A Project Report On Study on the Penetration of Amul flavour milk in the retail outlets of Pune In partial fulfillment of the

award of APGP-BM (2008-2010)

Internal Mentor Adj.Prof. S. Venkat SoMT, I2IT

Submitted by Prashant Maheshwari (PGM08080889)

International Institute of Information Technology P-14, Rajiv Gandhi InfoTech Park, Hinjewadi, Pune-411057, India

Certificate
This is to certify that Mr. Prashant Maheshwari of August 2008 batch has satisfactorily completed the study entitled, Study on the Penetration of Amul flavour milk in the retail outlets of Pune in partial fulfilment of the requirements for the award of Advanced Post Graduate Program In Business Management of this Institute. Name/s and Signature/s of the Guide/s

Name and Signature of The HOD

Internal Guide

Name and Signature of The Dean Date: Place: Pune.

External Guide

Seal of the Institute

DECLARATION
I Mr. Prashant Maheshwari hereby declare that this report is the record of authentic work carried out by me during the academic year 2008-2010 in GUJARAT COOPERATIVE MILK MARKETING FEDERATION LIMITED AMUL INDIA. The Company has been located in Anand, Gujarat. Prashant Maheshwari Sign:

PREFACE
The APGP-BM programme is well structured and integrated course of business studies. The main objective of practical training at APGP-BM level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The APGP-BM programme provides student with a fundamental to strategic thinking of management. In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field. Training is an integral part of APGP-BM and each and every student has to undergo the training for 2 months in a company and then prepare a project report on the same after the completion of training. During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life. In todays globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one is true that Experience is best teacher. need to have practical knowledge, which would help an individual in his/her carrier activities and it knowledge of business and organizational functions and activities, as well as an exposure

ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for Gujarat Cooperative Milk Marketing Federation Ltd. Wagholi, Pune. It has been an enriching experience for me to undergo my summer training at AMUL, which would not have possible without the goodwill and support of the people around. As a student of INTERNATIONAL INSTITUTE OF INFORMATION TECHNOLOGY, I would like to express my sincere thanks to all those who helped me during my practical training program. Words are insufficient to express my gratitude towards Mrs. Richie Agarwal Sr. Sales Executive of AMUL, who helped me at every step whenever needed. I would also like to give my heartily thanks to Mr. Arindam Chatterjee Asst.Manager (Sales). As we know research work needs hard work, keen insight and long patience with scholarly vision based on content operation hence it becomes a humble duty to express my sincere gratitude to all my faculty members for the proper guidance and assistance extended by them. I am also grateful to my parents, friends, to encourage & giving me moral support. However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

EXECUTIVE SUMMARY

The data base of retailers across the city of Pune was compiled on the basis of listing criteria such as geographic criteria, presence of outlets in the given surveyed areas, stocking of snack food categories as well as categorization on the basis of SKUs stock such as Bakery shops, Sweets shop, General store, Convenience store, Departmental store.

The database was compiled using a total of 250 listings across 11 suburbs of Pune on the basis of the listing questionnaire a total of 172 retailers were included in the final study because only 172 retailers kept flavour milk and remaining are not interested in flavour milk business.

A questionnaire was administered to 172 retailers over period of one month. It was difficult to elicit a response from about 20% of the retailers. A retailer has fear to lose its business & not provide the correct information. As a convenience most of the time retailers visited from 2:00pm to 4:00pm because at that time retailers are free and inflow of customers are very less.

The questionnaire was designed with the purpose of eliciting response across various population parameters such as food stocked, presence of flavour milk, duration in the business, awareness of flavour milk brands, current sale of flavour milk in relation to other brands, market freshness, distributors service, salesman visit, frequency of the salesman visit, stocking mechanism, ordered stock supplied on time, storage condition, distributor offer any schemes, satisfaction with distributors services, cues provided by distributors on point of sale and point of purchasing and factors that influence the stocking decision. The sampling method used was area sampling & convenience sampling.

