Sales & Distribution of Amul

A PROJECT REPORT 1. PROMOTION OF AMUL FRESH MALAI PANEER IN INSTITUTIONS 2. PENETRATION OF AMUL BUTTERMILK AND AMUL LASSEE 3. BRAND AWARENESS OF AMUL THROUGH AMUL VIDYASHREE AND AMUL VIDYABHUSHAN AWARDS Submitted By BHUSHAN PERSINGWAR Under The Guidance Of Prof. H. S. BARARI A PROJECT SUBMITTED IN PART OF COMPLETION OF MMS SUMMER PROJECT TO THE Chetana’s R. K. Institute of Management & Research Bandra(East),Mumbai 400 051 JULY 2010 DECLARATION This is to declare that the study presented by me to Chetana’s R. K. Institute of Management and Research, in part completion of the MMS Summer project under the title 1.

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Promotion of amul fresh malai paneer in institutions 2. Penetration of amul buttermilk and amul lassee 3. Brand awareness of amul through amul vidyashree and amul vidyabhushan awards has been accomplished under the guidance of Prof. H. S. Barari. Signature Bhushan Persingwar CERTIFICATE This is to certify that the study presented by Bhushan Persingwar to the Chetana’s R. K. Institute of Management and Research, in part completion of the MMS summer project under the title 1. Promotion of amul fresh malai paneer in institutions 2. Penetration of amul buttermilk and amul lassee 3.

Brand awareness of amul vidyabhushan awards through amul vidyashree and amul has been done under the guidance of Prof. H. S. Barari. The project is in the nature of original work that has not so far been submitted for any program of Chetana’s R. K. Institute of Management and Research or any other University / Institute. References of work and related sources of information have been given at the end of the report. Prof. H. S. Barari Prof. Firdos Shroff (Director)

ACKNOWLEDGEMENT I would like to express our sincere gratitude towards Mr. Sameer Nagale (sales Manager), Mr. Arindam Chatterjee (DIC) of GCMMF (AMUL) for the guidance provided. This project would not have reached its end without the supervision and direction which they gave. I thank them for spending their valuable time and energy in guiding me throughout this project and for certifying me of my successful completion of the project report. I take this opportunity to express my deep gratitude to Prof. H. S. Barari who has always been there to guide me throughout this project report.

I thank the Department of Marketing Management for offering me this opportunity. Table of contents Sr. No. | Title| Page Number| 1. | Dairy Industry Profile 1. 1 The world dairy situation 1. 2 Indian Dairy situation 1. 3 Co-operative unions | 233| 2. | The Organization 2. 1 Introduction and History 2. 2 Amul secret of success 2. 3 GCMMF overview 2. 4 Organization structure 2. 5 Production Function 2. 6 Distribution Network 2. 7 Managing Competition 2. Advertising 2. 9 Sales turnover 2. 10 Area of Operatoins 2. 11 Facts 2. 12 Symbol 2. 13 List of Amul products| 681011131315151617181819| 3. | Title-1: Promotion of Amul Fresh Malai Paneer Launching of new product 3. 1 Introduction 3. 2 New product launch check list 3. 3 Project proposal 3. 4 Objective 3. 5 USP of Amul fresh malai paneer 3. 6 Competitors 3. 7 Promotion through sampling 3. SWOT 3. 9 Data anaylsis and representation 3. 10 Findings & Observation 3. 11 Suggestion | 2325262729 293031333737 | 4. | Title-2: Penetration of amul masti Buttermilk & amul Lassee (1 ltr tetra pack) 4. 1 Amul Beverages 4. 2 Project proposal 4. 3 Objectives 4. 4 SWOT 4. 5 Findings 4. 6 Recommendations| 394041424345| 5. | Title-3: Brand Awareness of Amul though ‘Amul vidhya shree & vidhya bhushan awards’ 5. Objective| 4649| 6. | Annexure 6. 1 Amul vidhya bhushan award (12th std. ) 6. 2 Amul vidhya shree award (10th std. )| 5051| 7. | Bibliography| 52| INDUSTRY & COMPANY PROFILE Dairy Industry Profile 1. 1 The World Dairy Situation According to a report published by International Dairy Federation (IDF) on the World Dairy Situation 2007 the worldwide milk production is expected to grow at a slower pace in 2007-08 and is estimated at 655 million tonnes, only 9 million tonnes more than the production of 2006 – 2007. The strongest growth would be in Asia, notably in China and India.

Milk production is projected at 36 million tonnes in China and 94. 60 million tonnes in India. India would continue to be the largest milk producer, followed by the US, with projected production of 82. 60 million tonnes. Major changes are not expected in dairy products basket. World butter production increased for two years, in 2004 and 2005 and then declined in 2006-07. It is expected to decline again in 2007-08. Industrial cheese production is continuing to grow. The major cheese producing regions are Europe and North America and both areas are expected to have a faster growth rate.

