MARKET ANALYSIS & IMPACT OF PROMOTIONAL ACTIVITIES FOR AMUL PRO IN ANAND & VIDHYANAGAR CITY

Transcription

1 CHUDASAMA MAITRIBEN JAYENDRASINH M.B.A. (INTERNATIONAL AGRIBUSINESS) 2015 MARKET ANALYSIS & IMPACT OF PROMOTIONAL ACTIVITIES FOR AMUL PRO IN ANAND & VIDHYANAGAR CITY BY Chudasama Maitriben Jayendrasinh B.Tech. (Agricultural Information Technology) INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE ANAND AGRICULTURAL UNIVERSITY ANAND MAY 2015

2 MARKET ANALYSIS & IMPACT OF PROMOTIONAL ACTIVITIES FOR AMUL PRO IN ANAND & VIDHYANAGAR CITY A PROJECT REPORT Submitted by CHUDASAMA MAITRIBEN JAYENDRASINH Reg. No In partial fulfillment for the award of the degree Of MASTER OF BUSINESS ADMINISTRATION (INTERNATIONAL AGRIBUSINESS) UNDER THE GUIDANCE OF DR. SANJIV KUMAR (Assistant Professor) INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE ANAND AGRICULTURAL UNIVERSITY ANAND MAY-2015

3 INTERNATIONAL AGRI-BUSINESS MANAGEMENT INSTITUTE ANAND AGRICULTURAL UNIVERSITY ANAND CERTIFICATE This is to certify that this project report entitled MARKET ANALYSIS & IMPACT OF PROMOTIONAL ACTIVITIES FOR AMUL PRO IN ANAND & VIDHYANAGAR CITY of M.B.A. (International Agribusiness) embodies bonafide research work carried out by CHUDASAMA MAITRIBEN JYENDRASINH Under my guidance and supervision and that no part of this project work has been submitted for any other degree. The assistance, guidance and help received the course of investigation have been fully acknowledged. Place: IABMI, Anand Date: ( Dr. Sanjiv Kumar) Advisor

4 DECLARATION I hereby declare that the project entitled MARKET ANALYSIS & IMPACT OF PROMOTIONAL ACTIVITIES FOR AMUL PRO IN ANAND & VIDHYANAGAR CITY submitted for the M.B.A. (International Agribusiness) degree is my original work and this has not formed the basis for the award of any degree, associate ship or other similar titles. Place: IABMI, Anand Date: Name: Chudasma Maitriben Jayendrasinh Reg. No

5 ACKNOWLEDGEMENT I have great deep sense of gratitude for Gujarat Co-operative Milk Marketing Federation (GCMMF) Anand for providing me the opportunity to undergo my MBA Project work. I feel immense pleasure in expressing my sincere and profound sense of gratitude to my organization guide Mr. Keyur Trivedi and Mr. Chirag Patel GCMMF for his scholastic guidance, constant encouragement and pertinent suggestions in planning and execution of this project. I feel privilege in expressing my deepest sense of gratitude and humble indebtedness towards my Major Guide Dr. Sanjiv Kumar Assistant professor, International Agribusiness Management Institute, AAU, Anand for his steadfast inspiration, expert guidance, painstaking effort and keen abiding interest during the entire project work. With profound respect, I extend my gratitude to Dr. R. V. Vyas, Principal and Dean, International Agribusiness Management Institute, AAU, Anand for providing necessary facilities during project work. I sincerely acknowledge the cooperation and help rendered by my faculties, Dr. Shakti Ranjan Panigrahy, Dr. Ritambhara Singh, for their valuable suggestion and extreme support during the project. I am very thankful for the generous help received from faculty and staff members of IABMI, for their kind co-operation and generous help during my project work. Many thanks to the friends who helped me throughout the entire process, Forum, Komal, Ashish and others. To my friends elsewhere, thank you for your continuous moral support.

6 Finally, I am forever indebted to my parents and sister for their love, care, understanding, endless patience and constant encouragement when it was most required.. Date: Place: Anand Chudasama Maitriben Jayendrasinh

7 MARKET ANALYSIS & IMPACT OF PROMOTIONAL ACTIVITIES FOR AMUL PRO IN ANAND & VIDHYANAGAR CITY Name of student Chudasama Maitri Reg. No. ( ) Advisor Dr. Sanjiv Kumar Assistant Professor INTERNATIONAL AGRI-BUSINESS MANAGEMENT INSTITUTE ANAND AGRICULTURAL UNIVERSITY ANAND ABSTRACT Gujarat Cooperative Milk Marketing Federation (Amul), India's largest food products marketing organization launched Amul PRO in April It s a new whey protein malt beverage brand of Amul fortified with 27 vital nutrients, whey protein and DHA. It is targeted to children between the age group of 2 to 15 years, the period which signifies the growth phase of a child. However, given the nutritive value of the product, consumers across all age groups are expected to be its users. As compared with its competing brands like Bournvita, Complan and Horlicks, it ranks higher in key nutrients like Proteins, Calcium, Potassium, Vitamin A, Vitamin D and Vitamin B2. It is priced at over 20% discount to competitor brands with similar ingredients, making nutrition more affordable to consumers. The launch of product was supported by advertising campaign which included Television, print media, and other activities. The study was undertaken in GCMMF, the Apex body of milk cooperative organization in Gujarat to fulfill the objectives of studying distribution channel of Amul Pro with respect to time, cost and quantity and problems encountered by channel members namely retailers of general stores, medical store and Amul parlors; distributors of Amul Pro and customers at the place of promotional activity. The impact of promotional activities of Amul Pro at pre-specified area by company in Anand and Vidhyanagar city was also studied. i

8 In order to achieve these objectives, survey was conducted for primary data collection in which 90 different retailers of general stores, medical stores, and Amul parlors and 80 customers at the time of promotional activities were interviewed personally using convenient sampling method. All the four distributors of Amul Pro in Anand and Vidhyanagar city were also interviewed. Data collected were analyzed using descriptive statistics. The study revealed that out of the total sampled retailers, 50% are of general store type, among which around three-fourth are aware about Amul Pro. Variation in procurement price of Amul Pro is found among the retailers. It varies from ` 120/- to ` 145/- per unit of 500 g. Amul Pro is not available at more than 54% of the retail points and these are even not interested to order it. Both credit and cash payment is prevalent among them. Credit period in credit payment is found upto 10 days. Ordering frequency ranges from 1-4 times per month and quantity per order in majority of the cases is 1-5 boxes, each box having 6 units. Retailers prefer to order jar of 500 g and then small pouch of 50 g. With an intention to persuade the retailers for placing order for Amul Pro at the time of survey, when asked whether interested to order Amul Pro, 58% and 38% of the sampled general store and medical store respectively did not show any interest. From around half of the retail points Bournvita is sold more than any other milk additive. The main reason for more sales of Bournvita from retailer view point is good brand name. There are four distributors in all in Anand- Vidhyanagar city. Distributors get Amul Pro at ` or ` from company. Picking and delivering of the product is made by tempo. For distribution operation, 3 people- driver, labor and sales man are engaged for performing loading/unloading activity, cleaning, and collecting money from retailers, with salary of ` , ` , ` 4500 respectively. Distributors (3) have their own cold storage for scientific storage of Amul Pro but one has on hire ` per month as rent. All ii

9 distributors order Amul Pro after every 3 days. The distributors who cover more area order 30 to 40 boxes in one order. The problems faced by the retailers are found to be very less demand, irregular delivery, threat from the Amul parlour, replacement problem, less margin, short shelf life and other Amul products problems. The main problems of distributors are replacement and late payment from retailers; and replacement and payment problem from the company; and lack of promotional activities and proper marketing strategy from the company. Almost all the surveyed customers have been using milk additive of one or other brand. 49% of them came to know about Amul Pro through personal selling by standy. 54% purchased it at time of promotional activities. Many purchased small pouches of 50 g. 47% of them bought Amul Pro for the first time during promotional activity of the study. Purchase price of Amul Pro for majority of the sampled customers varies from ` 141/- to ` 160/-. The reasons for purchase are found to be trial use, good nutritional value, taste, liked by children. iii

