for MBA Marketing only

1. A PROJECT RESEARCH REPORT
ON
Promotional Scheme of Amul Ice Cream
Submitted in partial fulfillment of the requiments for
the award of the degree of
Master of Business Administratipn
Submitted to:
Faculty guide: Submitted By:
Seshanvita Das Dharmendra kumar
GIMT, Greater Noida ROLL: 0909470031
MBA 4sem

2. ACKNOWLEDGEMENT
This study even internal part of our MBA program and to do this project in a
short period was a heavy task. Intention, dedication, concentration and hard
work are very much essential to complete any task. But still it needs lot of
support, guidance assistance, co-operation of people to make it successful.
I bear to imprint of my people who have given me their precious ideas and
times to enable me to complete the research and the project report. I want to
thank them for their continuous support at my research and writing efforts.
First of all I would like to thank Dr.shruti Gaur, faculty member of LIMT
Gr. Noida, for giving me an opportunity to write my Dissertation report
under his guidance and supervision and for all the help and support which
led me complete the project.
At last but not least I also thanks to the entire customer interviewed for their
kind co-operation.
With Regards
Surendra Pal Singh
DECLARATION
2

3. I, Dharmendra kumar vhereby declares that the project work
entitled “Promotional scheme of Amul Ice cream” is my
project. I have not copied this project. I have worked hard
for this project. Dr. Shruti Gaur was my project guide. Her
encouragement, indulgency, and affection made this project
a reality. I have proudly got her guidance in designing the
architecture underlying the system.
Signature of the Project Developer: Surendra Pal Singh.
Name: Surendra Pal Singh.
Course: Master of Business Administration. Date: 16/Dec/2010.
Signature of the Center
Director:________________________________________________
Name of the Learning Institution: - GIMT,Institute of management
& technology- II Greater noida 201306
3

4. Abstract:
Amul is the largest co-operative movement in India with 2.2 million
milk producers organized in 10,552 co-operative societies in
2003-2004.
The country's largest food company, Amul, is the market leader in
butter, whole milk, cheese, ice cream, dairy whitener, condensed
milk, saturated fats and long life milk.
Amul follows a unique business model, which aims at providing
'value for money' products to its consumers, while protecting the
interests of the milk-producing farmers who are its suppliers as well
as its owners. Despite being a farmers' co-operative, Amul has given
multinationals a run for their money.
In butter, cheese and saturated fats, Amul has remained the
undisputed market leader
since its inception in 1955, by offering quality products at
competitive prices. In other categories, Amul has nullified its late
mover disadvantage through aggressive pricing, better quality,
innovative promotion, and superior distribution
4

5. TABLE OF CONTENTS
List of Table
List of Figure
Certificate
Acknowledgement
Declaration
Abstract
CHAPTER PAGE NO.
Introduction ----------------------------------------6
Company Profile -------------------------------- 9
Distribution network --------------------------------- 15
Executive Summary ----------------------------------------41
Industry Scenario ---------------------------------47
Introduction of problem ----------------------------------48
About the study ---------------------------------
Rationale and Scope ---------------------------------50
Objective of the project -----------------------------------52
Review OF Literature ----------------------------------54
Marketing Mix 4 P’s -----------------------------------58
SWOT Analysis ------------------------------------60
Research Methodology ------------------------------------66
5

6. Project Activity Sequence -------------------------------------71
Data Analysis & Finding ----------------------------------------- 74
One way ANOVA -----------------------------------89
Finding -----------------------------------92
Recommendations --------------------------------------------95
Conclusions ----------------------------------------------100
Bibliography ------------------------------------------------------ 102
Annexure ----------------------------------------------103
Questionnaire
LIST OF TABLE & GRAPHS
Analysis of non existing outlet 82
Mode of payment for deep freezer 83
Relationship on the basis of retailer 84
Analysis of Existing Amul outlet 85
Mode of purchase 87
Pack of ice cream sold most 88
6

7. INTRODUCTION
Gujarat Cooperative Milk Marketing Federation (GCMMF), one of India's
greatest success stories with its Amul brand, is now aiming at a 17-per cent
growth in sales to Rs 3,200 crores this fiscal against sales of Rs 2,746 crores
in the previous year ended 31 March 2003.
The federation is expecting each of its products to contribute higher sales
this year as new products are being added to each product line.
The big hope is not surprisingly the Amul brand of ice creams, which is
expected to contribute Rs 250 crores to the turnover, up from Rs 150 crores
last year. Last year there was a good growth in ice cream, cheese, butter and
ghee. The company is launching new products in almost every line that are
in, with specific stress on ice creams.
For its ice cream and milk business, GCMMF has begun investing in
increasing its milk capacity. It recently firmed up plans to invest Rs 100-120
crore to expand this from 1.1 million liters a day to 1.8 million litres a day at
7

8. its Gandhinagar factory. The investment will take place over the next two
years.
The cooperative is also planning to expand its production facilities beyond
Gujarat to service other regions in India. GCMMF recently bought an ice-
cream manufacturing unit in Nagpur and is installing a dairy unit alongside.
Through this unit, the organisation has also extended its milk supply to over
10 cities spread over Rajasthan, Madhya Pradesh and Maharashtra.
Amul is now focusing on its supply system. Efforts are on to ensure greater
availability of Amul ice-cream at pushcarts and small outlets. The company
feels that availability is the most important factor in ice cream sales. Thus,
Amul ice-cream can be found in 'just around the corner shops,' local STD
booths, local kirana shops, chemists and bakers, who stock the ice-cream in
deep freezers.
The idea is to ensure visibility and availability, which more often than not
ensures a sale as ice-cream consumed out of home is most often an
impulsive purchase. Amul expects to clock sales of 34 million litres during
the current year and the accent will be on offering 'value for money'
products.
8

