SIP REPORT OF AMUL.docx
- 1. 1 | P a g e A STUDY ON “SALES AND DISTRIBUTION OF AMUL’S PRODUCTS AT RETAIL LEVEL” UNDERTAKEN AT “AMUL” SUBMITTED TO INDIRA INSTITUTE OF MANAGEMENT, PGDM POST GRADUATION DIPLOMA IN MANAGEMENT BY Abhishek kumar (PGDM BATCH 2021-2023) s UNDER THE GUIDANCE OF Dr. Sakshi mann INDIRA INSTITUTE OF MANAGEMENT PGDM PUNE
- 2. 2 | P a g e COLLEGE CERTIFICATE This is to certify that the Summer Internship Project Report titled “SALES AND DISTRIBUTION OF AMUL’S PRODUCTS AT RETAIL LEVEL” is a record of project done by “Abhishek Kumar” under my guidance and that it has not previously formed the basis for the award of any degree, fellowship, or associateship to him. While completing this assignment, we found him/ her sincere and hardworking. We wish him all success in his future endeavor. Prof. Krushna P Mishra Dr. Sakshi Mann Director In Charge SIP Mentor Indira Institute of Management PGDM Indira Institute of Management PGDM .
- 3. 3 | P a g e COMPANY CERTIFICATE
- 4. 4 | P a g e DECLARATION I hereby declare that the Summer Internship Project (SIP) report on “SALES AND DISTRIBUTION OF AMUL’S PRODUCTS AT RETAIL LEVEL’ is an original piece of work done by me under the guidance of (Sakshi Mann). All primary, secondary data and other relevant information drawn from different sources for this report are duly acknowledged by me. This report is in partial fulfilment of degree of Post Graduate Diploma in Management (21june to 21july) 2020-22 from Indira Institute of Management. I have put all my sincere efforts in making this report. No part of this report has been submitted by me to any university / institution for the award of any diploma or degree
- 5. 5 | P a g e ACKNOWLEDGEMENT It takes great pleasure for me to acknowledge my deep sense of gratitude to all those who have helped me in completing this project successfully. first, I would like to thank Indira institute of management for providing me an opportunity to undertake a project as a partial fulfilment of my PGDM Degree. It gives me immense pleasure in completing the project & submitting the final report. The support and guidance received from allmembers who contributed & contributing to this project, was vital for the successfor the project. I am indebted to my Mentor (Senior Sales Executive, Amul), for being my mentor throughout the period of my internship and setting apart time from her busy schedule and making herself available, for guiding me through thecontents of this report. Her open approach and a unique management style stirred curiosity within me. I would like to thank my faculty, family members and friends without their support this project would be a distant reality ABHISHEK KUMAR 21IIMPPGDM063
- 6. 6 | P a g e TABLE OF CONTENTS SR. NO. PARTICULAR PAGE 01 EXECUTIVE SUMMARY OF THE PROJECT 07 02 INTRODUCTION 08 03 OVERVIEW OF THE INDUSTRY 09-12 04 COMPANY PROFILE 13-25 05 OBJECTIVE OF THE PROJECT 25 06 RESEARCH METHODOLOGY 26-27 07 DATA ANALYSIS 28-38 08 SWOT ANALYSIS OF AMUL 39 09 ANALYSIS AND FINDING 40 10 SUGGESTION AND RECOMMENDATION 41 11 LIMITATION 42 12 CONCLUSION 43 13 BIBLIOGRAPHY 44 14 APPENDIX (QUESTIONNAIRE) 45
- 7. 7 | P a g e EXECUTIVE SUMMARY OF THE PROJECT A project report has been prepared on “SALES AND DISTRIBUTION OF AMUL’S PRODUCTS AT RETAIL LEVEL.” from AMUL. This project is focused on these main factors: - Comprehensive analysis of Amul milk in the Retail market and multivendor market Competitive analysis with other competitors in the Retail market and multivendor market. I have visited various key outlets of retail market and multivendor market at different region of Akurdi to find out the problems of Amul milk based on several parameters like scheme or cash preference, service satisfaction, delivery satisfaction. A competitive study against the competitors was done based on several parameters like service satisfaction, distributor’s margin, scheme provider, to understand the current scenario of Amul milk and the competitors’ brand in the market, and a customer survey was conducted to know about their preferences and needs and also conducted for umbrella promotion for promoting. This project was done to find out the key issues of Amul milk as well as competition mapping with other brands and provide strong recommendation to the company which can be implemented to obtain a better result. Some recommendations for Amul to retain the leading positions are: - Packaging should be improved to avoid spoiling problem and leakage problem. Scheme is one of the biggest issue for Amul milk in distributor’s market which has to be solved providing a better solution to the distributor. Less profit margin for both distributors and retailers, so this problem will be solved to arrange a quarterly meeting with distributor and retailers differently. Distribution channel by the distributors must be clear to maintain a uniform dealer margin, and do not change distributor frequently because he is the only one person who act as a connecting link between company and retailers
- 8. 8 | P a g e Introduction Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. The word Amul is derived from the Sanskrit word Amulya meaning rare, valuable. The co-operative was initially referred to as Anand Milk Federation Union Limited hence the name AMUL. Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operativeMilk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million milk producers in Gujarat. Amul spurred India's White Revolution, which made the country the world's largest producer of milk and milk products. In the process Amul became the largest food brandin India and has ventured into markets overseas. Dr. Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with the success of Amul. Over the years, brands created by cooperative have become synonymous with quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan) are 9 among those that has earned customer confidence.
