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HOW TO INCREASE MARKET SHARE OF AMUL ICE
                 CREAM
                             PRESENTED BY
                             LOKESHA JC
                             M-3, Roll No.-24
                             Professor guide:
                              Geeta Shetti
Company profile- AMUL

• Established in 1946
• AMUL was started out of white revolution by
  Dr verghese
• India’s 4th largest FMCG company
• Total net worth is 12000 crores in 2011-12
Overview to GCMMF
Members                                     13 district cooperative milk producers union
No. of producers members                    3.03 million



No. of village societies:                   15,712




Total milk handling capacity:               13.67 million liters per day




Milk collection(2010-2011):                 3.45 billion liters




Milk collection(daily average 2010-2011):   9.02 million liters




Milk drying capacity:                       647 mtr. per day




Cattle feed manufacturing capacity:         3690mtr.per day
Sales turn over(2010-2011):                 9774crores(US$ 2.2 billion)
Objectives
• Understanding of ice cream industry & AMUL’S
  position in the market
• To increase the sale of AMUL ice cream
• Understanding the distribution line of AMUL ice cream
  in mumbai
• Conduct an exhaustive market research on
  introduction the new flavor
• To find satisfaction level of retailers with AMUL service
• Study the problems at company, distributor and sales
  person level
Important statistics about AMUL
• World’s largest pouched milk brand with
  annual turnover of US $1050 million
• Turnover of 2010-11 is 67.11billion
• Owns more than 3000wholesale dealers and
  500,000 retailers
• Owns 30dairy plants, renowned AMUL brand
  name
Literature Review
      Origin of the AMUL ICE CREAM
• Since its launch in 1996,AMUL ice creams have
  consistently combated competition like Kwality
  walls, Mother dairy and other brands
• The customers have shown huge faith in the AMUL ice
  creams & today it’s the No.1 ice cream brand of the
  country
• Nearly 4times large as its competitor, now it is nation’s
  No.1 brand
• AMUL able to write the such a successful story because
  of the quality of its products, economic pricing &
  service and the believes consumer have in the brand
• It was then launched in mumbai in 1997
Presentation1
Factors affecting to success of AMUL
                  ice cream
•   Price differential
•   Quality of products
•   Taste
•   Brand name
•   And many other aspects
Segments in AMUL ICE CREAM

         segments


     Daily
               party packs
  consumable
Market share of ice cream brands in
              india
SWOT analysis of AMUL ice cream
Strengths:
• Biggest sourcing base for milk & milk products in india
• 39% market share in the national ice cream market
• Penetration pricing strategy- Amul is price warrior in the
  ice cream market and currently has a very wide range to
  offer for all the price points
• Reputation of high quality
• E-commerce, new products and process technology
Weakness

• Advertise is low profile, as the results of the survey show.
  Majority of the respondents have hardly seen any Ad of
  Amul ice cream. However kwality walls on the other hands
  into heavy advertising and consequently, is popular
• Shortage of stock during season
• As per the survey, retailer list a credible replacement policy
  as a factor very high on their wish list. They would be
  willing to make future investment only for that brand which
  offers replacement facilities, Amul has no replacement
  policy
• Less attractive packaging
• Distribution problems
opportunities
• Internet promotions are a good means of
  awareness which should be tapped
• Amul can use the umbrella strategy for its new
  SKU’s
• It is high growth segment as the population is
  very increasing with never – ending demands
• Distribution coverage
Threats
• Amul is currently facing stiff competition from Havmor
  and may face more threat from the local
  manufacturers in the low priced segment ice creams.
• The customers have very well received the kwality
  walls product differentiation strategy and mother dairy
  is also pushing up its advertising strategy.
• Also the low per capita income low per capita
  consumption of the people is a threat to Amul
• Free entry to the markets
• Even vadilal is coming up with new strategy and
  promotions of various variants of ice cream
Major competitors
•   Kwality walls
•   Mother dairy
•   Havmor
•   Vadilal
•   Pastonji
Research methodology
Research design:
•     Exploratory research: to gather preliminary
  data to shed light on the real nature of the
  problem and suggest possible solutions/new
  ideas.
•     As per my objective of the research, the
  research questions would try to find out the
  current situation in the market regarding the
  satisfaction level of the retailers and consumers
  in the market.
Data collection method
• Primary data- the respondents were
  personally interviewed with the help of a
  structured questionnaire
• Secondary data-collected the secondary data
  from the Amul sales officers, PSM’s,
  distributors and through short interviews and
  informal chats.
Tools used for research
• Questionnaire
• Short interviews
Sampling plan
• Sampling unit: retailers selling ice creams and
  customers.
• Sample size: 100 retailers
Area of research

