i

TO FIND OUT THE MARKET POTENTIAL OF AMUL SLIM

TRIM IN THANE

With Amul GCMMF

Summer Internship Project Report

Submitted in partial fulfilment of the requirement for the award of

POST GRADUATE DIPLOMA IN MANAGEMENT

(PGDM)

Submitted to

SIES COLLEGE OF MANAGEMENT STUDIES

Nerul, Navi Mumbai

Submitted by

Ankita Singh

Roll No - 03

PGDM – Marketing

2013-15

ii

Declaration

I,Ms Ankita Singh, studying in the second year of POST GRADUATE

DIPLOMA IN MANAGEMENT (PGDM) at SIES College of Management

Studies, Nerul, Navi Mumbai, hereby declare that I have completed the

Summer Internship Project titled “To study the market potential of Amul

Slim N Trim” as a part of the course requirements for POST GRADUATE

DIPLOMA IN MANAGEMENT (PGDM) Program.

I also declare that the work undertaken by me is original and has not been

copied from any sources. I further declare that the information presented in

this project is true and original knowledge and has not been submitted to

SIESCOMS or any other Institute for any other examination.

Signature of the Student Date:

Ankita Singh

Roll No.: 03

iii

iv

Certificate by Faculty Project Guide

This is to certify that Ms Ankita Singh, studying in the second year of POST

GRADUATE DIPLOMA IN MANAGEMENT (PGDM) at SIES College of

Management Studies, Nerul, Navi Mumbai, has completed the Summer

Internship Project titled “To find out the market potential of Amul Slim N

Trim in Thane” as a part of the course requirements for POST GRADUATE

DIPLOMA IN MANAGEMENT (PGDM) Program.

Signature of the Faculty Guide

Name:

Date:

v

Acknowledgement

A Project Report is never successfully completed without the guidance from

appropriate people. So, now it is the right time to express my sincere gratitude

towards all those, who have helped me to complete this project.

I would like to express my thanks to our Mentor Mr.Navin Putta(Territory

Sales In-charge, AMUL) for giving me this opportunity. I take this

opportunity to express my thanks to my guide Professor Deepa Donde for her

exemplary guidance, monitoring and constant encouragement throughout the

course of this project.

And I am greatly thankful to all the advisers who helped me knowingly or

unknowingly for getting the information and taking interest in this report. I am

also thankful to the entire faculty and staff of SIESCOMS without which this

project would not be a successful one.

Signature

ANKITA SINGH

Date:

vi

Executive Summary

Introduction

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

largest food product marketing organization with annual turnover (2012-13)

US$ 2.54 billion.

It is the Apex organization of the Dairy Cooperatives of Gujarat, popularly

known as 'AMUL', 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. It is exclusive marketing organization of 'Amul' and

'Sagar' branded products.

Objectives and Need

The main objective of the research is to bridge the gap between the

distributors and the retailers. By eradicating such problems a lot can be

improved. It is also important to teach the retailer and make him aware of the

new launches in the market. Need of the research is to tap the untapped market

by promoting the new launches for various segments in the market. To come

up with various promotional activities which helps the company to push its

newly launched as well as existing products

Market Research

The research is conducted by collecting data from four distributors and by

visiting retailers from various beats. The sample is almost 25 retail outlets

from every beat. The research is done for the period of three months in

different areas of thane. The research was basically on fours factors –

Availability, Awareness, Visibility and Placement.

vii

Data Analysis

Data analysis was done of the information collected from distributors and the

retail outlets. Four main areas were studied which are as follows:-

Retailer’s issues

Types of issues

Potential outlets

Refrigeration facility

Strategic models

To support the research, some strategic models were used to analyze and

obtain the correct picture of the results identified. These models are theoretical

but still find practical importance in strategy driven businesses. Following

models and tools were used:-

SWOT Analysis

Product life cycle

Product mix

Segmentation, Targeting and Positioning

Conclusion

‘‘AMUL will be an outstanding marketing organization, with specialization in

marketing of food and dairy products, both fresh and long life with customer

focus and information technology integration. Some of the important future

plans are as follows:-

Installing bulk milk chillers and automatic milk collection systems in

all their village cooperative societies.

Expansion of distribution network, creative marketing, consumer

education and product innovation

viii

Table of Contents

Sr.No Chapter Name Page No.

1. Introduction……………………………….……….…………..01

1.1 Company Overview………...………………….……...01

1.2 Background of the project…...………………..……....09

1.3 Objectives…..……………..………………….………..13

1.4 Scope of the project……………...…………….……....15

1.5 Purpose and Significance of the Project...….................15

1.6 Limitations of the Project……………………………...16

2. Review of Literature…….....…….……………………..……..17

3. Methodology.............................................................................21

3.1 Research Objectives and Design.……………………..21

3.2 Sources of Data Collection……...……...….…………24

4. Data Analysis ……….………………………………………..26

5. Conclusion……………………………………..……………..48

6. Recommendation……………………………………………..49

7. References…………..………………………….….…............50

8. Annexures...………….…………………………....………….51

1

1. INTRODUCTION

1.1 Company Overview

Fast-Moving Consumer Goods (FMCG) or Consumer Packaged

Goods (CPG) are products that are sold quickly and at relatively low cost.