The production of condensed and evaporated milks is subject to a declining trend for many years in the developed market. It has been replaced by many other dairy products, especially liquid milks of UHT type, coffee cream and coffee whitener including some of the non-dairy origin. World trade in dairy products after a period of relative stagnation, started recovery in the second half of 2006-07 and it continued in the first half of 2007-08. The recovery is due to prosperity resulting from economic demand. Export of butter and butter-oil recovered in 2006-07 and this recovery continued in early 2007-08.

The total volume of the world trade in cheese has accelerated and this trend is likely to continue in the year 2008. The outlook for the trade in dairy commodities for 2007-08 appears bright. However, since the new market equilibrium, in respect of prices has to be found, the question is whether international trade in dairy products will continue its growth in 2007-08 at the same momentum as in previous years. Because of the price situation in 2007-08, one may ask whether demand can follow the expected trends, but it would be premature to expect stagnation in the trade.

In established markets, the potential for demand to reduce slightly can release the additional supplies, which are needed to maintain the growth of trade. 1. 2 Indian Dairy Industry — A Profile India’s dairy sector is expected to triple its production in the next 10 years in veiw of expanding potential for export to Europe and the West. Morever with WTO regulations expected to come into force in coming years all the develop countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk product sector.

Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the US’ 63 cent. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of those milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs. 83, 500 crores by year 2010.

This growth is going to come from the greater emphasis on the processed food sector and also by increase in the conversation of milk into milk products. By 2010, the value of Indian dairy produce is expected to be Rs 10, 00,000 million. Presently the market is valued at around Rs7, 00,000mn. 1. 3 Co – Operative Unions Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice. The system succeeded mainly because it provides an assured market at remunerative prices for producers’ milk besides acting as a channel to market the production enhancement package.

What’s more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. Recently the Indian cooperative movement got a much needed facelift. With competition snapping at its heels, the sector which has been governed by arcane laws until the recent past will see a special provision inserted in the companies Act, 1956.

All the cooperative unions will be rechristened cooperative companies; they will come under the purview of the registrar of companies, instead of the registrar of cooperatives. Dairy cooperatives account for the major share of processed liquid milk marketed in the country. Milk is processed and marketed by 170 milk producer’s cooperative unions, which federate into 15 state co-operative milk marketing federations. The dairy board’s programmes and activities seek to strengthen the functioning of dairy cooperatives, as producer-owned and controlled organizations.

NDDB supports the development of dairy co-operatives by providing them financial assistance and technical expertise, ensuring a better future for India’s farmers. Over the years, brands created by cooperatives have become synonymous with quality andvalue. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence. -:Some of the major dairy cooperative federations include:- Andhra Pradesh Dairy Development Co-operative Federation Ltd (APDDCF) • Bihar State Co-operative Milk Producers Federation Ltd (COMPFED) • Gujarat co-operative Milk Marketing Federation Ltd (GCMMF) • Himachal Pradesh State Cooperative Milk Producers Federation Ltd (HPSCMPF) • Karnataka Cooperative Milk Producers Federation Ltd (KMF) • Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF) • Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF) • Maharashtra Rajya Sahkari Maryadit Dugdh Mahasangh (Mahasangh) • Orissa State Cooperative Milk Producers Federation Ltd (OMFED) • Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF) • Punjab State Cooperative Milk Producers Federation Ltd (MILKFED) • Rajasthan Cooperative Dairy Federation Ltd (RCDF) • Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF) The Dairy Cooperative Network • Includes 170 milk unions • Operates in over 338 districts • Covers nearly 1,08,574 village level societies Is owned by nearly 12 million farmer members. Apart from making India self sufficient in milk, these dairy co-operatives have established our country as the largest milk-producing nation in the world. The Organization 2. 1 Introduction & History In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 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 40’s, 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 the prices of milk and the farmers were forced to accept it without uttering a single word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement.

Sardar Patel advised the farmers to sell the milk on their own by establishing a cooperative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk. These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked tobuy milk from the union.

However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt. , the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand. Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr.

Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Cooperative 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 every day. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk every day. Since milk was a perishable commodity it becomes difficult to preserve milk for a 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 New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr. Rajendra Prasad, 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. 2. 2 Amul Secret Of Success The system succeeded mainly because it provides an assured market at remunerative prices for producers’ milk besides acting as a channel to market the production enhancement package. What’s more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good.

Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere. Amul has been able to: * Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations. * Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. * Provide a support system to the milk producers without disturbing their agro-economic systems. * Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers. * Even though, growing with time and on scale, it has remained with the smallest producer members.

In that sense, Amul is an example par excellence, of an intervention for rural change. The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial 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. Amul (Anand milk union ltd. ) is based on four hands, which are coordinated with each other. The actual meaning of this symbol is co-ordination of four hands of different people by whom this union is at the top position in Asia. First hand is of farmers, without whom the organization would not have existed. * Second hand is of processors, who process the row material (milk) into finished goods. * Third hand is of marketer, without whom the product would have not reached the customers. * Fourth hand is of customers, without whom the products would have not carried on. 2. 3 GCMMF Overview Gujarat Cooperative Milk Marketing Federation (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.