TABLE OF CONTENTS

TOPICS List of tables List of figures/charts 1. Industry Profile 2. Company Profile 3. Research Methodology
4. Data Representation & Interpretation

PAGE NO. 1 2 3 5 9 12 25 26 27 28 29

5. Findings 6. Recommendation 7. Conclusion 8. Bibliography 9. Annexure

LIST OF TABLES Page No.

Tab. 4.1 Retail outlet surveyed 12

Tab. 4.2 Retail outlet which kept flavour milk Tab. 4.3 Outlets kept flavoured milk (years) Tab. 4.4 Penetration of flavour milk companies in retail outlets Tab. 4.5 Avg. Monthly sales (units) Tab. 4.6 Salesman visit the counter Tab. 4.7 Frequency of salesman visit Tab. 4.8 Stock supplied on time Tab. 4.9 All ordered stock supplied Tab. 4.10 Distributor of any scheme Tab. 4.11 Types of packs available Tab. 4.12 Effectiveness of Amul distribution channel Tab. 4.13 Factors affecting stocking decisions

13 14 15 16 17 18 19 20 21 22 23 24

LIST OF FIGURES/ CHARTS Page No.

Fig. 4.1 Retail outlet surveyed Fig. 4.2 Retail outlet which kept flavour milk Fig. 4.3 Outlets kept flavoured milk (years) Fig. 4.4 Penetration of flavour milk companies in retail outlets Fig. 4.5 Avg. Monthly sales (units) Fig. 4.6 Salesman visit the counter Fig. 4.7 Frequency of salesman visit Fig. 4.8 Stock supplied on time Fig. 4.9 All ordered stock supplied Fig. 4.10 Distributor of any scheme Fig. 4.11 Types of packs available Fig. 4.12 Effectiveness of Amul distribution channel 12 13 14 15 16 17 18 19 20 21 22 23

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1. INDUSTRY PROFILE
1.1 FOOD INDUSTRY In the World, India is the second largest producer of food after China. The country has achieved the potential of being the biggest with the food and agricultural sector. Indian Food Industry is considered to be occupying about two thirds of the total Indian retail market. Food and food processing technologies are developing gradually. In addition to that modern skills and equipment have taken place in industries such as Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen Food, Refrigeration and Thermo Processing. Among the sub-sectors of Indian Food Industry, fruits and vegetables industry have achieved the second largest producer of vegetables in the world next to China and accounts for about 15 percent of the world`s production of vegetables. Vegetables are typically grown in India in field conditions. The current production level in the Indian subcontinent is over 71 million MT and the total area under vegetable cultivation is around 6.2 million hectares. Vegetables such as potato, tomato, onion, cabbage and cauliflower report for around 60 percent of the total vegetable production in the country. Meat and poultry is one of the fastest growing segments of the agricultural sector in India at present. In this industry, the production of eggs and broilers has been rising at a rate of 8 to 10 percent per annum. India is the fifth largest egg producer and the eighteenth largest producer of broilers in the world. Fisheries also have gained popularity as a major Indian Food Industry. India is the third largest producer of fish in the world. Milk and milk products have also gained popularity. India is the largest producer of milk in the world. In India both the production and consumption of milk and its derivatives are traditionally high in the country. Amul is regarded to be the largest food product business in the country. Plantation Industry is among the prominent Indian Food Industry. There are about 9500 spices from medicinal and aromatic plants that are produced in the country. India is the
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largest producer, consumer and exporter of spices and the major spices being produced include black pepper, cardamom, ginger, garlic, turmeric and chilli. In the Indian food industry, the consumer product groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods are also on a high rise. They form the most promising sub-sectors of Indian food industry. Beverages are also included in the industries. Besides these, grain processing and Grain-milling has a position. In spite being one of the major food producers in the world, India is credited for less than 1.5 per cent of international food trade. Furthermore, the Indian food industry sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the start of year 2000. The Indian food industry has the highest number of plants approved by the US Food and Drug Administration (FDA) outside the USA. Under the food industry, Dairy product is very important part of food processing. Dairy processing is acting good role in India. 1.2 DAIRY PROCESSING India ranks first in the world in terms of milk production. Indian production stands at 91million tones growing at a CAGR of 4 per cent. This is primarily due to the initiatives taken by the Operation flood programmes in organizing milk producers into cooperatives; building infrastructure for milk procurement, processing and marketing and providing financial, technical and management inputs by the Ministry of Agriculture and Ministry of Food Processing Industries to turn the dairy sector into viable selfsustaining organized sector. About 35% of milk produced in India is processed. The organized sector (large scale dairy plants) processes about 13 million tonnes annually, while the unorganized sector processes about 22 million tonnes per annum. In the organized sector, there are 676 dairy plants in the Cooperative, Private and Government sectors registered with the Government of India and the state Governments. India has a unique pattern of production, processing and marketing/consumption of milk, which is not comparable with any large milk producing country. Approximately 70 million rural households (primarily, small and marginal farmers and landless labourers ) in the country are engaged in milk production. Over 11 million farmer are organized into about 0.1 million village Dairy Cooperative Societies (DCS) (about 110 farmers per DCS).

