Doon BusinessSchool

LIVE PROJECT REPORT

OF

MARKETING MANAGEMENT

A Study On The Role Of Retailer With Special

Reference

Submitted To: - Submitted By:-

Dr. Ajay Kumar Tyagi Sir Deeksha Sharma

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PREFACE

The practical Study in MBA program develops the feeling of

awareness. It helps the management student to know about the
difficulties and challenges of the business world. Only
theoretical studies do not impart complete education. There must
be practical study to add meaning of education.

To fulfill this objective live project has become an integral part

of MBA Program. Us you have practical outlook of the
motivational aspects and witness the functions of organizational
productivity in real business, I have tried my level best to
present a project based on role of retailers in amul outlets.

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ACKNOWLEDGEMENT

With profound sense of gratitude and regard, I express my

sincere thanks to my guide and mentor Dr. Ajay kumar Tyagi
Sir, for his valuable guidance and the confidence he instilled in
me, that helped me in the successful completion of this project
report. Without his help, this project would have been a distant
affair.

His thorough understanding of the subject and professional

guidance was indeed of immense help to me.

Also, this acknowledgement would remain incomplete without

thanking the staff of AMUL for their whole-hearted and kind
co-operation.

I am also greatly thankful to the faculty members of our institute

who co-operated with me and gave me their valuable time.

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INDEX

SR. NO. PARTICULARS PAGE NO.

Introduction of project

1.1 Specific focus of liveproject

1.2 Topic assigned by faculty member
1 7
1.3 Concept it is based on
1.4 Methodology to be adopted
1.5 Objectives of the project

2 HISTORY 8

3 Company Details 12

4 Advertising 16

5 Methodology & conceptual relevance 17

6 Findings & Suggestion 33

7 Limitation 34

8 Achievements 35

Conclusion
9 36
Bibliography

10
37

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EXECUTIVE SUMMARY

This project was undertaken with the objective of the “role of the retailer”

In the year 1946 the first milk union was established. This union was started with 250
litres of milk per day . In the year 1955 Amul was established. In the year 1946 the
union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS`
UNION . This union selected the brand name Amul in 1955.

The brand name Amul means “AMULYA”. This word derived from the
Sanskrit word AMULYA which means “PRICELESS”. A quality control expert in
Anand had suggested the brand name “Amul”. Amul products have been in use in
millions of homes since 1946. Amul Butter, Amul Milk powder, Amul Ghee,
Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream,
Nutramul, Amul milk and Amulya have made Amul a leading food brand in India.
(The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like
of the high-quality products sold at reasonable prices, of the genesis of a vast co-
operative network, triumph of indigenous technology, of the marketing savvy of a
farmer’s organization. And have a proven model of diary development (Generally
known as “ANAND PATTERN”).

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LITERATURE REVIEWS

ABSTRACT

In this paper we describe a case study of a diary co-operative, AMUL, in

western India that has developed a successful model for doing business in large
emerging economy. It has been primarily responsible, through its innovative practices,
for India to become world’s largest producer of milk. This paper draws various lessons
from the experience of amul that would be useful to cooperative globally as well as
firms that are interested in doing business in large emerging markets like India and
China.

Many of these economies have underdeveloped Markets and fragmented supply

bases. Market failures for many of these small producers are high. On the other hand,
the sizes of both, markets and suppliers is large. As a result, firms that identify
appropriate business strategies that take into account these characteristics are more
likely to succeed in these markets. The followings are some key message from
AMUL’s success firms in these environment needs to simultaneously develop markets
and suppliers to synchronize demand and supply planning, develop or become a part
of networks of producers (i.e, cooperatives in this case) to obtain scale economies,
focus to bring the diverse element together and a long-term approach are required.

In emerging economies different industrial sectors may be at different stages of

development. In some of the sectors all of the above environmental characteristics
faced may not hold. However, a subset of strategies followed by AMUL would still be
very useful. Thus, firms that are contemplating addressing large underdeveloped
markets or have an intention of taking advantage of extensive but marginal supplier
base would still benefit.

