130717203 Project Report on Comparative Analysis of Amul With Other Brands

RESEARCH PROJECT REPORT ON “Comparative Study into Sales & distribution of

AM! "A#R$ & PARA% "A#R$ 

S'M#TTE" #N PART#A! (!(#!MENT O( THE A)AR" O( THE "E%REE O( MASTERS O( 'S#NESS A"M#N#STRAT#ON *+,,-. +,//0 MAHAMA$A TECHN#CA! N#1ERS#T$

nder %uidan2e of3

Submitted

by3 Mr. CYRIL PARMAR (Training in charge)

PRAVEEN KUMAR MBA III (SEM) ROLL NO.0909470068

0

%#MT #NST#TTE O( MANA%EMENT TECHNO!O%$4 %REATER NO#"A Affiliated to Mahamaya Technical University

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"EC!ARAT#ON

I hereby dec!re "h!" "he #r$%ec" re#$r" e&"'"ed “Comparative

Study into Sales & distribution of AM! "A#R$ & PARA% "A#R$  ' !& $r''&! !&d !*"he&"'c +$r, d$&e by -e !&d ' b!ed *#$& "he "*dy c$&d*c"ed by -e.

h' #r$%ec" re#$r" +! *&der"!,e& ! ! #!r" $/ "he M.B.A. Pr$r!--e $/ M!h!-!y! ech&'c! U&'er'"y.

*Praveen 5umar0 M'A 6rd SEM

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ACKNOWLEDGEMENT

I would like to express my heartfelt gratitude toward Mr. Mr. . !. oshi "#. M.$ the chairman of the AMUL, who gave me permission to do my Summer raining !ro"ect in AMUL. Also I would like to convey my sincere thanks to Mr. Cyril %armar (Training in charge) who supported me in ac#uiring practical knowledge

throughout guiding me in my pro"ect.

I am deeply thankful to $IM Institute of Management % echnology for permitting me to do Summer raining !ro"ect and encouraging me to complete successfully. I would also like to thank my faculty mem&ers, for her keen interest, valua&le guidance, inspiration, immense 'eal for hard work and positive outlook towards the su&"ect. heir intellect, persuasiveness and insistence on a good work were a guiding light in the darkness of my ignorance.

I would also like to express my sincere thanks to administrative personnel who have helped me in carrying out my summer training. Lastly, I would like thank all the persons who have helped me directly or indirectly in completing my pro"ect successfully.

PRA1EEN 5MAR

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PREFACE

Summer Internship !rogramme is a part of M(A !rogramme, which is very helpful in getting practical knowledge in this glo&ali'ation world. )ow*a*days only theoretical knowledge is not enough to success in life &ut most important we must have practical knowledge. +ith the help of this training, I came to know how to apply theoretical knowledge in practice.

Main purpose of this training is to have awareness a&out industrial environment and to know a&out different functions of an organi'ation like istri&ution, !roduction and Marketing.

I got an opportunity in -AIA ISI/ /0*0!1AI21 MIL- U)I0) LIMI1, Anand, $u"arat to undergo Summer Internship !rogramme as a part of M(A !rogramme. I consider myself privileged that I got a chance to work with reputed company and can upgrade my knowledge related to practical aspect of &usiness world which is very helpful in my career &uilding.

.