- 9. 9 | P a g e MILK INDUSTRY IN INDIA Today, India is ‘The Oyster’ of the global dairy industry. It offers opportunities in large number to entrepreneurs worldwide, who wish to capitalize on one of the world’s largest and fastest growing markets for milk and milk products. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. It may transfer technology, sign joint ventures or use India as a sourcing center for regional exports. India’s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover, with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to the support and subsidy to their domestic milk products sector. Also, India today is the lowest cost producer of per liter of milk in the world. 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 these milk producers have already obtained quality. India has the credit of being the largest producer as well as the biggest consumer of milk in the world. It also has the world’s largest dairy herd (comprised of cows and buffalos) . Milk production in the country has grown at a compound annual growth rate of about 6.2 per cent to reach 209.96 Mn tones in 2020-21 from146.31 Mn tonnes in 2014-15 A budgetary outlay of INR 31,560 Crore is recommended by the working group for 12th Five Year Plan of Planning commission of India for animal husbandry and dairy sector to achieve growth rate of 6%. In the past 20 years, milk production in India has doubled and has reached the 116.2 million tons a year thus becoming India’s No. 1 farm commodity. The Indian dairy market size reached a value of nearly INR 11356.6 billion in 2020. The Indian dairy market is expected to grow at a CAGR of around 15.4% in the forecast period of
- 10. 10 | P a g e Operation Flood has led to the modernization of India’s dairy sector and created a strong network for procurement processing and distribution of milk by the co-operative sector. Per capita availability of milk has increased from 132 gm. per day in 1950 to over 220 gm. per day in 1998. The main trust of operation flood was to organize dairy co-operatives in the milk shed areas of the village, and to link them to the metro cities, which are the main market for pouch milk Today’s per capita consumption has been increased up to 290 gm. per day (2012-13) India has always been the largest producer (an estimated 400 million liters per day currently) and consumer of milk in the world. But it remained a boring market largely because the per capita consumption was low, and most of the milk was consumed in its basic, liquid form, or at best as ghee and some butter. Over the past few years, though, a couple of things have changed to make the market vastly more attractive to new players. One, as global dairy consumption stagnates or even dips, Indian consumption is going up. India's per capita consumption of milk at 97 liters a year is way below that of western countries like the US, which boasts per capita consumption of 285 liters per year, or the EU, which consumes 281 liters per capita per year. But while Indian per capita demand is going up 4.5 per cent year-on-year, global per capita consumption is growing at an anemic 1.5 per cent, and in some countries in the West it may be falling, points out T. Nandakumar, Chairman, National Dairy Development Board (NDDB).
- 11. 11 | P a g e Fig: Indian Dairy Market Structure Nevertheless, the Indian dairy sector has started as the producer-owned and professionally- managed cooperative system. As of March 2001, India's 96,000 local dairy cooperative societies (DCS) included more than ten million farmers 3 have integrated in a three-tiered cooperative structure. Though dairy cooperative has found throughout India, the cooperative movement has been more successful in few States, notable Gujarat. Gujarat’s success can be attributed to a higher rate of farmer activism and more efficient political institution. Over the years, States have developed popular dairy brands such as Amul from Gujarat. These brands have earned high degrees of brand recognition and customer confidence, especially within in the respective states. The Indian dairy industry faces changes from the international dairy market. The Indian dairy market had characters characterized by relatively high cost in milk production, processing and marketing, and relatively poor quality of milk due to unhygienic handling, this could potentially pause a significant threat to industry and its farmers. A majority (77%) of the milk sold in India is unorganized and in the form of loose milk sold bymilkmen. The organized sector in liquid milk is highly fragmented with several regional players and co-operatives. Consumers are shifting from loose liquid milk to branded packaged milk due safety and quality concerns. The organized liquid milk market is growing faster than the unorganized market. Amul has a strong presence in rural as well as urban parts India and is currently the largest private player in India. Indian Dairy Market Organized Dairy Market Unorganized Dairy Market Cooperatives PrivateDairies Traditional Milkmen Self Consumption at Home
- 12. 12 | P a g e BRIEF PROFILE OF THE PLAYERS IN THE INDUSTRY: - The Birth of Amul: - It all began when milk became a symbol of protest Founded in 1946 to stop the exploitation by middlemen Inspired by the freedom movement The seeds of this unusual saga were sown more than 65 years back in Anand, a small town in the state of Gujarat in western India. The exploitative trade practices followed by the local trade cartel triggered off the cooperative movement. Angered by unfair and manipulative practices followed by the trade, the farmers of the district approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own co-operative, which would have procurement, processing, and marketing under their control. In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in 1946. Main products produced by Amul industries are: - Amul's product range includes milk powders, milk, butter, ghee, cheese, dahl, yoghurt, buttermilk, chocolate, ice cream, cream, biscuit, shrikhand, paneer, Gulab jamuns, flavored milk, basundi, Amul's lassi Pro-Biotic, Ice-cream and others.
- 13. 13 | P a g e COMPANY PROFILE AMUL INDUSTRIES LIMITED Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. Formed in 1950, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million milk producers in Gujarat. The Company's principal activity is the manufacture and sale of milk, chocolate, ice cream and dairy products. Overview of the Company: - Name: - Amul Type: - Cooperative Industry: - Dairy/FMCG Headquarters: - Anand, Gujarat, India Area Served: - Multinational Product: - Milk, Chocolate, Ice Cream and Dairy founder Chairman: - Verghese Kurien VISION & MISSION :- Vision: - Amul ‟svision is to provide more and more satisfaction to the farmers, employees and distributers Mission: - We at GCMMF (Gujarat Co-operative Milk Marketing Federation) endeavor to satisfy the taste and nutritional requirements of the customers of the world, through excellence in marketing by our committed team. Through co-operativenetworking, we are committed to offering quality products that provide best value for money.