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INTRODUCTION

 Specific focus of the project;

I am preparing this project report with main focus of role played by retailer in
Amul outlets. This would help in knowing the retailers role in Amul outlets.

 Topic of the project;

The topic of my project is a study on retailer with special reference to Amul ltd
outlets.

 Concept it is based on;

Project report is based on mainly to know the role of retailer in Amul ltd outlets. It
also helps in knowing the in which role played by retailers in Amul outlets.

 Methodology;

For the completion of this project report I have mainly used the primary data and
secondary data. Which already exist somewhere else?

 Objectives of the report;

My main objective for preparing this report is to know the roles of retailers in Amul
outlet.

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HISTORY of AMUL

Amul-cooperative registered on 14 December 1946 as a response to the

exploitation of marginal milk producers by traders or agents of the only existing
dairy, the Polson dairy, in the small city distances to deliver milk, which often
went sour in summer, to Polson. The prices of milk were arbitrarily determined.

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The government had given monopoly rights to Polson to collect milk from Kaira
and supply it to Bombay city.

Angered by the unfair trade practices, the farmers of Kaira approached Sardar
Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas Patel.
He advised them to form a cooperative (Kaira District Co-operative Milk

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Producers' Union) and supply milk directly to the Bombay Milk Scheme instead of
Polson (who did the same but gave them low prices).

He sent Morarji Desai to organise the farmers. In 1946, the milk farmers of the
area went on a strike which led to the setting up of the cooperative to collect and
process milk. Milk collection was decentralized, as most producers were marginal
farmers who could deliver, at most, 1–2 litres of milk per day. Cooperatives were
formed for each village, too. By June 1948, the KDCMPUL had started
pasteurizing milk for the 'Bombay Milk Scheme'. Under the selfless leadership of
Tribhuvandas Patel, in 1973, Amul celebrated its 25th Annivarsary with Morarji
Desai, Maniben Patel and Dr. Verghese Kurien.

The cooperative was further developed and managed by Dr. Verghese Kurienwith
H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk
(for the first time in the world) and a little later, with Kurien's help, making it on a
commercial scale, led to the first modern dairy of the cooperative at Anand, which
would compete against established players in the market. Kurien's brother-in-law
K.M. Philip sensitized Kurien to the needs of attending to the finer points of
marketing, including the creation and popularization of a brand.

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon
spread to Anand's neighbourhood in Gujarat. Within a short span, five unions in
other districts – Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set
up, following the approach sometimes described as the Anand pattern.

In 1970, initiated White revolution of India, as it help create, Gujarat Co-operative

Milk Marketing Federation Ltd., which now overlooks Amul, in 1973, and today, it
is the second best dairy in India. To combine forces and expand the market while
saving on advertising and avoid competing against each other, the GCMMF, an
apex marketing body of these district cooperatives, was set up in 1973. The Kaira
Union, which had the brand name Amul with it since 1955, transferred it to
GCMMF.

In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.

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Technological developments at Amul have subsequently spread to other parts of

India.

The GCMMF is the largest food products marketing organisation of India. It is the
apex organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing
organisation for products under the brand name of Amul and Sagar. Over the last
five and a half decades, dairy cooperatives in Gujarat have created an economic
network that links more than 3.1 million village milk products with millions of
consumers in India. Gujarat Cooperative Milk Marketing Federation Ltd.

Importance is also important for industries.

On September 30, 2018, Prime Minister Narendra Modi inaugurated Amul's

chocolate plant in Mogar, Anand near their headquarters.

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COMPANY DETAILS

Amul or Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) as

India's largest food products marketing organization with annual sales turnover of
Rs.2881 crores (US $ 650 million).They

manufacture and market a wide range of dairy products in India and abroad under
the brand names of Amul and Sagar. GCMMF has 19 affiliated dairy plants with a
total milk handling capacity of 6.7 million liters per day. The total milk drying
capacity is 510 MT per day.

