DECLARATION

I, UTKARSH NAYAK , a student of MBA Programme, Uttranchal Institute of Management, Dehradun, state that the project entitled "Retail Penetration of Amul Ice Cream in Lucknow" is submitted in pursuance with the requirement of MBA Degree in my original work.

Date: Place: (UTKARSH NAYAK)

INDEX
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SECTION A: Executive Summary Introduction to topic SECTION B: Company Profile Organizational Background The Promoters Company Vision and Mission Organizational Structure Company and its Product Line Marketing strategies Competitors Achievements Market share position National and international image Future Planning of GCMMF SECTION C: Research Methodology Objective of the project Problem definition Approach to the Problem Types of research design Sources of data collection Sampling and Sampling techniques Data analysis and findings Swot analysis Conclusions SECTION D Internship Recommendations Bibliography Annexure

6-7 9-11 13-17 18-21 22 23 24-28 29-35 36-41 42 44 45 46 47 49 50-51 52 53 54 55 56-57 59-70 71-72 74 76 78 81 83-85

PREFACE
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Theoretical knowledge, particularly in the professional field has little significance or value without its application in real life situation. So summer training for we MBA students is to familiarize with the professional setup. Industrial training is helpful for management students to familiarize them with the industrial culture and during this process students come to know about the tips and downs of the job. It also gives an opportunity to the students for the first time to apply their theoretical knowledge to practical aspect. Moreover it helps the students in honing the skills acquired in the functional areas of their choice be it marketing, finance, human resource management system etc. They are required to put their Conceptual, Analytical and Perceptual skills to test. In pursuance of this requirement, I have done my summer training in GCMMF Ltd. (Amul),Lucknow . I have estimated the Retail Penetration of Amul ice cream in Lucknow.

(UTKARSH NAYAK) MBA (2011-2013)

ACKNOWLEDGEMENT
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This project report is based on Retail penetration of Amul ice cream in Lucknow district, is a humble attempt to sketch the contribution of all those persons who have directly and indirectly given their precious time and help along with proper guidance for carving this report in the following shape. It is my pleasant duty to thank the project guide Mr. Manoj Saxena and Mr. Naveen Katiyar, sales in charge, GCMMF ltd. (Amul), Lucknow, for this guidance, suggestion and encouraging opinions for me. they helped me a lot by briefing out the project and giving tips how to survey the market and designing the questionnaire to its end. The suggestions and opinions of other staff of sales and marketing division were highly encouraging. They provided me necessary facilities and other relevant information for completion of the project. Lastly I would like to thank all my friends for sparing their precious time to provide me the information. (UTKARSH NAYAK) MBA (2011-2013)

Chapter 1

EXECUTIVE SUMMARY
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The project retail penetration of Amul Ice Cream in Lucknow is a task to find out the reach of amul ice cream in retail shops.The main objective of the project isFirstly to obtain area wise market share of the product, consumers attitude towards Amul Ice Cream, to know about the competitors and consumers satisfaction with Amul Ice Cream. Secondly, to get the information about awareness of consumers re garding Amul ice-cream & promotional activities, this can be helpful in increasing sale in the competitive market. In this project I will try to answer following questions. (1) Consu mer satisfaction with the quality and price? (2) Which segment would be attracted? (3) What is the actual demand by the market? To know the actual market demand it is important to discuss buyers behavior and market Characteristics.

Buyer's Behavior a) What do they buy? b) Where do they buy? c) How do they buy? Are customer's satisfied? If yes! up to what level?

Market Characteristics
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1) 2) 3) 4)

Market size potential Market segment Selective demand Future market trend

Chapter 2

INTRODUCTION ABOUT AMUL ICE CREAM

Amul Ice Cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs. Amul ice cream was launched on the platform of Real Milk. Real Ice Cream given that it is a milk company and the wholesomeness of its products gives it a competitive advantage. In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999. It has combated competition like Walls, Mother Dairy and achieved the No 1 position in the country. This position was achieved in 2001 and it has continued to remain at the top. Today the market share of Amul ice cream is 38% share against the 9% market share of HUL, thus making it 4 times larger than its closest competitor. Not only has it grown at a phenomenal rate but has added a vast variety of flavours to its ever growing range. Currently it offers a selection of 220 products. Amul has always brought newness in its products and the same applies for ice creams. In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice Cream, which was a first in India. This
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range of SUGAR FREE, LOW FAT Diabetic Delight & ProLife Probiotic Wellness Ice Cream is created for the health conscious. Amuls entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time due to price differential, quality of products and of course the brand name. GCMMF launched its milk brand ice cream under the brand name of Amul. It has various advantages over its competitors.

1. ADVANTAGE OF PROCUREMENT OF MILK:Since GCMMF have 20Lakhs producer member they can procure milk quite easily at reasonable price, Moreover it has tie up with reasonable co-operative for supply of milk.

2. Competitive Pricing:Amul can procure milk comparison to its competitors. at reasonable price in

3. Brand Awareness:Since Amul is very old and recognized brand and people have faith in its quality product, the company was able to capture 20% of market share in Mumbai within a year of launch.

