rahul raj 'project report on amul

37
Study on the Penetration of Amul kool milkbeverages product in the retail outlets of Cochin as well as the factors that Influence the Stocking Decision of these products” SUMMER PROJECT Submitted to RAJAGIRI SCHOOL OF MANAGEMENT In partial fulfillment of the requirement of the award of the MASTERS DEGREE IN BUSINESS ADMINISTRATION (2007-2009) By RAHUL RAJ Register No. 5355 RAJAGIRI SCHOOL OF MANAGEMENT RAJAIRI COLLEGE OF SOCIAL SCIENCES RAJAGIRI VALLEY PO KOCHI - 682039

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Page 1: Rahul Raj 'Project Report on Amul

“Study on the Penetration of „Amul kool milk‟ beverages product in the

retail outlets of Cochin as well as the factors that Influence the Stocking

Decision of these products”

SUMMER PROJECT

Submitted to

RAJAGIRI SCHOOL OF MANAGEMENT

In partial fulfillment of the requirement of the award of the

MASTERS DEGREE IN BUSINESS ADMINISTRATION

(2007-2009)

By

RAHUL RAJ

Register No. 5355

RAJAGIRI SCHOOL OF MANAGEMENT

RAJAIRI COLLEGE OF SOCIAL SCIENCES

RAJAGIRI VALLEY PO

KOCHI - 682039

Page 2: Rahul Raj 'Project Report on Amul

2

DECLARATION

I hereby declare that the report titled “A Study of the Retail Penetration of Amul products

in Cochin” is a bonafide record of the summer project done by me for Amul INDIA

LTD, Cochin during the period April-May 2008 as part of my MBA program at Rajagiri

School of Management, Kochi. This study has been undertaken in partial fulfillment of the

requirement for the award of Master of Business Administration by Mahatma Gandhi

University, Kerala

I also declare that this report has not been submitted in full or part thereof, to any

university or institutions for the award of any degree or diploma.

Place: Kochi RAHUL RAJ

Date: 09/06/2008 Rajagiri School of Management

Page 3: Rahul Raj 'Project Report on Amul

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ACKNOWLEDGEMENT

My gratification and elation on the success of this project would be incomplete without

mentioning the names of all the people who helped me with it and without whose guidance

and encouragement this wouldn‟t have been successful.

Above all I thank My Family for his grace and blessings at each and every stage of the

project.

I would like to express my deepest gratitude to the organization guide, Mr. Sudheer

Sudhakaran, Deputy Manager (Sales), Amul India Ltd., Cochin for having given me

the opportunity to do my project work in the organization.

I extend my sincere thanks to Mr. George Paul, Faculty Member, Rajagiri School of

Management, Cochin for having spared his valuable time with me and for all the

guidance given in executing the project as per requirements.

Last but not least, I would like to record my deepest sense of gratitude to my friends for

their support and constant encouragement.

Page 4: Rahul Raj 'Project Report on Amul

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TABLE OF CONTENTS

Sl.No CONTENTS Page No

1

Executive Summary

5

2

Industry Profile

6

3 Company Profile

9

4

Research Methodology

11

5

Data Analysis

15

6

Findings

30

7

Recommendation

32

8

Bibliography

34

9

Appendix

35

Page 5: Rahul Raj 'Project Report on Amul

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EXECUTIVE SUMMARY

This project was undertaken with the objective of penetration of kool milk product in

the outlet levels. It also looked into the different factor of stocking decision to the product

in the retail outlets . The study was conducted at Amul India Ltd, Cochin branch. The

retailer‟s preference was studied through using questionnaire.

A sample size of 60 respondents was taken for the study, whose responses were

studied and interpreted .The sampling design was used convenience sampling. The

process of analysis was done through excel work sheets, frequency table, percentage

analysis etc.

It was found that due to low consumption of milk, there is no more awareness of milk

product here It was the major cause to the low sell of kool milk product. Like that penetration

level in the outlet of milk product was low.

To the consider of stocking decision of product in retail outlet, Trust of the company was the first

preference of the retailers then credit on the product.

