“SALES AND PROMOTION OF FRESH PRODUCTS IN

SELECTED AREAS OF NAGPUR”

SIP project report submitted in partial fulfillment of the requirements for the

PGDM Programme

By

Amar Deep Singh

2017132018

Company Supervisor: Mr. Kevin Arambhadiya

Faculty Guide: Dr. N Jadiyappa

Institute of Management and Technology, Nagpur

2017-2019

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 ACKNOWLEDGEMENTS

With immense pleasure, I would like to present this project report for Gujarat Co-operative
Milk Marketing Federation Ltd. It has been a meliorate experience for me to undergo my
summer internship at AMUL INDIA (GCMMF) Ltd. which would not have possible
without the invaluable assistance, support and guidance of people around me. I take this
opportunity to owe my thanks to all those involved in my training.

Firstly, I would like to thank Amul India (GCMMF) Ltd. for giving the opportunity to
complete my project in their organization. Secondly, I would like to thank my college,
Institute of Management and Technology (IMT), Nagpur for giving me such an opportunity.

I would like to thank my Faculty Mentor Dr. N Jadiyappa for his support, assistance and for
being a constant source of motivation.

I wish to express my deepest gratitude to my company guide Mr. Kevin Arambhadiya and
Mr. Mangesh Wasnik for helping me throughout the internship by their great experience in
industry. Their passion and commitment towards work constantly inspired me towards
fulfilling the objectives of the internship. I am grateful to them for dedicating their precious
time and extending all help possible from time to time to explain the nuances of the industry.

I would like to thank distributors, all retailers and Shayeree Bhaumik my partner throughout
the project for their patience and support.

A good project is never complete without comprehensive reporting. I am grateful to the

Professors, Administrative Staff, Students and other members of IMT NAGPUR for their
insights during the project phase. This provided a direction and structure to my analysis.

Lastly, I would like to give a special thanks to my parents. Without their love and blessings
this project would not have been a success.

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SUCCESSFUL COMPLETION CERTIFICATE

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 TABLE OF CONTENTS

S. No. Contents Page No.

1 Introduction 5

2 Objective of the study 9

3 Brief description of the concepts 10

4 Company analysis 13

5 Product portfolio 16

6 Tabulations and findings 18

7 Major activities during project 22

8 Summary 25

9 Recommendations 27

10 Limitations of the study 28

11 Scope for future improvements 29

12 Bibliography 30

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 INTRODUCTION

India is the largest producer of dairy products and also the largest consumer in the world.
India’s dairy industry value is 5.4 trillion, it has grown at a 15% CAGR in last 10 years. In
future dairy industry is expected to maintain at least 15% CAGR over next 10 years.Only
65% of milk which is produced is sold in the market, remaining 35% is consumed on farm
only.

ABOUT THE COMPANY

GCMMF (Gujarat Cooperative Milk Marketing Federation) founded on 14

December 1946 by Tribhuvandas Patel, based at Anand in the state of Gujarat is the largest
milk product marketing organization in India with 750 employees of marketing arm and
jointly owned by 3.6 million milk producers in Gujarat. Its annual turnover is US$ 4.1 billion
(2016-17).

AMUL has a dealer network of more than 10,000 dealers and more than 10 lakh retailers
which operates through 56 sales offices in India. It has become the largest food brand in India
and has even ventured in markets overseas. In more than 60 countries amul products are
available now.

Its product range comprises of milk, ghee, butter, lassi, spiced butter milk, cheese, ice-
creams, chocolates, paneer and other health beverages. Amul has also started producing
packed food like packed samosa and packed parathas for consumers.

The daily milk procurement is more than 18 million litres per day from approximate18,550
village milk cooperative societies, 17 member unions covering 33 districts.

It has an excellent classic distribution working channel which includes distributors, retailers
and consumers. It starts from the distributor who collects the milk from the State Co-
operative Milk Marketing Federation and then distributes milk products to the retailers to
make it available for the customers. It has its District Milk Co-operative union and State Co-
operative Milk Marketing Federation (SCMMF) office located in Nagpur. Vasudhara dairy is
the District Milk Cooperative Union here and it procures milk from three Village Dairy
Cooperatives (VDCS) near Nagpur. The 3 VDCS are : Dhulia VDCS, Umarkhed VDCS and

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Bhandara VDCS. Milk is processed over here and many products are manufactured and
packed here. Milk and various products manufactured here are shifted to SCMMF office for
its marketing.