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The cumulative milk handled by DCS across the country is about 18 million kg of milk per day. These cooperatives form part of a national milk grid which links the milk producers throughout India with consumers in more than 700 towns and cities bridging the gaps on account of seasonal and regional variations in the availability of milk.

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2. COMPANY PROFILE
2.1 ABOUT AMUL Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.79 million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example of a co- operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world.

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.

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1504 million (2008- 09). Currently Amul has 2.79 million producer members with milk collection average of 3.05 billion litres per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets. Other potential markets being considered include Sri Lanka.

2.2 ABOUT GCMMF

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

GCMMF markets and manages the Amul brand. From mid-1990's Amul has entered areas not related directly to its core business. Its entry into ice cream was regarded as successful due to the large market share it was able to capture within a short period of time primarily due to the price differential and the brand name. It also entered the Pizza business, where the base and the recipes were made available to restaurant owners who could price it as low as 30 rupees per pizza when the other players were charging upwards of 100 rupees.

Members: No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total - 2008-09): Milk Drying Capacity: Cattle feed manufacturing Capacity:

13 district cooperative milk producers' Union 2.79 million 13,328 11.22 million litres per day 3.05 billion litres 626 Metric tonnes per day 3500 Metric tonnes per day

Milk collection (Daily Average 2008-09): 8.4 million litres

Dr. Verghese Kurien, former chair man of the GCMMF, is recognised as the man behind the success of Amul. On 10 Aug 2006 Mr. Parthi Bhatol, chairman of the Banaskantha Union, was selected chairman of GCMMF.

2.3 PRODUCTS

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Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, flavoured milk, basundi, Nutramul brand and others. In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade.

In August 2007, Amul introduced Flavour Koko, a chocolate milk brand extending its product offering in the milk products segment. Other Amul brands are Amul Flavour, a low calorie thirst quenching drink, Masti Butter Milk, Flavour Cafe, ready to drink coffee and India's first sports drink Stamina.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for 2007.

2.4 MAJOR ACHIEVEMENTS

GCMMF bags APEDA AWARD for 11th year in a row. Amul Pro-Biotic Ice-cream Gets No. 1 Award at World Dairy Summit. Ramakrishna Bajaj National Quality Award-2003. Amul - The Taste of India (GCMMF) Receives International CIO 100 Award For resourcefulness. Rajiv Gandhi National Quality Award 1999.

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3. RESEARCH METHODOLOGY
3.1 TITLE OF THE STUDY A study of the penetration of Amul flavour milk in the retail outlets of Pune. 3.2 OBJECTIVE OF THE RESEARCH

To find out the penetration of Amul flavour milk in the retail outlets of Pune with reference to retailers who keeps such products. To find out the factors that influences the stocking decision of retailers of flavour milk beverages product in Pune. To find out the effectiveness of distributors in their corresponding areas of Pune.
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3.3 PROBLEM STATEMENT There has been a drop in the percentage of retail outlets in Pune where Amul already had penetration for its beverages products, this study is intended to find out the percentage of outlets where penetration of Amul flavoured milk beverages products exists & doesnt exist and also to find out the factors that influence the stocking decision of retailers of flavour milk beverages products. 3.4 SCOPE OF THE STUDY The scope of the study is limited solely to the markets visited by the researcher for the purpose of research, this may hence not be a total reflection of the penetration of Amul products for all the retail outlets in Pune. 3.5 SOURCES OF DATA 3.5.1 Primary sources The primary data was collected through questionnaires. They were filled using the scheduled method of data collection by the researcher. Questionnaire in the project consists of: Multiple choice questions Dichotomous Rating scale