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C&'T'T Cha%ter *

Executive Summary



Introduction to the Indian Dairy Industry





Company Profie of !mu



Company Profie of Para" Dairy



Saes and Distri#ution strate"ies

Cha%ter +

$esearch %ethodoo"y 

&#'ective of the study



Si"nificance of the study



$esearch %ethodoo"y



Data Coection (echni)ues



!naytica (oos



*imitations of the study

Cha%ter , 

Data interpretation and +raphica !naysis



,indin"s- su""estions and Concusion

Cha%ter -

Anne/re

a /uestionnaire # i#io"raphy



EXECUTIVE SUMMARY

In today’s compeve world while entering in the market it is very necessary to have good knowledge of the potenal of a parcular market. The growth of a company is invariably determined not just by its strategy, but on how it responds to the challenges it encounters. Over the decades !"# has successfully countered several challenges that have come its way with innovave responses and connuous improvement, which have enabled it to remain stable and even convert some of these challenges into opportunies. It is the culture of endurance that has accorded !"# the insight and focus to deal with the current economic environment. $rawing from its inner strength and beliefs, !"# responded by launching several iniaves across all its operaons in various geographies that are helping the group achieve growth even in current mes. It is also this very strategic culture that will propel !"# to connue on its growth trajectory in years to come.

(he report provides a comprehensive insi"ht into the company and aso a#out the companys S&( anaysis. (his report mainy studies in detai the various product mix strate"ies of the company and aso focuses on the se"mentation of #oth company #ased and industry #ased and heps in anaysin" the companys competitive advanta"e and the reason #ehind its success.



C7apter / #N"#AN "A#R$ #N"STR$

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#NTRO"CT#ON TO THE #N"#AN "A#R$ #N"STR$ The 0orld1s 2iggest dairy %rod/cing co/ntry is gro0ing fast and loo3ing to 2ecome an e%ort %o0erho/se des%ite ma4or 5/ality %ro2lems... A 'ote to o/r Readers6 the foo6in" information on India7s dairy sector is reproduced

from India Infoine.com. India is the 6ord7s ar"est mi8 producin" country and is "ro6in" fast- 6ith an eye to6ard #ecomin" a ma'or dairy exporter. (his artice is hepfu readin" for anyone interested #etter understandin".

Cons/mer 7a2its and Practices

%i8 has #een an inte"ra part of Indian food for centuries. (he per capita avaia#iity of mi8 in India has "ro6n from 152 "m per person per day in 1952 to 1:2"m in 1992 and 203 "m in 199:;99.(his is expected to increase to 212"ms for 200:. is utii?ed for conversion to mi8 products. !mon" the mi8 products manufactured #y the or"ani?ed sector some of the prominent ones are "hee- #utter- cheese- ice creams- mi8 po6ders- mated mi8 food- condensed mi8 infants foods etc. &f these "hee aone accounts for :>. It is estimated that around 20> of the tota mi8 produced in the country is consumed at producer;househod eve and remainin" is mar8eted throu"h various cooperatives- private dairies and vendors. !so of the tota produce more than 0> is procured #y cooperatives and other private dairies. hie for cooperatives of the tota mi8 procured 0> is consumed in fuid form and rest is used for manufacturin" processed vaue added dairy products@ for private dairies ony 4> is mar8eted in fuid form and rest is processed into vaue added dairy products i8e "hee- ma8han etc.

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Sti- severa consumers in ur#an areas prefer to #uy oose mi8 from vendors due to the stron" perception that oose mi8 is fresh. !so- the current eve of processin" and pac8a"in" capacity imits the avaia#iity of pac8a"ed mi8. (he preferred dairy anima in India is #uffao uni8e the ma'ority of the 6ord mar8et- 6hich is dominated #y co6 mi8. !s hi"h as 9:> of mi8 is produced in rura India- 6hich caters to 52> of the tota popuation- 6hereas the ur#an sector 6ith 2:> popuation consumes > of tota mi8 produced. Even in ur#an India- as hi"h as :3> of the consumed mi8 comes from the unor"ani?ed traditiona sector. Presenty ony 12> of the mi8 mar8et is represented #y pac8a"ed and #randed pasteuri?ed mi8- vaued at a#out $s.:- 000 crores. /uaity of mi8 sod #y unor"ani?ed sector ho6ever is inconsistent and so is the price across the season in oca areas. !so these vendors add 6ater and caustic soda- 6hich ma8es the mi8 unhy"ienic.