Amul in Nagpur distributes their various products through 47 ADAs (Area Delivery Agents)
or distributors who work day and night in three segments of Amul products:

Fresh Products

Frozen Products

Dairy Products

About the project – During my summer internship my project was mainly associated
with fresh products division of Amul. ‘Sales and promotion of fresh products’ like Milk,
Butter Milk, Spiced butter milk, Curd, Ice-cream in selected areas of Nagpur was the task
allotted to me and my partner. The main aim of internship was to increase the sales of fresh
products of amul in Nagpur. I studied the classic distribution working system that amul
follows to maintain their supply chain, including promotion and placement strategies which
amul use.

Amul allotted me 3 ADAs (Area Delivery Agents) who covered three major areas of Nagpur
region. These distributors helped me to understand the distribution and retail network under
their areas. ADAs firstly gave me brief detail about the type of consumers and their demand
and how to supply products to the consumers.

The 3 ADAs (Area Delivery Agents) with whom and for whom I worked were as follows:-

1) SANJAY MILK SALES –

No. of retailers – 186

Areas Covered - Ramdaspeth, Gandhinagar, Daga Layout, Ambazari Road, Sitabuldi,

Shankar Nagar, Dharampeth, Gokulpeth, RTO Chowk.

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2) PRAVEEN MILK SALES –

No. of retailers – 42

Areas Covered - Jaitala, Trimurti Nagar, Goodluck Society, Garge Nagar, Vasudha
Nagar, Keypoint, Hingana Road,Gorle layout,Subhash Nagar.

3) AJAY MILK SALES –

No. of retailers – 48

Areas Covered – Hilltop, Ramnagar, Maratoli, Ravi Nagar, Telankheri, Tilak Nagar,
Seva Nagar.

Details of week wise task performed:-

Week 1- The first week task was to track down all the retailers under 3 ADAs
(distributors).To understand the routes which amul distributors are using for supply of
products to retailers, and for this I daily used to got to the location from where my
distributors used to start their daily distributing process. I used to move along with the
delivery vehicle from one place to another where retailers used to exist foe whole
week.

Week 2 and 3 – I started visiting the tracked retailers to pitch them to increase sales
of amul products, I used to get information related to competitors performance and
their products. My task was to visit retailers daily , pitch for lesser selling amul
product retailers, take orders from them and convey daily orders to the respective
ADAs.

Week 4 and 5 – Started pitching retailers for Amul Shakti, Spiced Butter Milk(SBM)
and Plain Butter Milk(PBM) to increase sales of these products. We educated
customers about these products, their quality, benefits, prices and other schemes.
Promotion of SBM and PBM was another task. Banner placement was done at
retailers place in many areas to increase sales of products in those areas.

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Week 6,7 and 8 – 400g and 5kg Masti Dahi was launched in market and my task was
to do promotion of these products in market, inform retailers and consumers about
these and bring orders for the same. I started pitching restaurants and hotels for 5kg
dahi as they need dahi in bulk. Promotion was done through banner placement all
over the market. Umbrella activities were conducted in different areas just to educate
consumers and promote amul’s new launched and old products.

Fig 1. POP Material Promotional Banners.

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 OBJECTIVES OF THE STUDY

The main objectives of the project were:

1) To know the routes and your retailers to pitch them to increase sales of amul
products.

2) To increase sales of already selling SKUs and to convert new retailers for amul
products.

3) Promotion of Shakti, Spiced Butter Milk and Plain Butter Milk in market.

4) Encourage non-butter milk selling outlets, taking orders and placing them to
distributors. Increase no. of retailers selling Shakti Milk, SBM and PBM.

5) To place 400g and 5kg Masti Dahi in market and to do promotion for the same.
To target restaurants and hotels for 5kg dahi as they need it in bulk.

6) To increase the presence of brand in market.

7) To educate retailers and customers about the benefits of the amul products.

8) To do promotion through banners and pamphlet placement in market.

9) To reduce the problems in distribution level of the products, to look after the
complaints regarding amul products and informing distributors about the issue
related to same.

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 BRIEF DESCRIPTION OF THE CONCEPTS

 Product - Amul is having different types of fresh, frozen and dairy products for
customers. These products are manufactured by taking into consideration about the
health benefits of different age group people. Quality, taste and durability of all
products differ from each other.

Fig 2. Different products of amul available in market.

 Place - Putting the right product at right place and at right time is one of the major
task of any company. If this is done half of the work is already done. For this we did
promotion at right places where most consumers used to come, we did promotional
activities like umbrella activity to educate customers and retailers about amul
products. Proper positioning of the product is important.