Geographical region   Southern mumbai   Western mumbai     Central mumbai



Areas                 CST, Colaba       Andheri, bandra,   Ghatkpor, & vikroli
                                        Goregoan
Analysis of retailer’s survey
• 1. Do you sell Amul ice creams?
• Yes
                        Analysis
• No
                    No
                   32%




                              Yes
                              68%
Contd.
•   2. If yes, which categories of ice creams are preferred by consumers?
•   Family packs
•   Cups
                        35
•   Cones
•   Sticks              30


•   Others              25


                      20

                                                                             Analysis
                      15


                      10


                       5


                       0
                           Family Packs     Cups   Cones   Sticks   Others
Contd.
•   Which is the most preferred brand of ice cream, customers like to buy?
•   Amul
•   Mother dairy
•   Kwality walls
•   Vadilal
•   Pastonji                                Most Preffered Brand
•   Others_________
                                                   3%
                                              6%

                                         9%

                                                                             Amul
                                                                             Mother Diary
                                                            44%
                                                                             Kwality Walla
                                                                             Vadilal
                                                                             Pastonji
                                   27%
                                                                             Others




                                                    11%
Contd.
•   Which company gives you the best retail margins?
•   Amul
•   Mother dairy
•   Kwality walls
                                            Retail margins
•   Vadilal
•   Pastonji                      31%

•   Others_____
                          24%




                                                    15%
                                                                           13%
                                                                 12%




                                                                                      5%




                          Amul   Mother diary   Kwality walls   Vadilal   Pastonji   Others
Results & interpretation
•   Issue regarding deep freezer
•   Advertising issues
•   Observation of the ice cream stock
•   Distribution related problems
•   Distributor related problems
•   Retailer & company related problems
Conclusion
• The most effective medium through which people have
  which come to know about the new flavors is by “word
  of mouth” publicity by friends and relatives
• As far as advertisement inside shops are concern
  retailer had a 50-50response
• Majority of the retailers would appreciate the new
  flavor to be introduce in small pack as well
• Almost all retailers are concerned about the damage
  replacements and margins
• Sales man’s visit is as less as a once a month in most
  places
Limitations of the study
• The sample size of the survey was very large and
  tedious to interview
• The time taken to interview each consumer and
  retailer was a lot as every consumer as to be first
  explained everything and had to be deal with patience
• The consumer’s opinion at the times was very biased
  due to existence of Amul in the market since many
  years
• The time frame was given us was not enough to cover
  a larger sample size.
Recommendations
• There has to be enough promotional campaigns pre-launch
  so that consumers are aware about the products and
  flavors
• The Few flavors has a negative feedback, should be pull
  back from market as they create negative impression on
  consumer perception and towards Amul
• Company can give gift hampers of their product or free
  dinner as an alternative instead of cash as an incentive to
  motivate their salesman
• The company should get proper feedback from retailers
  time to time. In case they are facing any problems any
  problem it can be solved timely. Without delays.
• Company can advertise in POP’s in local language
Thank you