Mar3et i8e and #ro0th

%ar8et si?e for mi8 Asod in ooseB pac8a"ed form is estimated to #e 3mn %( vaued at $s450#n. (he mar8et is currenty "ro6in" at round 4> pa in voume terms. (he mi8 surpus states in India are ttar Pradesh- Pun'a#- of nationa production.

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%i8 production "re6 #y a mere 1> pa #et6een 1945 and 1950. Since the eary 507s- under &peration ,ood- production "ro6th increased si"nificanty avera"in" over > pa. !#out 5> of mi8 is consumed at the househod eve 6hich is not a part of commercia dairy industry. *oose mi8 has a ar"er mar8et in India as it is perceived to #e fresh #y most consumers. In reaity ho6ever- it poses a hi"her ris8 of aduteration and contamination. (he production of mi8 products- i.e. mi8 products incudin" infant mi8 foodmated food- condensed mi8  cheese stood at 3.05 a8h %( in 200:. Production of mi8 po6der incudin" infant mi8;food has risen to 2.2 a8h %( in 200:- 6hereas that of mated food is at 000 %(. Cheese and condensed mi8 productio n stands at 000 and 11000 %( respectivey in the same year.

Ma4or Players

(he pac8a"ed mi8 se"ment is dominated #y the dairy cooperatives. +u'arat Co;operative %i8 %ar8etin" ,ederation A+C%%, is the ar"est payer. ! other oca dairy cooperatives have their oca #rands A,or e.". +o8u- arana in %aharashtra- Saras in $a'asthan- Fer8a in Pun'a#- Fi'aya in !ndhra Pradesh- !avin in (ami =adu- etc. &ther private payers incude G  Dairy- . In reative terms- penetration of "hee is si"nificanty hi"her in =orth and est- 6hich are mi8 surpus re"ions. =orth accounts for 5> of "hee consumption and est for 23>- South  East to"ether account for the #aance 20>. ! ar"e part of "hee is made at home and #y smaB cotta"e industry from mi8. (he reative share of #randed products in this cate"ory is very o6 at around 1;2>. %i8 po6der and condensed mi8 have not #een a#e to "arner any si"nificant consumer acceptance in India as indicated #y a very o6 4.5> penetration. (he penetration is hi"her at :.1> in ur#an areas and o6er at 3.> in rura areas. ithin ur#an areas- it is reativey hi"her in medium si?ed to6ns at :.> compared to 5.5> in ar"e metros.

1

%ort Potential

India has the potentia to #ecome one of the eadin" payers in mi8 and mi8 product exports. *ocation advanta"eH India is ocated amidst ma'or mi8 deficit countries in !sia and !frica. %a'or importers of mi8 and mi8 products are an"adesh- China "ro6th in the se"ment. !mu has aso #ecome more a""ressive 6ith aunch of ne6 variants such as %o??area cheese Aused in Pi??a- cheese po6der- etc.

(he entry of ne6 payers and increased mar8etin" activity is expected to expand the mar8et. ! the ma'or payers are expandin" their capacities

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Capa2ity e9pansion in C7eese Company "ynami2s

'rands Manufa2tures

State for Ma7aras7tra

Capa2ity 6B tons per

%roup % CM M (

'ritannia Amul

%uFarat

day +, tons per

AP""C(

1iFaya

And7ra

day /, tons per

Prades7

day

Mil: Po?der %i8 po6der is mainy of 2 types J hoe mi8 po6der J S8immed mi8 po6der hoe mi8 po6der contains fat- as distin"uished from s8immed mi8 po6der- 6hich is produced #y removin" fat from mi8 soids. S8immed mi8 po6der is preferred #y diet conscious consumers. Dairy 6hitener s contain more fat than s8immed mi8 po6der #ut ess compared to 6hoe mi8 po6der. Dairy 6hiteners are popuar mi8 su#stitute for ma8in" tea- coffee etc. (he penetration of these products in mi8 a#undant re"ions is driven #y convenience and non perisha#e nature Aon"er shef ife of the product.