Examples include non-durable goods such as soft drinks, toiletries, Over-the-

counter drugs, toys, processed foods and many other consumables. Though the

profit margin made on FMCG products is relatively small (more so for

retailers than the producers/suppliers), they are generally sold in large

quantities; thus, the cumulative profit on such products can be substantial.

FMCG is probably the most classic case of low margin and high volume

business.

Fast-moving consumer electronics are a type of FMCG and are typically low

priced generic or easily substitutable consumer electronics, including mobile

phones, MP3 players, game players, and digital cameras which are of

disposable nature.

FMCG need serious sales treatment for their products. They need to make sure

that the right stores are stocking their products and they need to ensure that

consumers are actually consuming their goods. FMCG sales initiatives can be

a great way to boost a company’s ad campaigns and actively influence sales

activity.

FMCG need serious sales treatment for their products. They need to make sure

that the right stores are stocking their products and they need to ensure that

consumers are actually consuming their goods. FMCG sales initiatives can be

2

a great way to boost a company’s ad campaigns and actively influence sales

activity.

People who pursue careers in FMCG sales are required to showcase a

company’s products to retail companies, or directly to consumers in shopping

centres, supermarkets and other retail outlets. Their overall objective is to

improve sales figures and boost revenue.

About GCMMF:-

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

largest food product marketing organization with annual turnover (2013-14)

US$ 3.1 billion. Its daily milk procurement is approx 13 million lit per day

from 16914 village milk cooperative societies, 17 member unions covering 24

districts, and 3.18 million milk producer members

Amul Brand:-

GCMMF (AMUL) has the largest distribution network for any FMCG

company. It has nearly 50 sales offices spread all over the country, more than

5000 wholesale dealers and more than 700000 retailers.

Amul became the world's largest vegetarian cheese] and the largest pouched-

milk brand.

AMUL is also the largest exporter of dairy products in the country. AMUL is

available today in over 40 countries of the world. AMUL is exporting a wide

variety of products which include whole and skimmed milk powder, cottage

cheese (Paneer), UHT milk, clarified butter (Ghee) and indigenous sweets.

The major markets are USA, West Indies, and countries in Africa, the Gulf

Region, and SAARC neighbours, Singapore, The Philippines, Thailand, Japan

and China, and others such as Mauritius, Australia, Hong Kong and a few

3

South African countries. Its bid to enter the Japanese market in 1994 did not

succeed, but it plans to venture again.

In September 2007, Amul emerged as the leading Indian brand according to a

survey by Synovate to find out Asia's top 1000 brand.

Angered by the unfair trade practices, the farmers of Kaira approached Sardar

vallabh bhai patel under the leadership of local farmer leader Tribhuvandas K.

Patel. He advised them to form a cooperative and supply milk directly to the

Bombay Milk Scheme instead of Polson. He sent Morarji Desai to organise

the farmers. In 1946, the milk farmers of the area went on a strike which led to

the setting up of the cooperative to collect and process milk..Milk collection

was decentralized, as most producers were marginal farmers who could

deliver, at most, 1–2 litres of milk per day. Cooperatives were formed for each

village, too.

4

.

Amul Product Range:-

5

6

The Three tier “Amul Model”

7

The Amul Model is a three-tier cooperative structure. This structure consists

of a dairy cooperative society at the village level affiliated to a milk union at

the district level which in turn is federated into a milk federation at the state

level. Milk collection is done at the village dairy society, milk procurement

and processing at the District Milk Union and milk and milk products

marketing at the state milk federation. The structure was evolved at Amul in

Gujarat and thereafter replicated all over the country under the Operation

Flood programme. It is known as the 'Amul Model' or 'Anand Pattern' of dairy

cooperatives.

The main functions of the VDCS are:

Collection of surplus milk from the producers of the village and payment

based on quality and quantity,

Providing support services to the members like veterinary first aid,

artificial insemination services, cattle-feed sales, mineral mixture sales,

fodder and fodder seed sales, conducting training on animal husbandry

and dairying,

Selling liquid milk for local consumers of the village,

Supplying milk to the District Milk Union.

State Cooperative Milk Federation

The main functions of the federation are as follows:

Marketing of milk and milk products processed/manufactured by Milk

Unions,

Establish a distribution network for marketing of milk and milk products,

Arranging transportation of milk and milk products from the Milk Unions

to the market,

Creating and maintaining a brand for marketing of milk & milk products,

8

Providing support services to the Milk Unions and members like technical

inputs, management support and advisory services,

Pooling surplus milk from the Milk Unions and supplying it to deficit Milk

Unions,

Establish feeder-balancing dairy plants for processing the surplus milk of

the Milk Unions,

Arranging for common purchase of raw materials used in

manufacture/packaging of milk products,

Decide on the prices of milk and milk products to be paid to Milk Unions,

Decide on the products to be manufactured at Milk Unions and capacity

required for the same.

Conduct long-term milk production, procurement and processing as well

as marketing planning.