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Presentation1

  • 1. HOW TO INCREASE MARKET SHARE OF AMUL ICE CREAM PRESENTED BY LOKESHA JC M-3, Roll No.-24 Professor guide: Geeta Shetti
  • 2. Company profile- AMUL • Established in 1946 • AMUL was started out of white revolution by Dr verghese • India’s 4th largest FMCG company • Total net worth is 12000 crores in 2011-12
  • 3. Overview to GCMMF Members 13 district cooperative milk producers union No. of producers members 3.03 million No. of village societies: 15,712 Total milk handling capacity: 13.67 million liters per day Milk collection(2010-2011): 3.45 billion liters Milk collection(daily average 2010-2011): 9.02 million liters Milk drying capacity: 647 mtr. per day Cattle feed manufacturing capacity: 3690mtr.per day Sales turn over(2010-2011): 9774crores(US$ 2.2 billion)
  • 4. Objectives • Understanding of ice cream industry & AMUL’S position in the market • To increase the sale of AMUL ice cream • Understanding the distribution line of AMUL ice cream in mumbai • Conduct an exhaustive market research on introduction the new flavor • To find satisfaction level of retailers with AMUL service • Study the problems at company, distributor and sales person level
  • 5. Important statistics about AMUL • World’s largest pouched milk brand with annual turnover of US $1050 million • Turnover of 2010-11 is 67.11billion • Owns more than 3000wholesale dealers and 500,000 retailers • Owns 30dairy plants, renowned AMUL brand name
  • 6. Literature Review Origin of the AMUL ICE CREAM • Since its launch in 1996,AMUL ice creams have consistently combated competition like Kwality walls, Mother dairy and other brands • The customers have shown huge faith in the AMUL ice creams & today it’s the No.1 ice cream brand of the country • Nearly 4times large as its competitor, now it is nation’s No.1 brand • AMUL able to write the such a successful story because of the quality of its products, economic pricing & service and the believes consumer have in the brand • It was then launched in mumbai in 1997
  • 8. Factors affecting to success of AMUL ice cream • Price differential • Quality of products • Taste • Brand name • And many other aspects
  • 9. Segments in AMUL ICE CREAM segments Daily party packs consumable
  • 10. Market share of ice cream brands in india
  • 11. SWOT analysis of AMUL ice cream Strengths: • Biggest sourcing base for milk & milk products in india • 39% market share in the national ice cream market • Penetration pricing strategy- Amul is price warrior in the ice cream market and currently has a very wide range to offer for all the price points • Reputation of high quality • E-commerce, new products and process technology
  • 12. Weakness • Advertise is low profile, as the results of the survey show. Majority of the respondents have hardly seen any Ad of Amul ice cream. However kwality walls on the other hands into heavy advertising and consequently, is popular • Shortage of stock during season • As per the survey, retailer list a credible replacement policy as a factor very high on their wish list. They would be willing to make future investment only for that brand which offers replacement facilities, Amul has no replacement policy • Less attractive packaging • Distribution problems
  • 13. opportunities • Internet promotions are a good means of awareness which should be tapped • Amul can use the umbrella strategy for its new SKU’s • It is high growth segment as the population is very increasing with never – ending demands • Distribution coverage
  • 14. Threats • Amul is currently facing stiff competition from Havmor and may face more threat from the local manufacturers in the low priced segment ice creams. • The customers have very well received the kwality walls product differentiation strategy and mother dairy is also pushing up its advertising strategy. • Also the low per capita income low per capita consumption of the people is a threat to Amul • Free entry to the markets • Even vadilal is coming up with new strategy and promotions of various variants of ice cream
  • 15. Major competitors • Kwality walls • Mother dairy • Havmor • Vadilal • Pastonji
  • 16. Research methodology Research design: • Exploratory research: to gather preliminary data to shed light on the real nature of the problem and suggest possible solutions/new ideas. • As per my objective of the research, the research questions would try to find out the current situation in the market regarding the satisfaction level of the retailers and consumers in the market.
  • 17. Data collection method • Primary data- the respondents were personally interviewed with the help of a structured questionnaire • Secondary data-collected the secondary data from the Amul sales officers, PSM’s, distributors and through short interviews and informal chats.
  • 18. Tools used for research • Questionnaire • Short interviews
  • 19. Sampling plan • Sampling unit: retailers selling ice creams and customers. • Sample size: 100 retailers
  • 20. Area of research Geographical region Southern mumbai Western mumbai Central mumbai Areas CST, Colaba Andheri, bandra, Ghatkpor, & vikroli Goregoan
  • 21. Analysis of retailer’s survey • 1. Do you sell Amul ice creams? • Yes Analysis • No No 32% Yes 68%
  • 22. Contd. • 2. If yes, which categories of ice creams are preferred by consumers? • Family packs • Cups 35 • Cones • Sticks 30 • Others 25 20 Analysis 15 10 5 0 Family Packs Cups Cones Sticks Others
  • 23. Contd. • Which is the most preferred brand of ice cream, customers like to buy? • Amul • Mother dairy • Kwality walls • Vadilal • Pastonji Most Preffered Brand • Others_________ 3% 6% 9% Amul Mother Diary 44% Kwality Walla Vadilal Pastonji 27% Others 11%
  • 24. Contd. • Which company gives you the best retail margins? • Amul • Mother dairy • Kwality walls Retail margins • Vadilal • Pastonji 31% • Others_____ 24% 15% 13% 12% 5% Amul Mother diary Kwality walls Vadilal Pastonji Others
  • 25. Results & interpretation • Issue regarding deep freezer • Advertising issues • Observation of the ice cream stock • Distribution related problems • Distributor related problems • Retailer & company related problems
  • 26. Conclusion • The most effective medium through which people have which come to know about the new flavors is by “word of mouth” publicity by friends and relatives • As far as advertisement inside shops are concern retailer had a 50-50response • Majority of the retailers would appreciate the new flavor to be introduce in small pack as well • Almost all retailers are concerned about the damage replacements and margins • Sales man’s visit is as less as a once a month in most places
  • 27. Limitations of the study • The sample size of the survey was very large and tedious to interview • The time taken to interview each consumer and retailer was a lot as every consumer as to be first explained everything and had to be deal with patience • The consumer’s opinion at the times was very biased due to existence of Amul in the market since many years • The time frame was given us was not enough to cover a larger sample size.
  • 28. Recommendations • There has to be enough promotional campaigns pre-launch so that consumers are aware about the products and flavors • The Few flavors has a negative feedback, should be pull back from market as they create negative impression on consumer perception and towards Amul • Company can give gift hampers of their product or free dinner as an alternative instead of cash as an incentive to motivate their salesman • The company should get proper feedback from retailers time to time. In case they are facing any problems any problem it can be solved timely. Without delays. • Company can advertise in POP’s in local language