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Dairy sector of advanced nations export mi8 products 6ith a su#sidy of K 1000 per tones 6ith a eve of su#sidy more than 0 > of the price of mi8 po6der produced in India- this has ed to ar"e scae imports of mi8 po6der #oth in 6hoe and s8immed form. (o protect the domestic sector from these su#sidi?ed imports the centra "overnment has recenty increased the #asic import duty on a imports of mi8 po6der more than 10000 %( to 0> from 1>. ,or imports ess than 10000 %( the #asic customs duty has #een eft unchan"ed at 1>. In 200: India is estimated to have imported a#out 1:-000 tonnes of mi8 po6der a"ainst a tota estimated production of 2.40 *a8h %(s. In 2005;0: India is expected to export 10000 %( of s8immed mi8 po6der due to rise in internationa prices to K2300 per %( from ast year7s eves of K1400 per %(. (hese expectations are #ased on the stron" demand from $ussia- East !sia and *atin !merica- and aso on ti"htenin" of suppy in E- 6hich accounts for 5> of the annua "o#a S8immed %i8 Po6der exports. Mil3 Collection Cycle

(he success of each and every dairy industry is the "ettin" the mi8 from the farmers and ma8in" that mi8 in use as soon as possi#e #efore that mi8 "et spoied #ecause the mi8 is the perisha#e product. ,or the smooth runnin" the #usiness of dairy industry the industry must concentrate on the mi8 coection cyce. !mu dairy is very conscious a#out the mi8 coection cyce #ecause the #ase of the success of the !mu is mi8 coection cyce.

Prod/ction ca%acity of Am/l    

utter Po6der pant Po6der pant ,avour mi8

0 to 0 (ones 50 tones 0 tones 40000 #ottes

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Ma4or Players

%i8 Po6derBDairy hitenersH %a'or s8immed mi8 #rands are Sa"ar A+C%%, and =andini Aarnata8a %i8 ,ederation- !mu ,u Cream mi8 po6der is a 6hoe mi8 po6der #rand. *eadin" #rands in the dairy 6hitener se"ment are =estLs Everyday- +C%%,7s !muyaDamia Industry7s Sapan- 6aity Dairy India7s reamountry- oc8hardt7s ,arm ,resh and ritannia7s %i8man Dairy hitener.

Condensed Mil3

(he condensed mi8 mar8et has "ro6n from 9000 %( in 2005 to 11000 %( in 200:. Condensed mi8 is a popuar in"redient used in home;made s6eets and ca8es. =estLs %i8maid is the eadin" #rand 6ith more than > mar8et share. (he ony other competitor is +C%%,7s !mu.

Infant 9oods

=este is the mar8et eader in the se"ment. (his is a cate"ory 6here #rand oyaties are very stron" as mothers 6ant the #est for their #a#ies. mar8et share. &ther #rands are fat is re)uired to produce 1 8" of #utter.

Cheese6 (here are thousands of varieties of cheese in the 6ord. (he type of

manufacturin" process used in the production of cheese determines its favour- 6hich ran"es from extremey mid to very sharp- and its texture- 6hich can #e semi;soid to amost stone hard. Cheese ma8in" re)uires four main in"redients ; "ood )uaity mi8rennet or coa"uatin" acids- cuture and sat. Cheese is "eneray made from co67s mi8. !#out 10 itres of mi8 6ith 3> fat is re)uired for ma8in" 1 8" of cheese. =atura Cheese is made #y coa"uatin" or curdin" mi8- stirrin"  heatin" the curd- drainin" off the 6hey and coectin" or pressin" the curd. (he desired favour and texture is o#tained #y varyin" the temperature- humidity and time period of the curin" process. S6eetened condensed mi8 is usuay made from fresh mi8 #y addin" su"ar to the mi8 pre;6armin"

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and concentratin" the mixture in the hi"h vacuum. (he syrupy mi8 is then cooed so that the actose crystai?es as very fine crystas and then the product is coa"uated. 9/t/re Pros%ects