3.5.2 Secondary sources The secondary sources were used only for collecting general information regarding the outlets, they were however not used for analysis. 3.6 RESEARCH DESIGN A Research design specifies the methods and procedures for conducting a particular study. It is a map (or) blue print to which the research is to be conducted. Descriptive research design has been considered as a suitable methodology for present study and for data analysis. 3.7 SAMPLING DESIGN
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The sampling design used was area and convenience sampling, which is a probability and non-probability sampling method. The convenience factors were the availability and approachability of the respondents. The area sampling involves in study of the geographical subdivisions. 3.8 POPULATION All types of outlets that stock and sell food products in the markets. The outlets have been classified as follows

Bakery shops Sweets shop General store Convenience store Departmental store

3.9 PLACES OF STUDY The study was conducted in the retail outlets in and around Pune in the following areas J.M Road F.C Road Aundh Aundh gaon Baner Shivaji Nagar Khadki S.B Road Pashan Pashan gaon Pashan-Sus Road

3.10 MEASUREMENT

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The research objective requires the researcher to find out the penetration of Amul flavour milk beverages products with reference to retailers who keep such products. For this the following relevant data were collected

Amul product sold by the retailers If sold, then which of the competitors complimentary products, has a higher penetration in that outlet. Strategies adopted by the company and distributors that influence the stocking decision of retailers.

3.11 LIMITATIONS OF THE RESEARCH Limited time available for interviewing the respondents . As a result of this

Sometimes I face language problem for which I tried to make them understand. Non-cooperative approach and rude behaviour of the respondents. Sometimes it is difficult to collect the information due to rainy season. Sometimes retailers hesitate to give full information in fear of losing their business.

3.12 ANALYSIS TECHNIQUES Quantitative analysis is performed using the data collected at each outlet to estimate the presence of Amul products. Tools Utilized Percentage Analysis Graph Chart

4. DATA REPRESENTATION & INTERPRETATION

4.1 Type of Outlet visited? Type Bakery Of outlet Shop No. of 46 Outlet Sweet shop 50 General store 86 Table 4.1 Convenience store 30 Departmental store 38 Total 250

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The above table shows that out of 250 outlets surveyed; there were 46 bakery shops, 50 sweet shop, 86 general stores, 30 convenience stores, and 38 departmental stores.

Retailoutlet surveyed
Departm ental store Convenience store General store Sweet shop Bakeryshop

15.20% 12% 34.40%

Retail outlet surveyed

20% 18.40%

Figure 4.1 Of all the retail outlets surveyed, 18.4% bakery shops, 20% sweet shop, 34.4% general stores, 12% convenience stores, and 15.2% departmental stores. This shows majority of outlets in Pune are general stores where company can improve their penetration followed by sweet shop and bakery shops.

4.2 Do you keep flavour milk? Type of outlet Bakery shop Sweet shop General store Convenience store Flavour milk Yes No 30 16 27 23 66 20 17 13
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Total 46 50 86 30

Departmental store Total

32 172 Table 4.2

6 78

38 250

The table above shows that out of 250 retail outlets, 172 outlets kept flavour milk.

Retail outlets which k flavour m ept ilk

31.20%
Yes

68.80%

No

Figure 4.2 Above graph shows that majority of the outlets keep flavour milk in Pune this shows company has lots of scope to penetrate market and improve business. In remaining 31.2% outlets Company can use different strategy for penetration.

4.3 How long have you kept flavoured milk? Period Outlet Less than 1yr 53 1yr-3yr 87 Table 4.3 More than 3yr 32 Total 172

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The Outlets table shows that out of 172 outlets, 53 are those which are selling the product less than 1yr, 87 are selling from 1yr-3yr and 32 are selling from more than 3yr.