Arranging finance for the Milk Unions and providing them technical

know-how.

Designing and providing training in cooperative development and

technical and marketing functions.

Conflict resolution and keeping the entire structure intact.

Today, there are around 176 cooperative dairy unions formed by 125,000

dairy cooperative societies, having a total membership of around 13 million

farmers on the same pattern, who are processing and marketing milk and milk

products profitably, be it Amul in Gujarat or Verka in Punjab, Vijaya in

Andhra Pradesh, Milma in Kerala, Gokul in Maharashtra, Saras in Rajasthan

or a Nandini in Karnataka. This process has created more than 190 dairy

processing plants spread all over India with large investments by these

farmers' institutions. These cooperatives today collect approximately

23 million kg of milk per day and pay an aggregate amount of more than Rs.

125 billion to the milk producers in a year.

9

1.2 Background of the project and some brief on the title of the

project

Introduction to the Products Distributors and

salesmen

Retail Census

Study market reputation of other distributors

in your assigned territory of

FMCG brands

– Collect data like Name of Agency,

contact person and number,

brands they handle

BTL activities

To Find the Market Potential of Slim and

Trim

Amul Slim and Trim Milk (SnT) is a Skimmed Long Life Milk available in

tetra packs which is specifically made to target consumers who are health and

weight conscious. This milk is made using the UHT processing, Ultra-high

temperature processing, ultra-heat treatment (both abbreviated UHT),

or ultra-pasteurization is the sterilization of food by heating it for an

extremely short period, around 1–2 seconds, at a temperature exceeding 135°C

(275°F), which is the temperature required to kill spores in milk. The most

10

common UHT product is milk, but the process is also used for fruit

juices, cream, soy milk, yogurt, wine, soups, honey, and stews. UHT milk was

invented in the 1960s, and became generally available for consumption in the

1970s.

High heat during the UHT process can cause Maillard browning and change

the taste and smell of dairy products.

UHT milk has a typical shelf life of six to nine months, until oApened. It can

be contrasted with HTST pasteurization (high temperature/short time), in

which the milk is heated to 72°C (161.6°F) for at least 15 seconds.

11

UHT milk has seen large success in much of Europe, where across the

continent as a whole 7 out of 10 Europeans drink it regularly. In fact, in a hot

country such as Spain, UHT is preferred due to high costs of refrigerated

transportation and "inefficient cool cabinets".Europe's largest

manufacturer, Parmalat, had $6 billion of sales in 1999. UHT is less popular in

Northern Europe and Scandinavia, particularly in Denmark, Finland, Norway,

Sweden, the United Kingdom and Ireland. It is also less popular in Greece,

where fresh pasteurized milk is the most popular type of milk.

UHT Milk currently accounts for less than 1% of the total liquid milk market

in India. The product’s high shelf life and convenience, however, has been

driving this market exponentially in the last few years. UHT milk has a very

high shelf life and unopened packs can last for several months without being

spoilt. This makes them extremely popular in areas having milk scarcity and

which lack a proper cold chain infrastructure. The report also suggests that

increasing urbanization and women work participants will increase the

demand for safe, convenient and ready – to - drink milk in India. With UHT

milk being safe and ready - to drink - without the need of boiling, its

popularity among urban households is expected to increase significantly in the

near future.

The early 1980s saw the upsurge in packed milk segments and an urban shift

in the mindset from doodhwala milk to pasteurised milk in bottles and plastic

packets. This was a clear case of value addition; it combined hygiene with

convenience.

In 2006 , the total UHT milk market was estimated to be around 2,44,000

liters

per day as per the CEO of a leading brand at that time. At around 96 million

MT of milk production per annum in 2006 it was accounting for around 0.1 %

12

of the total milk produced. Considering a 20 % YTY growth it is estimated to

have currently reached around 6 lacs liters of milk per day. If we consider this

at the current milk production level it accounts for around 0.2 % of the total

milk produced or 0.6% of the total milk processed (considering this as around

the 35% level as on date). The installed capacity, however, seems to be more

than this and further heavy expansions are on their way in this sector.

To my surprise one of my clients from the North East told me that the demand

for UHT milk is surpassing that for conventional liquid milk formats by a

large margin. This was validated when one of the leading companies in India

stated that it is reaching to even the dhaba level, but otherwise, they're barely

skimming the market's surface. Prices always remain at a premium for regular

packet milk. Recently, one of the regional players has launched their UHT

milk at around Rs 90 a liter for the upper niche of a metro in India.

13

1.3 Objectives:-

Primary Objectives:

To Find the Market potential of Amul Slim N Trim in Thane area.

Secondary Objective

To find out the availability of Amul deep freezers and visual coolers.

This included attending each retail outlet and asking for information

with face to face open interviews

To find out the potential for penetration of Amul products. This was

done with the help of retail census. This helped in knowing the reach

that Amul products could have.

To find out the competitor analysis for AmulDahi. Dahi was segment

where Amul was losing its share. Hence it was important to understand

the competitors.

To analyze SKU’s of rival companies. It was also important to know

SKU of rival competitors to analyze.