10 LIST OF CONTENTS SR. NO. CHAPTER PAGE NO. ABSTRACT i LIST OF CONTENTS iv LIST OF TABLES vii LIST OF FIGURE viii LIST OF ABBREVIATION X 1 INTRODUCTION Industry Profile The World Dairy Scenario Dairy Industry: introduction Indian Dairy Industry A Profile Importance of dairy industry in India Dairy industry in Gujarat Co- operative Union The organization Introduction of Amul and History GCMMF Overview Operations of GCMMF Export Vision Mission Product Introduction - Amul Pro Objective of the study 24 2 REVIEW OF LITURATURE 25 3 METHODOLOGY 31 4 RESULTS AND ANALYSIS 33 iv

11 4.1 Analysis of Distribution channel with respect to time, cost and quantity Distribution channel members of Amul Pro Type of retail shop Awareness about Amul Pro Price of Amul Pro for Retailers Mode of payment Time interval of Credit payment Frequency of order of Amul Pro Quantity order from distributor Order of Amul Pro in different quantity by Retailers Readiness of retailer for ordering Amul Pro Brand wise sale in different retail formats Reasons for more sales of different milk 40 additives Awareness about Amul Pro in customers Source of purchase of Amul Pro Purchase frequency of Amul Pro Alternatives of Amul Pro Price of Amul Pro for customers Reasons for purchasing Amul Pro by customers Analysis of distributors Problems encountered by distribution channel members Problems faced by Retailers Problems of Distributors from retailers Problems of Distributors from Company 47 v

12 4.2.4 Problems of customers Impact of promotional activities for Amul Pro Readiness to do Promotional Activity at retail 49 shop by retailers Retailers view on effect of promotional media 49 towards sale Retailers view on impact of promotional media Socio-Economic profile of customers Customers view on impact of promotional 54 Media Purchase at time of promotional activity Packs purchase at time of promotion 55 5 SUMMARY AND CONCLUSION Major finding Conclusion 58 6 REFERENCES 61 7 ANNEXURES Xi vi

13 LIST OF TABLES Number Title Page Number Table 1.1 Status of GCMMF 17 Table Sales turnover of GCMMF from Table The major export products of Amul 21 Table Composition of Nutritional Value 24 Table Analysis of distributors 46 vii

14 LIST OF FIGURES SR. NO CAPTION PAGE NO world s Dairy product consumption level in FAO International dairy price Index ( =100) Amul model Anand pattern Distribution channel members of Amul Pro Type of retail shop Awareness about Amul Pro Price of Amul Pro for Retailers Mode of payment Time interval of Credit payment Frequency of order of Amul Pro Quantity order from distributor Order of Amul Pro in different quantity by Retailers Readiness of retailer for ordering Amul Pro Brand wise sale in different retail formats Reasons for more sales of different milk additives Awareness about Amul Pro in customers Source of purchase of Amul Pro Purchase frequency of Amul Pro Alternatives of Amul Pro Price of Amul Pro for customers Reasons for purchasing Amul Pro by customers Problems faced by Retailers Problems of customers 48 viii

15 4.3.1 Readiness to do Promotional Activity at retail shop by 49 retailers Retailers view on effect of promotional media towards 49 sale Retailers view on impact of promotional media Socio-Economic profile of customers Customers view on impact of promotional 54 Media Purchase at time of promotional activity Packs purchase at time of promotion 55 ix

16 LIST OF ABBRIVIATION GCMMF PPP MMT IDF Gujarat Cooperative Milk Marketing Federation Purchasing Power Parity Million Matric Tone International Dairy Federation FAO Food and Agriculture Organization WMP Whole Milk Powder SMP Skimmed Milk Powder MNC Multinational Company USD United State Dollar CAGR Compound Annual Growth Rate CY Current Year ASSOCHAM The Associated Chambers of Commerce and Industry of India AERB ASSOCHAM Economic Research Bureau FMCG Fast Moving Consumer Goods GDT Global Dairy Trade DHA Docosahexaenoic Acid x

17 1. INTRODUCTION According to economic survey of India ranks first in milk production, accounting for 17 percent of world production. During , milk production peaked at mt, thus becoming an important secondary source of income for 70 million rural households engaged in dairying and for 70 per cent of the workforce that comprised women. The average year-on-year growth rate of milk at 4.04 per cent vis-à-vis the world average of 2.2 per cent shows sustained growth in availability of milk and milk products for the growing population. The world population will reach 9.5 billion in next five decades, ensuring adequate availability of food will be the biggest challenge facing our human race. In fact, due to the growing rate of urbanization across the world, urban population will be much higher than rural population in another fifty years, implying that there will be fewer hands to produce foods and more hungry mouths to consume food. With rising income levels across the world, per-capita calorie consumption is also increasing in all regions, with the sharpest rise projected to take place in developing countries. In the coming decades, growth in global food demand will be led by Asia, especially India and China. As income level grows, consumption of fat and protein has increased and there is distinct reduction in dependence on cereals for carbohydrates. It is therefore no surprise that the highest increase in dairy consumption during the last 20 years is also from developing countries. In the coming decades, we anticipate high global growth in demand for dairy products. In the next fifty years, population of India will cross 170 crores and our economy in PPP terms will be the second largest in the world, after China. India will be poised to take full advantage of its demographic dividend as proportion of working age population in our total population will exceed that of China by a wide margin. In order to realize this demographic dividend, we must ensure adequate availability of food to feed our 1

18 growing population. In another five decades, 56% of Indian population will reside in urban areas and only 44% in rural areas. This clearly indicates that India will also face the problem of mouths to feed growing much faster than hands to produce. Food still accounts for highest share of monthly household expenditure in India at 31%. With number of urban Indian households growing by more than three times in the next 50 years, we anticipate sharp rise in demand for branded, packaged, nutritious food products which are easily available and offer value-for-money as well as convenience. Affordability and easy availability, along with wellness, convenience and taste will define food consumption trends in coming years. Within food, milk and dairy products account for the highest share of expenditure (after cereals) for an average Indian household. Milk and dairying is one critical dimension of our nation s food security, in which India has managed to achieve self-sufficiency because of Amul cooperative movement and the Operation Flood Program. Today, apart from being the largest milk producing nation in the world, India is also the largest milk consuming country in the world. Milk is now the largest agricultural crop in India in value terms, with annual farm-gate value of ` 3.4 lakh crores. India have higher per capita milk availability, the life expectancy of Indians has doubled from just 32 years in 1947 to 67.3 years today. Rising income-levels and rapid urbanization will ensure that per-capita demand for milk which is 300g per day currently will increase to at least 800g per day in the next five decades, which is equal to that of developed countries. Combined with increasing population, this implies that total demand for milk and dairy products in India, which is approximately 139 MMTs per annum currently, will increase almost four times, by the year This is indeed a golden phase for us. While demand for high quality milk and dairy products from reputed brands is rising sharply, at the same time, our milk procurement has increased substantially, in last few years. 2

19 1.1 Industry Profile The World Dairy Scenario The International Dairy Federation (IDF) released this World dairy Situation in May 1, 2014 report. This report highlights global trend in milk production, processing and world trade in dairy products and brings strategic insights about the growing and dynamic world dairy market for use by producers of farm milk, product manufacturers and end user of dairy products around the globe. World milk production in 2013 was 1.9 percent to 782 million tonnes a similar rate to that in previous years. Asia and Latin America and the Caribbean are expected to account for most of the increase, with only limited growth elsewhere. World trade in dairy products was decreased by 0.9 percent in 2013 to 53.0 million tonnes of milk equivalent amid supply limitations. This compares with an annual average increase of 7 percent in the previous four years. The two principal exporters, New Zealand and the European Union, which together account for 55 percent of world trade, and also Australia, are all anticipated to see a fall in sales. To a degree, that was the compensated for by growth in exports by the United States, India and Belarus. In 2013, additional demand was expected from China, the Islamic Republic of Iran, Singapore and Pakistan. Elsewhere in Asia, Saudi Arabia, the United Arab Emirates, Indonesia, Japan, the Philippines, Malaysia, Vietnam and Thailand remain important markets, but the level of their imports may not change markedly and in some cases could decrease. Elevated international prices were reduced imports by Africa as a whole. The principal importers that may be affected include Algeria, Nigeria, Libya, Morocco and South Africa. A number of significant milk powder importing countries in Latin America and the Caribbean, including Venezuela, Cuba, Colombia, Brazil and Peru, may also see purchases constrained by high 3