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest Organisation in FMCG industry engaged in marketing of milk & milk products under the brand names of AMUL and SAGAR with an annual turnover exceeding Rs 5000 crores. GCMMF is a unique organisation. It’s a body created by Farmers, managed by competent professionals serving a very competitive and challenging consumer market. It is a true testimony of synergistic national development through the practice of modern management methods . Vision GCMMF will be an outstanding marketing organization, with specialization in marketing of food and dairy products both fresh and long life with customer focus and IT integrated.

The network would consist of over 100 offices, 7500 stockiest covering at least every Taluka. Head quarter servicing nearly 10 lakh outlets with a turnover of Rs. 10,000 Cr and serving several co-operatives. GCMMF shall also create markets for its products in neighboring countries . Mission GCMMF endeavor to satisfy the taste and nutritional requirements of the customer of the world through excellence in the marketing by our committed team. Through co-operative networking, we are committed to offering quality product that provides best value for money. 2. 4 Organization Structure Organization Structure is divided into two parts: • External Organization Structure • Internal Organization Structure • External Organization Structure

External Organization Structure is the organization structure that affects the organization from the outside. GCMMF is unit of Gujarat Milk Marketing Federation, which is a co-operative organization. The villagers of more than 10000 villages of Gujarat are the bases of this structure. They all make village milk producers union, district level milk producers union and then a state level marketing federation is established. The structure is line relationship, which provides easy way to operation. It also provides better communication between two stages. • Internal Organization Structure: The following is internal organisation chart of Amul: 2. 5 Production Function

Explosion of the production technology and changes in technical field is going to bring out revolution in the industry sector which eventually gives stand to study and favors the come backing subject i. e. production and management. Production and operation management is planning, organizing, staffing, directing and controlling of all the production system those portion of organization that convert inputs into products and services. In general production system takes raw material, personnel, machines, buildings and other resources and produce products and services. The core of production system is its conversion subsystem where in workers; raw materials are used to convert inputs into products and services.

This production department is at heart of the firm, as it is able to produce low cost products and superior quality in timely manners. Thus, there arises enormous need of giving due importance to this department as a whole and a strong concrete base being foundation pillars of a manufacturing organization, if the intention is to succeed domestically and globally. 2. 6 Distribution Network Most producers work with marketing intermediaries to bring their products to market. The marketing intermediaries make up a marketing channel also called distribution channel. Distribution channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

The Head Office of GCMMF is located at Anand. The entire market is divided in 5 zones. The zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover there are 49 Depots located across the country and GCMMF caters to 13 Export markets. A zero level of channel also called a direct marketing channel consists of a manufacturer selling directly to the final customers. A one level channel; contains one selling intermediary such as retailer to the final customers. A two level channel two intermediaries are typically wholesaler and retailer. A three level channel are typically wholesaler, retailer and jobber in between. GCMMF has an excellent distribution.

It is its distribution channel, which has made it so popular. GCMMF’s products like milk and milk products are perishable. It becomes that much important for them to have a good distribution. Distribution Chart We can see from above that GCMMF distribution channel is simple and clear. The products change hands for three times before it reaches to the final consumer. First of all the products are stored at the Agents end who are mere facilitators in the network. Then the products are sold to wholesale dealers who then sell to retailers and then the product finally reaches the consumers. 2. 7 Managing Competition The Indian market is dominated by a large number of small local and regional players.

There are an estimated 150 manufacturers in the organized segment, which accounts for 30-35% of sales and about 1000 units in the unorganized segments of the market. In the organized segment the significant brands are Kwality Walls , Vadilal, Amul, Havmor, Mother dairy and Baskins ; Robbins. GCMMF is facing very tough competition from both in and outside India. Amul combats competition from its competitors by providing quality products at a price which its customers value. Along with good quality products and reasonable price the packaging is also very good. Most of its products are available in many flavors. Excellent advertising backs its products and helps GCMMF (AMUL) to leave its competitors a tough time. Also Amul has come out with Amul Parlours to cater to various segments of customers.

Amul has a very strong Brand Image in the Domestic market. Many products are exported by GCMMF. 2. 8 Advertising by Amul Amul has two agencies that look after its entire range of products namely FCB Ulka and Da Cunha. FCB Ulka looks after a broad range of products namely, Amul Lite Breadspread, Amul Shrikhand, Amul Chocolates, Amul Paneer, Amul SnowCap Softy Mix Ice cream, Amul/Sagar Ghee, Amul Infant Milk Formula 1 ; 2, Sagar Tea and Coffee whitener, Amul Spray Infant Milk Food, Amul Mithaee, Amul Gulab Jamun, Amulya Dairy Whitener, Mithaimate Sweetened Condensed Milk, Amul Ice cream, Sagar Skimmed Milk Powder and Amul Whole milk Powder. Da Cunha looks after the Amul butter.