4. Established distribution network:GCMMF has a wide spread distribution network which covers the whole Indian market of its product like Cheese, Butter, Ice Cream, Chocolate etc. This is the highest strength of the company in comparison to its competitors. Presently, Amul Ice Cream enjoys 39% of the total

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market share. The company has 7 ice cream manufacturing units, in which 3 in Gujarat, 1 each in Delhi, Patna, Bangalore and Tarapur. Company main Ice-cream manufacturing plant is in Gandhinagar, which is also the Asias largest Ice-cream manufacturing plant, equipped with all modern equipment.

SEGMENTATION:-

Amul has segmented its ice-cream on three different bases. These are on the basis of flavors, packing and consumer segment. On the basis of flavors the company has number of flavors such as Vanilla, Kesar Pista, Butter Scotch, Strawberry and also a number of Dry fruit flavors like Kaju Draksh, Kismis Kaju etc. The market is mainly dominated by three of its flavors -Vanilla, Strawberry and Kesar Pista. They combine covers 70% of the market share followed by Butter Scotch and other fruit flavors. On the basis of packing market is divided into four segments: Cups Co ties Sticks or Candies Take A ways On the basis of Consumers, market is divided into four segments: Geographic location of customer Demographic characteristics Psychographics variables Buyer readiness

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Chapter3

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COMPANY PROFILE
MILK PROCUREMENT Total milk procurement by amul Member Unions during the year 2009-10 averaged 93.02 lakh kilograms (9.30 million kgs) per day representing a growth of 6.68% over 87.19 lakh kgs (8.7 million kgs) per day achieved during the year 2008-09. The highest procurement as usual was recorded during January, 2010 at 122.5 lakh kgs per day.

SALES During the year, sales of Amul Federation registered a quantum growth of 19.3% to reach Rs. 8005.36 crores (Rs. 80 billion). Last year, turnover was Rs. 6711.31 crores (Rs. 67.11 billion). This is an extremely impressive growth when viewed from the perspective of draught effect and resultant drop in milk procurement as well as 27.7% growth that we achieved in the year 2008-09. Amul Federation has justified its undisputed leadership in milk business by achieving sales growth in pouch milk category by more than 21% and achieving average sales volume of 38.30 LLPD (lakh litres per day). The Sales growth in value terms is 32% from existing markets only. It has achieved number one status in pouch milk sales in Delhi this year. With this achievement, Amul Milk has emerged as the largest selling brand of milk in all major metro markets of Delhi, Mumbai, Kolkata and Ahmedabad. Amul Masti Dahi sales grew at an impressive rate of 46%. Ice-cream sales registered a value growth of 22%. Amul Cheese sales increased by 20%. UHT milk also grew strongly

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at 14% along with Fresh Cream registering 39% growth. Amul beverage sales grew by 23% and chocolate sales also registered an encouraging growth of 30%.

RETAILING The Federation has created 5000 Amul preferred outlets which exclusively sell wide range of Amul products. 2000 of these parlours have been added during the current year which speaks volumes about the quantum of scale and speed with which the expansion has been dealt with. It is unthinkable for any competitors to create such massive network of exclusive outlets. This has been possible due to strong brand equity, consumer pull and relentless efforts on part of the entire sales organisation which includes its wholesale dealers. These parlours have not only enhanced the Amul brand visibility but also are giving an easy access to millions of discerning consumers to its unmatched range of existing products and new products which are launched on regular basis. Moreover, these parlours have increased the efficiency in distribution by reducing the distribution costs significantly. The Retailing business alone fetched a turnover of Rs.300 crores during the current financial year which is approximately 4% of the Federations total turnover.

EXPORT GCMMF LTD. (AMUL) regular exports branded consumer pack dairy product to the U. S . , Persian Gulf and Fareast market, the federation has exported large quantities of skimmed and full cream milk powder, Nutramul, Amulya Mithaimade and Amul paneer.
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The federation has won the APEDDA award for excellence in exports. The major export markets are as follows: U S A . . . Australia K ait uw Bahrain U.A.E. Saudi Arabia M uscat Nepal S Lanka ri Bangladesh Tanzania Singapore Q atar M adagascar Amul has been able to maintain and strengthen its presence in consumer pack export markets. This year too it has crossed a mark of Rs. 100 crores in foreign exchange earnings. It has been able to achieve this figure for the 5th time by now. During the year Amul has been able to expand its reach to New Zealand with exports of Paneer, Shrikhand, Butter, etc. It has also started export of its Cheese and Butter to Sri Lankan market. Its traditional market of Middle East and Far East are doing very well especially in newer products like Paneer as well as in case of established products like ghee, butter, etc.
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REVIEW OF OPERATION
ASSOCIATE SOCITIES:GCMMF Ltd. (AMUL) is a co-operative federation of various dairies of Gujarat. These dairies collect the milk from v i l l a g e societies. The total number of produce members is 21, 58,576, which are as under: TABLE NO. 1 SL. NO. 01 02 03 04 05 06 07 08 09 10 11 12 NAME of Districts Ahmedabad Vadodara Banaskantha Bharuch Gandhinagar Kaira Mehsana Rajkot Panchmahal Sabarkanth Surat Valsad NO. of village societies 657 1058 1355 465 800 1028 1092 354 1421 1601 968 604 No. of produce members 67,775 1,73,108 1,47,808 32,040 1,20,150 5,76,081 3,97,673 37,320 1,77,773 2,38,590 2,07,258 83,000