20 prices. Finally, imports by the Russian Federation are anticipated to increase, stimulated by strong demand for butter and SMP. As per world dairy situation report 2013 per capita milk consumption in 2013 was 109 kg/capita. The highest per capita consumption in USA was 275 kg and followed by Canada and Russia. Brazil, Algeria, Mexico, India and Iran respectively consumed 178kg, 147kg, 116kg, 109kg and 107kg per capita consumption and China and Indonesia were included in very low consumed dairy product country which were only 41kg and 13kg only. Fig : world s Dairy product consumption level in 2013 Source: World Dairy Situation report 2013 (CNIEL / IDF, FAO Food Outlook, PRB) Internationally, dairy product prices have fallen back somewhat from their peak in April, but still remain at elevated levels, substantially above a year earlier. The main contributing factor is the limited availability of produce for export. 4

21 The FAO Dairy Price Index stood at 252 points in October, 25 percent above the same month in For the main dairy commodities, the change between the same periods has been: whole milk powder (WMP), up USD 1153 per tonne or 44% skimmed milk powder (SMP), up USD 906 per tonne, or 26 %; butter, up USD 1166 per tonne, or 32 %; and cheddar cheese, up USD 500 per tonne or 13 % With the Index currently hovering around the 250 mark, as New Zealand recovers from the previous season, dairy prices are anticipated to move lower - in particular for WMP and SMP, which were most affected by the spike in the early months of the year. This latter event illustrates the extent to which the international market is exposed to sudden changes in milk production and availability of milk products, in particular, as publicly financed inventories are at minimal levels in the EU and the United States, and almost non-existent elsewhere. Fig :FAO International dairy price Index ( =100) Source Food Outlook November

22 1.1.2 Dairy Industry: introduction The highest milk producer in the entire globe India boasts of that status. India is otherwise known as the Oyster of the global dairy industry, with opportunities galore to the entrepreneurs globally. Anyone might want to capitalize on the largest and fastest growing milk and milk products' market. The dairy industry in India has been witnessing rapid growth. The liberalized economy provides more opportunities for MNCs and foreign investors to release the full potential of this industry. The main aim of Indian dairy industry is only to better manage the national resources to enhance milk production and upgrade milk processing using innovative technologies. India ranks first among the world s milk producing nations, achieving an annual output of million tonnes of milk during the year as compared to million tonnes in recording a growth of 3.5%.The anticipated milk production in the country for the year is about 138 million tonnes. This represents a sustained growth in the availability of milk and milk products for growing population Indian Dairy Industry A Profile The exciting dimension of India dairying is emergence of the organized sector as a force of growing significance. The share of milk and milk products is 7.6 percent of consumer expenditure in rural areas as compared to 6.9 percent for urban areas. Of the milk produced, 40 percent is used or consumed on-farm, and 60% is sold. According to (Rabobank, 2013) report, India s formal dairy market size is USD 10 billion and it is expected to grow at a CAGR of percent. In 2014 fluid milk production at a record million tons, approximately 4.5 percent more than CY 2013 on the assumptions of a normal monsoon, increased demand for milk and dairy products and rising consumer income. CY 2013 fluid milk production has been marginally decreased and estimated at million 6

23 tons. But under the changing market conditions the dairy co-operatives will have to go in for more processed and value added products, which command a higher price in the market Importance of dairy industry in India Dairying has become an important secondary source of income for millions of rural families and has assumed the most important role in providing employment and income generating opportunities particularly for women and marginal farmers. The per capita availability of milk has reached a level of grams per day during the year , which is more than the world average of 294 grams per day. Most of the milk in the Country is produced by small, marginal farmers and landless laborers. About 15.1 million farmers have been brought under the territory of 1, 55,634 village level dairy corporative societies up to March The cooperative milk unions have procured an average of 32.8million kg of milk per day during the year as compared to 28.7 million kg in the previous year recording a growth of 14.3%.The sale of liquid milk by cooperative sector has reached 23.7 million liter per day during the year registering a growth of 3.7% over the previous year Dairy industry in Gujarat Gujarat is one of the states of India which contributes the most amount of milk in dairy industry from long time. Even dairy industry was first started in Gujarat itself and this happened before time of independence. So on the basis of this we can say that Gujarat is most contributor state in India for dairy Industry. According to The Associated Chambers of Commerce and Industry of India (ASSOCHAM) report on May 02, 2014, with an annual dairy output worth over ` 12,500 crore, Gujarat has acquired highest share of about 21% in terms of 7

24 total dairy output worth over ` 60,000 crore across top 20 states in India. With 12% share, Gujarat has ranked 3 rd terms of generating direct employment in the dairy sector. Besides, the state is ranked 4 th with a share of about 7.5% in 1493 dairy factories across India, noted a study titled Unlocking Growth of Potential of Indian Dairy Industry, In terms of milk production, Gujarat is ranked 5 th with about 8 % share across India in total milk production of over 120 MT. Besides, Gujarat has recorded 5 th highest growth rate of about 24% in milk production which is above the all-india growth rate of about 19%, highlighted the study prepared by the ASSOCHAM Economic Research Bureau (AERB). In terms of per-capita milk availability, the state has ranked 4 th and the state has clocked a growth rate of about 17% in this regard which is well above all-india growth rate of 12%. Andhra Pradesh (AP) has recorded highest growth in terms of both milk production and per-capita milk availability thereby clocking a growth rate of over 41% and about 36% (approx.) during the five year period of , however the state ranked third in terms of milk production with over 1.1 million tons (MT) of milk produced annually. Apart from AP, the states of Rajasthan (28%), Kerala (24.8 %), Karnataka (24 %) and Gujarat (23.7%) are amid top five states in terms of clocking high growth in milk production. "Milk production across India has grown at a significant rate of about 19% during the aforesaid period with overall milk production crossing 121 MT mark as of but despite being the largest milk producer in the world, percapita milk availability in India at 252 grams falls below the global average of 279 grams per person per day," said Mr D.S. Rawat, national secretary general of ASSOCHAM while releasing the chamber s study. It is imperative for India s dairy industry to streamline its value chain processes and integrate the smallholder dairy producers into the processing value chain in order to improve the overall performance of the industry, more so as they possess inherent strengths like low production costs, lower liabilities and limited liquidity risk, 8

25 said Mr Rawat. "However, lack of knowledge and technical know-how, poor access to support services, limited access to credit and poor milk quality together limit the ability of smallholder dairy producers to take advantage of market opportunities." New Zealand (9773 gram), Ireland (3260 gram) and Denmark (2411 gram) are stop three countries in terms of per-capita milk availability. Growing at a compounded annual growth rate (CAGR) of over 4 per cent, milk production in India is expected to rise to about 177 MT by and that would help in meeting the projected demand of 150 MT by that has been envisaged in National Dairy Plan Phase-1, said Mr Rawat. "The increase in the income level of an average Indian is being accompanied by a change in the food basket as the monthly per-capita consumption expenditure on milk and milk products in both rural and urban areas have grown significantly at about 92% and 72% respectively. Uttar Pradesh (UP) commands highest share of over 17 % in total milk production followed by Rajasthan (11 % share), Andhra Pradesh (9 %), Punjab (about 8 %) and Gujarat (about 8%) which are amid top five states with a combined share of over 53%. Punjab has recorded highest per-capita milk availability of 980 grams as per latest available data followed by Haryana 800 g), Rajasthan (572 g), Gujarat (506 g) and Himachal Pradesh (461 gm). In year While, Andhra Pradesh has recorded highest growth rate of about 36 % in terms of improvement seen in per-capita milk availability followed by Kerala (21 % approx.), Rajasthan (20% approx.), Karnataka (19%) and Gujarat (17%approx.) Concentration of milk production in some pockets together with high cost of transportation has led to rising disparity amid states in terms of per-capita milk availability, noted the ASSOCHAM study. 9