9. The new ice-creams which are launched by Amul this year includes a mega-
bite almond cone (the largest volume cone in the country), an orange ice-
cream (Santra Mantra), a Bouncer ice-cream with nuts and essential
proteins, vitamins and minerals for the growing children, a cheese ice-cream
and a sundae in cone for kids in different variants.
Amul ice cream is positioned as 'real ice-cream' made from real milk cream,
while HLL's Kwality Walls is made from vegetable oil and its items are
dubbed as Frozen Deserts.
Last year, Amul ice cream made its entry into New Delhi, India's biggest
ice-cream market, where its anti-compete agreement with Mother Dairy has
expired. Amul has been sourcing its entire ice-cream requirement for the
northern market (including Delhi) from its own Gandhinagar plan
9

10. INDUSTRIES
OVERVIEW
Gujarat Cooperative Milk Marketing Federation
GCMMF: An Overview –
Gujarat Cooperative Milk Marketing Federation (GCMMF) is a India’s
largest food product marketing organization. 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.
Members: 12-district cooperative milk producers’ Union
No. of Producer Members 2.23 million
No. of Village Societies: 10,852
Total Milk handling capacity: 6.7 million litres per day
10

11. Milk collection (Total - 2001-02): 1.67 billion litres
Milk collection (Daily Average 2001- 02): 4.59 million litres
Milk Drying Capacity: 510 metric Tons per day
Cattlefeed manufacturing Capacity: 1450 Mts per day
11

12. Sales Turnover Rs. (million) US$ (million)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27475 575
AMUL means "priceless" in Sanskrit. A quality control expert in Anand
suggested the brand name “Amul,” from the Sanskrit “Amoolya,” Variants,
all meaning "priceless", are found in several Indian languages. 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. (Turnover: Rs. 25 .)
12

13. billion in 2002). Today Amul is a symbol of many things. Of 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 of a proven model for dairy development.
13

14. 50 years after it was first launched, Amul's sale figures have jumped from
1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other
brand comes even close to it. All because a thumb-sized girl climbed on to
the hoardings and put a spell on the masses.
Dairy giant Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF) recorded 22 per cent growth in turnover during the first half of
the current financial year with milk products sales amounting to Rs 1,000
crore.
GCMMF sold 10.5 crore litres of milk in pouches during April to September
1998 under its well-known brand `Amul'.
"GCMMF's financial performance during this period has been even more
attractive with a growth of 25 per cent. However, this won't be reflected in
our balance sheet. The multinationals would have shown it as glittering
profit, but we are working on our mandate of returning any surplus back to
grass-root village co-operative milk society members by periodic price
differentials for their production.
14

15. With 12 processing units (unions), each located at the district-level,
GCMMF today has a membership of 20 lakh farmers, who belong to 10,000
village dairy co-operative societies.
GCMMF, the largest producer of dairy products in Asia, has over 26
products ranging from `Amul Butter', `Amul Spray', `Amul Lite', `Amul
Cheese' to `Amul Mithaimate', `Amul Mithaee Gulabjamun' and ‘Amul
Frozen Pizza’.
The co-operative is launching wide range of cheese including the exotic
Emmental from the Swiss Alps, soft Mozzarella from Italy and slices of
processed Cheddar cheese.
GCMMF has also come out with `Amul cheese powder' used in soups,
salads, dressings and hoard of other fast foods.
The federation has been able to capture 50 per cent of the ice-cream market
in the state in a short span of one year.
`Amul Ice creams' are also now available in 12 states and two union
territories and enjoy 35 per cent to 40 per cent market share.
The `Amul Ice-cream' strategy bordered on its punch line, `real milk, real
ice-cream'
`Amul Ice creams' were smoother and creamier than its competitors as fat
used was pure milk, which was more expensive and not vegetable fat.
15

16. GCMMF, which has 45 sales offices, plans to make these products
"available all over the country".
The federation has a distribution network comprising more than 2,700
wholesale dealers and over five lakh retail outlets.
DISTRIBUTION NETWORK
Amul
Baroda Dairy
C&F
Agencies
Sub Distributor Retailers
Retailers
16

17. Amul manufactures its ice cream in Baroda dairy plant. Its supplies raw
material like milk from different places of Gujarat to Baroda dairy. When ice
cream is fully prepared and packed than it’s transferred to different states via
air-conditioned trucks. The C&F agents store it in big deep freezer rooms.
From C&F the ice cream is delivered to different distributors. And from
distributes the ice cream is delivered to different retailers and sub retailers.
And finally the consumers purchased from the retailers.
Amul would provide the design and specifications for renovation of the
outlet. It will provide consultancy if required and will also inspect the work
of the contractor.
Amul will help in assessing the business potential of the shop and will help
in making the business plan.
Amul will guide you in purchase of various equipment. It will also help you
in choosing between the various sizes and types available based on its
experience of the business.
17

18. Amul will provide the design and/or supplier of the uniform for the parlour
boys.
Amul will provide advice and consultancy for inauguration and operation of
your shop, as well as for attracting customers and increasing sales.
Amul will provide signages and glowsign to the outlet at its own cost. The
design will be standard and such as to identify your outlet as a "a direct
outlet of the company", which stores and sells the entire range of Amul
products.
Amul shall give target based additional margin on its products for the first
year of operation upto a maximum of 1% on dairy products and 2% on ice-
cream.
Amul shall help in the inauguration by providing free ice-cream worth Rs.
1000. The other expenses of the inauguration shall be borne by you.
Amul shall give 1000 pamphlets specially printed for your shop for
newspaper insertion in the neighborhood to generate awareness about your
outlet.
Amul shall design and implement in-shop promotions based on requirement.
Amul shall keep you in its list of preference for all promotions schemes,
launch of new products, etc.
List of Products Marketed:
18