Outlets K flav ept ouredm ilk(years)

50.58%

30.80% 18.62%
Outlets kept flavoured milk ( years)

Lessthan 1yr

1yr-3yr

More than 3yr

Figure 4.3 Overall retail outlet surveyed, 30.80% are those outlet which have this product less than 1years, 50.58% have 1-3 years and 18.62% have more than 3 years. Most of the retailers are in flavour milk business 1yr to 3yr this shows that demand of the flavour milk increases from the past 2yrs.

4.4 Which companies flavour milk do you stock?

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No. of outlet kept flavour milk / Company Bakery shop Sweet shop General store Convenience store Departmental store Total (172) (30) (27) (66) (17) (32) Table 4.4

Amul 17 12 29 7 19 84

Others 8 7 23 6 4 48

Both (Amul & Others) 5 8 14 4 9 40

The total outlet kept flavour milk are 172, out of 172, 84 stock Amul flavour milk, 48 stock other brands (Urja, Madhur, Status, e.t.c) flavour milk and 40 stock both Amul & other brands.

Figure 4.4 The graph defines that Amul penetrated in 48.8% outlet but 23.2% outlet where both Amul& others local brands are presented, while no penetration in 28% outlets. This shows Amul has the maximum penetration level as compare to other local brands but company can improve its penetration level by acquiring the remaining 28%.

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4.5 What is avg. Monthly sale of flavour milk?

No. of bottles& tetra packs(units) No. of outlets

<100 22

100-200 45

201-300 56 Table 4.5

301-400 26

>400 23

Total 172

Out of total no. of outlets, 22 outlets sells less than 100 units , 45 outlets sells 100-200 units,56 outlets sells 201-300 units,26 outlets sells301-400 unit and 23 outlets sells more than 400 units . (1box=24 units)

Avg MonthlyS . ales ( in units)

32.55% 26.16%

15.11% 12.70%

13.37%

Avg. Monthly sales (units)

< 100

100-200

201-300

301-400

> 400

Figure 4.5 The graph defines that 12.7% of outlets sales less than 24 units weekly, 26.16% outlets sales 24-48 units weekly, 32.55% outlets sales 49-73 units weekly, 15.11% outlets sales 7498 units & 13.37% outlets sales more than 98 units weekly. More number of outlets sells good units of flavour milk.

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4.6 Distributor salesman visits the counter? Distributor salesman visit the counter No. of outlets Table 4.6 Out of 172 outlets, distributor salesman visits the 124 retail outlets but not visited 48 outlets which are also in flavour milk business. Yes 124 No 48 Total 172

Figure 4.6 The graph shows that 72% of outlets are been visited by the distributor salesman and where 28% are not visited. We can conclude that salesman visits majority of outlets but still there is some scope to visit remaining 28% outlets which can improve business for company.

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4.7 What is the frequency of salesman visits? Frequency of salesman visits No. of outlets Weekly 47 Fortnightly 34 Table 4.7 There are124 outlets where distributor salesman visits the counter but only 47 outlets they visited weekly, 34 outlets visited fortnightly and 43 outlets visited monthly. Monthly 43 Total 124

Figure 4.7

The graph shows that 38% of outlets are been visited by the distributors salesman weekly, but about 34.60% of the outlets monthly visited by the distributor salesman affect the stocking decision of retailer and market penetration.

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4.8 Stocks supplied on time? Stocks supplied on time No of outlets Yes 46 Table 4.8 There are 124 outlets where the distributor supplied the stock, out of that only 46 outlets get the stock on time, 78 outlets dont get it on time. No 78 Total 124

Figure 4.8 The graph shows that 63% of outlets dont get there stock on time and only 37% of the outlets get there stock. Company and distributors has to work on this area where the company has a fear to lose market share because if the supply is not in time then it affect stocking decision of the retailer.

