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CONTENTS

o Introduction & History

o Marketing Research

o Research Design

o Data Analysis

o Limitations

o Findings

o Suggestions

o Conclusion

o Bibliography

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DECLARATION

I, Shweta Hiwase, hereby declare that the project entitled A Case

Study of Effectiveness of Amul Chocolates Advertisement

Towards its Sales has been personally done by me under the

guidance of Prof. Mohan Savade in partial fulfillment of PGDBM

during academic year-2008-09.. This work has not been submitted for

any other degree / diploma exam elsewhere.

Shweta Hiwase

Date

Place

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NAND MILK UNION LIMITED

THE KAIRA DISTRICT CO-OPERATIVE MILK

PRODUCERS UNION LIMITED

ANAND

INTRODUCTION AND HISTORY

In the year1946 the first milk union was established. This union was started

with 250 liters of milk per day. In the year1955 AMUL was established. In the

year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK

PRODUCERS UNION. This union selected the brand name AMUL in 1955.

The brand name Amul means AMULYA. This word derived form the

Sanskrit word AMULYA which means PRICELESS. A quality control

expert in Anand had suggested the brand name AMUL. Amul products have

been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder,

Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand,

Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading

food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a

symbol of many things like of the high-quality products sold at reasonable

prices, of the genesis of a vast co-operative network, of the triumph of

indigenous technology, of the marketing savvy of a farmers' organization. And

have a proven model for dairy development (Generally known as ANAND

PATTERN).

In the early 40s, the main sources of earning for the farmers of Kaira district

were farming and selling of milk. That time there was high demand for milk in

Bombay. The main supplier of the milk was Polson dairy limited, which was

a privately owned company and held monopoly over the supply of milk at

Bombay from the Kaira district. This system leads to exploitation of poor and

illiterates farmers by the private traders. The traders used to beside

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union who was supported by Shri Tribhuvandas Patel who lead the farmers

in forming the Co-operative unions at the village level. The Kaira district milk

producers union was thus established in ANAND and was registered formally

on 14th December 1946. Since farmers sold all the milk in Anand through a

co-operative union, it was commonly resolved to sell the milk under the brand

name AMUL.

At the initial stage only 250 liters of milk was collected everyday. But with the

growing awareness of the benefits of the cooperativeness, the collection of

milk increased. Today Amul collect 11 lakhs liters of milk everyday. Since

milk was a perishable commodity it becomes difficult to preserve milk flora

longer period. Besides when the milk was to be collected from the far places,

there was a fear of spoiling of milk. To overcome this problem the union

thought out to develop the chilling unit at various junctions, which would

collect the milk and could chill it, so as to preserve it for a longer period. Thus,

today Amul has more than 150 chilling centers in various villages. Milk is

collected from almost 1073 societies.

With the financial help from UNICEF, assistance from the govt. of NewZealand under the Colombo plan, of Rs. 50 millions for factory to manufacture

milk powder and butter was planned. Dr.RajendraPrasad, the president of

India laid the foundation on November 15, 1954. Shri Pandit Jawaharlal

Nehru, the prime minister of India declared it open at Amul dairy on

November 20, 1955.

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insemination service, veterinary care, better feeds and the like - all through

the village societies. Basically the union and cooperation of people brought

Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which

suggest THE TASTE OF INDIA.

Plants

First plant is at ANAND,which engaged in the manufacturing of milk, butter,

ghee, milk powder, flavored milk and buttermilk.

Second plant is at MOGAR, which engaged in manufacturing chocolate,

nutramul, Amul Ganthia and Amul lite.

Third plant is at Kanjari, which produces cattelfeed.

Fourth plant is at Khatraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name

Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which

is matter of proud for Gujarat and whole India.

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MARKETING RESEARCH

Marketing research plays an important role in the process of marketing. Starting with

market component of the total marketing talks. It helps the firm to acquire a better

understanding of the consumers, the competition and the marketing environment.