26 There is an urgent need to build up strategies to increase competitiveness in all segments of dairy chain, input supply, milk production, processing, distribution and retailing, recommended the ASSOCHAM study. For promotion of dairy sector in India, emphasis now needs to be more on how to involve and encourage the village population into proactively adopting dairy industry as a viable alternative to the agricultural activity. Promoting dairy entrepreneurship, strengthening economic viability of dairy farms, increasing the link between rural production areas and urban markets and promotion of small quantity packaging to meet the needs of poor are certain key areas highlighted by the ASSOCHAM study with a view to formulate a longterm growth strategy for the dairy sector Co-Operative Union Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice. The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. Moreover, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. Recently the Indian cooperative movement got a much needed facelift. With competition snapping at its heels, the sector which has been governed by arcane laws until the recent past will see a special provision inserted in the companies Act, All the cooperative unions will be re- christened cooperative companies; they will come under the purview of the registrar of companies, instead of the registrar of cooperatives. Dairy cooperatives account for the major share of processed liquid milk marketed in 10

27 the country. Milk is processed and marketed by 170 milk producer s cooperative unions, which federate into 15 state co-operative milk marketing federations. The dairy board's programs and activities seek to strengthen the functioning of dairy co- operatives, as producer-owned and controlled organizations. NDDB supports the development of dairy co-operatives by providing them financial assistance and technical expertise, ensuring a better future for India's farmers. Over the years, brands created by cooperatives have become synonymous with quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan).Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence. Some of the major dairy cooperative federations include:- Andhra Pradesh Dairy Development Co-operative Federation Ltd (APDDCF) Bihar State Co-operative Milk Producers Federation Ltd (COMPFED) Gujarat co-operative Milk Marketing Federation Ltd (GCMMF) Haryana Dairy Development Cooperative Federation Ltd. (HDDCF) Himachal Pradesh State Cooperative Milk Producers Federation Ltd (HPSCMPF) Karnataka Cooperative Milk Producers Federation Ltd (KMF) Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF) Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF) Maharashtra Rajya Sahkari Maryadit Dugdh Mahasangh (Mahasangh) Orissa State Cooperative Milk Producers Federation Ltd (OMFED) Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF) Punjab State Cooperative Milk Producers Federation Ltd (MILKFED) Rajasthan Cooperative Dairy Federation Ltd (RCDF) 11

28 Tamilnadu Cooperative Milk Producers Federation Ltd (TCMPF) 1.2The Organization Introduction of Amul and History The full form of AMUL is ANAND MILK UNION LIMITED that is the brand name of Kaira District Co-operative Milk Producers Union Ltd. for its product range since The brand name Amul means AMULYA and this word derived from Sanskrit word AMULYA means PRICELESS a quality control expert in Anand had suggested the brand name AMUL. AMUL is Asia s no. 1 and world s second number co-operative dairy. It has large market and dairy network in every state of India and across the India, like central Asian countries, Bangladesh, Thailand, Indonesia, Malaysia, Singapore, etc. It was started with 250 liters of milk and 2 societies and now, it produces 10 lakhs litters milk per day and has 1113 societies and more than 6 lakes farmer members. It produces milk and milk products. AMUL was started with little machinery and now all the production of AMUL are produced by latest and advanced machineries. AMUL completed 69 years and it will enter into 70 th year on 14 December India is a country that mainly deals in agriculture and cattle rearing from ancient times. So for the better prospect in India, nothing is more suitable than to have a dairy industry for which most of the people prefer. Over six decades ago the life of a farmer in Kaira was very much like that of farmers anywhere else in India. His income was derived almost entirely from seasonal crops. Many poor farmers faced starvation during off-seasons. Their income from milch buffaloes was undependable. The milk marketing system was controlled by contractors and middlemen. As milk is perishable, farmers were compelled to sell their milk 12

29 for whatever they were offered. Often they had to sell cream and ghee at a throwaway price. In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two village dairy co-operative societies and 247 liters of milk and is today better known as Amul Dairy. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed professionalism of Dr Verghese Kurien, who was entrusted the task of running the dairy from Then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should become the basis of a National Dairy Development policy. He understood that the success of Amul could be attributed to four important factors. The farmers owned the dairy, their elected representatives managed the village societies and the district union, they employed professionals to operate the dairy and manage its business. Most importantly, the co-operatives were sensitive to the needs of farmers and responsive to their demands. At his instance in 1965 the National Dairy Development Board was set up with the basic objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its Chairman and asked to replicate this model throughout the country. 13

30 Fig Amul Model The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level. 14

31 Fig Anand Pattern The Amul model has helped India to emerge as the largest milk producer in the world. More than 15 million milk producers pour their milk in 1, 44,500 dairy cooperative societies across the country. Their milk is processed in 184 District Co-operative Unions and marketed by 22 State Marketing Federations, ensuring a better life for millions. 15

32 1.2.2 GCMMF Overview Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. 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. Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest Organization in FMCG industry engaged in marketing of milk & milk products under the brand names of AMUL and SAGAR with an annual turnover exceeding 3.0 billion..its daily milk procurement is approx million lit per day from 17,025 village milk cooperative societies, 17 member unions covering 31 districts, and 3.23 million milk producer members. It operates through 53 Sales Offices and has a dealer network of dealers and 10 lakh retailers, one of the largest such networks in India. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc. GCMMF is a unique organization. It's a body created by Farmers, managed by competent professionals serving a very competitive and challenging consumer market. It is a true testimony of synergistic national development through the practice of modern management methods. GCMMF is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. Many of our products are available in USA, Gulf Countries, Singapore, The Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years. For the year , GCMMF has been awarded "Golden Trophy" for its outstanding export performance and contribution in dairy products sector by APEDA. In , GCMMF took giant strides in expanding its presence in International markets. Amul s presence on Global Dairy Trade (GDT) platform in which only the top six dairy 16

33 players of the world sell their products, has earned respect and recognition across the world. By selling milk powders on GDT, GCMMF could not only realize better prices as per market demand but it also firmly established Amul in the league of top dairy players in world trade. The Amul brand is not only a product, but also a movement. It is in one way, the representation of the economic freedom of farmers. It has given farmers the courage to dream. To hope. To live. Table Status of GCMMF Members 17 District Cooperative Milk Producers' Unions No. of Producer Members 3.23 Million No. of Village Societies 17,025 Total Milk handling capacity per day 23.2 Million litres per day Milk Collection (Total ) 4.79 billion litres Milk collection (Daily Average million litres 14) Cattle feed manufacturing Capacity 6190 Mts. per day Sales Turnover -( ) Rs Crores (US $ 3.0 Billion) Zonal offices Ahmedabad, Mumbai, Guwahati, Chennai, New Delhi 17

34 Our Member Unions 1. Kaira District Cooperative Milk Producers' Union Ltd., Anand 2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana 3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar 4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur 5. Surat District Cooperative Milk Producers' Union Ltd., Surat 6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara 7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra 8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad 9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch 10. Ahmedabad District Cooperative Milk Producers' Union Ltd., Ahmedabad 11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot 12. Gandhinagar District Cooperative Milk Producers' Union Ltd., Gandhinagar 13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar Operations of GCMMF Milk procurement Total milk procurement by our member unions during the year averaged lakh kilograms (13.57 million kg) per day, representing growth of 3.6 per cent over lakh kilograms (13.10 million kg) per day achieved during The highest procurement was recorded during February 2014 at lakh kilograms (16.94 million kg) per day. 18