 Promotion - Educating customers and bringing the product in eyes of the people is a
main task. During my project different pamphlets, banners and stickers were given to
us to put them in market so that better promotion of amul products can be done.
Promotional activities help to increase the sales of products. It also helps public to
know about the new products available in market.

Fig 3. Promotion of amul products during SIP

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 Price - The price of the products is fixed by the management of the co. and they have
different prices of the products according to the demand and the quality of the
product.

Fig 4. Price of amul products.

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 Sampling – It is a method in which sample piece of the products are provided to
customers and retailers so that they can have clear idea about the product. I used to
provide sample products to the new retailers to whom I use to target on daily basis.
On launch of new products doing sampling in market is important as it is a method of
promotion. I even did the umbrella activity to do sampling in market, to educate
customers about the products and its benefits.

 Schemes – It is a process by which companies attract more customers for their

products. Amul offers many such schemes, like recently with launch of new 400g
Masti Dahi in market they were having a scheme of 2 pieces free if you buy 15 pieces
of dahi. Schemes are mainly to increase demand of the products, specially of new
products.

 Shelf life of products – It is the length of time that a commodity can be stored and
used before becoming unfit for consumption. Amul products are having different shelf
life. SBM and PBM are having a shelf life of 3 days where as dahi is having shelf life
upto 5 days. If there is better shelf life of products the demand of the product is more.

 Segmentation, Targeting and Positioning (STP) – These are tools to align your
products with the right customers. Targeting a group of customers so that product can
be brought in their eyes. Growth of the product and profit is the main motive behind
this. During my project amul launched 5kg masti dahi in market. For this product
right customers are restaurants, hotels and hospitals, so we targeted them and took
orders from them as the consumption over here is in bulk.

 Pull Strategy – It means the demand of the product is pulling your operation towards
it. To generate interest of customers for products through proper promotion of
products. Amul provided me with POPs to place in market.

 Push Strategy – It means you’re creating your product/service and making it

available to customer. I was given task to push products to new retailers.

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 COMPANY ANALYSIS

Amul(Anand Milk Union Ltd.), founded on 14 December 1946 by Tribhuvandas Patel is an

Indian dairy cooperative based at Anand in Gujarat. It is managed by a cooperative body,
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF). It is jointly owned by 3.6
million milk producers in Gujarat.

Amul encouraged India’s White Revolution , which helped our country to become world’s
largest producer of milk and milk products. The white revolution was headed by
Tribhuvandas Patel with help of Sardar Patel and Verghese Kurien as a response to the
exploitation of marginal milk producers by traders or agents.

Amul has a dealer network of more than 10,000 dealers and more than 10 lakh retailers which
operates through 56 sales offices in India. It has become the largest food brand in India and
has even ventured in markets overseas. In more than 60 countries amul products are available
now. The daily milk procurement is more than 18 million litres per day from approximate
18,550 village milk cooperative societies, 17 member unions covering 33 districts.

Vision

“Liberate our famers from economic oppression and lead them to prosperity.”

Mission

 Mission is to manufacture world class products of outstanding qualities, providing

related services and solutions to our client while utilizing latest technologies, highest
business standard, work ethics Corporate Governance so that they can make every
customer SMILE.
 Turnover of Rs.27000 crores by the year 2020.
 To satisfy customers by providing them safe and nutritional food products for health
benefits.

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DISTRIBUTION NETWORK
Milk is collected from farmers and they are paid for their shares at village cooperative
societies where fat content is checked and then it is taken to the manufacturing unit
for processing. In manufacturing unit various products are produced and packed.
Then the products are delivered to distributors for further distribution to various
retailers under them. These retailers then provide various products to customers as per
their need.

Fig 5. Distribution Network of Amul.

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The Amul Model

It is a three tiered structure, dairy cooperative society at the village level which is federated
under the Milk Union at District level and which is under a federation of member unions at
the state level. It helps in establishment of direct linkage between milk producers and
consumers. It helps in eliminating the middlemen issue. It leads to proper, better and classic
distribution working system. This model has helped India to become world’s largest producer
of milk and milk products.

Fig 6. The Amul Model.

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 PRODUCT PORTFOLIO

The amul products are divided into three segments –

AMUL FRESH PRODUCTS

AMUL FROZEN PRODUCTS

AMUL DAIRY PRODUCTS

According to the last year report of amul, half of the revenue comes from Fresh

products division and rest comes from frozen plus dairy divisons.\

FRESH PRODUCTS – These products are to be produced and sold on daily basis,

as their shelf-life is between 2 to 5 days. These products are to be consumed

immediately for quality consumption. Fresh products include milk, curd, spiced butter

milk and plain butter milk.