To analyze schemes provided by the rival companies. It was important

to know the schemes to beat the competition.

To increase the revenue for that particular area. In order to increase the

revenue, areas were split and two distributors were assigned. This help

in increasing the service as well as revenue of the company.

14

To study the distribution system and to monitor the salesman activity.

The distribution hierarchy was studied and introduction of order book

was noticed.

To Track launch activity of Slim and Trim

15

1.4 Scope of the Project:-

1. The study was carried out in Thane district so its scope is mainly restricted

to Thane.

2. It gives the information about the size of the retail network.

3. It gives information about the services given by the distributor to their

retailers.

4. It gives information about the competitors’ products.

5. It will help in serving consumers in a better way.

6. It will help in giving useful suggestions to the company to improve their

product sales.

1.5 Purpose and Significance of the Project:-

1. To promote the new products in the market.

2. To find out ways to make the customer aware of the company products.

3. To educate the retailers about the company’s products and the benefits that

the customers and they are going to derive out of it.

4. To understand the fat composition and the shelf life of various products

offered by company.

5. To understand the pricing and schemes offered on various products.

6. To reduce price discrimination in the market from the distributors.

16

7. To find out ways and means of increasing the penetration of the new

products through pamphlets distribution and discount coupons.

8. To find out the loss incurred by the distributors due to the unsold stock of

expired new products.

1.6 Limitations of Project:-

This project was worked under several constraints and limitations. Some of

the key limitations are as follows:-

1. The research was limited to few sectors only.

2. Time period of the project was limited, which may not be enough to

understand the whole market.

3. Convenient sampling was used as the mode of conducting the research.

4. Sample size taken was small and as a result it can be concluded that the

chosen sample is not the representative of the whole population.

5. The psychology and the temperament of the retailer play a significant role.

Some respondents are more sensitive as against others who are more tolerant.

A change in the composition of the retailer can affect the outcome adversely

or favorably.

6. Retailers may not have been true in answering various questions and may

be biased at time.

7. The sample size of retailers / wholesalers was limited and therefore

response from them does not reflect the exact view .

17

Chapter 2

Literature Review

By 1956 Amul realized that they need to have a proper positioning statement

in order to establish them as a brand in the Indian market. Amul went ahead

with the positioning statement ‘processed from the purest milk under the most

hygienic condition by a dairy co operative in Gujarat’. Although the statement

threw light on what Amul is but it failed to make an impact on the Indian

consumers. Amul was already in a risky business in the sense that it was

making butter, which is a western concept and was not really that much known

to the Indian taste.

India is a country where ghee is used generously in every meal so Amul had

its competitor in the form of ghee which was already an unavoidable part of

Indian meals. The challenge was to position itself against something that had

been in the country for ages. And in a country like India where people are fond

of tradition and traditional things Amul had a huge barrier to cross. But Amul

didn’t give up. It did what it planned to do i.e it taught the Indian consumers

how to include butter in their day to day lives. In 1966 Amul realized that the

positioning statement needs to be revised and it needed a brand ambassador.

The AS advertising agency was hired to do the needful. Sylvester Dacunha the

managing director of the same advertising agency came up with the idea of the

Amul girl. Instead of going for the standard celebrity brand ambassador

Dacunha thought a chubby little cartoon girl with polka dotted frock is what

amul needed as their brand ambassador. The tagline had also to be decided.

Dacunha’s wife, Nisha was an English professor suggested ‘utterly Amul’ and

to make the impact stronger Sylvester added the word ‘butterly’ to it.

Although ‘butterly’ doesn’t feature in the English dictionary but it made

enough sense in connecting ‘butter’ with Amul. Since then Amul never had to

look back.

18

Now in a country like India where people are highly opinionated, the Amul

girl was a big hit. She flashed in newspapers and billboards with witty and

humorous comments on any social, economical or political issue going in the

country. But Amul did not stop by only creating her. Even after 45 years since

her inception Amul makes full use of her and have never changed their brand

ambassador. The brand recall for Amul reached new heights with her. Amul

made sure that whatever be the issue on which their brand ambassador is

commenting on, the solution should be butter. Be it the failure of the Agni

missile in the 1980’s or be it long wait for Sachin’s 100th

test century in the

recent times, Amul said the solution is provided in Amul butter.

Moreover Amul started the tagline ‘Taste of India’ which reinforced its Indian

connect. The tagline was strong enough to convince Indians that butter is also

meant for them. The TV advertisements showed use of butter in cooking and

paranthas which usually uses ‘ghee’ and Amul was successful once again. Its

multi dimensional approach of teaching Indians how to eat butter, telling them

that butter suits the Indian taste and connecting butter to all Indian issued

worked out well for the company. In the meantime Amul also came up with

the famous Amul song ‘sapnehogayehaisakar’ where it showed how Amulco

operative works and connects all the milk producers in Gujarat. The ad further

reinforced what Amul has done for India and became very popular among the

Indians.

Amul also boasts one of the biggest and widest distribution networks in the

country. With its huge network it made itself available in all parts of the

country and even to those places where its competitors couldn’t reach. It was

an added advantage for the company. And since most of its advertisements

featured in newspapers in the form of print ads it could send its message to all

those places of rural India where TV could not reach. So Amul made itself

available in ads and in stores in all parts of the country.