35 Sales During the year, sales of our Federation registered an highest ever, record growth in sales of per cent to reach Rs crores (Rs billion). Last year, our turnover was Rs crores (Rs billion). Distribution network GCMMF has a very unique model of distributing its ambient, chilled, frozen and fresh products range through four distribution highways. This unique feature of managing distribution through four highways keeps us ahead of competition in servicing the market. With the objective of managing the inbuilt complexity of four distribution highways in the same markets, we need to be as close to the market as we can. Working on these lines, we have opened five new branches during the year. We have also been expanding our distribution network by adding new distributors, every year. Moving ahead on our objective to provide exposure to our channel partners about the co-operative institutions with whom they are associated, we had arranged for visit of our distributors and their salesmen as well as Amul parlour franchisees to Anand. 19

36 1.2.4Export Table Sales turnover of GCMMF from Sales Turnover Rs (million) USD (in million) AMUL has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African nations. Other potential markets being considered include Sri Lanka. Table Major Exporting Products Amul UHT Milk (Long Life) Amul Slim and Trim Milk Nutramul Brown Beverage Amul Taaza Full Cream Milk Amul Kool Beverages Amul Shrikhand Flavoured Milk Amul spray Consumer Packs Amul Gold Extra Cream Milk Amul Pure Ghee Amul Fresh Cream Amul Mithaee Gulab jamun Lassee Amul Ice Cream Butter Milk Amul Butte 20

37 Amul Cheese Amul Skimmed Milk Powder Bulk Packs Amul Malai Paneer Amul Full Cream Milk Powder Vision GCMMF will be an outstanding marketing organization, with specialization in marketing of food and dairy products both fresh and long life with customer focus and IT integrated. Then network would consist of over 100 of ices, 7500 stockiest covering at least every Taluka. Head quarter servicing nearly 10 lakh outlets with a turnover of `.10,000 Cr and serving several co-operatives. GCMMF shall also create markets for its products in neighboring countries Mission We at GCMMF endeavor to satisfy the taste and nutritional requirements of the customer of the world through excellence in the marketing by our committed team. Through cooperative networking, we are committed to offering quality product that provides best value for money. 1.3 Product Introduction - Amul Pro Gujarat Cooperative Milk Marketing Federation (Amul), India's largest food products marketing organization announced the launch of Amul PRO, its new Whey Protein Malt Beverage brand. Amul, with annual sales turnover of approx `12,000 crores, is the market leader in all dairy product categories. The launch of Amul PRO would be another big step forward in strengthening its Health and Nutrition portfolio. With this launch Amul plans to improve its presence in the ` 2500 crore Milk Food Drinks market. MD of GCMMF said that it is superior to other key Brown Health Drinks brands, not only in nutritive value but also in taste. Amul PRO is fortified with 27 vital nutrients, whey 21

38 protein and DHA. It is priced at over 20% discount to competitor brands with similar ingredients, making nutrition more affordable to consumers. The product would be introduced in an attractive glass cube jar, which is a first of its kind pack in the category and is sure to catch the attention of the consumers. Table 1.3.1: Composition of Nutritional value Composition Nutritional information Ingredients: Malt Extract, Sugar, Milk solids, Cocoa solids, Caramel, Vitamins, Minerals, Permitted emulsifiers (E322,E476), Raiding agent (E500(ii)), DHA and salt. Energy, kcal 392 *Production of red blood cells 244 Energy from Fat, kcal 19.8 Vitamin B9 (Folic Acid), mcg *Source of energy Fat, g 2.2 *For normal vision 935 Carbohydrate, g 85 Vitamin A, mcg *Keeps you mentally sharp, alert and Added Sugar, g 32.7 physically active 8.02 Dietary Fibre, g 0.68 Iron, mg *For growth and maintenance of body Protein, g 8 Iodine, mcg 137 *Boost immune and nervous system function Vitamin B1 (Thiamin), mg 0.75 *Development of bones & teeth 186 Vitamin B2 (Riboflavin),mg 2.51 Calcium, mg Vitamin B3 (Niacin), mg 5.21 Phosphorus, mg 175 Vitamin B5 (Pantothenic acid), mg 5.6 Vitamin D, mcg 6.89 *Fight infections and protects body Vitamin B6 (Pyridoxine), mg 7.1 cells from damage Vitamin C, mg 39.2 Vitamin B12 (Cynacobalamin), mcg 9.73 Vitamin E, mg 3.7 Vitamin B7 (Biotin), mcg 30 Manganese, mg 0.49 Copper, mg 0.44 *Body fluid maintenance Sodium, mg 173 Selenium, mcg 32 Potassium, mg 540 Zinc, mg 2.2 Magnesium, mg 21 *Development of Brain DHA, mg 3.0 Shelf Life Storage condition Amul PRO is best before 12 months from the date of manufacture when stored in acool,dry and hygenic place. Ambient 22

39 Product Features Amul PRO is a malt based milk additive, which not only enhances milk s nutritive value but also makes milk a very tasty drink for people of all ages, especially kids, who need milk and nutrition for healthy growth. It comes from the House of Amul, the brand which is known all over for providing quality products at value for money price. Key product attributes of Amul PRO are as follows: Whey Protein: Muscle building & Immunity Whey Protein is the purest and most essential form of protein. It is easy to digest and helps muscle building and nurturing growth. Why Protein is often referred to as Fast Protein, provides quick nourishment to muscles, helping your child strengthening the immunity and stay healthy. DHA: Brain Development Docosahexaenoic Acid (DHA) is an essential fatty acid required for optimal development and function of the brain, eyes and central nervous system of a child. It plays an important role in enhancing your child s immunity by protecting it from allergies like Asthma. 27 Essential Nutrients: Complete Wellness Amul PRO contains 27 essential nutrients (proteins, vitamins and minerals) that help in boosting immune system enhance metabolism and nervous system functions and helps children be mentally sharp and physically agile. 23

40 Product Application It's a milk additive, which means it can be consumed by adding directly to milk. It is easy to make and tasty to drink and is suitable for people across age groups, particularly kids who require adequate nourishment for proper growth Amul PRO can be consumed with both hot as well as cold milk. 1.4 Objectives of the study To study distribution channel with respect to time, cost and quantity To study problems encountered by distribution members in study area To study impact of promotional activities for Amul Pro in study area. 24

41 2. REVIEW OF LITERATURE Sharma V.P. and Sharma Pritee (2002) has studied the issues of efficiency and global competitiveness of the Indian dairy sector in an open economy environment. It related to the dramatic increase in competition in the dairy sector under the influence of India's liberalization programs since 1991, the signing of the Uruguay Round Agreements in 1994, and the implementation of the World Trade Organization (WTO) agreements. It provided an overview of the WTO Agreement on Agriculture and its effects on the dairy sector. The Policy Analysis Matrix approach was used to measure the international competitiveness and indicators like the domestic resource cost ratio were computed. The findings of the study indicated that the Indian dairy industry (both production and processing sector) was technically highly efficient and the Indian dairy industry has achieved remarkable progress during the last three decades despite the restrictions on the imports and exports of dairy products. The major policy implication of the study was that the Indian dairy industry was globally competitive but must be protected from distorted and unfair trade competition from developed countries in a liberalized environment. The study revealed that the effects of commitments by developed countries to reduce tariffs, domestic support and export subsidies had been minimal and unless these countries significantly reduced the trade distorting supports to their dairy sector it was difficult for India to compete in the world market. Department of Animal husbandry, Dairying and Fisheries claimed that dairying has become an important secondary source of income for millions of rural families and has assumed the most important role in providing employment and income generating opportunities particularly for women and marginal farmers. The per capita availability of milk has reached a level of 25