IndiaN N s dairy sector is expected to tripe its production in the next 10 years in vie6 of expandin" potentia for export to Europe and the est. %oreover 6ith (& re"uations expected to come into force in comin" years a the deveoped countries 6hich are amon" #i" exporters today 6oud have to 6ithdra6 the support and su#sidy to their domestic mi8 products secto r. !so India today is the o6est cost producer of per itre of mi8 in the 6ord- at 25 cents- compared 6ith the .S7 3 cents- and GapanN N s K2.: doars. !so to ta8e advanta"e of this o6est cost of mi8 production and increasin" production in the country mutinationa companies are pannin" to expand their activities here. Some of these mi8 producers have aready o#tained )uaity standard certificates from the authorities. (his 6i hep them in mar8etin" their products in forei"n countries in processed form. (he ur#an mar8et for mi8 products is expected to "ro6 at an acceerated pace of around 33> per annum to around $s.43-0 0 crores #y year 200:. (his "ro6t h is "oin" to come from the "reater emphasis on the processed foods sector and aso #y increase in the conversion of mi8 into mi8 products. y 200:- the vaue of Indian dairy produce is expected to #e $s 10- 00-000 miion. Presenty the mar8et is vaued at around $s500-000mn.

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COMPANY PROFILE OF AMUL The Am/l > Meaning AMUL -e!& 1 #r'cee 1 '& S!&,r'" . A 2*!'"y c$&"r$ e3#er" '& A&!&d *e"ed "he br!&d &!-e 1AMUL /r$- "he S!&,r'" +$rd 1A-$$y! !r'!&"5 ! -e!&'& 1#r'cee !re /$*&d '& eer! I&d'!& !&*!e. A-* #r$d*c" h!e bee& *ed '& -''$& $/ h$-e '&ce 946 . 

A-* b*""er



A-* -', #$+der



A-* hee



A-*#r!y



A-* cheee



A-* ch$c$!"e



A-* Ice cre!-

$d!y A-* ' ! y-b$ $/ -!&y "h' & . $/ h' h  2*!'"y #r$d*c" $ d

!"

re!$&!be #r'ce .  "r'*-#h $/ '&d'e&$* "ech&$$y . O/ "he -!r,e"'& !y $/ ! /!r-er $r!&':!"'$& . A&d #r$e& -$de /$r d!'ry dee$#-e&" .

M&TT&? @II&'? A' ;UALITY P&LICY M&TT&

(he main motto of !%* is to hep farmers. ,armers 6ere the foundation stone of !%*. (he system 6or8s ony for farmers and for consumers- not for profit. (he main of !%* is to provide )uaity product s to the consumers at minimum cost. (he "oa of !%* is to provide maximum profit in terms of money to the farmers.

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@II&'

Fision of !%* is to provide and vanish the pro#ems of farmers Ami8 producers. (he !%* apparition 6as to run the or"ani?ation 6ith co;operative of four main parties- the farmers- the representatives- the mar8eters- and the consumers.

;UALITY P&LICY

e the motivated and devoted 6or8 force of !%* are committed to produce 6hoe some and safe foods of exceent )uaity to remain mar8et eaders throu"h depoyment of )uaity mana"ement system- state of art technoo"y innovation and eco; friendy dei"htment of customer and #etterment of mi8 producer 7IT&RY

In eary 1940s a farmer in aira district- as ese6here in India- derived his income amost entirey from seasona crops. (he income from mi8 6as patry and coud not #e depended upon. (he main #uyers 6ere mi8 traders of Poson *td.;a privatey o6ned

33

company that en'oyed monopoy for suppy of mi8 from aira to the +overnment %i8 Scheme om#ay. (he system eads to expoitation of poor and iiterate farmers #y the private traders.