GCMMF is also the largest exporter of dairy products from India.

They manufacture and market a wide range of dairy products in India and abroad
under the brand names of Amul and Sagar. The product categories are Infant Milk
Food, Skimmed Milk Powder, Full Cream Milk Powder, Dairy Whitener, Table
Butter, Cheddar Cheese, Mozzarella Cheese, Emmental Cheese, Cheese Spreads,
Gouda cheese, Ghee, Sweetened Condensed Milk, Chocolates, Malted Milk Food,
Blended Bread spreads, Fresh milk, UHT (Long life) Milk, Ice-ream and ethnic
Indian sweets. Each of our products is a market leader in India.

GCMMF is the largest exporter of dairy products from India. They export there
products in consumer packs and bulk to USA, Singapore, UAE, Australia, Bahrain,

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Qatar, Oman, Kuwait, Bangladesh, Madagascar, Yemen, Sri Lanka etc. On a

regular basis. They have won 9 awards consecutively from APEDA, Govt of India.

COMPANY PROFILE

Basic Information

CompanyName: Amul India (Gujarat Co-operative Milk Marketing

Federation Ltd.)

Business Type: Manufacturer

Product/Services: Infant Milk Food, Skimmed Milk

Powder, Butter, Cheese (Cheddar, Mozzarella,
Emmental, Gouda),Cheese spreads, Ghee,
Condensed Milk, Chocolates, malted milk food,
Bread spreads, fresh milk, UHT milk, Ice cream.

Address: Amul Dairy Road

Number of
Employees: 501 - 1000People

Company
Website
URL:
http://www.Amul.com

Ownership &
Capital
YearEstablished: 1973

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Legal
Representative/
Business Owner: B M Vyas

MAJOR PRODUCTS OF AMUL

 AMUL MILK

 AMUL COOLCAFÉ

 CHEESE

 PANEER

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 GHEE

 AMUL COOL FLAVOURED

MILK

 DAHI

 AMUL CHOCOLATECOOKIES

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ADVERTISING
In 1966, Amul hired Sylvester da Cunha, the managing director of the advertising
agency as to design an ad campaign for Amul Butter. daCunha designed a
campaign as series of hoardings with topical ads, relating to day-to-day issues. It
was popular and earned a Guinness world record for the longest running ad
campaign in the world. In the 1980s, cartoon artist Kumar Morey and script writer
Bharat Dabholkar had been involved with sketching the Amul ads; the latter
rejected the trend of using celebrities in advertisement campaigns. Dabholkar
credited chairman Verghese Kurien with creating a free atmosphere that fostered
the development of the ads.

Despite encountering political pressure on several occasions, daCunha's agency has

made it a policy of not backing down. Some of the more controversial Amul ads
include one commenting on the Naxalite uprising in West Bengal, on the Indian
Airlines employees strike, and one depicting the Amul girl wearing a Gandhi cap.

In 2013, Amul tweeted a picture featuring the Amul butter girl, implying that
'freedom of choice' died in '2013', in opposition to the Supreme Court of India

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overruling the judgment of Delhi High Court and criminalising homosexuality

again.

On 17 October 2016, Amul butter girl celebrated 50 years when she first appeared
in the topical ad titled "Thorough bread". The ad showed a jockey holding a slice
of bread during the horse race season in 1966. The impish Amul girl had appeared
for the first time even before that, with Eustace Fernandez showed her offering
bedtime prayers with a wink and a lick of lips, saying "Give us this day our daily
bread: with Amul butter".

Their Ad on Aagey Badhta Hai India had an excellent response from the audience.
It basically spoke about the how their Milk is seen a household product with catchy
tune associated to it. It has close to 2 Million views on YouTube.