42 296.5 grams per day during the year , which is more than the world average of 294 grams per day. Most of the milk in the Country is produced by small, marginal farmers and landless laborers. About 15.1 million farmers have been brought under the ambit of 1, 55,634 village level dairy corporative societies up to March The cooperative milk unions have procured an average of 32.8 million kg of milk per day during the year as compared to 28.7 million kg in the previous year recording a growth of 14.3%. The sale of liquid milk by cooperative sector has reached 23.7 million liters per day during the year registering a growth of 3.7% over the previous year. NDDB also started new schemes for overall development of dairy sector in Operation flood area. Rajasthan (28 %), Kerala (24.8 %), Karnataka (24 %) and Gujarat (23.7 %) are among the top five states in terms of achieving high growth in milk production. Mishra Mayank, (2014), said that on an average, from December 2009 to August 2013, the egg, meat, and fish group has recorded the highest inflation rate of %, followed by milk (11.78 %), fruit and vegetables (10.84 %), food grain (9.11 %), condiments and spices (7.08 %), and tea and coffee (6.14%). The likely price stabilization might be attributed to steep rise in production of milk in Europe and New Zealand. "Milk production is likely to go up by 30 % in Europe. And New Zealand, too, is likely to witness a similar increase in production. As result, prices of milk products have started falling in the global market. And domestic prices are higher than global prices, rendering exports unviable. The country exported dairy products worth ` 3, crore in , according to the ministry of commerce and industry data. With so much of export-bound dairy products available in the domestic market, prices of milk are likely to remain stable in the next few years. There is likely to be some respite from cost pressure too. "The price paid to farmers has seen an increase of 22 % in the last two years. 26

43 India Market Research Reports (2013), claimed that as the world s largest producer and consumer of milk products, India represents one of the world s most lucrative dairy markets. IMARC Group, one of the world s leading research and advisory firms, finds in its new report entitled Indian Dairy Market Report & Forecasts that driven by a strong growth in both urban and rural demands, the market for milk products in India is expected to surpass US$ 163 Billion by This study, an updated and far more extensive and analytical version of our popular 2011 study, provides and draws upon a comprehensive analysis of every major dairy segment in India. The study, which has been undertaken using both desk research and two waves of qualitative primary research, has analyzed three aspects of the Indian dairy market. The Indian dairy market into fourteen major segments and investigates the current and future opportunities in each of these segments. The second section provides an in-depth understanding of dairy consumption patterns among Indian consumers and the potential of value added dairy products. The third section investigates into the usage of natural coloration in dairy products and evaluates their current and future potential. Himabindu. T et al (2014), has examined that India is predominantly an agrarian economy with more than 75 per cent of its population living in villages and depending on agriculture and allied activities for their livelihood. Land and cattle have traditionally been the two basic income yielding assets of Indian farmers. The paper focused on strengths, weaknesses, opportunities and threats of Dairy industry. Dairy has a lot of potential to improve rural incomes, nutrition and women empowerment, and hence is a very critical area for investment. A well-developed industry will enable millions off farmers to capitalize on the emerging opportunities and make a significant impact on rural incomes. On the flip side, weak efforts towards dairy development also can have a significant but negative impact on the dairy industry. The growth rate has 27

44 been sluggish over the past few years. With an increase in demand on one hand and sluggish supply on the other, there is a likely shortfall in demand in the coming years. Motvani D. and Agrawal K (2012), has studied that over the last decade the health consciousness of consumers has become an important factor driving the agri-food market. Healthier food products have entered the global markets with force in the past years and rapidly gained market share. Various studies have concluded that better understanding of consumer perception of healthy foods and its determinants are key success factors for market orientation and development and for successfully negotiating market opportunities. The basic purpose of this research paper is to identify the influence of various factors on the buying decision of customers. Paper also attempts to determine the awareness level & loyalty status of consumers. To develop the conclusions exploratory & descriptive research designs are used. Primary data is collected with the help of questionnaire method & data is analyzed with the help of various statistical techniques. Conclusions of this paper help in clarifying the changing customer behavior in health food drink product industry Babariya Khushboo (2012), has examined as health drink Amul Pro is newly launched product, so to make the awareness among the customers of the product the different promotional activities are to be executed in the target areas of Ahmadabad city. It is used for the study for the analysis of the market and customers towards the product. It is important for the study of improvement for the new established market development and analyses the market strategy for the developed the new product and market expansion of the various product of AMUL milk product. On the basis of study, author concluded that the main thing is that Amul brand name has very good image in consumer s mind and they consider it as Pure & Good Product. As the nutrition level is more compared to their competitor brand so many customers are going with this 28

45 product. In comparison to Amul Pro, the other players such as Bournvita, Boost and company provide a better availability and give competition to the hilt. Vora Yogin (2010), has evaluated that Bournvita always comes up with consumer promotion activities from time to time e.g. giving free gifts like plastic mugs, chess game or ludo etc. They also come up with the scheme of extra Bournvita for the same price. Paper says the ads had very cleverly promoted this drink for intelligent school kids through organizing the famous Bournvita Quiz Contest between different schools, which was a fantastic gimmick on television, which had caught on so well, that even adults would spare some time to watch it without fail. The Quiz Master Derek O Brian s advertising concept was so successful, that they even came out with the Bournvita General Knowledge Book (a mini encyclopedia). Cartoon Network and Cadbury India announced a one-year promotional license agreement. Bournvita positions itself as a healthy and nutritious drink for kids. The first promotion is the Toon Mug offer. A 500 gram Bournvita pack comes with a mug featuring some of the best loved Cartoon Network characters. Toon buffs get a choice of over six toon mugs including The Power puff Girls, The Flintstones, Scooby-Doo, Johnny Bravo, Dexter and Tom & Jerry. The Bournvita promotion is being supported by television commercials and in-store advertising. Adeolu B. Ayanwale et al. (2005) has studied that the proliferation of assorted brands of food drinks in the country has led to cut-throat competition for increased market share being witnessed among the operators in the food drink industry. When competition is keen and the consumers are faced with brand choice in the market, it becomes imperative for the manufacturers to understand the major factors that can attract the attention of buyers to his own brand. These then form the basis for marketing panning and action. This study, which was based on a survey of 315 randomly selected consumers of food drinks in Lagos, 29

46 Ibadan and Ile-Ife, cities in Southwestern Nigeria, examined the role played by advertising in influencing consumers preference for Bournvita, which is one of the leading food drinks in the Food and Beverage industry in Nigeria. Results revealed that both male and female and different age groups were equally influenced by advertising in their preference for the brand % of the consumers showed preference for Bournvita out of the various brands of the food drink studied. The major reasons advanced for the preference are its captivating advertising (42.62%) and rich quality (40.16%). TV advertising was most preferred by 71.43% of the respondents of all the media used in advertising Bournvita. The need for high preference to advertising is therefore highlighted for companies that want to not only retain their market but take positive steps to increase their market share. 30

47 3. METHODOLOGY The study entitled MARKET ANALYSIS & IMPACT OF PROMOTIONAL ACTIVITIES FOR AMUL PRO IN ANAND &VIDHYANAGAR CITY was carried out to achieving the objectives of the study it was needed to follow systematic and scientific approach to interpret the result of the study. Methodology consists the detail description of the study area, source of the data, sampling techniques, analytical tools and other information. 3.1 Area Urban area of Anand and Vidhyanagar were selected for study and Vetty Amul parlor, Harshil parlor, civil court for promotional activities decided by GCMMF. 3.2 Source of data: Primary as well as secondary data were collected to meet the objectives of the study Primary data Primary data were collected from retailers, distributors, customers from the study areas by survey and tool for asking questions was structured questionnaire Secondary data Secondary data were collected from websites, review papers, newspapers. 3.3 Research Design Survey Method Four distributor of that area: census survey General store, Medical store, and Amul parlor : (Sample Survey) convenience sampling. Customers: (Sample Survey) Convenient sampling 31

48 3.2.2 Sampling Unit To study the given objectives and to satisfy it, retailer of general stores, medical stores and Amul parlors; All four distributors of Amul Pro and customers of Amul products Sample size 90 retailers of general stores, medical stores, and Amul parlor 80 customers of Amul products Data collection tool Structured schedule was used for survey Analytical tool Graphical analysis by using statistical tools like (SPSS) and excel were used to satisfy the given objectives of the study. 3.4 Limitation of study This study is limited only for Anand and Vidhyanagar s selected Urban area The sample size is very small so the result cannot be applied to the population. Sometimes respondents may give biased opinion for the question. 32

