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Shree Chanakya Education Society's INDIRA SCHOOL OF BUSINESS STUDIES, PUNE POST GRADUATE DIPLOMA IN MANAGEMENT - (pGDM) (Mktg -Splz) End-Semester Examination - December 2012 Semester- ill SUBJECT: Sales Management Code: 304M Total Marks: 60 Duration: 2~ hours Note: 1. Q.1 is compulsory. 2. Attempt any Four from remaining Five Questions 3. All Question carry equal marks. Q.1 Amul Kitchen: 12 Marks Gujarat Co-Op Milk Marketing Federation (GCMMF) has four flagship products, like Amul Milk, Amul Butter, Amul Ice-cream &Amul infant milk powder or dairy-whitener. Liquid milk contributes 40% to its revenue while other three bring remaining 60%.All these brands have grown 10-20% year on year for last 5 years.Amul' s new launch includes milk in tetra pack, paneer, fresh fruit lassi&gajarkahalwa.Amul wants to transform every kitchen to an Amul Kitchen, i.e., from milk to meals& grow sales from Rs 9,000 cr(201O) to Rs 30,000cr by 2020. Amul Pizzas venture is big flop, but Amul wanted to sell its cheese through pizzas. Now it is concentrating on core business ... Right now Amul handles only 3% of total organized milk production of India i.e., 92 lakh liters per day& by 2020 it want to process 200 lakh liters of milk per day. During 1995 Amul introduced Amul ice-cream. Amul offered very attractive prices, nearly 80% lower, which resulted in breaking monopoly of Kwality Walls. Till that time ice- cream was overpriced& eating ice cream was luxury. Amul introduced realistic pricing to the market making ice cream affordable to the common man. Similarly when Arnul launched AmulMithaiMate( sweetened condensed milk), Nestle was selling the product at Rs 58. Amullaunched its brand at Rs 25 & broke the monopoly. Amul is market leader across India. Its strategy is to sell dairy whitener in places where it do not sell liquid mill. It has 88% market share in butter, 63% share in infant milk & 45% share in milk powder. Challenges in front of Amul: (i) India's packaged milk market size is Rs 25, ooocrores, in which Amuls share is 26%. Despite market leader, it has to compete with 5 MNC brands at national level like Britannia, Reliance, Nestle, Mahanandetc& around 25 regional brands at district level. (ii) (ii)As a policy decision, GCMMF never spends more than I% on brand building. More over the compulsion is to promote all brands together in a campaign like Taste of India. Individual brand promotion is not possible because of budget problem. For example, for year 2011, money available for promotion could be around Rs 90-100cr only. Regional players & MNCs are spending around 6-7% on promotion & brand building. Questions: a) Do you think Amul will able to achieve its sales target ofRs 30,000cr by 2020? b) Explain Amul's pricing strategy for ice-creams & condensed milk. c) From data provided in case, compute sales for four major brands of Arnul.