19. Breadspreads:
• 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)
• Utterly Delicious Pizza
Mithaee Range (Ethnic sweets):
• Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
19

20. • Amul Amrakhand
• Amul Mithaee Gulabjamuns
• Amul Mithaee Gulabjamun Mix
• Amul Mithaee Kulfi Mix
• Avsar Ladoos
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
20

21. Pure Ghee:
• Amul Pure Ghee
• Sagar Pure Ghee
• Amul Cow Ghee
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
21

22. • Sagar Skimmed Milk Powder
• Sagar Tea and Coffee Whitener
Sweetened Condensed Milk:
• Amul Mithaimate Sweetened Condensed Milk
Fresh Milk:
• Amul Taaza Toned Milk 3% fat
• Amul Gold Full Cream Milk 6% fat
• Amul Shakti Standardised Milk 4.5% fat
• Amul Slim & Trim Double Toned Milk 1.5% fat
• Amul Saathi Skimmed Milk 0% fat
• Amul Cow Milk
Curd Products:
• Yogi Sweetened Flavoured Dahi (Dessert)
• Amul Masti Dahi (fresh curd)
• Amul Masti Spiced Butter Milk
• Amul Lassee
22

23. Amul Icecreams:
Royal Treat Range
• Butterscotch, Rajbhog, Malai Kulfi
Nut-o-Mania Range
• Kaju Draksh, Kesar Pista Royale, Fruit Bonanza,
Roasted Almond
Nature's Treat
• Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh
Strawberry, Black Currant, Santra Mantra, Fresh
Pineapple
Sundae Range
• Mango, Black Currant, Sundae Magic, Double Sundae
Assorted Treat
• Chocobar, Dollies, Frostik, Ice Candies, Tricone,
Chococrunch, Megabite, Cassatta
23

24. Utterly Delicious
• Vanila, Strawberry, Chocolate, Chocochips, Cake Magic
Chocolate & Confectionery:
• Amul Milk Chocolate
• Amul Fruit & Nut Chocolate
Brown Beverage:
• Nutramul Malted Milk Food
Milk Drink:
• Amul Kool Flavoured Milk (Mango, Strawberry, Saffron,
Cardamom, Rose, Chocolate)
• Amul Kool Cafe
Health Beverage:
Amul Shakti White Milk Food
24

25. Amul - Evolution of Marketing Strategy
Product Development
Amul's product development was driven both by the spirit of the
cooperative system and profitability. Being a cattle farmers'
cooperative, Amul was committed to buying all the milk offered by the
farmer. The perishable nature of milk made it imperative for Amul to
process the surplus milk and enter new product categories as
production increased...
Butter
Launched in 1955, butter was one of the first milk products offered by
Amul. It was also the first time Amul successfully challenged the
hegemony of an established brand. Amul's earliest competitor, Polson
had been the monopoly milk supplier to the Bombay Milk Scheme.
25

26. Amul displaced Polson to emerge as the undisputed leader in the butter
market...
Cheese
GCMMF launched processed cheese in 1959 followed by cheese powder in
the early 1970s. In the 1980s the popularity of cheese increased...
Ghee, Skimmed milk powder and Baby food
Amul launched ghee (clarified butter) and skimmed milk powder in 1955.
Amul Ghee was an instant success...
Milk and UHT Milk
Amul was the market leader in the Gujarat whole milk market with a 90%
market share in 2002. Apart from supplying milk to parts of Maharashtra
and Rajasthan, GCMMF also sold milk to the NDDB owned Mother Dairy
26

27. in Delhi...
The idea is to ensure visibility and availability, which more often than not
ensures a sale as ice-cream consumed out of home is most often an
27

28. impulsive purchase. Amul expects to clock sales of 34 million litres during
the current year and the accent will be on offering 'value for money'
products.
The new ice-creams which are launched by Amul this year includes a mega-
bite almond cone (the largest volume cone in the country), an orange ice-
cream (Santra Mantra), a Bouncer ice-cream with nuts and essential
proteins, vitamins and minerals for the growing children, a cheese ice-cream
and a sundae in cone for kids in different variants.
.
.
Amul ice cream is positioned as 'real ice-cream' made from real milk cream,
while HLL's Kwality Walls is made from vegetable oil and its items are
dubbed as Frozen Deserts
28

29. 29

30. Pricing
Amul's philosophy had all along been to deliver value for money to its
customers. Despite being priced economically, Amul maintained its product
quality...
Distribution
GCMMF's formidable distribution network comprised 300 stock keeping units,
46 sales offices, 3,000 distributors, 100,000 retailers with refrigerators, an
18,000-strong cold chain, and 500,000 non-refrigerated retail outlets...
30

31. Advertising and Sales Promotion
Over the years, Amul's advertising philosophy had been "to be simple,
fresh and innovative". The clean, emotion-based ads refrained from
using hi-tech special effects, and aimed at maintaining the perfect
balance between the traditional and the modern...
Looking Ahead
The liberalization of the dairy industry in 1991 had seen a number of
multinational players like Britannia, Le Bon, Dabon and Hi-Life enter the
sector.
31

32. Analysts wondered whether a co-operative with limited financial means
could stand up to the might of these MNCs, and if its low pricing strategy
would continue to stay relevant. MNCs like Pizza Hut, Domino's, Hindustan
Lever Limited and Cadbury had also become competitors. Amul had proved
its detractors wrong and firmed up ambitious growth plans..
AMUL PRODUCTS
. AMUL means "priceless" in Sanskrit. The brand name "Amul," from the
Sanskrit "Amoolya," was suggested by a quality control expert in Anand.
Variants, all meaning "priceless", are found in several Indian languages.
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. (Turnover: Rs.
52.55 billion in 2007-08). Today Amul is a symbol of many things. Of 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' organisation. And of a proven model for dairy
development.
32