Fig 7. Amul Fresh Products

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FROZEN PRODUCTS – Products like ice-cream, paneer and chocolates come

under this category. These products are kept under -18 degrees Celcius for

preservation and fresh.

Fig 8. Amul Frozen Products.

DAIRY PRODUCTS – These products are the one which can be stored for longer

period of time. They can be refrigated for long time because they have long

shelf-life. Ghee, cheese and shrikhand comes under this category.

Fig 9. Amul Dairy Products.

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 TABULATIONS AND FINDINGS

I was allotted 3 ADAs of selected areas with whom I worked throughout the project.

Amul is the market leader in Nagpur with overall supply of 70000 plus litres. Talking about

competitors, dinshaws is the second most preferred brand in Nagpur. Other brands such as

mother dairy, govardhan, reliance, haldiram, kissan and few others also exist in market.

As dinshaws being our main competitor, in was working in market to increase sale of amul

those areas where dinshaws was having a good grip, apart from this increasing sale of amul

products in all three areas under me was the task.

TOTAL NUMBER OF DISTRIBUTORS - 03

NAME OF THE DISTRIBUTOR TOTAL NUMBER OF RETAILERS

SANJAY SALES 186

PRAVIN SALES 42

AJAY SALES 48

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 ADA – SANJAY SALES

Shakti Dahi(200g) Dahi(400g) SBM 5Kg Dahi

Total outlets 186 186 186 186 186

Outlet visited 113 113 113 113 113

Already Selling 11 40 00 49 00

Newly added 02 17 30 28 07

Currently selling 12 53 25 70 04

(73 retailers were home retailers, to used to directly take products from distributor)

Data in comparison with dinshaws and other competitors in sanjay sales market-

Amul
Dinshaws
61%
Others

28%

11%

SALES

Fig 10. Sales in Sanjay Sales.

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 ADA - PRAVIN SALES

Shakti Dahi(200g) Dahi(400g) SBM 5kg Dahi

Total Outlets 42 42 42 42 42

Outlet Visited 40 40 40 40 40

Already Selling 04 25 00 30 00

Newly Added 00 07 15 15 05

Currently Selling 03 27 12 42 03

Data in comparison with dinshaws and other competitors in Pravin Sales market-

Amul
Dinshaws
43%
38% Others

19%

SALES

Fig 11. Sales in Pravin Milk.

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 ADA - AJAY SALES

Shakti Dahi(200g) Dahi(400g) SBM 5kg Dahi

Total Outlets 48 48 48 48 48

Outlet Visited 48 48 48 48 48

Already Selling 04 37 00 17 00

Newly Added 02 16 10 13 07

Currently Selling 04 40 08 25 05

Data in comparison with dinshaws and other competitors in Ajay Sales –

Amul
56% Dinshaws
Others

29%

15%

SALES

Fig 12. Sales in Ajay Sales.

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MAJOR ACTIVITIES PERFORMED DURING PROJECT

DAILY VISIT TO RETAILERS – Throughout the internship my first task was to visit
retailers daily, pitch them for products, keeping a touch with them so that any demand by
them is met on time. I visited more than 203 retailers during my project. Daily visit helped in
targeting wide numbers of retailers and great amount of orders were placed.

PLACEMENT OF NEWLY LAUNCHED 400g and 5kg MASTI DAHI IN MARKET –

During 4th week of my project amul launched Masti Dahi in two new packets. My task was to
penetrate market for these two products through visiting retailers, informing them about the
prices, quality and benefits of the product. For 5kg packet I pitched restaurants, hotels and
hospitals as they consume it in bulk and they will buy 5kg packet more as in comparison with
an individual customer. As summer was on its peak demand of dahi was more in market and
amul launched these products at right time.

UMBRELLA ACTIVITY – This is an activity by which awareness in customers about the

products is done directly by providing them samples. I and my partner used to put umbrella
and a table in those areas where footfall was more so that large number of customers are
educated by this. To increase the brand visibility in market umbrella activities are done.

Data related to UMBRELLA ACTIVITY

21/04/18 01/05/18 02/05/18 04/05/18 05/05/18 10/05/18

Date
No.of customers 21 15 17 11 08 08
interacted
SBM 06 05 00 05 04 04

PBM 05 04 00 00 00 00

400g Dahi 23 05 14 00 02 01

Shakti 03 05 04 00 00 00

Fig 13. Data related to Umbrella Activity.