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MANUFACTURING UNITS

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ORGANISATIONS BACKGROUND
Amul means priceless in Sanskrit. The brand name Amul from the Sanskrit Amoolya, was suggested by a quality control expert in Anand. Amul products have been in use in millions of homes since 1946. Formed in 1946, Amul has initiated the Dairy Cooperative movement in India and formed an Apex Cooperative Organization, Gujarat Co-operative Milk Marketing Federation Ltd.(GCMMF), jointly owned by some milk 3 million milk producers in Gujarat. Its products including liquid milk, butter, ghee, cheese, chocolate, icecream, pizza are widely used throughout India and abroad and have made Amul the largest food brand in India. The Amul butter girl which simply said by her baseline "Utterly Butterly Delicious Amul". The butter of Amul which was launched in 1946 by GCMMF Ltd. became very famous in 1967 amongst the majority of people of India with the help of its first advertisement. For 30 odd years the utterly butterly girl has managed to keep her following intact, so much so that the ads are ready to enter the "Guinnies Book" of world records being the largest campaign ever. Information Technology has played a significant role in developing the Amul brand. The logistics behind coordination in the collection of milk. In 1996 Amul was one of the first major organizations in India to have a website and this has been used to develop a intranet of Amul distributors as well as a cyber-store for consumers, one of the examples of ecommerce activities in India.

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GUJRAT CO-OPERATIVE M ILK MARKETING FEDERATION

Gujarat Co-Operative milk marketing federation (GCMMF) is India's largest food product marketing organization. It is a state level apex body of milk Cooperative of Gujarat which aims is to provide remunerative returns to the farmers and also serves the interest of the customers by providing quality products which are good value for money.
Members No. Producer members No. of village societies Total milk handling capacity Milk collection Daily average Milk drying capacity : 16 district co-operative milk producer union : 2.35 Million : 11400 : 10.5 million liters per day (2009-10) : 4.67 billion liters : 6.47 million liters : 450 metric ton per day

Cattle manufacturing capacity : 1450 Mts. per day

GCMMF Ltd (AMUL) is committed to giving its farmer owners a share price for their products and to protecting them from nature's vagaries.

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VALUE OF THE GCMMF LTD. (AMUL)

Customer orientation Co-operation Quality belongings commitment to producers Excellence innovation pride in organization Integrity Leadership Growth orientation-new products Employees satisfaction Customer satisfaction

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GCM F LTD. (AM M UL) M BER UNIONS EM 1. Amul Dairy, Anand 2. Sabar Dairy, Himmatnagar 3. Baroda Dairy, Baroda 4. Panchmahal Dairy, Godhra 5. Rajkot Dairy, Rajkot 6. Dugdhdhara Dairy, Bharauch 7. Mother Dairy, Gandhi Nagar 8. Uttam Dairy, Ahemadabad. 9. Dughsagar, Mehsana 10. Sumul Dairy, Surat 11. Vasundhara Dairy, Valsad 12. Gandhi Nagar Dairy, Gandhi Nagar 13. Vidya Dairy, Anand 14. Poly Film Plant, Gandhi Nagar 15. Cheese Plant, Khatraj 16. Banas Dairy, Palanpur

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PROMOTERS Today people are very frank with the brand name of Amul of GCMMF Ltd. Now Amul has completely setup its goodwill in Indian market, the national dairy development board, India, setup the GCMMF ltd. under the corporative act. The federation is also supported by national cooperative dairy federation of India. The national dairy development, with its operation flood program, has played a shining role in the growth and development. The institute of rural management Anand (Gujarat) as always has contributed to the perspective building and professionalisation of the management of the co-operative sectors. The advertising agency like "ASP", banks like (Bank of Baroda, SBI, Kaira dist. central Co-operative Bank Ltd.), management, consultants, suppliers and transporters have also given a great help in managing the growth of GCMMF Amul.

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VISION
We have traversed a path a few have dared to; we are continuing on a path that still fewer have the courage to follow. We must pursue a path that even fewer can dream to pursue yet we must hold in trust the aims and aspiration of millions of countrymen.

MISSION We at GCMMF Ltd. (AMUL) endeavor to satisfy the taste and nutritional requirement of the customer of the world, through excellence in marketing by our committed team. Through cooperative networking we are committed to offering quality products that provide best value for money.

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ORGANIZATIONAL STRUCTURE
BOARD OF DIRECTORS
Gujarat Co-operative Milk Marketing Federation Limited, Anand, India Registered Under Gujarat CoOperative Societies Act-1961 Dr. Verges Kurien CHAIRMAN

SHRI RAMESH BHAI P. PARMAR CHAIRMAN KAIRA DISTRICT CO- OPERATION MILK PRODUCERS UNION LTD ANAND SHRI JETHBAI P. PATEL CHAIRMAN SABARKANTHA DISTRICT COOPERATIVE MILK PROD. UNION LTD.HIMATNAGAR SHRI NARENDRA BHAI M.PATEL CHAIRMAN BARODA DISTRICT CO- OPERATIVE MILKPRODUCERS UNION LTD. BARODA

SHRI MOTIBAI R. CHAUDHRY CHAIRMAN MEHSANA DISTRILCT COOPERATIVE MILK PRODUCERS UNION LTD.MEHSANA SHRI PRATIBHAI G. BHATOL CHAIRMAN BANASKANTHA DISTRICT COOPERTIVE MILK PRODUCERS UNION LTD. PALANPUR