33. Bread Spreads
Amul Butter Amul Lite
Utterly Butterly Low fat, low
Delicious Cholesterol
Bread Spread
Delicious Table
Margarine
The Delicious
way to eat
healthy
Milk Drinks
Amul Kool Amul Kool
Millk Shaake
33

34. Amul Kool Kool Koko
Cafe A delight to
Chocolate
Lovers.
Delicious
Chocolate
taste
Nutramul Amul Kool
Energy Drink Chocolate Milk
A drink for
Kids -
provides
energy to
suit the
needs of
growing Kids
Amul Kool Amul Kool
Flavoured Flavoured
Bottled Milk Tetra Pack
Amul Masti Amul Kool
Spiced Thandai
Buttermilk
Amul
introduces
the Best
Thirst
Quenching
Drink
34

35. Powder Milk
Amul Spray Infant Amul Instant Full
Milk Food Cream Milk
Still, Mother's Powder
Milk is Best for A dairy in your
your baby home
Sagar Skimmed Sagar Tea Coffee
Milk Powder Whitener
Which is
especially useful
for diet
preparations or
for use by
people on low
calorie and high
protein diet.
35

36. Amulya Dairy
Whitener
The Richest,
Purest Dairy
Whitener
36

37. Fresh Milk
Amul Fresh Milk Amul Gold Milk
This is the most
hygienic milk
available in the
market.
Pasteurised in
state-of-the-art
processing
plants and
pouch-packed
for
convenience.
Amul Taaza Amul Lite Slim
Double Toned and Trim Milk
Milk
Amul Fresh Amul Shakti
Cream Toned Milk
Amul Calci+
37

38. Cheese
Amul Pasteurised Amul Cheese Spreads
Processed Cheese Tasty Cheese
100% Vegetarian Spreads in 3 great
Cheese made from flavours..
microbial rennet
Amul Emmental Amul Pizza
Cheese Mozzarella Cheese
The Great Swiss Pizza
Cheese from cheese...makes
Amul, has a great tasting
sweet-dry flavour pizzas!
and hazelnut
aroma
Gouda Cheese
38

39. .
For Cooking
Amul / Sagar Pure Cooking Butter
Ghee
Made from fresh
cream. Has typical
rich aroma and
granular texture.
An ethnic product
made by dairies
with decades of
experience.
Amul Malai Paneer Utterly Delicious
Ready to cook Pizza
paneer to make
your favourite
recipes!
Mithai Mate Masti Dahi
Sweetened
Condensed Milk -
Free flowing and
smooth texture.
White to creamy
color with a
pleasant taste.
39

40. Desserts
Amul Ice Creams Amul Shrikhand
Premium Ice A delicious treat,
Cream made in anytime.
various varieties
and flavours with
dry fruits and
nuts.
Amul Mithaee Gulab Amul Chocolates
Jamuns The perfect gift for
Pure Khoya Gulab someone you love.
Jamums...best
served piping hot.
Amul Lassee Amul Basundi
Health Drink
Nutramul Amul Shakti
Malted Milk Health Food Drink
Food made
from malt Available in
extract has the Kesar-Almond
highest protein and Chocolate
content among flavours.
all the brown
beverage
powders sold in
40

41. India.
.
41

42. 42

43. 43

44. INDUSTRY SCENARIO
Total ice cream market in our country is of Rs.2000 crores in which branded
ice cream market share is of Rs. 650 crores. Amul captures around 27% of
total market share of organized sector. In 2003, Amul ice cream sales wet
Rs.160 crore, almost three times the Rs.55 crore sales in 1998.
The ice cream consumption in Delhi is 20% of the total consumption in our
country. Out of which Amul captures around 30% of the Delhi market.
44

45. 45

46. INTRODUCTION TO THE PROBLEM
Retailers are the one of the most important member of the distribution
channel. They are the people who provides product to the final consumers.
As they have the direct touch with the consumers, so they can play a vital
role for influencing the buyers decisions. The company should try to
provide services to the retailers in such a way that they can satisfy with
them.
46

47. 47

48. RATIONALE:
The market share of Amul ice cream is increased by three times in just two
years. The total consumption of Amul Ice- Cream in terms of rupees is Rs.
30,00,000 per month in one of the agencies of Amul in Delhi. The Amul Ice
Cream captures around 30% of the total market share in Delhi. There is an
immense opportunity for the company to extend their market share. The
project will create the opportunity for the company to capture the market
share.
SCOPE:
The scope of study is to understand the problem faced by the company while
increasing the retail outlets. With the help of this project GCMMF can
increase their outlets by analyzing the feedback given by the interviewer
(including existing and non existing outlets). GCMMF can also analyze the
pricing strategy followed by the rivals. By this study company will get the
information about current competitive position of the Amul ice cream in the
market.
48

49. 49

50. PRIMARY OBJECTIVES: To increase the number of outlets of Amul ice
cream.
SECONDARY OBJECTIVE:
 To analyze the retailers perception about Amul ice cream.
 To find out the competitive edge of the company over the competitors.
 To analyze the market size of ice cream.
 To study the consumer preference about different ice cream
companies.
 To study distribution channel.
50