METHODOLOGY
 For gathering the information about this project I have followed both
primary and secondary data collection.
 I have gathered some more information from Internet also

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CONCEPTUAL RELEVANCE

Definition and explanation of Retailing

Retail refers to the activity of selling goods or services directly to consumers or
end-users. Some retailers may sell to business customers, and such sales are termed
non-retail activity. In some jurisdictions or regions, legal definitions of retail
specify that at least 80 percent of sales activity must be to end-users.

Retailing often occurs in retail stores or service establishments, but may also occur
through direct selling such as through vending machines, door-to-door sales or
electronic channels. Although the idea of retail is often associated with the
purchase of goods, the term may be applied to service-providers that sell to
consumers. Retail service providers include retail banking, tourism, insurance,
private healthcare, private education, private security firms, legal firms, publishers,
public transport and others. For example, a tourism provider might have a retail
division that books travel and accommodation for consumers plus a wholesale
division that purchases blocks of accommodation, hospitality, transport and
sightseeing which are subsequently packaged into a holiday tour for sale to retail
travel agents.

Some retailers badge their stores as "wholesale outlets" offering "wholesale

prices."Whilethispracticemayencourageconsumerstoimaginethattheyhave

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access to lower prices, while being prepared to trade-off reduced prices for
cramped in-store environments, in a strict legal sense, a store that sells the majority
of its merchandise direct to consumers, is defined as a retailer rather than a
wholesaler. Different jurisdictions set parameters for the ratio of consumer to
business sales that define a retail business.

HISTORY OF RETAILERS

Retail markets have existed since ancient times. Archaeological evidence for trade,
probably involving barter systems, dates back more than 10,000 years. As
civilizations grew, barter was replaced with retail trade involving coinage. Selling
and buying is thought to have emerged in
Asia Minor (modern Turkey) in around the
7th millennium BCE. Gharipour points to
evidence of primitive shops and trade
centres in Sialk Hills in Kashan (6000
BCE), Catalk Huyuk in modern-day
Turkey (7,500–5,700 BCE), Jericho (2600
BCE) and Susa (4000 BCE). Open air,
public markets were known in ancient
Babylonia, Assyria, Phoenicia and Egypt.
These markets typically occupied a place in the town's centre. Surrounding the
market, skilled artisans, such as metal-workers and leather workers, occupied
permanent premises in alleys that led to the open market-place.

These artisans may have sold wares directly from their premises, but also prepared
goods for sale on market days. In ancient Greece markets operated within the
agora, an open space where, on market days, goods were displayed on mats or
temporary stalls. In ancient Rome, trade took place in the forum. Rome had two
forums; the Forum Romanum and Trajan's Forum. The latter was a vast expanse,
comprising multiple buildings with shops on fourlevels.

The Roman forum was arguably the earliest example of a permanent retail shop-
front. In antiquity, exchange involved direct selling via merchants or peddlers and
bartering systems were commonplace.

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The Phoenicians, noted for their seafaring skills, plied their ships across the
Mediterranean, becoming a major trading power by the 9th century BCE. The
Phoenicians imported and exported wood, textiles, glass and produce such as wine,
oil, dried fruit and nuts. Their trading skills necessitated a network of colonies
along the Mediterranean coast, stretching from modern day Crete through to
Tangiers and onto Sardinia

The Phoenicians not only traded in tangible

goods, but were also instrumental in transporting
culture. The Phoenician's extensive trade
networks necessitated considerable book-keeping
and correspondence. In around 1500 BCE, the
Phoenicians developed a consonantal alphabet
which was much easier to learn that the complex
scripts used in ancient Egypt and Mesopotamia.
Phoenician traders and merchants were largely
responsible for spreading their alphabet around the region. Phoenician inscriptions
have been found in archaeological sites at a number of former Phoenician cities
and colonies around the Mediterranean, such as Byblos (in present-day Lebanon)
and Carthage in North Africa.