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4.9 All ordered stock are supplied? All Ordered Stocks supplied No. of outlets Yes 56 Table 4.9 There are 124 outlets where the distributor supplied the stock, out of that only 56 outlets get the all ordered stock, 68 outlets dont get the all ordered stock it. No 68 Total 124

Figure 4.9 Most of the time distributor not able to supply all ordered stock . This shows poor performance in distribution channel and because of this most of the retailers keep other brand to fulfill their demand.

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4.10 Does distributor offer any scheme? Does distributor offer any scheme No. of outlets Yes 73 Table 4.10 Above table shows that scheme offered in more than half outlets which are good sign for company but still there are some retailers scheme is not offered by the distributor which can create negative image of company and force them to switch to other local brands. No 51 Total 124

D istributorofferany schem e

41.20% 58.80%

Yes No

Figure 4.10 Only 58.8% of the retailers are getting the schemes from the distributor and rest of the retailers are not aware about the schemes. As the schemes changes periodically, this motivates the retailers for stocking the product.

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4.11 What kind of flavoured milk packs available with you? Type of packs available No. of outlets Glass Bottle 58 Tetra pack 10 Table 4.11 There are 124 outlets where the distributor supplied the stock, in 58 outlets glass bottle packing are available, 10 outlets tetra packs are available and in 56 outlets both packing are available. Both 56 Total 124

Figure 4.11 Above Pie chart shows that most of the retailers like to keep bottles due to high margin and almost same number of retailers keeps both tetra pack and bottles. This means that tetra packs are not preferred by the retailers due to low margins and high market price.

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4.12 How effective do you feel Amul distribution channel? Effectiveness of Amul distribution channel No. of respondents

Good 18

Average 78

Poor 74

Excellent 2

Total 172

Table 4.12 About 78 outlets owners feel that amul distribution channel is average but 74 outlets also feel that it is poor.

Figure 4.12 Above graph shows that almost same number of retailers thinks that distribution channel is poor and average which is bad sign for company and can be a factor for losing business and decrease sales.

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4.13 Which factors given below influence youre stocking decision? Factors Consumer Preference Packing Offers Promotional activities Margins Replacement Distribution channel Rank 1
105 7 8 10 30 4 8

Rank 2
25 12 10 17 7 9 92

Rank3
30 6 17 3 80 3 33

Ranks Rank4
9 12 20 89 21 10 11

Rank5
3 17 86 18 17 11 20

Rank6
0 33 20 15 16 88 0

Rank7
0 85 11 20 1 47 8

Table 4.13 By the help of Kendalls coefficient test there is an agreement among the respondents. Consumer preference is the major factor & distribution channel, margins are other main factors which are responsible for the stocking decision of the retailer.

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5. FINDINGS OF THE STUDY

As per the analysis the following outcome may be considered. 1. According to outlets surveyed, most of the outlet kept flavour milk but there are some of the outlets which are not interested. 2. Amul is available in maximum outlets in the comparison of other local brands. But from the past 1yr sales has been decreased due to increase in local brands. 3. At present there are more than 8 local brands (Urja, Madhur, Status, Dr.thakar) available in the surveyed areas. 4. There are some outlets which kept local brands and some of outlets kept both Amul & other brands but proportion of Amul are less than the local brands.
5. On the concern of distribution channel, most of the surveyed retailers agree that Amul

has average distribution channel. 6. Amul divide its distribution channel for different product categories. It has 4 different distributions channels :

Line-A( Butter, Ghee, Cheese, Chocolate, Cream, etc) Line-B( Flavour milk, Butter milk , Lassi) For Fresh Packaged Milk For Ice cream

7. Line B distributor of Amul in surveyed areas are not working well. 8. Amul brand is so strong that retailer has to keep its products instead of no replacement

& low margins as compare to local brands.

9. Factors that influence the retailers stocking decision:

Consumer preference

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Distribution in supplying the products regularly Promotional strategies Margins Replacement Packaging of the product

10. There is sufficient demand in the market for Amul flavour milk but due to improper distribution company not able to fulfil demand which results decrease in sales.

6. RECOMMENDATIONS

1. Amul has a relatively good distribution network, but still company is not able to fullfill the daily demand of outlets . Here company should give emphasis on the regular supply of product in outlets.