Finally the whole study of the research work , the company needs the effective

advertisement of the product in the local channel and print media for awareness of kool

product.

Page 6: Rahul Raj 'Project Report on Amul

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INDUSTRY PROFILE

FOOD INDUSTRY

The food industry is the complex, global collective of diverse businesses that together

supply much of the food energy consumed by the world population. Only subsistence

farmers, those who survive on what they grow, can be considered outside of the scope of

the modern food industry.

The food industry includes:

Regulation: local, regional, national and international rules and regulations for

food production and sale, including food quality and food safety, and industry

lobbying activities

Education: academic, vocational, consultancy

Research and development: food technology

Financial services: insurance, credit

Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural

construction, etc.

Agriculture: raising of crops and livestock, seafood

Food processing: preparation of fresh products for market, manufacture of

prepared food products

Marketing: promotion of generic products (e.g. milk board), new products, public

opinion, through advertising, packaging, public relations, etc

Wholesale and distribution: warehousing, transportation, logistics

Retail: supermarket chains and independent food stores, direct-to-consumer,

restaurant, food services

ADVANTAGE OF INDIA UNDER FOOD INDUSTRY:

India is one of the largest food producers in the world

India has diverse agro-climatic conditions and has a large and diverse raw material

base suitable for food processing companies

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Investment requirement of around US$ 15 billion exists in the food processing

sector

India is looking for investment in infrastructure, packaging and marketing

India has huge scientific and research talent pool

A largely untapped domestic market of 1000 million consumers

300 million upper and middle class consume processed food

200 million more consumers expected to shift to processed food by 2010

Well developed infrastructure and distribution network

Rapid urbanization, increased literacy, changing life style, increased number of

women in workforce, rising per capita income- leading to rapid growth and new

opportunities in food and beverages sector

50 per cent of household expenditure by Indians is on food items

Strategic geographic location (proximity of India to markets in Europe and Far

East, South East and West Asia)

Under the food industry, Dairy product is very important part of food processing. Dairy

processing is acting good role in India.

Dairy Processing

India ranks first in the world in terms of milk production. Indian production stands at 91

million tones growing at a CAGR of 4 per cent. This is primarily due to the initiatives

taken by the Operation flood programmes in organizing milk producers into cooperatives;

building infrastructure for milk procurement, processing and marketing and providing

financial, technical and management inputs by the Ministry of Agriculture and Ministry of

Food Processing Industries to turn the dairy sector into viable self-sustaining organized

sector. About 35% of milk produced in India is processed. The organized sector (large

scale dairy plants) processes about 13 million tones annually, while the unorganized sector

processes about 22 million tones per annum. In the organized sector, there are 676 dairy

plants in the Cooperative, Private and Government sectors registered with the Government

of India and the state Governments.

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India has a unique pattern of production, processing and marketing/consumption of milk,

which is not comparable with any large milk producing country. Approximately 70 million

rural households (primarily, small and marginal farmers and landless labourers ) in the

country are engaged in milk production. Over 11 million farmer are organized into about

0.1 million village Dairy Cooperative Societies (DCS)(about 110 farmers per DCS). The

cumulative milk handled by DCS across the country is about 18 million kg of milk per day.

These cooperatives form part of a national milk grid which links the milk producers

through out India with consumers in more than 700 towns and cities bridging the gaps on

account of seasonal and regional variations in the availability of milk.

The Ministry of food Processing Industries is promoting organized Dairy processing sector

to accomplish upcoming demands of processed dairy products and helping to identify

various areas of research for future product development and quality improvement to

revamp the Indian dairy export by way of providing financial assistance to the dairy

processing units. 32 Units have been sanctioned financial assistance (Rs.591 lakhs) under

the plan scheme of the Ministry during the year 2006-07.

Major Indian and Overseas Players in the Food industry

ITC Limited

Parle Products Pvt. Ltd.

Agro Tech Foods

Amul

Perfetti India Ltd.

Cadbury India Ltd.

PepsiCo India Holdings

Nestle India Pvt. Ltd.