Grand Bazaar, Istanbul (interior). Established in 1455, it is thought to be the oldest

continuously operating covered market

In the Graeco-Roman world, the market primarily served the local peasantry. Local
producers, who were generally poor, would sell small surpluses from their
individual farming activities, purchase minor farm equipment and also buy a few
luxuries for their homes. Major producers such as the great estates were
sufficiently attractive for merchants to call directly at their farm-gates, obviating
the producers' need to attend local markets. The very wealthy landowners managed
their own distribution, which may have involved exporting and importing. The

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nature of export markets in antiquity is well documented in ancient sources and

archaeological case studies. The Romans preferred to purchase goods from specific
places: oysters from Londinium, cinnamon from a specific mountain in Arabia, and
these place-based preferences stimulated trade throughout Europe and the middle
East. Markets were also important centres of social life.

What does a retailer mean?

A business or company that sells to the consumer directly. A retailer will buy
goods from a manufacturer, distributor or wholesaler and sell them on to the
customer at a marked up price. Retailers needs to be registered and may be official
retailers for a certain line of products.

An example of a registered retailer would be a business that sells a certain brand of

mobile phone. As a registered outlet and retailer not only will he sell the mobile
phones but will also be able to honor the sale with a guarantee from the

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manufacturer. When purchasing things such as electronic goods it is always

advisable to buy them from official retailers.

People often think of large retailers like Wal-Mart, Tesco and Target when the
term retailer is mentioned, but retailers can also be small retailers like a corner
grocery store or a family operated pharmacy.

In nearly all cases a retailer does not manufacture the products they sell. Naturally
there are exceptions, but typically the retailer is just the final link in the distribution
chain. They are the businesses that deliver goods and services directly to
consumers. This makes them different from wholesalers who sell directly to other
businesses (often retailers).

In general there are four main product categories sold by retailers. These products
categories are foods, durable goods (those that last a long time such as appliances
and cars), soft goods (those that last a shorter life-span such as clothes), and
discretionary products such as books, art, and gifts.

While you might think of a retailer as a business with a physical location, not all
retailers have a brick-and-mortar presence. Two of the largest retailers in the world
are Amazon and Alibaba, both of which sell their products online.

The term retailer can also be used to describe the less traditional sellers as well. An
artist who sells carvings or paintings at markets or fairs is also a retailer. So is a
food truck if they are selling to the public with the aim of making a profit.

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In addition to selling products, retailers can also be service providers. For example,
most appliance retailers also offer insurance on their products in the form of
extended warranties, and some also offer delivery, set-up or repair services.

Characteristics of a Retailer

 In the entire distribution chain, a retailer is considered to be the final link,

who deals directly with the customer.
 A retailer purchases in bulk from the wholesalers and sells the products to
the customers in small quantities.
 A retailer essentially maintains a variety of merchandise.
 The aim of a retailer is to achieve maximum satisfaction by exceeding their
expectations and delivering exceptional services.

Key Functions Performed by a Retailer

 A retailer performs the dual functions of buying and assembling of goods.

The responsibility of a retailer is to identify the most economical source for
obtaining the goods from the suppliers and passing on the advantages to the
consumer.
 The retailers perform the functions of warehousing and storing. They store
the goods in bulk and make them available as per the requirement of the
consumer. Warehousing and store keeping helps in ensuring uninterrupted
availability of the goods to the consumers.
 The primary function of a retailer is selling the products to the customers for
which various techniques or business practices are being adopted by the
retailer to achieve the strategic goals.
 The prime focus of a retailer is on maximizing customer satisfaction by
delivering quality products and services both on cash as well as credit basis.
As a result of which, retailer always runs the risk of accumulating bad debts
on account of non-payment of the amount from the consumer.
 A retailer needs to have robust risk management capabilities. Various kinds
of risks can be involved in a retail business which a retailer should be well