DEFINITION

Marketing research is a systematic gathering, recording and analysis marketing

problem to facilitate decision making.

- Coundiff & Still.

Marketing research is a systematic problem analysis, model building and fact finding

for the purpose of important decision making and control in the marketing of goods

and services.

- Phillip Kotler.

MAIN STEPS INVOLVED IN MARKETING RESEARCH

Defining the Marketing Problem to be tackled and identifying the market research

problem involved in the task.

(1) Define the problem and its objectives :- This includes an effective job in

planning and designing a research project that will provide the needed

information. It also includes the establishment of a general framework of

major marketing elements such as the industry elements, competitive

elements, marketing elements and company elements.

(2) Identify the problem :- Identifying the problem involves getting

acquainted with the company, its business, its products and market

environment, advertising by means of library consultation and extensive

interviewing of companys officials.

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(3) Determining the specific Information needed :- In general the

producer, the manufacturer, the wholesaler and the retailer try to find out

four things namely :-

(1) What to sell

(2) When to sell

(3) Where to sell

(4) How to sell

(4) Determine the sources of information :-

Primary Data :- Primary datas are those which are gathered specially for the

project at hand, directly e.g. through questionnaires & interviews. Primary data

sources include company salesman, middleman, consumers, buyers, trade

associations executives & other businessman & even competitors.

(4) Secondary Data :- These are generally published sources, which have

been collected originally for some other purpose. Source are internal

company records, government publication, reports & publication, reports &

journals, trade, professional and business associations publications &

reports.

(5) Decide Research methods for collecting data :- If it is

found that the secondary data cannot be of much use, collection of

primary data become necessary. Three widely used methods of

gathering primary data are

A) Survey

B) Observation

C) Experimentation

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e) Organization and the planning of the report

f) A table of contents along with charts and diagrams used in the reports

g) The main report containing the findings

h) Conclusion arrived at end recommendations suggested

i) Appendices (containing questionnaire / forms used sample design,

instructions.)

(8) Follow-up the study :- The researchers, in the last stage, should follow up this

study to find if his recommendation are being implemented and if not, why

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RESEARCH DESIGN

Advertising is a paid form of non-personal presentation and promotion ofideas, goods or services by an identified sponsor.

1. RESEARCH PROBLEM

Increase the awareness level ofAMUL CHOCOLATE.

Seek the general perception of consumer towards AMUL CHOCOLATE.

To find the performance ofAMUL CHOCOLATE vis--vis other Brands.

To know the consumer psyche and their behaviour towards AMULCHOCOLATE.

2. RESEARCH OBJECTIVES & related sub objectives

To know the relationship of sales with the advertisement.

To know awareness of people towards Amul chocolates.

To know in which segment chocolates are mostly like/preferred.

To know which advertisement tool is mostly preferred by people.

To know the preference ofAmul chocolates with comparison toOther competitive brands.

To know the factors which affects consumers buying behaviourto purchase chocolates.

3. Information requirement

First, I had to know about all the competitors present in the chocolate

segment (Reputed and well established brands as well as Local brands).

Before going for the survey I had to know the comparative packs and

prices of all the competitors existing in the market.

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Since chocolate is a product that attracts children and youngsters hence I had

to trace the market and segment it, which mainly deals with people of various

age groups.

As chocolate is different product, the main information needed is the various

types of chocolates available in the market, their calorific value and various

other facts. They can be termed as :

As Amul chocolate advertisements are mainly done through hoardings but ontelevision the advertisement is being telecasted timely and on the proper timeor not.

AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids,Chocolate mass.

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series of questions. Some interviews are conducted in person, others by telephone,

and others by mail. Each of these has its special advantages and disadvantages and

limitations. The questionnaire method in general, however, has a number of

pervasive advantages and disadvantages. Discussion of particular variations will be

more meaningful if these characteristics of the general methods are brought out first.