49 4. RESULTS AND DISCUSSION This chapter deals with the findings of project entitled Market analysis & impact of promotional activities for Amul Pro in Anand & Vidhyanagar city which have been arrived at after subjecting the data to necessary tabulation and analysis keeping in view the objectives of study and research methodology. The study included urban area of Anand and Vidhyanagar. The survey work was completely Area specific. The results were analyzed mainly with respect to the response of respondents. Respondents were retailers of Amul Pro, distributor of Amul Pro and customers were interviewed and maximum constrains and response was tried to yield from them for analyzing market of Amul Pro and measure impact of promotional activities done. The response of respondents were observed and noted down. The results so observed are incorporated in this chapter. 4.1 Analysis of Distribution channel with respect to time, cost and quantity Distribution channel of Amul Pro Fig Distribution channel members of Amul Pro 33

50 4.1.2 Type of retail shop Amul parlor, 26.7 General store, 50.0 Medical store, 23.3 Fig Type of retailer shop Fig shows that there were total 90 retail shops and from that 50% shops were general store type which were located in different urban area of Anand and Vidhyanagar; 26.7 % were Amul parlor and 23.3% were medical stores Awareness about Amul Pro % 67% 96% 10 0 General Store Medical Store Amul parlor Fig Awareness about Amul Pro in retailers As Fig shows that from total 90 retailers 71% retailers of general store were aware about Amul Pro. 67% medical store s retailer had knowledge about Amul Pro and 96% Amul parlor retailers know about this product. 34

51 4.1.4 Price of Amul Pro for Retailers % % % % % Fig price of Amul Pro (in rupees) From fig depicts that only 14% of retailers got Amul Pro at ` from distributors. 17% got Amul Pro at ` ; 15% got at ` where from total 39% of retailers got at ` Mode of payment 100% 80% 60% 40% 20% 29% 71% 54% 46% No Yes 0% credit payment cash payment Fig Type of payment Fig illustrates that; credit and cash both payment systems were prevalent among retailers from them 71% preferred credit payment for ordering Amul Pro and 46% preferred cash payment for ordering Amul Pro 35

52 1.4.6 Time interval of Credit payment 10 days 10% No 20% 6 days 50% 3 days 20% Fig Time period of credit payment Above Fig indicates that 20% retailers did payment in 3 days; 66% retailers pay within 6 days; only 10% paid within 10 days and 20% of retailers did not prefer credit payment Frequency of order of Amul Pro 3-4 times 27% 1-2 times 73% Fig Frequency of order of Amul Pro Above Figure depicts that 73% of retailers ordered 1 to 2 times in one month and 27% of retailers ordered 3 to 4 times in a month 36

53 4.1.8 Quantity order from Distributor 6-10 boxes 5% 1-3 pieces 17% 1-5 boxes 48% 4-6 pieces 30% Fig Quantity of Amul Pro order by retailer Fig describes that; 17% ordered 1-3 pieces frequently; 30% ordered 4-6 pieces and 48% of retailers ordered 1-5 boxes and very less retailers ordered more than 5 boxes Order of Amul Pro in Different Quantity by Retailers 89% 87% 91% 94% No Yes 11% 13% 9% 6% Small pack Jar Refill Pouch Fig Order of Amul Pro in different quantity by Retailers Above figure describes that from total retail points only 11% (10) retailers wanted to order small pouch of 50 g at that time whereas 13% (12) retailers wanted to order Jar pack of 500 g and 9% (8) of retailers wanted to order refill pack 500 g and only 6% (5) of retailers want to order pouch of 500 g. which indicates that only 35 retail points out of 90 retailers wanted to order Amul Pro in different quantity at the time of study. 37

54 Readiness of retailers for ordering Amul Pro % % % 38% 13% 13% 29% 25% 7% 14% 9% 5% 4% 4% 2% 5% 9% 4% General store Medical store Amul parlor 4% Presently No, but want to order No first time order Not interested Keeping earlier not now Yes already in stock Yes want to order Yes and do not want to order Fig Readiness of retailers for ordering Amul Pro Fig depicts that 58% of retailers of general stores were not interested to order Amul Pro 13% retailers said that they kept earlier in their store but because of inadequate delivery system, less response from dealers and problems in other products of Amul they do not sell it now. 13% said that Amul pro was already in stock; 7% wanted to order and 7% did not want to order. 38% retailers of medical stores not interested to order Amul pro; 29% had already in stock and 14% retailers ordered for the first time and 9% kept it earlier in store but not now. In Amul parlor 50% had already in stock 25% want to order that time; 9% kept earlier but not now in shops because of problems in other products of Amul. 38

55 Brand wise Sale in different retail formats % 68% 6% 7% 59% 64% 56% 95% 19% 35% 29% 44% 5% Bournvita Complan Horlicks Boost AmulPro Medical store General store Amul parlor Fig Brand wise sale in different retail formats Fig describes that retailers of general stores said that Bournvita is main competitor of Amul Pro. 68% shopkeepers said that Bournvita was sold more because of the pre-specified reasons followed by Complan with 59%; Horlicks with 64%; 56% said that Boost was sold; no shopkeeper claimed that Amul Pro was sold at their shops. Similarly, 35% of the retailers of medical store said that Complan was competitor of Amul Pro followed by 19% of Bournvita; 29% said that Horlicks sold more, only 5% said that Amul Pro was sold. 95% retailers of Amul parlors said that Amul pro was sold more followed by Bournvita with 13%; 6% Complan; 7% Horlicks. 39

56 Reasons for more sales of different milk additives % 5% 11% 10% 56% 30% 14% 15% 21% 30% 43% 78% 46% 27% 11% 15% 22% 11% 18% 11% 9% Bournvita Complan Horlicks Boost AmulPro No reason Good promotional activity Good taste and good for health Good brand name Distribution channel is good Fig Reasons for more sales of different milk additives Fig depicts the survey of retailers. The main reason for around 56% of sales of Bournvita was good brand name followed by 17% claimed to have no specific reason for sales of Bournvita; Only 5% claimed that good promotional activities conducted by company using different media and marketing team has appropriate vision led to its increased sales. For Complan 30% claimed that it has a very good in consumer perception due to its promotional activities through different media also effective which encourage health conscious people to purchase it for their children and women; 15% claimed that taste of the milk additive was the reason for the sales Complan. For Horlicks 43% said that it was sold more because of good brand name and its distribution channel is working good delivery of product very fast and on time and representative of company gave good response to retailers in term of discounts, schemes and payment as well. For Boost 78% reasons were of good taste and good for health with good brand name. In case of Amul Pro 46% claimed that the reason for its sales was good promotional activities conducted by GCMMF in local area of Anand and Vidhyanagar, by means of promotional activities like standees, posters showing nutritional value chart of Amul Pro with comparison of other brands which helped to make customers as well as retailers aware about the brand. 27% claimed reason for sales was that taste of Amul pro and good and 40

57 healthy for children according to company s nutritional value chart and 18% said the reason was good brand name Awareness about Amul Pro in customers No 59% Yes 41% Fig Awareness about Amul Pro in customers Above figure indicates awareness about Amul Pro among respondents, 41% respondents were aware about Amul Pro Source of purchase of Amul Pro No purchase 29% Amul parlor 22% Super markets 10% Medical store 13% General store 26% Source of purchase of Amul Pro Above figure indicates that 26% of respondents used to purchase from general stores; 22% of respondents bought from Amul parlor; 13% bought it from medical store and only 10% bought from supermarkets like D mart and Big bazar; where 29% of respondents did not want to buy the product. 41