Britannia Industries Ltd.

Hindustan Uni Lever Limited

MTR foods limited

Godrej industries Limited

Dabur India Ltd.

Page 9: Rahul Raj 'Project Report on Amul

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COMPANY PROFILE

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in

India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-

operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by

some 2.6 million milk producers in Gujarat, India. It is based in Anand town of Gujarat

and has been a sterling example of a co-operative organization's success in the long term.

The Amul Pattern has established itself as a uniquely appropriate model for rural

development. Amul has spurred the White Revolution of India, which has made India the

largest producer of milk and milk products in the world. It is also the world's biggest

vegetarian cheese brand .

GCMMF:

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products

marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which

aims to provide remunerative returns to the farmers and also serve the interest of

consumers by providing quality products which are good value for money.

Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate,

ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In

January 2006, Amul plans to launch India's first sports drink Stamina, which will be

competing with Coca Cola's Powerade and PepsiCo's Gatorade .

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an

annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer

members with milk collection average of 10.16 million litres per day. Besides India, Amul

has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China,

Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market

in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets

.Other potential markets being considered include Sri Lanka.

Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the

success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was

elected chairman of GCMMF.

Page 10: Rahul Raj 'Project Report on Amul

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ACHIEVEMENT:

Amul :Asia‟s largest dairy co-operative was created way back in1946 to make the milk

producer self-reliant and conduct milk- business with pride. Amul has always been the

trend setter in bringing and adapting the most modern technology to door steps to rural

farmers.

Amul created history in following areas:

a)First self motivated and autonomous farmers‟ organization comprising of more than

5000000 marginal milk producers of Kaira District.

b) Created Dairy co-operatives at village level functioning with milk collection centres

owned by them.

c) Computerized milk collection system with electronic scale and computerized accounting

system.

d)The first and only organization in world to get ISO 9000 standard for its farmers co-

operatives.

e)First to produce milk from powder from surplus milk.

Amul is the live example of how co-operation amongst the poor marginal farmers can

provide means for the socio-economic development of the under privileged marginal

farmers.

Amul in abroad:

Amul is going places. Literally. After having established its presence in China, Mauritius

and Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), India‟s

largest milk cooperative, is waiting to flood the Japanese market.

Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul

products are already available on shelves across several countries, including the US, China,

Australia, West Asian countries and Africa.

GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk,

ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk.

Page 11: Rahul Raj 'Project Report on Amul

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RESEARCH METHODOLOGY

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TITLE OF THE STUDY

A study of the penetration of „AMUL kool mlik‟ beverages products in the retail outlets

of Cochin & the factors that influence the stocking decision of retailers of such products.

OBJECTIVE OF THE RESEARCH

To find out the penetration of „AMUL KOOL MILK‟ beverages products in the

retail outlets of Cochin with reference to retailers of such products.

To find out the factors that influences the stocking decision of retailers of kool milk

beverages product in Cochin.

PROBLEM STATEMENT

There has been a drop in the percentage of retail outlets in Cochin where Amul had

penetration for its products, this study is intended to find out the percentage of outlets

where penetration of Amul products exists now and find out the factors that influence the

buying decision of retailers of beverage products.

SCOPE OF THE STUDY

The scope of the study is limited solely to the markets visited by the researcher for the

purpose of research; this may hence not be a total reflection of the penetrat ion of AMUL

products for all the retail outlets in Cochin.

SOURCES OF DATA

Primary sources

The primary data was collected through questionnaires. They were filled using the

scheduled method of data collection by the researcher.

Secondary sources

The secondary sources were used only for collecting information regarding the sample,

they were however not used for analysis.

Page 13: Rahul Raj 'Project Report on Amul

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RESEARCH DESIGN

A Research design specifies the methods and procedures for conducting a particular

study. It is a map (or) blue print to which the research is to be conducted. Descriptive

research design has been considered as a suitable methodology for present study and for

data analysis.

SAMPLING DESIGN

The sampling design used was Convenience sampling, which is a non-probability

sampling method. The convenience factors were the availability and approachability of the

respondents.