A questionnaire consists of list of questions to be asked from the respondents and

the space provided to record the answer / responses. Questionnaire can be used for

the personal interviews, focus groups, mails and telephonic interviews. The choice

among these alternatives is largely determined by the type of information to be

obtained and by the type of respondents from whom it is to be obtained.

The common factor in all varieties of the questionnaire method is this reliance on

verbal responses to question, written or oral.

Questionnaire in the project consists of:

Multiple choice questions

MULTIPLE CHOICE QUESTIONS:

Questions of this type offer the respondents an alternative to choose the right

answer among others. It is faster, time saving and less biased. It also simplifies the

tabulating process.

OPEN END QUESTIONS:

In this type respondents are free to answer in their own words and express the ideas

they think are relevant, such questions are good as first questions or opening

questions. They introduce the subject and obtain general reaction.

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6. SAMPLING TECHNIQUE USED & SAMPLE SIZE - WHY?

Sample design is a definite plan of obtaining some items from the whole population.

The sample design used in this project is two state sampling i.e. Cluster and

convenience. In the probability sampling methods, each items in the sample is

chosen one at a time from a complete list of universe elements. In marketing

research practice, it will sometimes be more expedient to select clusters or groups of

universe elements, rather than to choose sample items individually.

Sampling methods in which universe elements are chosen in groups ---- rather than

individually -- are called cluster-sampling methods. They are widely used in the

sampling of human populations. When no complete universe listing exists, a type of

sampling is called area sampling may be the only practically feasible form of

probability sampling.

SAMPLING METHODS

Sample design is a definite plan of obtaining some items from the whole population.

The sample design used in this project is two state sampling i.e. cluster sampling

and convenience sampling. The whole city of Wardha was divided into some

geographical areas The total sample size was 200.

CONVINIENCE SAMPLING

This type of sampling is chosen purely on the basis of convenience and according to

convenience.I visited Garden, Parks, Temple, Superstores, Theatres and

Gymnasium.

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Advertising is a paid form of non-personal presentation and promotion ofideas, goods or services by an identified sponsor.

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KIND OF CHOCOLA

92%

8%

branded

nonbrande

ANALYSIS & INTERPRETATION

[1] What kind of Chocolate do you eat?

Branded 92 %Non branded 08%

INFERENCE

92% respondents in the region of Wardha consume Branded Chocolates, while

8% still consume non branded.

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[2] Who uses chocolates in your family?

Children 34 %Teenager 33 %Young 26 %Old 07 %

INFERENCE

Mostly children & teenagers likes chocolates in their families. So we should give

stress on children & tenager segment to increase market share. Young people also

using chocolates for consuming & for giving as a gift.

CHOCOLATE USERS

0%0%0%0%

34%

33%

26%

7%

Children

Teenager

Young

Old

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Form of chocolate

14%

60%

20%6%

Cookies

Bar

Wafer

Other

[3] What form of Chocolate do you like?

Cookies 14%Bar 60%Wafer 20%Other 06%

INFERENCE

The above diagram suggest that the most preferred form is bar i.e. 60%, followed by

wafer i.e. 20%, Cookies are all time favorites with 14% while other forms are

preferred to the extent of 6%.

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[4] Which Television channel you like to watch most?

STAR 100ZEE 15SONY 30CARTOON 30Others 25

T.V.CHANNEL PREFERENCE

100

15

30

30

25

0 20 40 60 80 100 120

Star

Zee

Sony

Cartoon

Others

INFERENCE

Mostly people like STAR channel. This channel is very popular among all the age

group people. SONY & CARTOON channels are also popular but not as STAR. In

other channels sports and news channels are preferred. CARTOON channel is

specially preferred by children. So it will be more beneficial top give advertisements

on STAR & CARTOON channels, it covers all the age groups.

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[5] In between what time you like to watch television?