- 14. 14 | P a g e History: - Amul cooperative registered on 14 December 1946 as a response to the exploitation of marginal milk producers by traders or agents of the only existing dairy, the Polson dairy, in the small city distances to deliver milk, which often went sour in summer, to Polson. The prices of milk were arbitrarily determined. Government had given monopoly rights to Polson to collect milk from Kaira and supply it to Bombay city. Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson (who did the same but gave them low prices). He sent Morarji Desai to organise the farmers. In 1946, the milk farmers of the area went on a strike which led to the setting up of the cooperative to collect and process milk. Milk collection was decentralized, as most producers were marginal farmers who could deliver, at most, 1–2 liters of milk per day. Cooperatives were formed for each village, too. The cooperative was further developed and managed by Dr.Verghese Kurien with H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk (for the first time in the world) and a little later, with Kurien's help, making it on a commercial scale, led to the first modern dairy of the cooperative at Anand, which would compete against established players in the market. Kurien's brother-in-law K.M. Philip sensitized Kurien to the needs of attending to the finer points of marketing, including the creation and popularization of a brand. This led to the search for an attractive brand name. In a brainstorming session, a chemist who worked in the dairy laboratory suggested Amul, which came from the Sanskrit word "amulya", which means "priceless" and "denoted and symbolized the pride of swadeshi production”. The trio's (T. K. Patel, Kurien, and Dalaya's) success at the cooperative's dairy soon spread to Anand's neighborhood in Gujarat. Within a short span, five unions in other districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set up. To combine forces and expand the market while saving on advertising and avoid competing against each other, the GCMMF, an apex marketing body of these district cooperatives, was set up in 1973. The Kaira Union, which had the brand name Amul with it since 1955, transferred it to GCMMF.
- 15. 15 | P a g e In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award. Technological developments at Amul have subsequently spread to other parts of India. The GCMMF is the largest food products marketing organisation of India. It is the apex organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing organisation for products under the brand name of Amul and Sagar. Over the last five and a half decades, dairy cooperatives in Gujarat have created an economic network that links more than 3.1 million village milk products with millions of consumers in India. Gujarat Cooperative Milk Marketing Federation Ltd. Overseas: - For the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets milk products under the Amul brand, is aggressively focusing on taking the brand to overseas markets. In fact, Amul products are now available in shelves across several countries including the US, China Australia, West Asian countries, and those in Africa. With an eye on both consumer (which includes products such as cheese, butter, ghee and shrikhand) and commodity (skim milk and butter oil) exports, GCMMF is targeting export revenues of about Rs. 200 crore this year. "Exports of milk products from India have become lucrative now. With most countries having reduced subsidies on milk products as per the WTO guidelines, milk products from India have become competitive in international markets. Earlier, international prices were lower than Indian prices. For our consumer products, we are targeting markets which have a large population of non- resident Indians," Mr. R.S. Sodhi, Head Marketing, GCMMF, said. On the commodity exports front, GCMMF has tied up with dairies in other countries. Most of the exports of skim milk and butter oil are to neighboring countries, West Asia, Africa, Afghanistan, China, and Singapore. Interestingly, China is emerging as a lucrative market for milk products exports. "China is a net importer of milk products. Also, the per capita consumption of dairy products in China is one- fourth of that in India with demand growing at 33 per cent," Mr. Sodhi said. However, exporting to the European countries is still a tough task due to the number of non-tariff barriers in place. India is the world's largest producer of milk with production growing at 4.5 per cent annually.
- 16. 16 | P a g e The Milk King: - With Amul stepping into the market, tricity customers will have more options to buy quality milk at competitive rates. Earlier, Verka --- being the biggest player in the organized sector --- used to dictate milk prices but now with another option available, prices would remain under control. Competition will ensure quality, say experts. Dairy farmers all smile Dairy farmers are likely to get better procurement price for their produce. It will also give a much- needed boost to the dairy industry. Amul pays Rs 565 per kg fat along with bonus to its suppliers, while Verka pays around Rs 520. “Verka will have to improve its quality and increase its procurement rates to retain suppliers. As of now, Amul is not procuring directly from dairy farmers and is banking on contractors for supply. But once they start procurement from dairy farmers, it would definitely make things difficult for Verka,” said a former chairman of Verka milk plant. Amul made its first plant functional in Batala in Gurdaspur district in November 2014. Most of its procurement is being done from Batala from where the milk is sent for packaging to a plant in Khamano in Fatehgarh Sahib district. Growth and Profitability: - Dairy major Amul on Saturday reported an 18 per cent increase in turnover at Rs. 27,085 crores for the last fiscal on an across-the-board sales increase. The GCMMF said it registered a sales turnover of Rs 38,542 crore in 2019-20, which is 17 per cent higher than the previous financial year Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul brand of milk and dairy products, had posted a turnover of Rs. 52000 crores. The federation said it aims to achieve a group business turnover of Rs 1 lakh crore by 2024-25. "We have achieved volume sales growth in all product categories," said R S Sodhi, Managing Director, and GCMMF. Pouch milk, the highest turnover product, has shown volume growth in double digits while products like butter, ghee, ice cream, UHT milk, flavored milk, paneer, and fresh cream have also registered a double-digit growth. Sodhi asserted that there was no negative impact of demonetization on its business. He added that member unions of GCMMF have opened more than 12.5 lakh new bank accounts for milk producer members and their almost entire payment is channelized.
- 17. 17 | P a g e adding new markets, launching of new products, and adding new milk processing capacities across India. Fig. Sales turnover in crore Business Joint Venture: - Shares of Escorts Ltd were trading higher 4% at Rs. 139 on BSE Today. The Company in pact with Amul Industries for manufacturing specialised tractors. Steeltrac is a specialised tractor which is complimentary to general purpose tractors which can efficiently operations like inter- weeding for farmers growing row- crops. The stock opened at Rs. 134.35 as against the previous close of Rs. 134 on BSE. It has hit a high of Rs. 140 and a low of Rs. 134 on BSE today. Total traded quantity on the counter stood at over 1.85 lk shares on BSE. Meanwhile, the benchmark BSE Sensex is trading at 28,879 up 97 points. Dairy Products: - Dairy products contribute close to 30% to Amul’s revenue. Britannia trades and markets dairy products, and its dairy portfolio grew to 57% in 2000-01 and by 30% in 2001-02. Amul holds an equity stake in Dynamix Dairy and outsources the bulk of its dairy products from its associate. Its main competitors are Nestlé India, the National Dairy Development Board (NDDB), and Britannia Industry Ltd.