= / 4

/ooling 3;*> /4

Ageing3;*> /8 6?hours4

/ream (alance tank

!@1 3 for temperature ad"ustment at *; /4

/hurning 3speed = in the #randed sector in Dehi 6here it ses 2.3 miion iters of mi8 daiy and underta8es its mar8etin" operations throu"h around 14-000 retai outets and :4 excusive outets of Para" Dairy. (he companys derives si"nificant competitive advanta"e from its uni)ue distri#ution net6or8 of #u8 vendin" #ooths- retai outets and mo#ie units. Para" Dairy ice creams aunched in the year 199 have sho6n continuous "ro6th over the years and today #oasts of approximatey 2> mar8et share in Dehi and =C$. Para" Dairy aso manufactures and mar8ets a 6ide ran"e of dairy products that incude utter- Dahi- +heeCheese-  and not satisfied 0>. Pac8in" #y consumer !mu 2> and no5> and Para" 6ith satisfied 5>

102

and not satisfied 2>. /uaity 6ise !mu 1> and no :> and Para" 6ith satisfied 0> and not satisfied 40>.

RETA#!ER ANA!$S#S I.

I& d!'ry #r$d*c"5 +h'ch c$-#!&y #r$d*c" de-!&d ' h'her

#nterpretation3 103

;0#er ce&" c$&*-er de-!&d /$r A-* d!'ry #r$d*c" J . rand preferred #y consumer e.". 50> !mu  and 30> Para". (aste preferred #y consumer :> !mu and 32> Para". Price 6ise #y consumer 0> !mu and 40> Para".

III.

h'ch #r$d*c" $/

A-* ' #re/erred by c*"$-er

#nterpretation3

10

! consumers Preferred 6ith their product and some consumer chan"e product (aste #y consumer !mu :0> and no20> and Para" 6ith Preferred 4> and not Preferred 4>. Price #y consumer !mu 30> and no50> and Para" 6ith Preferred 40> and not Preferred 0>. Pac8in" #y consumer !mu 2> and no5> and Para" 6ith Preferred 5> and not Preferred 2>. /uaity 6ise !mu 1> and no :> and Para" 6ith Preferred 0> and not Preferred 40>.

10

C7apter B '&d'&5 *e"'$& J c$&c*'$&

(#N"#N%S

105

1. (he company caters to the Indian paate- 6hich is its primary driver of success. In i"ht of this statement- criticay examine the mar8etin" strate"ies adopted #y !mu  Para" Dairy to capture a si?ea#e mar8et share of the or"ani?ed Dairy #ased food Product in India.

2. In the modern competitive scenario- promotion is a 8ey eement in the mar8etin" mix of a company. Criticay anay?e the promotion strate"ies adopted #y !mu India Pvt. *td. hat other efforts must the company ta8e to effectivey promote its productsT

3. Dairy #ased Products contri#ute a ma'or share of the revenues of !mu. +iven the competitive scenario in the Dairy Products in India- 6here competitors such as Para" Dairy are introducin" severa innovative products- 6hat measures must !mu ta8e to remain competitiveT Expain in detai.

10:

RECOMMENDATIONS

1.

Company shoud have feed #ac8 from mar8et and consumer a#out the Dairy #ased Products.

2.

(he more ,avors of !mu  Para" Dairy Products shoud #ecome in the %ar8et.

3.

(he company provided some sma schemes for retaier aso.

4.

(he company "ives some "ifts for customer aso.

.

(he c ompany s houd a ssociate i tsef 6 ith s ome " ames o r tournaments i8e foot#a- cric8et and so on.

.

Company s houd p rovide s ponsored s eminar m ar8et i ntei"ence; Company shoud maintain the heathy reationship 6ith mar8et distri#ution channe i.e. 6hoe seer- distri#utor- retaiers 6hich 6i #oost the #rand ima"e.

5.

Company shoud chec8 the mar8et rea position hep the trainees and other survey or"ani?ations.

:.

Company s houd  aunch i ts 6 e#site a nd u se n e6 a dvertisin" channes@ i.e. X (raier in cinema has X