Da Cunha also prepares the very popular Amul butter billboard campaigns, which we see at various locations. Over and above the Amul butter, Da Cunha also looks after the Amul Cheese, Cheese spread, Gouda Cheese, Emmental Cheese, Masti Dahi and Buttermilk, Amul Slim-n-Trim, Amul Taaza and Amul Gold (all different brands of milk), Amul Fresh Cream, Amul Chocolate Milk, Amul Fresh Milk and Nutramul. FCB Ulka also looks after the corporate campaign. 2. 9 Sales Turnover Sales turnover of GCMMF from 1994 to 2009:- 2. 10 Areas of Operation Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African nations.

The first hand of Farmer, second hand of Processor, third hand of Marketer and fourth hand of Customer. It’s a joint efforts & productive team work have achieved success in all its new venture, how famous worldwide & known as 2. 13 List of Products Marketed Bread spreads • Amul Butter • Amul Lite Low Fat Breadspread • Amul Cooking Butter Cheese Range • Amul Pasteurized Processed Cheddar Cheese • Amul Processed Cheese Spread • Amul Pizza (Mozarella) Cheese • Amul Shredded Pizza Cheese • Amul Emmental Cheese • Amul Gouda Cheese • Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned • Utterly Delicious Pizza Mithaee Range (Ethnic sweets) Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) • Amul Amrakhand • Amul Mithaee Gulabjamuns • Amul Mithaee Gulabjamun Mix • Amul Mithaee Kulfi Mix • Avsar Ladoos Pure Ghee • Amul Pure Ghee • Sagar Pure Ghee • Amul Cow Ghee UHT Milk Range • Amul Shakti 3% fat Milk • Amul Taaza 1. 5% fat Milk • Amul Gold 4. 5% fat Milk • Amul Lite Slim-n-Trim Milk 0% fat milk • Amul Shakti Toned Milk • Amul Fresh Cream • Amul Snowcap Softy Mix Infant Milk Range • Amul Infant Milk Formula 1 (0-6 months) • Amul Infant Milk Formula 2 (6 months above) • Amulspray Infant Milk Food Milk Powders • Amul Full Cream Milk Powder • Amulya Dairy Whitener • Sagar Skimmed Milk Powder • Sagar Tea and Coffee Whitener Fresh Milk Amul Taaza Toned Milk 3% fat • Amul Gold Full Cream Milk 6% fat • Amul Shakti Standardized Milk 4. 5% fat • Amul Slim & Trim Double Toned Milk 1. 5% fat • Amul Saathi Skimmed Milk 0% fat • Amul Cow Milk Sweetened Condensed Milk Amul Mithaimate Sweetened Condensed Milk Curd Products • Yogi Sweetened Flavored Dahi (Dessert) • Amul Masti Dahi (fresh curd) • Amul Butter Milk • Amul Lassee Amul Ice creams • Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti) • Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi) • Utsav Range (Anjir, Roasted Almond) Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate) • Nature’s Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black-Currant) • Sundae Range (Mango, Black Currant, Chocolate, Strawberry) • Millennium Ice cream (Cheese with Almonds, Dates with Honey) • Milk Bars • Cool Candies (Orange, Mango) • Cassatta • Tricone Cones (Butterscotch, Chocolate) • Megabite Almond Cone • Frostik – 3 layer chocolate Bar • Fundoo Range – exclusively for kids • SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple) • Health Isabcool Chocolate ; Confectionery • Amul Milk Chocolate • Amul Fruit ; Nut Chocolate Brown Beverage • Nutramul Malted Milk Food Milk Drink • Amul Kool Flavoured Milk Health Beverage • Amul Shakti White Milk Food Ready to Serve Soups • Masti Tomato Soup • Masti Hot ; Sour Soup

Recently launched • Amul Ganthiya TITLE 1: PROMOTION OF AMUL FRESH MALAI PANEER Launching of new product 3. 1 Introduction Consumer products are under increasing pressure to reduce time to market and the cost of introducing new products. As product life continues to decrease, compressing development cycles and accelerating new products introductions are becoming critical . Product complexity is also increasing substantially, making development and product introduction even more challenging. The CP industry is facing increased complexities in the competitive environment which are forcing shorter product life cycles and increasing cost pressures.

Consumer products are under increased pressure to grow revenues and improve operating efficiency. Challenges in meeting growth targets includes changes in consumers, demographics, increased competition in mature markets ,increased spending on services, the rise of private labels and the low success rate of new brands. Innovation is influencing the way in which company thinks about every aspects of research ,marketing product development, suppliers and material management, manufacturing, distribution, warranty and defect management, maintenance repair and overhaul, and product end of life and disposal . Innovation is global. Innovation needs no boundaries.