SHRI MANUBHAI A.PATEL CHAIRMAN SURAT DISTRICT CO- OPERATIVE MILK PRODUCERS UNION LTD. SURART SHRI BHUPENDRA SINGH SHRI MOHAN BHAI R. P.SOLANKI BHARWAD CHAIRMAN CHAIRMAN PANCHMAHAL DISTRICT COAHEMADABAD DISTRICT COOPERATIVE MILK PRODUCERS UNION OPERATIVE MILK PROD. UNION LTD. GODHRA LTD. AHEMADABAD

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SRI GOVIND BHAI S. RAMPRIYA CHAIRMAN RAJKOT DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD. RAJKOT SHRI PRAHALAD BHAI M.PATEL CHAIRMAN BHARUCH DISTRICT CO- OPERATIVE MILK PRODUCERS UNION LTD.BHARUCH SHRI M.N. BUCH REPRESENTATIVE NATIONAL DAIRY DEVELOMENT BOARD, ANAND SHRI B. H. VYAS MANAGING DIRECTOR BANKERS BANK OF BARODA, STATE BANK OF INDIA, KAIRA DISTRICT CENTRAL COOERATIVE BANK LTD

SHRI MOGHA BHAI M. DESAI CHAIRMAN VALSAD DISTRICT CO- OPERATIVE MILK PRODUCERS UNION LTD. ALIPUR SHRI HITENDRA BHAI G.PATEL CHAIRMAN GANDHI NAGAR DISTRICT COOPERATIVE MILK PRODUCERS UNION LTD.BHARUCH SHRI J. P. GUPTA REGISTRAR CO-OPERATIVE SOCITIES GUJRAT STATE, GANDHINAGAR

AUDITORS C. C. CHOESHI & CO. CHARTERD ACCOUNTANT

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ORGANIZATIONAL HIERARCHY

MANAGING DIRECTOR (Headquarters)

GENERAL MANAGER (H.R.)

GENERAL MANAGER (Marketing)

GENERAL MANAGER (Quality Assurance)

Asst GM (Marketing Dairy Products)

MANAGER COMMERCIAL

MANAGER EXPORTS

MANAGER (LIQUID MILK)

ZONAL MANAGER

ZONAL MANAGER

ZONAL MANAGER

ZONAL MANAGER

BRANCH MANAGER

BRANCH MANAGER

BRANCH MANAGER

BRANCH MANAGER

SALES OFFICER

SALES OFFICER

SALES OFFICER

SALES OFFICER

FIELD SALES FORCE

FIELD SALES FORCE

FIELD SALES FORCE

FIELD SALES FORCE

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DISTRIBUTION NETWORK
Head Office Amul Dairy Road PO Box 10 Anand: 3888001 Ph. No: (02692) 258506, 258507

DOMESTIC MARKETING
For domestic marketing the federation has d i v i d e d the whole country i n t o five zones. These are: Ahmedabad Zone Bombay Zone Kolkata Zone Delhi Zone Chennai Zone Federation's Head office is in Ahmedabad.

SALES OFFICES :
Asansole, Bannerol, Cochin, Cuttack, Mohali, Guwahati,

Jorhat,

Agartala,

Kozikode Kundli Pune Parwanoo Hyderabad Ranchi

Lucknow , B hapandra, Patna, Raipur, Dimasur, Gorakhpur, Imphal Shillong,

Nagpur, Coimbatore, Naini Daman PortBlair, Ghaziabad, Jaipur,

Hubli, Indore, Siliguri, Jammu, Varanasi,

Vaghasi, Silchar,

Vishakhapatanam Vasco-de-Gama

Sambalpur,

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GCMMF has a wide r e t a i l d i s t r i b u t i o n network Which markets i t s m i l k products such as cheese,butter and ice cream .The distribution network consist of numbers of depot an about 20000 distributors.

MEMBER UNION DEPOT WHOLESALE DEALER RETAILER CUSTOMER

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PRODUCT LINE
GCMMF provides vast and ever-growing range of tasteful products to i t s customers under the flagship of AMUL. The various product offered by AMUL are as follows.

BREAD SPREADS:

Amul Butter Amul Lite Low Fat Bread spread

CHEESE RANGE: Amul Pasteurized Processed Cheddar Cheese Amul Processed cheese spread Amul Emmental cheese Amul Gouda Cheese Amul Malai Paneer (Cottage Cheese) Utterly Delicious Pizza

MITHAEE RANG (Ethnic Sweets): Amul Shrikhand (Mango, Saffron, Almond Cardamon)

Pistachio,

Amul Amrakhand Amul Mithaee Gulabjamun Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix

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UHT MILK RANGE: Amul Taaza 3% fat milk Amul Gold 4.5% fat milk Amul Slim-n-Trim 0% fat milk Amul Chocolate Milk Amul Fresh cream Amul Snowcap Softy Mix

PURE GHEE:

Amul Pure Ghee Sagar Pure Ghe e -

INFANT MILK RANGE:

Amul Infant Milk formula 1 (0-6 month) Amul Infant Milk Formula 2 (6 months above) Amul spray Infant Milk Food M i l k Powder

MILK POWDERS:

Amul F u l l Cream

Amul Dairy Whitener Sagar Skimmed Milk powder

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Sagar Tea and Coffee Whitener

SWEETENED CONDENSED MILK: Amul Mithaimata Sweetened Condensed Milk

FRESH MILK

:-

Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti standardised Milk 3% fat Amul smart Double Toned Milk 1.5% fat