19

Amul has also been swift enough in keeping pace with the current scenario.

The company changes its ads every week. The Amul marketing team

brainstorms on the advertisement topic from every Monday and by Friday the

topic, the picture, the locations where to be put are all decided. During the

weekend the hoardings change across the nation and the new ad is put up.

Amul has done its branding so efficiently that people now look forward for the

new Amul ad every week.

Amul’s marketing strategy has been so unique that no brand till date has

adopted it which might be because of the fact that Amul has taken this strategy

to such an extent that brands fear that they would fail when compared to the

benchmark. Amul has so far monopolized the social commentator brand

ambassador policy and has implemented it with great perfection. Apart from

being present in newspapers and in the billboards and hoardings Amul is now

also present in Twitter and is making the Amul girl available on digital

platform. The ambassador has got into the skin of the Indian consumers and

has connected to them so well that we can say Amul through its

advertisements has always given us ‘the real taste of India’.

20

In 1946, the milk farmers of the area went on a strike which led to the setting

up of the cooperative to collect and process milk..Milk collection was

decentralized, as most producers were marginal farmers who could deliver, at

most, 1–2 litres of milk per day. Cooperatives were formed for each village,

too.

21

Chapter 3

Methodology

3.1 Objectives

“To find Market Potential of Amul Slim N Trim UHT Segment and

Competitor analysis of Amul Masti Dahi Products”. The products on which

the research was done are as follows:-

UHT Milk Products:

Amul Slim and Trim

Amul Taaza

Nestle Slim Milk

Nestle a+

Amul Dairy Products:

Amul Dahi

Gowardhan Dahi

Mother Diary

3.2 Design- Mixed Design (quantitative and qualitative design)

Quantitative design: While retailers were interviewed to find out the find the

market potential of Amul PRO, the potential was judged on the report which

purely consisted of quantifying sales in terms of number sold. Number of units

sold by the competitors in a month or in a year was used as a basis for

calculating the market potential. Hence, it can be concluded that quantitative

design was used to find out in the market research.

22

Qualitative design: In the initial stages of market research, there was face to

face interaction with retailers. These retailers were interviewed with open

interview style where they were asked to give elaborate feedback about the

service of distributors, company’s after sales service, reputation of certain

products, type of problems faced frequently etc. Since there was no

involvement of numbers and it was an open interview, the research was done

with qualitative design

3.3 Sources of Data collection –

Primary Data

Retail census

Observation method

Secondary Data

Sales Records

The primary data has been collected by means of interviewing the retailers at

the point of purchase. The sample size for the research was nearly 25 retail

outlets per beat. The information gathered by interviewing the retailers was the

first hand information and accurate without being biased. It was more of an

open end question approach and the retailers were very much co-operative and

unbiased. Following information was gathered from the retailers:-

Stocking details

23

Competitors

Refrigeration facility

Number of visits by the sales person

Margins offered by the competitors

In addition, information was also gathered from distributors regarding:-

Delivery of products

Pricing of products

Issues related to expiry

Various schemes offered by the company

Information about the sales person

24

Place:-

The research was done in different areas of Thane at different purchase point.

Research was conducted in Thane which consisted following areas:-

Hiranandani

Brahamand

Kasavadalli

Olwa

Swastik park and Vijay garden

Kolsheth

Naupada

Station Road

Khopri

Charai

Ghodbunder Road

25

Chapter 4

Data Analysis

The research was conducted working with four different distributors which are

as follows:-

1. Saavala Agency, Thane

2. Suvidha Enterprises, Thane

3. Vinay Enterprises, Thane

4. Saavala Dry Fruits, Thane

Various parameters were taken care of during research work. Factors such as

Retailer’s issues, type of issues, potential outlets and refrigeration facility. The

data collected is just a sample of the total number of outlets in a given area.

But it shows a correct picture as the sample taken is nearly 25 outlets per beat.

CLASS AND TYPE OF MILK

Dairies in India have to market milk by standardizing, as per the various types

of milk prescribed under Food Safety Standard Act, 2006. These type of milk

differ in their Milk fat and Milk SNF contents.

26

Raw milk procured from villages, contain numerous pathogenic and spoilage

bacteria. These microorganisms, if allowed to grow, multiply at logarithmic

rate and produce many toxins and enzymes and spoil milk. Hence milk is

processed by heat treatment in dairies.

Various types of heat-treatment given to milk are as below –

27

1. Pasteurization –

The term Pasteurization has been namedafter its inventor, Louis Pasteur of

France. Pasteurization refers to the process of heating every particle of milk to

at least 72oC for 15 seconds (or to any temperature-time combination which is

equally efficient), in approved and properly operated equipment. After

pasteurization, the milk is immediately cooled to 6oC or below. In this process,

pathogenic and spoilage organisms are destroyed. Normally pasteurized milk

is packed in sachets and shall be stored under refrigeration conditions, so as to

prevent the growth of remaining organisms in milk. Pasteurized milk has a

shelf life of 2 days when stored and transported under refrigeration conditions.