- 18. 18 | P a g e Milk’s: - The company's factories have an annual capacity of 36,50,00000 liters. The brand names of milks include Amul Taaza, Amul Slim n Trim, Amul Gold, Amul Shakti, and Amul A2 buffalo milk. Amul Taaza, the mass market brand, realized 55% of Amul milk revenues in 2006. Out of the 400 million liters of milk that India produces per day, 160 million liters per day (48 per cent) is retained by the producers for their own consumption. The surplus milk that is available for sale is around 240 million liters per day (52 per cent) and out of that only 70 million liters per day is being used by the organized sector - consisting of co-operatives such as Amul, Mother Dairy (wholly owned subsidiary of NDDB) and Nandini (a brand owned by the Karnataka Cooperative Milk Producers Federation (KMF), as well as private sector players such as Nestle and Danone. Over 170 million liters of the surplus milk continues to be with the unorganised sector, comprising traditional doodhwalas. In value terms, the Indian milk economy is worth Rs 5 lakh crore, growing at a CAGR of 15-16 per cent, out of which the organised milk economy is worth Rs 80,000 crore. Over 80 per cent of milk consumption in India is that of liquid milk and over 55 per cent of the revenue of large co-operatives, such as Amul and Nandini, comes from selling liquid milk. There are still limited takers for value-added dairy products such as cheese, yogurts or flavored milk, but this is where much of the action is taking place today simply because of its higher margins, and the ability to differentiate and introduce new products. Equally, the fact that the milk cooperatives did not tap this market until the multinationals came in made it an area where the competition was relatively equal.
- 19. 19 | P a g e Awards and recognition: - GCMMF (Amul) won the World Dairy Innovation Awards-2014 of Best Marketing Campaign for its “Eat Milk with Every Meal” campaign. The finalists and winners in the World Dairy Innovation Awards 2014 were announced on 17 June 2014 at the 8th Global Dairy Congress in Istanbul, Turkey. Sh K. M Jhala, Chief General Manager, received the award. Gujarat Cooperative Milk Marketing Federation Ltd. received Forbes India Leadership Awards 2015 in the category of "Conscious Capitalist for the Year". Shri R S Sodhi, managing director, GCMMF received this prestigious award at a sparkling event held in Mumbai on 30th September 2015. GCMMF (Amul) won the 12th BML Munjal Award - 2017 for “Business Excellence through Learning and Development” in the Manufacturing - Public/Co-operative Sector category. The Award & Citation were received by our MD from Shri Prakash Javadekar, Hon’ble Union Minister of Human Resource Development during the Mind mine Summit, and an Annual Flagship event of Hero Enterprise, held in New Delhi on 20th April, 2017. Dr. R.S. Sodhi, Managing Director, GCMMF Ltd. received the IAA Leadership Awards 2019 Marketer of the year FMCG Food by IAA (International Advertising Association-India chapter during the 7th edition of the IAA Leadership Awards held on 26th July 2019 in Mumbai. Gujarat Cooperative Milk Marketing Federation Ltd. (Amul) received the Excellence in Crisis Superheroes Award from IMC Ramakrishna Bajaj National Quality Award Trust in an e-event held on Friday, 30 October 2020.
- 20. 20 | P a g e BUSINESS MODEL The AMUL Model: The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level. Establishment of a direct linkage between milk producers and consumers by eliminating middlemen Milk Producers (farmers) control procurement, processing and marketing Professional management Fig. The Amul model
- 21. 21 | P a g e The Amul model has helped India to emerge as the largest milk producer in the world. More than 16 million milk producers pour their milk in 185903 dairy cooperative societies across the country. Their milk is processed in 218 District Co-operative Unions and marketed by 28 State Marketing Federations, ensuring a better life for millions.
- 22. 22 | P a g e PORTER’S FIVE FORCE ANALYSIS Competitive rivalry Amul Butter enjoys a significant market share. It has market share of 79.1% in the domestic market of size $459 million. So as such, the competition current is not threatening the position of Amul in the butter industry. But when it comes to low fat butter, Amul is in a battle. Zydus Wellness’ Nutra lite is gaining market share in the low fat, low cholesterol butter category, a category where Amul has not been able to establish itself as yet. It has two products in this category, Amul Delicious and Amul Lite. Threat of substitutes :- Threat of substitutes is high. There is increasing awareness about the potential health concerns around consumption of certain dairy products, especially butter. The fact that Amul’s own low fat, low cholesterol butter variants have not been able to gain significant market share leaves the door open for other companies to take advantage of this potential weakness. Also, margarine, cheese spreads, and jams are being used instead of butter as table spreads and the options in the market are plenty. Competitive Rivalry MEDIUM Threat Of New Entrants MEDIUM Bargaining Power Of Customers HIGH Threat of Substitutes HIGH Bargaining Power Of Suppliers LOW
- 23. 23 | P a g e Threat of new entrants:- Threat of new entrants is medium. The barriers to entry are low and as such, there isa probability that some big player might want to enter the market. That being said, the significant market share that Amul holds means its position is quite secure. The established distribution network is an advantage for Amul. The biggest plus for Amulis the supplier base it enjoys. It has a strong connection with rural milk producers Bargaining Power of Buyers:- There is high bargaining power of the purchasers due to excellent competition. Switching expense is rather low for the customers as many companies sale a variety of comparable items. This appears to be an excellent risk for any company. Hence, Amul Dairy makes certain to keep its customers pleased. This has led Amul Dairy to be one of the devoted business in eyes of its purchasers. Bargaining Power of Suppliers:- In the food and drink industry, Amul Dairy owes the biggest share of market requiring higher number of supply chains. In response, Amul Dairy has