Its growth is being nurtured by active investment, grants and tax incentive policies of establish, industrialized nations and emerging economies. Apart from Innovation, the “Perfect Product Launch” and” Life Cycle Management “are now viewed in a different and expanded way. The Perfect Product Launch involves managing the development and support of complex products and services throughout the entire lifecycle from product design to product build to post –sale service. It includes the integration of traditional new product introduction (product innovation, design, and collaboration) with sourcing and procurement, supply chain planning and execution; and service the entire product lifecycle. 3. New product launch checklist * Target the Audience * Train and Focus the Sales Force * Samples and Demo should be ready and in place * Pricing should be set * Promotions should be in place * Displays should be ready * Distribution channels should be set * Inventory should be in stock * Advertisement should be set. * Press releases should be timed 3. 3 Project proposal on Amul fresh malai paneer Amul has launch of Amul Fresh Malai Paneer. The launch marks Amul’s foray into the Fresh Malai Paneer segment, which will see the milk distribution juggernaut leverage its liquid milk distribution network that spans 100,000 retail outlets across India.

Amul Fresh Malai Paneer is the addition in Amul’s product portfolio, and plans to become the number one brand in the Indian paneer market. Amul is already a market leader in frozen paneer category, with its Amul Malai Paneer brand commanding more than a 65 per cent share in the branded paneer market. The foray into the distribution of the fresh paneer segment will strengthen its position in the dairy products category. Initially, Amul will launch Amul Fresh Malai Paneer in the convenient sizes of a 2 kg block priced at Rs 290, and targeted to hotels, restaurant ; catering services. Amul Fresh Malai Paneer is made from pure, fresh milk, which gives it a rich, creamier taste.

It has high fat and low moisture content compared to the open paneer available in the market. It is available in tamperproof, sealed poly-packs, ensuring quality and longer refrigerated shelf life of up to 7 days. According to AMUL, the Indian paneer market is estimated at around one lakh metric tonnes per annum, 80 per cent of which is sold as open or loose paneer by local milk vendors. Paneer is the largest dairy product sold in terms of volume after liquid milk, with a universal acceptance across the Indian sub-continent, making it one of the highest consumed dairy products. The paneer market can be segmented into two major segments, viz. consumers amp; institutions, with the institutional segment contributing over 80 per cent of the total paneer market, though it is highly price sensitive. This project include to collect the institute information about Paneer daily and weekly consumption, sources (local vendors), quality, rate and giving the information of Amul fresh malai paneer and sample of 500gm paneer for testing ; Collecting feedback. 3. 4 Objectives * To study the current market scenario for paneer * To study of retailer as well as consumer perception and satisfaction level about paneer. * Finding out the distribution related challenges. * Finding out what are the different offerings are going on in present situation so as to cope-up with it. To study what are the changes Amul Fresh Malai Paneer needs to do in order to enter and sustain in marke. * to provide the recommendations to increase the sale of Amul fresh malai paneer as a new entrant. * To enhancing the channel network cooperation. * To estimate the demand for product. * To provide strategies for branding and promotion. This objectives help to developed the market for Amul Fresh Malai Paneer and sustain in market for a longer period ; make the place in AMUL successive product list portfolio. Kaira District Co-op Milk Producers’ union Ltd, Anand. Kheda Satellite Dairy Tal-. Mehmedabad Distt. -Kheda-387 130 ANALYTICAL REPORT Name of product: Amul Fresh Malai Paneer

Parameters| Specification| Lab Results| Appearance | Should be white color, Clear and free from dirt. | White color, Clear and free from dirt. | Flavor | Should be pleasant odour and characteristic mild acidic flavor. | Pleasant odour and characteristic mild acidic flavor. | Texture | Should be closely knit smooth texture, firm, cohesive and spongy body. | Closely knit smooth texture, firm, cohesive and spongy body. | Friability| Should not disintegrate on frying| No disintegration on frying| Moisture %| Max 55| 51. 10| Fat ( on dmb) % | Min 50| 55. 21| Acidity (la %)| Max 0. 500| 0. 300| Ph| -| 5. 20| The product meets PFA specifications. 3. USP of Amul fresh malai paneer * It is the product from the house of AMUL. * India’s first fully automatic paneer manufacturing plant having capacity to produce 25 MT per day. * Shelf life of 7 days. * Air-tight packaging. * Amul fresh malai panner is being certified from EIA , HALAL committee. Even the manufacturing plant is being ISO 9001:2005, 22000 as well as HACCP Certified company. 3. 6 Competitors In order to be competitive and meet the Indian and International Quality requirement Amul has taken every step to improve the hygiene and maintain the quality of Amul fresh malai paneer, still Amul is facing competition from various local dairy like: * Darshan Dariy Varna Dariy * Punjab sindh Dairy * Modern Dairy * Parsi Dariy Amul can also face competition from “Amrit-Group” in near future as they plan to launch of paneer in Eastern State of India. 3. 7 Promotion of Amul fresh malai paneer through sampling The term promotion is the term and includes mainly three type of sales activity: * Mass impersonal selling methods (Advertising). * Face to face personal selling (Salesman ship). * Activities other than personal selling and advertising such as point of purchase display (P. O. P. ) show and exhibitions, demonstrations and other non securing selling efforts. This form of activity is called ‘Sales Promotion’.