58 Purchase frequency of Amul Pro 34% 13% 47% First time Frequently No purchase 6% Regular customer Frequency of purchase Amul Pro Figure illustrates that 47% of respondents purchased Amul Pro for the first time at time of promotional activities as they were not aware about it before the promotions done. 6% respondents purchased product frequently and 34% of respondents were not convinced to purchase product and 13% customers were regular customers Alternative of Amul Pro Percentage (%) % 31.25% 38.75% 40% 27.5% 63.75% Bournvita Horlicks Complan Boost Amway Others Brand name Fig Alternatives of Amul Pro Figure Depicts that 64% respondents used Bournvita as alternative of Amul Pro. 39% of respondents used Horlicks; Complan was being used by 40% of respondents; 32% and 23% used Boost and Amway milk additives respectively and 28% used milk additives of other companies. From this analysis it can be seen that Bournvita is closest alternative of Amul Pro. 42

59 Price of Amul Pro for Customers % % % Price of Amul Pro for customers (in rupees) Above figure gives information that only 11% of respondents bought Amul Pro in ` 100 to 120, because they purchased from supermarket; 22% bought in 121 to 141 and maximum respondents bought Amul Pro in ` 141 to Reasons for purchasing Amul Pro by customers % Liked by Children 20% For trial 17.5% Good Nutritional value 12.5% Taste is good 33.75% No purchase Fig Reasons for purchasing Amul Pro by customers Figure illustrates that respondents have some reason for purchasing Amul Pro. 20% respondents purchase product for trial because they purchased it for the first time at time of promotional activity; 18% and 17% respondents purchased it because of nutritional value was found to be good than other competing milk 43

60 additives because Amul gave pamphlets with comparison of Amul Pro and Bournvita, so customers came to know about goodness of product and they were convinced to purchase it and respondents who came with their children purchased Amul Pro after the demo Analysis of distributors In study area there were main four distributor in Anand and Vidhyanagar city for Amul Pro. Table :4.1.1 Analysis of Distributors Sarvoday Santram Chandani Ratna Area under 100ft road, Ganj, Station Ganesh V.V Nagar distributor Kanjari road, AV crossing road, Boriavi road, Chikhodara Samarkha Gamdivad road, Amul Bhalej road Road Price Delivery of Tempo Tempo Tempo Tempo product Vehicles Own Own Own Own People for delivery Salary to driver Labor Sales man Unloading at shop Labor Labor Driver Driver 44

61 Cleaning Labor Labor Diver Driver Arrange Labor/driver Labor/driver Driver Driver Amul Pro at shop Scientific storage Cold storage Cold storage is own Cold storage is own Cold storage is own facility On Hire Rent of cold storage Time period 3 days 3 days 3 days 3 days between orders Quantity of order 1-2 boxes 5-10 boxes boxes boxes 45

62 4.2 Problem encountered by distribution channel members Problems faced by retailers % 23% 21% 14% 16% 21% 71% 19% Fig Problems encountered by Retailers Fig depicts that the major problem face by retailers of medical store and general store are that they avoided to keep Amul Pro because Amul parlors were considered to be their competitors. 84% had replacement problems in Amul Pro as well as other products of Amul. Customers had complaints about expiry date and damage but company did not respond to them. 79% said that margin was very less from distributor; 77% told that delivery of product was inadequate, dealers are not deliver product regularly and proper; 71% had problems of short shelf life of product because the company supplied the product to the retailer later from its manufacturing date so if the product was not sold in time, retailer had to bear that cost. 81% have problem that retailers hesitate to keep Amul Pro because problems encountered in other products of Amul like milk buttermilk 46

63 etc. 52% said that demand of product was very less because product was new and marketing of product was not proper and also lacked promotional activities Problems of Distributors from retailers Main problem for distributors were payment from retailers being very late. Distributors have to do the payment to the company and only then company sends ordered quantity to the distributor. On the other hand, retailers take 6 to 7 days for payment for very small quantity of product to the distributors but the distributors can give only 3 days for payment to retailers on their own risk. Hence, this is big problem. Replacement demanded by retailers of Amul Pro was found to be another major problem especially in case of damaged or expired products Problems of Distributors from Company Problems encountered by distributors with company includes products being damaged when it is deliver in glass jars as also delivery being not on time. Distributors have to do payment first and only then the company delivers the product to distributors so money risk; promotion of product is very less as compared to other milk additives. Amul Pro does not have any individual advertisement on Television. According to distributor, marketing strategy is not working proper. Company should change packing from glass jars to plastic ones. 47

64 Problems of customers % Not liked by Children 26.25% No awareness 32.5% No reason 13.75% Not easily available 3.75% No good schemes 13.75% No good promotional activity 3.75% Strong smell and taste Problems of customers The figure indicates the reasons for not purchasing Amul Pro, the main reason found to be was people aware about the product because of less promotional activities and lack of marketing mix; 14% respondents gave reasons that Amul Pro was not easily available at general stores and medical stores and product have less promotional activities respectively; 7% respondents told that children did not like Amul Pro taste. 48

65 4.3 Impacts of promotional activities for Amul Pro Readiness to do Promotional Activity at retail shop by retailers Yes 21% No 79% Readiness to do Promotional Activity at retail shop Above figure depicts that at the time of data collection only 21% of retailers want to do promotional activity at their shop by standy Retailers view on effect of promotional media towards sales % 40% % 10 0 Pamphlets Posters Standy Fig Retailers view on effect of promotional media towards sales According to 44% of retailers said that pamphlets is good source of promotion with nutritional value chart and comparison with other product like pamphlet of Amul Pro is effective because customers as well as retailers become aware about product, its feature and quality so they get convinced to purchase product; 49

66 40% retailers told that posters at retail shop or banners were a good medium to promote the product. Only 27% agreed that promotion by standy worked Retailers view on impact of promotional media % % 18% 16% 0 Increased sales Makes customers aware of nutritional value Retailer becomes aware and encourage customers to purchase No impact Fig Retailers view on impact of promotional media Figure illustrates that 18% retailers told that with the help of promotional activity sales could increase and customer came to know about nutritional value and purchased it. 16% told that after promotional activities which conducted by company retailer came to know about product, its feature and wellness of product and they can able to convinced customers to buy product. 63% told that there is no impact of promotional activities it have very short term effect. 50

67 4.3.4 Socio Economic profile of customers FEMALE 31% MALE 69% Gender Above figure indicates that from total customers 69% respondents were male and 31% respondents were female. 19% 1% 4% 1% 4% % % above Age (in years) Figure Depicts that from respondents only 1% respondents were under 5-15 years; 4% were included into year age group; 34% of respondents were under age group and they gave very good response because they were interested to know about new products; 37% people came under age group because they have children so they gave good response. Only 19% came under years and very less respondents who were senior citizens because they have no child or they live alone. 51

68 Doctorate 6% Below SSC 4% SSC 1% HSC 11% Master 33% Graduation 45% Education Figure indicates that education also mattered in response where only 1% and 4% respondents who have completed SSC and below SSC respectively because they have less knowledge about nutritional value and its importance. 11% respondents completed HSC education and highest 45% respondents have completed graduation and they gave good response because they have little knowledge about nutrition value and were convinced by promotions to purchase it. 33% respondents have completed Masters and they are more conscious about health and nutritional components etc members 29% Single 4% 1-4 members 67% Family size Fig depicts that family size play vital role in because 4% were respondents single and they were students who live in hostel alone; 67% respondents have 1-4 members in their family who live in nuclear family and 52

69 they gave maximum response because they have children and 29% respondents have 5 to 10 family members. > % Students 5% % % Fig Income level Above figure gives information that from total respondents 5% were students who have no income source 24% respondents have income ` 10,000 to 20,000. And maximum respondents have monthly income ` 21,000-30,000 because of good income source they live better life style than others and conscious about health and only 22% respondents have income more than `30, 000 Student 5% Housewife 19% Business 22% Job 54% Occupation 53

70 Only 5% students gave response at time of promotional activities, 54% of the respondents had jobs; 22% were involved in business activities and 19% were housewives Customers view on impact of promotional media Personal selling 49% From retailer 10% Super markets 9% Newspaper 6% Pemphlets 14% Posters 12% Customers view on impact of promotional media Figure depicts that 10% and 9% respondents were aware about Amul Pro from retailers and supermarkets; 14% and 12% got knowledge about product from pamphlets and posters respectively and highest 49% of respondents came to know about product through personal selling by standy. 54