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prepared with like loss or damage of the products due to deterioration in

quality, perishability or spoilage. A change in customer’s buying preferences
or tastes can also affect the retail business to a great extent, or even the
products may be damaged due to the natural calamities or vagaries of nature.
 A retailer performs the crucial function of grading for all those goods which
at times are either left ungraded by the wholesalers or manufacturers so that
the customers readily accept the goods. The retailer is responsible for the
packing of goods in small packages or small containers for the customer’s
convenience.
 The retailers are the direct point of contact or communication with the
customers; hence they gather information regarding the changing tastes and
preferences of the consumers, pass on the customer feedback to the
manufacturers for continuous improvement in service delivery.
 Retailers act as a vital channel for the launch of new products in the market
as they are the direct interface with the consumers and can communicate
directly with the targets consumers about the new product features and
advantages.
 The retailers are responsible for the product promotion and advertisement by
planning the product displays and visual merchandising for attracting the
customers.

Services Provided by a Retailer

To Customers:

 A Retailer ensures ready stock availability of goods for the customers in

sufficient quantities and sells the goods to the customers as per their quantity
specifications.
 A retailer ensures availability of a wide variety of choices of products for the
customers by keeping different varieties at various prices and also different
brands as well.
 A retailer can provide credit facilities and heavy cash discounts on the
purchase of different products to the customers.

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 Retailers can provide customized services and pay personalized attention to

the customers for achieving a higher level of satisfaction with the delivery of
product or service.
 Retailers introduce new products to the customers and also guide them with
the usage of the products.
 Retailers can provide additional services like free home delivery or after
sales services.
 Retailers purchase and maintain a stock of those products which are mostly
demanded by the customers. They aim at catering to the requirements of all
kinds of customers with varied buying capacities.

To Wholesalers:

 Retailers are a valuable source of information and feedback for the

wholesalers who in turn pass on the same information to the producers of the
products. Crucial information related to the changes in the buying
preferences of the customers, their experience with the usage of the
products, feedback on the prices and quality of the products is passed on to
the wholesalers. This helps in improving the existing services and in
customizing the product solutions as per the requirements of the customers.
 A retailer absorbs most of the burden of the wholesaler and also of the
manufacturer by selling the goods in small quantities to the customers. The
wholesalers are relieved from the burden of maintaining direct touch with
the customers and managing the entire gamut of activities involved in
convincing the customers for purchasing their products.
 Retailer supports the wholesaler by acting as a channel for distributing the
goods to the customers.
 Retailer acts as the point of contact between the customer and the
wholesaler. Retailers are responsible for creating and improving the demand
for various products by taking care of the display and merchandising
activities.

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 Retailers act as a major source of funding for the wholesale trade by placing
the orders and making payments in advance to the wholesalers for those
goods.

Types of Retailers

There are 7 main types of retailers which can be defined by the size of their
business and the way they in which they sell their products.

The 7 main types of retailers are;

1. Department Store – This type of retailer is often the most complex offering a
wide range of products and can appear as a collection of smaller retail stores
managed by one company. The department store retailers offer products at

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various pricing levels. This type of retailer adds high levels of customer
service by adding convenience enabling a large variety of products to be
purchased from one retailer.

2. Supermarkets – Generally this type of retailer concentrates in supplying a

range of food and beverage products. However many have now diversified
and supply products from the home, fashion and electrical products markets
too. Supermarkets have significant buying power and therefore often retail
goods at low prices.

3. Warehouse retailers – This type of retailer is usually situated in retail or

Business Park and where premises rents are lower. This enables this type of
retailer to stock, display and retail a large variety of good at very
competitive prices.

4. Specialty Retailers – Specializing in specific industries or products, this type

of retailer is able to offer the customer expert knowledge and a high level of
service. They also add value by offering accessories and additional related
products at the same outlet.

5. E-tailer – This type of retailer enables customers to shop on-line via the
internet and buy products which are then delivered. This type of retailer is
highly convenient and is able to supply a wider geographic customer base.
E-tailers often have lower rent and overheads so offer very competitive
pricing.