2.Supply should be regular to all the outlets including those that lie in the pocket roads and not just in the outlets which lie on the easily accessible routes.

3.Since the penetration of Amul products in all the channels is average , so the company ought to adopt strategy like supplying free menu cards, which has the company logo printed on them, this will not only increase the penetration of the product in the outlets , but also improve the market sales.

4. The company give instruction to its distributors to supply all products range to the retailers, so that the product penetration in the outlets increases in terms of percentage of

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units stocked at a time in the outlet, this would also look appealing to the customer who would instead like to pick up the product at first glance.

5. The Company has to evaluate the performance of distributors regularly to make the distributors channel effective.

6.Given the fact that margin offered to the retailer is not similar in the case of the competitors product. For this fact, the company should give some other benefits to the retailers to encourage them.

7. Company should give proper instructions to distributors about packaging, expiry date before selling them to retailers.

8. Company should also give the replacement offer to that outlet which is running with small business.

9. Company has to focus on 4Ps of marketing mix (Product, Place, Price, and Promotion) in which promotion & place are two major factors where the company is lagging behind.

7. CONCLUSION
As Amul is very big organization and market leader in dairy products. It has maximum market share in Milk, Butter and Cheese, which are its main/core products. As Amul is a co-operative organisation but beverage industry is a profitable industry we cant ignore it. With the help of research, company can find out its week areas and rectify mistakes to increase its market share.
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The survey resulted into following conclusions:

As the Amul has highest market share in the flavour milk categories in comparison to other local brands but according the previous year data Amul has around 60% of market share solely occupied but this year it decreases to around 48%.

For all the companies distribution channel is the backbone. Amul has its good distribution channel but from time to time company has to evaluate its distributors to make the distribution channel effective.

Amul is lagging behind in proper use of 4Ps of marketing mix (Product, Place, Price, and Promotion). As Amul is the oldest brands of our country, consumer always 1 st asks for the Amul products if its not available then it shift to other brands this shows the customer loyalty towards the brand.

Amul is the co-operative society so its for the people (farmers), to the people (consumers), by the people (management).

8. BIBLIOGRAPHY 1. www.amul.com 2. www.amuldairy.com 3. www.google.com

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4. www.marketresearch.com 5. www.dairy.com
6.

Research Methodology (C. R. Kothari).

ANNEXURE QUESTIONNAIRE
I am a student of APGP-BM from INTERNATIONAL INSTITUTE OF INFORMATION TECHNOLOGY, PUNE conducting a survey on the Penetration of Amul flavour milk in the retail outlets of Pune. Name of Outlet....... 1. Type of Outlet visited?
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Location of Outlet.....

(a) Bakery shop (b) Sweets shop (c) General store (d) Convenience store (e) Departmental store 2. Do you keep flavour milk? Y/N 3. How long have you been into flavour milk business? (a) < 1year (b) 1-3 years (c) >3 year 4. Which company flavour milk do you stock? 1. Amul 2.Others (Please mention).............. 3. Both (Amul & Others) 5. How many units of Amul flavour milk do you sell i.e. other brands weekly? (a) <24 (b) 24-48 (c) 49-73 (d) 74-98 (e) >98 6. Distributor salesman visits the counter? Y/N 7. What is the frequency of salesman visits? (a) Weekly (b) Fortnightly (c) Monthly 8. Stocks supplied on time? Y/N 9. All ordered stock are supplied? Y/N 10. Does distributor offer any scheme? Y/N If yes, what scheme? ......................................................................................... 11. What kind of flavoured Milk packs available with you? (a) Glass Bottle (b) Tetra pack (c) Both 12. How effective do you feel Amul distribution channel? (a) Good (b) Average (c) Poor (d) Excellent

13. Which factors given below influence youre stocking decision? Rank the following

factors from (1 7), where 1 is the most important and 7 is the least important. 1. Consumer Preference ------2. Packing ------3. Offers ------4. Promotional effectiveness ------5. Margins ------6. Replacement ------7. Distribution channel -------

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