This milk is boiled and consumed in Indian homes.

28

2. Sterilization -

Sterilized milk is manufactured by filling into bottles and heating bottled milk

to not less than120oC for minimum period of 15 minutes. After heating,

sterilized milk bottles are gradually cooled to room temperature. Due to

economic disadvantages and browning of milk, this process is used only for

bottled flavored milk. This Sterilized milk has a shelf-life of not less than 3

months, even at room temperature, and can be consumed directly.

3. Ultra High Temperature (UHT) –

29

During the process of UHT, milk is heat-treated to temperature of 137oC for 4

seconds and cooled instantly which retains all the vitamins and nutritional

value of milk providing zero bacteria product which needs no boiling. The

milk is packed in 6 layer tamper proofed Tetra-pack packaging which prevents

the milk from spoilage due to sunlight, bacteria, germs and oxygen, thus

ensuring freshness and purity of milk packed. The milk can be stored without

refrigeration for 60 days in fino-packaging and 120 days in brik packaging.

4.Homogenization –

Any of the above class and type of milk may be homogenized. Homogenized

milk is milk which has been treated in such a manner as to ensure break-up of

the fat globules in milk to such an extent that after storage no visible cream

separation occurs on the milk. Milk is homogenized using a high-precision &

expensive equipment known as Homogenizer, which consists of a high

pressure piston pump to force milk at high pressures (and velocity) through a

narrow opening between the homogenizing valve and its seat; the fat globules

in the milk are thereby sub-divided into smaller particles of more uniform size.

Cream layer formation does not take place in homogenized milk.

Milk pack, that is available in the market, contains printed details about the

type of heat-treatment that the milk contained in the pack has undergone –

30

Pasteurized / Sterilized / Ultra High Treated (UHT); the class of milk as per

PFA Act – Toned / Double Toned / Full Cream Milk / Cow Milk / Buffalo

Milk / Skim Milk; if any other processing – Homogenized, etc. For instance, if

Toned Milk is pasteurized and also homogenized, it is designated as

“Pasteurized Homogenized Toned Milk”.

Product Details

Product Name Amul Slim and Trim Milk

Description Skimmed Long Life Milk

Packing 1000 ml

Product Specifications Composition Skimmed Milk, Vitamin A&D

Nutritional

Information Nutritional Facts

Serving Size 200ml

31

Serving per pack 5

Amount per Serving

Energy 70 Calories

Energy from fat 1.5 calories

% Daily Value*

Total Fat, 0.2 g 0.3

Saturated Fat, 0.1g 0.6

Sodium 100 mg 4.6

Total Carbohydrate 10 g 3.3

Protein, 7g 14

Calcium 300 mg 61

Added Vitamin A 500 IU

Added Vitamin D 40 IU

Not a significant source of Dietary fiber,

Vitamin C & Iron.

*Percent daily Values (DV) are based on

a 2000 calorie diet.

Shelf Life 180 days when stored in cool and dry place

Storage condition Ambient

Product Features

Zero Cholestrol

Virtually zero bacteria

No need to boil

32

Cut open and drink

No need to refrigerate till open

Stays fresh for 2 days after opening if kept in refrigerator

No powder or water added

No preservative / chemical

Easy to carry and use while traveling

Tamper evident packing

Best quality milk from Gujarat

Product Application

Excellent for:

People with Heart & Blood Pressure related problems

Health & weight conscious People

People undergoing Fitness sessions.

Amul Lite is Long Life skimmed milk. It is fresh and only fresh milk. The

UHT treatment ensures zero microbial activation, while preserving the

maximum flavour, taste, and nutritional value. The aseptic packaging system

protects the product from air and light and guarantees a long shelf life of 180

days without refrigeration. Amul Lite Milk is a unique offering to health

conscious milk lovers. With virtually zero fat content, nil cholesterol and 8.

7% SNF minimum, it gives you all the proteins, vitamins and minerals of

natural milk without your having to imbibe unnecessary flab in the deal

33

SnT Launch Tracking Format

WD Town APO A Class B Class /

Other

retail

Total of

All

Channels

Total of

All

Channels

Total Placed Total Placed Total Placed Total Placed SNT

Stock

Placed

in

PCS.

SNT

POP

Placed

in

PCS.

Savla

Agency

Kolbad 0 0 3 3 12 5 17 10 16 10

Savla Comined 3 3 15 12 35 14 39 31 38 31

34

Sales value

CMCY

(Lks)

JUN 2014

Sales

value

CMLY

(Lks)

JUN 2013

% Monthly

Growth

Sales

value

Savala Agencies Skimmed Milk 0.19

Savala Agencies Standardised Milk 0.41 0.08 405.77

Savala Agencies Toned Milk 3.58 1.60 123.83

Savla Dry Foods Skimmed Milk 0.03 -100.00

Savla Dry Foods Standardised Milk 0.06 0.11 -48.08

Savla Dry Foods Toned Milk 1.36 2.68 -49.25

Suvidha

Enterprises

Skimmed Milk

Suvidha

Enterprises

Standardised Milk 0.11 0.03 315.38

Suvidha

Enterprises

Toned Milk 1.40 1.50 -6.41

Vinay Agency

(Thane)

Skimmed Milk 0.03

Vinay Agency

(Thane)

Standardised Milk 0.09 0.14 -30.77

Vinay Agency

(Thane)

Toned Milk 3.21 2.04 57.67

35

Calculation of Market Share of Amul UHT

Total sale = 7400 in one month

Sale of Amul UHT 3900ie 52%

Sale of other UHT milk competitors 3500 which includes 47% (Nestle) and

1% other brands like gowardhan, danone etc.