actually also been worried for its providers as it believes in long-lasting relations. Corporate Social Responsibility, The Amul Way Corporate social responsibility (CSR) has been defined as the -commitment of business to contribute to sustainable economic development working with employees, their families, the local community, and society at large to improve their quality of life, in ways that are both good for business and good for development. I To meet with the CSR it is expected that a business in its entire procurement- production-processing-marketing chain should focus on human development involving the producer, the worker, the supplier, the consumer, the civil society, and the environment. Indeed, a very tough task. Most businesses would certainly flounder in not being able to achieve at least one or many of those expectations. But AMUL has shown the way. CSR – Sensitive Organisational Structure AMUL is a three-tier co-operative organisation. The first tier is the co-operative society at the village, of which; milk producers are voluntary members, managing the co- operative through a democratically elected 9-member managing committee, and doing business by purchasing milk from members and selling it to the district level co- operative. There are more than 11,000 co-
- 24. 24 | P a g e operatives in villages of Gujarat. The second tier is the district co-operative that processes milk into milk products, markets locally and sells surplus to the state co-operative for national and international marketing. There are 12 district co-operatives each being managed by a 15-member board elected by the college comprising the nominated representatives or chairmen of the village co-operatives. Third tier is the state level co-operative - the Gujarat Co-operative Milk Marketing Federation (GCMMF) responsible for national and international marketing of milk and milk products produced and sold to it. The GCMMF is managed by the board democratically elected by and from amongst the chairmen of the district co-operatives. The entire three-tier structure with the GCMMF at its apex, is a unique institution because it encompasses the entire chain from production of raw material to reaching the consumer with the end product. Every function involves human intervention: 23.60 lakh primary milk producers; 35,000 rural workmen in more than 11,400 village societies; 12,000 workers in 15 dairy plants; 750 marketing professionals; 10,500 salesmen in distribution network and 600.000 salesmen in retail network. Accumulation of human capital is sine qua non for the development and growth of any enterprise or economy. The GCMMF is sensitive towards CSR. It believes that technology and capital are replicable inputs but not the human capital. Since men are the basis for achieving the CSR, the GCMMF lays emp-hasis on their development into competent, courteous, credible, reliable, responsive communicators and performers’ CSR- Sensitive Business Philosophy: - The first step towards discharging the CSR is the business philosophy of the GCMMF. It is two- fold: one, to serve the interests of milk producers and second, to provide quality products to consumers as value for money. Evolution of an organisational system has ensured that the corporate social responsibility towards the primary milk producers, village and the ecological balance is fulfilled. The milk producers are paid for their milk in accordance with market forces and realisation of value for their produce. Invariably the price paid to the member-producers in Gujarat is higher by 15 per cent than the national average. Amul Relief Trust:- A devastating earthquake (Richter scale - 7.9) hit Gujarat on 26th January 2001. The epicenter of the quake was in Kutch district. It caused death of thousands of people, tens of thousands were injured, hundreds of thousands were rendered homeless, and damage of billions of Rupees was done. GCMMF formed a specific organization named "Amul Relief Trust" (ART) under the Chairmanship of Dr.V. Kurien in 2001 with a donation of Rs. 50 Millions for reconstruction of the school buildings damaged in the 2001 earthquake in the Kutch area. The Trust reconstructed 6 schools damaged by the above earthquake at a cost of Rs.41.1 millions
- 25. 25 | P a g e in Kutch area. Four of these schools started re-functioning from the last two academic sessions and the other two schools from the current session. A school reconstructed by Amul Relief Trust in the earthquake affected Ratadia Village in Mundra Taluka of Gujarat A school reconstructed by Amul Relief Trust in the earthquake affected Nana Asalia Village in Mundra Taluka of Gujarat. A school reconstructed by Amul Relief Trust in the earthquake affected Nana Moti bhadai Village in Mandavi Taluka of Gujarat Tree Plantation: - AMUL took an oath on 15th August 2007, after the flag hoisting ceremony, to plant a sapling and ensure that it grew into a tree. Farmers have also created nurseries to produce saplings and almost 45 such nurseries have been created as of date. Whole dairy cooperative farmers of Gujarat under GCMMF have so far planted 312 lakh saplings. Considering 47% survivability (based on post plantation survey data), when the saplings fully grow up, would provide additional 1,39,735 ha. of green cover which is additional 6.41% forest cover for Gujarat. OBJECTIVE OF THE PROJECT Amul industry in India in the organized sector produces around 70% of the total production, the balance 30% being contributed by the others milk brands. During the last seven years, Amul’s milk procurement prices to its farmer-members more than doubled from Rs. 24.30 per liter for buffalo milk (Rs. 337 per kg fat) in 2009-10 to Rs. 49 per liter (Rs. 680 per kg fat) in 2016-17. Since the cooperative’s total milk procurement also doubled during this period, from 90.9 lakh liters per day to 176.5 lakh liters per day, this effectively increased the income of its dairy farmers, four-fold in the last seven years. Amul is currently procuring around 150 lakh liters of milk daily from around 35 lakh milk producer members from over 18,500 villages. This project is focused on the two main factors of a company, these are : - Comprehensive analysis of problems of Amul milk in the Retail market. . Competitive analysis with other competitors in the Retail market.