51. 51

52. Retailing includes all the activities involved in selling goods or services
directly to final consumers for personal, non-business use. A retailer or retail
store is any business enterprise whose sales volume comes primarily from
retailing.
Any organization selling to final consumers – whether it is a manufacturer,
wholesaler, or retailer- is doing retailing. It does not matter how the goods or
services are sold or where they are sold. Consumers today can shop for
goods and services in a wide variety of retail organizations. There are store
retailers, non-store retailers, and retailer’s organization. Perhaps the best-
known type of retailers is the department store. Retail-store types pass
through stages of growth and decline that can be described as the retail life
cycle. A type emerges, enjoys a period of acceleration growth, reaches
maturity, and then declines. Older retail forms took many years to reach
maturity; newer reach maturity, whereas warehouse retail outlets reached
maturity in 10 years. The most important retail-store types are:
• Specialty store: Narrow product line with a deep assortment.
• Department store: Several product lines with each line operated as a
separate department managed by specialist buyers.
52

53. • Supermarket: Relatively large, low-margin, high volume, self
service operation designed to serve total needs for food, and
household products.
The wheel-of-retailing hypothesis explains one reason that new store types
emerge. Conventional retail stores typically increase their services and raise
their prices to cover the costs. These higher costs provide an opportunity for
new store forms to offer lower prices and less service. New store types meet
widely different consumers preferences for service levels and specific
services.
Retailers can position themselves as offering one of the four levels of
services:
1. Self-services: Self-services is the cornerstone of all discounts operation.
Many customers are willing to carry out their own locate-compare-select
process to save money.
2. Self-selection: Customers find their own goods, although they can ask
for assistance.
53

54. 3. Limited services: These retailers carry more shopping goods, and
customers need more information and assistance. The stores also offer
services such as credit and merchandise-return privileges.
4. Full services: Salespeople are ready to assist in every phase of the
locate-compare-select process. Customers who like to be waited on prefer
this type of store. The high staffing cost, along with the higher proportion
of specialty goods and slower-moving items and the many services,
resulted in high-cost retailing.
5. Corporate retailing: Although many retail stores are independently
owned, an increasing number are part of some form of corporate
retailing. Corporate retail organizations achieve economies of scale,
greater purchasing power, wider brand recognition, and better-trained
employees. The major types of corporate retailing—corporate chain
stores, voluntary chains, retailer cooperatives, franchises, and
merchandising conglomerates.
54

55. 55

56. FOUR P’S OF THE PRODUCT
PRODUCT: Amul ice cream has wide range of variety that consists of more
than hundred flavors available in the market including 20 new flavors, which
is introduced in this summer. As ice cream is an impulsive purchase item so,
its sale depends mostly on availability and variety.
PRICE: The price of Amul ice cream is very less compared to its
competitors. In novelty item the price of the flavors varies from Rs.2 to
Rs22. The pricing strategy of Amul is, to target each income group of the
society. The cheaper price of ice cream is meant for targeting the people
with low income. Along with the low income group Amul is also targeting
medium as well as the premium segment by providing different flavors at
different prices.
PLACE: The distribution of the ice cream in Delhi is done through
exclusive Amul outlets situated in various locations. In Delhi, Amul has
eleven distributors who supplies ice cream to more than 3000 outlets. These
eleven distributors are responsible for their respective areas.
56

57. PROMOTION: Amul is a well-established brand name of GCMMF. For
promotion of the ice cream the company gives advertisement in newspaper
and magazines. It gives glow sign board to every retailers and also makes
wall paintings on there request. Amul uses their punch line ---“Real milk
real ice cream” for the promotion.
SWOT ANALYSIS
57

58. STRENGTH:
a) Biggest sourcing base for milk and milk products in India.
b) India’s best-known local Brand across all categories.
c) 35% market share in the national Ice Cream market.
d) Presence of a well-established distribution and delivery network for
dairy products.
e) Penetration pricing strategy – Amul is the price warrior in the Ice cream
market and currently has a very wide range to offer for all price points.
f) Kwality Walls, Amul’s main rival, has been able to extend it’s cold
chain in only about 150 out of 300 class I towns. Whereas Amul has
presence in almost all towns because of its already existing butter lines.
g) Customer is most comfortable buying Ice Cream in the Value for
Money segment and Amul is well present in this segment.
58

59. h) Amul has built up a formidable image as a brand in which generations
of consumers have placed their trust. This can be used to its advantage
while introduction of ice creams.
WEAKNESS:
a) Relationship between retailer and company is not effective.
b) After sales service is not upto retailers expectation level
c) Availability of all type of verity ice is not regular.
d) Advertising is low profile, as the results of our survey show. Kwality
Walls on the other hand is into heavy advertising and consequently, is
popular.
e) As per our survey, retailers list a credible Replacement policy as a
factor very high on their wish list. They would be willing to make
further investments only for that brand which offers replacement
facilities. Amul has no replacement policy.
59

60. f) Retailers now demand freezers without having to pay any deposit.
This is especially true of those retailers who already stock one or the
other ice cream brands
OPPORTUNITY:
a) Delhi market is not restricted to monopoly outlets. There are a
significant number of retailers who are currently stocking more than
two brands. This is in Amul’s favor, as earlier it had to overcome this
problem in the Mumbai market.
b) There is ample scope in the low priced segment as also in other
categories where consumers presently are dissatisfied with the quantity
being provided vis a vis the price being charged.
60

61. c) Amul has the opportunity to capture the more evolved young adults and
children who are open to new products provided they meet their
expectations.
d) Kwality Walls is right now in an investment mode and is concentrating
on expanding the market as also its reach. Amul should direct its
resources towards cashing in on Walls market development.
e) Distributors are dissatisfied with the margin & customer support
services currently being provided in the market. This can be used to
Amul’s advantage. Mother Dairy is extremely apathetic to retailers and
there is a gap to be exploited.
THREAT:
a) New companies are entering the ICE industry.
b) Local manufacturers are growing at alarming rate
c) Good advertisement campaign from competitors.
61