POPULATION

All types of outlets that stock and sell kool milk beverages products in the markets. The

outlets have been classified into as follows

Convenience stores : All kinds of shops including bakeries

Eateries : all kinds of eating joints

Groceries : all shops selling groceries

PLACES OF STUDY

The study was conducted in the retail outlets in and around COCHIN in the following

areas

i. Aluva

ii. Chembumukku

iii. Ernakulam

iv. Kakkanad

v. Kaloor

vi. Kachheripadi

vii. Mattancherry

viii. Menaka

ix. M.G.Road

x. Palarivattom

xi. Tripuntra

xii. Thevra jn.

Page 14: Rahul Raj 'Project Report on Amul

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MEASUREMENT

The research objective requires the researcher to find out the penetration of Amul kool

milk beverages products with reference to retailers of such products.

For this the following data relevant were collected

a. Amul product sold by the retailers

b. If sold, then which of the competitors complimentary products, has a higher

penetration in that outlet.

c. Strategies adopted by the company and its distributors that influence the stocking

decision for the product.

LIMITATIONS OF THE RESEARCH

The limitations of the research were as follows

1. Lack of proper experience on the part of the researcher in conducting such

studies in the past.

2. Time frame required was not enough to survey more number of outlets.

ANALYSIS TECHNIQUES

Quantitative analysis is performed using the data collected at each outlet to estimate the

presence of Amul products.

Tools Utilized

Percentage Analysis

Graph Chart

Page 15: Rahul Raj 'Project Report on Amul

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DATA ANALYSIS & INTERPRETATION

Page 16: Rahul Raj 'Project Report on Amul

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3. Outlet Types visited for the purpose of research.

Convenience Store Eatery Grocery Total

Outlets

35

13

12

60

The above table shows that out of 60 outlets surveyed; there were 35 convenience stores,13

eatery and 12 grocery.

Of all the retail outlets surveyed, 58% are convenience stores, 20% are groceries, 22% are

eateries.

58%

22%

20%

CONVENIENCE STORE

EATERY

GROCERY

RETAIL OUTLETS SURVEYED

Series1

Page 17: Rahul Raj 'Project Report on Amul

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4. How long have you been into the kool milk business?

The table

shows that out of 60 outlets,30 are those outlet which are selling the product less than 1 year, 17 are 1-3 years and 11 are more than 3 years.

Overall retail outlet surveyed, 52% are those outlet which have this product less than 1 years, 29% have 1-3 years and 19% have more than 3 years.

52%

29%

19%

LESS THAN 1 YEAR 1 - 3 YEARS MORE THAN 3 YEARS

DURATION SINCE IN BUSINESS

Series1

Less than 1 year 1-3 years More than 3

years

Total

Outlets 30 17 11 60

Page 18: Rahul Raj 'Project Report on Amul

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5a.Penetration Level of Amul products in retail outlets of Cochin.

The table above shows that the product Amul has penetrated in 32 outlet in the

comparision of 60 outlets .

The graph defines that Amul penetrated in 53% outlet while no penetration in 47% outlets.

53%47%

PENETRATION OF AMUL PRODUCT IN THE RETAIL OUTLET

YES

NO

TYPE

AMUL

TOTAL YES NO

Convenience

Store/ Modern Trade

Eatery

Grocery

Total

25

3

4

32

10

10

8

28

35

13

12

60

Page 19: Rahul Raj 'Project Report on Amul

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The table above shows that the product Milma has penetrated in 23outlets to the retail

outlets surveyed.

The above graph represents the penetration of Milma products which has 38% of

outlets surveyed.

38%

62%

YES NO

PENETRATION OF MILMA PRODUCT IN THE RETAIL OUTLET

Series1

TYPE

MILMA

TOTAL

YES

NO

Convenience

Store/Modern Trade

Eatery

Grocery

TOTAL

17

2

4

23

18

11

8

37

35

13

12

60

Page 20: Rahul Raj 'Project Report on Amul

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TYPE

OTHERS

TOTAL

YES

NO

Convenience

Store/Modern Trade

Eatery

Grocery

TOTAL

6

8

8

22

29

5

4

38

35

13

12

60

The table above shows that the products of other local brands available in 22 outlet of 60

outlets surveyed.