CURD PRODUCT:
Amul Masti Dahi Amul Butter Milk

CHOCOLATE & CONFECTIONARY:

Amul Milk chocolate Amul Fruit & Nut chocolate Amul clairs Amul Rejoice Chocolate Nuts about U

BROWN BEVERAGE: Nutramul Malted Milk Food

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AMUL ICE CREAM

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FEATURES Of The Product

Composition: Milk Fat 13.5% to 14.5% Total Solids 40% to 41% Sugar 15% Approx. Acidity 0.17% to 0.19% Protein 3.9% to 4.1% Food Energy Value: Calories per 100 ml -196.7 kcal Flavours: Vanila, Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-Dew-Melon, Tutti Frutti, Litchi, Kesar Pista, Kaju Draksh, Butterscotch, Chocochips, Rajbhog and Cashew Break. Packaging: 50 ml cup, 100 ml cup, 500 ml pack,1 litre pack, 4 litre pack, Chocobar, Ice candies, Cones and Kulfies. Special Features: Various varities of Ice Cream can be made from the basic mix by addition of required amount of permissible colours and flavours. Dry fruits and nuts would be used for making premium varities of Ice Cream. Product Specification: Product meets BIS specification. Amul's Pro-biotic Ice-cream targets at health conscious individuals. Amul was the first in the country to introduce pro-biotic ice-cream and pro-biotic sugar free ice-cream. Hence it also has first mover advantage.
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MARKETING STRATEGIES
Amul has inherited some of the fierce marketing strategies, which helps it to have the deep reach to its consumers. Major marketing strategies used by Amul areRETAILINGFederation has opened Amul utterly delicious retail outlets across the country to enhance visibility and brand equity while making Amul products available under one roof in a pleasant environment to the consumers. Amul has opened parlours in Ahmedabad, Benguluru, Hyderabad, Delhi, Mumbai and other 2 tier and 3 tier cities. Amuls commitment to get close to the consumer with good quality, nutritious, ready to eat food value for money. INFORMATION TECHNOLOGY INTEGRATIONTo retain the competitive edge Amul integrated information technology in its marketing. It has developed customized links for linking members unions and business partners. Federation has implemented Virtual Private Network (VPN) connectivity to facilitate on-line information exchange with business partners and monitoring production and sales in order to improve the quality of services and optimization of resources across supply points. Amul is promoting the Coop TLD--Top Level Domain project. To this end, it has incorporated the Coop logoin their website www.amul.coop, which has enhanced the Amul brand across the world, giving it another vital business advantage. Tie-upsAmul has done tie-ups with some of the biggest public and private sectors of India. Amul has done a tie-up with IRCTC (Indian Railways Catering and Tourism Corporation) for putting its Amul Parlours in Railway Stations of big cities.

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Amul is capable of delivering ice cream from Kashmir to Kanyakumari and from Gujarat to North East. No other ice cream brand has been able to cater the nations ice cream demand in such a wide geographical area. It makes Amul Ice Cream, Indias only National Brand! Amul invites enthusiastic, energetic, hard working and goal oriented entrepreneurs for profitable, fast growing and never ending business opportunities. Amul is looking for business partners for retailing and vending of ice cream & frozen products of value for money products. Amul invites partner with Indias No. 1 ice cream brand by following means.

Retail Outlets: India is a country with more than 6.7 million FMCG outlets (Source: AC Neilsen). Thus, to cater the ice cream demand of the nation, Amul is focused on retail outlets through following means. o Hamara Apna Deep Freezer (HADF):

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 Amul Preferred Outlet (APO):

Scooping Parlour:

Families and youngsters eating out ice creams can now have a rich and unforgettable experience at the nearest Amuls Scooping Parlour.

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 Ice Cream Business through Vending:

Most of us have probably eaten our first ice cream at a push cart and thus push cart is the first image that appears when we think of ice cream! Vending of ice cream can be done at following places with much less investment than retail outlet

Tourist places Historical monuments Hill stations Railway stations Bus stands Schools Gardens Play grounds Inside streets of residential colonies.

In addition to the above, small towns are the largest ice cream markets, as they cater to rural population where 70% of India resides.

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ADVERTISEMENT AND PROMOTION

One of the most effective Advertising strategy in the

world & innovative too. Advertising is based on a moppet called Butter Girl, which proved to be turnaround for the company.
Advertisements are mainly based on the current event.

Current event is taken, humor is added and a catchy slogan & tagline is given. One of the longest running ads based on a theme, all set to record name in Guinness Book of World Record for longest running ad campaign ever.

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THE COMPETITORS
We are living in such a stage where there is a large competition. Competition plays a vital role for the growth and development of any organisation. Generally the main competitor of Amul ice cream in Lucknow Vaadilal Mother dairy Kwality walls Creambell Dairyfun

The big competitor of Amul Ice cream in Lucknow is Vaadilal. It has made a very good marketing Channel here.Vaadilal holds the huge market share in Lucknow. It adopted a very effective marketing strategy for catching the Customers. Vaadilal is not only the competitor of Amul Ice Cream but in some places local made ice cream is also a competitor to it. Although Amul products are recognized to be best among milk market but it is no more enjoying the local market due to less availability of product in the market. So, it is necessary that for the improvement of market share of Amul Ice cream they should keep in mind the picture of local unit and they should make the better marketing strategies accordingly.