62. d) The consumers have very well received Kwality Walls product
differentiation strategy and Mother Dairy is also pushing up its
advertising pitch.
62

63. 63

64. RESEARCH DESIGN:
The research design prepared with great care keeping in mind the research
objective. The project was divided into two parts—parts ‘A’, part ‘B’.
RESEARCH APPROACH:
In the part ‘A’ the research was conducted by visiting to the various non
existing outlets of Amul and asking them about Amul ice cream and whether
they would like to keep Amul ice cream. I also told them about the Amul’s
promotional scheme and various superseding factors.
In the part ‘B’ the research was conducted by visiting to the various existing
Amul’s outlets and knew about the replacement of old and unsold stock and
services of Amul.
RESEARCH INSTRUMENTS:
The primary data collected for this study was done through detailed market
survey by means of unstructured interaction. The secondary data is collected
through Internets, Material provided by company, e.t.c.
SAMPLE PROCEDURE:
The procedure adopted for sampling was on the basis of judgmental
sampling.
64

65. HYPOTHESIS:
Ho1 --- There is no significance difference between the price of Amul Ice-
cream and it’s competitors.
Ho2 --- There is no significance difference between the product quality of
Amul Ice –cream and it’s competitors.
Ho3 --- There is no significance difference between the company’s scheme
of Amul ice – cream and it’s competitors.
Ho4 --- There is no significance difference between the services provided by
Amul and it’s competitors.
Ho5 --- There is no significance difference between the availability of Amul
Ice – cream and it’s competitors.
Ho6 --- There is no significance relation between the taste of Amul ice
cream and its competitors.
Ho7 --- There is no significance difference between the packaging of Amul
ice cream and its competitors.
65

66. Ho8 --- There is no significance between the flavor of Amul ice cream and
its competitors.
Ho9 --- There is no significance difference between the brand image of
Amul ice cream and its competitors.
LIMITATIONS:
 The study limit to Central Delhi
 Due to unavailability of proper conveyance facility, it was really hard to
cover the market under a scorching sun.
 In many residential blocks shops located in corners of by lanes were
difficult to locate.
 The time duration of two months was short for the completion of all
activities.
 Being a perishable product no sample could be shown as demanded by
many prospecting clients.
1
66

67. 67

68. 68

69. PROJECT ACTIVITY SEQUENCING
Start
Developing open and Collecting some
structured secondary
questionnaire data/informatio
n from various
sources
Conduct survey in
south Delhi by
Study the
information
Compile and analyze
the collected
information
Do report
writing
Final Report
69

70. 70

71. 71

72. This table shows the interested to take retailership for ice-cream
Dealers Number YES NO
100 67 33
Percentage People Like Keep ICE-Cream
33%
67%
Interested Not Interested
From the above graph it is found that 67% retailers are interested in keeping
ice cream. Only 33% retailers are not interested.
72

73. If yes, which brand would you like to go for:
Retailers Amul Kwality Mother dairy Cream bell
100 40 17 20 23
23%
40%
20%
17%
Amul kwality M.D cream bell
The graph shows that out of hundred percent retailers 40% retailers were
favored Amul ice cream. After Amul the most favored ice cream is cream
bell. Cream bell is second most important because its new in market with
higher rate of margin and less price.
73

74. Preference given by the retailers to the following companies on the given
quality:
Amul Kwality Mother dairy Cream bell
Price 123 83 110 119
Margin 115 84 80 127
Quality 135 128 138 90
Variety 123 100 97 95
Pack 127 139 111 106
Availability 111 121 115 108
Taste 121 145 140 104
C. Scheme 119 91 86 137
Services 92 138 127 137
74

75. 75

76. Comparison of preference given by the retailers to the different Ice –
cream-making companies:
160
140
120
100
80
60
40
20
0
Price Margin Quality Variety Pack. Avail. Taste CS Services
Amul Kwality M.Dairy C.Bell
From the above graph it is conclude that Amul is leading in the price and
variety preference but giving equivalent competition to other companies in
quality, packaging and availability. Amul is way behind in terms of services.
76

77. (ANALYSIS OF NON-EXISTING OUTLETS)
Percentage of people likes to keep deep freezer provided by the
company:
Retailers Yes No
100 87 13
13%
87%
Yes No
Here graph shows that the most of the retailers wants to keep deep freezer
provide by the company.
77

78. Mode of payment for deep freezer:
Retailers C.D.P Installment Security
100 17 40 43
17%
43%
40%
C.D.P Installment Security
The above graph shows that most of the retailers want to keep deep freezer
on either installment basis or security basis. Only 17% retailers are
interested for cash down payment.
78

79. Relationship on the basis of:
Retailers Trial basis Long term Short term
100 23 77 0
0%
23%
77%
Trial basis Long term Short term
The above graph shows that the most of the retailers wants to keep
relationship with Amul for long-term basis.
79

80. (ANALYSIS OF EXISTING AMUL’S OUTLETS)
Do you keep Amul ice cream?
Retailers Yes No
100 90 10
10%
90%
Yes No
About 90% of the existing Amul outlets are still keeping Amul ice cream.
Due to the lack of proper sales services 10% of the existing outlets are now
switch over to other companies.
80

81. From where you bought your deep freezer:
Retailers Amul Others
100 80 20
20%
80%
Amul Others
Most of the existing outlets purchased deep freezer from Amul. The graph
shows that 80% of the Amul outlets purchased their deep freezer from Amul.
81