The graph represents the penetration of kool milk beverages products of other brands is

37% in Cochin outlets.

YES NO

37%63%

PENETRATION OF OTHER LOCAL BRAND IN

RETAIL OUTLETS

Series1

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5b.Which company kool product do you sell most?

The table shows that the sell of Amul is higher in 30 outlet while Milma in 18 and Others

in 12 outlets of 60 outlets.

Here chart represents the higher sell of product of the company where Amul is higher in

50% outlets where as Milma in 30% outlet and others in 20%.

50%

30%

20%

AMUL

MILMA

OTHERS

MOST SELL OF COMPANY PRODUCT

AMUL MILMA OTHERS TOTAL

OUTLETS

30 18

12

60

Page 22: Rahul Raj 'Project Report on Amul

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6.Outlets share of the various kool milk beverages product in cochin.

The table defines that in 60 outlets, 32 are those outlets where Amul available, Milma in 23 and Others in 22 outlets.

From the graph it is clear that Amul has outlets share of 41%, followed by Milma with

outlets share of 30% and the other local brands have outlets share of 29%.

AMUL41%

MILMA30%

OTHERS29%

OUTLETS SHARE OF VARIOUS KOOL MILK

BEVERAGES PRODUCT

AMUL

MILMA

OTHERS

OUTLETS

32

23

22

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7a,8a,9a. Availability of credit, discount and good distribution channel in Amul product.

AMUL OUTLETS

YES

NO

CREDIT

12

20

DISCOUNT

10

22

GOOD DISTRIBUTION

CHANNEL

20

12

The table defines credit, discount and good distribution channel of Amul.

Amul available in32 outlet of 60 outlets surveyed.

Among 32 outlets of Amul, only 12 outlets get credit while 20 outlet do not get.

Regarding discount, only 10 outlets get discount while 22 outlets don’t get.

For distribution channel, 20 outlets said that Amul distribution channel good as well as

moderately good where as 12 outlets said bad distribution channel.

Page 24: Rahul Raj 'Project Report on Amul

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In the above chart, it defines that 37% outlets are getting Amul credit, 31% discount and 63% outlets agree that Amul has a good distribution channel.

7b,8b,9b. Influencing factor for stocking decision on the basis of Credit, Discount and Distribution channel.

INFLUENCE

YES

NO

CREDIT

37

23

DISCOUNT

29

31

DISTRIBUTION CHANNEL

35

25

This table shows the influencing factor of stocking decision on the availability of credit, discount and distribution channel of the company.

0

10

20

30

40

50

60

70

CREDIT DISCOUNT GOOD DISTRIBUTION

CHANNEL

37%31%

63%63%69%

37%

YES

NO

Page 25: Rahul Raj 'Project Report on Amul

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Out of 60 outlets surveyed, 37 outlets said that credit influence his stocking decision while

23 outlets said no influence his Stocking decision.

Regarding discount, 29 outlets agree that discount influence his stocking decision while 31 outlets not influenced by discount.

When consider on the distribution channel, 35 outlets agree that it influence the stocking decision where as 25 outlets said that no influenced by distribution channel.

According to this chart, 62 % outlets accept that credit influence his stocking decision while 48% told discount and 58% said that good distribution channel influence his

stocking decision.

0 20 40 60 80

CREDIT

DISCOUNT

DISTRIBUTION CHANNEL

62%

48%

58%

38%

52%

42%

NO YES

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10a.Replacement offer to the expired packed product by the company?

Table represents that 25 outlets said , Amul has better replacement offer while 17 said Milma and 18 said others.

42% of the retailers believed that Amul has the better replacement of packed expired

product where as 28% believed Milma and 30% Others.