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UMBRELLA ACTIVITY

Fig 14. Umbrella Activity.

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 PLACEMENT OF POP ( POINT OF PURCHASE)

For promotion of different fresh products POPs were given to place in market to convince
customers and retailers. It helps in proper promotion of products, it brings product details in
the eyes of customers, it educates them and ultimately customers reach to amul products.

I was given banners, pamphlets, amul stickers and balloons to be placed at all shops which
come under the ADAs allotted to me.

No. of POPs placed-

Sanjay Sales- 95

Ajay Sales- 45

Pravin Sales- 40

PICTURES RELATED TO POP ACTIVITY DURING PROJECT

Fig 15

Main task given to me was to promote Butter Milk, shakti and Masti Dahi in market through
placement of banners an all POPs. It was a successful activity as the demand of these
products increased in market, even few schemes were given during these activities.

In the last week, we were given stickers to be placed in cars,autos and buses so that large
number of public gets aware about the product in short time.

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 SUMMARY

My Summer Internship started on 2nd april 2018 and it came to end on 26th may 2018, it
began with tracking down the retailers and learning the distribution level of amul.
Penetration of shakti milk, spiced butter milk, plain butter milk and newly launched dahi
packets was the main task throughout the two month internship.

I learned the classical distribution network of amul. Knowledge about various products, their
shelf-life and which segment to be targeted for the products got available to me.

I learned about the fresh products and also frozen products.

I experienced the practical knowledge of FMCG sector and how their supply chain
management works in market. I experienced the importance of brand visibility.

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 CONCLUSION

Working in FMCG for 2 months was a great experience. I can coclude that I have learnt the

techniques of pitching customers into our product domain by providing them what they need.

Great experience on concepts like importance of branding, classical distribution level,

targeting, segmentation, positioning, product mix, types of consumers prevailing in market,

competitors existing in market.

The dairy industry has a great potential in our country and as amul is the largest producer

of milk and milk products, it is having a great job in its hand to flourish market

and other territories.

There are few points on which amul should pay attention to satisfy and have a grip on

more customers-

Better distribution system and fast delivery of products.

Increase shelf-life of the products .

Launch schemes for retailers as well as customers.

Control on pricing, as pricing is high on many products.

Quality should be maintained.

Promotion of products through different sources should be increased.

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 RECOMMENDATIONS

 Amul has to improve its ditribution network as there are customers who are leaving
this brand because of problems related to distribution.

 Margin for retailers and distributors should be increased as it is low .

 Pricing policies should be changed as they are charging much more for some products
and their competitors are offering same product at low price which will lead to loss of
customers to other brands.

 Products should be launched at right time so that it can penetrate market and reach
customers on time.

 Replacement of products whch amul does not consider is a negative point for their
business.

 Shelf-life of the products should be increased.

 Taste and quality of Butter Milk should be increased as there are many complaints
from retailers as well as customers.

 Lekage of packets should be looked after as retailers have to face the loss because of
no replacement policy.

 Aggressive promoting strategies should be applied in market.

 New schemes should be introduced , competitors are giving a latge no. of schemes
and offers to customers.

 Quality of crates should be increased as plastic is responsible for leakages in packets.

 Amul booths should be opened in localities like mother dairy is doing.

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 LIMITATIONS OF THE STUDY

Limitation of working only for fresh products. Knowledge of frozen

products and dairy products was limited.

Retailers does not use to give accurate information about the products of
the competitors and their schemes.

The time of internship was less, to know a market and its customers
properly atleast 4 to 6 months are needed.

In few areas local brands were having a grip so it was difficult to pitch
retailers in those areas.

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 SCOPE FOR FUTURE IMPROVEMENTS

 All products can’t be pitched to retailers at same time so there should be some gap
between the launch of new products.

Customer satisfaction should be the motive not satisfaction of firm.

Leakages of packets should be solved as it leads to waste of large quantity of milk on

daily basis and it is loss for both retailers and distributors.

Chocolates promotion is needed , it is almost about to vanish from market.

Cream level of milk should be increased.

Hoardings should be provided to the retailers so that visibility and availability of

brand at particular shop is easy.

Amul dairy booths should be opened in different areas so that availability of products
is smooth and fast. Mother dairy has opened lot of booths all over nagpur which is
increasing their sale.

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 BIBLIOGRAPHY

www.amul.com

www.philipkotler.com

http://www.amul.com/m/organisation

http://www.marketing91.com/marketing-strategy-amul

https://en.wikipedia.org/wiki/Amul

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