82. Mode of purchase:
Retailers Cash down Installment Security
100 74 3 23
23%
3%
74%
Cash down Instalm. security
The graph shows that the 74% of existing retailers purchased their deep
freezer form Amul by paying cash. Only 23% of the retailers who have their
shops on prime location got deep freezer on security basis.
82

83. Which pack of ice cream is sold most?
Retailer Cups Cone Fundoo Candies/Bar Family/ Party
s pack
100 25 30 15 20 10
30
30
25
25
20
20
15
15
10
10
5
0
Cups Cone Fundoo Candies Party pack
The graph shows that the most saleable flavor is cone. Party pack and Cups
are also sold in bulks. The flavors that are not sold much are Fundoo and
Candies.
83

84. At what period of time customers comes in bulk:
Retailers Morning Afternoon Evening Night
100 0 30 50 20
50
50
45
40
30
35
30
20
25
20
15
10
5 0
0
Morning Afternoon Evening Night
In the evening from 6 p.m to 9 p.m the sale of ice cream reached to its
optimum level. The ice cream is not sale much in the morning period.
84

85. According to the retailer the flavour has maximum sale:
RETAIL VANIL CHOCOL BUTTE PINAPPLE/M KAJU/PIS ANJEER/LIT
ER LA ATE R ANGO TA CHI
SCOTC
H
100 25 15 30 15 10 5
30 30
25 25
20
15 15 15
10 10
5 5
0
VANILLA BUTTER SCITCH KAJU/PISTA
3-D Column 1
The graph shows that the most demanded flavor is vanilla. After that Butter
Scotch gets the position. Anjeer and Litchi are rarely sold in the market.
85

86. Preference given to attributes:
RETAILERS PRICE MARGIN QUALITY VARIETY PACK. AVALB. TAST
100 7 23 18 6 17 6 13
10 7
13
23
6
17 18
6
PRICE MARGIN QUALITY VARIETY PACK
AVAIL. TASTE C.S
The above graph suggests that the quality of Amul ice cream is admired
more. The price and packaging also count. The problem area is the
availability of ice cream. The retailer says that all the flavors are not
available on demand.
86

87. ONE-WAY ANOVA TEST:
As in our research the number of independent variables are more than two so
here we are using one-way ANOVA. The number of independent variable is
five here. The independent variables are Amul, Kwality,,Mother Dairy,
Cream Bell and Vadilall. The dependent variables are price, margin, quality,
availability, company scheme, flavour, packaging and brand image.
The following data is calculated on the basis of one-way ANOVA with the
of SPSS software. The software gives the result very quickly. We have to
put the independent variable in variance one column and dependent variable
in variance two column. And after giving the right command we can get the
answer.
Here is one of the value for product quality attribute is calculated. The
degree of freedom four is obtained by subtracting one from independent
variable that is five. D.o.f 145 obtained by subtracting five from hundred
fifty dependent variables.
Sum of
d.o.f Mean square F Significance
squares
Between
316.627 4 79.157 36.557 0.00
the group
Within the
313.967 145 2.167
group
Total 630.593 149
87

88. COMPARISON OF TABLE VALUE WITH CALCULATED VALUE.
Criteria Calculated value Table value Acct./Reject.
Prod. Quality 36.557 3.32 Rejected
Price 39.355 3.32 Rejected
Services 33.522 3.32 Rejected
Schemes 29.314 3.32 Rejected
Advertisement 30.777 Rejected
3.32
Flavor 12.538 Rejected
3.32
Packaging 13.334 3.32 Rejected
Brand Image 37.340 3.32 Rejected
Since the table value is less than the calculated value, so here all the
hypotheses are rejected. It means that, there is a significance difference
between the preferences given by the retailers to the different attributes of
Amul ice cream and its competitors.
88

89. 89

90. FINDINGS
After analyzing all the data given by shopkeepers we found certain key
findings that is very important for our project.
1.Most of the retailers are interested for keeping Amul Ice Cream.
2. Retailers are not satisfied with the services provided by the company.
3.Most of the retailers like to keep deep freezer on installment basis and
security basis.
4.Cone and Party packs are sold most.
5.The sale of ice cream is higher in evening.
6.The full varieties of flavor are not available on regular basis.
7. Prices of Amul ice cream are almost as par customers need.
8. Margin in Amul ice cream is very high.
9. People were highly satisfied with product quality of Amul.
10. Although Amul has opened numerous outlets it is seen that distributors
are finding it
90

91. difficult to deliver supplies in the stipulated time leading to retailer in
convenience.
11. It was found that many deep freezers had developed technical snags and
service
personal was late in rectifying them. This created a negative rapport in
mind of the
retailers.
12. Retailers are unsatisfied with the replacement of unsold Amul ice cream.
13. Distributors could not provide all type of varieties because of less stock.
14. Other companies are providing deep freezers at law security which
attract the retailers
and create threat for HADF scheme.
91

92. RECOMMENDATION:
1) Relationship with retailers and company should be kept under a
close watch
2) Salesmen should be given the responsibility to handle the
retailer’s grievances
3) Orders by the retailers should be executed in a proper manner to
avoid irregular availability.
4) Low security and easy installment should be given on deep
freezer.
5) Promotion activities should take into consideration in two
different ways a) Company should associate themselves with
social events, b) Company should use electronic as well as print
media for their advertisement.
6) Company should give special offers to retailers frequently.
7) Company should expand their business throughout the small
towns.
8) Company should open exclusive Amul parlors and outlets in big
shopping mouls for promotion in higher segment.
92

93. 9) There have been a lot of complaints about replacement policy of
Amul. Amul should try to improve its replacement policy and
make it somewhat liberal.
10) Innovative schemes like Priviledge cards giving discount on
successive purchases may be introduced to make a customer
brand loyal to Amul.
93