There are two types of promotion blends: * Pull Blend * Push Blend. In order to promote Amul fresh malai paneer, Amul is being using PUSH BLEND. A push blend emphasizes personal selling. It was being adopted by Amul in order to develop a strong sales force at both the distributor and the dealer level. This method would tends to push the product through the channel of distribution. Area of operation * South Mumbai * Central Mumbai * Western Mumbai * Suburbs (NUMBER OF INSTITUTE COVERED – 135 restaurants in the above areas) 3. 8 SWOT analysis of amul fresh malai paneer Strengths: * Brand name itself * Market leader in Dariy products * Innovative products (specially health related) Manufacturing is done by fully automated process * Value for money in short no compromise on quality * Air tight packaging * Certified paneer Weakness: * Lack of aggressive advertising * Distribution and delivery problems * No addition on new variants from long time * Product need thawing process before use which is time consuming Opportunities: * Obviously first is modern formats concentration * Internet advertising which is cost efficient * Distribution coverage on wide bases * Umbrella branding strategy * Tapping the untapped Threats: * Competition * Low per capita consumption * Free entry to market * Local brands FEEDBACK FORM: (PANEER) 1. Name of the Institute: 2.

Address: 3. Weekly Consumption : 4. Current rate: Comparison of the Amul Fresh Malai Paneer with current using Paneer Characteristics| Grading| | Excellent| Very Good| Good| Fair| Poor| Appearance / Texture| | | | | | Taste and flavor| | | | | | Mouth feel| | | | | | Creaminess| | | | | | Whiteness| | | | | | Softness| | | | | | Suitability for frying| | | | | | Remark if any| | * Kindly mark v in box selected by you. 3. 9 Data representation and analysis based on responses from consumers/institute Conclusion: Most of the customers/institutes found that the appearance to be good. More than 70% of customers like the appearance. However, most ommented that the texture of the paneer is hard. Conclusion: Most of the customers/institutes found the Taste and Flavor of the paneer is poor and most people found paneer tasteless and they would prefer the salted paneer. Conclusion: The Mouthfeel of the paneer was perceived to be fair. Consumers/institutes would prefer the creamy paneer. Consumers also found it hard and chewy Conclusion: The response was negative, 68% customers/institute doesnt like amul fresh malai paneer. Data says the Amul Paneer was not creamy enough. Conclusion: More than 75% costumer accepts the whiteness of paneer. Most consumers/institute were happy with the whiteness of the paneer.

Conclusion: The response on softness was mixed. Some customers/institutes found it very hard even after thawing it in water, while some were satisfied with the softness and 58% customers agreed with softness of malai paneer. Conclusion: More than 70% of customers accepted that the Amul paneer is suitable for frying. 3. 10 Findings ; Obeservation * Amul, the first company to launch Certified Fresh Malai Paneer. * Amul has potentional to break the norms of monopoly of all local dairies. * Currently Amul is penetrating in the markets of Mumbai and Delhi. * Amul is disturbuting its Fresh malai paneer through one of the biggest distributor, TJUK Trade Networks pvt. td in Mumbai. * Darshan dairy, Punjab sindh dairy, Modern dairy, etc are the major competitors. * Since fresh malai paneer is being distributed through one distributor, so paneer is supplied only once in a day to their clients. * Packaging is quiet satisfactory to maintain the freshness and also to protect it from degradation 3. 11 Suggestion * Improve the quality standard with regards to its physical appearance. * Improve the quality with taste, softness, creaminess. * Proper media selection for advertising. * Amul should increase number of delivery of Amul fresh malai paneer. * Niche market has more potentional buyers. * Online ordering of paneer. Arranging promotional campaign in crowed places like Malls, supermarkets. * Provide some scheme depends on purchasing quantity like discounts, free products. TITLE 2: PENETRATION OF AMUL BUTTERMILK ; AMUL LASSEE 4. 1 Amul bevrages Today Amul in their repertoire a large collection of beverages based on milk, which a consumer of any age group just can’t ignore. It has no doubt it has taken a long time to perfect this attractive drink and still long time would be required to reach a million outlets, which the soft drinks products have occupied, but Amul have begun to make a dent in the beverage market of any kind. The Soft drink scene The Indian market of soft drink is an outstanding Rs 7500 Crores.