3900 3500

80

Amul UHT Nestle UHT others

0

1000

2000

3000

4000

5000Sales(no of units)

36

Market Potential of Amul UHT

Value of sale of Amul UHT milk – Rs. 10,44,000

Value of sale of Nestle UHT milk is Rs. 9,44,000 in a month and Value of sale

of others is Rs. 20,000

Therefore the potential which is existing in the market for amul is of

20,08,000. And is subject to increase with more awareness.

Value of sale Amount (Rs.)

Amul UHT milk 10,44,000

Nestle UHT milk 9,44,000

Others (Danone, D’lecta, Gowardhan) 20,000

Potential market for Amul UHT 20,08,000

37

Competitors

Products like Nestle Slim (Nestle), Go Slim (Gowardhan), Danone Slim Milk

(Danone), Nandini Skimmed Milk (Nandini) and Britannia Slimz (Britannia)

are the direct competitors of Amul Slim and Trim.

Amul Slim and Trim was earlier known as amul lite, but the category itself is

known as Slim milk category and all its competitors follow the same, the name

Amul lite itself did not very well highlight the utility of the product.

The biggest competition for AmulSilm and Trim is Nestle Slim Milk which is

priced rs. 74, the others competitors also have prices ranging from 65 to 75

38

expect for Nandini Skimmed milk which is available for rs. 40 which is

available only in select parts of India..

Comparison Matrix was designed for tracking of stock and response for the

new product in the market.

AmulSnT Nestle Slim Other

Salesman

visit

Friday Tuesday

Delivery Saturday Wednesday

Margin 7% 8%

POP'S Yes No

Schemes No Schemes on large order

quantity

Consumer

Preference

Response at Amul Parlour is very good

Fat Content

(%)

0.10% 0.20%

Competitor analysis was done based on a study done in a modern format store

D-mart. The study had a sample size of 30 customers buying UHT milk and

their preferences.

39

Dmart being a discount store, it also had offers on almost all the products in

the UHT milk category.

It was observed that 22% of the sample opted for Amul UHT products and the

rest 28% was shared by the others.

22%

18%

2%

3% 4%

1%

Sales

Taaza

Nestle

Go milk

Mother Diary

Danone

OthersSample Size -50

40

Swot Analysis of Slim n Trim:-

SEGMENTATION, TARGETING,POSITIONING

MARKET SEGMENTATION

Market Segmentation is the act of sub dividing a market into distinct sets of

customers who merit attention. Targeting these customers for marketing by

evaluating, selecting, and concentrating becomes a corollary to segmentation.

Market segmentation assumes importance in the context of intense

competition market is bombarded with. A market consists of buyers, and

buyers differ in one or more ways. They may differ in their wants, resources,

Strengths:

The Amul Brand

Lowest Price

Lowest Fat Content

Longer Shelf Life

Weakness:

Low Margin to Retailer

Less or no replacement

No Schemes being offered

No Awareness

Opportunities:

Areas with no availability of fresh milk

Increase in number of health conscious

people

Threats:

Negative Publicity about UHT milk.

Retailer Push Strategies used by

competitors.

41

locations, products requirements. These variables have to be considered in the

process of segmentation.

Markets can be segmented on the geographical basis, demographical basis,

psychological basis, behavioural basis and loyalty status.

AMUL UHT segments its market on the following basis:

1. GEOGRAPHICAL BASIS:

This segmentation is done on the basis of the lifestyle of people in different

regions and their tastes and consumption patterns which are distinct according

to their geographical situation.

2. DEMOGRAPHICAL BASIS:

Amul UHT has segmented its market on the basis of the socio-economic

status of the customers. i.e. on the basis of socio economic class of the

families who are all the real buyers.

MARKET TARGETING

After segmenting the market, company evaluate the various segments and

decides how many and which ones to target.

Generally the market is targeted in three ways:-

UNDIFFERENTIATED MARKETING

DIFFERENTIATED MARKETING

CONCENTRATED MARKETING

AMUL uses Repositioning marketing strategy by repositioning their product

by a new packaging which focus more on health conscious people.

42

Earlier Positioned ----------- New Packaging

43

Other Activities

Retail census:

1. Availability of Amul deep freezers and visual coolers were found out with

the help of following format.

This type of format helped in creating a database of the retailers. Presence of

deep freezers as well as visi coolers was also noted to gauge the potential for

penetration of Amul products. Contact numbers of retailers were also noted to

entertain the problems of retailers as well as for taking orders on the phone.