Timings _____________

5 to 8 pm 33 %8 to 11 pm 37 %Late Night 10 %Morning 15 %Afternoon 05 %

TIMING PREFERENCE

33%

37%

10%

15%5%

5 to 8pm

8 to 11pm

Late night

Morning

After noon

INFERENCE

From the survey it was found that 37% of the respondents likes to watch T.V. after 8

pm to 11 pm. Because Mostly people belong to service class & females in the

families got their work by this time. At 5 to 8 pm 33% respondents in which especially

children watch cartoon channel & etc. so it is good to advertise on preferred

channels on these timings.

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[6] By which media you prefer to watch advertisements?

Television 67 %Hoardings 17 %

Newspapers 08 %Magazines 05 %Others (Mention) 03 %

MEDIA PREFERENCE TO WATCH

ADVERTISEMENT

0%0%0%0%0%

67%

17%

8%5%3%

Television

Hoardings

Newspapers

Megazines

Others

INFERENCE

Mostly people like to watch an advertisement through Television because most of

them belongs to service class. Children are getting attracted through advertisement

on television and hoardings. Company tries to give attractive advertisement through

T.V. and hoardings because advertisement through hoardings is less costly.

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[7] What factors effects you in a chocolate advertisement?

Brand ambassador 60Jingles 30Comedy 45Music 40

Emotions 20Others (Mention) 05

EFFECTIVE FACTORS

0

1020

30

40

50

60

70

Bran

dam

bassador

Jingle

s

Come

dy

Music

Emotion

s

Othe

rs

INFERENCE

Good Brand Ambassador generally effects peoples perception towards a product

and create an image in their mind. Mostly people likes to see celebrities like Amitabh

Bacchan, Sachin Tendulkar, M.S.Dhoni, Saniya Mirza etc. as a Brabd Ambassador

in chocolate advertisements.At the same time people like comedy, slow music &

specially children like jingles in advertisements.

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Ever Tasted

90%

10%

Yes

No

[8] Have you ever tasted Amul Chocolate?

Yes 90 %No 10 %

INFERENCE

The chart shows that 90% respondents have tasted Amul Chocolate, while still 10%

have not tried Amul Chocolates.

Amul must use proper techniques in order to cater the needs of every common man.

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9] Can you recall AMUL Chocolate advertisement?

Yes 32 % No 68 %

Advertising Effectiveness

32%

68%

Yes

No

INFERENCE

Here it was observed that only 32% respondents in the city of Ahmedabad were able

to recall Amul Chocolate advertisement. This shows how much Amul lags behind inpromotional activities and advertisement. Therefore Amul must use strong

promotional activities and advertisement in order to retain their potential consumers.

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Market share

28%

58%

13% 1%Nestle

Cadbury

Amul

Any other

[10] Which Chocolate do you like most?

Nestle 28%Cadbury 58%Amul 13%Any other 01%

INFERENCE

We can clearly gauge from the pie chart that Cadbury being on the top slot with 58%

market share dominates the chocolate market, followed by Nestle with 28% share,

whereas Amul have only 13% market share and thus lags behind.

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[11] What is the frequency of purchasing Chocolate?

Daily 17 %Weekly 22 %Fortnightly 13 %Occasionally 48 %

Frequency of purchase

17%

22%

13%

48%

Daily

Weekly

Fortnightly

Occasionally

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FINDINGS

During the survey it was found that still there are 20% people who have

not tasted Amul Chocolate.

Lake of Awareness in consumers. Many people are not know about Amul

chocolates specially children and teenagers.

As I found that the main product of Amul is Milk and company firstly wants

to capture maximum market share in milk market which is approx. 66%, after

it Amul is concentrating upon butter & cheese which has market share ofapprox. 88%, so it is not concentrating upon chocolates.

When I interviewed people then many of the people can not recall Amul

chocolate advertisement. It shows Lake of Advertisement or

advertisement is not timely given oradvertisement is not given on right

time.

In its advertisement is not using any brand ambassadorwhich attracts all

age group people like Cadbury.

There is lake ofSales PromotionalActivities i.e. free tattoo, extra weight,

toys, quiz contest etc.