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GOVERNMENT POLICIES
Government has followed free import of dairy product, saving the door open to subsidies imports from the advance dairy nation, he dynamic of the Indians dairy industry are now increasingly linked to the global dairy industry. With support of the government of India and government of Gujarat, today GCMMF Ltd. (AMUL) continued towards its progress. Gujarat Co-operative Milk Marketing Federation Ltd. Anand. India registered under Gujarat co-operative societies Act 1961.

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ACHIEVEMENTS

GCMMF has bagged APEDA AWARD for 11th year in a

row.

Amul Pro-Biotic Ice-cream gets No.1 Award at world dairy summit. Ramakrishna Bajaj National Quality Award 2003. Received International Cio100 Award for Resourcefulness. Rajiv Gandhi National Quality Award 1999. World's Largest Pouched Milk Brand. World's Biggest Vegetarian Cheese Brand. Largest Food Brand And Business In India. ISO 9000-HACCP certified plants. Ranked No.1 Ice Cream in quality by INSIGHT.

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MARKET SHARE Amul Ice Cream: Present Status:

AMUL Ice cream is among the Asiaa top 10 Ice cream brands. In a short span of 6 years, Amul Ice Cream has become No.1 Ice Cream brand in the country. Amul ice cream is now the only national brand and other Ice Cream brands are regional. Our position in the market: Amul No.1 brand in India: Amul has achieved a market share of 38% (4.5 times larger than nearest competitor).

In the Rs 1,200-crore branded ice cream market in India with lead players HUL and Gujarat Cooperative Milk Marketing Federation (GCMMF) battling for dollops of the ice ream pie. Even as Hindustan Unilever Ltd (HUL) is sharpening its focus on innovations and brand communications, Amul is extending its production capacity and retail network to pump up volumes. To sustain its leadership in the branded ice cream sector, Amul is in fact chalking out a fresh game plan for FY10. In essence, the branded ice cream sector in India will witness a major tussle between these two players. On Amuls growth strategy, RS Sodhi, chief general manager, Amul said: We are increasing our production capacity to meet consumer demands. We just joined hands with the Co-operative Milk Union in Puducherry to manufacture ice creams there. The company is extending the number of Amul Parlours from 4,000 to 10,000 in FY10. With a market share of 39%, we currently lead the pack in this sector. Our core focus is on both impulse and take home segments, added Sodhi.

NATIONAL AND INTERNATIONAL IMAGE

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Due to its superior quality and a long back existence Amul has created a brand loyality among its customers. The freshness and quality of its products has helped Amul to make a good brand image. The variation in its products and a large product line helps customers to have a better choice. In global market Amul has carved a niche place for itself. The growing number of countries having import of Amul products signify its presence in international market. Amul believes in helping the society and to give back to the society. For this Amul also contributes in the development of nation and its people by its Corporate Social Responsibility (CSR). In its CSR Amul helps the students by giving them awards and certificate so that their knowledge could be recognized which helps the students in their future career.
By its milk procurement Amul has given a source of

employment to many people in villages. Which helps the villagers in having a better return on their selling. Amul organizes Green Revolution for the betterment of environment. In this Amul starts a drive to plant trees in various parts of country, so that the environment can be clean and healthy.

FUTURE PROSPECTS
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Amul has perspective plan for the year 2020 for its member unions envisaging a capital investment of Rs. 2600 crores (Rs. 26 billion) and a projected group sales turnover of Rs. 27000 crores (Rs. 270 billion). All its dairies have started activities to achieve the planned targets. It may be noted that Kaira Union has commissioned a state-of-the-art Paneer Plant and also a whey drying plant. Amuls Sabarkantha Union too is in process of commissioning a similar Paneer Plant. Mehsana Union has expanded capacity to 9.61 lakh litres per day at its dairy at Manesar near Delhi. Banaskantha Union too has embarked on installing new powder plant and cattle-feed plant which shall be commissioned soon. New cattle-feed plants are being put up by Mehsana and Valsad Unions as well. Gujarat Co-operative bank (AMUL) will be an outstanding dairy products, both fresh and focus, and information technology marketing federation ltd. marketing of food and long life with customer integration.

The network would consists of over hundred offices, seven thousands and five hundred (four thousand urban and three thousands five hundred rural) stockiest covering at last every district head quarters town, serving nearly ten lack outlets with a turnover of rupees ten thousand crore and serving several cooperation operatives. GCMMF Ltd. (AMUL) shall also create market for its product in neighboring countries.

47

Chapter4

48

RESEARCH METHDOLOGY
Research Methodology is a way to systematically solve the research problem. It may be understood as a science of study how research is done scientifically. The Purpose of Research Methodology is discovering answer to question and by defining the technique involved in doing the research. To design any strategy for the completion of any project the basic requirement is the data information which can be gathered through primary sources or secondary sources. For this purpose a survey was conducted to collect the primary data. Main idea behind this survey was to find out the market share of Amul Ice Cream and its growth in Lucknow district.

49

OBJECTIVE OF THE RESEARCH

The main objective of the project is to firstly obtain area wise market share of the product, consumers attitude towards Amul Ice Cream, to know about the competitors and consumers satisfaction with Amul Ice Cream. Secondly, to get the information about awareness of consumers regarding Amul ice-cream & promotional activities, this can be helpful in increasing sale in the competitive market. In this project I will try to answer following questions.
(1)

Consu mer satisfaction with the quality and price? Which segment would be attracted? What is the actual demand by the market?