Comprising some 300 lakhs units consumed any day. Out of the 300 lakhs units, 260 lakhs is made up of Pepsi, Coke, Limca and such others. Out of the remaining 40 lakhs units, fruits juices and fruit drinks account for most of the non carbonated beverages, leaving merely 8 lakhs units per day for dairy based drinks. These points to a big gap and a big opportunity to capture this market. With changing times the awareness towards health and diets is on increase. Media routinely focus on obesity, diabetes and deteriorating teeth, especially in developed countries. It is not surprising therefore, to see that the growth in health drink is higher than in soft drink. This is where GCMMF comes in.

It is not only smelt an opportunity and has started doing something about it. List of Amul beverages * Amul Kool cafe * Amul Kool ( Kesar, Elachi, Rose, Butterscotch) * Amul koko * Amul Thandai * Amul Masti spiced buttermilk * Amul lassee * Amul Kool Chocolate milk 4. 2 Project proposal Amul introduces the Best Thirst Quenching Drink which is Free of Colour, Preservatives, Acids and Sucrose Sugar (unlike Cola drinks). Amul Butter milk ; Amul Lassee are the brand of the Gujarat Milk Marketing Cooperative Federation Limited (GCMMF). Amul Butter milk ; lassee are the market leader in its segment in Mumbai. The main competitors are Aray, Mother Dairy, local vendors and new entrant Havmor.

To penetrate more the tetra pack of 1 liter Butter milk ; 1 liter tetra pack lassee in the current market, as well as to tap the untapped market. We have to provide new platform or say market to it to maintain its market leader position. The project was aimed to design various strategies that can be implemented to increase the sales of Amul Butter milk ; Lassee in 1 lt. tetra pack packaging. So that it can strengthen its position in the market. In order to design these strategies it was essential to know the current market position of the product in the market and with whom it have to compete in this new segment of market. A Research conducted to find out the current scenario and what is expected from the brand.

The group was divided into sub-groups to study the parts of Mumbai, Western suburbs, Central Suburbs and South Mumbai. We collected data by interactions with various retailers and consumers in the market. We also interacted with the distributors to find out their stand on the market condition and expectations. The study was successful in finding out the major problems faced by the retailers, and distribution which if solved, can help to increase the sales significantly. The study was also successful in finding out what the consumers expected from the brand. In the study it is also found that what kind of products and packages customers as well as retailers are expecting from Amul. Amul is more successful in selling small tetra pack (200ml) ; bottle pack.

Most of the retailers and distributors are reluctant to share any kind of information. They treat their relations with the company as confidential and extracting information regarding the profit margins was difficult. But still we got some companies margins which they give to retailers. However most of the retailers complained about the distribution of product. The main problem faced was that of damage replacement and most of the retailers were not satisfied with the profit margin they got on selling AMUL Butter milk ; Lassee. As from most of the retailers it is found out that the other competitors are giving out bigger margins than Amul. 4. 3 Objectives of the study To measure the retailer and consumer perception and satisfaction level about Butter milk ; lassee. * Finding out the distribution related problems. * Finding out what are the different offerings are going on in present situation so as to competitive with others * To study the sales forecasting. * To estimate the demand for product * To study what are the changes Amul butter milk ; lassee needs to do in order to enter and sustain in market * to provide the strategies to increase the sale Buttermilk * Product – Amul Masti Spiced Buttermilk * Pack – 200ml Tetra, 1 ltr Tetra * MRP – Rs. 12 for 200ml and Rs. 35 for 1 ltr Lassee Product – Amul cool lassee * Pack – 200ml Tetra, 1 ltr Tetra * MRP – Rs. 14 for 200 ml and Rs. 41 for 1 ltr AREA OF OPERATION * Santacruz * Khar * Bandra (Total Retailers covered: 50-60 per day) 4. 4 SWOT Analysis of Amul Butter milk ; Lassee Strengths: * Brand name itself * Market leader * Innovative products (specially health related) * Value for money in short no compromise on quality Weakness: * Distribution and delivery problems * Packaging problems * Damage clearance is not proper and efficient Opportunities: * Distribution coverage * Umbrella branding strategy * Tapping the untapped Threats: * Competition * Low per capita consumption * Free entry to market * Local brands 4. 5 Findings In most of the outlets we visited there were no POPs were available, the reason being even though they are available with distributor he doesn’t provide to retailers. Also wherever they were available the visibility was low. * The delivery of the retailer order is on time. * The damage returns complaints were almost from all the retailers. The distributor always provides replacement/returns for damages late or sometimes never, so the retailers have to suffer losses resulting in refused to sale AMUL Butter milk ; Lassee. * Careless handling of products by delivery boys resulting into damages. When retailers pointed out that they insisted to delivery boys but they behaved rudely. This results in hesitation of customers to purchase such damaged products. Salesman doesn’t visit some of the outlets regularly, because of many reasons such as he may have differences with retailer or he may not have that much time to visit them, this is because of less manpower than required. * The salesman doesn’t give any idea about special schemes and offerings to all the retailers. * AMUL lacks aggressive advertising. The competitors are doing aggressive advertising as signing boards at signals, painting of bus-station, during IPL matches and AMUL is no where noticed. * Lassee available in small vendors nearby road side, stations ; bus stop so consumers can get fresh lassee very easily at cheaper rate. * Consumers used lassee mostly in summer so its high opportunity to sale more in summer than other season. The liquidity of Amul Lassee is less thinner than the lassee available at other retail outlets (mostly dairies ; fast food juice centers). * Mainly rose flavored Lassee is not preferable by final consumers. They prefer unflavoured Amul lassee. * Lack of commitment regarding the product life span. 4. 6 Recommendations * The main problem identified was packaging of 1 litre butter milk ; 1 litre lassee tetra pack, which cannot sustain the product’s life span. Improvement is required in packing to maintain its durability. * Cross promotions by introducing scratch cards (discount coupons) with Amul’s leading products. * Aggressive advertising like Mother Dairy in IPL should be done.