42%

28%

30%

REPLACEMENT OF EXPIRED PRODUCT

AMUL

MILMA

OTHERS

REPLACEMENT OFFER

AMUL MILMA OTHERS TOTAL

CHANNEL

25

17

18

60

Page 27: Rahul Raj 'Project Report on Amul

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10b.Replacement offer to the expired product influence the stocking decision?

INFLUENCE

TOTAL YES NO

REPLACEMENT

OFFER

36

24

60

Out of 60 outlets surveyed ,36 outlets influenced by replacement offer while 24 outlets didn‟t influence by replacement offer.

On the outlet surveyed ,60% of the retailers said that the replacement offer influence his

stocking decision while 40% said that replacement offer does not influence his stocking decision.

YES60%

NO40%

INFLUENCE OF REPLACEMENT OFFER AS A STOCKING DECISION

Page 28: Rahul Raj 'Project Report on Amul

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Q11. Ranking of some of the other factors that influence a retailers stocking decision.

PROMOTION PACKAGING OFFERS CONSUMER

PREFERENCE

OUTLET

PREFERENCE

20

8

10

22

FINAL RANK

2

4

3

1

From the above table, it is observed that, consumer preference are the most important

factor that affects the stocking decision of the retailer, followed by promotions done by the

company to promote its products, offers and finally packaging of the product.

2

4

3

1

PROMOTION PACKAGING OFFERS CONSUMER PREFERENCE

RANKING FACTOR INFLUENCING DECISION

Series1

Page 29: Rahul Raj 'Project Report on Amul

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Q12. Overall ranking of the influencing factors to the buying decision of retailers.

CREDIT DISTRIBUTION

CHANNEL

DISCOUNT COMPANY

TRUST

OUTLET

PREFERENCE

18

13

10

19

FINAL RANK

2

3

4

1

From the above table it is observed that, company trust is the highest rated factor to the

influencing the stocking decision of the product to the retailer, followed by the credit

,quality of the distribution network and finally the discount.

2

3

4

1

CREDIT

DISTRIBUTION CHANNEL

DISCOUNT

COMPANY TRUST

RANKING OF BUYING DECISION BY RETAILORS

Series1

Page 30: Rahul Raj 'Project Report on Amul

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FINDINGS OF THE STUDY

As per the analysis the following outcome may be considered.

1.Due to low consumption of milk in Cochin ,there is no more awareness of the „milk

product‟ here.

2. Lack of awareness of milk product is the major cause to the low consumption of „kool

milk beverages‟ product.

3.According to outlets surveyed, the milk beverage products are consumed mostly from 1

years.

4.Amul is available in maximum outlets in the comparison of the competitor products.

5. On the basis of sell of milk beverage product, Amul acts the leading role among

competitor product.

6 There is only few outlets where credit and discount available by the Amul company.

7. On the concern of distribution channel , most of the retailers agree that Amul has good

distribution channel.

8. Amul gives the better replacement offer to the expired product than the other company

products.

9.Replacement offer to the expired product is one of the most important factor for

influencing the stocking decision of the product.

10. Ranking of some other factors that influence the retailers stocking decision:

Following is the order in which the retailers ranked the other factors that influence their

stocking decision.

i. Consumer preference given by the company to the retailers of the product

was raked 1st

ii. Promotional strategies of the company for promoting it‟s products was

ranked 2nd

iii. Offers for the product was ranked 3rd

iv. Packaging of the product was ranked only 4th

Page 31: Rahul Raj 'Project Report on Amul

31

11. Overall ranking of the factors that influence the retailers stocking decision.

Following is the sequential order in which the retailers ranked the factors that

influence their stocking decision.

i. Trust of the company is the most important point for its products.

ii. Credit offered by the distributor

iii. Distribution in supplying the products regularly

iv. Discounts provided by the company for its products.

Page 32: Rahul Raj 'Project Report on Amul

32

RECOMMENDATIONS

1. Amul has a relatively good distribution network, but still company is not able to

fulfill the demand of outlet in the peak season when demand is very high. Here

company should consider on the supply of product in the peak season.

2. 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.