6. Convenience Retailer – Usually located in residential areas this type of

retailer offers a limited range of products at premium prices due to the added
value of convenience.

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7. Discount Retailer – This type of retailer

offers a variety of discounted products.
They offer low prices on less fashionable
branded products from a range of suppliers
by reselling end of line and returned goods
at discounted prices.

Concept
Retailing consists of the sale of goods or merchandise from a fixed location, such
as a department store or kiosk, or by post, in small or individual lots for direct
consumption by the purchaser. Retailing may include subordinated services, such
as delivery. Purchasers may be individuals or businesses. In commerce, a retailer
buys goods or products in large quantities from manufacturers or importers, either
directly or through a wholesaler, and then sells smaller quantities to the end-user.
Retail establishments are often called shops or stores. Retailers are at the end of the
supply chain. Manufacturing marketers see the process of retailing as a necessary
part of their overall distribution strategy.

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Shops may be on residential streets, shopping streets with few or no houses, or in a

shopping center or mall. Shopping streets may be for pedestrians only. Sometimes
a shopping street has a partial or full roof to protect customers from precipitation.
Online retailing also referred to as B2C type of e-commerce, and mail order are
forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to
obtain necessities such as food and clothing; sometimes it is done as a recreational
activity. Recreational shopping often involves window shopping (just looking, not
buying) and browsing and does not always result in a purchase

The advent of modern format retailing has led to a sea change in purchasing
behavior of consumers. While large retail chains do provide some convenience to
consumers, historically they have rarely had any beneficial impact on farmers who
supply agricultural produce to them. Across the world, it is observed that the
farmer’s share in the consumer’s rupee, keeps on declining due to the rising
bargaining power of supermarket chains.

This phenomenon will definitely take place in India, as well, within the next few
years. To counter this, we have decided to set up our own Amul Preferred Outlets
(APOs), all across the country.

GCMMF ventured into organized retailing in 2002 with a view of getting closer to
the consumer and provide her the complete brand experience. We have made our
presence felt by creating several strategically located parlours, in a short period of
time.

The entire expansion drive is based on the franchisee route adopted by GCMMF,
which means an employment opportunity for thousands of enterprising Indians.
The Retailing operations would not only help farmers and small time entrepreneurs
to counter the onslaught of Modern Format stores but would also help consumers
to relish complete Amul brand experience.

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Amul has recently entered into direct retailing through "Amul Utterly Delicious"
parlours created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai,
Hyderabad and Surat. Amul has plans to create a large chain of such outlets to be
managed by franchisees throughout the country. We have created Amul Parlours at
some prominent locations in the country, which are run by the company or its
wholesale dealers:

• Delhi Metro Rail Corporation

• The Somnath Temple

• National Institute of Design

• Infosys Technologies in Bangalore, Mysore &Pune

• Wipro campus in Bangalore

• L.J. College, Ahmedabad

• Ahmedabad Airport

• Surat Municipal Corporation

• Delhi Police

• Gujarat State Road Transport Corporation 11.Jubilee Mission Medical

College, Trichur, Kerala 12.Sanjay Gandhi Hospital Parlour, Amethi
13.Indian Institute of Management, Kolkata Cafe Amul, MDG, Gandhinagar

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"Amul Utterly Delicious" parlours are an excellent business opportunity for

investors, shopkeepers and organizations. In order to come closer to the customer,
they have decided to create a model for retail outlets, which would be known as
"Amul Preferred Outlets"(APO).

a. Willingness to sell the entire range of Amul Products

b. Creditworthiness and past business experience

c. On inquiry - Amul Field force would visit your site. He/She would fill the
APO proposal form with retailer passport size photograph. retailer would
require:

i. Shops and Establishment license

ii. Layout of the shop and frontage - The layout of the shop designed by a local
architect/local contractor.

iii. 2 Passport size photographs

Renovation Work of the Shop to give it a standard look

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Would be done to meet the design and specifications at retailers cost. The cost of
renovation of a typical shop would normally be between Rs. 60,000 to Rs. 1 lac.