- 26. 26 | P a g e I have done the first part of the project based on some parameters which are very effective to find out the problems of Amul pouch milk in the retail market and distributors market. Those parameters and the importance of the parameters are: - Preference for incentives: Amul does not have its own point and cash or schemes system as their incentives. Some of the shopkeepers want scheme and some of them want extra pouch packets in every caret. This problem has to be recovered to maintain a healthy relation with the shopkeepers. Delivery: A survey was conducted to understand the delivery related problems in retail and multivendor market. It is very important problem, and it has to be recovered very fast because if delivery of the ordered products are not placed within time then availability of the product goes down which results decrease of, to off take and market share. The segment of pouch milk which consists of high rate of customer demand but low rate of delivery system: A Survey was conducted in retail market to understand that which segment of pouch milk has higher demand but lower availability. RESEARCH METHODOLOGY Introduction: - The process used to collect information and data for the purpose of making project decision is called research methodology. The methodology may include interactions, surveys, and other research techniques and could include both present and historical information. This project was conducted through interactions of shopkeepers based on some parameters in questionnaire form and retail survey was conducted to understand the preference of retailer. Mechanics: - Place: - The survey was conducted to the outlets of retail market and different shops of wholesale multivendor market. I visited to the different outlets of sambaji Nagar, Kasturi Market, Gharkul, Sane chowk for retail
- 27. 27 | P a g e market survey to collect the data . I visited to the different shops of multivendor market at Akurdi region for the survey. SAMBHAJI NAGAR, AKURDI Sample size: - I have visited more than 30 outlets including retail and distributors or ADA market. Time of completion of project: - Total days of completion of project is 60 days. Presentation of data: - At first the primary data are accumulated from the shopkeepers. Secondary data are used for industry and company overview. The data are presented statistically with the help of Microsoft Excel. Comprehensive analysis of Amul fresh product in Retail market:
- 28. 28 | P a g e Comprehensive analysis of Amul milk in the Retail market and multivendor market Date: 20th June to 25th June Name Of AMD: - Salunke Enterprises Location- sambhaji Nagar, Kasturi Market, Gharkul, Sane chowk Sr. No. Retailer's Shop Name Retailer's Name Contact No. Type of Shop location Sale of Amul milk(ltr) 1 Jogmaya super market 9665033508 Grocery Sambaji Nagar 21 2 Shree raj general stores Grocery Sambaji Nagar 02 3 Ashapura traders Grocery Sambaji Nagar 10 4 Tejas Dairy tejas 9595384142 Sambaji Nagar 10 5 Hanuman trading Co. kiran choudary 8796826012 Grocery Sambaji Nagar 29 6 Real sweet corner shankarlal 8999249025 Sweets Sambaji Nagar 46 7 Dwarka sweets Rohit patel 7378430930 Sweets Sambaji Nagar 5 8 Ronak super market Ashok 9404385730 Grocery Sambaji Nagar 9 9 mukesh trading Dinesh 90492993298 Grocery Sambaji Nagar 30 10 mathura sweets Choudhar y 8149239054 Sweets Sambaji Nagar 9 11 Pawan market P.B. 9637123219 Grocery Sambaji Nagar 23 12 vinayak trading fulchand Choudhar y 9970512142 Grocery Sambaji Nagar 34 13 Bandan sweets Choudhar y 7709050513 Sweets Sambaji Nagar 20 14 Mahadev siravi 8766524890 Grocery Sambaji 10
- 29. 29 | P a g e trading Nagar 15 Hanuman traders suresh Choudhar y 9730410621 Grocery Sambaji Nagar 13 16 Datta krupa dairy kishor 9011058100 Milk shop Sambaji Nagar 12 17 Annapurna super shopee sonal 7385524410 Grocery Sambaji Nagar - 18 Krushna sweets Choudhar y 8999276974 Sweets Kasturi market 30 19 Utsav sweets Choudhar y 9637111071 Sweets Kasturi market 36 20 Abhay enterprises Grocery Sambaji Nagar - 21 Golden dairy Milk shop Sambaji Nagar 5 22 Vishwas Mart 9823932236 Grocery Sambaji Nagar 4 23 Sai agencies 8329615924 Sambaji Nagar 14 24 Vishwapreet super shoopy ravindra 9673929646 Grocery Sambaji Nagar 15 25 Apple sweets chandan choudary 9028992945 Sweets Sambaji Nagar 75 26 Imam jalal Imam jalal 9763201488 Grocery Gharkul , sambaji nagar 2 27 Omkar unde Omkar unde 7709536258 Grocery Gharkul , sambaji nagar 4 28 Dyansehwar khedkar Dnyanesh war khedkar 8975814643 Grocery Gharkul , sambaji nagar 4 29 Sangita jadhav Sangita jadhav 9970962420 Grocery Gharkul , sambaji nagar 2 30 rajashree kadam Rajshree kadam 9773977443 Grocery Gharkul , sambaji nagar 3 31 Anand satwadar Anand satwadar 9665033508 Grocery Gharkul , sambaji 5
- 30. 30 | P a g e nagar 32 Sai mini stores 9511636786 Icecream parlour Gharkul , sambaji nagar 24 33 sadguru puja bhandar sadguru puja Bhandar Puja Shops Gharkul , sambaji nagar 6 Competitive analysis with other competitors in the Retail market. Date: 20th June to 25th June Name Of AMD: - Salunke Enterprises Location- sambhaji Nagar, Kasturi Market, Gharkul, Sane chowk Sr. No. Retailer's Shop Name Retailer's Name Contact No. Type of Shop location Sale of Amul milk(ltr) Sale of other milk(ltr) 1 Jogmaya super market 9665033508 Grocery Sambaji Nagar 21 42 2 Shree raj general stores Grocery Sambaji Nagar 02 30 3 Ashapura traders Grocery Sambaji Nagar 10 20 4 Tejas Dairy tejas 9595384142 Sambaji 10 55 74% 24% 2% 0% Sales of Amul milk (ltr) Amul Taaza Amul Gold Amul A2 Amul cow