94. 94

95. CONCLUSION
There is an ample scope for ice cream making companies do progress in this
lus green environment. The market size is increasing day by day and the
demand for new flavors are arising. The companies like HLL, Cream Bell,
Vadilall, and Mother Dairy are trying to capture more market share with
their new ideas and plan. As per Amul is concern the company should
become liberal on his policies. Amul market share in central Delhi is high
but for maintaining the growth rate it should give the retailers more facilities
for opening of new outlets and running successfully. The company also
needs a proper distribution network for availability of products at demand.
95

96. REFERENCES
1 BOOKS.
• Marketing management by Philip Kotler
Published by Pearson Education Pvt. Ltd, Indian Branch,
12th edition ,
• Hunger J.D &Wheelen T.L ,Essentional of strategic
Management ,Prentice-Hall,3rd edition,2004,pp-81-94
• Wheelen T.L & Hunger J.D-Concept in strategic Management
& Business policy,Pearson education,9th edition ,
2007,pp-135-145
2 INTERNET.
• www.Amul.com
• www.google.com
• www.indiatimes.com
• www.infoline.com
3 MAGAZINES.
• India today, April 19, 2009, Page no-36
• INSIGHT-The Consumer Magazine, May-June 2009, Page no – 6-12
96

97. 97

98. Questionnaire
(For New Outlet)
CONSUMER DETAILS:
Name:
Address:
Contact Number:
1. Have you ever through of expansion of your business in terms of ice -
cream?
Yes No
If no why
_______________________________________________________
2. If yes, which brand would you like to go for?
i) Amul ii) Kwality iii) Mother Dairy iv) Cream Bell
3. Rank according to your preference.
High Moderate Low
Amul
Kwality
Mother Dairy
Cream Bell
4. What is your preference about following companies on the given
qualities ?(1-5)
Amul Kwality Mother Dairy Cream Bell
i) Price
98

99. ii) Margin
iii) Quality
iv) Variety
v) Packaging
vi) Availability
5. Would you like to have deep freezer provided by the company
Yes No
6. If No,
why_____________________________________________________
__
7. If yes, then which mode of payment are you looking for.
i) Cash down payment
ii) Installment
iii) Security
8. Would you like to have retailership on?
i) Trial basis
ii) Long term
iii) Short term
Date: Signature:
______________
99

100. (FOR EXISTING OUTLETS)
Name: ______________________________________
Address: ____________________________________
Contact No. __________________________________
Dear Customer,
This survey is made for the purpose of my Summer Project and doesn’t have
any commercial impact.
1. Do you keep Amul ice cream?
a. Yes b. No
If no than why
________________________________________________
2. How long you are keeping Amul ice cream?
a. Less than six months
b. 6 to 12 months
c. 12 to 18 months
d. more than 18 months
100

101. 3. What is the sales turnover from day one?
a. 1st 6th months__________________
b. between 6 to 1 year______________
c. 1 to 2 year_____________________
d. 2 to 3 years_____________________
4. Form where you brought your deep freeze?
a. from Amul _________
b. other source ( Please specify)_______________________
5. On which basis you procured your Deep Freezer?
a. Cash down payment:___________________________
b. Installment:__________________________________
c. Security:____________________________________
d. Other:______________________________________
6. How many brands you keep?
____________________________________________________________
_
____________________________________________________________
_
7. How many customers are looking for Amul Ice cream (percentage)?
101

102. 1 - 10 10 - 20 20 – 30 30 – 40 40 and above
8. According to which brand of Ice Cream has maximum sales.
Brand Rank Reason
Amul
Kwality wall’s
Vadilal
Mother dairy
Cream bell
9. According to you which flavour of Ice-cream has maximum sales?
Flavour (Rank them at a scale of 1 - 5)
a. Vanilla
b. Strawberry
c. Chocolate
d. Butter Scotch
e. Mango/Pineapple/Orange
f. Kaju/Pista/Kessar
g. Anjeer/Litchi
Do you feel color of the Ice Cream affect its demand? Yes No
102

103. If ‘Yes’ then which color _________________________
10.Which flavors are mostly preferred under Family/Party Pack?
___________________________________________________
11.Which pack of Ice Cream is most sold? (rank at a scale of 1 - 5)
a. Cups
b. Cone
c. Fundoo
d. Candies/Bar
e. Family/Party Pack
12.Please grade different companies on the following attributes in context
of ice Cream
Scale on the following basis: (5 as Very good and 1 as Very Poor)
Very Good
Good
Normal
Poor
Very Poor
Attributes Brand Names
103

104. Kwality Mother Cream
Amul Walls Vadilal Dairy Bell
Product
Quality
Price
Service
Schemes
Advertising
Brand
Image
Flavors
Packing
Total
13.At which period of time customers comes in bulk?
Morning Afternoon Evening Night
14.Any suggestion or observation to bring more sales of Amul Ice Cream
____________________________________________________________
Date: Signature:
_______________
104

105. Commercial Terms & Condition
• The above price (indicated in col. 2 & 3) are inclusive of Excise Duty
and Sales Tax.
• The prices are on FOR basis.
• Transportation charges from Dadra to all courier location are included in
the above price.
• For other locations delivery will be free upto 20kms. From the nearest
branch of courier.
• For outside 20kms, delivery charges will be extra @ Rs. 7/- per km. Up
and down on per unit basis.
• All entry tax and octrol if any will be extra as applicable.
• The above prices are inclusive of stabilizer prices.
• Charges for Five-year warranty are included in the above prices.
• 100% payment in advance from the retailers in the form of DD
drawn in favour of Voltas Limited – Hyderabad Unit and payable at
Hyderabad for Dadra Billing and at New Delhi for local billing.
105