(2) (3)

To know the actual market demand it is important to discuss buyers behaviour and market Characteristics. Buyer's Behavior (1) What do they buy? (2) Where do they buy? (3) How do they buy? Are customer's satisfied? If yes! up to what level?

50

Market Characteristics (4) (5) (6) Market size potential Market segment Selective demand

(7) Future market trend

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PROBLEM DEFINITION

Management decision problem

What should be done to increase the relative market share of Amul ice cream.

Market research problem

Determine the buyers behaviour at various price levels. Determine the strength and weakness of amul ice cream.

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APPROACH TO THE PROBLEM

According to my problem I used survey method for the complet i o n of the project, for this purpose I prepared a questionnaire (Appendix). The area covered for the data collection comprised of shops which keep Ice creams and also in ice cream parlours which had multiple brands. My sample size for the research work and study was a total of 130 shops. which enabled me to know the retailers awareness and their liking about Amul ice cream.

53

TYPES OF RESEARCH DESIGN

Descriptive Research Describes characteristics of relevant group. To establish the percentage of units in a specified group. To know relationship between m arketing variables. To m ake specific prediction about Am ice ul cream .

Causal research To determ ine the cause and effect relationship. To know the nature of relationship.

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SOURCES OF DATA COLLECTION

Following functions research process:-

are

performed

during

this

Data collection is the primary function of research methodology. There are two types of data collection method:-

Primary sources
SURVEY METHOD: - It is also known as primary sources of data collection; these sources are generally of three types (i) Collection of data through face to face interview. (iii) Survey through questionnaire

Secondary sources
1- O B S E R V A T I O N M E T H O D : - is secondary It

sources for collection of data. Inh i s method the t data is personally collected by the researcher. 2- Internet 3 -Internal sources like books and m aga zines.

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SAM PLIN G
Target populatio n is ASSIGNED AREA. For the completion of this project, I covered
1-

Lucknow Lucknow high way. Unnao city

2-

SAMPLE SIZE- 130 Shops.

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SAM PLIN G TECH N IQU ES

Convenience

to my convenience I selected some retail shop which w ere located near m y locality.

sam plingaccording

Judgm ental sam pling- me so

of m y sam p les were on the basis of judg m enta l like which retailer is interested in m y questionnaire.

Purposive sam plingselectio n

of m y sa m pling was purposive like I only took those retailer which were selling Am ul ice cream along with other ice cream brands.

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Chapter5

58

OBSERVATION AND DATA ANALYSIS

The most important person who plays a great role for every product is a retailer. The behavior and attitude of retailer about any product gives important information. Hence for obtaining objective of this project such as consumers attitude, goodwill that is already set up by the various brand of Ice Cream in consumers mind, we collect these data and information from the questionnaire filled by the shopkeeper and the consumer.

The analysis and interpretation is given below:

Nearly 40% retailer prefer Amul Ice-Cream for their selling, 30% retailer prefer Vaadilal Ice-Cream & 30% prefer retailer prefer other Ice-Cream. 90% consumers are satisfied with Amul Ice-Cream, while 10% are not satisfied. Nearly 45% consumers buy Amul Ice Cream, 30% consumers buy Vaadilal Ice Cream & 25% consumers buy other Ice Cream. 30% consumers perceive Amul Ice Cream as an average, 50 % as good & 20% as very good. According to retailer margin given to them are 80% good & 20% fair. Mainly 55% Amul Ice Cream is sold in the range of Rs. 10 to 25, 25% ice cream is sold in the range of Rs 25 to 50, 15% Ice Cream is sold in the range of Rs 50 to 100 and 5% Ice Cream is sold above Rs 100. Demand of Ice cream increases in peak season. Maximum percentage of Ice Cream is sold in the A and B class retailers.

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Brand sold by Retailer

Others 43%

Amul 31%

Amul Vaadilal Others

Vaadilal 26%

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Margin In Amul Ice Cream

Fair 20% Poor 5% Good 75% Good Poor Fair

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Brand Preferred by Consumer

Others 43%

Amul 31%

Amul Vaadilal Others

Vaadilal 26%

Factors Influencing in Purchase

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Price 10% Colour 30% Taste 20%

Quality 40%

Quality Taste Colour Price

Price Range of Ice cream Sold

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Above Rs Rs 50-100 100 5% 15% Rs 25-50 25% Rs 10-25 55%

Rs 10-25 Rs 25-50 Rs 50-100 Above Rs 100

Demand Of Ice Cream In Peak Season

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Normal 10% Average 30% High 60% High Average Normal

Demand OF Ice Cream On The Basis Of Retailer Class

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Rs 10000- Above 15000 15000 5% 15% Rs 500010000 25% Rs 0-5000 55%

Rs 0-5000 Rs 5000-10000 Rs 10000-15000 Above 15000

A Class: Rs 0-5000 B Class: RS 5000-10000 C Class: RS 1000-15000 B Class: Above RS 15000

Satisfaction From Distribution Network Of Amul Ice Cream

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No 30% Yes No Yes 70%

Role of Advertisement in the Purchase of Amul Ice Cream

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No 15% Yes No Yes 85%

Flavours Sold By The Retailers

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Others 25% Kesar Pista 10% Butter Scotch 25%

Vanilla 40%

Vanilla Butter Scotch Kesar Pista Others

Retailers Perception Regarding Amul Ice Cream

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Average 30%

Very Good20 20%

Good 50%

Very Good20 Good Average

SWOT ANALYSIS
An analysis of SWOT (i.e. Strengths and Weaknesses of the company and the Opportunities and Threats in the environment) plays a very important role in the formulation of business policy. These are the factors, which determine the course of action to ensure the survival and growth of the organization.
70

With the help of this analysis we are able to know the Strength and Weakness of the company and Opportunity and Threats in the environment of our targeted product Amul Ice Cream for research work and study. For any product 3As play a vital role in the market. These 3As are: Availability Affordability Acceptability

S = STRENGTHS
Availability of product in the market.