Awareness campaigns should be arranged for the products like Prolife, Probiotic. * Arranging promotional campaign in crowed places like Malls, Outside Children Park, supermarkets. There must be interaction with the customer and provide them with discount vouchers along with 1 litre AMUL Butter Milk or Lassee as complementary. * Amul should be prompt in replacing damages to retail stores in order to maintain their satisfaction level. * The demand-supply mismatch is major concern as most of the products are out of stock so the sales suffers losses also results in competitors products sale increase. * The Amul Lassee should be much thicker from its current semi liquid state. Amul company should provide refrigerator to the retailer so that they can keep only Amul products. TITLE 3: BRAND AWARENESS THROUGH AMUL VIDYA AWARDS AMUL AWARDS FOR SSC ; HSC TOPPERS The foundation of every state is the sound education of its youth and hence is the most basic constituent for a developing nation like India. Towards this, Amul have always contributed our best towards ensuring development and encouraging the spirit of enlightenment among today’s youth. As a continuation towards this endeavour, Amul has instituted Vidyashree Award to recognize the academic excellence of the class 10 school topper in the examination in each State/Central Board enrolled school every year.

The objective of the awards is to recognize the efforts of the academic merit toppers and build equity for Amul among the young India. Amul are proud to constitute this award which is the first of its kind in India and operate in such a large scale. By winning this award, not only the student gets recognized, but it also help the schools to enhance their image as an academy that imparts quality education, putting it at par with other premier institutions in India. Both “Amul Vidyashree” ; “Amul Vidyabhushan” Awards consists of: * A Memento * A Certificate of excellence signed by MD, GCMMF * A Gift hamper of Books * Display along with photograph on Amul site www. amul. om * Feature in press advertisement in a leading national newspaper The inception of this award took place in the year 2004-05, whereby in the first year Amul honoured the award to students of 500 schools in South India, East India and Gujarat. In the second year (2005-06) Amul further acknowledged 2267 students across schools in India. For the academic year 2006-07, Amul have till date recognized the academic excellence of around 3077 for Vidyashree Award across India. Moving ahead, in 2006-07 Amul have instituted the “Amul Vidyabhushan Award” to recognize the toppers of 12th Standard examinations. In the first of year of inception, Amul have awarded students 2073 students across India.

For the academic year 2010-11, Amul plan to recognize the efforts of 10,000 Class X ; Class XII merit rankers (5000 students each for Vidyashree and Vidyabhushan Awards). Amul further intend to increase the award number every year so that maximum students are recognized for their academic excellence through our Awards. All this is towards Amul’s vision to see educated, talented and strong youth in future India and hence work our best towards nation building. 5. 1 Objectives: * To hunt the toper for 10th ; 12 th std. from every school ; Jr. collages. * Fill up the vidyashree ; vidyabhushan form and collect the related documents. * Give the detail information about Amul vidya awards with amul health drinks OUR CONTRIBUTION TO THIS NOBLE ACTVITY Area of operation: Bandra (E) – Andheri (E)

Numbers of forms collected: * Amul VidyaShree Award: 46 * Amul VidyaBhushan Award: 18 BIBLIOGRAPHY * Personal discussion of various department head. * 62nd annual Report AMUL Dairy, Anand. * www. Speech of chairman – P. G. Bhatol, AMUL Dairy, Anand. * www. amul. com * www. amuldairy. com * www. dairy. com. * Marketing Management by Philip Kotler * Project Report ; Appraisals by H. P. S. Pahwa (Bharat Law House Pvt. Ltd. , New Delhi). * www. top news. mht * News from DNA Saturday, June 6, 2009 13:42 IST * www. allprojectreports. com – Project Report MBA Sales Promotion at different Level and different programme. mht * Amul – Wikipedia, the free encyclopedia. mht

Sales & Distribution of Amul

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