- 31. 31 | P a g e Nagar 5 Hanuman trading Co. kiran choudary 8796826012 Grocery Sambaji Nagar 29 24 6 Real sweet corner shankarlal 8999249025 Sweets Sambaji Nagar 46 48 7 Dwarka sweets Rohit patel 7378430930 Sweets Sambaji Nagar 5 72 8 Ronak super market Ashok 9404385730 Grocery Sambaji Nagar 9 40 9 mukesh trading Dinesh 90492993298 Grocery Sambaji Nagar 30 28 10 mathura sweets Choudhar y 8149239054 Sweets Sambaji Nagar 9 65 11 Pawan market P.B. 9637123219 Grocery Sambaji Nagar 23 25 12 vinayak trading fulchand Choudhar y 9970512142 Grocery Sambaji Nagar 34 30 13 Bandan sweets Choudhar y 7709050513 Sweets Sambaji Nagar 20 42 14 Mahadev trading siravi 8766524890 Grocery Sambaji Nagar 10 24 15 Hanuman traders suresh Choudhar y 9730410621 Grocery Sambaji Nagar 13 36 16 Datta krupa dairy kishor 9011058100 Milk shop Sambaji Nagar 12 32 17 Annapurna super shopee sonal 7385524410 Grocery Sambaji Nagar - 87 18 Krushna sweets Choudhar y 8999276974 Sweets Kasturi market 30 28.5 19 Utsav sweets Choudhar y 9637111071 Sweets Kasturi market 36 54 20 Abhay enterprises Grocery Sambaji Nagar - 58 21 Golden dairy Milk shop Sambaji Nagar 5 76 22 Vishwas Mart 9823932236 Grocery Sambaji Nagar 4 52 23 Sai agencies 8329615924 Sambaji 14 -
- 32. 32 | P a g e Nagar 24 Vishwapreet super shoopy ravindra 9673929646 Grocery Sambaji Nagar 15 34 25 Apple sweets chandan choudary 9028992945 Sweets Sambaji Nagar 75 26 26 Imam jalal Imam jalal 9763201488 Grocery Gharkul , sambaji nagar 2 30 27 Omkar unde Omkar unde 7709536258 Grocery Gharkul , sambaji nagar 4 04 28 Dyansehwar khedkar Dnyanesh war khedkar 8975814643 Grocery Gharkul , sambaji nagar 4 16 29 Sangita jadhav Sangita jadhav 9970962420 Grocery Gharkul , sambaji nagar 2 04 30 rajashree kadam Rajshree kadam 9773977443 Grocery Gharkul , sambaji nagar 3 02 31 Anand satwadar Anand satwadar 9665033508 Grocery Gharkul , sambaji nagar 5 8 32 Sai mini stores 9511636786 Icecream parlour Gharkul , sambaji nagar 24 38 33 sadguru puja bhandar sadguru puja Bhandar Puja Shops Gharkul , sambaji nagar 06 30
- 33. 33 | P a g e DATA ANALYSIS DATA ANALYSIS “SALES AND DISTRIBUTION OF AMUL’S PRODUCTS AT RETAIL LEVEL” It all began when milk became a symbol of protest Founded in 1946 to stop the exploitation by middlemen Inspired by the freedom movement in 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvan Das Patel, they formed their own cooperative in 1946. The analysis and interpretation of the data involves the analyzing of collected data and interpreting it with pictorial presentation such as bar charts and pie charts. 1. Preference of Retailers to milk brand. Brands Respondend Amul 10 Mother dairy 03 Gokul 15 chitale 02 AMUL MILK 32% OTHER MILK 68% RATIO (ltr) AMUL MILK OTHER MILK
- 34. 34 | P a g e katraj 03 2. Do you stock Amul milk? Response No. of Respondent % Of respondend YES 30 90% NO 3 10% 3. If yes, do you get sufficient stock of Amul milk? Response No. of Responded % of Respondend Yes 19 57.5 % No 14 42.4 % 90% 10% % of respondent YES NO 10 3 15 2 3 0 2 4 6 8 10 12 14 16 Amul Mother dairy Gokul chitale katraj Respondents
- 35. 35 | P a g e 4. If no, why don’t you stock Amul milk? Response No. of Responded % Of Respondend Absence of packing date 3 9.09 % Low margin. 19 57.5 % No replacement for leakage 9 27.2 % Low distribution 2 6.06 % 5 . Preference of Retailers to milk brand. 58% 42% % of Respondent Yes No 9% 58% 27% 6% % Of Responded Absence of packing date Low margin. No replacement for leakage Low distribution
- 36. 36 | P a g e A. Amul Taaza B. Amul Slim n Trim C. Amul Gold D. Amul A2 Response No. of Responded % Of Responded Amul Taaza 20 60.06% Amul Slim n Trim 2 6.06% Amul Gold 8 24.2% Amul A2 3 9.09% 6 . What size of the milk packets do you prefer to store? 250 ml 500 ml 1 ltr 6 ltr 7. Do you think that the price of the product is higher than the competitor’s product? 250 ml 500 ml 1 ltr 6 ltr 250 ml 500 ml 1 ltr 6 ltr 61% 6% 24% 9% % of respondent Amul Taaza Amul Slim n Trim Amul Gold Amul A2
- 37. 37 | P a g e Response No. of Responded % Of Respondend Strongly Agree 12 36.36% Strongly Disagree 8 24.24% Agree 10 30.30% Neither 3 9.09% 8. How much profit do you get on other milk products? Response No. of Responded % Of Respondend More than Amul 25 75% Less than Amul Milk 0 0% Same as Amul Milk 5 15% No Profit 3 9.09% 36.36%, 37% 24.24%, 24% 30.30%, 30% 9.09%, 9% % Of Respondent Strongly Agree Strongly Disagree Agree Neither
- 38. 38 | P a g e 64% 36% % Of Respondent Yes No 9. Are you satisfied with Amul milk distributor? Response No. of Responded % Of Respondend Yes 21 63.6 % No 12 36.3 % More than Amul Less than Amul Milk Same as Amul Milk No Profit % OF RESPONDENT
- 39. 39 | P a g e SWOT ANALYSIS OF AMUL Strengths:- The Company is having Indian origin thus creating feeling of oneness in the mind of the customers. If manufactures only milk and milk products, which is purely vegetarian thus providing quality confidence in the minds of the customers. It is aiming at rural segment, which covers a large area of loyal customers, which other companies had failed to do. People are quite confident for the quality products provided by Amul. Amul has its base in India with its butter and so can easily promote chocolates without fearing of loses. Weaknesses:- There are various competitive players in the chocolate market, which acts as major competitors restricting their growth. Leakage problem in pouch milk. No schemes are provided by the company to the distributors and the retailers also. There is a huge problem in distribution channel in India. Less profit margin compared to the others milk brands. Opportunities:- There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting. The milk market is at growth stage with very less competition, so by introducing new brand and incentive advertising there can be a very good scope in future. Threats:- The major threats is from other companies who hold the majority share of consumers in Indian market i.e. Red Cow, Metro, and Mother Dairy. There exists no brand loyalty in the milk market and consumers frequently sfit their brands. The biggest threats for Amul milk is Reliance milk entering in milk market.