Branding

The APOs would be branded as "Amul Utterly Delicious". The cost of the signage
fabrication and installation would be borne by GCMMF office operating in your
region.

Equipment

Retailers would require the following equipment:

a. 1or 2 deep freezers can be purchased through Hamara Apna Deep Freezer
Scheme

b. 1 Refrigerator through Hamara Apna Refrigerator Scheme

c. 1 pizzaoven

d. 1 Chest Milk Cooler for Pouch Milk

Security Deposit

Retailers would be required to furnish an interest free refundable security deposit

of Rs. 25,000 to us. An amount of Rs. 5000/- would be deducted towards
refurbishing the signage, in the event of closure of APO before 3-year of operation.

Supplies

The delivery of products would be done through our wholesale dealers

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Amul feel that the shop has good potential, and needs support in the initial days;
they can offer Additional margins up to maximum of 1% on dairy products
and 2% on Ice cream. The additional margin shall be target based and shall be
given in kind.

OBSERVATION FINDINGS:-

RETAILERS
 Retailers are not interested because they don’t have storage facility but if
company provides them such facility they will be sale Amul milk.
 Because of low profit margin almost all retailers are not interested in Amul
milk selling.
 The 250 ml and 5 Ltr milk pouch are no available to the retailers for selling .
 On question, why retailers are not interested in selling of Amul milk, it is
found they were not happy with margin, availability and replacement of leak
pouches.
 Retailers were selling different brands. Because they were able to receive
margin from non popularized brand that they could not from well known
brands.
 All retailers get Amul milk from company selected distributors.
 Measurable amount of retailers were not happy with distributors, because
of frequent change in distributors and late delivery of milk ,
 All retailers were familiar with sales promotion activities undertaken by Amul.
But more of the activities were not communicated by distributors.

SUGGESTIONS & RECOMMENDATIONS

By studying the role of retailers in Amul outlets I would like to suggest that they
should provide.

 They should help retailers financial while setting up outlets.

 They should remove criteria of allowing that person only is eligible to set up
outlets if has already having experience in business.
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 They need to increase profit margin of retailers also

LIMITATIONS

 First limitation is related to the time factor. Because it is very difficult to

cover all the aspect of role of retailers in a short time duration.

 We have included only one organization in to consideration for the project

and not all because to take all it is almost impossible.

 Retailing is very wide topic so we are not able to cover all thein formation.

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ACHIVEMENTS
AMUL : Asia’s largest dairy co-operative was created way back in 1946 to make
the milk producer self-reliant and conduct milk business with pride. Amul has
always been the trend setter in bringing and adapting the most modern technology
to door steps to rural farmers.

Amul created history in following areas:

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

than 5000000 marginal milk producers of Kaira district.

b) Created dairy co-operative at villages level functioning with milk collections

centres owned by them.

c) Computerized milk collection system with electronic scale and computerized

accounting system.

d) The first and only organization in the world to get ISO9000 standards for its
farmer’s co-operative.

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

Amul is the live example of how cooperations amongst the poor marginal
farmers can provide means for the socio-economic development of the under
privileged marginal farmers.

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CONCLUSION
After doing this live project, I have come to the conclusion that the role of retailers
in AMUL LTD that company already has cleared the role of retailers. They have
clear all details from setting up the outlets, equipments required by the retailers,
investment required. And every necessary information has been cleared by Amul.

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BIBLOGRAPHY

BOOKS

Marketing management (DOON BUSINESS SCHOOL)

WEBSITES

 www.google.com
 www.amul.com
 https://en.wikipedia.org/wiki/Retail
 http://www.grocyhub.com/%20%20amul
 https://en.wikipedia.org/wiki/Amul

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