart, we can interpret that the consumers expectation is
mainly towards Amul products availability which is 34%, for taste which is
28% and good quality which is the crucial part every consumer wants in the
product which is 20% and consumers expectation towards packaging is 18%
which is a fair number.

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 CHAPTER 8
FINDINGS AND CONCLUSION

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 8. Findings and Conclusion

• 90% Retailer’s have stock of Amul products.

• 50% Retailers are less interested to sale Amul products because of low
profitable margin and 25% no replacement policy while other brands providing
high margin as well as facilitate the retailers with timely replacement.
• It has been found that the brand preference for the retailers is depending
upon the margin provided by the company to them, high margin means high
demand from the retailer’s side.
• Also, a good scheme or offer, packaging and availability influence the
retailers to sale the product.
• Promotional activities are very beneficial to penetrate the market because it
creates awareness to the customers and the demand for the product increases.
• 73% retailer’s expectation from Amul is good margin, 10% retailers required
good packaging.
• The effects of cold calling and continues follow up is still a good approach.
• Different Pitching skills are required in different segments of market as well
as industry.
• How to position your brand different from your competitors.
• To tackle rude and rough situations with a solution.
• Conclusion is that less availability of Products
• No distributor is taken order from retailer’s
• There is delay in reached order to the retailer’s

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 CHAPTER 9
RECOMMENDATION

70
 9. Recommendation

• Give the credit purchase facility to their regular retailers.

• 250 ml milk pouch should make available to retailers for selling, because
lower income family has intention to buy small pouch milk.
• There is need to create a common platform for all the retailers so that their
complains should be solved.
• As quick as possible try to settle the various claims and problems of the
retailers.
• Provide good schemes and offer to the retailer. Some scrutiny should be
followed to check the scheme get being communicated properly by distributors
or sales
• Supply should be regular to all the outlets including those that lie in the 61%
6% 24% 9% % of respondent Amul Taaza Amul Slim n Trim Amul Gold
Amul A2 pocket roads and not just in the outlets which lie on the easily
accessible routes.
• It has been found that there is no awareness among the retailers regarding the
newly launched products of Amul such as A2 buffalo milk and its variants. So,
it is advisable to the company to conduct various awareness programs like
distributing of pamphlets outside the retail shops and more advertisement
through the media.
• Company should take care of retailers by solving their problems and should
call back or timely visit should be given to retail outlets by appointing separate
company representative
• Before offering any extra benefits or schemes to their retailers, Amul should
aware them in advance, so that the incentives can be reached in the right hands
at right time. Otherwise, distributors enjoy the benefits of retailers.
• For refrigerated and frozen food distribution, a world class cold chain would
help in providing quality assurance to the consumers around the region.
• Logistics and transportation services should be professionally managed to
avoid wastes

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