Cadbury is main competitor and strategically better performer then Amul.

I find the main thing is that Amul brand name has very good image in

consumers mind and they consider it as Pure & Good Product.

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People who have tasted Amul Chocolate are not ready to purchase the

same again.

SUGGESTIONS

First and foremost Amul should take proper action in order to improveservice, because although being on a top slot in Butter and milk supplies it

does not get the sales in chocolate, which it should get.

Company should use brand ambassador which attracts each age segment

i.e. Saniya Mirza, Shaktimaan, Amitabh Bacchan, Superman, Krrish, Jadoo

etc.

Amul should give local advertisements apart from the advertisements given at

the national level. Local advertisement must mention the exclusive Amul

shops of the city.

Try and change the perception of the people through word of mouth about

Amul in advertisements, because they are the best source to reach Children

and families.

Though Amul chocolate advertisements are rarely shown on television yet

many people could recall it as per the data of research. It shows that there is

only need to give advertisement only to rememorize customers. Because

Amul is very strong brand name.

Company should launch chocolate in new attractive packing to change

image of Amul chocolate in consumers mind.

Advertisement can be done with the help of animations that attracts children

and teenagers because chocolates are consumed largely in this segment.

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CONCLUSION

The survey resulted into following conclusions :

Amul must come up with new promotional activities such that people

become aware about Amul Chocolates like Chocozoo, Bindaaz, and

Fundoo.

Quality is the dominating aspect which influences consumer to purchase

Amul product, but prompt availability of other chocolate brands and

aggressive promotional activities by others influences the consumer

towards them and also leads to increase sales.

In comparison to Amul Chocolate, the other players such as Cadbury,

Nestle, and Perfetti provide a better availability and give competition to the

hilt.

People are mostly satisfied with the overall quality of Amul Chocolate, but for

the existence in the local market Amul must use aggressive selling

techniques.

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BIBLIOGRAPHY

1. www.amul.com

2. www.amuldairy.com

3. www.google.com

4. www.marketresearch.com

5. www.dairy.com

6. Research Methodology. ( Harper W.Boyd, C. R. Kothari )

http://www.webexhibits.org/http://www.google.com/http://www.marketresearch.com/http://www.webexhibits.org/http://www.google.com/http://www.marketresearch.com/

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APPENDIX

QUESTIONNAIRE

[1] What kind of Chocolate do you eat?Branded ______ Non-branded ______

[2] Who uses chocolates in your family?

Children TeenagerYoung Old

[3] What form of Chocolate do you like?Cookies _____ Bar _____ Wafer _____ Other _____

[4] Which Television channel you like to watch most?

STAR _______ ZEE ________SONY _______ CARTOON ________Others _______

[5] In between what time you like to watch television?

Timings _____________

[6] By which media you prefer to watch advertisements?

Television HoardingsNewspapers MagazinesOthers (Mention)

[7] Which advertisement you like the most?

_______________

[8] What factors effects you in a chocolate advertisement?

Brand ambassador _______ Jingles ________Comedy _______ Music ________Others (Mention) _______

[9] Have you ever tasted Amul Chocolate?Yes _____ No ______

[10] Can you recall AMUL Chocolate advertisement?

Yes ____ No ____

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[11] What is the frequency of purchasing Chocolate?

Daily ______ Weekly _______ Fortnightly ______ Occasionally _______

[12] Which factors influence you to purchase chocolate ?

ATTRIBUTE POOR AVERAGE GOOD EXCELLENT

PRICE

SWEETNESS

PACKAGING

SOFTNESS

SCHEMES

AVAILABILITY

[13] Which Chocolate do you like most?AMUL ____________CADBURY ____________NESTLE ____________PERFETTI ____________OTHERS ____________

[14] What would you like to see in a chocolate advertisement?

__________________________________________________________________________________________________________________________________________

NAME: ___________

AGE: ___________

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THANK YOU_________________

__________________________

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Data Analysis