Activity also included introduction to the product range of Amul which

consists of more than 240 products, introduction to the distributors where

warehousing of the products happened and introduction to the salesmen with

whom most of the retail outlets were covered.

During this period, order books were introduced to take the orders of the retail

outlets.

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2.Competitor analysis

Analysis of competition against amulmastidahi was done and the major

competitors found were... Warna, gowardhan, nestle, danone, milky

fresh, loose dahi etc.

A study was done on the MRP, SKUs, various schemes provided by the

competition.

Amul Masti Dahi (SKU) Yes/No COMPETITORS ACTIVITY - DAHI

100g

C

200g

C

400g

C

400g

P

1 Kg

P

Pro

Lassi

Name SKU MRP Scheme

It was found that brands like nestle, danone etc. have higher MRP than

Amul but they also provide schemes like 8+1 free.

Milky fresh is in the introductory stage, the schemes provided were

very attractive 6+3 free so the retailers tried to push the product and

the availability and visibility was very high.

45

3.Involving and convincing retailers to participate in Amul Kool contest.

Amul Kool contest is for retailers who stock Amul beverages like

Amul Kool, Chaas, Lassi, Milkshake etc. This contest runs on

whatsapp and Facebook and the participants have to click a photograph

of these products with themselves and post it to the Facebook wall or

whatsapp number of Amul.

The Daily winners would be given gift hampers and weekly winners

would get there photographs in between IPL matches on television.

4.Beat plan was collected from the distributor’s office as well as product

information was collected to know the pattern in which areas were covered by

the salesmen.

Also individual sales figures for Amul products of each retailer were collected

46

5.Collection of product information – packaging, packing, fat content,

variants, MRP etc.

6. CSR Activity by Amul

Now Amul presenting Amul Vidya Awards 2013 for Felicitating youth

toppers in 10th

and 12th

.

It’s a Kind of CSR initiative taken by Amul company.

Amul Vidyashree and Amul Vidyabhushan Awards will provided to students

47

For 10th

Topper Students

For 12th

Topper Students

48

5. CONCLUSION

GCMMF which markets the extremely popular Amul brand of milk and dairy

products is certainly going through a golden phase with simultaneous

acceleration in demand and supply. The high growth in turnover is reflected in

the remarkable performance of its various mega-brands.

This is the vision of the future which the company sees for itself:

‘‘AMUL will be an outstanding marketing organization, with specialization in

marketing of food and dairy products, both fresh and long life with customer

focus and information technology integration.

The network would consist of over 100 offices, 7500 stockiest covering at

least every taluka head quarter town, servicing nearly 10 lakh outlets with a

turnover of Rs.10,000 crores, and serving several co-operatives. AMUL shall

also create a market for its products in the neighbouring countries.”

A wide spread concern for quality and convenience, and the buy it, fill it and

forget it, psyche of the young generation for their requirements of dairy and

foodswith an unstoppable increase in disposable incomes are laying the

foundation for growth of this sector in the Indian dairy industry.

We should also not forget the role being played by media in affecting the

consumer behaviour on consumption of foods and, particularly, dairy.

49

6. FINDINGS AND SUGGESTIONS /

RECOMMENDATIONS

6.1 FINDINGS

1. Amul products subjected to degradation due to weather conditions. Because

of this, once they reach the retailers they are in bad state.

2. Replacement and Profit margin are two biggest issues threatening the brand

of Amul.

3. Lack of awareness about the new products like Amul Slim and Trim.

4. AmulKool faced frequent expiry date issues.

5. Economically priced quality dairy products- one of the key strengths of

Amul.

6. Amul has top of the mind recall when it comes to butter which forms 55%

of total sales.

7.It is also observerd that most of the items are old stock.

8.Competitors of Amul SNT are Mainly Nestle a+ and Nestle Slim milk.

9.Schemes provided by other competitor products.

10.Retailers try to avoid that Amul products which are there in competitor

company.

11.Danglers were not present at the shops which was kept by us

50

6.2 SUGGESTIONS AND RECOMMENDATIONS

The following suggestions can be derived out of the research done on frozen

products division and new products:-

1. Suggestions for Salesperson issues:-

The salesperson should visit the retailer’s outlets on regular basis so as

to keep stock available and should also make the retailer aware of the

newly introduced products by the company.

The salesperson should also make the retailer aware of the running

schemes and offers so as to boost up sales.

2. Suggestions for Replacement issues: -

The company should make attempts to revise its replacement policy .

3. Suggestions for Damage issues: -

The distributor should ascertain the products supplied to him from the

Depot. Distributor should also make sure that the product does not get

damages at the time of supply to the retailer.

4. Suggestions for Promotional activities: -

Word of mouth works, but at least at initial period the company should

offer product with some offer.

Company should provide Danglers, posters to improve visibility of the

products.

51

REFERENCES:

1. Avirupa Bhattacharya, “The Making of the Amul girl “, Retrieved on

16th

Sept, 2004 from http://www.idosi.org/wjdfs/wjdfs2(2)/2.pdf

2. www.wikipedia.com

3. www.fnbnews.com

4. www.gcmmf.com