Different pack size available. Good quality Reasonable price Brand image Affordability Acceptability Distribution Network

W = W E AK N E SS No Promotional activities. No extra margin is given to A class retailer. O = OPPORTUNITIES

Coverage of virgin areas. 71

 Product sale with some unique schemes. Provide some facilities to the retailers Provide extra margin on quantity purchase basis. T = THREATS
Extra margin is given by competitors to the

A class retailers.

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Chapter6

73

CONCLUSION
Though, quality of Amul Ice Cream is the best but it is facing many challenges with the Vaadilal in the market. Main Competitor of Amul Ice Cream is Vaadilal in Lucknow city. Margin given to the retailer in Amul Ice Cream is generally good. The main customers are middleman, businessman, and employees. Some times there is scarcity of product in the retail shop and during this period Vaadilal and Kwality walls enjoy the market. Some retailers dont buy due to lack of publicity. Some retailers dont buy due to electricity problem. Special efforts should be done in promotional activities. I hope that the conclusion furnished by me in this project would act as valuable yardstick before the management of the company in chalking out the future marketing strategies for the company.

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Chapter7

75

INTERNSHIP
Internship was taken in Amul organization at the Lucknow Depot. in the Ice cream department under the mentorship of Mr. Manoj Saxena and the guidens of Mr. Naveen Katiyar. The monitoring and supervising of the internship project at the company was organized through e-mails and mobiles. Moreover a physical attendance was required at various levels and time. The purpose of my Internship at the company was to understand the relationship between theoretical knowledge and practical knowledge. Theoretical knowledge helped me to understand work culture and practical knowledge helped me in applying it. On the basis of practical work carried out by me these are some of my learningsBuyers behavior Supply chain management Networking Team work Relationship management

Challenges during the Internship To cover maximum retailer To have Relevant data To interact with more number of buyers

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Chapter8

77

RECO M M ENDATION
It is necessary to carry out awareness process for making the people aware of the product. Different type of consumer survey should be done to find out their hopes, desires and recommendation about the product.

The Scheme of bonus and award should be used for best retailer to promote and motivate the retailers.

Federation should give damages replacement and credit facilities to the retailers. The supply should be made according to the demand of the retailers.

A regular response from distributors should be collected from time to time to know about their specific requirement.

Behaviour of salesman is important in selling of product, so they should behave in an ethical way.

Market survey should be conducted regularly to know about the viability of the market trends and Retailers

needs and wants. Company should give full stress on the advertisement and promotions of its Ice Cream. For this purpose the company should arrange proper media for the promotion of the product.

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LIMITATIONS
There was not full co-operation from the respondent in

filling up the questionnaires. Ice Cream users gave the response only; non-users did not take part in the research. Even some retailers did not give the correct response; on giving a great respect they hardly gave some response. Time was a big constraint in research.

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Chapter9
80

BIBLIOGRAPHY

Marketing management Research methodology Annual report Newspapers & Magazines

Philip Kotler C.R. Kothari GCMMF Ltd. Economic times Business world Business today www.amul.co.in

Internet

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Chapter10

82

ANNEXURE QUESTIONNAIRE
Sub: To estimate the Retail Penetration of Amul Ice Cream in Lucknow. 1. Do you sell branded Ice Cream? Yes No

2. Which Ice Cream do you sell? Amul Cream bell Others Vaadilal Mother dairy Kwality walls Dinshaw

3. Which brand of Ice Cream is mostly preferred by Retailer? Amul Cream bell Others Vaadilal Mother dairy Kwality walls Dinshaw

4. On what basis Retailer prefer Amul Ice Cream? Demand Brand Margin

5. What do you think of Amul Ice Cream margin? Poor Fair Good Excellent

6.Which price range of Amul Ice Cream is mostly sold? Rs 10 25 Rs 25 50

Rs 50 100

Rs 100 & above

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GENERAL MANAGE R (Marketing )

7.What is the demand of Amul Ice Cream in peak season? Normal Average High

8. Demand of Ice Cream is maximum in which age group of customer? 1 0 - 20 yrs 20 -30 yrs 30 -40 yrs above 40 yrs 9. Are you satisfied with the distribution network of Amul Ice Cream? Yes No 10. Do you think that advertisement play any role in the purchase of Ice Cream? Yes No 11. Does the Retailer like to buy Ice Cream in cold season? Yes No 12. What provokes the Customer to purchase Ice Cream? Advertisement Price Brand Name Ingredients 13. How many flavors of Amul Ice Cream do you keep? (Please specify)
GENERAL MANAGE R (H.R.)

14. What is the Retailer perception regarding to Amul Ice Cream? Very Good Good Average

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15. Any Suggestion for improvement? ... ... Shopkeepers Name: Address: Phone no:

85