- 40. 40 | P a g e ANALYSIS AND FINDING Retailers:- Retailers are not interested because they don’t have storage facility but if company provides them such facility, they will be sale Amul milk. Because of low profit margin almost all retai8lers are not interested in Amul milk for selling. On questions, why retailers are not interested in selling Amul pouch rather than increasing the product, it is found they were not happy with the margin, replacement, and it gets spoil. Retailers were selling different brands, because they were able to receive more margin from non-popularized brand that they could not form well-known brands. All retailers get Amul pouch milk from company selected distributors. When question came to retailers rating towards Amul pouch milk, most of the responded complaining about profit margin and product life. Retailers also demand for the replacement for damage due to spoilage, leakage that they have to bear when the Amul pouch milk gets spoil or leakage. Bulk Users (Multivendor, Sweet Shops): - In sweet Shop the awareness level of Amul pouch milk is 95% but it is hard to find that max to max only 3% are consuming Amul pouch milk. The preferences of purchasing Amul pouch milk by bulk by the multivendor users are mainly quality, demand, and timely availability. Higher price that is not meeting the competitors rate as bulk user are very price sensitive. BCG Matrix of Amul: -
- 41. 41 | P a g e Question Mark: - High Growth, Low market share. Most business start of as a question mark. Question mark have potential to become after and eventually cash cow but can also become a dog. Star: - High growth, High market share. Star is leaders in business. They also require heavy investment to maintain its market share. Attempts should be made to hold the market share otherwise the star will become a Cash Cow. Cash Cow: - Low growth, High market share. It generates more cash than required. It extracts the profit by investing as little cash as possible. They are located an industry that is mature, not growing, or declining. Dog: - Low growth, Low market share. Dogs are the cash traps. Dogs do not potential to bring in much cash. Number of dogs in the company should minimized. Business is situated at a declining stage. Dog Market Growth Rate Relative Market Share RECOMMENDATIONS AND SUGGESTIONS Give the credit purchase facility to their regular retailers. 250 ml milk pouch should make available to retailers for selling, because lower income family has intention to buy small pouch milk. There is need to create a common platform for all the retailers so thattheir complains should be solved. As quick as possible try to settle the various claims and problems of the retailers. Provide good schemes and offer to the retailer. Some scrutiny should befollow to check the scheme get being communicated properly by distributors or sales Supply should be regular to all the outlets including those that lie in the pocket roads and not just in the outlets which lie on the easily accessible routes. It has been found that there is no awareness among the retailers regarding the newly launched products of Amul such as A2 buffalo milk and itsvariants. So, it is advisable to the company to conduct various awareness programs like distributing of pamphlets outside the retail shops and more advertisement through the media. Company should take care of retailers by solving their problems and should call back or timely visit should be given to retail outlets by appointing separate company representative
- 42. 42 | P a g e Limitations: - This report had to work under several constraints and limitations. Some of the key limitations are: The survey is limited only for one distributor. Time period of the project was 8 weeks, which may not be enough to understand the whole Market. Convenient sampling was used as the mode of conducting the research. The psychology and temperament of a respondent play a significant role. Some respondents are more sensitive as against others who are more tolerant. A change in the composition of the respondents can affect the answers adversely or favorably. Respondents may not have been true in answering various questions and may be biased to certain other questions. Out of the whole research and analysis, only three major brands could be highlighted, leaving aside the other non-popular brands. The questionnaire mostly contained multiple choice questions; therefore, many respondents did not give a proper thought before up the questions, and some even ticked things, which were not applicable. Therefore, all this increased the bias. The sample size of Retailers / Wholesalers was very small and therefore response from them does not reflect the exact view because they may to biased.
- 43. 43 | P a g e CONCLUSION Amul means different things to different people. To a milk producer – A life enriching experience to a consumer – Assurance of having wholesome milk to a mother – A reliable source of nourishment for her child to the country – Rural development and self-reliance As we know that Amul is very big organization and market leader in dairy products. It has maximum market share in Milk, Butter, and Cheese & Ice-Cream which are its main/core products. But in case of local market like Pune the Amul milk is not a popular product as compared to other Amul Products. With the help of research, company can find out its week points in Milk product and can increase its market share through rectify mistakes. People have believed in Amul’s product, and they will accept it also if effective actions were taken. The survey resulted into following conclusions: - Amul must come up with new promotional activities such that people become aware about Amul Milk like Amul Tazza & Gold. Quality is the dominating aspect which influences consumer to purchase Amul product, but prompt availability of other Milk brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales. In comparison to Amul Milk, the other players such as Gokul, Mother Dairy, and Metro and some others milk provide a better availability and give competition to the hilt. People are mostly satisfied with the overall quality of Amul Milk, but for the existence in the local market Amul must use aggressive selling techniques.
- 44. 44 | P a g e BIBLIOGRAPHY http://economictimes.indiatimes.com/topic/amul https://www.nddb.coop/ www.amul.com www.wikipedia.com http://www.firstpost.com/tag/amul https://www.financialexpress.com/archive/corporate-social-responsibility-the-amul- way/112172/#:~:text=Every%20function%20involves%20human%20intervention,sal%2D esmen%20in%20retail%20network. https://casemarathon.com/darden/amul-dairy/porters-analysis.php
- 45. 45 | P a g e APPENDIX (QUESTIONNAIRE) DATE RETAILER FEEDBACK FORM ADM NAME: LOCATION: SR. NO RETAILER NAME CONTACT NO. ADDRESS QUALITY WHY THIS BRAND REASON FOR ANOTHER (FEEDBACK)
- 46. 46 | P a g e QUESTIONNAIRE FOR DISTRIBUTOR MARKET AND KEY ACCOUNTS FOR COMPETITIVE STUDY BETWEEN AMUL MILK AND OTHERS BRAND I. WHICH COMPANY IS BETTER FOR STOCK SATISFACTION? AMUL ( ) OTHERS ( ) II. WHICH COMPANY IS BETTER REGULAR SERVICE PROVIDOR? AMUL ( ) OTHERS ( ) III. WHICH COMPANY HAS HIGH DAMAGE RELATED ISSUE? AMUL ( ) OTHERS ( ) IV. WHICH COMPANY IS BETTER SCHEME PROVIDOR? AMUL ( ) OTHERS ( ) V. WHICH COMPANY’S MILK HAVE CONSUMER PREFERENCE? AMUL ( ) OTHERS ( )