3. Since the penetration of Amul products in eateries is the worst among all the

channels, the company ought to adopt strategy like supplying free menu cards,

which has the company logo printed on them, this will not only increase the

penetration of the product in the outlets, but also improve the market sales.

4. The company should also ask its distributors to supply its products on a bill to bill

based credit system with at least all the reliable retailers, so that the product

penetration in the outlets increases in terms of percentage of units stocked at a time

in the outlet, this would also look appealing to the customer who would instead like

to pick up the product at first glance.

5. Credit is the 2nd biggest factor that influences the penetration of the product into

the retail outlet. So company should give the credit to all outlets.

6. Given the fact that margin offered to the retailer is not similar in the case of the

competitor‟s product. For this fact, the company should give good margin to the

retailers than the competitors.

7. Due to the lack of awareness of milk product in cochin, the company should be

advertised of the product by print and electronic media specially in local channel

and newspapers.

Page 33: Rahul Raj 'Project Report on Amul

33

8. Discount is also a important factor of stocking decision for retailers. So, company

should give discount to all retailers for influencing the stocking.

9. Company should also give the replacement offer to those outlet which is running

with small business.

10. Only fresh product should be supply in the outlet. The main cause of the supply of

fresh product is that customer always wants fresh product. They don‟t want to take

3 or 4 days old product.

Page 34: Rahul Raj 'Project Report on Amul

34

BIBLIOGRAPHY

Naresh K Malhotra., Marketing Research – An Applied Orientation, 4th Edition,

Pearson Education Pvt. Ltd, New Delhi, 2003.

Abraham Koshy, Mileshwar Jha -- Marketing Management, Pearson Prentice Hall,

New Delhi, 2007.

C.R.Kothari- Research Methodology, New Age International (P) Limited, New

Delhi 2007.

WEBLIOGRAPHY

www.wikipedia.org

www.amul.com

www.google.com

Page 35: Rahul Raj 'Project Report on Amul

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ANNEXURE

QUESTIONNAIRE FOR THE RETAILER

Respected Sir/Madam,

This is a questionnaire intended to study the penetration of ‘AMUL’ KOOL MILK

BEVERAGES PRODUCT in the retail outlets of COCHIN and the different factors that play an important role in the stocking decision of retailers.

5a. Which company

product do you stock?

1) AMUL

2)MILMA 3)BOTH 4)OTHERS

5b.Which

company kool

product do you

sell most?

1)AMUL 2)MILMA 3)OTHERS

1.Name of the Outlet

2.Location of the

Outlet

3.Type of Outlet a) Convenience Store b) Eatery c) Grocery

4. How long have you

been into the KOOL

MILK business?

a) Less than 1 year b) 1 to 3 years c) Greater than 3

year

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36

10a. Which company offers

you a better replacement

alternative against expired

packed product?

a) AMUL b) MILMA c) Others d) None in

particular

6. How many units

do you sell of the

following brands

daily?

a) AMUL b) MILMA c) Others d)Not Applicable

7a. Do you receive credit

from the AMUL

company/distributor?

a) Yes b) No

7b. Does it influence your

stocking decision?

a) Yes b) No

8a. Is discount available

for purchase of AMUL

products?

a) Yes b) No c) Not Applicable

8b. Does discount

influence your stocking

decision?

a) Yes b) No

9a. How effective do you

feel AMUL’S distribution

channel?

a) Good b) Moderate c) Bad d) Not Applicable

9b. Does the effectiveness

of the distribution channel

influence your stocking

decision?

a) Yes b) No

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37

10b. Does it influence your

stocking decision

a) Yes b) No

11. Which other factors given below influence your stocking decision? Rank on a scale

of (1 – 4), the options given below, where 1 is the most important & 4 is the least

important.

Packaging ________ Promotional effectiveness of the company________

Offers _______ Consumers preference ________

12. Rank the following criteria from ( 1 –4 ), where 1 is the most important and 4 is

the least important, which influences your stocking decision?

Credit _______ Distribution channel efficiency______

Discount _______ Trust of the company_______

13.Suggestion for Amul:

Thank you for your kind cooperation, valuable inputs and time.